HB 4694 — Local government: authorities; revisions to the recreational authorities act; provide for. Amends secs. 5, 7, 11 & 21 of 2000 PA 321 (MCL 123.1135 et seq.) & adds secs. 5a, 9a & 10. TIE BAR WITH: HB 4695'25, HB 4798'25

HB-4694, As Passed Senate,House, AprilSeptember 30,18, 20262025 SENATE SUBSTITUTE FOR HOUSE BILL NO.

4694 A bill to amend 2000 PA 321, entitled "Recreational authorities act," by amending sections 5, 7, 9, 11, and 21 (MCL 123.1135, 123.1137, 123.1139, 123.1141, and 123.1151), sections 5 and 21 as amended by 2003 PA 135 and section 11 as amended by 2016 PA 173, and by adding sectionssection 5a, 9a, and 10.

(1) Two ExceptOne as otherwise provided in this section, 2 or more municipalities or districts may establish a recreational authority.

IfA therecreational municipality,authority municipalities,is district,an orauthority districtsunder aresection located6 inof aarticle countyIX with a population of lessthe thanstate 4,000,constitution 1of or1963. more municipalities or districts may establish a recreational authority.

A recreational authority is an authority THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 under section 6 of article IX of the state constitution of 1963.

A recreational authority under this act is a THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 local unit of government or public authority under section 1901 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1901.

THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 (iii) A public auditorium.

THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 (vii) A public historic farm.

(viii) IfA the territory of the authority is located only in a county with a population of less than 4,000, a public forest and natural resources area.

(3) The articles shall must be adopted and may be amended by THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 an affirmative vote of a majority of the members serving on the legislative body of each participating municipality.

The amendment of the articles is subject to the THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 voting requirements specified by the articles.

If the articles do not specify a voting requirement to amend the articles, the voting requirement to amend the articles is the same as the voting requirement to adopt the articles.

Sec.(7) Subject to this section, the articles of incorporation may include, but are not limited to, any of the following:

5a.

(1) Subject to this section and section 5, the articles may include, but are not limited to, any of the following:

THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 (b) If the authority's purpose includes the acquisition, construction, operation, maintenance, or improvement of a public THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 forest and natural resources area, a provision to allow or require the authority to make payments in lieu of taxes to 1 or more other governmental subdivisions or units of this state in which the public forest and natural resources area is located, including a participating municipality.

(e) If the board of the authority is elected, whether the THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 election of the board is partisan or nonpartisan.

(2) The amendment of the articles is subject to the voting requirements specified by the articles.

If the articles do not specify a voting requirement to amend the articles, the voting requirement to amend the articles is the same as the voting requirement to adopt the articles.

(3) This section applies only if the territory of an authority is located only in a county with a population of less than 4,000.

(1) A vacancy occurs on the board on the happening of THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 if any of the events set forth in section 3 of 1846 RS 15, MCL 201.3, occurs.

(4) The business that an authority may perform shall performs must be conducted at a public meeting of the authority held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 15.275.

(6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it considers THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 necessary.

9a.9.

IfAn the territory of the authority is located only in a county with a population of less than 4,000, an authority may do 1 or more of the following, as permitted by the authority's articles:

The property may include franchises, easements, or rights-of-wayrights of way on, under, or above any property.

The authority may pay for the property from, or pledge for the payment of the property, revenue THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 of the authority.

THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 (e) Assess and collect fees for use of and access to property that the authority owns or manages, and for services provided by and expenses incurred by the authority.

(k) Permit and manage sustainable natural resource commercial activities,activities including, but not limited to, both of the following:

(i) The development, management, and operation of sustainable THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 commercial forestry.

(l) Manage, maintain, and improve real and personal property inside or outside of the territory of the authority that is not owned by the authority.

(1) Except as otherwise provided in this section, if an authority dissolves, all property, funds, and assets of the THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 authority are vested in the participating municipality or municipalities.

If the participating municipality or municipalities do not agree to assume the authority's debts and liabilities, an authority must not dissolve unless the authority has repaid or settled all of the authority's debts and liabilities.

THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 (3) If property owned by an authority was designated by the authority as a public forest and natural resources area, the participating municipality or municipalities may elect to waive their right, in full or in part, to the property.

(5) Nothing in this act alters or supersedes any third-party rights, including rights of the state or federal government, in or THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 attached to the property owned by an authority.

(2) A ballot proposal for a tax shall must state the amount and duration of the millage and the purposes for which the millage THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 may be used.

(4) The proceeds of a tax levied under this section shall must THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 only be used by the authority for those purposes described in this section and shall must not be used by the authority for either of the following:

(1) An authority may borrow money and issue bonds or THS H01810'25 (S-1)_HB4694_APS_1 brgm38 1 notes to finance the acquisition, construction, and improvement of a public swimming pool, a public recreation center, a public auditorium, a public conference center, or a public park, or a public forest and natural resources area, including the acquisition of sites and the acquisition and installation of furnishings and equipment for these purposes.

THS H01810'25 * (H-1)_HB4694_APH_1 e8mnqt 1 (4) A tax levied to pay a bond or note obligation by a recreational authority under this act shall must not exceed 5 years without the approval of a majority of the electors in each of the participating municipalities of the authority.

4798.4798 (request no.