Bill Text: MI HB5150 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Civil procedure; remedies; judgments against municipalities; limit ability to collect by levying a tax or issuing bonds. Amends secs. 6093 & 6097 of 1961 PA 236 (MCL 600.6093 & 600.6097). TIE BAR WITH: HB 5151'15

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-12-16 - Printed Bill Filed 12/16/2015 [HB5150 Detail]

Download: Michigan-2015-HB5150-Introduced.html

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HOUSE BILL No. 5150

December 15, 2015, Introduced by Rep. Poleski and referred to the Committee on Local Government.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 6093 and 6097 (MCL 600.6093 and 600.6097),

 

section 6097 as amended by 2002 PA 224.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6093. (1) Whenever judgment is recovered against any

 

township, village, or city, or against the trustees or common

 

council, or officers thereof, in any action prosecuted by or

 

against them in their name of office, the clerk of the court shall,

 

on the application of the party in whose favor judgment is

 

rendered, his attorney, executor, administrator, or assigns, make

 

and deliver to the party so applying a certified transcript of the

 

judgment, showing the amount and date thereof, with the rate of

 

interest thereon, and of the costs as taxed under the seal of the

 

court, if in a court having a seal. The party obtaining the

 

certified transcript may file it with the supervisor of the

 

township, if the judgment is against the township, or with the

 

assessing officer or officers of the city or village, if the

 

judgment is against a city or village. The supervisor or assessing

 

officer receiving the certified transcript or transcripts of

 

judgment shall proceed to assess the amount thereof with the costs

 

and interests from the date of rendition of judgment to the time

 

when the warrant for the collection thereof will expire upon the

 

taxable property of the township, city, or village upon the then

 

next tax roll of such township, city, or village, without any other

 

or further certificate than the certified transcript as a part of

 

the township, city, or village tax, adding the total amount of the

 

judgment to the other township, city, or village taxes and

 

assessing it in the same column with the general township, city, or

 

village tax.

 

     The supervisor or assessing officer shall set forth in the

 

warrant attached to the tax roll each judgment separately, stating

 

the amount thereof and to whom payable, and it shall be collected

 

and returned in the same manner as other taxes. The supervisor or

 

assessing officer, at the time when he delivers the tax roll to the

 

treasurer or collecting officer of any township, city, or village,

 

shall deliver to the township clerk or to the clerk or recording

 

officer of the city or village, a statement in writing under his

 

hand, setting forth in detail and separately the judgment stating

 

the amount with costs and interest as herein provided, and to whom

 

payable. The treasurer or collecting officer of the township, city,

 

or village, shall collect and pay the judgment to the owner thereof

 

or his attorney, on or before the date when the tax roll and

 

warrant shall be returnable. In case any supervisor, treasurer, or

 

other assessing or collecting officer neglects or refuses to comply

 

with any of the provisions of this section he shall be guilty of a

 

misdemeanor, and on conviction thereof, shall be punished by a fine

 

of not more than $1,000.00 and costs of prosecution, or

 

imprisonment in the county jail for a period not exceeding 3

 

months, or by both fine and imprisonment in the discretion of the

 

court. Nothing herein contained shall be construed to exclude other

 

remedies given by law for the enforcement of the judgment.

 

     (2) In any case where a judgment is recovered against a

 

village which, by reason of holding no municipal elections, or for

 

any other reason has no available assessing officer within the

 

jurisdiction of the court wherein the judgment is rendered, the

 

owner of the judgment or any person knowing the facts, acting on

 

behalf of the owner, may make an affidavit showing that the village

 

against which a judgment is pending and unsatisfied, has no

 

available assessing officer within the jurisdiction, and file it

 

with the clerk of the court wherein the judgment is written. The

 

officer who makes the certified transcript shall attach thereto a

 

copy of the affidavit, the correctness of which copy shall also be

 

certified to in the certificate. Any party receiving the certified

 

transcript of judgment and affidavit may file it with the

 

supervisor of the township in which the village, having no

 

assessing officer is located. The supervisor shall assess the

 

amount of the judgment with costs and interest, upon the taxable

 

property of the village, which is without an assessing officer, and

 

thereafter the same steps and proceedings shall be had in the

 

premises as though it were a judgment against the township within

 

which the village is located, except that it shall be assessed

 

against the property within the corporate limits of the village

 

only.

 

     (3) When judgment is recovered against any county or the board

 

of supervisors or any county officer in an action prosecuted by or

 

against him in his name of office, the judgment unless reversed

 

shall be levied and collected as other county charges, and when

 

collected shall be paid by the county treasurer to the person to

 

whom the judgment has been adjudged upon the delivery of a proper

 

voucher therefor.

 

     (1) After a judgment against a municipality becomes final, the

 

plaintiff may move the court to enter an order for the payment of

 

the judgment from the ad valorem taxes on property collected for

 

the municipality under the general property tax act, 1893 PA 206,

 

MCL 211.1 to 211.155, as provided in this section.

 

     (2) On motion by a plaintiff under subsection (1), the court

 

shall order a local tax collecting unit that collects taxes on

 

property for the municipality to pay all or part of the judgment

 

from the taxes collected. An order under this subsection must state

 

all of the following:

 

     (a) The person to whom the payments are to be paid. The court

 

may order that payments be made to the clerk of the court, the

 

attorney for the plaintiff, or the plaintiff.

 

     (b) The total amount to be paid. The court may, in its

 

discretion, include the full amount of the judgment, with costs and

 

interest, or limit the amount to be paid under the order to an

 

amount that is less than the full amount of the judgment.

 

     (c) A date on which the order expires and an order that the

 

treasurer or other collecting official of the local tax collecting

 

unit make payments on the applicable schedule under section 43 of

 

the general property tax act, 1893 PA 206, MCL 211.43, or on

 

another schedule as ordered by the court until the total amount

 

ordered under subdivision (b) is paid or until the date that the

 

order expires, whichever occurs first.

 

     (d) In the discretion of the court, an order that the

 

treasurer or other collection official pay from each payment under

 

subdivision (c) a certain amount or a percentage of the payment to

 

be applied to the amount ordered under subdivision (b).

 

     (3) The treasurer or other collecting official of a local tax

 

collecting unit that receives an order issued under subsection (2)

 

shall comply with the order. The treasurer or other collecting

 

official shall account for money paid in a written report to the

 

court, to the plaintiff's attorney, or, if the plaintiff does not

 

have an attorney, to the plaintiff, and to the supervisor of the

 

municipality or any other official to whom the treasurer or other

 

collecting official is required to report the collection and

 

payment of the taxes under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155.

 

     (4) If an order under subsection (2) provides for the payment

 

of less than the full amount of the judgment or if the order

 

expires and the full amount of the judgment has not been paid, the

 

court may require the plaintiff to make a new motion under

 

subsection (1) for a new order or may issue a subsequent order or

 

orders without the necessity of a new motion by the plaintiff.

 

     (5) A treasurer or other collecting official who neglects or

 

refuses to comply with this section is guilty of a misdemeanor

 

punishable by imprisonment for not more than 93 days or a fine of

 

not more than $1,000.00, or both.

 

     (6) This section does not affect any other remedy provided by

 

law for the enforcement of the judgment.

 

     (7) As used in this section, "municipality" means a county,

 

township, city, or village.

 

     Sec. 6097. (1) If a judgment of a court or administrative

 

agency is rendered against any a municipality, the legislative body

 

of that the municipality , unless otherwise provided, may issue

 

certificates of indebtedness or bonds of that the municipality as

 

provided in this section for the purpose of raising money to pay

 

the judgment, in an amount not exceeding the sum of the judgment,

 

the costs and interest on the judgment, and all the cost in

 

connection with of issuing the certificates of indebtedness or

 

bonds. The

 

     (2) A municipality shall issue and sell certificates of

 

indebtedness or bonds shall be sold and issued under this section

 

in accordance with the revised municipal finance act, 2001 PA 34,

 

MCL 141.2101 to 141.2821, except that they the certificates or

 

bonds may be issued for a period of up to 15 years.

 

     (3) (2) The authorization, issuance, and selling of the bonds

 

under this section are not subject to section 5(g) of the home rule

 

city act, 1909 PA 279, MCL 117.5.

 

     (4) If the issuance of certificates of indebtedness or bonds

 

under this section would result in an increase in the total taxes

 

levied by the municipality, the municipality shall not issue the

 

certificates of indebtedness or bonds unless the issuance has been

 

approved by a vote of the electors of the municipality.

 

     (5) A municipality shall not issue certificates of

 

indebtedness or bonds under this section if the judgment is for the

 

recovery of money paid for a tax, fee, or other assessment that the

 

court or agency determined was illegally or improperly imposed by

 

the municipality.

 

     (6) Any taxes levied for the payment of certificates of

 

indebtedness or bonds issued under this section are subject to any

 

limitations imposed by the constitution of this state, including,

 

but not limited to, limitations imposed by sections 6 and 25 to 34

 

of article IX of the state constitution of 1963, to any limitations

 

applicable to taxes levied by the municipality imposed by statute,

 

and to any limitations in the municipality's charter, if

 

applicable.

 

     (7) (3) As used in this section, "municipality" means a

 

county, township, city, village, school district, intermediate

 

school district, community college district, metropolitan district,

 

port district, drainage district established under the drain code

 

of 1956, 1956 PA 40, MCL 280.1 to 280.630, or another governmental

 

authority or agency in this state which that has the power to levy

 

ad valorem property 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. 5151 (request no.

 

03586'15 a *) of the 98th Legislature is enacted into law.