HB-5132, As Passed House, June 11, 2014HB-5132, As Passed Senate, June 10, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5132

     A bill to amend 1974 PA 338, entitled

"Economic development corporations act,"

by amending section 4 (MCL 125.1604), as amended by 1987 PA 67.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4. (1) Application, in writing, may be made by a group of

3 or more persons to the governing body for permission to

incorporate the economic development corporation for the

municipality. Application shall include proposed articles of

incorporation. The governing body shall give public notice of the

application, and after public hearing, with notice of the hearing

given in accordance with section 17(1), may approve the

application. As a part of the approval, the governing body may make

such any amendments to the proposed articles of incorporation as it

considers appropriate.

     (2) The board of directors of the corporation shall consist of

not less than 9 persons, not more than 3 of whom shall be an

officer or employee of the municipality. The chief executive

officer and any member of the governing body of the municipality

may serve on the board of directors. These directors shall be

appointed for terms of 6 years, except of the directors first

appointed, 4 shall be appointed for 6 years, 1 for 5 years, 1 for 4

years, 1 for 3 years, 1 for 2 years, and 1 for 1 year. The

corporation shall notify the chief executive officer of the

municipality in writing upon the corporation's designation of the

project area as provided in section 8(1), and there shall be

appointed promptly after that notice 2 additional directors of the

corporation who shall serve only in respect to that project and

shall be representative of neighborhood residents and business

interests likely to be affected by the project proposed by the

corporation and who shall cease to serve when the project for which

they are appointed is either abandoned or, if undertaken, is

completed in accordance with the project plan. Directors shall

serve without salary, but may be reimbursed their actual expenses

incurred in the performance of their official duties, and may

receive a per diem of not more than $50.00. The meetings of the

board of directors shall be public. Directors shall be public

officers. The rules of procedure or the by-laws of the corporation

may permit a person to be appointed to the board in his or her

capacity as a public official, whether appointed or elected. The

rules of procedure or the by-laws of the corporation may also

provide that a member's term on the board shall expire upon

expiration of the member's service as a public official. The

expiration of service as a public official shall be defined to also

include the public official's resignation or removal from the

position as a public official.

     (3) The chief executive officer of a municipality, with the

advice and consent of the governing body, or in the case of a

county where there is not an elected chief executive officer, the

chairperson of the county board of commissioners, with the advice

and consent of the county board of commissioners, shall appoint the

members of the board of directors.

     (4) Subsequent directors shall be appointed in the same manner

as original appointments at the expiration of each director's term

of office.

     (5) A director whose term of office has expired shall continue

to hold office until the director's successor has been appointed

with the advice and consent of the governing body. A director may

be reappointed with the advice and consent of the governing body to

serve additional terms. If a vacancy is created by death or

resignation or removal by operation of law, a successor shall be

appointed with the advice and consent of the governing body within

30 days to hold office for the remainder of the term of the vacated

office.

     (6) A director may be removed from office for cause by a

majority vote of the governing body.

     (7) A director who has a direct interest in any matter before

the corporation shall disclose the director's interest before the

corporation takes any action with respect to the matter, which

disclosure shall become a part of the record of the corporation's

official proceedings and the interested director shall further

refrain from participation in the corporation's proceedings

relating to the matter.

     (8) By ordinance, the governing body of a municipality that

has a population of less than 5,000 may have the municipality's

planning commission created pursuant to Act No. 285 of the Public

Acts of 1931, being sections 125.31 to 125.45 of the Michigan

Compiled Laws, the Michigan planning enabling act, 2008 PA 33, MCL

125.3801 to 125.3885, serve as the board of directors provided for

in this section.