January 26, 2012, Introduced by Senators CASPERSON, JOHNSON, KOWALL and WARREN and referred to the Committee on Transportation.
A bill to create a regional transit authority; to provide
regional public transportation; to prescribe certain powers and
duties of the authority and of certain state agencies and
officials; to authorize the levy of a special assessment and to
provide for the issuance of bonds and notes; to collect certain
taxes; to make appropriations; to provide for the pledge of special
assessment revenues and other funds for bond and note payments; and
to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"southeast Michigan regional transit authority act".
Sec. 2. As used in this act:
(a) "Authority" means a regional transit authority formed
under this act.
(b) "Board" means the governing body of an authority.
(c) "City" means a city incorporated under the home rule city
act, 1909 PA 279, MCL 117.1 to 117.38.
(d) "Cost plus construction contract" means a contract under
which the contractor is paid a negotiated amount, regardless of the
expenses incurred by the contractor.
(e) "County executive" means the county executive of a county
or, if the county does not have an elected county executive, the
chair of the county board of commissioners.
(f) "Department" means the state transportation department.
(g) "Governor's representative" means a resident of a public
transit region who is appointed to the board by the governor under
section 5(1)(a).
(h) "Local road agency" means that term as defined in section
9a of 1951 PA 51, MCL 247.659a.
(i) "Public transit" means the movement of individuals and
goods by publicly owned bus, rapid transit vehicle, or other
conveyance that provides general or special service to the public,
but not including school buses or charter or sightseeing service or
transportation that is used exclusively for school purposes. Public
transit includes the movement of individuals and goods by privately
owned bus, railroad car, rapid transit vehicle, or other conveyance
that, under a contract with the authority, provides general or
special service to the public, but not including school buses or
charter or sightseeing service or transportation that is used
exclusively for school purposes. Public transit is a transportation
purpose within the meaning of section 9 of article IX of the state
constitution of 1963.
(j) "Public transit facility" means all plants, equipment,
work instrumentalities, and real and personal property and rights
used or useful for public transit.
(k) "Public transit provider" means a public or private entity
that provides public transit services and includes a contractor
providing services to a public transit provider.
(l) "Public transit region" means an area consisting of the
county in this state with the largest population and the 3 counties
contiguous to that county having the largest populations. Public
transit region may include a county added to an authority under
section 4.
(m) "Public transit system" means a system for providing
public transit in the form of light rail, rolling rapid transit, or
other modes of public transit and public transit facilities to
individuals.
(n) "Rolling rapid transit system" means bus services that may
combine the technology of intelligent transportation systems,
traffic signal priority, cleaner and quieter vehicles, rapid and
convenient fare collection, and integration with land use policy.
Rolling rapid transit may include, but is not limited to, all of
the following:
(i) Exclusive rights-of-way.
(ii) Rapid boarding and alighting.
(iii) Integration with other modes of transportation.
Sec. 3. (1) For a public transit region there is hereby
created an authority, which shall become effective upon the
appointment of all members of the board, which appointments shall
be made as provided in section 5 within 90 days after the effective
date of this act, for the purpose of planning, acquiring, owning,
operating, or causing to be operated a public transit system and
carrying out the rights, duties, and obligations provided for in
this act.
(2) The name of an authority created under subsection (1)
shall be the southeast Michigan regional transit authority.
Sec. 4. (1) A county that is not included in a public transit
region and is not a participant in an authority may petition the
authority to become a part of the public transit region and the
authority, subject to approval of the petition by resolution of the
governing body of the petitioning county.
(2) A petitioning county shall be added to a public transit
region and an authority if both of the following conditions are
satisfied:
(a) The petitioning county is adjacent to a county that is, at
the time of the petition, included in the public transit region.
(b) The addition of the petitioning county to the public
transit region and the authority is approved by the board.
(3) If an authority is levying a special assessment under
section 10(2) or a motor vehicle registration fee under section
10(3), or both, a petitioning county that satisfies the conditions
under subsection (2) is a provisional member of the authority
without voting power or transportation service from the authority
until the special assessment levied by the authority under section
10(2) or the motor vehicle registration fee under section 10(3), or
both, is approved by a majority of the electors of the petitioning
county at the first primary or general election to occur at least
71 days after appointment of a board member representing the
petitioning county under section 5(11).
Sec. 5. (1) An authority shall be directed and governed by a
board consisting of all of the following:
(a) One governor's representative appointed by the governor.
(b) Two individuals appointed by the county executive of a
county within the public transit region that has a population of
not less than 1,200,000 and not more than 1,500,000.
(c) Two individuals appointed by the county executive of a
county within the public transit region that has a population of
not less than 800,000 and not more than 850,000.
(d) Two individuals appointed by the chair of the board of
county commissioners of a county within the public transit region
that has a population of not less than 330,000 and not more than
380,000.
(e) Two individuals appointed by the county executive of a
county within the public transit region that has a population of
not less than 1,800,000 and not more than 2,000,000. One of the 2
individuals appointed under this subdivision shall be a resident of
a city within the public transit region with a population of at
least 600,000.
(f) One individual appointed by the mayor of a city within the
public transit region with a population of at least 600,000.
(2) Members of the board shall serve for fixed terms of 3
years, except that of the members first appointed, 1 of the 2 board
members appointed in each of the counties under subsection (1)(b)
to (e) shall serve for 1 year, the board member appointed under
subsection (1)(f) shall serve for 2 years, and the governor's
representative, 1 of the 2 board members appointed in each of the
counties under subsection (1)(b) to (e), and the member appointed
jointly under subsection (1)(g) shall serve for 3 years.
(3) A board member shall not be an employee of the county or
city appointing the board member under subsection (1) or an
employee of a public transit provider operating in the public
transit region.
(4) A board member shall not be a currently serving elected
officer of this state or a political subdivision of this state.
(5) A board member shall be a resident of and registered
elector in the county or city from which he or she is appointed.
(6) A board member shall have substantial business, financial,
or professional experience relevant to the operation of a
corporation or public transit system.
(7) Upon appointment to the board, a board member shall take
an oath of office. The oath of office shall be consistent with the
constitutional oath of office required under section 1 of article
XI of the state constitution of 1963.
(8) A board member 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.
(9) An individual who is not of good moral character or who
has been 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.
(10) A board member shall exercise due care and conduct
himself or herself in a manner consistent with full accountability,
transparency, and responsibility for his or her actions as a board
member. A board member shall not fraudulently influence, coerce,
manipulate, or mislead his or her fellow board members, the
authority, or any other person in the performance of his or her
duties.
(11) If a county is added to a public transit region under
section 4, the board members representing the transit district
consisting of that county shall be appointed under subsection (1)
within 30 days after the conditions of section 4(2)(a) and (b) have
been satisfied and at least 71 days prior to an election under
section 4(3). If a special assessment levied under section 10(2) or
a motor vehicle registration fee under section 10(3), or both, is
not approved under section 4(3), the appointment of a board member
under this subsection is void.
Sec. 6. (1) Within 30 days after the appointment of the
members of the board under section 5, the board shall hold its
first meeting at a date and time to be determined by the governor's
representative. The governor's representative shall serve ex
officio, without vote, and shall serve as chairperson of the board.
The board members shall elect officers as necessary. The board
shall elect all officers annually.
(2) The business of the board shall be conducted at a public
meeting held in compliance with the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275. Public notice of the date, time, 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. The board shall
adopt bylaws consistent with the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275. After organization, the board shall adopt a
schedule of regular meetings. The board shall meet at least once
each quarter. A special meeting of the board may be called by the
chairperson of the board or as provided in the bylaws of the board.
(3) Actions of the board shall be by simple majority vote of
all serving members of the board, except as follows:
(a) The board shall provide in its bylaws that the following
actions require the approval of a supermajority, not to exceed 4/5
of serving members:
(i) The placing of a question of the levy of a special
assessment under section 10(2) on the ballot by the authority.
(ii) The determination of the rate of, or amount of, any
special assessment to be requested by the authority at an election.
(iii) The placing of a question of approving a motor vehicle
registration fee on the ballot by the authority.
(iv) The determination of the rate of, or amount of, any motor
vehicle registration fee to be requested by the authority at an
election.
(b) The board shall provide in its bylaws that the following
actions require the unanimous approval of all members of the board:
(i) A determination to acquire, construct, operate, or maintain
any form of rail passenger service within the public transit
region.
(ii) A determination to acquire an existing public transit
authority or agency.
(iii) A determination to place on a ballot the question of
acquiring, accepting responsibility for, or obligating itself to
assume liability for or to pay any legacy costs, including, but not
limited to, costs associated with litigation, claims, assessments,
worker's compensation awards or charges, swap losses, pensions,
health care, or other postemployment benefits, of an existing
public transit authority or agency that may be purchased, merged
with, assumed, or otherwise acquired by the authority.
(4) A board shall keep a written or printed record of each
meeting. A written or printed record of each meeting and any other
document or record prepared, owned, used, in the possession of, or
retained by the authority in the performance of an official
function shall be made available to the public under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.
(5) A board shall provide for a uniform system of accounts for
the authority to conform to and for the auditing of the authority's
accounts. The board shall obtain an annual audit of the authority
by an independent certified public accountant and report on the
audit and auditing procedures under sections 6 to 13 of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433.
The audit shall be in accordance with generally accepted government
auditing standards and shall satisfy federal regulations regarding
federal grant compliance audit requirements.
(6) Within 90 days after the first board meeting, a board
shall adopt and maintain a budget for the fiscal year in accordance
with the uniform budget and accounting act, 1968 PA 2, MCL 141.421
to 141.440a.
(7) Within 90 days after the first board meeting, a board
shall establish policies and procedures for the purchase of, the
contracting for, and the providing of supplies, materials,
services, insurance, utilities, third party financing, equipment,
printing, and all other items as needed by the authority to
efficiently and effectively meet its needs using competitive
procurement methods to secure the best value for the authority. The
board shall make all discretionary decisions concerning the
solicitation, award, amendment, cancellation, and appeal of
authority contracts. In establishing policies and procedures under
this subsection, a board shall provide for the acquisition of
professional services, including, but not limited to, architectural
services, consulting services, engineering services, surveying
services, accounting services, services related to the issuance of
bonds, and legal services, in accordance with a competitive,
qualifications-based selection process and procedure for the type
of professional service required by the authority.
(8) A board may not enter into a cost plus construction
contract unless all of the following apply:
(a) The contract cost is less than $50,000.00.
(b) The contract is for emergency repair or construction
caused by unforeseen circumstances.
(c) The repair or construction is necessary to protect life or
property.
(d) The contract complies with state and federal law.
(9) Within 90 days after the first board meeting, the board
shall adopt a procurement policy consistent with the requirements
of this act and federal and state laws relating to procurement. The
procurement policy shall include a requirement that the authority
use its best efforts within the competitive solicitation
requirements of this section to achieve fairness in the number and
value of contracts for goods or services entered into by the
authority with firms based in the public transit region and each
county within the public transit region, consistent with applicable
law.
(10) Nothing in this section shall be construed as creating a
quota or set-aside for any city or any county in the public transit
region, and no quota or set-aside shall be created.
(11) Within 90 days after the first board meeting, the board
shall adopt a policy to govern the control, supervision,
management, and oversight of each contract to which the authority
is a party. Within 90 days after the first board meeting, the board
shall adopt procedures to monitor the performance of each contract
to assure execution of the contract within the budget and time
periods provided under the contract. The monitoring shall include
oversight as to whether the contract is being performed in
compliance with the terms of the contract, this act, and federal
and state law. The chief executive officer or other authorized
employee of the authority shall not sign or execute a contract
until the contract is approved by the board. Within 90 days after
the first board meeting, the board shall establish policies to
ensure that the authority does not enter into a procurement or
employment contract with a person who has been convicted of a
criminal offense related to the application for or performance of a
contract or subcontract with a governmental entity in any state.
The authority shall establish policies to ensure that the authority
does not enter into a procurement or employment contract with a
person who has been convicted of a criminal offense, or held liable
in a civil proceeding, in this state or any other state, that
negatively reflects on the person's business integrity, based on a
finding of embezzlement, theft, forgery, bribery, falsification or
destruction of records, receiving stolen property, violation of
state or federal antitrust statutes, or similar laws. The authority
shall prepare an annual report to the board and each county within
the public transit region detailing all contracts entered into by
the authority during the immediately preceding fiscal year. As used
in this subsection, "person" includes affiliates, subsidiaries,
officers, directors, and managerial employees of a business entity,
or an individual or entity who, indirectly or directly, holds a
pecuniary interest in a business entity of 20% or more.
(12) An authority is not required to use competitive bidding
when acquiring proprietary services, equipment, or information
available from a single source, such as a software license
agreement. An authority may enter into a competitive purchasing
agreement with the federal government, this state, or other public
entities for the purchase of necessary goods or services. An
authority may enter into lease purchases or installment purchases
for periods not exceeding the useful life of the items purchased
unless otherwise prohibited by law. In all purchases made by the
authority, if consistent with applicable federal and state law,
preference shall be given first to products manufactured or
services offered by firms based in the authority's public transit
region, including, but not limited to, the cities and counties in
the public transit region, and second to firms based in this state.
The authority shall actively solicit lists of potential bidders for
authority contracts from each city and each county in the public
transit region. Except as otherwise provided in this section, the
authority shall utilize competitive solicitation for all purchases
authorized under this act unless 1 or more of the following apply:
(a) An emergency directly and immediately affecting service or
public health, safety, or welfare requires the immediate
procurement of supplies, materials, equipment, or services to
mitigate an imminent threat to public health, safety, or welfare,
as determined by the authority or its chief executive officer.
(b) Procurement of goods or services is for emergency repair
or construction caused by unforeseen circumstances when the repair
or construction is necessary to protect life or property.
(c) Procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) Procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) Procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
10.89.
(f) Procurement of goods or services is under a cooperative
purchasing agreement with the federal government, this state, or
another public entity for the purchase of necessary goods and
services at fair and reasonable prices using a competitive
procurement method for authority operations.
(g) The value of the procurement is less than $25,000.00, and
the board has established policies or procedures to ensure that
goods or services with a value of less than $25,000.00 are
purchased by the board at fair and reasonable prices, including a
requirement that for purchases and sales of $25,000.00 or less, but
over $5,000.00, written price quotations from at least 3 qualified
and responsible vendors shall be obtained or a memorandum shall be
kept on file showing that fewer than 3 qualified and responsible
vendors exist in the market area within which it is practicable to
obtain quotations. Procurement of goods or services with a value of
less than $5,000.00 may be negotiated with or without using
competitive bidding as authorized in a procurement policy adopted
by the board.
(13) Notwithstanding any other requirement of this act, if the
authority applies for and receives state or federal funds that
require the authority to comply with procurement or contracting
requirements that are in conflict with this act, the state or
federal requirements shall take precedence over the requirements of
this act.
(14) A board may employ personnel as it considers necessary to
assist the board in performing the powers, duties, and
jurisdictions of the authority, including, but not limited to,
employment of a chief executive officer and other senior executive
and administrative staff. The board shall hire a chief executive
officer and any necessary support staff for the chief executive
officer within 60 days after the first board meeting. Individual
board members shall not hire or be assigned personal staff.
(15) A board shall establish policies to ensure that the board
and the authority do not do either of the following:
(a) Fail or refuse to hire, recruit, or promote; demote;
discharge; or otherwise discriminate against an individual with
respect to employment, compensation, or a term, condition, or
privilege of employment, or a contract with the authority in a
manner that is not in compliance with state or federal law.
(b) Limit, segregate, or classify an employee, a contractor,
or an applicant for employment or a contract in a way that deprives
or tends to deprive the employee, contractor, or applicant of an
employment opportunity or otherwise adversely affects the status of
an employee, contractor, or applicant in a manner that is not in
compliance with state or federal law.
(16) The board shall create a citizens' advisory committee
that consists of public transit region residents. The citizens'
advisory committee shall be composed as follows:
(a) Forty percent of the committee shall be made up of users
of public transportation, as follows:
(i) At least 25% of the users of public transit on the
committee shall be senior citizens or persons with disabilities.
(ii) Two users of public transit from each of the following
counties within the public transit region:
(A) A county that has a population of not less than 1,800,000
and not more than 2,000,000.
(B) A county that has a population of not less than 1,200,000
and not more than 1,500,000.
(C) A county that has a population of not less than 800,000
and not more than 850,000.
(D) A county that has a population of not less than 330,000
and not more than 380,000.
(iii) Two users of public transit from each city in the public
transit region that has a population of 600,000 or more.
(iv) Two users of public transit from each additional member
county not listed in subdivision (ii).
(b) Twenty percent of the committee shall be made up of
individuals from organizations representing senior citizens and
persons with disabilities.
(c) Forty percent of the committee shall be made up of
individuals representing business, labor, community, and faith-
based organizations.
(17) A citizens' advisory committee created under subsection
(16) may meet at least once every quarter. The citizens' advisory
committee may make reports to the board, including recommendations,
at each board meeting. The citizens' advisory committee may do all
of the following:
(a) Review and comment on the comprehensive regional public
transit service plan and all annual updates.
(b) Advise the board regarding the coordination of functions
between different owners and operators of public transit facilities
within the region.
(c) Review and comment on the specialized services
coordination plan required by section 10e of 1951 PA 51, MCL
247.660e.
(d) Upon request of the board, provide recommendations on
other matters that concern public transit in the region.
(18) The board shall create a public transit provider advisory
council that consists of 2 members appointed by each public transit
provider in the public transit region. The public transit provider
advisory council may make reports to the board, including
recommendations, at each board meeting. The public transit provider
advisory council shall only make recommendations to the board on
the following issues:
(a) Coordination of service.
(b) Funding.
(c) Plans.
(d) Specialized services.
(e) Other matters as requested by the board.
Sec. 7. (1) Except as otherwise provided in this act, an
authority may do all things necessary and convenient to implement
the purposes, objectives, and provisions of this act and the
purposes, objectives, and powers vested in the authority or the
board by this act or other law, including, but not limited to, all
of the following:
(a) Adopt and use a corporate seal.
(b) Adopt, amend, and repeal bylaws for the regulation of its
affairs and the conduct of its business.
(c) Sue and be sued in its own name.
(d) Borrow money and issue bonds and notes under this act.
(e) Make and enter into contracts, agreements, or instruments
necessary, incidental, or convenient to the performance of its
duties and execution of its powers, duties, and jurisdictions under
this act with any federal, state, local, or intergovernmental
governmental agency or with any other person or entity, public or
private, upon terms and conditions acceptable to the authority.
(f) Engage in collective negotiation or collective bargaining
and enter into agreements with a bargaining representative as
provided by 1947 PA 336, MCL 423.201 to 423.217.
(g) Solicit, receive, and accept gifts, grants, labor, loans,
contributions of money, property, or other things of value, and
other aid or payment from any federal, state, local, or
intergovernmental agency or from any other person or entity, public
or private, upon terms and conditions acceptable to the authority,
or participate in any other way in a federal, state, local, or
intergovernmental program.
(h) Apply for and receive loans, grants, guarantees, or other
financial assistance in aid of a public transit system from any
state, federal, local, or intergovernmental agency or from any
other source, public or private, including, but not limited to,
financial assistance for purposes of developing, planning,
constructing, improving, or operating a public transit system.
(i) Procure insurance or become a self-funded insurer against
loss in connection with the property, assets, or activities of the
authority.
(j) Indemnify and procure insurance indemnifying board members
from personal loss or accountability for liability asserted by a
person with regard to bonds or other obligations of the authority,
or from any personal liability or accountability by reason of the
issuance of bonds or other obligations or by reason of any other
action taken or the failure to act by the authority.
(k) Invest money of the authority, at the discretion of the
board, in instruments, obligations, securities, or property
determined proper by the board and name and use depositories for
authority money. Investments shall be made consistent with an
investment policy adopted by the board that complies with this act
and 1943 PA 20, MCL 129.91 to 129.97a.
(l) Contract for goods and services as necessary, subject to
section 6.
(m) Employ legal and technical experts, consultants, or other
officers, agents, employees, or personnel, permanent or temporary,
as considered necessary by the board, as permitted by this act.
(n) Contract for the services of persons for rendering
professional or technical assistance, including, but not limited
to, consultants, managers, legal counsel, engineers, accountants,
and auditors, as permitted by this act.
(o) Establish and maintain an office.
(p) Acquire property or rights and interests in property by
gift, devise, transfer, exchange, purchase, lease, or otherwise on
terms and conditions and in a manner the authority considers
proper. Property or rights or interests in property acquired by an
authority may be by purchase contract, lease purchase, agreement,
installment sales contract, land contract, or otherwise. The
acquisition of property by an authority for a public transit system
in furtherance of the purposes of the authority is for a public
use, and the exercise of any other powers granted to the authority
is declared to be a public, governmental, and municipal function,
purpose, and use exercised for a public purpose and matters of
public necessity.
(q) Hold, clear, remediate, improve, maintain, manage,
protect, control, sell, exchange, lease, or grant easements and
licenses on property or rights or interests in property that the
authority acquires, holds, or controls.
(r) Convey, sell, transfer, exchange, lease, or otherwise
dispose of property or rights or interests in property to any
person for consideration on terms and conditions and in a manner
the authority considers proper, fair, and valuable.
(s) Promulgate rules and adopt regulations for the orderly,
safe, efficient, and sanitary operation and use of a public transit
system owned by the authority.
(t) Subject to section 13, use this state's rights-of-way
throughout the public transit region for public transit.
(u) Create separate operating entities.
(v) Do all other things necessary or convenient to exercise
the powers, duties, and jurisdictions of the authority under this
act or other laws related to the purposes, powers, duties, and
jurisdictions of the authority.
(2) Notwithstanding any other provision of this act, the
authority may not acquire, accept responsibility for, or obligate
itself to assume liability for, or pay any legacy costs of an
existing public transit authority or agency that may be purchased,
merged with, assumed, or otherwise acquired in any manner by the
authority, including, but not limited to, costs associated with any
authority or agency's litigation, claims, assessments, worker's
compensation awards or charges, swap losses, pensions, health care,
or other postemployment benefits of an existing transit agency or
authority without first securing an affirmative vote of a majority
of the electors of each member county in the public transit region.
(3) An authority shall adopt a public transit plan for its
public transit region. The authority shall adopt the regional
transit plan approved on December 8, 2008 by the regional transit
coordinating council as its initial plan. The authority may amend
the plan and shall update the plan annually. The authority may
establish and operate new or additional routes and public transit
facilities using various forms of transit modalities. The authority
may employ operating personnel, negotiate collective bargaining
agreements with operating personnel, or own operating assets of a
public transit service within the public transit region. The
authority shall coordinate the operating and capital transit plans
of transit agencies and authorities within the public transit
region.
(4) Subject to available resources, the authority may plan,
design, develop, construct, and operate a rolling rapid transit
system on at least 4 corridors within the public transit region.
The authority, with the approval of the federal transit
administration and in compliance with all applicable federal and
state regulations, shall determine exact routes and station
locations. The authority may design routes to augment, complement,
enhance, replace, or improve other forms of public transit
operating within or on the corridors. Initial plans for a rolling
rapid transit system may include all of the following:
(a) A Woodward corridor line to operate along, on, or near
Woodward avenue between a location in or near the downtown Detroit
station and a location in downtown Birmingham in Oakland county. As
used in this subsection, "downtown Detroit station" means a
location in or near the Campus Martius area of downtown Detroit.
(b) A Gratiot corridor line to operate along, on, or near
Gratiot avenue between the downtown Detroit station and a location
in downtown Mt. Clemens in Macomb county.
(c) A northern cross-county line to operate between the city
of Troy and the city of Mt. Clemens, using a route to be determined
by the authority. The route determined by the authority under this
subdivision shall have stations along Big Beaver road in the city
of Troy and highway M-59 in portions of Oakland and Macomb
counties.
(d) A western cross-county line to operate between the
downtown Detroit station and the Ann Arbor Blake transit center for
a distance of approximately 47 miles. This corridor shall include,
at a minimum, stations in the city of Ypsilanti, Detroit Wayne
county metropolitan airport, and the city of Dearborn. The
authority shall determine the exact route.
(5) Expenses of the authority incurred in the planning and
operation of a rolling rapid transit system are not eligible for a
statewide operating grant under the statewide operating grants
program in section 10e of 1951 PA 51, MCL 247.660e.
(6) The authority may charge fares and enter into contracts
for the services provided by the public transit system as necessary
to provide funds to meet the obligations of the authority.
Sec. 8. (1) Ninety days after the effective date of this act,
an authority shall become the designated recipient for its public
transit region for purposes of applying for federal and state
operating and capital assistance grants under the federal transit
act, Public Law 88-365, and the regulations promulgated under the
federal transit act. The authority may designate a city operating a
transit authority or agency or an authority representing a county
or counties each as a subrecipient of federal and state
transportation funds. To the extent required by the federal transit
act, Public Law 88-365, and the regulations promulgated under the
federal transit act, Public Law 88-365, the authority may execute a
supplemental agreement conferring on a city operating a transit
authority or agency or authority representing a county or counties
the right to receive and dispense grant funds and containing such
other provisions as required by federal law and regulations. The
authority shall submit its application for such funds to the
responsible federal and state agencies in a timely manner. The
application shall designate the distribution of all capital and
operating funds that are to be paid directly to a city operating a
transit authority or agency or to an authority representing a
county or counties. If an authority is a recipient, the authority,
as soon as possible, but not more than 10 business days after
receipt of the funds by the authority, shall remit to a city
operating a transit authority or agency or an authority
representing a county or counties its designated distribution of
funds. Notwithstanding anything in the articles of incorporation of
the authority to the contrary, the designated distribution of
federal and state formula funds, regardless of what entity is the
subrecipient or direct recipient of the funds, shall be determined
using the federal and state statutes and regulations applicable at
the time of distribution as if the designated subrecipients or
direct recipients were allowed to, and did, apply for federal and
state formula funds independently of each other and the authority
created under this act.
(2) Each public transit provider in the public transit region,
including subrecipients designated by the authority under
subsection (1), shall submit an annual report to the authority that
describes and evaluates the efforts of the public transit provider
to coordinate service with other public transit providers in the
public transit region. The report shall include, but is not limited
to, a description of the successful and unsuccessful efforts of the
public transit provider to do all of the following:
(a) Coordinate routes, schedules, fares, and points of
transfer.
(b) Provide information or services to riders that help
facilitate transfers from 1 public transit provider to another.
(c) Eliminate or reduce service overlap and duplication.
(3) The authority shall coordinate service overlap, rates,
routing, scheduling, and any other function that the authority
considers necessary in order to implement or execute the
comprehensive regional transit service plan between the
authorities, agencies, and owners or operators of public transit
facilities within the public transit region.
(4) The authority may issue coordination directives regarding
public transit services, including, but not limited to, routes,
schedules, and fares. The authority shall provide notice of
coordination directives issued under this subsection to owners and
operators of public transit facilities in the public transit
region. The authority may withhold up to 5% of state capital and
operating assistance from an owner or operator of a public transit
facility within the public transit region that fails to comply with
a coordination directive of the authority, as determined by the
board. A coordination directive issued under this subsection
preempts a city, village, or township provision or procedure to the
extent the provision or procedure is in conflict with the
coordination directive.
Sec. 9. (1) Subject to section 7, the authority may acquire
property for a public transit system by purchase, construction,
lease, gift, or devise, either within or without the area served by
the public transit system, and may hold, manage, control, sell,
exchange, or lease property. The authority may utilize any
appropriate statute for the purpose of condemnation. The authority
may only utilize condemnation proceedings to acquire property
located within the public transit region.
(2) Except as otherwise provided in this subsection, the
property of the authority 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 ad valorem property taxes
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155, or other law of this state authorizing taxation
of real or personal property.
(3) 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.
Sec. 10. (1) An authority may raise revenues to fund all of
its activities, operations, and investments consistent with its
purposes. The sources of revenue available to the authority
include, but are not limited to, all of the following:
(a) Fees, fares, rents, or other charges for use of a public
transit system.
(b) Federal, state, or local government grants, loans,
appropriations, payments, or contributions.
(c) Proceeds from the sale, exchange, mortgage, lease, or
other disposition of property acquired by the authority.
(d) Grants, loans, appropriations, payments, proceeds from
repayments of loans made by the authority, or contributions from
public or private sources.
(e) The proceeds of a special assessment levied under
subsection (2).
(f) The proceeds of a motor vehicle registration fee collected
under subsection (3).
(g) Investment earnings on the revenues described in
subdivisions (a) to (f).
(2) An authority may levy a special assessment within the
public transit region only as approved by the board and the
electors of the public transit region.
(3) An authority may collect a motor vehicle registration fee
dedicated to the purpose of public transit, if authorized under the
Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(4) The authority shall ensure that not less than 85% of the
money raised in each member jurisdiction through either a special
assessment under subsection (2) or a motor vehicle registration fee
under subsection (3), or both, is expended on public transit
service provided in that member jurisdiction.
(5) After the first 12 months of operation of a rolling rapid
transit system, and annually thereafter, the authority shall
provide a report to the legislative body of each member
jurisdiction showing the cost of service and revenue generated in
each member jurisdiction.
Sec. 11. (1) For the purpose of acquiring, improving,
enlarging, or extending a public transit system, the authority may
issue self-liquidating revenue bonds under the revenue bond act of
1933, 1933 PA 94, MCL 141.101 to 141.140, or any other act
providing for the issuance of self-liquidating revenue bonds. The
bonds are not a general obligation of the authority, but are
payable solely from the revenue of the public transit system. If
the authority issues self-liquidating revenue bonds with a pledge
of the full faith and credit of the authority, those revenue bonds
are subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(2) The authority may borrow money and issue municipal
securities in accordance with, and exercise all of the powers
conferred upon municipalities by, the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(3) All bonds, notes, or other evidence of indebtedness issued
by an authority, and interest on bonds, notes, or other evidence of
indebtedness, are free and exempt from all taxation in this state,
except for transfer and franchise taxes.
(4) The issuance of bonds, notes, or other evidence of
indebtedness by an authority requires approval of the board.
(5) An agreement entered into under this section is payable
from general funds of the authority or, subject to any existing
contracts, from any available money or revenue sources, including
revenues specified by the agreement, securing the bonds, notes, or
other evidence of indebtedness in connection with which the
agreement is entered into.
Sec. 12. (1) The revenue raised by an authority may be
pledged, in whole or in part, for the repayment of bonded
indebtedness and other expenditures issued or incurred by the
authority.
(2) A financial obligation of the authority is a financial
obligation of the authority only and not an obligation of this
state or any city or county within a public transit region. A
financial obligation of an authority shall not be transferred to
this state or any city or county within a public transit region.
Sec. 13. (1) An authority may acquire, own, construct,
furnish, equip, complete, operate, improve, and maintain a public
transit system on the streets and highways of this state with the
approval of a local road agency, on terms and conditions mutually
agreed to by the authority and the local road agency. Approval
shall be embodied in an operating license agreement with the
authority and each local road agency with operational jurisdiction
over the streets and highways upon which the authority operates or
seeks to operate a public transit system. A local road agency shall
not unreasonably withhold its consent to an operating license
agreement and shall determine whether to consent to an operating
license agreement in an expeditious manner. The operating license
may include provisions concerning the use of dedicated lanes and a
system to change traffic signals in order to expedite public
transit services. Any provision for use of a dedicated lane shall
provide that use of that dedicated lane shall be made available to
emergency services vehicles.
(2) When operating on the streets and highways of a road
agency, the authority is subject to rules, regulations, or
ordinances required to preserve operations of the streets and
highways and to ensure compliance with the rules and regulations of
the funding source used to construct and maintain the streets and
highways.
(3) The authority shall not construct a public transit system
on the streets and highways of a local road agency until there is
an operating license agreement executed by the authority and the
local road agency.
(4) The authority may acquire, own, construct, furnish, equip,
complete, operate, improve, and maintain a public transit system on
public or private rights-of-way and obtain easements when necessary
for the authority to acquire and use private property for
acquiring, owning, constructing, furnishing, equipping, completing,
operating, improving, and maintaining a public transit system.
(5) If a local road agency enters into an operating license
agreement under this section, the local road agency shall not
revoke the consent or deprive the authority of the rights and
privileges conferred without affording the authority procedural due
process of law.
Sec. 14. Local zoning or land use ordinances or regulations do
not apply to a public transit system or a rolling rapid transit
system that is planned, acquired, owned, or operated by an
authority under this act.
Sec. 15. The costs of planning, administering, constructing,
reconstructing, financing, and maintaining state, county, city, and
village roads, streets, and bridges designed primarily for the use
of motor vehicles using tires, including the costs of reasonable
appurtenances to those state, county, city, and village roads,
streets, and bridges, are a transportation purpose within the
meaning of section 9 of article IX of the state constitution of
1963, when such costs are to facilitate a public transit system
that moves individuals or goods with vehicles using tires.
Sec. 16. There is appropriated to each authority created under
this act the sum of $250,000.00 from the comprehensive
transportation fund created in section 10b of 1951 PA 51, MCL
247.660b, to begin implementing the requirements of this act. Any
portion of this amount under this section that is not expended in
the 2012-2013 state fiscal year shall not lapse to the general fund
but shall be carried forward in a work project account that is in
compliance with section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a, for the following state fiscal year.
Enacting section 1. Sections 4a and 4b of the metropolitan
transportation authorities act of 1967, 1967 PA 204, MCL 124.404a
and 124.404b, are repealed.