HB-4729, As Passed Senate, October 27, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4729

     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 certain

acts and parts of acts; and to validate certain contracts,"

by amending section 4 (MCL 15.324).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4. (1) The prohibitions of section 2  of this act shall

not apply to any of the following:

     (a) Contracts between public entities.  ;

     (b) Contracts awarded to the lowest qualified bidder, other

than a public servant, upon receipt of sealed bids pursuant to a

published notice.  therefor provided such notice does not bar,

House Bill No. 4729 (H-1) as amended June 15, 2005

except  Except as authorized by law, the notice shall not bar any

qualified person, firm, corporation, or trust from bidding. This

subsection shall not apply to amendments or renegotiations of a

contract nor to additional payments  thereunder  made under a

contract which were not authorized by the contract at the time of

award.  ; and

     (c) Contracts for public utility services where the rates

therefor are regulated by the state or federal government.

     (d) Contracts to purchase residential property. A public

servant of a city or village may purchase 1 to 4 parcels not less

than 18 months between each purchase. This subdivision does not

apply to public servants of a city or village who have been

appointed or elected to their position or whose employment

responsibilities include the purchase or selling of property for

the city or village.  [this subdivision shall apply only to a city or

village that has adopted an ethics ordinance which was in effect at the

time the residential property was purchased.]

     (2) A person that violates subsection (1)(d) is guilty of a

felony punishable by imprisonment for not more than 1 year or a

fine of not less than $1,000.00 or more 3 times the value of the

property purchased.