The full House passed a package of bills, House Bills 5566-5575, that seek to deal with the bankruptcy in the City of Detroit. The state will appropriate $194.8 million dollars that will go toward the city’s pension system.

In exchange there are a number of conditions set forth in the package. The bills create an oversight commission that will have approval over the city’s major financial decisions including contracts over $750,000 and collective bargaining agreements. As amended in committee if the commission does not reject a contract for $750,000 or more in 30 days it would be deemed approved. Public Act 312 awards are also subject to review by the commission.

The legislation also requires the city to establish the position of chief financial officer. The bills as amended in committee allow the City to choose between defined contribution plans and defined contribution for new hires but caps the city contribution at 7 percent of base pay. The package also prohibits the City of Detroit from opting out under PA 152 of 2011.

The bills limit travel pay for retirement system board members. Additionally they prohibit new millages for the Detroit Institute of Art. This was an area of concern for many legislators and this particular bill passed more narrowly than the others (66-44).

The bills very narrowly define eligibility for these provisions as a city over 600,000 that is in bankruptcy.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

HB 5273 passed the full House this week, a bill dealing with Michigan investment markets.  HB 5273 would give businesses and residents in Michigan the ability to create a stock exchange through which intrastate stocks can be listed, bought, sold and resold. Those interested in purchasing stock from local companies would have easy access to the listings of all the companies on the exchange and show these potential investors that there is indeed a market for what they may be purchasing.  Exchanges must apply and be registered with the state as well as follow rules of operation laid out in the legislation which will provide security for all those participating, both the businesses and the investors.

This is the next progression from the MILE/crowdfunding legislation that was passed earlier this year and we are thankful to Rep. Jenkins for working so diligently to help small businesses in our local communities grow and prosper.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305. 

The Senate passed SB 846, a bill that amends the Michigan liquor control code dealing with redevelopment liquor licenses and is identical to HB 4257 that passed the House late last year. According to a recent determination by the Liquor Control Commission, only businesses in cities are eligible for redevelopment liquor licenses. This determination is counter to the last six years, where the Liquor Control Commission has allowed the redevelopment licenses in redevelopment districts to be for cities, villages, or townships. This bill is an attempt to rectify this issue and clarifies eligibility for the redevelopment liquor licenses in the development districts to cities, villages, and townships. We have heard from multiple villages worried about this because their redevelopment efforts are coming to a halt without being eligible for these redevelopment licenses.

This bill now moves onto the Senate.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

HB 5560, a bill allowing for more online public notice announcements over a phased in period, received a second hearing in the House Local Government Committee Thursday. Thank you to Ann Arbor city clerk, Jackie Beaudry, who testified in support of the legislation.  Also in attendance supporting the legislation were the Michigan Broadcasters Association, WoodTV 8, and Clear Channel West MI.  The Michigan Press Association testified in opposition to the legislation.

This bill, phases in online notices over a 10 year period and creates a three tiered system to indicate how many times a public notice should be required in a print publication and online during each phase of the phase-in approach.

The three tiers can be described as:
Tier A: Issues affecting property rights and taxes.
Tier B: everyday business for the local government of public interest.
Tier C: Everyday business that often does not require community feedback but may be of interest to the public or should be readily available online.

By the year 2025, each tier and publication requirement would look like the following, remembering there are two periods of 5 year increments that allow a local community to diminish the number of print notices and increase the number of online notices:
Tier A: Public notice would be posted on the active portion of a website for 30 days.
Tier A with a link: Public notice would be posted on the active portion of a website for 30 days with a link to the full document.
Tier B: Public notice would be posted on the active portion of a website for 14 days.
Tier B with a link: Public notice would be posted on the active portion of a website for 14 days with a link to the full document.
Tier C: Public notice posted on the active portion of the website for 14 days.

There would still be a requirement to have a hard copy on hand at the local unit of government’s office for inspection for the length of time the notice is required. Additionally, there would be an online archival component necessary as well.

We would like to thank Rep. Amanda Price (chair of the committee as well as the bill sponsor) for taking such a thoughtful, comprehensive approach to this issue taking into account the concerns from all sides. The process was long going through each act that required public notices.  HB 5560 is what is being referred to as the “hub bill” that all of those different acts will point to at the public notice portion.  Each of those acts will have to be amended to make that connection to the “hub bill.” Additionally, any direct mailings that are required to property owners in certain acts will be maintained.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The Senate Agriculture committee took up testimony on Thursday on the changes to the Generally Accepted Agricultural Management Practices (GAAMPs) changes.  The Michigan Department of Agriculture and Rural Development testified to and explained the changes.  There were many individuals in attendance wanting to speak with their concerns to the changes.

The changes recently approved by the Commission add a new category 4 that states land is not suitable for livestock if the area of the community is primarily residential (defined as more than 13 homes within 1/8 of a mile of the animals, or with any home within 250 feet of the proposed facility) AND does not allow for agricultural use.  This would still allow a local community to have an ordinance allowing livestock within their community in these areas if they choose to do so.

If our communities have had or continue to have issues dealing with Right to Farm and the GAAMPs especially as this process moves forward with the new changes, please make me aware of them so those concerns can be passed along to the MDARD and then to the Commission (a request they made to us during their last Commission meeting).

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The House Local Government Committee took up HB 5560, a bill phasing in more online public notices, on Thursday. This bill, phases in online notices over a 10 year period and creates a three tiered system to indicate how many times a public notice should be required in a print publication and online during each phase of the phase-in approach.

The three tiers can be described as:
Tier A: Issues affecting property rights and taxes.
Tier B: everyday business for the local government of public interest.
Tier C: Everyday business that often does not require community feedback but may be of interest to the public or should be readily available online.

By the year 2025, each tier and publication requirement would look like the following, remembering there are two periods of 5 year increments that allow a local community to diminish the number of print notices and increase the number of online notices:
Tier A: Public notice would be posted on the active portion of a website for 30 days.
Tier A with a link: Public notice would be posted on the active portion of a website for 30 days with a link to the full document.
Tier B: Public notice would be posted on the active portion of a website for 14 days.
Tier B with a link: Public notice would be posted on the active portion of a website for 14 days with a link to the full document.
Tier C: Public notice posted on the active portion of the website for 14 days.

There would still be a requirement to have a hard copy on hand at the local unit of government’s office for inspection for the length of time the notice is required. Additionally, there would be an online archival component necessary as well.

We would like to thank Rep. Amanda Price (chair of the committee as well as the bill sponsor) for taking such a thoughtful, comprehensive approach to this issue taking into account the concerns from all sides. The process was long going through each act that required public notices.  HB 5560 is what is being referred to as the “hub bill” that all of those different acts will point to at the public notice portion.  Each of those acts will have to be amended to make that connection to the “hub bill.” Additionally, any direct mailings that are required to property owners in certain acts will be maintained.

HB 5560 will receive another hearing this Thursday. If you are interested in testifying in support of this bill and online notices please contact me.  Additionally, if there are any questions, please do not hesitate to contact me.

Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at nbrown@mml.org or 517-908-0305.

The Michigan Department of Agriculture and Rural Development has released a Frequently Asked Question document regarding the changes recently made to the Generally Accepted Agricultural Management Practices (GAAMPs) and the areas of impact these changes affect. That can be found here: Right to Farm FAQ.

It is important to note and remember the Right to Farm Act has always and continues to be protection for farms (defined as  land, plants, animals, buildings, structures, including ponds used for agricultural or aquacultural activities, machinery, equipment, and other appurtenances) commercially producing farm products.

The changes recently approved by the Commission add a new category 4 that states land is not suitable for livestock if the area of the community is primarily residential (defined as more than 13 homes within 1/8 of a mile of the animals, or with any home within 250 feet of the proposed facility) AND does not allow for agricultural use.  This would still allow a local community to have an ordinance allowing livestock within their community in these areas if they choose to do so.

The approved site selection GAAMP is available here.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

A sample resolution supporting the statewide ballot on August 5, 2014 for Personal Property Tax reform to go into effect is now available on the League’s website here.

The campaign to pass the August 5, 2014 ballot proposal, the last step in personal property tax (PPT) reform, kicked off last month with a series of press conferences. The Michigan Citizens for Strong and Safe Communities coalition is seeking to pass a ballot referendum that would allow for use of a portion of the currently collected statewide use tax to fully reimburse communities for PPT loss.

The coalition has launched a website and you can also follow it on Facebook and Twitter.

We encourage members to support the full replacement of PPT dollars with a significantly more stable reimbursement mechanism by voting “yes” on August 5. If your community passes and/or takes up this resolution please let the League’s Matt Bach know at mbach@mml.org as he is tracking the number of resolutions among Michigan cities, villages and urban townships.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305. 

The House Commerce Committee took testimony today on HB 5430 (Rep. Jenkins, R- Clayton), a bill to create a securities regulation advisory board within the Department of Licensing and Regulatory Affairs (LARA).  As introduced, this board would be made up business professionals appointed by the Governor, Senate Majority Leader and Speaker of the House.  The function of the board would be to advise the securities commissioner in LARA on issues surrounding securities.  This is as an extension of the Michigan Invests Locally Exemption legislation or MILE that became law earlier this year enabling intrastate crowd funding and further assists small businesses throughout the state to prosper and grow.  Having a mechanism such as this in place for efficient, organized, and expertized oversight of the new MILE program can help to ensure these small businesses are utilizing all proper ways of accessing and raising capital through the law.

There were some concerns from committee members over the board composition and lack of staggered terms.  Rep. Jenkins expressed her willingness to look into those issues and address them where possible. The chair indicated this could be back up in committee as early as next week.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Today, the House Commerce Committee passed out HB 5273, a bill dealing with Local Stock Exchanges.  HB 5273 would give businesses and residents in Michigan the ability to create a stock exchange through which intrastate stocks can be listed, bought, sold and resold. Those interested in purchasing stock from local companies would have easy access to the listings of all the companies on the exchange and show these potential investors that there is indeed a market for what they may be purchasing.  Exchanges must apply and be registered with the state as well as follow rules of operation laid out in the legislation which will provide security for all those participating, both the businesses and the investors.

There are some concerns with the Department of Licensing and Regulatory Affairs that are being worked on and will continue to be worked on as the process moves forward.

This is the next progression from the MILE/crowdfunding legislation that was passed earlier this year and we are thankful to Rep. Jenkins for working so diligently to help small businesses in our local communities grow and prosper.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.