HOUSE BILL No. 5400

 

November 2, 2005, Introduced by Reps. Wenke, Murphy, Jones, Stahl, Newell and Sheltrown and referred to the Committee on Higher Education and Career Preparation.

 

     A bill to amend 1966 PA 331, entitled

 

"Community college act of 1966,"

 

by amending section 144 (MCL 389.144), as amended by 2003 PA 306,

 

and by adding chapter 6 to part 1.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                              CHAPTER 6

 

               REORGANIZED COMMUNITY COLLEGE DISTRICTS

 

     Sec. 91. (1) Before January 1, 2011, a community college

 

district established under chapter 1, 2, or 3 shall reorganize to

 

form a reorganized community college district under this chapter if

 

all of the following are met:

 

     (a) The reorganization will result in the expansion of the

 

existing boundaries of the community college district.

 

     (b) A petition is submitted to the board of trustees of the


 

community college district requesting the board of trustees to

 

adopt a resolution described in subdivision (c) to establish a

 

reorganized community college district composed of the existing

 

community college district and a specified additional geographic

 

area or areas. The petition shall be signed by a number of

 

registered electors residing in the specified additional geographic

 

area or areas that is at least equal to the number of signatures

 

required under chapter 12 to nominate a candidate for the board of

 

trustees of a community college district.

 

     (c) The board of trustees of the community college district

 

adopts a resolution to establish a reorganized community college

 

district composed of the existing community college district and

 

the specified additional geographic area or areas.

 

     (d) The board of trustees of the community college district

 

submits the resolution described in subdivision (c) to the state

 

board of education and obtains the approval of the state board of

 

education for the reorganization.

 

     (e) The reorganization is approved by a majority of the

 

electors residing in the proposed reorganized community college

 

district and voting on the question.

 

     (2) The resolution described in subsection (1)(c) shall

 

include at least all of the following:

 

     (a) Identification of the boundaries of the proposed

 

reorganized community college district.

 

     (b) Identification of any bonded indebtedness for which taxes

 

are levied without limitation as to rate or amount that is to be

 

assumed by the proposed reorganized community college district.


 

     (c) The proposed maximum annual tax rate to be authorized

 

under section 95(1).

 

     (d) The manner in which the proposed reorganized community

 

college district will ensure access to college services throughout

 

the geographic area of the proposed reorganized community college

 

district.

 

     (4) The boundaries of the proposed reorganized community

 

college district shall include the area within the existing

 

community college district and any area contiguous to the existing

 

community college district, or a county that is not contiguous but

 

contains a federal military installation at which classes have been

 

continuously offered for at least 20 years by the community college

 

that existed before the reorganization, that is identified in the

 

resolution. If practicable and to the extent possible, the

 

boundaries of the proposed reorganized community college district

 

shall conform to county, school district, or intermediate school

 

district boundaries. However, the boundaries of the proposed

 

reorganized community college district shall not include any

 

territory that is included within another existing community

 

college district.

 

     (5) For purposes of this chapter, a community college district

 

established by petition under chapter 4 is considered established

 

under the chapter under which the proceedings for establishing the

 

district were held.

 

     Sec. 92. (1) If the state board of education approves of the

 

reorganization of a community college district under section

 

91(1)(d), the board of trustees of that community college district


 

shall notify the school district filing official of each of the

 

units of local government in which a portion of the proposed

 

reorganized community college district is located and each of the

 

school district filing officials shall include the proposition of

 

approving the reorganization on the ballot at 1 of the following

 

elections:

 

     (a) If approval of a proposed reorganized community college

 

district is filed with a school district filing official at least

 

77 days but not more than 6 months before the next general state

 

election, the school district filing official shall include the

 

necessary community college propositions with the proceedings for

 

the general election.

 

     (b) If approval of a proposed reorganized community college

 

district is filed with a school district filing official more than

 

6 months before the next general state election, the school

 

district filing official shall call a special election for the

 

purpose of submitting to the electors the propositions relating to

 

the establishment of the reorganized community college district to

 

be held on the next regular election day that is not less than 77

 

days after the approval is filed. If the propositions are submitted

 

to the electors at a special election under this subdivision, the

 

community college district shall pay the incremental cost of that

 

special election.

 

     (2) Only the electors of the proposed reorganized community

 

college district are eligible to vote on a proposition described in

 

subsection (1) and in a board of trustees election under section

 

93(3).


 

     (3) The proposition presented to the electors of the proposed

 

reorganized community college district shall read substantially as

 

follows:

 

     "Shall the _______________ community college district,

 

comprised of ___________ [school district or districts/county or

 

counties/intermediate school district or districts] as of (date),

 

be reorganized as a community college district subject to the

 

provisions of chapter 6 of part 1 of 1966 PA 331 to be comprised of

 

all or a portion of _________ [county or counties/school district

 

or districts/intermediate school district or districts], and shall

 

the maximum annual tax rate for the reorganized community college

 

district be _____ mills ($________________) per $1,000.00 of state

 

equalized valuation) for the year _____ and thereafter, to be used

 

for all purposes authorized by law?"

 

     Sec. 93. (1) A reorganized community college district

 

established under this chapter shall be directed and governed by a

 

board of trustees consisting of 7 members, elected at large in the

 

reorganized community college district on a nonpartisan basis.

 

     (2) Except as provided in subsection (3), upon approval of the

 

reorganization proposition submitted pursuant to section 92, the

 

board of trustees of the community college district before

 

reorganization shall serve for the remainder of their terms as the

 

board of trustees of the reorganized community college district

 

established under this chapter. At the expiration of a member's

 

term of office, the member's successor shall be elected for a term

 

of 6 years by the electors of the reorganized community college

 

district. Unless the resolution adopted pursuant to section 91


 

specifies the date on which the term of each new board member shall

 

end and the date on which the term of a board member elected after

 

the reorganization commences, the terms of office of members

 

elected to the board of trustees of a reorganized community college

 

district under this subsection shall end and commence on the same

 

date as the terms of office of the members of the board of trustees

 

of the community college district before reorganization.

 

     (3) If authorized by the resolution adopted pursuant to

 

section 91, the election held to approve the reorganization of the

 

community college district may include the election of the first

 

board of trustees of the reorganized community college district. Of

 

the members elected pursuant to this subsection, 3 shall be elected

 

for 6-year terms, 2 shall be elected for 4-year terms, and 2 shall

 

be elected for 2-year terms. Thereafter, at the next regular

 

community college election immediately preceding the expiration of

 

a member's term of office, the member's successor shall be elected

 

for a term of 6 years. The resolution adopted pursuant to section

 

91 shall specify the date on which the term of each new board

 

member shall commence, and the members of the board of trustees of

 

the community college district before reorganization shall serve

 

until that date.

 

     Sec. 94. An election held under this chapter shall be

 

conducted in the same manner and at the same times as an election

 

held under chapter 1, 2, or 3 and is governed by the provisions

 

relating to an election held under chapter 1, 2, or 3 and the terms

 

of the resolution adopted pursuant to section 91.

 

     Sec. 95. (1) The board of trustees of a reorganized community


 

college district established under this chapter may levy for

 

authorized purposes ad valorem property taxes at a rate authorized

 

by the resolution adopted pursuant to section 91 and approved by

 

the adoption of the proposition submitted pursuant to section 92.

 

     (2) In addition to the tax authorized to be levied by

 

subsection (1), the board of a reorganized community college

 

district established under this chapter may levy for authorized

 

purposes mills allocated to the community college district in

 

accordance with the property tax limitation act, 1933 PA 62, MCL

 

211.201 to 211.217a. The rate of tax levied under this subsection

 

plus the rate of tax authorized under subsection (1) shall not

 

exceed 5 mills.

 

     (3) Taxes imposed pursuant to this section shall be levied

 

against all property subject to ad valorem property taxes within

 

the reorganized community college district.

 

     (4) The rate of tax authorized to be imposed by this section

 

may be increased to the maximum rate authorized by section 144 if

 

approved by a majority of the qualified electors of the reorganized

 

community college district voting on the question.

 

     Sec. 96. (1) All indebtedness of the community college

 

district before reorganization, except voted bonded indebtedness

 

for which taxes are levied without limitation as to rate or amount,

 

are assumed by the reorganized community college district

 

established under this chapter upon approval of the proposition

 

under section 92.

 

     (2) The identity of the community college district as it

 

existed before reorganization shall remain as a separate assessing


 

unit for purposes of voted bonded indebtedness for which taxes are

 

levied without limitation as to rate or amount until that

 

indebtedness has been retired. The board and officers of the

 

reorganized community college district established under this

 

section shall constitute the board and officers of the community

 

college district as it existed before reorganization for purposes

 

of certifying and ordering the levy of taxes for the voted bonded

 

indebtedness in the name of the community college district as it

 

existed before reorganization. The debt retirement funds for voted

 

bonded indebtedness that are not assumed shall not be commingled

 

with the debt retirement funds of the reorganized community college

 

district. The board of trustees of the reorganized community

 

college district shall perform all duties required by law and the

 

original terms of issue and sale relative to the voted bonded

 

indebtedness.

 

     Sec. 97. (1) A reorganized community college district

 

established under this chapter shall be considered the successor to

 

the community college district that adopted the resolution under

 

section 91. Any state appropriation to the community college

 

district before reorganization shall be distributed to its

 

successor reorganized community college district.

 

     (2) Except as otherwise provided in section 96, all assets,

 

property, rights, obligations, collective bargaining agreements,

 

and duties of a community college district that adopted a

 

resolution to reorganize under this chapter are the assets,

 

property, rights, obligations, collective bargaining agreements,

 

and duties of the successor reorganized community college district


 

upon approval of the resolution by the electors pursuant to section

 

92.

 

     (3) All employees of a community college district that adopted

 

a resolution to reorganize under this chapter shall become

 

employees of the successor reorganized community college district

 

in their same positions and shall retain any annual leave, sick

 

leave, seniority, longevity, or other benefit accumulated before

 

reorganization. This subsection does not limit the right of a

 

community college district to terminate, discipline, or take any

 

other action related to an employee consistent with law and any

 

applicable collective bargaining agreement.

 

     (4) A collective bargaining representative, as described in

 

section 11 of 1947 PA 336, MCL 423.211, of a group of employees of

 

a community college district before reorganization as of the date

 

the resolution is approved by the electors under section 92 shall

 

continue to be the representative of the group of employees after

 

they become employees of the successor reorganized community

 

college district. However, this subsection does not limit the right

 

of employees to assert under section 12 of 1947 PA 336, MCL

 

423.212, that a collective bargaining representative protected by

 

this subsection is no longer their representative.

 

     Sec. 98. (1) Upon approval by the state board of education,

 

the board of trustees of a reorganized community college district

 

established under this chapter may annex to the community college

 

district by resolution a contiguous county; contiguous intermediate

 

school district; contiguous school district; the remaining portion

 

of a contiguous county, intermediate school district, or school


 

district that has territory within the reorganized community

 

college district; or a county that is not contiguous but contains a

 

federal military installation at which classes have been

 

continuously offered for at least 20 years by the reorganized

 

community college or the community college that existed before the

 

reorganization. However, if any portion of an area to be annexed

 

lies within another community college district at the time of the

 

annexation election, that part of the territory to be annexed shall

 

not become part of the community college district and electors

 

residing in that part of the territory are not eligible to vote on

 

the annexation proposition.

 

     (2) The procedure for annexation and the effect of approval of

 

an annexation shall be the same as provided under section 21 for a

 

community college district comprised of a county or counties.

 

     Sec. 144. (1)  The  Except as provided in section 95 for a

 

reorganized community college district, the board of trustees of

 

each community college district may levy for the purposes specified

 

as within the power of the board a tax that does not exceed the

 

rate previously or subsequently authorized by the qualified

 

electors of the district or the rate derived through the previous

 

adoption by the electors of the district of former 1955 PA 188, or

 

the rate that is allocated to the community college district in

 

accordance with the property tax limitation act, 1933 PA 62, MCL

 

211.201 to 211.217a. The funds may be used for all purposes

 

authorized.  , except that to  To the extent permitted under the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821, taxes imposed for the payment of principal and interest


 

on bonds or other evidences of indebtedness or for the payment of

 

assessments or contract obligations in anticipation of which bonds

 

are issued may be imposed without limitation as to rate or amount.

 

This limitation and the limitation imposed under section 95 may be

 

increased to not more than 5 mills if approved by a majority of the

 

qualified electors voting on the question at a regular or special

 

election of the community college district.

 

     (2)  Except as provided in subsection (3), the  The board of

 

trustees shall determine the total taxes required for any year and

 

shall certify the approved tax rate to be levied and the amount of

 

taxes to be raised to the proper assessing officer of each city and

 

township in which the territory of the community college district

 

is situated on or before September 1 of each year.  , except that 

 

However, the board of trustees may provide by resolution that taxes

 

to be raised against property within any city or township, any

 

portion of which lies within the community college district

 

boundaries, may be levied and collected in the same manner and at

 

the same time as the city or township taxes or in the same manner

 

and at the same time as school district or intermediate school

 

district taxes are being collected by the city or township under

 

part 26 of the revised school code, 1976 PA 451, MCL 380.1611 to

 

380.1615.

 

     (3) By resolution of its board on or before May 15 of the year

 

in which it is established, a community college district

 

established under this act between January 1 and May 1 of any

 

calendar year may impose a summer property tax levy of either the

 

total or 1/2 of the community college district property taxes for


 

that tax year. The board resolution shall also determine the total

 

taxes required for that tax year and certify the approved tax rate

 

to be levied and the amount of taxes to be raised to the proper

 

assessing officer of each city or township in which the territory

 

of the community college district is situated. Upon receipt of that

 

board resolution, each city and township in which the community

 

college district is situated that collects a summer property tax

 

levy under section 1613 of the revised school code, 1976 PA 451,

 

MCL 380.1613, shall collect the summer levy for that year. The

 

reasonable and actual expenses incurred by a city or township in

 

collecting the community college district property taxes under this

 

subsection, to the extent these expenses are in addition to the

 

expense of collecting and assessing any other taxes at the same

 

time and exceed the amount of any fees imposed for the collection

 

of the community college property taxes, shall be billed to and

 

paid by the community college district. For the purposes of this

 

subsection, reasonable and actual expenses shall not exceed the

 

current collection agreements negotiated with the largest

 

intermediate school district within the community college district.

 

This subsection applies until December 31, 1992.

 

     (3)  (4)  All money collected by a tax collecting officer from

 

the tax levied under this section shall be returned to the

 

community college district as provided by section 43 of the general

 

property tax act, 1893 PA 206, MCL 211.43, or to the county

 

treasurer who shall pay the taxes so returned immediately to the

 

community college district.

 

     (4)  (5)  The subjects of taxation for the community college


 

district purposes shall be the same as for state, county, and other

 

school purposes as provided under the general property tax act,

 

1893 PA 206, MCL 211.1 to 211.157.