HOUSE BILL No. 4536


     March 20, 1997, Introduced by Rep. Profit and referred to the Committee on Transportation.


        A bill to amend 1957 PA 206, entitled

   "An act to authorize 2 or more counties, cities, townships and
   incorporated villages, or any combination thereof, to incorporate
   an airport authority for the planning, promoting, acquiring, con-
   structing, improving, enlarging, extending, owning, maintaining
   and operating the landing, navigational and building facilities
   necessary thereto of 1 or more community airports; to provide for
   changes in the membership therein; to authorize an authority or
   the counties, cities, townships and incorporated villages that
   form an authority to levy taxes for such purposes; to provide for
   the operation and maintenance and issuing notes therefor; and to
   authorize condemnation proceedings,"

   by amending the title and sections 1, 3, 4, 7, 8, and 11 (MCL

   259.621, 259.623, 259.624, 259.627, 259.628, and 259.631), the

   title as amended by 1987 PA 153, sections 1, 3, 4, and 8 as

   amended by 1982 PA 312, and section 7 as amended by 1983 PA 182.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:








   02194'97 *                                               JJG
                                                2

 1                                  TITLE

 2         An act to authorize 2 or more counties, cities, townships,

 3     and  incorporated villages, UNIVERSITIES, COMMUNITY COLLEGES,

 4    THE MICHIGAN AERONAUTICS COMMISSION, OR MICHIGAN INDIAN TRIBES,

 5    or any combination  thereof  OF THOSE ENTITIES, to incorporate an

 6    airport authority for the planning, promoting, acquiring, con-

 7    structing, improving, enlarging, extending, owning, maintaining,

 8    and operating the landing, navigational, and building facilities

 9    necessary  thereto  FOR THOSE PURPOSES of 1 or more community

10    airports; to provide for changes in the membership  therein  OF

11    AN AIRPORT AUTHORITY; to authorize an AIRPORT authority or the

12    counties, cities, townships,  and  incorporated villages, UNIVER-

13    SITIES, AND COMMUNITY COLLEGES that form an AIRPORT authority to

14    levy taxes for  such  THOSE purposes; to provide for the opera-

15    tion and maintenance and issuing OF notes  therefor  FOR THAT

16    PURPOSE; and to authorize condemnation proceedings.

17         Sec. 1.  Any 2 or more  counties, cities, incorporated vil-

18     lages, or townships, or any combination thereof  ELIGIBLE PUBLIC

19    ENTITIES, by resolution of their respective  legislative 

20    GOVERNING bodies, may join to form an airport authority for the

21    purpose of planning, promoting, acquiring, constructing, improv-

22    ing, enlarging, extending, owning, maintaining, and operating,

23    EITHER WITHIN OR OUTSIDE OF THEIR JURISDICTIONAL BOUNDARIES, the

24    NECESSARY landing, navigational, and building facilities

25     necessary thereto, either within or without their limits,  of 1

26    or more community airports.  A site for the physical facilities

27    of the airport authority shall not be selected without the



   02194'97 *
                                   3

 1    approval of 2/3 of the total membership of the airport authority

 2    board and shall be located within the boundaries of the airport

 3    authority.

 4         Sec. 3.  (1) The resolution creating the airport authority

 5    shall designate the  counties, cities, incorporated villages, and

 6     townships  ELIGIBLE PUBLIC ENTITIES to be included  therein  IN

 7    THE FORMATION OF THE AIRPORT AUTHORITY and shall set forth the

 8    fact that a sum of money not to exceed 1 mill of their assessed

 9    valuation as last equalized by the state may be requested OF A

10    COUNTY, TOWNSHIP, CITY, VILLAGE, OR COMMUNITY COLLEGE and certi-

11    fied by the airport authority board annually for the purpose of

12    planning, promoting, acquiring, constructing, improving, enlarg-

13    ing, extending, owning, maintaining, and operating the necessary

14    landing, navigational, and building facilities of 1 or more com-

15    munity airports.  The resolution also shall provide that the

16    requested money or any portion of the requested money may be

17    pledged by the governing body of the airport authority for the

18    payment of revenue bonds under  Act No. 94 of the Public Acts of

19     1933, as amended, being sections 141.101 to 141.139 of the

20     Michigan Compiled Laws  THE REVENUE BOND ACT OF 1933, 1933 PA 94,

21    MCL 141.101 TO 141.140.  The authority  shall be deemed to be  IS

22    CONSIDERED a charter authority within the meaning of section 6 of

23    article  9  IX of the state constitution of 1963.  The resolution

24    may provide that the airport authority  shall become  BECOMES

25    operative if a specified number of the proposed number of members

26    GOVERNING bodies approve it.  The resolution may  fix  ESTABLISH

27    a time within which the respective  local units  ELIGIBLE PUBLIC



   02194'97 *
                                   4

 1    ENTITIES must act in order to be included in the airport

 2    authority.  The resolution may designate a date for the appointed

 3    representatives to convene.

 4         (2) Any  county, city, incorporated village, or township 

 5    ELIGIBLE PUBLIC ENTITY may subsequently become a member of any

 6    airport authority formed under this act upon resolution adopted

 7    by the governing body of the  municipality  ELIGIBLE PUBLIC

 8    ENTITY and acceptance by resolution adopted by majority vote of

 9    the entire governing board of the airport authority.  Any

10     county, city, incorporated village, or township which  ELIGIBLE

11    PUBLIC ENTITY THAT is or becomes a member of an airport authori-

12    ty, upon request and upon resolution of its governing body, duly

13    accepted by a 2/3 majority vote of the entire governing board of

14    the airport authority, may be released from membership in the

15    airport authority.  A county, city, incorporated village, or

16     township  AN ELIGIBLE PUBLIC ENTITY may not be released from mem-

17    bership in  any  AN airport authority formed under this act until

18    all outstanding obligations of the airport authority that have

19    been incurred after the time of the admission to membership of

20    the  county, city, incorporated village, or township  ELIGIBLE

21    PUBLIC ENTITY and that part of prior obligations as may be agreed

22    to by the board and the governing body of the  county, city,

23     incorporated village, or township  ELIGIBLE PUBLIC ENTITY have

24    been paid, or adequate provision has been made for the payment.

25     thereof. 

26         Sec. 4.  (1)  The legislative  SUBJECT TO SUBSECTION (3),

27    THE GOVERNING bodies of the  counties, cities, incorporated



   02194'97 *
                                   5

 1    villages, and townships  ELIGIBLE PUBLIC ENTITIES creating the

 2    airport authority may raise by an ad valorem property tax, to be

 3    levied on the taxable property within their respective jurisdic-

 4    tions, a sum of money to be used to assist in the planning, pro-

 5    moting, acquiring, constructing, improving, enlarging, extending,

 6    owning, maintaining, and operating the NECESSARY landing, naviga-

 7    tional, and building facilities  necessary thereto  of the commu-

 8    nity airport authorized by this act.  The tax shall not exceed 1

 9    mill on each dollar of the state equalized valuation of each

10     county, city, incorporated village, or township  ELIGIBLE PUBLIC

11    ENTITY.  In computing the total tax to be levied, the assessed

12    valuation of any  unit of government  ELIGIBLE PUBLIC ENTITY

13    joining the airport authority shall not be used more than once.

14         (2)  The  SUBJECT TO SUBSECTION (3), THE ad valorem property

15    tax authorized by this section shall not be levied unless

16    approved by the majority of the qualified electors of the  member

17     local unit  ELIGIBLE PUBLIC ENTITY voting  thereon  FOR THE AD

18    VALOREM PROPERTY TAX.  A tax approved pursuant to this subsection

19    may be levied until the  local unit  ELIGIBLE PUBLIC ENTITY is

20    released from membership in the authority or until the authority

21    is dissolved, whichever occurs first.  However, this subsection

22     shall not be considered to  DOES NOT prohibit the use of reve-

23    nues from ad valorem property tax levies of mills within the

24    member local unit's charter or statutory limitation to pay an

25    appropriation required by the airport authority.

26         (3) NOTWITHSTANDING ANY OTHER PROVISION IN THIS ACT, A

27    UNIVERSITY, THE MICHIGAN AERONAUTICS COMMISSION, OR A MICHIGAN



   02194'97 *
                                   6

 1    INDIAN TRIBE THAT PARTICIPATES IN THE CREATION OF AN AIRPORT

 2    AUTHORITY IS EXEMPT FROM THE REQUIREMENTS OF THIS ACT RELATED TO

 3    THE LEVYING OF AN AD VALOREM PROPERTY TAX.

 4         Sec. 7.  (1) Not later than April 1 of each year the airport

 5    authority board shall prepare a budget containing an itemized

 6    statement of the estimated current expenses and the expenses for

 7    capital outlay, including the amount necessary to pay the princi-

 8    pal and interest of any outstanding bonds or other obligations of

 9    the authority maturing during the ensuing fiscal year or which

10    have previously matured and are unpaid, and an estimate of the

11    estimated revenue of the airport authority from all sources for

12    the ensuing fiscal year.  Airport authorities consisting only

13    of 2 or more counties shall have until September 1 of each year

14    to prepare this budget.  The board shall adopt  such  A budget as

15     shall be deemed  IS CONSIDERED necessary and shall ascertain

16    what appropriations are required from the several  counties,

17     cities, townships, and villages  ELIGIBLE PUBLIC ENTITIES to meet

18    their respective shares of the amount of the budget in excess of

19    the estimated revenues.

20         (2)  In determining the fair and equitable share of each

21     county, city, and township, the board shall establish the ratio

22     that the state equalized valuation of each for the year in which

23     the appropriation is required bears to the total state equalized

24     valuation for the year in which the appropriation is required of

25     all the counties, cities, and townships included in the airport

26     authority and use the applicable ratio in determining the amount

27     of appropriation required from a county, city, or township.  Any



   02194'97 *
                                   7

 1    village included in the airport authority shall appropriate its

 2     proportionate share of the amount apportioned to the township in

 3     which it is located, and in determining the division between the

 4     township and village, the amount of their respective state equal-

 5     ized valuations for the year the appropriation is required shall

 6     be used as the basis for the determination.  A RESOLUTION THAT

 7    CREATES AN AIRPORT AUTHORITY SHALL PROVIDE FOR THE FAIR AND EQUI-

 8    TABLE SHARE CONTRIBUTION OF EACH PARTICIPATING COUNTY, TOWNSHIP,

 9    CITY, VILLAGE, OR COMMUNITY COLLEGE AND MAY DETERMINE THE AMOUNT

10    TO BE CONTRIBUTED BY THE OTHER ELIGIBLE PUBLIC ENTITIES AND

11    DETERMINE THE LIMIT OF THE BUDGET OF THE AIRPORT AUTHORITY.  EACH

12    ELIGIBLE PUBLIC ENTITY SHALL PAY ITS FAIR AND EQUITABLE SHARE

13    CONTRIBUTION NOT LATER THAN 120 DAYS AFTER RECEIPT OF THE

14    REQUESTED AMOUNTS. The board shall certify to each participating

15    county, city, township,  and  village, AND COMMUNITY COLLEGE the

16    amount to be raised by them, and the respective counties, cities,

17    townships,  and  villages, AND COMMUNITY COLLEGES shall include

18     such amounts  THAT AMOUNT in their next  ensuing budgets  BUDGET

19    and shall pay the  amounts so  AMOUNT certified from any  funds 

20    MONEY they have available or from the proceeds of a tax which

21    they are authorized to levy, in an amount sufficient  therefor 

22    TO MEET THE AMOUNT, but not exceeding 1 mill.  Payment of sums

23     so  THE AMOUNT certified  shall be  IS due and payable to the

24    airport authority 120 days  subsequent to  AFTER the date upon

25    which local taxes become due and payable in counties, cities,

26    villages,  and  townships, AND COMMUNITY COLLEGES participating

27    in the airport authority.  Each county, city, township,  and 



   02194'97 *
                                   8

 1    village, AND COMMUNITY COLLEGE shall be liable for the amount

 2     so  certified.

 3         (3) The board shall also  render  GIVE to each participating

 4     county, city, township, and village  ELIGIBLE PUBLIC ENTITY, on

 5    each July 1, during the operation of the airport a certified

 6    report of the operation of the airport.  Each report shall state

 7    the condition of the finances, the amount of money expended, and

 8    the money received from all sources.  The board shall also file a

 9    copy of the report with the department of treasury together with

10    any other information the department of treasury may require.

11    Within 30 days after the formation of any new airport authority,

12    and annually on July 1  thereafter  OF EACH CALENDAR YEAR AFTER

13    THAT TIME, the airport authority board shall file with the secre-

14    tary of state a report as the secretary of state may require,

15    showing the date of formation, the names of the member

16     communities,  ELIGIBLE PUBLIC ENTITIES and any other information

17     as  the report may call for.

18         Sec. 8.  For the purpose of acquiring, purchasing, con-

19    structing, improving, enlarging, or repairing  such  community

20    airports, the airport authority board may issue self-liquidating

21    bonds of the AIRPORT authority in accordance with  Act No. 94 of

22     the Public Acts of 1933, as amended, being sections 141.101 to

23     141.139 of the Michigan Compiled Laws  THE REVENUE BOND ACT OF

24    1933, 1933 PA 94, MCL 141.101 TO 141.140.  The bonds shall not

25    impose any liability upon the  counties, cities, villages, and

26     townships  ELIGIBLE PUBLIC ENTITIES included in the airport

27    authority, other than on the amounts  which  THAT are assessed



   02194'97 *
                                   9

 1    against the respective  municipalities  ELIGIBLE PUBLIC ENTITIES

 2    as provided for by this act, which amounts or any portion

 3     thereof  OF THE AMOUNTS may be pledged by the governing body of

 4    the airport authority for the payment of the bonds for a period

 5    not exceeding 40 years.  The amount  herein  required to be paid

 6    by any  municipality  ELIGIBLE PUBLIC ENTITY under  the provi-

 7     sions of  this act  shall be considered to be  IS a part of the

 8    revenues of the airport authority as that term is defined in sec-

 9    tion 3(f) of  Act No. 94 of the Public Acts of 1933, as amended,

10     being section 141.103 of the Michigan Compiled Laws  THE REVENUE

11    BOND ACT OF 1933, 1933 PA 94, MCL 141.103.  The bonds shall be

12    sold for not less than par and shall bear interest at a rate not

13    in excess of the maximum rate permitted under section 12 of  Act

14     No. 94 of the Public Acts of 1933, as amended, being section

15     141.112 of the Michigan Compiled Laws  THE REVENUE BOND ACT OF

16    1933, 1933 PA 94, MCL 141.112.  If a petition for referendum is

17    filed with the secretary of the airport authority in accordance

18    with the provisions of section 33 of  Act No.  94 of the Public

19     Acts of 1933, as amended, being section 141.133 of the Michigan

20     Compiled Laws  THE REVENUE BOND ACT OF 1933, 1933 PA 94, MCL

21    141.133, the governing body of the airport authority shall adopt

22    a resolution establishing the date of the election, which shall

23    be not less than 60 days nor more than 90 days after the adoption

24    of the resolution.  The secretary of the authority, within 5 days

25    after the adoption of the resolution, shall transmit a certified

26    copy of the resolution to the governing body of each member

27    community AND COMMUNITY COLLEGE.  The governing bodies of the



   02194'97 *
                                  10

 1    member communities AND COMMUNITY COLLEGES immediately shall

 2    provide for an election in accordance with the resolution passed

 3    by the authority, in which the question of issuing the bonds and

 4    pledging the authority's revenues, including all or any part of

 5    the amounts assessed against the respective  municipalities 

 6    COMMUNITIES AND COMMUNITY COLLEGES as provided for by this act,

 7    shall be submitted.  The ballots for use in the election shall be

 8    provided by the authority and the election shall be conducted in

 9    the respective communities AND COMMUNITY COLLEGES except that if

10    any part or all of a village belonging to an airport authority is

11    located in a township belonging to the same authority, the town-

12    ship election shall include that part of the village located in

13    it and the village shall not be required to hold an election

14    except in that portion of the village not located in a township

15    belonging to the authority.  The governing bodies of the member

16    communities AND COMMUNITY COLLEGES shall act as a board of can-

17    vassers and shall certify the results of the election to the air-

18    port authority board, within 5 days after the date of the elec-

19    tion, on forms provided by the airport authority.  The airport

20    authority board shall compile and tabulate the vote as required

21    from the member communities AND COMMUNITY COLLEGES and certify

22    the result of the election by resolution upon the records of the

23    AIRPORT authority.  A majority of the total valid votes cast at

24    such an election voting "yes" on the question submitted shall

25    constitute an approval of the issuance of the bonds.

26         Sec. 11.  As used in this act:  , "community 





   02194'97 *
                                  11

 1         (A) "COMMUNITY" MEANS A COUNTY, TOWNSHIP, CITY, OR VILLAGE

 2    OF THIS STATE.

 3         (B) "COMMUNITY airport" means any location, either on land

 4    or water, which is used for the landing or take-off of aircraft,

 5    which provides facilities for the shelter, supply, or care of

 6    aircraft, or for receiving or discharging passengers or cargo,

 7    and all appurtenant areas used or suitable for airport buildings

 8    or other airport facilities, INCLUDING all appurtenant

 9    rights-of-way and runway clear zones as designated by the civil

10    aeronautics authority.  , whether heretofore or hereafter

11     established. 

12         (C) "ELIGIBLE PUBLIC ENTITY" MEANS A COUNTY, CITY, VILLAGE,

13 OR TOWNSHIP, A STATE COLLEGE OR UNIVERSITY, THE MICHIGAN AERONAU-

14    TICS COMMISSION, OR A MICHIGAN INDIAN TRIBE, OR ANY COMBINATION

15    OF THESE ENTITIES.

16         (D) "MICHIGAN INDIAN TRIBE" MEANS A FEDERALLY RECOGNIZED

17    INDIAN TRIBE THAT HAS TRUST LANDS LOCATED WITHIN THIS STATE.























   02194'97 *          Final page.                          JJG