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 like revolving credit agreements and interest rate swaps. The definition of "facilities" has been broadened to encompass a wider range of port-related structures, while "port facilities" has been redefined to include essential infrastructure for port operations. Additionally, the bill grants port authorities new powers to engage in public-private partnerships and adopt governance bylaws, clarifying their authority to manage and operate facilities, lease properties, and collect usage fees.

Significant amendments also address the financial management of port authorities, including new methods for raising funds through service charges, special assessments, and general revenues. The bill stipulates that revenue bonds issued by the authority must be secured by a trust agreement and are payable solely from project revenues, ensuring they do not constitute state or political subdivision debt. Furthermore, it requires authorities to prepare development plans and submit budget estimates for approval, while also changing the handling of surplus unencumbered funds at the end of a fiscal year. Instead of being paid into the general funds of the state or constituent units, surplus funds will now be carried forward for future use, enhancing the financial flexibility and operational efficiency of port authorities.

Statutes affected:
Senate Introduced Bill: 120.102
As Passed by the Senate: 120.102