HOUSE BILL No. 5765

September 9, 2014, Introduced by Rep. Yanez and referred to the Committee on Local Government.

 

     A bill to amend 1923 PA 116, entitled

 

"Township and village public improvement and public service act,"

 

by amending section 3a (MCL 41.413a), as amended by 1998 PA 159.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3a. (1) A waterworks established under sections 1 to 5

 

and any other service provided under sections 1 to 5 for a district

 

having a waterworks may be under the control of and operated by a

 

board of public service commissioners, except that in a village

 

such an improvement or service shall be under the control of and

 

operated by the legislative body of the village. The board of

 

public service commissioners shall consist of 5 commissioners

 

elected at the annual township election by the qualified electors


 

residing in the district. A vacancy on the board of public service

 

commissioners shall be filled by the remaining members of the board

 

until the next annual township election, at which election the

 

vacancy shall be filled for the unexpired term. A member of the

 

board of public service commissioners shall be a resident of the

 

district. As used in this section, "annual township election" means

 

an election held on the first Tuesday after the first Monday in

 

November every year.

 

     (2) The township clerk shall call a special township election,

 

upon the filing with the clerk of a petition signed by 25

 

registered electors of the district, for the election of the

 

members of the board of public service commissioners to hold office

 

until the first annual township election. At the first annual

 

township election held under this section, 2 commissioners shall be

 

elected for a term of 3 years, 2 commissioners shall be elected for

 

a term of 2 years, and 1 commissioner shall be elected for a term

 

of 1 year. After the first annual township election, a commissioner

 

shall be elected for a term of 3 years. The commission may hire

 

necessary employees to carry out the purpose of sections 1 to 5.

 

The provisions of this This section do does not apply to a

 

waterworks facility constituting only a part of a general township

 

water system. A petition under this subsection, including the

 

circulation and signing of the petition, is subject to section 488

 

of the Michigan election law, 1954 PA 116, MCL 168.488. A person

 

who violates a provision of the Michigan election law, 1954 PA 116,

 

MCL 168.1 to 168.992, applicable to a petition described in this

 

subsection is subject to the penalties prescribed for that


 

violation in the Michigan election law, 1954 PA 116, MCL 168.1 to

 

168.992.

 

     (3) A board of public service commissioners may dissolve

 

itself, alone or together with the district, upon satisfaction of

 

all of the following requirements:

 

     (a) The board of public service commissioners shall prepare a

 

financial report of the assets and liabilities of the district. The

 

financial report shall include a description of obligations of the

 

district, an accounting of money held by the district, an appraisal

 

or inventory of other assets of the district, and a description of

 

any encumbrances on assets of the district. The board of public

 

service commissioners shall file a copy of the financial report

 

with the township clerk of the township where the district is

 

located.

 

     (b) The board of public service commissioners shall hold a

 

public hearing on the issue of the dissolution. In Before January

 

1, 2015, in addition to satisfying the requirements of the open

 

meetings act, 1976 PA 267, MCL 15.261 to 15.275, the board of

 

public service commissioners shall publish notice of the hearing in

 

a newspaper of general circulation in the township where the

 

district is located not less than 10 days before the hearing.

 

Beginning January 1, 2015, in addition to satisfying the

 

requirements of the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275, the board of public service commissioners shall, not less

 

than 10 days before the public hearing, provide tier C public

 

notice of the public hearing on the issue of dissolution as set

 

forth in the local government public notice act. The notice shall


 

give the time, date, location, and purpose of the hearing and state

 

that a copy of the financial report is available for public

 

inspection at the office of the township clerk.

 

     (c) After the hearing, the board of public service

 

commissioners shall prepare a plan for the transfer of the assets

 

and liabilities of the district to the township where the district

 

is located. The plan shall not impair the rights of holders of

 

special assessment bonds issued pursuant to under section 3 or the

 

rights of property owners served by the waterworks.

 

     (d) The township board of the township where the district is

 

located shall adopt a resolution agreeing to the dissolution of the

 

board of public service commissioners, alone or together with the

 

district, in accordance with the plan under subdivision (c).

 

     (e) After the township board adopts a resolution under

 

subdivision (d), the board of public service commissioners shall

 

adopt a consistent resolution to dissolve itself, alone or together

 

with the district, in accordance with the plan under subdivision

 

(c).

 

     (4) As its last act before the effective date of dissolution,

 

a board of public service commissioners shall file its records with

 

the clerk of the township where the district is located , for

 

safekeeping and reference.

 

     (5) As used in this section, "annual township election" means

 

an election held on the first Tuesday after the first Monday in

 

November every year.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. ____ or House Bill No. 5560 (request no.


 

03796'13) of the 97th Legislature is enacted into law.