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Act No. 12
Public Acts of 2026
Approved by the Governor
May 14, 2026
Filed with the Secretary of State
May 14, 2026
EFFECTIVE DATE: May 14, 2026
STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2026
Introduced by Rep. Markkanen
ENROLLED HOUSE BILL No. 4694
AN ACT to amend 2000 PA 321, entitled “An act to provide for the establishment of recreational authorities;
to provide powers and duties of an authority; to authorize the assessment of a fee, the levy of a property tax, and
the issuance of bonds and notes by an authority; and to provide for the powers and duties of certain government
officials,” by amending sections 5, 7, 11, and 21 (MCL 123.1135, 123.1137, 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 sections 5a, 9a ,
and 10.
The People of the State of Michigan enact:
Sec. 5. (1) Except as otherwise provided in this section, 2 or more municipalities or districts may establish a
recreational authority. If the municipality, municipalities, district, or districts are located in a county with a
population of less than 4,000 , 1 or more municipalities or districts may establish a recreational authority. A
recreational authority is an authority under section 6 of article IX of the state constitution of 1963. A recreational
authority under this act constitutes a governmental sub division or unit of this state and a public body corporate
and politic. A recreational authority under this act is a local unit of government or public authority under
section 1901 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1901.
(2) To initiate the establishment of an authority, articles of incorporation must be prepared. The articles of
incorporation must include all of the following:
(a) The name of the authority.
(b) The names of the participating municipality or municipalities.
(c) A description of the territory of the authority.
(d) The size of the board of the authority, which must be comprised of an odd number of members; the
qualifications, method of selection, and terms of office of board members; and the filling of vacancies in the office
of board member. If board members are elected in at-large elections by the qualified and registered electors of the
participating municipality or municipalities, voting collectively, the election of board members must be conducted
under the same procedures that govern an election for a tax under sections 13 to 17.
(e) The purposes for which the authority is established. Permissible purposes include the acquisition,
construction, operation, maintenance, or improvement of 1 or more of the following:
(i) A public swimming pool.
(ii) A public recreation center.
(iii) A public auditorium.
(iv) A public conference center.
(v) A public park.
(vi) A public museum.
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(vii) A public historic farm.
(viii) If 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.
(f) The procedure and requirements for a municipality or district to become a participating municipality in,
and for a participating municipality to withdraw from, an existing authority or to join in the original formation of
an authority. For a municipality o r district to become a participating municipality in an existing authority or to
join in the original formation of an authority, a majority of the electors of the municipality or district proposed to
be included in the territory of the authority and voting on the question shall approve a tax that the authority has
been authorized to levy by a vote of the electors of the authority under section 11. A municipality or district shall
not withdraw from an authority during the period for which the authority h as been authorized to levy a tax by
the electors of the authority.
(g) Any other matters considered advisable.
(h) If the authority’s purpose includes the acquisition, construction, operation, maintenance, or improvement
of a public forest and natural resources area, the process by which the authority designates property the authority
owns as a public forest and natural resources area.
(3) The articles must be adopted by an affirmative vote of a majority of the members serving on the legislative
body of each participating municipality. If a participating municipality is a district, the articles must be adopted
by an affirmative vote of a majority of the members serving on the legislative body of the entire municipality.
Unless the articles provide otherwise, the requirements of this subsection do not apply to an amendment to the
articles to allow a municipality or district to become a par ticipating municipality in, or to allow a participating
municipality to withdraw from, an existing authority.
(4) Before the articles or amendments to the articles are adopted, the articles or amendments to the articles
must be published not less than once in a newspaper generally circulated within the participating municipality
or municipalities. The adoption of articles or amendments to the articles by a municipality or district must be
evidenced by an endorsement on the articles or amendments by the clerk of the municipality.
(5) After adoption of the articles or amendments to the articles by each participating municipality, a printed
copy of the articles or the amended articles must be filed with the secretary of state by the clerk of the last
participating municipality to adopt the articles or amendments.
(6) The authority ’s articles of incorporation, or amendments to the articles, take effect on filing with the
secretary of state.
Sec. 5a. (1) Subject to this section and section 5, the articles may include, but are not limited to, any of the
following:
(a) Restrictions on the authority’s activities, including, but not limited to, the sale of the authority ’s assets or
property.
(b) If the authority’s purpose includes the acquisition, construction, operation, maintenance, or improvement
of a public 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 subdivis ions or units of this state in which the public forest and
natural resources area is located, including a participating municipality. The authority shall distribute the
payments to the various taxing units based on the portion of the public forest and natu ral resources area each
taxing unit is in and each taxing unit ’s millage rate, excluding millage levied under section 1211 of the revised
school code, 1976 PA 451, MCL 380.1211.
(c) If the authority has more than 1 participating municipality, the allocation of the authority ’s property,
assets, and funds among the municipalities on the dissolution of the authority.
(d) If the authority’s purpose includes the acquisition, construction, operation, maintenance, or improvement
of a public forest and natural resources area, 1 or more of the following:
(i) One or more restrictions or limitations on the use of a public forest and natural resources area or portions
of a public forest and natural resources area. The use restrictions or limitations may prohibit 1 or more of the
uses permitted in a public forest and natural resources area under section 3(j).
(ii) A process by which 1 or more restrictions or limitations on the use of a public forest and natural resources
area or portions of a public forest and natural resources area are established by the authority, and the amendment
or removal of the restrictions or limitations.
(e) If the board of the authority is elected, whether the 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.
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Sec. 7. (1) A vacancy occurs on the board if any of the events set forth in section 3 of 1846 RS 15, MCL 201.3,
occurs. Appointed members of the board, if any, may be removed by the appointing authority for good cause after
a public hearing. Vacancies must be filled in the same manner as the original appointment, or as otherwise
provided in the articles, for the unexpired term.
(2) A majority of the members of the board constitutes a quorum for the purpose of conducting business and
exercising the powers of an authority. Official action may be taken by an authority on the vote of a majority of the
board members present, unless the authority adopts bylaws requiring a larger number.
(3) A member of the board may receive compensation for services as a member of the board if approved in the
articles and is entitled to reimbursement for reasonable expenses, including expenses for travel previously
authorized by the board, incurred in the discharge of the board member’s duties.
(4) The business that an authority 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 15.275. Public notice of the time, date, and
place of the meeting must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261
to 15.275.
(5) A writing prepared, owned, or used by an authority in the performance of an official function must be made
available in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(6) At its first meeting, a board shall elect a chairperson, a secretary, a treasurer, and any other officers it
considers necessary. A board shall meet at least quarterly.
(7) A board may adopt bylaws to govern its procedures.
(8) A board may establish 1 or more committees to provide advice on specific issues relevant to the authority.
The board may determine the qualifications required to serve on a committee created under this subsection.
Members of a committee created by a board under this subsection serve at the pleasure of the board. Committees
created under this subsection may create volunteer subcommittees that do not serve at the pleasure of the board.
Sec. 9a. If 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:
(a) Acquire and hold, by purchase, lease with or without option to purchase, grant, gift, devise, land contract,
installment purchase contract, bequest, or other legal means, real and personal property inside or outside the
territory of the authority. The property may include franchises, easements, or rights -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 of
the authority. The authority may acquire land from this state, including, but not limited to, land from any
department, subdivision, or unit of this state.
(b) Apply for and accept grants or contributions from individuals, the federal government or any of its agencies,
this state, a municipality, or other public or private agencies to be used for any of the purposes of the authority.
(c) Hire full-time or part-time employees and retain professional services.
(d) Provide for the maintenance of all of the real and personal property of the authority.
(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.
(f) Receive revenue as appropriated by the legislature of this state or a participating municipality or distribute
funds of the authority to any participating municipality.
(g) Enter into contracts incidental to or necessary for the accomplishment of the purposes of the authority.
(h) Sell, lease, license, or develop real and personal property held by the authority.
(i) Establish an endowment fund or other type of supporting fund to support the purposes of the authority.
(j) Subject to applicable laws and contractual obligations of the authority, make and enforce rules for the use
of property the authority owns, operates, or manages.
(k) Permit and manage sustainable natural resource commercial activities, including, but not limited to, both
of the following:
(i) The development, management, and operation of sustainable commercial forestry.
(ii) The sale of carbon or other environmental credits or tax attributes.
(l) Manage, maintain, and improve real and personal property inside or outside the territory of the authority
that is not owned by the authority.
(m) Develop, construct, repair, and replace improvements to property, including buildings.
(n) Sue or be sued in any court of this state.
Sec. 10. (1) Except as otherwise provided in this section, if an authority dissolves, all property, funds, and
assets of the authority are vested in the participating municipality or municipalities. Except as otherwise provided
in the articles of an authority, if an authority dissolves, the debts or liabilities of an authority do not become the
debts or liabilities of the participating municipality or municipalities unless the participating municipality or
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municipalities have agreed to assume those debts or liabilities. 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.
(2) If the property owned by an authority was designated by the authority as a public forest and natural
resources area, on dissolution of the authority, the designated use of the property must be continued. If the
designated use of the property is not con tinued by the participating municipality or municipalities, the property
must revert to this state. The reversionary interest under this subsection is in addition to, and does not alter or
supersede, any other reversionary interest the state may hold in the property.
(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. If the participating municipality or municipalities waive their right, in full or in part, to the property,
the property or portion of the property reverts to this state.
(4) If an authority was in existence before the effective date of the amendatory act that added this subsection
and the authority’s articles address the disposition of the authority ’s property, funds, and assets on dissolution,
the articles control the disposition of the property, funds, and assets on dissolution.
(5) Nothing in this act alters or supersedes any third -party rights, including rights of the state or federal
government, in or attached to the property owned by an authority.
Sec. 11. (1) An authority may levy a tax of not more than 1 mill for a period of not more than 20 years on all of
the taxable property within the territory of the authority for the purposes of acquiring, constructing, operating,
maintaining, and improving a public swimming pool, public recreation center, public auditorium or conference
center, public park, or public forest and natural resources area. The authority may levy the tax only on the
approval of a majority of the electors in each of the participating municipalities of the authority voting on the tax
on November 6, 2001 or, thereafter, at a statewide general or primary election. The proposal for a tax must be
submitted to a vote of the electors of the authority by resolution of the board.
(2) A ballot proposal for a tax must state the amount and duration of the millage and the purposes for which
the millage may be used. A proposal for a tax must not be placed on the ballot unless the proposal is adopted by
a resolution of the board and certified by the board not later than 60 days before the election to the county clerk
of each county in which all or part of the territory of the authority is located for inclusion on the ballot. The
proposal must be certified for inclusion on the ballot at th e next eligible election, as specified by the board ’s
resolution.
(3) If a majority of the electors in each of the participating municipalities of the authority voting on the question
of a tax approve the proposal as provided under subsection (1), the tax levy is authorized. Not more than 2 elections
may be held in a calendar year on a proposal for a tax authorized under this act.
(4) The proceeds of a tax levied under this section must only be used by the authority for those purposes
described in this section and must not be used by the authority for either of the following:
(a) Except as otherwise provided in subsection (5), any general fund purposes by any participating
municipality.
(b) Any school operating purposes, as that term is defined in section 20 of the state school aid act of 1979, 1979
PA 94, MCL 388.1620, by any participating municipality that is a school district.
(5) The proceeds of a tax levied under this section may be used for general fund purposes by a participating
municipality if the proceeds used are directly related to managing the operation of the business of the authority
pursuant to a contract between the authority and that participating municipality.
Sec. 21. (1) An authority may borrow money and issue bonds or notes to finance the acquisition, construction,
and improvement of a public swimming pool, a public recreation center, a public auditorium, a public conference
center, 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.
(2) An authority shall not borrow money or issue bonds or notes for a sum that, together with the total
outstanding bonded indebtedness of the authority, exceeds 2 mills of the taxable value of the taxable property
within the district as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(3) Bonds or notes issued by an authority are a debt of the authority and not of the participating municipalities.
(4) A tax levied to pay a bond or note obligation by a recreational authority under this act must not exceed
5 years without the approval of a majority of the electors in each of the participating municipalities of the
authority.
(5) All bonds or notes issued by a recreational authority under this act are subject to the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
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Enacting section 1. This amendatory act does not take effect unless all of the following bills of the
103rd Legislature are enacted into law:
(a) House Bill No. 4798.
(b) House Bill No. 4695.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor