Bill Text: MI SB1031 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Local government; other; regional transportation authority in Detroit region; establish. Creates new act & repeals 1967 PA 204 (MCL 124.401 - 124.426).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-12-17 - Referred To Committee On Transportation [SB1031 Detail]
Download: Michigan-2009-SB1031-Introduced.html
SENATE BILL No. 1031
December 17, 2009, Introduced by Senator THOMAS and referred to the Committee on Transportation.
A bill to create the Detroit area regional transportation
authority; to transfer certain powers of authorities to the Detroit
area regional transportation authority; to provide regional
transportation; to prescribe certain powers and duties of the
authorities and of certain state agencies and officials; to provide
for the issuance of bonds and notes; to provide for the state to
guarantee payment of certain claims against the authority; to
provide for the pledge of taxes, revenues, assessments, tax levies,
and other funds for bond and note payments; to authorize certain
local entities to levy property taxes and make special assessments;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE I
Sec. 1. This act shall be known and may be cited as the
"Detroit area regional transportation authority act".
Sec. 2. As used in this act:
(a) "Authority" means the Detroit area regional transportation
authority created under this act.
(b) "Board" means the governing and administrative body of the
authority.
(c) "Chief executive officer" means, with respect to a city,
the mayor of the city and, with respect to a county, either the
county executive of the county or, for a county not having a county
executive, the chairperson of the county board of commissioners.
Chief executive officer means, with respect to the authority or
SMART, the chief executive officer of the authority or SMART.
(d) "Comprehensive regional public transportation service
plan" means the comprehensive regional public transportation
service plan described in section 4(3).
(e) "Local governmental consortium" means a legal or
administrative entity described in section 7 of the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.507, and
provided for in an interlocal agreement entered into under that act
between cities, villages, or townships within a county in the
region that contains a city with a population of 500,000 or more,
and in existence before January 1, 2005.
(f) "Political subdivision" means a county, city, township,
village, local governmental consortium, or school district located
within the region.
(g) "Public transportation" means the transportation or
conveyance of persons within the region or SMART region by means
available to the general public, including, but not limited to,
senior citizens, citizens with disabilities, and citizens without
the economic means to provide their own personal transportation.
Public transportation does not include transportation by
automobiles not used for conveyance of the general public as
passengers.
(h) "Public transportation facility" means all property, real
and personal, public or private, used for providing public
transportation. Public transportation facility includes, but is not
limited to, automated guideways, overpasses and skywalks, street
railways, buses, tramlines, subways, monorails, rail rapid transit,
bus rapid transit, and tunnel, bridge, and parking facilities used
in connection with public transportation facilities. Public
transportation facility does not include taxis, limousines, state,
county, or local roads, highways, ports, airports, motor bus
charter services or operations that are not acquired by the
authority or SMART, sightseeing services, private intercity bus
services, or transportation that is used exclusively for school or
church purposes.
(i) "Region" means Macomb, Monroe, Oakland, Washtenaw, and
Wayne counties and those local governmental consortiums, cities,
townships, and villages within those counties. Region includes any
county or local governmental consortium that becomes a member under
section 6. Region does not include any county or local governmental
consortium that has withdrawn from the authority under section 5.
(j) "SMART" means the suburban mobility authority for regional
transportation described in section 30.
(k) "SMART region" means Oakland, Wayne, Monroe, and Macomb
counties and the cities, townships, and villages within those
counties. The term does not include any county that has withdrawn
from SMART or the cities, townships, or villages within that
county.
(l) "Transit system" means any individual, partnership,
corporation, association, municipal corporation, limited liability
company, public authority, public benefit agency, unit of
government, or any person or entity other than the authority, or
SMART that provides public transportation.
ARTICLE II
Sec. 3. (1) The authority is established, and the initial
members of the authority are all counties, cities, townships, and
villages within the region.
(2) The authority is an agency and instrumentality of the
state and except as provided in this act has all of the powers of a
public corporation if exercised for 1 or more of the following
purposes:
(a) Planning public transportation facilities.
(b) Designing public transportation facilities.
(c) Constructing public transportation facilities.
(d) Operating public transportation facilities.
(e) Administering public transportation facilities.
(f) Acquiring public transportation facilities.
(g) Contracting to provide public transportation facilities.
(h) Maintaining, replacing, improving, and extending public
transportation facilities.
(i) Exercising the powers of a public transportation facility.
(3) The authority shall not have the authority to design,
construct, or operate ports or airports. The authority may provide
service to and at ports and airports for the purpose of conveying
the public to ports and airports.
(4) The authority shall not spend any public funds on
political activities.
(5) The authority shall take all reasonable measures to
provide regional transportation for senior citizens, citizens with
disabilities, and citizens without the economic means to provide
their own personal transportation. The authority shall take all
reasonable measures to see that regional transportation services
for those citizens are the first services provided by the authority
and that regional transportation services for those citizens are
the last services reduced by the authority if the authority reduces
services.
(6) The authority shall take all reasonable measures to
provide adequate transportation services to citizens other than
senior citizens, citizens with disabilities, or citizens without
the economic means to provide their own personal transportation.
Sec. 4. (1) The authority shall provide for public
transportation facilities for the region. In providing for public
transportation facilities, the authority may exercise the powers
provided for in section 3(2). The authority shall fulfill its
obligations under section 3(5), and shall take all reasonable and
necessary measures to ensure that it meets its obligations under
section 3(5) and (6) in the most cost-effective manner possible.
(2) It is the intent of the legislature that, by October 1,
2010, the board shall become the designated recipient for purposes
of receiving federal funds under 49 USC 5307, 5308, 5309, 5310,
5311, and 5313, and the regulations promulgated under that statute.
As the designated recipient, the board shall apply for federal and
state transportation operating and capital assistance grants, and
the board may designate the authority, a city with a population of
more than 750,000, SMART, and other transit systems not included in
a city of more than 750,000 population as subrecipients of federal
and state transportation funds. To the extent required by 49 USC
5307, 5308, 5309, 5310, 5311, and 5313, the board shall execute an
agreement conferring on a city with more than 750,000 population,
SMART, and other transit systems not included in the city of more
than 750,000 population the right to receive and dispense grant
funds and containing any other provisions that federal law and
regulations require. On behalf of the board, the secretary of the
board shall submit in a timely manner the region's application for
federal and state transportation funds to the responsible federal
and state agencies. The application shall designate the
distribution of all capital and operating funds that are paid
directly to the authority, a city with a population of more than
750,000, SMART, and the other transit systems not included in a
city of more than 750,000 in population. Except as otherwise
provided in 1951 PA 51, MCL 247.651 to 247.675, and subject to
subsections (5) and (6), if the authority is the recipient of
federal or state funds, the chief executive officer of the
authority shall remit to a city with a population of more than
750,000, SMART, and the other transit systems not included in the
city of more than 750,000 in population their designated
distribution of those funds in a manner consistent with the
application.
(3) The authority shall develop, implement, and update a
comprehensive regional public transportation service plan for
providing public transit services in the region. The authority
shall present the initial comprehensive regional public
transportation service plan to the legislature, the governor, and
the state transportation department within 1 year after the
selection of the chief executive officer of the authority. In each
succeeding year, the authority shall update the comprehensive
regional public transportation service plan and present it to the
legislature, the governor, and the state transportation department.
The comprehensive regional public transportation service plan shall
contain all of the following:
(a) A specific plan for providing regional transportation for
senior citizens, citizens with disabilities, and citizens without
the economic means to provide their own personal transportation.
(b) A cost-benefit analysis of the necessity and effectiveness
of the proposed plan, including an average cost per mile of
services provided and an average cost per rider of services
provided.
(c) An economic impact analysis of the ratio of public dollars
expended on public transit services relative to the amount of
private dollars invested in the region as a result of public
transit services.
(d) A full accounting of all funding sources for the plan and,
if any new taxes or special assessments are called for, an analysis
of how much each individual taxpayer, participating local
municipality, and county will pay versus what they currently pay
for mass transit, and an analysis of how much of the tax or special
assessment will be returned to the individual taxpayer, local
municipality, and county in the form of public transit services.
(e) A discussion of how the plan provides for a fair
distribution of services throughout the region.
(f) A discussion of how the specific and identifiable public
transportation needs of the region are addressed in the plan.
(g) A discussion of how the plan delivers measurable benefits.
(4) Subject to the availability of funds, the authority shall
provide or contract to provide those services that are required for
the implementation and execution of the comprehensive regional
public transportation service plan. The authority may contract with
transportation operators within the region to provide services that
the authority considers necessary for implementation and execution
of the comprehensive regional public transportation service plan.
(5) This subsection does not apply to any private transit
entities that have not contracted with the authority. The authority
shall coordinate all of the following functions between different
owners and operators of public transportation facilities within the
region relative to transit services:
(a) Service overlap.
(b) Rates.
(c) Routing.
(d) Scheduling.
(e) Any other function that the authority considers necessary
to coordinate in order to implement or execute the comprehensive
regional transportation service plan.
(6) The authority shall provide notices of its coordination
decisions under this section to owners and operators of public
transportation facilities in the region. Any owner or operator of a
public transportation facility within the region who fails to
comply with the authority's notice of coordination decision may be
declared ineligible for grant assistance from the authority, and,
if the authority declares that the owner or operator is ineligible
for grant assistance, shall not receive any transportation
operating or capital assistance grants from the authority.
(7) To the extent possible, the authority shall facilitate and
encourage connections with other forms of transportation,
including, but not limited to, taxicabs.
(8) Within 1 year after the selection of the chief executive
officer of the authority, the authority shall present to the
legislature, the members of the appropriations committees of the
house of representatives and the senate, and the governor its
recommendations for legislation to fund the implementation of the
comprehensive regional public transportation service plan and for
legislation to establish a dedicated funding stream for the
authority. The recommendations for legislation shall include an
analysis of the availability of funding sources for the dedicated
funding stream and the information described in subsection (3).
Sec. 5. (1) Subject to subsections (3) and (8), between
October 1, 2010 and September 30, 2011, a county with a population
of 750,000 or less that chooses not to participate in the authority
may withdraw from the authority by a resolution of withdrawal that
is approved by 2/3 vote of the members of the county board of
commissioners.
(2) Subject to subsections (3) and (8), beginning October 1,
2010, a county with a population of 750,000 or less may withdraw at
any time by a resolution of withdrawal that is approved by a 2/3
vote of the members of the county board of commissioners.
(3) If the county seeking withdrawal under this section has an
elected county executive under 1966 PA 293, MCL 45.501 to 45.521,
or 1973 PA 139, MCL 45.551 to 45.573, the county executive may veto
the resolution. A veto may be overridden by a 3/4 vote of the
county board of commissioners from the county seeking to withdraw
from the authority.
(4) Subject to subsections (5) and (8), on January 1, 2014,
and on January 1 every 4 calendar years after 2014, a county that
does not contain a city with a population of more than 750,000 may
withdraw from the authority by meeting both of the following:
(a) Within 60 days, the county board of commissioners by
majority vote adopts a resolution to place the question of
withdrawing from the authority on the ballot of the next regularly
scheduled November general election in the county.
(b) A majority of the electorate approves of the question of
withdrawal from the authority at the next regularly scheduled
November general election.
(5) The question under subsection (4) shall be placed on the
ballot in each county that does not contain a city with a
population of more than 750,000 at the next November general
election after the effective date of this act.
(6) Subject to subsection (8), on the effective date of this
act, on January 1, 2014, and on January 1 every 3 calendar years
after 2014, a local governmental consortium may withdraw from the
authority by meeting both of the following:
(a) Within 60 days, the governing board of the local
governmental consortium by majority vote adopts a resolution to
place the question of withdrawing from the authority on the ballot
of the next regularly scheduled primary or general election in each
of the local governmental units in the local governmental
consortium.
(b) A majority of the electorate approves of the question of
withdrawal from the authority at the next regularly scheduled
primary or general election.
(7) A county or local governmental consortium that withdraws
from the authority shall lose its seat on the board and shall not,
except on the unanimous affirmative vote of the board, contract for
public transportation services with the authority.
(8) If a county or local governmental consortium elects to
withdraw from the authority under this section, both of the
following apply:
(a) The county or local governmental consortium shall pay or
make provision to pay all of its obligations to the authority.
Beginning 60 days after the withdrawing county or local
governmental consortium gives notice of its intent to withdraw, the
withdrawing county or local governmental consortium shall incur no
further obligation to the authority until the withdrawal has been
completed. Obligations of a transit system within the withdrawing
county or local governmental consortium owed directly to the
authority are not obligations of the county or local governmental
consortium for purposes of this subsection. After the county or
local governmental consortium has withdrawn from the authority, the
state transportation department shall reduce the level of state
funding to the authority by the amount allocable directly to the
withdrawing county or local governmental consortium and transmit
those funds directly to the withdrawing county or local
governmental consortium.
(b) Any transit system within the withdrawing county or local
governmental consortium shall pay or make provision to pay all of
its obligations to the authority. After the county or local
governmental consortium has withdrawn from the authority, the state
transportation department shall reduce the level of state funding
to the authority by the amount allocable directly to that transit
system and transmit those funds directly to that transit system.
Sec. 6. (1) A county may become a member of the authority if
all of the following are met:
(a) Any part of the county is not more than 90 miles from the
city limits of a city with a population of more than 750,000.
(b) The county is contiguous to another county that is a
member of the authority.
(c) A resolution is adopted by a majority vote of the county
board of commissioners of the county requesting membership.
(2) If the county seeking membership under this section has an
elected county executive under 1966 PA 293, MCL 45.501 to 45.521,
or 1973 PA 139, MCL 45.551 to 45.573, the county executive may veto
the resolution. The county board of commissioners for the county
seeking membership under this section may override the veto by a
2/3 vote of the county board of commissioners.
Sec. 7. (1) The authority shall be governed by a board that
shall consist of the following:
(a) Two members from each city in the region that has a
population over 750,000.
(b) Two members from each county in the region that has a
population over 750,000 and less than 1,750,000.
(c) One member from each county in the region that has a
population of 750,000 or less.
(d) Two members from each county in the region that has a
population over 1,750,000 so long as those members are not
residents of a city in that county that has a population over
750,000.
(e) One member and 1 alternate from each governmental
consortium, selected by a majority vote of its governing board. A
member or alternate described in this subdivision is a nonvoting
member of the board.
(2) The chief executive officer of each city that is entitled
to membership on the board shall select the members to represent
the city. The appointment of a board member shall require the
concurrence of a majority of the city council. The members that are
appointed and approved shall serve on the board at the pleasure of
the chief executive officer and can be removed from the board by
the chief executive officer at any time. A board member appointed
under this subsection shall be a resident of the city that the
board member represents.
(3) The chief executive officer of each county that is
entitled to membership on the board shall select the member or
members to represent the county. The appointment of a board member
shall require the concurrence of a majority of the county board of
commissioners. The members that are appointed and approved shall
serve on the board at the pleasure of the chief executive officer
and can be removed from the board by the chief executive officer at
any time. A board member appointed under this subsection shall be a
resident of the county that the board member represents.
(4) The first board shall be appointed within 30 days after
the effective date of this act.
(5) The board shall conduct its first meeting within 60 days
after the effective date of this act.
Sec. 8. (1) The board shall do all of the following:
(a) Select and retain a chief executive officer of the
authority.
(b) Adopt bylaws and rules and procedures governing the board
meetings.
(c) Establish policies to implement day-to-day operation of
the authority.
(d) Review and approve the authority's capital and operating
budgets to assure that the budgets are reported and administered in
accordance with the uniform budgeting and accounting act, 1968 PA
2, MCL 141.421 to 141.440a.
(e) As required by state or federal law to receive or disburse
funds to SMART or any transit system in the region, review, or
review and approve, the capital or operating budgets of SMART or
that transit system.
(f) Conduct an annual audit in accordance with the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a.
(g) Adopt the comprehensive regional public transportation
service plan developed by the authority under section 4.
(h) Develop performance measures of the efficiency and
effectiveness of the provision of public transportation services to
the region.
(i) Develop and specify uniform data requirements to assess
the costs and benefits of public transportation services.
(j) Formulate procedures for establishing priorities in the
allocation of funds for public transportation services.
(k) Establish and implement a standardized reporting and
accounting system under which transit systems that receive funds
directly or indirectly from the authority make quarterly reports on
revenues and expenditures and submit annual and proposed budgets to
the authority.
(l) Establish and implement standards relating to operating
efficiency and cost control of transit systems.
(m) Establish public transportation policy for the region.
(2) Except as otherwise provided in this subsection, the board
shall act by a majority vote of its membership that is entitled to
vote. A vote for the adoption of bylaws, for the adoption of rules
of procedure, or for the transaction of business shall not be
effective unless the vote includes at least 1 affirmative vote from
a member that represents each city in the authority that has a
population of 750,000 or more and at least 1 affirmative vote from
each county in the authority immediately contiguous to each city in
the authority with a population of 750,000 or more.
(3) The board shall meet regularly but not less than
quarterly.
(4) Except as provided in this subsection, a board member
shall not designate another representative to serve in his or her
place on the board. Each county and city entitled to membership on
the board in the region shall have the ability to appoint 1
alternate to serve if a permanent member is absent from a board
meeting. The board shall not engage in proxy voting.
(5) The board shall conduct the business that it may perform
at meetings held in compliance with the open meetings act, 1976 PA
267, MCL 15.261 to 15.275. Public notice of the time, date, and
place of the meetings shall be given in the manner required by the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(6) The board shall appoint a citizens advisory committee that
consists of region residents. Forty percent of the committee shall
be made up of users of public transportation. At least 25% of the
users of public transportation on the committee shall be seniors or
persons with disabilities. Two users of public transportation from
Wayne county, 2 users of public transportation from Oakland county,
2 users of public transportation from Macomb county, 2 users of
public transportation from each city in the authority region that
has a population of 750,000 or more, and 1 user of public
transportation from each additional member county shall be on the
committee. Thirty percent of the committee shall be made up of
individuals from organizations representing seniors and persons
with disabilities. Thirty percent of the committee shall be made up
of individuals representing business, labor, community, and faith-
based organizations. The citizens advisory committee shall meet at
least on a quarterly basis. The citizens advisory committee may
make reports to the board, including recommendations, if any, at
each board meeting. The citizens advisory committee shall do all of
the following:
(a) Review and comment on the comprehensive regional public
transportation service plan and all annual updates.
(b) Advise the board regarding the coordination of functions
between different owners and operators of public transportation
facilities within the region.
(c) Review and comment on the specialized services
coordination plan required by section 10e(4)(c)(i)(A) of 1951 PA 51,
MCL 247.660e.
(d) Provide recommendations on other matters that concern
public transportation in the region.
(7) The board shall establish a ridership committee that
consists of a representative group of transit system riders who
live in the region. The ridership committee shall report their
concerns to the board on a regularly scheduled basis.
(8) The board may change the name of the authority by a
unanimous vote of the members. The board shall notify the state
transportation department within 10 days after a name change is
implemented.
(9) The authority may give assistance to transit systems that
are operated within the region by any city or public agency.
(10) The board shall employ an independent certified public
accounting firm to provide annual financial audits for the
authority and to review the audits of SMART and other operators of
transit systems that receive funds directly or indirectly from the
authority. The cost associated with the audits and reviews required
under this subsection shall be the responsibility of the operator
of the transit system being audited.
(11) The board may elect to become a participating
municipality on behalf of all authority employees, including
acquired employees under section 17, but only under section 2c(2)
of the municipal employees retirement act of 1984, 1984 PA 427, MCL
38.1502c.
Sec. 9. The authority may:
(a) Adopt rules to accomplish the purposes of this act.
(b) Plan, acquire, construct, operate, maintain, replace,
improve, extend, and contract for transportation facilities within
the region. If there is no transit system established or operating
public transportation facilities within 10 miles beyond any portion
of the region, the authority shall have the powers stated in this
subdivision for 10 miles beyond that portion of the region.
(c) Acquire and hold, by purchase, lease, grant, gift, devise,
bequest, condemnation, or other legal means, real and personal
property, including, but not limited to, franchises, easements, and
rights-of-way on, under, or above property within the region. If
there is no transit system established and operating public
transportation facilities within 10 miles beyond any portion of the
region, the authority shall have the powers enumerated in this
subdivision for 10 miles beyond that portion of the region.
(d) Apply for and accept grants, loans, or contributions from
any source. The authority shall use the proceeds of the grants,
loans, or contributions solely for the purposes of this act. The
authority may do anything within its power to secure the grants,
loans, or other contributions.
(e) Sell, lease, or use any property that the authority
acquires. For purposes of this subdivision, "use" includes, but is
not limited to, the leasing of advertising space and the granting
of concessions for the sale of articles or for services.
(f) Grant to public or privately owned utilities the right to
use any property that the authority has acquired.
(g) Grant to any other public transportation facility the
right to use the property that the authority has acquired.
(h) Contract with, or enter into agreements with, any unit of
government including transportation authorities or transit systems
located inside or outside the region or private enterprise for
service contracts, joint use contracts, and contracts for the
construction or operation of any part of the transportation
facilities or for any other reason the authority determines is
necessary.
(i) Borrow money to finance and perform its powers and duties.
(j) Receive the proceeds of taxes, special assessments, and
charges imposed, collected, and returned to the authority under the
law.
(k) Exercise all other powers that are necessary, incidental,
or convenient for the carrying out of the purposes of this article.
Sec. 10. (1) The authority shall fix rates, fares, tolls,
rents, and other charges for the use of public transportation
facilities and the services provided by the authority within the
region that the authority owns, has contracted for, or operates.
(2) The authority shall give a public notice of its intent to
apply for money from the comprehensive transportation fund to the
residents of the counties, cities, townships, and villages affected
by the local transportation program. The authority shall make the
application available for review for 30 days by the residents of
the affected counties, cities, townships, and villages. All public
comments that the authority receives under this subsection shall be
included in its application for comprehensive transportation funds
and transmitted to the board and the state transportation
department.
(3) The authority shall hold a public meeting annually on the
comprehensive regional transportation service plan and all plan
updates. The public meeting shall be held before the adoption of
the plan or update by the board. A summary of the comments made at
the public meeting shall be provided to the board.
(4) The authority shall conduct a public hearing before the
implementation of changes to the fares charged for authority
services. A transcript of the public hearing shall be transmitted
to the board before consideration of proposed fare changes.
Sec. 11. Before any state or federal funds are distributed to
the authority, a financial audit of the operations for the fiscal
year before the most recently completed fiscal year shall be
provided to the department of treasury. The department of treasury
may waive this requirement on a temporary basis. Each audit shall
be conducted in accordance with sections 6 to 13 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433.
Sec. 12. (1) This state guarantees the payment of claims for
benefits arising under the worker's disability compensation act of
1969, 1969 PA 317, MCL 418.101 to 418.941, during the time the
authority is approved as a self-insured employer if all of the
following occur:
(a) The authority ceases to exist or is dissolved.
(b) A successor agency is not created to assume the assets and
liabilities and perform the functions of the authority.
(c) The authority is authorized to secure the payment of
compensation under section 611(1)(a) of the worker's disability
compensation act of 1969, 1969 PA 317, MCL 418.611.
(2) This state shall be entitled to a lien that shall take
precedence over all other liens in the amount of all the payment of
claims made by this state on behalf of the authority under this
section. The lien shall be on the assets of the authority.
Sec. 13. A community or group of communities in the region may
create citizen advisory councils to relate concerns to the board on
a regularly scheduled basis. Citizen advisory councils shall be
composed of members representative of the neighborhoods within the
community or group of communities.
Sec. 14. The authority created under this act shall not be
dissolved and its powers shall not be diminished except as provided
in this act.
Sec. 15. In the exercise of its powers within the region, the
authority is exempt from all of the following acts:
(a) The motor carrier act, 1933 PA 254, MCL 475.1 to 479.43.
(b) The motor bus transportation act, 1982 PA 432, MCL 474.101
to 474.141.
(c) The township and village public improvement and public
service act, 1923 PA 116, MCL 41.411 to 41.419.
Sec. 16. (1) By September 30, 2010, the board shall select and
retain a chief executive officer.
(2) The chief executive officer shall administer the authority
in accordance with the comprehensive regional public transportation
service plan, the operating budget, the general policy guidelines
established by the board, the applicable governmental procedures
and policies, and this act. The chief executive officer is
responsible for the supervision of all authority employees.
(3) All terms and conditions of the chief executive officer's
employment, including length of service, shall be specified in a
written contract.
Sec. 17. (1) The authority shall have the right to bargain
collectively and enter into agreements with labor organizations.
(2) The authority shall be bound by existing collective
bargaining agreements with publicly or privately owned entities
that are acquired, purchased, or condemned by the authority.
Members and beneficiaries of any pension or retirement system
established by the acquired transportation system, and
beneficiaries of any of the benefits established by the acquired
transportation system shall continue to have rights, privileges,
benefits, obligations, and status under the acquired pension or
retirement system or benefits. The authority shall assume the
obligations of public transportation facilities or transit systems
that the authority acquires with regard to all of the following:
(a) Wages and salaries.
(b) Hours and working conditions.
(c) Sick leave and health and welfare benefits.
(d) Pension or retirement benefits, including retiree health
care benefits.
(3) No employee of an acquired transportation system who is
transferred to a position with the authority shall, by reason of
the transfer, be placed in a worse position with respect to any of
the following:
(a) Worker's compensation.
(b) Pension.
(c) Seniority.
(d) Wages.
(e) Sick leave.
(f) Vacation.
(g) Health and welfare benefits.
(h) Any other benefits that he or she enjoyed as an employee
of the acquired transportation system.
(4) Employees of the acquired transportation system who left
the acquired transportation system to enter into military service
of the United States shall have the same rights with respect to the
authority under 1951 PA 263, MCL 35.351 to 35.356, as they would
have had as employees of the acquired transportation system.
(5) For federally funded activities, the authority shall enter
into and comply with the arrangements that the U.S. secretary of
labor certifies as fair and equitable in compliance with 49 USC
5333(b).
(6) Before beginning to operate any new transit service or
public transportation facility or entering into any contract or
other arrangements for the operations of the transit service or
public transportation facility, the authority shall extend to the
employees providing public transportation services directly for or
by contract with the authority, in order of the employee's
seniority with the employee's employer, the first opportunity for
reasonably comparable employment in any new jobs with respect to
the operations for which the employee can qualify after a
reasonable training period. The authority shall provide for the
first opportunity required under this subsection in any contract to
operate a new transit service or public transportation facility.
Employers shall comply with all collective bargaining agreements in
accordance with the national labor relations act, 29 USC 151 to
169, and 1947 PA 336, MCL 423.201 to 423.217.
Sec. 18. (1) The authority shall not levy taxes. Except as
otherwise provided in this section, the authority shall not pledge
the credit or taxing power of the state or any political
subdivision. The authority may pledge the receipts of taxes,
special assessments, or charges that the state or a political
subdivision collects so long as the receipts of the taxes, special
assessments, or charges are returnable and payable by law or
contract to the authority. The authority may pledge the pledge of a
political subdivision of this state of its full faith and credit in
support of its contractual obligations to the authority.
(2) In addition to any other method of financing authorized by
law, public transportation facilities may be financed by 1 or more
of the following:
(a) Fares, rates, tolls, and rents.
(b) Other income or revenue from whatever source available,
including, but not limited to, appropriations and contributions and
other revenue of the participating counties and political
subdivisions in the region.
(c) Grants, loans, and contributions from federal, state, or
other governmental units.
(d) Grants, contributions, gifts, devises, or bequests from
any other source.
(e) Taxes, special assessments, or charges that are imposed by
law and collected by a state or political subdivision and returned
or paid to the authority under the law or pursuant to contract.
Sec. 19. (1) The chief executive officer shall prepare and the
board shall approve an operating budget and a capital budget for
the authority for each fiscal year. Each budget shall be approved
by the February 1 immediately preceding the beginning of the fiscal
year of the authority.
(2) The chief executive officer shall prepare and the board
shall approve a capital program and an operating budget to cover 5
years. The first capital program and operating budgets shall be
submitted to the board within 270 days after selection of the chief
executive officer of the authority. The chief executive officer
shall revise and update the capital program and operating budgets
on an annual basis and submit the revised capital program and
operating budgets to the board each fiscal year.
(3) The authority shall submit its annual operating and
capital budget, financial audits, and construction plans to a
regional governmental and coordinating agency if a regional
governmental and coordinating agency exists in the region. The
submittal shall allow a reasonable time for review and comment.
Sec. 20. (1) Except as otherwise provided in this section and
section 21, competitive bids shall be secured before any purchase
or sale, by contract or otherwise, is made or before any contract
is awarded, or before any contract is renewed, for construction,
alteration, supplies, equipment, repairs, maintenance, and the
rendering of services to the authority.
(2) Except as otherwise provided in this section, all
purchases and sales in excess of $50,000.00 shall be awarded after
advertising in a manner determined by the board and set forth in a
written purchasing policy. Bids shall be publicly opened and read
aloud at a date, time, and place designated in the invitation to
bid. Invitations to bid shall be sent at least 1 week before the
bid opening to at least 3 potential bidders who are qualified
technically and financially to submit bids, or a memorandum shall
be kept on file showing that less than 3 potential bidders who are
qualified and responsible exist in the general market area within
which it is practicable to obtain quotations.
(3) Except as otherwise provided in this section, written
price quotations from at least 3 qualified and responsible vendors
shall be obtained for all purchases and sales of $50,000.00 or less
but greater than $5,000.00, or a memorandum shall be kept on file
showing that less than 3 qualified and responsible vendors exist in
the market area within which it is practicable to obtain
quotations.
(4) Competitive bidding is not required in 1 or more of the
following circumstances:
(a) The purchase of unique articles.
(b) The purchase of articles that cannot be obtained in the
open market.
(c) Purchases or sales under $5,000.00.
(d) The rendering of professional services.
(e) An emergency exists that directly and immediately affects
service or public health, safety, or welfare and that requires
immediate delivery of supplies, materials, equipment, or services
as determined under procedures approved and determined by the
board.
(5) The board shall expressly approve or deny in advance the
purchase of unique articles or articles that cannot be obtained in
the open market without competitive bidding if the amount of the
purchase in either case is in excess of $50,000.00.
Sec. 21. Concessions for the sale of products or the rendition
of services for a consideration on authority property, and renewal
of any of those concessions, shall be awarded by the authority only
pursuant to written specifications after competitive bidding to the
highest responsible bidder under procedures similar to those
required under section 20. The requirement for competitive bidding
does not apply to a concession involving the estimated receipt by
the authority of less than $1,000.00 over the period for which the
concession is granted.
Sec. 22. (1) The authority may acquire facilities, assets, and
rights of existing and operating private or public transportation
systems. Except as provided in section 17, no liability, other than
for equipment and facilities, shall be assumed or contracted for.
Except as otherwise provided in this subsection, the authority
shall not be required to comply with any statutory or charter
limitations or prerequisites to an acquisition.
(2) If the contract between the authority and the existing and
operating private or public transportation system provides only for
operation of the existing system by the authority or only for
acquisition without consideration, the transaction is not
considered a sale of a public utility within any constitutional,
statutory, or charter limitation or within any revenue bond
ordinance.
(3) If the negotiation between the authority and an existing
private or public transportation system does not reach a
conclusion, the authority shall notify the owner of the existing
private or public transportation system in writing that the matter
shall proceed to binding final arbitration under the rules and
procedures of the American arbitration association.
Sec. 23. Except as otherwise provided in this section, claims
that arise in connection with the authority shall be presented as
ordinary claims against a common carrier of passengers for hire.
Written notice of any claim based on injury to persons or property
shall be served on the authority not later than 60 days after the
occurrence that gave rise to the claim. The disposition of the
claim shall rest in the discretion of the authority. Claims that
may be allowed and final judgment shall be paid from authority
funds. Claims against the authority shall only be brought in a
court of competent jurisdiction in a county in the region in which
the authority principally carries on its functions.
Sec. 24. All counties and other political subdivisions and
agencies, public or private, may assist, cooperate with, and
contribute services, money, or property in aid of the authority and
its purposes.
Sec. 25. The property of the authority and its income and
operations are exempt from all taxes of this state or a political
subdivision of this state, and the property of the authority is
exempt from local zoning.
Sec. 26. Records and other writings prepared, owned, used, in
the possession of, or retained by the authority in the performance
of an official function shall be available to the public during
normal business hours in compliance with the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 27. Notwithstanding any other provision of this act, if
an emergency financial manager has been appointed for the authority
under the local government fiscal responsibility act, 1990 PA 72,
MCL 141.1201 to 141.1291, then that emergency financial manager may
exercise the authority and responsibilities provided in this act to
the extent authorized by the local government fiscal responsibility
act, 1990 PA 72, MCL 141.1201 to 141.1291.
Sec. 28. The authority shall prepare and publish a detailed
public report and financial statement of its operations at the end
of each fiscal year.
Sec. 29. The fiscal year of the authority shall commence
October 1 and continue through September 30.
ARTICLE III
Sec. 30. (1) Beginning October 1, 2010, SMART, established in
the metropolitan transportation authorities act of 1967, 1967 PA
204, MCL 124.401 to 124.426, is continued under this article. The
chief executive officer of SMART and SMART board serving under that
act on October 1, 2010, shall continue as the first chief executive
officer of SMART and the SMART board under this article. The
members of SMART are Oakland, Wayne, Monroe, and Macomb counties.
(2) Subject to subsections (3) and (4), a county with a
population of 750,000 or less that chooses not to participate in
SMART may withdraw from SMART by a resolution of withdrawal that is
approved by a 2/3 vote of the members of the county board of
commissioners.
(3) If the county seeking withdrawal under this section has an
elected county executive under 1966 PA 293, MCL 45.501 to 45.521,
or 1973 PA 139, MCL 45.551 to 45.573, the county executive may veto
the resolution. A veto may be overridden by a 3/4 vote of the
county board of commissioners from the county seeking to withdraw
from SMART.
(4) A county that withdraws from SMART shall lose its seat on
the SMART board and shall not, except on the unanimous affirmative
vote of the SMART board, contract for public transportation
services with SMART.
(5) SMART is an agency and instrumentality of the state and
except as provided in this article has all of the powers of a
public corporation if exercised for 1 or more of the following
purposes:
(a) Planning public transportation facilities.
(b) Designing public transportation facilities.
(c) Constructing public transportation facilities.
(d) Operating public transportation facilities.
(e) Administering public transportation facilities.
(f) Acquiring public transportation facilities.
(g) Contracting to provide public transportation facilities.
(h) Maintaining, replacing, improving, and extending public
transportation facilities.
(i) Exercising the powers of a public transportation facility.
(6) If SMART ceases to operate or is dissolved and a successor
agency is not created to assume its assets and liabilities, and
perform its functions, and if SMART is authorized to secure the
payment of compensation under section 611(1)(a) of the worker's
disability compensation act of 1969, 1969 PA 317, MCL 418.611, then
the state guarantees the payment of claims for benefits arising
under the worker's disability compensation act of 1969, 1969 PA
317, MCL 418.101 to 418.941, against SMART during the time they
were approved as a self-insured employer. The state shall be
entitled to a lien which shall take precedence over all other liens
on its portion of the assets of SMART in satisfaction of the
payment of claims for benefits under the worker's disability
compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941.
(7) A community or group of communities in the SMART region
may create citizens planning and advisory councils to relate their
particular concerns to the SMART board on a regularly scheduled
basis. These councils shall have memberships representative of the
various neighborhoods within those cities.
Sec. 32. (1) The SMART board shall be composed of the chief
executive officers of each county in which a city having a
population of 750,000 or more is located within the area served by
SMART and of all other counties immediately contiguous to that
city, and the representative of each chief executive officer to be
designated in the sole discretion of, and serve at the sole
pleasure of, that chief executive officer. Every county with a
population of less than 750,000 that is served by SMART shall have
1 seat on the SMART board. A chief executive officer may designate
an alternate to serve in his or her place on the SMART board.
(2) The SMART board by a majority vote shall adopt bylaws and
rules of procedure governing its meetings. A majority vote for the
adoption of bylaws and rules of procedure and for the transaction
of business shall not be effective unless it includes at least 1
vote from each county in which a city having a population of
750,000 or more is located, and at least 1 vote from each county
immediately contiguous to that city.
(3) The business of the SMART board shall be conducted at a
public meeting of the board held in compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of
the time, date, and place of the meeting shall be given in the
manner required by the open meetings act, 1976 PA 267, MCL 15.261
to 15.275.
(4) Records and other writings prepared, owned, used, in the
possession of, or retained by SMART in the performance of an
official function shall be available in compliance with the freedom
of information act, 1976 PA 442, MCL 15.231 to 15.246.
(5) SMART may do any of the following:
(a) Adopt rules to accomplish the purposes of this act.
(b) Plan, acquire, construct, operate, maintain, replace,
improve, extend, and contract for transportation facilities within
the SMART region. If there is no authority or transit system
established or operating public transportation facilities within 10
miles beyond any portion of the SMART region, SMART shall have the
powers stated in this subdivision for 10 miles beyond that portion
of the SMART region.
(c) Acquire and hold, by purchase, lease, grant, gift, devise,
bequest, condemnation, or other legal means, real and personal
property, including, but not limited to, franchises, easements, and
rights-of-way on, under, or above property within the SMART region.
If there is no authority or transit system established and
operating public transportation facilities within 10 miles beyond
any portion of the SMART region, SMART shall have the powers
enumerated in this subdivision for 10 miles beyond that portion of
the SMART region.
(d) Apply for and accept grants, loans, or contributions from
any source. SMART may use the proceeds of the grants, loans, or
contributions for any of the purposes of this act. SMART may do
anything within its power to secure the grants, loans, or other
contributions.
(e) Sell, lease, or use any property that SMART acquires. For
purposes of this subdivision, "use" includes, but is not limited
to, the leasing of advertising space and the granting of
concessions for the sale of articles or for services.
(f) Grant to public or privately owned utilities the right to
use any property that SMART has acquired.
(g) Grant to any other public transportation facility the
right to use the property that SMART has acquired.
(h) Contract with any unit of government or private enterprise
for service contracts, joint use contracts, and contracts for the
construction or operation of any part of the transportation
facilities.
(i) Receive the proceeds of taxes, special assessments, and
charges imposed, collected, and returned to SMART under the law.
(j) Elect to become a participating municipality for acquired
employees under section 34, under section 2c(2) of the municipal
employees retirement act of 1984, 1984 PA 427, MCL 38.1502c.
(k) Exercise all other powers that are necessary, incidental,
or convenient for the carrying out of the purposes of this article.
(6) SMART shall not spend any public funds on political
activities.
(7) SMART shall take all reasonable measures to provide
regional transportation for senior citizens, citizens with
disabilities, and citizens without the economic means to provide
their own personal transportation. SMART shall take all reasonable
measures to see that regional transportation services for those
citizens are the first services provided by SMART and that regional
transportation services for those citizens are the last services
reduced by SMART if SMART reduces services.
(8) SMART may provide adequate transportation services to
citizens other than senior citizens, citizens with disabilities, or
citizens without the economic means to provide their own personal
transportation only to the extent it does not impair or preclude
SMART's obligations under subsection (7).
Sec. 33. The SMART board shall do all of the following:
(a) Adopt bylaws and rules and procedures governing the SMART
board meetings.
(b) Establish or continue broad policies to implement day-to-
day operation of SMART.
(c) Review and approve the capital and operating budgets of
SMART to assure that the budgets are reported and administered in
accordance with the uniform budgeting and accounting act, 1968 PA
2, MCL 141.421 to 141.440a.
(d) Conduct an annual audit in accordance with the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a.
(e) Employ a general manager of SMART.
Sec. 34. (1) The SMART board shall appoint a general manager
who shall be the chief executive and operating officer of SMART.
The general manager shall have management of the properties and
business of SMART and its employees. He or she shall direct the
enforcement of all resolutions, rules, and regulations of the SMART
board, and shall enter into contracts as necessary under the
general control of the SMART board. The general manager shall serve
at the pleasure of the SMART board.
(2) The general manager shall have the authority to appoint
officers, employees, and agents necessary to carry out the purposes
of SMART under the general policy direction of the SMART board. The
general manager shall classify all the offices, positions, and
grades of regular employment required under a merit rating system;
except that a maximum of 5% of the employees and officers shall be
exempt from the provisions of the merit rating system.
Sec. 35. (1) The general manager shall prepare and the SMART
board shall approve a separate operating and capital budget for
each fiscal year. These budgets shall be approved at least 30 days
before the beginning of each new fiscal year. In addition, capital
program and operating budgets shall be prepared to cover periods of
5 years. These shall be revised and updated annually before
submission to the SMART board.
(2) SMART shall submit its annual operating and capital
budget, financial audits, and construction plans to the authority,
far enough in advance of any final approval requirement for the
board to have a reasonable time for review, comments, and revision.
Sec. 36. SMART may not levy taxes nor may it pledge the credit
or taxing power of the state or any political subdivision except
for the pledging of receipts of taxes, special assessments, or
charges collected by the state or a political subdivision and
returnable or payable by law or by contract to SMART and except for
the pledge by a political subdivision of the state of its full
faith and credit in support of its contractual obligations to SMART
as authorized by law. Transportation facilities shall be financed,
in addition to other methods of financing provided by law, by 1 or
more of the following methods:
(a) By fares, rates, tolls, and rents.
(b) By other income or revenues from whatever source
available, including appropriations or contributions of whatever
nature or other revenues of the participating counties and
political subdivisions within the geographical boundaries of SMART.
(c) By loans from any public agency and grants, contributions,
gifts, devises, or bequests from any source.
(d) By proceeds of taxes, special assessments, or charges
imposed pursuant to law and collected by the state or a political
subdivision and returned or paid to SMART pursuant to law or
contract.
Sec. 37. All claims that may arise in connection with SMART
shall be presented as ordinary claims against a common carrier of
passengers for hire. Written notice of any claim based upon injury
to persons or property shall be served upon SMART no later than 60
days from the occurrence through which such injury is sustained.
Disposition of the claim shall rest in the discretion of SMART, and
all claims that may be allowed and final judgment obtained shall be
paid from SMART funds. Only the courts located in the counties in
which SMART principally carries on its function are the proper
counties in which to commence and try action against SMART.
Sec. 38. (1) SMART may fix rates, fares, tolls, rents, and
other charges for the use of public transportation facilities and
the services provided by SMART within the SMART region.
(2) SMART shall give a public notice of its intent to apply
for money from the comprehensive transportation fund to the
residents of the counties, townships, villages, and cities affected
by the local transportation program and shall make its application
available for a period of 30 days. All comments received by SMART
shall be transmitted to the board, the SMART board, and the state
transportation department along with the application for funds.
(3) SMART shall conduct a public hearing before the SMART
board implements changes to the fares charged for the services
provided by SMART. A transcript of the public hearing shall be
transmitted to the SMART board before the consideration of the fare
changes.
Sec. 39. (1) SMART may borrow money and issue bonds to finance
and to carry out its powers and duties. The bonds shall be payable
from and may be issued in anticipation of payment of the proceeds
of any of the methods of financing as may be provided by law. A
political subdivision within the geographical boundaries of SMART
may contract to make payments, appropriations, or contributions to
SMART of the proceeds of taxes, special assessments, or charges
imposed and collected by the political subdivision or out of any
other funds legally available and may pledge its full faith and
credit in support of its contractual obligation to SMART. The
contractual obligation shall not constitute an indebtedness of a
political subdivision within a statutory or charter debt
limitation. If SMART has issued bonds in anticipation of payments,
appropriations, or contributions to be made to SMART pursuant to
contract by a political subdivision having the power to levy and
collect ad valorem taxes, the political subdivision may obligate
itself by the contract, and thereupon may levy a tax on all taxable
property in the political subdivision, which tax as to rate or
amount will be as provided in section 6 of article IX of the state
constitution of 1963 for contract obligations in anticipation of
which bonds are issued, to provide sufficient money to fulfill its
contractual obligation to SMART.
(2) The bonds of SMART shall be issued and sold in compliance
with the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, except that the bonds may be issued for any period of
years, not exceeding 40 years.
(3) A political subdivision may advance or deliver property to
SMART to finance or carry out its powers and duties. SMART may
agree to repay the advances or pay for the property within a period
not exceeding 10 years, from the proceeds of its bonds or from
other funds legally available to SMART, with or without interest as
may be agreed to at the time of advance or repayment. The
obligation of SMART to make the payment or repayment may be
evidenced by a contract or note that may pledge the full faith and
credit of SMART. The contract or note that is evidence of SMART's
obligation shall not be an obligation under the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(4) A political subdivision desiring to enter into a contract
under subsection (1) shall authorize, by resolution of its
governing body, the execution of the contract, which resolution
shall be published in a newspaper of general circulation within the
political subdivision, and the contract may be executed without a
vote of the electors on the contract upon the expiration of 90 days
after the date of the publication unless, within the 90-day period,
a petition signed by not less than 5% of the registered electors
residing within the limits of the political subdivision is filed
with the clerk of the political subdivision requesting a referendum
upon the execution of the contract, and in that event the contract
shall not be executed until approved by the vote of a majority of
the electors of the political subdivision qualified to vote and
voting on the contract at a general or special election to be held
not more than 90 days after the filing of the petition.
(5) If the bonds or notes sold by SMART involve the pledge or
use of state collected or administered funds, SMART shall seek the
approval of the board and the state transportation commission.
(6) Notwithstanding any other provision of this section, SMART
shall not issue bonds, nor use the revenues of the sale of bonds,
for the construction, reconstruction, maintenance, or operation of
a subway unless approved by concurrent resolution by the
legislature.
Sec. 40. In the exercise of its powers within the SMART
region, SMART is exempt from all of the following acts:
(a) The motor carrier act, 1933 PA 254, MCL 475.1 to 479.43.
(b) The motor bus transportation act, 1982 PA 432, MCL 474.101
to 474.141.
(c) The township and village public improvement and public
service act, 1923 PA 116, MCL 41.411 to 41.419.
Sec. 41. (1) SMART shall have the right to bargain
collectively and enter into agreements with labor organizations.
(2) SMART shall be bound by existing collective bargaining
agreements with publicly or privately owned entities that are
acquired, purchased, or condemned by SMART. Members and
beneficiaries of any pension or retirement system established by
the acquired transportation system, and beneficiaries of any of the
benefits established by the acquired transportation system shall
continue to have rights, privileges, benefits, obligations, and
status under the acquired pension or retirement system or benefits.
SMART shall assume the obligations of public transportation
facilities or transit systems that SMART acquires with regard to
all of the following:
(a) Wages and salaries.
(b) Hours and working conditions.
(c) Sick leave and health and welfare benefits.
(d) Pension or retirement benefits, including retiree health
care benefits.
(3) No employee of an acquired transportation system who is
transferred to a position with SMART shall, by reason of the
transfer, be placed in a worse position with respect to any of the
following:
(a) Worker's compensation.
(b) Pension.
(c) Seniority.
(d) Wages.
(e) Sick leave.
(f) Vacation.
(g) Health and welfare benefits.
(h) Any other benefits that he or she enjoyed as an employee
of the acquired transportation system.
(4) Employees of the acquired transportation system who left
the acquired transportation system to enter into military service
of the United States shall have the same rights with respect to
SMART under 1951 PA 263, MCL 35.351 to 35.356, as they would have
had as employees of the acquired transportation system.
(5) For federally funded activities, SMART shall enter into
and comply with the arrangements that the U.S. secretary of labor
certifies as fair and equitable in compliance with 49 USC 5333(b).
(6) Before beginning to operate any new transit service public
transportation facility or entering into any contract or other
arrangements for the operations of the transit service or public
transportation facility, the authority shall extend to the
employees providing public transportation services directly for or
by contract with the SMART, in order of the employee's seniority
with the employee's employer, the first opportunity for reasonably
comparable employment in any new jobs with respect to the
operations for which the employee can qualify after a reasonable
training period. SMART shall provide for the first opportunity
required under this subsection in any contract to operate a new
transit service or public transportation facility. Employers shall
comply with all collective bargaining agreements in accordance with
the national labor relations act, 29 USC 151 to 169, and 1947 PA
336, MCL 423.201 to 423.217.
Sec. 42. (1) Except as otherwise provided in this section and
section 43, competitive bids shall be secured before any purchase
or sale, by contract or otherwise, is made or before any contract
is awarded for construction, alteration, supplies, equipment,
repairs, maintenance, and the rendering of services to SMART.
(2) Except as otherwise provided in this section, all
purchases and sales in excess of $50,000.00 shall be awarded after
advertising in a manner determined by the SMART board and set forth
in a written purchasing policy. Bids shall be publicly opened and
read aloud at a date, time, and place designated in the invitation
to bid. Invitations to bid shall be sent at least 1 week before the
bid opening to at least 3 potential bidders who are qualified
technically and financially to submit bids, or a memorandum shall
be kept on file showing that less than 3 potential bidders who are
qualified and responsible exist in the general market area within
which it is practicable to obtain quotations.
(3) Except as otherwise provided in this section, written
price quotations from at least 3 qualified and responsible vendors
shall be obtained for all purchases and sales of $50,000.00 or less
but greater than $5,000.00, or a memorandum shall be kept on file
showing that less than 3 qualified and responsible vendors exist in
the market area within which it is practicable to obtain
quotations.
(4) Competitive bidding is not required in 1 or more of the
following circumstances:
(a) The purchase of unique articles.
(b) The purchase of articles that cannot be obtained in the
open market.
(c) Purchases or sales under $5,000.00.
(d) The rendering of professional services.
(e) An emergency exists that directly and immediately affects
service or public health, safety, or welfare and that requires
immediate delivery of supplies, materials, equipment, or services
as determined under procedures approved and determined by the SMART
board.
(5) The SMART board shall expressly approve or deny in advance
the purchase of unique articles or articles that cannot be obtained
in the open market without competitive bidding if the amount of the
purchase in either case is in excess of $50,000.00.
Sec. 43. Concessions for the sale of products or the rendition
of services for a consideration on SMART property shall be awarded
by SMART only pursuant to written specifications after competitive
bidding to the highest responsible bidder under procedures similar
to those required under section 42. The requirement for competitive
bidding does not apply to a concession involving the estimated
receipt by SMART of less than $1,000.00 over the period for which
the concession is granted.
Enacting section 1. This act takes effect October 1, 2010.
Enacting section 2. The metropolitan transportation
authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, is
repealed effective October 1, 2010.
