HB-6430, As Passed Senate, December 18, 2018
October 4, 2018, Introduced by Reps. Miller and Lower and referred to the Committee on Energy Policy.
A bill to amend 1909 PA 279, entitled
"The home rule city act,"
by amending section 4f (MCL 117.4f), as amended by 2000 PA 156.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4f. Each city may in its charter provide for any of the
following:
(a) For the purchase or condemnation of franchises, if any
exist, and of the property used in the operation of companies or
individuals engaged in the road, cemetery, hospital, almshouse,
electric light, gas, heat, water, and power business, and in cities
having more than 25,000 inhabitants, for the purchase of the
franchise, if any exist, and the property of street railway and
tram railway companies. A city may in its charter allow for a
contract, upon the terms, including terms of present or deferred
payment, and upon the conditions and in the manner as the city
considers proper, to purchase, operate, and maintain any existing
public utility property for supplying water, heat, light, power, or
transportation to the city and the city's inhabitants. The contract
does not bind the city unless the proposition for the contract
receives the affirmative vote of 3/5 of the electors voting at a
regular or special election. For the purchase of a transportation
utility, the charter amendment and the contract to purchase may
provide
for a sinking fund, into which shall must be paid, from the
earnings of the utility, sums sufficient to purchase the utility
and perform the obligations of the contract. Within a reasonable
time after the acquisition of a public transportation utility, a
system of civil service for the selection and retention of its
employees
shall must be established. If a vote is taken to amend a
city charter to allow an acquisition under this subdivision, a vote
may also be taken at the same election to approve a particular
contract. The vote upon the charter amendment and upon the purchase
contract
shall must be by separate ballots. If a transportation
utility is acquired under this subdivision, state taxes and local
taxes on any portion of the property lying outside of the city
limits
shall must be paid as if privately owned. The powers under
this subdivision are in addition to any other powers provided for
under this section.
(b) For owning, constructing, and operating transportation
facilities within the city limits, and its adjacent and adjoining
suburbs within a distance of 10 miles from any portion of the city
limits.
(c) For the purchase and condemnation of private property for
any public use or purpose within the scope of its powers; for the
acquirement, ownership, establishment, construction, and operation,
either within or outside its corporate limits, of public utilities
for supplying water, light, heat, power, and transportation to the
city and the city's inhabitants, for domestic, commercial, and
municipal purposes; for the sale of heat, power, and light outside
its corporate limits in an amount as determined by the governing
body of the utility supplying the heat, power, or light except that
electric delivery service is limited to the area of any village or
township that was contiguous to the city as of June 20, 1974, and
to the area of any other village or township being served as of
June 20, 1974 and retail sales of electric generation service are
limited to the area of any city, village, or township that was
contiguous to the city, village, or township as of June 20, 1974,
and to the area of any other city, village, or township being
served
as of June 20, 1974; unless the municipal utility is in
compliance
with section 10y(4) of 1939 PA 3, MCL 460.10y; for the
sale and delivery of water outside of its corporate limits in the
amount as may be determined by the legislative body of the city;
and for the operation of transportation lines outside the city and
within 10 miles from its corporate limits. A city shall not render
electric
delivery service for heat, power, or light to customers
outside
its corporate limits already to
a customer that is
currently receiving or within the previous 3 years has received
that service from another utility unless that utility consents in
House Bill No. 6430 as amended December 11, 2018
writing. ,
and shall not render retail electric generation service
to
customers outside its corporate limits receiving that service
from
another supplier except in compliance with section 10y of 1939
PA
3, MCL 460.10y. The acquirement of
a utility together with all
properties, franchises, and rights necessary for its establishment,
ownership, construction, operation, improvement, extension, and
maintenance, whether the properties, franchises, and rights are
situated within or outside the corporate limits of the city, may be
either by purchase or condemnation. If the acquirement is by
condemnation, 1911 PA 149, MCL 213.21 to 213.25, may be used for
instituting and prosecuting the condemnation proceedings. A public
utility is not acquired unless the proposition to do so first
receives the affirmative vote of 3/5 of the electors of the city
voting
at a regular or special municipal election. For purposes of
As used in this subdivision:
(i) "Customer" means [only] the building or facilities served rather
than the individual, association, partnership, corporation,
governmental body, or any other entity taking service.
(ii) (i) "Electric
delivery service" has the same meaning as
"delivery service" under section 10y of 1939 PA 3, MCL 460.10y.
(iii) (ii) "Electric
generation service" means the sale of
electric power and related ancillary services.
(d) For the acquiring, establishment, operation, extension,
and maintenance of sewage disposal systems, sewers, and plants,
either within or outside the corporate limits of the city, as a
utility, including the right to acquire necessary property by
purchase, gift, or condemnation, and including the fixing and
collecting of charges exclusively for service covering the cost of
the service. This subdivision allows a return on the fair value of
the property devoted to the service, excluding the valuations of
the portions of the system that were paid for by special
assessment, which may be made as a lien upon the property served
and if not paid when due, collected in the same manner as other
city taxes.