HOUSE BILL No. 5397

 

 

January 11, 2018, Introduced by Rep. Lucido and referred to the Committee on Appropriations.

 

     A bill to prohibit expenditure of state and local funds on the

 

settlement of certain claims and actions or on certain judgments.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Local unit of government" means a city, village,

 

township, or county.

 

     (b) "Public entity" means this state or an agency or authority

 

of this state or a local unit of government.

 

     (c) "Public funds" means both of the following:

 

     (i) Funds drawn from the state treasury or other fund of this

 

state.


     (ii) Funds drawn from revenue collected or imposed by a local

 

unit of government.

 

     (d) "Public official" means an individual who holds an

 

elective or appointive office of a public entity.

 

     Sec. 3. (1) A public entity shall not make an expenditure of

 

public funds to settle a claim or action or pay a court-ordered

 

judgment involving the gross negligence, intentional misconduct, or

 

criminal conduct of a public official.

 

     (2) If a court finds that a public official was grossly

 

negligent or engaged in intentional misconduct, or the public

 

official is convicted of a crime, the public official shall, within

 

30 days after the finding or conviction becomes final, reimburse a

 

public entity for any public funds the public entity expended in

 

the defense of the public official.

 

     Enacting section 1. This act takes effect 90 days after the

 

date it is enacted into law.