SENATE BILL No. 1235

 

 

November 28, 2018, Introduced by Senator MACGREGOR and referred to the Committee on Finance.

 

 

 

     A bill to amend 1951 PA 33, entitled

 

"An act to provide police and fire protection for townships and for

certain areas in townships, certain incorporated villages, and

certain cities; to authorize contracting for fire and police

protection; to authorize the purchase of fire and police equipment,

and the maintenance and operation of the equipment; to provide for

defraying the cost of the equipment; to authorize the creation of

special assessment districts and the levying and collecting of

special assessments; to authorize the issuance of special

assessment bonds in anticipation of the collection of special

assessments and the advancement of the amount necessary to pay such

bonds, and to provide for reimbursement for such advances by

reassessment if necessary; to authorize the collection of fees for

certain emergency services in townships and other municipalities;

to authorize the creation of administrative boards and to prescribe

their powers and duties; to provide for the appointment of traffic

officers and to prescribe their powers and duties; and to repeal

acts and parts of acts,"

 

by amending section 1 (MCL 41.801), as amended by 2002 PA 501.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The township board of a township, or the township

 


boards of adjoining townships acting jointly, whether or not the

 

townships are located in the same county, may purchase police and

 

fire motor vehicles, apparatus, equipment, and housing and for that

 

purpose may provide by resolution for the appropriation of general

 

or contingent funds. Before January 1, 1999, the appropriation for

 

fire motor vehicles, apparatus, equipment, and housing in a 1-year

 

period shall must not exceed 10 mills of the assessed valuation of

 

the area in their respective townships for which fire protection is

 

to be furnished. After December 31, 1998, the appropriation for

 

fire motor vehicles, apparatus, equipment, and housing in a 1-year

 

period shall must not exceed 10 mills of the taxable value of the

 

area in their respective townships for which fire protection is to

 

be furnished. Before January 1, 1999, the appropriation for police

 

motor vehicles, apparatus, equipment, and housing in a 1-year

 

period shall must not exceed 10 mills of the assessed valuation of

 

the area in their respective townships for which police protection

 

is to be furnished. After December 31, 1998, the appropriation for

 

police motor vehicles, apparatus, equipment, and housing in a 1-

 

year period shall must not exceed 10 mills of the taxable value of

 

the area in their respective townships for which police protection

 

is to be furnished.

 

     (2) The township board of a township, or the township boards

 

of adjoining townships acting jointly, whether or not the townships

 

are located in the same county, may provide annually by resolution

 

for the appropriation of general or contingent funds for

 

maintenance and operation of police and fire departments.

 

     (3) The township board, or the township boards of adjoining


townships acting jointly, may provide that the sums prescribed

 

money appropriated in subsection (1) for the purchase of police or

 

fire motor vehicles, apparatus, equipment, and housing for that

 

purpose, or the money appropriated in subsection (2) for purchasing

 

and housing equipment, for the maintenance and operation of the

 

equipment, police and fire departments, or both, may be defrayed by

 

special assessment on the lands and premises in the township or

 

townships to be benefited, except, beginning in 2002, lands and

 

premises exempt from the collection of taxes under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, and

 

may issue bonds in anticipation of the collection of these special

 

assessments. The Before January 1, 2019, the question of raising

 

money by special assessment may be submitted to the electors of the

 

township or townships by the township board, or township boards

 

acting jointly, at a general election or special election called

 

for that purpose by the township board or township boards. The

 

question of raising money by special assessment shall must be

 

submitted by the township board, or township boards acting jointly,

 

if in the affected township, or in each of the affected townships,

 

the owners of 10% of the land to be made into a special assessment

 

district petition the township board or boards.

 

     (4) After December 31, 2018, if a township board seeks, or

 

township boards acting jointly seek, to create a special assessment

 

district and impose a special assessment under this section on all

 

lands and premises in a township other than land and premises

 

exempt from the collection of taxes under the general property tax

 

act, 1893 PA 206, MCL 211.1 to 211.155, the question of creating


the special assessment district and imposing the special assessment

 

on the land and premises shall be submitted to the electors of that

 

township by the township board of the township at a general

 

election or special election called for that purpose by the

 

township board, and the special assessment may only be imposed in

 

that township if approved by the electors of the township at that

 

election.

 

     (5) After December 31, 2018, if a township board seeks, or

 

township boards acting jointly seek, to create a special assessment

 

district and impose a special assessment under this section on some

 

but not all lands and premises in a township not exempt from the

 

collection of taxes under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155, the question of imposing the special

 

assessment on that land and premises shall be submitted to the

 

record owners of the land and premises subject to the proposed

 

assessment, and the special assessment may only be imposed if

 

approved by 51% or more of the record owners of the land and

 

premises subject to the proposed special assessment.

 

     (6) If a proposal on the question of imposing, increasing, or

 

renewing a special assessment is submitted to the electors of a

 

township under subsection (4) or to record owners under subsection

 

(5), the question presented must, in addition to any other

 

requirement provided by law, clearly state all of the following:

 

     (a) A statement of the purpose for the special assessment,

 

including whether the special assessment will defray the cost of 1

 

or more of the following:

 

     (i) Purchasing police or fire motor vehicles, apparatus, or


equipment.

 

     (ii) Housing police or fire motor vehicles, apparatus, or

 

equipment.

 

     (iii) Maintaining and operating police or fire departments.

 

     (b) The estimated cost and expenses of the police and fire

 

protection.

 

     (c) The estimated amount of revenue that will be collected in

 

the first year that the special assessment is authorized and

 

imposed.

 

     (d) The rate of the special assessment.

 

     (e) The duration of the special assessment in years.

 

     (f) For a question submitted to record owners under subsection

 

(5), the boundaries of the special assessment district.

 

     (7) (4) If a special assessment district is proposed under

 

subsection (3), (4), or (5), the township board, or township boards

 

acting jointly, shall estimate the cost and expenses of the police

 

and fire motor vehicles, apparatus, equipment, and housing and

 

police and fire protection , and fix a day for a hearing on the

 

estimate and on the question of creating a special assessment

 

district and defraying the expenses of the special assessment

 

district by special assessment on the property to be especially

 

benefited, except, beginning in 2002, property exempt from the

 

collection of taxes under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.157. 211.155. The hearing shall must be a

 

public meeting held in compliance with the open meetings act, 1976

 

PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and

 

place of the meeting shall must be given in the manner required by


the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. In

 

addition, the township board, or township boards acting jointly,

 

shall publish in a newspaper of general circulation in the proposed

 

district a notice stating the time, place, and purpose of the

 

meeting. If there is not a newspaper of general circulation in the

 

proposed district, notices shall must be posted in not less than 3

 

of the most public places in the proposed district. This notice

 

shall must be published or posted not less than 5 days before the

 

hearing. After December 31, 2018, a notice under this subsection

 

also must include the information described in subsection (6). On

 

the day appointed for the hearing, the township board, or township

 

boards acting jointly, shall be in session to hear objections that

 

may be offered against the estimate, and the creation of the

 

special assessment district, and the imposition of the special

 

assessment. Before January 1, 1999, if the township board, or

 

township boards acting jointly, determine to create a special

 

assessment district, they shall determine the boundaries by

 

resolution, determine the amount of the special assessment levy,

 

and direct the supervisor or supervisors to spread the assessment

 

levy on all of the lands and premises in the district that are to

 

be especially benefited by the police and fire protection,

 

according to benefits received, except, beginning in 2002, lands

 

and premises exempt from the collection of taxes under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, to

 

defray the expenses of police and fire protection. After December

 

31, 1998, if the township board, or township boards acting jointly,

 

determine to create a special assessment district and impose a


special assessment under this section, they shall determine the

 

boundaries by resolution, determine the amount of the special

 

assessment levy, and direct the supervisor or supervisors to spread

 

the assessment levy on the taxable value of all of the lands and

 

premises in the district that are to be especially benefited by the

 

police and fire protection, according to benefits received, except,

 

beginning in 2002, lands and premises exempt from the collection of

 

taxes under the general property tax act, 1893 PA 206, MCL 211.1 to

 

211.157, 211.155, to defray the expenses of police and fire

 

protection, subject to any requirement for approval under

 

subsection (4) or (5). The township board, or township boards

 

acting jointly, shall hold a hearing on objections to the

 

distribution of the special assessment levy. district or the

 

special assessment. This hearing shall must be held in the same

 

manner and with the same notice as provided in this section. The

 

township board, or township boards acting jointly, shall annually

 

determine the amount to be assessed in the district for police and

 

fire protection, shall direct the supervisor or supervisors to

 

distribute the special assessment levy, and shall hold a public

 

hearing on the estimated costs and expenses of police and fire

 

protection and on the distribution of the levy. The assessment may

 

be made either in a special assessment roll or in a column provided

 

in the regular tax roll. The assessment shall must be distributed

 

and shall must become due and be collected at the same time as

 

other township taxes are assessed, levied, and collected, and shall

 

must be returned in the same manner for nonpayment. If a township

 

has a July property tax levy, not more than 2 mills of the


assessment may be collected at the same time and in the same manner

 

as the July levy. If the collections received from the special

 

assessment levied to defray the cost or portion intended to be

 

defrayed for police and fire protection are, at any time,

 

insufficient to meet the obligations or expenses incurred for the

 

maintenance and operation of the police and fire departments,

 

police and fire protection, the township board of the township, or

 

township boards acting jointly, may, by resolution, authorize the

 

transfer or loan of sufficient money from the general fund of the

 

township or townships, to the special assessment police and fire

 

department fund. This money shall must be repaid to the general

 

fund of the township or townships out of special assessment funds

 

when collected.

 

     (8) (5) The powers granted by this act with respect to police

 

and fire protection may be exercised with respect to police

 

protection alone, fire protection alone, or police and fire

 

protection in combination.

 

     (9) (6) After December 31, 1998, an ad valorem special

 

assessment levied under this act shall must be levied on the

 

taxable value of the property assessed. After December 31, 2018, if

 

a special assessment is levied under subsection (4), the special

 

assessment must be levied on the taxable value of the property

 

assessed. A special assessment levied under this act must be based

 

on the special benefit provided to the property assessed and may

 

not be based on police and fire protection provided in a prior year

 

to assessed property.

 

     (10) A special assessment imposed under this act must be


levied on all properties within the special assessment district

 

established pursuant to this act other than properties exempt from

 

the collection of taxes under the general property tax act, 1893 PA

 

206, MCL 211.1 TO 211.155.

 

     (11) (7) As used in this section: , "taxable

 

     (a) "Police and fire protection" includes 1 or more of the

 

following:

 

     (i) Purchasing police or fire motor vehicles, apparatus, or

 

equipment.

 

     (ii) Housing police or fire motor vehicles, apparatus, or

 

equipment.

 

     (iii) Maintaining and operating police or fire departments.

 

     (b) "Record owner" means that term as defined in section 1a of

 

1954 PA 188, MCL 41.721a.

 

     (c) "Taxable value" means that value determined under section

 

27a of the general property tax act, 1893 PA 206, MCL 211.27a.

 

     (12) (8) If the levy of an ad valorem special assessment on

 

the property's taxable value is found to be invalid by a court of

 

competent jurisdiction, the levy of the ad valorem special

 

assessment shall must be levied on the property's state equalized

 

value.

 

     (13) (9) Bonds issued under this act are subject to the

 

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

 

141.2821.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2019.