Bill Text: MI SB1057 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Local government; financing; immunity protections provided to an emergency manager; eliminate, and require this state to be responsible for litigation expenses of an emergency manager. Amends sec. 20 of 2012 PA 436 (MCL 141.1560). TIE BAR WITH: SB 1059'16
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2016-12-06 - Senate Requests Return [SB1057 Detail]
Download: Michigan-2015-SB1057-Introduced.html
SENATE BILL No. 1057
September 7, 2016, Introduced by Senators ANANICH, HERTEL and BIEDA and referred to the Committee on Government Operations.
A bill to amend 2012 PA 436, entitled
"Local financial stability and choice act,"
by amending section 20 (MCL 141.1560).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
20. (1) An emergency manager is immune from liability as
provided
in section 7(5) of 1964 PA 170, MCL 691.1407.not protected
by the immunity conferred by 1964 PA 170, MCL 691.1401 to 691.1419.
(2) A person employed by an emergency manager is immune from
liability as provided in section 7(2) of 1964 PA 170, MCL 691.1407.
(3) (2)
The attorney general shall defend
any civil claim,
demand,
or lawsuit which that challenges any of the following:
(a) The validity of this act.
(b) The authority of a state official or officer acting under
this act.
(c) The authority of an emergency manager if the emergency
manager is or was acting within the scope of authority for an
emergency manager under this act.
(4) (3)
With respect to any aspect of a
receivership under
this act, the costs incurred by the attorney general in carrying
out
the responsibilities of subsection (2) (3) for attorneys,
experts, court filing fees, and other reasonable and necessary
expenses
shall be at the expense of the local government that is
subject
to that receivership and shall be reimbursed to the
attorney
general by the local government. The failure of a
municipal
government that is or was in receivership to remit to the
attorney
general the costs incurred by the attorney general within
30
days after written notice to the municipal government from the
attorney
general of the costs is a debt owed to this state and
shall
be recovered by the state treasurer as provided in section
17a(5)
of the Glenn Steil state revenue sharing act of 1971, 1971
PA
140, MCL 141.917a. The failure of a school district that is or
was
in receivership to remit to the attorney general the costs
incurred
by the attorney general within 30 days after written
notice
to the school district from the attorney general of the
costs
is a debt owed to this state and shall be recovered by the
state
treasurer as provided in the state school aid act of 1979,
1979
PA 94, MCL 388.1601 to 388.1896.borne
by this state and shall
be paid from the general fund of this state.
(5) (4)
An emergency manager may procure
and maintain, at the
expense of the local government for which the emergency manager is
appointed, worker's compensation, general liability, professional
liability, and motor vehicle insurance for the emergency manager
and any employee, agent, appointee, or contractor of the emergency
manager as may be provided to elected officials, appointed
officials, or employees of the local government. The insurance
procured and maintained by an emergency manager may extend to any
claim, demand, or lawsuit asserted or costs recovered against the
emergency manager and any employee, agent, appointee, or contractor
of the emergency manager from the date of appointment of the
emergency manager to the expiration of the applicable statute of
limitation if the claim, demand, or lawsuit asserted or costs
recovered against the emergency manager or any employee, agent,
appointee, or contractor of the emergency manager resulted from
conduct of the emergency manager or any employee, agent, appointee,
or contractor of the emergency manager taken in accordance with
this act during the emergency manager's term of service.
(6) (5)
If, after the date that the service
of an emergency
manager is concluded, the emergency manager or any employee, agent,
appointee, or contractor of the emergency manager is subject to a
claim, demand, or lawsuit arising from an action taken during the
service of that emergency manager, and not covered by a procured
worker's compensation, general liability, professional liability,
or motor vehicle insurance, litigation expenses of the emergency
manager or any employee, agent, appointee, or contractor of the
emergency manager, including attorney fees for civil and criminal
proceedings and preparation for reasonably anticipated proceedings,
and payments made in settlement of civil proceedings both filed and
anticipated,
shall be paid out of the funds of the local government
that
is or was subject to the receivership administered by that
emergency
manager, provided that the litigation expenses are
approved
by the state treasurer and that the state treasurer
determines
that the conduct resulting in actual or threatened legal
proceedings
that is the basis for the payment is based upon both of
the
following:borne by this state
and shall be paid from the
general fund of this state. This subsection is retroactive and
takes effect January 1, 2012.
(a)
The scope of authority of the person or entity seeking the
payment.
(b)
The conduct occurred on behalf of a local government while
it
was in receivership under this act.
(6)
The failure of a municipal government to honor and remit
the
legal expenses of a former emergency manager or any employee,
agent,
appointee, or contractor of the emergency manager as
required
by this section is a debt owed to this state and shall be
recovered
by the state treasurer as provided in section 17a(5) of
the
Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL
141.917a.
The failure of a school district to honor and remit the
legal
expenses of a former emergency manager or any employee,
agent,
appointee, or contractor of the emergency manager as
required
by this section is a debt owed to this state and shall be
recovered
by the state treasurer as provided in the state school
aid
act of 1979, 1979 PA 94, MCL 388.1601 to 388.1896.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No 1059
of the 98th Legislature is enacted into law.
