HB-6542, As Passed Senate, December 11, 2008

 

 

 

 

 

 

 

 

 

 

 

SENATE 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, and 27 (MCL 472.1, 472.3, 472.5, 472.7, 472.9, 472.11, 472.13,

 

472.15, 472.17, 472.19, 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 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 and

 

the provision of public transportation services by authorizing the

 

acquiring, owning, constructing, furnishing, equipping, completing,

 

operating, improving, and maintaining of nonprofit street railway

 

companies and systems and that public 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 system constructed

 

by a nonprofit corporation under this act be designed to adapt to

 

or connect with other public transit systems. It is the intent of

 

the legislature that resources expended to construct a street

 

railway system under this act qualify as state and local match

 

funds for transit systems 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.

 

     (3) Unless permitted by the state constitution of 1963 or this

 

act or agreed to by a street railway, any restrictions, standards,

 

conditions, or prerequisites of a city, village, or township

 


otherwise applicable only to a street railway and enacted after the

 

effective date of the amendatory act that added section 21 do not

 

apply to a street railway. This subsection is intended to prohibit

 

special local legislation or ordinances applicable exclusively or

 

primarily to a street railway and not to exempt a street railway

 

from laws generally applicable to other persons or entities.

 

     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 of state government created under section 350

 

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

 

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

 

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

 

450.2108.

 

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

 

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

 

road authority.

 

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

 

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

 

     (e) "Operating license agreement" means an agreement entered

 

into under section 13 by and among a street railway and each road

 

authority with jurisdiction over public streets and highways upon

 


which the street railway operates or seeks to operate a street

 

railway system, including, but not limited to, each city, village,

 

or township road authority in the city, village, or township in

 

which the street railway operates or seeks to operate a street

 

railway system.

 

     (f) "Road authority" means each governmental agency with

 

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. When a street railway operates or seeks to

 

operate a street railway system over public streets and highways

 

over which more than 1 road authority possesses jurisdiction, road

 

authority includes each road authority with jurisdiction over

 

public streets and highways upon which the street railway operates

 

or seeks to operate a street railway system.

 

     (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 at grade or above or below

 

ground within a city, village, or township utilizing streetcars,

 

trolleys, light rail vehicles, or trams for the transportation of

 

persons or property. Street railway system also includes necessary

 

power feeds, signals, and stops or stations within a public right-

 

of-way. Street railway system excludes facilities and improvements

 


not required to maintain a public transportation system.

 

     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 street railway

 

under this act 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 shall 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.

 

     (2) Articles of incorporation shall be 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. 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 detailing the purposes for which the

 

corporation is organized, which shall be limited to purposes

 

related to 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. (1) 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 approval of the road

 

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

 

The approval shall be embodied in an operating license agreement by

 

and among a street railway and each road authority with

 

jurisdiction over public streets and highways upon which the street

 

railway operates or seeks to operate a street railway system,

 

including, but not limited to, a city, village, or township road

 

authority located in the city, village, or township in which the

 

street railway system operates or seeks to operate. The operating

 

license agreement shall include the terms and conditions for

 

operation of the street railway system. Before approving an

 

agreement, a road authority shall hold a public hearing on the

 

proposed operating license agreement. The hearing shall be held in

 

the city, village, or township in which the street railway seeks to

 

operate a street railway system and shall be held in compliance

 

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

Notice of the public hearing shall be provided not less than 20

 

days before the date of the hearing. One or more road authorities

 

may conduct a joint public hearing under this section. At a public

 

hearing, a street railway and a road authority may present

 

information regarding the proposed operating licensing agreement as

 

the street railway or the road authority deems appropriate. 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 company

 

shall have accepted street railway 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

 

operating license agreement is approved under this section, and the

 

agreement is filed with each road authority with jurisdiction over

 

public streets and highways upon which the street railway will

 

operate. A road authority has the power in its discretion to

 

approve or disapprove an operating license agreement. A decision of

 

a road authority regarding an operating license agreement shall be

 

final and binding upon a street railway and other interested

 

persons. The street railway shall pay the road authority for all of

 

the road authority's costs incurred in constructing the street

 


railway system, mitigating the impact of the street railway system

 

on road users, the environment, and the surrounding neighborhoods,

 

and modifying the streets or highways impacted by construction of

 

the street railway system.

 

     (2) A street railway may acquire, own, construct, use,

 

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

 

street railway system upon public or private rights of way, and all

 

such companies shall, obtain easements when necessary for a street

 

railway to enter upon acquire and use private property for

 

acquiring, owning, constructing, furnishing, equipping, completing,

 

operating, improving, and maintaining a street railway system. in

 

such construction and operation, 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.

 

     (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 by entering into an operating

 

license agreement with the street railway, the road authority may

 

not revoke the consent or deprive the street railway of the rights

 

and privileges conferred without affording the street railway

 

procedural due process of law if and to the extent provided in the

 

operating license agreement for the street railway.

 

     (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 just and fair compensation

 

from users of the street railway system for that purpose.

 

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

 

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

 

accommodation and use of persons 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, notes, money

 

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

 

railway may incur. A street railway shall not use tax increments to

 

repay bonds and notes.

 

     (f) Transfer a street railway system to a public entity

 

operating a public transportation system if the transfer is

 

authorized by a law enacted after the effective date of the

 

amendatory act that added section 21.

 

     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.

 

     (1) Subject to applicable law and applicable regulations of

 

this state, a city, a township, or a village, a street railway may

 

generate, store, transmit, distribute, dispense, furnish, or use

 

electricity and electric power for use or consumption by the street

 

railway and the street railway system.

 


     (2) If a street railway requests a public utility to modify or

 

relocate facilities of the public utility that lie within a public

 

street or highway right of way, or if, in response to the

 

construction, expansion, or modification of a street railway system

 

a public utility determines that the public utility should modify

 

or relocate the public utility's facilities, consistent with law,

 

regulation, or good utility practice and unless the street railway

 

and the public utility agree otherwise, the street railway shall

 

pay all costs of the relocation and modification of the facilities

 

to the public utility.

 

     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 and infrastructure, including water, light,

 

heat, power, sewage disposal, and transportation.

 

     (c) Construction, maintenance, or obstruction of traffic

 

control and parking control facilities and infrastructure.

 

     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. 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 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 energy, labor, and economic growth.

 

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

 


House Bill No. 6542 as amended December 11, 2008

 

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, 25, 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, 472.25, 472.28, 472.29, 472.30,

 

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

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

<<(a) Senate Bill No. 1104.>>

     <<(a)(b)>> Senate Bill No. 1588.

 

     <<(b)(c)>> Senate Bill No. 1589.

 

     <<(c)(d)>> Senate Bill No. 1590.

 

     <<(d)(e)>> Senate Bill No. 1592.