MichiganSB 00522025-2026 Regular SessionSenate

State finance: authorities; use of grant funds and issuance of revenue bonds; modify. Amends title & secs. 2, 8, 9, 10, 13, 14, 14a, 16, 18, 20, 23, 24 & 25 of 1978 PA 639 (MCL 120.102 et seq.) & adds sec. 19a. Last Action: ASSIGNED PA 0077'26 WITH IMMEDIATE EFFECT

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Port authorities can support more facilities

Michigan port authorities can build, finance, own, or operate more types of facilities, including freight, parking, tourism, and light manufacturing facilities. Related facilities must be within 5 miles of navigable waters in the authority’s area; international bridges are excluded. Authorities can seek public or private grants and loans, and make partnerships that help carry out the law. Development plans can cover these facilities, but individual projects still need prior approval from participating local governments and Michigan’s transportation and licensing departments. The law does not award project funding or guarantee grants.

Ports can operate facilities after defaults

A port authority can operate a facility it owns after the tenant leasing it defaults. The authority must negotiate or competitively bid a new lease. This gives authorities a way to keep facilities operating while replacing a defaulting tenant.

Broader port access with possible charges

Public bodies can contract to use a broader range of port authority facilities for up to 50 years. Authorities can set, collect, and revise fees, rents, and other charges for facilities they own or operate. Contract charges can rise to meet project obligations. The law sets no fee amount.

Port budget rules change public funding

The State’s required share is 50% of a port authority’s operating budget, subject to legislative approval. That budget excludes bond debt payments and costs to acquire, build, enlarge, improve, or extend facilities. Authorities submit an initial two-year budget and annual budgets for local and state approval. When participation involves no more than one county and one city, the county and city split the required local share equally. Uncommitted year-end surplus after operating expenses stays with the authority instead of returning to state or local general funds.

Local port contracts can require taxes

Port authorities and participating local governments can finance facility work or refinance debt through contracts with payments lasting up to 40 years. Contracting governments must pledge their full financial backing; those with taxing power must levy property taxes as needed to pay. Cities and counties can levy these taxes without a rate or dollar limit to meet their obligations. Payments can also use service charges, state-distributed funds, general revenues, or special assessments on benefited land. Assessment districts require a resolution, owners have hearing and objection rights, and assessments can be split into up to 30 installments.

Ports gain financing tools and obligations

Port authorities can use bonds for facility work and refinancing; revenue bonds are payable only from project income, without a general tax pledge. Revenue bonds must mature within 40 years and have a corporate trustee agreement pledging revenues and protecting bondholders. Separate contract-backed borrowing requires a participating public unit’s full financial backing; anticipatory bonds and notes also have a 40-year limit. Public-corporation advances are repayable when funds are available, at up to 8% yearly interest or interest-free by agreement. Authorities can also enter, change, or end credit lines, swaps, hedges, insurance, and related arrangements, setting payment, security, default, and termination terms.

Sponsors & Cosponsors

Sponsor

Erika Geiss
Democratic • Senate

Cosponsors

Dayna Polehanki
Democratic • Senate
John Cherry
Democratic • Senate
Paul Wojno
Democratic • Senate
Rosemary Bayer
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 127 • No: 13

House vote • 7/3/2026

passed; given immediate effect

Yes: 104 • No: 4 • Other: 2

Senate vote • 2/25/2025

PASSED

Yes: 23 • No: 9 • Other: 5

Actions Timeline

ASSIGNED PA 0077'26 WITH IMMEDIATE EFFECT
7/29/2026Senate
FILED WITH SECRETARY OF STATE 7/27/2026 11:54 AM
7/29/2026Senate
APPROVED BY GOVERNOR 7/21/2026 12:54 PM
7/29/2026Senate
PRESENTED TO GOVERNOR 7/14/2026 10:34 AM
7/15/2026Senate
ORDERED ENROLLED
7/3/2026Senate
FULL TITLE AGREED TO
7/3/2026Senate
GIVEN IMMEDIATE EFFECT
7/3/2026Senate
returned to Senate
7/3/2026House
inserted full title
7/3/2026House
passed; given immediate effect Roll Call #310 Yeas 104 Nays 4 Excused 0 Not Voting 2
7/3/2026House
read a third time
7/3/2026House
placed on third reading
7/2/2026House
read a second time
7/2/2026House
referred to second reading
6/23/2026House
reported with recommendation without amendment
6/23/2026House
referred to Committee on Transportation and Infrastructure
2/25/2025House
read a first time
2/25/2025House
received on 02/25/2025
2/25/2025House
PASSED ROLL CALL # 11 YEAS 23 NAYS 9 EXCUSED 5 NOT VOTING 0
2/25/2025Senate
PLACED ON ORDER OF THIRD READING
2/20/2025Senate
REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)
2/20/2025Senate
REFERRED TO COMMITTEE OF THE WHOLE
2/11/2025Senate
REPORTED FAVORABLY WITHOUT AMENDMENT 2/11/2025
2/11/2025Senate
REFERRED TO COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
2/4/2025Senate
INTRODUCED BY SENATOR ERIKA GEISS
2/4/2025Senate

Bill Text

Public Act
7/27/2026
PDF
As Passed by the House
7/3/2026
PDF
As Passed by the Senate
2/25/2025
PDF
Introduced
2/4/2025
PDF

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