HOUSE BILL No. 6419


     September 24, 2002, Introduced by Reps. Kowall, Raczkowski, Hager, Woronchak, Gilbert, Richardville, Hale, Vear, Daniels,
DeRossett, McConico, Thomas, Lemmons and Allen and referred to the Committee on Commerce.


        A bill to amend 1978 PA 639, entitled

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

   by amending sections 1, 2, 3, 4, 6, 8, 9, 10, 11, 12, 13, 16, 23,

   and 24 (MCL 120.101, 120.102, 120.103, 120.104, 120.106, 120.108,

   120.109, 120.110, 120.111, 120.112, 120.113, 120.116, 120.123,

   and 120.124), section 23 as amended by 1984 PA 256; and to repeal

   acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 1.  This act shall be known and may be cited as the

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

 3
             Sec. 2.  As used in this act:

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

 5
        act and may also include the area within the jurisdiction of an

 6
        authority.




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

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        incorporation of an authority.

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

 4
        city commission of a city requesting incorporation of an author-

 5
        ity created under this act.

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

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        commissioners of a county participating in an authority created

 8
        under this act.

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

10
        port authority  such as:  seawall jetties; piers; wharves; docks;

11
        boat landings; marinas; AERONAUTICAL FACILITIES; MARKETS; ware-

12
        houses; storehouses; elevators; grain bins; cold storage plants;

13
        terminal icing plants; bunkers; oil tanks; ferries; canals;

14
        locks; bridges; RAILROAD CONNECTIONS; SIDETRACKS; SIDINGS; tun-

15
        nels; seaways; conveyors; modern appliances for the economical

16
        handling, storage, and transportation of freight and handling of

17
        passenger traffic; transfer and terminal facilities;  required

18
        USEFUL for the efficient operation and development of ports and

19
        harbors; other harbor improvements;  or  improvements, enlarge-

20
        ments, remodeling, or extensions of any of these buildings or

21
        structures; OR ANY OTHER PROPERTY OR FACILITIES NECESSARY OR

22
        USEFUL IN CONNECTION WITH THE BUILDINGS OR STRUCTURES LISTED IN

23
        THIS SUBDIVISION OR ECONOMIC DEVELOPMENT PROJECTS UNDERTAKEN BY

24
        THE AUTHORITY THAT ARE UPON, IN, OVER, UNDER, ADJACENT TO, OR

25
        NEAR TO NAVIGABLE WATERS OR WITHIN THE BOUNDARIES OF THE AUTHOR-

26
        ITY AND THAT ARE NECESSARY OR USEFUL FOR THE FURTHERANCE OF

27
        WATER, AIR, OR LAND COMMERCE.



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

 2
        reconstruction, rehabilitation, remodeling, improvement, enlarge-

 3
        ment, repair, condemnation, maintenance, or operation of port

 4
        facilities.

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

 6
        authority may exercise and apply any or all of its powers and

 7
        duties, as prescribed and set forth in this act, within the

 8
        respective boundaries of the county or counties creating a port

 9
        authority under this act, including jurisdiction over commer-

10
        cially navigable water lying  therein  WITHIN THOSE BOUNDARIES.

11
             Sec. 4.  (1) A city,  and  A county, a combination of

12
        counties, or a combination consisting of at least 1 city and 1

13
        county, BY RESOLUTION OF THE GOVERNING BODY OR by joint resolu-

14
        tion of their respective governing bodies, may request the gover-

15
        nor to authorize the incorporation of an authority.  The governor

16
        shall consider the recommendations of the  department of  state

17
         highways and  transportation DEPARTMENT and the department of

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         commerce  CONSUMER AND INDUSTRY SERVICES in authorizing the

19
        authority.  The initial articles of incorporation shall be

20
        approved by the governor and may  thereafter  THEN be amended by

21
        resolution of the authority, subject to approval by the

22
        governor.  After approval by the governor, the articles of incor-

23
        poration and any amendments to those articles shall be effective

24
        upon filing with the secretary of state.

25
             (2) An authority created under this act shall be a body cor-

26
        porate and politic.  NOT MORE THAN 1 AUTHORITY SHALL BE CREATED





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

 2
        OR COMBINATION OF AT LEAST 1 CITY AND 1 COUNTY.

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

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        this act shall be considered and held to be an essential govern-

 5
        mental function and a benefit to, and a legitimate public purpose

 6
        of, the state, the authority, and the constituent units.

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

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

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

 4
        territorial jurisdiction AND AN ADJACENT TERRITORIAL JURISDICTION

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        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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             (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 OWNS, LEASES,

 8
        IS AUTHORIZED TO ACQUIRE, OR IN WHICH THE AUTHORITY HAS AN

 9
        INTEREST.

10
             (K) MAKE LOANS AND EXTEND CREDIT IN THE AMOUNTS AND ON THE

11
        TERMS THE AUTHORITY DETERMINES.

12
             (l) APPLY FOR, RECEIVE, AND MAINTAIN GRANTS OF AUTHORITY

13
        FROM THE UNITED STATES FOREIGN TRADE ZONE BOARD UNDER CHAPTER

14
        590, 48 STAT. 998, 19 U.S.C. 81a TO 81u, OR ANY SUCCESSOR ACT.

15
             Sec. 9.  An authority may DO 1 OR MORE OF THE FOLLOWING:

16
             (a) Appear in its own behalf before boards, commissions,

17
        departments, or other agencies of the federal government,  or  of

18
        any state, or OF CANADA OR ANY OF ITS PROVINCES, BEFORE interna-

19
        tional conferences, and before committees of the congress of the

20
        United States,  and  the state legislature, THE PARLIAMENT OF

21
        CANADA, AND THE LEGISLATURE OF ANY PROVINCE OF CANADA in all mat-

22
        ters relating to the design, establishment, construction, exten-

23
        sion, operation, improvement, repair, or maintenance of a project

24
        OWNED, IMPROVED, CONTROLLED, operated,  and  OR maintained by the

25
        authority under this act, and appear before any federal or state

26
        agencies OR AGENCIES OF CANADA OR ANY OF ITS PROVINCES in matters

27
        relating to transportation rates, port services and charges,



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 1
        demurrage, switching, wharfage, towage, pilotage, differentials,

 2
        discriminations, labor relations, trade practices, river and

 3
        harbor improvements, aids to navigation, permits for structures

 4
        in navigable waters, THE EXERCISE OF ANY POWER GRANTED TO AN

 5
        AUTHORITY UNDER THIS ACT, and all other matters affecting the

 6
        physical development of, and the business interest of, the

 7
        authority and those it serves.

 8
             (b)  Make application  APPLY for, receive, and accept from

 9
        any federal, state, or municipal agency, foundation, public or

10
        private agency, or individual, a grant or loan for, or in aid of,

11
        the planning, construction, operation, or financing of a port

12
        facility; and receive and accept contributions from any source of

13
        money, property, labor, or other things of value, to be held,

14
        used, and applied for the purposes for which the grant or contri-

15
        bution may be made.

16
             (c) Appoint an executive director who shall be the chief

17
        administrative officer of the authority, and to whom the author-

18
        ity may delegate any of its administrative powers and

19
        authorizations.  During employment the executive director shall

20
        not have a financial interest in port facilities or projects over

21
        which the authority has jurisdiction or power or authorization to

22
        act.

23
             (d) Employ personnel as is necessary and employ the services

24
        of private consultants and engineers, legal counsel, accountants,

25
        construction and financial experts, and other agents for render-

26
        ing professional and technical assistance and advice as may be





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        necessary, and whose compensation, including the executive

 2
        director, shall be determined by the authority.

 3
             Sec. 10.  An authority may DO 1 OR MORE OF THE FOLLOWING:

 4
             (a) Subject to the authority of the federal government and

 5
        the state and with the agreement of the constituent units, pro-

 6
        vide for the preservation of navigation AND AERONAUTICAL

 7
        FACILITIES within its territorial jurisdiction, including the

 8
        establishment by regulation of lines beyond which piers, bulk-

 9
        heads, wharves, pilings, structures, obstructions, or extensions

10
        of any character may not be built, erected, constructed, or

11
        extended; provide by regulation for the stationing, anchoring,

12
        and movement of vessels or other watercraft; adopt rules to pre-

13
        vent material, refuse, or matter of any kind from being thrown

14
        into, deposited, or placed where it may fall, or be washed, into

15
        navigable waters under its jurisdiction; ascertain the depth and

16
        course of the channels of those navigable waters; erect and main-

17
        tain, authorize the erection and maintenance of, and make rules

18
        respecting wharves, bulkheads, piers, and  piling  PILINGS, and

19
        the keeping of  the same  THOSE in repair  ,  to prevent injury

20
        to navigation or health; regulate the use of wharves, docks,

21
        piers, bulkheads, or pilings  owned  CONTROLLED by it OR IN WHICH

22
        IT HAS AN INTEREST; lease or rent the same, and impose and col-

23
        lect dockage from vessels and watercraft lying at, or using the

24
        same; and collect wharfage and other charges upon goods, wares,

25
        merchandise, or other articles landed at, shipped from, stored

26
        on, or passed over the same.





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             (b) Make and enter into contracts and agreements necessary

 2
        or incidental to the performance of its duties and the execution

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        of its powers under this act.

 4
             (c) Lay out, construct, acquire, operate, lease, sell, and

 5
        convey planned industrial districts as a part of port facilities

 6
        within its jurisdiction, subject to the restrictions contained in

 7
        this act upon operation and ownership of port facilities.

 8
             (d) Do all acts and things necessary or convenient to pro-

 9
        mote and increase commerce and recreation within its territorial

10
        jurisdiction and carry out the powers expressly granted and any

11
        powers implied or necessary for the exercise of the powers

12
        expressly granted in this act.

13
             Sec. 11.  Except with respect to docks or wharves owned,

14
        IMPROVED, controlled,  or  operated, OR MAINTAINED by  ,  the

15
        authority, this act shall not be construed to impose a duty upon

16
        an authority to a person using its waters in regard to the safety

17
        thereof, or to render an authority liable for loss of life or

18
        injury or damage to person or property  ,  by reason of an

19
        obstruction in, or unsafe condition of, any part of its waters,

20
        nor shall this act be construed to render the authority liable in

21
        damages or otherwise for an omission to pass or enforce a rule or

22
        resolution made under this act.

23
             Sec. 12.  (1) An authority may acquire by purchase or lease,

24
        when it considers the purchase or lease expedient, lands, struc-

25
        tures, property, rights, rights of way, franchises, easements,

26
        and other interests in lands OR AIR SPACE RIGHTS as it considers

27
        necessary or convenient for the construction or operation of a



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        project  ,  upon terms and at a price as considered reasonable

 2
        and agreed upon between the authority and the owner thereof.

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

 4
        rights, rights of way, franchises, easements, and other property,

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

 6
        association, or corporation considered by the authority to be

 7
        necessary for the construction or efficient operation of a

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        project.  However, a facility currently operated as a port facil-

 9
        ity by a terminal operator or a facility owned or operated by and

10
        for the exclusive use of the owner or operator and a facility

11
        owned or operated by a common carrier or public utility shall be

12
        exempt from this subsection.  The condemnation shall be made in

13
        the manner provided by  Act No. 295 of the Public Acts of 1966,

14
        as amended, being sections 213.361 to 213.391 of the Michigan

15
        Compiled Laws  1966 PA 295, MCL 213.361 TO 213.391, OR THE UNI-

16
        FORM CONDEMNATION PROCEDURES ACT, 1980 PA 87, MCL 213.51 TO

17
        213.75, except where that procedure may be inconsistent with this

18
        act.

19
             (3) An authority may sell or remove the buildings or other

20
        structures upon lands taken by the authority, and may sell or

21
        lease lands or rights or interest in lands or other property

22
        taken or purchased for the purposes of this act.

23
             Sec. 13.  (1) An authority and 1 or more constituent units

24
        may enter into a contract or contracts for the acquisition,

25
        improvement, enlargement, or extension of port facilities and for

26
        the payment of the cost  thereof  OF THOSE PORT FACILITIES by the





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        contracting constituent units, with interest, over a period of

 2
        not more than 40 years.

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             (2) Each contracting constituent unit shall pledge its full

 4
        faith and credit for the payment of its obligations under the

 5
        contract IF APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON THE

 6
        QUESTION IN THE CONTRACTING CONSTITUENT UNIT.  If the constituent

 7
        unit has taxing power, each year it shall levy  a  THE APPROVED

 8
        tax upon all real and personal property within the constituent

 9
        unit, which may be imposed without limitation as to rate or

10
        amount, to the extent necessary for the prompt payment of that

11
        part of the contract obligations  as shall  THAT fall due before

12
        the following year's tax collection.  The tax shall be in addi-

13
        tion to any tax  which  THAT the contracting constituent unit may

14
        otherwise be authorized to levy and may be imposed without limi-

15
        tation as to rate or amount, but shall not be in excess of the

16
        rate or amount necessary to pay the contract obligation.  If any

17
        contracting constituent unit at the time of its annual tax levy

18
        has on hand in cash any amount pledged to the payment of the cur-

19
        rent obligations for which the tax levy is to be made,  then  the

20
        annual tax levy may be reduced by that amount.   For the purpose

21
        of obtaining the credit, funds

22
             (3) FUNDS may be raised by a contracting constituent unit in

23
        1 or more of the following methods:

24
             (a) By service charge to users of the facilities owned,

25
        IMPROVED, CONTROLLED, OPERATED, OR MAINTAINED by the port

26
        authority.





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

 2
        contracting constituent unit.

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             (c) By special assessment upon lands benefited.

 4
             (d) By setting aside any other available money.

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             (4)  (3)  A contracting constituent unit may agree to raise

 6
        all or any part of its contract obligation by 1 or more of the

 7
        methods enumerated in subsection  (2) which  (3) THAT may be

 8
        available.  The various powers granted in this act to a constitu-

 9
        ent unit shall be exercised by its governing body.

10
             (5)  (4)  If a constituent unit, other than a county, oper-

11
        ating under this act elects to raise money to pay all or a por-

12
        tion of its share of the cost of a project by assessing the costs

13
        upon benefited lands, its governing body shall so determine by

14
        resolution and fix the district therefor.  The governing body

15
        shall then cause a special assessment roll to be prepared.   and

16
        thereafter the proceedings in respect to  THE PROCEDURES

17
        REGARDING the special assessment roll and the making and collec-

18
        tion of the special assessments on the roll  ,  shall be in

19
        accordance with the provisions of the statute or charter govern-

20
        ing special assessments in the constituent unit, except that the

21
        total assessment may be divided into any number of installments

22
        not exceeding 30, and any person assessed shall have the right at

23
        the hearing upon the special assessment roll to object to the

24
        special assessment district previously established.

25
             Sec. 16.  Revenue bonds issued pursuant to this act  shall

26
        MAY be secured by a trust agreement by and between the authority

27
        and a corporate trustee, which may be any trust company or bank



   05870'01 *                                  13

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

 2
        state.  The trust agreement may pledge or assign the rentals and

 3
        other revenues of the authority.   , but shall not convey or

 4
        mortgage part or all of a project.  The trust agreement shall

 5
        contain provisions for protecting and enforcing the rights and

 6
        remedies of the bondholders as may be reasonable and proper and

 7
        not in violation of law, including convenants setting forth the

 8
        duties of the authority in relation to the acquisition or con-

 9
        struction of a project and the extension, enlargement, improve-

10
        ment, maintenance, operation, repair, and insurance of a project

11
        and the custody, safeguarding, and application of all money and

12
        may contain provisions for the employment of consulting engineers

13
        in connection with the construction and operation of a project.

14
        The trust agreement shall set forth the rights and remedies of

15
        the bondholders and of the trustee,  and  may restrict the indi-

16
        vidual right of action by the bondholders, and may contain any

17
        other provisions the authority may consider reasonable and proper

18
        for the security of the bondholders.

19
             Sec. 23.   (1)  An authority  created on or after May 1,

20
        1984  shall within 2 years after its creation prepare or cause to

21
        be prepared a plan for the future development, construction, and

22
        improvement of the port and its facilities, including the maps,

23
        profiles, and other data and descriptions necessary to set forth

24
        the location and character of the work to be undertaken by the

25
        authority.   An authority in existence before May 1, 1984 shall

26
        prepare or cause to be prepared the plan provided for in this

27
        subsection not later than September 30, 1985.  The authority



   05870'01 *                                  14

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

 2
        progress of the plan.  The authority shall cause notice by publi-

 3
        cation to be given upon the completion of the plan in a daily

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        newspaper of general circulation in the area under the jurisdic-

 5
        tion of the authority.  The notice shall  fix  SET the time and

 6
        place for A hearing on the plan, which shall be not less than 30

 7
         nor  OR more than 60 days after publication of the notice.  Any

 8
        interested person may file written comments to the plan, if those

 9
        comments are filed with the secretary-treasurer of the authority

10
        not less than 5 days before the date  fixed  SET for the

11
        hearing.  After the hearing, the authority may adopt the plan,

12
        with any modifications or amendments, as the official plan of the

13
        authority.  The authority, after adoption of the plan, may

14
        modify, amend, or extend the plan after notice and hearing in the

15
        manner prescribed in this subsection.

16
              (2) The plan and any modification, amendment, or extension,

17
        when adopted by the authority after notice and hearing, shall be

18
        conclusive except that plans for specific projects, to be under-

19
        taken in execution of the official plan, shall not be adopted by

20
        the authority without prior individual approval by the governing

21
        bodies of its constituent units, the state transportation depart-

22
        ment, and the department of commerce.

23
             Sec. 24.  (1) The authority shall submit in writing a

24
        detailed estimate of the budget required for the business and

25
        conduct of an authority's affairs, initially  ,  for a 2-year

26
        period  ,  and annually thereafter, to the governing bodies of

27
        its constituent units.   , the department of commerce, and the



   05870'01 *                                  15

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        department of state highways and transportation for approval.

 2
        The state shall provide 50% of the operating budget of the

 3
        authority, to be included in the  department of  state  highways

 4
        and  transportation DEPARTMENT budget which shall be subject to

 5
        legislative approval.  Fifty percent of the operating budget of

 6
        an authority in which not more than 1 county and not more than 1

 7
        city participate shall be funded equally by the participating

 8
        county and city.

 9
             (2) A city or county creating or participating in an author-

10
        ity may appropriate for the use of the authority, and include in

11
        its levy for general fund purposes, an amount considered proper.

12
        However, the total amount permitted by law to be levied by a city

13
        or county for general fund purposes shall not be considered

14
        increased by this section.

15
             (3) As used in this section, "operating budget" means solely

16
        operation and maintenance expenses of an authority not included

17
        in the cost of a specific project, THE COST OF DEVELOPING A SPE-

18
        CIFIC PROJECT, and interest on notes, but excludes amounts for

19
        debt service on bonds and amounts for acquisition, construction,

20
        enlargement, improvement, or extension of port facilities.

21
             (4) PROJECT COSTS OF A SPECIFIC PROJECT, INCLUDING DEVELOP-

22
        MENT COSTS OR COSTS OF AN UNDERTAKING OF AN AUTHORITY, SHALL BE

23
        PAYABLE FROM ANY LEGALLY AVAILABLE SOURCE.

24
             Enacting section 1.  Section 15 of the

25
        Hertel-Law-T. Stopczynski port authority act, 1978 PA 639,

26
        MCL 120.115, is repealed.





   05870'01 *          Final page.                          KAO