HOUSE BILL No. 5667


     February 14, 2002, Introduced by Rep. Julian and referred to the Committee on House Oversight and Operations.


        A bill to amend 1943 PA 240, entitled

   "State employees' retirement act,"

   by amending section 9 (MCL 38.9).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 9.  (1)  (a) State treasurer custodian of funds.  All

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        bonds or other obligations purchased according to section 8 shall

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        be  forthwith  placed in the hands of the state treasurer, who is

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        hereby designated as custodian  thereof  OF THE BONDS OR OTHER

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        OBLIGATIONS, and it shall be his OR HER duty to collect the prin-

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        cipal  thereof  and the interest  thereon  ON THE BONDS OR OTHER

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        OBLIGATIONS as  the same becomes  THEY BECOME due and payable,

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        and  place  DEPOSIT the  same  PRINCIPAL AND INTEREST when
     so

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        collected into the retirement system's funds  herein  provided

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        for bonds or other obligations.  The administrative board may

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        sell any of  said  THE bonds  ,  or other obligations upon like


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        resolution, and the proceeds  thereof  OF THE BONDS OR OTHER

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        OBLIGATIONS shall be paid by the purchaser to the state treasurer

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        upon delivery to him OR HER of  said  THOSE bonds or other obli-

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        gations by the state treasurer.

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             (2)  (b)  The state treasurer shall be the custodian of all

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        other funds of the retirement system and all disbursements

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         therefrom  shall be paid by the  auditor general  STATE

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        TREASURER upon vouchers  duly  authorized by the retirement board

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        and bearing the signature of the  duly  authorized officer of the

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        retirement board.  The state treasurer shall give a separate and

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        additional bond in  such  AN amount as may be  fixed  ESTABLISHED

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        by the retirement board in the sum of not to exceed $100,000.00

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        which bond shall be approved by the  auditor general and  attor-

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        ney general and shall be conditioned for the faithful performance

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        of his OR HER duties as custodian of the funds of the retirement

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        system.  provided for herein.  The cost of  such  THE bond shall

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        be paid out of the expense fund of the retirement board.   Such

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        THE bond shall be deposited with the secretary of state and kept

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        in his OR HER office.

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             (3)  (c)  The state treasurer is hereby authorized and

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        directed to deposit any portion of the funds of the retirement

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        system not needed for immediate use in the same manner and

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        subject to all the provisions of law with respect to the deposit

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        of state funds by  such  THE STATE treasurer, and all interest

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        earned  by such portion of the said  ON retirement system's funds

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        as may be deposited by the state treasurer  in pursuance of





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        authority herewith given  UNDER THIS ACT shall be collected by

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        him OR HER and placed to the credit of the retirement fund.




















































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