May 24, 2016, Introduced by Senator ANANICH and referred to the Committee on Local Government.
A bill to provide for the establishment of municipal recovery
and development authorities in certain local governments; to
provide for the powers and duties of a municipal recovery and
development authority; to authorize the levy and collection of a
property tax by a municipal recovery and development authority; to
provide for the issuance of bonds, notes, and other obligations; to
authorize certain investments; and to provide for the powers and
duties of certain government officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"municipal recovery and development authority act".
Sec. 3. As used in this act:
(a) "Articles" means the articles of incorporation of an
authority.
(b) "Authority" means a municipal recovery and development
authority established under this act.
(c) "Board" means the board of directors of an authority.
(d) "Chief executive officer" means any of the following:
(i) For a city, the mayor of the city.
(ii) For a village, the president of the village.
(iii) For a township, the supervisor of the township.
(e) "Governing body" means any of the following:
(i) For a city, the council, commission, or other entity
vested with legislative power for the city.
(ii) For a village, the council, commission, or other entity
vested with legislative power for the village.
(iii) For a township, the township board of the township.
(f) "Local government" means a city, village, or township in
which a drinking water declaration of emergency was issued.
Sec. 5. (1) A local government may form a municipal recovery
and development authority to promote and assist in the recovery and
economic development of that local government.
(2) A municipal recovery and development authority is an
authority under section 6 of article IX of the state constitution
of 1963. A municipal recovery and development authority is a public
corporate body with the power to sue and be sued in any court of
this state.
(3) A municipal recovery and development authority possesses
all the powers necessary for carrying out the purposes of its
formation. The enumeration of specific powers in this act shall not
be construed as a limitation on the general powers of an authority,
consistent with its articles.
Sec. 7. (1) To initiate the establishment of an authority,
articles of incorporation shall be prepared by a majority of the
members of the governing body of the local government establishing
the authority. The articles of incorporation shall include all of
the following:
(a) The name of the authority.
(b) The size of the board of the authority, the qualifications
and terms of office of board members, the manner of appointing the
members of the board of the authority, and the procedure for
filling vacancies in the office of board member, consistent with
section 9.
(c) The purpose of the authority.
(d) The method of dissolution of the authority.
(e) Any other matters considered advisable.
(2) The articles shall be adopted and may be amended by an
affirmative vote of a majority of the members of the governing body
of the local government establishing the authority.
(3) Before the proposed articles or proposed amendments to the
articles are adopted, the proposed articles or amendments shall be
published not less than once in a newspaper generally circulated
within the local government. The adoption of proposed articles or
amendments by the local government shall be evidenced by an
endorsement on the articles or amendments by the clerk of the local
government.
(4) Upon adoption of the articles or amendments to the
articles by the local government, a printed copy of the articles or
the amended articles shall be filed with the secretary of state by
the clerk of the local government.
(5) The authority's articles of incorporation, or amendments
to the articles, take effect upon filing with the secretary of
state.
Sec. 9. (1) An authority created under this act shall be
directed and governed by a board of directors consisting of 7
members appointed as provided in this section.
(2) Subject to subsection (3), the board shall be appointed as
follows:
(a) One member who is a health professional licensed or
registered under article 15 of the public health code, 1978 PA 368,
MCL 333.16101 to 333.18838, appointed by the chief executive
officer of the local government.
(b) One member who is a civil engineer licensed as a
professional engineer under article 20 of the occupational code,
1980 PA 299, MCL 339.2001 to 339.2014, appointed by the chief
executive officer of the local government.
(c) One member who is a certified public accountant licensed
as a certified public accountant under article 7 of the
occupational code, 1980 PA 299, MCL 339.720 to 339.736, appointed
by the governing body of the local government.
(d) One member who is an education professional, appointed by
the governing body of the local government. As used in this
subdivision, "education professional" includes, but is not limited
to, a teacher, public school administrator, professor, or college
or university administrator.
(e) Two at-large members appointed by the chief executive
officer of the local government.
(f) One at-large member appointed by the governing body of the
local government.
(3) At least 2 of the members appointed by the chief executive
officer to the board and at least 2 of the members appointed by the
governing body to the board must be residents of the local
government.
(4) Except as otherwise provided in this subsection, the term
of office for members of the board is 4 years. For the first
appointments to the board, all of the following apply:
(a) One of the members appointed under subsection (2)(e) by
the chief executive officer shall be appointed for 1 year.
(b) One of the members appointed under subsection (2)(e) by
the chief executive officer shall be appointed for 2 years.
(c) The member appointed under subsection (2)(f) by the
governing body shall be appointed for 3 years.
(5) If a vacancy occurs on the board other than by expiration
of a term of office, the vacancy shall be filled in the same manner
as the original appointment for the remainder of the term of
office.
Sec. 11. (1) Within 14 days following the appointment of the
last board member to the board, the board shall hold its first
meeting.
(2) At its first meeting, the board shall select a
chairperson, treasurer, and any other officers as the board
considers necessary.
(3) The board shall hire an executive director to whom the
authority may delegate any of its administrative powers and
authorizations. However, an executive director shall not enter into
a contract that has a cumulative value of $100,000.00 or more
without approval by a majority of the members of the board
appointed and serving.
(4) The board shall select, employ, and fix the compensation
for employees of the board and contract for those legal and other
professional services that the board considers necessary to
effectuate the purposes of the authority. The legislature shall
appropriate from the general fund of this state an amount necessary
to implement this subsection.
(5) A majority of the members of the board constitute a quorum
for the purpose of conducting business and exercising powers of the
authority. Official action may be taken by an authority upon the
vote of a majority of the board members present, unless the
articles of incorporation or authority bylaws require a larger
number.
(6) The board shall adopt rules and bylaws governing its
procedures and the holding of meetings. The board shall designate
an office or location as its principal place of business.
(7) The business of the board shall be conducted at a public
meeting of the board held in compliance with the open meetings act,
1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date,
and place of the meeting shall be given in the manner required by
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. After
organization, a board shall adopt a schedule of regular meetings
and adopt a regular meeting date, place, and time.
(8) A board shall keep a written or printed record of each
meeting, which record and any other document or record prepared,
owned, used, in the possession of, or retained by the authority in
the performance of an official function shall be made available to
the public in compliance with the freedom of information act, 1976
PA 442, MCL 15.231 to 15.246.
(9) The board shall provide a monthly progress report to the
chief executive officer and the governing body of the local
government and the local government shall make that monthly
progress report available on the local government's Internet
website. The monthly progress report shall include, but not be
limited to, a list of all expenditures by the authority for the
reporting period.
Sec. 13. (1) A board shall obtain an annual audit of the
authority, and report on the audit and auditing procedures, in the
manner provided by sections 6 to 13 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit shall
also be in accordance with generally accepted government auditing
standards as promulgated by the United States General Accounting
Office and shall satisfy federal regulations relating to federal
grant compliance audit requirements.
(2) An authority shall prepare budgets and appropriations acts
in the manner provided by sections 14 to 19 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439.
(3) The state treasurer, the attorney general, a prosecuting
attorney, bank, certified public accountant, certified public
accounting firm, or other person shall have the same powers,
duties, and immunities with respect to the authority as provided
for local units in sections 6 to 20 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.440.
(4) If an authority ends a fiscal year in a deficit condition,
the authority shall file a financial plan to correct the deficit
condition in the same manner as provided in section 21(2) of the
Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL
141.921.
(5) The board may authorize funds of the authority to be
invested or deposited in any investment or depository authorized
under section 1 of 1943 PA 20, MCL 129.91.
Sec. 15. An authority may do any of the following:
(a) Provide funding to the local government to promote and
assist in the recovery and economic development of that local
government.
(b) Levy a tax as provided in section 17.
(c) Make and enter into contracts, agreements, or instruments
necessary or incidental to the performance of its powers, duties,
functions, and responsibilities under this act.
(d) Solicit, receive, and accept gifts, grants, loans,
contributions of money, property, or other things of value, or
other aid or payment from any federal, state, local, or
intergovernmental agency or from any other person or entity, public
or private, upon terms and conditions acceptable to the authority,
or participate in any other way in a federal, state, local, or
intergovernmental program.
(e) Apply for and receive loans, grants, guarantees, or other
financial assistance from any federal, state, local, or
intergovernmental agency or from any other person or entity, public
or private.
(f) Convey, sell, transfer, exchange, lease, or otherwise
dispose of property or rights or interests in property to any
person for consideration on terms and conditions and in a manner
the authority considers proper, fair, and valuable.
(g) Issue bonds or notes of the authority for any of its
purposes under this act.
(h) Acquire, hold, lease, and dispose of real and personal
property in the exercise of its powers and the performance of its
duties under this act.
(i) Engage or contract for legal and other professional
services as considered necessary to effectuate the purposes of the
authority.
(j) Any other things necessary or convenient to exercise the
powers, duties, functions, and responsibilities of the authority
under this act.
Sec. 17. (1) An authority may levy a tax in an amount and for
a period of time as determined by the board on all of the taxable
property within the local government for the purpose of promoting
and assisting in the recovery and economic development of the local
government. The authority may levy the tax only if a majority of
the electors in the local government voting on the tax at a
statewide general or primary election approve the tax. The proposal
for a tax shall be submitted to a vote of the electors of the
authority by resolution of the board.
(2) A ballot proposal for a tax shall comply with the
requirements of section 24f of the general property tax act, 1893
PA 206, MCL 211.24f. A proposal for a tax shall not be placed on
the ballot unless the proposal is adopted by a resolution of the
board and certified by the board not later than 60 days before the
election to the clerk of the local government for inclusion on the
ballot. The proposal shall be certified for inclusion on the ballot
at the next eligible election, as specified by the board's
resolution.
(3) If a majority of the electors in the local government
voting on the question of a tax approve the proposal as provided
under subsection (1), the tax levy is authorized. Not more than 2
elections may be held in a calendar year on a proposal for a tax
authorized under this act.
Sec. 19. (1) If an election for a tax under section 17 is to
be held in conjunction with a general election or a state primary
election, the notices of close of registration and election shall
be published as provided for by the state election laws. Otherwise,
the clerk of the local government shall publish the notices of
close of registration and election. The notice of close of
registration shall include the ballot language of the proposal.
(2) The results of an election for a tax shall be canvassed by
the board of county canvassers of the county. The board of county
canvassers of the county shall make the final canvass of an
election for a tax based on the returns of the election inspectors
in that local government. The board of county canvassers of the
county shall certify the results of the election to the board of
the authority.
Sec. 21. A tax authorized to be levied by an authority under
this act shall be levied and collected at the same time and in the
same manner as provided by the general property tax act, 1893 PA
206, MCL 211.1 to 211.155.
Sec. 23. (1) For the purpose of promoting and addressing the
recovery and economic development of a local government, the
authority may borrow money and issue revenue bonds and notes for
the purposes provided in this section.
(2) Revenue bonds are payable upon the terms and conditions
specified by the authority in the resolution under which the
authority issues the bonds or in a related trust agreement or trust
indenture. The board of directors in the resolution authorizing the
bonds, a trust indenture, or other agreement entered into with
respect to bonds of the authority may pledge any funds received or
to be received by the authority for the payment of the bonds or
other obligations of the authority under the agreement and create a
first lien in favor of the holders of the bonds or a party subject
to the agreement. The principal of and interest on the bonds shall
be payable, except as provided in this act, solely from the
proceeds described in the resolution authorizing the bonds or trust
indenture.
(3) The resolution authorizing the issuance of bonds under
this section shall include all of the following:
(a) A statement that the bonds are revenue bonds.
(b) A statement briefly describing the recovery and economic
development.
(c) In the case of refunding bonds, identification of the
parameters under which the bonds can be issued.
(d) Delegation for a time period at the board of directors'
discretion to an officer, employee, or designated agent of the
authority the power to issue, sell, and deliver bonds within the
limits on those bonds established by the authority as to any of the
following:
(i) Form.
(ii) Maximum interest rates.
(iii) Maturity dates.
(iv) Purchase price.
(v) Denominations.
(vi) Redemption dates and premiums, if any.
(vii) Nature of the security.
(viii) Selection of an applicable interest rate index.
(ix) Other terms and conditions with respect to the bond issue
that the authority prescribes.
(e) Specification of other details and matters that are
considered necessary or advisable to provide for the prompt and
orderly retirement of the bonds and the interest on the bonds at
maturity.
(f) Provision for the deposit of revenues pledged for the
payment of bonds issued under this section into a separate account
for the purpose of paying principal and interest on those bonds,
the administrative costs associated with those bonds, and any other
bonds issued by the authority that are secured by those revenues.
(4) An authority may issue bonds under this section to refund
any bonds by issuing new bonds if it considers the refunding
expedient, whether or not the bonds to be refunded have matured,
and may issue bonds partly to refund bonds that are outstanding and
partly for restructuring or any of the authority's other authorized
purposes.
(5) Bonds issued under this act shall not mature more than 30
years from the date of the original issuance.
(6) An authority may issue bond anticipation notes secured by
the issuance of revenue bonds issued under this section in addition
to the revenues that the authority is permitted to pledge as
provided in this section.
(7) Any bonds issued under this act shall be sold to the
Michigan finance authority created by Executive Reorganization
Order No. 2010-2, MCL 12.194.
(8) Bonds issued by an authority under this act are not
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821. Bonds issued by an authority under this act
are not subject to the revenue bond act of 1933, 1933 PA 94, MCL
141.101 to 141.140.