QUALIFIED CITY; MODIFY DEFINITION                                                                                                   H.B. 5248 (H-1):

                                                                                                                                                          SUMMARY OF HOUSE-PASSED BILL

                                                                                                                                                                                                                IN COMMITTEE

House Bill 5248 (Substitute H-1 as passed by the House)

Sponsor:   Representative Richard Steenland

House Committee:   Local Government and Municipal Finance

Senate Committee:   Local Government

Date Completed:   11-9-22

CONTENT

The bill would amend Public Act 33 of 1951, which provides for police and fire protection for townships, adjoining townships, incorporated villages, and qualified cities, to modify the definition of "qualified city".

Currently, a qualified city means any of the following:

 --       A city with a population of less than 15,500.

 --       A city with a population of 15,500 or more and less than 70,000 located in a county with a population of more than 180,000 and less than 215,000, if the question of raising money by special assessment and the amount of the special assessment to be levied annually is approved by a majority of the electors in the special assessment district.

 --       A city that is located in a county with a population of more than 1,500,000 and that city contains a qualified airport, if the question of raising money by special assessment and the amount of the special assessment to be levied annually is approved by a majority of the electors in the special assessment district.

The bill would modify the definition of "qualified city" to mean either of the following:

 --       A city with a population of less than 15,500.

 --       A city with a population of 15,500 or more if the question of raising money by special assessment and the amount of the special assessment to be levied annually were approved by a majority of the electors in the special assessment district.

MCL 41.810                                                                                                                                 Legislative Analyst:   Olivia Ponte

FISCAL IMPACT

The bill would have no immediate fiscal impact on State or local government. The bill would expand the number of qualified cities by eliminating certain limits, particularly with respect to population. As a result, the bill would allow more local units to levy special assessments for police and fire service, although statute requires any special assessment to be approved by a majority of voters in the special assessment district. Any fiscal impact would depend on the number of cities that adopted special assessments and the amount of the assessments. Any assessments would increase the amount of local unit revenue dedicated to police and fire services, which could either increase funding for those services and/or offset revenue from other sources.