SENATE BILL No. 1073

February 5, 2002, Introduced by Senator SMITH and referred to the Committee on Finance.

A bill to amend 1929 PA 312, entitled

"The metropolitan district act,"

by amending sections 4 and 5 (MCL 119.4 and 119.5).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4. Each district incorporated under the provisions

2 hereof OF THIS ACT may provide in its charter FOR 1 OR MORE OF

3 THE FOLLOWING:

4 (a) For annually laying LEVYING and collecting taxes in a

5 sum not to exceed 1/2 of 1 per centum 1% of the assessed value

6 of all real and personal property in the district.

7 (b) For borrowing money on the credit of the district in a

8 sum not to exceed 2 per centum 2% of the assessed value of all

9 real and personal property in the district for the purpose of

10 acquiring, owning, purchasing, constructing, maintaining, or

11 operating parks or public utilities, for supplying sewage

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1 disposal, drainage, water, or transportation, or any combination

2 thereof: Provided, That any such OF THESE. A district may

3 borrow money and issue bonds for any of the above purposes or

4 any combination thereof which DESCRIBED IN THIS SUBDIVISION THAT

5 will impose no liability upon the district but which may be

6 paid and secured only by special assessment levied against each

7 parcel for the particular public improvement herein provided

8 for and for the payment of which THE bonds THAT are issued.

9 : Provided further, That any A district incorporated under the

10 provisions hereof OF THIS ACT, may, for the purpose of acquir-

11 ing, owning, purchasing, constructing, or operating any public

12 utility herein provided for DESCRIBED IN THIS SUBDIVISION,

13 issue mortgage bonds therefor, or any combination thereof, which

14 said mortgage bonds THAT may be issued beyond the general limit

15 of bonded indebtedness prescribed by this act. : Provided, That

16 such A mortgage bonds BOND issued beyond the general limits of

17 bonded indebtedness shall not impose any liability upon the dis-

18 trict but shall be secured only upon the property and revenues of

19 such THE public utility, including the franchise, stating the

20 terms upon which, in case of foreclosure, the purchaser may oper-

21 ate the same PUBLIC UTILITY, which franchise shall in no case

22 extend for a longer period than 20 years from the date of such

23 THE sale of such THE utility and franchise on foreclosure. :

24 And provided, That said A mortgage bond shall be sold for not

25 less than par, bear interest at a rate not in excess of 6 per

26 centum 6%, and the total amount thereof shall not exceed 60

27 per centum 60% of the original cost of the utility. : And

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1 provided further, That the THE charter of any such district

2 shall provide for the creation of a sinking fund by setting aside

3 such A percentage of the gross or net earnings of the public

4 utility as may be deemed sufficient for the payment of the mort-

5 gage bonds at maturity.

6 (c) For a lien on any property and for taxes for the payment

7 of any bonds issued or for the cost and expense of making any

8 improvement herein provided for DESCRIBED IN THIS SECTION.

9 (d) For laying and collecting rents, tolls and excises.

10 (e) For a special assessment district to provide for the

11 cost and expense of any park or public utility, or combination

12 thereof OF A PARK AND PUBLIC UTILITY, herein provided for AS

13 PROVIDED IN THIS SECTION.

14 (f) For the purchase or condemnation of the franchises, if

15 any exist, and of the property used in the operation of companies

16 or individuals engaged in or operating public utilities for sup-

17 plying sewage disposal, drainage, water, or transportation, or

18 any combination thereof OF THESE. And each EACH district may

19 in its charter provide that it may make a contract upon such

20 THE terms, including terms of present or deferred payment and

21 upon such THE conditions and in such THE manner as the dis-

22 trict may deem CONSIDER proper, to purchase, operate, and main-

23 tain any existing public utility property for supplying sewage

24 disposal, drainage, water, or transportation, or any combination

25 thereof OF THESE within or without its limits. ; if IF with-

26 out its limits, then such THE purchase must be incidental to

27 the operation and maintenance of such THE public utility. No

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1 such A contract shall NOT bind the district unless the

2 proposition therefor ON THE CONTRACT shall receive the affirma-

3 tive vote of 3/5 of the electors voting thereon ON THE

4 PROPOSITION at a regular or special election. In the event of

5 any such purchase, the charter amendment and the contract to pur-

6 chase shall provide for the creation of a sinking fund, into

7 which shall be paid from time to time, from the earnings of the

8 utility, sums sufficient to insure the payment of the purchase

9 price and the performance of the obligations of said THE con-

10 tract to the end that the entire cost of such THE public util-

11 ity shall eventually be paid from its earnings. The powers in

12 this subdivision contained shall be ARE in addition to the

13 OTHER powers provided for in the other subdivisions of this act

14 and particularly this section, and the exercise thereof OF

15 THESE POWERS shall not impair or affect the right to exercise any

16 of the OTHER powers. in the other subdivisions of this section

17 conferred.

18 (g) For the purchase, gift, or condemnation of private prop-

19 erty for any public use or purpose herein provided for and

20 within the scope of its power. If by condemnation, the provi-

21 sions of Act 149 of the Public Acts of Michigan, approved March

22 twenty-fifth, 1911, entitled "An act to provide for the condemna-

23 tion by state agencies and public corporations of private prop-

24 erty for the use or benefit of the public, and to define the

25 terms 'public corporations', 'state agencies' and 'private

26 property' as used herein" 1911 PA 149, MCL 213.21 TO 213.25, or

27 such other appropriate provisions therefor as exist or shall

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1 be made by law may be adopted , and used for the purpose of

2 instituting and prosecuting such condemnation proceedings.

3 (h) For the initiative and referendum on all matters within

4 the scope of its powers and for the recall of all its officials.

5 (i) For altering, amending, or repealing any charter affect-

6 ing the district.

7 (j) For the enforcement of all such local, police,

8 sanitary, and other regulations as are not in conflict with THE

9 general laws OF THIS STATE.

10 (k) For a system of civil service.

11 (l) For the exercise of all district powers in the manage-

12 ment and control of district property and in the administration

13 of metropolitan district government, whether such THE powers

14 be ARE expressly enumerated or not. ; for FOR any act to

15 advance the interest of the district , AND the good government

16 and prosperity of the district and to pass all laws and ordi-

17 nances relating to its concerns subject to the constitution and

18 general laws of the THIS state. : Provided, That the THE

19 power to acquire a rapid transit system is expressly conferred by

20 this act, which may consist of a tunnel, subway, surface, or ele-

21 vated system, or any combination thereof and said OF THESE. A

22 rapid transit system shall be deemed CONSIDERED to be transpor-

23 tation within the meaning of this act and the provisions hereof

24 relating to other public utilities shall ALSO apply. thereto.

25 (M) A REVENUE BOND ISSUED UNDER THIS ACT IS SUBJECT TO THE

26 REVENUE BOND ACT OF 1933, 1933 PA 94, MCL 141.101 TO 141.140.

27 ALL BONDS ISSUED UNDER THIS ACT, OTHER THAN REVENUE BONDS, ARE

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1 SUBJECT TO THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34,

2 MCL 141.2101 TO 141.2821.

3 Sec. 5. No A district shall have power NOT DO ANY OF

4 THE FOLLOWING:

5 (a) To change CHANGE the salary or emoluments of any

6 public official after his OR HER election or appointment or

7 during his OR HER term of office. ; nor shall the THE term of

8 any public official SHALL NOT be shortened or extended beyond the

9 period for which he OR SHE was elected or appointed, unless he

10 resign or be OR SHE RESIGNS OR IS removed for cause where

11 such IF THE office is held for a fixed term.

12 (b) To adopt ADOPT a charter or any amendment thereto TO

13 A CHARTER unless approved by a majority of the electors of each

14 city, village, or township, voting on such THE charter or

15 amendment. ; to sell

16 (C) SELL any public utility unless approved by a majority

17 vote of the electors of each city, village, or township voting on

18 such THE proposition.

19 (D) (c) To make MAKE any contract with, or give any offi-

20 cial position to, anyone who is in default to the district or

21 city, village, or township comprising same THE DISTRICT.

22 (d) To issue any bonds without providing a sinking fund to

23 pay them at maturity, but no sinking fund shall be required in

24 the case of serial bonds which fall due annually.

25 (e) To repudiate any debt by any change in its charter or by

26 consolidation with any other municipality.

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