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The problem is:
1. Allegations of police misconduct should be investigated by U.S. Attorneys rather than the local prosecutors' office that those police departments work closely with on a daily basis.
2. Settlements resulting from police misconduct currently are paid by taxpayers. Thus there is a moral hazard for police as they can conduct themselves how they want, and they pass the costs to the local taxpayers. Instead, they should be required to carry an insurance policy and settlements that a department has to pay out for police misconduct can be paid by that. That way, there is a financial incentive for them to get rid of bad cops and bad cops would result in their insurance premiums going up.
I would also point out that sometimes police departments are not accountable to city hall. For example, here in KC, its state law that the police department is independent from the local government.
Another idea is that civil suits can be paid directly from the officer’s pension.