Timothy J. Tornga

Our July 2012 issue reported that in the case of Department of Environmental Quality v. Worth Township (May 17, 2012), the Michigan Supreme Court held that pursuant to Part 31 of the Natural Resources and Environmental Protection Act (“NREPA”) a municipality can be held responsible for, and be required to prevent the discharge of raw sewage originating from private septic systems within its borders. The Michigan Supreme Court remanded the case to the Michigan Court of Appeals, however, for a determination as to whether a Department of Environmental Quality directive and court order compelling remediation efforts constitute an unfunded state mandate in violation of the so-called Headlee Amendment, which prohibits the State from imposing unfunded mandates on local units of government.

In the case of City of Detroit v. Michigan (July 10, 2012), the U.S. District Court for the Eastern District of Michigan held that the Michigan Uniform Video Services Local Franchise Act (the “Uniform Franchise Act”) did not violate the Michigan Constitution, but that a key provision of the Act was preempted by the federal Cable Communication Policy Act (the “Federal Cable Act”).

Since 1980, the Emergency Municipal Loan Act, MCL 141.931 et seq., (the “Emergency Loan Act”) has authorized the State of Michigan’s Local Emergency Financial Assistance Loan Board (the “Emergency Loan Board”) to make emergency loans to financially-distressed counties, cities, villages, and townships under specified circumstances. Generally, emergency loans under the Emergency Loan Act are made from state surplus funds and, under most circumstances, the obligation to repay an emergency loan is a general obligation of the recipient municipality. On August 1, 2012, Governor Rick Snyder signed Public Act 284 into law, with immediate effect, to expand the eligibility criteria, to increase the amount of State funding for emergency loans, and to extend the maximum term of emergency loans from 20 years to 30 years. In addition, school districts, which were not previously eligible for emergency loans from the Emergency Loan Board, were added to the definition of “municipality” for a seven year period commencing retroactively on October 1, 2011, and continuing until September 30, 2018.

Our firm will host its annual hospitality reception at the Marriott Renaissance Center, Suite 6812, on Tuesday, January 22, from 4:00 to 8:30 p.m. If you will be attending the Conference, we invite you to visit us at our hospitality reception for snacks and refreshments. We look forward to seeing you.