The bill amends the Recreational Authorities Act in Michigan to facilitate the creation and operation of recreational authorities by reducing the number of municipalities required to form an authority from two to one. It clarifies that a recreational authority is a governmental subdivision of the state and mandates that articles of incorporation include essential details such as the authority's name, participating municipalities, and its purposes, which now explicitly encompass the management of public forests and natural resources areas. The bill also outlines the procedures for municipalities to join or withdraw from an authority and specifies the voting requirements for adopting or amending articles. Additionally, it allows authorities to levy taxes for recreational purposes and establishes guidelines for dissolution, ensuring that assets revert to the appropriate municipalities or the state.

Moreover, the bill addresses the borrowing and bond issuance capabilities of recreational authorities, limiting their ability to borrow or issue bonds or notes to a maximum of 2 mills of the taxable value of property within their district. It clarifies that any issued bonds or notes are debts of the authority, not the participating municipalities, and stipulates that taxes levied to pay off these obligations cannot exceed five years without voter approval. The bill also ensures that all bonds or notes are subject to the revised municipal finance act and includes a provision for its enactment contingent upon the passage of specified bills from the 103rd Legislature.

Statutes affected:
House Introduced Bill: 123.1135