HOUSE BILL No. 4953

September 14, 2017, Introduced by Rep. Hornberger and referred to the Committee on Tax Policy.

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 625a, 681, 705, 1613, and 1724a (MCL 380.625a,

380.681, 380.705, 380.1613, and 380.1724a), section 625a as added

by 1994 PA 258, section 681 as amended by 2016 PA 532, section 705

as amended by 2016 PA 192, section 1613 as added by 1982 PA 333,

and section 1724a as amended by 2004 PA 415.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 625a. (1) ~~Except~~ Subject to subsection (2) and except as

provided in section 705, beginning in 1995, the board of an

intermediate school district may levy ad valorem property taxes for

operating purposes at a rate not to exceed 1.5 times the number of

mills allocated to the intermediate school district for those

purposes in 1993 ~~as provided for~~ under the property tax limitation

act, ~~Act No. 62 of the Public Acts of 1933, being sections 211.201~~

~~to 211.217a of the Michigan Compiled Laws.~~1933 PA 62, MCL 211.201

to 211.217a.

(2) Beginning January 1, 2019, the board of an intermediate

school district shall not levy a tax under this section unless the

board of the intermediate school district is popularly elected

under sections 615 to 617.

Sec. 681. (1) An Subject to subsection (11), an intermediate

school district may establish an area career and technical

education program and operate the program under sections 681 to 690

if approved by a majority of the intermediate school electors of

the intermediate school district voting on the question. The

election shall be called and conducted in accordance with this act

and the Michigan election law. The establishment of the area career

and technical education program may be rescinded by the same

process.

(2) The question of establishing an area career and technical

education program may be submitted to the intermediate school

electors of an intermediate school district at a regular school

election or at a special election held in each of the constituent

districts. Subject to section 641 of the Michigan election law, MCL

168.641, the intermediate school board shall determine the date of

the election and shall give notice to the school district filing

official at least 60 days in advance of the date the ballot

question is to be submitted to the intermediate school electors.

(3) The ballot for referring the question of adopting sections

681 to 690 and establishing an area career and technical education

program to the intermediate school electors of an intermediate

school district shall be substantially in the following form:

"Shall ____________ (legal name of intermediate school

district), state of Michigan, come under sections 681 to 690 of the

revised school code and establish an area career and technical

education program which is designed to encourage the operation of

area career and technical education programs if the annual property

tax levied for this purpose is limited to ______ mills?

Yes ( )

No ( )".

(4) Beginning in 1995, and subject to subsection (11) and

section 625b, the number of mills of ad valorem property taxes an

intermediate school board may levy for area career and technical

education program operating purposes under sections 681 to 690 is

limited to the following:

(a) If the intermediate school district did not levy any

millage in 1993 for area career and technical education program

operating purposes under sections 681 to 690, the intermediate

school board, with the approval of the intermediate school

electors, may levy not more than 1 mill for those purposes.

(b) If the intermediate school district levied millage in 1993

for area career and technical education program operating purposes

under sections 681 to 690, the intermediate school board, with the

approval of the intermediate school electors, may levy mills for

those purposes at a rate not to exceed 1.5 times the number of

mills authorized for those purposes in the intermediate school

district in 1993. Approval of the intermediate school electors is

not required for the levy under this subdivision of previously

authorized mills until that authorization expires.

(5) An intermediate school district that levies a tax for area

career and technical education program operating purposes shall not

use proceeds from the tax for any purpose other than area career

and technical education program operating purposes and shall submit

to the department of treasury a copy of the audit report from the

audit of the intermediate school district conducted under section

622a. If the department of treasury determines from the audit

report that the proceeds from the tax have been used for a purpose

other than area career and technical education program operating

purposes, as defined under subsection (7), the department of

treasury shall notify the intermediate school district of that

determination. If the intermediate school district disputes the

determination or claims that the situation has been corrected,

within 15 days after receipt of the determination the intermediate

school district may submit an appeal of the determination to the

department of treasury. Within 90 days after receipt of the appeal,

the department of treasury shall consider the appeal and make a

determination of whether the initial determination was correct or

incorrect and of whether the situation has been corrected. If the

department of treasury finds that the initial determination was

correct and that the situation has not been corrected, then the

department of treasury shall file a copy of the report with the

attorney general. The attorney general shall review the report and,

if the attorney general considers it appropriate, shall commence or

direct the prosecuting attorney for the county in which the

violations occurred to commence appropriate proceedings against the

intermediate school board or the official or employee. These

proceedings shall include at least a civil action in a court of

competent jurisdiction for the recovery of any public money

determined by the audit to have been illegally expended and for the

recovery of any public property determined by the audit to have

been converted or misappropriated.

(6) If the attorney general determines from a report filed

under subsection (5) that an intermediate school district has

misspent tax proceeds as described in subsection (5) and notifies

the intermediate school district of this determination, the

intermediate school district shall repay to its area career and

technical education program operating fund an amount equal to the

amount the department of treasury determined under subsection (5)

has been used for a purpose other than area career and technical

education program operating purposes. The intermediate school

district shall make this repayment from funds of the intermediate

school district that lawfully may be used for making such a

repayment.

(7) For the purposes of subsections (5) and (6), not later

than January 1, 2008, the department and the department of

treasury, in consultation with intermediate school districts, shall

develop and make available to intermediate school districts a

definition of area career and technical education program operating

purposes.

(8) An intermediate school district shall not hold more than 2

elections in a calendar year concerning the authorization of a

millage rate for area career and technical education program

operating purposes under sections 681 to 690.

(9) Within 30 days after receiving the audit results, an

intermediate school district shall publish the results of any audit

conducted concerning the area career and technical education

program on the intermediate school district's website. The results

shall remain posted on the website for at least 6 months.

(10) The state board is the sole agency responsible for the

supervision and administration of career and technical education in

this state with authority to accept federal funding for career and

technical education and with the responsibility to administer the

requirements for career and technical education under federal and

state law.

(11) Beginning January 1, 2019, an intermediate school

district shall not levy a tax under this section unless the board

of the intermediate school district is popularly elected under

sections 615 to 617.

Sec. 705. (1) ~~Beginning~~ Subject to subsection (6), beginning

in 1997, and in each year after 1997, a regional enhancement

property tax may be levied by an intermediate school district at a

rate not to exceed 3 mills to enhance other state and local funding

for local school district operations if approved by a majority of

the intermediate school electors voting on the question.

(2) If a resolution requesting that the question of a regional

enhancement property tax be submitted to the voters is adopted

within a 180-day period and transmitted to the intermediate school

board by 1 or more boards of its constituent districts representing

a majority of the combined membership of the constituent districts

as of the most recent pupil membership count day and if those

resolutions all contain an identical specified number of mills to

be levied under this section and an identical specified number of

years for which the tax shall be levied, the question of levying a

regional enhancement property tax by the intermediate school

district shall be placed on the ballot by the intermediate school

district at the next regular school election held in each of the

constituent districts. If the question is to be submitted to the

intermediate school electors of an intermediate school district

having a population of more than 1,400,000, the intermediate school

board shall call a special election to be held at the next state

primary or general election. If the resolution requirement is met

more than 180 days before the next regular school district

elections, and if requested in the resolutions, the intermediate

school board shall submit the question of levying a regional

enhancement property tax within the intermediate school district on

the ballot at a special election called by the intermediate school

board for that purpose not earlier than 90 days after the

resolution requirements are met.

(3) Not later than 10 days after receipt by the intermediate

school district of the revenue from the regional enhancement

property tax, the intermediate school district shall calculate and

pay to each of its constituent districts an amount of the revenue

calculated by dividing the total amount of the revenue by the

combined membership of the constituent districts within the

intermediate school district, as of the most recent pupil

membership count day, and multiplying that quotient by the

constituent district's membership, as of the most recent pupil

membership count day for which a final department-audited pupil

count is available. If a constituent district has entered into an

agreement with another school district or public entity to perform

the functions and responsibilities of the constituent district for

operating a public school of the constituent district, then for the

purposes of this subsection the pupils in membership in that public

school shall be considered to be in membership in the constituent

district and a proportionate share of the revenue payable to the

constituent district under this section shall be transferred by the

constituent district to the school district or public entity

performing the functions and responsibilities of the constituent

district for operating the public school. The proportionate share

of that revenue to be paid to that school district or public entity

shall be determined according to the percentage of the constituent

district's membership that is enrolled in the particular public

school for the state fiscal year corresponding to the tax year.

Revenue from a regional enhancement property tax under this section

shall not be allocated or paid to a constituent district that does

not operate a public school directly but retains a limited separate

identity for purposes of section 12, 12b, 863, 903, or 947.

(4) Regional enhancement property tax under this section may

be levied for a term not to exceed 20 years, as specified in the

ballot question, and may be renewed for the same term with the

approval of a majority of the intermediate school electors voting

on the question.

(5) The question of levying a regional enhancement property

tax under this section shall be presented to the intermediate

school electors as a separate question.

(6) Beginning January 1, 2019, an intermediate school district

shall not levy a regional enhancement property tax under this

section unless the board of the intermediate school district is

popularly elected under sections 615 to 617.

Sec. 1613. (1) By Subject to subsection (14), by adoption of a

resolution of its board before February 1, 1983, or before January

1 in any year thereafter, a school district or intermediate school

district may determine to impose a summer property tax levy, which

resolution by its terms may be applicable until revoked by the

board of the school district or intermediate school district or for

levies in any year specified therein. For each year such a

resolution applies the school district or intermediate school

district that has adopted the resolution shall request, before

February 1, 1983 or before January 1 in any year thereafter, each

city and township in which it is located to agree to collect the

summer levy in that year of either the total or 1/2, as specified

in the resolution, of the school property taxes. Notice of the

meeting of the respective school district board or intermediate

school district board at which this resolution will be offered for

adoption shall be published by the district, not less than 6 days

before holding the meeting, in a newspaper of general circulation

in the school district or intermediate school district. This notice

shall specify the time, date, and place of the public meeting,

shall be not less than 8 vertical inches and 4 horizontal inches,

shall be in not less than 12-point type, shall be preceded by a

headline in not less than 18-point type stating "Notice of a public

meeting to institute a summer property tax levy", shall contain a

concise statement of the contents and purpose of the proposed

resolution, and shall not be placed in that portion of the

newspaper reserved for legal notices and classified advertisements.

Upon receipt of the request, the governing body of the city or

township shall negotiate the reasonable expenses for collection of

the school district's or intermediate school district's summer

property tax levy that the city or township may bill under section

1611 or 1612. If a city or township and the school district or

intermediate school district reach an agreement within 30 days of

receipt of the district's request for the collection of the

district's summer property tax levy, including an agreement to the

amount of reasonable expenses that the city or township may bill

under section 1611 or 1612, section 1611 shall govern the other

terms of a city's agreement and section 1612 shall govern the other

terms of a township's agreement.

(2) If a city or township and the school district or

intermediate school district fail to reach an agreement pursuant to

subsection (1) for the collection of the summer property tax levy

of a school district or intermediate school district subject to

subsection (3), the school district or intermediate school district

then may negotiate, until April 1, a proposed agreement with the

county treasurer to collect its summer property tax levy against

property located in that city or township. If a proposed agreement

with the county treasurer has not been reached by April 1, the

school district or intermediate school district may determine to

serve as the property tax collecting unit and collect its own

summer property tax levy against property in that city or township.

(3) If, pursuant to subsection (2), the school district or

intermediate school district has determined to collect its own

summer property tax levy or has reached a proposed agreement with a

county treasurer on the collection of its summer property tax levy

against property located in a city or township with which an

agreement to collect this levy could not be made pursuant to

subsection (1), the school district shall notify by April 15 that

city or township of the terms of the statement required by

subsection (4)(b) and the city or township shall have 15 days in

which to exercise an option to collect the school district's or

intermediate school district's summer property tax levy pursuant to

the terms of section 1611 or 1612.

(4) Collection of all or part of a school district's or

intermediate school district's property tax levy by a county

treasurer or by the school district or intermediate school district

shall comply with all of the following:

(a) Collection shall be either 1/2 or the total of the

property tax levy against the properties, as specified for that

year in the resolution of the district.

(b) The actual cost of the collection which the school

district or intermediate school district has agreed to incur itself

or to pay the county treasurer that is in addition to any fees

imposed pursuant to subdivision (g), and the aggregate amount of

costs of collection the district has agreed to incur or the county

treasurer may receive from district payments and from fees and

charges imposed pursuant to subdivision (g) shall be stated in

writing and reported to the state treasurer.

collecting its own summer property tax levy, the treasurer of the

school district or intermediate school district shall spread the

taxes being collected in terms of millages on the assessment roll,

assess the amount of tax levied in proportion to the state

equalized valuation, and prepare a tax roll which commands the

appropriate treasurer to collect on July 1 the taxes indicated as

due on the tax roll.

(d) Taxes authorized to be collected shall become a lien

against the property on which assessed, and due from the owner of

that property, on July 1.

(e) Taxes shall be collected on or before September 14 and all

taxes and interest imposed pursuant to subdivision (f) unpaid

before March 1 shall be returned as delinquent on March 1. Taxes

delinquent under this subdivision shall be collected pursuant to

~~Act No. 206 of the Public Acts of 1893, as amended.~~the general

property tax act, 1893 PA 206, MCL 211.1 to 211.155.

(f) Interest shall be added to taxes collected after September

14 at that rate imposed by section 59 of ~~Act No. 206 of the Public~~

~~Acts of 1893, being section 211.59 of the Michigan Compiled Laws,~~

the general property tax act, 1893 PA 206, MCL 211.59, on

delinquent property tax levies which became a lien in the same

year.

(g) All or a portion of fees or charges, or both, authorized

under section 44 of ~~Act No. 206 of the Public Acts of 1893, being~~

~~section 211.44 of the Michigan Compiled Laws,~~ the general property

tax act, 1893 PA 206, MCL 211.44, may be imposed on taxes paid

before March 1 and shall be retained by the treasurer actually

performing the collection of the summer property tax levy of the

school district or intermediate school district, regardless of

whether all or part of these fees or charges, or both, have been

waived by the township or city.

(5) An agreement for the collection of a summer property tax

levy of a school district or intermediate school district with a

county treasurer shall include a schedule for delivering

collections to the school district or intermediate school district.

(6) To the extent applicable and consistent with the

requirements of this section, the provisions of ~~Act No. 206 of the~~

~~Public Acts of 1893,~~ the general property tax act, 1893 PA 206, MCL

211.1 to 211.155, shall apply to proceedings in relation to the

assessment, spreading, and collection of taxes pursuant to this

section. Additionally, in relation to the assessment, spreading,

and collection of taxes pursuant to this section, the county

treasurer or, if the district is collecting its own summer property

tax levy, the treasurer of the school district or intermediate

school district shall have powers and duties similar to those

prescribed by ~~Act No. 206 of the Public Acts of 1893,~~ the general

property tax act, MCL 211.1 to 211.155, 1893 PA 206, for township

supervisors, township clerks, and township treasurers. However,

this section shall not be considered to transfer any authority over

the assessment of property.

(7) If a county treasurer or the treasurer of a school

district or intermediate school district collects the summer

property tax levy of the district, the township or city shall

deliver by June 1 a certified copy of the assessment roll

containing state equalized valuations for each parcel of taxable

property in the township or city to the treasurer collecting the

summer property tax levy of the school district or intermediate

school district. The county treasurer or the treasurer of a school

district or intermediate school district receiving this certified

copy of the assessment roll shall remit the necessary cost incident

to the reproduction of the assessment roll to the township or city.

(8) A county treasurer or treasurer of a school district or

intermediate school district collecting taxes pursuant to this

section shall be bonded for tax collection in the same amount and

in the same manner as a township treasurer would be for undertaking

the duties prescribed by this section.

(9) An agreement for the collection of a summer property tax

levy between a school district or intermediate school district and

a county may cover summer collections for 2 years. If an agreement

covers summer collections for 2 years, the resolution, ~~and~~ request,

~~required by subsection (1), the~~ and notice required by subsection

~~(2),~~ (1), and the option to reconsider provided by subsection (3)

shall not apply for summer collections in the second year.

(10) If collections are made pursuant to this section by a

county treasurer or by the treasurer of a school district or

intermediate school district, all payments from a school district

or intermediate school district for collecting its summer property

tax levy and all revenues generated from collection fees shall be

deposited, when received or collected, in a current school tax

collection fund, which fund shall be used by the county treasurer

or treasurer of the school district or intermediate school district

to pay for the cost of collecting the district's summer property

tax levy. The current school tax collection fund shall be

segregated from all other funds and once the current school tax

collection fund has been established money shall not be withdrawn

except upon an order, check, or draft of the collecting treasurer

for the purpose of paying 1 or more of the following costs:

(a) The cost of special deputy treasurers and equipment

directly involved in the collection of current property taxes.

(b) The cost of all services determined necessary by the

collecting treasurer to collect the summer property tax levy of the

school district or intermediate school district.

employed by the collecting treasurer to assist in the collection of

the current property taxes.

(11) All surplus money in a current school tax collection fund

shall be invested by the collecting treasurer in any investment

authorized by ~~Act No. 20 of the Public Acts of 1943, being sections~~

~~129.91 to 129.93 of the Michigan Compiled Laws.~~ 1943 PA 20, MCL

129.91 to 129.93. The county treasurer and the treasurer of a

school district or intermediate school district shall publish, on

March 1 of the year after the treasurer first collects the summer

property tax levy of a school district or intermediate school

district and each year thereafter, an annual report on the status

of the fund for the last year ending December 31. The report shall

show the total charges, expenses, and year-end surplus.

(12) Money in the current school tax collection fund shall not

be transferred to the general fund of the county, school district,

or intermediate school district or made the subject of

appropriation by the county, school district, or intermediate

school district. Any surplus in a current school tax collection

fund shall be used by the county treasurer, school district

treasurer, or intermediate school district treasurer to reduce the

following costs for the next summer property tax levy of a school

district or intermediate school district that is collected by the

county treasurer, school district treasurer, or intermediate school

district treasurer:

(a) The costs of collection, in excess of fees and charges,

incurred or paid pursuant to subsection (4)(b).

(b) The fees and charges imposed pursuant to subsection

(4)(g).

(13) A city treasurer, township treasurer, county treasurer,

school district treasurer, or intermediate school district

treasurer that collects pursuant to this section, section 1611, or

section 1612 the summer property tax levy of a school district or

intermediate school district against property eligible for a

deferral of summer property taxes under section 51 ~~of Act No. 206~~

~~of the Public Acts of 1893, being section 211.51 of the Michigan~~

~~Compiled Laws,~~ the general property tax act, 1893 PA 206, MCL

211.51, and, if not otherwise eligible for deferral thereunder,

against property classified as agricultural real property if the

gross receipts of the agricultural or horticultural operations in

the previous year or the average gross receipts of such operations

in the previous 3 years are not less than the household income of

the owner in the previous year shall defer the collection of these

summer property taxes without penalty or interest until the

following February 15 upon a filing by the taxpayer of an intent to

defer with the property tax collecting treasurer in the same manner

as provided by section 51 of ~~Act No. 206 of the Public Acts of~~

~~1893.~~ the general property tax act, 1893 PA 206, MCL 211.51. The

treasurer of a city, township, school district, intermediate school

district, or county who collects the summer property tax levy of a

school district or intermediate school district also shall comply

with the publication and assistance requirements of section 51 of

~~Act No. 206 of the Public Acts of 1893,~~ the general property tax

act, 1893 PA 206, MCL 211.51, with respect to property eligible for

a deferral under this subsection.

(14) Beginning January 1, 2019, an intermediate school

district shall not impose a summer property tax levy under this

section unless the board of the intermediate school district is

popularly elected under sections 615 to 617.

Sec. 1724a. (1) Beginning in 1995, and subject to subsection

(6) and section 625b, the board of an intermediate school district

may levy ad valorem property taxes for special education purposes

under sections 1722 to 1729 at a rate not to exceed 1.75 times the

number of mills of those taxes authorized in the intermediate

school district in 1993. All or part of the millage levied under

this section may be renewed as provided in this article. Approval

of the intermediate school electors is not required for the levy

under this section of previously authorized mills until that

authorization expires.

(2) An intermediate school district that levies a tax for

special education operating purposes shall not use proceeds from

the tax for any purpose other than special education operating

purposes and shall submit to the department of treasury a copy of

the audit report from the audit of the intermediate school district

conducted under section 622a. If the department of treasury

determines from the audit report that the proceeds from the tax

have been used for a purpose other than special education operating

purposes, as defined under subsection (4), the department of