HB-4146, As Passed Senate, July 16, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 4146                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 2000 PA 321, entitled                                             

                                                                                

    "Recreational authorities act,"                                             

                                                                                

    by amending sections 3, 5, 11, 21, and 23 (MCL 123.1133,                    

                                                                                

    123.1135, 123.1141, 123.1151, and 123.1153), section 21 as                  

                                                                                

    amended by 2002 PA 233.                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  As used in this act:                                               

                                                                                

2       (a) "Articles" means the articles of incorporation of an                    

                                                                                

3   authority.                                                                  

                                                                                

4       (b) "Authority" means a recreational authority established                  

                                                                                

5   under section 5.                                                            

                                                                                

6       (c) "Board" means the board of directors of the authority.                  

                                                                                

7       (d) "District" means a portion of a municipality having                     

                                                                                

8   boundaries coterminous with those of a precinct used for general            

                                                                                

9   elections.                                                                  

                                                                                


    House Bill No. 4146 as amended July 16, 2003                                

1       (e)  (d)  "Electors of the authority" means the qualified and               

                                                                                

2   registered electors of the participating municipalities who                 

                                                                                

3   reside within the territory of the authority.                               

                                                                                

4       (f)  (e)  "Largest county" means, of those counties in which                

                                                                                

5   a participating municipality is located, the county having the              

                                                                                

6   greatest population.                                                        

                                                                                

7       (g)  (f)  "Municipality" means a city, county, village, or                  

                                                                                

8   township.                                                                   

                                                                                

9       (h)  (g)  "Park" means an area of land or water, or both,                   

                                                                                

10  dedicated to 1 or more of the following uses:                               

                                                                                

11                                                                               (i) Recreational purposes, including but not limited to                             

                                                                                

12  landscaped tracts; picnic grounds; playgrounds; athletic fields;            

                                                                                

13  camps; campgrounds; zoological and botanical gardens; living                

                                                                                

14  historical farms; boating, hunting, fishing, and birding areas;             

                                                                                

15  swimming areas; and foot, bicycle, and bridle paths.                        

                                                                                

16      (ii) Open or scenic space.                                                   

                                                                                

17      (iii) Environmental, conservation, nature, or wildlife                       

                                                                                

18  areas.                                                                      

                                                                                

19      (i)  (h)  "Participating municipality" means a municipality                 

                                                                                

20  or district that is named in articles of incorporation or                   

                                                                                

21  proposed articles of incorporation as joining in the original               

                                                                                

22  establishment of an authority, or a municipality or district that           

                                                                                

23  joins an existing authority and is added to the articles of                 

                                                                                

24  incorporation, and that has not withdrawn from the authority.               

        <<(j) "Public historic farm" means a parcel of public land and its buildings that are accessible to the public, and provides, but is not limited to, agricultural and historical programs, farming activities and animal husbandry, community recreation activities and events, programs held in common areas, meeting rooms, and community gardens, and access to surrounding parkland.>>             

25      <<(k)>>  (i)  "Swimming pool" includes equipment, structures,               

                                                                                

26  areas, and enclosures intended for the use of individuals using             

                                                                                

27  or operating a swimming pool, such as equipment, dressing,                  


    House Bill No. 4146 as amended July 16, 2003                                

1   locker, shower, and toilet rooms.                                           

                                                                                

2       <<(l)>>  (j)  "Territory of the authority" means the combined               

                                                                                

3   territory of the participating municipalities that is served by             

                                                                                

4   an authority.                                                               

                                                                                

5       Sec. 5.  (1) Two or more municipalities or districts may                    

                                                                                

6   establish a recreational authority.  A recreational authority is            

                                                                                

7   an authority under section 6 of article IX of the state                     

                                                                                

8   constitution of 1963.                                                       

                                                                                

9       (2) To initiate the establishment of an authority, articles                 

                                                                                

10  of incorporation shall be prepared.  The articles of                        

                                                                                

11  incorporation shall include all of the following:                           

                                                                                

12      (a) The name of the authority.                                              

                                                                                

13      (b) The names of the participating municipalities.                          

                                                                                

14      (c) A description of the territory of the authority.                        

                                                                                

15      (d) The size of the board of the authority, which shall be                  

                                                                                

16  comprised of an odd number of members; the qualifications, method           

                                                                                

17  of selection, and terms of office of board members; and the                 

                                                                                

18  filling of vacancies in the office of board member.  If board               

                                                                                

19  members are elected in at large elections by the qualified and              

                                                                                

20  registered electors of the participating municipalities, voting             

                                                                                

21  collectively, the election of board members shall be conducted              

                                                                                

22  pursuant to the same procedures that govern an election for a tax           

                                                                                

23  under sections 13 to 17.                                                    

                                                                                

24      (e) The purposes for which the authority is established,                    

                                                                                

25  which shall be the acquisition, construction, operation,                    

                                                                                

26  maintenance, or improvement of 1 or more of the following:                  

                                                                                

27                                                                               (i) A public swimming pool.                                                         


    House Bill No. 4146 as amended July 16, 2003                                

1       (ii) A public recreation center.                                             

                                                                                

2       (iii) A public auditorium.                                                   

                                                                                

3       (iv) A public conference center.                                             

                                                                                

4       (v) A public park.                                                          

           <<(vi) A public museum.

    (vii) A public historic farm.>>                                              

5       (f) The procedure and requirements for a municipality or                    

                                                                                

6   district to become a participating municipality in, and for a               

                                                                                

7   participating municipality to withdraw from, an existing                    

                                                                                

8   authority <<or to join in the original formation of an authority>>.  For a municipality or district to become a                                            

9   participating municipality in an existing authority <<or to join in the original formation of an authority>>, a majority                                

10  of the electors of the municipality or district proposed to be              

                                                                                

11  included in the territory of the authority and voting on the                

                                                                                

12  question shall approve a tax that the authority has been                    

                                                                                

13  authorized to levy by a vote of the electors of the authority               

                                                                                

14  under section 11.  A municipality or district shall not withdraw            

                                                                                

15  from an authority during the period for which the authority has             

                                                                                

16  been authorized to levy a tax by the electors of the authority.             

                                                                                

17      (g) Any other matters considered advisable.                                 

                                                                                

18      (3) The articles shall be adopted and may be amended by an                  

                                                                                

19  affirmative vote of a majority of the members serving on the                

                                                                                

20  legislative body of each participating municipality.  If a                  

                                                                                

21  participating municipality is a district, the articles shall be             

                                                                                

22  adopted and may be amended by an affirmative vote of a majority             

                                                                                

23  of the members serving on the legislative body of the entire                

                                                                                

24  municipality. Unless the articles provide otherwise, the                    

                                                                                

25  requirements of this subsection do not apply to an amendment to             

                                                                                

26  the articles to allow a municipality or district to become a                

                                                                                

27  participating municipality in, or to allow a participating                  


                                                                                

1   municipality to withdraw from, an existing authority.                       

                                                                                

2       (4) Before the articles or amendments to the articles are                   

                                                                                

3   adopted, the articles or amendments to the articles shall be                

                                                                                

4   published not less than once in a newspaper generally circulated            

                                                                                

5   within the participating municipalities.  The adoption of                   

                                                                                

6   articles or amendments to the articles by a municipality or                 

                                                                                

7   district shall be evidenced by an endorsement on the articles or            

                                                                                

8   amendments by the clerk of the municipality.                                

                                                                                

9       (5) Upon adoption of the articles or amendments to the                      

                                                                                

10  articles by each of the participating municipalities, a printed             

                                                                                

11  copy of the articles or the amended articles shall be filed with            

                                                                                

12  the secretary of state by the clerk of the last participating               

                                                                                

13  municipality to adopt the articles or amendments.                           

                                                                                

14      (6) The authority's articles of incorporation, or amendments                

                                                                                

15  to the articles, take effect upon filing with the secretary of              

                                                                                

16  state.                                                                      

                                                                                

17      Sec. 11.  (1) An authority may levy a tax of not more than 1                

                                                                                

18  mill for a period of not more than 20 years on all of the taxable           

                                                                                

19  property within the territory of the authority for the purposes             

                                                                                

20  of acquiring, constructing, operating, maintaining, and improving           

                                                                                

21  a public swimming pool, public recreation center, public                    

                                                                                

22  auditorium or conference center, or public park.  The authority             

                                                                                

23  may levy the tax only upon the approval of a majority of the                

                                                                                

24  electors in each of the participating municipalities of the                 

                                                                                

25  authority voting on the tax on November 6, 2001 or, thereafter,             

                                                                                

26  at a statewide general or primary election.  The proposal for a             

                                                                                

27  tax shall be submitted to a vote of the electors of the authority           


                                                                                

1   by resolution of the board.                                                 

                                                                                

2       (2) A ballot proposal for a tax shall state the amount and                  

                                                                                

3   duration of the millage and the purposes for which the millage              

                                                                                

4   may be used.  A proposal for a tax shall not be placed on the               

                                                                                

5   ballot unless the proposal is adopted by a resolution of the                

                                                                                

6   board and certified by the board not later than 60 days before              

                                                                                

7   the election to the county clerk of each county in which all or             

                                                                                

8   part of the territory of the authority is located for inclusion             

                                                                                

9   on the ballot.  The proposal shall be certified for inclusion on            

                                                                                

10  the ballot at the next eligible election, as specified by the               

                                                                                

11  board's resolution.                                                         

                                                                                

12      (3) If a majority of the electors in each of the                            

                                                                                

13  participating municipalities of the authority voting on the                 

                                                                                

14  question of a tax approve the proposal as provided under                    

                                                                                

15  subsection (1), the tax levy is authorized.  Not more than 2                

                                                                                

16  elections may be held in a calendar year on a proposal for a tax            

                                                                                

17  authorized under this act.                                                  

                                                                                

18      Sec. 21.  (1) An authority may borrow money and issue bonds                 

                                                                                

19  or notes to finance the acquisition, construction, and                      

                                                                                

20  improvement of a public swimming pool, a public recreation                  

                                                                                

21  center, a public auditorium, a public conference center, or a               

                                                                                

22  public park, including the acquisition of sites and the                     

                                                                                

23  acquisition and installation of furnishings and equipment for               

                                                                                

24  these purposes.                                                             

                                                                                

25      (2) An authority shall not borrow money or issue bonds or                   

                                                                                

26  notes for a sum that, together with the total outstanding bonded            

                                                                                

27  indebtedness of the authority, exceeds 2 mills of the taxable               


                                                                                

1   value of the taxable property within the district as determined             

                                                                                

2   under section 27a of the general property tax act, 1893 PA 206,             

                                                                                

3   MCL 211.27a.                                                                

                                                                                

4       (3) Bonds or notes issued by an authority are a debt of the                 

                                                                                

5   authority and not of the participating municipalities.                      

                                                                                

6       (4) A tax levied to pay a bond or note obligation by a                      

                                                                                

7   recreational authority under this act shall not exceed 5 years              

                                                                                

8   without the approval of a majority of the electors in each of the           

                                                                                

9   participating municipalities of the authority.                              

                                                                                

10      (5)  (4)  All bonds or notes issued by a recreational                       

                                                                                

11  authority under this act are subject to the revised municipal               

                                                                                

12  finance act, 2001 PA 34, MCL 141.2101 to 141.2821.                          

                                                                                

13      Sec. 23.  (1) An authority may issue general obligation                     

                                                                                

14  unlimited tax bonds upon approval of a majority of the electors             

                                                                                

15  in each of the participating municipalities of the authority                

                                                                                

16  voting on the question of issuing the bonds.  The proposal to               

                                                                                

17  issue general obligation unlimited tax bonds shall be submitted             

                                                                                

18  to a vote of the electors of the authority by resolution of the             

                                                                                

19  board.                                                                      

                                                                                

20      (2) The language of the ballot proposal shall be in                         

                                                                                

21  substantially the following form:                                           

                                                                                

22      "Shall [name of authority], formed by [names of participating               

                                                                                

23  municipalities], borrow the sum of not to exceed __________                 

                                                                                

24  dollars ($__________) and issue its general obligation unlimited            

                                                                                

25  tax bonds for all or a portion of that amount for the purpose of            

                                                                                

26  __________?                                                                 

                                                                                

27      This is expected to result in an increase of _______ in the                 


                                                                                

1   tax levied on property valued at _______ for a period of _______            

                                                                                

2   years.                                                                      

                                                                                

3       Yes [ ] No [ ]".                                                            

                                                                                

4       (3) The election shall be conducted in the manner provided in               

                                                                                

5   sections 11 to 17 for an election for a tax.  Not more than 2               

                                                                                

6   elections on the question of issuing general obligation unlimited           

                                                                                

7   tax bonds may be held in a calendar year.                                   

                                                                                

8       (4) If an authority issues general obligation unlimited tax                 

                                                                                

9   bonds under this section, the board, by resolution, shall                   

                                                                                

10  authorize and levy the taxes necessary to pay the principal of              

                                                                                

11  and interest on the bonds.