December 6, 2011, Introduced by Senator ROBERTSON and referred to the Committee on Local Government and Elections.
A bill to amend 1986 PA 196, entitled
"Public transportation authority act,"
by amending sections 8 and 18 (MCL 124.458 and 124.468), as amended
by 2006 PA 175.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
8. (1) Except as otherwise provided in subsection (2),
this section, a political subdivision that is a member of a public
authority
or the portion of a city, village, or township , which
portion
that is a member of a public authority may be released
from
membership in the public authority if all of the following
conditions are met:
(a) Adoption of a resolution by a majority of the members
elected to and serving on the legislative body of the political
subdivision requesting release from membership.
(b) Acceptance of the request by a 2/3 vote of the members
serving on the board of the public authority, excluding the members
representing the political subdivision requesting release.
(c) Payment or the provision for payment is made regarding all
obligations of the political subdivision to the public authority or
its creditors.
(2) Notwithstanding subsection (1) or (5), an entity that is a
political subdivision and is a member of a public authority or the
portion
of a city, village, or township , which portion that is a
member
of a public authority , may be
released from membership in
the public authority if all of the following conditions are met:
(a) The entity desiring to withdraw from the authority has
approved the question by a majority of the qualified and registered
electors voting at a general or special election held in November
before the expiration of a tax authorized to be levied under this
act.
(b) Subject to subsection (6), a petition that bears the
signatures of registered electors of the entity equal to at least
20% of the number of votes cast in the political subdivision or
portion of a city, village, or township for all candidates for
governor in the last general election in which a governor was
elected and that requires the governing body of the entity by
resolution to submit the question to its electors at the next
general
or special election is filed not less than 60 days not
later than 4 p.m. on the twelfth Tuesday before the election with
the clerk of the entity presenting the question.
(c) The vote upon the question approving the resolution is by
ballot and is in substantially the following form:
"Shall __________ (township, village, city, or other) as
provided by 1986 PA 196 withdraw from the authority as a member?
Yes ____
No ____".
(d) All ballots are cast, canvassed, and the results of the
election certified in the same manner as ballots on any other
question submitted to the electors of the entity seeking withdrawal
pursuant to the Michigan election law, 1954 PA 116, MCL 168.1 to
168.992.
(e) Payment or the provision for payment is made regarding all
obligations of the political subdivision to the public authority or
its creditors. If withdrawal is approved by a majority of the
electors voting on the question, the decision will take effect at
the expiration date of the tax and neither the authority nor
officials of the political subdivision may appeal or amend this
decision.
(3) A tax authorized to be levied by a public authority within
the boundaries of the political subdivision or the portion of a
political subdivision to be released shall continue to be levied
for the period of time originally authorized and shall be paid over
to the public authority originally authorized to be the recipient
of the tax revenue. A political subdivision or portion of a
political subdivision that has been released from an authority
shall continue to receive transportation services from the
authority until the political subdivision or portion of the
political subdivision is no longer required to pay a tax levied by
the authority.
(4) Release of a political subdivision or portion of a
political subdivision from a public authority shall be evidenced by
an amendment to the articles of incorporation executed by the
recording officer of a public authority and filed and published in
the same manner as the original articles of incorporation.
(5) A political subdivision or other entity that is part of a
public authority under this act may withdraw from the public
authority
until the expiration of the thirtieth day following 30
days after the date the public authority is incorporated or until
the
expiration of the thirtieth day 30
days after receiving
notification under subsection (7), whichever is later, without
meeting the conditions listed in subsection (1) or (2). If a public
authority under this act has as a member a political subdivision
that is part of a metropolitan statistical area, as defined by the
United States department of commerce or a successor agency, and the
metropolitan statistical area has a population of not less than
600,000 and not more than 1,500,000, a political subdivision or
other entity that is part of the public authority may also withdraw
from the public authority until the expiration of 30 days after the
date on which the board of the public authority adopts a resolution
calling for an election for the purpose of levying a tax pursuant
to section 18, without meeting the conditions listed in subsection
(1) or (2). If all or a portion of a city, village, or township is
part of an authority incorporating as a public authority under this
act, the city, village, or township may also decide to only
withdraw a portion of the entity bounded by the precinct lines
described in section 4 from the public authority under the deadline
established in this subsection. In addition, a political
subdivision or other entity that is part of a public authority
under this act may withdraw from the public authority in any year
in which a tax authorized to be levied under this act expires,
without meeting the conditions listed in subsection (1) or (2), if
the political subdivision or entity makes the determination to
withdraw by a vote of its legislative body held in January of that
year. Further, if all or a portion of a city, village, or township
is part of an authority incorporating as a public authority under
this act, the city, village, or township may also decide to only
withdraw a portion of the entity bounded by the lines described in
section 4 from the public authority in that same January. However,
if a tax is authorized to be levied in a political subdivision or
portion of a political subdivision by a public authority under this
act and the political subdivision or portion of a political
subdivision withdraws pursuant to this subsection, the tax shall
continue to be levied in the political subdivision or portion of a
political subdivision for the period of time originally authorized.
A political subdivision or portion of a political subdivision that
withdraws from the authority shall continue to receive public
transportation services from the authority until the political
subdivision or portion of the political subdivision is no longer
required to pay a tax levied by the authority.
(6) A petition under subsection (2), 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 subsection
(2) is subject to the penalties prescribed for that violation in
the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992.
(7) An authority that forms under this act on or after May 1,
2006 shall notify all political subdivisions or portions of any
city, village, or township that are included in the authority that
the political subdivision or portion of the political subdivision
is included in the authority. The authority shall include in this
notification notice of the right to withdraw from the authority
under this section. The political subdivision or portion of the
political subdivision that is notified has 30 days after receiving
the notification to withdraw from the authority pursuant to
subsection (5).
Sec. 18. (1) A public authority formed under this act may levy
a tax on all of the taxable property within the limits of the
public authority for public transportation purposes as authorized
by this act.
(2) The tax authorized in subsection (1) shall not exceed 5
mills of the state equalized valuation on each dollar of assessed
valuation of taxable property within the limits of the applicable
public authority.
(3) The tax authorized under subsection (1) shall not be
levied except upon the approval of a majority of the registered
electors residing in the public authority affected and qualified to
vote and voting on the tax at a general or special election. The
election may be called by resolution of the board of the public
authority. The recording officer of the public authority shall file
a copy of the resolution of the board calling the election with the
clerk
of each affected county, city, or township not less than 60
days
not later than 4 p.m. on the twelfth
Tuesday before the date
of the election. The resolution calling the election shall contain
a statement of the proposition to be submitted to the electors.
Each county, city, and township clerk and all other county, city,
and township officials shall undertake those steps to properly
submit the proposition to the electors of the county, city, and
township at the election specified in the resolutions of the public
authority. The election shall be conducted and canvassed in
accordance with the Michigan election law, 1954 PA 116, MCL 168.1
to 168.992, except that if the public authority is located in more
than 1 county, the election shall be canvassed by the state board
of canvassers. The results of the election shall be certified to
the board of the public authority promptly after the date of the
election. Not more than 1 election may be held in a public
authority in a calendar year for approval of the tax authorized
under subsection (1). If the election is a special election, the
public authority in which the election is held shall pay its share
of the costs of the election.
(4) Except as otherwise provided in this subsection, the taxes
authorized by this section may be levied at a rate and for a period
of not more than 5 years as determined by the public authority in
the resolution calling the election and as set forth in the
proposition submitted to the electors. Taxes may be levied at a
rate and for a period of not more than 25 years as determined by
the public authority in the resolution calling the election and as
set forth in the proposition submitted to the electors if the
public authority seeking the levy is seeking the levy for public
transit services that include a fixed guideway project authorized
under 49 USC 5309.
(5) The tax rate authorized by this section shall be levied
and collected as are all ad valorem property taxes in the state and
the recording officer of the public authority shall at the
appropriate times certify to the proper tax assessing or collecting
officers of each tax collecting county, city, and township the
amount of taxes to be levied and collected each year by each
county, city, and township. Consistent with subsection (6), the
board of the public authority shall determine on which tax roll, if
there
be is more than 1, of each county, city, or township that
the
taxes authorized by this section shall be collected. Each tax
assessing and collecting officer and each county treasurer shall
levy and collect the taxes certified by the public authority and
pay those taxes to the public authority by the time provided in
section 43 of the general property tax act, 1893 PA 206, MCL
211.43. The tax rate authorized by this section may be first levied
by the public authority as a part of the first tax roll of the
appropriate counties, cities, and townships occurring after the
election described in subsection (3). The tax may be levied and
collected on the July or December tax roll next following the date
of election, if the tax is certified to the proper tax assessing
officials not later than May 15 or September 15, respectively, of
the year in which the election is held.
(6)
A public authority which that
is authorized to impose a
July
property tax levy and if it determines to do so, it shall
negotiate agreements with the appropriate cities and townships for
the collection of that levy if it determines to do so. If a city or
township and the public authority fail to reach an agreement for
the collection by the city or township of the July property tax
levy of the public authority, the public authority then may
negotiate, until April 1, a proposed agreement with the county
treasurer to collect its July property tax levy against property
located in that city or township. If the county treasurer and the
public authority fail to reach an agreement for the collection by
the county of the July property tax levy of the public authority,
the July property tax levy shall be collected with the December
property tax levy. Any agreement negotiated under this subsection
shall
guarantee the collecting unit its reasonable expenses. The
provisions
of this This subsection shall does not
apply to a city
or
township which that is levying a July property tax.
(7) If, pursuant to subsection (6), the public authority has
reached a proposed agreement with a county treasurer on the
collection of its July property tax levy against property located
in a city or township with which an agreement to collect this levy
could not be made pursuant to subsection (6), the public authority
shall
notify by April 15 that city or township of the terms of that
fact by April 15 and the city or township shall have 15 days in
which to exercise an option to collect the public authority's July
property tax levy.
(8) Collection of all or part of a public authority's property
tax levy by a treasurer pursuant to subsection (6) or (7) shall
comply with all of the following:
(a) Collection shall be either 1/2 or the total of the
property tax levy against the properties, as specified for that
year in the resolution of the public authority.
(b) The amount the public authority has agreed to pay as
reasonable collection expenses shall be stated in writing and
reported to the state treasurer.
(c) Taxes authorized to be collected shall become a lien
against the property on which they are assessed, and due from the
owner of that property, on July 1.
(d) Taxes shall be collected on or before September 14 and all
taxes and interest imposed pursuant to subdivision (f) unpaid
before March 1 shall be returned as delinquent on March 1. Taxes
delinquent under this subdivision shall be collected pursuant to
the general property tax act, 1893 PA 206, MCL 211.1 to
211.157.211.155.
(e) Interest shall be added to taxes collected after September
14
at that the rate imposed by section 59 of the general property
tax act, 1893 PA 206, MCL 211.59, on delinquent property tax levies
which
that became a lien in the same year.
(f) All or a portion of fees or charges, or both, authorized
under section 44 of the general property tax act, 1893 PA 206, MCL
211.44, may be imposed on taxes paid before March 1 and shall be
retained by the treasurer actually performing the collection of the
July property tax levy of the public authority, regardless of
whether all or part of these fees or charges, or both, have been
waived by the township or city.
(9) An agreement for the collection of a July property tax
levy of a public authority with a county treasurer shall include a
schedule for delivering collections to the public authority.
(10) To the extent applicable and consistent with the
requirements of this section, the general property tax act, 1893 PA
206,
MCL 211.1 to 211.157, shall apply 211.155, applies to
proceedings
in relation related to the assessment, spreading, and
collection of taxes pursuant to this section. Additionally, in
relation to the assessment, spreading, and collection of taxes
pursuant to this section, the county treasurer shall have powers
and duties similar to those prescribed by the general property tax
act,
1893 PA 206, MCL 211.1 to 211.157, 211.155, for township
supervisors, township clerks, and township treasurers. However,
this
section shall does not be considered to transfer any authority
over the assessment of property.
(11) If a county treasurer collects the July property tax levy
of the public authority, the township or city shall deliver by June
1 a certified copy of the assessment roll containing state
equalized valuations for each parcel of taxable property in the
township or city to the treasurer collecting the July property tax
levy of the public authority. The county treasurer receiving this
certified copy of the assessment roll shall remit the necessary
cost incident to the reproduction of the assessment roll to the
township or city.
(12) A county treasurer collecting taxes pursuant to this
section shall be bonded for tax collection in the same amount and
in the same manner as a township treasurer would be for undertaking
the duties prescribed by this section.
(13) An agreement for the collection of a July property tax
levy between a public authority and a county may cover July
collections for 2 years. If an agreement covers July collections
for 2 years, the notice required by subsection (7) and the option
to
reconsider provided by subsection (7) shall not apply for to
July collections in the second year.
(14) If collections are made pursuant to this section by a
county treasurer, all payments from a public authority for
collecting its July property tax levy and all revenues generated
from collection fees shall be deposited, when received or
collected,
in a fund , which fund shall be that is used
by the
county treasurer to pay for the cost of collecting the public
authority's July property tax levy.