The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5290 April 11, 1978 MACKINAC ISLAND STATE PARK COMMISSION: Licensing of bicycles LICENSES AND PERMITS: Licensing of bicycles by Mackinac Island State Park Commission The Mackinac Island State Park Commission is authorized to license bicycles which may be used on park lands regardless of whether the bicycles are rented from shops located within the park or located within the city of Mackinac Island. In issuing licenses to operate a bicycle rental shop which rents bicycles to be used on park lands, the Mackinac Island State Park Commission may not refuse to renew a license solely on the basis that the licensee has relocated or plans to relocate its business activities to the area of the main street of the city of Mackinac Island. Sheldon B. Smith Chairman Mackinac Island State Park Commission Department of Natural Resources Mackinac Island, Michigan 49757 You have requested my opinion concerning the extent to which the Mackinac Island State Park Commission may exercise control of businesses which are licensed by the Commission to rent bicycles for use within the Mackinac Island State Park. Mackinac Island largely consists of the State Park, but portions of it are privately owned. The city of Mackinac Island is not located in the State Park. 1927 PA 355, Sec. 3, as amended; MCLA 318.63; MSA 13.973, grants authority to the Commission to control and manage the Mackinac Island State Park, to make and enforce necessary rules and regulations and to effect leases and fix prices for rentals or privileges upon the property of the park. Likewise, 1907 PA 22, Sec. 1, as amended; MCLA 318.91; MSA 13.1001, provides that: 'The board of commissioners of the Mackinac Island state park shall have authority to make, publish and enforce such reasonable rules and regulations for the care and preservation of the Mackinac Island state park, for the maintenance of good order, for the protection of property and for the welfare of said park, as shall from time to time be deemed necessary or expedient by said board.' 1907 PA 22, supra, Sec. 3, further states that: 'All rules and regulations made by said board under authority of this or any other act shall be effective within the whole territory covered by said park, and said board shall have the power and authority to prescribe and enforce rules and regulations relative to any part or portion thereof, notwithstanding any contrary or inconsistent ordinance, regulation or by-law of the city of Mackinac Island.' Pursuant to the above statutory authority, the Commission promulgated Rule 45a, being 1973 AACS, p. 6545, R 318.145a, which provides: '(1) The commission, upon receipt of proper application shall issue on or before June 10 of each year annual licenses for not more than 845 rental bicycles for use in Mackinac Island state park. '(2) Licenses are nontransferable and shall be surrendered to the issuing authority upon demand if any transfer is attempted or if ownership of the licensed business is changed or altered in any way. '(3) Prior to June 10 of each year, the commission shall establish the license fees and terms and conditions under which rental bicycles may be supplied for use in the state park. '(4) A person shall not provide a rental bicycle for use in the Mackinac Island state park without a valid license prominently affixed thereto.' At the present time most licensees conduct their operations at locations outside the State Park and certain several of these licensees wish to relocate their business to locations on or in close proximity to the main street of the city of Mackinac Island. It is indicated that such relocations will add considerably to the congestion of the main street of the city. You have, therefore, requested my opinion as to whether it is within the authority of the Commission to refuse to renew a bicycle license if the licensee changes the location of his business to one which, in the judgment of the commission, is not in the interests of public safety, even though that location is not within the boundaries of the State park. Michigan administrative agencies, including the Mackinac Island State Park Commission, have authority to adopt reasonable rules to exercise powers expressly granted and to effectuate the purposes of legislation. School Dist. 2 Fractional, Athens Twp., Calhoun County, Michigan v U.S., 229 F2d 681 (1956); Rodrigues v Dunn, 128 F Supp 604 (1955); Coffman v State Bd. of Examiners in Optometry, 331 Mich 582; 50 NW2d 322 (1951); Bateham v Michigan Public School Emp. Retirement Fund Bd., 333 Mich 264; 52 NW2d 693 (1952). The Commission's Rule 45a is clearly in the interest of efficiently exercising the Commission's express powers and the carrying out the purposes of 1927 PA 355, as amended, supra. However, a number of cases and prior opinions of this office are pertinent when considering the authority of the Commission to establish licensing terms and conditions which are for the purpose of alleviating congestion within the city of Mackinac Island. II OAG, 1955-1956, No. 2651, p. 423, 425 (July 23, 1956), considered an ordinance of the city of Mackinac Island in relation to its effect upon employees of the Mackinac Island State Park Commission and stated: 'There is no question that the village of Mackinac Island never had any right or jurisdiction over the territory of the national park, and it follows logically that the City of Mackinac Island, in the absence of express authority, has no right or jurisdiction over the territory that is the state park and its ordinances have no application to such territory. Act No. 437 of the L. A. of 1899, as amended, confers no express authority upon the City of Mackinac Island over the territory which is the state park. 'Sections 318.91 et seq., C.L. 1948; sections 13.1001 et seq. M.S.A., confer authority upon the board of park commissioners, and the section (318.93, C.L. 1948; 13.1003, M.S.A.) is quoted as follows: "All rules and regulations made by said board under authority of this and any other act shall be effective within the whole territory of the park, and the board shall have power and authority to prescribe rules and regulations relative to any part or portion thereof, notwithstanding any contrary or inconsistent ordinance or regulation or the city of Mackinac Island.' 'The aforesaid section affirms the authority of the board of park commissioners over the depth and breadth of the state park, and the power to act or not to act as it sees fit in furtherance of the welfare of the park. 'Therefore it is my opinion that the Ordinance 123 of the City of Mackinac Island has no application to a domestic servant of a lessee of the board of park commissioners who performs all of her work within the territory of the state park. '2. It must follow that the Ordinance No. 123 does not apply to the employees of the Mackinac Island State Park. Nor does it affect those employees of the state park who perform part of their labors outside of the park and within the territory of the municipality proper.' The foregoing opinion reflects the rule that the exercise of authority by the Commission and the city is restricted to respective territorial jurisdictions and must bear a reasonable relationship to powers expressly or by necessary implication granted to them. The operation of bicycle rental shops is a legitimate business and under the provisions of 1927 PA 355, supra, the Commission has authority to license bicycles which may be used on park lands regardless of whether bicycles are rented from shops located within the park or within the city of Mackinac Island. However, the application of Commission rules and standards to implement licensing, must, of necessity, be viewed within the context of the powers conferred by the legislature and its rules may not be applied in a manner which exceeds those powers. Sterling Secret Service, Inc. v Michigan Department of State Police, 20 Mich App 502 (1969); Howard Pore, Inc. v Nims, 322 Mich 49 (1948); Coffman v State Board of Examiners in Optometry, supra. Likewise, the Commissioner's rules must be uniform in operation and nondiscriminatory, 1969 PA 306, Sec. 32(2); MCLA 24.232; MSA 3.560(132). The creation of a licensing standard, under Rule 45a, which would provide for the renewal of licenses for those businesses now located on or near the main street of the city of Mackinac Island while at the same time denying renewal for those lawful businesses outside of park lands, which desire to relocate to that area, will give rise to serious question concerning the reasonableness and nondiscriminatory character of such a standard. Moreover, it appears that the purpose of such a standard would not be sufficiently related to the statutory duties of the Commission to manage, maintain good order and protect the property and welfare of park lands. The matter of congestion of the main street of the city of Mackinac Island is one which is within the jurisdictional authority of the city. Accordingly, it is my opinion that the Mackinac Island State Park Commission may not refuse to renew a bicycle license of a licensee, doing business outside of park lands, solely on the basis that the licensee has relocated or plans to relocate its business activities to the area of the main street of the city of Mackinac Island. Frank J. Kelley Attorney General