SENATE BILL No. 678

 

 

December 16, 2015, Introduced by Senator YOUNG and referred to the Committee on Local Government.

 

 

 

     A bill to amend 1909 PA 279, entitled

 

"The home rule city act,"

 

by amending section 5e (MCL 117.5e).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5e. (1) A municipal water or sewage system established by

 

a city incorporated under this act which that serves more than 40%

 

of the population of the this state shall:

 

     (a) Be audited annually by an independent auditor designated

 

by the legislative auditor general. No A charter provision shall

 

not require an annual local audit for the same period. The auditor

 

shall be paid by the system. The results of the annual audit shall

 

be made available to the public in compliance with Act No. 442 of

 

the Public Acts of 1976, being sections 15.231 to 15.246 of the


Michigan Compiled Laws. the freedom of information act, 1976 PA

 

442, MCL 15.231 to 15.246. The annual audit shall be submitted to

 

the governing body of each city, village, or township served by the

 

system and to the legislature before December 1 of each year. Each

 

city, village, or township served by the system shall be audited

 

annually by an independent auditor. The auditor shall be paid by

 

that city, village, or township served by the system. The results

 

shall be made available to the public.

 

     (b) Hold at least 1 public hearing at least 120 days before a

 

proposed rate increase is scheduled to take effect. Each hearing

 

shall be conducted in compliance with Act No. 267 of the Public

 

Acts of 1976, being sections 15.261 to 15.275 of the Michigan

 

Compiled Laws. the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275. Notice of the time, date, and place of each hearing shall

 

be given in the manner required by Act No. 267 of the Public Acts

 

of 1976, the open meetings act, 1976 PA 267, MC 15.261 to 15.275,

 

shall be prominently printed in a daily newspaper of general

 

circulation within the area, and shall be mailed to each city,

 

village, or township served by the system not less than 30 days

 

before each hearing. A final vote by the governing body of the city

 

to implement a proposed rate increase shall not be taken until the

 

hearings provided for in this subdivision are concluded and the

 

results of those hearings are considered by the city's governing

 

body. This section shall not be construed to impair the obligations

 

of a contract. A city shall not be required to hold a public

 

hearing before the establishment of a water or sewer rate which

 

that is necessary for debt retirement under outstanding bond

 


obligations.

 

     (2) A city that establishes a municipal water or sewage system

 

that serves more than 40% of the population of this state may

 

charge customers of the system using an inclining block rate

 

structure. As used in this subsection, "inclining block rate

 

structure" means water or sewage rates that increase as the volume

 

of use increases.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.