SB-1235, As Passed Senate, December 6, 2018

SUBSTITUTE FOR

SENATE BILL NO. 1235

     A bill to amend 1951 PA 33, entitled

"An act to provide police and fire protection for townships and for

certain areas in townships, certain incorporated villages, and

certain cities; to authorize contracting for fire and police

protection; to authorize the purchase of fire and police equipment,

and the maintenance and operation of the equipment; to provide for

defraying the cost of the equipment; to authorize the creation of

special assessment districts and the levying and collecting of

special assessments; to authorize the issuance of special

assessment bonds in anticipation of the collection of special

assessments and the advancement of the amount necessary to pay such

bonds, and to provide for reimbursement for such advances by

reassessment if necessary; to authorize the collection of fees for

certain emergency services in townships and other municipalities;

to authorize the creation of administrative boards and to prescribe

their powers and duties; to provide for the appointment of traffic

officers and to prescribe their powers and duties; and to repeal

acts and parts of acts,"

by amending section 1 (MCL 41.801), as amended by 2002 PA 501.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. (1) The township board of a township, or the township

boards of adjoining townships acting jointly, whether or not the

townships are located in the same county, may purchase police and

fire motor vehicles, apparatus, equipment, and housing and for that

purpose may provide by resolution for the appropriation of general

or contingent funds. Before January 1, 1999, the appropriation for

fire motor vehicles, apparatus, equipment, and housing in a 1-year

period shall must not exceed 10 mills of the assessed valuation of

the area in their respective townships for which fire protection is

to be furnished. After December 31, 1998, the appropriation for

fire motor vehicles, apparatus, equipment, and housing in a 1-year

period shall must not exceed 10 mills of the taxable value of the

area in their respective townships for which fire protection is to

be furnished. Before January 1, 1999, the appropriation for police

motor vehicles, apparatus, equipment, and housing in a 1-year

period shall must not exceed 10 mills of the assessed valuation of

the area in their respective townships for which police protection

is to be furnished. After December 31, 1998, the appropriation for

police motor vehicles, apparatus, equipment, and housing in a 1-

year period shall must not exceed 10 mills of the taxable value of

the area in their respective townships for which police protection

is to be furnished.

     (2) The township board of a township, or the township boards

of adjoining townships acting jointly, whether or not the townships

are located in the same county, may provide annually by resolution

for the appropriation of general or contingent funds for

maintenance and operation of police and fire departments.

     (3) The township board, or the township boards of adjoining

townships acting jointly, may provide that the sums prescribed in

subsection (2) for purchasing and housing equipment, for the

operation of the equipment, or both, may be defrayed by special

assessment on the lands and premises in the township or townships

to be benefited, except, beginning in 2002, lands and premises

exempt from the collection of taxes under the general property tax

act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, and may issue

bonds in anticipation of the collection of these special

assessments. The question of raising money by special assessment

may be submitted to the electors of the township or townships by

the township board, or township boards acting jointly, at a general

election or special election called for that purpose by the

township board or township boards. The question of raising money by

special assessment shall must be submitted by the township board,

or township boards acting jointly, if in the affected township, or

in each of the affected townships, the owners of 10% of the land to

be made into a special assessment district petition the township

board or boards.

     (4) If a special assessment district is proposed under

subsection (3), the township board, or township boards acting

jointly, shall estimate the cost and expenses of the police and

fire motor vehicles, apparatus, equipment, and housing and police

and fire protection, and fix a day for a hearing on the estimate

and on the question of creating a special assessment district and

defraying the expenses of the special assessment district by

special assessment on the property to be especially benefited,

except, beginning in 2002, property exempt from the collection of

taxes under the general property tax act, 1893 PA 206, MCL 211.1 to

211.157. 211.155. The hearing shall must be a public meeting held

in compliance with the open meetings act, 1976 PA 267, MCL 15.261

to 15.275. Public notice of the time, date, and place of the

meeting shall must be given in the manner required by the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275. In addition, the

township board, or township boards acting jointly, shall publish in

a newspaper of general circulation in the proposed district a

notice stating the time, place, and purpose of the meeting. If

there is not a newspaper of general circulation in the proposed

district, notices shall must be posted in not less than 3 of the

most public places in the proposed district. This notice shall be

published or posted not less than 5 days before the hearing. On the

day appointed for the hearing, the township board, or township

boards acting jointly, shall be in session to hear objections that

may be offered against the estimate and the creation of the special

assessment district. Before January 1, 1999, if the township board,

or township boards acting jointly, determine to create a special

assessment district, they shall determine the boundaries by

resolution, determine the amount of the special assessment levy,

and direct the supervisor or supervisors to spread the assessment

levy on all of the lands and premises in the district that are to

be especially benefited by the police and fire protection,

according to benefits received, except, beginning in 2002, lands

and premises exempt from the collection of taxes under the general

property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, to

defray the expenses of police and fire protection. After December

31, 1998, if the township board, or township boards acting jointly,

determine to create a special assessment district, they shall

determine the boundaries by resolution, determine the amount of the

special assessment levy, and direct the supervisor or supervisors

to spread the assessment levy on the taxable value of all of the

lands and premises in the district that are to be especially

benefited by the police and fire protection, according to benefits

received, except, beginning in 2002, lands and premises exempt from

the collection of taxes under the general property tax act, 1893 PA

206, MCL 211.1 to 211.157, 211.155, to defray the expenses of

police and fire protection. The township board, or township boards

acting jointly, shall hold a hearing on objections to the

distribution of the special assessment levy. This hearing shall

must be held in the same manner and with the same notice as

provided in this section. The township board, or township boards

acting jointly, shall annually determine the amount to be assessed

in the district for police and fire protection, shall direct the

supervisor or supervisors to distribute the special assessment

levy, and shall hold a hearing on the estimated costs and expenses

of police and fire protection and on the distribution of the levy.

The assessment may be made either in a special assessment roll or

in a column provided in the regular tax roll. The assessment shall

must be distributed and shall must become due and be collected at

the same time as other township taxes are assessed, levied, and

collected, and shall must be returned in the same manner for

nonpayment. If a township has a July property tax levy, not more

than 2 mills of the assessment may be collected at the same time

and in the same manner as the July levy. If the collections

received from the special assessment levied to defray the cost or

portion intended to be defrayed for police and fire protection are,

at any time, insufficient to meet the obligations or expenses

incurred for the maintenance and operation of the police and fire

departments, the township board of the township, or township boards

acting jointly, may, by resolution, authorize the transfer or loan

of sufficient money from the general fund of the township or

townships, to the special assessment police and fire department

fund. This money shall must be repaid to the general fund of the

township or townships out of special assessment funds when

collected.

     (5) The powers granted by this act with respect to police and

fire protection may be exercised with respect to police protection

alone, fire protection alone, or police and fire protection in

combination.

     (6) After December 31, 1998, an ad valorem special assessment

levied under this act shall must be levied on the taxable value of

the property assessed. After December 31, 2018, a special

assessment levied under this act must be spread on the taxable

value of the property assessed based on the special benefit

provided to the property assessed and may not be based on police

and fire protection provided in a prior year to assessed property.

A special assessment levy may be based upon the type of property

being assessed.

     (7) A special assessment imposed under this act must be levied

on all properties within the special assessment district

established pursuant to this act other than properties exempt from

the collection of taxes under the general property tax act, 1893 PA

206, MCL 211.1 to 211.155.

(8) (7) As used in this section, "taxable value" means that

value determined under section 27a of the general property tax act,

1893 PA 206, MCL 211.27a.

(9) (8) If the levy of an ad valorem special assessment on the

property's taxable value is found to be invalid by a court of

competent jurisdiction, the levy of the ad valorem special

assessment shall must be levied on the property's state equalized

value.

(10) (9) Bonds issued under this act are subject to the

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

141.2821.

     Enacting section 1. This amendatory act takes effect January

1, 2019.