(1) Before legally binding the state by executing an action settlement agreement that might cost government entities more than $250,000 to implement, inclusive of the cost of the required action and any required monetary payment, an agency shall submit the proposed settlement agreement, including all terms material to the settlement, to the governor for the governor's approval or rejection. (2) The governor shall approve or reject each action settlement agreement. (3) (a) If the governor approves the action settlement agreement, the agency may execute the agreement. (b) If the governor rejects the action settlement agreement, the agency may not execute the agreement. (4) If an agency executes an action settlement agreement without obtaining the governor's approval under this section, the governor may issue an executive order declaring the settlement agreement void. (5) An agency executing an agreement under this section shall give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.
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