Bill Text: MI HB5119 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Economic development; other; regional convention facility authority act challenges to creation or transfer; modify. Amends sec. 7 of 2008 PA 554 (MCL 141.1357).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-06-18 - Printed Bill Filed 06/18/2009 [HB5119 Detail]

Download: Michigan-2009-HB5119-Introduced.html

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HOUSE BILL No. 5119

 

June 17, 2009, Introduced by Rep. Johnson and referred to the Committee on Regulatory Reform.

 

     A bill to amend 2008 PA 554, entitled

 

"Regional convention facility authority act,"

 

by amending section 7 (MCL 141.1357).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7. (1) For an area of this state that is a qualified

 

metropolitan area on the effective date of this act January 20,

 

2009, an authority is created for the qualified metropolitan area

 

on the effective date of this act January 20, 2009. For an area of

 

this state that becomes a qualified metropolitan area after the

 

effective date of this act January 20, 2009, an authority is

 

created for the qualified metropolitan area on the date the area

 

became a qualified metropolitan area. An authority created under

 

this section shall be a municipal public body corporate and politic

 

and a metropolitan authority authorized by section 27 of article

 

VII of the state constitution of 1963 and shall possess the powers,

 

duties, and jurisdictions vested in the authority under this act

 

and other laws. The authority shall not be an authority or agency

 

of this state. The name of an authority created under this section

 

shall include the name of the qualified city located within the

 

qualified metropolitan area and the phrase "regional convention

 

facility authority".

 

     (2) Before the transfer date, an authority may organize and

 

exercise all powers, duties, and jurisdictions granted under this

 

act, except the powers, duties, and jurisdictions related to the

 

management, operation, and development of a qualified convention

 

facility. On the transfer date, an authority is vested with the

 

additional powers, duties, and jurisdictions under this act related

 

to the management, operation, and development of a qualified

 

convention facility.

 

     (3) It is the intent of the legislature that the transfer of a

 

qualified convention facility from a qualified city to an authority

 

under this act and any payment required under section 19(9)

 

represents at least a fair exchange of value for value for the

 

qualified city considering, without limitation, all of the

 

following:

 

     (a) The net value of the qualified convention facility prior

 

to the transfer date after deducting deferred maintenance

 

obligations, operational deficits, repair or expansion needs, and

 

other liabilities related to the qualified convention facility that

 

are obligations of the qualified city.

 

     (b) The benefits to the qualified city resulting from the

 

transfer of the qualified convention facility to the authority,

 

including, but not limited to, assumption or payment of debt

 

obligations of the qualified city by the authority, reductions in

 

costs, liabilities or other obligations of the qualified city,

 

additional revenues or other money not otherwise available for the

 

qualified convention facility, and the positive economic impact to

 

the qualified city likely to be generated by the operation of the

 

qualified convention facility by the authority or any expansion or

 

improvement of the qualified convention facility by the authority,

 

especially economic impact resulting in the creation or retention

 

of jobs and capital investment.

 

     (c) Any bond proceeds, debt service payments, or other money

 

payable directly or indirectly to the qualified city after the

 

transfer date under this act, the state convention facility

 

development act, 1985 PA 106, MCL 207.621 to 207.640, or the health

 

and safety fund act, 1987 PA 264, MCL 141.471 to 141.479.

 

     (4) The property of an authority created under this act is

 

public property devoted to an essential public and governmental

 

purpose. Income of the authority is for a public and governmental

 

purpose.

 

     (5) Except as otherwise provided in this subsection, the

 

property of the authority created under this act and its income,

 

activities, and operations are exempt from all taxes and special

 

assessments of this state or a political subdivision of this state.

 

Property of an authority and its income, activities, and operations

 

that are leased to private persons are not exempt from any tax or

 

special assessment of this state or a political subdivision of this

 

state. Property of an authority is exempt from any ad valorem

 

property taxes levied under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155, or other law of this state authorizing

 

the taxation of real or personal property. An authority is an

 

entity of government for purposes of section 4a(1)(a) of the

 

general sales tax act, 1933 PA 167, MCL 205.54a, and section 4h of

 

the use tax act, 1937 PA 94, MCL 205.94h.

 

     (6) The validity of the creation of an authority or the

 

transfer of a qualified convention facility shall be conclusively

 

presumed unless questioned in an original action filed in the court

 

of appeals within 60 90 days after the creation of the authority

 

under this section or the transfer of the qualified convention

 

facility to the authority. The court of appeals has original

 

jurisdiction to hear an action under this subsection. The court

 

shall hear the action in an expedited manner.