Bill Summary – FastDemocracy

Legislative Analysis
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ALLOW EMERGENCY SERVICE AUTHORITIES
                                                                              http://www.house.mi.gov/hfa
TO SERVE PARTIAL MUNICIPALITIES
                                                                              Analysis available at
House Bill 4360 (H-1) as passed by the Senate                  http://www.legislature.mi.gov
Sponsor: Rep. Felicia Brabec
House Committee: Local Government and Municipal Finance
Senate Committee: Local Government
Complete to 6-12-24
                                                       (Enacted as Public Act 64 of 2024)
SUMMARY:
       House Bill 4360 would amend 1988 PA 57, which allows two or more counties, cities, villages,
       or townships to incorporate an authority to provide them with emergency services such as fire
       or police protection or emergency medical services. The act allows such an authority to levy a
       tax on all property within its boundaries to fund its operations, with voter approval. A
       municipality may also levy a tax on property within its boundaries to fund or fulfill a
       contractual obligation with an emergency service authority, as long as the tax adheres to all
       charter, statutory, and constitutional requirements.
        Currently, an authority created under the act must have jurisdiction over all territory located
        within the incorporating municipalities.
        The bill would allow incorporating municipalities to determine the territory to be served by an
        emergency service authority, which would remain limited to territory inside the municipalities
        but could include portions of municipalities.
        If an emergency service authority serves a partial municipality, it could levy a tax on the
        property within its jurisdiction upon the approval of the voters residing within its boundaries.
        However, such an authority could not be funded through a tax levied by an incorporating
        municipality.
        The bill would also require the articles of incorporation for any emergency service authority to
        be published on the website of each incorporating municipality, instead of (as currently) in a
        newspaper. If any of the municipalities did not have a website, then the articles of incorporation
        would have to be published in the clerk’s office of each municipality.
        MCL 124.602
BRIEF DISCUSSION:
        According to committee testimony, some municipalities receive emergency service coverage,
        particularly fire services, from multiple nearby local governments in order to maximize
        efficiency and reduce response times. However, these emergency service departments
        currently cannot become authorities under 1988 PA 57, and thus levy a tax to fund their
        operations, while serving only a portion of a municipality. Supporters of House Bill 4360 argue
        that the bill addresses this issue, as emergency service authorities could continue providing
House Fiscal Agency                                                                             Page 1 of 2
       coverage to nearby local governments in areas where they are needed while being able to
       receive funding from all the residents that they serve.
SENATE ACTION:
       An amendment adopted on the Senate floor added a provision stating that an emergency service
       authority serving a partial municipality could be funded through a voter-approved tax levied
       by the authority on property within its jurisdiction, but not through a tax levied by one or more
       of the incorporating municipalities.
FISCAL IMPACT:
       The bill would have no direct fiscal impact on local units of government or the state. The
       provisions of the bill are permissive. Any change to how two or more municipalities
       incorporate an authority for providing emergency services and the territory covered by the
       emergency services would be at the discretion of the incorporating municipalities.
POSITIONS:
       Representatives of the following entities testified in support of the bill (6-14-23):
          • Michigan Municipal League
          • Saline Area Fire Department
       The following entities indicated support for the bill (6-21-23):
          • City of Grand Rapids
          • Michigan Association of Counties
          • Michigan Townships Association
                                                           Legislative Analyst: Holly Kuhn
                                                                Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                     HB 4360 (H-1) as passed by the Senate   Page 2 of 2
Statutes affected: 
Substitute (H-1): 124.602
House Introduced Bill: 124.602
As Passed by the House: 124.602
As Passed by the Senate: 124.602
House Concurred Bill: 124.602
Public Act: 124.602
House Enrolled Bill: 124.602