Bill Text: MI HB5731 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Transportation; authorities; regional transportation authority; create. Creates new act.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2010-05-18 - Referred To Second Reading [HB5731 Detail]
Download: Michigan-2009-HB5731-Introduced.html
HOUSE BILL No. 5731
December 18, 2009, Introduced by Reps. Johnson, Switalski and Donigan and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to create a regional transit authority; to provide
regional transportation; to prescribe certain powers and duties of
the authority and of certain state agencies and officials; to
authorize the levy of taxes and to provide for the issuance of
bonds and notes; and to provide for the pledge of taxes, revenues,
assessments, tax levies, and other funds for bond and note
payments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"regional transit authority act".
Sec. 2. As used in this act:
(a) "Authority" means a regional transit authority formed
under this act.
(c) "Chief executive officer" means the mayor or city manager
of a city or the county executive of a county or, if a county does
not have a county executive, the chairperson of the county board of
commissioners.
(c) "Governor's representative" means either the director of
the department of transportation of this state or the chairperson
of the state transportation commission, to be appointed to the
board by the governor under section 4 of this act.
(d) "Public transit" means the movement of people and goods by
publicly or privately owned bus, railroad car, rapid transit
vehicle, taxicab, or other conveyance which provides general or
special service to the public, but not including charter or
sightseeing service or transportation which is exclusively used for
school purposes. Public transit, as defined by this section, is
declared by law to be a transportation purpose within the meaning
of section 9 of article IX of the state constitution of 1963.
(e) "Public transit region" means an area consisting of any of
the following:
(i) A county in which a qualified city is located.
(ii) All other counties immediately contiguous to a qualified
city, in which an authority incorporated under this act operates a
public transit system or causes a public transit system to operate.
(iii) A county added to an authority under section 3 of this
act.
(f) "Public transit system" means all plants, equipment, work
instrumentalities, and real and personal property and rights, used
or useful for public transit.
(g) "Transit district" means any of the following:
(i) A qualified city, a county in which a qualified city is
located, or a county immediately contiguous to a qualified city.
(ii) A county added to an authority under section 3.
(h) "Qualified city" means a city with a population of more
than 700,000 according to the most recent decennial census.
Sec. 3. For a public transit region there shall be created an
authority, which shall become effective upon the appointment of all
members of the board of the authority, for the purpose of planning
acquiring, owning, operating, or causing to be operated, a public
transit system and carrying out the rights, duties, and obligations
provided in this act.
Sec. 4. (1) A county that is not included in the public
transit region and not a participant in the authority may petition
the authority to become part of the public transit region and
participate in the authority, provided that the petition is
approved by resolution of the governing body of the petitioning
county.
(2) A petitioning county shall be added to the public transit
region and the authority if all of the following conditions are
satisfied:
(a) The petitioning county is adjacent to a county that is, at
the time of the petition, included in the public transit region.
(b) The addition of the petitioning county is approved by the
board.
(c) If the authority is levying a tax as provided under
section 9(2), the petitioning county shall be a provisional member
without voting power and without public transit service from the
authority until the tax is approved by a majority of electors of
the petitioning county at the first primary or general election to
occur at least 71 days after the appointment under section 5(6).
The approval of the tax by the electors of a county added under
this section shall be determined only by calculation of a majority
within the county, and shall be separate and distinct from the
calculation of a majority of electors voting on the tax under
section 10(2).
Sec. 5. (1) An authority created under this act shall be
directed and governed by a board of directors consisting of the
governor's representative and 1 member representing each transit
district. The governor's representative shall only serve on the
board if necessary to establish or preserve an odd number of board
members.
(2) Except as otherwise provided in this act, board members
shall serve for a period of 4 years. If a vacancy on the board
occurs, the vacancy shall be filled in the same manner as the
initial appointment for the remainder of the term.
(3) Each board member, other than the governor's
representative, shall be appointed by the chief executive officer
of the transit district that member will represent.
(4) An appointment under this section shall become effective
upon the filing of the appointment with the secretary of state and
the clerk of the county in which the transit district is located.
The appointment of the governor's representative shall become
effective upon the filing of the appointment with the secretary of
state.
(5) Initial appointments shall be made within 60 days of the
effective date of this act.
(6) If a county is added to a public transit region as
provided in section 4, the board member representing the transit
district consisting of the county shall be appointed as provided
under subsection (3) within 30 days of the conditions of section
4(2)(a) and (b) having been satisfied, and at least 71 days prior
to the election described in section 4(2)(c). If a tax levied under
section 10(2) is not approved as provided in section 4(2)(c), the
appointment of the board member provided in this subsection shall
be void.
(7) No board member, other than the governor's representative,
shall be an elected officer of any local government or of this
state.
(8) Each board member shall be a resident and registered
elector of the transit district that board member represents.
(9) Upon appointment to the board under this section, and upon
taking and filing of the oath of office required under section 1 of
article XI of the state constitution of 1963, a board member shall
enter office and exercise the duties of the office of board member.
(10) Board members shall serve without compensation but may be
reimbursed for actual and necessary expenses incurred while
attending board meetings or performing other authorized official
business of the authority.
(11) An individual who is not of good moral character or who
has been indicted or charged with, convicted of, pled guilty or no
contest to, or forfeited bail concerning a felony under the laws of
this state, any other state, or the United States shall not be
appointed or remain as a member of the board.
(12) Board members appointed under this section shall possess
business, financial, or professional experience relevant to the
operation of public transit systems.
Sec. 6. (1) Within not more than 30 days following the
appointment of the members of the board, the board shall hold its
first meeting at a date and time determined by the governor's
representative. The board members shall elect from among the board
members an individual to serve as chairperson of the board and may
elect other officers as the board considers necessary. All officers
shall be elected annually by the board.
(2) 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. A board
shall adopt bylaws consistent with the open meetings act, 1976 PA
267, MCL 15.261 to 15.275, governing its procedures and the holding
of meetings. After organization, a board shall adopt a schedule of
regular meetings and adopt a regular meeting date, place, and time.
The board shall meet not less than quarterly. A special meeting of
the board may be called by the chairperson of the board or as
provided in bylaws adopted by the board.
(3) All actions of the board under this act shall be by simple
majority vote of all serving members of the board; provided that
the board may in its bylaws provide that certain action shall
require the approval of a supermajority not to exceed 4/5 of
serving members.
(4) 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.
(5) A board shall provide for a system of accounts for the
authority to conform to a uniform system required by law and for
the auditing of the accounts of an authority. The board shall
obtain an annual audit of the authority by an independent certified
public accountant 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
also shall be in accordance with generally accepted government
auditing standards and shall satisfy federal regulations relating
to federal grant compliance audit requirements.
(6) The board shall adopt 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) A board shall provide 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 the authority to efficiently and
effectively meet the needs of the authority using competitive
procurement methods to secure the best value for the authority. The
board shall make all discretionary decisions concerning the
solicitation, award, amendment, cancellation, and appeal of
authority contracts. The board shall adopt a procurement policy
consistent with the requirements of this act and federal and state
laws relating to procurement.
(8) An authority shall establish contracting policies and
procedures providing for all of the following:
(a) Except for the negotiated construction contracts permitted
under this subdivision, a contract shall not be awarded by an
authority or an authorized officer of the authority for the
construction, repair, remodeling, or demolition of any part of a
public transit system unless the contract is let pursuant to a
procedure that requires competitive bidding. A negotiated
construction contract shall not be required to be let by
competitive bidding if the board or an authorized officer of the
authority with delegated authority to enter into contracts
determines that any of the following apply:
(i) The negotiated contract amount is less than $50,000.00.
However, if the contract amount, including change orders,
subsequently exceeds $50,000.00, the authority shall detail, in
writing, the reasons why the contract amount exceeded $50,000.00.
(ii) As determined in writing by the board or an authorized
officer with delegated authority to enter into contracts, the
contract is for emergency repair or construction necessitated by a
sudden, unforeseen occurrence or situation of a serious and urgent
nature and is not for convenience or expediency.
(iii) As determined in writing by the board or an authorized
officer with delegated authority to enter into contracts, the
repair or construction is necessary to ensure rider safety or
otherwise protect life or property.
(b) The authority shall establish policies and procedures for
hiring professional service contractors.
(c) The authority shall utilize competitive bidding for all
purchases and all other contracts unless the board, or, if
authorized by the board to approve procurements, an authorized
officer of the authority, determines and details in writing the
reason that competitive solicitation of bids or proposals is not
appropriate, that procurement by competitive bids is not
practicable to efficiently and effectively meet the authority's
needs, or that another procurement method is in the public's best
interests.
(9) A board may employ personnel as the board considers
necessary to assist the board in performing the power, duties, and
jurisdictions of the authority, including, but not limited to,
employment of a chief executive officer and other senior executive
and administrative staff. Individual board members shall not hire
or be assigned personal staff.
(10) A board shall establish policies to assure that the board
and the authority shall not do either of the following:
(a) Fail or refuse to hire, recruit, or promote; demote;
discharge; or otherwise discriminate against a person with respect
to employment, compensation, or a term, condition, or privilege of
employment, or a contract with the authority because of religion,
race, color, national origin, age, sex, sexual orientation, height,
weight, marital status, partisan considerations, or a disability or
genetic information that is unrelated to the person's ability to
perform the duties of a particular job, position, or contract.
(b) Limit, segregate, or classify an employee, a contractor,
or 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 because of religion, race,
color, national origin, age, sex, sexual orientation, height,
weight, marital status, partisan considerations, or a disability or
genetic information that is unrelated to the person's ability to
perform the duties of a particular job or position.
Sec. 7. (1) Except as otherwise provided in this act, an
authority may do all things necessary or convenient to implement
the purposes, objectives, and provisions of this act and the
purposes, objectives, and jurisdictions vested in the authority or
the board by this act or other law, including, but not limited to,
all of the following:
(a) Adopt and use a corporate seal.
(b) Adopt, amend, and repeal bylaws for the regulation of its
affairs and the conduct of its business.
(c) Sue and be sued in its own name and plead and be
impleaded.
(d) Borrow money and issue bonds and notes according to the
provisions of this act.
(e) Make and enter into contracts, agreements, or instruments
necessary, incidental, or convenient to the performance of its
duties and execution of its powers, duties, and jurisdictions under
this act with any federal, state, local, or intergovernmental
governmental agency or with any other person or entity, public or
private, upon terms and conditions acceptable to the authority.
(f) Engage in collective negotiation or collective bargaining
and enter into agreements with a bargaining representative as
provided by 1947 PA 336, MCL 423.201 to 423.217.
(g) Solicit, receive, and accept gifts, grants, labor, loans,
contributions of money, property, or other things of value, and
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.
(h) Make application for and receive loans, grants,
guarantees, or other financial assistance in aid of a public
transit system from any state, federal, local, or intergovernmental
or agency or from any other source, public or private, including,
but not limited to, financial assistance for purposes of
developing, planning, constructing, improving, and operating a
public transit system.
(i) Procure insurance or become a self-funded insurer against
loss in connection with the property, assets, or activities of the
authority.
(j) Indemnify and procure insurance indemnifying board members
from personal loss or accountability for liability asserted by a
person with regard to bonds or other obligations of the authority,
or from any personal liability or accountability by reason of the
issuance of the bonds or other obligations or by reason of any
other action taken or the failure to act by the authority.
(k) Invest money of the authority, at the discretion of the
board, in instruments, obligations, securities, or property
determined proper by the board and name and use depositories for
authority money. Investments shall be made consistent with an
investment policy adopted by the board that complies with this act
and 1943 PA 20, MCL 129.91 to 129.97a.
(l) Contract for goods and services as necessary and as
provided under this act.
(m) Employ legal and technical experts, other officers,
agents, employees, or other personnel, permanent or temporary, as
considered necessary by the board as provided under this act.
(n) Contract for the services of persons or entities for
rendering professional or technical assistance, including, but not
limited to, consultants, managers, legal counsel, engineers,
accountants, and auditors, as provided under this act.
(o) Establish and maintain an office.
(p) Acquire by gift, devise, transfer, exchange, purchase,
lease, or otherwise on terms and conditions and in a manner the
authority considers proper property or rights or interests in
property. Property or rights or interests in property acquired by
an authority may be by purchase contract, lease purchase,
agreement, installment sales contract, land contract, or otherwise.
The acquisition of any property by an authority for a public
transit system in furtherance of the purposes of the authority is
for a public use, and the exercise of any other powers granted to
the authority is declared to be a public, governmental, and
municipal function, purpose, and use exercised for a public purpose
and matters of public necessity.
(q) Hold, clear, remediate, improve, maintain, manage,
protect, control, sell, exchange, lease, or grant easements and
licenses on property or rights or interests in property that the
authority acquires, holds, or controls.
(r) Convey, sell, transfer, exchange, lease, or otherwise
dispose of property or rights or interest in property to any person
or entity on terms and conditions, and in a manner and for
consideration the authority considers proper, fair, and valuable.
(s) Adopt reasonable rules and regulations for the orderly,
safe, efficient, and sanitary operation and use of a public transit
system owned by the authority.
(t) Do all other acts and things necessary or convenient to
exercise the powers, duties, and jurisdictions of the authority
under this act or other laws that related to the purposes, powers,
duties, and jurisdictions of the authority.
(2) An authority shall adopt public transit plans for its
public transit region, and shall adopt any regional transit plan
approved by an entity that, before September 15, 2010, was
authorized to engage in transit planning in the public transit
region under the metropolitan transportation authorities act of
1967, 1967 PA 204, MCL 124.401 to 124.426. The authority shall
update such plan annually. The authority shall coordinate service
overlap, rates, routing, scheduling, and like functions between
operators of public transit. The authority may employ operating
personnel, negotiate collective bargaining agreements with
operating personnel, or own operating assets of a public transit
service within the public transit region. The authority shall
coordinate the operating and capital transit plans of transit
agencies within the public transit region.
(3) The authority may charge fares and enter into contracts
for the service provided by the public transit system as necessary
to provide funds to meet the obligations of the authority.
Sec. 8. Ninety days after the effective date of this act, an
authority shall become the "designated recipient" for its public
transit region for purposes of the former federal urban mass
transportation act of 1964, Public Law 88-365, and the regulations
promulgated under that act, to apply for federal and state
transportation operating and capital assistance grants; if there is
a designated recipient in place for the public transit region on
the effective date of this act.
Sec. 9. (1) The authority may acquire property for a public
transit system by purchase, construction, lease, gift, or devise,
either within or without the area served by the public transit
system and may hold, manage, control, sell, exchange, or lease the
property. The authority may utilize any appropriate statute for the
purpose of condemnation. Such condemnation proceedings shall only
be applicable to property located within the public transit region.
(2) Except as otherwise provided in this subsection, the
property of the authority created under this act and its income,
activities, and operations are exempt from all taxes and special
assessments of this state or a political subdivision of this state.
Property of an authority and its income, activities, and operations
that are leased to private persons are not exempt from any tax or
special assessment of this state or a political subdivision of this
state. Property of an authority is exempt from any ad valorem
property taxes levied under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, or other law of this state authorizing
the taxation of real or personal property. An authority is an
entity of government for purposes of section 4a(1)(a) of the
general sales tax act, 1933 PA 167, MCL 205.54a, and section
4(1)(h) of the use tax act, 1937 PA 94, MCL 205.94.
(3) The property of an authority created under this act is
public property devoted to an essential public and governmental
purpose. Income of the authority is for a public and governmental
purpose.
(4) If an authority seeks to enter into an agreement or
arrangement for the whole or partial transfer of operational
jurisdiction, management, control, ownership, or other interest in
or relating to a public transit system owned or operated by a
qualified city, the chief executive officer of the qualified city
may enter into and execute the agreement or arrangement and any
necessary instruments or documents relating to the transfer
notwithstanding any provisions to the contrary or any limitations,
requirements, or processes set forth by law, ordinance, or charter,
including, but not limited to, any requirement in law, ordinance,
or charter that a vote of the electors of the qualified city is
required.
Sec. 10. (1) An authority may raise revenues to fund all of
its activities, operations, and investments consistent with its
purposes. The sources of revenue available to the authority may
include, but are not limited to, any of the following:
(a) Fees, fares, rents, or other charges for use of a public
transit system which the authority may fix, regulate, and collect.
(b) Federal, state, or local government grants, loans,
appropriations, payments, or contributions.
(c) The proceeds from the sale, exchange, mortgage, lease, or
other disposition of property that the authority has acquired.
(d) Grants, loans, appropriations, payments, proceeds from
repayments of loans made by the authority, or contributions from
public or private sources.
(e) The proceeds of a tax levied pursuant to subsection (2).
(f) Investment earnings on the revenues described in
subdivisions (a) to (e).
(2) An authority may levy taxes within the public transit
region only as approved by the board and by an aggregate majority
of electors of the entire public transit region voting on the
authorization of taxes, subject to both of the following:
(a) In any tax year, an amount equal to not less than 100% of
the revenues generated in a county by any tax levied pursuant to
this subsection shall be applied to the cost of services rendered
by the public transit system in that county.
(b) No tax levied pursuant to this subsection shall be subject
to capture by any entity with the power to capture tax increment
revenues, including, but not limited to, local development finance
authorities, downtown development authorities, tax increment
finance authorities, and brownfield redevelopment authorities.
Sec. 11. (1) For the purpose of acquiring, improving,
enlarging, or extending a public transit system, the authority may
issue self-liquidating revenue bonds under the revenue bond act of
1933, 1933 PA 94, MCL 141.101 to 141.140, or any other act
providing for the issuance of self-liquidating revenue bonds. The
bonds shall not be a general obligation of the authority, but shall
be payable solely from the revenue of the public transit system.
However, if the authority issues self-liquidating revenue bonds
with a pledge of the full faith and credit of the authority, those
revenue bonds are subject to the revised municipal finance act,
2001 PA 34, MCL 141.2101 to 141.2821.
(2) The authority may borrow money and issue municipal
securities in accordance with and exercise all of the powers
conferred upon municipalities by the revised municipal finance act,
2001 PA 34, MCL 141.2101 to 141.2821.
(3) The authority may issue a bond or municipal security that
bears no interest and appreciates as to principal amount. The bonds
or municipal securities authorized by this subsection shall be
exempt from section 305(2) and (3) of the revised municipal finance
act, 2001 PA 34, MCL 141.2305.
(4) All bonds, notes, or other evidences of indebtedness
issued by an authority under this act, and the interest on the
bonds or other evidences of indebtedness, are free and exempt from
all taxation within this state, except for transfer and franchise
taxes.
(5) The issuance of bonds, notes, or other evidences of
indebtedness by an authority shall require approval of the board.
(6) For the purpose of more effectively managing its debt
service, an authority may enter into an interest rate exchange or
swap, hedge, or similar agreement or agreements in connection with
the issuance or proposed issuance of bonds, notes, or other
evidences of indebtedness or in connection with its then
outstanding bonds, notes, or other evidences of indebtedness.
(7) In connection with entering into an interest rate exchange
or swap, hedge, or similar agreement, the authority may create a
reserve fund for the payment thereof.
(8) An agreement entered into under this section shall be
payable from general funds of the authority or, subject to any
existing contracts, from any available money or revenue sources,
including revenues specified by the agreement, securing the bonds,
notes, or evidences of indebtedness in connection with which the
agreement is entered into.
Sec. 12. (1) The revenues raised by an authority may be
pledged, in whole or in part, for the repayment of bonded
indebtedness and other expenditures issued or incurred by the
authority.
(2) A financial obligation of an authority is a financial
obligation of the authority only and not a financial obligation of
and shall not be transferred to this state or any city or county
within a public transit region.
