January 16, 2008, Introduced by Rep. Sak and referred to the Committee on Transportation.
A bill to provide for the establishment of regional
infrastructure authorities; to provide powers and duties of an
authority; to authorize an authority to impose and collect an
excise tax on certain recreational activities; to limit the rate of
the excise tax; to require voter approval of the excise tax; to
authorize the issuance of bonds and notes by an authority; and to
provide for the powers and duties of certain government officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"regional infrastructure authority act".
Sec. 3. As used in this act:
(a) "Admission charge" means the actual charge, excluding
memberships, paid to attend the recreational activity.
(b) "Articles" means the articles of incorporation of an
authority.
(c) "Authority" means a regional infrastructure authority
created under section 5.
(d) "Board" means the board of directors of an authority.
(e) "Clerk of the commerce center" means the city, township,
or village clerk of a city, township, or village that qualifies as
a commerce center.
(f) "Commerce center" means that term as defined in the
commerce center act.
(g) "Electors of the authority" means the qualified and
registered electors of the participating commerce centers who
reside within the territory of the authority.
(h) "Largest county" means, of those counties in which a
participating commerce center is located, the county having the
greatest population.
(i) "Recreational activity" means 1 or more of the following:
(i) Zoo.
(ii) Live theater.
(iii) Museum.
(iv) Opera.
(v) Professional sporting event.
(vi) Collegiate athletic event.
(vii) Concert.
(viii) Temporary or transient entertainment production.
(ix) Botanical gardens.
(x) Amusement parks.
(xi) Temporary or transient art, music, theatrical, dance,
literary, or cultural festival.
(j) "Territory of the authority" means the combined territory
of the participating commerce centers that is served by an
authority.
Sec. 5. (1) Two or more commerce centers may establish a
regional infrastructure authority. A regional infrastructure
authority is an authority under section 6 of article IX of the
state constitution of 1963.
(2) To initiate the establishment of an authority, articles of
incorporation shall be prepared. The articles of incorporation
shall include all of the following:
(a) The name of the authority.
(b) The names of the participating commerce centers.
(c) A description of the territory of the authority.
(d) The size of the board of the authority, which shall be
comprised of an odd number of members; the qualifications, method
of selection, and terms of office of board members; and the filling
of vacancies in the office of board member. If board members are
elected in at-large elections by the qualified and registered
electors of the participating commerce centers, voting
collectively, the election of board members shall be conducted
pursuant to the same procedures that govern an election for a tax
under sections 13 to 17.
(e) The purpose for which the authority is established is to
fund eligible infrastructure projects in participating commerce
centers. Eligible infrastructure projects include, but are not
limited to, any of the following:
(i) Mass transit.
(ii) Local roads.
(iii) Bridge repair or construction.
(f) The procedure and requirements for a commerce center to
become a participating commerce center in, and for a participating
commerce center to withdraw from, an existing authority or to join
in the original formation of an authority. For a commerce center to
become a participating commerce center in an existing authority or
to join in the original formation of an authority, a majority of
the electors of the commerce center proposed to be included in the
territory of the authority and voting on the question shall approve
a tax that the authority has been authorized to levy by a vote of
the electors of the authority under section 11. A commerce center
shall not withdraw from an authority during the period for which
the authority has been authorized to levy a tax by the electors of
the authority.
(g) Any other matters considered advisable.
(3) The articles shall be adopted and may be amended by an
affirmative vote of a majority of the members serving on the
legislative body of each participating commerce center. Unless the
articles provide otherwise, the requirements of this subsection do
not apply to an amendment to the articles to allow a commerce
center to become a participating commerce center in, or to allow a
participating commerce center to withdraw from, an existing
authority.
(4) Before the articles or amendments to the articles are
adopted, the articles or amendments to the articles shall be
published not less than once in a newspaper generally circulated
within the participating commerce centers. The adoption of articles
or amendments to the articles by a commerce center shall be
evidenced by an endorsement on the articles or amendments by the
clerk of the commerce center.
(5) Upon adoption of the articles or amendments to the
articles by each of the participating commerce centers, a printed
copy of the articles or the amended articles shall be filed with
the secretary of state by the clerk of the last participating
commerce center to adopt the articles or amendments.
(6) The authority's articles of incorporation, or amendments
to the articles, take effect upon filing with the secretary of
state.
Sec. 7. (1) A vacancy occurs on the board on the happening of
any of the events set forth in section 3 of 1846 RS 15, MCL 201.3.
Appointed members of the board, if any, may be removed by the
appointing authority for good cause after a public hearing.
Vacancies shall be filled in the same manner as the original
appointment for the unexpired term.
(2) A majority of the members of the board constitute a quorum
for the purpose of conducting business and exercising the powers of
an authority. Official action may be taken by an authority upon the
vote of a majority of the board members present, unless the
authority adopts bylaws requiring a larger number.
(3) A member of the board shall not receive compensation for
services as a member of the board but is entitled to reimbursement
for reasonable expenses, including expenses for travel previously
authorized by the board, incurred in the discharge of his or her
duties.
(4) The business that an authority may perform shall be
conducted at a public meeting of the authority held in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Public notice of the time, date, and place of the meeting shall be
given in the manner required by the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275.
(5) A writing prepared, owned, or used by an authority in the
performance of an official function shall be made available in
compliance with the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(6) At its first meeting, a board shall elect a chairperson, a
secretary, a treasurer, and any other officers it considers
necessary. A board shall meet at least quarterly.
(7) A board may adopt bylaws to govern its procedures.
Sec. 9. An authority may do 1 or more of the following:
(a) Acquire and hold, by purchase, lease with or without
option to purchase, grant, gift, devise, land contract, installment
purchase contract, bequest, or other legal means, real and personal
property inside or outside the territory of the authority. The
property may include franchises, easements, or rights of way on,
under, or above any property. The authority may pay for the
property from, or pledge for the payment of the property, revenue
of the authority.
(b) Apply for and accept grants or contributions from
individuals, the federal government or any of its agencies, this
state, a municipality, or other public or private agencies to be
used for any of the purposes of the authority.
(c) Hire full-time or part-time employees and retain
professional services.
(d) Provide for the maintenance of all of the real and
personal property of the authority.
(e) Assess and collect fees for services provided by and
expenses incurred by the authority.
(f) Receive revenue as appropriated by the legislature of this
state or a participating commerce center.
(g) Enter into contracts incidental to or necessary for the
accomplishment of the purposes of the authority.
Sec. 11. (1) An authority may levy a tax on the admission
charge of each recreational activity within the limits of the
authority for the purpose of funding eligible infrastructure
projects in participating commerce centers. The tax may be levied
for a period as determined by the authority in the resolution
calling the election and as set forth in the proposition submitted
to voters. The rate of the tax levied on the admission charge of a
recreational activity shall be as follows:
(a) If an authority consists of 2 commerce centers, not more
than a 4% tax may be levied.
(b) If an authority consists of 3 or 4 commerce centers, not
more than a 5% tax may be levied.
(c) If an authority consists of 5 or more commerce centers,
not more than a 6% tax may be levied.
(2) The authority may levy the tax only upon the approval of a
majority of the electors in each of the participating commerce
centers of the authority voting on the tax at a statewide general
or primary election. The proposal for a tax shall be submitted to a
vote of the electors of the authority by resolution of the board.
(3) A ballot proposal for a tax shall state the amount and
duration of the tax and the purposes for which the tax may be used.
A proposal for a tax shall not be placed on the ballot unless the
proposal is adopted by a resolution of the board and certified by
the board not later than 60 days before the election to the county
clerk of each county in which all or part of the territory of the
authority is located for inclusion on the ballot. The proposal
shall be certified for inclusion on the ballot at the next eligible
election, as specified by the board's resolution.
(4) If a majority of the electors in each of the participating
commerce centers of the authority voting on the question of a tax
approve the proposal as provided under this section, the tax levy
is authorized. Not more than 2 elections may be held in a calendar
year on a proposal for a tax authorized under this act.
Sec. 13. (1) The county election commission of each county in
which all or part of a participating commerce center is located
shall provide ballots for an election for a tax under section 11
for each participating commerce center located within the county.
(2) An election for a tax shall be conducted by the clerks and
election officials of the commerce centers located within the
territory of the authority.
(3) If a participating village that qualifies as a commerce
center is located within a nonparticipating township, the township
clerk and election officials shall conduct the election. Not later
than 45 days before the election, the village clerk shall provide
to the township clerk a list containing the name, address, and
birth date of each qualified and registered elector of the
participating village residing in the territory of the authority.
Not later than 15 days before the election, the village clerk shall
provide to the township clerk information updating the list as of
the close of registration. A person appearing on the list as
updated is eligible to vote in the election by special ballot.
Sec. 15. (1) For an election for a tax under section 11, the
notices of close of registration and election shall be published as
provided for by the state election laws. The notice of close of
registration shall include the ballot language of the proposal.
(2) The results of an election for a tax shall be canvassed by
the board of county canvassers of each county in which a
participating commerce center is located. The board of county
canvassers of a county in which a participating commerce center is
located and that is not the largest county shall certify the
results of the election to the board of county canvassers of the
largest county. The board of county canvassers of the largest
county shall make the final canvass of an election for a tax based
on the returns of the election inspectors of the participating
commerce centers in that county and the certified results of the
board of county canvassers of every other county in which a
participating commerce center is located. The board of county
canvassers of the largest county shall certify the results of the
election to the board of the authority.
Sec. 17. (1) A county clerk shall charge the authority and the
authority shall reimburse the county for the actual costs the
county incurs in an election for a tax under section 11.
(2) If a participating commerce center conducts an election
for a tax, the clerk of that participating commerce center shall
charge the authority and the authority shall reimburse the
participating commerce center for the actual costs the
participating commerce center incurs in conducting the election if
the election is not held in conjunction with a regularly scheduled
election in that commerce center.
(3) In addition to costs reimbursed under subsection (1) or
(2), a county or commerce center shall charge the authority and the
authority shall reimburse the county or commerce center for actual
costs that the county or commerce center incurs and that are
exclusively attributable to an election for a tax authorized under
this act.
(4) The actual costs that a county or commerce center incurs
shall be based on the number of hours of work done in conducting
the election, the rates of compensation of the workers, and the
cost of materials supplied in the election.
Sec. 19. The tax shall be collected with county taxes and
distributed by the local tax collecting unit under the provisions
of the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
Sec. 21. (1) An authority may borrow money and issue bonds or
notes to finance eligible infrastructure projects.
(2) An authority shall not borrow money or issue bonds or
notes for a sum that, together with the total outstanding bonded
indebtedness of the authority, exceeds 2 mills of the taxable value
of the taxable property within the district as determined under
section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(3) Bonds or notes issued by an authority are a debt of the
authority and not of the participating commerce centers.
(4) A tax levied to pay a bond or note obligation by a
regional infrastructure authority under this act shall not exceed 5
years without the approval of a majority of the electors in each of
the participating commerce centers of the authority.
(5) All bonds or notes issued by a regional infrastructure
authority under this act are subject to the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 23. (1) An authority may issue general obligation
unlimited tax bonds upon approval of a majority of the electors in
each of the participating commerce centers of the authority voting
on the question of issuing the bonds. The proposal to issue general
obligation unlimited tax bonds shall be submitted to a vote of the
electors of the authority by resolution of the board.
(2) The language of the ballot proposal shall be in
substantially the following form:
"Shall [name of authority], formed by [names of participating
commerce centers], borrow the sum of not to exceed __________
dollars ($ __________) and issue its general obligation unlimited
tax bonds for all or a portion of that amount for the purpose of
__________?
This is expected to result in an increase of _______ in the
tax levied on property valued at _______ for a period of _______
years.
Yes [ ] No [ ]".
(3) The election shall be conducted in the manner provided in
sections 11 to 17 for an election for a tax. Not more than 2
elections on the question of issuing general obligation unlimited
tax bonds may be held in a calendar year.
(4) If an authority issues general obligation unlimited tax
bonds under this section, the board, by resolution, shall authorize
and levy the taxes necessary to pay the principal of and interest
on the bonds.
Sec. 25. (1) An authority may borrow money and issue its
negotiable bonds and notes for the purpose of refunding outstanding
debt obligations of the district by resolution of the board,
without submitting the question to the electors of the authority.
(2) Refunding bonds or the refunding part of a bond issue
shall be considered to be within the 2-mill limitation of section
21(2).
(3) An authority may borrow money and issue bonds or notes for
refunding all or part of existing bonded or note indebtedness only
if the net present value of the principal and interest to be paid
on the refunding bonds or notes, excluding the cost of issuance,
will be less than the net present value of the principal and
interest to be paid on the bonds or notes being refunded, as
calculated using a method approved by the department of treasury.
Sec. 27. (1) A board shall obtain an annual audit of the
authority, and report on the audit and auditing procedures, in the
manner provided by sections 6 to 13 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit shall
also be in accordance with generally accepted government auditing
standards as promulgated by the United States general accounting
office and shall satisfy federal regulations relating to federal
grant compliance audit requirements.
(2) An authority shall prepare budgets and appropriations acts
in the manner provided by sections 14 to 19 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.434 to 141.439.
(3) The state treasurer, the attorney general, a prosecuting
attorney, bank, certified public accountant, certified public
accounting firm, or other person shall have the same powers,
duties, and immunities with respect to the authority as provided
for local units in sections 6 to 20 of the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.426 to 141.440.
(4) If an authority ends a fiscal year in a deficit condition,
the authority shall file a financial plan to correct the deficit
condition in the same manner as provided in section 21(2) of the
Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL
141.921.
(5) The board may authorize funds of the authority to be
invested or deposited in any investment or depository authorized
under section 1 of 1943 PA 20, MCL 129.91.