HOUSE JOINT RESOLUTION P


     February 16, 2000, Introduced by Reps. Cameron Brown, Julian, Patterson, Faunce, Van Woerkom, Woronchak, Kowall,
Hager, Vear, Birkholz, Caul, Richardville, Middaugh, Jelinek, Ruth Johnson, Shackleton, Mortimer and Ehardt and referred to the
Committee on Constitutional Law and Ethics.


        A joint resolution proposing an amendment to the state con-

   stitution of 1963, by adding section 40 to article IX, to provide

   for the protection of the funds of the public school employees'

   retirement system.

        Resolved by the Senate and House of Representatives of the

   state of Michigan, That the following amendment to the state con-

   stitution of 1963, to provide for the protection of the funds of

   the public school employees' retirement system, is proposed,

   agreed to, and submitted to the people of the state:

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                                  ARTICLE IX

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           SEC. 40.  (1) THE MICHIGAN PUBLIC SCHOOL EMPLOYEES' RETIRE-

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      MENT SYSTEM CREATED BY SECTION 21 OF THE PUBLIC SCHOOL EMPLOYEES

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      RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1321, IS ESTABLISHED

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      WITHIN THE DEPARTMENT OF MANAGEMENT AND BUDGET.  THE MICHIGAN

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      PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM MAY RECEIVE


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      APPROPRIATIONS, MONEY, OR OTHER THINGS OF VALUE.  THE STATE

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      TREASURER SHALL DIRECT INVESTMENT OF THE FUNDS OF THE RETIREMENT

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      SYSTEM AND CREDIT INTEREST AND EARNINGS OF THE FUNDS OF THE

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      RETIREMENT SYSTEM TO THE RESPECTIVE RESERVES OF THE RETIREMENT

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      SYSTEM THAT EARNED THE INCOME, AS PROVIDED BY LAW.  EXCEPT FOR

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      THE STATE TREASURER'S ACTIONS AUTHORIZED UNDER THIS SECTION, AN

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      EXPENDITURE OR TRANSFER OF AN ASSET, INTEREST, OR EARNINGS OF THE

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      RETIREMENT SYSTEM MAY BE MADE ONLY UPON THE AUTHORIZATION OF A

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      MAJORITY OF THE MEMBERS OF THE MICHIGAN PUBLIC SCHOOL EMPLOYEES'

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      RETIREMENT BOARD CREATED BY SECTION 22 OF THE PUBLIC SCHOOL

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      EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1322.

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           (2) THE MICHIGAN PUBLIC SCHOOL EMPLOYEES' RETIREMENT BOARD

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      SHALL ADMINISTER THE MICHIGAN PUBLIC SCHOOL EMPLOYEES' RETIREMENT

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      SYSTEM AS PROVIDED IN THIS SECTION AND BY LAW.  THE BOARD SHALL

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      NOT AUTHORIZE THE EXPENDITURE OR TRANSFER OF AN ASSET, INTEREST,

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      OR EARNINGS OF THE RETIREMENT SYSTEM UNLESS THE BOARD DETERMINES

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      IN ITS DISCRETION AND BY A MAJORITY VOTE THAT THE EXPENDITURE OR

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      TRANSFER IS FOR THE BENEFIT OF MEMBERS AND RETIRANTS OF THE

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      RETIREMENT SYSTEM AND THEIR SPOUSES, DEPENDENTS, AND

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      BENEFICIARIES.

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           Resolved further, That the foregoing amendment shall be sub-

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      mitted to the people of the state at the next general election in

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      the manner provided by law.











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