May 6, 2003, Introduced by Reps. Casperson, Stahl, Pastor, Pappageorge, Walker and Farhat and referred to the Committee on Transportation.
A bill to amend 1952 PA 214, entitled
"An act authorizing the Mackinac bridge authority to acquire a
bridge connecting the upper and lower peninsulas of Michigan,
including causeways, tunnels, roads and all useful related
equipment and facilities, including park, parking, recreation,
lighting and terminal facilities; extending the corporate
existence of the authority; authorizing such authority to enjoy
and carry out all powers incident to its corporate objects;
authorizing the appropriation and use of state funds for the
preliminary purposes of the authority; providing for the payment
of the cost of such bridge and in that connection authorizing the
authority to issue revenue bonds payable solely from the revenues
of the bridge; granting the right of condemnation to the
authority; granting the use of state land and property to the
authority; making provisions for the payment and security of such
bonds and granting certain rights and remedies to the holders
thereof; authorizing banks and trust companies to perform certain
acts in connection therewith; authorizing the imposition of tolls
and charges; authorizing the authority to secure the consent of
the United States government to the construction of the bridge
and to secure approval of plans, specifications and location of
same; authorizing employment of engineers irrespective of whether
such engineers have been previously employed to make preliminary
inspections or reports with respect to the bridge; authorizing
the state highway department to operate and maintain such bridge
or to contribute thereto and enter into leases and agreements in
connection therewith; exempting such bonds and the property of
the authority from taxation; prohibiting competing traffic
facilities; authorizing the operation of ferries by the
authority; providing for the construction and use of certain
buildings; and making an appropriation,"
by amending section 7 (MCL 254.317).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7. (1) The
Except as otherwise provided in this
2 section, the authority
shall properly construct, maintain,
3 operate, repair, manage,
and control the bridge , except as
4 hereinafter provided, and shall determine the rates of tolls and
5 charges to be made
for the services and facilities afforded
6 thereby and provided. The authority may make and enter
into all
7 contracts or agreements deemed
considered necessary or
8 desirable to the performance of its duties and the execution of
9 its powers under this act including, but not limited to, power to
10 permit use of the bridge by public carriers and for telephone,
11 telegraph, and other utility lines and to contract for such use
12 and determine the terms
and conditions thereof of the contract,
13 and the rates to be
charged therefor under the contract. The
14 authority may in its
discretion construct as a part of the
15 bridge telephone, telegraph, or other utility lines and
16 mechanical equipment not inconsistent with the appropriate use of
17 the bridge and may lease
the right to use the same on such terms
18 and for such
considerations as it shall determine lines
on
19 whatever terms it determines. Tolls, fees, rents, and charges
20 shall be fixed, imposed, and collected for the use of the bridge,
21 and its services, and its facilities so
as in order to make
22 the revenues to be derived
from the operation of the bridge
23 fully sufficient, until such
time as the principal of and
1 interest on the bonds herein
authorized in this act are paid in
2 full (a) pay all expenses of operating, repairing, and
3 maintaining the bridge,
except to the extent that such the
4 expenses may be in whole
or in part cared paid for by the state
5 highway department as
hereinafter provided transportation
6 department, (b) make possible the prompt payment of principal of
7 and interest on all bonds
herein authorized and the making of
8 all payments required to be made for such purpose and for the
9 creation of a reserve therefor
for the bonds and a reserve for
10 contingencies as may be provided in the resolution authorizing or
11 the trust indenture
securing the bonds. Such The tolls, fees,
12 rents, rates, or other charges shall not be subject to
13 supervision or regulation by any bureau, board, commission, or
14 agency. When the
cost of the bridge, including all principal of
15 and interest on the
bonds issued hereunder and all advances made
16 therefor, shall have
been fully paid from such tolls, fees,
17 rents, rates and
charges, the collection therefor for the use of
18 such bridge shall
cease and the bridge shall be maintained and
19 operated by the state
as a free bridge.
20 (2) In the
event that If the bonds herein authorized are
21 sold prior to before
December 31, 1953, there shall be
22 appropriated from the funds of the state highway department
23 derived from taxes imposed upon gasoline or other motor fuels and
24 on motor vehicles registered in the state to the Mackinac bridge
25 authority amounts sufficient to pay all expenses of operating,
26 repairing, and maintaining the bridge in each fiscal year
27 beginning with the fiscal year in which the bridge shall be
1 opened for traffic, and until the cost of bridge, including all
2 principal of and interest
on the bonds issued hereunder under
3 this act and all advances
made therefor shall have been are
4 fully paid. :
Provided, however, That the The amount so
5 appropriated to the authority under this subsection shall not
6 exceed in the aggregate
$417,000.00 in any one 1 fiscal year.
7 The amounts so paid
shall be based upon requisitions of the
8 authority subject to the
audits hereinbefore described in
9 this act. Inasmuch
as the bridge will be an essential part of
10 the public highway
system of the state and the operation, The
11 repair and maintenance of
the bridge will be the performance of
12 shall be an essential governmental function of the state, and the
13 provisions of this paragraph shall have the force of contract
14 with the holders of the bonds issued for the bridge, subject only
15 to prior pledges of
said funds heretofore made: Provided, That
16 the state of Michigan
shall not be pledges of funds
previously
17 made. This state is not liable for any bonds or other
18 obligations issued under the
provisions of this act, and the
19 full faith and credit of
the state shall not be is not pledged
20 in carrying out any such
obligations under this act.
21 (3) It may be provided in the resolution authorizing or the
22 trust indenture securing the bonds that the authority may not
23 sell, encumber, lease, or otherwise dispose of the bridge or any
24 substantial part thereof
of the bridge while the bonds are
25 outstanding, except under
such provisions as may be therein
26 provided under this act.
27 (4) At
such time as When the cost of the bridge, including
1 all principal of and
interest on the bonds issued hereunder
2 under this act and all
advances made therefor, shall have been
3 fully paid from such the
tolls, fees, rents, rates, and
4 charges, said the
bridge shall thereafter be maintained and
5 operated by the state highway
commissioner, who is hereby
6 authority, which is
authorized to continue to charge such the
7 tolls, fees, rates,
and charges for the use of said the bridge
8 as are deemed necessary
by him to reimburse the state highway
9 department for all
sums theretofore paid by said department
10 pursuant to the
provisions of this act for operation
and
11 maintenance of the bridge.
: Provided, however, That at such
12 time as said
reimbursement has been made, said bridge shall
13 thereafter be
maintained and operated by the state highway
14 commissioner as a free
bridge. Beginning the fiscal year
that
15 begins October 1, 2003 and continuing through the fiscal year
16 that begins October 1, 2007, the amounts charged for tolls, fees,
17 rents, and charges levied by the authority under this act shall
18 not exceed the amounts charged for tolls, fees, rents, and
19 charges levied by the authority in the fiscal year ending
20 September 30, 2002.
21 (5) As of March 1, 2003, all advances made by this state to
22 the Mackinac bridge authority pursuant to sections 161 and 163 of
23 the motor fuel tax act, 2000 PA 403, MCL 207.1161 and 207.1163,
24 have been repaid or forgiven.