HOUSE BILL No. 6015

 

December 2, 2014, Introduced by Rep. Price and referred to the Committee on Local Government.

 

     A bill to amend 1967 PA 204, entitled

 

"Metropolitan transportation authorities act of 1967,"

 

by amending sections 16 and 17 (MCL 124.416 and 124.417), section

 

16 as amended by 2002 PA 328 and section 17 as amended by 1993 PA

 

350.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 16. (1) The authority may borrow money and issue bonds to

 

finance and to carry out its powers and duties. The bonds shall be

 

payable from and may be issued in anticipation of payment of the

 

proceeds of any of the methods of financing described in section 14

 

or elsewhere in this act or as may be provided by law. A political

 

subdivision within the geographical boundaries of the authority may

 

contract to make payments, appropriations, or contributions to the

 

authority of the proceeds of taxes, special assessments, or charges

 


imposed and collected by the political subdivision or out of any

 

other funds money legally available and may pledge its full faith

 

and credit in support of its contractual obligation to the

 

authority. The contractual obligation shall is not constitute an

 

indebtedness of a political subdivision within a statutory or

 

charter debt limitation. If the authority has issued bonds in

 

anticipation of payments, appropriations, or contributions to be

 

made to the authority pursuant to under a contract by a political

 

subdivision having that has the power to levy and collect ad

 

valorem taxes, the political subdivision may obligate itself by the

 

contract , and thereupon may levy a tax on all taxable property in

 

the political subdivision , which tax as to for contract

 

obligations in anticipation of which bonds are issued, to provide

 

sufficient money to fulfill its contractual obligation to the

 

authority. The rate or amount will of the tax shall be as provided

 

in section 6 of article IX of the state constitution of 1963. for

 

contract obligations in anticipation of which bonds are issued, to

 

provide sufficient money to fulfill its contractual obligation to

 

the authority.

 

     (2) The bonds of the authority shall be issued and sold in

 

compliance with the revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821, except that the bonds may be issued for any

 

period of years, not exceeding 40 years.

 

     (3) A public corporation may advance money or deliver property

 

to the authority to finance or to carry out its powers and duties.

 

The authority may agree to repay the advances or pay for the

 

property within a period not exceeding 10 years, from the proceeds

 


of its bonds or from other funds money legally available for that

 

purpose, with or without interest as may be agreed at the time of

 

advance or of repayment. The obligation of the authority to make

 

the repayment or payment may be evidenced by a contract or note or

 

notes, which contract or note may pledge the full faith and credit

 

of the authority.

 

     (4) A political subdivision desiring to enter into a contract

 

under subsection (1) shall authorize, by resolution of its

 

governing body, the execution of the contract. , which Before

 

January 1, 2015, a resolution authorized under this subsection

 

shall be published in a newspaper of general circulation within the

 

political subdivision. , and the Beginning January 1, 2015, a

 

resolution authorized under this subsection shall be published

 

using tier B with a link public notice as provided in the local

 

government public notice act. The contract may be executed without

 

a vote of the electors on the contract upon the expiration of 90

 

days after the date of the publication unless, within the 90-day

 

period, a petition signed by not less than 5% of the registered

 

electors residing within the limits of the political subdivision is

 

filed with the clerk of the political subdivision requesting a

 

referendum upon the execution of the contract, and in that event

 

the contract shall not be executed until approved by the vote of a

 

majority of the electors of the political subdivision qualified to

 

vote and voting on the contract at a general or special election to

 

be held not more than 90 days after the filing of the petition.

 

     (5) If the bonds or notes sold by the authority involve the

 

pledge or use of state collected or administered funds, the

 


authority shall seek the approval of the state transportation

 

commission.

 

     (6) Notwithstanding any other provision of this section, an

 

authority shall not issue bonds , nor and shall not use the

 

revenues of the sale of bonds , for the construction,

 

reconstruction, maintenance, or operation of a subway unless

 

approved by concurrent resolution by the legislature.

 

     (7) Notes issued and contracts entered into under this section

 

are not subject to the revised municipal finance act, 2001 PA 34,

 

MCL 141.2101 to 141.2821.

 

     Sec. 17. (1) Except in for the purchase of unique articles or

 

articles which, for any other reason, cannot be obtained in the

 

open market and except as otherwise provided in this section and in

 

section 24, the authority shall secure competitive bids shall be

 

secured before any purchase or sale, by contract or otherwise is

 

made or before any contract is awarded for construction,

 

alterations, supplies, equipment, repairs, or maintenance or for

 

rendering any services to the authority other than professional

 

services; and the purchase shall be made from or the contract shall

 

be awarded to the lowest responsive and responsible bidder; or a

 

sale to the highest responsive and responsible bidder. The

 

authority may reject any and or all such bids or proposals. A

 

purchase of any a unique article or other articles which that

 

cannot be obtained in the open market shall not be made without

 

express approval of the board where if the amount involved is in

 

excess of $25,000.00.

 

     (2) All Before January 1, 2015, all purchases and sales in

 


excess of $25,000.00 shall be awarded after advertising in a local

 

newspaper of general circulation in the metropolitan area at least

 

2 weeks before the bid opening. Beginning January 1, 2015, all

 

purchases and sales in excess of $25,000.00 shall be awarded after

 

using tier B with a link public notice as provided in the local

 

government public notice act. Bids shall be publicly opened and

 

read aloud at a date, time, and place designated in the invitation

 

to bid. Invitations to bid shall be sent at least 1 week before the

 

bid opening to at least 3 potential bidders who are qualified

 

technically and financially to submit bids, or a memorandum shall

 

be kept on file showing that less than 3 potential bidders who are

 

so qualified technically and financially to submit bids exist in

 

the market area within which it is practicable to obtain bids.

 

     (3) Except as otherwise provided in this section, written

 

price quotations from at least 3 qualified and responsible vendors

 

shall be obtained for all purchases and sales of $25,000.00 or less

 

but over $5,000.00, or a memorandum shall be kept on file showing

 

that less than 3 qualified and responsible vendors so qualified

 

exist in the market area within which it is practicable to obtain

 

quotations.

 

     (4) Purchases or sales under $5,000.00 may be negotiated with

 

or without competitive bidding under procurement procedures as

 

promulgated and established by the general manager.

 

     (5) Competitive bidding requirements may be waived if it is

 

determined by the general manager, or in such other manner as the

 

board may provide, by regulation, that an emergency directly and

 

immediately affecting service, or public health, safety, or welfare

 


requires immediate delivery of supplies, materials, equipment, or

 

services.

 

     (6) Savings achieved by the 1993 amendatory act that added

 

this subsection PA 350 shall be used as 1 funding source for funds

 

to construct the construction of bus shelters at SMART bus stops.

 

In the case of a state trunkline trunk line highway, a bus shelter

 

constructed by SMART may include advertising on the shelter. This

 

project shall be competitively bid and shall be completed within 12

 

months.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 5560 of the 97th Legislature is enacted into

 

law.