SENATE BILL No. 1005

 

 

February 19, 2004, Introduced by Senator SWITALSKI and referred to the Committee on Local, Urban and State Affairs.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to provide for an authority to manage and operate                          

                                                                                

    certain city and village water and sewer systems; and to provide            

                                                                                

    for the appointment of members to the authority.                            

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  As used in this act:                                               

                                                                                

2       (a) "Authority" means an authority created under this act.                  

                                                                                

3       (b) "City" means a city chartered under the home rule city                  

                                                                                

4   act, 1909 PA 279, MCL 117.1 to 117.38.                                      

                                                                                

5       (c) "Qualified city" means a city with a population of                      

                                                                                

6   750,000 or more that is a member of an authority created under              

                                                                                

7   this act.                                                                   

                                                                                

8       (d) "Qualified county" means a county with a population of                  

                                                                                

9   750,000 or more that is a member of an authority created under              

                                                                                

10  this act.                                                                   

                                                                                

11      (e) "Village" means a village incorporated under the home                   

                                                                                


                                                                                

1   rule village act, 1909 PA 278, MCL 78.1 to 78.26.                           

                                                                                

2       (f) "Water or sewer system" or "system" means a water supply                

                                                                                

3   facility or sewerage services facility, or both, that provides              

                                                                                

4   water or sewerage service to more than 20% of the population of             

                                                                                

5   this state.                                                                 

                                                                                

6       Sec. 2.  (1) A city or village that owns a water or sewer                   

                                                                                

7   system shall establish an authority to provide review and                   

                                                                                

8   oversight of the management and operation of the system as                  

                                                                                

9   provided under this act.                                                    

                                                                                

10      (2) Not more than 30 days after the effective date of this                  

                                                                                

11  act, each qualified county and city or village that is a member             

                                                                                

12  of an authority shall make appointments to the authority as                 

                                                                                

13  provided under this section.                                                

                                                                                

14      (3) The authority created under this act shall consist of the               

                                                                                

15  following members:                                                          

                                                                                

16      (a) Four persons shall be appointed to represent the city or                

                                                                                

17  village that owns and operates the water or sewer system.  The              

                                                                                

18  appointment under this subsection shall be made by the mayor of             

                                                                                

19  the city, with the advice and consent of the city's governing               

                                                                                

20  body.                                                                       

                                                                                

21      (b) One person shall be appointed to represent each qualified               

                                                                                

22  county that does not have a qualified city located within the               

                                                                                

23  county.  The appointment under this subsection shall be made by             

                                                                                

24  the elected county executive.  If the county does not have an               

                                                                                

25  elected county executive, the appointment under this subsection             

                                                                                

26  shall be made by the county board of commissioners.                         

                                                                                

27      (c) If a qualified county has a qualified city within the                   


                                                                                

1   county, 1 person who does not live or work within the qualified             

                                                                                

2   city shall be appointed to represent the county.  The appointment           

                                                                                

3   under this subsection shall be made by the majority vote of the             

                                                                                

4   serving members on the county board of commissioners who do not             

                                                                                

5   live or work within the qualified city.                                     

                                                                                

6       (4) A person appointed under this section shall serve for a                 

                                                                                

7   term of 4 years, or until a successor is appointed, whichever is            

                                                                                

8   later.  A successor to a member shall be appointed in the same              

                                                                                

9   manner and shall serve for a term of 4 years, or until a                    

                                                                                

10  successor is appointed, whichever is later.  A person may be                

                                                                                

11  reappointed to the authority.  A person appointed to the                    

                                                                                

12  authority may be replaced by the appointing member at any time.             

                                                                                

13      Sec. 3.  (1) A majority of members of the authority                         

                                                                                

14  constitute a quorum for the transaction of business.                        

                                                                                

15      (2) The person appointed to the authority shall have 1 vote.                

                                                                                

16      (3) The first meeting of the authority shall be held not more               

                                                                                

17  than 45 days after the effective date of this act.                          

                                                                                

18      (4) The authority shall elect a chairperson and other                       

                                                                                

19  officers as the authority considers necessary.  The authority               

                                                                                

20  shall adopt bylaws and rules to govern the operation of the                 

                                                                                

21  authority.                                                                  

                                                                                

22      (5) After its first meeting, the authority shall meet not                   

                                                                                

23  less than quarterly and at such other times as determined by the            

                                                                                

24  authority.                                                                  

                                                                                

25      Sec. 4.  (1) Persons appointed to the authority are public                  

                                                                                

26  servants under 1968 PA 317, MCL 15.321 to 15.330, and are subject           

                                                                                

27  to any other applicable law with respect to conflicts of                    


                                                                                

1   interest.                                                                   

                                                                                

2       (2) An authority shall establish policies and procedures                    

                                                                                

3   requiring periodic disclosure by persons appointed to the                   

                                                                                

4   authority of relationships which may give rise to conflicts of              

                                                                                

5   interest.                                                                   

                                                                                

6       Sec. 5.  (1) An authority shall establish an ethics manual                  

                                                                                

7   governing the conducting of system business and the conduct of              

                                                                                

8   employees of the system.                                                    

                                                                                

9       (2) An authority shall establish policies under this section                

                                                                                

10  that are no less stringent than those provided for public                   

                                                                                

11  officers and employees by 1973 PA 196, MCL 15.341 to 15.348.  The           

                                                                                

12  policies established under this section shall include compliance            

                                                                                

13  by each member of the authority and employees of the system who             

                                                                                

14  regularly exercise significant discretion over the award and                

                                                                                

15  management of authority procurements with policies governing all            

                                                                                

16  of the following:                                                           

                                                                                

17      (a) Immediate disclosure of the existence and nature of any                 

                                                                                

18  financial interest that would reasonably be expected to create a            

                                                                                

19  conflict of interest.                                                       

                                                                                

20      (b) Withdrawal by a member or employee from participation in,               

                                                                                

21  discussion of, or evaluation of any recommendation or decision              

                                                                                

22  involving procurement involving the water or sewer system that              

                                                                                

23  would reasonably be expected to create a conflict of interest for           

                                                                                

24  that member or employee.