§ 17.2. Granting of Public Utility Franchises.

(a)

Public utility franchises and all renewals, extensions thereof and amendments shall be granted by ordinance only. No exclusive franchise shall ever be granted. No franchise shall be granted for a longer period than thirty years.

(b)

No franchise ordinance which is not subject to revocation at the will of the Council shall be enacted nor become operative until the same shall have first been referred to the people at a regular or special election and received the affirmative vote of three-fifths of the electors voting thereon. No such franchise ordinance shall be approved by the Council for referral to the electorate before thirty days after application has been filed with the Council nor until a public hearing has been held, nor until the grantee named therein has filed with the Clerk his unconditional acceptance of all terms of such franchise. No special election for such purpose shall be ordered by the Council unless the expense of holding such election as determined by the Council shall have first been paid to the Treasurer by the proposed grantee.

(c)

A franchise ordinance or renewal or extension or amendment which is subject to revocation at the will of the Council may be enacted by the Council without referral to the voters but shall not be enacted unless the form in which it is finally enacted shall have been on file in the office of the Clerk for public inspection for at least four weeks after publication of a notice that such ordinance is so on file.

State law reference

Submittal to electors required if franchise irrevocable, Mich. Const. 1963, art. VII, § 25; expense of special election to be paid by grantee, MCL 117.5(i); franchise limited to 30 years, Mich. Const. 1963, art. VII, § 30.