November 5, 2008, Introduced by Senator ALLEN and referred to the Committee on Transportation.
A bill to amend 1867 PA 35, entitled
"An act to provide for the formation of street railway companies,
defining their powers and duties and authorizing the construction,
use, maintenance and ownership of street railways for the
transportation of passengers, and for accumulating, storing,
manufacturing, conducting, using, selling, furnishing and supplying
electricity and electric power, by such companies,"
by amending the title and sections 1, 3, 5, 7, 9, 11, 13, 15, 17,
19, 23, and 27 (MCL 472.1, 472.3, 472.5, 472.7, 472.9, 472.11,
472.13, 472.15, 472.17, 472.19, 472.23, and 472.27) and by adding
section 21; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to provide for the formation of nonprofit street
railway companies, defining their powers and duties and authorizing
the construction, use, maintenance and ownership of street railways
for the transportation of passengers, and for accumulating,
storing, manufacturing, conducting, using, selling, furnishing and
supplying electricity and electric power, by such companies; to
prescribe powers and duties of certain state and local agencies and
officials; to provide remedies and penalties; to provide for the
establishment of a transit development finance zone; and to
authorize the use of tax increment financing.
Sec. 1. That street railway companies may be
organized under
the
provisions of this act. This
act shall be known and may be
cited as the "nonprofit street railway company act".
Sec.
3. Such articles of association shall be signed by the
persons
associating in the first instance, and acknowledged before
some
officer authorized by the laws of this state to take
acknowledgment
of deeds, and shall state—
First.
The name by which the corporation shall be known in the
law.
Second.
Definitely and distinctly the purpose for which the
corporation
is formed.
Third.
The amount of their capital stock, and the number of
the
shares thereof.
Fourth.
The names of the stockholders, their respective
residences,
and the number of shares held by each.
Fifth.
The city or village in which the office for the
transaction
of their business shall be located, and where their
business
is to be carried on.
Sixth.
The term of the existence of the corporation, which
shall
not exceed 30 years.
Seventh.
The number of the directors of the corporation, and
the
names of those who shall be directors for the first year. The
legislature finds and declares that there exists in this state a
need to encourage the development of transportation facilities by
authorizing the acquiring, owning, constructing, furnishing,
equipping, completing, operating, improving, and maintaining of
nonprofit street railway companies and systems and that state
assistance in acquiring, owning, constructing, furnishing,
equipping, completing, operating, improving, and maintaining
nonprofit street railway companies and systems in this state is
declared to be a public purpose.
Sec.
5. The amount of the capital stock in every such
corporation
shall be fixed and limited by the stockholders in their
articles
of association, and shall in no case be less than 10,000
dollars,
and shall be divided into shares of 100 dollars each; but
the
capital stock and the number of shares thereof may be increased
at
any lawful meeting of the stockholders; and whenever any such
increase
shall be made, a certificate showing the amount of such
increase,
signed by the president and secretary of the company, and
sealed
with its corporate seal, shall be filed in the office of the
secretary
of state. Any such company by its articles of
association,
or by amendment thereto, approved at any lawful
meeting
of the stockholders by vote of 3/4 in interest of its
capital
stock, shall have power to create and issue certificates
for
2 kinds of stock, namely: General or common stock and preferred
stock
of 1 or more classes; which preferred stock shall at no time
exceed
80 per centum of the actual capital paid in, and shall be
subject
to redemption at not less than par at a certain time to be
fixed
by the by-laws of said corporation, and to be expressed in
the
certificates therefor. And the holder of such preferred stock
shall
be entitled to a fixed dividend, payable quarterly, half
yearly,
or yearly, which said dividend shall be cumulative, payable
at
the time expressed in said certificate, not to exceed 8 per cent
per
annum, before any dividends shall be set apart or paid on the
common
stock. Said corporation shall be controlled by a board of
directors
elected by the preferred and common stockholders,
excepting
when otherwise provided in the articles of association or
amendments
thereto: Provided always, If at any time upon a fair
valuation
of the assets of the corporation the common stock shall
be
impaired in an amount equal to 20 per cent thereof, or any
annual
dividend or accrued dividends for 1 year due on the
preferred
stock shall remain unpaid for 60 days, then holders of
the
preferred stock shall have an equal right with the common
stock,
share and share alike, to participate in the election of
directors
and control of said corporation. If for any reason said
corporation
shall cease business or become insolvent, then after
the
payment of all liabilities and debts, the remainder of the
assets
of such corporation shall be applied first to the payment in
full
of all preferred stock and then unpaid dividends due thereon,
and
the balance divided pro rata, share and share alike, among the
holders
of the common stock. Every corporation organized or
existing
under the provisions of this act may, by its articles of
association,
or by an amendment thereto approved at any lawful
meeting
of stockholders by a vote of 3/4 in interest of its capital
stock,
provide for an issue of common stock of non-par value, in
accordance
with subdivision 2 (being sections 6 to 9 both
inclusive)
of part 2, chapter 2 of Act No. 84 of the Public Acts of
1921.
Nothing in this section shall be construed as relieving or
excepting
any such corporation or any person or persons from
complying
with the provisions of Act No. 144 of the Public Acts of
1909,
as amended by Act No. 177 of the Public Acts of 1911, Act No.
259
of the Public Acts of 1915, and Act No. 381 of the Public Acts
of
1919.
(1) This act shall be construed liberally to effectuate the
legislative intent and the purpose of the act as complete and
independent authorization for the performance of each and every act
and thing authorized in this act and all powers granted in this act
shall be broadly interpreted to effectuate the intent and purposes
of this act and not as a limitation of powers.
(2) The powers conferred in this act upon a street railway
shall be in addition to any other powers the street railway
possesses under law. Except as otherwise provided in this act, the
provisions of this act apply notwithstanding any resolution,
ordinance, or charter provision to the contrary.
Sec.
7. In case it shall happen that an election for directors
shall
not be held as provided the said corporation shall not be,
for
that reason, dissolved, but such election shall be held on some
future
day, to be fixed by the directors holding over, upon giving
the
notice thereof, as in this act provided, and all acts of the
directors
shall be binding upon such corporation. As used in this
act:
(a) "Affected municipality" means the city, village, or
township in which the street railway operates.
(b) "Department" means the department of transportation, the
principal department created under section 350 of the executive
organization act of 1965, 1965 PA 380, MCL 16.450.
(c) "Nonprofit corporation" means that term as defined under
section 108 of the nonprofit corporation act, 1982 PA 162, MCL
450.2108.
(d) "Public street or highway" means any improved thoroughfare
maintained by a road authority that has been dedicated and
constructed in accordance with law.
(e) "Qualified city" means a city in this state that contains
an automated light rail system that operates on an elevated single
track loop of at least 2 miles that is operated and maintained by a
public body corporate formed under the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, for the purpose
of acquiring, owning, constructing, furnishing, equipping,
completing, operating, improving, or disposing of a central
automated transit system.
(f) "Qualified nonprofit corporation" means a nonprofit
corporation organized prior to the effective date of this
amendatory act that added this subdivision that satisfies both of
the following:
(i) The nonprofit corporation includes among the purposes for
which the corporation was organized the authorization to plan,
design, construct, equip, furnish, and operate for itself or by
contract a public transportation facility, that includes, but is
not limited to, street railways, motor bus, tramlines, monorails,
hovercraft, and rail rapid transit.
(ii) The nonprofit corporation is authorized to use in its name
or as its name the words "rail", "light rail", or "metro rail".
(g) "Railroad" means that term as defined under section 109 of
the railroad code of 1993, 1993 PA 354, MCL 462.109.
(h) "Road authority" means a governmental agency having
jurisdiction over public streets and highways. Road authority
includes the department, any other state agency, and
intergovernmental, county, city, and village governmental agencies
responsible for the construction, repair, and maintenance of
streets and highways.
(i) "Street railway" means a nonprofit corporation organized
under this act for the purpose of operating a street railway system
other than a railroad train for transporting persons or property.
(j) "Street railway system" means the facilities, equipment,
and personnel required to provide and maintain a public
transportation system operated on rails principally within a city,
village, or township utilizing streetcars, trolleys, or trams for
the transportation of persons or property.
Sec.
9. The directors shall choose, by ballot, a president who
shall
be 1 of the directors, and they shall also choose a secretary
and
treasurer, who shall hold their offices during such time as the
by-laws
of the company shall prescribe, and until others are chosen
in
their stead; and the directors shall supply any vacancy in the
office
of president, secretary or treasurer, whenever the same
shall
occur.
(1) After the effective date of the amendatory act that added
this subsection, 1 or more persons may organize a nonprofit
corporation under this act and the nonprofit corporation act, 1982
PA 162, MCL 450.2101 to 450.3192, for the purpose of acquiring,
owning, constructing, furnishing, equipping, completing, operating,
improving, and maintaining a street railway system by signing in
ink and filing articles of incorporation for the street railway.
The articles shall include all of the following:
(a) The name of the street railway, which may include the
words "rail", "railway", "street railway", "light rail", or "metro
rail".
(b) The purpose for which the corporation is organized, which
shall be limited to acquiring, owning, constructing, furnishing,
equipping, completing, operating, improving, and maintaining a
street railway system.
(c) The city, village, or township in which the street railway
system will principally operate.
(2) Articles of incorporation shall be filed with the bureau
of commercial services of the department of labor and economic
growth as provided under the nonprofit corporation act, 1982 PA
162, MCL 450.2101 to 450.3192.
(3) The nonprofit corporation act, 1982 PA 162, MCL 450.2101
to 450.3192, shall apply to a street railway organized under this
section unless otherwise provided in or inconsistent with this act.
Sec.
11. The directors may require the subscribers, to the
capital
stock of the company to pay the amount by them respectively
subscribed,
in such manner, and in such installments as they may
deem
proper. If any stockholder shall neglect to pay any
installment
as required by a resolution of the board of directors,
the
said board, shall be authorized to sue for the same, or declare
his
stock and all previous payments thereon forfeited for the use
of
the company; but they shall not declare it so forfeited until
they
shall have caused a notice, in writing, to be served on him
personally,
or by depositing the same in the postoffice properly
directed
to him at the postoffice nearest his usual place of
residence,
stating that he is required to make such payment at the
time
and place specified in said notice, and that if he fails to
make
the same, his stock and all previous payments thereon will be
forfeited
for the use of the company, which notice shall be served
as
aforesaid, at least 60 days previous to the day on which such
payment
is required to be made.
(1) A qualified nonprofit corporation may become a street
railway under this act and acquire, own, construct, furnish, equip,
complete, operate, improve, and maintain a street railway system in
a qualified city if on and after the effective date of the
amendatory act that added this subsection the articles of
incorporation for the qualified nonprofit corporation are amended
to include all of the following provisions:
(a) A provision authorizing the name of the corporation, to
include the words "rail", "railway", or "street railway", "light
rail", or "metro rail".
(b) A provision including among the purposes for which the
corporation is organized the purpose of acquiring, owning,
constructing, furnishing, equipping, completing, operating,
improving, and maintaining a street railway system.
(c) A provision indicating the qualified city in which the
street railway system will principally operate.
(2) Amendments to the articles of incorporation of a nonprofit
corporation under this section shall be adopted and filed with the
bureau of commercial services of the department of labor and
economic growth as provided under the nonprofit corporation act,
1982 PA 162, MCL 450.2101 to 450.3192.
(3) The nonprofit corporation act, 1982 PA 162, MCL 450.2101
to 450.3192, shall apply to a street railway organized under this
section unless otherwise provided in or inconsistent with this act.
Sec.
13. (1) Any A
street railway corporation organized
under
the
provisions of this act, may ,
with the consent of the corporate
authorities
of any city or village, given in and by an ordinance or
ordinances
duly enacted for that purpose, and under such rules,
regulations
and conditions as in and by such ordinance or
ordinances
shall be prescribed, acquire,
own, construct, use,
furnish,
equip, complete, operate, improve, and maintain
and own a
street
railway for the transportation of passengers system in
and
upon
the lines of such streets and ways, in said city or village,
as
shall be designated and granted from time to time for that
purpose,
in the ordinance or ordinances granting such consent; but
no
such highways of a road
authority with the consent of the road
authority, on terms and conditions approved by the road authority.
When operating in and upon the streets and highways of a road
authority, a street railway is subject to rules, regulations, or
ordinances imposed by the road authority. A street railway company
shall not construct any street railway system in and upon the
streets
and highways of any city or village a road authority until
the
street railway company shall have accepted accepts in
writing
the
any terms and conditions upon which they are
permitted to use
said
streets; and any such company may extend, construct, use and
maintain
their road in and along streets or highways of any
township
adjacent to said city or village, upon such terms and
conditions
as may be agreed upon by the company and the township
board
of the township, which agreement, and the acceptance by the
company
of the terms thereof, shall be recorded by the township
clerk
in the records of his township. Any company organized under
the
provisions of this act may construct, use, maintain and own a
street
railway for the transportation of passengers in and along
the
streets and highways of any township upon such terms and
conditions
as may be agreed upon by the company and the township
board
of the township, which agreement, and the acceptance by the
company
of the terms thereof, shall be recorded by the township
clerk
in the records of the township; and any such company imposed
by the road authority. A street railway may acquire, own,
construct,
use, furnish, equip,
complete, operate, improve, and
maintain
and own a street railway system
upon private rights of
way, and
all such companies shall, when it
is necessary for a
street
railway to enter upon and use private
property in such
construction
and operation, for acquiring,
owning, constructing,
furnishing, equipping, completing, operating, improving, and
maintaining a street railway system. The street railway shall have
the
same power and right of eminent domain as is now possessed by
railroad
companies. All proceedings at law or in equity necessary
to
give this section effect shall be the same as proceedings for
the
condemnation of property for companies organized under the
general
railroad law and all statutes relative to the exercise of
the
right of eminent domain for railroad purposes are hereby made
applicable
to proceedings under this act: Provided, That any such
company
may construct, use, maintain and own a street railway as is
herein
provided along any highway heretofore laid out or
constructed
or hereafter to be laid out or constructed by the board
of
county road commissioners or any highway adopted as a county
road
by the board of county road commissioners and under their
control,
upon such terms and conditions as may be agreed upon by
the
company and the said board of county road commissioners, with
the
approval of a majority of the board of supervisors, which
agreement,
and the acceptance by the company of the terms thereof,
shall
be recorded by the county clerk in the records of said board.
Excepting,
however, that whenever the right of way for such
railways
is acquired by the exercise of the power and right of
eminent
domain, the person, association or corporation acquiring
the
same under and by virtue of such power and right, shall not
thereby
acquire any right, title or interest in and to any ores or
minerals
either upon or beneath the surface of such part of the
right
of way, but the same shall remain the property of the owners
of
the land or ores and minerals at the time the right of way is so
acquired.
And said owners may, without let or hindrance, mine, take
and
carry away all such ores and minerals, and in doing so the said
owners
shall not be required to protect the surface of such right
of
way from being damaged or endangered by the removal of such ores
and
minerals. Any corporation organized under this act shall have
the
following additional powers, that is to say: To generate, and
transmit
for itself and furnish and sell electricity and electric
power,
and storing it, and dispensing and dividing it subject to
the
regulations of cities, villages and townships where sold among
those
who wish to purchase or lease it: Provided, That any
corporation
organized under this act which shall engage in the
business
of generating, transmitting, selling or distributing
electricity
shall be subject to the relevant provisions of all laws
of
this state relative to the regulation of the business of
generating,
transmitting, selling or distributing electricity for
any
of the purposes mentioned in this act. to obtain property under
the uniform condemnation procedures act, 1980 PA 87, MCL 213.51 to
213.75, in the same manner as a railroad under section 241 of the
railroad code of 1993, 1993 PA 354, MCL 462.241.
(2) After a road authority consents to the acquiring, owning,
constructing, furnishing, equipping, completing, operating,
improving, and maintaining of a street railway system on the
streets or highways of the road authority or grants a right or
privilege to the street railway, the road authority may not revoke
the consent or deprive the company of the rights and privileges
conferred without affording the street railway procedural due
process of law.
(3) A street railway may do 1 or more of the following:
(a) Acquire by gift, devise, transfer, exchange, purchase,
lease, or otherwise on terms and conditions and in a manner the
street railway considers proper property or rights or interests in
property relating to the operation of the street railway or street
railway system.
(b) Take, transport, or carry and convey persons and property
on a street railway system and receive compensation for that
purpose.
(c) Erect and maintain all necessary and convenient buildings,
structures, stations, depots, fixtures, and machinery for the
accommodation and use of the street railway passengers and property
transported by the street railway.
(d) Regulate the time and manner in which persons and property
may be transported by the street railway and fares or other
compensation may be paid for that purpose. A street railway may
charge just and fair compensation for the use of its street railway
system.
(e) Except as otherwise provided in this subdivision, borrow
money and issue bonds and notes for any indebtedness incurred and
may mortgage their street railway property and rights to secure the
payment of bonds, note, money borrowed, and any and all debts and
liabilities which the street railway may incur. A street railway
shall not use tax increments to repay bonds and notes.
Sec.
15. Any street railway company may also purchase or
acquire,
either at public or private sale, whether judicial or
otherwise;
or may hire any street railway in any city, village or
township
owned by any other corporation or company, together with
all
the real and personal estate belonging thereto, and the rights,
privileges
and franchises thereof, and may use, maintain, and
complete
such road, and may use and enjoy the rights, privileges
and
franchises of such company in the same manner and upon the same
terms
as the company whose road and franchise, so acquired, might
have
done; or may lease, sell and convey its railway, together with
the
rights, privileges and franchises thereof to any other street
railway
company subject to such terms and limitations as may be
expressed
in this act. Every street railway company may also
purchase,
hold, own or take upon lease such real estate, barns,
stables,
buildings, fixtures and property as may be necessary for
the
use and business of their road; and the whole or any part
thereof,
together with their railway fixtures, property and
appurtenances,
rights, privileges and franchises may sell, lease,
dispose
of, pledge or mortgage whenever the corporation shall deem
it
expedient so to do: Provided, however, That no company shall,
under
the provisions hereof, lease, purchase, or acquire a
competing
road. Any street railway may also, as an incident to its
business
and for the better service for the public, acquire, own,
lease
or hire motor vehicles and may, upon compliance with all
laws,
state and municipal, authorizing the operation and regulating
the
use of motor vehicles on the highway, operate the same on and
over
the public highways of this state for the transportation of
such
persons and property as it may lawfully transport on its
railway:
Provided, No such motor vehicle equipment shall be used to
do
a local business in any municipality in this state without the
permission
of the municipality in which such local business is
wholly
carried on. Any street railway may also acquire and own the
capital
stock of any corporation owning or operating motor vehicles
for
the purpose and in the manner hereinbefore stated: Provided
further,
Nothing herein contained shall be understood as obviating
the
necessity for obtaining any franchise now required by law and a
certificate
of public convenience and necessity from the Michigan
public
utilities commission as provided in Act No. 209 of the
Public
Acts of 1923 and any amendments thereto. Subject to
applicable law and any applicable regulations of a county, city,
township, or village, a street railway may do 1 or more of the
following:
(a) Generate, store, transmit, distribute, dispense, furnish,
or use electricity and electric power for the street railway and
the street railway system.
(b) Generate, store, transmit, distribute, dispense, furnish,
or sell electricity and electric power to other persons or
entities.
Sec.
17. (1) In constructing their railways every such company
a
street railway system, a street railway shall
conform to the
grades
established , or which may be established, by the common
council
or other corporate authorities of the city, village or
township,
for the by a road authority
for a public street or
highway
traversed by said railways, nor
shall the company at any
time
the street railway.
(2) A street railway shall not alter or change the grade or
line of any public street or highway, without the consent of the
common
council or other corporate authorities of the city, village
or
township, first had and obtained. road
authority with public
jurisdiction over the public street or highway.
(3) A street railway shall lay and maintain the track of a
street railway system in a manner and with the type of track to
keep the track and the pavement of the public street or highway
adjacent to the track in a state of condition and repair as
prescribed by the road authority with jurisdiction over the public
street or highway.
Sec.
19. The common council or other corporate authorities of
the
city or village, in which any street railway shall be located,
may
from time to time, by ordinance or otherwise, establish and
prescribe
such rules and regulations in regard to said railway, as
may
be required for the grading, paving and repairing the street,
and
the construction of sewers, drains, reservoirs and crossings,
and
the laying of gas and water-pipes, upon, in and along the
streets
traversed by such road, and to prevent obstructions
thereon.
A road authority may
establish and prescribe rules and
regulations applicable to a street railway operating in or upon a
public street or highway under the jurisdiction of a road authority
relating to 1 or more of the following subjects:
(a) Grading, paving, obstruction, or repairing of a street or
highway.
(b) Construction, maintenance, or obstruction of public
service facilities, including water, light, heat, power, sewage
disposal, and transportation.
Sec. 21. (1) If a person refuses to pay a fare owed to a
street railway or refuses to obey regulations established by the
street railway for the convenience and safety of passengers, the
street railway may remove the person from the streetcar, tram, or
trolley at a usual stopping place.
(2) A person who causes or attempts to cause the derailment of
a streetcar, tram, or trolley of a street railway by the placing of
an impediment upon the track of a street railway, whether the
streetcar, tram, or trolley is dislodged from the track or not, or
who by any other means whatsoever willfully endangers or attempts
to endanger the life of any person engaged in the work of the
street railway, or any person traveling on the streetcar, tram, or
trolley of the street railway, is guilty of a felony punishable by
imprisonment for life or any number of years. Proof that the person
intended to injure or endanger the life of any particular person is
not required to prove a violation of this section.
(3) A person who throws a stone, brick, or other missile at a
streetcar, tram, or trolley of a street railway is guilty of a
misdemeanor punishable by a fine of not less than $100.00 or more
than $500.00 or imprisonment for not less than 10 days or more than
90 days, or both.
Sec.
23. If the directors of any company formed under this act
shall
declare or pay any dividend when the company is insolvent, or
the
payment of which would render it insolvent, or which would
diminish
the amount of its capital stock, they and all stockholders
who
shall knowingly accept or receive such dividend, shall be
jointly
and severally individually liable for all the debts of such
company
then existing and for all that shall be thereafter
contracted,
while they shall respectively continue stockholders or
in
office.
(1) At the request of a street railway, the department may
establish a transit development finance zone for a street railway
system if the department determines that it is necessary for the
best interests of the public to promote and finance transit
development in a zone. A parcel shall not be included in more than
1 zone created under this section.
(2) The boundaries of a zone shall be established by the
department and may include parcels that are not greater than 1 mile
in distance from a street railway system operated by the street
railway. Before establishing a zone, the department shall consult
with affected municipalities, counties, street railways, public
transportation agencies, private transportation providers, and any
other person or entity that the department considers necessary
before designating a zone. The department may conduct a planning
study and may designate a zone in advance of implementation of
street railway system service associated with a zone.
(3) The department shall enter into an agreement with the
affected municipalities and the street railway to create a zone.
The agreement shall include all of the following:
(a) The geographic boundaries of the zone, including both of
the following:
(i) The designation of boundaries of the zone in relation to
highways, streets, streams, lakes, other bodies of water, or
otherwise.
(ii) The location and extent of existing streets and other
public facilities within the zone, designating the location,
character, and extent of the categories of public and private land
uses then existing in the zone, including residential,
recreational, commercial, industrial, educational, and other uses,
and including a legal description of the zone.
(b) A tax increment financing plan for the zone.
(c) A description of specific actions to be taken by the
parties under the agreement to help establish the zone.
(d) The requirement that amendments to the agreement must be
approved by the department, affected municipalities, and the street
railway.
(e) Any other material that the department, affected
municipalities, or the street railway considers necessary or
appropriate.
(4) An agreement designating a zone and establishing its
boundaries under subsection (3) and any amendments to the agreement
shall be filed by the department with the secretary of state.
(5) A tax increment financing plan for a zone established
under this section shall include a detailed explanation of the tax
increment procedure and a statement of the estimated impact of tax
increment financing on the assessed value of all taxing
jurisdictions in which the zone is located. The plan shall provide
for the use of part or all of the captured assessed value by the
street railway for the expenses of operating the street railway,
with any portion used clearly stated in the tax increment financing
plan. The department and affected municipalities may exclude from
captured assessed value growth in property value resulting solely
from inflation. The plan shall set forth the method for excluding
growth in property value resulting solely from inflation. Before
including a tax increment financing plan in an agreement under
subsection (3), the department shall provide a reasonable
opportunity to the taxing jurisdictions levying taxes subject to
capture to meet with the department. The department shall fully
inform the taxing jurisdictions of the fiscal and economic
implications of the plan. The taxing jurisdictions may present
their recommendations to the department on the tax increment
financing plan.
(6) Before a tax increment financing plan is implemented, the
department shall enter into a contract with the street railway
included within the zone. The contract shall include, but not be
limited to, terms regarding the distribution of revenue.
(7) The municipal and county treasurers shall transmit tax
increment revenues to the street railway. The street railway shall
expend the tax increment revenues only under the terms of the tax
increment financing plan. Unused funds shall revert proportionately
to the respective taxing bodies. Tax increment revenues shall not
be used to circumvent existing property tax limitations. The
department may abolish the tax increment financing plan if it finds
that the purposes for which it was established are accomplished.
Annually, the street railway, with assistance from the department,
shall submit to the department and the state tax commission a
report on the status of the tax increment financing revenue. The
report shall include all of the following:
(a) The amount and source of tax increment revenue received by
the street railway.
(b) The amount and purpose of expenditures from tax increment
revenue.
(c) The initial assessed value of the zone.
(d) The captured assessed value retained within the zone.
(e) A description of operating expenditures of the street
railway.
(f) Any additional information the department or state tax
commission considers necessary.
(8) The state tax commission may institute proceedings to
compel enforcement of this section. The state tax commission may
promulgate rules necessary for the administration of this section
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328.
(9) The department of treasury and the state tax commission
may assist the department in performing duties and responsibilities
under this section.
(10) As used in this section:
(a) "Assessed value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(b) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of a zone, including the
assessed value of property for which specific local taxes are paid
in lieu of property taxes, exceeds the initial assessed value. The
state tax commission shall prescribe the method for calculating
captured assessed value.
(c) "Initial assessed value" means the assessed value of all
the taxable property within the boundaries of a zone at the time
the tax increment financing plan is approved by the department, as
shown by the most recent assessment roll of the municipality at the
time the plan is adopted. Property exempt from taxation at the time
of the determination of the initial assessed value shall be
included as zero. For the purpose of determining initial assessed
value, property for which a specific local tax is paid in lieu of a
property tax shall not be considered to be property that is exempt
from taxation.
(d) "Parcel" means an identifiable unit of land that is
treated as separate for valuation or zoning purposes.
(e) "Specific local tax" means a tax levied under 1974 PA 198,
MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA
255, MCL 207.651 to 207.668, the technology park development act,
1984 PA 385, MCL 207.701 to 207.718, the commercial rehabilitation
act, 2005 PA 210, MCL 207.841 to 207.856, or 1953 PA 189, MCL
211.181 to 211.182. The initial assessed value or current assessed
value of property subject to a specific local tax shall be the
quotient of the specific local tax paid divided by the ad valorem
millage rate. The state tax commission shall prescribe the method
for calculating the initial assessed value and current assessed
value of property for which a specific local tax was paid in lieu
of a property tax.
(f) "Tax increment revenues" means the amount of ad valorem
property taxes and specific local taxes attributable to the
application of the levy of all taxing jurisdictions upon the
captured assessed value of real and personal property in the zone.
Tax increment revenues do not include any of the following:
(i) Taxes under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(ii) Taxes levied by local or intermediate school districts.
(iii) Ad valorem property taxes attributable either to a portion
of the captured assessed value shared with taxing jurisdictions
within the jurisdictional area of the authority or to a portion of
value of property that may be excluded from captured assessed value
or specific local taxes attributable to the ad valorem property
taxes.
(iv) Ad valorem property taxes excluded by the tax increment
financing plan of the authority from the determination of the
amount of tax increment revenues to be transmitted to the authority
or specific local taxes attributable to the ad valorem property
taxes.
(v) Ad valorem property taxes exempted from capture under
subsection (5) or specific local taxes attributable to the ad
valorem property taxes.
(vi) Ad valorem property taxes specifically levied for the
payment of principal and interest of obligations approved by the
electors or obligations pledging the unlimited taxing power of the
local governmental unit or specific taxes attributable to those ad
valorem property taxes.
(g) "Zone" means a transit development finance zone
established by the department under this section.
Sec.
27. Every company incorporated under this act, for the
purposes
of constructing a railway, shall cease to be a body
corporate,
if within 1 year from the time of filing their articles
of
association with the secretary of state, they shall not have
commenced
the construction of their railway, and expended therein
at
least 10 per cent of their capital stock.
(1) Within 30 days of the effective date of the amendatory act
that added section 21, the secretary of state or any other agency
having records of a street railway company formed under this act
prior to the effective date of the amendatory act that added
section 21 shall certify and transfer the records to the bureau of
commercial services of the department of labor and economic growth.
(2) A street railway is not subject to the railroad code of
1993, 1993 PA 354, MCL 462.101 to 462.451.
Enacting section 1. Sections 2, 4, 6, 8, 10, 12, 14, 16, 18,
20, 22, 24, 25, 28, 29, 30, 31, 31a, 32, 34, 35, and 36 of 1867 PA
35, MCL 472.2, 472.4, 472.6, 472.8, 472.10, 472.12, 472.14, 472.16,
472.18, 472.20, 472.22, 472.24, 472.25, 472.28, 472.29, 472.30,
472.31, 472.31a, 472.32, 472.34, 472.35, and 472.36, are repealed.