Bill Text: MI SB0696 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Transportation; other; obligation of street railway to pay costs of modifying or relocating public utility facilities; waive under certain circumstances and regulate provisions of operating license agreements between street railways and road authorities. Amends secs. 13 & 15 of 1867 PA 35 (MCL 472.13 & 472.15).
Spectrum: Bipartisan Bill
Status: (Passed) 2014-12-31 - Assigned Pa 0487'14 With Immediate Effect [SB0696 Detail]
Download: Michigan-2013-SB0696-Engrossed.html
SB-0696, As Passed House, December 19, 2014
SUBSTITUTE FOR
SENATE BILL NO. 696
A bill to amend 1867 PA 35, entitled
"Nonprofit street railway act,"
by amending sections 13 and 15 (MCL 472.13 and 472.15), as amended
by 2008 PA 481.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 13. (1) A street railway may acquire, own, construct,
furnish, equip, complete, operate, improve, and maintain a street
railway system in and upon the streets and highways of a road
authority with the approval of the road authority, on terms and
conditions imposed by the road authority. The approval shall be
embodied
in an operating license agreement by and among between a
street railway and each road authority with jurisdiction over
public streets and highways upon which the street railway operates
or seeks to operate a street railway system, including, but not
limited to, a city, village, or township road authority located in
the city, village, or township in which the street railway system
operates
or seeks to operate. The An
operating license agreement
shall include the terms and conditions for operation of the street
railway system. An operating license agreement may require the
street railway to pay the direct administrative costs incurred by
the road authority in administering the operating license
agreement. An operating license agreement shall not require a
street railway to acquire, accept responsibility for, or obligate
itself to assume liability for or pay for any legacy costs of a
public
transportation provider. Before
approving an a proposed
operating license agreement, a road authority shall hold a public
hearing on the proposed operating license agreement. The hearing
shall be held in the city, village, or township in which the street
railway seeks to operate a street railway system and shall be held
in compliance with the open meetings act, 1976 PA 267, MCL 15.261
to 15.275. Notice of the public hearing shall be provided not less
than 20 days before the date of the hearing. One or more road
authorities may conduct a joint public hearing under this section.
At a public hearing, a street railway and a road authority may
present information regarding the proposed operating licensing
agreement. as
the street railway or the road authority deems
appropriate.
When operating in and upon the
streets and highways of
a road authority, a street railway is subject to rules,
regulations, or ordinances imposed by the road authority. A street
railway
shall not construct any a street railway system in and upon
the streets and highways of a road authority until the street
railway accepts in writing any terms and conditions imposed by the
road authority, the operating license agreement is approved under
this section, and the agreement is filed with each road authority
with jurisdiction over public streets and highways upon which the
street
railway will operate. A road authority has the power in its
discretion
to may approve or disapprove an operating license
agreement. A decision of a road authority regarding an operating
license
agreement shall be is final and binding upon a street
railway and other interested persons. The street railway shall pay
the
a road authority for all of the road authority's costs
incurred
in constructing the street railway system, mitigating the impact of
the street railway system on road users, the environment, and the
surrounding neighborhoods, and modifying the streets or highways
impacted by construction of the street railway system, as provided
in the operating license agreement. As a condition to obtaining or
holding an operating license agreement, a road authority shall not
require a street railway to obtain any other license or franchise,
assess any other fee or charge, or impose any other licensing,
regulatory, or franchise requirement, including a provision
regulating schedules or fares of a street railway, unless expressly
authorized under this act.
(2) A street railway may acquire, own, construct, furnish,
equip, complete, operate, improve, and maintain a street railway
system upon public or private rights of way, and obtain easements
when necessary for a street railway to acquire and use private
property for acquiring, owning, constructing, furnishing,
equipping, completing, operating, improving, and maintaining a
street railway system.
(3) After a road authority consents to the acquiring, owning,
constructing, furnishing, equipping, completing, operating,
improving, and maintaining of a street railway system on the
streets or highways of the road authority or grants a right or
privilege to the street railway by entering into an operating
license agreement with the street railway, the road authority may
not revoke the consent or deprive the street railway of the rights
and privileges conferred without affording the street railway
procedural due process of law if and to the extent provided in the
operating
license agreement. for the street railway.
(4) A street railway may do 1 or more of the following:
(a) Acquire by gift, devise, transfer, exchange, purchase,
lease, or otherwise on terms and conditions and in a manner the
street railway considers proper property or rights or interests in
property relating to the operation of the street railway or street
railway system.
(b)
Take, transport, or carry and convey persons individuals
and property on a street railway system and receive just and fair
compensation from users of the street railway system for that
purpose.
(c) Erect and maintain all necessary and convenient buildings,
structures, stations, depots, fixtures, and machinery for the
accommodation
and use of persons individuals
and property
transported by the street railway.
(d)
Regulate the time and manner in which persons individuals
and
property may be are transported by the street railway and fares
or
other compensation may be are
paid for that purpose. A street
railway may charge just and fair compensation for the use of its
street railway system.
(e) Borrow money and issue bonds and notes for any
indebtedness
incurred and may mortgage their street railway
property and rights to secure the payment of bonds, notes, money
borrowed,
and any and all debts and liabilities which incurred by
the
street railway. may incur. A street railway shall not use
tax
increments to repay bonds and notes.
(f) Transfer a street railway system to a public entity
operating a public transportation system, with the consent of the
public entity, if the transfer is authorized by a law enacted after
the
effective date of the amendatory act that added section
21.January 12, 2009.
(5) As used in this section, "public transportation provider"
means that term as defined in section 2 of the regional transit
authority act, 2012 PA 387, MCL 124.542.
Sec. 15. (1) Subject to applicable law and applicable
regulations of this state, a city, a township, or a village, a
street railway may generate, store, transmit, distribute, dispense,
furnish, or use electricity and electric power for use or
consumption by the street railway and the street railway system.
(2)
If a For a street railway
that constructs, expands, or
modifies a street railway system outside of a qualified city, if
the street railway requests a public utility to modify or relocate
facilities of the public utility that lie within a public street or
highway right of way, or if, in response to the construction,
expansion, or modification of a street railway system a public
utility determines that the public utility should modify or
relocate the public utility's facilities, consistent with law,
regulation,
or good sound utility practice and unless the street
railway and the public utility agree otherwise, the street railway
shall pay all costs of the relocation and modification of the
facilities to the public utility.
(3) A street railway that constructs, expands, or modifies a
street railway system in a qualified city shall protect and keep in
place the facilities of a public utility affected by the
construction, expansion, or modification of the street railway
system in a public highway, street, or right-of-way unless sound
utility practice requires modification or relocation of the
facilities. If sound utility practice requires modification or
relocation of the facilities, the street railway shall pay the cost
of the modification or relocation, unless 1 or both of the
following apply:
(a) Modification or relocation of the public utility's
facilities is required because the facilities are at an
unauthorized location in the public highway, street, or right-of-
way. If the facilities are located anywhere in a public highway,
street, or right-of-way, there is a rebuttable presumption that the
public utility's facilities are at an authorized location in the
public highway, street, or right-of-way.
(b) The street railway and the public utility agree to an
alternative cost allocation.
(4) Notwithstanding subsection (3), a qualified city and a
street railway may agree that the street railway pay the cost of
modifying or relocating a public utility's facilities in the
qualified city if the modification or relocation is required by the
modification or relocation of a street railway system by the street
railway in a public highway, street, or right-of-way in the
qualified city.
(5) The property of a street railway and its income and
operations are exempt from all taxation by this state or a
political subdivision of this state.
(6) A public utility or a street railway may bring an action
in circuit court to enforce the provisions of this section. This
remedy is in addition to any other remedy that may exist at law.
(7) As used in this section:
(a) "Public utility" includes a provider of communications,
data, cable television, electricity, heat, natural or manufactured
gas, steam, sewage, video, water, or other similar services. Public
utility also includes a telecommunications provider and a video
service provider.
(b) "Qualified city" means a city that has incorporated an
authority under the municipal lighting authority act, 2012 PA 392,
MCL 123.1261 to 123.1295.
(c) "Telecommunications provider" means that term as defined
in section 102 of the Michigan telecommunications act, 1991 PA 179,
MCL 484.2102.
(d) "Video service provider" means that term as defined in
section 1 of the uniform video services local franchise act, 2006
PA 480, MCL 484.3301.
