SENATE BILL NO. 893
May 30, 2024, Introduced by Senators GEISS, SHINK and WOJNO and referred to the Committee
on Transportation and Infrastructure.
A bill to amend 1978 PA 639, entitled
"Hertel-Law-T. Stopczynski port authority act,"
by amending the title and sections 2, 8, 9, 10, 13, 14, 14a, 16,
18, 20, 23, 24, and 25 (MCL 120.102, 120.108, 120.109, 120.110,
120.113, 120.114, 120.114a, 120.116, 120.118, 120.120, 120.123,
120.124, and 120.125), the title as amended and section 14a as
added by 1998 PA 188, sections 14 and 18 as amended by 2002 PA 412,
and section 23 as amended by 1984 PA 256, and by adding section
19a.
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THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to authorize the establishing of port authorities in
3 cities and counties; to prescribe the powers and duties of port
4 authorities, cities, and counties; to authorize the incurrence of
5 contract obligations and the issuance and payment of bonds or other
6 evidences of indebtedness; to provide for a pledge by a city or
7 county of its full faith and credit for the payment of contract
8 obligations entered into under this act and the levy of taxes
9 without limitation as to rate or amount to the extent necessary; to
10 validate obligations issued; to provide for the adoption of a port
11 facilities plan; to provide for the financing of the operating
12 budget of port authorities; to allow port authorities to enter
13 into, amend, or terminate ancillary financing facilities; to
14 prescribe penalties and provide remedies; and to repeal acts and
15 parts of acts.
16 Sec. 2. As used in this act:
17 (a) "Ancillary financing facility" means any of the following:
18 (i) A revolving credit agreement, an agreement establishing a
19 line of credit, or a letter of credit.
20 (ii) A reimbursement agreement.
21 (iii) A standby bond purchase agreement.
22 (iv) An interest rate exchange or similar agreement.
23 (v) A currency exchange agreement.
24 (vi) A commodity exchange agreement.
25 (vii) An interest rate floor or cap.
26 (viii) An option, put, call, or similar agreement to hedge
27 payment, currency, commodity, rate, spread, or similar exposure.
28 (ix) An investment agreement.
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1 (x) A float agreement.
2 (xi) A forward agreement or other investment arrangement.
3 (xii) An insurance contract.
4 (xiii) A surety bond.
5 (xiv) A commitment to purchase or sell securities.
6 (xv) A purchase or sale agreement or commitment.
7 (xvi) Any other contract or agreement or other security
8 agreement approved by an authority under this act, including, but
9 not limited to, any arrangement referred to in this act.
10 (b) (a) "Authority" means a port authority created under this
11 act and may also include the area within the jurisdiction of an
12 authority.
13 (c) (b) "Constituent unit" means a city or county requesting
14 the incorporation of an authority.
15 (d) "Facilities" means port facilities and related facilities.
16 (e) (c) "Governing body of the city" means the city council or
17 city commission of a city requesting incorporation of an authority.
18 created under this act.
19 (f) (d) "Governing body of the county" means the county board
20 of commissioners of a county participating in an authority. created
21 under this act.
22 (g) (e) "Port facilities" means those facilities owned by the
23 port authority such as: seawall includes, but is not limited to,
24 all of the following:
25 (i) Seawall jetties. ; piers; wharves; docks; boat
26 (ii) Piers.
27 (iii) Wharves.
28 (iv) Docks.
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1 (v) Boat landings. ; marinas; warehouses; storehouses;
2 elevators; grain
3 (vi) Marinas.
4 (vii) Warehouses.
5 (viii) Storehouses.
6 (ix) Elevators.
7 (x) Grain bins. ; cold
8 (xi) Cold storage plants. ; terminal
9 (xii) Terminal icing plants. ; bunkers; oil
10 (xiii) Bunkers.
11 (xiv) Oil tanks. ; ferries; canals; locks; bridges; tunnels;
12 seaways; conveyors; modern
13 (xv) Ferries.
14 (xvi) Canals.
15 (xvii) Locks.
16 (xviii) Bridges.
17 (xix) Tunnels.
18 (xx) Seaways.
19 (xxi) Conveyors.
20 (xxii) Modern appliances for the economical handling, storage,
21 and transportation of freight and handling of passenger traffic. ;
22 transfer
23 (xxiii) Transfer and terminal facilities required for the
24 efficient operation and development of ports and harbors. ; other
25 (xxiv) Other harbor improvements. ; or improvements,
26 (xxv) Improvements, enlargements, remodeling, or extensions of
27 any of these the buildings or structures described in subparagraphs
28 (i) to (xxiv).
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1 (h) (f) "Project" means the acquisition, purchase,
2 construction, reconstruction, rehabilitation, remodeling,
3 improvement, enlargement, repair, condemnation, maintenance, or
4 operation of port facilities.
5 (i) "Related facilities" means the following facilities
6 located within 5 miles of the navigable waters within the
7 geographic area of an authority, including, but not limited to, all
8 of the following:
9 (i) Public infrastructure.
10 (ii) Real and personal property used or useful to accomplish
11 the purposes of the authority.
12 (iii) Parking lots and parking structures that may be used in
13 connection with facilities.
14 (iv) Commercial, tourism, entertainment, and recreational
15 facilities.
16 (v) Facilities used for freight, transportation, light
17 manufacturing, and intermodal operations and functions.
18 Sec. 8. (1) An authority may do 1 or more of the following:
19 (a) Adopt, amend, and repeal bylaws for the regulation of its
20 affairs and the conduct of its business.
21 (b) Sue and be sued on the same basis as the this state. ; and
22 adopt
23 (c) Adopt and register with the secretary of state an official
24 seal and alter that seal at its pleasure.
25 (d) (c) Maintain offices at a place or places, either within
26 or without its jurisdiction, as it may determine.
27 (e) (d) Acquire, construct, reconstruct, rehabilitate,
28 improve, maintain, finance, lease as lessor or as lessee, repair,
29 or operate port facilities within its territorial jurisdiction,
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1 including, but not limited to, the dredging of ship channels and
2 turning basins and the filling and grading of land therefor.
3 related to these improvements. An authority may operate a leased
4 facility, owned by the authority, if the lessee defaults and a new
5 lease is negotiated or competitively bid.
6 (f) (e) Designate the location and character of the port
7 facilities which that the authority may hold, or own, finance, or
8 operate, or over which it is authorized to act, and regulate all
9 matters related to the location and character of those port
10 facilities.
11 (g) (f) Acquire, hold, and dispose of real and personal
12 property.
13 (h) (g) Make directly, or through the hiring of expert
14 consultants, investigations and surveys of whatever nature,
15 including studies of business conditions, freight rates, port
16 services, physical surveys of the conditions of channels and
17 structures, and the necessity for additional port facilities for
18 the development and improvement of commerce and recreation and for
19 the more expeditious handling of that commerce and recreation, and
20 make studies, surveys, and estimates, as necessary for the
21 execution of its powers under this act.
22 (i) (h) Promulgate all necessary rules to fulfill the purposes
23 of this act.
24 (j) (i) Issue its bonds, notes, or other evidences of
25 indebtedness as provided in this act.
26 (k) (j) Fix, and revise from time to time, and charge, and
27 collect rates, fees, rentals, or other charges for the use of a
28 facility owned or operated by the authority.
29 (l) Enter into public-private partnerships or other agreements
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1 necessary or useful to accomplish the purposes of this act.
2 (2) The powers granted under this act are in addition to those
3 powers granted by charter or other statute.
4 Sec. 9. An authority may do 1 or more of the following:
5 (a) Appear in on its own behalf before boards, any of the
6 following:
7 (i) Boards, commissions, departments, or other agencies of the
8 federal government or of any state or international conferences and
9 before committees of the congress of the United States and the
10 state legislature in all matters relating to the design,
11 establishment, construction, extension, operation, improvement,
12 repair, or maintenance of a project operated, and maintained,
13 financed, or supported by the authority under this act. , and
14 appear before any
15 (ii) Any federal or state agencies in matters relating to
16 transportation rates, port services and charges, demurrage,
17 switching, wharfage, towage, pilotage, differentials,
18 discriminations, labor relations, trade practices, river and harbor
19 improvements, aids to navigation, permits for structures in
20 navigable waters, and all other matters affecting the physical
21 development of, and the business interest of, the authority and
22 those it serves.
23 (b) Make application Apply for, receive, and accept from any a
24 federal, state, or municipal agency, foundation, public or private
25 agency, or individual, a grant or loan for, or in aid of, the
26 planning, construction, operation, or financing of a port facility,
27 ; and receive and accept contributions from any source of money,
28 property, labor, or other things of value, to be held, used, and
29 applied for the purposes for which the grant or contribution may be
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1 is made.
2 (c) Appoint an executive director. who shall be All of the
3 following apply to an executive director appointed under this
4 subdivision:
5 (i) The executive director is the chief administrative
6 executive officer of the authority. , and to whom the
7 (ii) The authority may delegate any of its administrative
8 powers and authorizations to the executive director.
9 (iii) During employment, the executive director shall not have a
10 financial interest in port facilities or projects over which the
11 authority has jurisdiction or power or authorization to act.
12 (d) Employ personnel as is necessary and employ the services
13 of private consultants and engineers, legal counsel, accountants,
14 construction and financial experts, and other agents for rendering
15 professional and technical assistance and advice as may be
16 necessary. , and whose The authority shall determine the
17 compensation of persons employed by the authority, including the
18 executive director. , shall be determined by the authority.
19 Sec. 10. An authority may do 1 or more of the following:
20 (a) Subject to the authority of the federal government and the
21 this state and with the agreement of the constituent units, provide
22 all of the following:
23 (i) Provide for the preservation of navigation within its
24 territorial jurisdiction, including the establishment by regulation
25 of lines beyond which piers, bulkheads, wharves, pilings,
26 structures, obstructions, or extensions of any character may not be
27 built, erected, constructed, or extended. ; provide
28 (ii) Provide by regulation for the stationing, anchoring, and
29 movement of vessels or other watercraft. ; adopt
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1 (iii) Adopt rules to prevent material, refuse, or matter of any
2 kind from being thrown into, deposited, or placed where it may
3 fall, or be washed, into navigable waters under its jurisdiction. ;
4 ascertain
5 (iv) Ascertain the depth and course of the channels of those
6 navigable waters. ; erect
7 (v) Erect and maintain, authorize the erection and maintenance
8 of, and make rules respecting wharves, bulkheads, piers, and
9 piling, and the keeping of the same in repair, to prevent injury to
10 navigation or health. ; regulate
11 (vi) Regulate the use of wharves, docks, piers, bulkheads, or
12 pilings owned by it. ; lease
13 (vii) Lease or rent the same, wharves, docks, piers, bulkheads,
14 or pilings owned by it and impose and collect dockage from vessels
15 and watercraft lying at , or using the same; and collect these.
16 (viii) Collect wharfage and other charges upon on goods, wares,
17 merchandise or other articles landed at, shipped from, stored on,
18 or passed over the same.wharves, docks, piers, bulkheads, or
19 pilings owned by it.
20 (b) Make and enter into contracts and agreements necessary or
21 incidental to the performance of its duties and the execution of
22 its powers under this act.
23 (c) Lay out, construct, acquire, operate, lease, sell, and
24 convey planned industrial districts as a part of port facilities
25 within its jurisdiction, subject to the restrictions contained in
26 this act upon on operation and ownership of port facilities.
27 (d) Do all acts and things necessary or convenient to promote
28 and increase commerce and recreation within its territorial
29 jurisdiction and carry out the powers expressly granted and any
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1 powers implied or necessary for the exercise of the powers
2 expressly granted in this act.
3 Sec. 13. (1) An authority and 1 or more constituent units may
4 enter into a contract or contracts for the acquisition,
5 construction, improvement, enlargement, or extension, operation, or
6 financing of port facilities and for the payment of the cost
7 thereof by the contracting constituent units, with interest, over a
8 period of not more than 40 years. Additionally, an authority and 1
9 or more constituent units may enter into a contract or contracts
10 for the refunding of any prior indebtedness of the authority.
11 (2) Each contracting constituent unit shall pledge its full
12 faith and credit for the payment of its obligations under the
13 contract. If the constituent unit has taxing power, each year it
14 shall levy a tax upon on all real and personal property within the
15 constituent unit, which may be imposed without limitation as to
16 rate or amount, to the extent necessary for the prompt payment of
17 that part of the contract obligations as shall that fall due before
18 the following year's tax collection. The tax shall be in addition
19 to any tax which the contracting constituent unit may otherwise be
20 authorized to levy and may be imposed without limitation as to rate
21 or amount, but shall not be in excess of the rate or amount
22 necessary to pay the contract obligation. If any contracting
23 constituent unit at the time of its annual tax levy has on hand in
24 cash any amount pledged to the payment of the current obligations
25 for which the tax levy is to be made, then the annual tax levy may
26 be reduced by that amount. For the purpose of obtaining the credit,
27 Other funds may be raised by a an authority or contracting
28 constituent unit in 1 or more of the following methods:
29 (a) By service charge to users of the facilities owned or
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1 operated by the port authority.
2 (b) By setting aside state collected funds disbursed to the
3 contracting constituent unit.
4 (c) By special assessment upon on lands benefited.
5 (d) By setting aside any other available money, including the
6 general revenues of the contracting constituent units.
7 (3) A contracting constituent unit may agree to raise all or
8 any part of its contract obligation by 1 or more of the methods
9 enumerated in subsection (2) which may be that are available. The
10 various powers granted in this act to a constituent unit shall must
11 be exercised by its governing body.
12 (4) If a constituent unit, other than a county, operating
13 under this act elects to raise money to pay all or a portion of its
14 share of the cost of a project by assessing the costs upon on
15 benefited lands, its governing body shall so determine make the
16 election by resolution and fix the district therefor. for
17 assessment. The governin