HOUSE BILL No. 5454


     November 27, 2001, Introduced by Reps. Bishop, Vander Veen, Pappageorge, Vander Roest and Shackleton and referred to the Committee on Civil
Law and the Judiciary.


        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 the title and sections 8 and 9 (MCL 691.1408 and

   691.1409), the title as amended by 1986 PA 175.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:








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                                    TITLE

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           An act to make uniform the liability of municipal corpora-

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      tions, political subdivisions, and the state, its agencies and

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      departments, officers, employees, and volunteers thereof, and

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      members of certain boards, councils, and task forces when engaged

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      in the exercise or discharge of a governmental function, for

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      injuries to property and persons; to define and limit this

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      liability; to define and limit the liability of the state when

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      engaged in a proprietary function; to authorize the purchase of

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      liability insurance to protect against loss arising out of this

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      liability; to provide for defending certain claims made against

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      public officers, EMPLOYEES, AND VOLUNTEERS and FOR paying damages

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      sought or awarded against them; to provide for the legal defense

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      of public officers,  and  employees, AND VOLUNTEERS; to provide

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      for reimbursement of public officers and employees for certain

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      legal expenses; and to repeal  certain  acts and parts of acts.

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           Sec. 8.  (1) Whenever a claim is made or a civil action is

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      commenced against an officer,  or  employee, OR VOLUNTEER of a

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      governmental agency for injuries to persons or property caused by

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      negligence of the officer,  or  employee, OR VOLUNTEER while in

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      the course of employment WITH OR ACTIONS ON BEHALF OF THE GOVERN-

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      MENTAL AGENCY and while acting within the scope of his or her

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      authority, the governmental agency may pay for, engage, or fur-

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      nish the services of an attorney to advise the officer,  or

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      employee, OR VOLUNTEER as to the claim and to appear for and rep-

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      resent the officer,  or  employee, OR VOLUNTEER in the action.

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      The governmental agency may compromise, settle, and pay the claim



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      before or after the commencement of a civil action.  Whenever a

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      judgment for damages is awarded against an officer,  or

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      employee, OR VOLUNTEER of a governmental agency as a result of a

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      civil action for personal injuries or property damage caused by

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      the officer,  or  employee, OR VOLUNTEER while in the course of

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      employment and while acting within the scope of his or her

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      authority, the governmental agency may indemnify the officer,

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       or  employee, OR VOLUNTEER or pay, settle, or compromise the

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      judgment.

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           (2) When a criminal action is commenced against an officer

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      or employee of a governmental agency based upon the conduct of

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      the officer or employee in the course of employment, if the

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      employee or officer had a reasonable basis for believing that he

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      or she was acting within the scope of his or her authority at the

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      time of the alleged conduct, the governmental agency may pay for,

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      engage, or furnish the services of an attorney to advise the

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      officer or employee as to the action, and to appear for and rep-

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      resent the officer or employee in the action.  An officer or

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      employee who has incurred legal expenses after December 31, 1975

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      for conduct prescribed in this subsection may obtain reimburse-

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      ment for those expenses under this subsection.

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           (3) This section  shall  DOES not impose  any  liability
   on

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      a governmental agency.

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           Sec. 9.  (1)  The purchase of  A GOVERNMENTAL AGENCY MAY

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      PURCHASE liability insurance to indemnify and protect THE govern-

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      mental  agencies  AGENCY against loss or to protect THE

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      governmental  agencies and some or all of its agents, officers,



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      and employees  AGENCY AND AN AGENT, OFFICER, EMPLOYEE, OR

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      VOLUNTEER OF THE GOVERNMENTAL AGENCY against loss on account of

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       any  AN ADVERSE judgment  secured against it, or them, arising

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      out of any  ARISING FROM A claim for personal injury or property

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      damage caused by  such  THE governmental agency  , its officers,

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      or employees, is authorized, and all governmental agencies are

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      authorized to  OR ITS AGENT, OFFICER, EMPLOYEE, OR VOLUNTEER.  A

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      GOVERNMENTAL AGENCY MAY pay premiums for the insurance AUTHORIZED

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      BY THIS SECTION out of current funds.

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           (2) The existence of  any policy of  AN insurance POLICY

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      indemnifying  any  A governmental agency against liability for

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      damages is not a waiver of  any  A defense otherwise available to

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      the governmental agency in the defense of the claim.































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