Michigan 2023-2024 Regular Session

Michigan House Bill HB4177 Compare Versions

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11 Substitute For HOUSE BILL NO. 4177 An act to provide for the establishment of history museum authorities; to provide for the powers and duties of a history museum authority; to authorize the levy and collection of a property tax by a history museum authority; and to provide for the powers and duties of certain state and local governmental officers and entities. the people of the state of michigan enact: Sec. 1. This act may be cited as the "history museum authorities act". Sec. 3. As used in this act: (a) "Articles" means the articles of incorporation of an authority. (b) "Authority" means a history museum authority established under section 5. (c) "Board" means the board of directors of an authority. (d) "Capital improvement" means a durable upgrade, adaptation, or enhancement of a property that increases the property's value. Capital improvement does not include reasonable expenditures made in connection with the installation or removal of exhibitions that require improvements to a property. (e) "Electors of the authority" means the qualified and registered electors of a county. (f) "History museum" means a historical museum whose primary collection and facility, at the date an authority is established, are owned by a city with a population of over 500,000. (g) "History museum services" means the operation or support of a history museum. (h) "History museum services provider" means a nonprofit entity qualified under section 501(c)(3) of the internal revenue code, 26 USC 501, that, as its primary purpose, provides history museum services to a history museum. (i) "Local historical museum" means a historical museum that is located within the county in which an authority is established and that is owned or exclusively operated by a municipality, a county, or a nonprofit entity qualified under section 501(c)(3) of the internal revenue code, 26 USC 501, but that does not qualify as a history museum under subdivision (f). Sec. 5. (1) Any county may establish a history museum authority. (2) A history museum authority is an authority under section 6 of article IX of the state constitution of 1963. A history museum authority is a public corporate body with the power to sue and be sued in any court of this state. (3) A history museum authority possesses all the powers necessary for carrying out the purposes of its establishment. The enumeration of specific powers in this act must not be construed as a limitation on the general powers of an authority, consistent with its articles. (4) An authority shall not obtain an interest in real property or participate in the governance of a history museum. Sec. 7. (1) To initiate the establishment of an authority, articles of incorporation must be prepared by a majority of the members of the county board of commissioners of the county establishing the authority. The articles of incorporation must include all of the following: (a) The name of the authority. (b) The size of the board of directors of the authority, which must be composed of an odd number of members and must not exceed 15 members. (c) The qualifications and terms of office of board members. (d) The manner of appointing board members. (e) The manner of filling vacancies in the office of board member. (f) The purpose of the authority. (g) The method of dissolution of the authority. (h) Any other matters considered advisable. (2) The articles must be adopted and may be amended by an affirmative vote of a majority of the members of the county board of commissioners of the county establishing the authority. (3) Before the proposed articles or amendments to the articles are adopted, the proposed articles or amendments must be published not less than once in a newspaper generally circulated within the county. The adoption of proposed articles or amendments by the county must be evidenced by an endorsement on the articles or amendments by the clerk of the county. (4) Upon adoption of the articles or amendments to the articles by the county, the clerk of the county shall file a printed copy of the articles or the amended articles with the secretary of state. (5) The authority's articles of incorporation, or amendments to the articles, take effect when filed with the secretary of state. Sec. 9. (1) A vacancy occurs on the board if any of the events described in section 3 of 1846 RS 15, MCL 201.3, occur. Members of the board may be removed by the county board of commissioners for good cause after a public hearing. Vacancies must be filled in the manner as provided for in the authority's articles of incorporation. (2) A majority of the members of the board constitute a quorum for the purpose of conducting business and exercising the powers of an authority. Official action may be taken by an authority on the vote of a majority of the board members present, unless the authority adopts bylaws requiring a larger number. (3) A member of the board shall not receive compensation for services as a member of the board but is entitled to reimbursement for reasonable expenses, including expenses for travel previously authorized by the board, incurred in the discharge of the member's duties. (4) The business that an authority may perform must be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. (5) A writing prepared, owned, or used by an authority in the performance of an official function must be made available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. (6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers necessary. (7) A board may adopt bylaws to govern its procedures. Sec. 11. (1) An authority may do 1 or more of the following: (a) Subject to subsection (2), provide funding pursuant to a contract with 1 or more history museum services providers to support the provision of history museum services. (b) Provide grant funding to local historical museums. (c) Levy a tax as provided in section 17. (d) Enter into contracts incidental or necessary for the accomplishment of the purposes of this act. (e) Contract for or retain professional services. (2) If the authority contracts with more than 1 history museum services provider, the authority must obtain a memorandum of understanding between the history museum services providers and distribute the revenue received from the tax levy under section 17 pursuant to the memorandum of understanding. Sec. 13. (1) Before a vote for a tax levy under section 17 occurs or, if an initial history museum services provider is replaced, before any funds are transferred under section 25 to a replacement history museum services provider, the history museum services provider must enter into a contract with the authority requiring the history museum services provider to use the funds received from the authority exclusively to support the provision of history museum services to a history museum. (2) In the contract described in this section, an authority may include a provision that funds received by the contracting history museum services provider are not to be used for 1 or more of the following activities: (a) Establishing or adding to the principle of an endowment fund. (b) Capital improvements. (c) Deferred maintenance. Sec. 15. If a majority of electors in the county voting on the question of a tax as provided in section 17 approve the tax, the contract as provided in section 13 must require the history museum services provider to offer or to exercise its best efforts to cause the history museum to offer preferences or benefits for the residents of the county that must include, at a minimum, all of the following: (a) Free admittance to the history museum for which the history museum services provider provides history museum services. (b) Programming designed for schools and student groups. (c) Programming for senior citizens. Sec. 17. (1) An authority may levy a tax of not more than 0.2 mills for a period of not more than 10 years on all of the taxable property within the county for the purpose of providing revenue to 1 or more history museum services providers that will be used exclusively for the benefit of 1 or more history museums with respect to which the history museum services providers render services. The authority may levy the tax only if a majority of the electors in the county voting on the tax at an election held on a regular election date as provided in section 641(1) of the Michigan election law, 1954 PA 116, MCL 168.641, approve the tax. The proposal for a tax must be submitted to a vote of the electors of the authority by resolution of the board, and must not be submitted to a vote of the electors before January 1, 2025. (2) A ballot proposal for a tax must comply with the requirements of section 24f of the general property tax act, 1893 PA 206, MCL 211.24f. A proposal for a tax must not be placed on the ballot unless the proposal is adopted by a resolution of the board and certified by the board not later than 60 days before the election to the county clerk of the county for inclusion on the ballot. The proposal must be certified for inclusion on the ballot at the next eligible election, as specified by the board's resolution. (3) If a majority of the electors in the county voting on the question of a tax approve the proposal as provided under subsection (1), the tax levy is authorized. Not more than 2 elections may be held in a calendar year on a proposal for a tax authorized under this act. Sec. 19. (1) The county election commission of the county shall provide ballots for an election for a tax under section 17. (2) An election for a tax must be conducted by the city and township clerks and election officials of the municipalities located within the county. Sec. 21. (1) If an election for a tax under section 17 is to be held in conjunction with a general election or a state primary election, the notices of close of registration and election must be published as provided for by the state election laws. Otherwise, the county clerk of the county shall publish the notices of close of registration and election. The notice of close of registration must include the ballot language of the proposal. (2) The board of county canvassers of the county shall canvass the results of an election for a tax. The board of county canvassers of the county shall make the final canvass of an election for a tax based on the returns of the election inspectors of the municipalities in that county. The board of county canvassers of the county shall certify the results of the election to the board of the authority. Sec. 23. A tax authorized to be levied by an authority under this act must be levied and collected at the same time and in the same manner as provided by the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. Sec. 25. (1) Subject to subsection (2), within 10 business days after the receipt of the funds from the local property tax collecting unit for the tax levied under this act, the authority shall transfer the funds, less the amount necessary to fund the payment of obligations incurred by the authority in accordance with this act and for other authority programs described in section 11, to the history museum services provider. (2) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax for the first time, funds must not be transferred to the history museum services provider until all necessary reimbursements under section 27 have been fulfilled. Sec. 27. (1) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, the county clerk of the county shall charge the authority and the authority shall reimburse the county for the actual costs the county incurs in the election for the tax under section 17. (2) If a municipality conducts the election and a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, the clerk of that municipality shall charge the contracting history museum services provider and the contracting history museum services provider shall reimburse the municipality for the actual costs the municipality incurs in conducting the election if the election is not held in conjunction with a regularly scheduled election in that municipality. (3) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, in addition to costs reimbursed under subsection (1) or (2), a county or municipality shall charge the contracting history museum services provider and the contracting history museum services provider shall reimburse the county or municipality for actual costs that the county or municipality incurs that are exclusively attributable to an election for a tax authorized under this act. (4) The actual costs that a county or municipality incurs must be based on the number of hours of work done in conducting the election, the rates of compensation of the workers, and the cost of materials supplied in the election. Sec. 29. (1) A board shall obtain an annual audit of the authority, and report on the audit and auditing procedures, in the manner provided by sections 6 to 13 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit must also be in accordance with generally accepted government auditing standards as promulgated by the United States General Accounting Office and must satisfy federal regulations relating to federal grant compliance audit requirements. (2) An authority shall prepare budgets and appropriations acts in the manner provided by sections 14 to 19 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439. (3) The state treasurer, the attorney general, a prosecuting attorney, a bank, a certified public accountant, a certified public accounting firm, or other person has the same powers, duties, and immunities with respect to the authority as provided for local units in sections 6 to 20 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.440. (4) If an authority ends a fiscal year in a deficit condition, the authority shall file a financial plan to correct the deficit condition in the same manner as provided in section 21(2) of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.921. (5) The board may authorize funds of the authority to be invested or deposited on a temporary basis before being transferred under section 25 in any investment or depository authorized under section 1 of 1943 PA 20, MCL 129.91. Enacting section 1. This act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law: (a) House Bill No. 5817. (b) House Bill No. 5818.
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77 Substitute For
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99 HOUSE BILL NO. 4177
1010
1111 An act to provide for the establishment of history museum authorities; to provide for the powers and duties of a history museum authority; to authorize the levy and collection of a property tax by a history museum authority; and to provide for the powers and duties of certain state and local governmental officers and entities.
1212
1313 the people of the state of michigan enact:
1414
1515 Sec. 1. This act may be cited as the "history museum authorities act".
1616
1717 Sec. 3. As used in this act:
1818
1919 (a) "Articles" means the articles of incorporation of an authority.
2020
2121 (b) "Authority" means a history museum authority established under section 5.
2222
2323 (c) "Board" means the board of directors of an authority.
2424
2525 (d) "Capital improvement" means a durable upgrade, adaptation, or enhancement of a property that increases the property's value. Capital improvement does not include reasonable expenditures made in connection with the installation or removal of exhibitions that require improvements to a property.
2626
2727 (e) "Electors of the authority" means the qualified and registered electors of a county.
2828
2929 (f) "History museum" means a historical museum whose primary collection and facility, at the date an authority is established, are owned by a city with a population of over 500,000.
3030
3131 (g) "History museum services" means the operation or support of a history museum.
3232
3333 (h) "History museum services provider" means a nonprofit entity qualified under section 501(c)(3) of the internal revenue code, 26 USC 501, that, as its primary purpose, provides history museum services to a history museum.
3434
3535 (i) "Local historical museum" means a historical museum that is located within the county in which an authority is established and that is owned or exclusively operated by a municipality, a county, or a nonprofit entity qualified under section 501(c)(3) of the internal revenue code, 26 USC 501, but that does not qualify as a history museum under subdivision (f).
3636
3737 Sec. 5. (1) Any county may establish a history museum authority.
3838
3939 (2) A history museum authority is an authority under section 6 of article IX of the state constitution of 1963. A history museum authority is a public corporate body with the power to sue and be sued in any court of this state.
4040
4141 (3) A history museum authority possesses all the powers necessary for carrying out the purposes of its establishment. The enumeration of specific powers in this act must not be construed as a limitation on the general powers of an authority, consistent with its articles.
4242
4343 (4) An authority shall not obtain an interest in real property or participate in the governance of a history museum.
4444
4545 Sec. 7. (1) To initiate the establishment of an authority, articles of incorporation must be prepared by a majority of the members of the county board of commissioners of the county establishing the authority. The articles of incorporation must include all of the following:
4646
4747 (a) The name of the authority.
4848
4949 (b) The size of the board of directors of the authority, which must be composed of an odd number of members and must not exceed 15 members.
5050
5151 (c) The qualifications and terms of office of board members.
5252
5353 (d) The manner of appointing board members.
5454
5555 (e) The manner of filling vacancies in the office of board member.
5656
5757 (f) The purpose of the authority.
5858
5959 (g) The method of dissolution of the authority.
6060
6161 (h) Any other matters considered advisable.
6262
6363 (2) The articles must be adopted and may be amended by an affirmative vote of a majority of the members of the county board of commissioners of the county establishing the authority.
6464
6565 (3) Before the proposed articles or amendments to the articles are adopted, the proposed articles or amendments must be published not less than once in a newspaper generally circulated within the county. The adoption of proposed articles or amendments by the county must be evidenced by an endorsement on the articles or amendments by the clerk of the county.
6666
6767 (4) Upon adoption of the articles or amendments to the articles by the county, the clerk of the county shall file a printed copy of the articles or the amended articles with the secretary of state.
6868
6969 (5) The authority's articles of incorporation, or amendments to the articles, take effect when filed with the secretary of state.
7070
7171 Sec. 9. (1) A vacancy occurs on the board if any of the events described in section 3 of 1846 RS 15, MCL 201.3, occur. Members of the board may be removed by the county board of commissioners for good cause after a public hearing. Vacancies must be filled in the manner as provided for in the authority's articles of incorporation.
7272
7373 (2) A majority of the members of the board constitute a quorum for the purpose of conducting business and exercising the powers of an authority. Official action may be taken by an authority on the vote of a majority of the board members present, unless the authority adopts bylaws requiring a larger number.
7474
7575 (3) A member of the board shall not receive compensation for services as a member of the board but is entitled to reimbursement for reasonable expenses, including expenses for travel previously authorized by the board, incurred in the discharge of the member's duties.
7676
7777 (4) The business that an authority may perform must be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
7878
7979 (5) A writing prepared, owned, or used by an authority in the performance of an official function must be made available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
8080
8181 (6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers necessary.
8282
8383 (7) A board may adopt bylaws to govern its procedures.
8484
8585 Sec. 11. (1) An authority may do 1 or more of the following:
8686
8787 (a) Subject to subsection (2), provide funding pursuant to a contract with 1 or more history museum services providers to support the provision of history museum services.
8888
8989 (b) Provide grant funding to local historical museums.
9090
9191 (c) Levy a tax as provided in section 17.
9292
9393 (d) Enter into contracts incidental or necessary for the accomplishment of the purposes of this act.
9494
9595 (e) Contract for or retain professional services.
9696
9797 (2) If the authority contracts with more than 1 history museum services provider, the authority must obtain a memorandum of understanding between the history museum services providers and distribute the revenue received from the tax levy under section 17 pursuant to the memorandum of understanding.
9898
9999 Sec. 13. (1) Before a vote for a tax levy under section 17 occurs or, if an initial history museum services provider is replaced, before any funds are transferred under section 25 to a replacement history museum services provider, the history museum services provider must enter into a contract with the authority requiring the history museum services provider to use the funds received from the authority exclusively to support the provision of history museum services to a history museum.
100100
101101 (2) In the contract described in this section, an authority may include a provision that funds received by the contracting history museum services provider are not to be used for 1 or more of the following activities:
102102
103103 (a) Establishing or adding to the principle of an endowment fund.
104104
105105 (b) Capital improvements.
106106
107107 (c) Deferred maintenance.
108108
109109 Sec. 15. If a majority of electors in the county voting on the question of a tax as provided in section 17 approve the tax, the contract as provided in section 13 must require the history museum services provider to offer or to exercise its best efforts to cause the history museum to offer preferences or benefits for the residents of the county that must include, at a minimum, all of the following:
110110
111111 (a) Free admittance to the history museum for which the history museum services provider provides history museum services.
112112
113113 (b) Programming designed for schools and student groups.
114114
115115 (c) Programming for senior citizens.
116116
117117 Sec. 17. (1) An authority may levy a tax of not more than 0.2 mills for a period of not more than 10 years on all of the taxable property within the county for the purpose of providing revenue to 1 or more history museum services providers that will be used exclusively for the benefit of 1 or more history museums with respect to which the history museum services providers render services. The authority may levy the tax only if a majority of the electors in the county voting on the tax at an election held on a regular election date as provided in section 641(1) of the Michigan election law, 1954 PA 116, MCL 168.641, approve the tax. The proposal for a tax must be submitted to a vote of the electors of the authority by resolution of the board, and must not be submitted to a vote of the electors before January 1, 2025.
118118
119119 (2) A ballot proposal for a tax must comply with the requirements of section 24f of the general property tax act, 1893 PA 206, MCL 211.24f. A proposal for a tax must not be placed on the ballot unless the proposal is adopted by a resolution of the board and certified by the board not later than 60 days before the election to the county clerk of the county for inclusion on the ballot. The proposal must be certified for inclusion on the ballot at the next eligible election, as specified by the board's resolution.
120120
121121 (3) If a majority of the electors in the county voting on the question of a tax approve the proposal as provided under subsection (1), the tax levy is authorized. Not more than 2 elections may be held in a calendar year on a proposal for a tax authorized under this act.
122122
123123 Sec. 19. (1) The county election commission of the county shall provide ballots for an election for a tax under section 17.
124124
125125 (2) An election for a tax must be conducted by the city and township clerks and election officials of the municipalities located within the county.
126126
127127 Sec. 21. (1) If an election for a tax under section 17 is to be held in conjunction with a general election or a state primary election, the notices of close of registration and election must be published as provided for by the state election laws. Otherwise, the county clerk of the county shall publish the notices of close of registration and election. The notice of close of registration must include the ballot language of the proposal.
128128
129129 (2) The board of county canvassers of the county shall canvass the results of an election for a tax. The board of county canvassers of the county shall make the final canvass of an election for a tax based on the returns of the election inspectors of the municipalities in that county. The board of county canvassers of the county shall certify the results of the election to the board of the authority.
130130
131131 Sec. 23. A tax authorized to be levied by an authority under this act must be levied and collected at the same time and in the same manner as provided by the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
132132
133133 Sec. 25. (1) Subject to subsection (2), within 10 business days after the receipt of the funds from the local property tax collecting unit for the tax levied under this act, the authority shall transfer the funds, less the amount necessary to fund the payment of obligations incurred by the authority in accordance with this act and for other authority programs described in section 11, to the history museum services provider.
134134
135135 (2) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax for the first time, funds must not be transferred to the history museum services provider until all necessary reimbursements under section 27 have been fulfilled.
136136
137137 Sec. 27. (1) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, the county clerk of the county shall charge the authority and the authority shall reimburse the county for the actual costs the county incurs in the election for the tax under section 17.
138138
139139 (2) If a municipality conducts the election and a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, the clerk of that municipality shall charge the contracting history museum services provider and the contracting history museum services provider shall reimburse the municipality for the actual costs the municipality incurs in conducting the election if the election is not held in conjunction with a regularly scheduled election in that municipality.
140140
141141 (3) If a majority of the electors in the county voting on the question of a tax as provided in section 17 approve the tax, in addition to costs reimbursed under subsection (1) or (2), a county or municipality shall charge the contracting history museum services provider and the contracting history museum services provider shall reimburse the county or municipality for actual costs that the county or municipality incurs that are exclusively attributable to an election for a tax authorized under this act.
142142
143143 (4) The actual costs that a county or municipality incurs must be based on the number of hours of work done in conducting the election, the rates of compensation of the workers, and the cost of materials supplied in the election.
144144
145145 Sec. 29. (1) A board shall obtain an annual audit of the authority, and report on the audit and auditing procedures, in the manner provided by sections 6 to 13 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit must also be in accordance with generally accepted government auditing standards as promulgated by the United States General Accounting Office and must satisfy federal regulations relating to federal grant compliance audit requirements.
146146
147147 (2) An authority shall prepare budgets and appropriations acts in the manner provided by sections 14 to 19 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439.
148148
149149 (3) The state treasurer, the attorney general, a prosecuting attorney, a bank, a certified public accountant, a certified public accounting firm, or other person has the same powers, duties, and immunities with respect to the authority as provided for local units in sections 6 to 20 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.440.
150150
151151 (4) If an authority ends a fiscal year in a deficit condition, the authority shall file a financial plan to correct the deficit condition in the same manner as provided in section 21(2) of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.921.
152152
153153 (5) The board may authorize funds of the authority to be invested or deposited on a temporary basis before being transferred under section 25 in any investment or depository authorized under section 1 of 1943 PA 20, MCL 129.91.
154154
155155 Enacting section 1. This act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
156156
157157 (a) House Bill No. 5817.
158158
159159 (b) House Bill No. 5818.