SENATE BILL No. 789

 

 

October 23, 2003, Introduced by Senators GILBERT, GOSCHKA, KUIPERS, PATTERSON, TOY, OLSHOVE and BASHAM and referred to the Committee on Transportation.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to authorize certain agreements and methods in                             

                                                                                

    connection with the acquisition, construction, maintenance,                 

                                                                                

    operation, or improvement of a transportation facility; to                  

                                                                                

    authorize the issuance of debt obligations in connection with the           

                                                                                

    transportation facility; to prescribe the powers and duties of              

                                                                                

    certain state agencies and officials; to authorize interstate or            

                                                                                

    international bridges, tunnels, or ferries; and to provide for              

                                                                                

    remedies.                                                                   

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

2   "public and private transportation act".                                    

                                                                                

3       Sec. 2.  As used in this act:                                               

                                                                                

4       (a) "Affected local jurisdiction" means a county, city,                     

                                                                                

5   village, or township in which any portion of a qualifying                   

                                                                                

6   transportation facility is located.                                         

                                                                                


                                                                                

1       (b) "Chief administrative officer" means 1 or more of the                   

                                                                                

2   following:                                                                  

                                                                                

3                                                                                (i) The manager of a village or township or, if a village or                        

                                                                                

4   township does not employ a manager, the president or supervisor             

                                                                                

5   of that village or township.                                                

                                                                                

6       (ii) The city manager of a city or, if a city does not employ                

                                                                                

7   a city manager, the mayor of the city.                                      

                                                                                

8       (iii) The elected county executive or appointed county                       

                                                                                

9   manager of a county or, if the county is not a charter county or            

                                                                                

10  has not adopted an optional unified form of county government,              

                                                                                

11  the controller of the county appointed under section 13b of 1851            

                                                                                

12  PA 156, MCL 46.13b, or, if the county has not appointed a                   

                                                                                

13  controller, an individual designated by the county board of                 

                                                                                

14  commissioners.                                                              

                                                                                

15      (iv) The director.                                                           

                                                                                

16      (v) The official granted general administrative control of an               

                                                                                

17  agency, authority, or organization of government established by             

                                                                                

18  law that is a responsible public entity under this act.                     

                                                                                

19      (c) "Commission" means the state transportation commission.                 

                                                                                

20      (d) "Comprehensive agreement" means the agreement between the               

                                                                                

21  operator and the responsible public entity under section 10.                

                                                                                

22      (e) "Department" means the state transportation department.                 

                                                                                

23      (f) "Director" means the director of the department.                        

                                                                                

24      (g) "Material default" means a default by the operator in the               

                                                                                

25  performance of the operator's duties under section 9(10) in which           

                                                                                

26  both of the following occur:                                                

                                                                                

27                                                                               (i) The default jeopardizes adequate service to the public                          


                                                                                

1   from a qualifying transportation facility.                                  

                                                                                

2       (ii) The default remains unremedied after the responsible                    

                                                                                

3   public entity has provided notice of the default to the operator            

                                                                                

4   and the reasonable cure period specified in the comprehensive               

                                                                                

5   agreement or service contract has elapsed.                                  

                                                                                

6       (h) "Operator" means the private entity that is responsible                 

                                                                                

7   for the acquisition, construction, improvement, maintenance, or             

                                                                                

8   operation of a qualifying transportation facility.                          

                                                                                

9       (i) "Public body" means 1 or more of the following units of                 

                                                                                

10  government:                                                                 

                                                                                

11                                                                               (i) This state or a county, city, township, village, or other                       

                                                                                

12  political subdivision of this state.                                        

                                                                                

13      (ii) A province of Canada or a political subdivision or                      

                                                                                

14  municipal corporation of Canada.                                            

                                                                                

15      (iii) An agency or instrumentality of a unit of government                   

                                                                                

16  identified in subparagraph (i) or (ii).                                      

                                                                                

17      (j) "Qualifying transportation facility" means a                            

                                                                                

18  transportation facility designated as a qualifying transportation           

                                                                                

19  facility by a responsible public entity under section 5.                    

                                                                                

20      (k) "Responsible public entity" means either of the                         

                                                                                

21  following:                                                                  

                                                                                

22                                                                               (i) This state.                                                                     

                                                                                

23      (ii) A county, city, village, or other political subdivision                 

                                                                                

24  of this state or an authority or agency of 1 or more counties,              

                                                                                

25  cities, villages, or political subdivisions, but only to the                

                                                                                

26  extent that the county, city, village, or political subdivision,            

                                                                                

27  authority, or agency has the power under law to acquire,                    


                                                                                

1   construct, improve, maintain, or operate the transportation                 

                                                                                

2   facility proposed to be designated as a qualifying transportation           

                                                                                

3   facility.                                                                   

                                                                                

4                                                                                (l) "Revenues" means the user fees or service payments,                             

                                                                                

5   investment income, and other income generated by, arising from,             

                                                                                

6   or otherwise related to a qualifying transportation facility that           

                                                                                

7   are legally available for the payment of operating costs and                

                                                                                

8   maintenance costs of the qualifying transportation facility or              

                                                                                

9   for the payment of debt service on obligations incurred in                  

                                                                                

10  connection with the financing of the facility.                              

                                                                                

11      (m) "Service contract" means a contract entered into between                

                                                                                

12  the responsible public entity and the operator under section 6.             

                                                                                

13      (n) "Service payment" means a payment to an operator under a                

                                                                                

14  service contract.                                                           

                                                                                

15      (o) "Transportation facility" means a road, bridge, including               

                                                                                

16  an international or interstate bridge, tunnel, including an                 

                                                                                

17  international or interstate tunnel, overpass, ferry, including a            

                                                                                

18  ferry providing international or interstate ferry service, mass             

                                                                                

19  transit facility, vehicle parking facility, port facility,                  

                                                                                

20  intermodal facility, lock facility, or any other facility used              

                                                                                

21  for or in connection with transportation of people or goods.                

                                                                                

22  Transportation facility includes any other property that is                 

                                                                                

23  needed or convenient to operate, or otherwise reasonably related            

                                                                                

24  to, the transportation facility.  Transportation facility does              

                                                                                

25  not include airports or state trunk line highways under 1951 PA             

                                                                                

26  51, MCL 247.651 to 247.675.                                                 

                                                                                

27      (p) "User fees" means the rates, fees, or other charges                     


                                                                                

1   imposed by the operator of a qualifying transportation facility             

                                                                                

2   for the use of all or a portion of a qualifying transportation              

                                                                                

3   facility under the comprehensive agreement.                                 

                                                                                

4       Sec. 3.  (1) A person seeking authorization under this act                  

                                                                                

5   to acquire, construct, improve, maintain, or operate a                      

                                                                                

6   transportation facility shall first obtain approval of the                  

                                                                                

7   responsible public entity under section 4.                                  

                                                                                

8       (2) The approval process may be initiated by either of the                  

                                                                                

9   following:                                                                  

                                                                                

10      (a) A person requesting approval under section 4(1).                        

                                                                                

11      (b) The responsible public entity requesting proposals under                

                                                                                

12  section 4(5).                                                               

                                                                                

13      Sec. 4.  (1) A person may request approval from a                           

                                                                                

14  responsible public entity to acquire, construct, improve,                   

                                                                                

15  maintain, or operate a qualifying transportation facility.                  

                                                                                

16      (2) A request made under subsection (1) shall be accompanied                

                                                                                

17  by all of the following material and information:                           

                                                                                

18      (a) A topographic map indicating the location of the                        

                                                                                

19  transportation facility.                                                    

                                                                                

20      (b) A description of the transportation facility, including                 

                                                                                

21  the conceptual design of the facility and all proposed                      

                                                                                

22  interconnections with other transportation facilities.                      

                                                                                

23      (c) The projected total life cycle of the transportation                    

                                                                                

24  facility and the proposed date for acquisition of the                       

                                                                                

25  transportation facility or the beginning of construction of, or             

                                                                                

26  improvements to, the transportation facility.                               

                                                                                

27      (d) A statement setting forth the method by which the                       


                                                                                

1   operator proposes to secure all property interests required for             

                                                                                

2   the transportation facility, including both of the following:               

                                                                                

3                                                                                (i) The nature of the property interests to be acquired.                            

                                                                                

4       (ii) Any property that the responsible public entity is                      

                                                                                

5   expected to be requested to condemn.                                        

                                                                                

6       (e) If available and applicable, information relating to the                

                                                                                

7   current transportation plans of each affected local                         

                                                                                

8   jurisdiction.                                                               

                                                                                

9       (f) A list of permits and approvals expected to be required                 

                                                                                

10  for the acquisition, construction, or improvement of the                    

                                                                                

11  transportation facility from local, state, or federal agencies              

                                                                                

12  and a projected schedule for obtaining these permits and                    

                                                                                

13  approvals.                                                                  

                                                                                

14      (g) A list of public utility facilities expected to intersect               

                                                                                

15  with, be crossed over by, or be crossed under by, the                       

                                                                                

16  transportation facility and a statement of the plans of the                 

                                                                                

17  operator to accommodate that anticipated intersection or                    

                                                                                

18  crossing.                                                                   

                                                                                

19      (h) A general statement describing the operator's plans for                 

                                                                                

20  financing and operating the transportation facility.                        

                                                                                

21      (i) The names and addresses of the persons who may be                       

                                                                                

22  contacted for further information concerning the request.                   

                                                                                

23      (j) A statement of the public benefit to be derived from the                

                                                                                

24  acquisition, construction, improvement, maintenance, or operation           

                                                                                

25  of the transportation facility as a qualifying transportation               

                                                                                

26  facility.                                                                   

                                                                                

27      (k) Additional material and information that the responsible                


                                                                                

1   public entity reasonably requests.                                          

                                                                                

2       (3) The responsible public entity may waive the requirement                 

                                                                                

3   to provide all or part of the material information listed in                

                                                                                

4   subsection (2).                                                             

                                                                                

5       (4) Upon receipt of a proposal under subsection (1), the                    

                                                                                

6   responsible public entity, acting through its chief                         

                                                                                

7   administrative officer, shall determine whether it is in the best           

                                                                                

8   interest of the public to proceed to consider the acquisition,              

                                                                                

9   construction, improvement, maintenance, or operation of a                   

                                                                                

10  qualifying transportation facility under this act.  If the                  

                                                                                

11  responsible public entity, acting through its chief                         

                                                                                

12  administrative officer, determines to proceed, it shall publish             

                                                                                

13  notice, in a manner reasonably intended to reach all interested             

                                                                                

14  parties, of the receipt of the proposal and provide for the                 

                                                                                

15  submission, within a period of time specified in the notice, of             

                                                                                

16  competing proposals by other proposed operators.  The notice                

                                                                                

17  shall specify that procedures and criteria for selecting among              

                                                                                

18  competing proposals are available from the specified office of              

                                                                                

19  the responsible public entity.                                              

                                                                                

20      (5) A responsible public entity may request proposals for the               

                                                                                

21  acquisition, construction, improvement, maintenance, or operation           

                                                                                

22  of transportation facilities either generally or with respect to            

                                                                                

23  a specified transportation facility.  A request for proposals               

                                                                                

24  from a responsible public entity under this subsection shall                

                                                                                

25  describe the procedures and criteria for selecting among                    

                                                                                

26  competing proposals.  A request for proposals under this                    

                                                                                

27  subsection may be made independently of any receipt of a proposal           


                                                                                

1   under subsection (1).                                                       

                                                                                

2       (6) The director shall develop and the commission shall                     

                                                                                

3   approve guidelines and procedures for the solicitation,                     

                                                                                

4   submission, evaluation, and approval of proposals by the director           

                                                                                

5   and the commission from proposed operators.  These procedures and           

                                                                                

6   guidelines shall provide that, by submitting a proposal under               

                                                                                

7   this act, the proposed operator agrees to be conclusively bound             

                                                                                

8   by the decision of the responsible public entity.  Any                      

                                                                                

9   responsible public entity may choose to use the guidelines and              

                                                                                

10  procedures approved by the commission, may modify the guidelines            

                                                                                

11  and procedures approved by the commission, or may develop                   

                                                                                

12  different guidelines and procedures, for the solicitation,                  

                                                                                

13  submission, evaluation, and approval of proposals received under            

                                                                                

14  this act.                                                                   

                                                                                

15      (7) Notwithstanding any other provision in this section, if                 

                                                                                

16  the qualifying transportation facility is an international                  

                                                                                

17  bridge, tunnel, or ferry and a public body in Canada has, in                

                                                                                

18  consultation with a responsible public entity, selected an                  

                                                                                

19  operator for a qualifying transportation facility, the                      

                                                                                

20  responsible public entity may accept the selected operator,                 

                                                                                

21  without following the procedures of this section relating to                

                                                                                

22  proposals.                                                                  

                                                                                

23      (8) The requirements of this section may, at the option of                  

                                                                                

24  the responsible public entity, be modified to comply with the               

                                                                                

25  requirements of federal laws or regulations or to enable the                

                                                                                

26  qualifying transportation facility to become eligible for                   

                                                                                

27  financial assistance from the federal government of the United              


                                                                                

1   States.                                                                     

                                                                                

2       Sec. 5.  (1) Notwithstanding any charter ordinance, rule, or                

                                                                                

3   regulation that requires competitive bidding, the responsible               

                                                                                

4   public entity may designate a transportation facility as a                  

                                                                                

5   qualifying transportation facility and, in accordance with this             

                                                                                

6   act, grant approval for the acquisition, construction,                      

                                                                                

7   maintenance, improvement, or operation of a qualifying                      

                                                                                

8   transportation facility by a specified operator, if the                     

                                                                                

9   responsible public entity determines that these actions serve the           

                                                                                

10  public purpose of this act.  The designation of a transportation            

                                                                                

11  facility as a qualifying transportation facility shall occur                

                                                                                

12  through the decision-making body of the responsible public                  

                                                                                

13  entity.  If the responsible public entity is this state, the                

                                                                                

14  designation shall be made by the commission.  The responsible               

                                                                                

15  public entity may determine that the acquisition, construction,             

                                                                                

16  maintenance, improvement, or operation of a transportation                  

                                                                                

17  facility as a qualifying transportation facility serves the                 

                                                                                

18  public purpose of this act upon making all of the following                 

                                                                                

19  findings:                                                                   

                                                                                

20      (a) There is a public need for the proposed transportation                  

                                                                                

21  facility.                                                                   

                                                                                

22      (b) The proposed transportation facility is reasonable and                  

                                                                                

23  compatible with the responsible public entity's transportation              

                                                                                

24  plans.                                                                      

                                                                                

25      (c) The estimated cost of the transportation facility is                    

                                                                                

26  reasonable.                                                                 

                                                                                

27      (d) The operator's plans will result in the timely and                      


                                                                                

1   efficient acquisition, construction, or improvement of a                    

                                                                                

2   transportation facility or more efficient maintenance or                    

                                                                                

3   operation of an existing transportation facility.                           

                                                                                

4       (2) The approval of the responsible public entity shall be                  

                                                                                

5   subject to an executed comprehensive agreement between the                  

                                                                                

6   operator and the responsible public entity.                                 

                                                                                

7       (3) The responsible public entity shall establish a date for                

                                                                                

8   the acquisition, beginning, and completion of construction or               

                                                                                

9   improvements to the qualifying transportation facility.  The                

                                                                                

10  responsible public entity may extend any date established under             

                                                                                

11  this subsection.                                                            

                                                                                

12      (4) The responsible public entity shall not designate a                     

                                                                                

13  transportation facility as a qualifying transportation facility             

                                                                                

14  until the earlier of the date it receives comments from all                 

                                                                                

15  affected local jurisdictions or 30 days after notice is received            

                                                                                

16  by all affected local jurisdictions under section 7(1).  The                

                                                                                

17  failure of a responsible public entity to incorporate the                   

                                                                                

18  comments of an affected local jurisdiction or action by a                   

                                                                                

19  responsible public entity to designate a qualifying                         

                                                                                

20  transportation facility after the time specified in this                    

                                                                                

21  subsection but before it receives the comments of an affected               

                                                                                

22  local jurisdiction shall not affect the validity of the actions             

                                                                                

23  of a responsible public entity, the execution of a comprehensive            

                                                                                

24  agreement, or any other agreement entered into in connection with           

                                                                                

25  the comprehensive agreement.                                                

                                                                                

26      Sec. 6.  The responsible public entity may contract with an                 

                                                                                

27  operator for transportation services to be provided by a                    


                                                                                

1   qualifying transportation facility in exchange for service                  

                                                                                

2   payments or other consideration that the responsible public                 

                                                                                

3   entity considers appropriate.                                               

                                                                                

4       Sec. 7.  (1) A person requesting approval from, or                          

                                                                                

5   submitting a proposal to, a responsible public entity under                 

                                                                                

6   section 4 shall notify each affected local jurisdiction by                  

                                                                                

7   furnishing a copy of the person's request or proposal to each               

                                                                                

8   affected local jurisdiction within 5 days after submitting the              

                                                                                

9   application to a responsible public entity.                                 

                                                                                

10      (2) Within 30 days after receiving notice under this section,               

                                                                                

11  an affected local jurisdiction may submit any comments it may               

                                                                                

12  have, in writing, on the proposed qualifying transportation                 

                                                                                

13  facility to the responsible public entity.  The comments shall              

                                                                                

14  indicate whether the facility is compatible with the local                  

                                                                                

15  comprehensive transportation plan.                                          

                                                                                

16      Sec. 8.  (1) A public body or responsible public entity may                 

                                                                                

17  dedicate a property interest that it has for public use as a                

                                                                                

18  qualifying transportation facility if the public body or                    

                                                                                

19  responsible public entity finds that the dedication of the                  

                                                                                

20  property interest will serve the public purpose of this act.                

                                                                                

21      (2) A public body or responsible public entity may convey any               

                                                                                

22  property interest that it has to an operator for the                        

                                                                                

23  consideration the public body or responsible public entity                  

                                                                                

24  determines is fair and reasonable and in the best interests of              

                                                                                

25  the public.  The consideration may consist of or include the                

                                                                                

26  agreement of the operator to operate the qualifying                         

                                                                                

27  transportation facility if the public entity determines that this           


                                                                                

1   consideration is fair and reasonable and in the best interests of           

                                                                                

2   the public.                                                                 

                                                                                

3       Sec. 9.  (1) Following execution of a comprehensive                         

                                                                                

4   agreement, an operator may acquire, construct, improve, maintain,           

                                                                                

5   or operate a qualifying transportation facility.                            

                                                                                

6       (2) Following execution of a comprehensive agreement, an                    

                                                                                

7   operator may own, lease, or acquire any right to use or operate a           

                                                                                

8   qualifying transportation facility.                                         

                                                                                

9       (3) Except as provided in subsection (4), the operator may                  

                                                                                

10  impose user fees or enter into a service contract in connection             

                                                                                

11  with the use of the qualifying transportation facility.                     

                                                                                

12      (4) The operator shall not impose tolls or user fees on any                 

                                                                                

13  existing free road, bridge, tunnel, or overpass unless 1 or more            

                                                                                

14  of the following exist:                                                     

                                                                                

15      (a) The road, bridge, tunnel, or overpass is reconstructed to               

                                                                                

16  provide for materially increased capacity.                                  

                                                                                

17      (b) A reasonably available free alternative route exists.                   

                                                                                

18      (5) The determination by the commission or by the                           

                                                                                

19  decision-making body of the responsible public entity that                  

                                                                                

20  materially increased capacity is provided or that a free                    

                                                                                

21  alternative route is reasonably available under subsection (4)              

                                                                                

22  shall be conclusive.                                                        

                                                                                

23      (6) The operator may finance the qualifying transportation                  

                                                                                

24  facility in an amount and on terms and conditions that the                  

                                                                                

25  operator determines.  The operator may issue debt, equity, or               

                                                                                

26  other securities or obligations, enter into sale and leaseback              

                                                                                

27  transactions, and secure financing with a pledge of, security               


                                                                                

1   interest in, or lien on, its property, including any of its                 

                                                                                

2   property interests in the qualifying transportation facility.  A            

                                                                                

3   responsible public entity may approve the issuance of the debt              

                                                                                

4   obligations of the operator or its successor, but the debt or               

                                                                                

5   other obligations of the operator or its successor shall not be             

                                                                                

6   or become a debt or other obligation of the responsible public              

                                                                                

7   entity.  Approval of the issuance of debt obligations of the                

                                                                                

8   operator or its successor by the responsible public entity shall            

                                                                                

9   occur through the decision-making body of the responsible public            

                                                                                

10  entity.  A responsible public entity shall not pledge its credit            

                                                                                

11  or taxing power or the credit or taxing power of any other public           

                                                                                

12  body as part of the approval of debt under this subsection.  If             

                                                                                

13  the responsible public entity is this state, the approval shall             

                                                                                

14  be made by the commission.                                                  

                                                                                

15      (7) Subject to applicable permit requirements, the operator                 

                                                                                

16  may acquire, construct, improve, maintain, or operate a                     

                                                                                

17  qualifying transportation facility that crosses any canal or                

                                                                                

18  navigable waterway as long as the crossing does not unreasonably            

                                                                                

19  interfere with the navigation and use of the waterway.  If a                

                                                                                

20  qualifying transportation facility crosses the boundary of this             

                                                                                

21  state, including an international border, the operator is                   

                                                                                

22  responsible for obtaining consents, agreements, or property                 

                                                                                

23  interests required by the laws of the applicable state or                   

                                                                                

24  province.                                                                   

                                                                                

25      (8) The operator of a qualifying transportation facility                    

                                                                                

26  approved by a responsible public entity under this act shall be             

                                                                                

27  considered to be acting on behalf of the responsible public                 


                                                                                

1   entity and as its agent with respect to the acquisition,                    

                                                                                

2   construction, improvement, maintenance, or operation of the                 

                                                                                

3   qualifying transportation facility.                                         

                                                                                

4       (9) In operating the qualifying transportation facility, the                

                                                                                

5   operator may make classifications according to reasonable                   

                                                                                

6   categories for assessment of user fees and establish other                  

                                                                                

7   conditions or requirements for the use of the facility that are             

                                                                                

8   consistent with this act.                                                   

                                                                                

9       (10) During the term of the comprehensive agreement, the                    

                                                                                

10  operator of a qualifying transportation facility shall do all of            

                                                                                

11  the following:                                                              

                                                                                

12      (a) Acquire, construct, improve, maintain, or operate the                   

                                                                                

13  qualifying transportation facility in a manner that meets the               

                                                                                

14  engineering standards of the responsible public entity.                     

                                                                                

15      (b) Upon payment of the user fees or service payments, if                   

                                                                                

16  applicable, keep the qualifying transportation facility open for            

                                                                                

17  use by members of the public at all times after the initial                 

                                                                                

18  opening.  The operator is exempt from the requirement of this               

                                                                                

19  subdivision if 1 or more of the following apply:                            

                                                                                

20                                                                               (i) Temporary closures because of emergencies.                                      

                                                                                

21      (ii) With the consent of the responsible public entity,                      

                                                                                

22  closures for protection of public safety.                                   

                                                                                

23      (iii) During reasonable periods of time, closures for                        

                                                                                

24  construction or maintenance procedures.                                     

                                                                                

25      (c) Maintain, or provide by contract for the maintenance of,                

                                                                                

26  the qualifying transportation facility.                                     

                                                                                

27      (d) Cooperate with the responsible public entity in                         


                                                                                

1   establishing an interconnection with the qualifying                         

                                                                                

2   transportation facility requested by the responsible public                 

                                                                                

3   entity.                                                                     

                                                                                

4       (11) If, as a result of the designation of an existing                      

                                                                                

5   transportation facility as a qualifying transportation facility             

                                                                                

6   under this act, the qualifying transportation facility is to be             

                                                                                

7   operated or maintained by a private operator, then the operator             

                                                                                

8   shall assume and be bound by any existing labor agreement                   

                                                                                

9   applicable to the operation or maintenance of the transportation            

                                                                                

10  facility for the remainder of the term of the agreement.  A                 

                                                                                

11  bargaining representative of the employees involved in the                  

                                                                                

12  operation or maintenance of the transportation facility before              

                                                                                

13  its designation as a qualified transportation facility, who is              

                                                                                

14  entitled to represent the employees, shall continue to be the               

                                                                                

15  representative of the employees if the employees become employees           

                                                                                

16  of the operator or its successor.  This subsection does not limit           

                                                                                

17  the rights of the employees to assert that a bargaining                     

                                                                                

18  representative protected by this subsection is no longer the                

                                                                                

19  representative of the employees.                                            

                                                                                

20      Sec. 10.  (1) Before acquiring, constructing, improving,                    

                                                                                

21  maintaining, or operating a qualifying transportation facility,             

                                                                                

22  the operator shall enter into a comprehensive agreement with the            

                                                                                

23  responsible public entity.  The comprehensive agreement shall be            

                                                                                

24  executed substantially in the form approved by the responsible              

                                                                                

25  public entity.  The approval of the comprehensive agreement shall           

                                                                                

26  occur through the decision-making body of the responsible public            

                                                                                

27  entity.  If the responsible public entity is this state, the                


                                                                                

1   approval shall be made by the commission.                                   

                                                                                

2       (2) The comprehensive agreement shall provide for all of the                

                                                                                

3   following:                                                                  

                                                                                

4       (a) Delivery of a payment bond in connection with the                       

                                                                                

5   construction of or improvements to the qualifying transportation            

                                                                                

6   facility, in a form approved by the responsible public entity.              

                                                                                

7       (b) Either evidence of sufficient credit standing in a form                 

                                                                                

8   that satisfies the responsible public entity or a performance               

                                                                                

9   bond satisfactory to the responsible public entity.                         

                                                                                

10      (c) Review and approval of plans and specifications for the                 

                                                                                

11  qualifying transportation facility by the responsible public                

                                                                                

12  entity.                                                                     

                                                                                

13      (d) Inspection, construction, or improvements of the                        

                                                                                

14  qualifying transportation facility by the responsible public                

                                                                                

15  entity to ensure conformance with engineering standards                     

                                                                                

16  acceptable to the responsible public entity.                                

                                                                                

17      (e) Monitoring of maintenance practices of the operator by                  

                                                                                

18  the responsible public entity and taking of actions that the                

                                                                                

19  responsible public entity finds appropriate to ensure that the              

                                                                                

20  qualifying transportation facility is properly maintained.                  

                                                                                

21      (f) Reimbursement paid to the responsible public entity for                 

                                                                                

22  services provided by the responsible public entity.                         

                                                                                

23      (g) Filing of appropriate financial statements by the                       

                                                                                

24  qualifying transportation facility with the responsible public              

                                                                                

25  entity on a periodic basis.                                                 

                                                                                

26      (h) A reasonable maximum rate of return on investment for the               

                                                                                

27  operator, based on assumptions set forth in the comprehensive               


                                                                                

1   agreement.  The allowed amount of the return on investment for              

                                                                                

2   the operator shall not be affected by subsequently occurring                

                                                                                

3   events unless specifically provided otherwise in the                        

                                                                                

4   comprehensive agreement.  The determination of reasonableness by            

                                                                                

5   the responsible public entity is conclusive.                                

                                                                                

6       (i) The date of termination of the operator's authority and                 

                                                                                

7   duties under this act and the date of dedication of a part or all           

                                                                                

8   of the qualifying transportation facility to the appropriate                

                                                                                

9   public entity.                                                              

                                                                                

10      (j) The distribution of earnings in excess of the costs of                  

                                                                                

11  operating and maintenance, debt service, funding and maintaining            

                                                                                

12  required reserves, and the maximum rate of return as negotiated             

                                                                                

13  in the comprehensive agreement.                                             

                                                                                

14      (k) Other terms and conditions to which the operator and the                

                                                                                

15  responsible public entity mutually agree.                                   

                                                                                

16                                                                               (l) The duties of the operator under this act and other terms                       

                                                                                

17  and conditions that the responsible public entity determines                

                                                                                

18  serve the public purpose of this act.                                       

                                                                                

19      (3) The comprehensive agreement may provide for user fees to                

                                                                                

20  be established during the period of the operator's authority.               

                                                                                

21  User fees shall be set at a level that, taking into account any             

                                                                                

22  service payments and other revenues, allows the operator to pay             

                                                                                

23  operating and maintenance costs, debt service on obligations                

                                                                                

24  issued to finance the facility, and the rate of return on                   

                                                                                

25  investment specified in the comprehensive agreement.  If                    

                                                                                

26  specified in the comprehensive agreement, changes in the user               

                                                                                

27  fees may, subject to the requirements of this act and instruments           


                                                                                

1   under which debt or other obligations to finance the facility               

                                                                                

2   have been issued, be required to be approved by the responsible             

                                                                                

3   public entity.  User fees established under a comprehensive                 

                                                                                

4   agreement shall not be required to be approved by any other                 

                                                                                

5   public body in this state.                                                  

                                                                                

6       (4) A schedule of the current user fees shall be made                       

                                                                                

7   available by the operator to any member of the public on                    

                                                                                

8   request.                                                                    

                                                                                

9       (5) In negotiating user fees under this section, the parties                

                                                                                

10  shall establish fees that are the same for persons using the                

                                                                                

11  facility under the same or similar conditions, except that fees             

                                                                                

12  may rise with traffic congestion to encourage off-peak use of the           

                                                                                

13  facility.                                                                   

                                                                                

14      (6) The execution of the comprehensive agreement or an                      

                                                                                

15  amendment to the comprehensive agreement shall constitute                   

                                                                                

16  conclusive evidence that the user fees provided for in the                  

                                                                                

17  agreement comply with this act.                                             

                                                                                

18      (7) User fees established in the comprehensive agreement as a               

                                                                                

19  source of revenues may be in addition to, or in lieu of, service            

                                                                                

20  payments.                                                                   

                                                                                

21      (8) In the comprehensive agreement, the responsible public                  

                                                                                

22  entity may agree to make grants or loans to the operator from               

                                                                                

23  time to time from amounts received from any other public entity,            

                                                                                

24  the United States, or Canada.                                               

                                                                                

25      (9) The comprehensive agreement may contain provisions under                

                                                                                

26  which the responsible public entity agrees to provide notice of             

                                                                                

27  default and cure rights for the benefit of the operator and the             


                                                                                

1   persons specified in the comprehensive agreement as providing               

                                                                                

2   financing for the qualifying transportation facility.                       

                                                                                

3       Sec. 11.  (1) For the purpose of enabling the issuance of                   

                                                                                

4   tax-exempt obligations for the acquisition, construction, or                

                                                                                

5   improvement of a qualifying transportation facility, the                    

                                                                                

6   responsible public entity may do 1 or more of the following:                

                                                                                

7       (a) Incorporate or provide for the incorporation of a                       

                                                                                

8   nonprofit corporation under the nonprofit corporation act, 1982             

                                                                                

9   PA 162, MCL 450.2101 to 450.3192, or contract with an existing              

                                                                                

10  nonprofit corporation.                                                      

                                                                                

11      (b) Be a member of or control, directly or indirectly, a                    

                                                                                

12  nonprofit corporation.                                                      

                                                                                

13      (c) Under appropriate standards established by the                          

                                                                                

14  legislative body of the responsible public entity, act through              

                                                                                

15  the nonprofit corporation in accomplishing the purposes of this             

                                                                                

16  act.                                                                        

                                                                                

17      (d) Approve the issuance of the debt obligations of the                     

                                                                                

18  nonprofit corporation, but the debt or other obligations of the             

                                                                                

19  nonprofit corporation shall not be or become, as a result of the            

                                                                                

20  approval or for any other reason, the debt or other obligation              

                                                                                

21  of, or a pledge of the credit or taxing power of, the responsible           

                                                                                

22  public entity or any other public body.  Approval of the issuance           

                                                                                

23  of debt obligations of the nonprofit corporation by the                     

                                                                                

24  responsible public entity shall occur through the decision-making           

                                                                                

25  body of the responsible public entity.  If the responsible public           

                                                                                

26  entity is this state, the approval shall be made by the                     

                                                                                

27  commission.                                                                 


                                                                                

1       (2) In accordance with the comprehensive agreement, all or a                

                                                                                

2   portion of the operator's rights, duties, or obligations may be             

                                                                                

3   granted to or imposed upon the nonprofit corporation, in which              

                                                                                

4   case the nonprofit corporation is the successor of the operator             

                                                                                

5   to the extent of the grant or imposition.                                   

                                                                                

6       (3) The comprehensive agreement may provide for excess                      

                                                                                

7   earnings to be distributed to 1 or more of the following:                   

                                                                                

8       (a) The responsible public entity.                                          

                                                                                

9       (b) The operator for early debt reduction.                                  

                                                                                

10      (c) The affected local jurisdictions.                                       

                                                                                

11      (d) Any other public entity.                                                

                                                                                

12      (4) Notwithstanding any other provision of this act, the                    

                                                                                

13  comprehensive agreement may provide that the operator, after                

                                                                                

14  completion of the acquisition, construction, or improvement of              

                                                                                

15  the qualifying transportation facility, may transfer all or any             

                                                                                

16  part of the qualifying transportation facility to an appropriate            

                                                                                

17  public entity for operation.  A transfer of all or any part of              

                                                                                

18  the qualifying transportation facility is subject to the rights             

                                                                                

19  of a person or entity that has provided financing for the                   

                                                                                

20  facility including, but not limited to, the provider of any                 

                                                                                

21  credit, liquidity, interest rate swap, cap, floor, collar, or               

                                                                                

22  similar instrument related to the financing.                                

                                                                                

23      Sec. 12.  (1) The responsible public entity may take action                 

                                                                                

24  to obtain federal, state, provincial, or local assistance for a             

                                                                                

25  qualifying transportation facility that serves the public purpose           

                                                                                

26  of this act.                                                                

                                                                                

27      (2) The responsible public entity may enter into contracts                  


                                                                                

1   required to receive federal assistance.                                     

                                                                                

2       (3) The responsible public entity or another public entity                  

                                                                                

3   may determine that it serves the public purpose of this act for             

                                                                                

4   all or a portion of the costs of a qualifying transportation                

                                                                                

5   facility to be paid, directly or indirectly, from the proceeds of           

                                                                                

6   a grant or loan made by a public entity, the federal government             

                                                                                

7   of the United States, or the federal government of Canada.                  

                                                                                

8       Sec. 13.  (1) After providing notice to the operator and to                 

                                                                                

9   the secured parties that appear in the operator's records, the              

                                                                                

10  responsible public entity may bring an action for a judgment in a           

                                                                                

11  court of competent jurisdiction if the operator has materially              

                                                                                

12  defaulted on the comprehensive agreement.                                   

                                                                                

13      (2) Except upon agreement of the operator and other parties                 

                                                                                

14  identified in the comprehensive agreement, the responsible public           

                                                                                

15  entity may not exercise the remedies provided in this section or            

                                                                                

16  in section 14 unless a judgment has been entered by a court of              

                                                                                

17  competent jurisdiction.                                                     

                                                                                

18      (3) On entry by the court of a judgment under subsection (1),               

                                                                                

19  the responsible public entity may take 1 or more of the following           

                                                                                

20  actions:                                                                    

                                                                                

21      (a) Subject to subsections (4) and (5) and to any liens on                  

                                                                                

22  revenues previously granted by the operator to any person                   

                                                                                

23  providing financing, take over the qualifying transportation                

                                                                                

24  facility.                                                                   

                                                                                

25      (b) If the responsible public entity has the power of                       

                                                                                

26  condemnation, exercise the power of condemnation to acquire the             

                                                                                

27  qualifying transportation facility, except that a person that has           


                                                                                

1   provided financing for the qualifying transportation facility,              

                                                                                

2   and the operator, to the extent of its capital investment, may              

                                                                                

3   participate in the condemnation proceedings with the standing of            

                                                                                

4   a property owner.                                                           

                                                                                

5       (c) Subject to the rights of the holders of any obligations                 

                                                                                

6   of the operator incurred in connection with the financing of the            

                                                                                

7   acquisition, construction, improvement, maintenance, or operation           

                                                                                

8   of the qualifying transportation facility, terminate the                    

                                                                                

9   comprehensive agreement and exercise other rights and remedies              

                                                                                

10  available at law.                                                           

                                                                                

11      (d) Make or cause to be made appropriate claims under the                   

                                                                                

12  performance or payment bonds required under section 10(2)(a) or             

                                                                                

13  (b).                                                                        

                                                                                

14      (4) If the responsible public entity elects to take over a                  

                                                                                

15  qualifying transportation facility under subsection (3)(a), the             

                                                                                

16  responsible public entity shall take all of the following                   

                                                                                

17  actions:                                                                    

                                                                                

18      (a) Acquire, construct, improve, operate, and maintain the                  

                                                                                

19  qualifying transportation facility.                                         

                                                                                

20      (b) Impose user fees for the use of the qualifying                          

                                                                                

21  transportation facility.                                                    

                                                                                

22      (c) Comply with any service contracts.                                      

                                                                                

23      (5) Subject to subsection (6), revenues subject to a lien                   

                                                                                

24  shall be collected and paid to secured parties, as their                    

                                                                                

25  interests may appear, to the extent necessary to satisfy the                

                                                                                

26  operator's obligations to secured parties.                                  

                                                                                

27      (6) Before payments to secured parties, the responsible                     


                                                                                

1   public entity may use revenues to pay costs of current operation            

                                                                                

2   and maintenance of the qualifying transportation facility,                  

                                                                                

3   including compensation to the responsible public entity for its             

                                                                                

4   services in operating and maintaining the qualifying                        

                                                                                

5   transportation facility.                                                    

                                                                                

6       (7) Remaining revenues after all payments for operation and                 

                                                                                

7   maintenance of the qualifying transportation facility and                   

                                                                                

8   payments to secured parties, including payments to maintain                 

                                                                                

9   required reserves, have been made shall be paid to the operator,            

                                                                                

10  subject to the negotiated maximum rate of return.  The right to             

                                                                                

11  receive payment under this subsection shall be considered just              

                                                                                

12  compensation for the qualifying transportation facility.                    

                                                                                

13      (8) A takeover of the qualifying facility under this section                

                                                                                

14  by the responsible public entity shall not be considered to                 

                                                                                

15  operate as a pledge of the full faith and credit of the                     

                                                                                

16  responsible public entity to secure outstanding debt of the                 

                                                                                

17  operator and does not obligate the responsible public entity to             

                                                                                

18  pay an obligation of the operator from a source other than                  

                                                                                

19  revenues.                                                                   

                                                                                

20      Sec. 14.  At the request of the operator, the responsible                   

                                                                                

21  public entity may exercise the power of condemnation as provided            

                                                                                

22  by law for the purpose of acquiring real property or estates or             

                                                                                

23  interest in real property to the extent that the responsible                

                                                                                

24  public entity finds that the action serves the public purpose of            

                                                                                

25  this act.  An amount to be paid in a condemnation proceeding                

                                                                                

26  under this section shall be paid by the operator or from grants             

                                                                                

27  or loans as provided in section 12(3) or from other available               


                                                                                

1   funds.                                                                      

                                                                                

2       Sec. 15.  (1) The state, any affected local jurisdiction,                   

                                                                                

3   and any utility supplier, communication provider, or cable                  

                                                                                

4   television provider that uses facilities that are to be affected            

                                                                                

5   by the location of a qualifying transportation facility shall               

                                                                                

6   cooperate fully with the operator of the qualifying                         

                                                                                

7   transportation facility in planning and arranging all activities            

                                                                                

8   related to the location of the qualifying transportation                    

                                                                                

9   facility.                                                                   

                                                                                

10      (2) An entity specified in subsection (1) that possesses the                

                                                                                

11  power of condemnation may exercise that power in connection with            

                                                                                

12  the moving or relocation of facilities to be crossed by the                 

                                                                                

13  qualifying transportation facility or that must be relocated to             

                                                                                

14  the extent that the moving or relocation is made necessary or               

                                                                                

15  desirable by construction of or improvements to the qualifying              

                                                                                

16  transportation facility.  For purposes of this subsection,                  

                                                                                

17  construction or improvements include construction of or                     

                                                                                

18  improvements to temporary facilities for the purpose of providing           

                                                                                

19  service during the period of construction or improvement.                   

                                                                                

20      (3) An amount to be paid for the crossing, construction,                    

                                                                                

21  moving, or relocating of facilities shall be paid for by the                

                                                                                

22  operator from grants or loans as provided in section 12(3) or               

                                                                                

23  from other available sources of funds.                                      

                                                                                

24      Sec. 16.  On termination of the comprehensive agreement                     

                                                                                

25  described in section 10, and following payment of all amounts due           

                                                                                

26  to the provider of any financing for the qualifying                         

                                                                                

27  transportation facility, including the provider of any credit,              


                                                                                

1   liquidity, interest rate swap, cap, floor, collar, or similar               

                                                                                

2   instrument related to the financing, the authority and duties of            

                                                                                

3   the operator under this act shall cease and the qualifying                  

                                                                                

4   transportation facility shall be dedicated to the responsible               

                                                                                

5   public entity or, if the qualifying transportation facility was             

                                                                                

6   initially dedicated by an affected local jurisdiction, to the               

                                                                                

7   affected local jurisdiction, for public use.  An international              

                                                                                

8   river crossing that is a qualifying transportation facility may             

                                                                                

9   be partially dedicated to a province or political subdivision of            

                                                                                

10  Canada as provided in any agreement between the responsible                 

                                                                                

11  public entity and the province or political subdivision.                    

                                                                                

12      Sec. 17.  The responsible public entity shall have the                      

                                                                                

13  exclusive power to determine all matters specifically committed             

                                                                                

14  to it under this act.  Any decision or determination under this             

                                                                                

15  act that is not specifically required to be made by the                     

                                                                                

16  commission or the decision-making body of the responsible public            

                                                                                

17  entity may be made by the chief administrative officer of the               

                                                                                

18  responsible public entity or by the person designated in writing            

                                                                                

19  by the chief administrative officer to act in place of the chief            

                                                                                

20  administrative officer.  Any request for proposals or notice of             

                                                                                

21  receipt of an unsolicited proposal may provide that an entity               

                                                                                

22  that submits a proposal in response to the request or notice                

                                                                                

23  shall agree to be bound by all decisions of the responsible                 

                                                                                

24  public entity made in connection with that request or notice and            

                                                                                

25  that the entity shall not seek judicial review of those                     

                                                                                

26  decisions.                                                                  

                                                                                

27      Sec. 18.  This state, acting through the commission and the                 


                                                                                

1   department, is specifically authorized to undertake projects for            

                                                                                

2   interstate or international bridges, tunnels, or ferry                      

                                                                                

3   transportation facilities and to acquire, own and operate, and              

                                                                                

4   dispose of all property and property interests inside or outside            

                                                                                

5   of the borders of the state as may be necessary to accomplish the           

                                                                                

6   purposes of this act.                                                       

                                                                                

7       Sec. 19.  Obligations issued or incurred by an operator or                  

                                                                                

8   nonprofit corporation under this act are excluded from the                  

                                                                                

9   requirements under the revised municipal finance act, 2001 PA 34,           

                                                                                

10  MCL 141.2101 to 141.2821.