HB-5216, As Passed Senate, December 17, 2003                                

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5216

                                                                             A bill to amend 1909 PA 279, entitled                                             

"The home rule city act,"                                                   

by amending section 4l (MCL 117.4l), as amended by 1996 PA 44,               

and by adding section 4q.                                                   

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 4l.  (1) Consistent with any of the following statutes                 

2   and whether or not authorized by the city charter, the                      

3   legislative body of a city may adopt an ordinance that designates           

4   a violation of the ordinance as a civil infraction and provides a           

5   civil fine for that violation:                                              

6       (a) The Michigan vehicle code,  Act No. 300 of the Public                   

7   Acts of 1949, being sections 257.1 to 257.923 of the Michigan

8   Compiled Laws 1949 PA 300, MCL 257.1 to 257.923.                           

9       (b)  Act No. 235 of the Public Acts of 1969, being                          

10  sections 257.941 to 257.943 of the Michigan Compiled Laws 1969             

1   PA 235, MCL 257.941 to 257.943.                                             

2       (c)  Act No. 62 of the Public Acts of 1956, being                           

3   sections 257.951 to 257.954 of the Michigan Compiled Laws 1956             

4   PA 62, MCL 257.951 to 257.955.                                              

5       (2) Whether or not authorized by the city charter, the                      

6   legislative body of a city may adopt an ordinance that designates           

7   a violation of the ordinance as a municipal civil infraction and            

8   provides a civil fine for that violation.  An ordinance  may

9   shall not designate a violation as a municipal civil infraction             

10  if that violation may be designated as a civil infraction under             

11  subsection (1).  A statute may provide that a violation of a                

12  specific type of ordinance is a municipal civil infraction                  

13  whether or not the ordinance designates the violation as a                  

14  municipal civil infraction.                                                 

15      (3) An ordinance shall not make an act or omission a                        

16  municipal civil infraction or a blight violation if that act or             

17  omission constitutes a crime under any of the following:                    

18      (a) Article 7  or section 17766a  of the public health code,                

19  Act No. 368 of the Public Acts of 1978, being sections 333.7101            

20  to 333.7545 and 333.17766a of the Michigan Compiled Laws 1978 PA           

21  368, MCL 333.7101 to 333.7545.                                              

22      (b) The Michigan penal code,  Act No. 328 of the Public Acts                

23  of 1931, being sections 750.1 to 750.568 of the Michigan Compiled           

24  Laws 1931 PA 328, MCL 750.1 to 750.568.                                    

25      (c)  Act No. 300 of the Public Acts of 1949, being                          

26  sections 257.1 to 257.923 of the Michigan Compiled Laws The                

27  Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.                   

1       (d) The Michigan liquor control  act, Act No. 8 of the Public               

2   Acts of the Extra Session of 1933, being sections 436.1 to 436.58           

3   of the Michigan Compiled Laws code of 1998, 1998 PA 58, MCL                

4   436.1101 to 436.2303.                                                       

5       (e) Part 801  (marine safety)  of the natural resources and                 

6   environmental protection act,  Act No. 451 of the Public Acts of            

7   1994, being sections 324.80101 to 324.80199 of the Michigan

8   Compiled Laws 1994 PA 451, MCL 324.80101 to 324.80199.                     

9       (f) The aeronautics code of the state of Michigan,  Act                     

10  No. 327 of the Public Acts of 1945, being sections 259.1 to                 

11  259.208 of the Michigan Compiled Laws 1945 PA 327, MCL 259.1 to            

12  259.208.                                                                    

13      (g) Part 821  (snowmobiles)  of  Act No. 451 of the Public                  

14  Acts of 1994, being sections 324.82101 to 324.82159 of the                  

15  Michigan Compiled Laws the natural resources and environmental             

16  protection act, 1994 PA 451, MCL 324.82101 to 324.82160.                    

17      (h) Part 811  (off-road recreation vehicles)  of  Act No. 451               

18  of the Public Acts of 1994, being sections 324.81101 to 324.81150           

19  of the Michigan Compiled Laws  the natural resources and                   

20  environmental protection act, 1994 PA 451, MCL 324.81101 to                 

21  324.81150.                                                                  

22      (i) Sections 351 to 365 of the railroad code of 1993,  Act                  

23  No. 354 of the Public Acts of 1993, being sections 462.351 to               

24  462.365 of the Michigan Compiled Laws 1993 PA 354, MCL 462.351             

25  to 462.365.                                                                 

26      (j) Any law of this state under which the act or omission is                

27  punishable by imprisonment for more than 90 days.                           

House Bill No. 5216 as amended December 16, 2003                            

1   (4) Whether or not authorized by the city charter, the                      

2   legislative body of a city may adopt an ordinance that designates           

3   a violation of the ordinance as a blight violation and provides a           

4   civil fine and other sanctions for that violation consistent with           

5   section 4q.  An ordinance shall not designate a violation as a              

6   blight violation if that violation may be designated a civil                

7   infraction under subsection (1). <<An ordinance shall not designate a violation as both a municipal civil infraction and a blight violation.>>

8       Sec. 4q.  (1) A city that has a population of 7,500 or more                 

9   and is located in any county, or a city that has a population of            

10  3,300 or more and is located in a county that has a population of           

11  2,000,000 or more, may establish an administrative hearings                 

12  bureau to adjudicate and impose sanctions for violations of the             

13  charter or ordinances designated in the charter or ordinance as a           

14  blight violation.  The bureau may accept admissions of                      

15  responsibility for blight violations.  Pursuant to a schedule of            

16  civil fines and costs, the bureau may collect civil fines and               

17  costs for blight violations.                                                

18      (2) The expense of the operation of an administrative                       

19  hearings bureau shall be borne by the city establishing the                 

20  bureau.                                                                     

21      (3) An administrative hearings bureau shall not have                        

22  jurisdiction over criminal offenses, traffic civil infractions,             

23  municipal civil infractions, or state civil infractions.  The               

24  bureau and its hearing officers shall not have the authority to             

25  impose a penalty of incarceration and may not impose a civil fine           

26  in excess of $10,000.00.                                                    

27      (4) A city that establishes an administrative hearings bureau               

1   under this section shall establish by ordinance the jurisdiction            

2   of the bureau for adjudicating alleged blight violations, making            

3   determinations of responsibility, and imposing sanctions upon               

4   those found responsible for a violation.  The city may designate            

5   only a violation of any of the following types of ordinances as a           

6   blight violation:                                                           

7       (a) Zoning.                                                                 

8       (b) Building or property maintenance.                                       

9       (c) Solid waste and illegal dumping.                                        

10      (d) Disease and sanitation.                                                 

11      (e) Noxious weeds.                                                          

12      (f) Vehicle abandonment, inoperative vehicles, vehicle                      

13  impoundment, and municipal vehicle licensing.                               

14      (5) To initiate a proceeding for a blight violation, the city               

15  shall issue and serve upon an alleged violator a written                    

16  violation notice on which an authorized local official records              

17  the occurrence or existence of 1 or more blight violations by the           

18  person cited and which directs the named person to pay a civil              

19  fine for the violation or appear at the administrative hearings             

20  bureau as provided in this section.  A violation notice to appear           

21  at an administrative hearings bureau shall be treated as made               

22  under oath if the violation alleged in the notice occurred in the           

23  presence of the authorized local official signing the violation             

24  notice and if the notice contains the following statement                   

25  immediately above the date and signature of the official:  "I               

26  declare under the penalties of perjury that the statements above            

27  are true to the best of my information, knowledge, and belief.".            

House Bill No. 5216 as amended December 16, 2003                            

1   An authorized local official may issue a violation notice to                

2   appear if, based upon investigation, the official has reasonable            

3   cause to believe that the person is responsible for a blight                

4   violation and if the city attorney or an assistant city attorney            

5   approves in writing the issuance of the violation notice.                   

6   (6) If a city has a rental inspection program with which a                  

7   landlord must register in order to rent premises for residential            

8   purposes and if a landlord of premises rented in the city for               

9   residential purposes is registered with the city's rental                   

10  inspection program, the city shall not issue a blight violation             

11  notice during an inspection of the premises unless either of the            

12  following occurs:                                                           

13      (a) The landlord is given a written correction notice of the                

14  violation and a reasonable opportunity to correct the                       

15  circumstances before a reinspection of the premises or a date               

16  specified in the notice.                                                    

17      (b) The violation is a direct result of the landlord's action               

18  or inaction and creates an emergency that presents an immediate             

19  risk of harm to people or damage to property including, but not             

20  limited to, a flooded basement or premises without heat.                    

21      (7) A city that does not have a rental inspection program <<, or does not require a landlord to register as part of a rental inspection program,>>

22  shall not issue a blight violation notice to a landlord of                  

23  premises rented in the city for residential purposes during an              

24  inspection of the premises unless either of the following                   

25  occurs:                                                                     

26      (a) The landlord is given a written correction notice of the                

27  violation and a reasonable opportunity to correct the                       

1   circumstances before a reinspection of the premises or a date               

2   specified in the notice.                                                    

3       (b) The violation is a direct result of the landlord's action               

4   or inaction and creates an emergency that presents an immediate             

5   risk of harm to people or damage to property, including, but not            

6   limited to, a flooded basement or premises without heat.                    

7   (8) The person named in the violation notice shall appear on                

8   or before the time specified in the violation notice and may                

9   respond to the allegations in the notice, as follows:                       

10      (a) If the alleged violator wishes to admit responsibility                  

11  for the blight violation, the person may do so by appearing in              

12  person, by representation, or by mail.  If appearance is made by            

13  representation or mail, the administrative hearings bureau may              

14  accept the admission as though the person personally appeared.              

15  Upon acceptance of the admission, a hearing officer may order any           

16  of the sanctions permitted under this section.                              

17      (b) If the alleged violator wishes to deny responsibility for               

18  the blight violation, or admit responsibility with an                       

19  explanation, the person may do so by appearing in person on the             

20  date scheduled for the administrative hearing for the purpose of            

21  adjudicating the alleged violation.                                         

22      (c) If the alleged violator fails to appear, a decision and                 

23  order of default may be entered.                                            

24      (9) If an admission of responsibility is not made and the                   

25  civil fine and costs, if any, prescribed by charter or ordinance            

26  for the violation are not paid at the administrative hearings               

27  bureau, and the alleged violator fails to appear at a hearing               

House Bill No. 5216 as amended December 16, 2003                            

1   scheduled in accordance with this section, a final decision and             

2   order of responsibility in the amount of the prescribed civil               

3   fine and costs may be issued by the administrative hearings                 

4   bureau.                                                                     

5       (10) The city establishing an administrative hearings bureau                

6   shall establish rules and procedures for an alleged violator to             

7   set aside the entry of a decision and order of default.                     

8   (11) The ordinance establishing the bureau shall provide for                

9   adjudicatory hearings by hearing officers.  Each hearing officer            

10  shall be an attorney licensed to practice law in this state for             

11  at least 5 years.  Hearing officers shall be appointed in a                 

12  manner consistent with the charter of the city for the                      

13  appointment of other municipal officers or employees and shall              

14  only be removed for reasonable cause.  Before conducting                    

15  administrative adjudication proceedings, administrative hearing             

16  officers shall successfully complete a formal training program              

17  which includes all of the following:                                        

18      (a) Instruction on the rules of procedure of the                            

19  administrative hearings that they will conduct.                             

20      (b) Orientation to each subject area of the ordinance                       

21  violations that they will adjudicate.                                       

22      (c) Observation of administrative hearings.                                 

23      (d) Participation in hypothetical cases, including ruling on                

24  evidence and issuing final orders.                                          

25      (e) The importance of impartiality in the conduct of the                    

26   administrative hearing and adjudication of the violation.

    <<(f) Instructions on the preparation of a record that is adequate for judicial review.>>

27      (12) The authority and duties of a hearing officer shall                    

1   include all of the following:                                               

2       (a) Hearing testimony and accepting evidence that is relevant               

3   to the existence of the blight violation.                                   

4       (b) Issuing subpoenas directing witnesses to appear and give                

5   relevant testimony at the hearing, upon request of a party or a             

6   party's attorney.                                                           

7       (c) Preserving and authenticating the record of the hearing                 

8   and all exhibits and evidence introduced at the hearing.                    

9   (d) Issuing a determination, based upon the evidence                        

10  presented at the hearing, whether a blight violation exists.  The           

11  determination shall be in writing and shall include written                 

12  findings of fact, a decision, and an order.  The city shall have            

13  the burden of establishing the responsibility of the alleged                

14  violator by a preponderance of the evidence.  Unless the burden             

15  is met, the matter shall be dismissed.  A decision and an order             

16  shall not be made except upon consideration of the record as a              

17  whole or a portion of the record as may be cited by any party to            

18  the proceeding and as supported by and in accordance with the               

19  competent, material, and substantial evidence.  A decision and              

20  order finding the alleged violator responsible for the violation            

21  shall include the civil fine, if any, or any action with which              

22  the violator must comply, or both.                                          

23      (e) Imposing reasonable and proportionate sanctions                         

24  consistent with applicable ordinance provisions and assessing               

25  costs upon a finding that the alleged violator is responsible for           

26  the alleged violation.  The maximum monetary civil fine allowed             

27  under this section excludes costs of enforcement or costs imposed           

House Bill No. 5216 as amended December 16, 2003                            

1   to secure compliance with the city's ordinances and is not                  

2   applicable to enforce the collection of any tax imposed and                 

3   collected by the city.                                                      

4       (13) In addition to fines and costs imposed under subsection                

5   (12), the hearing officer shall impose a justice system                     

6   assessment of $10.00 for each blight violation determination.               

7   Upon payment of the assessment, the <<city           >> shall               

8   transmit the assessment collected to the state treasury to be               

9   deposited into the justice system fund created in section 181 of            

10  the revised judicature act of 1961, 1961 PA 236, MCL 600.181.               

11  (14) A party shall be provided with the opportunity for a                   

12  hearing during which they may be represented by counsel, present            

13  witnesses, and cross-examine witnesses.  A party may request the            

14  hearing officer to issue subpoenas to direct the attendance and             

15  testimony of relevant witnesses and the production of relevant              

16  documents.  Hearings shall be scheduled with reasonable                     

17  promptness, except that for hearings scheduled in all                       

18  nonemergency situations the alleged violator if he or she                   

19  requests shall have at least 14 days after service of process to            

20  prepare for the hearing.  For purposes of this subsection,                  

21  "nonemergency situation" means any situation that does not                  

22  reasonably constitute a threat to the public interest, safety, or           

23  welfare.  If service is provided by first-class mail, the 14-day            

24  period begins to run on the day that the notice is deposited in             

25  the mail.                                                                   

26      (15) In an administrative hearing under this section, the                   

27  rules of evidence as applied in a nonjury civil case in circuit             

1   court shall be followed as far as practicable, but the hearing              

2   officer may admit and give probative effect to evidence of a type           

3   commonly relied upon by reasonably prudent persons in the conduct           

4   of their affairs.  Irrelevant, immaterial, or unduly repetitious            

5   evidence may be excluded.  Effect shall be given to the rules of            

6   privilege recognized by law.  Objections to offers of evidence              

7   may be made and shall be noted in the record.  Subject to these             

8   requirements, the hearing officer, for the purpose of expediting            

9   hearings and when the interests of the parties will not be                  

10  substantially prejudiced thereby, may provide in an                         

11  administrative hearing or by rule for submission of all or part             

12  of the evidence in written form.                                            

13  (16) Any final decision by a hearing officer that a blight                  

14  violation does or does not exist constitutes a final decision and           

15  order for purposes of judicial review and may be enforced in the            

16  same manner as a judgment entered by a court of competent                   

17  jurisdiction.                                                               

18      (17) A party may file an appeal within 28 days after entry of               

19  the decision and order by the hearing officer.  An appeal of a              

20  final decision and order of an administrative hearing officer is            

21  to the circuit court.                                                       

22      (18) An alleged violator who appeals a final decision and                   

23  order to circuit court shall post with the administrative                   

24  hearings bureau, at the time the appeal is taken, a bond equal to           

25  the fine and costs imposed.  A party who has paid the fine and              

26  costs is not required to post a bond.  If a party who has posted            

27  a bond fails to comply with the requirements of supreme court               

1   rules for an appeal to the circuit court, the appeal may be                 

2   considered abandoned, and the bureau may dismiss the appeal on 7            

3   days' notice to the parties.  The administrative hearings bureau            

4   must promptly notify the circuit court of a dismissal, and the              

5   circuit court shall dismiss the claim of appeal.  If the appeal             

6   is dismissed or the decision and order are affirmed, the                    

7   administrative hearings bureau may apply the bond to the fine and           

8   costs.  An appeal by the city must be asserted by the city's                

9   attorney and a bond is not required.                                        

10      (19) An appeal to circuit court shall be a review by the                    

11  court of the certified record provided by the administrative                

12  hearings bureau.  Pending appeal, and subject to the bond                   

13  requirement under subsection (18), the hearing officer may stay             

14  the order and any sanctions or costs imposed.  Once an appeal is            

15  filed, and subject to the bond requirement under subsection (18),           

16  the court may stay the order and any sanctions or costs imposed.            

17  The court, as appropriate, may affirm, reverse, or modify the               

18  decision or order, or remand the matter for further proceedings.            

19  The court shall hold unlawful and set aside a decision or order             

20  of the hearing officer if substantial rights of an alleged                  

21  violator have been prejudiced because the decision or order is              

22  any of the following:                                                       

23      (a) In violation of the constitution or a statute, charter,                 

24  or ordinance.                                                               

25      (b) In excess of the authority or jurisdiction of the agency                

26  as conferred by statute, charter, or ordinance.                             

27      (c) Made upon unlawful procedure resulting in material                      

1   prejudice to a party.                                                       

2       (d) Not supported by competent, material, and substantial                   

3   evidence on the whole record.                                               

4       (e) Arbitrary, capricious, or clearly an abuse or unwarranted               

5   exercise of discretion.                                                     

6       (f) Affected by other substantial and material error of law.