May 30, 2013, Introduced by Reps. Zemke, Irwin, Banks, Singh, Schor, Driskell, Rutledge, Kosowski, Lane, Durhal, Talabi, Dillon, Brinks, Yanez, Geiss, Segal, Kandrevas, Lipton, Haugh, Darany, Townsend, Faris, Dianda, Kivela, Knezek, Slavens, Hovey-Wright, Greimel, Hobbs, Santana and Switalski and referred to the Committee on Transportation and Infrastructure.
A bill to amend 2012 PA 387, entitled
"Regional transit authority act,"
by amending section 6 (MCL 124.546).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) Within 30 days after the appointment of the
members of a board under section 5, the board shall hold its first
meeting at a date and time to be determined by the governor's
representative. The governor's representative shall serve without
vote and shall serve as chairperson of the board. The board members
shall elect officers as necessary. The board shall elect all
officers annually.
(2) The business of a board 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 date, time, 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. After organization, a board shall adopt a
schedule of regular meetings. A board shall meet at least once each
quarter. A special meeting of a board may be called by the
chairperson of the board or as provided in the bylaws of the board.
(3) A majority of the voting members of a board constitute a
quorum for the transaction of the business of an authority. Actions
of a board shall be by simple majority vote of all voting members
of the board, except as follows:
(a) A board shall provide in its bylaws that the following
actions require the approval of 7/9 of the voting members, and the
7/9 must include the affirmative vote of at least 1 member from
each participating county and a member appointed under section
5(1)(f):
(i) The placing of a question of the levy of an assessment
under section 10(2) on the ballot by an authority.
(ii) The determination of the rate of, or amount of, any
assessment to be requested by an authority at an election.
(iii) The placing of a question of approving a motor vehicle
registration tax on the ballot by an authority.
(iv) The determination of the rate of, or amount of, any motor
vehicle registration tax to be requested by an authority at an
election.
(b) A board shall provide in its bylaws that the following
actions require the unanimous approval of all voting members of the
board:
(i) A determination to acquire, construct, operate, or
maintain
any
form of rail passenger service within a public transit region.
(i) (ii) A
determination to acquire a public transportation
provider. Unless an authority secures the affirmative vote of a
majority of the electors of each member county in the public
transit region as provided in section 7(2), the authority shall not
acquire a public transportation provider that does business in a
public transit region unless both of the following conditions are
satisfied:
(A) All accrued liabilities, funded and unfunded, of the
public transportation provider being acquired have been paid or are
required to be paid by a person other than the authority.
(B) The board unanimously agrees to comply with all
requirements for obtaining federal operating and capital assistance
grants under the moving ahead for progress in the 21st century act,
Public
Law 112-141, and the regulations promulgated under the
moving
ahead for progress in the 21st century that act ,
Public Law
112-141,
with respect to the public
transportation provider being
acquired.
(ii) (iii) A
determination to place on a ballot the question of
acquiring, accepting responsibility for, or obligating itself to
assume liability for or to pay any legacy costs, including, but not
limited to, costs associated with litigation, claims, assessments,
worker's compensation awards or charges, swap losses, pensions,
health care, or other postemployment benefits, of a public
transportation provider that may be purchased, merged with,
assumed, or otherwise acquired by an authority.
(4) A board shall keep a written or printed record of each
meeting. A written or printed record of each meeting and any other
document or record prepared, owned, used, in the possession of, or
retained by an authority in the performance of an official function
shall be made available to the public under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.
(5) A board shall provide for a uniform system of accounts for
an authority to conform to and for the auditing of the authority's
accounts. The board shall obtain an annual audit of an authority by
an independent certified public accountant and report on the audit
and auditing procedures under sections 6 to 13 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433.
The audit shall be in accordance with generally accepted government
auditing standards and shall satisfy federal regulations regarding
federal grant compliance audit requirements. An audit obtained
under this subsection shall be filed with the state treasurer and
the department.
(6) Within 90 days after the first board meeting, a board
shall adopt and maintain a budget for the fiscal year in accordance
with the uniform budget and accounting act, 1968 PA 2, MCL 141.421
to 141.440a.
(7) Within 90 days after the first board meeting, a board
shall establish policies and procedures 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 an authority to
efficiently and effectively meet its needs using competitive
procurement methods to secure the best value for the authority. A
board shall make all discretionary decisions concerning the
solicitation, award, amendment, cancellation, and appeal of
authority contracts. In establishing policies and procedures under
this subsection, a board shall provide for the acquisition of
professional services, including, but not limited to, architectural
services, consulting 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 an authority.
(8) Beginning 1 calendar year after the creation of an
authority under this act, the board shall submit a report to the
house of representatives and senate appropriations subcommittees on
transportation and the house of representatives and senate
committees on transportation on March 31 of each year that includes
all of the following information from the preceding calendar year:
(a) Financial status of the authority.
(b) Financial status of public transportation providers within
the public transit region.
(c) Operating costs of the authority.
(d) The status of any rolling rapid transit system.
(e) The average daily and annual ridership of a rolling rapid
transit system.
(f) The dashboard developed by the authority under subsection
(9)(d).
(g) The number and severity of any accidents that occur that
involve a rolling rapid transit system.
(9) Within 120 days after the first board meeting, a board
shall establish a website for the authority and the authority shall
post on the website its budget, policies and procedures, and
updates on authority activities and transactions and the progress
of any project, including, but not limited to, a proposed rolling
rapid transit system, as they become available. An authority shall
also post all of the following information on a website established
under this subsection:
(a) An asset management plan for all revenue vehicles and
facilities, major facility components, and major pieces of
equipment as defined by the department. An authority shall update
the asset management plan annually.
(b) The method used by the authority to determine the
percentage of operating costs that will be funded with local funds
and the percentage that will be funded with fares. An authority
shall update this information every 3 years.
(c) A plan and a commitment to conduct a survey of user
satisfaction and a survey of general public satisfaction with the
services and performance of the authority once every 3 years. An
authority shall provide results for the most recent completed
surveys under this subdivision to the department.
(d) A dashboard of the authority's performance that includes,
at a minimum, the information required under subdivisions (a)
through
to (c). The dashboard shall also include annual
performance
indicators for the authority that have been established by the
board. The dashboard shall be readily available to the public, and
the authority shall update the dashboard annually.
(10) A board may not enter into a 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 state and federal law.
(11) Within 90 days after the first board meeting, a board
shall adopt a procurement policy consistent with the requirements
of this act and federal and state laws relating to procurement.
Preference shall be given to firms based in a public transit region
and each county within a public transit region, consistent with
applicable law.
(12) Nothing in this section shall be construed as creating a
quota or set-aside for any city or any county in a public transit
region, and no quota or set-aside shall be created.
(13) An authority shall issue an annual report to the board
and each member jurisdiction within a public transit region
detailing all contracts entered into and listing the names and
headquarters of all authority vendors with whom the authority has
contracted for services during the previous fiscal year.
(14) Within 90 days after the first board meeting, a board
shall establish and adopt all of the following:
(a) A policy to govern the control, supervision, management,
and oversight of each contract to which an authority is a party.
(b) Procedures to monitor the performance of each contract 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. 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.
(c) Policies to ensure that an authority does not enter into a
procurement or employment contract with a person who has been
convicted of a criminal offense related to the application for or
performance of a contract or subcontract with a governmental entity
in any state. As used in this subdivision and subdivision (d),
"person" includes affiliates, subsidiaries, officers, directors,
and managerial employees of a business entity, or an individual or
entity who, indirectly or directly, holds a pecuniary interest in a
business entity of 20% or more.
(d) Polices 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, in this state or any other state, 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, violation of state or
federal antitrust statutes, or similar laws.
(15) 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 competitive purchasing
agreement with the federal government, this state, or other public
entities for the purchase of necessary goods or services. An
authority may enter into lease purchases or installment purchases
for periods not exceeding the useful life of the items purchased
unless otherwise prohibited by law. In all purchases made by an
authority, if consistent with applicable federal and state law,
preference shall be given first to products manufactured or
services offered by firms based in the authority's public transit
region, including, but not limited to, the cities and counties in a
public transit region, and second to firms based in this state. An
authority shall actively solicit lists of potential bidders for
authority contracts from each city and each county in a public
transit region. Except as otherwise provided in this section, an
authority shall utilize competitive solicitation for all purchases
authorized under this act unless 1 or more of the following apply:
(a) An emergency directly and immediately affecting service or
public health, safety, or welfare requires the immediate
procurement of supplies, materials, equipment, or services to
mitigate an imminent threat to public health, safety, or welfare,
as determined by an 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
another public entity for the purchase of necessary goods and
services at fair and reasonable prices using a competitive
procurement method for authority operations.
(g) The value of the procurement is less than $25,000.00, and
the board has established policies or procedures to ensure that
goods or services with a value of less than $25,000.00 are
purchased by the board at fair and reasonable prices, including a
requirement that for purchases and sales of $25,000.00 or less, but
over $5,000.00, written price quotations from at least 3 qualified
and responsible vendors shall be obtained or a memorandum shall be
kept on file showing that fewer than 3 qualified and responsible
vendors exist in the market area within which it is practicable to
obtain quotations. 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.
(16) Notwithstanding any other requirement of this act, if an
authority applies for and receives state or federal funds that
require the authority to comply with procurement or contracting
requirements that are in conflict with this act, the state or
federal
requirements shall take precedence over the requirements of
this act.
(17) A board may employ personnel as it considers necessary to
assist the board in performing the powers, duties, and
jurisdictions of the authority, including, but not limited to,
employment of a chief executive officer and other senior executive
and administrative staff. A board shall hire a chief executive
officer and any necessary support staff for the chief executive
officer. Individual board members shall not hire or be assigned
personal staff.
(18) A board shall establish policies to ensure that the board
and an authority do not do either of the following:
(a) Fail or refuse to hire, recruit, or promote; demote;
discharge; or otherwise discriminate against an individual with
respect to employment, compensation, or a term, condition, or
privilege of employment, or a contract with the authority in a
manner that is not in compliance with state or federal law.
(b) Limit, segregate, or classify an employee, a contractor,
or an 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 in a manner that is not in
compliance with state or federal law.
(19) A board shall create a citizens' advisory committee that
consists of public transit region residents. The citizens' advisory
committee shall be composed as follows:
(a) Forty percent of the committee shall be made up of users
of public transportation, as follows:
(i) At least 25% of the users of public transportation on the
committee shall be senior citizens or persons with disabilities.
(ii) Two users of public transportation from each of the
following counties within the public transit region for the
authority:
(A) The qualified county.
(B) The county with the second largest population according to
the most recent decennial census.
(C) The county with the third largest population according to
the most recent decennial census.
(D) The county with the fourth largest population according to
the most recent decennial census.
(iii) Two users of public transportation from the city in the
qualified county with the largest population according to the most
recent decennial census.
(iv) Two users of public transportation from each additional
county participating in the authority under section 4 and not
listed in subparagraph (ii).
(b) Twenty percent of the committee shall be made up of
individuals from organizations representing senior citizens and
persons with disabilities.
(c) Forty percent of the committee shall be made up of
individuals representing business, labor, community, and faith-
based organizations.
(20) A citizens' advisory committee created under subsection
(19) may meet at least once every quarter. The citizens' advisory
committee may make reports to a board, including recommendations,
at each board meeting. A citizens' advisory committee may do all of
the following:
(a) Review and comment on the comprehensive regional public
transit service plan for a public transit region and all annual
updates.
(b) Advise a board regarding the coordination of functions
between different owners and operators of public transportation
facilities within a public transit region.
(c) Review and comment on a specialized services coordination
plan required by section 10e of 1951 PA 51, MCL 247.660e.
(d) Upon request of a board, provide recommendations on other
matters that concern public transportation in a public transit
region.
(21) A board shall create a public transportation provider
advisory council that consists of 2 members appointed by each
public transportation provider in the public transit region. The
public transportation provider advisory council may make reports to
a board, including recommendations, at each board meeting. The
public transportation provider advisory council shall only make
recommendations to a board on the following issues:
(a) Coordination of service.
(b) Funding.
(c) Plans.
(d) Specialized services.
(e) Other matters as requested by a board.