HOUSE BILL NO. 6438

November 12, 2020, Introduced by Reps. Coleman and Steven Johnson and referred to the Committee on Government Operations.

"An act to provide for the creation of community swimming pool authorities; to provide powers and duties of the authorities; to provide for the levy of a tax by the authorities; and to provide for the collection and distribution of the tax,"

by amending sections 7 and 17 (MCL 123.1067 and 123.1077).

the people of the state of michigan enact:

Sec. 7. (1) A board shall draft articles of incorporation and bylaws for the administration of the authority.

(2) An authority's articles shall must state the following:

(a) The name of the authority.

(b) The name of each participating municipality.

(d) The purposes for which the authority is formed.

(e) The powers, duties, and limitations of the authority and its board.

(f) Any other matters that the board considers advisable.

(3) The articles of an authority shall must be adopted and may be amended by an affirmative vote of a majority of the members serving on the board.

(4) Before January 1, 2022, before the articles or amendments to the articles are adopted, the articles or amendments to the articles shall must be published at least once in a newspaper generally circulated within the participating municipalities. Beginning January 1, 2022, before the articles or amendments to the articles are adopted, public notice of the articles or amendments to the articles must be posted as set forth in the local government public notice act.

(5) The adoption of articles or amendments to the articles by the board shall must be evidenced by an endorsement on the articles or amendments by the secretary of the board in a form substantially as follows:

"These articles of incorporation (or amendments to the articles of incorporation) were adopted by an affirmative vote of a majority of the members serving on the board of the __________ community swimming pool authority at a meeting duly held on the _____ day of ________, A.D., _____.".

(6) Upon adoption of the articles or amendments to the articles by the board, a printed copy of the articles or the amended articles shall must be filed with the secretary of the district, the clerk of each participating municipality, and the secretary of state.

(7) An authority is established when its articles of incorporation are adopted by the board and are filed with the secretary of state.

(8) The geographical boundaries of an authority are coterminous with the geographical boundaries of the district within each participating municipality and become fixed when the authority is established. After an authority is established, its geographical boundaries shall must not automatically change as a result of a change in a district's geographical boundaries. After an authority is established, its geographical boundaries may only be altered by a majority vote of the board.

Sec. 17. (1) A participating municipality in which the tax authorized by section 13 is in effect may withdraw from an authority if all of the following requirements are satisfied:

(a) Not less than 2 months before the next regularly scheduled election of the municipality, the legislative body of the municipality adopts a resolution to withdraw from the authority on a date specified in the resolution. The date specified shall must be not less than 6 months after the next regularly scheduled election of the municipality.

(b) Notice Before January 1, 2022, notice of an election on the resolution is published in a newspaper of general circulation in the municipality not less than 10 days before the next regularly scheduled election of the municipality following adoption of the resolution, and, beginning January 1, 2022, notice of an election is posted as set forth in the local government public notice act not less than 10 days before the next regularly scheduled election of the municipality following adoption of the resolution.

(c) The resolution is approved by a majority of the electors of the municipality that reside within the district voting on the resolution at the next regularly scheduled election of the municipality following adoption of the resolution.

(d) After approval of the resolution by the electors, the clerk of the municipality files with the secretary of state a copy of the official canvass statement and a certified copy of the resolution and files with the board a copy of the official canvass statement and a number of certified copies of the resolution sufficient for distribution to the legislative body of each of the participating municipalities.

(e) Payment or the provision for payment to the authority or its creditors of all obligations of the municipality seeking to withdraw is made.

(2) A tax authorized by section 13 before the adoption of the resolution to withdraw shall must be levied in the municipality for its original purpose but only for the period of time originally authorized and only so long as the board continues in existence. In addition, a municipality that withdraws from an authority shall continue to receive community swimming pool services so long as the tax authorized to be levied by section 13 before the withdrawal of the municipality continues to be levied in the municipality and the community swimming pool remains in operation.

(3) A participating municipality in which no tax authorized by section 13 is in effect may withdraw from an authority if all of the following requirements are satisfied:

(a) The legislative body of the municipality adopts a resolution to withdraw from the authority on a date specified in the resolution. The withdrawal date shall must follow the date of the resolution by not less than 1 year.

(b) The clerk of the municipality files with the secretary of state a certified copy of the resolution and files with the board a number of certified copies of the resolution sufficient for distribution to the legislative bodies of each of the participating municipalities.

(c) Payment or the provision for payment to the authority or its creditors of all obligations of the municipality seeking to withdraw is made.

(4) After the withdrawal of a municipality, the articles of incorporation shall must be amended to reflect the withdrawal.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.6440 (request no. 02449'19) of the 100th Legislature is enacted into law.