HB-5076, As Passed House, November 28, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 5076
A bill to amend 1968 PA 2, entitled
"Uniform budgeting and accounting act,"
by amending sections 16 and 18 (MCL 141.436 and 141.438), as
amended by 2000 PA 493.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 16. (1) Unless another method for adopting a budget is
provided by a charter provision in effect on April 1, 1980, the
legislative body of each local unit shall pass a general
appropriations act for all funds except trust or agency, internal
service, enterprise, debt service or capital project funds for
which the legislative body may pass a special appropriation act.
(2) The general appropriations act shall set forth the total
number of mills of ad valorem property taxes to be levied and the
purposes for which that millage is to be levied. The amendatory act
that added this subsection shall be known and may be cited as "the
truth in budgeting act".
(3) The general appropriations act shall set forth the amounts
appropriated by the legislative body to defray the expenditures and
meet the liabilities of the local unit for the ensuing fiscal year,
and shall set forth a statement of estimated revenues, by source,
in each fund for the ensuing fiscal year.
(4) The general appropriations act shall be consistent with
uniform charts of accounts prescribed by the state treasurer or,
for local school districts and intermediate school districts, by
the state board of education.
(5) This act shall not be interpreted to mandate the
development or adoption by a local unit of a line-item budget or
line-item general appropriations act.
(6) The legislative body shall determine the amount of money
to be raised by taxation necessary to defray the expenditures and
meet the liabilities of the local unit for the ensuing fiscal year,
shall order that money to be raised by taxation, within statutory
and charter limitations, and shall cause the money raised by
taxation to be paid into the funds of the local unit.
(7) Except as otherwise permitted by section 102 of the state
school aid act of 1979, 1979 PA 94, MCL 388.1702, or by other law,
the legislative body shall not adopt a general appropriations act
or an amendment to that act which causes estimated total
expenditures, including an accrued deficit, to exceed total
House Bill No. 5076 (H-3) as amended November 28, 2012
estimated revenues, including an available surplus and the proceeds
from bonds or other obligations issued under the fiscal
stabilization act, 1981 PA 80, MCL 141.1001 to 141.1011, or the
balance of the principal of these bonds or other obligations.
(8) A general appropriations act, including any amendment to
that general appropriations act, is presumed to fund those
activities of a county mandated by law at a serviceable level.
(9) Except as otherwise provided in this subsection, the chief
administrative officer of a county has exclusive standing to bring
suit against the legislative body of that county concerning a
general appropriations act, including any challenge as to
serviceable levels of funding for any department or branch of that
county, including a department or branch headed by another elected
or appointed official. [The Chief Judge of a] court funded by a county
has standing to
bring a suit on the court's own behalf against the legislative body
of that county concerning a general appropriations act, including
any challenge as to serviceable levels of funding for that court.
[If a court and the legislative body of a county are involved in
mediation, before the chief judge of that] court brings a suit on the court's own behalf against the
legislative body of [THE] county under this subsection, a mediator
shall certify in writing that the parties are unable to resolve the
issues by mediation. The court hearing a suit shall consider the
financial ability of the county to pay when considering any
challenge as to serviceable levels of funding.
(10) If any portion of this section or the application of this
section to any circumstance is found to be invalid by a court, the
invalidity shall not affect the remaining portions or application
of this section that can be given effect without the invalid
portion or application. The provisions of this section are
severable.
Sec. 18. (1) A member of the legislative body, chief
administrative officer, administrative officer, or employee of the
local unit shall not create a debt or incur a financial obligation
on behalf of the local unit unless the debt or obligation is
permitted by law.
(2) The chief administrative officer may cause the
appropriations made by the legislative body for the local unit and
its budgetary centers to be divided into allotments if the
allotments are based upon the periodic requirements of the local
unit and its budgetary centers.
(3) Except as otherwise provided in section 19, an
administrative officer of the local unit shall not incur
expenditures against an appropriation account in excess of the
amount appropriated by the legislative body. The chief
administrative officer, an administrative officer, or an employee
of the local unit shall not apply or divert money of the local unit
for purposes inconsistent with those specified in the
appropriations of the legislative body.
(4) No duties shall be delegated to the chief administrative
officer that diminish any charter or statutory responsibilities of
an elected or appointed official.
(5) The administration, execution, and enforcement of a
general appropriations act approved by the legislative body of a
county are powers exclusively vested in the chief administrative
officer of that county.
House Bill No. 5076 (H-3) as amended November 28, 2012
(6) Except as otherwise provided in this subsection, the
legislative body of a county has exclusive standing to bring suit
against the chief administrative officer of that county concerning
an action relating to the administration, execution, and
enforcement of a general appropriations act for any department or
branch of that county, including a department or branch headed by
another elected or appointed official. [the chief judge of a] court
funded by a county
has standing to bring suit on the court's own behalf against the
chief administrative officer of that county concerning an action
relating to the administration, execution, and enforcement of a
general appropriations act for that court. [if a court and the chief
administrative officer of a county are involved in mediation, before the chief judge of that] court brings a
suit on the court's own behalf against the chief administrative
officer of [The] county under this subsection, a mediator shall certify
in writing that the parties are unable to resolve the issues by
mediation.
(7) [except as otherwise provided in subsection (8) and
notwithstanding] any provision of law to the contrary, any
suit brought under subsection (6) or section 16(9) shall only be
brought in the Michigan court of appeals within 60 days after 1 of
the following:
(a) The adoption of a general appropriations act.
(b) An amendment to a general appropriations act or an action
relating to the administration, execution, and enforcement of that
general appropriations act, if the amendment or action constitutes
a basis for the suit.
[(8) If a court is involved in mediation under subsection (6) or section 16(9) during the 60-day period to bring a suit in the Michigan court of appeals provided for in subsection (7), any suit brought on the court's behalf under subsection (6) or section 16(9) shall only be brought in the Michigan court of appeals within 90 days after 1 of the following:
(a) The adoption of a general appropriations act.
(b) An amendment to a general appropriations act or an action relating to the administration, execution, and enforcement of that general appropriations act, if the amendment or action constitutes a basis for the suit.
(9)] The court's jurisdiction over and review of the issues
raised in a suit brought under subsection (7)(b) [or (8)(B)] is limited
to that
portion of the general appropriations act that is directly affected
House Bill No. 5076 (H-3) as amended November 28, 2012
by the amendment or action.
[(10)] The jurisdiction of the court of appeals over a suit
brought under subsection (6) or section 16(9) is exclusive and that
jurisdiction or any judicial duties inherent in that jurisdiction
shall not be transferred to any other court. However, the court of
appeals may request the supreme court to assign a retired judge
under section 226 of the revised judicature act of 1961, 1961 PA
236, MCL 600.226, to assist the court of appeals by resolving
discovery issues, reviewing the evidence, making proposed findings
of fact and conclusions of law, and performing any other necessary
related judicial duties.
[(11)] Unless an action brought under subsection (7) [or (8)] is
timely
preserved for review by the Michigan court of appeals, litigation
of any issue as to a general appropriations act or any amendment to
that general appropriations act, or an action relating to the
administration, execution, and enforcement of that general
appropriations act, is barred.
[(12)] The pendency of a claim in a suit under this section
shall not constitute a basis for expenditure of funds by any
department or branch of, or court funded by, the county in excess
of that authorized by a general appropriations act, including an
amendment to that general appropriations act.
[(13)] If any portion of this section or the application of this
section to any circumstance is found to be invalid by a court, the
invalidity shall not affect the remaining portions or application
of this section that can be given effect without the invalid
portion or application. The provisions of this section are
severable.