Bill
HB 4679
Permits public improvements under the Revenue Bond Act to provide free services to land bank fast track authorities, reducing costs for land banks while leaving local discretion.
Status and key dates
- Enacted as Public Act 205 of 2024; approved by the Governor Jan 16, 2025; filed with Secretary of State Jan 16, 2025.
- Effective date: April 2, 2025.
- Statutory change: amends section 18 of the Revenue Bond Act of 1933 (MCL 141.118).
- Related legislation: considered alongside HB 4675 (Land Bank Fast Track Act amendments).
Purpose
- To permit a “public improvement” financed or operated under the Revenue Bond Act to furnish free services to a land bank fast track authority (created under the Land Bank Fast Track Act, 2003 PA 258). The change clarifies that land bank authorities may receive certain public services without charge.
Key provisions
- Adds a new exception to MCL 141.118(1–2): subsection (3) states that a public improvement may provide a free service to a land bank fast track authority.
- Keeps the existing exception for hospitals/health care facilities (which may provide indigent care free or at reduced rates).
- Does not mandate free service—rather, it authorizes public improvements to supply free service to land bank fast track authorities.
Who and what is affected
- Directly affected: land bank fast track authorities established under 2003 PA 258 (MCL 124.751–124.774).
- Potentially affected public improvements: facilities listed or governed under the Revenue Bond Act (e.g., stormwater and sewage systems, water supply systems, transportation systems, parking facilities, hospitals, etc.), to the extent those improvements provide services to land banks.
- Local governments and public utilities that operate or charge for public improvements may see reduced billings or revenue if they elect to provide free services to land banks. State Land Bank Authority and local land banks would benefit from lower operating costs.
Fiscal and policy implications
- Fiscal analyses in committee reports: likely positive fiscal impact for the State Land Bank Authority (lower costs) and mixed effects for local governments (reduced fee/revenue collections). Overall statewide impact was assessed as likely near net-zero because funds shift among government units. The extent of impacts depends on how broadly local entities use the authorization.
- The change is permissive—local entities retain discretion whether to provide free services.
Background / rationale
- The amendment responds to conflicting court rulings about whether land banks must pay stormwater/sewer user charges (notably litigation arising in the City of Highland Park). Supporters argued land banks, which often acquire tax-delinquent properties and have limited funding, should not be saddled with user-fee liabilities that impede their mission. Opponents raised concerns about ensuring fees are borne by the eventual property owner or transferee.
Practical effect
- HB 4679 clarifies legal authority for public improvements to waive charges for services to land bank fast track authorities, removing a statutory barrier that had been interpreted to require charging the “reasonable cost and value” of such services to public corporations. It does not itself change the Land Bank Fast Track Act’s tax/fee exemptions (those changes were addressed in companion HB 4675).
Compiled from official sources — confirm details with the bill’s official record.
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