HOUSE BILL No. 5103


     September 30, 1997, Introduced by Reps. Kilpatrick, Thomas, Bodem, Raczkowski, Kukuk, Anthony, Varga, Olshove, Stallworth, Wallace and Galloway and referred to the Committee on Marine Affairs and Port Development.


        A bill to amend 1978 PA 639, entitled

   "Hertel-Law-T. Stopczynski port authority act,"

   by amending sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15,

   16, 18, 23, and 24 (MCL 120.102, 120.103, 120.104, 120.105,

   120.106, 120.108, 120.109, 120.110, 120.111, 120.112, 120.113,

   120.114, 120.115, 120.116, 120.118, 120.123, and 120.124), sec-

   tions 14 and 18 as amended by 1983 PA 23 and section 23 as

   amended by 1984 PA 256.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  As used in this act:

 2         (a) "Authority" means a port authority created under this

 3    act and may also include the area within the jurisdiction of an

 4    authority.

 5         (b) "Constituent unit" means a city or county requesting the

 6    incorporation of an authority.


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 1         (c) "Governing body of the city" means the city council or

 2    city commission of a city requesting incorporation of an author-

 3    ity created under this act.

 4         (d) "Governing body of the county" means the county board of

 5    commissioners of a county participating in an authority created

 6    under this act.

 7         (e) "Port facilities" means  those  facilities  owned by the

 8     port authority  such as:  seawall jetties; piers; wharves; docks;

 9    boat landings; marinas; MARKETS; warehouses; storehouses; eleva-

10    tors; grain bins; cold storage plants; terminal icing plants;

11    bunkers; oil tanks; ferries; canals; locks; bridges; RAILROAD

12    CONNECTIONS; SIDETRACKS; SIDINGS; tunnels; seaways; conveyors;

13    modern appliances for the economical handling, storage, and

14    transportation of freight and handling of passenger traffic;

15    transfer and terminal facilities;  required for the efficient

16     operation and development of ports and harbors;  other harbor

17    improvements;  or  improvements, enlargements, remodeling, or

18    extensions of any of  these  THE ABOVE buildings or structures;

19    OR ANY OTHER PROPERTY OR FACILITIES NECESSARY OR USEFUL IN CON-

20    NECTION WITH THE BUILDINGS OR STRUCTURES LISTED IN THIS SUBDIVI-

21    SION THAT ARE UPON, IN, OVER, UNDER, ADJACENT TO, OR NEAR TO

22    NAVIGABLE WATERS AND THAT ARE NECESSARY OR USEFUL FOR THE FUR-

23    THERANCE OF WATER OR LAND COMMERCE.

24         (f) "Project" means the acquisition, purchase, construction,

25    reconstruction, rehabilitation, remodeling, improvement, enlarge-

26    ment, repair, condemnation, maintenance, or operation of port

27    facilities.



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 1         Sec. 3.  An  EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AN

 2    authority may exercise and apply any or all of its powers and

 3    duties, as prescribed and set forth in this act, within the

 4    respective boundaries of the county or counties creating a port

 5    authority under this act, including jurisdiction over commer-

 6    cially navigable water lying  therein  WITHIN THOSE BOUNDARIES.

 7         Sec. 4.  (1) A city,  and  A county, a combination of

 8    counties, or a combination consisting of at least 1 city and 1

 9    county, BY RESOLUTION OF THE GOVERNING BODY OR by joint resolu-

10    tion of their respective governing bodies, may request the gover-

11    nor to authorize the incorporation of an authority.  The governor

12    shall consider the recommendations of the  department of  state

13     highways and  transportation DEPARTMENT and the department of

14     commerce  CONSUMER AND INDUSTRY SERVICES in authorizing the

15    authority.  The initial articles of incorporation shall be

16    approved by the governor and may  thereafter  THEN be amended by

17    resolution of the authority, subject to approval by the

18    governor.  After approval by the governor, the articles of incor-

19    poration and any amendments to those articles shall be effective

20    upon filing with the secretary of state.

21         (2) An authority created under this act shall be a body cor-

22    porate and politic.  NOT MORE THAN 1 AUTHORITY SHALL BE CREATED

23    WITHIN THE BOUNDARIES OF A CITY, COUNTY, COMBINATION OF COUNTIES,

24    OR COMBINATION OF AT LEAST 1 CITY AND 1 COUNTY.

25         (3) The exercise by an authority of the powers conferred by

26    this act shall be considered and held to be an essential





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 1    governmental function and a benefit to, and a legitimate public

 2    purpose of, the state, the authority, and the constituent units.

 3         Sec. 5.  (1) Except as provided in subsection (5), an

 4    authority shall consist of 5 or 7 members as follows:

 5         (a) One member shall be appointed by the governor.

 6         (b) The remaining members shall be appointed by the govern-

 7    ing body of each city and the governing body of each county that

 8    requested the incorporation of the authority.  The representation

 9    on, and the number of members of, the authority shall be deter-

10    mined by agreement among the incorporating units and included

11    within the joint resolution requesting incorporation of the

12    authority.

13         (2) The members first appointed shall serve staggered

14    terms.  Thereafter, each member shall serve for a term of 4

15    years, except that a person appointed to fill a vacancy shall be

16    appointed for the balance of the unexpired term.  A member shall

17    be eligible for reappointment.

18         (3) The members shall elect 1 of their membership as chair-

19    person and another as vice-chairperson, shall designate their

20    terms of office, and shall appoint a secretary-treasurer who need

21    not be a member.  A majority of the members of the authority

22    shall constitute a quorum, the affirmative vote of which shall be

23    necessary for any action taken by the authority.  However, the

24     authority shall not commit funds of a constituent entity without

25     the concurrence of the member representing that entity.  A unani-

26     mous vote of the members of the authority, which may be





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 1    accomplished by written consent of an absent member, shall be

 2     required to approve an operating budget or capital outlay. 

 3         (4) The members shall serve without compensation but shall

 4    be reimbursed for all necessary travel and other expenses

 5    incurred in the discharge of their duties.

 6         (5) An authority  which  THAT is established in a county

 7    having a population of  2,000,000  1,500,000 or more shall con-

 8    sist of  5  7 members as follows:

 9         (a) One member shall be appointed by the governor.

10         (b)  Two members  ONE MEMBER shall be appointed by  a major-

11     ity of all the members  THE COUNTY EXECUTIVE, OR THE CHAIRPERSON

12    of the county board of commissioners IF THERE IS NO COUNTY

13    EXECUTIVE, of the county IN WHICH THE PRINCIPAL OFFICE OF THE

14    AUTHORITY IS LOCATED.  The members appointed shall be nominated

15     by the commissioners on the board who do not reside within the

16     political boundaries of a city having a population of 1,000,000

17     or more.  THE APPOINTMENT IS SUBJECT TO THE APPROVAL OF THE LEG-

18    ISLATIVE BODY OF THE COUNTY.

19         (C) ONE MEMBER SHALL BE APPOINTED BY THE COUNTY EXECUTIVE,

20    OR THE CHAIRPERSON OF THE COUNTY BOARD OF COMMISSIONERS IF THERE

21    IS NO COUNTY EXECUTIVE, OF A COUNTY THAT IS ADJACENT TO THE

22    COUNTY DESCRIBED IN SUBDIVISION (B), THAT ABUTS NAVIGABLE WATERS,

23    AND THAT HAS A POPULATION OF 600,000 OR MORE.  THE APPOINTMENT IS

24    SUBJECT TO THE APPROVAL OF THE COUNTY BOARD OF COMMISSIONERS OF

25    THE COUNTY.

26         (D)  (c) Two  FOUR members shall be appointed by the mayor

27    of a city having a population of  1,000,000  750,000 or more



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 1    which is located in the county IN WHICH THE PRINCIPAL OFFICE OF

 2    THE AUTHORITY IS LOCATED.

 3         (6) MEMBERS OF THE AUTHORITY ARE IMMUNE FROM PERSONAL

 4    LIABILITY IN THE EXERCISE OF THE POWERS CONTAINED IN THIS ACT TO

 5    THE SAME EXTENT PROVIDED FOR IN THE NONPROFIT CORPORATION ACT,

 6    1982 PA 162, MCL 450.2101 TO 450.3192.

 7         Sec. 6.  Before the issuance of any bonds, notes, or other

 8    evidences of indebtedness under this act, the secretary-treasurer

 9    of an authority shall execute a bond in the penal sum of

10    $100,000.00, conditioned upon the faithful performance of the

11    duties of the office and executed by a surety company authorized

12    to transact business in this state as surety, UNLESS THIS

13    REQUIREMENT IS WAIVED BY A RESOLUTION ADOPTED BY THE MEMBERS OF

14    THE AUTHORITY.  The bond shall be filed in the office of the sec-

15    retary of state.  The premium of the bond shall be a current

16    expense of the authority.

17         Sec. 8.  An authority may DO 1 OR MORE OF THE FOLLOWING:

18         (a) Adopt, amend, and repeal bylaws for the regulation of

19    its affairs and the conduct of its business.

20         (b) Sue and be sued on the same basis as the state;  and 

21    adopt and register with the secretary of state an official seal

22    and alter that seal at its pleasure; AND CREATE OR PARTICIPATE IN

23    ENTITIES OR INSTRUMENTALITIES CREATED TO EFFECTUATE THE PURPOSES

24    OF THE AUTHORITY AND THIS ACT.

25         (c) Maintain offices at a place or places, either within or

26     without  OUTSIDE OF its jurisdiction as  it  THE AUTHORITY may

27    determine.



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 1         (d) Acquire, OWN, construct, reconstruct, rehabilitate,

 2    improve, maintain, lease as lessor or as lessee, repair, or

 3    operate, OR ANY COMBINATION OF THESE, port facilities within its

 4    territorial jurisdiction AND AN ADJACENT TERRITORIAL JURISDICTION

 5    OR JURISDICTIONS IN CONCERT WITH THE GOVERNING BODY OF THAT

 6    JURISDICTION OR JURISDICTIONS PURSUANT TO THE URBAN COOPERATION

 7    ACT OF 1967, 1967 (EX SESS) PA 7, MCL 124.501 TO 124.512, includ-

 8    ing the dredging of ship channels and turning basins and the

 9    filling and grading of land  therefor  FOR THESE PURPOSES.  An

10    authority may operate a leased facility, owned by the authority,

11    if the lessee defaults and a new lease is negotiated or competi-

12    tively bid.

13         (e) Designate the location and character of the port facili-

14    ties  which  THAT the authority may hold, CONTROL, or own or over

15    which it is authorized to act and regulate all matters related to

16    the location and character of those port facilities.

17         (f) Acquire, hold, and dispose of real and personal property

18    WITHIN OR OUTSIDE OF THE AUTHORITY'S TERRITORIAL JURISDICTION.

19         (g) Make directly, or through the hiring of expert consul-

20    tants, investigations and surveys of whatever nature, including

21    studies of business conditions, freight rates, port services,

22    physical surveys of the conditions of channels and structures,

23    and the necessity for additional port facilities for the develop-

24    ment and improvement of commerce and recreation and for the more

25    expeditious handling of that commerce and recreation, and make

26    studies, surveys, and estimates, as necessary for the execution

27    of its powers under this act.



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 1         (h) Promulgate all necessary rules to fulfill the purposes

 2    of this act.

 3         (i) Issue its bonds, notes, or other evidences of indebted-

 4    ness as provided in this act.

 5         (j)  Fix  ESTABLISH and revise from time to time and charge

 6    and collect rates, fees, rentals, or other charges for the use of

 7     a  ANY PORT facility  owned by  THAT the authority IS AUTHORIZED

 8    TO ACQUIRE OR IN WHICH THE AUTHORITY HAS AN INTEREST.

 9         (K) PROVIDE AND OPERATE INTEGRATED LOGISTIC SERVICES,

10    INCLUDING, BUT NOT LIMITED TO, PACKAGING, TRANSPORTATION, WARE-

11    HOUSING, FREIGHT MANAGEMENT, SHIPPING, AND INFORMATION AND CUS-

12    TOMS BROKERAGE SERVICES, FOR MANUFACTURERS AND SHIPPERS OF GOODS

13    WHO USE PORT FACILITIES OWNED, LEASED, OR OPERATED BY THE AUTHOR-

14    ITY OR PORT FACILITIES IN WHICH THE AUTHORITY HAS AN INTEREST AND

15    ESTABLISH THOSE ENTITIES THAT ARE NECESSARY OR DESIRABLE TO PRO-

16    VIDE OR OPERATE THOSE SERVICES IN CONNECTION WITH PORT

17    FACILITIES.

18         (l) MAKE LOANS AND EXTEND CREDIT IN THE AMOUNTS AND ON THE

19    TERMS THE AUTHORITY DETERMINES.

20         (M) APPLY FOR, RECEIVE, AND MAINTAIN GRANTS OF AUTHORITY

21    FROM THE UNITED STATES FOREIGN TRADE ZONE BOARD UNDER CHAPTER

22    590, 48 STAT. 998, 19 U.S.C. 81a TO 81u, OR ANY SUCCESSOR ACT.

23         Sec. 9.  An authority may DO 1 OR MORE OF THE FOLLOWING:

24         (a) Appear in its own behalf before boards, commissions,

25    departments, or other agencies of the federal government,  or  of

26    any state, or OF CANADA OR ANY OF ITS PROVINCES, BEFORE

27    international conferences, and before committees of the congress



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 1    of the United States,  and  the state legislature, THE PARLIAMENT

 2    OF CANADA, AND THE LEGISLATURE OF ANY PROVINCE OF CANADA in all

 3    matters relating to the design, establishment, construction,

 4    extension, operation, improvement, repair, or maintenance of a

 5    project OWNED, IMPROVED, CONTROLLED, operated,  and  OR main-

 6    tained by the authority under this act, and appear before any

 7    federal or state agencies OR AGENCIES OF CANADA OR ANY OF ITS

 8    PROVINCES in matters relating to transportation rates, port serv-

 9    ices and charges, demurrage, switching, wharfage, towage, pilot-

10    age, differentials, discriminations, labor relations, trade prac-

11    tices, river and harbor improvements, aids to navigation, permits

12    for structures in navigable waters, THE EXERCISE OF ANY POWER

13    GRANTED TO AN AUTHORITY UNDER THIS ACT, and all other matters

14    affecting the physical development of, and the business interest

15    of, the authority and those it serves.

16         (b)  Make application  APPLY for, receive, and accept from

17    any federal, state, or municipal agency, foundation, public or

18    private agency, or individual, a grant or loan for, or in aid of,

19    the planning, construction, operation, or financing of a port

20    facility; and receive and accept contributions from any source of

21    money, property, labor, or other things of value, to be held,

22    used, and applied for the purposes for which the grant or contri-

23    bution may be made.

24         (c) Appoint an executive director who shall be the chief

25    administrative officer of the authority, and to whom the author-

26    ity may delegate any of its administrative powers and

27    authorizations.  During employment the executive director shall



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 1    not have a financial interest in port facilities or projects over

 2    which the authority has jurisdiction or power or authorization to

 3    act.

 4         (d) Employ personnel as is necessary and employ the services

 5    of private consultants and engineers, legal counsel, accountants,

 6    construction and financial experts, and other agents for render-

 7    ing professional and technical assistance and advice as may be

 8    necessary, and whose compensation, including the executive direc-

 9    tor, shall be determined by the authority.

10         Sec. 10.  An authority may DO 1 OR MORE OF THE FOLLOWING:

11         (a) Subject to the authority of the federal government and

12    the state and with the agreement of the constituent units, pro-

13    vide for the preservation of navigation within its territorial

14    jurisdiction, including the establishment by regulation of lines

15    beyond which piers, bulkheads, wharves, pilings, structures,

16    obstructions, or extensions of any character may not be built,

17    erected, constructed, or extended; provide by regulation for the

18    stationing, anchoring, and movement of vessels or other water-

19    craft; adopt rules to prevent material, refuse, or matter of any

20    kind from being thrown into, deposited, or placed where it may

21    fall, or be washed, into navigable waters under its jurisdiction;

22    ascertain the depth and course of the channels of those navigable

23    waters; erect and maintain, authorize the erection and mainte-

24    nance of, and make rules respecting wharves, bulkheads, piers,

25    and  piling  PILINGS, and the keeping of  the same  THOSE in

26    repair  ,  to prevent injury to navigation or health; regulate

27    the use of wharves, docks, piers, bulkheads, or pilings  owned 



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 1    CONTROLLED by it OR IN WHICH IT HAS AN INTEREST; lease or rent

 2    the same, and impose and collect dockage from vessels and water-

 3    craft lying at, or using the same; and collect wharfage and other

 4    charges upon goods, wares, merchandise, or other articles landed

 5    at, shipped from, stored on, or passed over the same.

 6         (b) Make and enter into contracts and agreements necessary

 7    or incidental to the performance of its duties and the execution

 8    of its powers under this act.

 9         (c) Lay out, construct, acquire, operate, lease, sell, and

10    convey planned industrial districts as a part of port facilities

11    within its jurisdiction.  , subject to the restrictions con-

12     tained in this act upon operation and ownership of port

13     facilities. 

14         (d) Do all acts and things necessary or convenient to pro-

15    mote and increase commerce and recreation within its territorial

16    jurisdiction and carry out the powers expressly granted and any

17    powers implied or necessary for the exercise of the powers

18    expressly granted in this act.

19         Sec. 11.  Except with respect to docks or wharves owned,

20    IMPROVED, controlled,  or  operated, OR MAINTAINED by  ,  the

21    authority, this act shall not be construed to impose a duty upon

22    an authority to a person using its waters in regard to the safety

23    thereof, or to render an authority liable for loss of life or

24    injury or damage to person or property  ,  by reason of an

25    obstruction in, or unsafe condition of, any part of its waters,

26    nor shall this act be construed to render the authority liable in





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 1    damages or otherwise for an omission to pass or enforce a rule or

 2    resolution made under this act.

 3         Sec. 12.  (1) An authority may acquire by purchase or lease,

 4    when it considers the purchase or lease expedient, lands, struc-

 5    tures, property, rights, rights of way, franchises, easements,

 6    and other interests in lands as it considers necessary or conven-

 7    ient for the construction or operation of a project  ,  upon

 8    terms and at a price as considered reasonable and agreed upon

 9    between the authority and the owner thereof.

10         (2) An authority may acquire by condemnation lands, property

11    rights, rights of way, franchises, easements, and other property,

12    or parts thereof or rights therein, of a person, partnership,

13    association, or corporation considered by the authority to be

14    necessary for the construction or efficient operation of a

15    project.  However, a facility currently operated as a port

16     facility by a terminal operator or a facility owned or operated

17     by and for the exclusive use of the owner or operator and a

18     facility owned or operated by a common carrier or public utility

19     shall be exempt from this subsection.  The condemnation shall be

20    made in the manner provided by  Act No. 295 of the Public Acts of

21     1966, as amended, being sections 213.361 to 213.391 of the

22     Michigan Compiled Laws  1966 PA 295, MCL 213.361 TO 213.391, OR

23    THE UNIFORM CONDEMNATION PROCEDURES ACT, 1980 PA 87, MCL 213.51

24    TO 213.75, except where that procedure may be inconsistent with

25    this act.

26         (3) An authority may sell or remove the buildings or other

27    structures upon lands taken by the authority, and may sell or



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 1    lease lands or rights or interest in lands or other property

 2    taken or purchased for the purposes of this act.

 3         Sec. 13.  (1) An authority and 1 or more constituent units

 4    may enter into a contract or contracts for the acquisition,

 5    improvement, enlargement, or extension of port facilities and for

 6    the payment of the cost  thereof  OF THOSE PORT FACILITIES by the

 7    contracting constituent units, with interest, over a period of

 8    not more than 40 years.

 9         (2) Each contracting constituent unit shall pledge its full

10    faith and credit for the payment of its obligations under the

11    contract IF APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON THE

12    QUESTION IN THE CONTRACTING CONSTITUENT UNIT.  If the constituent

13    unit has taxing power, each year it shall levy  a  THE APPROVED

14    tax upon all real and personal property within the constituent

15    unit, which may be imposed without limitation as to rate or

16    amount, to the extent necessary for the prompt payment of that

17    part of the contract obligations  as shall  THAT fall due before

18    the following year's tax collection.  The tax shall be in addi-

19    tion to any tax  which  THAT the contracting constituent unit may

20    otherwise be authorized to levy and may be imposed without limi-

21    tation as to rate or amount, but shall not be in excess of the

22    rate or amount necessary to pay the contract obligation.  If any

23    contracting constituent unit at the time of its annual tax levy

24    has on hand in cash any amount pledged to the payment of the cur-

25    rent obligations for which the tax levy is to be made,  then  the

26    annual tax levy may be reduced by that amount.  For the purpose





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 1    of obtaining the credit, funds may be raised by a contracting

 2    constituent unit in 1 or more of the following methods:

 3         (a) By service charge to users of the facilities owned,

 4    IMPROVED, CONTROLLED, OPERATED, OR MAINTAINED by the port

 5    authority.

 6         (b) By setting aside state collected funds disbursed to the

 7    contracting constituent unit.

 8         (c) By special assessment upon lands benefited.

 9         (d) By setting aside any other available money.

10         (3) A contracting constituent unit may agree to raise all or

11    any part of its contract obligation by 1 or more of the methods

12    enumerated in subsection (2)  which  THAT may be available.  The

13    various powers granted in this act to a constituent unit shall be

14    exercised by its governing body.

15         (4) If a constituent unit, other than a county, operating

16    under this act elects to raise money to pay all or a portion of

17    its share of the cost of a project by assessing the costs upon

18    benefited lands, its governing body shall so determine by resolu-

19    tion and fix the district therefor.  The governing body shall

20    then cause a special assessment roll to be prepared.  and there-

21     after the proceedings in respect to  THE PROCEDURES REGARDING the

22    special assessment roll and the making and collection of the spe-

23    cial assessments on the roll  ,  shall be in accordance with the

24    provisions of the statute or charter governing special assess-

25    ments in the constituent unit, except that the total assessment

26    may be divided into any number of installments not exceeding 30,

27    and any person assessed shall have the right at the hearing upon



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 1    the special assessment roll to object to the special assessment

 2    district previously established.

 3         Sec. 14.  (1) An authority may provide by resolution for the

 4    issuance of revenue bonds of the authority for the purpose of

 5    providing funds for paying the cost of port facilities, or for

 6    paying the cost of an extension, enlargement, or improvement of a

 7    project then under the control of the authority.  The bonds may

 8    be term bonds or serial bonds, or a combination  thereof  OF

 9    BOTH, and shall be issued, sold publicly or privately, and exe-

10    cuted in a manner  as may be  determined by the authority.  The

11    bonds issued pursuant to this section shall bear interest at the

12    rate provided in the municipal finance act,  Act No. 202 of the

13     Public Acts of 1943, as amended, being sections 131.1 to 139.3 of

14     the Michigan Compiled Laws  1943 PA 202, MCL 131.1 TO 139.3, pay-

15    able  semiannually,  and  shall mature  MATURING at a time or

16    times, not exceeding 40 years after their date of issuance, as

17    the authority may provide.  Unless an exception from prior

18    approval is available pursuant to subsection (5), a bond issued

19    under this act must first be approved by the  municipal finance

20     commission or its successor agency  DEPARTMENT OF TREASURY.

21         (2) When the authority considers refunding expedient, the

22    authority may refund bonds by the issuance of new bonds, whether

23    the bonds to be refunded have or have not matured.  The refunding

24    bonds shall be sold and the proceeds applied to the purchase,

25    redemption, or payment of the bonds to be refunded.  The proceeds

26    of the bonds of each series issued pursuant to this section shall

27    be paid to a trustee under a trust agreement securing the bonds



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 1    and shall be disbursed in a manner and under restrictions as may

 2    be provided in the trust agreement.

 3         (3) Revenue bonds issued pursuant to this section shall not

 4    be considered to constitute a debt of the state,  or  a political

 5    subdivision of the state,  or of  the authority, or any constitu-

 6    ent unit, or a pledge of the faith and credit of the state,  or 

 7    a political subdivision of the state,  or of  the authority, or

 8    any constituent unit, but shall be payable solely from the reve-

 9    nues or income to be derived from the projects.  The revenue

10    bonds shall contain on their face a statement to the effect that

11    the bonds and attached coupons are payable solely from revenues

12    and are not a general obligation of the state, a political subdi-

13    vision of the state, the authority, or a constituent unit, and

14    neither the faith and credit nor the taxing power of the state, a

15    political subdivision of the state, the authority, or a constitu-

16    ent unit, is pledged to the payment of the principal of or the

17    interest on the bonds.

18         (4) This act shall be construed as authorizing the issuance

19    of revenue bonds under this act without submitting the question

20    of issuance to the voters of the constituent units of the

21    authority.  Except in the case of refunding bonds, the authority

22     shall publish a notice of intent to issue bonds.  The notice

23     shall be directed to the electors of each of the constituent

24     units of the authority, and shall be published in a newspaper

25     which has general circulation in the territory of the authority,

26     and shall state the maximum amount of bonds to be issued, the

27     purpose of the bonds, source of payment, right of referendum on



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 1    the bonds, and other information the authority determines

 2     necessary to adequately inform the electors of the nature of the

 3     issue.  If, within 90 days after the publication of the notice a

 4     petition, signed by not less than 10% or 15,000 of the registered

 5     electors, whichever is less, residing within the limits of all of

 6     the constituent units of the authority, is filed with the clerk,

 7     or other recording officer, of the county where the authority is

 8     located, requesting a referendum upon the question of the issu-

 9     ance of the bonds, then the bonds shall not be issued until

10     approved by the vote of a majority of the electors of all of the

11     constituent units of the authority taken as a whole and not indi-

12     vidually qualified to vote and voting on the bonds at a general

13     or special election.  A special election called for this purpose

14     shall not be included in statutory or charter limitation as to

15     the number of special elections to be called within a period of

16     time.  Signatures on the petition shall be verified by a person

17     under oath, as the actual signatures of the persons whose names

18     are signed to the petition, and the clerk, or other recording

19     officer, of the county where the authority is located shall have

20     the same power to reject signatures and petitions as city clerks

21     pursuant to section 25 of Act No. 279 of the Public Acts of 1909,

22     as amended, being section 117.25 of the Michigan Compiled Laws.

23     The number of registered electors in any constituent unit of the

24     authority shall be determined by the township or city registra-

25     tion books, or both.  Section 5 of Act No. 279 of the Public Acts

26     of 1909, as amended, being section 117.5 of the Michigan Compiled

27     Laws, relative to notice of intention to issue bonds, shall not



   03986'97
                                  18

 1    apply to the authorization of the issuance of bonds under this

 2     act. 

 3         (5) The requirement of subsection (1) for obtaining the

 4    prior approval of the  municipal finance commission or its suc-

 5     cessor agency  DEPARTMENT OF TREASURY before issuing bonds under

 6    this act shall be subject to sections 10 and 11 of chapter III of

 7     Act No. 202 of the Public Acts of 1943, being sections 133.10

 8     and 133.11 of the Michigan Compiled Laws  THE MUNICIPAL FINANCE

 9    ACT, 1943 PA 202, MCL 133.10 AND 133.11, and the department of

10    treasury shall have the same authority as provided by section 11

11    of  Act No. 202 of the Public Acts of 1943  CHAPTER III OF THE

12    MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 133.11, to issue an order

13    providing or denying an exception from the prior approval

14    required by subsection (1) for bonds authorized by this act.

15         Sec. 15.  An authority shall determine the form of the bonds

16    of each series issued pursuant to section 14, including any

17    interest coupons to be attached  thereto  TO THE BONDS IF ANY,

18    the date of the bonds, the denomination of the bonds, and the

19    place of payment of principal and interest, which may be at any

20    bank or trust company within or  without  OUTSIDE OF the state.

21    The bonds of each series may be made redeemable before their

22    maturity or maturities at the option of the authority  ,  at a

23    price and under the terms and conditions as may be  fixed 

24    ESTABLISHED by the authority before issuance of the bonds.  If an

25    officer whose signature or a facsimile of whose signature appears

26    on any bonds or coupons ceases to be an officer before delivery

27    of the bonds, the signature or facsimile shall  nevertheless  be



   03986'97
                                  19

 1    valid and sufficient for all purposes  the same  as if the

 2    officer had remained in office until the delivery.  The bonds may

 3    be issued in  coupon or in registered form, or both, as the

 4     authority may determine, and provision may be made for the regis-

 5     tration of any coupon bonds as to principal alone and also as to

 6     both principal and interest, for the reconversion into coupon

 7     bonds of any bonds registered as to both principal and interest,

 8     and for the interchange of coupon and registered bonds  THE FORM

 9    THE AUTHORITY DETERMINES.

10         Sec. 16.  Revenue bonds issued pursuant to this act  shall 

11    MAY be secured by a trust agreement by and between the authority

12    and a corporate trustee, which may be any trust company or bank

13    having the powers of a trust company, within or without the

14    state.  The trust agreement may pledge or assign the rentals and

15    other revenues of the authority.  , but shall not convey or

16     mortgage part or all of a project.  The trust agreement shall

17    contain provisions for protecting and enforcing the rights and

18    remedies of the bondholders as may be reasonable and proper and

19    not in violation of law, including convenants setting forth the

20    duties of the authority in relation to the acquisition or con-

21    struction of a project and the extension, enlargement, improve-

22    ment, maintenance, operation, repair, and insurance of a project

23    and the custody, safeguarding, and application of all money and

24    may contain provisions for the employment of consulting engineers

25    in connection with the construction and operation of a project.

26    The trust agreement shall set forth the rights and remedies of

27    the bondholders and of the trustee,  and  may restrict the



   03986'97
                                  20

 1    individual right of action by the bondholders, and may contain

 2    any other provisions the authority may consider reasonable and

 3    proper for the security of the bondholders.

 4         Sec. 18.  (1) In addition to the bonds authorized in section

 5    14, bonds may be issued for the purpose of acquiring port facili-

 6    ties, as follows:

 7         (a) By the issuance of bonds in anticipation of payments to

 8    become due under contracts by which 1 or more constituent units

 9    agree to pay to an authority operating under this act certain

10    sums toward the cost of the acquisition, improvement, enlarge-

11    ment, or extension of a project  which  THAT may be made under

12    this act.

13         (b) By money advanced by an authority operating under this

14    act under agreements with a constituent unit or other municipal-

15    ity for the repayment of the money.

16         (c) By money advanced, from time to time, before or during

17    construction of a project  ,  by a public or private corporation,

18    firm, or individual, for which an authority operating under this

19    act shall reimburse the individual, firm, or corporation with

20    interest not to exceed  8% per annum  THE RATE PROVIDED IN THE

21    MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3, or with-

22    out interest as may be agreed, when funds are available for

23 reimbursement.  The obligation of an authority to make the reim-

24    bursement may be evidenced by a contract or note, which contract

25    or note may be made payable out of the payments to be made by

26    constituent units under contracts made pursuant to subdivision

27    (b), or out of the proceeds of bonds issued pursuant to this act



   03986'97
                                  21

 1    by the county or out of any other available funds, but the

 2    contract or note shall not be considered an obligation within the

 3    meaning of  Act No. 202 of the Public Acts of 1943, as amended,

 4     being sections 131.1 to 139.3 of the Michigan Compiled Laws  THE

 5    MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3.

 6         (2) Bonds issued under this section shall be authorized by a

 7    resolution adopted by the authority.  The bonds shall be issued

 8    in the name of the authority and shall be executed by the chair-

 9    person and secretary-treasurer of the authority.  , who shall

10     also cause their facsimile signatures to be affixed to the inter-

11     est coupons to be attached to the bonds.  The authority shall

12    adopt a seal which shall be affixed to the bonds.  Bonds issued

13    under this section shall be negotiable instruments and shall be

14    serial bonds, TERM BONDS, OR A COMBINATION OF BOTH payable annu-

15    ally  ,  with the first maturity due not more than 5 years and

16    the last maturity not more than 40 years after the date of

17    issuance.  Annual maturity payable after 5 years after the date

18    of issuance of the bonds shall not be less than 1/5 of the amount

19    of any subsequent maturity on the same series of bonds.  The

20    bonds shall bear interest at not more than the maximum rate per-

21    mitted by  Act No. 202 of the Public Acts of 1943, as amended 

22    THE MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3, pay-

23    able semiannually, except that the first coupon may be for any

24    number of months not exceeding 10.  The bonds and  coupons 

25    INTEREST ON THE BONDS shall be made payable in lawful money of

26    the United States and shall be exempt from all taxation

27    whatsoever by the state or by any taxing authority within the



   03986'97
                                  22

 1    state.  The bonds may be sold at public or private sale.  The

 2    bonds authorized in this section and section 14 shall not, except

 3    as to interest rate and as provided by section 14(5), be subject

 4    to  Act No. 202 of the Public Acts of 1943, as amended  THE

 5    MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3.

 6         Sec. 23.  (1)  An authority  created on or after May 1,

 7     1984  shall within 2 years after its creation prepare or cause to

 8    be prepared a plan for the future development, construction, and

 9    improvement of the port and its facilities, including the maps,

10    profiles, and other data and descriptions necessary to set forth

11    the location and character of the work to be undertaken by the

12    authority.  An authority in existence before May 1, 1984 shall

13     prepare or cause to be prepared the plan provided for in this

14     subsection not later than September 30, 1985.  The authority

15     shall notify the legislature on April 15, 1985, as to the

16     progress of the plan.  The authority shall cause notice by publi-

17    cation to be given upon the completion of the plan in a daily

18    newspaper of general circulation in the area under the jurisdic-

19    tion of the authority.  The notice shall  fix  SET the time and

20    place for A hearing on the plan, which shall be not less than 30

21     nor  OR more than 60 days after publication of the notice.  Any

22    interested person may file written comments to the plan, if those

23    comments are filed with the secretary-treasurer of the authority

24    not less than 5 days before the date  fixed  SET for the

25    hearing.  After the hearing, the authority may adopt the plan,

26    with any modifications or amendments, as the official plan of the

27    authority.  The authority, after adoption of the plan, may



   03986'97
                                  23

 1    modify, amend, or extend the plan after notice and hearing in the

 2    manner prescribed in this subsection.

 3          (2) The plan and any modification, amendment, or extension,

 4     when adopted by the authority after notice and hearing, shall be

 5     conclusive except that plans for specific projects, to be under-

 6     taken in execution of the official plan, shall not be adopted by

 7     the authority without prior individual approval by the governing

 8     bodies of its constituent units, the state transportation depart-

 9     ment, and the department of commerce. 

10         Sec. 24.  (1) The authority shall submit in writing a

11    detailed estimate of the budget required for the business and

12    conduct of an authority's affairs, initially  ,  for a 2-year

13    period  ,  and annually thereafter, to the governing bodies of

14    its constituent units.  , the department of commerce, and the

15     department of state highways and transportation for approval. 

16    The state shall provide 50% of the operating budget of the

17    authority, to be included in the  department of  state  highways

18     and  transportation DEPARTMENT budget which shall be subject to

19    legislative approval.  Fifty percent of the operating budget of

20    an authority in which not more than 1 county and not more than 1

21    city participate shall be funded equally by the participating

22    county and city.

23         (2) A city or county creating or participating in an author-

24    ity may appropriate for the use of the authority, and include in

25    its levy for general fund purposes, an amount considered proper.

26    However, the total amount permitted by law to be levied by a city





   03986'97
                                  24

 1    or county for general fund purposes shall not be considered

 2    increased by this section.

 3         (3) As used in this section, "operating budget" means solely

 4    operation and maintenance expenses of an authority not included

 5    in the cost of a specific project, THE COST OF DEVELOPING A SPE-

 6    CIFIC PROJECT, and interest on notes, but excludes amounts for

 7    debt service on bonds and amounts for acquisition, construction,

 8    enlargement, improvement, or extension of port facilities.

 9         (4) PROJECT COSTS OF A SPECIFIC PROJECT, INCLUDING DEVELOP-

10    MENT COSTS OR COSTS OF AN UNDERTAKING OF AN AUTHORITY, SHALL BE

11    PAYABLE FROM ANY LEGALLY AVAILABLE SOURCE.


































   03986'97          Final page.                            JCB