(1) An action for compensation under this act must be commenced within 3 years after entry of a verdict, order, or judgment as the result of an event described in section 4(1)(b). Any action by this state challenging or appealing a verdict, order, or judgment entered as the result of an event described in section 4(1)(b) tolls the 3-year period.

  (2) An individual convicted, imprisoned, and released from custody before March 29, 2017 must commence an action under this act within 18 months after the effective date of the 2020 amendatory act that amended this section.