| 1 | 1 | | HOUSE BILL NO. 6124 A bill to amend 2000 PA 321, entitled "Recreational authorities act," by amending sections 5, 7, and 9 (MCL 123.1135, 123.1137, and 123.1139), section 5 as amended by 2003 PA 135, and by adding section 10. the people of the state of michigan enact: Sec. 5. (1) Two One or more municipalities or districts may establish a recreational authority. A recreational authority is an authority under section 6 of article IX of the state constitution of 1963. A recreational authority under this act constitutes a governmental subdivision or unit of this state and a public body corporate and politic. (2) To initiate the establishment of an authority, articles of incorporation shall must be prepared. The articles of incorporation shall must include all of the following: (a) The name of the authority. (b) The names of the participating municipality or municipalities. (c) A description of the territory of the authority. (d) The size of the board of the authority, which shall must be comprised of an odd number of members; the qualifications, method of selection, and terms of office of board members; and the filling of vacancies in the office of board member. If board members are elected in at-large elections by the qualified and registered electors of the participating municipality or municipalities, voting collectively, the election of board members shall must be conducted pursuant to the same procedures that govern an election for a tax under sections 13 to 17. (e) The purposes for which the authority is established. , which shall be Permissible purposes include the acquisition, construction, operation, maintenance, or improvement of 1 or more of the following: (i) A public swimming pool. (ii) A public recreation center. (iii) A public auditorium. (iv) A public conference center. (v) A public park. (vi) A public museum. (vii) A public historic farm. (viii) A public forest and natural resources area. (f) The procedure and requirements for a municipality or district to become a participating municipality in, and for a participating municipality to withdraw from, an existing authority or to join in the original formation of an authority. For a municipality or district to become a participating municipality in an existing authority or to join in the original formation of an authority, a majority of the electors of the municipality or district proposed to be included in the territory of the authority and voting on the question shall approve a tax that the authority has been authorized to levy by a vote of the electors of the authority under section 11. A municipality or district shall not withdraw from an authority during the period for which the authority has been authorized to levy a tax by the electors of the authority. (g) Any other matters considered advisable. (h) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, the process by which the authority designates property the authority owns as a public forest and natural resources area. (3) The articles shall must be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of each participating municipality. If a participating municipality is a district, the articles shall must be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of the entire municipality. The amendment of the articles is subject to the voting requirements specified by the articles. If the articles do not specify a voting requirement to amend the articles, the voting requirement to amend the articles is the same as the voting requirement to adopt the articles. Unless the articles provide otherwise, the requirements of this subsection do not apply to an amendment to the articles to allow a municipality or district to become a participating municipality in, or to allow a participating municipality to withdraw from, an existing authority. (4) Before the articles or amendments to the articles are adopted, the articles or amendments to the articles shall must be published not less than once in a newspaper generally circulated within the participating municipality or municipalities. The adoption of articles or amendments to the articles by a municipality or district shall must be evidenced by an endorsement on the articles or amendments by the clerk of the municipality. (5) Upon adoption of the articles or amendments to the articles by each of the participating municipalities, municipality, a printed copy of the articles or the amended articles shall must be filed with the secretary of state by the clerk of the last participating municipality to adopt the articles or amendments. (6) The authority's articles of incorporation, or amendments to the articles, take effect upon filing with the secretary of state. (7) Subject to this section, the articles of incorporation may include, but are not limited to, any of the following: (a) The ability to remove elected members of the board of the authority for cause, after a public hearing, by a unanimous vote of the remaining board members. Cause may be defined by the articles or by the bylaws of the authority. The ability under this subdivision is in addition to any removal or recall process provided for under law with respect to elected board members. (b) Restrictions on the authority's activities, including, but not limited to, the sale of the authority's assets or property. (c) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, a provision to allow, but not require, the authority to make payments in lieu of taxes to 1 or more other governmental subdivisions or units of this state in which the public forest and natural resources area is located, including a participating municipality. The payment in lieu of taxes may be calculated using a formula agreed to by the authority and the other governmental subdivisions or units of this state. (d) If the authority has more than 1 participating municipality, the allocation of the authority's property, assets, and funds among the municipalities on the dissolution of the authority. (e) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, 1 or more of the following: (i) One or more restrictions or limitations on the use of a public forest and natural resources area or portions of a public forest and natural resources area. (ii) A process by which 1 or more restrictions or limitations on the use of a public forest and natural resources area or portions of a public forest and natural resources area are established by the authority, and the amendment or removal of the restrictions or limitations. The use restrictions or limitations may prohibit 1 or more of the uses permitted in a public forest and natural resources area under section 3(j). Sec. 7. (1) A vacancy occurs on the board on the happening of any of the events set forth in section 3 of 1846 RS 15, MCL 201.3. Appointed members of the board, if any, may be removed by the appointing authority for good cause after a public hearing. Vacancies shall must be filled in the same manner as the original appointment, or as otherwise provided in the articles, for the unexpired term. (2) A majority of the members of the board constitutes a quorum for the purpose of conducting business and exercising the powers of an authority. Official action may be taken by an authority upon the vote of a majority of the board members present, unless the authority adopts bylaws requiring a larger number. (3) A member of the board shall not may receive compensation for services as a member of the board but if approved in the articles of incorporation and is entitled to reimbursement for reasonable expenses, including expenses for travel previously authorized by the board, incurred in the discharge of his or her the board member's duties. (4) The business that an authority may perform shall performs must be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting shall must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. (5) A writing prepared, owned, or used by an authority in the performance of an official function shall must be made available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. (6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers necessary. A board shall meet at least quarterly. (7) A board may adopt bylaws to govern its procedures. (8) A board may establish 1 or more committees to provide advice on specific issues relevant to the authority. The board may determine the qualifications required to serve on a committee created under this subsection. Members of a committee created by a board under this subsection serve at the pleasure of the board. Committees created under this subsection may create volunteer subcommittees that do not serve at the pleasure of the board. Sec. 9. An Subject to the authority's articles, an authority may do 1 or more of the following: (a) Acquire and hold, by purchase, lease with or without option to purchase, grant, gift, devise, land contract, installment purchase contract, bequest, or other legal means, real and personal property inside or outside the territory of the authority. The property may include franchises, easements, or rights of way on, under, or above any property. The authority may pay for the property from, or pledge for the payment of the property, revenue of the authority. The authority may acquire land from this state, including, but not limited to, land from any department, subdivision, or unit of this state. (b) Apply for and accept grants or contributions from individuals, the federal government or any of its agencies, this state, a municipality, or other public or private agencies to be used for any of the purposes of the authority. (c) Hire full-time or part-time employees and retain professional services. (d) Provide for the maintenance of all of the real and personal property of the authority. (e) Assess and collect fees for services provided by and expenses incurred by the authority. (f) Receive revenue as appropriated by the legislature of this state or a participating municipality or distribute funds of the authority to any participating municipality. (g) Enter into contracts incidental to or necessary for the accomplishment of the purposes of the authority. (h) Sell, lease, license, or develop real and personal property held by the authority. (i) Establish an endowment fund or other type of supporting fund to support the purposes of the authority. (j) Subject to applicable laws and contractual obligations of the authority, make and enforce rules for the use of property the authority owns, operates, or manages. (k) Permit and manage sustainable natural resource commercial activities including, but not limited to, both of the following: (i) The development, management, and operation of sustainable commercial forestry. (ii) The sale of carbon or other environmental credits or tax attributes. Sec. 10. (1) Except as otherwise provided in this section, if an authority dissolves, all property, funds, and assets of the authority are vested in the participating municipality or municipalities. (2) If the property owned by an authority was designated by the authority as a public forest and natural resources area, on dissolution of the authority, the designated use of the property must be continued. If the designated use of the property is not continued by the participating municipality or municipalities, the property must revert to this state. The reversionary interest under this subsection is in addition to, and does not alter or supersede, any other reversionary interest the state may hold in the property. (3) If property owned by an authority was designated by the authority as a public forest and natural resources area, the participating municipality or municipalities may elect to waive their right, in full or in part, to the property. If the participating municipality or municipalities waive their right, in full or in part, to the property, the property or portion of the property reverts to this state. (4) If an authority was in existence before the effective date of the amendatory act that added this subsection and the authority's articles address the disposition of the authority's property, funds, and assets on dissolution, the articles control disposition of the property, funds, and assets on dissolution. (5) Nothing in this act alters or supersedes any third-party rights, including rights of the state or federal government, attached to the property owned by an authority. Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.____ (request no. 06625'24) of the 102nd Legislature is enacted into law. |
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| 23 | 23 | | HOUSE BILL NO. 6124 |
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| 26 | 26 | | |
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| 27 | 27 | | A bill to amend 2000 PA 321, entitled |
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| 28 | 28 | | |
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| 29 | 29 | | "Recreational authorities act," |
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| 30 | 30 | | |
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| 31 | 31 | | by amending sections 5, 7, and 9 (MCL 123.1135, 123.1137, and 123.1139), section 5 as amended by 2003 PA 135, and by adding section 10. |
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| 32 | 32 | | |
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| 33 | 33 | | the people of the state of michigan enact: |
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| 34 | 34 | | |
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| 35 | 35 | | Sec. 5. (1) Two One or more municipalities or districts may establish a recreational authority. A recreational authority is an authority under section 6 of article IX of the state constitution of 1963. A recreational authority under this act constitutes a governmental subdivision or unit of this state and a public body corporate and politic. |
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| 36 | 36 | | |
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| 37 | 37 | | (2) To initiate the establishment of an authority, articles of incorporation shall must be prepared. The articles of incorporation shall must include all of the following: |
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| 38 | 38 | | |
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| 39 | 39 | | (a) The name of the authority. |
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| 40 | 40 | | |
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| 41 | 41 | | (b) The names of the participating municipality or municipalities. |
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| 42 | 42 | | |
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| 43 | 43 | | (c) A description of the territory of the authority. |
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| 44 | 44 | | |
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| 45 | 45 | | (d) The size of the board of the authority, which shall must be comprised of an odd number of members; the qualifications, method of selection, and terms of office of board members; and the filling of vacancies in the office of board member. If board members are elected in at-large elections by the qualified and registered electors of the participating municipality or municipalities, voting collectively, the election of board members shall must be conducted pursuant to the same procedures that govern an election for a tax under sections 13 to 17. |
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| 46 | 46 | | |
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| 47 | 47 | | (e) The purposes for which the authority is established. , which shall be Permissible purposes include the acquisition, construction, operation, maintenance, or improvement of 1 or more of the following: |
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| 48 | 48 | | |
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| 49 | 49 | | (i) A public swimming pool. |
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| 50 | 50 | | |
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| 51 | 51 | | (ii) A public recreation center. |
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| 52 | 52 | | |
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| 53 | 53 | | (iii) A public auditorium. |
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| 54 | 54 | | |
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| 55 | 55 | | (iv) A public conference center. |
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| 56 | 56 | | |
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| 57 | 57 | | (v) A public park. |
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| 58 | 58 | | |
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| 59 | 59 | | (vi) A public museum. |
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| 60 | 60 | | |
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| 61 | 61 | | (vii) A public historic farm. |
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| 62 | 62 | | |
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| 63 | 63 | | (viii) A public forest and natural resources area. |
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| 64 | 64 | | |
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| 65 | 65 | | (f) The procedure and requirements for a municipality or district to become a participating municipality in, and for a participating municipality to withdraw from, an existing authority or to join in the original formation of an authority. For a municipality or district to become a participating municipality in an existing authority or to join in the original formation of an authority, a majority of the electors of the municipality or district proposed to be included in the territory of the authority and voting on the question shall approve a tax that the authority has been authorized to levy by a vote of the electors of the authority under section 11. A municipality or district shall not withdraw from an authority during the period for which the authority has been authorized to levy a tax by the electors of the authority. |
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| 66 | 66 | | |
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| 67 | 67 | | (g) Any other matters considered advisable. |
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| 68 | 68 | | |
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| 69 | 69 | | (h) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, the process by which the authority designates property the authority owns as a public forest and natural resources area. |
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| 70 | 70 | | |
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| 71 | 71 | | (3) The articles shall must be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of each participating municipality. If a participating municipality is a district, the articles shall must be adopted and may be amended by an affirmative vote of a majority of the members serving on the legislative body of the entire municipality. The amendment of the articles is subject to the voting requirements specified by the articles. If the articles do not specify a voting requirement to amend the articles, the voting requirement to amend the articles is the same as the voting requirement to adopt the articles. Unless the articles provide otherwise, the requirements of this subsection do not apply to an amendment to the articles to allow a municipality or district to become a participating municipality in, or to allow a participating municipality to withdraw from, an existing authority. |
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| 72 | 72 | | |
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| 73 | 73 | | (4) Before the articles or amendments to the articles are adopted, the articles or amendments to the articles shall must be published not less than once in a newspaper generally circulated within the participating municipality or municipalities. The adoption of articles or amendments to the articles by a municipality or district shall must be evidenced by an endorsement on the articles or amendments by the clerk of the municipality. |
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| 74 | 74 | | |
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| 75 | 75 | | (5) Upon adoption of the articles or amendments to the articles by each of the participating municipalities, municipality, a printed copy of the articles or the amended articles shall must be filed with the secretary of state by the clerk of the last participating municipality to adopt the articles or amendments. |
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| 76 | 76 | | |
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| 77 | 77 | | (6) The authority's articles of incorporation, or amendments to the articles, take effect upon filing with the secretary of state. |
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| 78 | 78 | | |
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| 79 | 79 | | (7) Subject to this section, the articles of incorporation may include, but are not limited to, any of the following: |
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| 80 | 80 | | |
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| 81 | 81 | | (a) The ability to remove elected members of the board of the authority for cause, after a public hearing, by a unanimous vote of the remaining board members. Cause may be defined by the articles or by the bylaws of the authority. The ability under this subdivision is in addition to any removal or recall process provided for under law with respect to elected board members. |
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| 82 | 82 | | |
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| 83 | 83 | | (b) Restrictions on the authority's activities, including, but not limited to, the sale of the authority's assets or property. |
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| 84 | 84 | | |
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| 85 | 85 | | (c) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, a provision to allow, but not require, the authority to make payments in lieu of taxes to 1 or more other governmental subdivisions or units of this state in which the public forest and natural resources area is located, including a participating municipality. The payment in lieu of taxes may be calculated using a formula agreed to by the authority and the other governmental subdivisions or units of this state. |
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| 86 | 86 | | |
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| 87 | 87 | | (d) If the authority has more than 1 participating municipality, the allocation of the authority's property, assets, and funds among the municipalities on the dissolution of the authority. |
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| 88 | 88 | | |
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| 89 | 89 | | (e) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public forest and natural resources area, 1 or more of the following: |
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| 90 | 90 | | |
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| 91 | 91 | | (i) One or more restrictions or limitations on the use of a public forest and natural resources area or portions of a public forest and natural resources area. |
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| 92 | 92 | | |
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| 93 | 93 | | (ii) A process by which 1 or more restrictions or limitations on the use of a public forest and natural resources area or portions of a public forest and natural resources area are established by the authority, and the amendment or removal of the restrictions or limitations. The use restrictions or limitations may prohibit 1 or more of the uses permitted in a public forest and natural resources area under section 3(j). |
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| 95 | 95 | | Sec. 7. (1) A vacancy occurs on the board on the happening of any of the events set forth in section 3 of 1846 RS 15, MCL 201.3. Appointed members of the board, if any, may be removed by the appointing authority for good cause after a public hearing. Vacancies shall must be filled in the same manner as the original appointment, or as otherwise provided in the articles, for the unexpired term. |
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| 96 | 96 | | |
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| 97 | 97 | | (2) A majority of the members of the board constitutes a quorum for the purpose of conducting business and exercising the powers of an authority. Official action may be taken by an authority upon the vote of a majority of the board members present, unless the authority adopts bylaws requiring a larger number. |
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| 98 | 98 | | |
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| 99 | 99 | | (3) A member of the board shall not may receive compensation for services as a member of the board but if approved in the articles of incorporation and is entitled to reimbursement for reasonable expenses, including expenses for travel previously authorized by the board, incurred in the discharge of his or her the board member's duties. |
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| 100 | 100 | | |
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| 101 | 101 | | (4) The business that an authority may perform shall performs must be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting shall must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. |
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| 102 | 102 | | |
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| 103 | 103 | | (5) A writing prepared, owned, or used by an authority in the performance of an official function shall must be made available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. |
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| 104 | 104 | | |
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| 105 | 105 | | (6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers necessary. A board shall meet at least quarterly. |
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| 106 | 106 | | |
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| 107 | 107 | | (7) A board may adopt bylaws to govern its procedures. |
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| 108 | 108 | | |
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| 109 | 109 | | (8) A board may establish 1 or more committees to provide advice on specific issues relevant to the authority. The board may determine the qualifications required to serve on a committee created under this subsection. Members of a committee created by a board under this subsection serve at the pleasure of the board. Committees created under this subsection may create volunteer subcommittees that do not serve at the pleasure of the board. |
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| 110 | 110 | | |
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| 111 | 111 | | Sec. 9. An Subject to the authority's articles, an authority may do 1 or more of the following: |
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| 112 | 112 | | |
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| 113 | 113 | | (a) Acquire and hold, by purchase, lease with or without option to purchase, grant, gift, devise, land contract, installment purchase contract, bequest, or other legal means, real and personal property inside or outside the territory of the authority. The property may include franchises, easements, or rights of way on, under, or above any property. The authority may pay for the property from, or pledge for the payment of the property, revenue of the authority. The authority may acquire land from this state, including, but not limited to, land from any department, subdivision, or unit of this state. |
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| 114 | 114 | | |
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| 115 | 115 | | (b) Apply for and accept grants or contributions from individuals, the federal government or any of its agencies, this state, a municipality, or other public or private agencies to be used for any of the purposes of the authority. |
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| 116 | 116 | | |
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| 117 | 117 | | (c) Hire full-time or part-time employees and retain professional services. |
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| 118 | 118 | | |
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| 119 | 119 | | (d) Provide for the maintenance of all of the real and personal property of the authority. |
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| 120 | 120 | | |
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| 121 | 121 | | (e) Assess and collect fees for services provided by and expenses incurred by the authority. |
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| 122 | 122 | | |
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| 123 | 123 | | (f) Receive revenue as appropriated by the legislature of this state or a participating municipality or distribute funds of the authority to any participating municipality. |
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| 124 | 124 | | |
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| 125 | 125 | | (g) Enter into contracts incidental to or necessary for the accomplishment of the purposes of the authority. |
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| 126 | 126 | | |
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| 127 | 127 | | (h) Sell, lease, license, or develop real and personal property held by the authority. |
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| 128 | 128 | | |
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| 129 | 129 | | (i) Establish an endowment fund or other type of supporting fund to support the purposes of the authority. |
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| 130 | 130 | | |
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| 131 | 131 | | (j) Subject to applicable laws and contractual obligations of the authority, make and enforce rules for the use of property the authority owns, operates, or manages. |
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| 132 | 132 | | |
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| 133 | 133 | | (k) Permit and manage sustainable natural resource commercial activities including, but not limited to, both of the following: |
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| 134 | 134 | | |
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| 135 | 135 | | (i) The development, management, and operation of sustainable commercial forestry. |
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| 136 | 136 | | |
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| 137 | 137 | | (ii) The sale of carbon or other environmental credits or tax attributes. |
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| 138 | 138 | | |
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| 139 | 139 | | Sec. 10. (1) Except as otherwise provided in this section, if an authority dissolves, all property, funds, and assets of the authority are vested in the participating municipality or municipalities. |
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| 140 | 140 | | |
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| 141 | 141 | | (2) If the property owned by an authority was designated by the authority as a public forest and natural resources area, on dissolution of the authority, the designated use of the property must be continued. If the designated use of the property is not continued by the participating municipality or municipalities, the property must revert to this state. The reversionary interest under this subsection is in addition to, and does not alter or supersede, any other reversionary interest the state may hold in the property. |
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| 142 | 142 | | |
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| 143 | 143 | | (3) If property owned by an authority was designated by the authority as a public forest and natural resources area, the participating municipality or municipalities may elect to waive their right, in full or in part, to the property. If the participating municipality or municipalities waive their right, in full or in part, to the property, the property or portion of the property reverts to this state. |
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| 144 | 144 | | |
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| 145 | 145 | | (4) If an authority was in existence before the effective date of the amendatory act that added this subsection and the authority's articles address the disposition of the authority's property, funds, and assets on dissolution, the articles control disposition of the property, funds, and assets on dissolution. |
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| 146 | 146 | | |
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| 147 | 147 | | (5) Nothing in this act alters or supersedes any third-party rights, including rights of the state or federal government, attached to the property owned by an authority. |
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| 148 | 148 | | |
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| 149 | 149 | | Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.____ (request no. 06625'24) of the 102nd Legislature is enacted into law. |
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