HB-6021, As Passed House, May 9, 2006
April 27, 2006, Introduced by Reps. Kooiman, Hildenbrand, Steil, Pearce, Green, Sak, Van Regenmorter, LaJoy and Anderson and referred to the Committee on Transportation.
A bill to amend 1986 PA 196, entitled
"Public transportation authority act,"
by amending sections 8 and 18 (MCL 124.458 and 124.468), section 8
as amended by 1998 PA 168.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) Except as otherwise provided in subsection (2), a
political subdivision that is a member of a public authority or the
portion of a city, village, or township, which portion 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), 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 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 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 the
date the public authority is incorporated or until the expiration
of the thirtieth day 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 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 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, Act
No. 116 of the Public Acts of 1954, being sections 168.1
to
168.992 of the Michigan Compiled Laws 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) The
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 shall be
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
the provisions of
subsection (6), the board of the public authority shall determine
on which tax roll, if there be 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, Act
No.
206 of the Public Acts of 1893, being section 211.43 of the
Michigan
Compiled Laws 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 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 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 subsection
shall not apply to a city or township which 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 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 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
Act
No. 206 of the Public Acts of 1893 the
general property tax
act, 1893 PA 206, MCL 211.1 to 211.157.
(e) Interest shall be added to taxes collected after September
14
at that rate imposed by section 59 of
Act No. 206 of the Public
Acts
of 1893, being section 211.59 of the Michigan Compiled Laws
the general property tax act, 1893 PA 206, MCL 211.59, on
delinquent property tax levies which became a lien in the same
year.
(f) All or a portion of fees or charges, or both, authorized
under
section 44 of Act No. 206 of the Public Acts of 1893, being
section
211.44 of the Michigan Compiled Laws 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 provisions of Act No. 206 of the
Public
Acts of 1893 general
property tax act, 1893 PA 206, MCL
211.1 to 211.157, shall apply to proceedings in relation 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 Act
No. 206 of the Public Acts of 1893 the
general property
tax act, 1893 PA 206, MCL 211.1 to 211.157, for township
supervisors, township clerks, and township treasurers. However,
this section shall 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 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 used by the county
treasurer to pay for the cost of collecting the public authority's
July property tax levy.