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HB-5456, As Passed House, February 7, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5456

A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending sections 3, 6, and 8 (MCL 125.2683, 125.2686, and

125.2688), section 3 as amended by 2005 PA 275, section 6 as

amended by 2004 PA 430, and section 8 as amended by 2003 PA 266,

and by adding section 8e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. As used in this act:

(a) "Agricultural processing facility" means 1 or more

facilities or operations that transform, package, sort, or grade

livestock or livestock products, agricultural commodities, or

plants or plant products into goods that are used for intermediate

or final consumption including goods for nonfood use, and

House Bill No. 5456 (H-2) as amended February 7, 2006

surrounding property.

(b) "Board" means the state administrative board created in

1921 PA 2, MCL 17.1 to 17.3.

criteria in section 7 and includes all of the following:

(i) A map of the proposed renaissance zone that indicates the

geographic boundaries, the total area, and the present use and

conditions generally of the land and structures within those

boundaries.

(ii) Evidence of community support and commitment from

residential and business interests.

(iii) A description of the methods proposed to increase economic

opportunity and expansion, facilitate infrastructure improvement,

and identify job training opportunities.

(iv) Current social, economic, and demographic characteristics

of the proposed renaissance zone and anticipated improvements in

education, health, human services, public safety, and employment if

the renaissance zone is created.

(v) Any other information required by the board.

(d) "Elected county executive" means the elected county

executive in a county organized under 1966 PA 293, MCL 45.501 to

45.521, or 1973 PA 139, MCL 45.551 to 45.573.

(e) "Forest products processing facility" means 1 or more

facilities or operations that harvest, transform, package, sort,

recycle, or grade forest products into goods that are used for

intermediate or final use or consumption [OR FOR THE CREATION OF BIOMASS

OR ALTERNATIVE FUELS THROUGH THE UTILIZATION OF FOREST PRODUCTS OR FOREST RESIDUE], and surrounding property.

Forest products processing facility does not include an existing

facility or operation that is located in this state that relocates

to a renaissance zone for a forest products processing facility.

(f) ~~(e)~~ "Local governmental unit" means a county, city,

village, or township.

(g) ~~(f)~~ "Person" means an individual, partnership,

corporation, association, limited liability company, governmental

entity, or other legal entity.

(h) ~~(g)~~ "Qualified local governmental unit" means either of

the following:

(i) A county.

(ii) A city, village, or township that contains an eligible

distressed area as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

(i) ~~(h)~~ "Recovery zone" means a tool and die renaissance

recovery zone created in section 8d.

(j) ~~(i)~~ "Renaissance zone" means a geographic area

designated under this act.

(k) ~~(j)~~ "Residential rental property" means that term as

defined in section 7ff of the general property tax act, 1893 PA

206, MCL 211.7ff.

(l) ~~(k)~~ "Review board" means the renaissance zone review

board created in section 5.

(m) (l) "Rural area" means an area that lies outside of the

boundaries of an urban area.

(n) ~~(m)~~ "Urban area" means an urbanized area as determined

by the economics and statistics administration, United States

bureau of the census according to the 1990 census.

Sec. 6. (1) The board shall review all recommendations

submitted by the review board and determine which applications meet

the criteria contained in section 7.

(2) The board shall do all of the following:

(a) Designate renaissance zones.

(b) Subject to subsection (3), approve or reject the duration

of renaissance zone status.

geographic boundaries and the total area of the renaissance zone as

submitted in the application.

(3) The board shall not alter the geographic boundaries of the

renaissance zone or the duration of renaissance zone status

described in the application unless the qualified local

governmental unit or units and the local governmental unit or units

in which the renaissance zone is to be located consent by

resolution to the alteration.

(4) The board shall not designate a renaissance zone under

section 8 before November 1, 1996 or after December 31, 1996.

(5) The designation of a renaissance zone under this act shall

take effect on January 1 in the year following designation.

However, for purposes of the taxes exempted under section 9(2), the

designation of a renaissance zone under this act shall take effect

on December 31 in the year of designation.

(6) The board shall not designate a renaissance zone under

section 8a after December 31, 2002.

(7) Through December 31, 2002, a qualified local governmental

unit in which a renaissance zone was designated under section 8 or

8a may modify the boundaries of that renaissance zone to include

contiguous parcels of property as determined by the qualified local

governmental unit and approval by the review board. The additional

contiguous parcels of property included in a renaissance zone under

this subsection do not constitute an additional distinct geographic

area under section 4(1)(d). If the boundaries of the renaissance

zone are modified as provided in this subsection, the additional

contiguous parcels of property shall become part of the original

renaissance zone on the same terms and conditions as the original

designation of that renaissance zone.

(8) Notwithstanding any other provisions of this act, before

July 1, 2004, a qualified local governmental unit in which a

renaissance zone was designated under section 8a(1) as a

renaissance zone located in a rural area may modify the boundaries

of that renaissance zone to include a contiguous parcel of property

as determined by the qualified local governmental unit. The

contiguous parcel of property shall only include property that is

less than .5 acres in size and that the qualified local

governmental unit previously sought to have included in the zone by

submitting an application in February 2002 that was not acted upon

by the review board. The additional contiguous parcel of property

included in a renaissance zone under this subsection does not

constitute an additional distinct geographic area under section

4(1)(d). If the boundaries of the renaissance zone are modified as

provided in this subsection, the additional contiguous parcel of

property shall become part of the original renaissance zone on the

same terms and conditions as the rest of the property in that

renaissance zone.

(9) A business that is located and conducts business activity

within a renaissance zone designated under section 8(1) and (2),

8a(1) and (3), 8c(1), or 8d(1), or 8e shall not make a payment in

lieu of taxes to any taxing jurisdiction within the qualified local

governmental unit in which the renaissance zone is located.

Sec. 8. (1) Except as provided in subsection (2), section 8a,

section 8c, ~~and~~ section 8d, and section 8e, the board shall not

designate more than 9 renaissance zones within this state. Not more

than 6 of the renaissance zones shall be located in urban areas and

not more than 4 of the renaissance zones shall be located in rural

areas. For purposes of determining whether a renaissance zone is

located in an urban area or rural area under this section, if any

part of a renaissance zone is located within an urban area, the

entire renaissance zone shall be considered to be located in an

urban area.

(2) The board may designate additional renaissance zones

within this state in 1 or more qualified local governmental units

if that qualified local governmental unit or units contain a

military installation that was operated by the United States

department of defense and has closed after 1990.

(3) Each renaissance zone designated by the board under

section 8a shall be submitted to the legislature, which, by

concurrent resolution adopted by a majority vote of those elected

to and serving in each house, on a record roll call vote, may

reject that designation no later than the earlier of 45 days

following the date of the designation by the board or December 31

of the year of designation.

Sec. 8e. (1) The board, upon recommendation of the board of

the Michigan strategic fund defined in section 4 of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2004, may designate not

more than 20 additional renaissance zones for forest products

processing facilities within this state in 1 or more cities,

villages, or townships if that city, village, or township or

combination of cities, villages, or townships consents to the

creation of a renaissance zone for a forest products processing

facility within their boundaries. The board shall designate not

more than 5 renaissance zones for a forest products processing

facility each year until the maximum number of renaissance zones

for a forest products processing facility is met.

(2) Each renaissance zone designated for a forest products

processing facility under this section shall be 1 continuous

distinct geographic area.

(3) The board may revoke the designation of all or a portion

of a renaissance zone for a forest products processing facility if

the board determines that the forest products processing facility

fails to commence operation or ceases operation in a renaissance

zone designated under this section.