HOUSE BILL No. 5439

 

January 27, 2004, Introduced by Reps. Shulman and Hunter and referred to the Committee on Great Lakes and Tourism.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to create and provide for the operation of the                             

                                                                                

    Michigan port authority; to provide for the creation and                    

                                                                                

    appointment of a board to govern the authority and to prescribe             

                                                                                

    its powers and duties; to provide for the powers and duties of              

                                                                                

    the authority; to extend protections against certain liabilities            

                                                                                

    to the authority; to provide for the issuance of certain bonds,             

                                                                                

    notes, and other obligations; to facilitate the use and                     

                                                                                

    development of authority property and port facilities; to promote           

                                                                                

    economic growth; to exempt property, income, and operations of an           

                                                                                

    authority from tax; and to provide an appropriation.                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   "Michigan port authority act".                                              

                                                                                

3       Sec. 2.  As used in this act:                                               

                                                                                

4       (a) "Authority" means the Michigan port authority created                   

                                                                                


                                                                                

1   under section 3.                                                            

                                                                                

2       (b) "Authorized purposes" means activities that enhance,                    

                                                                                

3   foster, aid, provide, or promote transportation, economic                   

                                                                                

4   development, housing, recreation, education, governmental                   

                                                                                

5   operations, culture, or research within this state.                         

                                                                                

6       (c) "Board" means the governing body of the authority                       

                                                                                

7   described in section 4.                                                     

                                                                                

8       (d) "Department" means the department of labor and economic                 

                                                                                

9   growth described in Executive Order No. 2003-18.                            

                                                                                

10      (e) "Develop" means the acquisition, financing, purchase,                   

                                                                                

11  construction, reconstruction, rehabilitation, remodeling,                   

                                                                                

12  improvement, enlargement, repair, condemnation, maintenance, or             

                                                                                

13  operation of port facilities.                                               

                                                                                

14      (f) "Fund" means the Michigan port authority fund created in                

                                                                                

15  section 20.                                                                 

                                                                                

16      (g) "Governmental agency" means a department, agency, or                    

                                                                                

17  commission of this state or of a county, city, village, or                  

                                                                                

18  township of this state.                                                     

                                                                                

19      (h) "Local unit of government" means a city, county,                        

                                                                                

20  township, or village.                                                       

                                                                                

21      (i) "Michigan economic development corporation" means the                   

                                                                                

22  public body corporate created under section 28 of article VII of            

                                                                                

23  the state constitution of 1963 and the urban cooperation act of             

                                                                                

24  1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a                     

                                                                                

25  contractual interlocal agreement effective April 5, 1999 between            

                                                                                

26  local participating economic development corporations formed                

                                                                                

27  under the economic development corporations act, 1974 PA 338,               


                                                                                

1   MCL 125.1601 to 125.1636, and the Michigan strategic fund under             

                                                                                

2   the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to               

                                                                                

3   125.2093.                                                                   

                                                                                

4       (j) "Person" means an individual, partnership, corporation,                 

                                                                                

5   limited liability company, association, governmental entity, or             

                                                                                

6   other legal entity.                                                         

                                                                                

7       (k) "Port facilities" means real or personal property, or any               

                                                                                

8   combination of real or personal property, that is owned, leased,            

                                                                                

9   or otherwise controlled or financed by a port authority and is              

                                                                                

10  related to, useful for, or in furtherance of, 1 or more                     

                                                                                

11  authorized purposes.                                                        

                                                                                

12      Sec. 3.  (1) There is created by this act a public body                     

                                                                                

13  corporate and politic known as the Michigan port authority.  The            

                                                                                

14  authority shall be located within the department.                           

                                                                                

15      (2) The authority shall exercise its prescribed statutory                   

                                                                                

16  powers, duties, and functions independently of the director of              

                                                                                

17  the department.  The budgeting, procurement, and related                    

                                                                                

18  administrative functions of the authority shall be performed                

                                                                                

19  under the direction and supervision of the director of the                  

                                                                                

20  department.                                                                 

                                                                                

21      (3) The authority may contract with the department for the                  

                                                                                

22  purpose of maintaining the rights and interests of the                      

                                                                                

23  authority.                                                                  

                                                                                

24      (4) The accounts of the authority may be subject to annual                  

                                                                                

25  financial audits by the state auditor general.  Records of the              

                                                                                

26  authority shall be maintained according to generally accepted               

                                                                                

27  accounting principles.                                                      


                                                                                

1       Sec. 4.  (1) The authority created under this act shall be                  

                                                                                

2   governed by the Michigan port authority board, which shall                  

                                                                                

3   consist of 7 board members who are residents of this state.  Of             

                                                                                

4   the members first appointed under subsection (2)(d), 2 shall be             

                                                                                

5   appointed for a term of 2 years and 2 shall be appointed for a              

                                                                                

6   term of 3 years.                                                            

                                                                                

7       (2) The members of the board shall be as follows:                           

                                                                                

8       (a) The chief executive officer of the Michigan economic                    

                                                                                

9   development corporation, or his or her designee, as chairperson             

                                                                                

10  of the authority.                                                           

                                                                                

11      (b) The director of the department of labor and economic                    

                                                                                

12  growth, or his or her designee.                                             

                                                                                

13      (c) The director of the state transportation department, or                 

                                                                                

14  his or her designee.                                                        

                                                                                

15      (d) Four other members appointed by the governor by and with                

                                                                                

16  the advice and consent of the senate who are not employed by this           

                                                                                

17  state and who have knowledge, skill, and experience in economic             

                                                                                

18  development.  Of the members appointed by the governor under this           

                                                                                

19  subsection, 1 shall be appointed from 1 or more nominees of the             

                                                                                

20  majority leader of the senate and 1 shall be appointed from 1 or            

                                                                                

21  more nominees of the speaker of the house of representatives.               

                                                                                

22      (3) Upon appointment to the board under subsection (2) and                  

                                                                                

23  upon the taking and filing of the constitutional oath of office             

                                                                                

24  prescribed in section 1 of article XI of the state constitution             

                                                                                

25  of 1963, a member of the board shall enter the office and                   

                                                                                

26  exercise the duties of the office.                                          

                                                                                

27      (4) After the first appointment, each member shall serve a                  


                                                                                

1   term of 4 years, except that a person appointed to fill a vacancy           

                                                                                

2   shall be appointed for the balance of the unexpired term.  The              

                                                                                

3   governor shall fill a vacancy in the office by appointment in the           

                                                                                

4   same manner as an appointment under subsection (2).  A member of            

                                                                                

5   the board shall hold office until a successor has been appointed            

                                                                                

6   and qualified.  A member of the board is eligible for                       

                                                                                

7   reappointment.                                                              

                                                                                

8       (5) Members of the board and officers and employees of the                  

                                                                                

9   authority are considered public servants subject to 1968 PA 317,            

                                                                                

10  MCL 15.321 to 15.330, and 1968 PA 318, MCL 15.301 to 15.310.  A             

                                                                                

11  member of the board or an officer, employee, or agent of the                

                                                                                

12  authority shall discharge the duties of the position in a                   

                                                                                

13  nonpartisan manner, in good faith, in the best interests of the             

                                                                                

14  authority, and with the degree of diligence, care, and skill that           

                                                                                

15  an ordinarily prudent person would exercise under similar                   

                                                                                

16  circumstances in a like position.  In discharging duties of the             

                                                                                

17  office, a member of the board or an officer, employee, or agent             

                                                                                

18  of the authority, when acting in good faith, may rely upon a                

                                                                                

19  majority vote of a quorum of the board, upon the opinion of                 

                                                                                

20  counsel for the authority, upon the report of an independent                

                                                                                

21  appraiser selected with reasonable care by the board, or upon               

                                                                                

22  financial statements of the authority represented to the member             

                                                                                

23  of the board, officer, employee, or agent to be correct by the              

                                                                                

24  officer of the authority having charge of its books or accounts             

                                                                                

25  or stated in a written report by the auditor general or a                   

                                                                                

26  certified public accountant or a firm of accountants to fairly              

                                                                                

27  reflect the financial condition of the authority.                           


                                                                                

1       (6) The board shall elect a vice-chairperson, secretary, and                

                                                                                

2   any additional officers of the board considered necessary by the            

                                                                                

3   board from among its members.  All elected officers of the board            

                                                                                

4   shall be elected annually by the board.  Members of the board               

                                                                                

5   shall serve without compensation, but shall be reimbursed for               

                                                                                

6   actual and necessary expenses.                                              

                                                                                

7       Sec. 5.  (1) Upon the appointment of at least 4 members of                  

                                                                                

8   the board under section 4, the board may hold its first meeting.            

                                                                                

9   The first meeting of the board shall be held not more than 60               

                                                                                

10  days after the date the authority is created.                               

                                                                                

11      (2) The board shall organize and adopt its own policies,                    

                                                                                

12  procedures, schedule of regular meetings, and a regular meeting             

                                                                                

13  date, place, and time.  The board shall conduct all business at             

                                                                                

14  public meetings held in compliance with the open meetings act,              

                                                                                

15  1976 PA 267, MCL 15.261 to 15.275.  Public notice of the time,              

                                                                                

16  date, and place of each meeting shall be given in the manner                

                                                                                

17  required by the open meetings act, 1976 PA 267, MCL 15.261 to               

                                                                                

18  15.275.                                                                     

                                                                                

19      (3) A writing prepared, owned, used, in the possession of, or               

                                                                                

20  retained by the board in the performance of an official function            

                                                                                

21  shall be made available to the public in compliance with the                

                                                                                

22  freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.              

                                                                                

23      (4) A board may act only by resolution.  A majority of the                  

                                                                                

24  members of the board then in office, or of any committee of the             

                                                                                

25  board, shall constitute a quorum for the transaction of                     

                                                                                

26  business.  The board shall meet in person or by means of                    

                                                                                

27  electronic communication devices that enable all participants in            


                                                                                

1   the meeting to communicate with each other.  A vote of a majority           

                                                                                

2   of the members of the board serving at the time of the vote is              

                                                                                

3   necessary to approve the issuance by the authority of bonds, to             

                                                                                

4   approve or amend the annual budget of the authority.  Except as             

                                                                                

5   otherwise provided in this act, a vote of the majority of the               

                                                                                

6   board members present at a meeting at which a quorum is present             

                                                                                

7   constitutes the action of the board or of the committee.                    

                                                                                

8       (5) Before the beginning of each fiscal year, the board shall               

                                                                                

9   prepare a budget containing an itemized statement of the                    

                                                                                

10  estimated current operational expenses for the operation of the             

                                                                                

11  authority and development of port facilities in this state, the             

                                                                                

12  amount necessary to pay the principal and interest of any                   

                                                                                

13  outstanding bonds or other obligations of the authority maturing            

                                                                                

14  during the ensuing fiscal year or that have previously matured              

                                                                                

15  and are unpaid, an estimate of the revenue of the authority from            

                                                                                

16  all sources for the ensuing fiscal year, and other amounts                  

                                                                                

17  necessary to further the purposes of this act.  The authority's             

                                                                                

18  budget shall be funded by proceeds derived from gifts, grants,              

                                                                                

19  loans, and other aids from any person or the federal government,            

                                                                                

20  this state, or a local government or any agency of the federal              

                                                                                

21  government, this state, or a local government.                              

                                                                                

22      Sec. 6.  (1) The board may appoint a person, other than a                   

                                                                                

23  member of the board, to serve as director of the authority, to              

                                                                                

24  whom the authority may delegate any of its administrative powers            

                                                                                

25  and authorization.                                                          

                                                                                

26      (2) Subject to the approval of the board, the director shall                

                                                                                

27  supervise, and be responsible for, all of the following:                    


                                                                                

1       (a) The performance of the functions of the authority under                 

                                                                                

2   this act.                                                                   

                                                                                

3       (b) A regular report describing the activities and financial                

                                                                                

4   condition of the authority.                                                 

                                                                                

5       (c) The issuance of bonds and notes approved by the board.                  

                                                                                

6       (d) All other activities or functions that the board                        

                                                                                

7   considers necessary.                                                        

                                                                                

8       (3) The board may employ legal and technical experts, private               

                                                                                

9   consultants and engineers, accountants, and other agents or                 

                                                                                

10  employees for rendering professional and technical assistance and           

                                                                                

11  advice as may be necessary.  The authority shall determine the              

                                                                                

12  qualifications, duties, and compensation of those it employs.               

                                                                                

13      Sec. 7.  Except as otherwise provided in this act, the                      

                                                                                

14  authority may do all things necessary to implement the purposes             

                                                                                

15  of this act, including, but not limited to, all of the                      

                                                                                

16  following:                                                                  

                                                                                

17      (a) Adopt, amend, and repeal bylaws for the regulation of its               

                                                                                

18  affairs and the conduct of its business.                                    

                                                                                

19      (b) Adopt an official seal and alter the seal at the pleasure               

                                                                                

20  of the board.                                                               

                                                                                

21      (c) Sue and be sued in its own name and plead and be                        

                                                                                

22  impleaded.                                                                  

                                                                                

23      (d) Solicit and accept gifts, grants, loans, and other                      

                                                                                

24  assistance from any person or the federal, the state, or a local            

                                                                                

25  government or any agency of the federal, the state, or a local              

                                                                                

26  government or participate in any other way in any federal, state,           

                                                                                

27  or local government program.                                                


                                                                                

1       (e) Research and publish studies, investigations, surveys,                  

                                                                                

2   and findings on the developing and operations of port                       

                                                                                

3   facilities.                                                                 

                                                                                

4       (f) Finance, direct, or otherwise aid in the planning,                      

                                                                                

5   construction, and design of port facilities.                                

                                                                                

6       (g) Finance, direct, or otherwise aid in the securing of port               

                                                                                

7   facilities and surrounding areas in this state.                             

                                                                                

8       (h) Make grants, loans, and investments; guarantee and insure               

                                                                                

9   loans, leases, bonds, notes, or other indebtedness, whether                 

                                                                                

10  public or private; and issue letters of credit.                             

                                                                                

11      (i) Construct; acquire by gift, purchase, installment                       

                                                                                

12  purchase, or lease; and reconstruct, improve, repair, or equip a            

                                                                                

13  port facility or any part of a port facility, including related             

                                                                                

14  infrastructure.                                                             

                                                                                

15      (j) Borrow money and issue bonds and notes to finance part or               

                                                                                

16  all of the costs of developing port facilities and secure those             

                                                                                

17  bonds and notes by mortgage, assignment, or pledge of any of its            

                                                                                

18  money, revenues, income, and properties.                                    

                                                                                

19      (k) Acquire or contract to acquire from a person, a                         

                                                                                

20  municipality, the federal or state government, or an agency of              

                                                                                

21  the federal or state government, leaseholds, real or personal               

                                                                                

22  property, or any interest in real or personal property and own,             

                                                                                

23  hold, clear, improve, and rehabilitate and sell, assign,                    

                                                                                

24  exchange, transfer, convey, lease, mortgage, or otherwise dispose           

                                                                                

25  of or encumber leaseholds, real or personal property, or any                

                                                                                

26  interest in real or personal property, as is convenient for the             

                                                                                

27  accomplishment of the purposes of this act and of the authority.            


                                                                                

1                                                                                (l) Procure insurance against any loss in connection with the                       

                                                                                

2   authority's property, assets, or activities.                                

                                                                                

3       (m) Invest any money of the authority, at the board's                       

                                                                                

4   discretion, in any bond, note, or other obligation determined               

                                                                                

5   proper by the board, and name and use depositories for its                  

                                                                                

6   money.                                                                      

                                                                                

7       (n) Contract for goods and services and engage personnel as                 

                                                                                

8   necessary and engage the services of private consultants,                   

                                                                                

9   managers, legal counsel, engineers, accountants, and auditors for           

                                                                                

10  rendering professional financial assistance and advice payable              

                                                                                

11  out of any money of the authority.                                          

                                                                                

12      (o) Charge, impose, and collect fees and charges in                         

                                                                                

13  connection with any transaction and provide for reasonable                  

                                                                                

14  penalties for delinquent payment of fees or charges.                        

                                                                                

15      (p) Indemnify and procure insurance indemnifying any members                

                                                                                

16  of the board or employees of the board from personal loss or                

                                                                                

17  accountability from liability asserted by a person on the bonds             

                                                                                

18  or notes of the authority or from any personal liability or                 

                                                                                

19  accountability by reason of the issuance of the bonds, notes,               

                                                                                

20  insurance, or guarantees; by reason of acquisition, construction,           

                                                                                

21  ownership, or operation of a project; or by reason of any other             

                                                                                

22  action taken or the failure to act by the authority.                        

                                                                                

23      (q) Mortgage or create security interests in a port facility                

                                                                                

24  or any part of a port facility, or in a lease or loan, or in the            

                                                                                

25  rents, revenues, or sums to be paid under a lease or loan, in               

                                                                                

26  favor of the holders of the bonds or notes issued by the                    

                                                                                

27  authority.                                                                  


                                                                                

1       (r) Convey or release a port facility or any part of a port                 

                                                                                

2   facility to a lessee, purchaser, or borrower under any agreement            

                                                                                

3   after provision has been made for the retirement in full of the             

                                                                                

4   bonds or notes issued for that port facility under terms and                

                                                                                

5   conditions provided in the agreement or as may be agreed with the           

                                                                                

6   holders of the bonds or notes, at any time where the obligation             

                                                                                

7   of the lessee, purchaser, or borrower to make the payments                  

                                                                                

8   prescribed shall remain fixed as provided in the agreement                  

                                                                                

9   notwithstanding the conveyance or release, or as may otherwise be           

                                                                                

10  agreed with the holders of the bonds or notes.                              

                                                                                

11      (s) Promulgate rules pursuant to the administrative                         

                                                                                

12  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328,                  

                                                                                

13  necessary to carry out the purposes of this act.                            

                                                                                

14      (t) Do all other things necessary to promote and develop port               

                                                                                

15  facilities in this state.                                                   

                                                                                

16      Sec. 8.  (1) The authority may acquire real or personal                     

                                                                                

17  property or rights or interests in real or personal property by             

                                                                                

18  gift, devise, transfer, exchange, foreclosure, purchase, or                 

                                                                                

19  otherwise on terms and conditions and in a manner the authority             

                                                                                

20  considers proper.  The authority may own, lease, convey,                    

                                                                                

21  demolish, relocate, or rehabilitate real or personal property or            

                                                                                

22  rights or interests in real or personal property, consistent with           

                                                                                

23  the purposes of this act.                                                   

                                                                                

24      (2) Real property acquired by the authority by purchase may                 

                                                                                

25  be obtained by any method considered desirable by the authority.            

                                                                                

26  The authority may purchase real property or rights or interests             

                                                                                

27  in real property for any purpose the authority considers                    


                                                                                

1   necessary to carry out the purposes of this act.                            

                                                                                

2       (3) The authority may acquire real property by condemnation                 

                                                                                

3   as provided in the uniform condemnation procedures act, 1980 PA             

                                                                                

4   87, MCL 213.51 to 213.75.                                                   

                                                                                

5       Sec. 9.  The authority may control, hold, manage, maintain,                 

                                                                                

6   operate, repair, lease, secure, prevent the waste or                        

                                                                                

7   deterioration of, demolish, and take all other actions necessary            

                                                                                

8   to preserve the value of property held by the authority.                    

                                                                                

9       Sec. 10.  (1) The authority may authorize and issue its                     

                                                                                

10  bonds or notes payable solely from revenues or funds available to           

                                                                                

11  the authority.  Bonds and notes of the authority are not a debt             

                                                                                

12  or liability of this state and do not create or constitute any              

                                                                                

13  indebtedness, liability, or obligations of this state or                    

                                                                                

14  constitute a pledge of the full faith or credit of this state.              

                                                                                

15  All authority bonds and notes shall be payable solely from                  

                                                                                

16  revenues or funds pledged or available for their payment as                 

                                                                                

17  authorized in this act.  Each bond and note shall contain on its            

                                                                                

18  face a statement to the effect that the authority is obligated to           

                                                                                

19  pay the principal of and the interest on the bond or note only              

                                                                                

20  from revenue or funds of the authority pledged for the payment of           

                                                                                

21  principal and interest and that this state is not obligated to              

                                                                                

22  pay that principal and interest and that neither the full faith             

                                                                                

23  and credit nor the taxing power of this state is pledged to the             

                                                                                

24  payment of the principal of or the interest on the bond or note.            

                                                                                

25      (2) All expenses incurred in carrying out this section shall                

                                                                                

26  be payable solely from revenues or funds provided or to be                  

                                                                                

27  provided under this act.  This act does not authorize the                   


                                                                                

1   authority to incur any indebtedness or liability on behalf of or            

                                                                                

2   payable by this state.                                                      

                                                                                

3       (3) Bonds and notes issued under this act are not subject to                

                                                                                

4   the revised municipal finance act, 2001 PA 34, MCL 141.2101 to              

                                                                                

5   141.2821.                                                                   

                                                                                

6       (4) The issuance of bonds and notes under this section is                   

                                                                                

7   subject to the agency financing reporting act, 2002 PA 470, MCL             

                                                                                

8   129.171 to 129.177.                                                         

                                                                                

9       Sec. 11.  (1) The authority may issue from time to time                     

                                                                                

10  bonds or notes in principal amounts the authority considers                 

                                                                                

11  necessary to provide funds for any purpose, including, but not              

                                                                                

12  limited to, all of the following:                                           

                                                                                

13      (a) The payment, funding, or refunding of the principal of,                 

                                                                                

14  interest on, or redemption premiums on bonds or notes issued by             

                                                                                

15  the authority whether the bonds or notes or interest to be funded           

                                                                                

16  or refunded has or has not become due.                                      

                                                                                

17      (b) The establishment or increase of reserves to secure or to               

                                                                                

18  pay authority bonds or notes or interest on those bonds or                  

                                                                                

19  notes.                                                                      

                                                                                

20      (c) The payment of interest on the bonds or notes for a                     

                                                                                

21  period as the authority determines.                                         

                                                                                

22      (d) The payment of all other costs or expenses of the                       

                                                                                

23  authority incident to and necessary or convenient to carry out              

                                                                                

24  its authorized purposes and powers.                                         

                                                                                

25      (2) The bonds or notes of the authority shall not be a                      

                                                                                

26  general obligation of the authority but shall be payable solely             

                                                                                

27  from the revenues or funds, or both, pledged to the payment of              


                                                                                

1   the principal of and interest on the bonds or notes as provided             

                                                                                

2   in the resolution authorizing the bonds or notes.                           

                                                                                

3       (3) The bonds or notes of the authority:                                    

                                                                                

4       (a) Shall be authorized by resolution of the authority.                     

                                                                                

5       (b) Shall bear the date or dates of issuance.                               

                                                                                

6       (c) May be issued as either tax-exempt bonds or notes or                    

                                                                                

7   taxable bonds or notes for federal income tax purposes.                     

                                                                                

8       (d) Shall be serial bonds, term bonds, or term and serial                   

                                                                                

9   bonds.                                                                      

                                                                                

10      (e) Shall mature at a time or times not exceeding 40 years                  

                                                                                

11  from the date of issuance.                                                  

                                                                                

12      (f) May provide for sinking fund payments.                                  

                                                                                

13      (g) May provide for redemption at the option of the authority               

                                                                                

14  at any time for any reason or reasons.                                      

                                                                                

15      (h) May provide for redemption at the option of the                         

                                                                                

16  bondholder at any time for any reason.                                      

                                                                                

17      (i) Shall bear interest at a fixed or variable rate or rates                

                                                                                

18  of interest per year or at no interest.                                     

                                                                                

19      (j) Shall be registered bonds, coupon bonds, or both.                       

                                                                                

20      (k) May contain a conversion feature.                                       

                                                                                

21                                                                               (l) May be transferable.                                                            

                                                                                

22      (m) Shall be in the form, denomination or denominations, and                

                                                                                

23  with such other provisions and terms as are determined necessary            

                                                                                

24  or beneficial by the authority.                                             

                                                                                

25      Sec. 12.  (1) The authority may authorize and approve an                    

                                                                                

26  insurance contract, an agreement for a line of credit, a letter             

                                                                                

27  of credit, a commitment to purchase notes or bonds, an agreement            


                                                                                

1   to remarket bonds or notes, or any other transaction to provide             

                                                                                

2   security to assure timely payment of a bond or note.                        

                                                                                

3       (2) The authority may authorize payment from the proceeds of                

                                                                                

4   the notes or bonds, or other funds available, of the costs of               

                                                                                

5   issuance, including, but not limited to, fees for placement,                

                                                                                

6   charges for insurance, letters of credit, lines of credit,                  

                                                                                

7   remarketing agreements, reimbursement agreements, or purchase or            

                                                                                

8   sales agreements or commitments, or agreements to provide                   

                                                                                

9   security to assure timely payment of notes or bonds.                        

                                                                                

10      Sec. 13.  Within limitations contained in the issuance or                   

                                                                                

11  authorization resolution of the authority, the authority may                

                                                                                

12  authorize a member of the board, the director, or other officer             

                                                                                

13  of the authority to do 1 or more of the following:                          

                                                                                

14      (a) Sell and deliver and receive payment for notes or bonds.                

                                                                                

15      (b) Refund notes or bonds by the delivery of new notes or                   

                                                                                

16  bonds whether or not the notes or bonds to be refunded have                 

                                                                                

17  matured or are subject to redemption.                                       

                                                                                

18      (c) Deliver notes or bonds, partly to refund notes or bonds                 

                                                                                

19  and partly for any other authorized purpose.                                

                                                                                

20      (d) Buy notes or bonds that are issued and resell those notes               

                                                                                

21  or bonds.                                                                   

                                                                                

22      (e) Approve interest rates or methods for fixing interest                   

                                                                                

23  rates, prices, discounts, maturities, principal amounts,                    

                                                                                

24  denominations, dates of issuance, interest payment dates,                   

                                                                                

25  redemption rights, at the option of the authority or the holder,            

                                                                                

26  the place of delivery and payment, and other matters and                    

                                                                                

27  procedures necessary to complete the transactions authorized.               


                                                                                

1       (f) Direct the investment of any and all funds of the                       

                                                                                

2   authority.                                                                  

                                                                                

3       (g) Approve the terms of a contract and execute and deliver                 

                                                                                

4   the contract subject to the restrictions of this part.                      

                                                                                

5       (h) Approve the terms of any insurance contract, agreement                  

                                                                                

6   for a line of credit, a letter of credit, a commitment to                   

                                                                                

7   purchase notes or bonds, an agreement to remarket bonds or notes,           

                                                                                

8   an agreement to manage payment, revenue, or interest rate                   

                                                                                

9   exposure, or any other transaction to provide security to assure            

                                                                                

10  timely payment of a bond or note.                                           

                                                                                

11      (i) Perform any power, duty, function, or responsibility of                 

                                                                                

12  the authority.                                                              

                                                                                

13      Sec. 14.  A resolution authorizing bonds or notes may                       

                                                                                

14  provide for all of the following that shall be part of the                  

                                                                                

15  contract with the holders of the bonds or notes:                            

                                                                                

16      (a) A pledge to any payment or purpose all or any part of                   

                                                                                

17  authority revenues or assets to which its right then exists or              

                                                                                

18  may later come to exist, of money derived from the revenues or              

                                                                                

19  assets, and of the proceeds of bonds or notes or of an issue of             

                                                                                

20  bonds or notes, subject to any existing agreements with                     

                                                                                

21  bondholders or noteholders.                                                 

                                                                                

22      (b) A pledge of a loan, grant, or contribution from the                     

                                                                                

23  federal, state, or local government.                                        

                                                                                

24      (c) The establishment and setting aside of reserves or                      

                                                                                

25  sinking funds and the regulation and disposition of reserves or             

                                                                                

26  sinking funds subject to this act.                                          

                                                                                

27      (d) Authorization for and limitations on the issuance of                    


                                                                                

1   additional bonds or notes for the purposes provided for in the              

                                                                                

2   resolution and the terms upon which additional notes or bonds may           

                                                                                

3   be issued and secured.                                                      

                                                                                

4       (e) The procedure, if any, by which the terms of a contract                 

                                                                                

5   with noteholders or bondholders may be amended or abrogated, the            

                                                                                

6   number of noteholders or bondholders who are required to consent            

                                                                                

7   to the amendment or abrogation, and the manner in which consent             

                                                                                

8   may be given.                                                               

                                                                                

9       (f) A contract with the bondholders as to the custody,                      

                                                                                

10  collection, securing, investment, and payment of any money of the           

                                                                                

11  authority.  Money of the authority and deposits of money may be             

                                                                                

12  secured in the manner determined by the authority.  Banks and               

                                                                                

13  trust companies may give security for the deposits.                         

                                                                                

14      (g) Vest in a trustee, or a secured party, the property,                    

                                                                                

15  income, revenue, receipts, rights, remedies, powers, and duties             

                                                                                

16  in trust or otherwise as the authority determines necessary or              

                                                                                

17  appropriate to adequately secure and protect noteholders and                

                                                                                

18  bondholders or to limit or abrogate the right of the holders of             

                                                                                

19  bonds or notes of the authority to appoint a trustee under this             

                                                                                

20  act or to limit the rights, powers, and duties of the trustee.              

                                                                                

21      (h) Provide the trustee, the noteholders, or the bondholders                

                                                                                

22  remedies that may be exercised if the authority fails or refuses            

                                                                                

23  to comply with this act or defaults in an agreement made with the           

                                                                                

24  holders of an issue of bonds or notes, which may include, but are           

                                                                                

25  not limited to, the following:                                              

                                                                                

26                                                                               (i) By mandamus or other action or proceeding at law or in                          

                                                                                

27  equity, to enforce the rights of the bondholders or noteholders             


                                                                                

1   and require the authority to carry out any other agreement with             

                                                                                

2   the holders of those notes or bonds and to perform the duties of            

                                                                                

3   the authority under this act.                                               

                                                                                

4       (ii) Bring action upon the notes or bonds.                                   

                                                                                

5       (iii) By action, require the authority to account as if it                   

                                                                                

6   were the trustee of an express trust for the holders of the notes           

                                                                                

7   or bonds.                                                                   

                                                                                

8       (iv) By action in equity, enjoin any acts or things that may                 

                                                                                

9   be unlawful or in violation of the rights of the holders of the             

                                                                                

10  notes or bonds.                                                             

                                                                                

11      (v) Declare the notes or bonds due and payable and, if all                  

                                                                                

12  defaults shall be made good, then, as permitted by the                      

                                                                                

13  resolution, annul that declaration and its consequences.                    

                                                                                

14      (i) Any other matters of like or different character that in                

                                                                                

15  any way affect the security or protection of the bonds or notes.            

                                                                                

16      Sec. 15.  A pledge made by the authority shall be valid and                 

                                                                                

17  binding from the time the pledge is made.  The money or property            

                                                                                

18  pledged and then received by the authority immediately is subject           

                                                                                

19  to the lien of the pledge without physical delivery or further              

                                                                                

20  act.  The lien of a pledge is valid and binding as against                  

                                                                                

21  parties having claims of any kind in tort, contract, or otherwise           

                                                                                

22  against the authority and is valid and binding as against the               

                                                                                

23  transfers of money or property pledged, irrespective of whether             

                                                                                

24  parties have notice.  The resolution, the trust agreement, or any           

                                                                                

25  other instrument by which a pledge is created is not required to            

                                                                                

26  be recorded in order to establish and perfect a lien or security            

                                                                                

27  interest in the property pledged.                                           


                                                                                

1       Sec. 16.  The members of the board and any person executing                 

                                                                                

2   bonds or notes issued as provided in this act and any person                

                                                                                

3   executing any agreement on behalf of the authority is not                   

                                                                                

4   personally liable on the bonds or notes by reason of their                  

                                                                                

5   issuance.                                                                   

                                                                                

6       Sec. 17.  The authority may hold, cancel, or resell                         

                                                                                

7   authority bonds or notes subject to or in accordance with an                

                                                                                

8   agreement with holders of authority bonds or notes.                         

                                                                                

9       Sec. 18.  This state pledges to and agrees with the holders                 

                                                                                

10  of bonds or notes issued in accordance with this act that this              

                                                                                

11  state shall not limit or restrict the rights vested in the                  

                                                                                

12  authority by this act to fulfill the terms of an agreement made             

                                                                                

13  with the holders of authority bonds or notes or in any way impair           

                                                                                

14  the rights or remedies of the holders of the bonds or notes of              

                                                                                

15  the authority until the bonds and notes, together with interest             

                                                                                

16  on the bonds or notes and interest on any unpaid installments of            

                                                                                

17  interest, and all costs and expenses in connection with an action           

                                                                                

18  or proceedings by or on behalf of those holders are fully met,              

                                                                                

19  paid, and discharged.                                                       

                                                                                

20      Sec. 19.  Notwithstanding any restriction in any other law,                 

                                                                                

21  this state and a public officer, local unit of government, agency           

                                                                                

22  of this state or a local unit of government, an intergovernmental           

                                                                                

23  entity created under the laws of this state; a bank, trust                  

                                                                                

24  company, savings bank and institution, savings and loan                     

                                                                                

25  association, investment company, or other person carrying on a              

                                                                                

26  banking business; an insurance company, insurance association, or           

                                                                                

27  other person carrying on an insurance business; or an executor,             


                                                                                

1   administrator, guardian, trustee, or other fiduciary may legally            

                                                                                

2   invest funds belonging to them or within their control in bonds             

                                                                                

3   or notes issued under this act, and authority bonds or notes                

                                                                                

4   shall be authorized security for public deposits.                           

                                                                                

5       Sec. 20.  (1) The Michigan port authority fund is created                   

                                                                                

6   under the jurisdiction and control of the authority and may be              

                                                                                

7   administered for the general operations of the authority and to             

                                                                                

8   secure any notes and bonds of the authority.                                

                                                                                

9       (2) The authority may receive money or other assets from any                

                                                                                

10  source for deposit into the fund.  The authority shall credit to            

                                                                                

11  the fund interest and earnings from fund investments.                       

                                                                                

12      (3) Money in the fund at the close of the fiscal year shall                 

                                                                                

13  remain in the fund and shall not lapse to the general fund.                 

                                                                                

14      (4) The authority shall expend money from the fund only for                 

                                                                                

15  the authorized purposes provided in this act.                               

                                                                                

16      Sec. 21.  The authority created under this act shall be                     

                                                                                

17  exempt from and shall not be required to pay taxes on property,             

                                                                                

18  both real and personal, belonging to the authority, which is used           

                                                                                

19  for a public or governmental purpose.  Property of the authority            

                                                                                

20  is public property devoted to an essential public or governmental           

                                                                                

21  function and purpose.  The authority's income and operation,                

                                                                                

22  including bonds or notes issued by the authority or the interest            

                                                                                

23  and income derived from the bonds or notes, are exempt from all             

                                                                                

24  taxes and special assessments of this state or a political                  

                                                                                

25  subdivision of this state.                                                  

                                                                                

26      Sec. 22.  This act shall be construed liberally to                          

                                                                                

27  effectuate the legislative intent and its purposes.  All powers             


                                                                                

1   granted shall be cumulative and not exclusive and shall be                  

                                                                                

2   broadly interpreted to effectuate the intent and purposes and not           

                                                                                

3   as a limitation of powers.                                                  

                                                                                

4       Sec. 23.  There is appropriated from the general fund for                   

                                                                                

5   initial implementation costs for this act the sum of                        

                                                                                

6   $100,000.00.