HOUSE BILL No. 5203

 

December 7, 2011, Introduced by Reps. Cavanagh, Constan, Brown, Howze, Bledsoe, Durhal, Santana, Dillon, Heise, Roy Schmidt and Somerville and referred to the Committee on Local, Intergovernmental, and Regional Affairs.

 

     A bill to amend 1945 PA 327, entitled

 

"Aeronautics code of the state of Michigan,"

 

by amending section 111 (MCL 259.111), as added by 2002 PA 90.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 111. (1) An authority created under or pursuant to this

 

chapter shall be directed and governed by a board consisting of 7

 

members.

 

     (2) The members of a board created under section 110(2) shall

 

be appointed as follows:

 

     (a) Two board members shall be appointed by the governor, with

 

1 board member appointed for an initial term of 6 years and 1 board

 

member appointed for an initial term of 8 years.

 

     (b) One board member shall be appointed by the legislative

 

body of the local government that owns the airport, for an initial

 

term of 4 years. Notwithstanding any other statute, law, ordinance,


 

or charter provision to the contrary, the board member appointed by

 

the legislative body may be a member of the legislative body of the

 

local government that owns the airport, but only while continuing

 

to serve as a member of the legislative body of that local

 

government.

 

     (c) Four board members shall be appointed by the local chief

 

executive officer of the local government that owns the airport,

 

with 1 board member appointed for an initial term of 4 years, 1

 

board member appointed for an initial term of 2 years, and 2 board

 

members appointed for an initial term of 6 years. Beginning on the

 

effective date of the amendatory act that amended this section,

 

appointments under this subdivision by the local chief executive

 

officer of the local government that owns the airport are subject

 

to approval by the legislative body of the local government that

 

owns the airport.

 

     (d) Each appointing entity shall file each appointment under

 

this subsection with the department. Each subsequent appointment by

 

an appointing entity to fill a vacancy on the board shall also be

 

filed with the department.

 

     (3) Upon incorporation of an authority pursuant to under

 

section 110(3), the local chief executive officer, with the consent

 

of the legislative body of the local government if the local chief

 

executive officer is not elected, shall appoint the members of the

 

board. Of the board members first appointed under this subsection,

 

1 board member shall be appointed for a term of 2 years, 2 board

 

members shall be appointed for terms of 4 years each, 3 board

 

members shall be appointed for terms of 6 years each, and 1 board


 

member shall be appointed for a term of 8 years.

 

     (4) A board member appointed pursuant to under subsection

 

(2)(b) or (c) or (3) must be a citizen of the United States and a

 

resident of the local government that owns the airport over which

 

operational jurisdiction will be transferred to an authority. A

 

board member appointed pursuant to under subsection (2)(a) must be

 

a citizen of the United States and a resident of the area within

 

the jurisdiction of the regional planning commission created under

 

1945 PA 281, MCL 125.11 to 125.25, in which the airport over which

 

operational jurisdiction will be transferred is located. Except as

 

permitted by subsection (2)(b), a person shall not be appointed

 

under subsection (2) or (3) as a board member if he or she is, or

 

was during the 12 months preceding the date of appointment, an

 

elected public official or employee of this state or an agency or

 

instrumentality of this state, a local government or an agency or

 

instrumentality of a local government, or the federal government or

 

an agency or instrumentality of the federal government.

 

     (5) A board member appointed pursuant to under subsection (2)

 

or (3), a chief executive officer, and chief financial officer of

 

an authority, shall, at time of appointment or hiring and subject

 

to subsection (6), meet all of the following qualifications:

 

     (a) Neither the board member or the chief executive officer or

 

chief financial officer, nor the spouse or his or her siblings,

 

children or their spouses, parents, or siblings or their spouses of

 

the board member or the chief executive officer or chief financial

 

officer, are actively engaged or employed in any other business,

 

vocation, or employment of any civil aeronautics enterprise


 

connected with the airport under the control of the authority.

 

     (b) Neither the board member or the chief executive officer or

 

chief financial officer, nor the spouse or his or her siblings,

 

children or their spouses, parents, or siblings or their spouses of

 

the board member or the chief executive officer or chief financial

 

officer, have a combined 15% or greater direct pecuniary interest

 

in any civil aeronautics enterprise connected with the airport

 

under the control of the authority.

 

     (c) The board member or the chief executive officer or chief

 

financial officer would not be considered to have a conflict of

 

interest under 1968 PA 318, MCL 15.301 to 15.310, in respect to any

 

contract or subcontract involving the airport if the board member

 

or the chief executive officer or chief financial officer were

 

considered a state officer under 1968 PA 318, MCL 15.301 to 15.310.

 

     (6) A board member who, at any time during his or her term of

 

service, becomes in violation of subsection (5)(b) shall have 30

 

days to divest, or arrange for the divestment of, the interest that

 

caused the violation. If the board member or his or her relative is

 

still in violation of subsection (5)(b) after the expiration of the

 

30-day period, the entity that appointed that board member shall

 

remove the board member from office.

 

     (7) Notwithstanding any law or charter provision to the

 

contrary, appointments by a local chief executive officer under

 

subsection (2) shall not be subject to the approval by the

 

legislative body of the local government.

 

     (7) (8) The board shall appoint a chief executive officer who

 

shall be an ex officio member, without vote, of the board and shall


 

not be considered in determining the presence of a quorum, who

 

shall have professional qualifications commensurate with the

 

responsibility of the jobs to be performed by such officials. The

 

board may enter into a contract with the chief executive officer

 

for a commercially reasonable length of time commensurate with the

 

length of time for contracts of airport chief executive officers,

 

directors, or managers with similar responsibilities at other

 

airports or airport authorities within or without this state with a

 

comparable number of annual enplanements.

 

     (8) (9) The chief executive officer shall appoint a chief

 

financial officer who shall be the treasurer of the authority, who

 

shall have professional qualifications commensurate with the

 

responsibility of the jobs to be performed by such officials.

 

Notwithstanding any law or charter provision to the contrary, it

 

shall be is the duty and right of the chief financial officer of

 

the authority to receive all money belonging to the authority, or

 

arising or received in connection with the airport over which

 

operational jurisdiction has been transferred to the authority,

 

from whatever source derived. Money of the authority shall be

 

deposited, invested, and paid by the chief financial officer only

 

in accordance with policies, procedures, ordinances, or resolutions

 

adopted by the board. Upon the approval date, the authority shall

 

be is considered to be the owner of all money or other property

 

then or thereafter received by the treasurer of the local

 

government or deposited in the treasury of a local government to

 

the credit of the airport for which operational jurisdiction has

 

been transferred to the authority. The authority shall be is


 

entitled to all interest and other earnings on those funds on and

 

after the latter of the effective date of this chapter March 26,

 

2002 or the date on which the authority is created or incorporated.

 

The treasurer of any local government receiving or having custody

 

of money or other property belonging to an authority under this

 

chapter shall promptly transfer the money and other property to the

 

custody of the chief financial officer of the authority. The chief

 

financial officer shall provide the board with copies of all

 

reports made by the chief financial officer to the chief executive

 

officer.