HOUSE BILL No. 6043


     September 28, 2000, Introduced by Reps. Gosselin, Vear, Ehardt, Bradstreet and Bishop and referred to the Committee on
Local Government and Urban Policy.


        A bill to amend 1909 PA 279, entitled

   "The home rule city act,"

   by amending section 5 (MCL 117.5), as amended by 1988 PA 268.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 5.  A city does not have power:

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           (a) To increase the rate of taxation now fixed by law,

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      unless the authority to do so is given by a majority of the elec-

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      tors of the city voting at the election at which the proposition

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      is submitted, but the increase in any case shall not  be such as

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      to  cause the rate to exceed 2%, except as provided by law, of

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      the assessed value of the real and personal property in the

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      city.

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           (b) To submit to the electors a charter more often than once

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      in every 2 years, nor unless the charter is filed with the city

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      clerk 60 days before the election, but this provision  shall 


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      DOES not apply to the submission and resubmission of charters of

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      cities  which  THAT may be incorporated under this act until they

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       shall  have first adopted a charter.  Where  IF a city
   submits

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      to the electors a charter and the charter is adopted by the elec-

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      tors, and the city has operated under the charter, which charter

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      has not, at the time it is adopted, been on file with the city

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      clerk 60 days, then the legislative body of the city,  upon its 

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      AFTER giving the notice of election as provided in the charter,

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      may resubmit THE CHARTER to the electors, at a special or general

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      election.  , the charter, which, if  IF THE CHARTER IS THEN

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      adopted by the electors, IT shall be considered operative and

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      effective as of the date of the first submission and adoption.

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      The charter shall not be resubmitted unless 60 days have elapsed

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      between the date of the filing of the charter and the date of the

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      election at which the charter is resubmitted.

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           (c) To call more than 2 special elections within 1 year.

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      This prohibition does not apply to elections  which may be  THAT

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      ARE held in the submission and resubmission of charters of cities

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       which  THAT may be incorporated under this act until they have

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      first adopted a charter, and does not apply to elections  which

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      may be  THAT ARE held in the resubmission of a charter once

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      adopted as provided in subdivision (b).

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           (d) To decrease the salary of a municipal judge after his or

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      her election or appointment, or during the judge's term of

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      office, notwithstanding any charter provision to the contrary.  ;

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      nor shall the  THE term of a public official WHOSE OFFICE IS HELD

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      FOR A FIXED TERM SHALL NOT be shortened or extended beyond the



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      period for which the official is elected or appointed, unless he

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      or she resigns or is removed for cause.  , where the office is

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      held for a fixed term. 

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           (e) To adopt a charter or an amendment to the charter unless

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      approved by a majority of the electors voting  thereon  ON THE

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      ADOPTION; to sell a park, cemetery, or any part of a park or cem-

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      etery, except  where  IF the park is not required under an offi-

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      cial master plan of the city; to engage in a business enterprise

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      requiring an investment of money in excess of 10 cents per

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      capita; or to authorize an issue of bonds except bonds issued in

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      anticipation of the collection of taxes actually levied and

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      uncollected or for which an appropriation has been made; bonds

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       which  THAT the city is authorized by its charter to issue as

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      part of its budget system, to an amount  which  THAT in any year,

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      together with the taxes levied for the same year, will not exceed

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      the limit of taxation authorized by law; special assessment

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      bonds; bonds for the city's portion of local improvements;

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      refunding bonds; emergency bonds;  as defined by this act;  and

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      bonds  which  THAT the legislative body is authorized by specific

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      statute to issue without vote of the electors, unless approved by

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      a majority of the electors voting  thereon  ON THE ISSUANCE at a

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      general or special election.  In addition to the foregoing, a

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      city which now has, or which may hereafter have,  A CITY THAT HAS

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      a population of 750,000 persons or more may issue bonds, upon A

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      resolution of its governing body, without prior approval of the

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      electors,  which  THAT the city is authorized by its charter to

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      issue as part of its budget system, to an amount  which  THAT in



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      any year, together with the ad valorem taxes levied for the same

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      year, exclusive of debt service taxes or taxes levied pursuant to

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      other laws, will not exceed 2-1/2% of the assessed value of the

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      real and personal property in the city.  , this  THIS limitation

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       to supersede and take  SUPERSEDES AND TAKES the place of any

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      contrary language in any existing city charter.  For the pur-

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      poses of this subdivision only, the assessed value of real and

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      personal property in any such city shall include the assessed

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      value equivalent of money received during the city's fiscal year

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      from the department of treasury pursuant to sections 134, and

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      136(1), (2), and (3) of Act No. 228 of the Public Acts of 1975,

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      being sections 208.134 and 208.136 of the Michigan Compiled

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      Laws.  The assessed value equivalent shall be calculated by

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      dividing the money received by the city's millage rate for the

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      fiscal year.  Notwithstanding the former provisions of this sub-

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      division requiring approval by 3/5 of the electors voting thereon

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      as a prerequisite to the exercise of certain powers, these  THESE

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      powers may be exercised if approved by a majority of the electors

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      voting thereon at a general or special election held on or after

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      April 1, 1966.

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           (f) To make a contract with, or give an official position

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      to,  one  A PERSON who is in default to the city.

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           (g) To issue bonds without providing a sinking fund to pay

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      them at maturity, except as provided in section 4g(1),  but 

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      EXCEPT THAT sinking funds  shall not be  ARE NOT required in the

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      case of serial bonds  which  THAT fall due annually.  Bonds,

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      whether authorized under this act or any other act, except



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      refunding bonds, revenue bonds, motor vehicle highway fund bonds,

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      rehabilitation bonds, judgment bonds, bonds or other obligations

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      issued to fund an operating deficit of a city, bonds or other

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      obligations to pay premiums or to establish funds to self-insure

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      for losses as authorized by the municipal finance act,  Act

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      No. 202 of the Public Acts of 1943, being sections 131.1 to 139.3

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      of the Michigan Compiled Laws  1943 PA 202, MCL 131.1 TO 139.3,

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      bonds the issuance of which has been approved by the voters, and

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      bonds issued to comply with an order of a court of competent

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      jurisdiction shall not be issued by a city unless notice of the

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      issuance of the bonds is published once in a newspaper of general

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      circulation in the city at least 45 days before the issuance of

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      the bonds.  , within which period a petition may be  IF, WITHIN

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      THAT 45-DAY PERIOD, A PETITION IS filed with the legislative body

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      THAT IS signed by not less than 10% or 15,000 of the registered

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      electors in the city, whichever is less,  in which event  the

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      legislative body shall submit the question of the issuance of the

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      bonds to the electors of the city  ,  at a regular or special

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      election in the city.  The bonds shall not be issued unless a

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      majority vote of the electors voting on the issuance vote in

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      favor of issuing the bonds.  The notice of intent to issue bonds

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      shall state the maximum amount of the bond issue, the purpose of

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      the bond issuance, THE source of payment, THE right of referendum

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      on the issuance of the bonds, and other information  as  THAT the

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      legislative body OF THE CITY determines to be necessary to ade-

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      quately inform the electors and all other interested persons of

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      the nature of the issue and of their rights with respect to the



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      issue.  If a notice of intent has been published before July 31,

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      1973  ,  in substantial compliance with this section, and the

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      referendum period formerly provided by this section has expired

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       ,  but the bonds have not been issued, the notice and the publi-

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      cation of the notice are  hereby validated  VALID and, if no

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      petition for a referendum on issuance of the bonds has been or is

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      signed and filed within the time period formerly provided by this

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      section, the bonds may be issued without submitting the proposi-

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      tion for approval to the electors, or if a petition has been or

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      is so signed and filed, the bonds may be issued if approved at an

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      election as provided in this subdivision.

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           (h) To repudiate a debt by a change in its charter or by

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      consolidation with any other municipality.

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           (i) To submit a franchise to the electors at a special elec-

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      tion, unless the expense of holding the election, as determined

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      by the legislative body, is paid in advance to the city treasurer

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      by the grantee in the franchise.

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           (J) TO ADOPT AN ORDINANCE OR REGULATION THAT INTERVENES IN

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      THE AFFAIRS OF INDIVIDUALS, FAMILIES, BUSINESSES, OR TAXPAYERS

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      WITHOUT THE APPROVAL OF 2/3 OF THE MEMBERS ELECTED TO AND SERVING

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      IN THE LEGISLATIVE BODY OF THE CITY.















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