Michigan Compiled Laws

Mich. Comp. Laws § 18.1396 (2026)

Paying or recording certain expenditures from appropriations; notice of certain settlements or consent judgments; report.

✓ current as of July 2026
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THE MANAGEMENT AND BUDGET ACT


Act 431 of 1984


18.1396 Paying or recording certain expenditures from appropriations; notice of certain settlements or consent judgments; report.

Sec. 396.

    (1) From the appropriations contained in a budget act, a state agency shall pay or record expenditures for the following:

    (a) Court judgments, including court approved consent judgments; all settlements, awards, and claims.

    (b) Writeoffs of accounts receivable recorded in a prior year.

    (2) The attorney general shall notify the senate and house appropriations committees, the speaker of the house, the senate majority leader, and the fiscal agencies within 14 days after entering into a settlement or consent judgment which would result in a state obligation that exceeds $200,000.00. The notice shall include a summary of the facts of the case and the reason or reasons that the settlement or consent judgment would be in the best interests of the state.

    (3) Before December 1 of each year, each principal department shall transmit to the appropriations committees and fiscal agencies a written report which includes all of the following:

    (a) The total dollar amount of final judgments and settlements against the principal department for the most recent completed fiscal year.

    (b) Each source of funding and item appropriating money in a budget act, which source and item is used to pay the judgments and settlements pursuant to subdivision (a).

    (c) The total dollar amount of final judgments and settlements received in the most recent completed fiscal year pursuant to legal actions by the principal department.

    (d) Each revenue account in which money was credited pursuant to subdivision (c).

    (e) An estimate of the total dollar amount and a description of the facts involved in each court action currently pending against the department for the most recently completed fiscal year.

History: Add. 1988, Act 504, Imd. Eff. Dec. 29, 1988 ;-- Am. 1999, Act 8, Imd. Eff. Mar. 22, 1999

PopularName Notes:

Act 431

PopularName Notes:

DMB
Notes of Decisions
Cited in 3 cases, 1994–2018 · leading case: Nathaniel Brent v. Wayne Cty. Dep't of Human Servs., 901 F.3d 656 (6th Cir. 2018).
Nathaniel Brent v. Wayne Cty. Dep't of Human Servs., 901 F.3d 656 (6th Cir. 2018). “See Mich. Comp. Laws § 18.1396 . The second and third factors also point strongly in favor of treating Wayne County DHS as an arm of the state.”
Humphrey v. Kleinhardt, 157 F.R.D. 404 (W.D. Mich. 1994). · cites it 2× “See MCL § 18.1396. Even a cursory perusal of the dockets of the federal courts of this State, and the state courts, would reveal that the Attorney General has represented the Michigan Department of Corrections and its employees in countless proceedings of a nature similar to…”
Zdebski v. Schmucker, 972 F. Supp. 2d 972 (E.D. Mich. 2013). “§ 18.1396(l)(a). This factor weighs heavily towards finding that PACC is an arm of the state.”
— Mich. Comp. Laws § 18.1396(l)(a) — 1 case
Zdebski v. Schmucker, 972 F. Supp. 2d 972 (E.D. Mich. 2013). “§ 18.1396(l)(a). This factor weighs heavily towards finding that PACC is an arm of the state.”
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