A Michigan state lawmaker representing Detroit introduced a bill that would establish a bond-issuing regional mass transit authority for his region.
Democratic Rep. Bert Johnson’s bill, introduced Dec. 18, would set up an authority to oversee a new bus and rail service that would run throughout Wayne, Oakland, and Macomb Counties as well as Detroit. The authority would have the ability to levy a tax, if approved by voters, and issue bonds to finance the system.
Under HB 5731, the authority could issue bonds that would be payable from the revenue of the transit system. The bill allows the authority to enter into interest-rate swaps and create a reserve fund.
The measure has been referred to the House Committee on Intergovernmental and Regional Affairs.
Detroit’s mayor, as well as the three counties’ executives and the governor, would appoint the members of the board, which would hire a chief executive officer to run the authority.
Legislative authority is needed for the city to obtain federal funding for the project.
