SB-1190, As Passed Senate, November 29, 2018

SENATE BILL No. 1190

November 8, 2018, Introduced by Senator BRANDENBURG and referred to the Committee on Natural Resources.

A bill to amend 1909 PA 278, entitled

"The home rule village act,"

by amending section 26 (MCL 78.26), as amended by 2018 PA 88.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 26. (1) A village shall not do any of the following:

(a) Submit to the electors a charter or a revision of a

charter more often than once in every 2 years or file it with the

village clerk less than 90 days before the election. This

subdivision does not apply to the submission and resubmission of

~~charters to villages that may be incorporated under this act~~ a

charter until ~~they have~~ the village has first adopted a charter.

(b) Call more than 2 special elections within 1 year. This

~~prohibition~~ subdivision does not apply to elections that may be

held in the submission and resubmission of ~~charters to villages~~

~~that may be incorporated under this act until they have~~ a charter

until the village has first adopted a charter.

his or her election or appointment, or during his or her term of

office, if the office is held for a fixed term, or shorten or

extend the term of a public official from the period for which he

or she was elected or appointed, unless he or she is removed for

cause.

(d) Adopt a charter or amendment to a charter, unless approved

by a majority of the electors voting on the charter or amendment at

a general or special election.

(e) Authorize an issue of bonds unless approved at an election

by a majority of the electors of the village voting on the issuance

of the bonds. This subdivision does not apply to special assessment

bonds, bonds for the village portion of local improvements, not to

exceed 40% of the cost of the improvement, refunding bonds, bonds

for relief from fire, flood, or calamity, or for payment of

judgments, or bonds that the legislative body is authorized by

specific statute to issue without vote of the electors.

(f) Adopt a scheme for exemption from municipal taxation.

(g) Repudiate a debt by a change in its charter or by

consolidation with any other municipality.

(h) ~~Incur~~ Subject to subsection (2), incur indebtedness by the

issue of bonds, or otherwise, in a sum that, including existing

indebtedness, exceeds 10% of the assessed valuation of the real and

personal property within the village subject to taxation, as shown

by the last assessment roll of the village. Bonds issued in

anticipation of the collection of special assessments, even though

they are a general obligation of the village, motor vehicle highway

fund bonds, revenue bonds, and bonds issued, or contract or

assessment obligations incurred, to comply with an order of the

department of environmental quality or a court of competent

jurisdiction, even though they are a general obligation of the

village, bonds issued, or contract or assessment obligations

incurred, for water supply, sewerage, drainage, or refuse disposal

projects necessary to protect the public health by abating

pollution, even though they are a general obligation of the

village, and bonds issued or assessments or contract obligations

incurred for the construction, improvement, or replacement of a

combined sewer overflow abatement facility are not included in this

limitation. Money on hand in a sinking fund limited to the payment

of indebtedness may be treated as a reduction of the indebtedness

to that extent. If, because of fire, flood, or other calamity, an

emergency fund is required for the relief of the inhabitants of the

village or for the repairing or rebuilding of any of its municipal

buildings, works, bridges, or streets, the legislative body of the

village may borrow money due in not more than 3 years and in an

amount not exceeding 1/4 of 1% of the assessed valuation of the

village, notwithstanding that the loan may increase the

indebtedness of the village beyond the limitations fixed by its

charter or in this subdivision. If a village is authorized to

acquire or operate a public utility, it may issue mortgage bonds

for that purpose beyond the general limit of bonded indebtedness

prescribed by law. The mortgage bonds issued beyond the limit of

general indebtedness prescribed by law must not impose a liability

upon the village, but must be secured only upon the property and

revenues of the public utility, including a franchise, stating the

terms upon which, in case of foreclosure, the purchaser may operate

the public utility. The franchise must not extend for a period

longer than 20 years from the date of the sale of the public

utility and franchise on foreclosure. Bonds issued, or contract or

assessment obligations incurred, before July 31, 1973 are

validated. As used in this subdivision:

(i) "Combined sewer overflow" means a discharge from a

combined sewer system that occurs when the flow capacity of the

combined sewer system is exceeded.

(ii) "Combined sewer overflow abatement facility" means works,

instrumentalities, or equipment necessary or appropriate to abate

combined sewer overflows.

(iii) "Combined sewer system" means a sewer designed and used

to convey both storm water runoff and sanitary sewage, and that

contains lawfully installed regulators and control devices that

allow for delivery of sanitary flow to treatment during dry weather

periods and divert storm water and sanitary sewage to surface

waters during storm flow periods.

(iv) "Construction" means any action taken in the designing or

building of a combined sewer overflow abatement facility.

Construction includes, but is not limited to, all of the following:

(A) Engineering services.

(B) Legal services.

(D) Design of plans and specifications.

(E) Acquisition of land or structural components.

(F) Building, erection, alteration, remodeling, or extension

of a combined sewer overflow abatement facility.

(G) Village supervision of the project activities described in

sub-subparagraphs (A) to (F).

(v) "Improvement" means any action undertaken to expand,

rehabilitate, or restore a combined sewer overflow abatement

facility.

(vi) "Replacement" means action taken to obtain and install

equipment, accessories, or appurtenances during the useful life of

a combined sewer overflow abatement facility necessary to maintain

the capacity and performance for which the equipment, accessories,

or appurtenances are designed and constructed.

(i) ~~Lay~~ Levy or collect taxes for municipal purposes except as

otherwise provided by law, at a rate in excess of 2% of the

assessed value of all real and personal property in the village.

(j) Issue bonds without creating a sinking fund for the

payment of the bonds, except special assessment bonds that are a

charge upon a special district created for the payment of the

bonds, and serial bonds payable annually.

(2) In computing the net indebtedness for the purposes of

subsection (1)(h), there may be added to the assessed value of real

and personal property in a village for a fiscal year an amount

equal to the assessed value equivalent of certain village revenues

as determined under this subsection. The assessed value equivalent

must be calculated by dividing the sum of the following amounts by

the village's millage rate for the fiscal year:

(a) The amount paid or the estimated amount required to be

paid by the state to the village during the village's fiscal year

for the village's use under the Glenn Steil state revenue sharing

act of 1971, 1971 PA 140, MCL 141.901 to 141.921, and the amount of

any eligible reimbursement to the village under the local community

stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362,

except any amount distributed under section 17(4)(c) of the local

community stabilization authority act, 2014 PA 86, MCL 123.1357, in

excess of the village's qualified loss. The department of treasury

shall certify these amounts upon request. As used in this

subdivision, "qualified loss" means that term as defined in section

5 of the local community stabilization authority act, 2014 PA 86,

MCL 123.1345.

(b) The amount levied by the village for its own use during

the village's fiscal year from the specific tax levied under 1974

PA 198, MCL 207.551 to 207.572.

the village's fiscal year from the specific tax levied under the

commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668.

(3) Beginning on September 13, 2011, a village shall not adopt

a village charter or ordinance that includes ~~any~~ a minimum staffing

requirement for village employees. ~~Any~~ A provision in a village

charter or ordinance adopted on or after September 13, 2011 that

contains a minimum staffing requirement for village employees is

void and unenforceable.

(4) This act is subject to the vegetation removal preemption