SB-0491, As Passed Senate, August 24, 2011

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 491

 

(as amended June 30, 2011)

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1909 PA 278, entitled

 

"The home rule village act,"

 

by amending section 26 (MCL 78.26), as amended by 1995 PA 211.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 26. (1) A village shall not do any of the following:

 

     (a) Submit to the electors a charter or a revision of a

 

charter more often than once in every 2 years or file it with the

 

village clerk less than 90 days before the election. This

 

subdivision does not apply to the submission and resubmission of

 

charters to villages that may be incorporated under this act until

 

they have first adopted a charter.

 

     (b) 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 to villages that may be

 

incorporated under this act until they have first adopted a

 


charter.

 

     (c) Change the salary or emoluments of a public official after

 

his or her election or appointment, or during his or her term of

 

office, if the office is held for a fixed term, or shorten or

 

extend the term of a public official from the period for which he

 

or she was elected or appointed, unless he or she is removed for

 

cause.

 

     (d) Adopt a charter or amendment to a charter, unless approved

 

by a majority of the electors voting on the charter or amendment at

 

a general or special election.

 

     (e) Authorize an issue of bonds unless approved at an election

 

by a majority of the electors of the village voting on the issuance

 

of the bonds. This subdivision does not apply to special assessment

 

bonds, bonds for the village portion of local improvements, not to

 

exceed 40% of the cost of the improvement, refunding bonds, bonds

 

for relief from fire, flood, or calamity, or for payment of

 

judgments, or bonds that the legislative body is authorized by

 

specific statute to issue without vote of the electors.

 

     (f) Adopt a scheme for exemption from municipal taxation.

 

     (g) Repudiate a debt by a change in its charter or by

 

consolidation with any other municipality.

 

     (h) Incur indebtedness by the issue of bonds, or otherwise, in

 

a sum that, including existing indebtedness, exceeds 10% of the

 

assessed valuation of the real and personal property within the

 

village subject to taxation, as shown by the last assessment roll

 

of the village. Bonds issued in anticipation of the collection of

 

special assessments, even though they are a general obligation of

 


the village, motor vehicle highway fund bonds, revenue bonds, and

 

bonds issued, or contract or assessment obligations incurred, to

 

comply with an order of the department of environmental quality or

 

a court of competent jurisdiction, even though they are a general

 

obligation of the village, bonds issued, or contract or assessment

 

obligations incurred, for water supply, sewerage, drainage, or

 

refuse disposal projects necessary to protect the public health by

 

abating pollution, even though they are a general obligation of the

 

village, and bonds issued or assessments or contract obligations

 

incurred for the construction, improvement, or replacement of a

 

combined sewer overflow abatement facility are not included in this

 

limitation. Money on hand in a sinking fund limited to the payment

 

of indebtedness may be treated as a reduction of the indebtedness

 

to that extent. If, because of fire, flood, or other calamity, an

 

emergency fund is required for the relief of the inhabitants of the

 

village or for the repairing or rebuilding of any of its municipal

 

buildings, works, bridges, or streets, the legislative body of the

 

village may borrow money due in not more than 3 years and in an

 

amount not exceeding 1/4 of 1% of the assessed valuation of the

 

village, notwithstanding that the loan may increase the

 

indebtedness of the village beyond the limitations fixed by its

 

charter or in this subdivision. If a village is authorized to

 

acquire or operate a public utility, it may issue mortgage bonds

 

for that purpose beyond the general limit of bonded indebtedness

 

prescribed by law. The mortgage bonds issued beyond the limit of

 

general indebtedness prescribed by law shall not impose a liability

 

upon the village, but shall be secured only upon the property and

 


revenues of the public utility, including a franchise, stating the

 

terms upon which, in case of foreclosure, the purchaser may operate

 

the public utility. The franchise shall not extend for a period

 

longer than 20 years from the date of the sale of the public

 

utility and franchise on foreclosure. Bonds issued, or contract or

 

assessment obligations incurred, before July 31, 1973 are

 

validated. As used in this subdivision:

 

     (i) "Combined sewer overflow" means a discharge from a combined

 

sewer system that occurs when the flow capacity of the combined

 

sewer system is exceeded.

 

     (ii) "Combined sewer overflow abatement facility" means works,

 

instrumentalities, or equipment necessary or appropriate to abate

 

combined sewer overflows.

 

     (iii) "Combined sewer system" means a sewer designed and used to

 

convey both storm water runoff and sanitary sewage, and which

 

contains lawfully installed regulators and control devices that

 

allow for delivery of sanitary flow to treatment during dry weather

 

periods and divert storm water and sanitary sewage to surface

 

waters during storm flow periods.

 

     (iv) "Construction" means any action taken in the designing or

 

building of a combined sewer overflow abatement facility.

 

Construction includes, but is not limited to, all of the following:

 

     (A) Engineering services.

 

     (B) Legal services.

 

     (C) Financial services.

 

     (D) Design of plans and specifications.

 

     (E) Acquisition of land or structural components.

 


Senate Bill No. 491 (S-1) as amended June 30, 2011

     (F) Building, erection, alteration, remodeling, or extension

 

of a combined sewer overflow abatement facility.

 

     (G) Village supervision of the project activities described in

 

sub-subparagraphs (A) to (F).

 

     (v) "Improvement" means any action undertaken to expand,

 

rehabilitate, or restore a combined sewer overflow abatement

 

facility.

 

     (vi) "Replacement" means action taken to obtain and install

 

equipment, accessories, or appurtenances during the useful life of

 

a combined sewer overflow abatement facility necessary to maintain

 

the capacity and performance for which the equipment, accessories,

 

or appurtenances are designed and constructed.

 

     (i) Lay or collect taxes for municipal purposes except as

 

otherwise provided by law, at a rate in excess of 2% of the

 

assessed value of all real and personal property in the village.

 

     (j) Issue bonds without creating a sinking fund for the

 

payment of the bonds, except special assessment bonds that are a

 

charge upon a special district created for the payment of the

 

bonds, and serial bonds payable annually.

 

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

 

added this subsection, a village shall not adopt a village charter [or

 

ordinance               ] that includes any minimum staffing

 

requirement for village employees. Except as otherwise provided in

 

this subsection, any provision in a village charter [or ordinance

 

          ] adopted on or after the effective date of the amendatory

 

act that added this subsection that contains a minimum staffing

 

requirement for village employees is void and unenforceable. [   

 


Senate Bill No. 491 (S-1) as amended June 30, 2011

                                                                

 

                                                       ]