HB-4998, As Passed Senate, June 23, 2009

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4998

A bill to amend 2008 PA 554, entitled

"Regional convention facility authority act,"

by amending sections 5, 7, 11, and 19 (MCL 141.1355, 141.1357,

141.1361, and 141.1369).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5. As used in this act:

(a) "Authority" means a regional convention facility authority

created under section 7.

(b) "Board" means the board of directors of an authority.

combination of, a convention hall, auditorium, arena, meeting

rooms, exhibition area, and related adjacent public areas that are

generally available to the public for lease on a short-term basis

for holding conventions, meetings, exhibits, and similar events,

together with real or personal property, and easements above, on,

or under the surface of real or personal property, used or intended

to be used for holding conventions, meetings, exhibits, and similar

events, together with appurtenant property, including covered

walkways, parking lots, or structures, necessary and convenient for

use in connection with the convention facility. Convention facility

includes an adjacent arena with a seating capacity not exceeding

10,000. Convention facility does not include an adjacent arena with

a seating capacity exceeding 10,000.

(d) "Develop" means to plan, acquire, construct, improve,

enlarge, maintain, renew, renovate, repair, replace, lease, equip,

furnish, market, promote, manage, or operate.

(e) "Fiscal year" means an annual period that begins on July 1

and ends on June 30 or the fiscal year for an authority established

by the board of the authority.

(f) "Legislative body" means the elected body of a local

government possessing the legislative power of the local

government.

(g) "Local chief executive officer" means the mayor or city

manager of a city or the county executive of a county or, if a

county does not have a county executive, the chairperson of the

county board of commissioners.

(h) "Local government" means a county or city. For purposes of

sections 17(1)(t) and 19 other than section 19(1)(f), local

government includes a building authority or downtown development

authority created by a county or city under 1975 PA 197, MCL

125.1651 to 125.1681.

(i) "Qualified city" means a city with a population of more

than 700,000 according to the most recent decennial census that

contains a qualified convention facility.

(j) "Qualified county" means a county that contains a

qualified city.

(k) "Qualified convention facility" means a publicly owned

convention facility with not less than 600,000 square feet of

usable exhibition area and that is located in a qualified city.

(l) "Qualified metropolitan area" means a geographic area of

this state that includes a qualified city, a qualified county, and

the 2 counties bordering the qualified county with the largest

populations according to the most recent decennial census.

(m) "Transfer date" means the earlier of the following:

(i) The date 90 days after the creation of an authority under

section 7 on which the right, title, interest, ownership, and

control of a qualified convention facility are conveyed and

transferred from a qualified city to an authority, only if the

transfer is not disapproved as provided under section 19(1).

(ii) The effective date of a lease agreement providing for the

lease of a qualified convention facility to an authority created

under section 7 as provided under section 19(1).

Sec. 7. (1) For an area of this state that is a qualified

metropolitan area on the effective date of this act, an authority

is created for the qualified metropolitan area on the effective

date of this act. For an area of this state that becomes a

qualified metropolitan area after the effective date of this act,

an authority is created for the qualified metropolitan area on the

date the area became a qualified metropolitan area. An authority

created under this section shall be a municipal public body

corporate and politic and a metropolitan authority authorized by

section 27 of article VII of the state constitution of 1963 and

shall possess the powers, duties, and jurisdictions vested in the

authority under this act and other laws. The authority shall not be

an authority or agency of this state. The name of an authority

created under this section shall include the name of the qualified

city located within the qualified metropolitan area and the phrase

"regional convention facility authority".

(2) Before the transfer date, an authority may organize and

exercise all powers, duties, and jurisdictions granted under this

act, except the powers, duties, and jurisdictions related to the

management , and operation ~~, and development~~ of a qualified

convention facility. On the transfer date, an authority is vested

with the additional powers, duties, and jurisdictions under this

act related to the management, operation, and development of a

qualified convention facility.

(3) It is the intent of the legislature that the transfer or

lease of a qualified convention facility from a qualified city to

an authority under this act and any payment required under section

19(9) represents at least a fair exchange of value for value for

the qualified city considering, without limitation, all of the

following:

(a) The net value of the qualified convention facility prior

to the transfer date after deducting deferred maintenance

obligations, operational deficits, repair or expansion needs, and

other liabilities related to the qualified convention facility that

are obligations of the qualified city.

(b) The benefits to the qualified city resulting from the

transfer or lease of the qualified convention facility to the

authority, including, but not limited to, assumption or payment of

debt obligations of the qualified city by the authority, reductions

in costs, liabilities or other obligations of the qualified city,

additional revenues or other money not otherwise available for the

qualified convention facility, and the positive economic impact to

the qualified city likely to be generated by the operation of the

qualified convention facility by the authority or any expansion or

improvement of the qualified convention facility by the authority,

especially economic impact resulting in the creation or retention

of jobs and capital investment.

payable directly or indirectly to the qualified city after the

transfer date under this act, the state convention facility

development act, 1985 PA 106, MCL 207.621 to 207.640, or the health

and safety fund act, 1987 PA 264, MCL 141.471 to 141.479.

(4) The property of an authority created under this act is

public property devoted to an essential public and governmental

purpose. Income of the authority is for a public and governmental

purpose.

(5) Except as otherwise provided in this subsection, the

property of the authority created under this act and its income,

activities, and operations are exempt from all taxes and special

assessments of this state or a political subdivision of this state.

Property of an authority and its income, activities, and operations

that are leased to private persons are not exempt from any tax or

special assessment of this state or a political subdivision of this

state. Property of an authority is exempt from any ad valorem

property taxes levied under the general property tax act, 1893 PA

206, MCL 211.1 to 211.155, or other law of this state authorizing

the taxation of real or personal property. An authority is an

entity of government for purposes of section 4a(1)(a) of the

general sales tax act, 1933 PA 167, MCL 205.54a, and section 4h of

the use tax act, 1937 PA 94, MCL 205.94h.

(6) The validity of the creation of an authority shall be

conclusively presumed unless questioned in an original action filed

in the court of appeals within 60 days after the creation of the

authority under this section. The court of appeals has original

jurisdiction to hear an action under this subsection. The court

shall hear the action in an expedited manner.

(7) Except as otherwise provided in subsection (8), the

validity of the transfer or lease of a qualified convention

facility to an authority under this act shall be conclusively

presumed unless questioned in an original action filed in the court

of appeals within 30 days after the effective date of the

amendatory act that added this subsection, or for a metropolitan

area that becomes a qualified metropolitan area after the effective

date of the amendatory act that added this subsection, 75 days

after the date on which the metropolitan area becomes a qualified

metropolitan area. The court of appeals has original jurisdiction

to hear an action under this subsection. The court shall hear the

action in an expedited manner.

(8) The attorney general of this state has authority to

enforce the lease agreement between the authority and the qualified

city and also has the authority to enforce the provisions of this

act.

Sec. 11. (1) Within not more than 30 days following

appointment of the members of a board, the board shall hold its

first meeting at a date and time determined by the individual

appointed under section 9(1)(a). The board members shall elect from

among the board members an individual to serve as chairperson of

the board and may elect other officers as the board considers

necessary. All officers shall be elected annually by the board. All

actions of the board under this act shall require the unanimous

consent of all serving members of the board, excluding any members

prohibited from voting on an action due to a conflict of interest

under section 15.

(2) The business of the board shall be conducted at a public

meeting of the board 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. A board

shall adopt bylaws consistent with the open meetings act, 1976 PA

267, MCL 15.261 to 15.275, governing its procedures and the holding

of meetings. After organization, a board shall adopt a schedule of

regular meetings and adopt a regular meeting date, place, and time.

A special meeting of the board may be called by the chairperson of

the board or as provided in bylaws adopted by the board. Notice of

a special meeting shall be given in the manner required by the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(3) A board shall keep a written or printed record of each

meeting, which record and any other document or record prepared,

owned, used, in the possession of, or retained by the authority in

the performance of an official function shall be made available to

the public in compliance with the freedom of information act, 1976

PA 442, MCL 15.231 to 15.246.

(4) A board shall provide for a system of accounts for the

authority to conform to a uniform system required by law and for

the auditing of the accounts of an authority. The board shall

obtain an annual audit of the authority by an independent certified

public accountant 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

also shall be in accordance with generally accepted government

auditing standards and shall satisfy federal regulations relating

to federal grant compliance audit requirements.

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

cause to be prepared a budget for the authority containing an

itemized statement of the estimated current operational expenses

and the expenses for capital outlay including funds for the

operation and development of convention facilities under the

jurisdiction of the board, including the amount necessary to pay

the principal and interest of any outstanding bonds or other

obligations of the authority maturing during the next fiscal year

or that have previously matured and are unpaid, and an estimate of

the estimated revenue of the authority from all sources for the

next fiscal year. The board shall adopt a budget as for the fiscal

year in accordance with the uniform budget and accounting act, 1968

PA 2, MCL 141.421 to 141.440a.

(6) A board shall provide for the purchase of, the contracting

for, and the providing of supplies, materials, services, insurance,

utilities, third-party financing, equipment, printing, and all

other items as needed by the authority to efficiently and

effectively meet the needs of the authority using competitive

procurement methods to secure the best value for the authority. The

board shall make all discretionary decisions concerning the

solicitation, award, amendment, cancellation, and appeal of

authority contracts. A board shall provide for the acquisition of

professional services, including, but not limited to, architectural

services, engineering services, surveying services, accounting

services, services related to the issuance of bonds, and legal

services, in accordance with a competitive, qualifications-based

selection process and procedure for the type of professional

service required by the authority. An authority is not required to

use competitive bidding when acquiring proprietary services,

equipment, or information available from a single source, such as a

software license agreement. An authority may enter into a

cooperative purchasing agreement with the federal government, this

state, or other public entities for the purchase of goods or

services necessary for the authority. An authority may enter into

lease purchases or installment purchases for periods not exceeding

the anticipated useful life of the items purchased unless otherwise

prohibited by law. In all purchases made by the authority, all

other things being equal, preference shall be given first to

products manufactured or services offered by firms based in the

authority's qualified metropolitan area, including, but not limited

to, each qualified city and qualified county in the qualified

metropolitan area, and next to firms based in this state, if

consistent with state and federal law. The authority shall actively

solicit lists of potential bidders for authority contracts from

each qualified city and each county in the qualified metropolitan

area. Except as otherwise provided in this section, the authority

shall utilize competitive solicitation for all purchases authorized

under this act unless 1 or more of the following apply:

(a) Procurement of goods or services is necessary for the

imminent protection of public health or safety or to mitigate an

imminent threat to public health or safety, as determined by the

authority or its chief executive officer.

(b) Procurement of goods or services is for emergency repair

or construction caused by unforeseen circumstances when the repair

or construction is necessary to protect life or property.

declared state of emergency or state of disaster under the

emergency management act, 1976 PA 390, MCL 30.401 to 30.421.

(d) Procurement of goods or services is in response to a

declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.

(e) Procurement of goods or services is in response to a

declared state of energy emergency under 1982 PA 191, MCL 10.81 to

10.89.

(f) Procurement of goods or services is under a cooperative

purchasing agreement with the federal government, this state, or

more public entities for the purchase of goods and services

necessary at fair and reasonable prices using a competitive

procurement method for authority operations.

(g) The value of the procurement is less than $5,000.00, and

the board has established policies or procedures to ensure that

goods or services with a value of less than $5,000.00 are purchased

by the board at fair and reasonable prices. Procurement of goods or

services with a value of less than $5,000.00 may be negotiated with

or without using competitive bidding as authorized in a procurement

policy adopted by the board.

(7) A board may not enter into any cost plus construction

contract unless all of the following apply:

(a) The contract cost is less than $50,000.00.

(b) The contract is for emergency repair or construction

caused by unforeseen circumstances.

property.

(d) The contract complies with requirements of applicable

state or federal law.

(8) The board shall adopt a procurement policy consistent with

the requirements of this act and federal and state laws relating to

procurement. The board shall adopt a policy to govern the control,

supervision, management, and oversight of each contract to which

the authority is a party. The board shall adopt procedures to

monitor the performance of each contract including, but not limited

to, a contract that exists on transfer date, to assure execution of

the contract within the budget and time periods provided under the

contract. The monitoring shall include oversight as to whether the

contract is being performed in compliance with the terms of the

contract, this act, and federal and state law procurement law. The

chief executive officer or other authorized employee of an

authority shall not sign or execute a contract until the contract

is approved by the board. A board for an authority shall establish

policies to ensure that the authority does not enter into a

procurement or employment contract with a person who has been

convicted of a criminal offense incident to the application for or

performance of a contract or subcontract with a governmental entity

in this state. A board for an authority shall establish policies to

ensure that the authority does not enter into a procurement or

employment contract with a person who has been convicted of a

criminal offense, or held liable in a civil proceeding, that

negatively reflects on the person's business integrity, based on a

finding of embezzlement, theft, forgery, bribery, falsification or

destruction of records, receiving stolen property, or violation of

state or federal antitrust statutes, or similar laws. The authority

shall prepare an annual report to the board, the qualified city,

and each county within the qualified metropolitan area detailing

all contracts entered into by the authority during the immediately

preceding fiscal year. As used in this subsection, if a person is a

business entity, person includes affiliates, subsidiaries,

officers, directors, managerial employees, and any person who,

directly or indirectly, holds a pecuniary interest in that business

entity of 20% or more.

(9) A board may employ personnel as the board considers

necessary to assist the board in performing the power, duties, and

jurisdictions of the authority, including, but not limited to,

employment of a chief executive officer as authorized under section

13.

(10) A board shall establish policies to assure that the board

and the authority shall not do either of the following:

(a) Fail or refuse to hire, recruit, or promote; demote;

discharge; or otherwise discriminate against a person with respect

to employment, compensation, or a term, condition, or privilege of

employment, or a contract with the authority because of religion,

race, color, national origin, age, sex, sexual orientation, height,

weight, marital status, partisan considerations, or a disability or

genetic information that is unrelated to the person's ability to

perform the duties of a particular job, position, or contract.

(b) Limit, segregate, or classify an employee, a contractor,

or applicant for employment or a contract in a way that deprives or

tends to deprive the employee, contractor, or applicant of an

employment opportunity or otherwise adversely affects the status of

an employee, contractor, or applicant because of religion, race,

color, national origin, age, sex, sexual orientation, height,

weight, marital status, partisan considerations, or a disability or

genetic information that is unrelated to the person's ability to

perform the duties of a particular job or position.

(11) Not less than 60 days after the transfer date, an

authority shall establish a citizens advisory council to provide

public input and advise the board on the impact of redevelopment

and management of a qualified convention facility upon the

qualified city and each county within the qualified metropolitan

area. The advisory council shall consist of 8 members, including 1

resident of the qualified city appointed by the local chief

executive officer of the qualified city, 1 resident of the

qualified city appointed by the legislative body of the qualified

city, 1 county resident appointed as a council member by each local

chief executive officer for each county within the qualified

metropolitan area, and 1 county resident appointed as a council

member by the legislative body for each county within the qualified

metropolitan area. An elected state or local official is not

eligible to serve as a member of the citizens advisory council.

Members of the advisory council shall be appointed for terms of 4

years. A vacancy on the advisory council arising other than by

expiration of a term shall be filled for the remainder of a term in

the same manner as the original appointment. The business of the

advisory council shall be conducted at a public meeting 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. The advisory council shall adopt

bylaws consistent with the open meetings act, 1976 PA 267, MCL

15.261 to 15.275, governing its procedures and the holding of

meetings. After organization, the advisory council shall adopt a

schedule of regular meetings and adopt a regular meeting date,

place, and time. The advisory council shall keep a written or

printed record of each meeting, which record and any other document

or record prepared, owned, used, in the possession of, or retained

by the advisory council in the performance of an official function

shall be made available to the public in compliance with the

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

advisory council shall organize and make its own policies and

procedures and shall adopt bylaws not inconsistent with this act

governing its operations. The advisory council may request and

shall receive from the authority information and technical

assistance relating to the development and management of the

qualified convention facility. Failure of the advisory council to

organize, meet, or perform statutory functions shall not prevent

the board or the authority from performing authorized activities. A

member of the citizens advisory council shall not be compensated

for being a member nor shall a member be reimbursed for any

expenses incurred as a member of the citizens advisory council.

Sec. 19. (1) Within 45 days of ~~the effective date of this act~~

January 20, 2009 or the date on which a metropolitan area becomes a

qualified metropolitan area and prior to a transfer date, the

legislative body of the qualified city in which a qualified

convention facility is located may disapprove the transfer of the

qualified convention facility to the authority by adopting a

resolution disapproving the transfer. If the transfer is not

disapproved, the qualified convention facility is transferred to

the authority on the ninetieth day after ~~the effective date of this~~

~~act~~ January 20, 2009 or the date on which a convention facility

becomes a qualified convention facility. If the transfer is

disapproved, not later than August 1, 2009 or 75 days after a later

date on which a metropolitan area becomes a qualified metropolitan

area, the qualified city in which a qualified convention facility

is located may disapprove leasing the qualified convention facility

to the authority by adopting a resolution disapproving a lease of

the qualified convention facility to the authority. The resolution

shall be adopted and effective as provided by law, including any

charter of the qualified city. If a resolution disapproving the

lease is adopted and effective, an authority created for the

qualified metropolitan area in which the qualified convention

facility is located is dissolved. If the lease is not disapproved

within the period provided, the local chief executive officer of

the qualified city and the authority shall enter into a lease

agreement consistent with the requirements of this act providing

for the lease of the qualified convention facility to the authority

for a period of not less than 30 years. The lease shall require the

authority to renovate, rehabilitate, and expand the qualified

convention facility. The lease shall be effective September 1, 2009

or 105 days after a later date on which a metropolitan area becomes

a qualified metropolitan area. All of the following shall occur on

a transfer date:

(a) All right, title, and interest of a local government in

and to a qualified convention facility located in a qualified

metropolitan area shall by operation of this act be conveyed and

transferred from the local government to the authority for the

qualified metropolitan area, and the authority shall receive,

succeed to, and assume the exclusive right, responsibility, and

authority to own, occupy, operate, control, develop, and use the

qualified convention facility from and after the transfer date,

including, but not limited to, all real property, buildings,

improvements, structures, easements, rights of access, and all

other privileges and appurtenances pertaining to the qualified

convention facility, subject only to those restrictions imposed by

this act. If a qualified convention facility is leased to an

authority under this subsection, this subdivision shall apply while

the lease agreement is effective.

(b) All right, title, and interest in and to the fixtures,

equipment, materials, furnishings, and other personal property of a

local government owned or controlled by the local government and

used for purposes of the qualified convention facility by the local

government shall by operation of this act be conveyed and

transferred from the local government to the authority for the

qualified metropolitan area, and the authority shall receive,

succeed to, and assume the exclusive right, responsibility, and

authority to possess and control the property from and after the

transfer date. If a qualified convention facility is leased to an

authority under this subsection, this subdivision shall apply while

the lease agreement is effective.

government related to the ownership, occupancy, operation, control,

development, or use of a qualified convention facility by the local

government shall by operation of this act be conveyed and

transferred from the local government to the authority for the

qualified metropolitan area and be assumed by the authority. If a

qualified convention facility is leased to an authority under this

subsection, this subdivision shall apply while the lease agreement

is effective.

(d) All grant agreements, grant preapplications, grant

applications, rights to receive the balance of any funds payable

under the agreements or applications, the right to receive any

amounts payable from and after the transfer date, and the benefits

of contracts or agreements of a local government related to the

ownership, occupancy, operation, control, development, or use of a

qualified convention facility by the local government shall by

operation of this act be conveyed and transferred from the local

government to the authority for the qualified metropolitan area and

be assumed by the authority. If a qualified convention facility is

leased to an authority under this subsection, this subdivision

shall apply while the lease agreement is effective.

(e) All of the duties, liabilities, responsibilities, and

obligations of a local government related to the ownership,

occupancy, operation, control, development, or use of a qualified

convention facility by the local government shall by operation of

this act be conveyed and transferred from the local government to

the authority for the qualified metropolitan area and assumed by

the authority, except for any liabilities, responsibilities, or

obligations that are contested in good faith by ~~, or, as of the~~

~~transfer date, unknown to,~~ the authority. ~~or as otherwise provided~~

~~in this act.~~ If a qualified convention facility is leased to an

authority under this subsection, this subdivision shall apply while

the lease agreement is effective.

(f) An authority for a qualified metropolitan area shall

assume all of the outstanding securities of the local government

that are special limited obligations payable from and secured by a

lien on distributions received under the state convention facility

development act, 1985 PA 106, MCL 207.621 to 207.640, and were

originally issued to finance the acquisition or construction of,

development of, or improvements to the qualified convention

facility conveyed and transferred to the authority for the

qualified metropolitan area under this section, and the authority

may refund or defease the securities. If the authority refunds the

outstanding securities assumed under this subsection, that

refunding shall be considered, as a matter of law, to be necessary

to eliminate requirements of covenants applicable to the existing

outstanding securities.

(2) An authority shall assume, accept, or become liable for

lawful agreements, obligations, promises, covenants, commitments,

and other requirements of a local government relating to operating

a qualified convention facility conveyed and transferred under this

section, except as provided in subsection (4). An authority shall

perform all of the duties and obligations and shall be entitled to

all of the rights of a local government and under any agreements

expressly assumed and accepted by the authority related to the

transfer of a qualified convention facility from the local

government to the authority under this section. If a qualified

convention facility is leased to an authority under subsection (1),

this subsection shall apply while the lease agreement is effective.

(3) The local chief executive officer of a local government

from which the rights, responsibility, and authority to own,

occupy, operate, control, develop, and use a qualified convention

facility are conveyed and transferred or leased from the local

government to an authority for a qualified metropolitan area under

this section shall execute the instruments of conveyance,

assignment, and transfer or lease or other documents as may, in the

authority's and the officer's reasonable judgment, as be necessary

or appropriate to recognize, facilitate, or accomplish the transfer

or lease of the qualified convention facility from the local

government to the authority under this section.

(4) An authority for a qualified metropolitan area shall not

assume any unfunded obligations of a local government transferring

or leasing a qualified convention facility under this section to

provide pensions or retiree health insurance. Upon request by the

authority, the local government shall provide the authority with a

statement of the amount of the unfunded obligations, determined by

a professional actuary acceptable to the authority.

(5) All lawful actions, commitments, and proceedings of a

local government made, given, or undertaken before the transfer

date and assumed by an authority under this section are ratified,

confirmed, and validated upon assumption. All actions, commitments,

or proceedings of the local government relating to a qualified

convention facility in the process of being undertaken by, but not

yet a commitment or obligation of, the local government regarding

the qualified convention facility may, from and after the date of

assumption by the authority under this section, be undertaken and

completed by the authority in the manner and at the times provided

in this act or other applicable law and in any lawful agreements

made by the local government before the date of assumption by the

authority under this section.

(6) The exclusive right and authorization to own, occupy,

operate, control, develop, and use a qualified convention facility

transferred or leased under this section shall include, but not be

limited to:

(a) Ownership and operational jurisdiction over all real

property of the qualified convention facility, subject to any liens

of record and legal restrictions and limitations on the use of the

property.

(b) The local government's right, title, and interest in, and

all of the local government's responsibilities arising under,

operating leases and concessions relating to a qualified convention

facility.

(7) The transfers described under this section shall include,

but need not be limited to, all of the following:

(a) All contracts with licensees, franchisees, tenants,

concessionaires, and leaseholders.

(b) All operating financial obligations secured by revenues

and fees generated from the operations of the qualified convention

facility.

from operations of the qualified convention facility, all funds

held under an ordinance, resolution, or indenture related to or

securing obligations of the local government assumed by the

authority, and all of the accounts receivable or choses in action

arising from operations of the qualified convention facility. Fund

transfers under this subdivision are limited to funds received

after the transfer date and funds necessary to pay obligations

related to the operation of the qualified convention facility

accrued before the transfer date and not paid by the local

government.

(d) All office equipment, including, but not limited to,

computers, records and files, software, and software licenses

required for financial management, personnel management, accounting

and inventory systems, and general administration.

(8) The transfer or lease of the real and personal property

and operational jurisdiction over a qualified convention facility

to an authority may not in any way impair any contracts with

licensees, franchisees, vendors, tenants, bondholders, or other

parties in privity with the local government that owned a qualified

convention facility transferred or leased to an authority under

this section, if the contracts were not entered into or modified in

violation of this act.

(9) From and after the transfer date, a local government from

which a qualified convention facility has been transferred or

leased shall be relieved from all further costs, responsibility,

and liability arising from, or associated with, control, operation,

development, and maintenance of the qualified convention facility.

The local government shall continue to be responsible for all costs

associated with local municipal services, including ~~, but not~~

~~limited to,~~ police, fire, and emergency medical services, without

any additional compensation from the authority. ~~The~~ An authority

created prior to the effective date of the amendatory act that

added subsection (14) shall provide for the payment of compensation

not exceeding $20,000,000.00 to the qualified city as compensation

for any revenue otherwise payable to the qualified city from

parking facilities operated by the qualified city at the qualified

convention facility and for other costs incurred by the qualified

city associated with the transfer or lease of the qualified

convention facility to the authority under this section. If the

transfer or lease of parking facilities to the authority would

impair covenants of bonds issued by the local government that owns

the qualified convention facility to finance the parking

facilities, the authority and the local government may enter into

an agreement providing for the local government to retain title to

and control of the parking facilities and revenue generated by the

parking facilities until the compensation is paid by the authority

to the local government to avoid a default of bond covenants by the

local government. If a qualified convention facility is leased to

an authority under subsection (1), this subsection shall apply

while the lease agreement is effective.

(10) A local government that owns a qualified convention

facility subject to transfer or lease under this section or that

owned a qualified convention facility transferred to an authority

under this section shall comply with all of the following, before

and after the transfer date:

(a) Refrain from any action to sell, transfer, or otherwise

dispose of a qualified convention facility other than to the

authority or incur new or expanded obligations related to qualified

convention facility, without the consent of the authority.

(b) Refrain from any approval of or material modification to

any collective bargaining agreement applicable to local government

employees employed at or assigned to the qualified convention

facility or to terms of employment for employees at or assigned to

the qualified convention facility. Any approval or modification

subject to this subsection shall be null and void.

~~judgment,~~ would impair the authority's exercise of the powers

granted to the authority under this act or that would impair the

efficient operation and management of the qualified convention

facility by the authority.

(d) Take all actions reasonably necessary to cure any defects

in title to the qualified convention facility and related property

transferred or leased under this section, including, but not

limited to, providing documents, records, and proceedings in

respect of title.

(e) At the request of an authority, grant any license,

easement, or right-of-way in connection with the qualified

convention facility to the extent the authority has not been

empowered to take these actions.

(f) Upon creation , of an authority for the qualified

metropolitan area in which the local government is located and

before the transfer date, ~~may~~ the local government shall conduct

operations, maintenance, and repair of the convention facility in

the ordinary and usual course of business.

(11) Any contract, agreement, lease, sale, disposition,

transfer, or other conveyance, easement, license, right,

obligation, debt, or liability assumed, approved, entered into,

amended, or modified in violation of this section shall be voidable

as a matter of law to the extent that the authority would otherwise

assume, become party to or transferee of, or otherwise be obligated

under the contract, agreement, lease, sale, disposition, transfer,

conveyance, easement, license, right, obligation, debt, or

liability.

(12) Unless otherwise provided in this act, the local chief

executive officer of a local government that owns a qualified

convention facility subject to transfer or lease under this section

is authorized and shall take all reasonable steps to cancel or

terminate any agreement to which the local government is a party

that relates to the qualified convention facility and meets all the

following criteria:

(a) The agreement relates to the qualified convention facility

and the authority has not expressly assumed or accepted the

agreement under subsection (2).

(b) The agreement provides for cancellation or termination.

authority would become a party to the agreement by succession,

assignment, operation of law, or any other involuntary means.

(13) If real property transferred from a qualified city to an

authority under this section is no longer used by the authority for

the purpose of maintaining or operating a convention facility as

determined by a vote of the board or a lease agreement providing

for the lease of the qualified convention facility is no longer

effective, all right, title, and interest of the authority in the

real property shall revert from the authority to the qualified city

~~with the consent of the qualified city~~ and upon payment by the

qualified city to the authority of an amount equal to the

compensation paid to the qualified city under ~~section 19(9)~~

subsection (9).

(14) After the creation of an authority for a qualified

metropolitan area and before the transfer date, the local chief

executive officer of the qualified city that owns or operates a

qualified convention facility and the authority may enter into an

agreement authorizing the qualified city to make electrical system

improvements to the qualified convention facility, with costs of

the management, design, and construction of electrical system

improvements incurred by the qualified city to be reimbursed by the

authority with the proceeds of bonds issued by the authority as

provided in the agreement. Any reimbursement for electrical system

improvements agreed to by the local chief executive officer and the

authority under this subsection shall be in addition to any

compensation paid to the qualified city under subsection (9).

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 95th Legislature are

enacted into law:

(a) Senate Bill No. 586.

(b) Senate Bill No. 587.