HOUSE BILL No. 5970

 

March 18, 2010, Introduced by Reps. Walsh, DeShazor, Elsenheimer, Kowall, Stamas, Marleau, Horn, Rick Jones and Crawford and referred to the Committee on Tax Policy.

 

     A bill to amend 1939 PA 342, entitled

 

"County public improvement act of 1939,"

 

by amending section 5a (MCL 46.175a), as amended by 2002 PA 199.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5a. As an additional or alternative method of acquiring

 

and constructing any of the improvements or facilities authorized

 

by this act, the county, acting through its county agency, and any

 

unit of government may enter into contracts providing for the

 

acquisition, construction, and financing of improvements or

 

facilities in the manner authorized in this act. The contracts

 

shall provide for the allocation and payment of the share of the

 

total cost to be borne by each unit of government in annual

 

installments for a period of not exceeding 40 years, and each

 


contracting unit of government is authorized to pledge its full

 

faith and credit for the payment of the obligation in the manner

 

and times specified in the contracts. A contract described in this

 

section is not subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821. For the purpose of making payment

 

of its pledged share of the cost of the improvements or facilities,

 

any contracting unit of government may use any, or all, or any

 

combination of the following methods of raising funds:

 

     (a) The levy of a tax on taxable property by a unit of

 

government having the power to tax, which tax may be imposed

 

without limitation as to rate or amount and in addition to any

 

taxes that the unit of government may be authorized to levy but not

 

more than the rate or amount sufficient for those purposes.

 

     (b) The levy of special assessments on property benefited by

 

the improvements, the procedures relative to the making and

 

collection of the special assessments to conform as near as may be

 

to applicable charter or statutory provisions. After December 31,

 

2009, if a special assessment district on property benefited by the

 

improvements includes the entire contracting unit of government,

 

the question of raising money by special assessment and the amount

 

of the special assessment to be levied shall be approved by a

 

majority of the electors of the contracting unit of government at a

 

general election or special election called for that purpose.

 

     (c) The levy and collection of rates or charges to users and

 

beneficiaries of the service furnished by the improvement.

 

     (d) From money received or to be received derived from the

 

imposition of taxes by this state, except as the use of the money

 


for that purpose is expressly prohibited by the state constitution

 

of 1963.

 

     (e) From any other funds that may be validly used for that

 

purpose. The contracts may provide for any and all matters relating

 

to the acquisition, construction, and financing of the improvements

 

or facilities as are considered necessary, including the authority

 

to the county agency to issue bonds secured by the full faith and

 

credit contractual pledges of the contracting unit of government,

 

as authorized by section 5c. The contracts may provide for

 

appropriate remedies in case of default, including, but not limited

 

to, the right of the contracting unit of government to authorize

 

the state treasurer or other official charged with the disbursement

 

of unrestricted state funds returnable to the governmental units

 

under the state constitution of 1963, to withhold sufficient funds

 

to make up any default or deficiency in funds.