2023 Senate Bill 408

Civil procedure: execution; procedures for collection of judgments; revise.

A bill to amend 1961 PA 236, entitled “Revised judicature act of 1961,” by amending sections 4011, 4012, 4015, 4031, 4061a, 6023, 6027, 6059, and 6104 (MCL 600.4011, 600.4012, 600.4015, 600.4031, 600.4061a, 600.6023, 600.6027, 600.6059, and 600.6104), section 4011 as amended and section 4061a as added by 1994 PA 346, section 4012 as amended by 2015 PA 14, and section 6023 as amended by 2012 PA 553, and by adding sections 4001a, 4032, 4033, 6001a, 6023b, 6023c, 6023d, 6023e, 6023f, and 6023g.

Mackinac Center Analysis

Senate Bills 408 and 409 limit the ability of landlords (and other creditors) to recoup money they are owed. If a renter doesn’t pay, a creditor can go through a process to garnish the renter’s wages. This bill restricts property owners from garnishing funds coming from government benefits and places complicated new regulations on financial institutions that hold the funds of debtors.

Introduced in the Senate

June 27, 2023

Introduced by Sen. Jeff Irwin (D-15) and five co-sponsors

Co-sponsored by Sens. Mary Cavanagh (D-6), Stephanie Chang (D-3), Erika Geiss (D-1), Mallory McMorrow (D-8) and Rosemary Bayer (D-13)

Referred to the Committee on Finance, Insurance, and Consumer Protection

Oct. 23, 2024

Reported with substitute S-2

Oct. 24, 2024

Referred to the Committee of the Whole

Dec. 12, 2024

Reported with substitute S-4

1 Amend page 21, line 2, after “value.” by inserting “However, if the homestead is a mobile home in a mobile home park, as those terms are defined in section 2 of the mobile home commission act, 1987 PA 96, MCL 125.2302, the exemption under this subdivision is 50 percent of the fair market value if all of the following conditions apply:

(i) A court has entered a judgment or order under chapter 57 or 57a restoring possession of the premises to the mobile home park owner.

(ii) The mobile home has been continuously unoccupied for at least 90 days after entry of the judgment or order described in subparagraph (i).

(iii) An indebtedness that is related to a lease agreement or terms of the tenancy between the mobile home park owner and the mobile home owner is delinquent, and an order to seize property or a writ of execution or eviction was issued because of the indebtedness.

(iv) The mobile home park owner has a license to operate the mobile home park under section 16 of the mobile home commission act, 1987 PA 96, MCL 125.2316.”.

Substitute S-4 concurred in by voice vote

Passed in the Senate 22 to 14 (details)

Received in the House

Dec. 12, 2024