June 29, 2005, Introduced by Reps. Hunter, Kolb, Gillard, Gaffney, Palsrok, Proos, Farrah, Garfield, Gosselin, McConico, Leland, Tobocman, Huizenga, Stahl, Lipsey, Amos, Cheeks and Lemmons, III and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.
A bill to amend 1978 PA 639, entitled
"Hertel-Law-T. Stopczynski port authority act,"
by amending sections 2, 4, 8, 9, 12, 13, 14, 15, 16, 18, 22, 23,
and 24 (MCL 120.102, 120.104, 120.108, 120.109, 120.112, 120.113,
120.114, 120.115, 120.116, 120.118, 120.122, 120.123, and 120.124),
sections 14 and 18 as amended by 2002 PA 412 and section 23 as
amended by 1984 PA 256, and by adding sections 1a, 1b, 7a, 18a, 31,
and 32; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1a. The legislature finds all of the following:
(a) That there exists in this state conditions of property
value deterioration detrimental to the state economy and the
economic growth of the state and its local units of government.
(b) That government programs are desirable and necessary to
eliminate the causes of property value deterioration and benefit
the economic growth of the state.
(c) That it is appropriate to finance these government
programs by means available to the state and local units of
government in the state, including the issuance of bonds and notes.
(d) That halting property value deterioration and promoting
economic growth in the state are essential governmental functions
and constitute essential public purposes.
(e) That economic development strengthens the tax base upon
which local units of government rely and that government programs
to eliminate property value deterioration benefit local units of
government and are for the use of the local units of government.
(f) That the provisions of this act are enacted to provide a
means for counties and cities to eliminate property value
deterioration and to promote economic growth in the communities
served by those counties and cities.
Sec. 1b. The authority should foster and encourage the
participation of private enterprise in the development of port
authority economic development facilities to the extent it
considers practicable in limiting the necessity of acquisition,
construction, and operation of those facilities by the authority.
Sec. 2. As used in this act:
(a) "Authority" means a port authority created under this act
and may also include the area within the jurisdiction of an
authority.
(b) "Authorized purposes" means activities that enhance,
foster, aid, provide, or promote transportation, economic
development, housing, recreation, education, governmental
operations, culture, or research within this state.
(c) (b)
"Constituent unit" means a city or county
requesting
the incorporation of an authority.
(d) (c)
"Governing body of the city" means the
city council
or city commission of a city requesting incorporation of an
authority created under this act.
(e) (d)
"Governing body of the county" means the
county
board of commissioners of a county participating in an authority
created under this act.
(f) "Person" means an individual, corporation, partnership,
association, or any other legal entity.
(g) "Port economic development facility" means any real or
personal property, or both, including, but not limited to,
machinery, equipment, plants, factories, offices, buildings, and
other structures and facilities that are related to, useful for, or
in furtherance of 1 or more authorized purposes.
(h) (e)
"Port facilities" means those
facilities owned by
the
port authority such as: seawall
jetties, ; piers,
;
wharves, ;
docks,
; boat
landings, ; marinas,
; warehouses,
;
storehouses,
; elevators, ;
grain bins,
; cold
storage
plants, ;
terminal icing plants, ; bunkers, ;
oil tanks,
;
ferries, ;
ships, canals,
; locks, ;
bridges,
; tunnels, ;
seaways, ;
conveyors,
; modern appliances
facilities for the
economical handling, storage, and transportation of freight and
handling
of passenger traffic, ; transfer and terminal facilities
required for the efficient operation and development of ports and
harbors, ;
other harbor improvements, ;
or improvements,
enlargements, remodeling, or extensions of any of these buildings
or structures, or other facilities functionally related to these
buildings or structures. Port facilities do not include
international bridges or tunnels.
(i) (f)
"Project" means the acquisition, purchase,
construction, reconstruction, rehabilitation, financing,
remodeling, improvement, enlargement, repair, condemnation,
maintenance, or operation of port facilities or port economic
development facilities.
Sec. 4. (1) A city and county, a combination of counties or a
combination consisting of at least 1 city and 1 county, by
resolution of the governing body or by joint resolution of their
respective governing bodies, may request the governor to authorize
the incorporation of an authority. The governor shall consider the
recommendations
of the department of state highways and state
transportation
department and the department of commerce in labor
and economic growth authorizing the authority. The initial articles
of incorporation shall be approved by the governor and may
thereafter
then be amended by resolution of the authority, subject
to approval by the governor. After approval by the governor, the
articles of incorporation and any amendments to those articles
shall be effective upon filing with the secretary of state.
(2) An authority created under this act shall be a body
corporate and politic. Not more than 1 authority shall be created
within the boundaries of a city, county, 2 or more counties, or a
combination of at least 1 city and 1 county.
(3) The exercise by an authority of the powers conferred by
this act shall be considered and held to be an essential
governmental function and a benefit to, and a legitimate public
purpose of the state, the authority, and the constituent units.
Sec. 7a. (1) Financial and proprietary information, including
trade secrets, submitted by or on behalf of an employer to a port
authority or to a nonprofit corporation engaged by contract to
provide economic development services for a port authority, in
connection with the relocation, location, expansion, improvement,
or preservation of the business of that employer is not a public
record subject to the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246. Any other information submitted by an employer
under such circumstances is not a public record subject to the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,
until that employer commits in writing to proceed with the
relocation, location, expansion, improvement, or preservation.
(2) Notwithstanding the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, the board of directors of a port authority and
the board of trustees of a nonprofit corporation described in
subsection (1), and any committee or subcommittee of such entities,
when considering information that is not a public record under this
section, may close any meeting during the consideration of that
information pursuant to a vote of the members present on a motion
stating that the information is to be considered. No other matters
shall be considered during the closed session.
Sec. 8. (1) An authority may do any of the following:
(a) Adopt, amend, and repeal bylaws for the regulation of its
affairs and the conduct of its business.
(b) Sue and be sued on the same basis as the state; and adopt
and register with the secretary of state an official seal and alter
that seal at its pleasure.
(c) Maintain offices at a place or places, either within or
without
outside of its jurisdiction as it the authority may
determine.
(d) Acquire by gift or purchase, own, construct, reconstruct,
rehabilitate, improve, maintain, furnish, equip, sell, exchange,
lease as lessor or as lessee, repair, finance, or operate port
facilities within or outside of its territorial jurisdiction,
including the dredging of ship channels and turning basins and the
filling
and grading of land therefor for these purposes. An
authority may operate a leased facility, owned by the authority, if
the lessee defaults and a new lease is negotiated or competitively
bid.
(e) Acquire by gift or purchase, own, construct, reconstruct,
rehabilitate, improve, maintain, furnish, equip, sell, exchange,
lease as lessor or as lessee, repair, finance, or operate port
economic development facilities within or outside of its
territorial jurisdiction.
(f) (e)
Designate the location and character of the port
facilities which
and port economic
development facilities that
the authority may hold, control, or own or over which it is
authorized to act and regulate all matters related to the location
and character of those port facilities.
(f)
Acquire, hold, and dispose of real and personal property.
(g) Do any of the following in connection with a project in
regard to interests in any real or personal property, including,
but not limited to, machinery, equipment, plants, factories,
offices, and other structures and facilities related to any
authorized purpose, for consideration and in a manner as the
authority may determine:
(i) Loan money to any person for the acquisition, construction,
reconstruction, rehabilitation, improvement, maintenance,
furnishing, and equipping of the property.
(ii) Acquire, construct, reconstruct, rehabilitate, improve,
maintain, repair, furnish, or equip the property.
(iii) Sell to, exchange with, lease as lessor or lessee, convey
other interests in, or lease with an option to purchase the same or
any lesser interest in the property to the same or any other person
or governmental entity.
(iv) Guarantee the obligations of any governmental entity.
(h) (g)
Make directly, or through the hiring of expert
consultants, investigations and surveys of whatever nature,
including studies of business conditions, freight rates, port
services, physical surveys of the conditions of channels and
structures, and the necessity for additional port facilities for
the development and improvement of commerce and recreation and for
the more expeditious handling of that commerce and recreation, and
make studies, surveys, and estimates, as necessary for the
execution of its powers under this act.
(i) (h)
Promulgate all necessary rules to fulfill the
purposes of this act.
(j) (i)
Issue its bonds, notes, or other evidences of
indebtedness as provided in this act.
(k) (j)
Fix Establish and revise from time to time and
charge and collect rates, fees, rentals, or other charges for the
use of a port facility or port economic development facility owned
or operated by the authority.
(l) Make secured or unsecured loans, undertake commitments to
make secured or unsecured loans and mortgages, sell loans and
mortgages at public or private sale, rewrite loans and mortgages,
discharge loans and mortgages, foreclose on a mortgage, or commence
an action to protect or enforce a right, mortgage, loan, contract,
or other agreement.
(m) Enter into leases, as lessor or lessee, lease purchase
agreements, installment sales contracts, or loan agreements with
any person for the use, sale, development, or financing of a
project.
(n) Mortgage or create security interests in all or part of a
project, a lease or loan, or the rents, revenues, or sums to be
paid during the term of a lease or loan, in favor of holders of
bonds or notes issued by the authority or in favor of a trustee or
credit provider.
(o) Possess the same rights, privileges, and powers granted an
authority in the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2651 to 125.2672.
(p) Possess the same rights, privileges, and powers granted an
authority in the local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174.
(q) Enter into an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512, with a public agency as defined by the urban cooperation
act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.
(2) A port authority may accept and hold as consideration for
the conveyance of property or any interest therein such property or
interest therein as the authority in its discretion may determine,
notwithstanding any restrictions that apply to the investment of
funds by an authority.
Sec. 9. An authority may:
(a) Appear in its own behalf before boards, commissions,
departments, or other agencies of the federal government or of any
state or international conferences and before committees of the
congress of the United States and the state legislature in all
matters relating to the design, establishment, construction,
extension, operation, improvement, repair, or maintenance of a
project
operated and maintained by the authority under this act. ,
and
appear
(b) Appear before any federal or state agencies in matters
relating to transportation rates, port services and charges,
demurrage, switching, wharfage, towage, pilotage, differentials,
discriminations, labor relations, trade practices, river and harbor
improvements, aids to navigation, permits for structures in
navigable waters, and all other matters affecting the physical
development of, and the business interest of, the authority and
those it serves.
(c) (b)
Make application for, receive and accept from any
federal, state, or municipal agency, foundation, public or private
agency, or individual, a grant or loan for, or in aid of, the
planning, construction, operation, or financing of a port facility
or port economic development facility; and receive and accept
contributions from any source of money, property, labor, or other
things of value, to be held, used, and applied for the purposes for
which the grant or contribution may be made.
(d) (c)
Appoint an executive director who shall be the chief
administrative officer of the authority, and to whom the authority
may delegate any of its administrative powers and authorizations.
During employment the executive director shall not have a financial
interest in port facilities or projects over which the authority
has jurisdiction or power or authorization to act.
(e) (d)
Employ personnel as is necessary and employ the
services of private consultants and engineers, legal counsel,
accountants, construction and financial experts, and other agents
for rendering professional and technical assistance and advice as
may be necessary, and whose compensation, including the executive
director, shall be determined by the authority.
Sec. 12. (1) An authority may acquire by purchase or lease,
when it considers the purchase or lease expedient, lands,
structures, property, rights, rights of way, franchises, easements,
and other interests in lands or air space rights as it considers
necessary or convenient for the construction or operation of a
project, upon terms and at a price as considered reasonable and
agreed upon between the authority and the owner thereof.
(2) An authority may acquire by condemnation lands, property
rights, rights of way, franchises, easements, and other property,
or parts thereof or rights therein, of a person, partnership,
association, or corporation considered by the authority to be
necessary for the construction or efficient operation of a project.
However,
a A facility currently operated as a port facility by a
terminal
operator or a facility owned or operated by and for the
exclusive
use of the owner or operator and a facility owned or
operated
by a common carrier or public utility shall be exempt
from this subsection. The condemnation shall be made in the manner
provided by
Act No. 295 of the Public Acts of 1966, as amended,
being
sections 213.361 to 213.391 of the Michigan Compiled Laws
under 1966 PA 295, MCL 213.361 to 213.391, or the uniform
condemnation procedures act, 1980 PA 87, MCL 213.51 to 213.75,
except where that procedure may be inconsistent with this act.
(3) An authority may sell or remove the buildings or other
structures upon lands taken by the authority, and may sell or lease
lands
or rights or interest in lands or other property taken or
purchased
for the purposes of comprising
a project under this act.
Sec. 13. (1) An authority and 1 or more constituent units may
enter into a contract or contracts for the acquisition,
improvement, enlargement, or extension of port facilities or port
economic development facilities and for the payment of the cost
thereof
by of the contracting constituent units, with interest,
over a period of not more than 40 years.
(2)
Each contracting constituent unit
shall may pledge
its
full faith and credit for the payment of its obligations under the
contract. If the constituent unit has taxing power, each year it
shall levy a tax upon all real and personal property within the
constituent unit, which may be imposed without limitation as to
rate or amount, to the extent necessary for the prompt payment of
that part of the contract obligations as shall fall due before the
following year's tax collection. The tax shall be in addition to
any tax which the contracting constituent unit may otherwise be
authorized to levy and may be imposed without limitation as to rate
or amount, but shall not be in excess of the rate or amount
necessary to pay the contract obligation. If any contracting
constituent unit at the time of its annual tax levy has on hand in
cash any amount pledged to the payment of the current obligations
for which the tax levy is to be made, then the annual tax levy may
be
reduced by that amount. For the purpose of obtaining the
credit,
funds
(3) Funds may be raised by a contracting constituent unit in 1
or more of the following methods:
(a) By service charge to users of the facilities owned,
improved, controlled, operated, or maintained by the port
authority.
(b) By setting aside state collected funds disbursed to the
contracting constituent unit.
(c) By special assessment upon lands benefited.
(d) By setting aside any other available money.
(4) (3)
A contracting constituent unit may agree to raise
all or any part of its contract obligation by 1 or more of the
methods
enumerated in subsection (2) which (3) that may be
available. The various powers granted in this act to a constituent
unit shall be exercised by its governing body.
(5) (4)
If a constituent unit, other than a county,
operating under this act elects to raise money to pay all or a
portion of its share of the cost of a project by assessing the
costs
upon benefited lands, its governing body shall so determine
by
resolution and fix establish
the district. therefor. The
governing body shall then cause a special assessment roll to be
prepared. and
thereafter the proceedings in respect to The
procedures regarding the special assessment roll and the making and
collection
of the special assessments on the roll, shall be in
accordance with the provisions of the statute or charter governing
special
assessments in the constituent unit.
, except that the
The total assessment may be divided into any number of installments
not exceeding 30, and any person assessed shall have the right at
the hearing upon the special assessment roll to object to the
special assessment district previously established.
Sec.
14. (1) An authority may provide by resolution for the
issuance
of revenue bonds of the authority for the purpose of
providing
funds for paying the cost of port facilities, or for
paying
the cost of an extension, enlargement, or improvement of a
project
then under the control of the authority. The bonds issued
under
this section shall mature at a time or times, not exceeding
40
years after their date of issuance, as the authority may
provide. For
the purpose of acquiring, purchasing, constructing,
improving, enlarging, furnishing, equipping, reequipping, or
repairing port facilities or a port economic development facility,
the authority may issue self-liquidating bonds of the authority
under the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to
141.140.
(2)
Revenue bonds issued under this section are subject to the
revenue
bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140.
(2) (3)
Revenue bonds issued pursuant to under this
section shall not be considered to constitute a debt of this state,
a political subdivision of this state, the authority, or any
constituent unit, or a pledge of the full faith and credit of this
state
or a political subdivision of this state, or of
the
authority, or any constituent unit, but shall be payable solely
from the revenues or income to be derived from the projects. The
revenue bonds shall contain on their face a statement to the effect
that the bonds and attached coupons are payable solely from
revenues and are not a general obligation of this state, a
political subdivision of this state, the authority, or a
constituent unit, and neither the full faith and credit nor the
taxing power of this state, a political subdivision of this state,
the authority, or a constituent unit, is pledged to the payment of
the principal of or the interest on the bonds.
Sec.
15. An authority shall determine the form of the bonds
of
each series issued pursuant to section 14, including any
interest
coupons to be attached thereto, the date of the bonds, the
denomination
of the bonds, and the place of payment of principal
and
interest, which may be at any bank or trust company within or
without
the state. The bonds of each series may be made redeemable
before
their maturity or maturities at the option of the authority,
at
a price and under the terms and conditions as may be fixed by
the
authority before issuance of the bonds. If an officer whose
signature
or a facsimile of whose signature appears on any bonds or
coupons
ceases to be an officer before delivery of the bonds, the
signature
or facsimile shall nevertheless be valid and sufficient
for
all purposes the same as if the officer had remained in office
until
the delivery. The bonds may be issued in coupon or in
registered
form, or both, as the authority may determine, and
provision
may be made for the registration of any coupon bonds as
to
principal alone and also as to both principal and interest, for
the
reconversion into coupon bonds of any bonds registered as to
both
principal and interest, and for the interchange of coupon and
registered
bonds.
(1) An authority may borrow money and issue its revenue bonds
or notes to finance or refinance part or all of a project and the
costs necessary or incidental to the borrowing of money and issuing
of bonds or notes for that purpose, and may secure those bonds and
notes by mortgage, assignment, or pledge of any of the authority's
money, revenues, income, and properties. Bonds and notes may be
issued under this section regardless of whether the authority owns
or proposes to own the project.
(2) Bonds and notes issued under this section are not subject
to the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140
or the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821.
Sec.
16. Revenue bonds issued pursuant to this act shall be
secured
by a trust agreement by and between the authority and a
corporate
trustee, which may be any trust company or bank having
the
powers of a trust company, within or without the state. The
trust
agreement may pledge or assign the rentals and other revenues
of
the authority, but shall not convey or mortgage part or all of a
project.
The trust agreement shall contain provisions for
protecting
and enforcing the rights and remedies of the bondholders
as
may be reasonable and proper and not in violation of law,
including
convenants setting forth the duties of the authority in
relation
to the acquisition or construction of a project and the
extension,
enlargement, improvement, maintenance, operation,
repair,
and insurance of a project and the custody, safeguarding,
and
application of all money and may contain provisions for the
employment
of consulting engineers in connection with the
construction
and operation of a project. The trust agreement shall
set
forth the rights and remedies of the bondholders and of the
trustee
and may restrict the individual right of action by the
bondholders
and may contain any other provisions the authority may
consider
reasonable and proper for the security of the bondholders.
(1) An authority may borrow money and issue municipal
securities under the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(2) An authority may borrow money and issue short-term
municipal securities maturing not more than 1 year from the date of
issue in anticipation of the collection of revenues to which it
will be entitled to receive within 1 year from the date of the
short-term municipal securities' issuance. The amount of the short-
term municipal securities issued under this section shall not
exceed 100% of the revenues collected in the preceding fiscal year
not pledged for the payment of a security other than a short-term
municipal security issued under this section as conclusively
certified by the authority. The resolution shall provide for the
pledging of all or a portion of the revenues of the authority not
previously pledged for the payment of a security. The resolution
may also provide for the pledging of other assets of the authority
as additional security for the payment of the short-term municipal
security. The resolution also shall provide that from the receipts
of the revenues in anticipation of which the authority issued the
short-term municipal security, there shall be set aside in a
special fund to be used for the payment of principal and interest
on the short-term municipal security a portion of each dollar
received that is not less than 125% of the percentage that the
principal amount of the short-term municipal security bears to the
amount certified as the revenues estimated to be collected, until
the amount set aside is sufficient for the payment of principal and
interest on the short-term municipal security. The amount set aside
shall be used only for the payment of the principal and interest on
the short-term municipal security until the short-term municipal
security is paid as to both principal and interest.
Sec.
18. (1) In addition to the bonds authorized in section
sections
14, 15, and 16, bonds may be
issued for the purpose of
acquiring
port facilities authorized
purposes, as follows:
(a) By the issuance of bonds in anticipation of payments to
become due under contracts by which 1 or more constituent units
agree to pay to an authority operating under this act certain sums
toward the cost of the acquisition, improvement, enlargement, or
extension of a project that may be made under this act. Contracts
are not subject to the revised municipal finance act, 2001 PA 34,
MCL 141.2101 to 141.2821.
(b) By money advanced by an authority operating under this act
under agreements with a constituent unit or other municipality for
the repayment of the money.
(c) By money advanced, from time to time, before or during
construction of a project, by a public corporation, for which an
authority operating under this act shall reimburse the corporation
with
interest not to exceed 8% per annum the rate provided in the
revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, or without interest as may be agreed, when funds are
available for reimbursement. The obligation of an authority to make
the reimbursement may be evidenced by a contract or note, which
contract or note may be made payable out of the payments to be made
by
constituent units under contracts made
pursuant to under
subdivision (b), or out of the proceeds of bonds issued pursuant to
this act by the county or out of any other available funds.
(2) Bonds issued under this section shall be authorized by a
resolution adopted by the authority. The bonds shall be issued in
the name of the authority and shall be executed by the chairperson
and secretary-treasurer of the authority, who shall also cause
their facsimile signatures to be affixed to the interest coupons to
be attached to the bonds. The authority shall adopt a seal that
shall be affixed to the bonds. Bonds issued under this section
shall be negotiable instruments and shall mature not more than 40
years after the date of issuance. The bonds and coupons shall be
made payable in lawful money of the United States and shall be
exempt from all taxation whatsoever by this state or by any taxing
authority within this state.
(3) Bonds or notes issued under this section are subject to
the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821.
Sec. 18a. A pledge made by an authority shall be valid and
binding from the time the pledge is made. The money or property
pledged and received by the authority immediately shall be subject
to the lien of the pledge without a physical delivery, filing, or
further act. The lien of a pledge shall be valid and binding as
against parties having claims of any kind in tort, contract, or
otherwise, against the authority, irrespective of whether the
parties have notice. Neither the resolution, the trust agreement,
nor any other instrument by which a pledge is created need be filed
or recorded.
Sec.
22. (1) An authority created under this act shall be is
exempt from and shall not be required to pay taxes on property,
both real and personal, belonging to the authority, which is used
exclusively
for a public purpose. However, the The exemption
shall
does not apply to property belonging to an authority
while a
private enterprise is a lessee of the property under a written
lease. The bonds, notes, or other evidences of indebtedness, or
their transfer, issued by an authority as authorized in this act,
the
interest thereon on, the income derived, and
the profit from
a
sale, shall be are exempt from taxation,
other than inheritance
and estate taxes, within this state.
(2) This section constitutes a covenant and agreement with the
holders of bonds, notes, or other evidences of indebtedness issued
by an authority.
(3) Instruments of conveyance to or from an authority are
exempt from all fees and taxation in this state.
Sec.
23. (1) An authority created on or after May 1, 1984
shall
within 2 years after its creation prepare or cause to be
prepared
a plan for the future development, construction, and
improvement of the port and its facilities, including the maps,
profiles, and other data and descriptions necessary to set forth
the location and character of the work to be undertaken by the
authority. An
authority in existence before May 1, 1984 shall
prepare
or cause to be prepared the plan provided for in this
subsection
not later than September 30, 1985. The authority shall
notify
the legislature on April 15, 1985, as to the progress of the
plan.
(2)
The authority shall cause
provide notice by publication
to be given upon the completion of the plan in a daily newspaper of
general circulation in the area under the jurisdiction of the
authority. The notice shall fix the time and place for hearing on
the plan, which shall be not less than 30 nor more than 60 days
after publication of the notice.
(3) Any interested person may file written comments to the
plan, if those comments are filed with the secretary-treasurer of
the authority not less than 5 days before the date fixed for the
hearing.
(4) After the hearing, the authority may adopt the plan, with
any modifications or amendments, as the official plan of the
authority. The authority, after adoption of the plan, may modify,
amend, or extend the plan after notice and hearing in the same
manner prescribed
in this subsection as
provided under this
section.
(2)
The plan and any modification, amendment, or extension,
when
adopted by the authority after notice and hearing, shall be
conclusive
except that plans for specific projects, to be
undertaken
in execution of the official plan, shall not be adopted
by
the authority without prior individual approval by the governing
bodies
of its constituent units, the state transportation
department,
and the department of commerce.
Sec. 24. (1) The authority shall submit in writing a detailed
estimate of the budget required for the business and conduct of an
authority's affairs, initially, for a 2-year period, and annually
thereafter
to the governing bodies of its constituent units. , the
department
of commerce, and the department of state highways and
transportation
for approval. The state shall provide 50% of the
operating
budget of the authority, to be included in the
department
of state highways and state
department of
transportation budget which shall be subject to legislative
approval. Fifty percent of the operating budget of an authority in
which not more than 1 county and not more than 1 city participate
shall be funded equally by the participating county and city.
(2) A city or county creating or participating in an authority
may appropriate for the use of the authority, and include in its
levy for general fund purposes, an amount considered proper.
However,
the The total amount permitted by law to be levied by a
city or county for general fund purposes shall not be considered
increased by this section.
(3) Project costs of a specific project, including development
costs or costs of an undertaking of an authority, shall be payable
from any legally available source.
(4) (3)
As used in this section, "operating
budget" means
solely operation and maintenance expenses of an authority not
included in the cost of a specific project, and interest on notes,
but excludes amounts for debt service on bonds and amounts for
acquisition, construction, enlargement, improvement, or extension
of port facilities.
Sec. 31. (1) An authority may enter into an interest rate
exchange or swap, hedge, or similar agreement or agreements in
connection with the issuance or proposed issuance of obligations or
other evidences of indebtedness or in connection with its then
outstanding obligations or other evidences of indebtedness.
(2) In connection with entering into an interest rate exchange
or swap, hedge, or similar agreement, the authority may create a
reserve fund for the making of payments.
(3) An agreement entered into under this section shall comply
with all of the following:
(a) The agreement is not a debt of the authority entering into
the agreement for any statutory or charter debt limitation purpose.
(b) The agreement is payable from general funds of the
authority or, subject to any existing contracts, from any available
money or revenue sources, including revenues that shall be
specified by the agreement, securing the obligation or evidence of
indebtedness in connection with the agreement.
Sec. 32. (1) With the approval of the state treasurer, an
authority may obtain a line of credit to secure funds for
operations or to pay previous loans obtained for operations under
this or any other statute. The authority shall pledge not more than
100% of the revenues collected in the preceding fiscal year that
are not otherwise encumbered or previously pledged for the payment
of a security.
(2) To obtain approval for obtaining a line of credit under
this section, an authority shall apply to the state treasurer in
the form and manner prescribed by the state treasurer and shall
provide information as requested by the state treasurer for
evaluating the application. The state treasurer shall approve or
disapprove an application and notify the authority within 20
business days after receiving a proper application. If the state
treasurer disapproves an application, the state treasurer shall
include the reasons for disapproval in the notification to the
authority.
Enacting section 1. Section 14a of the Hertel-Law-T.
Stopczynski port authority act, 1978 PA 639, MCL 120.114a, is
repealed.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5028(request no.
02418'05*) of the 93rd Legislature is enacted into law.