SENATE BILL NO. 1339


   September 24, 1998, Introduced by Senator GEAKE 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  EXCEPT AS OTHERWISE
             PROVIDED IN

 2    SUBSECTION (3), ALL MONEY received by the attorney general, for

 3    debts due, or penalties forfeited to the people of this state,

 4    shall be paid by him or her, immediately after receipt, into the

 5    state treasury.

 6         (2) Except as otherwise provided in  this section
             

 7    SUBSECTIONS (1) AND (3), any proceeds from a lawsuit settlement

 8    entered into by a state agency, department, division, bureau,

 9    board, commission, council, authority, or other body in the

10    executive branch of state government or an individual acting on

11    behalf of the executive branch of state government as the result


   06852'98                                                 JLB
           
                                   2

 1    of an action instituted on behalf of the state against a private

 2    individual or business or any other private organization shall be

 3    deposited into a restricted fund to be used as provided by law.

 4    In case of a conflict between this section and another state or

 5    federal law that requires allocation to a specific fund or

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

 7    statute or federal law shall prevail.

 8         (3) ANY PROCEEDS FROM A LAWSUIT INITIATED BY OR SETTLEMENT

 9    AGREEMENT ENTERED INTO ON BEHALF OF THIS STATE AGAINST A MANUFAC-

10    TURER OF TOBACCO PRODUCTS BY THE ATTORNEY GENERAL SHALL BE

11    RETURNED TO THE PEOPLE OF THIS STATE IN THE SAME MANNER AS EXCESS

12    REVENUES ARE REFUNDED UNDER SECTION 26 OF ARTICLE IX OF THE STATE

13    CONSTITUTION OF 1963.

14         (4)  (3)  As used in this section, "proceeds"
             means a cash

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

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

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

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

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

20    or parties to a contract with the state.

















   06852'98          Final page.                            JLB