SB-0594, As Passed Senate, March 24, 2016

SUBSTITUTE FOR

SENATE BILL NO. 594

A bill to amend 1967 (Ex Sess) PA 7, entitled

"Urban cooperation act of 1967,"

by amending the title and sections 2 and 10 (MCL 124.502 and

124.510), the title as amended by 1998 PA 169 and sections 2 and 10

as amended by 2002 PA 439.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to provide for interlocal public agency agreements; to

provide standards for those interlocal agreements and for the

filing and status of those interlocal agreements; to permit the

allocation of certain taxes or money received from tax increment

financing plans as revenues; to permit tax sharing; to provide for

the imposition of certain surcharges; to provide for additional

approval for those interlocal agreements; to provide for the

approval of a memorandum of understanding and memorandum of

agreement involving this state; to provide for the duration of a

memorandum of understanding and memorandum of agreement involving

this state; to provide for the duration of certain requirements

related to grants applied for and involving this state; and to

prescribe penalties and provide remedies.

Sec. 2. As used in this act:

(a) "Interlocal agreement" means an agreement entered into

under this act.

(b) "Local governmental unit" means a county, city, village,

township, or charter township.

means a written statement detailing the understanding of

individuals representing parties who enter into certain agreements,

and includes certain grant applications involving this state. A

memorandum of understanding or memorandum of agreement may be

preliminary in nature.

(d) ~~(c)~~ "Province" means a province of Canada.

(e) ~~(d)~~ "Property" means any real or personal property, as

described in section 34c of the general property tax act, 1893 PA

206, MCL 211.34c.

(f) ~~(e)~~ "Public agency" means a political subdivision of this

state or of another state of the United States or of Canada,

including, but not limited to, a state government; a county, city,

village, township, charter township, school district, single or

multipurpose special district, or single or multipurpose public

authority; a provincial government, metropolitan government,

borough, or other political subdivision of Canada; an agency of the

United States government; or a similar entity of any other states

of the United States and of Canada. As used in this subdivision,

agency of the United States government includes an Indian tribe

recognized by the federal government before 2000 that exercises

governmental authority over land within this state, except that

this act or any intergovernmental agreement entered into under this

act shall not authorize the approval of a class III gaming compact

negotiated under the Indian gaming regulatory act, Public Law 100-

497, 102 Stat. 2467.

(g) ~~(f)~~ "State" means a state of the United States.

Sec. 10. (1) If funds of this state are to be allocated to

carry out, in whole or in part, an interlocal agreement under this

act or if this state, an agency of the United States government,

any other state or political subdivision of any other state, or

Canada or a political subdivision of Canada is a party to an

interlocal agreement under this act, an interlocal agreement, prior

to and as a condition precedent to its effectiveness, shall be

submitted to the governor who shall determine whether the

interlocal agreement is in proper form and compatible with the laws

of this state.

(2) For the purposes of ~~this section,~~ subsection (1), funds of

this state do not include grants, gifts, bequests, or assistance

funds given to a public agency that is a party to an interlocal

agreement if the purpose of that interlocal agreement is to

administer those grants, gifts, bequests, or assistance funds

according to their terms or to combine the proceeds of the parties'

grants, gifts, bequests, or assistance funds for investment

purposes.

(3) If a memorandum of understanding or memorandum of

agreement is between state departments or is between offices within

a state department, or if a memorandum of understanding or

memorandum of agreement involves this state and the federal

government or this state and a unit of government located outside

of this state, including any grant application associated with a

memorandum of understanding or memorandum of agreement involving

this state and the federal government or this state and a unit of

government located outside of this state, the memorandum of

understanding or memorandum of agreement, prior to and as a

condition precedent to its effectiveness, shall be submitted to the

governor, who shall determine whether the memorandum of

understanding or memorandum of agreement is in proper form and

compatible with the laws of this state.

(4) ~~(3)~~ The governor shall approve an interlocal agreement

submitted to him or her under subsection (1) unless the governor

finds that the interlocal agreement does not meet the conditions

set forth in this act or is not compatible with the laws of this

state. If the governor so finds, the governor shall detail in

writing addressed to the governing bodies of the public agencies

concerned within 90 days the specific respects in which the

proposed interlocal agreement fails to meet the requirements of

law. The governing bodies of the public agencies concerned shall

have 60 days to resubmit the revised interlocal agreement to the

governor, who shall approve or disapprove the agreement within 90

days.

(5) The governor may choose to not approve a memorandum of

understanding or memorandum of agreement, including any grant

application associated with a memorandum of understanding or

memorandum of agreement, submitted to him or her under subsection

(3). The governor shall not approve a memorandum of understanding

or memorandum of agreement, including any grant application

associated with a memorandum of understanding or memorandum of

agreement, submitted to him or her under subsection (3) that is not

in proper form or compatible with the laws of this state.

(6) If the governor approves a memorandum of understanding or

memorandum of agreement, including any grant application associated

with a memorandum of understanding or memorandum of agreement,

submitted to him or her under subsection (3), the memorandum of

understanding or memorandum of agreement, including any grant

requirements, if intended to be a legally binding contract, is only

binding for the term of office of the governor who approved the

memorandum of understanding or memorandum of agreement or for the

term described in the memorandum of understanding or memorandum of

agreement, whichever is shorter.

(7) ~~(4)~~ Prior to its effectiveness, an interlocal agreement

shall be filed with the county clerk of each county where a party

to the interlocal agreement is located and with the secretary of

state.

(8) Prior to its effectiveness, a memorandum of understanding

or memorandum of agreement, including any grant application

associated with a memorandum of understanding or memorandum of