January 19, 2011, Introduced by Senator JANSEN and referred to the Committee on Reforms, Restructuring and Reinventing.
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
(c) "Local government" means any of the following:
(i) A qualified county.
(ii) A city, village, or township located in a qualified
(d) "Public agency" means this state, any department or agency
of this state, 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.
(e) "Qualified county" means a county with a population of
570,000 or more and less than 650,000.
Sec. 3. (1) Subject to subsection (3), 2 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
(2) A contract entered into pursuant to subsection (1) shall
be approved by resolution of the governing body of each
participating local government.
(3) A local government or public agency shall not enter into a
contract to form a joint endeavor under this act after December 31,
Sec. 4. A contract to form a joint endeavor pursuant to this
act may provide for 1 or more 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
(b) The duration of the contract and the method by which it
may be terminated by any participating local government or public
agency before the stated date of termination.
(c) An authority, including 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) The acquisition of personal or real property by purchase,
lease, or other method and the sale, lease, or disposal of personal
or real property.
(i) The operation, maintenance, repair, replacement,
construction, and improvement of personal or real property.
(j) The manner of employing, contracting for, engaging,
compensating, transferring, or discharging necessary personnel and
(k) 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.
(l) 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.
(m) The methods of addressing and resolving disputes among the
parties to the contract.
(n) Any other matters agreed upon by the parties to the
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. 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. The joint endeavor may levy the tax only if a majority of
the electors served by the joint endeavor voting on the tax approve
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 other statute of this
state, any promulgated rule of any agency of this state, 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 other state statute or in any state
rule, 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
Sec. 11. A contract entered into pursuant to this act may not
be the basis for the recall of any elected official as provided
under the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992.
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. Collective bargaining between a local government and
a bargaining representative of its employees shall not include any
of the following:
(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.
(d) The contents or language of the contract for a joint
endeavor pursuant to this act.
(e) The impact of the contract for a joint endeavor pursuant
to this act on individual employees or the bargaining unit.
(2) The matters described in this section are prohibited
subjects of bargaining between a local government and a bargaining
representative of its employees and are within the sole discretion
of the local government to decide.
Enacting section 1. This act does not take effect unless all
of the following bills of the 96th Legislature are enacted into
(a) Senate Bill No. 10.
(b) Senate Bill No. 9.