SB-0909, As Passed Senate, November 27, 2012

SUBSTITUTE FOR

SENATE BILL NO. 909

A bill to provide for certain regional transit authorities; to

provide regional public transportation; to prescribe certain powers

and duties of a regional transit authority and of certain state

agencies and officials; to authorize the levy of an assessment and

to provide for the issuance of bonds and notes; to collect certain

taxes; to make appropriations; to provide for the pledge of

assessment revenues and other funds for bond and note payments; and

to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

"regional transit authority act".

Sec. 1a. The intent of this legislation is to create a

regional transit system by establishing a regional transit

authority.

Sec. 2. As used in this act:

(a) "Authority" means a regional transit authority created

under this act.

(b) "Board" means the governing body of an authority.

act, 1909 PA 279, MCL 117.1 to 117.38.

(d) "Cost plus construction contract" means a contract under

which the contractor is paid a negotiated amount, regardless of the

expenses incurred by the contractor.

(e) "County executive" means the county executive of a county

or, if the county does not have an elected county executive, the

chair of the county board of commissioners.

(f) "Department" means the state transportation department.

(g) "Fiscal year" means the time period between October 1 of a

calendar year through September 30 of the following calendar year.

(h) "Governor's representative" means a resident of a public

transit region who is appointed to the board by the governor under

section 5(1)(a).

(i) "Local road agency" means that term as defined in section

9a of 1951 PA 51, MCL 247.659a.

(j) "Member jurisdiction" means a city or county that appoints

a member of a board under section 5.

(k) "Public transportation" means the movement of individuals

and goods by publicly owned bus, rapid transit vehicle, or other

conveyance that provides general or special service to the public,

but not including school buses or charter or sightseeing service or

transportation that is used exclusively for school purposes. Public

transportation includes the movement of individuals and goods by

privately owned bus, railroad car, rapid transit vehicle, or other

conveyance that, under a contract with an authority, provides

general or special service to the public, but not including school

buses or charter or sightseeing service or transportation that is

used exclusively for school purposes. Public transportation is a

transportation purpose within the meaning of section 9 of article

IX of the state constitution of 1963.

(l) "Public transportation facility" means all plants,

equipment, work instrumentalities, and real and personal property

and rights used or useful for public transportation.

(m) "Public transportation provider" means a public or private

entity that provides public transportation services and includes a

contractor providing services to a public transportation provider.

Public transportation provider includes an authority or agency

existing on or created after the effective date of this act. Public

transportation provider includes an authority formed under any of

the following:

(i) 1963 PA 55, MCL 124.351 to 124.359.

(ii) The urban cooperation act of 1967, 1967 (Ex Sess) PA 7,

MCL 124.501 to 124.512.

(iii) 1967 (Ex Sess) PA 8, MCL 124.531 to 124.536.

(iv) 1951 PA 35, MCL 124.1 to 124.13.

(v) The public transportation authority act, 1986 PA 196, MCL

124.451 to 124.479.

(vi) The revenue bond act of 1933, 1933 PA 94, MCL 141.101 to

141.140.

(n) "Public transit region" means an area of this state

consisting of a qualified region. Public transit region also

includes a county added to a public transit region by an authority

under section 4.

(o) "Public transportation system" means a system for

providing public transportation in the form of light rail, rolling

rapid transit, or other modes of public transportation and public

transportation facilities to individuals.

(p) "Qualified county" means a county in this state with the

largest population according to the most recent decennial census.

(q) "Qualified region" means a geographic area of this state

that includes a qualified county and the 3 counties with the

largest populations according to the most recent decennial census

that are contiguous to the qualified county.

(r) "Rolling rapid transit system" means bus services that may

combine the technology of intelligent transportation systems,

traffic signal priority, cleaner and quieter vehicles, rapid and

convenient fare collection, and integration with land use policy.

Rolling rapid transit may include, but is not limited to, all of

the following:

(i) Exclusive rights-of-way.

(ii) Rapid boarding and alighting.

(iii) Integration with other modes of transportation.

Sec. 3. (1) For an area of this state that is a qualified

region on the effective date of this act, an authority is created

on the effective date of this act for a public transit region that

includes the qualified region. For an area of this state that

becomes a qualified region after the effective date of this act, an

authority is created on the date the area becomes a qualified

region for the public transit region that includes the qualified

region. An authority created under this act is a municipal public

body corporate and a metropolitan authority authorized by section

27 of article VII of the state constitution of 1963, shall possess

the powers, duties, functions, and responsibilities vested in an

authority by this act, and shall carry out the rights, duties, and

obligations provided for in this act. An authority is not an agency

or authority of this state.

(2) The name of an authority created under subsection (1)

shall include the phrase "regional transit authority".

Sec. 4. (1) A county that is not included in a public transit

region and is not a participant in an authority may petition an

authority to become a part of the public transit region and the

authority, subject to approval of the petition by resolution of the

governing body of the petitioning county.

(2) A petitioning county shall be added to a public transit

region and an authority if both of the following conditions are

satisfied:

(a) The petitioning county is adjacent to a county that is, at

the time of the petition, included in the public transit region.

(b) The addition of the petitioning county to the public

transit region and the authority is approved by the board.

(3) If an authority is levying an assessment under section

10(2) or a motor vehicle registration tax under section 10(3), or

both, a petitioning county that satisfies the conditions under

subsection (2) is a provisional member of the authority without

voting power or transportation service from the authority until the

assessment levied by the authority under section 10(2) or the motor

vehicle registration tax under section 10(3), or both, is approved

by a majority of the electors of the petitioning county at the

first general or special election held on a regular date as

provided in the Michigan election law, 1954 PA 116, MCL 168.1 to

168.992, to occur at least 71 days after appointment of a board

member representing the petitioning county under section 5(12).

Sec. 5. (1) An authority shall be directed and governed by a

board consisting of all of the following:

(a) One governor's representative appointed by the governor,

who shall serve without vote.

(b) Two individuals appointed by the county executive of the

county within the public transit region with the second largest

population according to the most recent decennial census.

county within the public transit region with the third largest

population according to the most recent decennial census.

(d) Two individuals appointed by the county executive of a

county within the public transit region with the fourth largest

population according to the most recent decennial census.

(e) Two individuals appointed by the county executive of the

qualified county within the public transit region. One of the 2

individuals appointed under this subdivision shall be a resident of

a city within the qualified county with the largest population

according to the most recent decennial census.

(f) One individual appointed by the mayor of the city within

the qualified county with the largest population according to the

most recent decennial census.

(g) After the initial appointment of board members under

subsection (2), if the addition of a petitioning county is approved

by the board under section 4, 2 individuals appointed by the county

executive of the petitioning county as provided in subsection (12).

(2) Initial appointments of the members of a board shall be

made within 90 days after the creation of an authority, and a board

may not exercise any powers, duties, functions, or responsibilities

under this act until all of the initial members identified under

subsection (1) are appointed and qualified. Except as otherwise

provided in this section, members of a board shall be appointed for

a term of 3 years. Of the members initially appointed, 1 of the 2

board members appointed by each county executive under subsection

(1)(b) to (e) shall be appointed for an initial term of 1 year, a

board member appointed under subsection (1)(f) shall be appointed

for an initial term of 2 years, and the governor's representative

and 1 of the 2 board members appointed by each county executive

under subsection (1)(b) to (e) shall be appointed for an initial

term of 3 years. If a vacancy occurs on a board other than by

expiration of a term, the vacancy shall be filled in the same

manner as the original appointment for the remainder of the term. A

board member may continue to serve until a successor is appointed

and qualified.

(3) A board member shall not be an employee of the county or

city appointing the board member under subsection (1) or an

employee of a public transportation provider operating in a public

transit region.

(4) A board member shall not be a currently serving elected

officer of this state or a political subdivision of this state.

(5) A board member shall be a resident of and registered

elector in the county or city from which he or she is appointed.

(6) A board member shall have substantial business, financial,

or professional experience relevant to the operation of a

corporation or public transportation system.

(7) Upon appointment to the board, a board member shall take

and subscribe to the oath of office required under section 1 of

article XI of the state constitution of 1963.

(8) A board member shall serve without compensation, but may

receive reimbursement for necessary travel and expenses consistent

with relevant statutes and the rules and procedures of the civil

service commission and the department of technology, management,

and budget, subject to available funding.

(9) An individual who is not of good moral character or who

has been convicted of, pled guilty or no contest to, or forfeited

bail concerning a felony under the laws of this state, any other

state, or the United States shall not be appointed or remain as a

member of the board.

(10) A member of a board shall discharge the duties of the

position in a nonpartisan manner, in good faith, in the best

interests of this state, and with the degree of diligence, care,

and skill that an ordinarily prudent person would exercise under

similar circumstances in a like position. A member of the board

shall not make or participate in making a decision, or in any way

attempt to use his or her position as a member of the board to

influence a decision, on a matter before an authority in which the

member is directly or indirectly interested. A member of a board

shall not be interested directly or indirectly in any contract with

an authority or the department that would cause a substantial

conflict of interest. A member of a board shall comply, and a board

shall adopt policies and procedures that require members to comply,

with the requirements of this subsection and all of the following:

(a) 1978 PA 472, MCL 4.411 to 4.431, as if the board member

were subject to that act and that board member's receipt of a gift

or compensation would be in violation of that act if given by a

lobbyist, a lobbyist agent, or a representative of a lobbyist under

that act.

(b) 1978 PA 566, MCL 15.181 to 15.185.

state officer.

(d) 1968 PA 317, MCL 15.321 to 15.330, as if he or she were a

public servant.

(e) 1973 PA 196, MCL 15.341 to 15.348, as if he or she were a

public officer.

(11) No contract entered into by an authority and no bonds,

notes, or other obligations issued by an authority shall be void or

voidable except as provided in 1968 PA 318, MCL 15.301 to 15.310,

or 1968 PA 317, MCL 15.321 to 15.330. A contract entered into by an

authority or a bond, note, or other obligation issued by an

authority is not void or voidable by reason of a board member's

failure to comply with subsection (10)(a) to (e).

(12) If a county is added to a public transit region under

section 4, the board members representing the transit district

consisting of that county shall be appointed under subsection (1)

within 30 days after the conditions of section 4(2)(a) and (b) have

been satisfied and at least 71 days prior to an election under

section 4(3). If an assessment levied under section 10(2) or a

motor vehicle registration tax under section 10(3), or both, is not

approved under section 4(3), the appointment of a board member

under this subsection is void.

(13) The governor may remove a board member from office for a

violation of subsection (9) or (10).

Sec. 6. (1) Within 30 days after the appointment of the

members of a board under section 5, the board shall hold its first

meeting at a date and time to be determined by the governor's

representative. The governor's representative shall serve without

vote and shall serve as chairperson of the board. The board members

shall elect officers as necessary. The board shall elect all

officers annually.

(2) The business of a board shall be conducted at a public

meeting held in compliance with the open meetings act, 1976 PA 267,

MCL 15.261 to 15.275. Public notice of the date, time, and place of

the meeting shall be given in the manner required by the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275. A board shall

adopt bylaws consistent with the open meetings act, 1976 PA 267,

MCL 15.261 to 15.275. After organization, a board shall adopt a

schedule of regular meetings. A board shall meet at least once each

quarter. A special meeting of a board may be called by the

chairperson of the board or as provided in the bylaws of the board.

(3) A majority of the voting members of a board constitute a

quorum for the transaction of the business of an authority. Actions

of a board shall be by simple majority vote of all voting members

of the board, except as follows:

(a) A board shall provide in its bylaws that the following

actions require the approval of 7/9 of the voting members, and the

7/9 must include the affirmative vote of at least 1 member from

each participating county and a member appointed under section

5(1)(f):

(i) The placing of a question of the levy of an assessment

under section 10(2) on the ballot by an authority.

(ii) The determination of the rate of, or amount of, any

assessment to be requested by an authority at an election.

(iii) The placing of a question of approving a motor vehicle

registration tax on the ballot by an authority.

(iv) The determination of the rate of, or amount of, any motor

vehicle registration tax to be requested by an authority at an

election.

(b) A board shall provide in its bylaws that the following

actions require the unanimous approval of all voting members of the

board:

(i) A determination to acquire, construct, operate, or maintain

any form of rail passenger service within a public transit region.

(ii) A determination to acquire a public transportation

provider. Unless an authority secures the affirmative vote of a

majority of the electors of each member county in the public

transit region as provided in section 7(2), the authority shall not

acquire a public transportation provider that does business in a

public transit region unless both of the following conditions are

satisfied:

(A) All accrued liabilities, funded and unfunded, of the

public transportation provider being acquired have been paid or are

required to be paid by a person other than the authority.

(B) The board unanimously agrees to comply with all

requirements for obtaining federal operating and capital assistance

grants under the moving ahead for progress in the 21st century act,

Public Law 112-141, and the regulations promulgated under the

moving ahead for progress in the 21st century act, Public Law 112-

141, with respect to the public transportation provider being

acquired.

(iii) A determination to place on a ballot the question of

acquiring, accepting responsibility for, or obligating itself to

assume liability for or to pay any legacy costs, including, but not

limited to, costs associated with litigation, claims, assessments,

worker's compensation awards or charges, swap losses, pensions,

health care, or other postemployment benefits, of a public

transportation provider that may be purchased, merged with,

assumed, or otherwise acquired by an authority.

(4) A board shall keep a written or printed record of each

meeting. A written or printed record of each meeting and any other

document or record prepared, owned, used, in the possession of, or

retained by an authority in the performance of an official function

shall be made available to the public under the freedom of

information act, 1976 PA 442, MCL 15.231 to 15.246.

(5) A board shall provide for a uniform system of accounts for

an authority to conform to and for the auditing of the authority's

accounts. The board shall obtain an annual audit of an authority by

an independent certified public accountant and report on the audit

and auditing procedures under sections 6 to 13 of the uniform

budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433.

The audit shall be in accordance with generally accepted government

auditing standards and shall satisfy federal regulations regarding

federal grant compliance audit requirements. An audit obtained

under this subsection shall be filed with the state treasurer and

the department.

(6) Within 90 days after the first board meeting, a board

shall adopt and maintain a budget for the fiscal year in accordance

with the uniform budget and accounting act, 1968 PA 2, MCL 141.421

to 141.440a.

(7) Within 90 days after the first board meeting, a board

shall establish policies and procedures for the purchase of, the

contracting for, and the providing of supplies, materials,

services, insurance, utilities, third party financing, equipment,

printing, and all other items as needed by an authority to

efficiently and effectively meet its needs using competitive

procurement methods to secure the best value for the authority. A

board shall make all discretionary decisions concerning the

solicitation, award, amendment, cancellation, and appeal of

authority contracts. In establishing policies and procedures under

this subsection, a board shall provide for the acquisition of

professional services, including, but not limited to, architectural

services, consulting services, engineering services, surveying

services, accounting services, services related to the issuance of

bonds, and legal services, in accordance with a competitive,

qualifications-based selection process and procedure for the type

of professional service required by an authority.

(8) Beginning 1 calendar year after the creation of an

authority under this act, the board shall submit a report to the

house of representatives and senate appropriations subcommittees on

transportation and the house of representatives and senate

committees on transportation on March 31 of each year that includes

all of the following information from the preceding calendar year:

(a) Financial status of the authority.

(b) Financial status of public transportation providers within

the public transit region.

(d) The status of any rolling rapid transit system.

(e) The average daily and annual ridership of a rolling rapid

transit system.

(f) The dashboard developed by the authority under subsection

(9)(d).

(g) The number and severity of any accidents that occur that

involve a rolling rapid transit system.

(9) Within 120 days after the first board meeting, a board

shall establish a website for the authority and the authority shall

post on the website its budget, policies and procedures, and

updates on authority activities and transactions and the progress

of any project, including, but not limited to, a proposed rolling

rapid transit system, as they become available. An authority shall

also post all of the following information on a website established

under this subsection:

(a) An asset management plan for all revenue vehicles and

facilities, major facility components, and major pieces of

equipment as defined by the department. An authority shall update

the asset management plan annually.

(b) The method used by the authority to determine the

percentage of operating costs that will be funded with local funds

and the percentage that will be funded with fares. An authority

shall update this information every 3 years.

satisfaction and a survey of general public satisfaction with the

services and performance of the authority once every 3 years. An

authority shall provide results for the most recent completed

surveys under this subdivision to the department.

(d) A dashboard of the authority's performance that includes,

at a minimum, the information required under subdivisions (a)

through (c). The dashboard shall also include annual performance

indicators for the authority that have been established by the

board. The dashboard shall be readily available to the public, and

the authority shall update the dashboard annually.

(10) A board may not enter into a cost plus construction

contract unless all of the following apply:

(a) The contract cost is less than $50,000.00.

(b) The contract is for emergency repair or construction

caused by unforeseen circumstances.

property.

(d) The contract complies with state and federal law.

(11) Within 90 days after the first board meeting, a board

shall adopt a procurement policy consistent with the requirements

of this act and federal and state laws relating to procurement.

Preference shall be given to firms based in a public transit region

and each county within a public transit region, consistent with

applicable law.

(12) Nothing in this section shall be construed as creating a

quota or set-aside for any city or any county in a public transit

region, and no quota or set-aside shall be created.

(13) An authority shall issue an annual report to the board

and each member jurisdiction within a public transit region

detailing all contracts entered into and listing the names and

headquarters of all authority vendors with whom the authority has

contracted for services during the previous fiscal year.

(14) Within 90 days after the first board meeting, a board

shall establish and adopt all of the following:

(a) A policy to govern the control, supervision, management,

and oversight of each contract to which an authority is a party.

(b) Procedures to monitor the performance of each contract to

assure execution of the contract within the budget and time periods

provided under the contract. The monitoring shall include oversight

as to whether the contract is being performed in compliance with

the terms of the contract, this act, and federal and state law. The

chief executive officer or other authorized employee of an

authority shall not sign or execute a contract until the contract

is approved by the board.

procurement or employment contract with a person who has been

convicted of a criminal offense related to the application for or

performance of a contract or subcontract with a governmental entity

in any state. As used in this subdivision and subdivision (d),

"person" includes affiliates, subsidiaries, officers, directors,

and managerial employees of a business entity, or an individual or

entity who, indirectly or directly, holds a pecuniary interest in a

business entity of 20% or more.

(d) Polices to ensure that the authority does not enter into a

procurement or employment contract with a person who has been

convicted of a criminal offense, or held liable in a civil

proceeding, in this state or any other state, that negatively

reflects on the person's business integrity, based on a finding of

embezzlement, theft, forgery, bribery, falsification or destruction

of records, receiving stolen property, violation of state or

federal antitrust statutes, or similar laws.

(15) An authority is not required to use competitive bidding

when acquiring proprietary services, equipment, or information

available from a single source, such as a software license

agreement. An authority may enter into a competitive purchasing

agreement with the federal government, this state, or other public

entities for the purchase of necessary goods or services. An

authority may enter into lease purchases or installment purchases

for periods not exceeding the useful life of the items purchased

unless otherwise prohibited by law. In all purchases made by an

authority, if consistent with applicable federal and state law,

preference shall be given first to products manufactured or

services offered by firms based in the authority's public transit

region, including, but not limited to, the cities and counties in a

public transit region, and second to firms based in this state. An

authority shall actively solicit lists of potential bidders for

authority contracts from each city and each county in a public

transit region. Except as otherwise provided in this section, an

authority shall utilize competitive solicitation for all purchases

authorized under this act unless 1 or more of the following apply:

(a) An emergency directly and immediately affecting service or

public health, safety, or welfare requires the immediate

procurement of supplies, materials, equipment, or services to

mitigate an imminent threat to public health, safety, or welfare,

as determined by an authority or its chief executive officer.

(b) Procurement of goods or services is for emergency repair

or construction caused by unforeseen circumstances when the repair

or construction is necessary to protect life or property.

declared state of emergency or state of disaster under the

emergency management act, 1976 PA 390, MCL 30.401 to 30.421.

(d) Procurement of goods or services is in response to a

declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.

(e) Procurement of goods or services is in response to a

declared state of energy emergency under 1982 PA 191, MCL 10.81 to

10.89.

(f) Procurement of goods or services is under a cooperative

purchasing agreement with the federal government, this state, or

another public entity for the purchase of necessary goods and

services at fair and reasonable prices using a competitive

procurement method for authority operations.

(g) The value of the procurement is less than $25,000.00, and

the board has established policies or procedures to ensure that

goods or services with a value of less than $25,000.00 are

purchased by the board at fair and reasonable prices, including a

requirement that for purchases and sales of $25,000.00 or less, but

over $5,000.00, written price quotations from at least 3 qualified

and responsible vendors shall be obtained or a memorandum shall be

kept on file showing that fewer than 3 qualified and responsible

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

obtain quotations. Procurement of goods or services with a value of

less than $5,000.00 may be negotiated with or without using

competitive bidding as authorized in a procurement policy adopted

by the board.

(16) Notwithstanding any other requirement of this act, if an

authority applies for and receives state or federal funds that

require the authority to comply with procurement or contracting

requirements that are in conflict with this act, the state or

federal requirements shall take precedence over the requirements of

this act.

(17) A board may employ personnel as it considers necessary to

assist the board in performing the powers, duties, and

jurisdictions of the authority, including, but not limited to,

employment of a chief executive officer and other senior executive

and administrative staff. A board shall hire a chief executive

officer and any necessary support staff for the chief executive

officer. Individual board members shall not hire or be assigned

personal staff.

(18) A board shall establish policies to ensure that the board

and an authority do not do either of the following:

(a) Fail or refuse to hire, recruit, or promote; demote;

discharge; or otherwise discriminate against an individual with

respect to employment, compensation, or a term, condition, or

privilege of employment, or a contract with the authority in a

manner that is not in compliance with state or federal law.

(b) Limit, segregate, or classify an employee, a contractor,

or an applicant for employment or a contract in a way that deprives

or tends to deprive the employee, contractor, or applicant of an

employment opportunity or otherwise adversely affects the status of

an employee, contractor, or applicant in a manner that is not in

compliance with state or federal law.

(19) A board shall create a citizens' advisory committee that

consists of public transit region residents. The citizens' advisory

committee shall be composed as follows:

(a) Forty percent of the committee shall be made up of users

of public transportation, as follows:

(i) At least 25% of the users of public transportation on the

committee shall be senior citizens or persons with disabilities.

(ii) Two users of public transportation from each of the

following counties within the public transit region for the

authority:

(A) The qualified county.

(B) The county with the second largest population according to

the most recent decennial census.

(D) The county with the fourth largest population according to

the most recent decennial census.

(iii) Two users of public transportation from the city in the

qualified county with the largest population according to the most

recent decennial census.

(iv) Two users of public transportation from each additional

county participating in the authority under section 4 and not

listed in subparagraph (ii).

(b) Twenty percent of the committee shall be made up of

individuals from organizations representing senior citizens and

persons with disabilities.

individuals representing business, labor, community, and faith-

based organizations.

(20) A citizens' advisory committee created under subsection

(19) may meet at least once every quarter. The citizens' advisory

committee may make reports to a board, including recommendations,

at each board meeting. A citizens' advisory committee may do all of

the following:

(a) Review and comment on the comprehensive regional public

transit service plan for a public transit region and all annual

updates.

(b) Advise a board regarding the coordination of functions

between different owners and operators of public transportation

facilities within a public transit region.

plan required by section 10e of 1951 PA 51, MCL 247.660e.

(d) Upon request of a board, provide recommendations on other

matters that concern public transportation in a public transit

region.

(21) A board shall create a public transportation provider

advisory council that consists of 2 members appointed by each

public transportation provider in the public transit region. The

public transportation provider advisory council may make reports to

a board, including recommendations, at each board meeting. The

public transportation provider advisory council shall only make

recommendations to a board on the following issues:

(a) Coordination of service.

(b) Funding.

(d) Specialized services.

(e) Other matters as requested by a board.

Sec. 7. (1) Except as otherwise provided in this act, an

authority may do all things necessary and convenient to implement

the purposes, objectives, and provisions of this act and the

purposes, objectives, and powers vested in the authority or the

board by this act or other law, including, but not limited to, all

of the following:

(a) Adopt and use a corporate seal.

(b) Adopt, amend, and repeal bylaws for the regulation of its

affairs and the conduct of its business.

(d) Borrow money and issue bonds and notes under this act.

(e) Make and enter into contracts, agreements, or instruments

necessary, incidental, or convenient to the performance of its

duties and execution of its powers, duties, functions, and

responsibilities under this act with any federal, state, local, or

intergovernmental governmental agency or with any other person or

entity, public or private, upon terms and conditions acceptable to

the authority.

(f) Engage in collective negotiation or collective bargaining

and enter into agreements with a bargaining representative as

provided by 1947 PA 336, MCL 423.201 to 423.217.

(g) Solicit, receive, and accept gifts, grants, labor, loans,

contributions of money, property, or other things of value, and

other aid or payment from any federal, state, local, or

intergovernmental agency or from any other person or entity, public

or private, upon terms and conditions acceptable to the authority,

or participate in any other way in a federal, state, local, or

intergovernmental program.

(h) Apply for and receive loans, grants, guarantees, or other

financial assistance in aid of a public transportation system from

any state, federal, local, or intergovernmental agency or from any

other source, public or private, including, but not limited to,

financial assistance for purposes of developing, planning,

constructing, improving, or operating a public transportation

system.

(i) Procure insurance or become a self-funded insurer against

loss in connection with the property, assets, or activities of the

authority.

(j) Indemnify and procure insurance indemnifying board members

from personal loss or accountability for liability asserted by a

person with regard to bonds or other obligations of the authority,

or from any personal liability or accountability by reason of the

issuance of bonds or other obligations or by reason of any other

action taken or the failure to act by the authority.

(k) Invest money of the authority, at the discretion of the

board, in instruments, obligations, securities, or property

determined proper by the board and name and use depositories for

authority money. Investments shall be made consistent with an

investment policy adopted by the board that complies with this act

and 1943 PA 20, MCL 129.91 to 129.97a.

(l) Contract for goods and services as necessary, subject to

section 6.

(m) Employ legal and technical experts, consultants, or other

officers, agents, employees, or personnel, permanent or temporary,

as considered necessary by the board, as permitted by this act.

(n) Contract for the services of persons for rendering

professional or technical assistance, including, but not limited

to, consultants, managers, legal counsel, engineers, accountants,

and auditors, as permitted by this act.

(o) Establish and maintain an office.

(p) Acquire property or rights and interests in property by

gift, devise, transfer, exchange, purchase, lease, or otherwise on

terms and conditions and in a manner the authority considers

proper. Property or rights or interests in property acquired by an

authority may be by purchase contract, lease purchase, agreement,

installment sales contract, land contract, or otherwise. The

acquisition of property by an authority for a public transportation

system in furtherance of the purposes of the authority is for a

public use, and the exercise of any other powers granted to the

authority is declared to be a public, governmental, and municipal

function, purpose, and use exercised for a public purpose and

matters of public necessity.

(q) Hold, clear, remediate, improve, maintain, manage,

protect, control, sell, exchange, lease, or grant easements and

licenses on property or rights or interests in property that the

authority acquires, holds, or controls.

(r) Convey, sell, transfer, exchange, lease, or otherwise

dispose of property or rights or interests in property to any

person for consideration on terms and conditions and in a manner

the authority considers proper, fair, and valuable.

(s) Acquire a public transportation provider under section

6(3)(b)(ii).

(t) Promulgate rules and adopt regulations for the orderly,

safe, efficient, and sanitary operation and use of a public

transportation system owned by the authority.

(u) Subject to section 13, use this state's rights-of-way

throughout the public transit region for public transportation.

(v) Create separate operating entities.

(w) Enter into contracts or other arrangements with a person

or entity for granting the privilege of naming or placing

advertising on or in all or any portion of facilities or equipment

of the authority.

(x) Do all other things necessary or convenient to exercise

the powers, duties, functions, and responsibilities of the

authority under this act or other laws related to the purposes,

powers, duties, functions, and responsibilities of the authority.

(2) Notwithstanding any other provision of this act, an

authority may not acquire, accept responsibility for, or obligate

itself to assume liability for, or pay any legacy costs of a public

transportation provider that may be purchased, merged with,

assumed, or otherwise acquired in any manner by the authority,

including, but not limited to, costs associated with any authority

or agency's litigation, claims, assessments, worker's compensation

awards or charges, swap losses, pensions, health care, or other

postemployment benefits of a public transportation provider without

first securing an affirmative vote of a majority of the electors of

each member county in the public transit region.

(3) An authority shall adopt a public transit plan for its

public transit region. An authority shall adopt the most recent

public transit plan of any public transportation provider within

the public transit region that is a designated recipient of federal

funds as its initial plan. An authority shall integrate all of

these plans into a single regional master transit plan for the

entire public transit region. An authority may amend a single

regional master transit plan as necessary and shall update the plan

annually. An authority may establish and operate new or additional

routes and public transportation facilities using various forms of

transportation modalities. An authority may employ operating

personnel, negotiate collective bargaining agreements with

operating personnel, or own operating assets of a public

transportation service within a public transit region. An authority

shall coordinate the operating and capital transit plans of

transportation agencies and authorities within a public transit

region.

(4) Subject to available resources, an authority may plan,

design, develop, construct, and operate a rolling rapid transit

system on at least 1 or more corridors within the authority's

public transit region. An authority, with the approval of the

federal transit administration and in compliance with all

applicable federal and state regulations, shall determine exact

routes and station locations. An authority may design routes to

augment, complement, enhance, replace, or improve other forms of

public transportation operating within or on the corridors.

(5) Subject to subsection (4), if an authority created on the

effective date of this act includes Macomb county, Oakland county,

or Wayne county, the authority may, subject to available resources,

plan, design, develop, construct, and operate a rolling rapid

transit system on at least 4 corridors within the authority's

public transit region and the initial plans for a rolling rapid

transit system may include all of the following:

(a) A Woodward corridor line to operate along, on, or near

Woodward avenue between a location in or near the downtown Detroit

station and a location in downtown Pontiac in Oakland county. As

used in this subsection, "downtown Detroit station" means a

location in or near the Campus Martius area of downtown Detroit.

(b) A Gratiot corridor line to operate along, on, or near

Gratiot avenue between the downtown Detroit station and a location

in downtown Mt. Clemens in Macomb county.

of Pontiac and the city of Mt. Clemens, using a route to be

determined by the authority. The route determined by the authority

under this subdivision shall have stations along Big Beaver road in

the city of Troy and highway M-59 in portions of Oakland and Macomb

counties.

(d) A western cross-county line to operate between the

downtown Detroit station and the Ann Arbor Blake transit center for

a distance of approximately 47 miles. This corridor shall include,

at a minimum, stations in the city of Ypsilanti, Detroit Wayne

county metropolitan airport, and the city of Dearborn. The

authority shall determine the exact route.

(6) Expenses of an authority incurred in the planning and

operation of a rolling rapid transit system are not eligible for an

operating grant under section 10e of 1951 PA 51, MCL 247.660e.

(7) An authority may charge fares and enter into contracts for

the services provided by the public transportation system as

necessary to provide funds to meet the obligations of the

authority.

(8) A county or other political subdivision or agency, public

or private, may assist, cooperate with, and contribute services,

money, or property in aid of an authority and its powers, duties,

functions, and responsibilities under this act.

Sec. 8. (1) Beginning on the first day of the fiscal year that

begins after the effective date of this act, an authority shall be

the designated recipient for its public transit region for purposes

of applying for federal operating and capital assistance grants

under the moving ahead for progress in the 21st century act, Public

Law 112-141, and the regulations promulgated under that act. As the

designated recipient of federal transit funds, an authority has the

following powers and responsibilities:

(a) Make application for and receive federal transit funds for

a public transit region on behalf of an authority or on behalf of 1

or more public transportation providers in the public transit

region.

(b) Review an application for planning, operating, or capital

assistance for a program under the federal transit act, Public Law

88-365, prior to that application's being submitted by a public

transportation provider in the public transit region. In reviewing

an application under this subdivision, the authority shall consider

how the projects included in the application, on their own and in

combination with other applications under review by the authority,

will contribute to all of the following:

(i) Effective and efficient transportation services throughout

the public transit region.

(ii) Achieving and maintaining the public transit region's

transit infrastructure in a state of good repair.

(iii) Coordination of transportation services among public

transportation providers.

(iv) Strategic investment in a regional rolling rapid transit

system.

(v) Other factors determined appropriate by the board and

included in written board policies or procedures.

application within 60 days after a complete application is

submitted to the authority by a public transportation provider.

(2) Beginning on the first day of the fiscal year that begins

after the effective date of this act, a public transportation

provider in a public transit region shall not submit an application

to a federal agency for operating and capital assistance grants

under the moving ahead for progress in the 21st century act, Public

Law 112-141, and the regulations promulgated under that act, unless

the board has approved the application under subsection (1). If a

public transportation provider in a public transit region submits

an application to a federal agency that has not been approved by

the board under subsection (1), the public transportation provider

is not eligible to receive matching funds under section 10e of 1951

PA 51, MCL 247.660e, for any projects included in that application.

(3) Beginning on the first day of the fiscal year that begins

after the effective date of this act, to the extent required by the

moving ahead for progress in the 21st century act, Public Law 112-

141, and the regulations promulgated under that act, an authority

may execute a supplemental agreement conferring on a public

transportation provider in a public transit region the right to

receive and dispense federal grant funds for applications that have

been approved by the board under subsection (1).

(4) Beginning on the first day of the fiscal year that begins

after the effective date of this act, an authority has the sole

authority to submit an application to the department for a public

transit region for programs provided for in section 10e of 1951 PA

51, MCL 247.660e.

(5) Beginning on the first day of the fiscal year that begins

after the effective date of this act, an authority shall require

all public transportation providers in a public transit region to

submit an annual funding request directly to the authority for each

program for which the provider is eligible under section 10e of

1951 PA 51, MCL 247.660e. An authority shall evaluate all requests

submitted under this subsection and prepare and submit to the

department a single consolidated application for the public transit

region for each state program. An application prepared under this

subsection shall be submitted by the deadline established by the

department. An application prepared under this subsection shall

include the proposed dollar amount to be allocated to each public

transportation provider for each program. In preparing a

consolidated application under this subsection and determining the

proposed allocation to each public transportation provider, the

board shall consider how the allocations will contribute to each of

the following:

(a) The ability of each public transportation provider to

maintain current services and infrastructure.

(b) The effectiveness and efficiency of public transportation

service throughout the public transit region.

transit infrastructure in a state of good repair.

(d) The matching federal aid for federal applications approved

by the board.

(e) The coordination of public transportation services among

public transportation providers in the public transit region.

(f) Strategic investment in a regional rolling rapid transit

system.

(g) Other factors determined appropriate by the board and

included in written board policies or procedures.

(6) Beginning on the first day of the fiscal year that begins

after the effective date of this act, a public transportation

provider shall submit the annual funding request required by

subsection (5) to an authority in accordance with written

procedures adopted by the board and at least 60 days before the

application deadline established by the department. A board may

withhold payment on current year distributions made to a public

transportation provider if that public transportation provider

fails to submit a complete annual funding request to the authority

at least 60 days before the application deadline established by the

department.

(7) If an award of funding by the department is less than the

total requested by an authority for a program, the board shall

adjust the allocation to each public transportation provider

proportionately.

(8) Except as provided in subsection (9), for the programs

provided for in section 10e of 1951 PA 51, MCL 247.660e, the

department shall only award funds to an authority. An authority

shall be responsible for distribution of funds awarded by the

department to public transportation providers within a public

transit region based on the application approved by the department.

An authority is responsible for monitoring and oversight of the use

of funds distributed under this subsection by each public

transportation provider in the public transit region. Upon receipt

of funds from the department, an authority shall distribute the

funds allocated to each public transportation provider in a timely

manner.

(9) For the programs provided for in section 10e of 1951 PA

51, MCL 247.660e, if the department approves funding to match a

federal award, the department may, with the concurrence of an

authority, award the funds directly to the public transportation

provider that is the federal award recipient.

(10) A board shall adopt procedures for the implementation of

subsections (1) to (6) within 90 days after the first board meeting

under section 6.

(11) In order to be eligible for a distribution under

subsection (8), a public transportation provider shall annually

submit a report by a date established by the board. The report

shall describe and evaluate the efforts of the public

transportation provider to coordinate service with other public

transportation providers in that public transit region. The report

shall include, but is not limited to, a description of the

successful and unsuccessful efforts of the public transportation

provider to do all of the following:

(a) Coordinate routes, schedules, fares, and points of

transfer.

(b) Provide information or services to riders that help

facilitate transfers from 1 public transportation provider to

another.

(12) An authority shall coordinate service overlap, rates,

routing, scheduling, and any other function that the authority

considers necessary to implement or execute the comprehensive

regional transit service plan between authorities, agencies, and

owners or operators of public transportation facilities within the

public transit region. An authority may issue coordination

directives regarding public transportation services, including, but

not limited to, routes, schedules, and fares. An authority shall

provide notice of coordination directives issued under this

subsection to owners and operators of public transportation

facilities in the public transit region. An authority may withhold

up to 5% of the allocation of state funding under this section from

a public transportation provider that fails to comply with a

coordination directive of the authority, as determined by the

board. A coordination directive issued under this subsection

preempts a city, village, or township provision or procedure to the

extent that the provision or procedure is in conflict with the

coordination directive.

Sec. 9. (1) Subject to section 7, an authority may acquire

property for a public transportation system by purchase,

construction, lease, gift, or devise, either within or without the

area served by the public transportation system, and may hold,

manage, control, sell, exchange, or lease property. An authority

shall comply with the laws of this state for the purpose of

condemnation proceedings. An authority may only utilize

condemnation proceedings to acquire property located within the

authority's public transit region.

(2) Except as otherwise provided in this subsection, the

property of an authority and its income, activities, and operations

are exempt from all taxes and special assessments of this state or

a political subdivision of this state. Property of an authority and

its income, activities, and operations that are leased to private

persons are not exempt from any tax or special assessment of this

state or a political subdivision of this state. Property of an

authority is exempt from ad valorem property taxes collected under

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, or

other law of this state authorizing taxation of real or personal

property.

(3) The property of an authority created under this act is

public property devoted to an essential public and governmental

purpose. Income of the authority is for a public and governmental

purpose.

Sec. 10. (1) An authority may raise revenues to fund all of

its activities, operations, and investments consistent with its

Senate Bill No. 909 as amended November 27, 2012

purposes. The sources of revenue available to an authority include,

but are not limited to, all of the following:

(a) Fees, fares, rents, or other charges for use of a public

transportation system.

(b) Federal, state, or local government grants, loans,

appropriations, payments, or contributions.

other disposition of property acquired by the authority.

(d) Grants, loans, appropriations, payments, proceeds from

repayments of loans made by the authority, or contributions from

public or private sources.

(e) The proceeds of an assessment levied under subsection (2).

(f) The proceeds of a motor vehicle registration tax collected

under subsection (3).

(g) Investment earnings on the revenues described in

subdivisions (a) to (f).

(2) An authority may levy an assessment within the public

transit region only as approved by the board and a majority of the

electors of the public transit region voting on the assessment at a

general << >>election held on <<the regular November election date>>

as provided in <<section 641(1)(d) of>>

the Michigan election law, 1954 PA 116, <<MCL 168.641>>. An

assessment approved by the board and a majority of electors of the

public transit region under this subsection shall be collected and

enforced in the same manner as taxes are collected and enforced

under the general property tax act, 1893 PA 206, MCL 211.1 to

211.155. When submitting a proposal on the question of authorizing

an assessment to be levied under this act, the ballot shall state

all of the following:

(a) The assessment rate to be authorized.

(b) The duration of the assessment.

(d) A clear statement indicating whether the proposed

assessment is a renewal of a previously authorized assessment or

the authorization of a new additional assessment.

(3) An authority may collect a motor vehicle registration tax

dedicated to the purpose of public transportation, if authorized

under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.

(4) An authority shall ensure that not less than 85% of the

money raised in each member jurisdiction through either an

assessment under subsection (2) or a motor vehicle registration tax

under subsection (3), or both, is expended on the public

transportation service routes located in that member jurisdiction.

(5) Starting in the fiscal year that begins at least 12 months

after the effective date of this act, an authority shall submit to

the department an asset management plan for all revenue vehicles

and facilities, major facility components, and major pieces of

equipment as defined by the department. An authority shall update

the asset management plan annually.

(6) After the first 12 months of operation of a rolling rapid

transit system, and annually thereafter, an authority shall provide

a report to the legislative body of each member jurisdiction

showing the cost of service and revenue generated in each member

jurisdiction.

Sec. 11. (1) For the purpose of acquiring, improving,

enlarging, or extending a public transportation system, an

authority may issue self-liquidating revenue bonds under the

revenue bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140, or

any other act providing for the issuance of self-liquidating

revenue bonds. The bonds are not a general obligation of an

authority, but are payable solely from the revenue of a public

transportation system. If an authority issues self-liquidating

revenue bonds with a pledge of the full faith and credit of the

authority, those revenue bonds are subject to the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821.

(2) An authority may borrow money and issue municipal

securities in accordance with, and exercise all of the powers

conferred upon municipalities by, the revised municipal finance

act, 2001 PA 34, MCL 141.2101 to 141.2821.

(3) All bonds, notes, or other evidence of indebtedness issued

by an authority, and interest on bonds, notes, or other evidence of

indebtedness, are free and exempt from all taxation in this state,

except for transfer and franchise taxes.

(4) The issuance of bonds, notes, or other evidence of

indebtedness by an authority requires approval of the board.

(5) An agreement entered into under this section is payable

from general funds of an authority or, subject to any existing

contracts, from any available money or revenue sources, including

revenues specified by the agreement, securing the bonds, notes, or

other evidence of indebtedness in connection with which the

agreement is entered into.

Sec. 12. (1) The revenue raised by an authority may be

pledged, in whole or in part, for the repayment of bonded

indebtedness and other expenditures issued or incurred by the

authority.

(2) A financial obligation of an authority is a financial

obligation of the authority only and not an obligation of this

state or any city or county within a public transit region. A

financial obligation of an authority shall not be transferred to

this state or any city or county within a public transit region.

Sec. 13. (1) An authority may acquire, own, construct,

furnish, equip, complete, operate, improve, and maintain a public

transportation system on the streets and highways of this state

with the approval of a local road agency or the department, on

terms and conditions mutually agreed to by the authority and the

local road agency or the department. Approval shall be embodied in

an operating license agreement with the authority and each local

road agency with operational jurisdiction over the streets and

highways upon which the authority operates or seeks to operate a

public transportation system or the department, if the department

has operational jurisdiction over the streets and highways upon

which the authority operates or seeks to operate a public

transportation system. A local road agency or the department shall

not unreasonably withhold its consent to an operating license

agreement, and a local road agency or the department shall

determine whether to consent to an operating license agreement in

an expeditious manner. An operating license may include provisions

concerning the use of dedicated lanes and a system to change

traffic signals in order to expedite public transportation

services. Any provision for use of a dedicated lane shall provide

that use of that dedicated lane shall be made available to

emergency services vehicles.

(2) When operating on the streets and highways of a road

agency, an authority is subject to rules, regulations, or

ordinances required to preserve operations of the streets and

highways and to ensure compliance with the rules and regulations of

the funding source used to construct and maintain the streets and

highways.

(3) An authority shall not construct a public transportation

system on the streets and highways of a local road agency or the

department until there is an operating license agreement executed

by the authority and the local road agency or the department.

(4) An authority may acquire, own, construct, furnish, equip,

complete, operate, improve, and maintain a public transportation

system on public or private rights-of-way and obtain easements when

necessary for the authority to acquire and use private property for

acquiring, owning, constructing, furnishing, equipping, completing,

operating, improving, and maintaining a public transportation

system.

(5) If a local road agency or the department enters into an

operating license agreement under this section, the local road

agency or the department shall not revoke the consent or deprive an

authority of the rights and privileges conferred without affording

the authority procedural due process of law.

Sec. 14. In the exercise of its powers under this act, an

authority is exempt from the motor carrier act, 1933 PA 254, MCL

475.1 to 479.43, 1939 PA 3, MCL 460.1 to 460.11, and the motor bus

transportation act, 1982 PA 432, MCL 474.101 to 474.141.

Sec. 15. Local zoning or land use ordinances or regulations do

not apply to a public transportation system or a rolling rapid

transit system that is planned, acquired, owned, or operated by an

authority under this act.

Sec. 16. An election or vote of the public authorized by this

act shall be conducted in accordance with the Michigan election

law, 1954 PA 116, MCL 168.1 to 168.992.

Sec. 17. The costs of planning, administering, constructing,

reconstructing, financing, and maintaining state, county, city, and

village roads, streets, and bridges designed primarily for the use

of motor vehicles using tires, including the costs of reasonable

appurtenances to those state, county, city, and village roads,

streets, and bridges, are a transportation purpose within the

meaning of section 9 of article IX of the state constitution of

1963, when such costs are to facilitate a public transportation

system that moves individuals or goods with vehicles using tires.

Sec. 18. There is appropriated to each authority created under

this act the sum of $250,000.00 from the comprehensive

transportation fund created in section 10b of 1951 PA 51, MCL

247.660b, to begin implementing the requirements of this act. Any

portion of this amount under this section that is not expended in

the 2012-2013 state fiscal year shall not lapse to the general fund

but shall be carried forward in a work project account that is in

compliance with section 451a of the management and budget act, 1984

PA 431, MCL 18.1451a.