HB-4758, As Passed House, October 14, 2015
June 18, 2015, Introduced by Rep. Pscholka and referred to the Committee on Local Government.
A bill to amend 1956 PA 40, entitled
"The drain code of 1956,"
by amending sections 132, 221, 275, 277, 278, 280, 476, 528, and
569 (MCL 280.132, 280.221, 280.275, 280.277, 280.278, 280.280,
280.476, 280.528, and 280.569), sections 275, 278, and 280 as
amended by 2002 PA 406.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
132. In cases where If it is determined that the
assessments shall be collected in more than 2 installments, the
drainage board, acting on behalf of the drainage district, may
borrow
money and may issue bonds therefor as in the manner provided
in
the case of for drains lying wholly within 1 county. Such The
bonds shall be signed by the members of the drainage board and
shall be countersigned by the clerks of the counties affected.
Bonds issued under this chapter shall be payable at the office of
the
county treasurer of the county to which the larger per cent
percentage
of the cost of construction is
apportioned, and such the
bonds
shall be deposited and safely kept by such the treasurer
until
the bonds are sold and delivered. All installments, with
including
interest, thereon, of the
special assessments shall be
transmitted as collected by the treasurer or treasurers of the
other
county or counties concerned to the treasurer of such the
county to which the larger percentage is apportioned, who shall
issue
his or her receipt therefor and shall place deposit the
moneys
money in the fund of the drain to be disbursed solely for
the
retirement payment of the bonds at maturity or upon mandatory
redemption
and the payment of interest thereon.on the bonds.
Sec.
221. (1) At the time and place fixed established in the
notice, therefor,
the commissioner shall receive bids for the
construction
of the drain. The commissioner may, in any case, and
shall for all drains having an estimated cost exceeding $5,000.00,
advertise for sealed proposals, to be opened on the day of letting.
All sealed proposals received by the commissioner shall be publicly
opened
by him or her in the meeting and may be there examined at
the meeting by any person interested. As soon as practical after
the opening of bids for the construction of any drain, the
commissioner shall determine the lowest responsible bidder and
award
contracts, or he may reject all proposals and readvertise, as
in
the first instance, and in cases
where the commissioner
determined that the taxes assessed for benefits shall be collected
in
more than 1 installment, he the
commissioner shall, subject to
the
provisions set forth in section 275, of
this act, determine the
amount, form, maturity, mandatory redemption requirements, if any,
and rate of interest of bonds to be issued. In counties having a
board
of county auditors, no drain bonds shall not be
sold and no
drain contracts shall not be let without the written consent and
approval
of the board of county auditors. , but However,
the
approval
of said the board shall of county auditors is not be
required in proceedings relative to intercounty drains.
(2) If
no a contract shall be is not let
within 5 years after
the date of filing the petition to locate, establish and construct,
or deepen, widen, straighten, tile, extend or clean out a drain,
the drain commissioner may determine that the petition shall be
deemed
considered abandoned and no further action shall be taken to
construct
the drain. Time during which any litigation shall be is
pending
to contest the validity of such the
proceedings shall not
be counted as a part of such 5-year period. If the drain
commissioner determines the petition shall be considered abandoned,
he
the commissioner shall issue his an order
to that effect. ;
provided,
that such However, a determination of abandonment shall
not be issued within the 5-year period. Notice of the order shall
be given by publishing a notice in a newspaper of general
circulation
in the county. The provisions of this This section
shall
apply applies to all petitions which that are
in full force
and
effect on the date of or
after January 1, 1973. ,
or
thereafter.
(3) The
board of county road commissioners, when if authorized
by
a committee of supervisors commissioners
appointed by the county
board
of supervisors, is hereby authorized to commissioners, may
bid for the construction, cleaning, deepening and widening of
drains
within the county, and, if such a
bid is accepted, shall be
authorized
to may perform the work called for therein, in the bid,
and
receive payment therefor. for
the work performed. A bid
tendered
by such a board of county road commissioners shall not be
accepted
unless such the bid shall be is at least 15% lower than
any
other bid tendered. The moneys money
received by the county
road commission shall be credited to the county road fund, and
expenditures incurred by the county road commission shall be proper
disbursements
therefrom.from the county
road fund.
Sec.
275. In cases where the issuing of If bonds shall have
been
determined upon, are issued, as provided in this act, and
subject
to the provisions of section 221 of this act, the
commissioner may borrow money in anticipation of the collection of
the installments and may issue as evidence thereof the bonds of the
drainage
district. as defined in this act. The obligations
shall
specify on their face that they are payable out of the installments
of drain taxes to be collected, and the amount shall not exceed the
aggregate of the installments levied. Bonds issued under this act
shall be signed by the commissioner on behalf of the drainage
district, shall be countersigned by the county clerk and shall be
payable in annual installments equal in number to the installments
of taxes, shall mature or be subject to mandatory redemption not
earlier than March first and not later than June first of the year
following the due dates of the respective installments of taxes.
The
number of installments shall not exceed 20. : Provided,
however,
That However, in any drainage district containing a closed
drain, any part of whose cross-section has an area exceeding 60
square feet, the number of installments may be, but shall not
exceed,
30, and the amount of each installment shall be fixed
established to correspond as near as may be to the drain
commissioner's estimate of the amount of taxes actually collectible
each year, and in no case shall bonds mature or be subject to
mandatory redemption more than 2 1/2 years after the corresponding
installment of taxes. The commissioner shall pledge in the bond the
credit of the drainage district, including the lands embraced
within the district and the townships, cities, villages, counties,
and state trunk line highways assessed at large, in the proportion
that they are taxed for the benefits received. The bonds shall be
sold subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821. If any premium is received on the bonds, the
premium shall belong to the fund of the drain. The proceeds derived
from the sale of the bonds shall be deposited with the county
treasurer to the credit of the drain fund. The county treasurer
shall
safely keep all the bonds until sold as above provided :
Provided,
however, That in this
section. However, this act shall
not be considered to affect any bonds or refunding bonds issued
prior
to the effective date of this act March 28, 1956 or any
refunding
bonds issued to replace the same.
: Provided further,
That
no Furthermore, a county shall not advance or pay out of
its
general
funds any moneys money for or on account of principal or
interest of any drain bonds issued before the effective date of
former
Act No. 331 of the Public Acts of 1927, 1927 PA 331 or any
refunding
bonds issued to replace the same.bonds.
Sec. 277. Whenever lands in any city, village, or township or
combination
thereof shall be are assessed for all or any part of
the
cost of a drain, the governing body of each such of the cities,
villages, or townships by resolution adopted prior to the issuance
of
drain orders and/or or bonds,
or both, in anticipation of the
payment
of the assessments for such the
drain may agree that in the
event of any delinquency in the collection of the assessments
against
lands in such the cities, villages, or townships, the
cities,
villages, or townships shall advance the amount of such the
delinquency from unobligated funds in the general fund to the
extent
necessary to pay principal and interest on such the drain
orders
and/or or bonds,
or both, as the same mature or are subject
to
mandatory redemption. In the event that
moneys are money is so
advanced,
then the cities, villages, or townships shall be
reimbursed
from the collection of the said delinquent assessments
against lands within its boundaries. If the collections from
special
assessments shall are not be sufficient to reimburse the
cities,
villages, or townships, the drain commissioner of such the
county shall, within a 5-year period from the date of advancement,
reassess
the drainage district as in the first instance in order to
provide
for the repayment of the sums so advanced. : Provided, That
However,
this act shall does not
validate any drain orders or bonds
issued
prior to the effective date of this act.March 28, 1956.
Sec. 278. If bonds or notes are issued and sold by the
commissioner, installments of the drain taxes shall bear interest
not
to exceed at a rate which that is not greater than 1%
per annum
more than the average rate of interest on the bonds or notes from
the date of the preparation of the assessment roll until due. The
bonds or notes may provide, if the commissioner so determines, for
the payment of interest semiannually. The installments and the
interest shall, as collected, be paid into the county treasury and
placed to the credit of the fund of the drain, to be used solely
for the payment of bonds or notes as they mature or are subject to
mandatory redemption. Money collected in anticipation of the
maturity
payment of the bonds or notes shall be deposited by the
county treasurer in a bank or banks to be designated by the board
of commissioners of the county and the interest received shall
belong to the fund. Bonds or notes issued and sold by the
commissioner shall bear interest at not to exceed the rate
specified in the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
Sec. 280. (1) If there is not sufficient money in the fund in
a particular drain at the time of the maturity of the bonds last to
mature, or any drain orders, to pay all outstanding bonds or drain
orders with interest, or to reimburse the county for money which it
has been obliged to advance pursuant to section 275, whether such
insufficiency is due to the anticipation of installments as
provided in section 279, or to failure to sell any lands for
delinquent
taxes, or to any other cause, it shall be the duty of
the
commissioner to shall at once levy an additional assessment as
provided
in this act provided in such an amount as will make up the
deficiency which shall be spread in not to exceed 7 annual
installments; and if the commissioner determines that the entire
amount, if spread in 1 year, would be an undue burden or create
unnecessary hardship, he or she may order it spread over any number
of years up to but not exceeding 7. If bonds or other evidences of
indebtedness are issued pursuant to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821, to refund the
outstanding indebtedness of a drain district, the governing body of
such
the drain district shall provide, subject to the
requirements
of the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, for such additional levies of assessments prior to the
maturity or mandatory redemption of the refunding obligations as
necessary to prevent default in the payment of interest on the
obligations, and the maintenance of a sinking fund for their
retirement. Every officer charged with the determination of the
amount of taxes to be raised, or the levying of the taxes, shall
make or cause to be made the additional levies as provided. Any
surplus remaining after the payment of the bonds and interest shall
remain in the county treasury and be used for the maintenance of
the drain.
(2) The additional assessments shall only apply to drain
orders or bonds issued after March 28, 1956 and shall be
apportioned, assessed, levied, and collected as provided in the
first instance. As to deficiency assessments levied for drain
orders or bonds issued after March 28, 1956, there shall be no
lands
exempted from the levy, except those which at the time of the
additional
assessments are owned or used as follows:lands that are
1 or more of the following:
(a)
Lands owned Owned by the United States.
(b)
Lands owned Owned by the state of Michigan.
(c)
Lands owned Owned by any county, city, village, township,
or school district and used for public purposes.
(d)
Lands used Used exclusively for burial grounds.
(e)
Lands dedicated Dedicated to the public and actually used
as a highway or alley, and not used for gain.
(3) An additional assessment shall not be levied or collected
for the purpose of paying the principal or interest upon any bonds
or
obligations which have heretofore been held to be invalid, and
any
such additional assessment shall not be apportioned, assessed,
levied, or collected for the purpose of paying any bonds, interest,
or obligations for the payment of which assessments have been made.
Sec. 476. The drainage board may issue 1 or more series of
bonds for and on behalf of the drainage district, in anticipation
of the collection of any or all installments of assessments or any
part thereof, and pledge the full faith and credit of the drainage
district
for the prompt payment of the principal thereof of and
the
interest
thereon. on the bonds. The bonds shall mature serially or
be subject to mandatory redemption with the last maturity not later
than 2 1/2 years after the due date of the last installment of the
assessments and there may be more than 1 principal maturity or
mandatory redemption date during any 12-month period. The bonds
shall be signed by the chairman and at least 1 other member of the
drainage board and the facsimile signature of the chairman shall be
affixed to the interest coupons attached thereto. Collections of
both principal and interest on all installments of assessments in
anticipation of which bonds shall have been issued shall be kept in
a separate bank account by the county treasurer and used for no
other
purpose than the payment of principal and interest on such
the
bonds until the full payment thereof.of the principal and
interest on the bonds.
Sec. 528. The drainage board may issue 1 or more series of
bonds for and on behalf of the drainage district, in anticipation
of the collection of any or all installments of assessments, and
pledge the full faith and credit of the drainage district for the
prompt
payment of the principal thereof of and the interest
thereon.
on the bonds. The bonds shall mature serially or be
subject to mandatory redemption with the last maturity not later
than 2 1/2 years after the due date of the last installment of the
assessments and there may be more than 1 principal maturity or
mandatory redemption date during any 12-month period. The bonds
shall
be signed by the chairman chairperson
and secretary of the
drainage board, who shall cause their facsimile signatures to be
affixed to the interest coupons attached thereto. Collections of
both principal and interest on all installments of assessments in
anticipation of which bonds shall have been issued shall be kept in
a separate bank account by the treasurer for the drainage board and
used for no other purpose than the payment of principal and
interest
on such the bonds until the full payment thereof.of the
principal and interest on the bonds.
Sec. 569. The board may issue bonds for and on behalf of the
water management district, in anticipation of the collection of any
or all installments of assessments, and pledge the full faith and
credit of the water management district for the prompt payment of
the
principal thereof of and the interest thereon. Such on the
bonds.
The bonds shall mature serially or be subject to mandatory
redemption with the last maturity not later than 2 1/2 years after
the
due date of the last installment of the assessments. :
Provided,
That However, there may be more than 1 principal maturity
or mandatory redemption date during any 12-month period. The bonds
shall
be signed by the chairman chairperson
and secretary of the
board, who shall cause their facsimile signatures to be affixed to
the interest coupons attached thereto. Collections of both
principal and interest on all installments of assessments in
anticipation of which bonds shall have been issued shall be kept in
a separate bank account by the treasurer for the board and used for
no
other purpose than the payment of principal and interest on such
the
bonds until the full payment thereof.of the principal and
interest on the bonds.