Shown verbatim: the complete text as captured from the official page posted by the Michigan Legislature, fetched 2026-08-29. This is the chaptered version. The official bill page.
Act No. 77 Public Acts of 2026 Approved by the Governor July 21, 2026 Filed with the Secretary of State July 27, 2026 EFFECTIVE DATE: July 27, 2026 state of michigan 103rd Legislature Regular session of 2026 Introduced by Senators Geiss, Cherry, Bayer, Polehanki and Wojno ENROLLED SENATE BILL No. 52 AN ACT to amend 1978 PA 639, entitled “An act to authorize the establishing of port authorities in cities and counties; to prescribe the powers and duties of port authorities, cities, and counties; to authorize the incurrence of contract obligations and the issuance and payment of bonds or other evidences of indebtedness; to provide for a pledge by a city or county of its full faith and credit for the payment of contract obligations entered into under this act and the levy of taxes without limitation as to rate or amount to the extent necessary; to validate obligations issued; to provide for the adoption of a port facilities plan; to provide for the financing of the operating budget of port authorities; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” by amending the title and sections 2, 8, 9, 10, 13, 14, 14a, 16, 18, 20, 23, 24, and 25 (MCL 120.102, 120.108, 120.109, 120.110, 120.113, 120.114, 120.114a, 120.116, 120.118, 120.120, 120.123, 120.124, and 120.125), the title as amended and section 14a as added by 1998 PA 188, sections 14 and 18 as amended by 2002 PA 412, and section 23 as amended by 1984 PA 256, and by adding section 19a. The People of the State of Michigan enact: TITLE An act to authorize the establishing of port authorities in cities and counties; to prescribe the powers and duties of port authorities, cities, and counties; to authorize the incurrence of contract obligations and the issuance and payment of bonds or other evidences of indebtedness; to provide for a pledge by a city or county of its full faith and credit for the payment of contract obligations entered into under this act and the levy of taxes without limitation as to rate or amount to the extent necessary; to validate obligations issued; to provide for the adoption of a facilities plan; to provide for the financing of the operating budget of port authorities; to allow port authorities to enter into, amend, or terminate ancillary financing facilities; to prescribe penalties and provide remedies; and to repeal acts and parts of acts. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. This act is ordered to take immediate effect. Secretary of the Senate Clerk of the House of Representatives Approved___________________________________________ ____________________________________________________ Governor
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