HB 4118 — Drains: financing; special assessments; provide for levy against DNR lands. Amends secs. 151, 154, 280, 468 & 520 of 1956 PA 40 (MCL 280.151 et seq.).

HB-4118, As Passed House, May 13, 2025 SUBSTITUTE FOR HOUSE BILL NO.

TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 Provided, That However, the commissioner may let the drain in sections or as a whole.

He shall also apportion the per cent of benefits to accrue to any (ii) Any city or village, the county road commission, or the state transportation department, on the basis of benefits to or the improvement of a city or village street, a county road, or a state TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 highway, respectively.

If the drain commissioner directly or indirectly maintains an official internet presence, the drain commissioner shall post the advertisement for the receipt of bids on a portion of the website that is fully accessible to the public TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 at least 10 days before, and shall maintain the posting through, the date set for the receipt of bids.

If the drain commissioner determines that the drain is necessary for the public health and that the whole cost of the drain, except that part which TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 may be apportioned for benefits to county roads or state highways, shall be apportioned to municipalities, then mailing of individual notices to persons owning land within the drainage district as provided in this subsection is not required.

(d) For notice mailed to a person under subsection (4), the estimated percentage and total dollar amount apportioned to that person's land, the estimated annual dollar amount apportioned to TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 that person's land, and the estimated project assessment duration.

(7) If the drain commissioner directly or indirectly maintains TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 an official internet presence, the drain commissioner shall post the information described in subsection (6)(a) to (c), and (e) to (h), and (i)(i) to (iv) on a portion of the website that is fully accessible to the public and shall maintain the posting through the date of the meeting to review the apportionment of benefits.

If the contracts on which the computation was based are not executed and new contracts are let at a higher price, the drain commissioner shall correct the computation and, after giving notice as provided in subsections (3) to (7), hold a TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 new review of the apportionment.

If the director of the state transportation department instead desires to have the apportionment of benefits reviewed by the director of the department of agriculture and rural development, the director of the state TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 transportation department, within 10 days after receiving the notice under this subsection, shall file with the drain commissioner an objection to the apportionment.

The drain commissioner shall notify the director of the department of natural resources and the director of the department of agriculture and TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 rural development of the date, time, and place for a review of the apportionment.

If bonds or other evidences of indebtedness are issued pursuant to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, to refund the outstanding indebtedness of a drain district, the governing body of the drain district drain commissioner shall provide, subject to the requirements of the revised municipal finance act, 2001 PA 34, MCL 141.2101 to TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 141.2821, for such additional levies of assessments prior to before the maturity or mandatory redemption of the refunding obligations as necessary to prevent default in the payment of interest on the obligations, and the maintenance of a sinking fund for their retirement.

(3) An additional assessment shall not be levied under TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 subsection (1) or collected for the purpose of paying to pay the principal or interest upon any bonds or obligations which that have been held to be invalid.

Before a tentative apportionment is made, the drainage board shall designate the area to be served by the drain project, which may include all of the area in a public TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 corporation to be assessed, and may divide the drain into sections or parts for purposes of apportionment or construction.

The percentage of the cost apportioned to public corporations in each county shall then be apportioned by the drain commissioner among public corporations TMV H01389'25 (H-1)(H-1)_HB4118_APH_1 srtd2i0xcrou 1 to be assessed in the county, and that apportionment shall be filed with the secretary of the drainage board.

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