HB-5609, As Passed House, February 27, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5609

A bill to amend 1986 PA 281, entitled

"The local development financing act,"

by amending section 12a (MCL 125.2162a), as amended by 2004 PA 365.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 12a. (1) A municipality that has created an authority may

apply to the Michigan economic development corporation for

designation of all or a portion of the authority district as a

certified technology park and to enter into an agreement governing

the terms and conditions of the designation. The form of the

application shall be in a form specified by the Michigan economic

development corporation and shall include information the Michigan

economic development corporation determines necessary to make the

determinations required under this section.

(2) After receipt of an application, the Michigan economic

development corporation may designate, pursuant to an agreement

entered into under subsection (3), a certified technology park that

is determined by the Michigan economic development corporation to

satisfy 1 or more of the following criteria based on the

application:

(a) A demonstration of significant support from an institution

of higher education or a private research-based institute located

within the proximity of the proposed certified technology park, as

evidenced by, but not limited to, the following types of support:

(i) Grants of preferences for access to and commercialization

of intellectual property.

(ii) Access to laboratory and other facilities owned by or

under control of the institution of higher education or private

research-based institute.

(iii) Donations of services.

(iv) Access to telecommunication facilities and other

infrastructure.

(v) Financial commitments.

(vi) Access to faculty, staff, and students.

(vii) Opportunities for adjunct faculty and other types of

staff arrangements or affiliations.

(b) A demonstration of a significant commitment on behalf of

the institution of higher education or private research-based

institute to the commercialization of research produced at the

certified technology park, as evidenced by the intellectual

property and, if applicable, tenure policies that reward faculty

and staff for commercialization and collaboration with private

businesses.

park will be developed to take advantage of the unique

characteristics and specialties offered by the public and private

resources available in the area in which the proposed certified

technology park will be located.

(d) The existence of or proposed development of a business

incubator within the proposed certified technology park that

exhibits the following types of resources and organization:

(i) Significant financial and other types of support from the

public or private resources in the area in which the proposed

certified technology park will be located.

(ii) A business plan exhibiting the economic utilization and

availability of resources and a likelihood of successful

development of technologies and research into viable business

enterprises.

(iii) A commitment to the employment of a qualified full-time

manager to supervise the development and operation of the business

incubator.

(e) The existence of a business plan for the proposed

certified technology park that identifies its objectives in a

clearly focused and measurable fashion and that addresses the

following matters:

(i) A commitment to new business formation.

(ii) The clustering of businesses, technology, and research.

(iii) The opportunity for and costs of development of properties

under common ownership or control.

(iv) The availability of and method proposed for development of

infrastructure and other improvements, including telecommunications

technology, necessary for the development of the proposed certified

technology park.

(v) Assumptions of costs and revenues related to the

development of the proposed certified technology park.

(f) A demonstrable and satisfactory assurance that the

proposed certified technology park can be developed to principally

contain eligible property as defined by section 2(p)(iii) and (v).

(3) An authority and a municipality that incorporated the

authority may enter into an agreement with the Michigan economic

development corporation establishing the terms and conditions

governing the certified technology park. Upon designation of the

certified technology park pursuant to the terms of the agreement,

the subsequent failure of any party to comply with the terms of the

agreement shall not result in the termination or rescission of the

designation of the area as a certified technology park. The

agreement shall include, but is not limited to, the following

provisions:

(a) A description of the area to be included within the

certified technology park.

(b) Covenants and restrictions, if any, upon all or a portion

of the properties contained within the certified technology park

and terms of enforcement of any covenants or restrictions.

and of any owner or developer of property within the certified

technology park.

(d) The terms of any commitment required from an institution

of higher education or private research-based institute for support

of the operations and activities at eligible properties within the

certified technology park.

(e) The terms of enforcement of the agreement, which may

include the definition of events of default, cure periods, legal

and equitable remedies and rights, and penalties and damages,

actual or liquidated, upon the occurrence of an event of default.

(f) The public facilities to be developed for the certified

technology park.

(g) The costs approved for public facilities under section

2(aa).

(4) If the Michigan economic development corporation has

determined that a sale price or rental value at below market rate

will assist in increasing employment or private investment in the

certified technology park, the authority and municipality have

authority to determine the sale price or rental value for public

facilities owned or developed by the authority and municipality in

the certified technology park at below market rate.

(5) If public facilities developed pursuant to an agreement

entered into under this section are conveyed or leased at less than

fair market value or at below market rates, the terms of the

conveyance or lease shall include legal and equitable remedies and

rights to assure the public facilities are used as eligible

property. Legal and equitable remedies and rights may include

penalties and actual or liquidated damages.

(6) Except as otherwise provided in this ~~subsection~~ section,

an agreement designating a certified technology park may not be

made after December 31, 2002, but any agreement made on or before

December 31, 2002 may be amended after that date. However, the

Michigan economic development corporation may enter into an

agreement with a municipality after December 31, 2002 and on or

before December 31, 2005 if that municipality has adopted a

resolution of interest to create a certified technology park before

December 31, 2002.

(7) The Michigan economic development corporation shall market

the certified technology parks and the certified business parks.

The Michigan economic development corporation and an authority may

contract with each other or any third party for these marketing

services.

(8) Except as otherwise provided in ~~subsection~~ subsections (9)

and (10), the Michigan economic development corporation shall not

designate more than 10 certified technology parks. For purposes of

this subsection only, 2 certified technology parks located in a

county that contains a city with a population of more than 750,000,

shall be counted as 1 certified technology park. Not more than 7 of

the certified technology parks designated under this section may

not include a firm commitment from at least 1 business engaged in a

high technology activity creating a significant number of jobs.

(9) The Michigan economic development corporation may

designate an additional 5 certified technology parks after November

1, 2002 and before December 31, 2007. The Michigan economic

development corporation shall not accept applications for the

additional certified technology parks under this subsection until

after November 1, 2002.

(10) The Michigan economic development corporation may

designate an additional 3 certified technology parks after February

1, 2008 and before December 31, 2009. The Michigan economic

development corporation shall not accept applications for the

additional certified technology parks under this subsection until

after February 1, 2008.

(11) ~~(10)~~ The Michigan economic development corporation shall

give priority to applications that include new business activity.

(12) ~~(11)~~ For an authority established by 2 or more

municipalities under sections 3(2) and 4(7), each municipality in

which the authority district is located by a majority vote of the

members of its governing body may make a limited tax pledge to

support the authority's tax increment bonds issued under section 14

or, if authorized by the voters of the municipality, may pledge its

full faith and credit for the payment of the principal of and

interest on the bonds. The municipalities that have made a pledge

to support the authority's tax increment bonds may approve by

resolution an agreement among themselves establishing obligations

each may have to the other party or parties to the agreement for

reimbursement of all or any portion of a payment made by a

municipality related to its pledge to support the authority's tax

increment bonds.

(13) ~~(12)~~ Not including certified technology parks designated

under subsection (8), but for certified technology parks designated

under ~~subsection~~ subsections (9) and (10) only, this state shall do

all of the following:

(a) Reimburse intermediate school districts each year for all

tax revenue lost that was captured by an authority for a certified

technology park designated by the Michigan economic development

corporation after ~~the effective date of the amendatory act that~~

~~added this subdivision~~ October 3, 2002.

(b) Reimburse local school districts each year for all tax

revenue lost that was captured by an authority for a certified

technology park designated by the Michigan economic development

corporation after ~~the effective date of the amendatory act that~~

~~added this subdivision~~ October 3, 2002.

appropriated in section 11 of the state school aid act of 1979,

1979 PA 94, MCL 388.1611, for an amount equal to the reimbursement

calculations under subdivisions (a) and (b) and for all revenue

lost that was captured by an authority for a certified technology

park designated by the Michigan economic development corporation

after ~~the effective date of the amendatory act that added this~~

~~subdivision~~ October 3, 2002. Foundation allowances calculated under

section 20 of the state school aid act of 1979, 1979 PA 94, MCL

388.1620, shall not be reduced as a result of tax revenue lost that

was captured by an authority for a certified technology park

designated by the Michigan economic development corporation under

subsection (9) or (10) after ~~the effective date of the amendatory~~

~~act that added this subdivision~~ October 3, 2002.