SB-0534, As Passed House, December 11, 2007

SUBSTITUTE FOR

SENATE BILL NO. 534

     A bill to amend 1996 PA 381, entitled

"Brownfield redevelopment financing act,"

by amending section 2 (MCL 125.2652), as amended by 2006 PA 32.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Additional response activities" means response activities

identified as part of a brownfield plan that are in addition to

baseline environmental assessment activities and due care

activities for an eligible property.

     (b) "Authority" means a brownfield redevelopment authority

created under this act.

     (c) "Baseline environmental assessment" means that term as

defined in section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (d) "Baseline environmental assessment activities" means those

response activities identified as part of a brownfield plan that

are necessary to complete a baseline environmental assessment for

an eligible property in the brownfield plan.

     (e) "Blighted" means property that meets any of the following

criteria as determined by the governing body:

     (i) Has been declared a public nuisance in accordance with a

local housing, building, plumbing, fire, or other related code or

ordinance.

     (ii) Is an attractive nuisance to children because of physical

condition, use, or occupancy.

     (iii) Is a fire hazard or is otherwise dangerous to the safety

of persons or property.

     (iv) Has had the utilities, plumbing, heating, or sewerage

permanently disconnected, destroyed, removed, or rendered

ineffective so that the property is unfit for its intended use.

     (v) Is tax reverted property owned by a qualified local

governmental unit, by a county, or by this state. The sale, lease,

or transfer of tax reverted property by a qualified local

governmental unit, county, or this state after the property's

inclusion in a brownfield plan shall not result in the loss to the

property of the status as blighted property for purposes of this

act.

     (vi) Is property owned or under the control of a land bank fast

track authority under the land bank fast track act, whether or not

located within a qualified local governmental unit. Property

included within a brownfield plan prior to the date it meets the

requirements of this subdivision to be eligible property shall be

considered to become eligible property as of the date the property

is determined to have been or becomes qualified as, or is combined

with, other eligible property. The sale, lease, or transfer of the

property by a land bank fast track authority after the property's

inclusion in a brownfield plan shall not result in the loss to the

property of the status as blighted property for purposes of this

act.

     (vii) Has substantial subsurface demolition debris buried on

site so that the property is unfit for its intended use.

     (f) "Board" means the governing body of an authority.

     (g) "Brownfield plan" means a plan that meets the requirements

of section 13 and is adopted under section 14.

     (h) "Captured taxable value" means the amount in 1 year by

which the current taxable value of an eligible property subject to

a brownfield plan, including the taxable value or assessed value,

as appropriate, of the property for which specific taxes are paid

in lieu of property taxes, exceeds the initial taxable value of

that eligible property. The state tax commission shall prescribe

the method for calculating captured taxable value.

     (i) "Chief executive officer" means the mayor of a city, the

village manager of a village, the township supervisor of a

township, or the county executive of a county or, if the county

does not have an elected county executive, the chairperson of the

county board of commissioners.

     (j) "Department" means the department of environmental

quality.

     (k) "Due care activities" means those response activities

identified as part of a brownfield plan that are necessary to allow

the owner or operator of an eligible property in the plan to comply

with the requirements of section 20107a of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.20107a.

     (l) "Economic opportunity zone" means 1 or more parcels of

property that meet all of the following:

     (i) That together are 40 or more acres in size.

     (ii) That contain a manufacturing facility that consists of

500,000 or more square feet.

     (iii) That are located in a municipality that has a population

of 30,000 or less and that is contiguous to a qualified local

governmental unit.

     (m) "Eligible activities" or "eligible activity" does not

include activities related to multisource commercial hazardous

waste disposal wells as that term is defined in section 62506a of

the natural resources and environmental protection act, 1994 PA

451, MCL 324.62506a, but means 1 or more of the following:

     (i) Baseline environmental assessment activities.

     (ii) Due care activities.

     (iii) Additional response activities.

     (iv) For eligible activities on eligible property that was used

or is currently used for commercial, industrial, or residential

purposes that is in a qualified local governmental unit, that is

owned or under the control of a land bank fast track authority, or

that is located in an economic opportunity zone, and is a facility,

functionally obsolete, or blighted, and except for purposes of

former section 38d of the single business tax act, 1975 PA 228, MCL

208.38d, the following additional activities:

     (A) Infrastructure improvements that directly benefit eligible

property.

     (B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (C) Lead or asbestos abatement.

     (D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

     (E) Assistance to a land bank fast track authority in clearing

or quieting title to, or selling or otherwise conveying, property

owned or under the control of a land bank fast track authority or

the acquisition of property by the land bank fast track authority

if the acquisition of the property is for economic development

purposes.

     (v) Relocation of public buildings or operations for economic

development purposes. with prior approval of the Michigan economic

development authority.

     (vi) For eligible activities on eligible property that is a

qualified facility that is not located in a qualified local

governmental unit and that is a facility, functionally obsolete, or

blighted, the following additional activities:

     (A) Infrastructure improvements that directly benefit eligible

property.

     (B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (C) Lead or asbestos abatement.

     (D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

     (vii) For eligible activities on eligible property that is not

located in a qualified local governmental unit and that is a

facility, functionally obsolete, or blighted, the following

additional activities:

     (A) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (B) Lead or asbestos abatement.

     (viii) Reasonable costs of developing and preparing brownfield

plans and work plans.

     (ix) For property that is not located in a qualified local

governmental unit and that is a facility, functionally obsolete, or

blighted, that is a former mill that has not been used for

industrial purposes for the immediately preceding 2 years, that is

located along a river that is a federal superfund site listed under

the comprehensive environmental response, compensation, and

liability act of 1980, 42 USC 9601 to 9675, and that is located in

a city with a population of less than 10,000 persons, the following

additional activities:

     (A) Infrastructure improvements that directly benefit the

property.

     (B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (C) Lead or asbestos abatement.

     (D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

     (x) For eligible activities on eligible property that is

located north of the 45th parallel, that is a facility,

functionally obsolete, or blighted, and the owner or operator of

which makes new capital investment of $250,000,000.00 or more in

this state, the following additional activities:

     (A) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

     (B) Lead or asbestos abatement.

     (xi) Reasonable costs of environmental insurance.

     (n) "Eligible Except as otherwise provided in this

subdivision, "eligible property" means property for which eligible

activities are identified under a brownfield plan that was used or

is currently used for commercial, industrial, public, or

residential purposes, that is either in a qualified local

governmental unit and is a facility, functionally obsolete, or

blighted or is not in a qualified local governmental unit and is a

facility, and includes parcels that are adjacent or contiguous to

that property if the development of the adjacent and contiguous

parcels is estimated to increase the captured taxable value of that

property or tax reverted property owned or under the control of a

land bank fast track authority. Eligible property includes,

including personal property located on the property, to the extent

included in the brownfield plan, personal property located on the

property. Eligible property does not include qualified agricultural

property exempt under section 7ee of the general property tax act,

1893 PA 206, MCL 211.7ee, from the tax levied by a local school

district for school operating purposes to the extent provided under

section 1211 of the revised school code, 1976 PA 451, MCL 380.1211.

and that is 1 or more of the following:

     (i) Is in a qualified local governmental unit and is a

facility, functionally obsolete, or blighted and includes parcels

that are adjacent or contiguous to that property if the development

of the adjacent and contiguous parcels is estimated to increase the

captured taxable value of that property.

     (ii) Is not in a qualified local governmental unit and is a

facility, and includes parcels that are adjacent or contiguous to

that property if the development of the adjacent and contiguous

parcels is estimated to increase the captured taxable value of that

property.

     (iii) Is tax reverted property owned or under the control of a

land bank fast track authority.

     (iv) Is not in a qualified local governmental unit, is a

qualified facility, and is a facility, functionally obsolete, or

blighted, if the eligible activities on the property are limited to

the eligible activities identified in subdivision (m)(vi).

     (v) Is not in a qualified local governmental unit and is a

facility, functionally obsolete, or blighted, if the eligible

activities on the property are limited to the eligible activities

identified in subdivision (m)(vii).

     (vi) Is not in a qualified local governmental unit and is a

facility, functionally obsolete, or blighted, if the eligible

activities on the property are limited to the eligible activities

identified in subdivision (m)(ix).

     (vii) Is located north of the 45th parallel, is a facility,

functionally obsolete, or blighted, and the owner or operator makes

new capital investment of $250,000,000.00 or more in this state.

Eligible property does not include qualified agricultural property

exempt under section 7ee of the general property tax act, 1893 PA

206, MCL 211.7ee, from the tax levied by a local school district

for school operating purposes to the extent provided under section

1211 of the revised school code, 1976 PA 451, MCL 380.1211.

     (o) "Environmental insurance" means liability insurance for

environmental contamination and cleanup that is not otherwise

required by state or federal law.

(p) (o) "Facility" means that term as defined in section 20101

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101.

(q) (p) "Fiscal year" means the fiscal year of the authority.

(r) (q) "Functionally obsolete" means that the property is

unable to be used to adequately perform the function for which it

was intended due to a substantial loss in value resulting from

factors such as overcapacity, changes in technology, deficiencies

or superadequacies in design, or other similar factors that affect

the property itself or the property's relationship with other

surrounding property.

(s) (r) "Governing body" means the elected body having

legislative powers of a municipality creating an authority under

this act.

(t) (s) "Infrastructure improvements" means a street, road,

sidewalk, parking facility, pedestrian mall, alley, bridge, sewer,

sewage treatment plant, property designed to reduce, eliminate, or

prevent the spread of identified soil or groundwater contamination,

drainage system, waterway, waterline, water storage facility, rail

line, utility line or pipeline, or other similar or related

structure or improvement, together with necessary easements for the

structure or improvement, owned or used by a public agency or

functionally connected to similar or supporting property owned or

used by a public agency, or designed and dedicated to use by, for

the benefit of, or for the protection of the health, welfare, or

safety of the public generally, whether or not used by a single

business entity, provided that any road, street, or bridge shall be

continuously open to public access and that other property shall be

located in public easements or rights-of-way and sized to

accommodate reasonably foreseeable development of eligible property

in adjoining areas.

(u) (t) "Initial taxable value" means the taxable value of an

eligible property identified in and subject to a brownfield plan at

the time the resolution adding that eligible property in the

brownfield plan is adopted, as shown either by the most recent

assessment roll for which equalization has been completed at the

time the resolution is adopted or, if provided by the brownfield

plan, by the next assessment roll for which equalization will be

completed following the date the resolution adding that eligible

property in the brownfield plan is adopted. Property exempt from

taxation at the time the initial taxable value is determined shall

be included with the initial taxable value of zero. Property for

which a specific tax is paid in lieu of property tax shall not be

considered exempt from taxation. The state tax commission shall

prescribe the method for calculating the initial taxable value of

property for which a specific tax was paid in lieu of property tax.

(v) (u) "Land bank fast track authority" means an authority

created under the land bank fast track act, 2003 PA 258, MCL

124.751 to 124.774.

(w) (v) "Local taxes" means all taxes levied other than taxes

levied for school operating purposes.

(x) (w) "Municipality" means all of the following:

     (i) A city.

     (ii) A village.

     (iii) A township in those areas of the township that are outside

of a village.

     (iv) A township in those areas of the township that are in a

village upon the concurrence by resolution of the village in which

the zone would be located.

     (v) A county.

(y) (x) "Owned or under the control of" means that a land bank

fast track authority has 1 or more of the following:

     (i) An ownership interest in the property.

     (ii) A tax lien on the property.

     (iii) A tax deed to the property.

     (iv) A contract with this state or a political subdivision of

this state to enforce a lien on the property.

     (v) A right to collect delinquent taxes, penalties, or

interest on the property.

     (vi) The ability to exercise its authority over the property.

(z) (y) "Qualified facility" means a landfill facility area of

140 or more contiguous acres that is located in a city and that

contains a landfill, a material recycling facility, and an asphalt

plant that are no longer in operation.

(aa) (z) "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

146, MCL 125.2781 to 125.2797.

(bb) (aa) "Qualified taxpayer" means that term as defined in

former sections 38d and 38g of the single business tax act, 1975 PA

228, MCL 208.38d and 208.38g or section 437 of the Michigan

business tax act, 2007 PA 36, MCL 208.1437.

     (bb) "Remedial action plan" means a plan that meets both of

the following requirements:

     (i) Is a remedial action plan as that term is defined in

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

     (ii) Describes each individual activity to be conducted to

complete eligible activities and the associated costs of each

individual activity.

     (cc) "Response activity" means that term as defined in section

20101 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.20101.

     (dd) "Specific taxes" means a tax levied under 1974 PA 198,

MCL 207.551 to 207.572; the commercial redevelopment act, 1978 PA

255, MCL 207.651 to 207.668; the enterprise zone act, 1985 PA 224,

MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182; the

technology park development act, 1984 PA 385, MCL 207.701 to

207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL

125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA

147, MCL 207.771 to 207.786; the commercial rehabilitation act,

2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax

levied under the tax reverted clean title act, 2003 PA 260, MCL

211.1021 to 211.1026, that is not required to be distributed to a

land bank fast track authority.

     (ee) "Tax increment revenues" means the amount of ad valorem

property taxes and specific taxes attributable to the application

of the levy of all taxing jurisdictions upon the captured taxable

value of each parcel of eligible property subject to a brownfield

plan and personal property located on that property. Tax increment

revenues exclude ad valorem property taxes specifically levied for

the payment of principal of and interest on either obligations

approved by the electors or obligations pledging the unlimited

taxing power of the local governmental unit, and specific taxes

attributable to those ad valorem property taxes. Tax increment

revenues attributable to eligible property also exclude the amount

of ad valorem property taxes or specific taxes captured by a

downtown development authority, tax increment finance authority, or

local development finance authority if those taxes were captured by

these other authorities on the date that eligible property became

subject to a brownfield plan under this act.

     (ff) "Taxable value" means the value determined under section

27a of the general property tax act, 1893 PA 206, MCL 211.27a.

     (gg) "Taxes levied for school operating purposes" means all of

the following:

     (i) The taxes levied by a local school district for operating

purposes.

     (ii) The taxes levied under the state education tax act, 1993

PA 331, MCL 211.901 to 211.906.

     (iii) That portion of specific taxes attributable to taxes

described under subparagraphs (i) and (ii).

     (hh) "Work plan" means a plan that describes each individual

activity to be conducted to complete eligible activities and the

associated costs of each individual activity.

     (ii) "Zone" means, for an authority established before June 6,

2000, a brownfield redevelopment zone designated under this act.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) Senate Bill No. 539.

     (b) House Bill No. 4711.

     (c) House Bill No. 4712.