SENATE BILL NO. 127


   January 27, 1999, Introduced by Senators GAST, MC MANUS, 
        STILLE and VAN REGENMORTER and referred to the 
        Committee on Appropriations.



        A bill to amend 1846 RS 12, entitled

   "Of certain state officers,"

   by amending section 33 (MCL 14.33), as amended by 1996 PA 563.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 33.  (1) All  moneys  MONEY received by
             the attorney

 2    general, for debts due, or penalties forfeited to the people of

 3    this state, shall be paid by him or her, immediately after

 4    receipt, into the state treasury.

 5         (2) Except as otherwise provided in this section, any pro-

 6    ceeds from a lawsuit settlement entered into by a state agency,

 7    department, division, bureau, board, commission, council, author-

 8    ity, or other body in the executive branch of state government or

 9    an individual acting on behalf of the executive branch of state

10    government as the result of an action instituted on behalf of the

11    state against a private individual or business or any other


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 1    private organization shall be deposited into a restricted fund

 2     to  AND be used ONLY ON APPROPRIATION as provided
              by law  IN

 3    SECTION 443A OF THE MANAGEMENT AND BUDGET ACT, 1984 PA 431, MCL

 4    18.1443A. In case of a conflict between this section and 
             another

 5     state or  federal law that requires allocation to a
                       specific fund

 6    or account or for a specific purpose or purposes,  that
             other

 7     state statute or  THEN federal law  shall
                       prevail  PREVAILS.

 8         (3) As used in this section, "proceeds" means a cash

 9    settlement.  Proceeds does not include real property or stocks,

10    bonds, or other evidences of indebtedness unless these items are

11    to be converted into cash as part of the settlement or payments

12    to be made to a specifically designated party as a result of the

13    settlement of a contractual dispute between the state and a party

14    or parties to a contract with the state.





























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