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
city incorporated under this act
which that serves more than 40%
the population of
(a) Be audited annually by an independent auditor designated
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
made available to the public in compliance with
Act No. 442 of
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
be conducted in compliance with
Act No. 267 of the Public
of 1976, being sections 15.261 to 15.275 of the Michigan
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
given in the manner required by
Act No. 267 of the Public Acts
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
before the establishment of a water or sewer rate
that is necessary for debt retirement under outstanding bond
(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.