HB 5100 — Economic development: other; regional convention facility authority board requirements; modify. Amends sec. 11 of 2008 PA 554 (MCL 141.1361).

SUBSTITUTE FOR HOUSE BILL NO.

5100 OctoberA 21,bill 2025,to Introducedamend 2008 PA 554, entitled "Regional convention facility authority act," by Reps.amending section 11 (MCL 141.1361), as amended by 2009 PA 63.

Aragona and T.

Carter and referred to Committee on Economic Competitiveness.

A bill to amend 2008 PA 554, entitled "Regional convention facility authority act," by amending section 11 (MCL 141.1361), as amended by 2009 PA 63.

(1) Within not more Not later than 30 days following after appointment of the members of a board, the board shall hold its first meeting at a date and time determined by the individual appointed under section 9(1)(a).

The board members shall elect from among the board members an individual to serve as chairperson of the board and may elect other officers as the board considers ERE H02802'25_HB5100_INTR_1 mdj8ro 1 necessary.

All actions of the board under this act shall require the unanimous consent of all serving members of the board, excluding any members prohibited from voting on an action due to a conflict of interest under section 15.at least 4 of the 5 serving members of the board.

, excluding ERE H02802'25 (H-3) ys8z46 1 any members prohibited from voting on an action due to a conflict of interest under section 15.A vote in favor of an action of the board by an alternate acting under subsection (13) is considered the consent of a serving member for purposes of this subsection.

The board shall ERE H02802'25_HB5100_INTR_1 mdj8ro 1 obtain an annual audit of the authority by an independent certified public accountant and report on the audit and auditing procedures ERE H02802'25 (H-3) ys8z46 1 in the manner provided by sections 6 to 13 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.426 to 141.433.

The audit also shall must be in accordance with generally accepted government auditing standards and shall must satisfy federal regulations relating to federal grant compliance audit requirements.

(6) AThe board shallshall, provideby forresolution, theestablish purchaseand of,maintain thea contractingreserve for,fund andfor theany providingpurposes ofauthorized supplies,by materials,law, services,including insurance,to utilities,address third-partyprior financing,fiscal equipment,year printing,shortfalls andin alldistributions otherunder itemssection as10(2) neededof by the authoritystate toconvention efficientlyfacility anddevelopment effectivelyact, meet1985 thePA needs106, ofMCL 207.630, in the authorityorder usingof competitivepriority procurementset methodsforth toin securesection 10(2) of the beststate valueconvention forfacility thedevelopment authority.act, 1985 PA 106, MCL 207.630.

The reserve fund may be funded from distributions to the authority from the convention facility development fund created in section 8 of the state convention facility development act, 1985 PA 106, MCL 207.628, and from any other revenues of the authority permitted by law.

The reserve fund shall be separate from ERE H02802'25 (H-3) ys8z46 1 and shall not be pledged as, or constitute, any debt service reserve fund established under an indenture or other agreement for authority indebtedness, and shall not be maintained in a manner that conflicts with the authority's covenants or obligations related to such indebtedness.

The board shall designate an investment fiduciary for the reserve fund and adopt an investment policy for the reserve fund consistent with subsection (5).

(7) (6) A board shall provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third-party financing, equipment, printing, and all other items as needed by the authority to efficiently and effectively meet the needs of the authority using competitive procurement methods to secure the best value for the authority.

A board shall provide for the acquisition of ERE H02802'25_HB5100_INTR_1 mdj8ro 1 professional services, including, but not limited to, architectural services, engineering services, surveying services, accounting services, services related to the issuance of bonds, and legal services, in accordance with a competitive, qualifications-based selection process and procedure for the type of professional service required by the authority.

An authority may enter into lease purchases or installment purchases for periods not exceeding ERE H02802'25 (H-3) ys8z46 1 the anticipated useful life of the items purchased unless otherwise prohibited by law.

(a) Procurement of goods or services is necessary for the imminent protection of public health or safety or to mitigate an imminent threat to public health or safety, as determined by the ERE H02802'25_HB5100_INTR_1 mdj8ro 1 authority or its chief executive officer.

(e) (f) Procurement of goods or services is under a ERE H02802'25 (H-3) ys8z46 1 cooperative purchasing agreement with the federal government, this state, or more public entities for the purchase of goods and services necessary at fair and reasonable prices using a competitive procurement method for authority operations.

(8) (7) A board may not enter into any cost plus construction contract unless all of the following apply:

ERE H02802'25_HB5100_INTR_1 mdj8ro 1 (c) The repair or construction is necessary to protect life or property.

(9) (8) The board shall adopt a procurement policy consistent with the requirements of this act and federal and state laws relating to procurement.

The board shall adopt a policy to ERE H02802'25 (H-3) ys8z46 1 govern the control, supervision, management, and oversight of each contract to which the authority is a party.

A board for an authority shall ERE H02802'25_HB5100_INTR_1 mdj8ro 1 establish policies to ensure that the authority does not enter into a procurement or employment contract with a person who has been convicted of a criminal offense, or held liable in a civil proceeding, that negatively reflects on the person's business integrity, based on a finding of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or violation of state or federal antitrust statutes, or similar laws.

As used in this subsection, if a person is a business entity, person includes affiliates, subsidiaries, officers, directors, managerial ERE H02802'25 (H-3) ys8z46 1 employees, and any person who, directly or indirectly, holds a pecuniary interest in that business entity of 20% or more.

(10) (9) A board may employ personnel as the board considers necessary to assist the board in performing the power, duties, and jurisdictions of the authority, including, but not limited to, employment of a chief executive officer as authorized under section 13.

ERE(11) H02802'25_HB5100_INTR_1 mdj8ro 1 (10) A board shall establish policies to assure that the board and the authority shall do not do either of the following:

(b) Limit, segregate, or classify an employee, a contractor, or applicant for employment or a contract in a way that deprives or tends to deprive the employee, contractor, or applicant of an ERE H02802'25 (H-3) ys8z46 1 employment opportunity or otherwise adversely affects the status of an employee, contractor, or applicant because of religion, race, color, national origin, age, sex, sexual orientation, height, weight, marital status, partisan considerations, or a disability or genetic information that is unrelated to the person's ability to perform the duties of a particular job or position.

(12) (11) Not less than 60 days after the transfer date, an authority shall establish a citizens advisory council to provide public input and advise the board on the impact of redevelopment and management of a qualified convention facility upon the qualified city and each county within the qualified metropolitan area.

The advisory council shall consist of 8 members, including 1 resident of the qualified city appointed by the local chief executive officer of the qualified city, 1 resident of the qualified city appointed by the legislative body of the qualified city, 1 county resident appointed as a council member by each local ERE H02802'25_HB5100_INTR_1 mdj8ro 1 chief executive officer for each county within the qualified metropolitan area, and 1 county resident appointed as a council member by the legislative body for each county within the qualified metropolitan area.

Public notice of the time, date, and place of the meeting shall must be given in the manner required by the open ERE H02802'25 (H-3) ys8z46 1 meetings act, 1976 PA 267, MCL 15.261 to 15.275.

The advisory council may request and shall must receive from the authority information and technical assistance relating to the development and management of the ERE H02802'25_HB5100_INTR_1 mdj8ro qualified convention facility.

Final(13) PageThe EREappointing H02802'25_HB5100_INTR_1authority mdj8rofor a board member described in section 9(1) may appoint an alternate for that board member in the same manner as the appointment of the board member.

An alternate may serve as a member of the board in the absence of the board member if the board member will be unable to attend 1 or more meetings or for the purpose of reaching a decision on a matter on ERE H02802'25 (H-3) ys8z46 which the board member is prohibited from voting due to a conflict of interest under section 15.

An alternate serving under this subsection has the same powers, duties, and protections as the board member for whom the alternate is serving and shall serve only for the period of the absence or disqualification.

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