SENATE BILL No. 1078

February 5, 2002, Introduced by Senator SIKKEMA and referred to the Committee on Finance.

A bill to amend 1978 PA 639, entitled

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

by amending sections 14 and 18 (MCL 120.114 and 120.118), as

amended by 1983 PA 23.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 14. (1) An authority may provide by resolution for the

2 issuance of revenue bonds of the authority for the purpose of

3 providing funds for paying the cost of port facilities, or for

4 paying the cost of an extension, enlargement, or improvement of a

5 project then under the control of the authority. The bonds may

6 be term bonds or serial bonds, or a combination thereof OF

7 BOTH, and shall be issued, sold publicly or privately, and exe-

8 cuted in a manner as may be determined by the authority. The

9 bonds issued pursuant to UNDER this section shall bear

10 interest at the rate provided in the municipal finance act, Act

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1 No. 202 of the Public Acts of 1943, as amended, being sections

2 131.1 to 139.3 of the Michigan Compiled Laws, payable semiannual-

3 ly, and shall mature at a time or times, not exceeding 40 years

4 after their date of issuance, as the authority may provide.

5 Unless an exception from prior approval is available pursuant to

6 subsection (5), a bond issued under this act must first be

7 approved by the municipal finance commission or its successor

8 agency.

9 (2) When the authority considers refunding expedient, the

10 authority may refund bonds by the issuance of new bonds, whether

11 the bonds to be refunded have or have not matured. The refunding

12 bonds shall be sold and the proceeds applied to the purchase,

13 redemption, or payment of the bonds to be refunded. The proceeds

14 of the bonds of each series issued pursuant to this section shall

15 be paid to a trustee under a trust agreement securing the bonds

16 and shall be disbursed in a manner and under restrictions as may

17 be provided in the trust agreement. REVENUE BONDS ISSUED UNDER

18 THIS SECTION ARE SUBJECT TO THE REVENUE BOND ACT OF 1933, 1933

19 PA 94, MCL 141.101 TO 141.140.

20 (3) Revenue bonds issued pursuant to this section shall not

21 be considered to constitute a debt of the THIS state, or a

22 political subdivision of the THIS state, or of the authority,

23 or any constituent unit, or a pledge of the faith and credit of

24 the THIS state or a political subdivision of the THIS state

25 or of the authority or any constituent unit, but shall be payable

26 solely from the revenues or income to be derived from the

27 projects. The revenue bonds shall contain on their face a

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1 statement to the effect that the bonds and attached coupons are

2 payable solely from revenues and are not a general obligation of

3 the THIS state, a political subdivision of the THIS state,

4 the authority, or a constituent unit, and neither the faith and

5 credit nor the taxing power of the THIS state, a political sub-

6 division of the THIS state, the authority, or a constituent

7 unit, is pledged to the payment of the principal of or the inter-

8 est on the bonds.

9 (4) This act shall be construed as authorizing the issuance

10 of revenue bonds under this act without submitting the question

11 of issuance to the voters of the constituent units of the

12 authority. Except in the case of refunding bonds, the authority

13 shall publish a notice of intent to issue bonds. The notice

14 shall be directed to the electors of each of the constituent

15 units of the authority, and shall be published in a newspaper

16 which THAT has general circulation in the territory of the

17 authority, and shall state the maximum amount of bonds to be

18 issued, the purpose of the bonds, source of payment, right of

19 referendum on the bonds, and other information the authority

20 determines necessary to adequately inform the electors of the

21 nature of the issue. If, within 90 days after the publication of

22 the notice a petition, signed by not less than 10% or 15,000 of

23 the registered electors, whichever is less, residing within the

24 limits of all of the constituent units of the authority, is filed

25 with the clerk, or other recording officer, of the county where

26 the authority is located, requesting a referendum upon the

27 question of the issuance of the bonds, then the bonds shall not

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1 be issued until approved by the vote of a majority of the

2 electors of all of the constituent units of the authority taken

3 as a whole and not individually qualified to vote and voting on

4 the bonds at a general or special election. A special election

5 called for this purpose shall not be included in statutory or

6 charter limitation as to the number of special elections to be

7 called within a period of time. Signatures on the petition shall

8 be verified by a person under oath, as the actual signatures of

9 the persons whose names are signed to the petition, and the

10 clerk, or other recording officer, of the county where the

11 authority is located shall have the same power to reject signa-

12 tures and petitions as city clerks pursuant to section 25 of Act

13 No. 279 of the Public Acts of 1909, as amended, being section

14 117.25 of the Michigan Compiled Laws THE HOME RULE CITY ACT,

15 1909 PA 279, MCL 117.25. The number of registered electors in

16 any constituent unit of the authority shall be determined by the

17 township or city registration books, or both. Section 5 of Act

18 No. 279 of the Public Acts of 1909, as amended, being section

19 117.5 of the Michigan Compiled Laws THE HOME RULE CITY ACT, 1909

20 PA 279, MCL 117.5, relative to notice of intention to issue

21 bonds, shall not apply to the authorization of the issuance of

22 bonds under this act.

23 (5) The requirement of subsection (1) for obtaining the

24 prior approval of the municipal finance commission or its succes-

25 sor agency before issuing bonds under this act shall be subject

26 to sections 10 and 11 of chapter III of Act No. 202 of the Public

27 Acts of 1943, being sections 133.10 and 133.11 of the Michigan

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1 Compiled Laws, and the department of treasury shall have the same

2 authority as provided by section 11 of Act No. 202 of the Public

3 Acts of 1943 to issue an order providing or denying an exception

4 from the prior approval required by subsection (1) for bonds

5 authorized by this act.

6 Sec. 18. (1) In addition to the bonds authorized in section

7 14, bonds may be issued for the purpose of acquiring port facili-

8 ties, as follows:

9 (a) By the issuance of bonds in anticipation of payments to

10 become due under contracts by which 1 or more constituent units

11 agree to pay to an authority operating under this act certain

12 sums toward the cost of the acquisition, improvement, enlarge-

13 ment, or extension of a project which THAT may be made under

14 this act.

15 (b) By money advanced by an authority operating under this

16 act under agreements with a constituent unit or other municipal-

17 ity for the repayment of the money.

18 (c) By money advanced, from time to time, before or during

19 construction of a project, by a public or private corporation,

20 firm, or individual, for which an authority operating under this

21 act shall reimburse the individual, firm, or corporation with

22 interest not to exceed 8% per annum or without interest as may be

23 agreed, when funds are available for reimbursement. The obliga-

24 tion of an authority to make the reimbursement may be evidenced

25 by a contract or note, which contract or note may be made payable

26 out of the payments to be made by constituent units under

27 contracts made pursuant to subdivision (b), or out of the

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1 proceeds of bonds issued pursuant to this act by the county or

2 out of any other available funds. but the contract or note shall

3 not be considered an obligation within the meaning of Act No. 202

4 of the Public Acts of 1943, as amended, being sections 131.1 to

5 139.3 of the Michigan Compiled Laws.

6 (2) Bonds issued under this section shall be authorized by a

7 resolution adopted by the authority. The bonds shall be issued

8 in the name of the authority and shall be executed by the chair-

9 person and secretary-treasurer of the authority, who shall also

10 cause their facsimile signatures to be affixed to the interest

11 coupons to be attached to the bonds. The authority shall adopt a

12 seal which THAT shall be affixed to the bonds. Bonds issued

13 under this section shall be negotiable instruments. and shall be

14 serial bonds payable annually, with the first maturity due not

15 more than 5 years and the last maturity not more than 40 years

16 after the date of issuance. Annual maturity payable after 5

17 years after the date of issuance of the bonds shall not be less

18 than 1/5 of the amount of any subsequent maturity on the same

19 series of bonds. The bonds shall bear interest at not more than

20 the maximum rate permitted by Act No. 202 of the Public Acts of

21 1943, as amended, payable semiannually, except that the first

22 coupon may be for any number of months not exceeding 10. The

23 bonds and coupons shall be made payable in lawful money of the

24 United States and shall be exempt from all taxation whatsoever by

25 the THIS state or by any taxing authority within the THIS

26 state. The bonds may be sold at public or private sale. The

27 bonds authorized in this section and section 14 shall not, except

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1 as to interest rate and as provided by section 14(5), be subject

2 to Act No. 202 of the Public Acts of 1943, as amended.

3 (3) BONDS OR NOTES ISSUED UNDER THIS SECTION ARE SUBJECT TO

4 THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

5 141.2821.

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