Here is the latest Michigan news from The Associated Press at 2:40 p.m. EDT

SAGINAW, Mich. (AP) — A Michigan city’s policy of chalking tires to enforce parking restrictions has been declared unconstitutional. A federal appeals court says chalking tires in Saginaw to keep track of parked cars is an unreasonable search and has no role in maintaining public safety. The decision creates a new legal precedent in Michigan, Ohio, Kentucky and Tennessee. Saginaw marks tires with chalk to keep track of how long a vehicle is parked. Alison Taylor sued Saginaw after receiving 15 parking tickets.

LANSING, Mich. (AP) — A major faith-based foster care and adoption contractor for the state of Michigan is reversing its policy and will place children with same-sex couples to comply with a legal settlement. Bethany Christian Services and the state confirmed the change Monday. Bethany Christian Services says while it is “disappointed” with how the settlement has been implemented, it will nonetheless reverse its policy so it continues foster care and adoption work for the state.

LANSING, Mich. (AP) — Michigan Attorney General Dana Nessel is establishing a special unit in her office to investigate payroll fraud and the misclassification of workers by “shady” businesses. The Democrat, who announced the initiative Monday, says payroll and tax fraud have gone under the radar for far too long. She says her office will be “as aggressive as possible” cracking down on businesses that cheat workers of wages and dodge taxes.

PETOSKEY, Mich. (AP) — A resort community in northern Michigan is being sued again over membership policies that are related to religion. Bay View Association last year got rid of a rule that requires homeowners to be of “Christian persuasion.” But a lawsuit filed last week in federal court targets the new policy, which says applicants must “respect the principles of the United Methodist Church.” The rule also says membership applicants must support “Christian values and traditions” of the Bay View Association.