HOUSE BILL No. 5117


     October 2, 2001, Introduced by Rep. Spade and referred to the Committee on Appropriations.


        A bill to amend 1984 PA 431, entitled

   "The management and budget act,"

   (MCL 18.1101 to 18.1594) by adding section 397.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 397.  (1) THE STATE POLICE RETIREMENT REIMBURSEMENT

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      FUND IS CREATED WITHIN THE STATE TREASURY.  THE DEPARTMENT SHALL

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      EXPEND MONEY FROM THE FUND, UPON APPROPRIATION, ONLY TO REIMBURSE

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      INDIVIDUALS WHO RECEIVED DISABILITY RETIREMENT ALLOWANCES FROM

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      THE DEPARTMENT OF STATE POLICE BETWEEN JANUARY 1, 1985 AND

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      DECEMBER 31, 1995 AND WHO HAD FEDERAL INCOME TAXES WITHHELD BY

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      THIS STATE FROM THE DISABILITY RETIREMENT ALLOWANCES.

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           (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS

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      FROM ANY SOURCE FOR DEPOSIT INTO THE FUND.  THE STATE TREASURER

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      SHALL DIRECT THE INVESTMENT OF THE FUND.  THE STATE TREASURER

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      SHALL CREDIT TO THE FUND INTEREST AND EARNINGS FROM FUND


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      INVESTMENTS.  MONEY IN THE FUND AT THE CLOSE OF THE FISCAL YEAR

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      SHALL REMAIN IN THE FUND AND SHALL NOT LAPSE TO THE GENERAL

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      FUND.

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           (3) THE AMOUNT THAT AN INDIVIDUAL MAY RECEIVE UNDER THIS

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      SECTION IS LIMITED TO THE FEDERAL INCOME TAXES WITHHELD FROM THE

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      INDIVIDUAL'S RETIREMENT ALLOWANCE BETWEEN JANUARY 1, 1985 AND

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      DECEMBER 31, 1995 AND NOT PREVIOUSLY REFUNDED TO THE INDIVIDUAL

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      BY THIS STATE OR THE UNITED STATES.

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           (4) IN ORDER FOR AN INDIVIDUAL TO RECEIVE AMOUNTS UNDER THIS

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      SECTION, THE INDIVIDUAL SHALL DEMONSTRATE THE FOLLOWING TO THE

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      SATISFACTION OF THE DEPARTMENT:

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           (A) THAT THE INDIVIDUAL RECEIVED DISABILITY RETIREMENT

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      ALLOWANCES FROM THE DEPARTMENT OF STATE POLICE UNDER 1 OF THE

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      FOLLOWING CIRCUMSTANCES:

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           (i) A DUTY INCURRED DISABILITY UNDER SECTION 26 OF THE STATE

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      POLICE RETIREMENT ACT OF 1986, 1986 PA 182, MCL 38.1626.

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           (ii) A NONDUTY INCURRED DISABILITY UNDER SECTION 28 OF THE

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      STATE POLICE RETIREMENT ACT OF 1986, 1986 PA 182, MCL 38.1628.

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           (B) THAT THE INDIVIDUAL RECEIVED THE DISABILITY RETIREMENT

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      ALLOWANCES BETWEEN JANUARY 1, 1985 AND DECEMBER 31, 1995.

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           (C) THE AMOUNT OF FEDERAL INCOME TAX WITHHELD BY THIS STATE

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      FROM THE DISABILITY RETIREMENT ALLOWANCES.

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           (D) THAT THE INDIVIDUAL DID NOT RECEIVE A REFUND OF THE FED-

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      ERAL TAXES WITHHELD BY THIS STATE FROM THIS STATE OR THE UNITED

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      STATES.







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           (5) THE DEPARTMENT SHALL REIMBURSE EACH INDIVIDUAL WHO

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      COMPLIES WITH SUBSECTION (4) WITHIN 30 DAYS AFTER THE INDIVIDUAL

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      HAS COMPLIED WITH SUBSECTION (4).

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           (6) PAYMENTS FROM THIS FUND SHALL NOT BE MADE FOR CLAIMS

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      RECEIVED BY THE DEPARTMENT OF TREASURY MORE THAN 2 YEARS AFTER

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      THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION.












































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