HB-4998, As Passed Senate, June 23, 2009
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4998
A bill to amend 2008 PA 554, entitled
"Regional convention facility authority act,"
by amending sections 5, 7, 11, and 19 (MCL 141.1355, 141.1357,
141.1361, and 141.1369).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. As used in this act:
(a) "Authority" means a regional convention facility authority
created under section 7.
(b) "Board" means the board of directors of an authority.
(c) "Convention facility" means all or any part of, or any
combination of, a convention hall, auditorium, arena, meeting
rooms, exhibition area, and related adjacent public areas that are
generally available to the public for lease on a short-term basis
for holding conventions, meetings, exhibits, and similar events,
together with real or personal property, and easements above, on,
or under the surface of real or personal property, used or intended
to be used for holding conventions, meetings, exhibits, and similar
events, together with appurtenant property, including covered
walkways, parking lots, or structures, necessary and convenient for
use in connection with the convention facility. Convention facility
includes an adjacent arena with a seating capacity not exceeding
10,000. Convention facility does not include an adjacent arena with
a seating capacity exceeding 10,000.
(d) "Develop" means to plan, acquire, construct, improve,
enlarge, maintain, renew, renovate, repair, replace, lease, equip,
furnish, market, promote, manage, or operate.
(e) "Fiscal year" means an annual period that begins on July 1
and ends on June 30 or the fiscal year for an authority established
by the board of the authority.
(f) "Legislative body" means the elected body of a local
government possessing the legislative power of the local
government.
(g) "Local chief executive officer" means the mayor or city
manager of a city or the county executive of a county or, if a
county does not have a county executive, the chairperson of the
county board of commissioners.
(h) "Local government" means a county or city. For purposes of
sections 17(1)(t) and 19 other than section 19(1)(f), local
government includes a building authority or downtown development
authority created by a county or city under 1975 PA 197, MCL
125.1651 to 125.1681.
(i) "Qualified city" means a city with a population of more
than 700,000 according to the most recent decennial census that
contains a qualified convention facility.
(j) "Qualified county" means a county that contains a
qualified city.
(k) "Qualified convention facility" means a publicly owned
convention facility with not less than 600,000 square feet of
usable exhibition area and that is located in a qualified city.
(l) "Qualified metropolitan area" means a geographic area of
this state that includes a qualified city, a qualified county, and
the 2 counties bordering the qualified county with the largest
populations according to the most recent decennial census.
(m) "Transfer date" means the earlier of the following:
(i) The date 90 days after the creation of an authority under
section 7 on which the right, title, interest, ownership, and
control of a qualified convention facility are conveyed and
transferred from a qualified city to an authority, only if the
transfer is not disapproved as provided under section 19(1).
(ii) The effective date of a lease agreement providing for the
lease of a qualified convention facility to an authority created
under section 7 as provided under section 19(1).
Sec. 7. (1) For an area of this state that is a qualified
metropolitan area on the effective date of this act, an authority
is created for the qualified metropolitan area on the effective
date of this act. For an area of this state that becomes a
qualified metropolitan area after the effective date of this act,
an authority is created for the qualified metropolitan area on the
date the area became a qualified metropolitan area. An authority
created under this section shall be a municipal public body
corporate and politic and a metropolitan authority authorized by
section 27 of article VII of the state constitution of 1963 and
shall possess the powers, duties, and jurisdictions vested in the
authority under this act and other laws. The authority shall not be
an authority or agency of this state. The name of an authority
created under this section shall include the name of the qualified
city located within the qualified metropolitan area and the phrase
"regional convention facility authority".
(2) Before the transfer date, an authority may organize and
exercise all powers, duties, and jurisdictions granted under this
act, except the powers, duties, and jurisdictions related to the
management , and operation ,
and development of a qualified
convention facility. On the transfer date, an authority is vested
with the additional powers, duties, and jurisdictions under this
act related to the management, operation, and development of a
qualified convention facility.
(3) It is the intent of the legislature that the transfer or
lease of a qualified convention facility from a qualified city to
an authority under this act and any payment required under section
19(9) represents at least a fair exchange of value for value for
the qualified city considering, without limitation, all of the
following:
(a) The net value of the qualified convention facility prior
to the transfer date after deducting deferred maintenance
obligations, operational deficits, repair or expansion needs, and
other liabilities related to the qualified convention facility that
are obligations of the qualified city.
(b) The benefits to the qualified city resulting from the
transfer or lease of the qualified convention facility to the
authority, including, but not limited to, assumption or payment of
debt obligations of the qualified city by the authority, reductions
in costs, liabilities or other obligations of the qualified city,
additional revenues or other money not otherwise available for the
qualified convention facility, and the positive economic impact to
the qualified city likely to be generated by the operation of the
qualified convention facility by the authority or any expansion or
improvement of the qualified convention facility by the authority,
especially economic impact resulting in the creation or retention
of jobs and capital investment.
(c) Any bond proceeds, debt service payments, or other money
payable directly or indirectly to the qualified city after the
transfer date under this act, the state convention facility
development act, 1985 PA 106, MCL 207.621 to 207.640, or the health
and safety fund act, 1987 PA 264, MCL 141.471 to 141.479.
(4) The property of an authority created under this act is
public property devoted to an essential public and governmental
purpose. Income of the authority is for a public and governmental
purpose.
(5) Except as otherwise provided in this subsection, the
property of the authority created under this act and its income,
activities, and operations are exempt from all taxes and special
assessments of this state or a political subdivision of this state.
Property of an authority and its income, activities, and operations
that are leased to private persons are not exempt from any tax or
special assessment of this state or a political subdivision of this
state. Property of an authority is exempt from any ad valorem
property taxes levied under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, or other law of this state authorizing
the taxation of real or personal property. An authority is an
entity of government for purposes of section 4a(1)(a) of the
general sales tax act, 1933 PA 167, MCL 205.54a, and section 4h of
the use tax act, 1937 PA 94, MCL 205.94h.
(6) The validity of the creation of an authority shall be
conclusively presumed unless questioned in an original action filed
in the court of appeals within 60 days after the creation of the
authority under this section. The court of appeals has original
jurisdiction to hear an action under this subsection. The court
shall hear the action in an expedited manner.
(7) Except as otherwise provided in subsection (8), the
validity of the transfer or lease of a qualified convention
facility to an authority under this act shall be conclusively
presumed unless questioned in an original action filed in the court
of appeals within 30 days after the effective date of the
amendatory act that added this subsection, or for a metropolitan
area that becomes a qualified metropolitan area after the effective
date of the amendatory act that added this subsection, 75 days
after the date on which the metropolitan area becomes a qualified
metropolitan area. The court of appeals has original jurisdiction
to hear an action under this subsection. The court shall hear the
action in an expedited manner.
(8) The attorney general of this state has authority to
enforce the lease agreement between the authority and the qualified
city and also has the authority to enforce the provisions of this
act.
Sec. 11. (1) Within not more than 30 days following
appointment of the members of a board, the board shall hold its
first meeting at a date and time determined by the individual
appointed under section 9(1)(a). The board members shall elect from
among the board members an individual to serve as chairperson of
the board and may elect other officers as the board considers
necessary. All officers shall be elected annually by the board. All
actions of the board under this act shall require the unanimous
consent of all serving members of the board, excluding any members
prohibited from voting on an action due to a conflict of interest
under section 15.
(2) The business of the board shall be conducted at a public
meeting of the board held in compliance with the open meetings act,
1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date,
and place of the meeting shall be given in the manner required by
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. A board
shall adopt bylaws consistent with the open meetings act, 1976 PA
267, MCL 15.261 to 15.275, governing its procedures and the holding
of meetings. After organization, a board shall adopt a schedule of
regular meetings and adopt a regular meeting date, place, and time.
A special meeting of the board may be called by the chairperson of
the board or as provided in bylaws adopted by the board. Notice of
a special meeting shall be given in the manner required by the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(3) A board shall keep a written or printed record of each
meeting, which record and any other document or record prepared,
owned, used, in the possession of, or retained by the authority in
the performance of an official function shall be made available to
the public in compliance with the freedom of information act, 1976
PA 442, MCL 15.231 to 15.246.
(4) A board shall provide for a system of accounts for the
authority to conform to a uniform system required by law and for
the auditing of the accounts of an authority. The board shall
obtain an annual audit of the authority by an independent certified
public accountant and report on the audit and auditing procedures
in the manner provided by sections 6 to 13 of the uniform budgeting
and accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit
also shall be in accordance with generally accepted government
auditing standards and shall satisfy federal regulations relating
to federal grant compliance audit requirements.
(5) Before the beginning of each fiscal year, a board shall
cause to be prepared a budget for the authority containing an
itemized statement of the estimated current operational expenses
and the expenses for capital outlay including funds for the
operation and development of convention facilities under the
jurisdiction of the board, including the amount necessary to pay
the principal and interest of any outstanding bonds or other
obligations of the authority maturing during the next fiscal year
or that have previously matured and are unpaid, and an estimate of
the estimated revenue of the authority from all sources for the
next fiscal year. The board shall adopt a budget as for the fiscal
year in accordance with the uniform budget and accounting act, 1968
PA 2, MCL 141.421 to 141.440a.
(6) A board shall provide for the purchase of, the contracting
for, and the providing of supplies, materials, services, insurance,
utilities, third-party financing, equipment, printing, and all
other items as needed by the authority to efficiently and
effectively meet the needs of the authority using competitive
procurement methods to secure the best value for the authority. The
board shall make all discretionary decisions concerning the
solicitation, award, amendment, cancellation, and appeal of
authority contracts. A board shall provide for the acquisition of
professional services, including, but not limited to, architectural
services, engineering services, surveying services, accounting
services, services related to the issuance of bonds, and legal
services, in accordance with a competitive, qualifications-based
selection process and procedure for the type of professional
service required by the authority. An authority is not required to
use competitive bidding when acquiring proprietary services,
equipment, or information available from a single source, such as a
software license agreement. An authority may enter into a
cooperative purchasing agreement with the federal government, this
state, or other public entities for the purchase of goods or
services necessary for the authority. An authority may enter into
lease purchases or installment purchases for periods not exceeding
the anticipated useful life of the items purchased unless otherwise
prohibited by law. In all purchases made by the authority, all
other things being equal, preference shall be given first to
products manufactured or services offered by firms based in the
authority's qualified metropolitan area, including, but not limited
to, each qualified city and qualified county in the qualified
metropolitan area, and next to firms based in this state, if
consistent with state and federal law. The authority shall actively
solicit lists of potential bidders for authority contracts from
each qualified city and each county in the qualified metropolitan
area. Except as otherwise provided in this section, the authority
shall utilize competitive solicitation for all purchases authorized
under this act unless 1 or more of the following apply:
(a) Procurement of goods or services is necessary for the
imminent protection of public health or safety or to mitigate an
imminent threat to public health or safety, as determined by the
authority or its chief executive officer.
(b) Procurement of goods or services is for emergency repair
or construction caused by unforeseen circumstances when the repair
or construction is necessary to protect life or property.
(c) Procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) Procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) Procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
10.89.
(f) Procurement of goods or services is under a cooperative
purchasing agreement with the federal government, this state, or
more public entities for the purchase of goods and services
necessary at fair and reasonable prices using a competitive
procurement method for authority operations.
(g) The value of the procurement is less than $5,000.00, and
the board has established policies or procedures to ensure that
goods or services with a value of less than $5,000.00 are purchased
by the board at fair and reasonable prices. Procurement of goods or
services with a value of less than $5,000.00 may be negotiated with
or without using competitive bidding as authorized in a procurement
policy adopted by the board.
(7) A board may not enter into any cost plus construction
contract unless all of the following apply:
(a) The contract cost is less than $50,000.00.
(b) The contract is for emergency repair or construction
caused by unforeseen circumstances.
(c) The repair or construction is necessary to protect life or
property.
(d) The contract complies with requirements of applicable
state or federal law.
(8) The board shall adopt a procurement policy consistent with
the requirements of this act and federal and state laws relating to
procurement. The board shall adopt a policy to govern the control,
supervision, management, and oversight of each contract to which
the authority is a party. The board shall adopt procedures to
monitor the performance of each contract including, but not limited
to, a contract that exists on transfer date, to assure execution of
the contract within the budget and time periods provided under the
contract. The monitoring shall include oversight as to whether the
contract is being performed in compliance with the terms of the
contract, this act, and federal and state law procurement law. The
chief executive officer or other authorized employee of an
authority shall not sign or execute a contract until the contract
is approved by the board. A board for an authority shall establish
policies to ensure that the authority does not enter into a
procurement or employment contract with a person who has been
convicted of a criminal offense incident to the application for or
performance of a contract or subcontract with a governmental entity
in this state. A board for an authority shall establish policies to
ensure that the authority does not enter into a procurement or
employment contract with a person who has been convicted of a
criminal offense, or held liable in a civil proceeding, that
negatively reflects on the person's business integrity, based on a
finding of embezzlement, theft, forgery, bribery, falsification or
destruction of records, receiving stolen property, or violation of
state or federal antitrust statutes, or similar laws. The authority
shall prepare an annual report to the board, the qualified city,
and each county within the qualified metropolitan area detailing
all contracts entered into by the authority during the immediately
preceding fiscal year. As used in this subsection, if a person is a
business entity, person includes affiliates, subsidiaries,
officers, directors, managerial employees, and any person who,
directly or indirectly, holds a pecuniary interest in that business
entity of 20% or more.
(9) A board may employ personnel as the board considers
necessary to assist the board in performing the power, duties, and
jurisdictions of the authority, including, but not limited to,
employment of a chief executive officer as authorized under section
13.
(10) A board shall establish policies to assure that the board
and the authority shall not do either of the following:
(a) Fail or refuse to hire, recruit, or promote; demote;
discharge; or otherwise discriminate against a person with respect
to employment, compensation, or a term, condition, or privilege of
employment, or a contract with the authority because of religion,
race, color, national origin, age, sex, sexual orientation, height,
weight, marital status, partisan considerations, or a disability or
genetic information that is unrelated to the person's ability to
perform the duties of a particular job, position, or contract.
(b) Limit, segregate, or classify an employee, a contractor,
or applicant for employment or a contract in a way that deprives or
tends to deprive the employee, contractor, or applicant of an
employment opportunity or otherwise adversely affects the status of
an employee, contractor, or applicant because of religion, race,
color, national origin, age, sex, sexual orientation, height,
weight, marital status, partisan considerations, or a disability or
genetic information that is unrelated to the person's ability to
perform the duties of a particular job or position.
(11) Not less than 60 days after the transfer date, an
authority shall establish a citizens advisory council to provide
public input and advise the board on the impact of redevelopment
and management of a qualified convention facility upon the
qualified city and each county within the qualified metropolitan
area. The advisory council shall consist of 8 members, including 1
resident of the qualified city appointed by the local chief
executive officer of the qualified city, 1 resident of the
qualified city appointed by the legislative body of the qualified
city, 1 county resident appointed as a council member by each local
chief executive officer for each county within the qualified
metropolitan area, and 1 county resident appointed as a council
member by the legislative body for each county within the qualified
metropolitan area. An elected state or local official is not
eligible to serve as a member of the citizens advisory council.
Members of the advisory council shall be appointed for terms of 4
years. A vacancy on the advisory council arising other than by
expiration of a term shall be filled for the remainder of a term in
the same manner as the original appointment. The business of the
advisory council shall be conducted at a public meeting held in
compliance with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275. Public notice of the time, date, and place of the meeting
shall be given in the manner required by the open meetings act,
1976 PA 267, MCL 15.261 to 15.275. The advisory council shall adopt
bylaws consistent with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, governing its procedures and the holding of
meetings. After organization, the advisory council shall adopt a
schedule of regular meetings and adopt a regular meeting date,
place, and time. The advisory council shall keep a written or
printed record of each meeting, which record and any other document
or record prepared, owned, used, in the possession of, or retained
by the advisory council in the performance of an official function
shall be made available to the public in compliance with the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. An
advisory council shall organize and make its own policies and
procedures and shall adopt bylaws not inconsistent with this act
governing its operations. The advisory council may request and
shall receive from the authority information and technical
assistance relating to the development and management of the
qualified convention facility. Failure of the advisory council to
organize, meet, or perform statutory functions shall not prevent
the board or the authority from performing authorized activities. A
member of the citizens advisory council shall not be compensated
for being a member nor shall a member be reimbursed for any
expenses incurred as a member of the citizens advisory council.
Sec.
19. (1) Within 45 days of the effective date of this act
January 20, 2009 or the date on which a metropolitan area becomes a
qualified metropolitan area and prior to a transfer date, the
legislative body of the qualified city in which a qualified
convention facility is located may disapprove the transfer of the
qualified convention facility to the authority by adopting a
resolution disapproving the transfer. If the transfer is not
disapproved, the qualified convention facility is transferred to
the
authority on the ninetieth day after the effective date of this
act
January 20, 2009 or the date on which a convention facility
becomes a qualified convention facility. If the transfer is
disapproved, not later than August 1, 2009 or 75 days after a later
date on which a metropolitan area becomes a qualified metropolitan
area, the qualified city in which a qualified convention facility
is located may disapprove leasing the qualified convention facility
to the authority by adopting a resolution disapproving a lease of
the qualified convention facility to the authority. The resolution
shall be adopted and effective as provided by law, including any
charter of the qualified city. If a resolution disapproving the
lease is adopted and effective, an authority created for the
qualified metropolitan area in which the qualified convention
facility is located is dissolved. If the lease is not disapproved
within the period provided, the local chief executive officer of
the qualified city and the authority shall enter into a lease
agreement consistent with the requirements of this act providing
for the lease of the qualified convention facility to the authority
for a period of not less than 30 years. The lease shall require the
authority to renovate, rehabilitate, and expand the qualified
convention facility. The lease shall be effective September 1, 2009
or 105 days after a later date on which a metropolitan area becomes
a qualified metropolitan area. All of the following shall occur on
a transfer date:
(a) All right, title, and interest of a local government in
and to a qualified convention facility located in a qualified
metropolitan area shall by operation of this act be conveyed and
transferred from the local government to the authority for the
qualified metropolitan area, and the authority shall receive,
succeed to, and assume the exclusive right, responsibility, and
authority to own, occupy, operate, control, develop, and use the
qualified convention facility from and after the transfer date,
including, but not limited to, all real property, buildings,
improvements, structures, easements, rights of access, and all
other privileges and appurtenances pertaining to the qualified
convention facility, subject only to those restrictions imposed by
this act. If a qualified convention facility is leased to an
authority under this subsection, this subdivision shall apply while
the lease agreement is effective.
(b) All right, title, and interest in and to the fixtures,
equipment, materials, furnishings, and other personal property of a
local government owned or controlled by the local government and
used for purposes of the qualified convention facility by the local
government shall by operation of this act be conveyed and
transferred from the local government to the authority for the
qualified metropolitan area, and the authority shall receive,
succeed to, and assume the exclusive right, responsibility, and
authority to possess and control the property from and after the
transfer date. If a qualified convention facility is leased to an
authority under this subsection, this subdivision shall apply while
the lease agreement is effective.
(c) All licenses, permits, approvals, or awards of a local
government related to the ownership, occupancy, operation, control,
development, or use of a qualified convention facility by the local
government shall by operation of this act be conveyed and
transferred from the local government to the authority for the
qualified metropolitan area and be assumed by the authority. If a
qualified convention facility is leased to an authority under this
subsection, this subdivision shall apply while the lease agreement
is effective.
(d) All grant agreements, grant preapplications, grant
applications, rights to receive the balance of any funds payable
under the agreements or applications, the right to receive any
amounts payable from and after the transfer date, and the benefits
of contracts or agreements of a local government related to the
ownership, occupancy, operation, control, development, or use of a
qualified convention facility by the local government shall by
operation of this act be conveyed and transferred from the local
government to the authority for the qualified metropolitan area and
be assumed by the authority. If a qualified convention facility is
leased to an authority under this subsection, this subdivision
shall apply while the lease agreement is effective.
(e) All of the duties, liabilities, responsibilities, and
obligations of a local government related to the ownership,
occupancy, operation, control, development, or use of a qualified
convention facility by the local government shall by operation of
this act be conveyed and transferred from the local government to
the authority for the qualified metropolitan area and assumed by
the authority, except for any liabilities, responsibilities, or
obligations
that are contested in good faith by
, or, as of the
transfer
date, unknown to, the authority. or
as otherwise provided
in
this act. If a qualified
convention facility is leased to an
authority under this subsection, this subdivision shall apply while
the lease agreement is effective.
(f) An authority for a qualified metropolitan area shall
assume all of the outstanding securities of the local government
that are special limited obligations payable from and secured by a
lien on distributions received under the state convention facility
development act, 1985 PA 106, MCL 207.621 to 207.640, and were
originally issued to finance the acquisition or construction of,
development of, or improvements to the qualified convention
facility conveyed and transferred to the authority for the
qualified metropolitan area under this section, and the authority
may refund or defease the securities. If the authority refunds the
outstanding securities assumed under this subsection, that
refunding shall be considered, as a matter of law, to be necessary
to eliminate requirements of covenants applicable to the existing
outstanding securities.
(2) An authority shall assume, accept, or become liable for
lawful agreements, obligations, promises, covenants, commitments,
and other requirements of a local government relating to operating
a qualified convention facility conveyed and transferred under this
section, except as provided in subsection (4). An authority shall
perform all of the duties and obligations and shall be entitled to
all of the rights of a local government and under any agreements
expressly assumed and accepted by the authority related to the
transfer of a qualified convention facility from the local
government to the authority under this section. If a qualified
convention facility is leased to an authority under subsection (1),
this subsection shall apply while the lease agreement is effective.
(3) The local chief executive officer of a local government
from which the rights, responsibility, and authority to own,
occupy, operate, control, develop, and use a qualified convention
facility are conveyed and transferred or leased from the local
government to an authority for a qualified metropolitan area under
this section shall execute the instruments of conveyance,
assignment, and transfer or lease or other documents as may, in the
authority's
and the officer's reasonable judgment, as be necessary
or appropriate to recognize, facilitate, or accomplish the transfer
or lease of the qualified convention facility from the local
government to the authority under this section.
(4) An authority for a qualified metropolitan area shall not
assume any unfunded obligations of a local government transferring
or leasing a qualified convention facility under this section to
provide pensions or retiree health insurance. Upon request by the
authority, the local government shall provide the authority with a
statement of the amount of the unfunded obligations, determined by
a professional actuary acceptable to the authority.
(5) All lawful actions, commitments, and proceedings of a
local government made, given, or undertaken before the transfer
date and assumed by an authority under this section are ratified,
confirmed, and validated upon assumption. All actions, commitments,
or proceedings of the local government relating to a qualified
convention facility in the process of being undertaken by, but not
yet a commitment or obligation of, the local government regarding
the qualified convention facility may, from and after the date of
assumption by the authority under this section, be undertaken and
completed by the authority in the manner and at the times provided
in this act or other applicable law and in any lawful agreements
made by the local government before the date of assumption by the
authority under this section.
(6) The exclusive right and authorization to own, occupy,
operate, control, develop, and use a qualified convention facility
transferred or leased under this section shall include, but not be
limited to:
(a) Ownership and operational jurisdiction over all real
property of the qualified convention facility, subject to any liens
of record and legal restrictions and limitations on the use of the
property.
(b) The local government's right, title, and interest in, and
all of the local government's responsibilities arising under,
operating leases and concessions relating to a qualified convention
facility.
(7) The transfers described under this section shall include,
but need not be limited to, all of the following:
(a) All contracts with licensees, franchisees, tenants,
concessionaires, and leaseholders.
(b) All operating financial obligations secured by revenues
and fees generated from the operations of the qualified convention
facility.
(c) All cash balances and investments relating to or resulting
from operations of the qualified convention facility, all funds
held under an ordinance, resolution, or indenture related to or
securing obligations of the local government assumed by the
authority, and all of the accounts receivable or choses in action
arising from operations of the qualified convention facility. Fund
transfers under this subdivision are limited to funds received
after the transfer date and funds necessary to pay obligations
related to the operation of the qualified convention facility
accrued before the transfer date and not paid by the local
government.
(d) All office equipment, including, but not limited to,
computers, records and files, software, and software licenses
required for financial management, personnel management, accounting
and inventory systems, and general administration.
(8) The transfer or lease of the real and personal property
and operational jurisdiction over a qualified convention facility
to an authority may not in any way impair any contracts with
licensees, franchisees, vendors, tenants, bondholders, or other
parties in privity with the local government that owned a qualified
convention facility transferred or leased to an authority under
this section, if the contracts were not entered into or modified in
violation of this act.
(9) From and after the transfer date, a local government from
which a qualified convention facility has been transferred or
leased shall be relieved from all further costs, responsibility,
and liability arising from, or associated with, control, operation,
development, and maintenance of the qualified convention facility.
The local government shall continue to be responsible for all costs
associated
with local municipal services, including , but not
limited
to, police, fire, and emergency
medical services, without
any
additional compensation from the authority. The An authority
created prior to the effective date of the amendatory act that
added subsection (14) shall provide for the payment of compensation
not exceeding $20,000,000.00 to the qualified city as compensation
for any revenue otherwise payable to the qualified city from
parking facilities operated by the qualified city at the qualified
convention facility and for other costs incurred by the qualified
city associated with the transfer or lease of the qualified
convention facility to the authority under this section. If the
transfer or lease of parking facilities to the authority would
impair covenants of bonds issued by the local government that owns
the qualified convention facility to finance the parking
facilities, the authority and the local government may enter into
an agreement providing for the local government to retain title to
and control of the parking facilities and revenue generated by the
parking facilities until the compensation is paid by the authority
to the local government to avoid a default of bond covenants by the
local government. If a qualified convention facility is leased to
an authority under subsection (1), this subsection shall apply
while the lease agreement is effective.
(10) A local government that owns a qualified convention
facility subject to transfer or lease under this section or that
owned a qualified convention facility transferred to an authority
under this section shall comply with all of the following, before
and after the transfer date:
(a) Refrain from any action to sell, transfer, or otherwise
dispose of a qualified convention facility other than to the
authority or incur new or expanded obligations related to qualified
convention facility, without the consent of the authority.
(b) Refrain from any approval of or material modification to
any collective bargaining agreement applicable to local government
employees employed at or assigned to the qualified convention
facility or to terms of employment for employees at or assigned to
the qualified convention facility. Any approval or modification
subject to this subsection shall be null and void.
(c)
Refrain from any action that , in the authority's
judgment,
would impair the authority's
exercise of the powers
granted to the authority under this act or that would impair the
efficient operation and management of the qualified convention
facility by the authority.
(d) Take all actions reasonably necessary to cure any defects
in title to the qualified convention facility and related property
transferred or leased under this section, including, but not
limited to, providing documents, records, and proceedings in
respect of title.
(e) At the request of an authority, grant any license,
easement, or right-of-way in connection with the qualified
convention facility to the extent the authority has not been
empowered to take these actions.
(f)
Upon creation , of
an authority for the qualified
metropolitan area in which the local government is located and
before
the transfer date, may the
local government shall conduct
operations, maintenance, and repair of the convention facility in
the ordinary and usual course of business.
(11) Any contract, agreement, lease, sale, disposition,
transfer, or other conveyance, easement, license, right,
obligation, debt, or liability assumed, approved, entered into,
amended, or modified in violation of this section shall be voidable
as a matter of law to the extent that the authority would otherwise
assume, become party to or transferee of, or otherwise be obligated
under the contract, agreement, lease, sale, disposition, transfer,
conveyance, easement, license, right, obligation, debt, or
liability.
(12) Unless otherwise provided in this act, the local chief
executive officer of a local government that owns a qualified
convention facility subject to transfer or lease under this section
is authorized and shall take all reasonable steps to cancel or
terminate any agreement to which the local government is a party
that relates to the qualified convention facility and meets all the
following criteria:
(a) The agreement relates to the qualified convention facility
and the authority has not expressly assumed or accepted the
agreement under subsection (2).
(b) The agreement provides for cancellation or termination.
(c) In the absence of cancellation or termination, the
authority would become a party to the agreement by succession,
assignment, operation of law, or any other involuntary means.
(13) If real property transferred from a qualified city to an
authority under this section is no longer used by the authority for
the purpose of maintaining or operating a convention facility as
determined by a vote of the board or a lease agreement providing
for the lease of the qualified convention facility is no longer
effective, all right, title, and interest of the authority in the
real property shall revert from the authority to the qualified city
with
the consent of the qualified city and
upon payment by the
qualified city to the authority of an amount equal to the
compensation
paid to the qualified city under section 19(9)
subsection (9).
(14) After the creation of an authority for a qualified
metropolitan area and before the transfer date, the local chief
executive officer of the qualified city that owns or operates a
qualified convention facility and the authority may enter into an
agreement authorizing the qualified city to make electrical system
improvements to the qualified convention facility, with costs of
the management, design, and construction of electrical system
improvements incurred by the qualified city to be reimbursed by the
authority with the proceeds of bonds issued by the authority as
provided in the agreement. Any reimbursement for electrical system
improvements agreed to by the local chief executive officer and the
authority under this subsection shall be in addition to any
compensation paid to the qualified city under subsection (9).
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 586.
(b) Senate Bill No. 587.
(c) Senate Bill No. 588.