Bill Text: MI HB4602 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Economic development; other; regional convention facility authority act; modify. Amends secs. 9 & 19 of 2008 PA 554 (MCL 141.1359 & 141.1369).

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2009-06-17 - Referred To Committee On Regulatory Reform [HB4602 Detail]

Download: Michigan-2009-HB4602-Introduced.html

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HOUSE BILL No. 4602

 

March 17, 2009, Introduced by Reps. Jackson, Tlaib and Womack and referred to the Committee on Intergovernmental and Regional Affairs.

 

     A bill to amend 2008 PA 554, entitled

 

"Regional convention facility authority act,"

 

by amending sections 9 and 19 (MCL 141.1359 and 141.1369).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9. (1) An authority created under this act shall be

 

directed and governed by a board of directors consisting of 5 7

 

members. The members of an authority board shall include all of the

 

following:

 

     (a) One individual appointed by the governor of this state

 

with the advice and consent of the senate.

 

     (b) One individual appointed by the local chief executive

 

officer of the qualified city.

 

     (c) One individual appointed by the local chief executive

 

officer of the qualified county.

 

     (d) One individual appointed by the local chief executive

 

officer of the county bordering the qualified county with the

 

highest population according to the most recent decennial census

 

bordering the qualified county.

 

     (e) One individual appointed by the local chief executive

 

officer of the county bordering the qualified county with the

 

second highest population according to the most recent decennial

 

census.

 

     (c) One individual appointed by the local chief executive

 

officer of the qualified city from a list of 3 or more individuals

 

nominated by the local convention and visitors bureau with the

 

largest number of members in the qualified city during the

 

immediately preceding 3 calendar years.

 

     (d) One individual appointed by the local chief executive

 

officer of the qualified county.

 

     (e) One individual appointed by the local chief executive

 

officer of the qualified county from a list of 3 or more

 

individuals nominated by the organization sponsoring the event at

 

the qualified convention facility with the largest number of

 

visitors during the immediately preceding 3 calendar years.

 

     (f) One individual appointed by the local chief executive

 

officer of the county bordering the qualified county with the

 

highest population according to the most recent decennial census

 

bordering the qualified county.

 

     (g) One individual appointed by the local chief executive

 

officer of the county bordering the qualified county with the

 

second highest population according the most recent decennial

 

census.

 

     (2) Board members appointed under this section shall possess

 

business, financial, or professional experience relevant to the

 

operation of a corporation or a convention facility. No board

 

member shall be an employee or officer of any local government or

 

of this state. For purposes of this subsection, "local government"

 

includes any county, township, city, village, or intergovernmental

 

entity in this state.

 

     (3) Except as otherwise provided in this subsection, board

 

members shall be appointed for a term of 6 years. Initial

 

appointments under subsection (1) shall be made within 30 90 days

 

of the creation of the authority. Of the board members initially

 

appointed under subsection (1), the members appointed under

 

subsection (1)(a) and (c) shall be appointed for a term expiring on

 

the second August 31 following the creation of the authority, the

 

members appointed under subsection (1)(b) and (d) shall be

 

appointed for a term expiring on the third August 31 following the

 

creation of the authority, the member members appointed under

 

subsection (1)(e), (f), and (g) shall be appointed for a term

 

expiring on the fourth August 31 following the creation of the

 

authority. If a vacancy occurs on the board other than by

 

expiration of a term, the vacancy shall be filled in the same

 

manner as the original appointment for the remainder of the term.

 

Board members may continue to serve until a successor is appointed

 

and qualified. Notwithstanding any other provision of this section,

 

a member of the board appointed prior to the effective date of the

 

amendatory act that added subsection (1)(f) and (g) whose

 

appointment is inconsistent with this section is removed as a

 

member of the board.

 

     (4) Each officer appointing a board member under this section

 

shall file the appointment with the secretary of state and the

 

county clerk of each county in the qualified metropolitan area.

 

Notwithstanding any law or local charter provision to the contrary,

 

appointments by an officer are not subject to approval or rejection

 

by a legislative body.

 

     (5) Upon appointment to a board under this section, and upon

 

taking and filing of the oath of office required by section 1 of

 

article XI of the state constitution of 1963, a board member shall

 

enter office and exercise the duties of the office of board member.

 

     (6) Board members shall serve without compensation but may be

 

reimbursed for actual and necessary expenses incurred while

 

attending board meetings or performing other authorized official

 

business of the authority.

 

     (7) An individual who is not of good moral character or who

 

has been indicted or charged with, convicted of, pled guilty or no

 

contest to, or forfeited bail concerning a felony under the laws of

 

this state, any other state, or the United States shall not be

 

appointed or remain as a member of the board.

 

     Sec. 19. (1) Within Not sooner than 45 days of the effective

 

date of this act and not later than 90 days after 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 or the date on

 

which a convention facility becomes a qualified convention

 

facility. 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.

 

     (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 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.

 

     (c) All licenses, permits, approvals, or awards 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.

 

     (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.

 

     (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.

 

     (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.

 

     (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 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 other documents as may, in the authority's and the

 

officer's reasonable judgment, as necessary or appropriate to

 

recognize, facilitate, or accomplish the transfer 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

 

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 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.

 

     (c) All cash balances and investments relating to or resulting

 

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 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 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 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, except as

 

otherwise provided in subsection (14), without any additional

 

compensation from the authority. The authority shall provide for

 

the payment of compensation not exceeding $20,000,000.00

 

$35,000,000.00 to the qualified city 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 of the qualified convention facility to the authority

 

under this section.

 

     (10) A local government that owns a qualified convention

 

facility subject to transfer 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:

 

     (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.

 

     (c) Refrain from any action that, in the authority's 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 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, an authority for the qualified metropolitan

 

area in which the local government is located and before the

 

transfer date may 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 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.

 

     (c) In the absence of cancellation or termination, the

 

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, 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).

 

     (14) Each year, the authority shall pay the qualified city in

 

which that convention facility is located an amount equal to

 

$500,000.00 for costs associated with providing police, fire, and

 

emergency medical services.