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