Bill Text: MI HB5504 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Drains: financing; allow for inspection and maintenance, prohibit concurrent assessments, and require sealed bids for nonpetitioned maintenance. Amends secs. 31, 196, 221 & 434 of 1956 PA 40 (MCL 280.31 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2020-12-31 - Assigned Pa 291'20 [HB5504 Detail]
Download: Michigan-2019-HB5504-Introduced.html
HOUSE BILL NO. 5504
February 19, 2020, Introduced by Rep. Lower and
referred to the Committee on Local Government and Municipal Finance.
A bill to amend 1956 PA 40, entitled
"The drain code of 1956,"
by amending sections 196 and 434 (MCL 280.196 and 280.434), section 196 as amended by 2008 PA 509 and section 434 as amended by 2002 PA 406.
the people of the state of michigan enact:
Sec. 196. (1) An annual inspection may be made of a
drain established under this act. Inspection An inspection shall also be made upon the request of the governing body
of a public corporation, as defined described in section 461, served in whole
or in part by the drain to be inspected. For county drains, the inspection
shall be made by the drain commissioner, or a competent person appointed by the
drain commissioner. For intercounty drains, the inspection shall be caused to be made by
the drainage board or a competent person appointed by
the drainage board.
(2) Surplus construction
funds remaining after completion of construction of a drain, or funds remaining
after completion of work performed under a petition for maintenance or
improvements under this chapter, shall be deposited in the drain fund of a the drainage district and shall be
expended for inspection, repair, and maintenance of the drain.
(3) If at any time the
drain fund of a drainage district contains less than $5,000.00 per mile or
fraction of a mile of a drain, the drain commissioner or drainage board may
assess the drainage district for an amount not to exceed $2,500.00 per mile or
fraction of a mile in any 1 year. The amount collected under an assessment
shall be deposited in the drain fund of a the drainage
district for necessary inspection,
repair, and maintenance of the drain.
(4) If an inspection
discloses the necessity of expending money for the maintenance and or repair of a drain in order to keep it
in working order, the drain commissioner for a county drain, or the drainage
board for an intercounty drain, may without petition expend an amount not to
exceed in any 1 year $5,000.00 per mile or fraction of a mile for maintenance
and repair of a the drain, exclusive of inspection and
engineering fees, legal fees, and the
cost of publication and mailing. The determination of the maximum expenditure
allowed without a petition or resolution shall be based on the total number of
miles of the drain and not on the actual number of miles or location of the
maintenance or repair. Costs incurred
for the inspection, maintenance, and repair of a drain performed under this
section may be financed and assessed under this act for not more than 10 years.
(5) If the drain
commissioner or the drainage board finds it necessary to expend funds in excess
of the amount established in subsection (4) per mile or fraction of a mile in
any 1 year for the maintenance and repair of a drain, the additional amounts
shall not be expended until approved by resolution of the governing body of
each township, city, and village affected by more than 20% of the cost.
(6) If the drain fund of
a drainage district does not contain sufficient funds to pay for inspection,
repair, and maintenance authorized by this section, the drain commissioner or
the drainage board shall reassess assess the drainage district for not more than 10 years for the
inspection, repair, and maintenance according to benefits received. A reassessment The first installment of an assessment under this
subsection shall be made and spread upon the city or township tax
assessment roll within 2 years after the completion of the inspection, repair,
and maintenance. If the total expenditure is more than the amount established
in subsection (4) per mile or fraction of a mile, all real property owners
subject to an assessment within the drainage district shall be notified of the
assessment by publication in a newspaper of general circulation within the
drainage district and by first-class mail to the name and address that appears
on the last city or township assessment roll. An affidavit of mailing shall be
made by the drain commissioner. The affidavit is conclusive proof that the
notices required by this subsection were mailed. The failure to receive the
notices by mail shall is not constitute a jurisdictional defect invalidating a
drain tax if notice by publication was given as required by this subsection.
(7) An assessment for the
actual cost of inspection, repair, and maintenance performed on a drain, or an
assessment to be deposited in the drain fund of a drainage district, shall be
made according to benefits received. The expenditure limit of the amount established
in subsection (4) per mile of drain or fraction of a mile shall be used to
calculate the maximum amount that the drain commissioner or drainage board may
assess in any 1 year without a petition or a request from a public corporation.
The property in a drainage district
that benefits from the inspection, repair, or maintenance of the drain is
subject to assessment for that inspection, repair, or maintenance. Determination
of the maximum assessment amount allowed without petition or request, or of the
property that is subject to assessment, shall be based on the number of miles
of drain and areas of the drainage district receiving benefits and not on the
actual number of miles or actual location of the inspection, repair, or and maintenance.
(8) If an emergency
condition exists that endangers the public health, crops, or property within a
drainage district, the drain commissioner or the drainage board may expend
funds for maintenance and repair to alleviate the emergency condition.
(9) Nothing in this section prohibits
the The drain
commissioner or the drainage board from spending may spend funds in excess of the amount established
in subsection (4) per mile or fraction of a mile in any 1 year for inspection,
maintenance, and repair of a drain when if requested
by a public corporation , and if the public corporation pays the
entire cost of the inspection, maintenance, and repair.
(10) In computing the
amounts that may be expended in accordance
with under this
section, the cost of work to be performed by a federal agency or public
corporation that is not chargeable to the county or intercounty drainage
district shall not be included. , nor shall it be necessary for the
The drain
commissioner or the drainage board is not required
to advertise for bids for that portion of the work to be done by the federal
agency or public corporation.
(11) For purposes of this
section, the costs of maintenance or and repair
shall include all of the costs following:
(a)
The cost of maintaining the drain
in working order to continue a normal flow of water, including the servicing or
repair of necessary pumping equipment and utility charges for pumping equipment. ; the
(b)
The cost of keeping the drain free
from rubbish, debris, siltation, or obstructions. ; the
(c)
The cost of repairing a portion or
all of a tile or drain to continue the normal flow of water. ; and other
(d)
Other costs associated with the
costs enumerated in this subsection.described in subdivisions (a) to (c).
(12) If the cost of
maintenance and repair of a drain includes utility charges or costs to service
pumping stations, sewage treatment facilities, or detention or retention basins, the limitation for
maintenance and repair does not apply except that the drain commissioner or
drainage board may levy sufficient special assessments to pay the charges or
costs but not more than the amount sufficient to pay those charges or costs.
(13) Except as otherwise provided in this act, that portion of the salaries, expenses, and fringe benefits of administrative and engineering employees under the supervision of the drain commissioner that are directly attributable, but not incidental, to a drain or and not otherwise not recovered by fees established by resolution or ordinance of the board of commissioners may be chargeable charged to the drain fund of a drainage district.
Sec. 434. (1) A drainage district may borrow money or
accept the advance of work, material, or money from a public or private
corporation, partnership, association, individual, or the federal government or
any agency of the federal government for any of the payment following for any project under this act:
(a)
Payment of , or costs in connection with the maintenance and repair of a drain or the
construction of , any part of a drain
project, or for financing including easement and land acquisition, engineering fees,
financing costs, and legal fees.
(b)
Payment of or financing costs of a
feasibility, practicability, environmental assessment, or impact study of a
drain project, which may include the payment for
easement or land acquisition or engineering and legal fees, or an engineering,
environment impact, or assessment study, and be reimbursed by the including engineering or legal fees.
(2)
The drainage district shall pay or provide reimbursement for the obligations
under subsection (1), with or without interest as may be agreed,
when funds are available. The obligation of the drainage district to make the
repayment or reimbursement may be evidenced by a contract or note. , which The contract or note may pledge the full faith and
credit of the drainage district and may be made payable out of any of the drain following:
(a)
Drain assessments made against
public corporations at large, or against lands in the drainage district. , or out of the
(b)
The proceeds of drain orders,
notes, or bonds issued by the drainage district pursuant to this act. or out of any
(c)
Any other available funds. , and the
(3)
A contract or note shall not be described in subsection (2) is not subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821,
unless the principal amount of the obligation shall exceed $300,000.00. is more than $600,000.00. However, if the principal
amount of the obligation is $300,000.00 $600,000.00 or less, then the issuance of the obligation under
this section contract or note is
subject to the agency financing reporting act, 2002 PA 470, MCL 129.171 to 129.177.
(2)
However, any projects in which advances or loans are made by any public corporation, the
federal government, or any agency of the federal government shall not be limited by this
section. This section shall apply to a drain or other project instituted
pursuant to any section in this act including a feasibility, practicability,
environmental assessment, or impact study.are not subject to either the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821, or the agency financing reporting act, 2002 PA
470, MCL 129.171 to 129.177.
(4)
(3) A county board of commissioners by a majority vote of
2/3 of its members may pledge the full faith and credit of a the county for the payment of a contract or note of the drainage
district.
