HERTEL-LAW-T. STOPCZYNSKI PORT AUTHORITY ACT

MCL ch. 120, subtit. Act 639 of 1978

in effect

MCL 120.101 Short title.

120.101. Short title. Sec. 1. This act shall be known and may be cited as the "Hertel-Law-T. Stopczynski port authority act". 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.102 Definitions.

120.102. Definitions. Sec. 2. As used in this act: (a) "Ancillary financing facility" means any of the following: (i) A revolving credit agreement, an agreement establishing a line of credit, or a letter of credit. (ii) A reimbursement agreement. (iii) A standby bond purchase agreement. (iv) An interest rate exchange or similar agreement. (v) A currency exchange agreement. (vi) A commodity exchange agreement. (vii) An interest rate floor or cap. (viii) An option, put, call, or similar agreement to hedge payment, currency, commodity, rate, spread, or similar exposure. (ix) An investment agreement. (x) A float agreement. (xi) A forward agreement or other investment arrangement. (xii) An insurance contract. (xiii) A surety bond. (xiv) A commitment to purchase or sell securities. (xv) A purchase or sale agreement or commitment. (xvi) Any other contract or agreement or other security agreement approved by an authority under this act, including, but not limited to, any arrangement referred to in this act. (b) "Authority" means a port authority created under this act and may also include the area within the jurisdiction of an authority. (c) "Constituent unit" means a city or county requesting the incorporation of an authority. (d) "Facilities" means port facilities and related facilities. (e) "Governing body of the city" means the city council or city commission of a city requesting incorporation of an authority. (f) "Governing body of the county" means the county board of commissioners of a county participating in an authority. (g) "Port facilities" includes, but is not limited to, all of the following: (i) Seawall jetties. (ii) Piers. (iii) Wharves. (iv) Docks. (v) Boat landings. (vi) Marinas. (vii) Warehouses. (viii) Storehouses. (ix) Elevators. (x) Grain bins. (xi) Cold storage plants. (xii) Terminal icing plants. (xiii) Bunkers. (xiv) Oil tanks. (xv) Ferries. (xvi) Canals. (xvii) Locks. (xviii) Bridges, except for international bridges. (xix) Tunnels. (xx) Seaways. (xxi) Conveyors. (xxii) Modern appliances for the economical handling, storage, and transportation of freight and handling of passenger traffic. (xxiii) Transfer and terminal facilities required for the efficient operation and development of ports and harbors. (xxiv) Other harbor improvements. (xxv) Improvements, enlargements, remodeling, or extensions of any of the buildings or structures described in subparagraphs (i) to (xxiv). (h) "Project" means the acquisition, purchase, construction, reconstruction, rehabilitation, remodeling, improvement, enlargement, repair, condemnation, maintenance, or operation of facilities. (i) "Related facilities" means the following facilities located within 5 miles of the navigable waters within the geographic area of an authority, including, but not limited to, all of the following: (i) Public infrastructure. (ii) Real and personal property used or useful to accomplish the purposes of the authority. (iii) Parking lots and parking structures that may be used in connection with facilities. (iv) Commercial and tourism facilities related to maritime and public recreational facilities. (v) Facilities used for freight, transportation, light manufacturing, and intermodal operations and functions. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.103 Port authority; exercise of powers and duties; jurisdiction.

120.103. Port authority; exercise of powers and duties; jurisdiction. Sec. 3. An authority may exercise and apply any or all of its powers and duties as prescribed and set forth in this act, within the respective boundaries of the county or counties creating a port authority under this act, including jurisdiction over commercially navigable water lying therein. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.104 Port authority; incorporation; recommendations; articles of incorporation; body corporate and politic; public purpose.

120.104. Port authority; incorporation; recommendations; articles of incorporation; body corporate and politic; public purpose. Sec. 4. (1) A city and county, a combination of counties or a combination consisting of at least 1 city and 1 county, by joint resolution of their respective governing bodies, may request the governor to authorize the incorporation of an authority. The governor shall consider the recommendations of the department of state highways and transportation and the department of commerce in authorizing the authority. The initial articles of incorporation shall be approved by the governor and may thereafter be amended by resolution of the authority, subject to approval by the governor. After approval by the governor, the articles of incorporation and any amendments to those articles shall be effective upon filing with the secretary of state. (2) An authority created under this act shall be a body corporate and politic. (3) The exercise by an authority of the powers conferred by this act shall be considered and held to be an essential governmental function and a benefit to, and a legitimate public purpose of the state, the authority, and the constituent units. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.105 Port authority; appointment and terms of members; vacancy; reappointment; chairperson, vice-chairperson, and secretary-treasurer; quorum; voting; expenses; liability.

120.105. Port authority; appointment and terms of members; vacancy; reappointment; chairperson, vice-chairperson, and secretary-treasurer; quorum; voting; expenses; liability. Sec. 5. (1) Except as provided in subsection (5), an authority shall consist of 5 or 7 members as follows: (a) One member shall be appointed by the governor. (b) The remaining members shall be appointed by the governing body of each city and the governing body of each county that requested the incorporation of the authority. The representation on, and the number of members of, the authority shall be determined by agreement among the incorporating units and included within the joint resolution requesting incorporation of the authority. (2) The members first appointed shall serve staggered terms. After the first appointment, each member shall serve a term of 4 years, except that a person appointed to fill a vacancy shall be appointed for the balance of the unexpired term. A member shall be eligible for reappointment. (3) The members shall elect 1 of their membership as chairperson and another as vice-chairperson, shall designate the terms of office of those officers, and shall appoint a secretary-treasurer who need not be a member. A majority of the members of the authority shall constitute a quorum. The affirmative vote of a majority of the members shall be necessary for any action taken by the authority. (4) The members shall serve without compensation but shall be reimbursed for all necessary travel and other expenses incurred in the discharge of their duties. (5) An authority that is established in a county having a population of 1,500,000 or more shall consist of 5 members as follows: (a) One member shall be appointed by the governor. (b) Two members shall be appointed by a majority of all the members of the county board of commissioners of the county. The members appointed shall be nominated by the commissioners on the board who do not reside within the political boundaries of a city having a population of 750,000 or more. (c) Two members shall be appointed by the mayor of a city having a population of 750,000 or more that is located in the county. (6) To the extent not protected by the immunity conferred by 1964 PA 170, MCL 691.1401 to 691.1415, a member of the authority appointed under this section who exercises the powers contained in this act in good faith is immune from civil or administrative liability arising from that conduct, unless the conduct was gross negligence or willful and wanton misconduct. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2001, Act 244, Imd. Eff. Jan. 8, 2002 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.106 Bond of secretary-treasurer.

120.106. Bond of secretary-treasurer. Sec. 6. Before the issuance of any bonds, notes, or other evidences of indebtedness under this act, the secretary-treasurer of an authority shall execute a bond in the penal sum of $100,000.00, conditioned upon the faithful performance of the duties of the office and executed by a surety company authorized to transact business in this state as surety. The bond shall be filed in the office of the secretary of state. The premium of the bond shall be a current expense of the authority. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.107 Advisory committees and councils.

120.107. Advisory committees and councils. Sec. 7. An authority may organize and create advisory committees and councils to serve at the pleasure of the authority for terms and purposes considered to be in the best interest of furthering the intent and purpose of this act. The committees and councils shall be made up of persons especially skilled, knowledgeable, or experienced in international trade, finance, commerce, transportation, or labor. Members of the committees or councils shall serve without compensation but shall be entitled to reasonable and necessary expenses incurred in the discharge of their duties. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.108 Port authority; powers generally.

120.108. Port authority; powers generally. Sec. 8. (1) An authority may do 1 or more of the following: (a) Adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business. (b) Sue and be sued on the same basis as this state. (c) Adopt and register with the secretary of state an official seal and alter that seal at its pleasure. (d) Maintain offices at a place or places, either within or without its jurisdiction, as it may determine. (e) Acquire, construct, reconstruct, rehabilitate, improve, maintain, finance, lease as lessor or as lessee, repair, or operate facilities within its territorial jurisdiction, including, but not limited to, the dredging of ship channels and turning basins and the filling and grading of land related to these improvements. An authority may operate a leased facility, owned by the authority, if the lessee defaults and a new lease is negotiated or competitively bid. (f) Designate the location and character of the facilities that the authority may hold, own, finance, or operate, or over which it is authorized to act, and regulate all matters related to the location and character of those facilities. (g) Acquire, hold, and dispose of real and personal property. (h) Make directly, or through the hiring of expert consultants, investigations and surveys of whatever nature, including studies of business conditions, freight rates, port services, physical surveys of the conditions of channels and structures, and the necessity for additional facilities for the development and improvement of commerce and recreation and for the more expeditious handling of that commerce and recreation, and make studies, surveys, and estimates, as necessary for the execution of its powers under this act. (i) Promulgate all necessary rules to fulfill the purposes of this act. (j) Issue bonds, notes, or other evidences of indebtedness as provided in this act. (k) Fix, revise from time to time, charge, and collect rates, fees, rentals, or other charges for the use of a facility owned or operated by the authority. (l) Enter into public-private partnerships or other agreements necessary or useful to accomplish the purposes of this act. (2) The powers granted under this act are in addition to those powers granted by charter or other statute. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.109 Port authority; additional powers.

120.109. Port authority; additional powers. Sec. 9. An authority may do 1 or more of the following: (a) Appear on its own behalf before any of the following: (i) Boards, commissions, departments, or other agencies of the federal government or of any state or international conferences and before committees of the congress of the United States and the state legislature in all matters relating to the design, establishment, construction, extension, operation, improvement, repair, or maintenance of a project operated, maintained, financed, or supported by the authority under this act. (ii) Any federal or state agencies in matters relating to transportation rates, port services and charges, demurrage, switching, wharfage, towage, pilotage, differentials, discriminations, labor relations, trade practices, river and harbor improvements, aids to navigation, permits for structures in navigable waters, and all other matters affecting the physical development of, and the business interest of, the authority and those it serves. (b) Apply for, receive, and accept from a federal, state, or municipal agency, foundation, public or private agency, or individual, a grant or loan for, or in aid of, the planning, construction, operation, or financing of a facility, and receive and accept contributions from any source of money, property, labor, or other things of value, to be held, used, and applied for the purposes for which the grant or contribution is made. (c) Appoint an executive director. All of the following apply to an executive director appointed under this subdivision: (i) The executive director is the chief executive officer of the authority. (ii) The authority may delegate any of its administrative powers and authorizations to the executive director. (iii) During employment, the executive director shall not have a financial interest in facilities or projects over which the authority has jurisdiction or power or authorization to act. (d) Employ personnel as necessary and employ the services of private consultants and engineers, legal counsel, accountants, construction and financial experts, and other agents for rendering professional and technical assistance and advice as necessary. The authority shall determine the compensation of persons employed by the authority, including the executive director. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.110 Port authority; additional powers.

120.110. Port authority; additional powers. Sec. 10. An authority may do 1 or more of the following: (a) Subject to the authority of the federal government and this state and with the agreement of the constituent units, all of the following: (i) Provide for the preservation of navigation within its territorial jurisdiction, including the establishment by regulation of lines beyond which piers, bulkheads, wharves, pilings, structures, obstructions, or extensions of any character may not be built, erected, constructed, or extended. (ii) Provide by regulation for the stationing, anchoring, and movement of vessels or other watercraft. (iii) Adopt rules to prevent material, refuse, or matter of any kind from being thrown into, deposited, or placed where it may fall, or be washed, into navigable waters under its jurisdiction. (iv) Ascertain the depth and course of the channels of those navigable waters. (v) Erect and maintain, authorize the erection and maintenance of, and make rules respecting wharves, bulkheads, piers, and piling, and the keeping of the same in repair, to prevent injury to navigation or health. (vi) Regulate the use of wharves, docks, piers, bulkheads, or pilings owned by it. (vii) Lease or rent wharves, docks, piers, bulkheads, or pilings owned by it and impose and collect dockage from vessels and watercraft lying at or using these. (viii) Collect wharfage and other charges on goods, wares, merchandise or other articles landed at, shipped from, stored on, or passed over wharves, docks, piers, bulkheads, or pilings owned by it. (b) Make and enter into contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this act. (c) Lay out, construct, acquire, operate, lease, sell, and convey planned industrial districts as a part of facilities within its jurisdiction, subject to the restrictions contained in this act on operation and ownership of facilities. (d) Do all acts and things necessary or convenient to promote and increase commerce and recreation within its territorial jurisdiction and carry out the powers expressly granted and any powers implied or necessary for the exercise of the powers expressly granted in this act. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.111 Port authority; liability.

120.111. Port authority; liability. Sec. 11. Except with respect to docks or wharves owned, controlled, or operated by, the authority, this act shall not be construed to impose a duty upon an authority to a person using its waters in regard to the safety thereof, or to render an authority liable for loss of life or injury or damage to person or property, by reason of an obstruction in, or unsafe condition of, any part of its waters, nor shall this act be construed to render the authority liable in damages or otherwise for an omission to pass or enforce a rule or resolution made under this act. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.112 Acquisition of property by purchase, lease, or condemnation; sale or removal of structures; sale or lease of property.

120.112. Acquisition of property by purchase, lease, or condemnation; sale or removal of structures; sale or lease of property. Sec. 12. (1) An authority may acquire by purchase or lease, when it considers the purchase or lease expedient, lands, structures, property, rights, rights of way, franchises, easements, and other interests in lands as it considers necessary or convenient for the construction or operation of a project, upon terms and at a price as considered reasonable and agreed upon between the authority and the owner thereof. (2) An authority may acquire by condemnation lands, property rights, rights of way, franchises, easements, and other property, or parts thereof or rights therein, of a person, partnership, association, or corporation considered by the authority to be necessary for the construction or efficient operation of a project. However, a facility currently operated as a port facility by a terminal operator or a facility owned or operated by and for the exclusive use of the owner or operator and a facility owned or operated by a common carrier or public utility shall be exempt from this subsection. The condemnation shall be made in the manner provided by Act No. 295 of the Public Acts of 1966, as amended, being sections 213.361 to 213.391 of the Michigan Compiled Laws, except where that procedure may be inconsistent with this act. (3) An authority may sell or remove the buildings or other structures upon lands taken by the authority, and may sell or lease lands or rights or interest in lands or other property taken or purchased for the purposes of this act. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.113 Contracts for acquisition, construction, improvement, enlargement, extension, operation, or financing of port facilities; payment of cost; pledge of full faith and credit; tax levy; methods of raising funds; assessment of costs.

120.113. Contracts for acquisition, construction, improvement, enlargement, extension, operation, or financing of port facilities; payment of cost; pledge of full faith and credit; tax levy; methods of raising funds; assessment of costs. Sec. 13. (1) An authority and 1 or more constituent units may enter into a contract or contracts for the acquisition, construction, improvement, enlargement, extension, operation, or financing of facilities and for the payment of the cost thereof by the contracting constituent units, with interest, over a period of not more than 40 years. Additionally, an authority and 1 or more constituent units may enter into a contract or contracts for the refunding of any prior indebtedness of the authority. (2) Each contracting constituent unit shall pledge its full faith and credit for the payment of its obligations under the contract. If the constituent unit has taxing power, each year it shall levy a tax on all real and personal property within the constituent unit that may be imposed without limitation as to rate or amount, to the extent necessary for the prompt payment of that part of the contract obligations that fall due before the following year's tax collection. If any contracting constituent unit at the time of its annual tax levy has on hand in cash any amount pledged to the payment of the current obligations for which the tax levy is to be made, then the annual tax levy may be reduced by that amount. Other funds may be raised by an authority or contracting constituent unit in 1 or more of the following methods: (a) By service charge to users of the facilities owned or operated by the port authority. (b) By setting aside state collected funds disbursed to the contracting constituent unit. (c) By special assessment on lands benefited. (d) By setting aside any other available money, including the general revenues of the contracting constituent units. (3) A contracting constituent unit may agree to raise all or any part of its contract obligation by 1 or more of the methods enumerated in subsection (2) that are available. The various powers granted in this act to a constituent unit must be exercised by its governing body. (4) If a constituent unit, other than a county, operating under this act elects to raise money to pay all or a portion of its share of the cost of a project by assessing the costs on benefited lands, its governing body shall make the election by resolution and fix the district for assessment. The governing body shall then cause a special assessment roll to be prepared. Thereafter, the proceedings in respect to the special assessment roll and the making and collection of the special assessments on the roll, must be in accordance with the provisions of the statute or charter governing special assessments in the constituent unit, except that the total assessment may be divided into any number of installments not exceeding 30, and any person assessed has the right at the hearing on the special assessment roll to object to the special assessment district previously established. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.114 Revenue bonds; applicability of revenue bond act; revenue bonds payable solely from revenues or income.

120.114. Revenue bonds; applicability of revenue bond act; revenue bonds payable solely from revenues or income. Sec. 14. (1) An authority may provide by resolution for the issuance of revenue bonds of the authority for the purpose of providing funds for paying the cost of facilities, or for paying the cost of an extension, enlargement, or improvement of a facility or facilities. The bonds issued under this section must mature at a time or times, not exceeding 40 years after their date of issuance, as the authority may provide. An authority may also provide by resolution for the issuance of revenue refunding bonds of the authority for the purpose of providing funds to pay the cost of refunding any prior indebtedness of the authority. (2) Revenue bonds issued under this section are subject to the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140. (3) Revenue bonds issued under this section do not constitute a debt of this state, a political subdivision of this state, the authority, or a constituent unit, or a pledge of the faith and credit of this state, a political subdivision of this state, the authority, or a constituent unit, but are payable solely from the revenues or income to be derived from the projects. The revenue bonds must contain on their face a statement to the effect that the bonds and attached coupons are payable solely from revenues and are not a general obligation of this state, a political subdivision of this state, the authority, or a constituent unit, and neither the faith and credit nor the taxing power of this state, a political subdivision of this state, the authority, or a constituent unit, is pledged to the payment of the principal of or the interest on the bonds. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 1983, Act 23, Imd. Eff. Apr. 5, 1983; Am. 2002, Act 412, Imd. Eff. June 3, 2002; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.114a Violation of MCL 168.1 to 168.992 applicable to petitions; penalties.

120.114a. Violation of MCL 168.1 to 168.992 applicable to petitions; penalties. Sec. 14a. A petition under this act, including the circulation and signing of the petition, is subject to section 488 of the Michigan election law, 1954 PA 116, MCL 168.488. A person who violates a provision of the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992, applicable to a petition described in this section is subject to the penalties prescribed for that violation in the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992. Add. 1998, Act 188, Eff. Mar. 23, 1999; Am. 2026, Act 77, Imd. Eff. July 27, 2026

MCL 120.115 Revenue bonds; form; date; denomination; place of payment; redemption; validity of signature or facsimile; issuance in coupon or registered form; registration, reconversion, and interchange of bonds.

120.115. Revenue bonds; form; date; denomination; place of payment; redemption; validity of signature or facsimile; issuance in coupon or registered form; registration, reconversion, and interchange of bonds. Sec. 15. An authority shall determine the form of the bonds of each series issued pursuant to section 14, including any interest coupons to be attached thereto, the date of the bonds, the denomination of the bonds, and the place of payment of principal and interest, which may be at any bank or trust company within or without the state. The bonds of each series may be made redeemable before their maturity or maturities at the option of the authority, at a price and under the terms and conditions as may be fixed by the authority before issuance of the bonds. If an officer whose signature or a facsimile of whose signature appears on any bonds or coupons ceases to be an officer before delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until the delivery. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of coupon and registered bonds. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.116 Bonds; trust agreement.

120.116. Bonds; trust agreement. Sec. 16. Bonds issued under this act must be secured by a trust agreement by and between the authority and a corporate trustee. The corporate trustee may be any trust company or bank having the powers of a trust company, within or without this state. The trust agreement may pledge or assign the rentals and other revenues of the authority, but must not convey or mortgage part or all of a project. The trust agreement must contain provisions for protecting and enforcing the rights and remedies of the bondholders that are reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the acquisition or construction of a project and the extension, enlargement, improvement, maintenance, operation, repair, and insurance of a project and the custody, safeguarding, and application of all money. The trust agreement may contain provisions for the employment of consulting engineers in connection with the construction and operation of a project. The trust agreement must set forth the rights and remedies of the bondholders and of the trustee. The trust agreement may restrict the individual right of action by the bondholders and may contain any other provisions the authority considers reasonable and proper for the security of the bondholders. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.117 Bonds as securities; investment; deposit.

120.117. Bonds as securities; investment; deposit. Sec. 17. (1) Bonds issued under this act are securities in which all public officers and public agencies of the state and its political subdivisions and all banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business, all insurance companies and insurance associations and others carrying on an insurance business, all administrators, executors, guardians, trustees and other fiduciaries, and all other persons may legally and properly invest funds, including capital in their control or belonging to them. (2) Bonds issued under this act are securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or other obligations of the state is authorized by law. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.118 Additional bonds for acquiring, constructing, improving, enlarging, extending, operating, or financing facilities; authorization; resolution; issuance and execution of bonds; seal; negotiable instruments; maturities; payment; tax exemption; issuance of bonds or notes subject to revised municipal finance act.

120.118. Additional bonds for acquiring, constructing, improving, enlarging, extending, operating, or financing facilities; authorization; resolution; issuance and execution of bonds; seal; negotiable instruments; maturities; payment; tax exemption; issuance of bonds or notes subject to revised municipal finance act. Sec. 18. (1) In addition to the bonds authorized in section 14, bonds may be issued for the purpose of acquiring, constructing, improving, enlarging, extending, operating, or financing facilities or refunding prior indebtedness of the authority, as follows: (a) By the issuance of bonds under contracts described in section 13 under which a constituent unit has pledged its full faith and credit and, if necessary, has agreed to pay to an authority certain sums toward the cost of the acquisition, construction, improvement, enlargement, extension, operation, or financing of a project or refunding of prior bonds that may be made under this act. Contracts are not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. (b) By money advanced by an authority operating under this act under agreements with a constituent unit or other unit for the repayment of the money. (c) By money advanced, from time to time, before or during construction of a project, by a public corporation, for which an authority operating under this act shall reimburse the corporation with interest not to exceed 8% per annum or without interest as may be agreed, when funds are available for reimbursement. The obligation of an authority to make the reimbursement may be evidenced by a contract or note and the contract or note may be made payable out of the payments to be made by constituent units under contracts made under subdivision (b), out of the proceeds of bonds issued under this act by the county, or out of any other available funds. (2) Bonds issued under this section must be authorized by a resolution adopted by the authority. The bonds must be issued in the name of the authority and must be executed by the chairperson and secretary-treasurer of the authority, who shall also cause their facsimile signatures to be affixed to the interest coupons to be attached to the bonds. The authority shall adopt a seal that must be affixed to the bonds. Bonds issued under this section are negotiable instruments and must mature not more than 40 years after the date of issuance. The bonds and coupons must be made payable in lawful money of the United States and are exempt from all taxation by this state or by any taxing authority within this state. (3) Bonds or notes issued under this section are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 1983, Act 23, Imd. Eff. Apr. 5, 1983; Am. 2002, Act 412, Imd. Eff. June 3, 2002; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.119 Validation of bonds or notes; contesting validity.

120.119. Validation of bonds or notes; contesting validity. Sec. 19. Bonds or notes issued under this act by an authority are validated. An authority acting under this act or any constituent unit, including the county, shall not contest the validity of bonds or notes issued under this act or any contract which provides the security therefor, after the bonds are sold and delivered and the authority has received the consideration therefor. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.119a Port authority; power to enter into, amend, or terminate ancillary financing facility.

120.119a. Port authority; power to enter into, amend, or terminate ancillary financing facility. Sec. 19a. (1) An authority may enter into, amend, or terminate any ancillary financing facility, as it determines necessary or appropriate, for any of the following purposes: (a) To facilitate the issue, sale, resale, purchase, repurchase, or payment of bonds, or the making or performance of swap contracts, including, but not limited to, bond insurance, letters of credit, and liquidity facilities. (b) To attempt to hedge risk or achieve a desirable effective interest rate or cash flow. (2) An authority may enter into, amend, or terminate any ancillary financing facility, as it determines necessary or appropriate, to place the obligations or investments of the authority, as represented by the bonds or the investment of bond proceeds, in whole or in part, on the interest rate, cash flow, or other basis desired by the authority. The ancillary financing facility may include, but is not limited to, contracts commonly known as interest swap agreements and futures or contracts providing for payments based on levels of, or changes in, interest rates. The authority may enter into these contracts or arrangements in connection with, or incidental to, entering into or maintaining any agreement that secures bonds of the authority or any investment of reserves or contract providing for investment of reserves, or similar ancillary financing facility guaranteeing an investment rate for a period of years. (3) An authority's determination that an ancillary financing facility, or the amendment or termination of an ancillary financing facility, is necessary or appropriate is conclusive. The authority may determine the terms and conditions of an ancillary financing facility, including without limitation provisions as to security, default, termination, payments, remedy, and consent to service of process. Add. 2026, Act 77, Imd. Eff. July 27, 2026

MCL 120.120 Contract for use of facilities; increase in charges; duration of contract.

120.120. Contract for use of facilities; increase in charges; duration of contract. Sec. 20. Any 1 or more municipalities or other public corporations, either within or without an authority, may contract for the use of facilities from an authority operating under this act. The charges specified in a contract are subject to increase by the authority at any time in order to provide funds to meet the obligations of the project involved. A contract authorized under this section must be for a period of not more than 50 years. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.121 Dock, waterfront, or riparian property; transfer, possession, or control.

120.121. Dock, waterfront, or riparian property; transfer, possession, or control. Sec. 21. The governing bodies of constituent units may, by majority vote, and with or without consideration, transfer or cause to be transferred to the authority or may place in its possession and control, by lease, or other contract or agreement, either for a limited period or in fee, any dock, waterfront, or riparian property owned or controlled by a constituent unit. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.122 Tax exemption.

120.122. Tax exemption. Sec. 22. (1) An authority created under this act shall be exempt from and shall not be required to pay taxes on property, both real and personal, belonging to the authority, which is used exclusively for a public purpose. However, the exemption shall not apply to property belonging to an authority while a private enterprise is a lessee of the property under a written lease. The bonds, notes, or other evidences of indebtedness, or their transfer, issued by an authority as authorized in this act, the interest thereon, the income derived, and the profit from a sale, shall be exempt from taxation, other than inheritance and estate taxes, within this state. (2) This section constitutes a covenant and agreement with the holders of bonds, notes, or other evidences of indebtedness issued by an authority. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.123 Plan for future development, construction, and improvement of facilities; notice; comments; hearing; adoption; modification, amendment, or extension; plans for specific projects.

120.123. Plan for future development, construction, and improvement of facilities; notice; comments; hearing; adoption; modification, amendment, or extension; plans for specific projects. Sec. 23. (1) An authority created on or after May 1, 1984 shall not later than 2 years after its creation prepare or cause to be prepared a plan for the future development, construction, and improvement of the facilities, including the maps, profiles, and other data and descriptions necessary to set forth the location and character of the work to be undertaken by the authority. An authority in existence before May 1, 1984 shall prepare or cause to be prepared the plan provided for in this subsection not later than September 30, 1985. The authority shall notify the legislature on April 15, 1985, as to the progress of the plan. The authority shall cause notice by publication to be given on the completion of the plan in a daily newspaper of general circulation in the area under the jurisdiction of the authority. The notice must fix the time and place for hearing on the plan, which must not be less than 30 or more than 60 days after publication of the notice. Any interested person may file written comments to the plan with the secretary-treasurer of the authority not less than 5 days before the date fixed for the hearing. After the hearing, the authority may adopt the plan, with any modifications or amendments, as the official plan of the authority. The authority, after adoption of the plan, may modify, amend, or extend the plan after notice and hearing in the manner prescribed in this subsection. (2) The plan and any modification, amendment, or extension, when adopted by the authority after notice and hearing, is conclusive except that plans for specific projects, to be undertaken in execution of the official plan, may not be adopted by the authority without prior individual approval by the governing bodies of its constituent units, the state transportation department, and the department of licensing and regulatory affairs. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 1984, Act 256, Imd. Eff. Nov. 30, 1984; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.124 Operating budget.

120.124. Operating budget. Sec. 24. (1) The authority shall submit in writing a detailed estimate of the budget required for the business and conduct of an authority's affairs, initially, for a 2-year period, and annually thereafter to the governing bodies of its constituent units, the department of licensing and regulatory affairs, and the state transportation department for approval. This state shall provide 50% of the operating budget of the authority, to be included in the state transportation department subject to legislative approval. Fifty percent of the operating budget of an authority in which not more than 1 county and not more than 1 city participate must be funded equally by the participating county and city. (2) A city or county creating or participating in an authority may appropriate for the use of the authority, and include in its levy for general fund purposes, an amount considered proper. However, the total amount permitted by law to be levied by a city or county for general fund purposes is not increased by this section. (3) As used in this section, "operating budget" means solely operation and maintenance expenses of an authority not included in the cost of a specific project, and interest on notes, but excludes amounts for debt service on bonds and amounts for acquisition, construction, enlargement, improvement, or extension of facilities. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.125 Surplus of unencumbered funds; disposition.

120.125. Surplus of unencumbered funds; disposition. Sec. 25. If at the end of a fiscal year a surplus of unencumbered funds remains after providing for the operating expenses of an authority, the funds do not lapse back to this state or constituent units but are carried forward for the next fiscal year of the authority. 1978, Act 639, Imd. Eff. Jan. 11, 1979; Am. 2026, Act 77, Imd. Eff. July 27, 2026 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.126 Entry on lands, waters, and premises; purpose; reimbursement for actual damages.

120.126. Entry on lands, waters, and premises; purpose; reimbursement for actual damages. Sec. 26. For the purpose of making surveys, soundings, drillings, examinations, and investigations as it considers necessary or convenient for the purposes of this act, an authority and its authorized agents and employees may enter upon the lands, waters, and premises in the authority and that entry shall not be considered a trespass; nor shall an entry for these purposes be considered an entry under any condemnation proceedings which may be then pending. The authority shall make reimbursement for actual damages resulting to the lands, waters, or premises as a result of these activities. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.127 Employees of port authority; transfer and payment of sick leave and annual leave; salary rate; job seniority and pension rights.

120.127. Employees of port authority; transfer and payment of sick leave and annual leave; salary rate; job seniority and pension rights. Sec. 27. (1) The employees of an authority, existing on the effective date of this act, of a city or county which creates or participates in an authority created under this act shall become the employees of that succeeding authority. (2) Each employee at his or her option may transfer all or part of accumulated sick leave and shall be paid 1/2 of all unused accumulated sick leave not transferred. The employee also may transfer all or part of accumulated annual leave not to exceed more than 27 days and shall be paid for all unused accumulated annual leave not transferred. (3) The transferred employee shall continue at his or her present salary rate, and if greater than that paid in the constituent unit for similar work, shall remain at the current level until matched by that constituent unit. (4) Job seniority and pension rights shall be credited as if first employed by the constituent unit. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.128 Annual report; audit.

120.128. Annual report; audit. Sec. 28. An authority shall make an annual report of its activities within 3 months after the close of its fiscal year to the governor and to the governing body of each constituent unit. The report shall include a complete operating and financial statement covering its operations during the year. The authority shall cause an audit of its books and accounts to be made at least once each year by a certified public accountant, with the cost to be treated as an operation expense. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.129 Liberal construction; powers cumulative.

120.129. Liberal construction; powers cumulative. Sec. 29. This act, being necessary for the welfare of the state and its inhabitants shall be liberally construed to effect its purposes. Powers granted in this act shall be cumulative and not exclusive of one another and may be exercised notwithstanding that bonds, notes, or other evidences of indebtedness are not issued. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] See Compiler's note to MCL 120.130.

MCL 120.130 Repeal of MCL 120.1 to 120.35; effective date of subsection (1).

120.130. Repeal of MCL 120.1 to 120.35; effective date of subsection (1). Sec. 30. (1) Act No. 234 of the Public Acts of 1925, as amended, being sections 120.1 to 120.35 of the Compiled Laws of 1970, is repealed. (2) Subsection (1) shall not take effect until the constituent bodies of each port authority created pursuant to Act No. 234 of the Public Acts of 1925 and in existence on the effective date of this act participate in the creation of an authority pursuant to this act and the membership of the commission governing that authority is appointed. 1978, Act 639, Imd. Eff. Jan. 11, 1979 [Compiler] The Monroe Port Authority has not created an authority under this act, and continues to operate under, and derive its power from, Act 234 of 1925, being MCL 120.1 to 120.35 of the Michigan Compiled Laws.

Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/documents/mcl/Chapter%20120.xmlFetched: 10/20/2026