HOUSE BILL No. 5813


     May 18, 2000, Introduced by Rep. Shackleton and referred to the Committee on Great Lakes and Tourism.


        A bill to amend 1954 PA 99, entitled

   "An act authorizing the international bridge authority of
   Michigan, created by Act No. 237 of the Public Acts of 1935, as
   amended, being sections 254.201 to 254.216, inclusive, of the
   Compiled Laws of 1948, to construct, maintain, repair and operate
   a bridge or tunnel project from the Upper Peninsula of Michigan
   to the province of Ontario, Canada, and providing for the acqui-
   sition and operation of the existing ferry system and buses in
   connection with such project; defining the powers and duties of
   the authority; granting to the authority power to acquire neces-
   sary real and personal property and to exercise the power of con-
   demnation; providing for financing such project by the issuance
   of revenue bonds of the authority, payable solely from tolls and
   other revenues; providing that no debt of the state shall be
   incurred in the exercise of any such powers; providing for the
   collection of tolls and other revenues to pay such bonds and the
   interest thereon and the cost of maintenance, repair and opera-
   tion of such project; exempting from taxes and assessments such
   project and such bonds and the income therefrom; authorizing the
   issuance of revenue refunding bonds; prescribing the rights and
   remedies of the holders of bonds issued under the provisions of
   this act; making an appropriation; and repealing certain acts and
   parts of acts,"

   by amending the title and sections 1, 3, 4, 7, and 16

   (MCL 254.221, 254.223, 254.224, 254.227, and 254.236), section 3



   05346'99 **                                              TJS
                                                 2


   as amended by 1994 PA 44, and by adding section 3a; and to repeal

   acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
                                    TITLE

 2
           An act authorizing the international bridge authority of

 3
      Michigan  , created by Act No. 237 of the Public Acts of 1935, as

 4
      amended, being sections 254.201 to 254.216, inclusive, of the

 5
      Compiled Laws of 1948,  to construct, maintain, repair, and oper-

 6
      ate a bridge or tunnel project from the Upper Peninsula of

 7
      Michigan to the province of Ontario, Canada, and  providing  TO

 8
      PROVIDE for the acquisition and operation of the existing ferry

 9
      system and buses in connection with  such  THE project;

10
       defining  TO PRESCRIBE the powers and duties of the authority  ;

11
      granting to the authority  INCLUDING, BUT NOT LIMITED TO, THE

12
      power to acquire necessary real and personal property and to

13
      exercise the power of condemnation;  providing  TO PROVIDE for

14
      financing  such  THE project by the issuance of revenue bonds of

15
      the authority  ,  payable solely from tolls and other revenues;

16
       providing  TO PROVIDE that no debt of the state shall be

17
      incurred in the exercise of any such powers;  providing  TO

18
      PROVIDE for the collection of tolls and other revenues to pay

19
       such  THE bonds,  and  the interest  thereon
    ON THE BONDS, and

20
      the cost of maintenance, repair, and operation of  such  THE

21
      project;  exempting  TO EXEMPT from taxes and assessments  such
   

22
      THE project and  such  THE bonds and the income  therefrom 
   FROM

23
      THE BONDS;  authorizing  TO AUTHORIZE the issuance of revenue

24
      refunding bonds;  prescribing  TO PRESCRIBE the rights and


   05346'99 **
                                   3

 1
      remedies of the holders of bonds issued under  the provisions of 

 2
      this act;  making  TO MAKE an appropriation; TO PROVIDE FOR THE

 3
      STATE TRANSPORTATION DEPARTMENT TO ASSUME THE POWERS AND DUTIES

 4
      OF THE AUTHORITY UPON RETIREMENT OF THE OUTSTANDING BONDS INCLUD-

 5
      ING, BUT NOT LIMITED TO, THE POWER TO ENTER INTO INTERLOCAL

 6
      AGREEMENTS; and  repealing certain  TO REPEAL acts and parts of

 7
      acts.

 8
           Sec. 1.  As used in this act, the following words  and terms

 9
      shall  have the following meanings, unless the context  shall

10
      indicate another or  INDICATES A different meaning or intent:

11
           (a)  The word "authority" shall mean  "AUTHORITY" MEANS the

12
      international bridge authority of Michigan  ,  created by section

13
      2 of  Act No. 237 of the Public Acts of 1935, being section

14
      254.202 of the Compiled Laws of 1948  1935 PA 237, MCL 254.202,

15
      or, if  said  THE authority  shall be  IS abolished, the
   board,

16
      body, or commission succeeding to the principal functions

17
       thereof  or to whom the powers given by this act to the author-

18
      ity  shall be  ARE given by law.

19
           (b)  The word "project" shall include  "PROJECT" INCLUDES a

20
      bridge or tunnel, overpasses, underpasses, entrance plazas, toll

21
      houses, administration, storage and other buildings and

22
      facilities, and all equipment therefor, and may include buses and

23
      terminal facilities, the existing ferry system, and such

24
      approaches and approach highways as may be determined by the

25
      authority to be necessary to facilitate the flow of traffic or to

26
      connect the project with the existing highway systems, together

27
      with all property, rights, easements, and interests  which may



   05346'99 **
                                   4

 1
      be  acquired by the authority for the construction or operation

 2
      of the project.

 3
           (c)  The word "cost" as applied to the project shall

 4
      embrace  "COST" INCLUDES the cost of construction or acquisition,

 5
      the cost of the acquisition of all land, rights-of-way, property,

 6
      rights, easements, and interests acquired by the authority for

 7
       such  THE construction, the cost of demolishing or removing any

 8
      buildings or structures on land  so  acquired, including the cost

 9
      of acquiring any lands to which  such  buildings or structures

10
      may be moved, the cost of acquiring the existing ferry system  , 

11
      or any portion  thereof  OF THAT FERRY SYSTEM, operating between

12
      Sault Ste. Marie, Michigan, and Sault Ste. Marie in the province

13
      of Ontario, Canada, the purchase price of any buses operated by

14
      the authority, the cost of all machinery and equipment, financing

15
      charges, interest  prior to  BEFORE and during construction and,

16
      if  deemed  CONSIDERED advisable by the authority, for a period

17
      not exceeding 1 year after completion of construction, cost of

18
      traffic estimates and of engineering and legal services, plans,

19
      specifications, surveys, estimates of cost and of revenues, other

20
      expenses necessary or incident to determining the feasibility or

21
      practicability of constructing, REPAIRING, OR IMPROVING the

22
      project, administrative expense, and such other expense as may be

23
      necessary or incident to the construction, REPAIR, OR IMPROVEMENT

24
      of the project, the financing of such project, and the placing

25
      AND MAINTAINING of the project in operation.  Any  moneys  MONEY

26
      paid or advanced to the authority with its approval for traffic

27
      surveys, borings, preparation of plans and specifications, and



   05346'99 **
                                   5

 1
      other engineering services in connection with the construction,

 2
      REPAIR, OR IMPROVEMENT of the project shall be regarded as a part

 3
      of the cost of the project and shall be reimbursed out of the

 4
      proceeds of the revenue bonds issued for the project as

 5
       hereinafter  authorized IN THIS ACT.  COST INCLUDES THE COST TO

 6
      OPERATE, MAINTAIN, REPAIR, OR IMPROVE THE PROJECT.

 7
           (d)  The word "bonds"  "BONDS" or  the words  "revenue

 8
      bonds"  shall mean  MEANS revenue bonds of the authority issued

 9
      under  the provisions of  this act.

10
           (e)  The word "owner" shall include  "OWNER" INCLUDES all

11
      individuals, copartnerships, associations, or corporations and

12
      also municipalities, political subdivisions, and all public agen-

13
      cies and instrumentalities having any title or interest in any

14
      property, rights, easements, and interests authorized to be

15
      acquired by this act.

16
           Sec. 3.  The authority is hereby authorized and empowered to

17
      do the following:

18
           (a)  To adopt by-laws  ADOPT BYLAWS for the regulation of

19
      its affairs and the conduct of its business.

20
           (b)  To adopt  ADOPT an official seal and alter the same at

21
      pleasure.

22
           (c)  To maintain  MAINTAIN an office at  such  THE
   place or

23
      places within the state as it may designate.

24
           (d)  To sue  SUE and be sued in its own name, plead, and be

25
      impleaded.

26
            (e) To elect 1 of the appointed members as

27
      vice-chairperson, a secretary-treasurer who need not be a member



   05346'99 **
                                   6

 1
      of the authority, and such other officers as it shall determine

 2
      necessary, all of whom shall serve at the pleasure of the

 3
      authority. 

 4
           (E)  (f) To determine  DETERMINE the location of the

 5
      project,  to  determine, in its discretion and without reference

 6
      to any other provisions of this act or any other law, the design

 7
      standards and the materials of construction, and  to  construct,

 8
      maintain, repair, and operate the project.

 9
           (F)  (g) To issue  ISSUE revenue bonds of the authority for

10
      any of its corporate purposes, payable solely from the tolls and

11
      revenues pledged for their payment, and to refund its bonds, all

12
      as provided in this act.

13
           (G)  (h) To fix  FIX and revise from time to time and charge

14
      and collect tolls and other charges for the use of the project.

15
           (H)  (i) To establish  ESTABLISH rules and regulations for

16
      the use of the project.

17
           (I)  (j) To acquire  ACQUIRE, hold, and dispose of real and

18
      personal property in the exercise of its powers and the per-

19
      formance of its duties under this act.

20
           (J)  (k) To acquire  ACQUIRE the existing ferry system, or

21
      any portion of that system, operating between Sault Ste. Marie,

22
      Michigan, and Sault Ste. Marie, in the province of Ontario,

23
      Canada, and  to  maintain, repair, and operate this ferry system

24
      or portion of this system until the project is opened for

25
      traffic.







   05346'99 **
                                   7

 1
           (K)  (l) To acquire  ACQUIRE, maintain, repair, and operate

 2
      buses between Sault Ste. Marie, Michigan, and Sault Ste. Marie in

 3
      the province of Ontario, Canada.

 4
           (l)  (m) To make  MAKE and enter into all contracts and

 5
      agreements necessary or incidental to the performance of its

 6
      duties and the execution of its powers under this act.

 7
           (M)  (n) To employ  EMPLOY consulting engineers, attorneys,

 8
      accountants, construction and financial experts, superintendents,

 9
      managers, and  such  other employees and agents as may be neces-

10
      sary in its judgment and  to  fix their compensation.

11
           (N)  (o) To receive  RECEIVE and accept from any federal

12
      agency grants for or in aid of the construction, REPAIR, OR

13
      IMPROVEMENT of the project, and  to  receive and accept aid or

14
      contributions from any source of money, property, labor, or other

15
      things of value, to be held, used, and applied only for the pur-

16
      poses for which such grants and contributions may be made.

17
           (O)  (p) To enter  ENTER into contracts and leases to pro-

18
      vide for the development and use of any real property owned by

19
      the authority in the United States or Canada for customs broker-

20
      ing or for the sale of articles  which are  for export and con-

21
      sumption outside the United States or Canada, respectively, to

22
      the extent that  such  THIS use is not restricted by federal or

23
      Canadian law.  The authority shall obtain proposals before enter-

24
      ing into any contracts or leases for the development and use of

25
      its real property for the sale of articles  which are  for export

26
      and consumption outside of the United States.  The authority

27
      shall advertise for proposals once each week for 2 successive



   05346'99 **
                                   8

 1
      weeks in a newspaper of general circulation in this state.  The

 2
      authority shall open and examine all proposals at a public meet-

 3
      ing of the authority.  The authority may reject any or all pro-

 4
      posals, and shall readvertise, in the event of rejection of all

 5
      proposals, in the manner required by this section.  The revenue

 6
      from these contracts or leases shall be deposited in the fund

 7
      created by section 7.  This subdivision  shall  DOES not  be con-

 8
      strued to  exempt a person from the payment of any motor fuel,

 9
      sales, or other taxes required to be paid under the laws of this

10
      state on articles or fuel sold or brought into this state irre-

11
      spective of whether the articles or fuel is for export or con-

12
      sumption outside the United States or Canada.

13
           (P) ENTER INTO AN INTERLOCAL AGREEMENT WITH THE OWNER OF THE

14
      CANADIAN PORTION OF THE PROJECT OR ITS AUTHORIZED AGENT UNDER

15
      1967 (EX SESS) PA 7, MCL 124.501 TO 124.512, TO PROVIDE FOR JOINT

16
      OPERATIONAL AND POLICY OVERSIGHT AND FOR OPERATION, MAINTENANCE,

17
      REPAIR, AND IMPROVEMENT OF THE PROJECT IN THE UNITED STATES AND

18
      CANADA BY AN ADMINISTRATIVE UNIT WITHIN THE STATE TRANSPORTATION

19
      DEPARTMENT.  THE GOVERNOR SHALL APPOINT THE MEMBERS OF A SEPARATE

20
      JOINT UNITED STATES-CANADIAN BODY CREATED UNDER THE INTERLOCAL

21
      AGREEMENT TO PROVIDE JOINT OPERATIONAL AND POLICY OVERSIGHT OF

22
      THE PROJECT.  AN EMPLOYEE OF THE STATE TRANSPORTATION DEPARTMENT

23
      IS NOT ELIGIBLE FOR APPOINTMENT TO THIS BODY.

24
           (q)  To do  DO all acts and things necessary or convenient

25
      to carry out the powers expressly granted in this act.

26
           SEC. 3A.  IF TAXES OR ASSESSMENTS ARE IMPOSED BY LAW IN

27
      CANADA ON THE CANADIAN PORTION OF THE PROJECT TO BE PAID FROM



   05346'99 **
                                   9

 1
      BRIDGE REVENUE UNDER AN INTERLOCAL AGREEMENT ENTERED INTO

 2
      PURSUANT TO SECTION 3(P), AN EQUAL SUM MAY BE EXPENDED IN

 3
      MICHIGAN FROM BRIDGE REVENUE FOR PURPOSES SIMILAR TO THOSE OF THE

 4
      TAXES OR ASSESSMENTS, FOR REASONABLE APPURTENANCES, OR FOR THE

 5
      MAINTENANCE OR IMPROVEMENT OF ACCESS TO THE BRIDGE.  IF TAXES OR

 6
      ASSESSMENTS ARE PAID DIRECTLY TO A CANADIAN LOCAL UNIT OF GOVERN-

 7
      MENT, AN EQUAL SUM SHALL BE PAID DIRECTLY TO A MICHIGAN LOCAL

 8
      UNIT OF GOVERNMENT.

 9
           Sec. 4.  (1) The authority is hereby authorized and empow-

10
      ered to acquire by purchase, whenever it  shall deem  CONSIDERS

11
      such purchase expedient, solely from funds provided under the

12
      authority of this act, such lands, structures, property, rights,

13
      rights-of-way, franchises, easements, and other interests in

14
      lands, including lands lying under water and riparian rights,

15
      which are located within or without the state, as it  may deem 

16
      CONSIDERS necessary or convenient for the construction, REPAIR,

17
      IMPROVEMENT, and operation of the project, upon such terms and at

18
      such prices as  may be considered by  it CONSIDERS to be reason-

19
      able and THAT can be agreed upon between it and the owner there-

20
      of, and to take title thereto in the name of the authority.

21
           (2) Notwithstanding any contrary provision of law, the city

22
      of Sault Ste. Marie is  hereby  authorized and empowered to

23
      lease, lend, grant, or convey to the authority at its request

24
      upon such terms and conditions as the city  may deem  CONSIDERS

25
      reasonable and fair and without the necessity for any advertise-

26
      ment, order of court, or other action of formality, other than

27
      the regular and formal action of the governing body of the city,



   05346'99 **
                                  10

 1
      any real property which may be necessary or convenient to the

 2
      effectuation of the authorized purposes of the authority, includ-

 3
      ing public highways and other real property already devoted to

 4
      public use.

 5
           (3)  Whenever  IF a reasonable price cannot be agreed upon,

 6
      or  whenever  IF the owner is legally incapacitated,  or is
   

 7
      absent, unknown, or unable to convey valid title, the authority

 8
      is hereby authorized and empowered to acquire by condemnation or

 9
      by the exercise of the power of eminent domain any lands, proper-

10
      ty, rights, rights-of-way, franchises, easements, and other prop-

11
      erty, including public lands, parks, playgrounds, reservations,

12
      highways, or parkways, or parts thereof or rights therein, of any

13
      person, copartnership, association, railroad, public service,

14
      public utility or other corporation, municipality or political

15
      subdivision  deemed  CONSIDERED necessary or convenient for the

16
      construction, REPAIR, OR IMPROVEMENT or the efficient operation

17
      of the project or necessary in restoration of public or private

18
      property damaged or destroyed.  Any such proceedings shall be

19
      conducted in accordance with and subject to the  provisions of

20
      any and all laws applicable to condemnation of property in the

21
      name of the state highway commissioner under the laws of the

22
      state of Michigan, including but not limited to the provisions of

23
      Act No. 149 of the Public Acts of 1911, as amended, being sec-

24
      tions 213.21 to 213.41, inclusive, of the Compiled Laws of 1948;

25
      Act No. 215 of the Public Acts of 1925, being sections 213.151 to

26
      213.153, inclusive, of the Compiled Laws of 1948; and Act No. 352

27
      of the Public Acts of 1925, as amended, being sections 213.171 to



   05346'99 **
                                  11

 1
      213.199, inclusive, of the Compiled Laws of 1948  UNIFORM

 2
      CONDEMNATION PROCEDURES ACT, 1980 PA 87, MCL 213.51 TO 213.75.

 3
      Title to any property acquired by the authority shall be taken in

 4
      the name of the authority.

 5
           (4) If the owner, lessee, or occupier of any property to be

 6
      condemned  shall refuse  REFUSES to remove his OR HER personal

 7
      property  therefrom  FROM THE PROPERTY or give up possession

 8
       thereof  OF THE PROPERTY, the authority may proceed to obtain

 9
      possession in any manner now or hereafter provided by law.

10
           Sec. 7.  The authority is hereby authorized to fix, revise,

11
      charge, and collect tolls for the use of the project, and to con-

12
      tract with any person, partnership, association, or corporation

13
       desiring the use of any part thereof,  for THE placing  thereon
   

14
      OF telephone, telegraph, pipelines, and electric light or power

15
      lines, or for any other purpose, and to fix the terms, condi-

16
      tions, rents, and rates of charges for such use.  Such  THE

   17 tolls shall be  so  fixed and adjusted  in respect of the aggre-

18
      gate of tolls from the project  SO as to provide a fund suffi-

19
      cient with other revenues, if any, to pay  (a)  the cost of main-

20
      taining, repairing, and operating  such  THE project and  (b)
   

21
      the principal of and the interest on  such  THE bonds as  the

22
      same shall  THEY become due and payable, and to create reserves

23
      for  such  THESE purposes.  Such  REVENUE COLLECTED FROM
   THE USE

24
      OR DISPOSITION OF THE PROJECT IS APPROPRIATED EXCLUSIVELY FOR

25
      THOSE PURPOSES.  THE tolls shall not be subject to supervision or

26
      regulation by any other commission, board, bureau, or agency of

27
      the state.  The tolls and all other revenues derived from the



   05346'99 **
                                  12

 1
      project, except  such  THAT part  thereof as may be 
   necessary to

 2
      pay  such  THE cost of maintenance, repair, and operation and to

 3
      provide  such  reserves  therefor  as may be provided for
   in the

 4
      resolution authorizing the issuance of  such  bonds or in the

 5
      trust agreement securing the same, shall be set aside at such

 6
      regular intervals as may be provided in  such  THE resolution or

 7
       such  trust agreement in a sinking fund  which  THAT is
   hereby

 8
      pledged to, and charged with, the payment of the principal of and

 9
      the interest on  such  THOSE bonds as  the same shall  THEY

10
      become due, and the redemption price or the purchase price of

11
      bonds retired by call or purchase as  therein  provided IN THE

12
      RESOLUTION OR TRUST AGREEMENT.  Such  THE pledge  shall be 
   IS

13
      valid and binding from the time when the pledge is made.  ; the 

14
      THE tolls and other revenues or other  moneys  MONEY so pledged

15
      and thereafter received by the authority shall immediately be

16
      subject to the lien of  such  THE pledge without any physical

17
      delivery  thereof  or further act, and the lien of  any such
    THE

18
      pledge  shall be  IS valid and binding  as  against all
   parties

19
      having claims of any kind in tort, contract, or otherwise against

20
      the authority, irrespective of whether  such  THE parties have

21
      notice  thereof  OF THE LIEN.  Neither the  THE resolution
    nor

22
      any  OR trust agreement by which a pledge is created need NOT be

23
      filed or recorded except in the records of the authority.  The

24
      use and disposition of  moneys  MONEY to the credit of  such
    THE

25
      sinking fund  shall be  ARE subject to  the provisions of 
   the

26
      resolution authorizing the issuance of  such  THE bonds or  of

27
      such  THE trust agreement.  Except as may otherwise be provided



   05346'99 **
                                  13

 1
      in  such  THE resolution or  such  trust agreement,
    such  THE

 2
      sinking fund  shall be  IS a fund for all  such  THE bonds
   with-

 3
      out distinction or priority of one over another.

 4
           Sec. 16.  (1) When all bonds issued under  the provisions

 5
      of  this act in connection with the project and the interest

 6
       thereon shall have been  ON THOSE BONDS IS paid or a sufficient

 7
      amount for the payment of  all such  THE bonds and the interest

 8
       thereon  ON THE BONDS to  the  THEIR maturity 
   thereof shall

 9
      have been  IS set aside in trust for the benefit of the bondhold-

10
      ers, that portion of the project in Michigan, if then in good

11
      condition and repair, shall be conveyed by the authority to the

12
      state TRANSPORTATION DEPARTMENT and that portion of the project

13
      in Canada shall be disposed of as directed by the proper authori-

14
      ties in Canada.  Thereupon, the authority shall be dissolved and

15
      all funds of the authority not required for the payment of the

16
      bonds and the interest thereon shall be paid to the state

17
      TRANSPORTATION DEPARTMENT and all machinery, equipment, and other

18
      property belonging to the authority shall be delivered to the

19
      state  , and the bridge shall become a free bridge without any

20
      tolls or charges for its use by the public  TRANSPORTATION

21
      DEPARTMENT WHICH SHALL ASSUME ALL OF THE POWERS AND RESPONSIBILI-

22
      TIES OF THE AUTHORITY UNDER THIS ACT AND SHALL USE THAT PROPERTY

23
      AND FUNDS FOR THE PROJECT.

24
           (2) The authority is hereby authorized and directed to make

25
       such  surveys and studies of the project as may be necessary to

26
      effect the financing authorized by this act at the earliest

27
      practicable time, and for this purpose to employ  such 



   05346'99 **
                                  14

 1
      consulting engineers, traffic engineers, legal and financial

 2
      experts, and  such  other employees and agents as it  may deem
   

 3
      CONSIDERS necessary.  To effect the purpose of this act, the

 4
      state  highway  TRANSPORTATION department shall make available to

 5
      the authority all data in its possession which may be useful to

 6
      the authority in making such surveys and studies.

 7
           Enacting section 1.  (1) Section 2 of 1935 PA 237,

 8
      MCL 254.202, is repealed, effective September 2, 2000.

 9
           (2) Section 19 of 1954 PA 99, MCL 254.239, is repealed.






































   05346'99 **          Final page.                         TJS