HB-6542, As Passed House, November 13, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6542

     A bill to amend 1867 PA 35, entitled

"An act to provide for the formation of street railway companies,

defining their powers and duties and authorizing the construction,

use, maintenance and ownership of street railways for the

transportation of passengers, and for accumulating, storing,

manufacturing, conducting, using, selling, furnishing and supplying

electricity and electric power, by such companies,"

by amending the title and sections 1, 3, 5, 7, 9, 11, 13, 15, 17,

19, 23, 25, and 27 (MCL 472.1, 472.3, 472.5, 472.7, 472.9, 472.11,

472.13, 472.15, 472.17, 472.19, 472.23, 472.25, and 472.27) and by

adding section 21; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to provide for the formation of nonprofit street

railway companies, defining their powers and duties and authorizing

the construction, use, maintenance and ownership of street railways

for the transportation of passengers, and for accumulating,

storing, manufacturing, conducting, using, selling, furnishing and

supplying electricity and electric power, by such companies; to

prescribe powers and duties of certain state and local agencies and

officials; to provide remedies and penalties; to provide for the

establishment of a transit development finance zone; and to

authorize the use of tax increment financing.

Sec. 1. That street railway companies may be organized under

the provisions of this act. This act shall be known and may be

cited as the "nonprofit street railway company act".

     Sec. 3. Such articles of association shall be signed by the

persons associating in the first instance, and acknowledged before

some officer authorized by the laws of this state to take

acknowledgment of deeds, and shall state—

     First. The name by which the corporation shall be known in the

law.

     Second. Definitely and distinctly the purpose for which the

corporation is formed.

     Third. The amount of their capital stock, and the number of

the shares thereof.

     Fourth. The names of the stockholders, their respective

residences, and the number of shares held by each.

     Fifth. The city or village in which the office for the

transaction of their business shall be located, and where their

business is to be carried on.

     Sixth. The term of the existence of the corporation, which

shall not exceed 30 years.

     Seventh. The number of the directors of the corporation, and

the names of those who shall be directors for the first year. The

legislature finds and declares that there exists in this state a

need to encourage the development of transportation facilities by

authorizing the acquiring, owning, constructing, furnishing,

equipping, completing, operating, improving, and maintaining of

nonprofit street railway companies and systems and that state

assistance in acquiring, owning, constructing, furnishing,

equipping, completing, operating, improving, and maintaining

nonprofit street railway companies and systems in this state is

declared to be a public purpose. It is the intent of the

legislature that a street railway constructed by a nonprofit

corporation under this act comply with applicable federal rules

governing transit systems and that a street railway be designed to

adapt to future railway systems. It is the intent of the

legislature that resources expended to construct a street railway

under this act qualify as state and local match funds for a future

light rail transit system eligible for federal funding.

     Sec. 5. The amount of the capital stock in every such

corporation shall be fixed and limited by the stockholders in their

articles of association, and shall in no case be less than 10,000

dollars, and shall be divided into shares of 100 dollars each; but

the capital stock and the number of shares thereof may be increased

at any lawful meeting of the stockholders; and whenever any such

increase shall be made, a certificate showing the amount of such

increase, signed by the president and secretary of the company, and

sealed with its corporate seal, shall be filed in the office of the

secretary of state. Any such company by its articles of

association, or by amendment thereto, approved at any lawful

meeting of the stockholders by vote of 3/4 in interest of its

capital stock, shall have power to create and issue certificates

for 2 kinds of stock, namely: General or common stock and preferred

stock of 1 or more classes; which preferred stock shall at no time

exceed 80 per centum of the actual capital paid in, and shall be

subject to redemption at not less than par at a certain time to be

fixed by the by-laws of said corporation, and to be expressed in

the certificates therefor. And the holder of such preferred stock

shall be entitled to a fixed dividend, payable quarterly, half

yearly, or yearly, which said dividend shall be cumulative, payable

at the time expressed in said certificate, not to exceed 8 per cent

per annum, before any dividends shall be set apart or paid on the

common stock. Said corporation shall be controlled by a board of

directors elected by the preferred and common stockholders,

excepting when otherwise provided in the articles of association or

amendments thereto: Provided always, If at any time upon a fair

valuation of the assets of the corporation the common stock shall

be impaired in an amount equal to 20 per cent thereof, or any

annual dividend or accrued dividends for 1 year due on the

preferred stock shall remain unpaid for 60 days, then holders of

the preferred stock shall have an equal right with the common

stock, share and share alike, to participate in the election of

directors and control of said corporation. If for any reason said

corporation shall cease business or become insolvent, then after

the payment of all liabilities and debts, the remainder of the

assets of such corporation shall be applied first to the payment in

full of all preferred stock and then unpaid dividends due thereon,

and the balance divided pro rata, share and share alike, among the

holders of the common stock. Every corporation organized or

existing under the provisions of this act may, by its articles of

association, or by an amendment thereto approved at any lawful

meeting of stockholders by a vote of 3/4 in interest of its capital

stock, provide for an issue of common stock of non-par value, in

accordance with subdivision 2 (being sections 6 to 9 both

inclusive) of part 2, chapter 2 of Act No. 84 of the Public Acts of

1921. Nothing in this section shall be construed as relieving or

excepting any such corporation or any person or persons from

complying with the provisions of Act No. 144 of the Public Acts of

1909, as amended by Act No. 177 of the Public Acts of 1911, Act No.

259 of the Public Acts of 1915, and Act No. 381 of the Public Acts

of 1919.

     (1) This act shall be construed liberally to effectuate the

legislative intent and the purpose of the act as complete and

independent authorization for the performance of each and every act

and thing authorized in this act and all powers granted in this act

shall be broadly interpreted to effectuate the intent and purposes

of this act and not as a limitation of powers.

     (2) The powers conferred in this act upon a street railway

shall be in addition to any other powers the street railway

possesses under law. Except as otherwise provided in this act, the

provisions of this act apply notwithstanding any resolution,

ordinance, or charter provision to the contrary.

     Sec. 7. In case it shall happen that an election for directors

shall not be held as provided the said corporation shall not be,

for that reason, dissolved, but such election shall be held on some

future day, to be fixed by the directors holding over, upon giving

the notice thereof, as in this act provided, and all acts of the

directors shall be binding upon such corporation. As used in this

act:

     (a) "Department" means the department of transportation, the

principal department created under section 350 of the executive

organization act of 1965, 1965 PA 380, MCL 16.450.

     (b) "Metropolitan authority" means an authority with powers,

duties, and jurisdictions as the legislature shall provide created

under section 27 of article VII of the state constitution of 1963.

     (c) "Nonprofit corporation" means that term as defined under

section 108 of the nonprofit corporation act, 1982 PA 162, MCL

450.2108.

     (d) "Public street or highway" means any state trunk line

highway, county road, or city or village street maintained by a

road authority.

     (e) "Railroad" means that term as defined under section 109 of

the railroad code of 1993, 1993 PA 354, MCL 462.109.

     (f) "Road authority" means a governmental agency having

jurisdiction over public streets and highways. Road authority

includes the department, any other state agency, and

intergovernmental, county, city, and village governmental agencies

responsible for the construction, repair, and maintenance of

streets and highways.

     (g) "Street railway" means a nonprofit corporation organized

under this act for the purpose of operating a street railway system

other than a railroad train for transporting persons or property.

     (h) "Street railway system" means the facilities, equipment,

and personnel required to provide and maintain a public

transportation system operated on rails principally within a city,

village, or township utilizing streetcars, trolleys, light rail

vehicles, or trams for the transportation of persons or property.

     Sec. 9. The directors shall choose, by ballot, a president who

shall be 1 of the directors, and they shall also choose a secretary

and treasurer, who shall hold their offices during such time as the

by-laws of the company shall prescribe, and until others are chosen

in their stead; and the directors shall supply any vacancy in the

office of president, secretary or treasurer, whenever the same

shall occur.

     (1) After the effective date of the amendatory act that added

this subsection, 1 or more persons may organize a nonprofit

corporation under this act and the nonprofit corporation act, 1982

PA 162, MCL 450.2101 to 450.3192, for the purpose of acquiring,

owning, constructing, furnishing, equipping, completing, operating,

improving, and maintaining a street railway system by signing in

ink and filing articles of incorporation for the street railway.

The articles shall include all of the following:

     (a) The name of the street railway, which may include the

words "rail", "railway", "street railway", "light rail", or "metro

rail".

     (b) The purpose for which the corporation is organized, which

shall be limited to acquiring, owning, constructing, furnishing,

equipping, completing, operating, improving, and maintaining a

street railway system.

     (c) The city, village, or township in which the street railway

system will principally operate.

     (d) If a board is authorized, 1 member of the board shall be

the mayor of an affected municipality.

     (2) Articles of incorporation shall be filed with the bureau

of commercial services of the department of labor and economic

growth as provided under the nonprofit corporation act, 1982 PA

162, MCL 450.2101 to 450.3192.

     (3) The nonprofit corporation act, 1982 PA 162, MCL 450.2101

to 450.3192, shall apply to a street railway organized under this

section unless otherwise provided in or inconsistent with this act.

     Sec. 11. The directors may require the subscribers, to the

capital stock of the company to pay the amount by them respectively

subscribed, in such manner, and in such installments as they may

deem proper. If any stockholder shall neglect to pay any

installment as required by a resolution of the board of directors,

the said board, shall be authorized to sue for the same, or declare

his stock and all previous payments thereon forfeited for the use

of the company; but they shall not declare it so forfeited until

they shall have caused a notice, in writing, to be served on him

personally, or by depositing the same in the postoffice properly

directed to him at the postoffice nearest his usual place of

residence, stating that he is required to make such payment at the

time and place specified in said notice, and that if he fails to

make the same, his stock and all previous payments thereon will be

forfeited for the use of the company, which notice shall be served

as aforesaid, at least 60 days previous to the day on which such

payment is required to be made.

     (1) A nonprofit corporation may become a street railway under

this act and acquire, own, construct, furnish, equip, complete,

operate, improve, and maintain a street railway system in a city if

on and after the effective date of the amendatory act that added

this subsection the articles of incorporation for the nonprofit

corporation are amended to include all of the following provisions:

     (a) A provision authorizing the name of the corporation, to

include the words "rail", "railway", or "street railway", "light

rail", or "metro rail".

     (b) A provision including among the purposes for which the

corporation is organized the purpose of acquiring, owning,

constructing, furnishing, equipping, completing, operating,

improving, and maintaining a street railway system.

     (c) A provision indicating the city in which the street

railway system will principally operate.

     (2) Amendments to the articles of incorporation of a nonprofit

corporation under this section shall be adopted and filed with the

bureau of commercial services of the department of energy, labor,

and economic growth as provided under the nonprofit corporation

act, 1982 PA 162, MCL 450.2101 to 450.3192.

     (3) The nonprofit corporation act, 1982 PA 162, MCL 450.2101

to 450.3192, shall apply to a street railway organized under this

section unless otherwise provided in or inconsistent with this act.

     Sec. 13. Any A street railway corporation organized under the

provisions of this act, may , with the consent of the corporate

authorities of any city or village, given in and by an ordinance or

ordinances duly enacted for that purpose, and under such rules,

regulations and conditions as in and by such ordinance or

ordinances shall be prescribed, acquire, own, construct, use,

furnish, equip, complete, operate, improve, and maintain and own a

street railway for the transportation of passengers system in and

upon the lines of such streets and ways, in said city or village,

as shall be designated and granted from time to time for that

purpose, in the ordinance or ordinances granting such consent; but

no such highways of a road authority with the consent of the road

authority, on terms and conditions approved by the road authority.

When operating in and upon the streets and highways of a road

authority, a street railway is subject to rules, regulations, or

ordinances imposed by the road authority. A street railway company

shall not construct any street railway system in and upon the

streets and highways of any city or village a road authority until

the street railway company shall have accepted accepts in writing

the any terms and conditions upon which they are permitted to use

said streets; and any such company may extend, construct, use and

maintain their road in and along streets or highways of any

township adjacent to said city or village, upon such terms and

conditions as may be agreed upon by the company and the township

board of the township, which agreement, and the acceptance by the

company of the terms thereof, shall be recorded by the township

clerk in the records of his township. Any company organized under

the provisions of this act may construct, use, maintain and own a

street railway for the transportation of passengers in and along

the streets and highways of any township upon such terms and

conditions as may be agreed upon by the company and the township

board of the township, which agreement, and the acceptance by the

company of the terms thereof, shall be recorded by the township

clerk in the records of the township; and any such company imposed

by the road authority. The road authority shall require that the

street railway company pay the road authority for all of the

authority's costs incurred in construction of the street railway

and in mitigation of impact of the street railway on road users,

the environment, and the surrounding neighborhoods. A street

railway may acquire, own, construct, use, furnish, equip, complete,

operate, improve, and maintain and own a street railway system upon

private rights of way, and all such companies shall, when it is

necessary for a street railway to enter upon and use private

property in such construction and operation, for acquiring, owning,

constructing, furnishing, equipping, completing, operating,

improving, and maintaining a street railway system. The street

railway shall have the same power and right of eminent domain as is

now possessed by railroad companies. All proceedings at law or in

equity necessary to give this section effect shall be the same as

proceedings for the condemnation of property for companies

organized under the general railroad law and all statutes relative

to the exercise of the right of eminent domain for railroad

purposes are hereby made applicable to proceedings under this act:

Provided, That any such company may construct, use, maintain and

own a street railway as is herein provided along any highway

heretofore laid out or constructed or hereafter to be laid out or

constructed by the board of county road commissioners or any

highway adopted as a county road by the board of county road

commissioners and under their control, upon such terms and

conditions as may be agreed upon by the company and the said board

of county road commissioners, with the approval of a majority of

the board of supervisors, which agreement, and the acceptance by

the company of the terms thereof, shall be recorded by the county

clerk in the records of said board. Excepting, however, that

whenever the right of way for such railways is acquired by the

exercise of the power and right of eminent domain, the person,

association or corporation acquiring the same under and by virtue

of such power and right, shall not thereby acquire any right, title

or interest in and to any ores or minerals either upon or beneath

the surface of such part of the right of way, but the same shall

remain the property of the owners of the land or ores and minerals

at the time the right of way is so acquired. And said owners may,

without let or hindrance, mine, take and carry away all such ores

and minerals, and in doing so the said owners shall not be required

to protect the surface of such right of way from being damaged or

endangered by the removal of such ores and minerals. Any

corporation organized under this act shall have the following

additional powers, that is to say: To generate, and transmit for

itself and furnish and sell electricity and electric power, and

storing it, and dispensing and dividing it subject to the

regulations of cities, villages and townships where sold among

those who wish to purchase or lease it: Provided, That any

corporation organized under this act which shall engage in the

business of generating, transmitting, selling or distributing

electricity shall be subject to the relevant provisions of all laws

of this state relative to the regulation of the business of

generating, transmitting, selling or distributing electricity for

any of the purposes mentioned in this act. to obtain property under

the uniform condemnation procedures act, 1980 PA 87, MCL 213.51 to

213.75, in the same manner as a railroad under section 241 of the

railroad code of 1993, 1993 PA 354, MCL 462.241.

     (3) After a road authority consents to the acquiring, owning,

constructing, furnishing, equipping, completing, operating,

improving, and maintaining of a street railway system on the

streets or highways of the road authority or grants a right or

privilege to the street railway, the road authority may not revoke

the consent or deprive the company of the rights and privileges

conferred without affording the street railway procedural due

process of law.

     (4) A street railway may do 1 or more of the following:

     (a) Acquire by gift, devise, transfer, exchange, purchase,

lease, or otherwise on terms and conditions and in a manner the

street railway considers proper property or rights or interests in

property relating to the operation of the street railway or street

railway system.

     (b) Take, transport, or carry and convey persons and property

on a street railway system and receive compensation for that

purpose.

     (c) Erect and maintain all necessary and convenient buildings,

structures, stations, depots, fixtures, and machinery for the

accommodation and use of the street railway passengers and property

transported by the street railway.

     (d) Regulate the time and manner in which persons and property

may be transported by the street railway and fares or other

compensation may be paid for that purpose. A street railway may

charge just and fair compensation for the use of its street railway

system.

     (e) Borrow money and issue bonds and notes for any

indebtedness incurred and may mortgage their street railway

property and rights to secure the payment of bonds, note, money

borrowed, and any and all debts and liabilities which the street

railway may incur.

     Sec. 15. Any street railway company may also purchase or

acquire, either at public or private sale, whether judicial or

otherwise; or may hire any street railway in any city, village or

township owned by any other corporation or company, together with

all the real and personal estate belonging thereto, and the rights,

privileges and franchises thereof, and may use, maintain, and

complete such road, and may use and enjoy the rights, privileges

and franchises of such company in the same manner and upon the same

terms as the company whose road and franchise, so acquired, might

have done; or may lease, sell and convey its railway, together with

the rights, privileges and franchises thereof to any other street

railway company subject to such terms and limitations as may be

expressed in this act. Every street railway company may also

purchase, hold, own or take upon lease such real estate, barns,

stables, buildings, fixtures and property as may be necessary for

the use and business of their road; and the whole or any part

thereof, together with their railway fixtures, property and

appurtenances, rights, privileges and franchises may sell, lease,

dispose of, pledge or mortgage whenever the corporation shall deem

it expedient so to do: Provided, however, That no company shall,

under the provisions hereof, lease, purchase, or acquire a

competing road. Any street railway may also, as an incident to its

business and for the better service for the public, acquire, own,

lease or hire motor vehicles and may, upon compliance with all

laws, state and municipal, authorizing the operation and regulating

the use of motor vehicles on the highway, operate the same on and

over the public highways of this state for the transportation of

such persons and property as it may lawfully transport on its

railway: Provided, No such motor vehicle equipment shall be used to

do a local business in any municipality in this state without the

permission of the municipality in which such local business is

wholly carried on. Any street railway may also acquire and own the

capital stock of any corporation owning or operating motor vehicles

for the purpose and in the manner hereinbefore stated: Provided

further, Nothing herein contained shall be understood as obviating

the necessity for obtaining any franchise now required by law and a

certificate of public convenience and necessity from the Michigan

public utilities commission as provided in Act No. 209 of the

Public Acts of 1923 and any amendments thereto. Subject to

applicable law and any applicable regulations of a county, city,

township, or village, a street railway may do 1 or more of the

following:

     (a) Generate, store, transmit, distribute, dispense, furnish,

or use electricity and electric power for the street railway and

the street railway system.

     (b) Generate, store, transmit, distribute, dispense, furnish,

or sell electricity and electric power to other persons or

entities.

     Sec. 17. (1) In constructing their railways every such company

a street railway system, a street railway shall conform to the

grades established , or which may be established, by the common

council or other corporate authorities of the city, village or

township, for the by a road authority for a public street or

highway traversed by said railways, nor shall the company at any

time the street railway.

     (2) A street railway shall not alter or change the grade or

line of any public street or highway, without the consent of the

common council or other corporate authorities of the city, village

or township, first had and obtained. road authority with public

jurisdiction over the public street or highway.

     (3) A street railway shall lay and maintain the track of a

street railway system in a manner and with the type of track to

keep the track and the pavement of the public street or highway

adjacent to the track in a state of condition and repair as

prescribed by the road authority with jurisdiction over the public

street or highway.

     Sec. 19. The common council or other corporate authorities of

the city or village, in which any street railway shall be located,

may from time to time, by ordinance or otherwise, establish and

prescribe such rules and regulations in regard to said railway, as

may be required for the grading, paving and repairing the street,

and the construction of sewers, drains, reservoirs and crossings,

and the laying of gas and water-pipes, upon, in and along the

streets traversed by such road, and to prevent obstructions

thereon. A road authority may establish and prescribe rules and

regulations applicable to a street railway operating in or upon a

public street or highway under the jurisdiction of a road authority

relating to 1 or more of the following subjects:

     (a) Grading, paving, obstruction, or repairing of a street or

highway.

     (b) Construction, maintenance, or obstruction of public

service facilities, including water, light, heat, power, sewage

disposal, and transportation.

     Sec. 21. (1) If a person refuses to pay a fare owed to a

street railway or refuses to obey regulations established by the

street railway for the convenience and safety of passengers, the

street railway may remove the person from the streetcar, tram, or

trolley at a usual stopping place.

     (2) A person who causes or attempts to cause the derailment of

a streetcar, tram, or trolley of a street railway by the placing of

an impediment upon the track of a street railway, whether the

streetcar, tram, or trolley is dislodged from the track or not, or

who by any other means whatsoever willfully endangers or attempts

to endanger the life of any person engaged in the work of the

street railway, or any person traveling on the streetcar, tram, or

trolley of the street railway, is guilty of a felony punishable by

imprisonment for life or any number of years. Proof that the person

intended to injure or endanger the life of any particular person is

not required to prove a violation of this section.

     (3) A person who throws a stone, brick, or other missile at a

streetcar, tram, or trolley of a street railway is guilty of a

misdemeanor punishable by a fine of not less than $100.00 or more

than $500.00 or imprisonment for not less than 10 days or more than

90 days, or both.

     Sec. 23. If the directors of any company formed under this act

shall declare or pay any dividend when the company is insolvent, or

the payment of which would render it insolvent, or which would

diminish the amount of its capital stock, they and all stockholders

who shall knowingly accept or receive such dividend, shall be

jointly and severally individually liable for all the debts of such

company then existing and for all that shall be thereafter

contracted, while they shall respectively continue stockholders or

in office.

     (1) At the request of a street railway and only with the

consent of an affected municipality, the department may establish a

transit development finance zone for a street railway system if the

department determines that it is necessary for the best interests

of the public to promote and finance transit development in a zone.

A parcel shall not be included in more than 1 zone created under

this section. If the street railway requests that the department

establish a transit development finance zone under this section,

the street railway agrees that its employees shall be public

employees under 1947 PA 336, MCL 423.201 to 423.217.

     (2) The boundaries of a zone shall be established by the

department in agreement with affected municipalities and may

include parcels that are not greater than 1/4 mile in distance from

a street railway system operated by the street railway. Before

establishing a zone, the department shall consult with affected

municipalities, counties, street railways, public transportation

agencies, private transportation providers, and any other person or

entity that the department considers necessary before designating a

zone. The department may conduct a planning study and may designate

a zone in advance of implementation of street railway system

service associated with a zone.

     (3) The department shall enter into an agreement with the

affected municipalities and the street railway to create a zone.

The agreement shall include all of the following:

     (a) The geographic boundaries of the zone, including both of

the following:

     (i) The designation of boundaries of the zone in relation to

highways, streets, streams, lakes, other bodies of water, or

otherwise.

     (ii) The location and extent of existing streets and other

public facilities within the zone, designating the location,

character, and extent of the categories of public and private land

uses then existing in the zone, including residential,

recreational, commercial, industrial, educational, and other uses,

and including a legal description of the zone.

     (b) A tax increment financing plan for the zone.

     (c) A description of specific actions to be taken by the

parties under the agreement to help establish the zone.

     (d) The requirement that amendments to the agreement must be

approved by the department, affected municipalities, and the street

railway.

     (e) Any other material that the department, affected

municipalities, or the street railway considers necessary or

appropriate.

     (4) An agreement designating a zone and establishing its

boundaries under subsection (3) and any amendments to the agreement

shall be filed by the department with the secretary of state.

     (5) A tax increment financing plan for a zone established

under this section shall include a detailed explanation of the tax

increment procedure and a statement of the estimated impact of tax

increment financing on the assessed value of all taxing

jurisdictions in which the zone is located. The plan shall provide

for the use of part or all of the captured assessed value by the

street railway for the expenses of operating the street railway,

with any portion used clearly stated in the tax increment financing

plan. The department and affected municipalities may exclude from

captured assessed value growth in property value resulting solely

from inflation. The plan shall set forth the method for excluding

growth in property value resulting solely from inflation. Before

including a tax increment financing plan in an agreement under

subsection (3), the department shall provide a reasonable

opportunity to the taxing jurisdictions levying taxes subject to

capture to meet with the department. The department shall fully

inform the taxing jurisdictions of the fiscal and economic

implications of the plan. The taxing jurisdictions may present

their recommendations to the department on the tax increment

financing plan.

     (6) Before a tax increment financing plan is implemented, the

department shall enter into a contract with the street railway

included within the zone. The contract shall include, but not be

limited to, terms regarding the distribution of revenue.

     (7) The municipal and county treasurers shall transmit tax

increment revenues to the street railway. The street railway shall

expend the tax increment revenues only under the terms of the tax

increment financing plan. Unused funds shall revert proportionately

to the respective taxing bodies. Tax increment revenues shall not

be used to circumvent existing property tax limitations. The

department may abolish the tax increment financing plan if it finds

that the purposes for which it was established are accomplished.

Annually, the street railway, with assistance from the department,

shall submit to the department and the state tax commission a

report on the status of the tax increment financing revenue. The

report shall include all of the following:

     (a) The amount and source of tax increment revenue received by

the street railway.

     (b) The amount and purpose of expenditures from tax increment

revenue.

     (c) The initial assessed value of the zone.

     (d) The captured assessed value retained within the zone.

     (e) A description of operating expenditures of the street

railway.

     (f) Any additional information the department or state tax

commission considers necessary.

     (8) The state tax commission may institute proceedings to

compel enforcement of this section. The state tax commission may

promulgate rules necessary for the administration of this section

under the administrative procedures act of 1969, 1969 PA 306, MCL

24.201 to 24.328.

     (9) The department of treasury and the state tax commission

may assist the department in performing duties and responsibilities

under this section.

     (10) As used in this section:

     (a) "Assessed value" means the taxable value as determined

under section 27a of the general property tax act, 1893 PA 206, MCL

211.27a.

     (b) "Captured assessed value" means the amount in any 1 year

by which the current assessed value of a zone, including the

assessed value of property for which specific local taxes are paid

in lieu of property taxes, exceeds the initial assessed value. The

state tax commission shall prescribe the method for calculating

captured assessed value.

     (c) "Initial assessed value" means the assessed value of all

the taxable property within the boundaries of a zone at the time

the tax increment financing plan is approved by the department, as

shown by the most recent assessment roll of the municipality at the

time the plan is adopted. Property exempt from taxation at the time

of the determination of the initial assessed value shall be

included as zero. For the purpose of determining initial assessed

value, property for which a specific local tax is paid in lieu of a

property tax shall not be considered to be property that is exempt

from taxation.

     (d) "Parcel" means an identifiable unit of land that is

treated as separate for valuation or zoning purposes.

     (e) "Specific local tax" means a tax levied under 1974 PA 198,

MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA

255, MCL 207.651 to 207.668, the technology park development act,

1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to

211.182. The initial assessed value or current assessed value of

property subject to a specific local tax shall be the quotient of

the specific local tax paid divided by the ad valorem millage rate.

The state tax commission shall prescribe the method for calculating

the initial assessed value and current assessed value of property

for which a specific local tax was paid in lieu of a property tax.

     (f) "Street railway" also includes a metropolitan authority

that is the successor of the rights and interests of a street

railway under section 27.

     (g) "Tax increment revenues" means the amount of ad valorem

property taxes and specific local taxes attributable to the

application of the levy of all taxing jurisdictions upon the

captured assessed value of real and personal property in the zone.

Tax increment revenues do not include any of the following:

     (i) Taxes under the state education tax act, 1993 PA 331, MCL

211.901 to 211.906.

     (ii) Taxes levied by local or intermediate school districts.

     (iii) Ad valorem property taxes attributable either to a portion

of the captured assessed value shared with taxing jurisdictions

within the jurisdictional area of the authority or to a portion of

value of property that may be excluded from captured assessed value

or specific local taxes attributable to the ad valorem property

taxes.

     (iv) Ad valorem property taxes excluded by the tax increment

financing plan of the authority from the determination of the

amount of tax increment revenues to be transmitted to the authority

or specific local taxes attributable to the ad valorem property

taxes.

     (v) Ad valorem property taxes exempted from capture under

subsection (5) or specific local taxes attributable to the ad

valorem property taxes.

     (vi) Ad valorem property taxes specifically levied for the

payment of principal and interest of obligations approved by the

electors or obligations pledging the unlimited taxing power of the

local governmental unit or specific taxes attributable to those ad

valorem property taxes.

     (h) "Zone" means a transit development finance zone

established by the department under this section.

     Sec. 25. On or before the second Monday in January in each

year, it shall be the duty of the directors of every company formed

under this act, to report to the secretary of state, under the oath

of at least 2 of such directors—

     First. The amount of capital paid in;

     Second. The amount of the indebtedness of the company;

     Third. The length of road completed;

     Fourth. Cost of construction and equipment;

     Fifth. Gross receipts and earnings of the company for the past

year;

     Sixth. Cost of operating the road for the past year;

     Seventh. Amount of dividends for the past year;

     Eighth. A list of stockholders, their name and residence. A

street railway may transfer its assets, rights, and interests,

including, but not limited to, assets, rights, and interests in a

street railway system to a metropolitan authority created after

September 30, 2008.

     Sec. 27. Every company incorporated under this act, for the

purposes of constructing a railway, shall cease to be a body

corporate, if within 1 year from the time of filing their articles

of association with the secretary of state, they shall not have

commenced the construction of their railway, and expended therein

at least 10 per cent of their capital stock.

     (1) Within 30 days of the effective date of the amendatory act

that added section 21, the secretary of state or any other agency

having records of a street railway company formed under this act

prior to the effective date of the amendatory act that added

section 21 shall certify and transfer the records to the bureau of

commercial services of the department of labor and economic growth.

     (2) Any entity formed on or after the effective date of the

amendatory act that added section 21 for the purpose of acquiring,

owning, constructing, furnishing, equipping, completing, operating,

improving, and maintaining a street railway or street railway

system shall be organized under this act.

     (3) A street railway is not subject to the railroad code of

1993, 1993 PA 354, MCL 462.101 to 462.451.

     Enacting section 1. Sections 2, 4, 6, 8, 10, 12, 14, 16, 18,

20, 22, 24, 28, 29, 30, 31, 31a, 32, 34, 35, and 36 of 1867 PA 35,

MCL 472.2, 472.4, 472.6, 472.8, 472.10, 472.12, 472.14, 472.16,

472.18, 472.20, 472.22, 472.24, 472.28, 472.29, 472.30, 472.31,

472.31a, 472.32, 472.34, 472.35, and 472.36, are repealed.