HOUSE BILL No. 4585


     April 8, 1997, Introduced by Reps. Hanley, Mans, Hale, Wojno, Scott, Schermesser, LaForge, Kilpatrick, Schauer and Thomas and referred to the Committee on Local Government.


        A bill to amend 1968 PA 317, entitled

   "An act relating to the conduct of public servants in respect to
   governmental decisions and contracts with public entities; to
   provide penalties for the violation of this act; to repeal cer-
   tain acts and parts of acts; and to validate certain contracts,"

   by amending section 3 (MCL 15.323), as amended by 1984 PA 184;

   and to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 3.  (1) Section 2  shall  DOES not apply  to either  IF

 2    ALL of the following REQUIREMENTS ARE MET:

 3         (A) ONE OR MORE OF THE FOLLOWING APPLY:

 4         (i)  (a) A  THE public servant  who  is paid for working an

 5    average of 25 hours per week or less for a public entity.

 6         (ii)  (b) A  THE public servant  who  is an employee of a

 7    public community college, junior college, or state college or

 8    university.



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 1          (2) A contract as defined in and limited by section 2

 2     involving a public entity and a public servant described in sub-

 3     section (1) shall meet all of the following requirements: 

 4         (iii) THE CONTRACT GOVERNS THE RECEIPT OF A FEDERAL GRANT OR

 5    LOAN AND THE PUBLIC SERVANT IS AN EMPLOYEE OF THE PUBLIC ENTITY.

 6         (B)  (a)  The public servant promptly discloses any pecuni-

 7    ary interest in the contract to the official body  which  THAT

 8    has power to approve the contract.  , which  THE disclosure shall

 9    be made a matter of record in  its  THE official proceedings OF

10    THE APPROVING BODY.

11         (C)  (b)  The contract is approved by a vote of not less

12    than 2/3 of the full membership of the approving body in open

13    session without the vote of the public servant making the

14    disclosure.

15         (D)  (c)  The  official  APPROVING body discloses the fol-

16    lowing summary information in its official minutes:

17         (i) The name of each party involved in the contract.

18         (ii) The terms of the contract, including duration, finan-

19    cial consideration between parties, facilities or services of the

20    public entity included in the contract, and the nature and degree

21    of assignment of employees of the public entity for fulfillment

22    of the contract.

23         (iii) The nature of any pecuniary interest.

24         (2)  (3)  This section and section 2  shall  DO not prevent

25    a public servant from making or participating in making a govern-

26    mental decision to the extent that the public servant's

27    participation is required by law.  If 2/3 of the members are not



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 1    eligible under this act to vote on a contract or to constitute a

 2    quorum, a member may be counted for purposes of a quorum and may

 3    vote on the contract if the member will directly benefit from the

 4    contract in an amount less than $250.00 and less than 5% of the

 5    public cost of the contract and the member files a sworn affida-

 6    vit to that effect with the official body.  The affidavit shall

 7    be made a part of the public record of the official proceedings.

 8    As used in this subsection, "governmental decision" means a

 9    determination, action, vote, or disposition upon a motion, pro-

10    posal, recommendation, resolution, ordinance, order, or measure

11    on which a vote by members of a local legislative or governing

12    body of a public entity is required and by which a public body

13    effectuates or formulates public policy.

14         Enacting section 1.  Sections 9 and 10 of 1968 PA 317, MCL

15    15.329 and 15.330, are repealed.



























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