Yesterday the Senate Finance Committee reported Senate Bill 536, a bill that would allow local units of government to exempt an “eligible economic development group” from property taxes for a period of five to seven years.

In order to receive this abatement a local unit must pass a resolution allowing the eligible entity to receive the exemption. The committee adopted a substitute bill that can be viewed here: SB 536 (s-1).

The bill now goes to the full Senate for consideration.

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

The House Regulatory Reform Committee passed out of committee HB 4257 (Denby, R-Fowlerville), a reintroduction from last session.  This bill amends the Michigan liquor control code dealing with redevelopment liquor licenses. 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 TIF 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.

Towards the end of session last year this bill became an issue because the Restaurant Association and the Licensed Beverage Association wanted an amendment that expanded the search for a quota license to the entire county instead of only the municipality prior to seeking a redevelopment license, a problem from the League’s perspective because there are so many different cost inconsistencies from one area of the county to another.  It passed out of the House last session without the amendment but there was a commitment by the chair of the senate committee it was in to add that amendment on.  However, it died in that committee at the end of session.

Rep. Denby is committed to doing this for the communities who have been using this as a redevelopment tool but will now not be able to do so unless this is changed.  Knowing what happened last session and that it would be the same fight this session, she and her staff tried to work a solution that would work for both municipalities and the industry.  The substitute version states the countywide search is only necessary in the areas where the license fair market value is the same as the municipality where the establishment is located.

This bill moves onto the full house.

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

A bill to allow local communities to enter into written agreements with other local governmental units for election activities passed the Michigan House of Representatives yesterday and now heads to the senate. HB 4878 would allow a city or township clerk to enter into a written contract with the county or another city or township to handle election administration duties such as handling absent voter ballot applications/ballots and processing voter registrations and maintenance of the qualified voter file.  Two communities (city or township) could also enter into a contract to prepare and conduct election day operations.  The governing body of each of the participating units would have to approve the action by resolution in order for the written agreement to be entered into.  A local unit can terminate this agreement with 60 days written notice to the other participating party.

This legislation also allows a local governmental unit to approve the bureau of elections or a county, city or township to handle an election if the office of the clerk becomes vacant in close proximity to an election.

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

The Michigan Municipal League needs your help TODAY in opposing a bill that would further limit when you can place new millage questions on the ballot. This bill is a complete infringement on the control of local communities like yours. Please contact your state Representatives today and the lawmakers listed below who are members of the committee hearing this issue—the House Elections and Ethics Committee.

Time is of the essence because the committee is scheduled to have a hearing on this issue today (Nov. 12, 2013). Please contact them by phone and/or email today. The more local officials they hear from the better chance we have to get opposition to this bill. Go here to look up your state lawmakers.

Here are some additional details and talking points about this:

– Oppose House Bill 4887, sponsored by State Rep. Dan Lauwers. R-Brockway Township.

– What is it?: It would limit when new elections could be placed on the ballot. Specifically, this bill would only allow local municipalities to place new millages on the ballot for the August regular election date or the November regular election date (straight renewals can be done at any of the four election dates).

– Pros: The argument of the bill is there is greater voter turnout in the August and November elections so new millages should only be allowed to be voted on during those times. The introduced version of the legislation only allowed a millage to be placed on the ballot for the November General Election, but a substitute changing it to each August and November election was adopted.

– Cons and League position: This is a complete infringement on local control. Local municipalities should have the ability to decide when a new millage to be voted on by the voters is placed on the ballot.

– Talking points when calling your lawmakers: The state has cut funding to our local communities by $6 billion in the last decade in the form of reductions to revenue sharing/EVIP. Additionally, Proposal A and Headlee severely limit revenue increases at the local level. The cuts at the state level coupled with Proposal A and Headlee have left local communities to essentially fend for themselves, which means asking their residents to vote on millages to cover the cost of essential services, such as police and fire protection and road maintenance. Limiting the timeframe as to when they can ask the public to vote on millages further ties the hands of our local units of government to operate effectively.

– Please oppose HB 4887!

The League testified in opposition as did the Michigan Township Association and the Michigan Library Association. The school groups and the Michigan Association of Municipal Clerks are opposed as well.
If you have any questions about this issue, please contact the League’s Nikki Brown at nbrown@mml.org or 517-908-0305.

In addition to contacting your own lawmakers, please also contact these lawmakers who serve on the House Elections and Ethics Committee that are hearing this issue today:

Lisa Posthumus Lyons (R) Committee Chair, 86th District; 517-373-0846; LisaLyons@house.mi.gov
Kevin Cotter (R) Majority Vice-Chair, 99th District; 517-373-1789; KevinCotter@house.mi.gov
Kurt Heise (R) 20th District; 517-373-3816; KurtHeise@house.mi.gov
Mike Callton (R) 87th District; 517-373-0842; MikeCallton@house.mi.gov
Rick Outman (R) 70th District; 517-373-0834; RickOutman@house.mi.gov
Ken Yonker (R) 72nd District; 517-373-0840; KenYonker@house.mi.gov
Harold Haugh (D) Minority Vice-Chair, 22nd District; 517-373-0854; HaroldHaugh@house.mi.gov
Marilyn Lane (D) 31st District; 517-373-0159; MarilynLane@house.mi.gov
Andy Schor (D) 68th District; 517-373-0826; AndySchor@house.mi.gov

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

Last week the House passed House Bill 4939, a bill that would allow a department head to serve as a city manager.

The legislation was prompted by a community in Rep. Knezek’s district where the police chief is serving as interim city manager. Under the current statute this is permissible in communities with less than 25,000 population. This legislation would expand it to larger communities. The substitute that passed committee would limit this option to communities of 100,000 people. We are interested in ensuring that exception is available for communities of all sizes.

The legislation now goes to the Senate for consideration.

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

The joint House and Senate Conference Committee on the budget is having hearings to negotiate the 2014 federal budget. The deadline to reach an agreement is December 13. However, as has been the case all year, significant differences remain between House Chairman Paul Ryan (R-WI) and Senate Chairwoman Patty Murray (D-WA). There was some discussion at the first hearing that there might be small scale agreement put in place that would provide relief from sequestration-driven budget cuts set to go into effect mid-January. The League will continue to update you on federal budget progress as the discussions move forward.

Summer Minnick is the Director of Strategic Initiatives and Federal Affairs. She can be reached nat 517-908-0301 or sminnick@mml.org.

CALL MISS-DIG. Under the legislation passed unanimously yesterday by the House, a local unit of government faces penalties if they do not call the MISS-DIG system when beginning a project that involves digging. If a local unit does call MISS-DIG there is no liability.

This morning the House Energy and Technology Committee unanimously reported on Senate Bills 539 and 540.  Originally the legislation last session would have entirely exempted any action under the MISS-DIG Act from government immunity. That was problematic for us, so the fee structure arose as a result of many discussions with the Senate and the Governor’s office, as well as utility stakeholders. The League always has concerns with expanding government immunity.  Given, however, the inclination of the legislation to create an exception to governmental immunity, this is an extremely narrow exception.

The legislation will now head to the Governor for his signature.

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

The House Elections and Ethics committee took up a package of bills to limit when new elections could be placed on the ballot yesterday.  HB 4887 (Rep. Dan Lauwers) is among the package (including HB 5115-5116 dealing with schools sponsored by Rep. Lisa Posthumus Lyons) and would only allow local municipalities to place new millages on the ballot for the August regular election date or the November regular election date (straight renewals can be done at any of the four election dates).  The argument of the bill is there is greater voter turnout in the August and November elections so new millages should only be allowed to be voted on during those times. The introduced version of the legislation only allowed a millage to be placed on the ballot for the November General Election but a substitute changing it to each August and November election was adopted.

This is a complete infringement on local control. The funding our municipalities have received from the state by way of revenue sharing/EVIP has been cut by $6 billion in the last decade.  Additionally, Proposal A and Headlee severely limit revenue increases at the local level.  The cuts at the state level coupled with Proposal A and Headlee have left local communities to essentially fend for themselves, which means asking their residents to vote on millages to cover cost of services.  Limiting the timeframe as to when they can ask voters to vote on millages further ties the hands of our local units of government to operate effectively.

The League testified in opposition as did the Michigan Township Association and the Michigan Library Association.  The school groups and the Michigan Association of Municipal Clerks are opposed as well.

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