SB-1194, As Passed Senate, November 29, 2018

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1194

 

 

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

 

 

 

     A bill to amend 1909 PA 279, entitled

 

"The home rule city act,"

 

by amending section 5 (MCL 117.5), as amended by 2011 PA 133.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) A city does not have power to do any of the

 

following:

 

     (a) To increase the rate of taxation now fixed by law, unless

 

the authority to do so is given by a majority of the electors of

 

the city voting at the election at which the proposition is

 

submitted, but the increase in any case shall not be in an amount

 

as to cause the rate to exceed 2%, except as provided by law, of

 

the assessed value of the real and personal property in the city.

 

     (b) To submit to the electors a charter more often than once

 

in every 2 years, nor or unless the charter is filed with the city

 


clerk 60 days before the election. , but this provision shall This

 

subdivision does not apply to the submission and resubmission of

 

charters of cities that may be incorporated under this act until

 

they shall have first a charter until the city has first adopted a

 

charter . Where a city submits to the electors a charter and the

 

charter under this act. If a charter that has not been on file with

 

the city clerk for 60 days is adopted by the electors, and the city

 

has operated under the charter, which charter has not, at the time

 

it is adopted, been on file with the city clerk 60 days, then the

 

legislative body of the city, upon its giving the notice of

 

election as provided in the charter, may resubmit the charter to

 

the electors, at a special or general election. , the charter,

 

which, if If the resubmitted charter is adopted by the electors,

 

shall be considered it is operative and effective as of the date of

 

the first submission and adoption. The charter shall not be

 

resubmitted unless 60 days have elapsed between the date of the

 

filing of the charter and the date of the election at which the

 

charter is resubmitted.

 

     (c) To call more than 2 special elections within 1 year. This

 

prohibition does not apply to elections that may be held in the

 

submission and resubmission of charters of cities that may be

 

incorporated under this act until they have a charter before the

 

city has first adopted a charter, and does not apply to elections

 

that may be held in the resubmission of a charter once adopted as

 

provided in subdivision (b).

 

     (d) To decrease the salary of a municipal judge after his or

 

her election or appointment, or during the judge's term of office,


notwithstanding any charter provision to the contrary. The term of

 

a public official shall not be shortened or extended beyond the

 

period for which the official is elected or appointed, unless he or

 

she resigns or is removed for cause, if the office is held for a

 

fixed term.

 

     (e) To adopt a charter or an amendment to the charter unless

 

approved by a majority of the electors voting on the question; to

 

sell a park, cemetery, or any part of a park or cemetery, except

 

where the park is not required under an official master plan of the

 

city; to engage in a business enterprise requiring an investment of

 

money in excess of 10 cents per capita; or to authorize an issue of

 

bonds except bonds issued in anticipation of the collection of

 

taxes actually levied and uncollected or for which an appropriation

 

has been made; bonds that the city is authorized by its charter to

 

issue as part of its budget system, to an amount that in any year,

 

together with the taxes levied for the same year, will not exceed

 

the limit of taxation authorized by law; special assessment bonds;

 

bonds for the city's portion of local improvements; refunding

 

bonds; emergency bonds as defined by this act; and bonds that the

 

legislative body is authorized by specific statute to issue without

 

vote of the electors, unless approved by a majority of the electors

 

voting on the question at a general or special election. In

 

addition, a city that now has, or may subsequently have, with a

 

population of 750,000 persons or more may issue bonds, upon

 

resolution of its governing body, without prior approval of the

 

electors , which if the city is authorized by its charter to issue

 

the bonds as part of its budget system , to an and if the amount


that in any year, together with the ad valorem taxes levied for the

 

same year, exclusive of debt service taxes or taxes levied pursuant

 

to other laws, will not exceed 2-1/2% of the assessed value of the

 

real and personal property in the city, this limitation to

 

supersede and take the place of notwithstanding any contrary

 

language in any existing city charter. For the purposes of this

 

subdivision only, the assessed value of real and personal property

 

in any city shall include the assessed value equivalent of money

 

received during the city's fiscal year under the Glenn Steil state

 

revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.

 

The assessed value equivalent shall be calculated by dividing the

 

money received by the city's millage rate for the fiscal year.

 

Notwithstanding the former provisions of this subdivision requiring

 

approval by 3/5 of the electors voting on the question as a

 

prerequisite to the exercise of certain powers, these powers may be

 

exercised if approved by a majority of the electors voting on the

 

question at a general or special election held on or after April 1,

 

1966.

 

     (f) To make a contract with, or give an official position to,

 

one who is in default to the city.

 

     (g) To issue bonds without providing a sinking fund to pay

 

them at maturity, except as provided in section 4g(1) , but sinking

 

funds shall not be required or in the case of serial bonds that

 

fall due annually. Bonds, whether authorized under this act or any

 

other act, except refunding bonds, revenue bonds, motor vehicle

 

highway fund bonds, rehabilitation bonds, judgment bonds, bonds or

 

other obligations issued to fund an operating deficit of a city,


bonds or other obligations to pay premiums or to establish funds to

 

self-insure for losses as authorized by the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821, bonds the

 

issuance of which has been approved by the voters, and bonds issued

 

to comply with an order of a court of competent jurisdiction shall

 

not be issued by a city unless notice of the issuance of the bonds

 

is published once in a newspaper of general circulation in the city

 

at least 45 days before the issuance of the bonds. , within which

 

If, within that period, a petition may be for an election on the

 

issuance of the bonds is filed with the legislative body and signed

 

by not less than 10% or 15,000 of the registered electors in the

 

city, whichever is less, in which event the legislative body shall

 

submit the question of the issuance of the bonds to the electors of

 

the city, at a regular or special election in the city. The bonds

 

shall not be issued unless a majority vote of the electors voting

 

on the issuance vote in favor of issuing the bonds. The notice of

 

intent to issue bonds shall state the maximum amount of the bond

 

issue, the purpose of the bond issuance, source of payment, right

 

of referendum on the issuance of the bonds, and other information

 

as the legislative body determines to be necessary to adequately

 

inform the electors and all other interested persons of the nature

 

of the issue and of their rights with respect to the issue.

 

     (h) To repudiate a debt by a change in its charter or by

 

consolidation with any other municipality.

 

     (i) To submit a franchise to the electors at a special

 

election, unless the expense of holding the election, as determined

 

by the legislative body, is paid in advance to the city treasurer


by the grantee in the franchise.

 

     (2) Beginning on the effective date of the amendatory act that

 

added this subsection, September 13, 2011, a city shall not adopt a

 

city charter or ordinance that includes any a minimum staffing

 

requirement for city employees. Except as otherwise provided in

 

this subsection, any A provision in a city charter or ordinance

 

adopted on or after the effective date of the amendatory act that

 

added this subsection September 13, 2011, that contains a minimum

 

staffing requirement for city employees is void and unenforceable.

 

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

 

act.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No._1188                                  

 

            of the 99th Legislature is enacted into law.