REGIONAL TRANSIT AUTHORITY AMENDMENTS

House Bill 4637

Sponsor: Rep. Kurt Heise

Committee: Transportation and Infrastructure

Complete to 5-20-13

A SUMMARY OF HOUSE BILL 4637 AS INTRODUCED 4-30-13

Public Act 387 of 2012 created a new act, the Regional Transit Authority Act, which established a new regional transit authority within "a public transit region." Initially the authority created by the act is to be composed of the counties of Wayne, Oakland, Macomb, and Washtenaw; however, other adjacent counties could join the authority under a process provided in the legislation.

House Bill 4637 would amend the Regional Transit Authority Act to do the following.

                    The act currently provides a process for an adjacent county that is not included in the original public transit region to petition to become a part of the region and the transit authority. The bill would also allow an adjacent "municipality" to petition to become a part of the region and authority. A "municipality" would be defined as a city, village, or township.

                    The bill would allow a county or municipality to withdraw from the authority within one year after its creation by a resolution of withdrawal approved by a majority vote of the members elected to and serving on the governing body of that county or municipality.

                    The bill would allow a county or municipality to withdraw from the authority any time after one year after its creation by a resolution of withdrawal approved by a 2/3 vote of the members elected and serving on the governing body of the county or municipality.

Under the bill, if a county seeking to withdraw from an authority has an elected county executive, the county executive could veto a resolution of withdrawal. However, a veto could be overridden by a 2/3 vote of the members elected to and serving on the county board of commissioners of that county.

FISCAL IMPACT:

The bill does not appear to have an impact on state costs or revenues. The bill does not appear to have a direct fiscal impact on local units of government. The regional transit authority created under Public Act 387 does not currently operate transit systems and does not currently raise revenue in its own name.

The creation of the regional transit authority in December 2012 did not affect local transit millages currently raised in Wayne, Oakland, and Macomb counties for the benefit of the Suburban Mobility Authority for Regional Transportation (SMART) or city general fund revenue used in support of the Detroit Transportation Corporation (DTC) and the Detroit Department of Transportation (DDOT).

The bill would affect local revenue only to the extent that a county or municipality imposed a property tax levy, or a local option vehicle registration tax, on behalf of the regional transit authority, and then withdrew from the authority under the processes proposed in the bill.

Legislative Analyst: E. Best

Fiscal Analyst: William E. Hamilton

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.