June 25, 2009, Introduced by Senators BARCIA, CROPSEY and PAPPAGEORGE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1955 PA 233, entitled
"An act to provide for the incorporation of certain municipal
authorities to acquire, own, extend, improve, and operate sewage
disposal systems, water supply systems, and solid waste management
systems; to prescribe the rights, powers, and duties thereof; to
authorize contracts between such authorities and public
corporations; to provide for the issuance of bonds to acquire,
construct, extend, or improve the systems; and to prescribe
penalties and provide remedies,"
by amending section 7 (MCL 124.287), as amended by 2002 PA 241.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) The authority and any of its constituent
municipalities or an Indian tribe may enter into a contract or
contracts providing for the acquisition, construction, improvement,
enlargement, extension, operation, and financing of a sewage
disposal system, a water supply system, a solid waste management
system,
or a combination of systems. , which The
contract or
contracts shall provide for the allocation and payment of the share
of the total cost to be borne by each contracting municipality or
Indian tribe in annual installments for a period of not exceeding
40 years. Each contracting municipality may pledge its full faith
and credit for the payment of the obligation in the manner and
times
specified in the contract or contracts.
, in which event each
If a contracting municipality makes such a pledge, it may include
in its annual tax levy an amount sufficient so that the estimated
collections from the tax levy will be sufficient to promptly pay
when due the portion of the obligation falling due before the time
of the following year's tax collection. The contract is not subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821. If the contract or an unlimited tax pledge in support of
the contract has been approved by the electors of a municipality,
the tax may be in addition to any tax that the municipality may
otherwise be authorized to levy and may be imposed without
limitation as to rate or amount but shall not be in excess of the
rate or amount necessary to pay the contractual obligation. If at
the
time of making the annual tax levy
, there are other funds on
hand
earmarked for the payment of the contractual obligation, then
credit for those funds may be taken upon the annual levy for the
payment of the obligation. Other funds may be raised by each
contracting
municipality by the use of any, or all, or any
combination
1 or more of the following additional methods:
(a) The levy of special assessments on property benefited by a
sewage disposal system, water supply system, or a combination of
systems. ,
the The procedures relative to the levying and
collection
of the special assessments to shall
conform as near
nearly as is applicable to charter or statutory provisions for the
levying
and collection, except that a petition shall is not
be
required from property owners.
(b)
The levy and collection of rates or charges to users and
beneficiaries of the service or services furnished by the sewage
disposal system, water supply system, solid waste management
system, or combination of systems.
(c) The exaction of connection charges to be paid by owners of
land directly or indirectly connected with the sewage disposal
system, water supply system, solid waste management system, or
combination of systems.
(d) The receipt of money derived from the imposition of taxes
by
this state, except as to
the extent that the use of the money
for
the this purpose is expressly prohibited by the state
constitution of 1963.
(e) The receipt of other funds that may be validly used for
the
this purpose.
(2) The contract or contracts under subsection (1) may provide
for
any and all matters relating to the acquisition, construction,
operation, and financing of the sewage disposal system, water
supply system, solid waste management system, or combination of
systems as are considered necessary, including authorization to the
authority to issue bonds secured by the full faith and credit
pledges of the contracting municipalities, as authorized by section
9. The contract or contracts may provide for an appropriate remedy
or remedies in case of default.