SB-1266, As Passed Senate, December 9, 2004                                 

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1266

                                                                             A bill to amend 1994 PA 451, entitled                                             

"Natural resources and environmental protection act,"                       

by amending sections 30903 and 30927 (MCL 324.30903 and                     

324.30927), as added by 1995 PA 59, and by adding section 30929.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 30903.  (1) The lake board shall consist of all of the                 

2   following:                                                                  

3       (a) A member of the county board of commissioners appointed                 

4   by the chairperson of the county board of commissioners of each             

5   county affected by the lake improvement project;  a                         

6   representative of each local unit of government appointed by the            

7   legislative body 1 representative of each local unit of                    

8   government, other than a county, affected by the project, or, if            

9   there is only 1 such local unit of government, 2 representatives            

10  of that local unit of government, appointed by the legislative              

1   body of the local unit of government; and the county drain                  

2   commissioner or his or her designee, or a member of the county              

3   road commission in counties not having a drain commissioner.  ;             

4   and a representative of the department.

5       (b) A member elected by the members of the lake board serving               

6   pursuant to subdivision (a) at the first meeting of the board or            

7   at any time a vacancy exists under this subdivision.  Only a                

8   person who has an interest in a land contract or a record                   

9   interest in the title to a piece or parcel of land that abuts the           

10  lake to be improved is eligible to be elected and to serve under            

11  this subdivision.  An organization composed of and representing             

12  the majority of lakefront property owners on the affected lake              

13  may submit up to 3 names to the board, from which the board shall           

14  make its selection.  The terms served by this member shall be 4             

15  years in length.                                                            

16      (2) The lake board shall elect a chairperson, treasurer, and                

17  a  secretary.  The secretary shall attend meetings of the lake             

18  board and shall keep a record of the proceedings and perform                

19  other duties delegated by the lake board. A majority of the                 

20  members of the lake board constitutes a quorum.  The concurrence            

21  of a majority in any matter within the duties of the board  shall           

22  be is required for the determination of a matter.                          

23      (3) The department, upon request of the lake board, shall                   

24  provide whatever technical data it has available and make                   

25  recommendations in the interests of conservation.                           

26      Sec. 30927.  (1) Within 10 days after the letting of                        

27  contracts or, in case of an appeal,  then  immediately after the            

1   appeal has been decided, the lake board shall make a computation            

2   of the entire cost of a project under this part that includes all           

3   preliminary costs and engineering and inspection costs incurred             

4   and all of the following:                                                   

5       (a) The fees and expenses of special commissioners.                         

6   (b) The compensation to be paid the board.

7   (b)  (c)  The contracts for dredging or other work to be done               

8   on the project.                                                             

9   (c)  (d)  The estimated cost of an appeal if the                            

10  apportionment made by the lake board is not sustained.                      

11  (d)  (e)  The estimated cost of inspection.                                 

12  (e)  (f)  The cost of publishing all notices required.                      

13  (f)  (g)  All costs of the circuit court.                                   

14  (g)  (h) Attorney fees for legal services in connection with                

15  the project. Any legal expenses incurred in connection with the            

16  project, including litigation expenses, the costs of any                    

17  judgments or orders entered against the lake board or special               

18  assessment district, and attorney fees.

19  (h) Fees for any permits required in connection with the                    

20  project.

21      (i) Interest on bonds for the first year, if bonds are to be                

22  issued.                                                                     

23  (j) Any other costs necessary for the administration of lake                

24  board proceedings, including, but not limited to, compensation of           

25  the members of the lake board, record compilation and retention,            

26  and state, county, or local government professional staff                   

27  services.

1       (2) In addition to the amounts computed under subsection (1),               

2   the lake board may add not less than 10% or more than 15% of the            

3   gross sum to cover contingent expenses, including additional                

4   necessary hydrological studies by the department.  , and the                

5   entire sum so ascertained shall be The sum of the amounts                  

6   computed under subsection (1) plus the amount added under this              

7   subsection is considered to be the cost of the lake improvement             

8   project.                                                                    

9   (3) A lake board shall not expend money for improvements,                   

10  services, or other purposes unless the lake board has adopted an            

11  annual budget.                                                              

12      (4) A lake board may retain an attorney to advise the lake                  

13  board in the proper performance of its duties.  The attorney                

14  shall represent the lake board in actions brought by or against             

15  the lake board.

16  Sec. 30929.  A lake board for a public inland lake is                       

17  dissolved if all of the following requirements are met:                     

18      (a) The governing body of each local unit of government in                  

19  which all or part of the lake is located holds a public hearing             

20  on the proposed dissolution, determines that the lake board is no           

21  longer necessary for the improvement of the lake because the                

22  reasons for the establishment of the lake board no longer exist,            

23  and approves the dissolution of the lake board.  The governing              

24  body of each local unit of government in which all or part of the           

25  lake is located may hold the public hearing on the dissolution of           

26  the lake board on its own initiative.  The governing body of each           

27  local unit of government in which all or part of the lake is                

1   located shall hold a public hearing on the dissolution of the               

2   lake board upon petition of 2/3 of the freeholders owning land              

3   abutting the lake.  Notice of the public hearing shall be                   

4   published twice in a newspaper of general circulation in each               

5   local unit of government in which all or part of the lake is                

6   located.  The first notice shall be published not less than 10              

7   days before the date of the hearing.                                        

8       (b) All outstanding indebtedness and expenses of the lake                   

9   board are paid in full.                                                     

10      (c) Any excess funds of the lake board are refunded based on                

11  the last approved special assessment roll.  However, if the                 

12  amount of excess funds is de minimis, the excess funds shall be             

13  distributed to the local units of government in which all or part           

14  of the lake is located, apportioned based on the amounts assessed           

15  against each local unit of government and lands in that local               

16  unit on the last approved special assessment roll.                          

17      (d) The lake board determines that it is no longer necessary                

18  for the improvement of the lake, because the reasons for its                

19  establishment no longer exist, and adopts an order approving its            

20  dissolution.

21      Enacting section 1.  This amendatory act takes effect March                 

22  1, 2005.