SENATE BILL No. 940

January 26, 2000, Introduced by Senators VAN REGENMORTER and HOFFMAN and

referred to the Committee on Technology and Energy.

A bill to amend 1951 PA 35, entitled

"An act to authorize intergovernmental contracts between munici-

pal corporations; to authorize any municipal corporation to con-

tract with any person or any municipal corporation to furnish any

lawful municipal service to property outside the corporate limits

of the first municipal corporation for a consideration; to pre-

scribe certain penalties; to authorize contracts between munici-

pal corporations and with certain nonprofit public transportation

corporations to form group self-insurance pools; and to prescribe

conditions for the performance of those contracts,"

by amending section 3 (MCL 124.3).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 3. (1) A municipal corporation shall have the right

2 to MAY contract FOR ADEQUATE CONSIDERATION with a person or a

3 ANOTHER municipal corporation to furnish to property outside the

4 MUNICIPAL corporate limits of the first municipal corporation

5 for an adequate consideration, any lawful municipal service

6 which THAT it is furnishing to property within its THE

7 MUNICIPAL corporate limits. A municipal corporation may sell and

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1 deliver heat, power, and light at wholesale or other than

2 wholesale outside its corporate limits in such amount as may be

3 IN AMOUNTS AS determined by the governing body of the utility,

4 except that sales at other than wholesale shall be FOR BOTH OF

5 THE FOLLOWING:

6 (A) ELECTRIC DELIVERY SERVICE IS limited to the area of any

7 city, village, or township which is THAT WAS contiguous

8 thereto as of the date of this act, TO THE MUNICIPAL CORPORA-

9 TION AS OF JUNE 20, 1974, and to the area of any other city, vil-

10 lage, or township being served BY THE MUNICIPAL UTILITY as of

11 the date of this act. However, a JUNE 20, 1974.

12 (B) RETAIL SALES OF ELECTRIC GENERATION SERVICE ARE LIMITED

13 TO THE AREA OF ANY CITY, VILLAGE, OR TOWNSHIP THAT WAS CONTIGUOUS

14 TO THE MUNICIPAL CORPORATION AS OF JUNE 20, 1974, AND TO THE AREA

15 OF ANY OTHER CITY, VILLAGE, OR TOWNSHIP BEING SERVED BY THE

16 MUNICIPAL UTILITY AS OF JUNE 20, 1974, UNLESS THE MUNICIPAL COR-

17 PORATION IS IN COMPLIANCE WITH SECTION 10U(4) OF 1939 PA 3, MCL

18 460.10U.

19 (2) A municipal corporation shall not render ELECTRIC DELIV-

20 ERY SERVICE FOR heat, power, or light to customers outside its

21 corporate limits already receiving such THE service from

22 another utility unless the serving utility consents in writing.

23 For the purposes of this section, "person" shall mean any

24 person, firm, corporation, the United States government, or the

25 state or any of its subdivisions. For the purposes of this sec-

26 tion, "wholesale" shall mean the sale or exchange of heat, power

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1 or light between public utility systems, whether municipally,

2 cooperatively or privately owned.

3 (3) AS USED IN THIS SECTION:

4 (A) "ELECTRIC DELIVERY SERVICE" HAS THE SAME MEANING AS

5 "DELIVERY SERVICE" UNDER SECTION 10U OF 1939 PA 3, MCL 460.10U.

6 (B) "ELECTRIC GENERATION SERVICE" HAS THE SAME MEANING AS

7 "ELECTRIC GENERATION SERVICE" UNDER SECTION 10Z OF 1939 PA 3, MCL

8 460.10Z.

9 (C) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION,

10 GOVERNMENTAL ENTITY, OR OTHER LEGAL ENTITY.

11 Enacting section 1. This amendatory act does not take

12 effect unless Senate Bill No.937

13 of the 90th Legislature is enacted into

14 law.

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