Michigan House Bill HB4026

Michigan 2023-2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

State agencies (proposed): authorities; use of grant funds and issuance of revenue bonds; modify. Amends secs. 2, 4, 8, 9, 14 & 22 of 1978 PA 639 (MCL 120.102 et seq.).

Impact

The impact of HB 4026 extends primarily to the legislative framework governing the creation and management of port authorities. It clarifies and expands upon the powers of these authorities to issue revenue bonds that can fund various port infrastructure projects, such as construction, rehabilitation, and operational improvements. This could lead to significant investments in port facilities, enhancing their capacity and efficiency, and potentially spurring economic growth in the regions served by these authorities. Additionally, the bill reinforces the idea of these authorities acting in the public interest, which is central to their operations.

Summary

House Bill 4026 seeks to amend the 'Hertel-Law-T. Stopczynski Port Authority Act' to enhance the functioning and powers of port authorities in Michigan. The bill includes provisions for the incorporation of port authorities by city and county resolutions with the governor's approval. This change aims to streamline the processes involved in establishing and managing port facilities, which are crucial for ensuring effective maritime transportation and trade operations within the state. By clarifying definitions related to port facilities and governance structures, the bill intends to facilitate local government participation in port authority initiatives.

Contention

Key points of contention around the bill revolve around the financial implications of allowing port authorities to issue revenue bonds that are not considered state debts. Critics may argue about potential overreach or mismanagement of funds if local governments do not have adequate oversight over these port authorities. Additionally, the tax exemption provisions for properties used for public purposes may raise concerns about lost revenue for local municipalities if substantial public-private partnerships are established. Ensuring a balance between facilitating port-related economic growth and maintaining local governance oversight will be crucial as discussions progress.