January 04, 2005
January 4, 2005
LANSING – Governor Jennifer M. Granholm and Attorney General Mike Cox celebrated the New Year with the signing into law of six bills designed to collect millions in unpaid child support from previously untapped sources.
The six-bill child support package allows for liens to be placed on large cash awards received by parents with past due support before the funds are dispersed to those parents. The laws specifically target inheritance, worker's compensation awards, and pain and suffering insurance awards.
"This legislation offers an additional tool to make certain Michigan's children get the support they not only need, but to which they are entitled," said Granholm. "We must tap every resource available to support our children, because they represent Michigan's future."
"These laws will help tens of thousands of children receive the child support they deserve," stated Cox. "Through innovative, novel approaches, we are standing up for Michigan’s children."
In addition to placing a priority lien – secondary only to unpaid taxes – on large cash awards, Public Acts 481-484 also set up a matching system through the Child Support Lien Network (CSLN). A national network that provides a seamless data matching system to child support agencies and insurance companies, the CSLN system is designed to increase support collections through the interception of insurance claim settlements before they are sent to a claimant who owes past due child support.
The CSLN estimates that in the first 18 months of the program, it will collect $16.24 million in past due child support for the State of Michigan. The cost of the program to the State is expected to be $135,301 for the first year. However, due to federal incentive payments for the collection of child support, the State will see a net income from this program of approximately $673,300.
