HB-5132, As Passed House, January 29, 2014

 

 

 

 

 

 

 

 

 

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, or to

 

be appointed to the board by a public official. 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 or upon the expiration of the

 

service of the public official who appointed the member. The

 

expiration of the member's 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.