April 13, 2005, Introduced by Senators TOY, PATTERSON, ALLEN, JOHNSON, KUIPERS, BIRKHOLZ, McMANUS, STAMAS, SIKKEMA, HAMMERSTROM, BISHOP, CASSIS, SANBORN and VAN WOERKOM and referred to the Committee on Local, Urban and State Affairs.
A bill to provide for the oversight of the operation of
certain water and sewer systems within this state; to create an
authority; and to provide for the powers and duties of certain
governmental officials and entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Authority" means an authority created under this act.
(b) "City" means a city chartered under the home rule city
act, 1909 PA 279, MCL 117.1 to 117.38.
(c) "Local unit of government" means a city, village, or
township.
(d) "Qualified city" means a city that owns or operates a
water or sewer system.
(e) "Qualified county" means a county with a population of
400,000 or more that is served by the water or sewer system.
(f) "Township" means a township chartered under the charter
township act, 1947 PA 359, MCL 42.1 to 42.34.
(g) "Village" means a village incorporated under the home rule
village act, 1909 PA 278, MCL 78.1 to 78.28.
(h) "Water or sewer system" or "system" means a water supply
facility or sewerage services facility, or both, that provides
water or sewerage service to more than 20% of the population of
this state.
Sec. 2. (1) A city that owns or operates a water or sewer
system shall establish an authority to provide oversight and
control of the system as provided under this act.
(2) Not more than 30 days after the effective date of this
act, each qualified county and qualified city, or not more than 30
days after the date a county or city becomes a qualified county or
qualified city, shall make appointments to the authority as
provided under this section.
(3) One person shall be appointed to represent each qualified
county that does not have the qualified city located within the
county. The appointment under this subsection shall be made by the
county board of commissioners.
(4) Three persons shall be appointed to represent the
qualified city. The appointment under this subsection shall be made
by the mayor of the city, with the advice and consent of the city's
governing body.
(5) If a qualified county has the qualified city within the
county, 1 person who does not live or work within the qualified
city shall be appointed to represent the county. The appointment
under this subsection shall be made by the majority vote of the
chief elected officials of the 5 largest local units of government
within the county.
(6) A person appointed under this section shall serve for a
term of 4 years or until a successor is appointed, whichever is
later. A successor to a member shall be appointed in the same
manner and shall serve for a term of 4 years or until a successor
is appointed, whichever is later. A person may be reappointed to
the authority. A person appointed to the authority may be replaced
by the appointing entity at any time.
Sec. 3. (1) A majority of the persons appointed to the
authority constitute a quorum for the transaction of business.
(2) The person appointed to the authority shall have 1 vote.
(3) The first meeting of the authority shall be held not more
than 45 days after the effective date of this act, or not more than
45 days after the date a county or city becomes a qualified county
or qualified city.
(4) The authority shall elect a chairperson and other officers
as the authority considers necessary. The authority shall adopt
bylaws and rules to govern the operation of the authority.
(5) After its first meeting, the authority shall meet not less
than quarterly and at such other times as determined by the
authority.
Sec. 4. (1) Persons appointed to the authority are public
servants under 1968 PA 317, MCL 15.321 to 15.330, and are subject
to any other applicable law with respect to conflicts of interest.
(2) An authority shall establish policies and procedures
requiring periodic disclosure by persons appointed to the authority
of relationships which may give rise to conflicts of interest.
Sec. 5. (1) An authority shall establish an ethics manual
governing the conducting of system business and the conduct of
employees of the system.
(2) An authority shall establish policies under this section
that are no less stringent than those provided for public officers
and employees by 1973 PA 196, MCL 15.341 to 15.348.
Sec. 6. (1) Except as otherwise provided by this act, the
authority shall have the jurisdiction and authority over the water
or sewer system.
(2) The rates for water and sewer service shall be just and
reasonable.
(3) Notice to customers of a rate alteration is required for
any rate alteration and shall be included in or on the bill of each
affected customer of the system before the effective date of the
rate alteration.
(4) The notice required under subsection (3) shall contain at
least all of the following information:
(a) A statement that the customer's rate may change.
(b) An estimate of the amount of the annual change for the
typical customer that would result by the rate change.
(c) A statement that a customer may comment on or receive
complete details of the rate alteration by calling or writing the
authority. Complete details of the rate alteration shall be
provided free of charge to the customer at the expense of the
system.
(5) A system shall be allowed only 1 rate increase during any
12-month period.
Sec. 7. An authority created under this act is subject to the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.