June 11, 2020, Introduced by Senator LUCIDO and referred to the Committee on Government Operations.

A bill to prohibit the expenditure of state and local funds on the settlement of certain claims and actions or on certain judgments; and to require public officials to reimburse public entities for certain expenditures of public funds.

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 if 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.