September 20, 2012, Introduced by Senators KOWALL, CASPERSON, SMITH, YOUNG, COLBECK and GREEN and referred to the Committee on Transportation.
A bill to amend 1978 PA 639, entitled
"Hertel-Law-T. Stopczynski port authority act,"
by amending sections 2, 4, 5, 8, 9, 10, 12, 13, 14, 18, 22, 23, and
24 (MCL 120.102, 120.104, 120.105, 120.108, 120.109, 120.110,
120.112, 120.113, 120.114, 120.118, 120.122, 120.123, and 120.124),
section 5 as amended by 2001 PA 244, 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, 15a, 16a, 24a, and 24b; 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 this state and its local units of government.
(b) That government programs are desirable and necessary to
eliminate the causes of property value deterioration thereby
benefiting the economic growth of this state.
(c) That it is appropriate to finance these government
programs by means available to this state and local units of
government in this state, including the issuance of bonds and
notes.
(d) That halting property value deterioration and promoting
economic growth in this 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. An authority shall foster and encourage the
participation of private enterprise in the development of port
economic development facilities to the fullest extent it considers
practicable in the interest of 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.
(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 any individual, firm, partnership, or
corporation, or any combination thereof.
(g) (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 thereto. Port facilities do not
include an international bridge or international tunnel for motor
vehicles used on a highway.
(h) "Port economic development facility" means any real or
personal property, or any combination thereof, 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.
(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 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 state
transportation
department of state highways and transportation
and
the
department of commerce licensing
and regulatory affairs in
authorizing the authority. The initial articles of incorporation
shall
be approved by the governor and may thereafter 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 are effective upon filing
with the secretary of state.
(2)
An authority created under this act shall be is a
body
corporate and politic. Not more than 1 authority shall be created
within the boundaries of a county or city.
(3) The exercise by an authority of the powers conferred by
this
act shall be are considered and held to be an essential
governmental function and a benefit to, and a legitimate public
purpose
of the this state, the authority, and the constituent
units.
Sec. 5. (1) Except as provided in subsection (5), an authority
shall consist of 5 or 7 members as follows:
(a) One member shall be appointed by the governor.
(b) The remaining members shall be appointed by the governing
body of each city and the governing body of each county that
requested the incorporation of the authority. The representation
on, and the number of members of, the authority shall be determined
by agreement among the incorporating units and included within the
joint resolution requesting incorporation of the authority.
(2) The members first appointed shall serve staggered terms.
After the first appointment, each member shall serve a term of 4
years, except that a person appointed to fill a vacancy shall be
appointed for the balance of the unexpired term. A member shall be
eligible for reappointment.
(3) The members shall elect 1 of their membership as
chairperson and another as vice-chairperson, shall designate the
terms of office of those officers, and shall appoint a secretary-
treasurer who need not be a member. A majority of the members of
the authority shall constitute a quorum. The affirmative vote of a
majority
of the members shall be is
necessary for any action taken
by the authority.
(4) The members shall serve without compensation but shall be
reimbursed for all necessary travel and other expenses incurred in
the discharge of their duties.
(5) An authority that is established in a county having a
population of 1,500,000 or more shall consist of 5 members as
follows:
(a) One member shall be appointed by the governor.
(b) Two members shall be appointed by a majority of all the
members of the county board of commissioners of the county. The
members appointed shall be nominated by the commissioners on the
board who do not reside within the political boundaries of a city
having
a population of 750,000 600,000
or more.
(c) Two members shall be appointed by the mayor of a city
having
a population of 750,000 600,000
or more that is located in
the county.
(6) To the extent not protected by the immunity conferred by
1964
PA 170, MCL 691.1401 to 691.1415, 691.1419, a member of the
authority appointed under this section who exercises the powers
contained in this act in good faith is immune from civil or
administrative liability arising from that conduct, unless the
conduct was gross negligence or willful and wanton misconduct.
Sec. 7a. Financial and proprietary information, including
trade secrets, submitted by or on behalf of an employer to an
authority or to a nonprofit corporation engaged by contract to
provide economic development services for an 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 these circumstances is not a public record subject to the
provisions of 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.
Sec. 8. An authority may:
(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 this 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 its jurisdiction as it 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, or any
combination of these, port facilities within 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, or any
combination of these, port economic development facilities.
(f) (e)
Designate the location and
character of the port
facilities which the authority may hold 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) Loan money to any person in connection with a project.
(h) Guarantee the obligations of any governmental entity in
connection with a project.
(i) (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.
(j) (h)
Promulgate all necessary rules to
fulfill the purposes
of this act.
(k) (i)
Issue its bonds, notes, or other
evidences of
indebtedness as provided in this act.
(l) (j)
Fix and revise from time to time
and charge and collect
rates, fees, rentals, or other charges for the use of a facility
owned by the authority.
(m) Make secured or unsecured loans, participate in the making
of 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 conferred upon it by a law, mortgage,
loan, contract, or other agreement.
(n) 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.
(o) Mortgage or create security interests in a project, a 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.
(p) Enter into an interlocal agreement with a public agency
under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL
124.501 to 124.512. As used in this subdivision, "public agency"
means that term as defined in section 2 of the urban cooperation
act of 1967, 1967 (Ex Sess) PA 7, MCL 124.502.
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 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.
(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.
(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.
(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. 10. An authority may:
(a)
Subject to the authority of the federal government and the
this state, and with the agreement of the constituent units,
provide for the preservation of navigation within its territorial
jurisdiction, including the establishment by regulation of lines
beyond which piers, bulkheads, wharves, pilings, structures,
obstructions, or extensions of any character may not be built,
erected, constructed, or extended; provide by regulation for the
stationing, anchoring, and movement of vessels or other watercraft;
adopt rules to prevent material, refuse, or matter of any kind from
being thrown into, deposited, or placed where it may fall, or be
washed, into navigable waters under its jurisdiction; ascertain the
depth and course of the channels of those navigable waters; erect
and maintain, authorize the erection and maintenance of, and make
rules respecting wharves, bulkheads, piers, and piling, and the
keeping of the same in repair, to prevent injury to navigation or
health; regulate the use of wharves, docks, piers, bulkheads, or
pilings owned by it; lease or rent the same, and impose and collect
dockage from vessels and watercraft lying at, or using the same;
and collect wharfage and other charges upon goods, wares,
merchandise or other articles landed at, shipped from, stored on,
or passed over the same.
(b) Make and enter into contracts, leases, and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under this act.
(c) Lay out, construct, acquire, operate, lease, sell, and
convey planned industrial districts as a part of port facilities
within its jurisdiction, subject to the restrictions contained in
this act upon operation and ownership of port facilities.
(d) Do all acts and things necessary or convenient to promote
and increase commerce and recreation within its territorial
jurisdiction and carry out the powers expressly granted and any
powers implied or necessary for the exercise of the powers
expressly granted in this act.
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 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.
port facility. However, 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 is
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,
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 port facility 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 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 is 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 total assessment may be
divided into any number of installments not exceeding 30, and any
person
assessed shall have has 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 in
accordance with and exercise all of the powers conferred upon
public corporations by 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 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 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. 15a. (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.
(3) Bonds and notes issued under this section are not subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821.
Sec. 16a. (1) An authority by resolution may borrow money and
issue municipal securities in accordance with and exercise all of
the powers conferred upon municipalities by the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) An authority by resolution 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,
15a, and 16a, bonds may be issued for
the purpose of
acquiring
port facilities, as follows:following
purposes:
(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 subdivision
(b),
or out of the proceeds of bonds issued pursuant to under 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.
22. (1) An authority created under this act shall be is
exempt
from and shall is not be required to pay taxes on property,
both
real and personal, belonging to the authority, which that is
used exclusively for a public purpose or held pending development
of
a project. However, 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, the
income
derived, and the profit from a sale, shall be is 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.
The authority shall cause 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 set 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. 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 set for the hearing. 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 manner prescribed in this subsection.
(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, licensing and
regulatory affairs, and the
state
transportation 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 state
transportation
department of state highways and
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 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) 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. 24a. (1) For the purpose of more effectively managing its
debt service, 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 payment thereof.
(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. 24b. In addition to other powers under this act, 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. 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 16 of the Hertel-Law-T.
Stopczynski port authority act, 1978 PA 639, MCL 120.116, is
repealed.