Michigan Laws 141.1373 – Revenue sources; establishment of regional convention facility operating trust fund; expenditures; financial obligation
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Terms Used In Michigan Laws 141.1373
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Authority: means a regional convention facility authority created under section 7. See Michigan Laws 141.1355
- Board: means the board of directors of an authority. See Michigan Laws 141.1355
- Convention facility: means all or any part of, or any combination of, a convention hall, auditorium, arena, meeting rooms, exhibition area, and related adjacent public areas that are generally available to the public for lease on a short-term basis for holding conventions, meetings, exhibits, and similar events, together with real or personal property, and easements above, on, or under the surface of real or personal property, used or intended to be used for holding conventions, meetings, exhibits, and similar events, together with appurtenant property, including walkways, bicycle paths, plazas, green space, parking lots or structures, and roads necessary or convenient for use in connection with the convention facility. See Michigan Laws 141.1355
- Fiduciary: A trustee, executor, or administrator.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Local government: means a county or city. See Michigan Laws 141.1355
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Qualified city: means a city with a population of more than 550,000 according to the most recent decennial census that contains a qualified convention facility. See Michigan Laws 141.1355
- Qualified convention facility: means a publicly owned convention facility with not less than 600,000 square feet of usable exhibition area and that is located in a qualified city. See Michigan Laws 141.1355
- Qualified county: means a county that contains a qualified city. See Michigan Laws 141.1355
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) Except as provided in subsection (3), an authority may raise revenues to fund all of its activities, operations, and investments consistent with its purposes. The sources of revenue available to the authority may include, but are not limited to, any of the following:
(a) Rents, admission fees, or other charges for use of a convention facility which the authority may fix, regulate, and collect.
(b) Federal, state, or local government grants, loans, appropriations, payments, or contributions.
(c) The proceeds from the sale, exchange, mortgage, lease, or other disposition of property that the authority has acquired.
(d) Grants, loans, appropriations, payments, proceeds from repayments of loans made by the authority, or contributions from public or private sources.
(e) Distributions from the convention facility development fund of the state pursuant to the state convention facility development act, 1985 PA 106, MCL 207.621 to 207.640.
(f) Investment earnings on the revenues described in subdivisions (a) to (e).
(2) The revenues raised by an authority may be pledged, in whole or in part, for the repayment of bonded indebtedness and other expenditures issued or incurred by the authority.
(3) Notwithstanding any other provision of law to the contrary, an authority does not have the power to impose or levy a tax.
(4) The board by resolution may establish a regional convention facility operating trust fund for the purpose of accumulating funds to pay for the cost of operating and maintaining a qualified convention facility. Money for operating and maintaining a qualified convention facility, at the authority’s discretion, may be provided from this fund or any other money of the authority. The resolution establishing the fund must include all of the following:
(a) The designation of a person or persons who shall act as the fund’s investment fiduciary.
(b) A restriction of withdrawals from the fund solely for the payment of reasonable operating and maintenance expenses of a convention facility and the payment of the expenses of administration of the fund.
(5) An investment fiduciary shall invest the assets of the fund in accordance with an investment policy adopted by the board that complies with section 13 of the public employee retirement system investment act, 1965 PA 314, MCL 38.1133. However, the investment fiduciary shall discharge the investment fiduciary’s duties solely in the interest of the authority. The authority may invest the fund’s assets in the investment instruments and subject to the investment limitations governing the investment of assets of public employee retirement systems under the public employee retirement system investment act, 1965 PA 314, MCL 38.1132 to 38.1141.
(6) A financial obligation of an authority is a financial obligation of the authority only and not a financial obligation of this state, a qualified city, a qualified county, or a county bordering a qualified county. A financial obligation of the authority shall not be transferred to this state, a qualified city, a qualified county, or a county bordering a qualified county.