HB-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.