June 2, 2005, Introduced by Reps. Kathleen Law, Tobocman, Espinoza, Plakas, Meisner, McDowell, Hopgood, Accavitti, Farrah, Donigan, Sheltrown, Spade, Bennett, Polidori, Clemente, Dillon, Leland and Waters and referred to the Committee on Transportation.
A bill to create the Detroit river crossing authority; to
prescribe the powers and duties of the authority; to provide for
certain regulations at border crossings; to provider for certain
tolls and charges; to allow the authority to issue bonds; and to
provide for penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Detroit river crossing authority act".
Sec. 2. As used in this act:
(a) "Authority" means the Detroit river crossing authority
created by section 4.
(b) "Bonds" or "revenue bonds" means revenue bonds of the
authority issued under this act.
(c) "Border crossing" means a border crossing constructed
after the effective date of this act between the United States and
Canada over any portion of the Detroit river and includes a bridge
or tunnel, overpasses, underpasses, entrance plazas, toll houses,
administration, storage, and other buildings and facilities,
equipment, and highway approaches necessary to facilitate the flow
of traffic at a border crossing.
(d) "Cost" means the cost of construction, acquisition, and
such other expenses necessary or incident to the operation,
maintenance, repair, or improvement of the border crossing.
(e) "Person" means an individual, partnership, association,
corporation, or any other legal entity having title or interest in
any property, rights, or easements authorized under this act.
Sec. 3. (1) Revenue bonds issued under this act do not
constitute a debt of the state or of any political subdivision or a
pledge of the full faith and credit of the state or any political
subdivision and are payable solely from the funds provided from
revenues. All revenue bonds shall contain on their face a statement
to the effect that neither the state nor the authority is obligated
to pay on the bonds except from revenues of the border crossing and
that neither the full faith and credit nor the taxing power of the
state or a political subdivision is pledged to the payment of the
principal or interest on the bonds.
(2) All expenses incurred in carrying out this act are payable
solely from funds provided under this act, and no liability or
obligation shall be incurred by the authority beyond the extent to
which money has been provided under this act.
Sec. 4. (1) The Detroit river crossing authority is created
within the state transportation department.
(2) The authority shall consist of the following 7 voting
members:
(a) The director of the state transportation department or the
director's designee.
(b) The director of the department of labor and economic
growth or the director's designee.
(c) The director of the department of natural resources or the
director's designee.
(d) One member appointed by the governor who is a
representative of a county in which a crossing may be located under
this act.
(e) One member appointed by the governor who is a
representative of a municipality in which a crossing may be located
under this act.
(f) Two members appointed by the governor who are residents
living within 10 miles of the Detroit river.
(3) The authority shall have all of the following powers and
duties:
(a) To adopt bylaws for the regulation of its affairs and the
conduct of its business.
(b) To adopt an official seal.
(c) To maintain an office within 10 miles of the Detroit
river.
(d) To sue and be sued in its own name.
(e) To determine the design standards and the materials of
construction for a border crossing.
(f) To construct, maintain, repair, and operate a border
crossing.
(g) To issue revenue bonds of the authority for any of its
corporate purposes, payable solely from the tolls and revenues
pledged for their payment, and to refund its bonds as provided
under this act.
(h) To establish and revise from time to time and charge and
collect tolls and other charges for the use of the border crossing.
(i) To establish rules and regulations for the border
crossing.
(j) To acquire, hold, and dispose of real and personal
property in the exercise of its powers and the performance of its
duties under this act.
(k) To make and enter into all contracts and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under this act.
(l) To employ consulting engineers, attorneys, accountants,
construction and financial experts, superintendents, managers, and
other employees and agents as may be necessary in its judgment and
to fix their compensation.
(m) To receive and accept from any federal agency grants for
or in aid of the construction, repair, or improvement of a border
crossing and to receive and accept aid or contributions from any
source of money, property, labor, or other things of value, to be
held, used, and applied only for the purposes for which the grants
and contributions may be made.
(n) To enter into contracts and leases to provide for the
development and use of any real property owned by the authority in
the United States or Canada for customs brokering or for the sale
of articles for export and consumption outside the United States or
Canada, respectively, to the extent that this use is not restricted
by federal or Canadian law. The authority shall obtain proposals
before entering into any contracts or leases for the development
and use of its real property for the sale of articles for export
and consumption outside of the United States. The authority shall
advertise for proposals once each week for 2 successive weeks in a
newspaper of general circulation in this state. The authority shall
open and examine all proposals at a public meeting of the
authority. The authority may reject any or all proposals and shall
readvertise, in the event of rejection of all proposals, in the
manner required by this section. This subdivision does not exempt a
person from the payment of any motor fuel, sales, or other taxes
required to be paid under the laws of this state on articles or
fuel sold or brought into this state irrespective of whether the
articles or fuel is for export or consumption outside the United
States or Canada.
(o) To enter into an interlocal agreement with the owner of
the Canadian portion of a border crossing or its authorized agent,
to provide for joint operational and policy oversight and for
operation, maintenance, repair, and improvement of the border
crossing in the United States and Canada.
(p) To take any action necessary or convenient to carry out
the powers granted under this act.
(q) To participate in any project that can improve the flow of
traffic over a crossing.
(4) Nothing in this act or an interlocal agreement shall
preclude the joint United States-Canadian body created under the
interlocal agreement entered into under subsection (3)(o) from
appraising the fair market value of assets, from exploring
opportunities to create efficiencies, or from studying proposals
that may maximize the value of assets associated with the border
crossing and be in the best interest of the people of this state.
Sec. 5. If taxes or assessments are imposed by law in Canada
on the Canadian portion of the border crossing to be paid from
border crossing revenue under an interlocal agreement entered into
under section 3(2)(o), an equal sum may be expended in this state
from border crossing revenue for purposes similar to those of the
taxes or assessments. If taxes or assessments are paid directly to
a Canadian local unit of government, an equal sum shall be paid
directly to the local unit of government in which the border
crossing is located.
Sec. 6. (1) The authority is authorized to acquire by purchase
solely from funds provided under this act or to dispose of lands,
structures, property, rights, rights-of-way, franchises, easements,
and other interests in lands, including lands lying under water and
riparian rights, which are located within or outside the border
crossing property, as it considers necessary or convenient for the
construction, repair, improvement, and operation of the border
crossing, upon such terms and at such prices as it considers to be
reasonable.
(2) The authority is authorized to acquire by condemnation or
by eminent domain any lands, property, rights, or property interest
considered necessary for the construction, repair, or improvement
or the efficient operation of the border crossing. Any proceedings
under this subsection shall be conducted under the uniform
condemnation procedures act, 1980 PA 87, MCL 213.51 to 213.75.
(3) If the owner, lessee, or occupier of any property to be
condemned refuses to remove his or her personal property from the
property or give up possession of the property, the authority may
proceed to obtain possession in any manner provided by law.
Sec. 7. (1) The authority is authorized to provide for the
issuance of revenue bonds of the authority for the purpose of
paying all or any part of the cost of the border crossing. The
principal of and the interest on the bonds are payable solely from
the funds provided for the payment. The bonds shall be dated, bear
interest at a rate not exceeding 6% per annum, mature at a time not
exceeding 40 years from the date issued, and made redeemable before
maturity at a price and under such terms and conditions as fixed by
the authority before the issuance of the bonds.
(2) The authority shall determine the form of the bonds,
including any interest coupons to be attached to the bonds, and fix
the denomination of the bonds and the place of payment of the
principal and interest.
(3) The bonds shall be signed by the chairperson of the
authority or shall bear his or her facsimile signature, and the
official seal of the authority shall be impressed or imprinted and
attested by the secretary-treasurer of the authority. In case any
officer whose signature appears on any bonds or coupons ceases to
be an authorizing officer before the delivery of the bonds, the
signature shall be valid and sufficient for all purposes.
(4) The bonds may be issued in coupon or in registered form,
or both. The authority may sell the bonds in such manner and for a
price as it may determine will best effect the purposes of this
act. The proceeds of the bonds shall be used solely for the payment
of the cost of the border crossing and shall be disbursed in a
manner and under such restrictions as the authority may provide in
the resolution authorizing the issuance of the bonds.
(5) If the proceeds of the bonds are less than the cost of the
border crossing, additional bonds may be issued to provide the
amount of the deficit and shall be considered to be of the same
issue and entitled to payment from the same fund without preference
or priority of the bonds first issued. If the proceeds of the bonds
exceed the cost of the border crossing, the surplus shall be
deposited to the credit of the sinking fund for the bonds.
(6) Before the preparation of definitive bonds, the authority
may issue interim receipts or temporary bonds, with or without
coupons, exchangeable for definitive bonds when the bonds have been
executed. The authority may also provide for the replacement of any
bonds that become mutilated or destroyed or lost. Bonds may be
issued under this act without obtaining the consent of any
department, division, commission, board, bureau, or agency of the
state.
Sec. 8. (1) In the discretion of the authority, the bonds
issued under this act may be secured by a trust agreement between
the authority and a corporate trustee, which may be any trust
company or bank having the powers of a trust company within or
outside of this state. The trust agreement or the resolution
providing for the issuance of the bonds may pledge or assign the
tolls and other revenues to be received, but shall not convey or
mortgage the border crossing.
(2) Any trust agreement under this section may set forth the
rights and remedies of the bondholders and of the trustee and may
restrict the individual right of action by bondholders. In addition
to the foregoing, any trust agreement or resolution may contain
other provisions as the authority considers reasonable and proper
for the security of the bondholders.
(3) All expenses incurred in carrying out the trust agreement
or resolution may be treated as a part of the cost of the operation
of the border crossing.
(4) The trust agreement or resolution shall be subject to the
approval of the state administrative board of the state of
Michigan.
Sec. 9. (1) The authority is authorized to establish, revise,
charge, and collect tolls for the use of the border crossing. The
tolls shall be fixed and adjusted so as to provide a fund
sufficient with other revenues to pay the cost of maintaining,
repairing, and operating the border crossing and the principal and
interest on any bonds issued under this act.
(2) Revenue collected from the use or disposition of the
border crossing is appropriated exclusively for those purposes. The
tolls shall not be subject to supervision or regulation by any
other commission, board, bureau, or agency of the state. The tolls
and all other revenues derived from the border crossing, except
that part necessary to pay the cost of maintenance, repair, and
operation of the border crossing, shall be set aside at regular
intervals as provided in the resolution or trust agreement in a
sinking fund that is pledged to the payment of the principal and
interest of any bonds as they become due and the redemption price
or the purchase price of bonds retired.
(3) The tolls and other revenues or other money received by
the authority shall immediately be subject to the lien of the
pledge without any physical delivery or further act, and the lien
of the pledge is valid and binding against all parties having
claims of any kind in tort, contract, or otherwise against the
authority, irrespective of whether the parties have notice of the
lien.
(4) The resolution or trust agreement by which a pledge is
created need not be filed or recorded except in the records of the
authority. The use and disposition of money to the credit of the
sinking fund are subject to the resolution authorizing the issuance
of the bonds or the trust agreement. Except as may otherwise be
provided in the resolution or trust agreement, the sinking fund is
a fund for all of the bonds without distinction or priority of one
over another.
Sec. 10. All money received under this act, whether as
proceeds from the sale of bonds or as revenues, is considered to be
trust funds to be held and applied as provided in this act. The
resolution authorizing the bonds or the trust agreement securing
the bonds shall provide that any officer with whom, or any bank or
trust company with which, the money is deposited shall act as
trustee of the money and hold and apply the money for the purposes
of this act.
Sec. 11. A holder of bonds issued under this act and the
trustee under any trust agreement may protect and enforce any
rights granted under law or the trust agreement or resolution and
may enforce and compel the performance of all duties required by
this act or by such trust agreement or resolution to be performed
by the authority, including the fixing, charging, and collecting of
tolls.
Sec. 12. The authority is not required to pay any taxes or
assessments upon the border crossing or any property or income
acquired or used by the authority under this act, and any bonds
issued under this act and their transfer and income are free from
taxation within the state.
Sec. 13. The authority is authorized to provide for the
issuance of revenue refunding bonds of the authority for the
purpose of refunding any bonds outstanding which have been issued
under the this act, including the payment of any redemption premium
and any interest accrued or to accrue to the date of redemption of
the bonds, and, if considered advisable by the authority, for the
additional purpose of constructing improvements to the border
crossing. The issuance of the bonds, the maturities, and other
details of the bonds, the rights of the holders of the bonds, and
the rights, duties, and obligations of the authority in respect of
the bonds, shall be governed by this act.
Sec. 14. (1) Any action taken by the authority under the
provisions of this act may be authorized by resolution at any
regular or special meeting, and each such resolution shall take
effect immediately and need not be published or posted.
(2) Any border crossing, when constructed and opened to
traffic, shall be maintained and kept in good condition and repair
by the authority. The border crossing shall be operated by the
force of toll-takers and other operating employees as the authority
may in its discretion employ and shall be policed in a manner as
the authority may determine.
(3) All private property damaged or destroyed in carrying out
the powers granted by this act shall be restored or repaired and
placed in its original condition as nearly as practicable or
adequate compensation shall be made out of funds provided under the
authority of this act.
(4) Within the first 90 days of each fiscal year of the
authority, the authority shall make an annual report to the
governor and the legislature of its activities for the preceding
fiscal year. The report shall set forth a complete operating and
financial statement covering its operation during the year. The
authority shall cause an audit of its books and accounts to be made
at least once in each year by certified public accountants, and the
cost may be treated as a part of the cost of construction or
operation.
(5) A person who fails or refuses to pay the toll as required
by the authority is guilty of a misdemeanor punishable by a fine of
not more than $1,000.00 or by imprisonment for not more than 90
days, or both. The authority shall also have a lien upon the
vehicle driven by the person for the amount of the toll and may
take and retain possession of the vehicle until the amount of the
toll and all charges have been paid.
(6) The authority and its authorized agents and employees may
enter upon any lands, waters, and premises in the state for the
purpose of making surveys, soundings, drillings, and examinations
as they consider necessary or convenient for the purpose of this
act, and the entry shall not be a trespass, nor shall an entry for
such purposes be considered an entry under any condemnation
proceedings which may be then pending. The authority shall make
reimbursement for any actual damage resulting to the lands, waters,
and premises as a result of the activities allowed under this
subsection.
Sec. 15. The authority is authorized to make surveys and
studies as may be necessary to effect the financing authorized by
this act. The authority may employ consulting engineers, traffic
engineers, legal and financial experts, and other employees and
agents as it considers necessary.