April 16, 2015, Introduced by Senator HILDENBRAND and referred to the Committee on Transportation.
A bill to amend 1945 PA 327, entitled
"Aeronautics code of the state of Michigan,"
(MCL 259.1 to 259.208) by amending the title, as amended by 2002 PA
90, and by adding chapter VIIA.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act relating to aeronautics in this state; providing for
the
development and regulation thereof; aeronautics; creating a
state aeronautics commission; prescribing powers and duties;
providing
for the licensing, or registration, or and supervision
and control of all aircraft, airports and landing fields, schools
of aviation, flying clubs, airmen, aviation instructors, airport
managers, manufacturers, dealers, and commercial operation in
intrastate commerce; providing for rules pertaining thereto;
prescribing a privilege tax for the use of the aeronautical
facilities on the lands and waters of this state; providing for the
acquisition, development, and operation of airports, landing
fields,
and other aeronautical facilities by the this state, by
political
subdivisions, or by public airport authorities; providing
for
the incorporation of public airport authorities and providing
for
the powers, duties, and obligations of public airport
authorities; providing for the transfer of airport management to
public
airport authorities, including the
transfer of airport
liabilities, employees, and operational jurisdiction; providing
jurisdiction of crimes, torts, and contracts; providing police
powers for those entrusted to enforce this act; providing for civil
liability of owners, operators, and others; making hunting from
aircraft unlawful; providing for a repair station operators lien;
providing for appeals from rules or orders issued by the
commission; providing for the transfer from the Michigan board of
aeronautics to the aeronautics commission all properties and funds
held by the board of aeronautics; providing for a state aeronautics
fund and making an appropriation therefor; prescribing penalties;
and making uniform the law with reference to state development and
regulation of aeronautics.
CHAPTER VIIA.
ACQUISITION AND OPERATION OF AIRPORTS, LANDING FIELDS, AND OTHER
AERONAUTICAL FACILITIES BY REGIONAL AIRPORT AUTHORITIES
Sec. 137. This chapter shall be known and may be cited as the
"regional airport authority act".
Sec. 138. (1) Unless specified otherwise in this chapter,
definitions in chapter II apply to terms used in this chapter.
(2) As used in this chapter:
(a) "Airport" means a publicly owned airport licensed by the
department under section 86 and includes all airport facilities at
the airport. An airport is publicly owned if the portion used for
the landing and taking off of aircraft is owned, operated,
controlled, leased to, or leased by the United States or an agency
or department of the United States, this state, a local government,
or another public corporation.
(b) "Airport facilities" means any of the following at an
airport:
(i) Real or personal property, or an interest in real or
personal property, used for the landing, taking off, taxiing,
parking, or storing of aircraft, or for receiving or discharging
passengers or cargo, an appurtenant area used for an airport
building or other facility, and any appurtenant right-of-way.
(ii) Real or personal property, including an easement, used
for over-flight, noise abatement, a clear zone, a side transition
zone, an environmental mitigation requirement, utilities, a
drainage system, a right-of-way, or any other requirement imposed
as a condition of approving the acquisition, construction,
expansion, or operation of other airport facilities, whether or not
located within the boundaries of the local government.
(iii) Structures, buildings, and improvements, including
aeronautical and nonaeronautical, commercial or noncommercial
structures, concessions, roadways, beacons, markers, communication
systems, and navigational aids.
(iv) Any other improvements or facilities necessary, useful,
or intended for use in the operation of an airport.
(c) "Approval date" means, for airports certificated under 14
CFR part 139, the date of the issuance by the FAA to the regional
authority assuming operational jurisdiction of the airport of a
certificate under 14 CFR part 139 with respect to the airport, and
the concurrence by the FAA of the designation of the regional
authority as a sponsor of the airport, including the FAA's approval
of the assignment of existing grant agreements to the regional
authority, or, for an uncertificated airport, the date specified in
the agreement pursuant to which the airport is to be transferred to
the regional authority, as approved by the FAA.
(d) "Board" means the governing body of a regional authority
appointed under section 140.
(e) "Chief executive officer" means the chief administrative
officer of a regional authority.
(f) "Enplanement" means a domestic, territorial, or
international revenue passenger who boards an aircraft that departs
from the airport.
(g) "FAA" means the Federal Aviation Administration of the
United States Department of Transportation, or any successor
agency.
(h) "Fiscal year" means the annual period that is the fiscal
year of the local government or another annual period established
by the board.
(i) "Legislative body" means the elected body of a local
government that has legislative powers.
(j) "Local government" means a county, city, township, or
village that creates the regional authority.
(k) "Regional authority" means a regional airport authority
created under section 139 and governed by a board.
(l) "Sponsor" means a public agency authorized by 49 USC 47101
to 47134 to submit requests for, accept, and be responsible for
performing all of the assurances associated with accepting grant
agreements with respect to airports from the FAA or this state, and
to perform some duties and responsibilities previously assumed by
the local government that owns or operates the airport before the
transfer of operational jurisdiction of the airport to an authority
created under this chapter by virtue of the local government's
acceptance before the approval date of grants for the benefit of
the airport from the FAA or another agency of the United States or
this state.
Sec. 139. (1) An authority created under this section is a
public body corporate for purposes of state and federal law and
must comply with all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) The uniform budget and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(2) A local government that owns or operates an airport may,
by resolution, declare its intention to incorporate a regional
authority. In the resolution of intent, the legislative body of the
local government shall set a date for a public hearing on the
adoption of a proposed resolution incorporating the regional
authority. The public hearing must be held in accordance with the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275. After the
public hearing, if the legislative body of the local government
intends to proceed with the incorporation of the regional
authority, it must adopt, by majority vote of its members, a
resolution adopting the articles of incorporation of the regional
authority. The adoption of the resolution is subject to any
applicable statutory or charter provisions with respect to the
approval or disapproval by an officer of the local government and
the adoption of an ordinance over the officer's veto. The articles
of incorporation for the regional authority take effect on being
filed with the secretary of state.
(3) The validity of the incorporation of a regional authority
is conclusively presumed unless questioned in an original action
filed in the court of appeals within 60 days after the creation or
incorporation of the regional authority under this chapter. The
court of appeals has original jurisdiction to hear an action under
this subsection. The court shall hear the action in an expedited
manner. The state transportation department is a necessary party in
an action under this subsection.
(4) The department shall not promulgate rules under this
chapter.
Sec. 140. (1) An authority created under this chapter must be
directed and governed by a board consisting of not fewer than 5 and
not more than 9 members, who shall serve 3-year terms. The initial
terms of the board members must be staggered so that the terms of
not less than 20% of the members expire each year.
(2) The articles of incorporation of an authority created
under this chapter must specify the number and qualifications of
the members of the board. However, not more than 45% of the members
may be elected officials, and at least 1 member must be a resident
of a jurisdiction in this state located outside the boundaries of
the local government. At a minimum, a board member must have
experience in aviation, business, accounting, finance, marketing,
engineering, law, real estate, economic development, management, or
another field of value to the operation of the airport. A full-time
paid employee of the local government is not eligible for
appointment to the board.
(3) Within 60 days after incorporation of a regional
authority, the members of the legislative body of the local
government shall appoint the members of the board. Before assuming
the duties of office, a member of the board must qualify by taking
and subscribing to the constitutional oath of office.
(4) A member of the board whose term has expired shall hold
office until the board member's successor is appointed and
qualified, or until resignation or removal. If a member of the
board is removed or is unable to complete his or her term of
office, the legislative body shall appoint a successor to complete
the term. A member of the board may resign by written notice to the
regional authority. The resignation is effective on receipt by the
secretary or chairperson of the regional authority or at a
subsequent time as set forth in the notice of resignation. The
regional authority shall promptly advise the local government in
writing of any vacancy. The legislative body shall appoint a new
member to fill the vacancy within 60 days after the local
government is advised of the notice of resignation by the regional
authority.
(5) The local government may only remove a board member for
cause. Cause includes failure to attend at least 70% of the
meetings of the board each fiscal year, conviction of a felony,
breach of fiduciary duty to the regional authority, and other
conduct as specified in the articles of incorporation or bylaws of
the regional authority.
(6) Within 90 days after a regional authority is incorporated
under section 139, the board of the regional authority shall hold
its first meeting. At the first meeting, the board shall organize
by electing a chairperson, a vice-chairperson, a secretary, and any
additional officers that the board considers necessary. With the
exception of the treasurer, all officers of the board must be
elected annually by, and must be members of, the board.
(7) Except for those powers reserved or delegated to the chief
executive officer of the regional authority by this chapter or by
the board as provided in section 142(3), the board may withdraw
from the chief executive officer any power that the board has
delegated to the chief executive officer.
(8) A regional authority shall not compensate a member of the
board for service to the authority or attendance at a meeting, but
may reimburse a member for an actual and necessary expense incurred
in the discharge of the member's official duties.
(9) A board may act only by resolution or ordinance. Unless
the articles of incorporation or bylaws of the regional authority
require otherwise, a vote of the majority of the board members
present at a meeting of the board or a committee of the board at
which a quorum is present constitutes the action of the board or
committee.
Sec. 141. (1) After organization, a board shall adopt a
schedule of regular meetings and adopt a regular meeting date,
place, and time. The board shall meet not less than quarterly. A
special meeting of the board may be scheduled as provided in the
bylaws of the regional authority, but the board chairperson shall
call a special meeting on request of 2 or more board members.
(2) A board shall appoint an audit committee consisting of at
least 2 members of the board. The audit committee shall meet not
less than annually with the chief financial officer, the chief
executive officer, and the independent auditors of the regional
authority to review reports related to the financial condition,
operations, performance, and management of the regional authority
and airport.
Sec. 142. (1) A board shall appoint a chief executive officer
who must have professional qualifications commensurate with the
responsibility of the jobs to be performed by chief executive
officers. The chief executive officer is an ex officio member of
the board, is not considered in determining the presence of a
quorum, and does not have a vote. The chief executive officer
serves at the pleasure of the board. The board may contract with
the chief executive officer for a commercially reasonable length of
time commensurate with the length of time for contracts of airport
chief executive officers, directors, or managers with similar
responsibilities at other airports or airport authorities in or
outside of this state with a comparable number of annual
enplanements. A contract under this subsection is terminable at
will by the board.
(2) A chief executive officer shall appoint a chief financial
officer who shall serve as the treasurer of the regional authority.
The chief financial officer must have professional qualifications
commensurate with the responsibility of the jobs to be performed by
chief financial officers. Notwithstanding any law to the contrary,
the chief financial officer shall receive all money belonging to
the regional authority or arising or received in connection with
the airport from whatever source derived. The chief financial
officer shall deposit, invest, and pay money of the regional
authority only in accordance with applicable state law and
policies, procedures, ordinances, or resolutions adopted by the
board. On and after the approval date, the regional authority is
considered to be the owner of all money or other property
previously or later received by the treasurer of the local
government or deposited in the treasury of the local government to
the credit of the airport for which operational jurisdiction has
been transferred to the regional authority. The regional authority
is entitled to all interest and other earnings on the money on and
after the approval date. The treasurer of a local government that
receives or has custody of money or other property that belongs to
a regional authority shall promptly transfer the money or other
property to the custody of the chief financial officer of the
regional authority.
(3) The board shall require the chief financial officer and
chief executive officer to post a suitable bond of not less than
$100,000.00 by a responsible bonding company. The regional
authority shall pay the premium of the bond.
(4) The board shall prescribe the duties and responsibilities
of the chief executive officer that are in addition to the duties
and responsibilities imposed on the chief executive officer by this
chapter. The chief executive officer shall supervise, and is
responsible for, all of the following:
(a) The day-to-day operation of the airport, including the
control, supervision, management, and oversight of the functions of
the airport.
(b) The issuance of bonds and notes as approved by the board.
(c) The negotiation, establishment and approval of
compensation and other terms and conditions of employment for
employees of the regional authority, within the budget approved by
the board. However, any collective bargaining agreements for
represented employees are subject to board approval.
(d) The appointment, dismissal, discipline, demotion,
promotion, and classification of employees of the regional
authority.
(e) The negotiation, supervision, and enforcement of other
contracts as approved by the board and entered into by the regional
authority and the supervision of contractors and subcontractors of
the regional authority in their performance of their duties.
(5) The chief executive officer may execute and deliver, and
delegate signatory power for, contracts, leases, obligations, and
other instruments approved by the board or for which power to
approve has been delegated to the chief executive officer of the
regional authority by this chapter or by action of the board. The
chief executive officer has all powers incident to the performance
of his or her duties that are prescribed by this chapter or by the
board. The board may delegate additional powers to the chief
executive officer not enumerated in this chapter. If the chief
executive officer is temporarily absent or disabled, he or she may
designate a qualified person as acting chief executive officer to
perform the duties of the office. If the chief executive officer
fails or is unable to designate an acting chief executive officer,
the board shall designate an acting chief executive officer for the
period of absence or disability of the chief executive officer.
(6) A regional authority shall establish procurement policies
and procedures consistent with the procurement policies of the FAA
and any applicable state laws or rules, including any competitive
bidding requirements.
(7) A regional authority may enter into a lease purchase or
installment purchase contract for a period not to exceed the
anticipated useful life of the item purchased. The authority may
enter into a cooperative purchasing agreement with this state or
another public entity for the purchase of goods, including, but not
limited to, recycled goods, and services necessary for the
authority.
(8) A member of the board or an officer, appointee, or
employee of a regional authority is a public servant under 1968 PA
317, MCL 15.321 to 15.330, and is subject to any other applicable
law with respect to conflicts of interest. The board shall
establish an ethics policy governing the conducting of airport
business and the conduct of airport employees. A regional authority
shall establish policies that are no less stringent than those
provided for public officers and employees by 1973 PA 196, MCL
15.341 to 15.348, and coordinate efforts for the regional authority
to preclude the opportunity for and the occurrence of transactions
by the regional authority that would create a conflict of interest
involving members of the board or employees of the authority.
(9) A member of the board or an officer, appointee, or
employee of the regional authority is not subject to personal
liability when acting in good faith within the scope of his or her
authority and is not subject to liability for any liability of the
regional authority. The board may defend and indemnify a member of
the board or an officer, appointee, or employee of the regional
authority against liability arising out of the discharge of his or
her official duties. A regional authority may indemnify and procure
insurance indemnifying members of the board and officers,
appointees, and employees of the regional authority from personal
loss or accountability for liability asserted by a person with
regard to bonds or other obligations of the regional authority, or
from any personal liability or accountability by reason of the
issuance of the bonds or other obligations or by reason of any
other action taken or the failure to act by the regional authority.
The regional authority may also purchase and maintain insurance on
behalf of any person against any liability asserted against the
person and incurred by the person in any capacity or arising out of
the status of the person as a member of the board or an officer or
employee of the regional authority, whether or not the regional
authority would have the power to indemnify the person against that
liability under this subsection. A regional authority, pursuant to
bylaw, contract, agreement, or resolution of its board, may
obligate itself in advance to defend and indemnify persons.
(10) A regional authority shall indemnify and hold harmless
the local government for any civil claim existing or any civil
action or proceeding pending by or against the local government
involving or relating to the airport, airport facilities, or any
civil liability related to the obligations of the local government
issued or incurred with respect to the airport that was pending at
the time of, or that was incurred before, the transfer of
operational jurisdiction of the airport to the regional authority.
Sec. 143. (1) A regional authority may do any of the
following:
(a) Adopt a corporate seal.
(b) Sue or be sued in any court of this state or file suit in
any federal court.
(c) Plan, promote, extend, maintain, acquire, purchase,
construct, install, improve, repair, enlarge, and operate all
airports and airport facilities under the operational jurisdiction
of or owned by the regional authority.
(d) Assume and perform the obligations and the covenants
related to the airport that are contained in an agreement or other
document by the local government or between the local government
and the state or the FAA relative to grants for the airport or
airport facilities.
(e) Acquire, by grant, purchase, devise, lease, the exercise
of the right of eminent domain, or otherwise, and hold real and
personal property, in fee simple or any lesser interest or by
easement, as the regional authority considers necessary either for
the construction of airport facilities or for the efficient
operation or extension of any airport facilities acquired or
constructed or to be constructed under this chapter, and, except as
otherwise provided by this act, hold in its name, lease, and
dispose of all real and personal property owned by or under the
operational jurisdiction of the regional authority. The acquisition
of land by a regional authority for an airport or airport
facilities in furtherance of the purposes of the regional
authority, and the exercise of any other powers of the regional
authority, are public, governmental, and municipal functions,
purposes and uses exercised for a public purpose, and matters of
public necessity.
(f) Enter into all contracts and agreements necessary or
incidental to the performance of its duties and execution of its
powers under this chapter with a department or agency of the United
States, with a state or local governmental agency, or with another
person, public or private, on terms and conditions acceptable to
the regional authority consistent with section 142(6).
(g) Have and exercise exclusive responsibility to study and
plan any improvements, expansion, or enhancements that affect the
airport, and commission planning, engineering, economic, and other
studies to provide information for making decisions about the
location, design, management, and other features of the airport or
airport facilities.
(h) Exercise responsibility for developing all aspects of the
airport and airport facilities, including, but not limited to, all
of the following:
(i) The location of terminals, hangars, aids to air
navigation, parking lots and structures, cargo facilities, and all
other facilities and services necessary to serve passengers and
other customers of the airport.
(ii) Street and highway access and egress with the objective
of minimizing, to the extent practicable, traffic congestion on
access routes in the vicinity of the airport.
(iii) Participation in demonstration programs and economic
development.
(i) Act as a sponsor and submit requests for, accept, and be
responsible to perform all of the assurances associated with
accepting grants from the FAA or another agency of the United
States or of this state with respect to the airport under the
operational jurisdiction of the regional authority, and perform the
duties and responsibilities previously assumed by the local
government by virtue of its acceptance of grants from the FAA or
another agency of the United States or this state.
(j) Enter into agreements to use the facilities or services of
this state, a subdivision or department of this state, a county or
municipality, or the federal government or an agency of the federal
government as necessary or desirable to accomplish the purposes of
this chapter for consideration or pursuant to a cost-allocation
formula in compliance with its obligations under applicable federal
law, regulations, and assurances associated with accepting grants
from the FAA or another agency of the United States or this state,
including, but not limited to, policies of the FAA prohibiting
revenue diversion or the payment of fees exceeding the value of
services provided by a governmental agency.
(k) Allow this state, a subdivision or department of this
state, a county or municipality, or the federal government or an
agency of the federal government to use airport facilities or the
services of the regional authority as necessary or desirable to
accomplish the purposes of this chapter, for consideration
acceptable to the regional authority in compliance with its
obligations under applicable federal law, regulations, and
assurances associated with accepting grants from the FAA or another
agency of the United States or this state.
(l) Adopt and enforce in a court of competent jurisdiction of
this state reasonable rules, regulations, and ordinances for the
orderly, safe, efficient, and sanitary operation and use of airport
facilities, and establish civil and criminal penalties for the
violation of rules, regulations, and ordinances authorized under
this chapter to the same extent as the local government.
(m) Enter into exclusive or nonexclusive contracts, leases,
franchises, or other arrangements with any person or persons for
granting the privilege of using, improving, or having access to the
airport, the airport facilities, or a portion of the airport or the
airport facilities, for commercial airline-related purposes
consistent with its obligations under applicable federal law,
regulations, and assurances associated with accepting grants from
the FAA or another agency of the United States or this state.
(n) Enter into exclusive or nonexclusive contracts, leases, or
other arrangements not described in subdivision (m) for
commercially reasonable terms consistent with its obligations under
applicable federal law, regulations, and assurances associated with
accepting grants from the FAA or another agency of the United
States or this state.
(o) Apply for and receive loans, grants, guarantees, or other
financial assistance in aid of airport facilities and the operation
of the airport from a state, federal, county, or municipal
government or agency or from another source, public or private,
including financial assistance for planning, constructing,
improving, or operating the airport, for providing security at the
airport, or for providing ground access to the airport.
(p) Appoint and vest with police powers airport law
enforcement officers, guards, or police officers under this
chapter. The law enforcement officers, guards, or police officers
of the regional authority have the full police powers and authority
of peace officers in the areas over which the regional authority
has operational jurisdiction, including, but not limited to, the
prevention and detection of crime, the power to investigate and
enforce the laws of this state, rules, regulations, and ordinances
issued by the regional authority, and, to the extent permitted or
required by federal law and regulations, requirements of federal
law and regulations governing airport security. The officers may
issue summonses, make arrests, and initiate criminal proceedings. A
regional authority is responsible for all actions of its officers
committed under color of their official position and authority.
(q) Procure insurance or become a self-funded insurer against
loss in connection with the property, assets, or activities of the
regional authority.
(r) Invest money of the regional authority, consistent with
applicable state law and the contractual obligations of the
regional authority, at the board's discretion, in instruments,
obligations, securities, or property determined proper by the
board, and name and use depositories for its money.
(s) Fix, charge, and collect rates, fees, rentals, and charges
in and for the use and operation of the airport or airports under
the operational jurisdiction of the regional authority.
(2) Except as otherwise prohibited by this chapter, a regional
authority has all the powers of a political subdivision under this
act. The powers granted to a regional authority are public and
governmental functions.
(3) Except for the regional authority's exclusive jurisdiction
over landing fields and other aeronautical facilities, this chapter
does not limit the power of a local government in which an airport
is located to zone property under the Michigan zoning enabling act,
2006 PA 110, MCL 125.3101 to 125.3702, or to engage in land
planning under the Michigan planning enabling act, 2008 PA 33, MCL
125.3801 to 125.3885, with respect to property that is not part of
the airport.
(4) Notwithstanding any other provision of law to the
contrary, a regional authority shall not impose or levy taxes,
except the regional authority may impose fees or charges permitted
by federal law.
(5) Unless a regional authority obtains the approval of the
legislative body, the regional authority shall not incur any
indebtedness pledging, on a superior basis, any revenues from
airport facilities that are otherwise pledged to secure any
obligation, note, bond, or other instrument of indebtedness for
which the full faith and credit of the local government has been
pledged. The local government may establish conditions under which
the regional authority may incur indebtedness pledging, on a parity
basis, any revenues from airport facilities that are otherwise
pledged to secure any obligation, note, bond, or other instrument
of indebtedness for which the full faith and credit of the local
government has been pledged.
(6) On the creation or incorporation of an authority under
this chapter, the local government shall not pledge airport
facilities or assets to secure any instrument of indebtedness
except to secure bonds issued for airport capital improvement
projects after the creation or incorporation of the regional
authority and before the approval date.
(7) A regional authority shall not take any action contrary to
obligations assumed or entered into under state law or federal
rules or regulations or any agreement entered into or assumed with
respect to state or federal grants.
(8) A local government shall not take any action contrary to
obligations or covenants under applicable state or federal law,
regulations, and assurances associated with the state or federal
government.
(9) If a local government previously acted as a sponsor and
action by, or concurrence of, the local government is required to
complete a project related to the airport or airport facilities,
the local government shall not withhold, condition, or delay
concurrence with any regional authority action necessary to
complete the project in accordance with obligations under
applicable federal law, regulations, and assurances associated with
accepting grants from the FAA or another agency of the United
States or this state.
(10) A regional authority shall serve as the agent of the
local government for the preparation, submission, execution, and
administration of any state or federal grants pending on the
approval date. The regional authority shall also act as the
custodian of all money received or to be received by the local
government or the regional authority for the projects for which the
grants were awarded.
Sec. 144. (1) All of the following occur on the approval date:
(a) The regional authority may acquire, and shall assume the
exclusive right, responsibility, and authority to occupy, operate,
control, and use, the airport and the airport facilities owned by
the local government on that date, subject only to any restrictions
imposed by this act.
(b) The local government shall convey title to or enter into a
lease of the real property comprising the airport with the regional
authority, which shall otherwise acquire and succeed to all rights,
title, and interests in and to the fixtures, equipment, materials,
furnishings, and other personal property owned and used for
purposes of the airport on that date by the local government. The
officers of the local government shall execute the instruments of
conveyance, assignment, and transfer that are necessary and
appropriate to comply with this subdivision.
(c) The regional authority shall assume, accept, and become
solely liable for all of the lawful obligations, promises,
covenants, commitments, and other requirements in respect of the
airport of the local government, whether known or unknown,
contingent or matured, except for any full faith and credit pledge
of the local government in respect of bonds issued by the local
government for airport purposes, and shall perform all of the
duties and obligations and is entitled to all of the rights of the
local government in respect of the airport under any ordinances,
agreements, or other instruments and under law. Consistent with
this chapter, this assumption includes, and any person shall
transfer to the regional authority, all licenses, permits,
approvals, or awards related to the airport; all grant agreements,
grant preapplications, and the right to receive the balance of any
money payable under the agreements; the right to receive any money,
including any passenger facility charges, payable to the local
government on the approval date and money paid to the local
government after the approval date; the benefit of contracts and
agreements; and all of the local government's duties, liabilities,
responsibilities, and obligations as sponsor of the airport, except
for any obligation or liabilities contested in good faith by the
regional authority.
(2) All lawful actions, commitments, and proceedings,
including, but not limited to, revenue bond financings for which a
notice of intent resolution has been adopted, of the local
government made, given, or undertaken before the date of assumption
by the regional authority under this section are ratified,
confirmed, and validated on assumption by the regional authority.
All actions, commitments, or proceedings undertaken shall, and all
actions, commitments, or proceedings of the local government in
respect of the airport in the process of being undertaken by, but
not yet a commitment or obligation of, the local government in
respect of the airport may, from and after the date of assumption
by the regional authority under this section, be undertaken and
completed by the regional authority in the manner and at the times
provided in this chapter or other applicable law and in any lawful
agreements made by the local government before the date of
assumption by the regional authority under this section.
(3) The exclusive right and authority to occupy, operate,
control, and use the airport facilities includes, but is not
limited to, all of the following:
(a) Operational jurisdiction over all real property of the
airport, including, but not limited to, terminals, runways,
taxiways, aprons, hangars, aids to air navigation, vehicles or
facilities, parking facilities for passengers and employees, and
buildings and facilities used to operate, maintain, and manage the
airport, subject to any liens on the real property and restrictions
and limitations on the use of the real property.
(b) The local government's right, title, and interest in, and
all of the local government's responsibilities arising under,
leases, concessions, and other contracts for airport facilities.
(4) The acquisitions, assumptions, successions, or transfers
described under this section include, but are not limited to, all
of the following:
(a) All contracts and other obligations with airlines,
tenants, concessionaires, leaseholders, and others at the airport.
(b) All financial obligations secured by revenues and fees
generated from the operations of the airport, including, but not
limited to, airport revenue bonds, special facilities revenue
bonds, and all bonded indebtedness associated with the airport.
(c) All cash balances and investments relating to or resulting
from operations of the airport for which operational jurisdiction
has been transferred to a regional authority, all money held under
an ordinance, resolution, or indenture related to or securing
obligations of the local government that have been assumed by the
regional authority, all of the accounts receivable or choses in
action arising from operations of the airport, and all benefits of
contracts and agreements.
(d) All office equipment, including, but not limited to,
computers, records and files, software, and software licenses
required for financial management, personnel management, accounting
and inventory systems, and general administration.
Sec. 145. (1) The transfer of the operational jurisdiction
over an airport to a regional authority may not in any way impair
any contract with an airline, vendor, tenant, bondholder, or other
party in privity with the local government.
(2) On the transfer of operational jurisdiction over an
airport under section 144, the local government is relieved from
all further costs and responsibility arising from or associated
with control, operation, development, and maintenance of the
airport, except as otherwise required under obligations retained by
the local government under this chapter or as otherwise agreed by
the local government.
(3) The local government shall comply with all of the
following:
(a) Refrain from any action that would impair the regional
authority's exercise of the powers granted to the regional
authority under this chapter or that could cause the regional
authority to violate its rate or bond covenants.
(b) Refrain from any action to sell, transfer, or otherwise
encumber or dispose of airport facilities owned by the local
government without the consent of the regional authority and, if
necessary, the FAA and the department.
(c) Take all action reasonably necessary to cure any defects
in title to airport facilities transferred to the regional
authority.
(d) On incorporation of a regional authority and before the
approval date, conduct operations of the airport in the ordinary
and usual course of business.
(e) Maintain and repair, including provide snow removal for,
any road that provides ingress and egress to the airport over which
responsibility for maintenance and repair is retained by the local
government pursuant to agreement or law.
(4) At the request of a regional authority, the local
government may provide the regional authority with transitional
services previously performed by the local government and related
to the operation of the airport until the date the regional
authority elects to assume the services. The regional authority
shall pay the cost of the services in compliance with its
obligations under applicable federal law, regulations, and
assurances associated with accepting grants from the FAA or another
agency of the United States or this state, including, but not
limited to, policies of the FAA that prohibit revenue diversion or
the payment of fees that exceed the value of services provided by a
governmental agency.
Sec. 146. (1) Employees at an airport may transfer to the
regional authority to which operational jurisdiction of the airport
will be transferred as provided in this section on 1 or more dates
agreed to by the regional authority and the local government. The
date or dates must be as soon as administratively feasible, but not
later than 180 days after the approval date. The initial terms of
employment, including for purposes of pension and other benefits,
for transferring employees must be substantially similar to the
terms of employment for the employees immediately before the
transfer. The regional authority shall offer to enter into a
collective bargaining agreement covering transferring employees who
on their transfer date were covered by a collective bargaining
agreement with the local government. The agreement offered by the
regional authority must have substantially similar terms of
employment as the local government collective bargaining agreement
and remain in effect for the same period. The regional authority
shall become the employer of transferring employees on the date of
transfer without a break in employment and shall recognize the
length of service of the transferring employees with the local
government for purposes of the regional authority's benefit plans
and programs. The local government is not an employer of any
employee at the airport after the transfer date. The accrued local
government pension benefits or credits of a transferring employee
must not be diminished because of the transfer. Instead, the
pension benefits and credits must be transferred to the retirement
system or pension plan established by the regional authority as
provided in subsections (2) and (3).
(2) By the approval date, the regional authority shall
establish a retirement system or pension plan that initially
provides benefits to each transferring employee that are
substantially similar to the benefits provided by the local
government's retirement system or pension plan before the approval
date. The regional authority's retirement system or pension plan
shall credit a transferring employee for his or her prior
employment with the local government, including for purposes of
eligibility, vesting, and accruals, and the employee shall make any
mandatory employee contribution to the regional authority's
retirement system or pension plan.
(3) The local government shall, as soon as administratively
feasible, but not later than 180 days after all employee transfers
under subsection (1), transfer to the trustees of the regional
authority retirement system or pension plan both of the following:
(i) For defined benefit plans, all accrued benefits, all
accrued liabilities, and a share of the assets of the local
government's plan sufficient to fund the transferring employees'
accrued benefits to the extent that the benefits have been funded
by the local government on or before the transfer date.
(ii) For defined contribution plans, the amount credited to
each transferring employee's account in the local government's
retirement system or pension plan on or before the transfer date.
For purposes of this subparagraph, the local government shall fully
vest the account of the transferring employee on the day
immediately preceding the transfer date and shall make
contributions on behalf of the transferring employee for the
portion of the transfer year in which the employee was employed by
the local government and eligible to participate in the plans
regardless of any allocation requirements that otherwise might
prevent the transferring employee from receiving a contribution for
the year of the transfer.
(4) The local government shall transfer the amounts to be
transferred under subsection (3) in cash or in some other form
acceptable to the trustees. The transfer of money to the trustees
under this subsection terminates the local government's obligation
to the transferring employees and the transferring employees'
rights under the local government's retirement system and pension
plans.
(5) If the local government has an obligation to provide
retiree health benefits or payments to transferring employees, the
regional authority shall assume the obligations. The regional
authority shall not assume obligations in excess of the amount
properly allocable to the transferring employees. The local
government shall, as soon as administratively feasible but not
later than 180 days after all employee transfers under subsection
(1), transfer to the regional authority an amount sufficient to
fund the transferring employees' accrued benefits to the extent
that the benefits have been funded by the local government on or
before the transfer date. The regional authority shall transfer the
amounts required to be transferred under this subsection to a
qualifying entity established by the regional authority in cash, or
in some other form acceptable to the qualifying entity. The
transfer of money to a qualifying entity established by the
regional authority under this subsection terminates the local
government's obligations to the transferring employees and the
transferring employees' rights to receive the benefits from the
local government.
(6) This section only applies to local government employees
who transfer their employment to the regional authority in
accordance with this section.
(7) An employee hired by the regional authority, other than a
transferring employee, is eligible to participate in the benefit
plans established by the regional authority, in accordance with and
subject to the terms of the plans as established by the regional
authority, in its sole discretion.
(8) As used in this section:
(a) "Transfer date" means the earlier of the date of transfer
or the deadline for transfer of employment to the regional
authority.
(b) "Transferring employee" means an employee at the airport
who timely transfers to the regional authority by the transfer
date.
Sec. 147. A regional authority may accept the transfer of
operational jurisdiction of other publicly owned airports, in and
outside of the local government. In accepting a transfer, the
regional authority shall not assume financial obligations other
than those associated with the operation of the airport being
transferred and with debt issued to finance improvements at the
airport being transferred.
Sec. 148. (1) For the purpose of acquiring, purchasing,
constructing, improving, installing, enlarging, furnishing,
equipping, reequipping, or repairing airports and airport
facilities for which operational jurisdiction is transferred under
this chapter or is acquired by the regional authority, a regional
authority may issue self-liquidating bonds of the authority in
accordance with and exercise all of the powers conferred on public
corporations by the revenue bond act of 1933, 1933 PA 94, MCL
141.101 to 141.140.
(2) A regional authority may borrow money and issue municipal
securities in accordance with and exercise all of the powers
conferred on municipalities by the revised municipal finance act,
2001 PA 34, MCL 141.2101 to 141.2821.
(3) All bonds or other evidences of indebtedness issued by a
regional authority under this chapter, and the interest on them,
are free and exempt from all taxation in this state, except
inheritance and estate taxes and taxes on gains realized from the
sale, payment, or other disposition of them.
(4) On request of the board of a regional authority, the
legislative body may take 1 or more of the following actions:
(a) Pledge the full faith and credit of the local government
behind any obligation or evidence of indebtedness of the regional
authority.
(b) Advance money to the regional authority for working
capital and other purposes of the regional authority on terms and
conditions agreed to by the regional authority and the local
government consistent with obligations under applicable federal
law, regulations, and assurances associated with accepting grants
from the FAA or another agency of the United States or this state.
(c) Appropriate and grant money to the regional authority in
furtherance of its purposes.
(d) Grant and convey to the regional authority real or
personal property of any kind or nature, or any interest in real or
personal property, for carrying out the authorized purposes of the
regional authority.
(5) A pledge made under subsection (4) must be at the
discretion of the legislative body and may be subject to an
agreement providing for terms and conditions of the pledge and for
repayment of any amount paid under the pledge as the regional
authority and the local government determine to be necessary and
advisable consistent with obligations under applicable federal law,
regulations, and assurances associated with accepting grants from
the FAA or another agency of the United States or this state.
(6) An agreement by an authority to repay an advance made
under this section and any obligation incurred by the regional
authority under the agreement is not subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(7) For the purpose of more effectively managing its debt
service, a regional authority may enter into an interest rate
exchange or swap, hedge, or similar agreement or agreements in
connection with the issuance or proposed issuance of obligations or
other evidences of indebtedness or in connection with its then
outstanding obligations or other evidences of indebtedness. The
authority may create a reserve fund for the payment of the interest
rate exchange or swap, hedge, or similar agreement.
(8) An agreement entered into under this section must comply
with all of the following requirements:
(a) The agreement is not a debt of the regional authority
entering into the agreement for any statutory debt limitation
purpose.
(b) The agreement is payable from general funds of the
regional authority or, subject to any existing contracts, from any
available money or revenue sources, including revenues that are
specified by the agreement, securing the obligation or evidence of
indebtedness in connection with the agreement.
(9) Notwithstanding anything in this chapter or any other law
to the contrary, all ordinances, resolutions, and other proceedings
of the local government with respect to any outstanding bonds,
notes, or evidences of indebtedness or liability assumed by a
regional authority under this chapter constitute a contract between
the regional authority and the holders of the bonds, notes, or
evidences of indebtedness or liability and must have their
provisions enforceable against the regional authority or any or all
of its successors or assigns, by mandamus or any other appropriate
action or proceeding in law or in equity in any court of competent
jurisdiction in accordance with law.
(10) Bonds, notes, or evidences of indebtedness or liability
that are assumed by a regional authority under this chapter are
payable solely from and secured solely by the sources of revenue
that were pledged to those bonds, notes, or evidences of
indebtedness or liability under the ordinance, resolution, or other
proceedings of the local government.
(11) This chapter and any other law do not relieve a regional
authority from any bonded or other debt or liability lawfully
contracted by the local government with respect to the airport and
outstanding on the effective date of the transfer of the
operational jurisdiction over the airport to the regional
authority.
(12) A regional authority shall not take any action to impair
the rights or remedies of the holders of the bonds or other
obligations of the local government that owns the airport that were
lawfully issued before the transfer of operational jurisdiction of
the airport to the regional authority.
(13) Beginning on the approval date, trustees, paying agents,
and registrars for any obligation of the local government that has
been assumed by the regional authority under section 144 shall
perform all of their duties and obligations and provide all notices
related to the obligations as if the regional authority were the
issuer of the obligations. The trustees, paying agents, and
registrars shall care for and consider all revenues and money
pledged to secure obligations of the local government that have
been assumed by the regional authority under section 144 as
revenues and money of the regional authority. The regional
authority shall indemnify and hold harmless the trustees, paying
agents, and registrars from liability incurred in compliance with
this subsection.
Sec. 149. The effectuation of the authorized purposes of a
regional authority must be in all respects for the benefit of the
people of the region the airport serves and in order to meet
present and future state and regional needs with respect to the
provision of adequate, safe, and efficient airport facilities and
services to the public and to promote the economic development and
well-being of this state. By performing an essential governmental
function, the regional authority is not required to pay taxes or
assessments of any kind or nature whatsoever on any property
required or used for airport or airport facility purposes or on any
rates, fees, rentals, receipts, or income at any time received by
it.