The bill amends the Hertel-Law-T. Stopczynski Port Authority Act to enhance the powers and responsibilities of port authorities in Michigan. It introduces provisions that allow port authorities to enter into, amend, or terminate ancillary financing facilities, which include various financial agreements such as revolving credit agreements, letters of credit, and insurance contracts. The definition of "facilities" is expanded to encompass a broader range of port-related structures and improvements, enabling port authorities to manage and develop their facilities more effectively. Additionally, the bill clarifies the authority's powers, allowing them to adopt bylaws, sue and be sued, and engage in public-private partnerships, while emphasizing the financial responsibilities of constituent units to pledge their full faith and credit for contract obligations.

Further amendments focus on the financing and operation of authorities, particularly regarding the issuance of revenue bonds and project cost assessments. The bill clarifies that constituent units may raise funds through special assessments and general revenues, with governing bodies required to prepare special assessment rolls. Revenue bonds issued under this act must mature within 40 years and are payable solely from project revenues, not considered a debt of the state. The bill also includes provisions for revenue refunding bonds, trust agreements to secure bonds, and mandates for authorities to prepare development plans and budget estimates, ensuring transparency in fund usage. Notably, any surplus funds at the end of a fiscal year will be carried forward for future use rather than reverting to the state or constituent units.

Statutes affected:
Senate Introduced Bill: 120.102