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.