This week the Governor signed Senate Bill 352 (now PA 161 of 2013), a bill that would create a tax exemption for disabled veterans.

This new law specifically exempts from property taxes real property used and owned as a homestead by a disabled veteran who was discharged from the Armed Forces of the United States under honorable conditions.

The League opposed this legislation and will continue to be opposed to mandatory property tax exemptions. In 2011 the legislature and administration eliminated state tax exemptions so as to not “pick winners and losers” and balance the state budget. Yet we continue to combat legislation that mandates our members give property tax exemptions for various individuals. The policy is inconsistent, and we are opposed to this piecemeal look at tax policy.

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 Michigan House of Representatives passed HB 4257 (Denby, R-Fowlerville), a reintroduction from last session, today. 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 now moves onto the Senate.

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.

The package of blight bills related to communities who have administrative hearings bureaus, SB 35-39, passed the full House of Representatives today.  An amendment was added on the house floor from Rep. Banks (D-Grosse Pointe Woods) that would state any property holding a principal residence exemption containing blight violations would not be subject to foreclosure unless it also was delinquent on taxes.  These bills now move back to the Senate for concurrence.

There have been problems throughout the state with the lack of appropriate contact information when dealing with blighted property notices on financial institution owned property.  In response to those concerns and because of this legislation, the Michigan Department of Information and Financial Services is currently working on integrating a list of registered agents at financial institutions with their website.  In the meantime, anyone who might be interested in that agent information can call DIFS toll-free at 877-999-6442 or DIFS Corporate Review directly at 517-373-7236.

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.

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