January 30, 2013, Introduced by Reps. Somerville and Muxlow and referred to the Committee on Local Government.
A bill to amend 1945 PA 327, entitled
"Aeronautics code of the state of Michigan,"
by amending sections 111, 112, 113, and 114 (MCL 259.111, 259.112,
259.113, and 259.114), as added by 2002 PA 90.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
111. (1) An authority created under or pursuant to this
chapter shall be directed and governed by a board consisting of 7
members.
(2)
The Subject to subsection
(8), the members of a board of
an authority created under section 110(2) shall be appointed as
follows:
(a) Two board members shall be appointed by the governor, with
1 board member appointed for an initial term of 6 years and 1 board
member appointed for an initial term of 8 years.
(b) One board member shall be appointed by the legislative
body of the local government that owns the airport, for an initial
term of 4 years. Notwithstanding any other statute, law, ordinance,
or charter provision to the contrary, the board member appointed by
the legislative body may be a member of the legislative body of the
local government that owns the airport, but only while continuing
to serve as a member of the legislative body of that local
government.
(c) Four board members shall be appointed by the local chief
executive officer of the local government that owns the airport,
with 1 board member appointed for an initial term of 4 years, 1
board member appointed for an initial term of 2 years, and 2 board
members appointed for an initial term of 6 years.
(d) Each appointing entity shall file each appointment under
this subsection with the department. Each subsequent appointment by
an appointing entity to fill a vacancy on the board shall also be
filed with the department.
(3)
Upon incorporation of an authority pursuant to under
section 110(3), the local chief executive officer, with the consent
of the legislative body of the local government if the local chief
executive officer is not elected, shall appoint the members of the
board. Of the board members first appointed under this subsection,
1 board member shall be appointed for a term of 2 years, 2 board
members shall be appointed for terms of 4 years each, 3 board
members shall be appointed for terms of 6 years each, and 1 board
member shall be appointed for a term of 8 years.
(4)
A board member appointed pursuant to under subsection
(2)(b)
or (c), or (3), or (8)(b) or (c) must be a
citizen of the
United States and a resident of the local government that owns the
airport over which operational jurisdiction will be transferred to
an
authority. A board member appointed pursuant to under subsection
(2)(a) or (8)(a) must be a citizen of the United States and a
resident of the area within the jurisdiction of the regional
planning commission created under 1945 PA 281, MCL 125.11 to
125.25, in which the airport over which operational jurisdiction
will be transferred is located. Except as permitted by subsection
(2)(b) or (8)(b), a person shall not be appointed under subsection
(2), or
(3), or (8) as a board member if he or she is, or was
during the 12 months preceding the date of appointment, an elected
public official or employee of this state or an agency or
instrumentality of this state, a local government or an agency or
instrumentality of a local government, or the federal government or
an agency or instrumentality of the federal government.
(5)
A board member appointed pursuant to under subsection (2),
or
(3), or (8), a chief executive
officer, and a chief financial
officer of an authority, shall, at time of appointment or hiring
and subject to subsection (6), meet all of the following
qualifications:
(a) Neither the board member or the chief executive officer or
chief financial officer, nor the spouse or his or her siblings,
children or their spouses, parents, or siblings or their spouses of
the board member or the chief executive officer or chief financial
officer, are actively engaged or employed in any other business,
vocation, or employment of any civil aeronautics enterprise
connected with the airport under the control of the authority.
(b) Neither the board member or the chief executive officer or
chief financial officer, nor the spouse or his or her siblings,
children or their spouses, parents, or siblings or their spouses of
the board member or the chief executive officer or chief financial
officer, have a combined 15% or greater direct pecuniary interest
in any civil aeronautics enterprise connected with the airport
under the control of the authority.
(c) The board member or the chief executive officer or chief
financial officer would not be considered to have a conflict of
interest under 1968 PA 318, MCL 15.301 to 15.310, in respect to any
contract or subcontract involving the airport if the board member
or the chief executive officer or chief financial officer were
considered a state officer under 1968 PA 318, MCL 15.301 to 15.310.
(6) A board member or his or her relative who, at any time
during his or her term of service, becomes in violation of
subsection (5)(b) shall have 30 days to divest, or arrange for the
divestment of, the interest that caused the violation. If the board
member or his or her relative is still in violation of subsection
(5)(b) after the expiration of the 30-day period, the entity that
appointed that board member shall remove the board member from
office.
(7) Notwithstanding any law or charter provision to the
contrary, appointments by a local chief executive officer under
subsection
(2) shall are not be subject to the approval by the
legislative body of the local government.
(8) The board of an authority appointed under subsection (2)
that exists on the date of the 2013 amendatory act that amended
this section is dissolved effective 30 days after the effective
date of the 2013 amendatory act that amended this section and shall
be replaced within 30 days after the effective date of the 2013
amendatory act that amended this section with a board whose members
are appointed as follows:
(a) Two board members shall be appointed by the governor, with
1 board member appointed for an initial term of 6 years and 1 board
member appointed for an initial term of 8 years.
(b) Four board members shall be appointed by the legislative
body of the local government that owns the airport, with 1 board
member appointed for an initial term of 4 years, 1 board member
appointed for an initial term of 2 years, and 2 board members
appointed for an initial term of 6 years. Notwithstanding any other
statute, law, ordinance, or charter provision to the contrary, a
board member appointed by the legislative body may be a member of
the legislative body of the local government that owns the airport,
but only while continuing to serve as a member of the legislative
body of that local government.
(c) One board member shall be appointed by the local chief
executive officer of the local government that owns the airport for
an initial term of 4 years.
(d) Each appointing entity shall file each appointment under
this subsection with the department. Each subsequent appointment by
an appointing entity to fill a vacancy on the board shall also be
filed with the department.
(9) (8)
The board shall appoint a chief
executive officer who
shall be an ex officio member, without vote, of the board and shall
not
be considered in determining the presence of a quorum. ,
who A
chief executive officer appointed under this subsection shall have
professional qualifications commensurate with the responsibility of
the jobs to be performed by such officials. The board may enter
into a contract with the chief executive officer for a commercially
reasonable length of time commensurate with the length of time for
contracts of airport chief executive officers, directors, or
managers with similar responsibilities at other airports or airport
authorities within or without this state with a comparable number
of annual enplanements.
(10) (9)
The chief executive officer shall
appoint a chief
financial
officer who shall be the treasurer of the authority , and
who shall have professional qualifications commensurate with the
responsibility of the jobs to be performed by such officials.
Notwithstanding any law or charter provision to the contrary, it
shall
be is the duty and right of the chief financial officer of
the authority to receive all money belonging to the authority, or
arising or received in connection with the airport over which
operational jurisdiction has been transferred to the authority,
from whatever source derived. Money of the authority shall be
deposited, invested, and paid by the chief financial officer only
in accordance with policies, procedures, ordinances, or resolutions
adopted
by the board. Upon the approval date, the authority shall
be
is considered to be the owner of all money or other
property
then or thereafter received by the treasurer of the local
government or deposited in the treasury of a local government to
the credit of the airport for which operational jurisdiction has
been
transferred to the authority. The authority shall be is
entitled
to all interest and other earnings on those funds that
money
on and after the latter of the
effective date of this chapter
March 26, 2002 or the date on which the authority is created or
incorporated. The treasurer of any local government receiving or
having custody of money or other property belonging to an authority
under this chapter shall promptly transfer the money and other
property to the custody of the chief financial officer of the
authority. The chief financial officer shall provide the board with
copies of all reports made by the chief financial officer to the
chief executive officer.
Sec. 112. (1) Upon the expiration of the term of an initial
appointment
under section 111(2), or (3), or (8), all full term
appointments of members of a board shall be for a term of 6 years.
The expiration date of the term of office of a member of the board
shall be on October 1 of the year in which the term is to expire,
but a member of the board shall hold office until the board
member's successor is appointed and qualified, or until resignation
or removal. If a member of the board is unable to complete his or
her term of office, a successor shall be appointed in the same
manner as the original appointment to complete the term. A member
of the board may resign by written notice to the authority. The
resignation is effective upon its receipt by the secretary or
chairperson of the authority or at a subsequent time as set forth
in the notice of resignation.
(2) A member of the board may not be appointed to serve more
than 2 consecutive full terms. For purposes of this subsection, an
initial term under section 111(2) or (8) and an appointment to fill
a vacancy in a term with more than 3 years remaining count as full
terms.
(3)
The appointing entity for any a
board member appointed
under
section 111(2), or (3), or (8) may only remove a
board member
appointed by the appointing entity for cause.
(4) Before assuming the duties of office, a member of the
board shall qualify by taking and subscribing to the constitutional
oath of office.
Sec. 113. (1) Upon the appointment of at least 4 members of
the
a board under section 111(2) or (8),
the board may hold its
first
meeting. If less fewer than 4 members of the board have been
appointed under section 111(2) or (8) within 30 days after the date
on which the authority is created, a majority of those board
members appointed may hold the first meeting of the board after the
expiration of that 30-day period. The first meeting of the board
shall not be held more than 60 days after the creation date of the
authority. Not later than 60 days after an authority is
incorporated under section 110(3), the board of the authority shall
hold its first meeting. At the first meeting, the board shall
organize by electing a chairperson, a vice-chairperson, a
secretary, and additional officers of the board as the board
considers necessary. All officers of the board shall be elected
annually by the board. All officers of the authority, except the
chief executive officer and the chief financial officer, must be
members of the board.
(2)
The business that of the board may perform shall be
conducted at a public meeting of the board held in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public
notice of the time, date, and place of the meeting shall be given
in the manner required by the open meetings act, 1976 PA 267, MCL
15.261 to 15.275. A board shall adopt rules consistent with the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275, governing its
procedures and the holding of meetings.
(3) Except for those powers reserved or delegated to the chief
executive officer of an authority by this chapter or by the board,
the board shall not delegate any power of the board to any other
officer or committee of the authority except as provided in section
114(3). The board may withdraw from the chief executive officer any
power that the board had delegated to the chief executive officer.
(4) Members of a board may be reimbursed by an authority for
actual and necessary expenses incurred in the discharge of their
official duties. The members of the board shall not be compensated
for service to the authority or attendance at any meetings.
(5) A board may act only by resolution or ordinance. A
majority of the members of the board then in office, or of any
committee
of the board, shall constitute are
a quorum for the
transaction of business. A vote of a majority of the members of the
board serving at the time of the vote is necessary to approve the
issuance by the authority of bonds, including special facilities
bonds, or other obligations payable from revenues, including
special facilities revenues, derived from the airport, or to
approve or amend the annual budget of the authority or hire, remove
or discharge, or set the salary of the chief executive officer.
Except as otherwise provided in this chapter, a vote of the
majority of the board members present at a meeting at which a
quorum is present constitutes the action of the board or of the
committee.
Sec. 114. (1) After organization, a board shall adopt a
schedule of regular meetings and adopt a regular meeting date,
place, and time. The board shall meet not less than quarterly per
year. The board chairperson shall call a special meeting upon
request of 3 members of the board in the manner required by the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275. A board shall
keep a written or printed record of each meeting, which record and
any other writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function
shall be made available to the public in compliance with the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(2) A board shall provide for a system of accounts to conform
to a uniform system required by law and for the auditing at least
once a year of the accounts of the authority by an independent
certified public accountant selected by the audit committee
pursuant to subsection (3). A board shall meet any and all auditing
or financial reporting requirements imposed by law and shall file a
copy of its annual audit with the department and with the clerk of
the house of representatives and the secretary of the senate. An
authority shall provide the necessary reports to the local
government that owns the airport over which operational
jurisdiction has been transferred in a timely manner in order for
the local government to be able to comply with the reporting
requirements of the government finance officers association of the
United
States and Canada. A board shall require of the chief
financial officer and chief executive officer of the authority to
obtain a suitable bond of not less than $100,000.00 by a
responsible bonding company, and the cost of the premium of the
bond shall be paid by the authority.
(3) A board appointed under section 111(3) shall appoint an
audit committee consisting of 3 members of the board. With respect
to
boards appointed pursuant to under
section 111(2) or (8),
the
board shall have a 3-member audit committee with each appointing
entity represented on the board designating 1 board member
appointee to serve on the audit committee. The audit committee
shall hold its first meeting within 60 days after the creation or
incorporation of the authority under this chapter. A majority of
members appointed and designated as audit committee members by an
appointing entity under this subsection may conduct the business of
the committee. The audit committee shall meet not less than 4 times
each year with the chief financial officer, the chief executive
officer of the authority, and the authority's independent public
auditors to review the reports related to the financial condition,
operations, performance, and management of the authority and
airport including, but not limited to, all contractors and
subcontractors, and may also order special investigations or
audits, the cost of which shall be reimbursed by the authority. The
audit committee shall also review the activities and reports of the
internal auditor of the authority who shall be appointed by the
chief executive officer of the authority. The audit committee of a
board
appointed pursuant to under
section 111(2) or (8) shall
once
every 2 years, recommend 3 independent certified public accounting
firms that, in the judgment of the audit committee, possess
sufficient resources and qualifications to conduct annual financial
audits
of the accounts of the authority. Not less that than 90
days
prior
to before the first full fiscal year of the authority and the
last fiscal year of each subsequent contract period for which
financial
audits will be conducted under section 114(2), subsection
(2), the 3 recommendations of the audit committee shall be
presented to the legislative body of the local government that owns
the airport over which operational jurisdiction has been
transferred
pursuant to under this chapter. From the 3
recommendations of the audit committee, the legislative body of the
local government may select, not more than 30 days after receipt of
the recommendations of the audit committee, the independent
certified public accounting firm with whom the authority shall
execute an agreement to conduct annual financial audits for the
succeeding 2 fiscal years of the accounts of the authority. If the
legislative body does not select 1 of the recommended independent
certified public accounting firms to conduct annual financial
audits for the next 2 fiscal years of the authority within 30 days
after receipt of the recommendations of the audit committee, the
audit
committee shall have has the sole power to select the
independent certified public accounting firm with whom the
authority shall execute an agreement to conduct annual financial
audits of the accounts of the authority for the next 2 fiscal
years.
The terms and conditions of a contract to be entered into
with the independent certified public accounting firm selected by
the legislative body of the local government shall be exclusively
established by the authority. The legislative body of the local
government
shall not have the right or power to modify any the
proposed terms and conditions of a contract between the authority
and an independent certified public accounting firm recommended by
the audit committee. Neither the legislative body nor any member of
the
legislative body of the local government shall impose any a
requirement, restriction, or condition upon, or solicit any
agreement or contribution from, the independent certified public
accounting firm or any member or employee of the independent
certified public accounting firm, selected or considered by the
legislative
body of the local government. No A charter provision or
resolution of the local government shall not contradict,
supplement, or expand this subsection. A person may not prevent or
prohibit the internal auditor or the audit committee from carrying
out or completing any audit or investigation. The internal auditor
and
members of the audit committee shall be are protected under the
whistleblowers' protection act, 1980 PA 469, MCL 15.361 to 15.369.
(4) A board shall appoint and fix the compensation of a chief
executive officer of the authority by a vote of not less than the
majority of the members of the board then serving. The board shall
prescribe
those the duties and responsibilities of the chief
executive officer of the authority that are in addition to the
duties and responsibilities imposed upon the chief executive
officer of the authority by this chapter. The chief executive
officer of an authority shall serve at the pleasure of the board
and the board may remove or discharge the chief executive officer
of the authority by a vote of not less than the majority of the
members of the board then serving. The chief executive officer of
an authority shall supervise, and be responsible for, all of the
following:
(a) The day-to-day operation of the airport, including the
control, supervision, management, and oversight of the functions of
the airport.
(b) The issuance of bonds and notes approved by the board.
(c) The negotiation and establishment of compensation and
other terms and conditions of employment for employees of the
authority.
(d) The appointment, dismissal, discipline, demotion,
promotion, and classification of employees of the authority.
(e) The negotiation, supervision, and enforcement of contracts
entered into by the authority, and the supervision of contractors
and subcontractors of the authority in their performance of their
duties.
(f) The appointment of an internal auditor who shall have
professional qualifications commensurate with the responsibility of
the jobs to be performed by such an official, and who shall:
(i) Report to the chief executive officer and provide
information to the board and its audit committee as required under
this chapter.
(ii) Receive and investigate any allegations that false or
misleading information was received in evaluating the authority's
internal accounting and administrative control system.
(iii) Conduct and supervise audits relating to financial
activities of the authority's operations.
(iv) Recommend policies for activities to protect the
authority's assets and to prevent and detect fraud and abuse.
(v) Conduct other audit and investigative activities as
assigned by the board, the audit committee, or the chief executive
committee.
(vi) Adhere to appropriate professional and auditing standards.
(vii) Provide to the audit committee on an annual basis a
report prepared by the internal auditor on the evaluation of the
authority's internal accounting and administrative control system.
For the period reviewed, the report shall include, but not be
limited to, both of the following:
(A) A detailed description of any material inadequacy or
weakness discovered in connection with the evaluation of the
authority's internal accounting and administrative control system
and a time schedule for correcting the internal accounting and
administrative
control system. , described in detail.
(B) A listing of each audit or investigation performed by the
internal
auditor pursuant to under this chapter.
(5) The chief executive officer of an authority shall have the
power and authority to execute and deliver, and to delegate
signatory power for, contracts, leases, obligations, and other
instruments approved by the board or for which power to approve has
been delegated to the chief executive officer of the authority. The
chief executive officer of an authority shall have all powers
incident to the performance of his or her duties that are
prescribed by this chapter or by the board. The board may delegate
additional powers to the chief executive officer of the authority
not enumerated in this chapter. All actions of the chief executive
officer of an authority shall be in conformance with the policies
of the board and in compliance with law. The chief executive
officer of an authority shall attend the meetings of the board and
shall render to the board a regular report covering the activities
and financial condition of the airport. If the chief executive
officer of an authority is temporarily absent or disabled, the
chief executive officer of the authority may designate a qualified
person as acting chief executive officer of the authority to
perform the duties of the office. If the chief executive officer of
an authority fails or is unable to designate an acting chief
executive officer of the authority, the board shall designate an
acting chief executive officer of the authority for the period of
absence or disability of the chief executive officer of the
authority. The chief executive officer of the authority shall
furnish the board with information or reports governing the
operation of the airport as the board requires.
(6) The authority shall establish contracting policies and
procedures providing for all of the following:
(a) Except for the negotiated construction contracts permitted
under this subdivision, a contract shall not be awarded by an
authority or the chief executive officer of the authority for the
construction, repair, remodeling, or demolition of an airport
facility unless the contract is let pursuant to a procedure that
requires
a competitive bidding. A negotiated construction contract
shall not be required to be let by competitive bidding if the board
or the chief executive officer of the authority with delegated
authority to enter into contracts determines that any of the
following apply:
(i) The negotiated contract amount is less than $50,000.00.
However, if the contract amount, including change orders,
subsequently exceeds $50,000.00, the authority shall detail, in
writing, the reasons why the contract amount exceeded $50,000.00.
(ii) As determined in writing by the board or the chief
executive officer with delegated authority to enter into contracts,
the contract is for emergency repair or construction necessitated
by a sudden, unforeseen occurrence or situation of a serious and
urgent nature and is not for convenience or expediency.
(iii) As determined in writing by the board or the chief
executive officer with delegated authority to enter into contracts,
the repair or construction is necessary to ensure passenger safety
or otherwise protect life or property.
(b) The authority shall establish policies and procedures for
hiring professional service contractors.
(c) The authority shall utilize competitive bidding for all
purchases and all other contracts unless the board, or, if
authorized by the board to approve procurements, the chief
executive officer of the authority, determines and details in
writing the reason that competitive solicitation of bids or
proposals is not appropriate, that procurement by competitive bids
is not practicable to efficiently and effectively meet the
authority's needs, or that another procurement method is in the
public's best interests.
(7) The authority may enter into lease purchases or
installment purchases for periods not exceeding the anticipated
useful life of the items purchased. The authority may enter into a
cooperative
purchasing agreement with the this
state or other
public entities for the purchase of goods, including, but not
limited to, recycled goods, and services necessary for the
authority.
(8) The chief executive officer of an authority shall comply
with all federal and state contracting requirements pertaining to
disadvantaged business enterprises, minority business enterprises,
and other targeted business enterprises and shall seek to ensure
maximum participation of disadvantaged business enterprises,
minority business enterprises, and other targeted business
enterprises in contracting opportunities with the authority.
(9) Members of the board and officers, appointees, and
employees of the authority are public servants under 1968 PA 317,
MCL 15.321 to 15.330, and are subject to any other applicable law
with respect to conflicts of interest. The board shall establish
policies and procedures requiring periodic disclosure of
relationships which may give rise to conflicts of interest. The
board shall require that a member of the board or a chief executive
officer or chief financial officer who has a direct interest in any
matter before the authority disclose the member's or officer's
interest and any reasons reasonably known to the member of the
board or officer why the transaction may not be in the best
interest of the public or the authority before the board takes any
action with respect to the matter. The disclosure shall become part
of the record of an authority's proceedings.
(10) An authority shall establish an ethics manual governing
the conducting of airport business and the conduct of airport
employees. An authority shall establish policies that are no less
stringent than those provided for public officers and employees by
1973 PA 196, MCL 15.341 to 15.348, and coordinate efforts for the
authority to preclude the opportunity for and the occurrence of
transactions by the authority that would create a conflict of
interest involving members of the board and employees of the
authority. At a minimum, these policies shall include compliance by
each member of the board and employees of the authority who
regularly exercise significant discretion over the award and
management of authority procurements with policies governing all of
the following:
(a) Immediate disclosure of the existence and nature of any
financial interest that would reasonably be expected to create a
conflict of interest.
(b) Withdrawal by an employee or member from participation in
or discussion or evaluation of any recommendation or decision
involving an authority procurement that would reasonably be
expected to create a conflict of interest for that employee or
member.
(11) An authority shall work collaboratively with appropriate
local governmental units in the implementation of any federally
sanctioned and funded programs for the mitigation of aircraft noise
and fuel fumes.