HOUSE BILL No. 4588 April 27, 1999, Introduced by Reps. Shulman, Kukuk, Tabor, Kuipers, Voorhees, Hart, Kowall, Raczkowski, Bisbee, Richner, LaSata and Gosselin and referred to the Committee on Family and Civil Law. A bill to amend 1964 PA 170, entitled "An act to make uniform the liability of municipal corporations, political subdivisions, and the state, its agencies and depart- ments, officers, employees, and volunteers thereof, and members of certain boards, councils, and task forces when engaged in the exercise or discharge of a governmental function, for injuries to property and persons; to define and limit this liability; to define and limit the liability of the state when engaged in a proprietary function; to authorize the purchase of liability insurance to protect against loss arising out of this liability; to provide for defending certain claims made against public offi- cers and paying damages sought or awarded against them; to pro- vide for the legal defense of public officers and employees; to provide for reimbursement of public officers and employees for certain legal expenses; and to repeal certain acts and parts of acts," by amending sections 1, 7, and 13 (MCL 691.1401, 691.1407, and 691.1413), sections 1 and 13 as amended by 1986 PA 175 and sec- tion 7 as amended by 1996 PA 143, and by adding section 7a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. As used in this act: 02918'99 DAM 2 1 (A) "COMPUTER" MEANS A HIGH-SPEED DATA PROCESSING DEVICE 2 THAT PERFORMS LOGICAL, ARITHMETIC, OR MEMORY FUNCTIONS BY THE 3 MANIPULATIONS OF ELECTRONIC OR MAGNETIC IMPULSES AND INCLUDES ALL 4 INPUT, OUTPUT, PROCESSING, STORAGE, OR COMMUNICATION FACILITIES 5 THAT ARE CONNECTED OR RELATED TO THE DEVICE. 6 (B) "COMPUTER DATE FAILURE" MEANS A MALFUNCTION, INCLUDING, 7 BUT NOT LIMITED TO, THE MALFUNCTION OF AN ELECTRONIC OR MECHANI- 8 CAL DEVICE OR THE INABILITY OF A COMPUTER, A COMPUTER NETWORK, A 9 COMPUTER PROGRAM, COMPUTER SOFTWARE, AN EMBEDDED CHIP, OR A COM- 10 PUTER SYSTEM TO ACCURATELY STORE, PROCESS, RECEIVE, OR TRANSMIT 11 DATA, THAT IS CAUSED DIRECTLY OR INDIRECTLY BY THE FAILURE OF A 12 COMPUTER, A COMPUTER NETWORK, A COMPUTER PROGRAM, COMPUTER SOFT- 13 WARE, AN EMBEDDED CHIP, OR A COMPUTER SYSTEM TO ACCURATELY OR 14 PROPERLY RECOGNIZE, CALCULATE, DISPLAY, SORT, OR OTHERWISE PRO- 15 CESS DATES OR TIMES IN THE YEARS 1999 AND 2000 AND BEYOND. 16 (C) "COMPUTER NETWORK" MEANS AN INTERCONNECTION OF 2 OR MORE 17 COMPUTERS OR COMPUTER SYSTEMS BY SATELLITE, MICROWAVE, LINE, 18 CABLE, WIRING, OR OTHER COMMUNICATION MEDIUM WITH THE CAPABILITY 19 TO TRANSMIT INFORMATION AMONG THE COMPUTERS OR COMPUTER SYSTEMS. 20 (D) "COMPUTER PROGRAM" MEANS AN ORDERED SET OF DATA-CODED 21 INSTRUCTIONS OR STATEMENTS THAT WHEN EXECUTED BY A COMPUTER CAUSE 22 THE COMPUTER SYSTEM TO PROCESS DATA OR PERFORM SPECIFIC 23 FUNCTIONS. 24 (E) "COMPUTER SOFTWARE" MEANS A SET OF COMPUTER PROGRAMS, 25 PROCEDURES, AND ASSOCIATED DOCUMENTATION RELATED TO THE OPERATION 26 OF A COMPUTER, COMPUTER SYSTEM, OR COMPUTER NETWORK. 02918'99 3 1 (F) "COMPUTER SYSTEM" MEANS A COMBINATION OF A COMPUTER OR A 2 COMPUTER NETWORK WITH THE DOCUMENTATION, COMPUTER SOFTWARE, OR 3 PHYSICAL FACILITIES SUPPORTING THE COMPUTER OR COMPUTER NETWORK. 4 (G) "EMBEDDED CHIP" MEANS A SINGLE OR MULTIPLE MICROPROCES- 5 SOR CHIP THAT OPERATES IN CONJUNCTION WITH SOFTWARE, INCLUDING 6 SOFTWARE ON THE CHIP ITSELF, AND THAT IN SOME WAY CONTROLS A 7 DEVICE OR EQUIPMENT, INCLUDING, BUT NOT LIMITED TO, A COMPUTER OR 8 OTHER ELECTRONIC OR MECHANICAL DEVICE. 9 (H)(a)"Municipal corporation" meansanyA city, vil- 10 lage, township, or charter township, oranyA combination 11thereofOF THESE, when acting jointly. 12 (I)(b)"Political subdivision" meansanyA municipal 13 corporation, county, county road commission, township, charter 14 township, school district, community college district, port dis- 15 trict,ormetropolitan district, OR transportation authority, 16 oranyA combinationthereof,OF THESE when acting jointly; 17, and anyA district or authority authorized by law or formed 18 by 1 or more political subdivisions;, and anyOR AN agency, 19 department, court, board, or council of a political subdivision. 20 (J)(c)"State" means the state of Michigan and its agen- 21 cies, departments, commissions, courts, boards, councils, AND 22 statutorily created task forces,andshall includeINCLUDES 23 every public university and college of the state,whether 24 established as a constitutional corporation or otherwise. 25 (K)(d)"Governmental agency" means the state, A political 26subdivisions, andSUBDIVISION, OR A municipalcorporations27 CORPORATION. 02918'99 4 1 (l)(e)"Highway" meanseveryA public highway, road, 2 and streetwhichTHAT is open for public travel andshall3includeINCLUDES bridges, sidewalks, crosswalks, and culverts on 4anyA highway. The term highway does not include alleys, 5 trees, and utility poles. 6 (M)(f)"Governmental function" is an activitywhich7 THAT is expressly or impliedly mandated or authorized by consti- 8 tution, statute, local charter or ordinance, or other law. 9 (N)(g)"Volunteer" means an individual who is specifi- 10 cally designated as such and who is acting solely on behalf of a 11 governmental agency. 12 Sec. 7. (1) Except as otherwise provided in this act,all13governmental agencies shall beA GOVERNMENTAL AGENCY IS immune 14 from tort liabilityin all cases whereinIF thegovernment15 GOVERNMENTAL agency is engaged in the exercise or discharge of a 16 governmental function. Except as otherwise provided in this act, 17 this actshall not be construed as modifying or restricting18 DOES NOT MODIFY OR RESTRICT the immunity of the state from tort 19 liability as it existed before July 1, 1965, which immunity is 20 affirmed. 21 (2) Except as otherwise provided in this section, and with- 22 out regard to the discretionary or ministerial nature of the con- 23 duct in question, each officer and employee of a governmental 24 agency, each volunteer acting on behalf of a governmental agency, 25 and each member of a board, council, commission, or statutorily 26 created task force of a governmental agencyshall beIS immune 27 from tort liability forinjuries to persons or damagesAN 02918'99 5 1 INJURY TO A PERSON OR DAMAGE to property caused by the officer, 2 employee, or member while in the course of employment or service 3 or CAUSED BY THE volunteer while acting on behalf of a governmen- 4 tal agency if all of the following are met: 5 (a) The officer, employee, member, or volunteer is acting or 6 reasonably believes he or she is acting within the scope of his 7 or her authority. 8 (b) The governmental agency is engaged in the exercise or 9 discharge of a governmental function. 10 (c) The officer's, employee's, member's, or volunteer's con- 11 duct does not amount to gross negligence that is the proximate 12 cause of the injury or damage. As used in this subdivision, 13 "gross negligence" means conduct so reckless as to demonstrate a 14 substantial lack of concern for whether an injury results. 15 (3) Subsection (2)shallDOES notbe construed as16alteringALTER the law of intentional torts as it existed before 17 July 7, 1986. 18 (4)ThisEXCEPT AS PROVIDED IN SECTION 7A, THIS act does 19 not grant immunity to a governmental agency with respect to the 20 ownership or operation of a hospital or county medical care 21 facility or to the agents or employees of such hospital or county 22 medical care facility. As used in this subsection: 23 (a) "County medical care facility" means that term as 24 defined in section 20104 of the public health code,Act No. 36825of the Public Acts of 1978, being section 333.20104 of the26Michigan Compiled Laws1978 PA 368, MCL 333.20104. 02918'99 6 1 (b) "Hospital" means a facility offering inpatient, 2 overnight care, and services for observation, diagnosis, and 3 active treatment of an individual with a medical, surgical, 4 obstetric, chronic, or rehabilitative condition requiring the 5 daily direction or supervision of a physician. The term does not 6 include a hospital owned or operated by the department of 7mentalCOMMUNITY health or a hospital operated by the depart- 8 ment of corrections. 9 (5)Judges, legislatorsA JUDGE, A LEGISLATOR, and the 10 elective or highest appointive executiveofficialsOFFICIAL of 11 all levels of government are immune from tort liability for inju- 12 ries to persons or damages to propertywhenever they areIF HE 13 OR SHE IS acting within the scope oftheirHIS OR HER judicial, 14 legislative, or executive authority. 15 (6) A guardian ad litem is immune from civil liability for 16injuries to persons or damagesAN INJURY TO A PERSON OR DAMAGE 17 to propertywheneverIF he or she is acting within the scope of 18 his or her authority as guardian ad litem. This subsection 19 applies to actions filed before, on, or afterthe effective date20of the amendatory act that added this subsectionMAY 1, 1996. 21 SEC. 7A. (1) EXCEPT AS PROVIDED IN SECTION 13 AND SUBSEC- 22 TION (3), A POLITICAL SUBDIVISION ENGAGED IN THE EXERCISE OR DIS- 23 CHARGE OF A GOVERNMENTAL FUNCTION IS IMMUNE FROM LIABILITY IN AN 24 ACTION TO RECOVER DAMAGES RESULTING DIRECTLY OR INDIRECTLY FROM A 25 COMPUTER DATE FAILURE, INCLUDING BUT NOT LIMITED TO AN ACTION 26 BASED ON AN ALLEGED FAILURE TO DETECT, DISCLOSE, PREVENT, REPORT 02918'99 7 1 ON, OR REMEDIATE A COMPUTER DATE FAILURE OR AN ACTION BASED ON 2 SECTION 2, 3, 5, 6, OR 7. 3 (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, AND WITH- 4 OUT REGARD TO THE DISCRETIONARY OR MINISTERIAL NATURE OF THE CON- 5 DUCT IN QUESTION, EACH POLITICAL SUBDIVISION OFFICER AND EMPLOY- 6 EE, EACH VOLUNTEER ACTING ON BEHALF OF A POLITICAL SUBDIVISION, 7 AND EACH MEMBER OF A POLITICAL SUBDIVISION BOARD, COUNCIL, COM- 8 MISSION, OR STATUTORILY CREATED TASK FORCE IS IMMUNE FROM LIABIL- 9 ITY IN AN ACTION TO RECOVER DAMAGES RESULTING DIRECTLY OR INDI- 10 RECTLY FROM A COMPUTER DATE FAILURE, INCLUDING BUT NOT LIMITED TO 11 AN ACTION BASED ON AN ALLEGED FAILURE TO DETECT, DISCLOSE, PRE- 12 VENT, REPORT ON, OR REMEDIATE A COMPUTER DATE FAILURE OR AN 13 ACTION BASED ON SECTION 2, 3, 5, 6, OR 7 IF ALL OF THE FOLLOWING 14 ARE MET: 15 (A) THE INJURY OR DAMAGE IS CAUSED BY THE OFFICER, EMPLOYEE, 16 OR MEMBER WHILE IN THE COURSE OF EMPLOYMENT OR SERVICE OR BY THE 17 VOLUNTEER WHILE ACTING ON BEHALF OF THE POLITICAL SUBDIVISION. 18 (B) THE OFFICER, EMPLOYEE, MEMBER, OR VOLUNTEER IS ACTING OR 19 REASONABLY BELIEVES HE OR SHE IS ACTING WITHIN THE SCOPE OF HIS 20 OR HER AUTHORITY. 21 (C) THE POLITICAL SUBDIVISION IS ENGAGED IN THE EXERCISE OR 22 DISCHARGE OF A GOVERNMENTAL FUNCTION. 23 (D) THE OFFICER'S, EMPLOYEE'S, MEMBER'S, OR VOLUNTEER'S CON- 24 DUCT DOES NOT AMOUNT TO GROSS NEGLIGENCE THAT IS THE PROXIMATE 25 CAUSE OF THE INJURY OR DAMAGE. AS USED IN THIS SUBDIVISION, 26 "GROSS NEGLIGENCE" MEANS CONDUCT SO RECKLESS AS TO DEMONSTRATE A 02918'99 8 1 SUBSTANTIAL LACK OF CONCERN FOR WHETHER AN INJURY OR SUBSTANTIAL 2 DAMAGE RESULTS. 3 (3) A GOVERNMENTAL AGENCY IS IMMUNE FROM LIABILITY IN AN 4 ACTION TO RECOVER DAMAGES WITH RESPECT TO PROVIDING MEDICAL CARE 5 OR TREATMENT TO A PATIENT RESULTING DIRECTLY OR INDIRECTLY FROM A 6 COMPUTER DATE FAILURE, INCLUDING BUT NOT LIMITED TO AN ACTION 7 BASED ON AN ALLEGED FAILURE TO DETECT, DISCLOSE, PREVENT, REPORT 8 ON, OR REMEDIATE A COMPUTER DATE FAILURE OR AN ACTION BASED ON 9 ANOTHER SECTION OF THIS ACT. 10 (4) WITHOUT REGARD TO THE DISCRETIONARY OR MINISTERIAL 11 NATURE OF THE CONDUCT IN QUESTION, EACH GOVERNMENTAL AGENCY OFFI- 12 CER AND EMPLOYEE, EACH VOLUNTEER ACTING ON BEHALF OF A GOVERNMEN- 13 TAL AGENCY, AND EACH MEMBER OF A GOVERNMENTAL AGENCY BOARD, COUN- 14 CIL, COMMISSION, OR STATUTORILY CREATED TASK FORCE IS IMMUNE FROM 15 LIABILITY IN AN ACTION TO RECOVER DAMAGES WITH RESPECT TO PROVID- 16 ING MEDICAL CARE OR TREATMENT TO A PATIENT RESULTING DIRECTLY OR 17 INDIRECTLY FROM A COMPUTER DATE FAILURE, INCLUDING BUT NOT 18 LIMITED TO AN ACTION BASED ON AN ALLEGED FAILURE TO DETECT, DIS- 19 CLOSE, PREVENT, REPORT ON, OR REMEDIATE A COMPUTER DATE FAILURE 20 OR AN ACTION BASED ON A SECTION OF THIS ACT IF ALL OF THE FOLLOW- 21 ING ARE MET: 22 (A) THE INJURY OR DAMAGE IS CAUSED BY THE OFFICER, EMPLOYEE, 23 OR MEMBER WHILE IN THE COURSE OF EMPLOYMENT OR SERVICE OR BY THE 24 VOLUNTEER WHILE ACTING ON BEHALF OF THE GOVERNMENTAL AGENCY. 25 (B) THE OFFICER, EMPLOYEE, MEMBER, OR VOLUNTEER IS ACTING OR 26 REASONABLY BELIEVES HE OR SHE IS ACTING WITHIN THE SCOPE OF HIS 27 OR HER AUTHORITY. 02918'99 9 1 (C) THE OFFICER'S, EMPLOYEE'S, MEMBER'S, OR VOLUNTEER'S 2 CONDUCT DOES NOT AMOUNT TO GROSS NEGLIGENCE THAT IS THE PROXIMATE 3 CAUSE OF THE INJURY OR DAMAGE. AS USED IN THIS SUBDIVISION, 4 "GROSS NEGLIGENCE" MEANS CONDUCT SO RECKLESS AS TO DEMONSTRATE A 5 SUBSTANTIAL LACK OF CONCERN FOR WHETHER AN INJURY OR SUBSTANTIAL 6 DAMAGE RESULTS. 7 (5) THIS SECTION SHALL NOT BE CONSTRUED AS MODIFYING OR 8 RESTRICTING THE IMMUNITY OF A GOVERNMENTAL AGENCY OTHERWISE PRO- 9 VIDED IN THIS ACT. THIS SECTION DOES NOT LIMIT EITHER OF THE 10 FOLLOWING: 11 (A) THE AUTHORITY OF A POLITICAL SUBDIVISION TO ENTER INTO 12 AN AGREEMENT THAT WAIVES OR LIMITS ITS IMMUNITY DESCRIBED IN SUB- 13 SECTION (1) AND THAT CONTAINS PROVISIONS THE POLITICAL SUBDIVI- 14 SION FINDS APPROPRIATE ON THE ISSUE OF ITS LIABILITY, DAMAGES, OR 15 BOTH FOR COMPUTER DATE FAILURE. 16 (B) THE AUTHORITY OF A GOVERNMENTAL AGENCY TO ENTER INTO AN 17 AGREEMENT THAT WAIVES OR LIMITS ITS IMMUNITY DESCRIBED IN SUBSEC- 18 TION (3) AND THAT CONTAINS PROVISIONS THE GOVERNMENTAL AGENCY 19 FINDS APPROPRIATE ON THE ISSUE OF ITS LIABILITY, DAMAGES, OR BOTH 20 FOR COMPUTER DATE FAILURE. 21 Sec. 13.TheEXCEPT AS PROVIDED IN SECTION 7A WITH 22 RESPECT TO PROVIDING MEDICAL CARE OR TREATMENT TO A PATIENT, THE 23 immunity of the governmental agencyshallDOES not apply to 24 actions to recover for bodily injury or property damage arising 25 out of the performance of a proprietary function as defined in 26 this section. Proprietary functionshall mean anyMEANS AN 27 activitywhichTHAT is conducted primarily for the purpose of 02918'99 10 1 producing a pecuniary profit for the governmental agency, 2 excluding, however,anyAN activity normally supported by taxes 3 or fees.NoAN action shall NOT be brought against the govern- 4 mental agency for injury or property damage arising out of the 5 operation of proprietary function, except for injury or loss suf- 6 fered on or after July 1, 1965. 02918'99 Final page. DAM