CONTENT

Senate Bill 1216 would amend Section 33 of Chapter 12 of the revised statutes of 1846, entitled, "of certain state officers". The amendment to Section 33 would require that funds received by the State as a result of a lawsuit settlement entered into by the Attorney General would be deposited into a restricted fund as provided by law. The bill specifies that any settlement funds whose proceeds are controlled by another State statute or Federal law would not be deposited into the restricted fund but would be deposited into the fund required by the existing State statute or Federal law. The provisions of Senate Bill 1216 only apply to cash settlements and do not apply to settlements that include real property, stocks, bonds or other similar evidences of indebtedness.

The expenditure of the settlement funds deposited in the restricted fund could then only be expended pursuant to State appropriation. This change will eliminate the current practice where some lawsuit settlement funds are distributed, without an appropriation, based on agreements between the Attorney General and other parties involved in the lawsuit.

MCL 14.33

FISCAL IMPACT

Senate Bill 1216 would have no direct fiscal impact on the State. Passage of the bill could result in the appropriation of lawsuit settlement funds that are now distributed without a State appropriation.

Fiscal Analyst: G. Olson

S9596\S1216SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Page 1 of 1 sb1216/9596