Bill Text: MI HB4300 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Public utilities; electric utilities; home rule city act; update references. Amends sec. 4f of 1909 PA 279 (MCL 117.4f). TIE BAR WITH: HB 4298'15

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-10 - Printed Bill Filed 03/06/2015 [HB4300 Detail]

Download: Michigan-2015-HB4300-Introduced.html

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HOUSE BILL No. 4300

March 5, 2015, Introduced by Rep. Nesbitt and referred to the Committee on Energy Policy.

 

     A bill to amend 1909 PA 279, entitled

 

"The home rule city act,"

 

by amending section 4f (MCL 117.4f), as amended by 2000 PA 156.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4f. Each city may in its charter provide for any of the

 

following:

 

     (a) For the purchase or condemnation of franchises, if any

 

exist, and of the property used in the operation of companies or

 

individuals engaged in the road, cemetery, hospital, almshouse,

 

electric light, gas, heat, water, and power business, and in cities

 

having more than 25,000 inhabitants, for the purchase of the

 

franchise, if any exist, and the property of street railway and

 

tram railway companies. A city may in its charter allow for a

 

contract, upon the terms, including terms of present or deferred

 

payment, and upon the conditions and in the manner as the city

 

considers proper, to purchase, operate, and maintain any existing

 

public utility property for supplying water, heat, light, power, or

 

transportation to the city and the city's inhabitants. The contract

 

does not bind the city unless the proposition for the contract

 

receives the affirmative vote of 3/5 of the electors voting at a

 

regular or special election. For the purchase of a transportation

 

utility, the charter amendment and the contract to purchase may

 

provide for a sinking fund, into which shall be paid, from the

 

earnings of the utility, sums sufficient to purchase the utility

 

and perform the obligations of the contract. Within a reasonable

 

time after the acquisition of a public transportation utility, a

 

system of civil service for the selection and retention of its

 

employees shall be established. If a vote is taken to amend a city

 

charter to allow an acquisition under this subdivision, a vote may

 

also be taken at the same election to approve a particular

 

contract. The vote upon the charter amendment and upon the purchase

 

contract shall be by separate ballots. If a transportation utility

 

is acquired under this subdivision, state taxes and local taxes on

 

any portion of the property lying outside of the city limits shall

 

be paid as if privately owned. The powers under this subdivision

 

are in addition to any other powers provided for under this

 

section.

 

     (b) For owning, constructing, and operating transportation

 

facilities within the city limits, and its adjacent and adjoining

 

suburbs within a distance of 10 miles from any portion of the city

 

limits.

 

     (c) For the purchase and condemnation of private property for

 

any public use or purpose within the scope of its powers; for the

 

acquirement, ownership, establishment, construction, and operation,

 

either within or outside its corporate limits, of public utilities

 

for supplying water, light, heat, power, and transportation to the

 

city and the city's inhabitants, for domestic, commercial, and

 

municipal purposes; for the sale of heat, power, and light outside

 

its corporate limits in an amount as determined by the governing

 

body of the utility supplying the heat, power, or light except that

 

electric delivery service is limited to the area of any village or

 

township that was contiguous to the city as of June 20, 1974, and

 

to the area of any other village or township being served as of

 

June 20, 1974 and retail sales of electric generation service are

 

limited to the area of any city, village, or township that was

 

contiguous to the city, village, or township as of June 20, 1974,

 

and to the area of any other city, village, or township being

 

served as of June 20, 1974 unless the municipal utility is in

 

compliance with section 10y(4) 10y of 1939 PA 3, MCL 460.10y; for

 

the sale and delivery of water outside of its corporate limits in

 

the amount as may be determined by the legislative body of the

 

city; and for the operation of transportation lines outside the

 

city and within 10 miles from its corporate limits. A city shall

 

not render electric delivery service for heat, power, or light to

 

customers outside its corporate limits already receiving that

 

service from another utility unless that utility consents in

 

writing, and shall not render retail electric generation service to

 

customers outside its corporate limits receiving that service from

 

another supplier except in compliance with section 10y of 1939 PA

 

3, MCL 460.10y. The acquirement of a utility together with all

 

properties, franchises, and rights necessary for its establishment,

 

ownership, construction, operation, improvement, extension, and

 

maintenance, whether the properties, franchises, and rights are

 

situated within or outside the corporate limits of the city, may be

 

either by purchase or condemnation. If the acquirement is by

 

condemnation, 1911 PA 149, MCL 213.21 to 213.25, may be used for

 

instituting and prosecuting the condemnation proceedings. A public

 

utility is not acquired unless the proposition to do so first

 

receives the affirmative vote of 3/5 of the electors of the city

 

voting at a regular or special municipal election. For purposes of

 

this subdivision:

 

     (i) "Electric delivery service" has the same meaning as

 

"delivery service" under section 10y of 1939 PA 3, MCL

 

460.10y.means providing electric transmission or distribution to a

 

retail customer.

 

     (ii) "Electric generation service" means the sale of electric

 

power and related ancillary services.

 

     (d) For the acquiring, establishment, operation, extension,

 

and maintenance of sewage disposal systems, sewers, and plants,

 

either within or outside the corporate limits of the city, as a

 

utility, including the right to acquire necessary property by

 

purchase, gift, or condemnation, and including the fixing and

 

collecting of charges exclusively for service covering the cost of

 

the service. This subdivision allows a return on the fair value of

 

the property devoted to the service, excluding the valuations of

 

the portions of the system that were paid for by special

 

assessment, which may be made as a lien upon the property served

 

and if not paid when due, collected in the same manner as other

 

city taxes.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4298 (request no.

 

01467'15) of the 98th Legislature is enacted into law.