Bill Text: MI SB0167 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Villages; home rule; procedure for disincorporation; provide for. Amends title of 1909 PA 278 (MCL 78.1 - 78.28) & adds secs. 27a, 27b, 27c, 27d, 27e, 27f, 27g, 27h, 27i, 27j, 27k, 27l, 27m & 27n.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-02-07 - Referred To Committee On Local Government And Elections [SB0167 Detail]
Download: Michigan-2013-SB0167-Introduced.html
SENATE BILL No. 167
February 7, 2013, Introduced by Senator MEEKHOF and referred to the Committee on Local Government and Elections.
A bill to amend 1909 PA 278, entitled
"The home rule village act,"
(MCL 78.1 to 78.28) by amending the title, as amended by 1998 PA
148, and by adding sections 27a, 27b, 27c, 27d, 27e, 27f, 27g, 27h,
27i, 27j, 27k, 27l, 27m, and 27n.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to provide for the incorporation of villages and for
revising and amending their charters; to provide for the levy and
collection of taxes, borrowing of money, and issuance of bonds and
other evidences of indebtedness; to validate bonds issued and
obligations previously incurred; to provide for the
disincorporation of villages; and to prescribe penalties and
provide remedies.
Sec. 27a. (1) To initiate the disincorporation of a village, a
petition signed by not less than 15% of the registered electors of
the village requesting a vote on the question of whether the
village shall disincorporate shall be filed with the township
clerk.
(2) A petition shall designate the township or townships into
which the village is proposed to be disincorporated. A village
shall be disincorporated into the township or townships in which it
is located, along existing township boundaries.
(3) After the petition is filed with the township clerk, a
petition affecting the village shall not be filed with the state
boundary commission and a petition requesting disincorporation of
the village into a different township shall not be filed under this
act until the disincorporation process provided for by this act has
concluded.
(4) By not more than 14 days after the petition is filed, the
township clerk shall verify the signatures and determine the
sufficiency of the petition. Unless the council proceeds under
sections 27e to 27n, if the clerk determines that the petition is
sufficient, the question of the disincorporation of the village
shall appear on the ballot at the next general or special election
to be held in the village, subject to the Michigan election law,
1954 PA 116, MCL 168.1 to 168.992. The township clerk shall prepare
the ballot language, in substantially the following form:
"Shall incorporation of the village of __________ be vacated?
( ) Yes
( ) No".
(5) The county election commission of the county in which the
greatest number of electors of the village reside shall provide
ballots for the election.
(6) The clerk and election officials of each township into
which the village is proposed to be disincorporated shall conduct
the election on the proposed disincorporation in the village and
the portions of the township outside the boundaries of the village,
respectively.
(7) If the election on the proposed disincorporation is to be
held in conjunction with a general election or a state primary
election immediately before a general election, the notices of
close of registration and election shall be published as provided
for by the state election laws. Otherwise, the county clerk of the
county in which the greatest number of electors of the village
reside shall publish the notices of close of registration and
election. The notice of close of registration shall include the
ballot language of the proposal.
(8) The results of the election on the proposed
disincorporation shall be canvassed by the board of canvassers of
the village and the board of canvassers of each township in which
the village is located.
(9) The disincorporation of the village shall take place under
this section only if 2/3 of the electors voting on the question
vote "yes". If the disincorporation is approved, the council shall
immediately cause a transcript of all the proceedings in the case
to be certified to both of the following:
(a) The county clerk of the county in which the village or the
principal part of the village is located.
(b) The secretary of state.
Sec. 27b. Upon receiving the transcript of the proceedings in
submitting to a vote of the electors the question of vacating the
incorporation of any village as provided in section 27a, the county
clerk shall submit the transcript to the county board of
commissioners, which shall, at its next regular annual meeting,
pass a resolution vacating the incorporation of the village.
Sec. 27c. (1) Upon the vacation of the incorporation of any
village under sections 27a and 27b, the officers of the village
shall immediately deposit all books, papers, records, and files
relating to the organization of or belonging to the village that
are in their custody as village officers with the county clerk of
the county in which the village or the principal part of the
village is located for safe keeping and reference. The indebtedness
of the vacated village, whether bonded or otherwise, shall be
assessed, levied, and collected upon the territory embraced within
the boundaries of the village immediately prior to the vacation.
The township board of the township or townships in which the
territory formerly embraced within the limits of the vacated
village shall levy upon the assessment roll or rolls of the
township upon the property formerly embraced within the limits of
the village, the indebtedness of the village, or such portion of
the village that is apportioned to the part of the territory
formerly constituting the village that lies within the township as
provided in subsection (2). This levy shall be made not more than 1
year after the date that the village incorporation is vacated.
However, if the indebtedness falls due at a specified time, an
assessment shall be made that will satisfy the indebtedness when it
falls due.
(2) The taxes assessed and levied under subsection (1) shall
be collected the same as other taxes, and shall be placed in a
separate fund and applied to the payment of the indebtedness. The
manner of the payment of the indebtedness shall be fixed by
resolution of the township board or boards described in subsection
(1).
Sec. 27d. (1) If the territory formerly embraced within a
village vacated pursuant to sections 27a and 27b consists of
territory of 2 or more townships in the same county, the township
boards shall apportion, among their townships, the amount of the
indebtedness of the vacated village that each township shall bear.
(2) If a village vacated pursuant to sections 27a and 27b was
comprised of territory from 2 different counties, the county boards
of commissioners of the 2 counties shall determine what portion of
the indebtedness of the vacated village each county shall bear,
using as a basis the last preceding assessment roll of the vacated
village before its vacation. The indebtedness, when so apportioned,
shall be assessed, levied, and collected as provided in section
27c.
Sec. 27e. Not later than the next meeting of council held
after the clerk verifies the petition signatures and determines the
sufficiency of the petition under section 27a, the council may by
resolution elect to proceed under this section and sections 27f to
27n.
Sec. 27f. (1) A disincorporation commission shall be composed
of 3 members representing each township into which the village is
proposed to be disincorporated and a number of members representing
the village equal to the number of members representing townships.
(2) The village president, with approval of the village
council, shall appoint the members representing the village. The
township supervisor of a township, with approval of the township
board, shall appoint the members representing the township.
(3) Disincorporation commission members may be village or
township officials.
Sec. 27g. (1) An individual appointed to the disincorporation
commission shall take the constitutional oath of office.
(2) A vacancy in the disincorporation commission is created in
the manner provided in section 3 of 1846 RS 15, MCL 201.3.
(3) If a member of a disincorporation commission vacates
office, the vacancy shall be filled by appointment in the same
manner as provided in section 27f.
Sec. 27h. (1) The president of the village shall appoint 1 of
the village members as chairperson of the disincorporation
commission.
(2) The village clerk shall call the first meeting of the
disincorporation commission and shall serve as secretary of the
commission and keep its minutes and records.
(3) At its first meeting, the disincorporation commission
shall elect other officers it considers advisable.
(4) The disincorporation commission shall adopt bylaws to
govern the conduct of its business.
(5) A majority of the members of the disincorporation
commission constitute a quorum for the transaction of business at a
meeting of the commission. A majority of the members are required
for official action of the disincorporation commission.
(6) The disincorporation commission shall conduct its business
at a public meeting held in compliance with the open meetings act,
1976 PA 267, MCL 15.261 to 15.275.
(7) A writing prepared, owned, used, in possession of, or
retained by the disincorporation commission in the performance of
an official function is subject to the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246.
Sec. 27i. (1) The disincorporation commission may contract for
consultants and advisors as may be reasonably necessary in its
discretion to carry out its responsibilities.
(2) The village council shall appropriate for the
disincorporation commission sufficient funds for the commission to
reasonably carry out its responsibilities.
(3) The disincorporation commission may accept any private or
public funding.
Sec. 27j. (1) The disincorporation commission may adopt a
disincorporation plan for the village. Adoption of a
disincorporation plan requires the affirmative vote of 2/3 of the
members representing the village and 2 of the members representing
each township of the disincorporation commission.
(2) The disincorporation plan shall provide an orderly process
for disincorporation of the village. The disincorporation plan
shall include all of the following elements:
(a) An interim land use plan and interim zoning of the
property within the limits of the village.
(b) Provision for payment of all indebtedness of the village,
including any outstanding judgments, or judgments that may result
from pending or future litigation to which the village may become a
party.
(c) Disposition of real and personal property and other
assets, including funds, deposits, and investments.
(d) Disposition of all public records of the village in
accordance with a records retention plan as provided by law,
including files, books, and papers.
(e) Transfer or termination of employees, and contracts of
employment, and disposition of employee benefits, including
retirement, health and life insurance, unemployment compensation,
accrued sick and vacation leave, and any other benefits.
(f) Jurisdiction over streets, roads, bridges, alleys,
sidewalks, and any public easements in the village, and for their
maintenance and repair, including street lights and snow removal.
(g) Jurisdiction over traffic control and traffic control
devices.
(h) Provision for any special assessments or special
assessment districts within the village, including, but not limited
to, street maintenance, street sweeping, and private road service.
(i) The transfer or termination of public utilities and public
services of the village, including, but not limited to, water,
sewer, drainage, cable television, street lighting, electric
service, and garbage and refuse service.
(j) Regulation or orderly transfer of responsibility for any
special districts, including, but not limited to, established
historic districts, downtown development districts, tax increment
financing districts, and land subject to any land transfer
agreements.
(k) Provision for any authorities that the village has
established or in which the village is a member.
(l) Findings as to the fiscal impact of dissolution upon the
township or townships into which the village is proposed to be
disincorporated and the residents of the village, including the
estimated revenues gained by the township and losses to each
municipality from property taxes and from state revenue sharing and
from gas and weight tax revenues distributed by this state to the
village and any township into which the village is proposed to be
disincorporated.
(m) A process for the resolution of any dispute that may arise
over the implementation of the plan, if adopted, and the procedure
that a party to any dispute may utilize for this process.
(3) The disincorporation commission may make findings as to
the effect of disincorporation upon collateral matters including,
but not limited to, property values, public service levels and
costs, and local property tax rates.
Sec. 27k. A disincorporation plan adopted under section 27j
shall be submitted to the council and to the township board of each
affected township. The council and township board or boards may
ratify the disincorporation plan. If the council and the township
board of each affected township ratify the plan, the question of
disincorporation pursuant to the plan shall be placed on the ballot
pursuant to section 27l. If the council or the township board of
each affected township fails to ratify the disincorporation plan,
the question of disincorporation shall be submitted to the
electorate as described in section 27a not more than 1 year after
the date the disincorporation petition was filed under section 27a.
Sec. 27l. (1) If the disincorporation plan is approved under
section 27k, the clerk of the disincorporation commission shall
prepare and certify to the county clerk of each county where the
village is located ballot language describing the proposed
disincorporation and that includes the following in substantially
the following form:
"Shall the village of _______________ be disincorporated
pursuant to the plan adopted by the disincorporation commission?
( ) Yes
( ) No".
(2) The clerk of the disincorporation commission shall certify
the proposed disincorporation for inclusion on the ballot at the
next general election, the state primary immediately preceding the
general election, or a special election not occurring within 45
days of a state primary or a general election, as specified by the
clerk of the disincorporation commission. However, the clerk of the
disincorporation commission shall not certify the proposed
disincorporation for inclusion on the ballot at either of the
following:
(a) An election to be held less than 60 days after the date of
certification.
(b) An election to be held more than 1 year after the township
clerk verifies the petition signatures and determines that the
petition is sufficient under section 27a.
(3) If a special election is requested by the clerk of the
disincorporation commission, the county clerk of the county in
which the greatest number of electors of the village reside shall
schedule the election in compliance with section 641 of the
Michigan election law, 1954 PA 116, MCL 168.641. The proposal shall
be submitted to the qualified and registered electors residing in
the village and each township into which the village is proposed to
be disincorporated at that election.
(4) If a disincorporation commission fails to adopt a plan
under section 27j or the clerk of the disincorporation commission
does not certify the proposed disincorporation for inclusion on the
ballot under this section, the question of disincorporation shall
be submitted to the electors as described in section 27a not more
than 1 year after the date the disincorporation petition was filed
under section 27a.
Sec. 27m. (1) The proposed disincorporation is approved by the
electors and shall take place pursuant to the plan adopted under
section 27j only if a majority of each of the following votes cast
on the question of the proposed disincorporation are in favor of
the disincorporation:
(a) The votes cast by electors of the village.
(b) The votes cast by the electors of each township into which
the village is proposed to be disincorporated, counted separately,
and excluding votes cast by residents of the village.
(2) Unless the proposed disincorporation is approved as
provided in subsection (1), the proposed disincorporation pursuant
to a plan adopted under section 27j is disapproved by the electors
and the village shall not be disincorporated pursuant to the plan.
Sec. 27n. A new petition shall not be filed under section 27a
less than 2 years after the election if the disincorporation is
disapproved by the electors at an election held pursuant to section
27a or 27l.
