SB-0008, As Passed House, November 3, 2011

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 8

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to provide for certain municipal joint endeavors; to

 

provide standards for those municipal joint endeavors; to provide

 

powers and duties of a municipal joint endeavor; to authorize the

 

levy of a property tax by a municipal joint endeavor; and to

 

provide for the powers and duties of certain government officials.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"municipal partnership act".

 

     Sec. 2. As used in this act:

 

     (a) "Authority" means an authority formed by contract pursuant

 

to this act.

 

     (b) "Governing body" means the board, council, commission, or

 

body in which the policy-making powers of the local government are


 

vested.

 

     (c) "Local government" means a county, city, village, or

 

township.

 

     (d) "Public agency" means a single- or multi-purpose public

 

body corporate formed pursuant to a law other than this act or an

 

Indian tribe recognized by the federal government before the year

 

2000 that exercises governmental authority over land within this

 

state. Public agency does not include this state or a department,

 

division, or agency of this state.

 

     Sec. 3. (1) Two or more local governments or 1 or more local

 

governments and a public agency are authorized to enter into a

 

contract with each other to form a joint endeavor to perform or

 

exercise any function, service, power, or privilege that the local

 

government or public agency could each exercise separately.

 

     (2) A contract entered into pursuant to subsection (1) shall

 

be approved by resolution of the governing body of each

 

participating local government.

 

     Sec. 4. (1) A contract to form a joint endeavor under this act

 

shall include all of the following:

 

     (a) The purpose of the joint endeavor with reference to the

 

functions, services, powers, or privileges to be performed or

 

exercised and the methods by which the purpose will be accomplished

 

or the manner in which the joint endeavor will be exercised or

 

performed.

 

     (b) The duration of the contract, any method by which it may

 

be terminated by any participating local government or public

 

agency before the stated date of termination, and any method by


Senate Bill No. 8 (H-3) as amended November 3, 2011

 

which a participating local government or public agency may

 

withdraw from participation in the joint endeavor.

 

     (c) If an authority is created by the contract, the precise

 

organization, composition, and nature of that authority and its

 

board with the functions, duties, obligations, powers, and

 

privileges given to that authority and board.

 

     (d) If an authority is not created by the contract, the

 

precise organization, composition, and nature of any separate legal

 

or administrative entity created by the joint endeavor in the

 

contract with the powers designated to that entity.

 

     (e) The designation and selection of officers of an authority,

 

board, or any legal or administrative entity created by the joint

 

endeavor in the contract.

 

     (f) The method of financing to be used and the amount to be

 

paid by each participating local government or public agency in

 

relation to the purpose of the joint endeavor involved.

 

     (g) The method for submitting the question of a tax levy to

 

the electors served by the joint endeavor.

 

     [(h) Unless a local government participating in the joint endeavor

 

 already provides a service, including, but not limited to, emergency

 

 medical services regulated under part 209 of the public health code,

 

 1978 PA 368, MCL 333.20901 to 333.20979, the joint endeavor shall

 

 solicit competitive bids for those services that the joint endeavor

 

 intends to provide. The joint endeavor shall disclose to the public all

 

 competitive bids obtained for those services the joint endeavor

 

 provides.

 

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Senate Bill No. 8 (H-3) as amended November 3, 2011

 

     (2) A contract to form a joint endeavor under this act may

 

provide for 1 or more of the following:

 

     (a) The acquisition of personal or real property by purchase,

 

lease, or other method and the sale, lease, or disposal of personal

 

or real property.

 

     (b) The operation, maintenance, repair, replacement,

 

construction, and improvement of personal or real property.

 

     (c) The entity or entities that will function as the employer

 

or employers of personnel and staff needed for the joint endeavor.

 

     (d) The making and promulgating of necessary rules and

 

regulations and the enforcement of those rules and regulations by

 

or with the assistance of the parties to the contract.

 

     (e) The manner of allocating risks and responding to any

 

claims of liability that may result from the joint endeavor or

 

being a party to the contract and for insuring against any such

 

liability.

 

     (f) The methods of addressing and resolving disputes among the

 

parties to the contract.

 

     (g) Any other matters agreed upon by the parties to the

 

contract.

 

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Senate Bill No. 8 (H-3) as amended November 3, 2011

 

                                                               

 

                                                                 

 

                                                                

 

                                                                 

 

                                                               

 

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     Sec. 5. A contract entered into under this act may provide for

 

1 or more parties to the contract to administer or execute the

 

contract or to exercise or perform some or all of the functions,

 

services, powers, or privileges to be exercised or performed by the

 

joint endeavor in the manner provided for by the contract.

 

     Sec. 6. Notwithstanding any local charter or ordinance to the

 

contrary, a party to a contract may use tax revenues that are

 

dedicated to pay for the exercise or performance of any function,

 

service, power, or privilege by that party individually to fund the

 

exercise or performance of that function, service, power, or

 

privilege under the contract.

 

     Sec. 7. (1) Subject to subsection (3), the joint endeavor may

 

levy a tax of not more than 5 mills on all taxable property in the

 

areas served by the joint endeavor for the purpose of providing

 

revenue to the joint endeavor.

 

     (2) A proposal for a tax shall not be placed on the ballot

 

unless the proposal is adopted by a resolution of the governing

 

body of each local government participating in the joint endeavor.

 

     (3) If a joint endeavor levies a millage under this section,

 

each year the joint endeavor shall, as necessary, decrease the

 

number of mills the joint endeavor levies to ensure that, with


 

respect to each participating local government in the joint

 

endeavor, the number of mills levied by a participating local

 

government plus the number of mills levied by the joint endeavor

 

will not exceed the maximum number of mills that the participating

 

local government is constitutionally and statutorily authorized to

 

levy under each of the following:

 

     (a) Section 6 of article IX of the state constitution of 1963.

 

     (b) The property tax limitation act, 1933 PA 62, MCL 211.201

 

to 211.217a.

 

     (c) Section 14(1)(m) of 1966 PA 293, MCL 45.514.

 

     (d) Section 3(g) of the home rule city act, 1909 PA 279, MCL

 

117.3.

 

     (e) Section 27(2) of the charter township act, 1947 PA 359,

 

MCL 42.27.

 

     (f) Section 26(1)(i) of the home rule village act, 1909 PA

 

278, MCL 78.26.

 

     (g) Section 1(2) of chapter IX of the general law village act,

 

1895 PA 3, MCL 69.1.

 

     (h) Any other applicable millage limit enacted after the

 

effective date of this act.

 

     (4) If only a portion of a local government is located in the

 

service area of a joint endeavor, as described in the contract for

 

the joint endeavor, only those electors residing in that portion of

 

the local government located in the service area of the joint

 

endeavor are eligible to vote on the ballot proposal for a tax and

 

that tax shall only be levied against the property within that

 

service area.


 

     (5) The proposal for a tax under this act may be submitted to

 

a vote of the electors served by the joint endeavor only at an even

 

year general November election.

 

     (6) A ballot proposal for a tax shall comply with the

 

requirements of section 24f of the general property tax act, 1893

 

PA 206, MCL 211.24f. In addition, the ballot shall state the manner

 

in which the tax levy will result in any reduction of taxes levied

 

by each local government participating in the joint endeavor.

 

     (7) The joint endeavor may levy a new tax or the increase of

 

an existing tax only if a majority of the electors in each local

 

government served by the joint endeavor voting on the tax approve

 

the tax. The joint endeavor may levy the renewal of an existing tax

 

only if a majority of the electors served by the joint endeavor

 

voting on the renewal of the existing tax approve the tax.

 

     (8) A tax authorized to be levied by a joint endeavor under

 

this act shall be levied and collected at the same time and in the

 

same manner as provided by the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155.

 

     Sec. 8. This act provides authorization to enter into

 

contracts that is in addition to and may be exercised separately

 

from any authorization to enter into contracts under any other

 

statute of this state.

 

     Sec. 9. Except as otherwise provided in this section, if any

 

provision of this act conflicts with any local charter provision or

 

any local ordinance, the provisions of this act shall control. The

 

authority to enter into a contract pursuant to this act shall not

 

be affected by any condition or limitation that may be imposed by


 

any local charter provision or local ordinance. However, this act

 

shall not affect any rights of any party under 1947 PA 336, MCL

 

423.201 to 423.217, except as specifically provided in section 12.

 

In addition, this act does not modify the provisions of 1969 PA

 

312, MCL 423.231 to 423.247.

 

     Sec. 10. A contract entered into pursuant to this act shall

 

not be subject to referendum under any local charter provision or

 

local ordinance.

 

     Sec. 11. A joint endeavor formed under this act is subject to

 

the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to

 

141.440a.

 

     Sec. 12. (1) The local governments that are parties to a

 

contract entered into pursuant to this act have the responsibility,

 

authority, and right to manage and direct on behalf of the public

 

the functions or services performed or exercised in connection with

 

the contract.

 

     (2) The following are prohibited subjects of collective

 

bargaining between a local government and a bargaining

 

representative of its employees:

 

     (a) A decision as to whether or not the local government will

 

enter into a contract for a joint endeavor pursuant to this act for

 

or in connection with 1 or more functions or services.

 

     (b) The procedures for obtaining the contract for a joint

 

endeavor pursuant to this act.

 

     (c) The identities of the other parties to the contract for a

 

joint endeavor pursuant to this act.

 

     (3) Except as otherwise provided in this section, the contents


 

or language of a contract for a joint endeavor under this act shall

 

be a permissive subject of collective bargaining between a local

 

government and a bargaining representative of its employees. If a

 

local government and a bargaining representative of its employees

 

engage in collective bargaining before the contract for a joint

 

endeavor is approved as provided in section 3(2) and that local

 

government and that bargaining representative reach an agreement on

 

issues that would obligate an entity that will function as an

 

employer in the joint endeavor, then the contract for that joint

 

endeavor shall include those obligations.

 

     (4) Nothing in this act creates an employment relationship

 

between the existing employees of a local government or a public

 

agency and the proposed joint endeavor.

 

     (5) Nothing in this act relieves a local government of the

 

duty, to the extent a duty exists under applicable law, to

 

collectively bargain with its employees over the effect of the

 

joint endeavor on its employees.

 

     Sec. 13. Nothing in this act authorizes or shall be construed

 

to authorize the construction of any tunnel, bridge, or other

 

infrastructure that is part of or related to an international

 

border crossing.

 

     Enacting section 1. This act does not take effect unless

 

Senate Bill No. 9 of the 96th Legislature is enacted into law.