SB-0590, As Passed Senate, December 13, 2017
September 27, 2017, Introduced by Senators STAMAS, SHIRKEY and BRANDENBURG and referred to the Committee on Finance.
A bill to amend 1947 PA 359, entitled
"The charter township act,"
by amending section 14a (MCL 42.14a), as amended by 2002 PA 230.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14a. (1) The township may borrow money and issue bonds on
the credit of the township for the purpose of constructing or
otherwise acquiring a public improvement that the township is
authorized to construct or otherwise acquire by law.
(2)
Bonds shall must not be issued, except special assessment
bonds, bonds for the township portion of local improvements, and
bonds that the township board is authorized by specific statute to
issue without vote of the electors, unless approved by a majority
of the electors voting on the bonds at a general or special
election.
(3) The net indebtedness of the township incurred for all
public
purposes shall must not exceed 10% of the assessed value of
all real and personal property in the township. In computing the
net
indebtedness, all of the following shall must be
deducted:
(a) Bonds issued in anticipation of the collection of special
assessments, even though they are general obligations of the
township.
(b) Revenue bonds, even though they are general obligations of
the township.
(c) Bonds issued to comply with an order of the former water
resources commission, the department of environmental quality, or a
court of competent jurisdiction, even though they are a general
obligation of the township.
(d) Bonds issued, or contract or assessment obligations
incurred, for water supply, sewerage, drainage, solid waste
disposal, and steam generation and distribution necessary to
protect the public health by abating pollution, even though they
are a general obligation of the township.
(e) Bonds issued or contract or assessment obligations
incurred for the construction, improvement, or replacement of a
combined sewer overflow abatement facility. As used in this
subdivision:
(i) "Combined sewer overflow" means a discharge from a
combined sewer system that occurs when the flow capacity of the
combined sewer system is exceeded.
(ii) "Combined sewer overflow abatement facility" means any
works, instrumentalities, or equipment necessary or appropriate to
abate combined sewer overflows.
(iii) "Combined sewer system" means a sewer designed and used
to
convey both storm water runoff and sanitary sewage, and which
that contains lawfully installed regulators and control devices
that allow for delivery of sanitary flow to treatment during dry
weather periods and divert storm water and sanitary sewage to
surface waters during storm flow periods.
(iv) "Construction" means any action taken in the designing or
building of a combined sewer overflow abatement facility.
Construction includes, but is not limited to, all of the following:
(A) Engineering services.
(B) Legal services.
(C) Financial services.
(D) Design of plans and specifications.
(E) Acquisition of land or structural components, or both.
(F) Building, erection, alteration, remodeling, or extension
of a combined sewer overflow abatement facility.
(G) Township supervision of the project activities described
in sub-subparagraphs (A) to (F).
(v) "Improvement" means any action taken to expand,
rehabilitate, or restore a combined sewer overflow abatement
facility.
(vi) "Replacement" means any action taken to obtain and
install equipment, accessories, or appurtenances during the useful
life of a combined sewer overflow abatement facility necessary to
maintain the capacity and performance for which the equipment,
accessories, or appurtenances are designed and constructed.
(4) The resources of the sinking fund or debt retirement fund
pledged
for retirement of outstanding bonds shall must also be
deducted from the amount of the indebtedness.
(5) Bonds are issued subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(6) In computing the net indebtedness for the purposes of
subsection (3), there may be added to the assessed value of real
and personal property in a township for a fiscal year an amount
equal to the assessed value equivalent of certain township revenues
as determined under this subsection. The assessed value equivalent
must be calculated by dividing the sum of the following amounts by
the township's millage rate for the fiscal year:
(a) The amount paid or the estimated amount required to be
paid by the state to the township during the township's fiscal year
for the township's use under the Glenn Steil state revenue sharing
act of 1971, 1971 PA 140, MCL 141.901 to 141.921, and the amount of
any eligible reimbursement to the township under the local
community stabilization authority act, 2014 PA 86, MCL 123.1341 to
123.1362, except any amount distributed under section 17(4)(c) of
the local community stabilization authority act, 2014 PA 86, MCL
123.1357, in excess of the township's qualified loss. The
department of treasury shall certify these amounts upon request. As
used in this subdivision, "qualified loss" means that term as
defined in section 5 of the local community stabilization authority
act, 2014 PA 86, MCL 123.1345.
(b) The amount levied by the township for its own use during
the township's fiscal year from the specific tax levied under 1974
PA 198, MCL 207.551 to 207.572.
(c) The amount levied by the township for its own use during
the township's fiscal year from the specific tax levied under the
commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.