Bill Text: MI SB0585 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; other; regional convention facility authority act; modify. Amends secs. 5 & 19 of 2008 PA 554 (MCL 141.1355 & 141.1369). TIE BAR WITH: SB 0586'09, SB 0587'09, SB 0588'09
Spectrum: Partisan Bill (Republican 4-0)
Status: (Engrossed - Dead) 2009-06-17 - Referred To Committee On Regulatory Reform [SB0585 Detail]
Download: Michigan-2009-SB0585-Engrossed.html
SB-0585, As Passed Senate, May 27, 2009
SUBSTITUTE FOR
SENATE BILL NO. 585
A bill to amend 2008 PA 554, entitled
"Regional convention facility authority act,"
by amending sections 5 and 19 (MCL 141.1355 and 141.1369).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. As used in this act:
(a) "Authority" means a regional convention facility authority
created under section 7.
(b) "Board" means the board of directors of an authority.
(c) "Convention facility" means all or any part of, or any
combination of, a convention hall, auditorium, arena, meeting
rooms, exhibition area, and related adjacent public areas that are
generally available to the public for lease on a short-term basis
for holding conventions, meetings, exhibits, and similar events,
together with real or personal property, and easements above, on,
or under the surface of real or personal property, used or intended
to be used for holding conventions, meetings, exhibits, and similar
events, together with appurtenant property, including covered
walkways, parking lots, or structures, necessary and convenient for
use in connection with the convention facility. Convention facility
includes an adjacent arena with a seating capacity not exceeding
10,000. Convention facility does not include an adjacent arena with
a seating capacity exceeding 10,000.
(d) "Develop" means to plan, acquire, construct, improve,
enlarge, maintain, renew, renovate, repair, replace, lease, equip,
furnish, market, promote, manage, or operate.
(e) "Fiscal year" means an annual period that begins on July 1
and ends on June 30 or the fiscal year for an authority established
by the board of the authority.
(f) "Legislative body" means the elected body of a local
government possessing the legislative power of the local
government.
(g) "Local chief executive officer" means the mayor or city
manager of a city or the county executive of a county or, if a
county does not have a county executive, the chairperson of the
county board of commissioners.
(h) "Local government" means a county or city. For purposes of
sections 17(1)(t) and 19 other than section 19(1)(f), local
government includes a building authority or downtown development
authority created by a county or city under 1975 PA 197, MCL
125.1651 to 125.1681.
(i) "Qualified city" means a city with a population of more
than 700,000 according to the most recent decennial census that
contains a qualified convention facility.
(j) "Qualified county" means a county that contains a
qualified city.
(k) "Qualified convention facility" means a publicly owned
convention facility with not less than 600,000 square feet of
usable exhibition area and that is located in a qualified city.
(l) "Qualified metropolitan area" means a geographic area of
this state that includes a qualified city, a qualified county, and
the 2 counties bordering the qualified county with the largest
populations according to the most recent decennial census.
(m)
"Transfer date" means July
1, 2009, the date 90 days after
the
creation of an authority under section 7 on which the right,
title, interest, ownership, and control of a qualified convention
facility are conveyed and transferred from a qualified city to an
authority. if
the transfer is not disapproved as provided under
section
19(1).
Sec.
19. (1) Within 45 days of the effective date of this act
or
the date on which a metropolitan area becomes a qualified
metropolitan
area and prior to a transfer date, After
May 1, 2009
and before July 1, 2009, the legislative body of the qualified city
in which a qualified convention facility is located may disapprove
the transfer of the qualified convention facility to the authority
by adopting a resolution disapproving the transfer. If the transfer
of the qualified convention facility to the authority is
disapproved after May 1, 2009 and before July 1, 2009, the
authority created under section 7(1) is hereby dissolved. If the
transfer is not disapproved, the qualified convention facility is
transferred
to the authority on the ninetieth day after the
effective
date of this act or the date on which a convention
facility
becomes a qualified convention facility transfer date. All
of the following shall occur on a transfer date:
(a) All right, title, and interest of a local government in
and to a qualified convention facility located in a qualified
metropolitan area shall by operation of this act be conveyed and
transferred from the local government to the authority for the
qualified metropolitan area, and the authority shall receive,
succeed to, and assume the exclusive right, responsibility, and
authority to own, occupy, operate, control, develop, and use the
qualified convention facility from and after the transfer date,
including, but not limited to, all real property, buildings,
improvements, structures, easements, rights of access, and all
other privileges and appurtenances pertaining to the qualified
convention facility, subject only to those restrictions imposed by
this act.
(b) All right, title, and interest in and to the fixtures,
equipment, materials, furnishings, and other personal property of a
local government owned or controlled and used for purposes of the
qualified convention facility by the local government shall by
operation of this act be conveyed and transferred from the local
government to the authority for the qualified metropolitan area,
and the authority shall receive, succeed to, and assume the
exclusive right, responsibility, and authority to possess and
control the property from and after the transfer date.
(c) All licenses, permits, approvals, or awards of a local
government related to the ownership, occupancy, operation, control,
development, or use of a qualified convention facility by the local
government shall by operation of this act be conveyed and
transferred from the local government to the authority for the
qualified metropolitan area and be assumed by the authority.
(d) All grant agreements, grant preapplications, grant
applications, rights to receive the balance of any funds payable
under the agreements or applications, the right to receive any
amounts payable from and after the transfer date, and the benefits
of contracts or agreements of a local government related to the
ownership, occupancy, operation, control, development, or use of a
qualified convention facility by the local government shall by
operation of this act be conveyed and transferred from the local
government to the authority for the qualified metropolitan area and
be assumed by the authority.
(e) All of the duties, liabilities, responsibilities, and
obligations of a local government related to the ownership,
occupancy, operation, control, development, or use of a qualified
convention facility by the local government shall by operation of
this act be conveyed and transferred from the local government to
the authority for the qualified metropolitan area and assumed by
the authority, except for any liabilities, responsibilities, or
obligations that are contested in good faith by, or, as of the
transfer date, unknown to, the authority or as otherwise provided
in this act.
(f) An authority for a qualified metropolitan area shall
assume all of the outstanding securities of the local government
that are special limited obligations payable from and secured by a
lien on distributions received under the state convention facility
development act, 1985 PA 106, MCL 207.621 to 207.640, and were
originally issued to finance the acquisition or construction of,
development of, or improvements to the qualified convention
facility conveyed and transferred to the authority for the
qualified metropolitan area under this section, and the authority
may refund or defease the securities. If the authority refunds the
outstanding securities assumed under this subsection, that
refunding shall be considered, as a matter of law, to be necessary
to eliminate requirements of covenants applicable to the existing
outstanding securities.
(2) An authority shall assume, accept, or become liable for
lawful agreements, obligations, promises, covenants, commitments,
and other requirements of a local government relating to operating
a qualified convention facility conveyed and transferred under this
section, except as provided in subsection (4). An authority shall
perform all of the duties and obligations and shall be entitled to
all of the rights of a local government and under any agreements
expressly assumed and accepted by the authority related to the
transfer of a qualified convention facility from the local
government to the authority under this section.
(3) The local chief executive officer of a local government
from which the rights, responsibility, and authority to own,
occupy, operate, control, develop, and use a qualified convention
facility are conveyed and transferred from the local government to
an authority for a qualified metropolitan area under this section
shall execute the instruments of conveyance, assignment, and
transfer or other documents as may, in the authority's and the
officer's reasonable judgment, as necessary or appropriate to
recognize, facilitate, or accomplish the transfer of the qualified
convention facility from the local government to the authority
under this section.
(4) An authority for a qualified metropolitan area shall not
assume any unfunded obligations of a local government transferring
a qualified convention facility under this section to provide
pensions or retiree health insurance. Upon request by the
authority, the local government shall provide the authority with a
statement of the amount of the unfunded obligations, determined by
a professional actuary acceptable to the authority.
(5) All lawful actions, commitments, and proceedings of a
local government made, given, or undertaken before the transfer
date and assumed by an authority under this section are ratified,
confirmed, and validated upon assumption. All actions, commitments,
or proceedings of the local government relating to a qualified
convention facility in the process of being undertaken by, but not
yet a commitment or obligation of, the local government regarding
the qualified convention facility may, from and after the date of
assumption by the authority under this section, be undertaken and
completed by the authority in the manner and at the times provided
in this act or other applicable law and in any lawful agreements
made by the local government before the date of assumption by the
authority under this section.
(6) The exclusive right and authorization to own, occupy,
operate, control, develop, and use a qualified convention facility
transferred under this section shall include, but not be limited
to:
(a) Ownership and operational jurisdiction over all real
property of the qualified convention facility, subject to any liens
of record and legal restrictions and limitations on the use of the
property.
(b) The local government's right, title, and interest in, and
all of the local government's responsibilities arising under,
operating leases and concessions relating to a qualified convention
facility.
(7) The transfers described under this section shall include,
but need not be limited to, all of the following:
(a) All contracts with licensees, franchisees, tenants,
concessionaires, and leaseholders.
(b) All operating financial obligations secured by revenues
and fees generated from the operations of the qualified convention
facility.
(c) All cash balances and investments relating to or resulting
from operations of the qualified convention facility, all funds
held under an ordinance, resolution, or indenture related to or
securing obligations of the local government assumed by the
authority, and all of the accounts receivable or choses in action
arising from operations of the qualified convention facility. Fund
transfers under this subdivision are limited to funds received
after the transfer date and funds necessary to pay obligations
related to the operation of the qualified convention facility
accrued before the transfer date and not paid by the local
government.
(d) All office equipment, including, but not limited to,
computers, records and files, software, and software licenses
required for financial management, personnel management, accounting
and inventory systems, and general administration.
(8) The transfer of the real and personal property and
operational jurisdiction over a qualified convention facility to an
authority may not in any way impair any contracts with licensees,
franchisees, vendors, tenants, bondholders, or other parties in
privity with the local government that owned a qualified convention
facility transferred to an authority under this section, if the
contracts were not entered into or modified in violation of this
act.
(9) From and after the transfer date, a local government from
which a qualified convention facility has been transferred shall be
relieved from all further costs, responsibility, and liability
arising from, or associated with, control, operation, development,
and maintenance of the qualified convention facility. The local
government shall continue to be responsible for all costs
associated with local municipal services, including, but not
limited to, police, fire, and emergency medical services, without
any additional compensation from the authority. The authority shall
provide for the payment of compensation not exceeding
$20,000,000.00 to the qualified city for any revenue otherwise
payable to the qualified city from parking facilities operated by
the qualified city at the qualified convention facility and for
other costs incurred by the qualified city associated with the
transfer of the qualified convention facility to the authority
under this section. This payment shall be made not more than 90
days after the transfer date.
(10) A local government that owns a qualified convention
facility subject to transfer under this section or that owned a
qualified convention facility transferred to an authority under
this section shall comply with all of the following, before and
after the transfer:
(a) Refrain from any action to sell, transfer, or otherwise
dispose of a qualified convention facility other than to the
authority or incur new or expanded obligations related to qualified
convention facility, without the consent of the authority.
(b) Refrain from any approval of or material modification to
any collective bargaining agreement applicable to local government
employees employed at or assigned to the qualified convention
facility or to terms of employment for employees at or assigned to
the qualified convention facility. Any approval or modification
subject to this subsection shall be null and void.
(c) Refrain from any action that, in the authority's judgment,
would impair the authority's exercise of the powers granted to the
authority under this act or that would impair the efficient
operation and management of the qualified convention facility by
the authority.
(d) Take all actions reasonably necessary to cure any defects
in title to the qualified convention facility and related property
transferred under this section, including, but not limited to,
providing documents, records, and proceedings in respect of title.
(e) At the request of an authority, grant any license,
easement, or right-of-way in connection with the qualified
convention facility to the extent the authority has not been
empowered to take these actions.
(f) Upon creation, an authority for the qualified metropolitan
area in which the local government is located and before the
transfer date may conduct operations, maintenance, and repair of
the convention facility in the ordinary and usual course of
business.
(11) Any contract, agreement, lease, sale, disposition,
transfer, or other conveyance, easement, license, right,
obligation, debt, or liability assumed, approved, entered into,
amended, or modified in violation of this section shall be voidable
as a matter of law to the extent that the authority would otherwise
assume, become party to or transferee of, or otherwise be obligated
under the contract, agreement, lease, sale, disposition, transfer,
conveyance, easement, license, right, obligation, debt, or
liability.
(12) Unless otherwise provided in this act, the local chief
executive officer of a local government that owns a qualified
convention facility subject to transfer under this section is
authorized and shall take all reasonable steps to cancel or
terminate any agreement to which the local government is a party
that relates to the qualified convention facility and meets all the
following criteria:
(a) The agreement relates to the qualified convention facility
and the authority has not expressly assumed or accepted the
agreement under subsection (2).
(b) The agreement provides for cancellation or termination.
(c) In the absence of cancellation or termination, the
authority would become a party to the agreement by succession,
assignment, operation of law, or any other involuntary means.
(13) If real property transferred from a qualified city to an
authority under this section is no longer used by the authority for
the purpose of maintaining or operating a convention facility as
determined by a vote of the board, all right, title, and interest
of the authority in the real property shall revert from the
authority to the qualified city with the consent of the qualified
city and upon payment by the qualified city to the authority of an
amount equal to the compensation paid to the qualified city under
section
19(9) subsection (9).
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 586.
(b) Senate Bill No. 587.
(c) Senate Bill No. 588.
