HOUSE BILL No. 5456

 

November 29, 2005, Introduced by Reps. Walker, Schuitmaker, Stahl, Robertson, Booher, Emmons, Huizenga, Elsenheimer and Taub and referred to the Committee on Conservation, Forestry, and Outdoor Recreation.

 

     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 2000 PA 259, 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


 

surrounding property.

 

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

 

1921 PA 2, MCL 17.1 to 17.3.

 

     (c) "Development plan" means a written plan that addresses the

 

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, or

 

grade forest products into goods that are used for intermediate or

 

final use or consumption, and surrounding property.

 

     (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)  "Renaissance zone" means a geographic area

 

designated under this act.

 

     (j)  (i)  "Residential rental property" means that term as

 

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

 

206, MCL 211.7ff.

 

     (k)  (j)  "Review board" means the renaissance zone review

 

board created in section 5.

 

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

 

boundaries of an urban area.

 

     (m)  (l)  "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.

 

     (c) Subject to subsection (3), approve or reject the

 

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.