(1) A city, village, or township may establish a parking violations bureau to accept civil infraction admissions in parking violation cases and to collect and retain civil fines and costs as prescribed by ordinance. Beginning August 1, 1979, a parking violations bureau may also accept pleas of guilty in parking violation cases if the violation occurred before August 1, 1979, and may collect and retain fines and costs as prescribed by ordinance at the time the violation occurred. Except as otherwise provided in subsection (2), the expense of operating parking violations bureaus shall be borne by the city, village, or township and the personnel of the bureau shall be city, village, or township employees.

    (2) A city, village, or township may designate a downtown development authority located in that city, village, or township to operate a parking violations bureau under this section. The administration, expenses, personnel, distribution of parking violation revenue, and related matters shall be determined by a written agreement between the downtown development authority and the legislative body of the city, village, or township in which the downtown development authority is located.

    (3) As used in this section, "downtown development authority" means an authority as defined under section 1 of 1975 PA 197, MCL 125.1651.