February 6, 2008, Introduced by Reps. Condino, Hood, Virgil Smith, Polidori, Farrah, Robert Jones, Cushingberry, Lemmons, Corriveau, Johnson, Hopgood, Accavitti, Tobocman, Constan, Clemente, Leland, Scott, Cheeks and Gonzales and referred to the Committee on Regulatory Reform.
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending sections 3, 8, 9, 10, 12, and 20 (MCL 207.623, 207.628,
207.629, 207.630, 207.632, and 207.640), section 3 as amended by
2006 PA 609, sections 8, 9, and 10 as amended by 2007 PA 72, and
section 12 as amended by 2002 PA 237.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Accommodations" means the room or other space provided to
transient guests for dwelling, lodging, or sleeping, including
furnishings and other accessories, in a facility that is not a
campground, hospital, nursing home, emergency shelter, or community
mental health or community substance abuse treatment facility.
Accommodations do not include food or beverages.
(b) "Commissioner" means the state treasurer.
(c) "Convention facility" means 1 or more facilities owned or
leased by a local governmental unit that are any combination of a
convention hall, auditorium, meeting rooms, and exhibition areas
that are separate and distinct and contiguous to each other, and
related adjacent public areas generally available to members of the
public for lease on a short-term basis for holding conventions,
meetings, exhibits, and similar events and the necessary site or
sites, together with appurtenant properties necessary and
convenient for use in connection with the facility.
(d) "Convention hotel" means a facility used in the business
of providing accommodations that has more than 80 rooms for
providing accommodations to transient guests and that complies with
all of the following:
(i) Located within a county having a population according to
the most recent decennial census of 750,000 or more.
(ii) Located within a county that is 1 or more of the
following:
(A)
A county which that has a convention facility with 350,000
square feet or more of total exhibit space.
(B) A county that has 2,000 or more rooms to provide
accommodations for transient guests.
(e) "Local governmental unit" means a county, township, city,
village, or authority.
(f) (e)
"Person" means a natural
person, partnership,
fiduciary, association, corporation, or other entity.
(g) (f)
"Room charge" means the
charge imposed for the use or
occupancy of accommodations, excluding charges for food, beverages,
telephone services, the use tax imposed under the use tax act, 1937
PA 94, MCL 205.91 to 205.111, or like services paid in connection
with the charge. Room charge does not include reimbursement of the
assessment imposed by the community convention or tourism marketing
act, 1980 PA 395, MCL 141.871 to 141.880, the convention and
tourism
marketing act, 1980 PA 383, MCL 141.881 to 141.1889
141.889, or this act.
(h) (g)
"Transient guest" means a
natural person staying less
than 30 consecutive days.
Sec. 8. (1) The collections from the tax imposed by section 4
shall be deposited in the state treasury, to the credit of the
convention facility development fund, which is hereby created
within the state treasury. Collections from the additional tax
imposed under section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, shall also be deposited to the
credit of the convention facility development fund.
(2) The convention facility development fund shall be
distributed for certain state purposes and to local governmental
units for use only for 1 or more of the following purposes:
(a) Acquiring, constructing, improving, enlarging, renewing,
replacing, or leasing a convention facility.
(b) In conjunction with an activity listed in subdivision (a),
repairing, furnishing, and equipping the convention facility.
(c) Refinancing an activity listed in subdivision (a) or (b).
(d) General fund expenditures.
(e) In the case of a local governmental unit that is an
authority, for any purpose authorized under the regional convention
facility authority act.
(3) A contract made by a local governmental unit for the
purposes included in subsection (2)(a) or (b) concerning a
convention facility funded by distributions pursuant to section 9
shall contain a guaranteed maximum price for the total cost of
activities conducted for these purposes pursuant to that contract.
Sec. 9. (1) On or before the thirtieth day of each month, the
state treasurer shall make a distribution from the convention
facility development fund to a qualified local governmental unit.
The distribution shall be an amount equal to the sum of the
collections from the excise tax levied for accommodations under
this act for the previous month from the convention hotels in the
county in which the convention facility is or is to be located and
in any county in which convention hotels are located that is
contiguous to the county in which the convention facility is
located, or is to be located, and the additional tax imposed under
section 1207 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.2207, for the previous month received in the fund.
However, distributions for any state fiscal year to any qualified
local governmental unit shall not exceed an amount equal to the
amount pledged, assigned, or dedicated by the qualified local
governmental unit pursuant to section 11 for the payment during
that state fiscal year of bonds, obligations, or other evidences of
indebtedness incurred for the purposes specified in this act or the
regional convention facility authority act, plus any amount
necessary to maintain a fully funded debt reserve or other reserves
intended to secure the principal and interest on the bonds,
obligations, or other evidences of indebtedness as contained in the
resolution or ordinance authorizing their issuance.
(2) Notwithstanding the distributions provided by subsection
(1), if a local governmental unit becomes a qualified local
governmental unit entitled to receive distributions from the tax
imposed under section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, or from the tax imposed by this act
in counties in which the convention facility is located or in a
county in which a convention hotel is located that is contiguous to
the county in which the convention facility is located, no other
qualified local governmental unit is entitled to distributions
pursuant to this section for which that qualified local
governmental unit has previously become entitled, until such time
as that qualified local governmental unit ceases to be a qualified
local governmental unit by transferring its ownership or leasehold
interest described in subsection (3) to another local governmental
unit. If that transfer renders the transferee a qualified local
governmental unit, the transferee shall, immediately upon that
transfer, be entitled to the distributions to a qualified local
governmental unit provided in subsection (1) and the priority
provided to a qualified local governmental unit in this subsection,
notwithstanding that the amount of the distributions may increase
as a result of that transfer.
(3) As used in this act, "qualified local governmental unit"
means a city, village, township, county, or authority that is
located in, or includes within its territory or jurisdiction, a
county in which convention hotels are located and that either is
the owner or lessee of a convention facility with 350,000 square
feet or more of total exhibit space on July 30, 1985 or, if such a
convention facility does not exist, will be the owner or lessee of
a convention facility with 350,000 square feet or more of total
exhibit space through the application of distributions under this
section to the purchase or lease of a convention facility.
(4) Notwithstanding any other provision of this act, after the
distributions under subsection (1), and before any distributions
under section 10, for fiscal year 2004-2005 only, $1,075,000.00
shall be distributed to the state sports tourism fund. The money
distributed to the state sports tourism fund described in this
subsection, including any funds appropriated in fiscal year 2005-
2006 from the state convention facility development fund, shall be
deducted from the money described in section 10(2)(a) before any
distribution is made under section 10(2)(a).
(5) The state sports tourism fund is created within the state
treasury.
(6) The state treasurer may receive money or other assets from
any source for deposit into the state sports tourism fund. The
state treasurer shall direct the investment of the state sports
tourism fund. The state treasurer shall credit to the state sports
tourism fund interest and earnings from the state sports tourism
fund investments.
(7) Money in the state sports tourism fund at the close of the
fiscal year shall remain in the state sports tourism fund and shall
not lapse to the general fund. However, money remaining in the fund
on September 30, 2006, shall lapse to the convention facility
development fund.
(8) The department of treasury shall expend money from the
state sports tourism fund, upon appropriation, only for grants to
Super Bowl XL host committee functions related to hosting, staging,
or execution of Super Bowl XL activities or to reimburse a county
not more than $500,000.00 for contributions or grants already made
to the Super Bowl XL host committee for functions related to
hosting, staging, or execution of Super Bowl XL activities. Money
shall not be distributed to the state sports tourism fund that
impairs obligations, bonds, or other evidences of indebtedness
issued under this act.
(9) The department of treasury shall expend money from the
state sports tourism fund, upon appropriation of not more than
$1,000,000.00, for Super Bowl XL host committee functions related
to security operations of Super Bowl XL activities. Money shall not
be distributed to the state sports tourism fund that impairs
obligations, bonds, or other evidences of indebtedness issued under
this act.
(10) Notwithstanding any other provision of this act, after
the distributions under subsection (1) and before any distributions
under section 10, for the fiscal year ending September 30, 2007
only, $35,000,000.00 is transferred to the general fund and is
appropriated for general fund expenditures.
Sec. 10. (1) Any money remaining in the convention facility
development fund that is not used for the bonds, obligations, or
other evidences of indebtedness described in section 9 shall be
distributed pursuant to subsection (2).
(2) Money in the convention facility development fund shall be
distributed as provided in subsection (4) in the following order of
priority in the following amounts:
(a) An amount equal to the difference, if any, between the tax
imposed under this act in the preceding state fiscal year that is
designated under section 9 to a qualified local governmental unit
and the tax imposed under this act that is designated under section
9 in the state fiscal year immediately preceding the preceding
state fiscal year for the same local governmental unit shall be
distributed to that local governmental unit. This subdivision does
not apply unless a tax has been imposed under this act in the
entire 2 state fiscal years immediately preceding the state fiscal
year in which a distribution under this subdivision is made. Any
amount distributed under this subdivision shall be used by the
local governmental unit only for the retirement of outstanding
bonds, obligations, or other evidences of indebtedness incurred for
which distributions under section 9 are pledged. A distribution
under this subdivision shall not be made to the extent that the
obligations, bonds, or other evidences of indebtedness cannot be
retired or are not outstanding.
(b)
An amount equal to that portion of the total liquor tax
collected under section 1207 of the Michigan liquor control code of
1998,
1998 PA 58, MCL 436.2207, from licensees in counties in which
convention
hotels are not located shall be
distributed to those
counties
in which convention hotels are not located all counties,
with the distribution to be allocated to each county in the same
proportion that the amount of tax collected under section 1207 of
the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
in
the preceding state fiscal year from the licensees in a the
county bears to the total tax collections under section 1207 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207, in
the
preceding state fiscal year from all counties, in which
convention
hotels are not located provided
that no county in which
convention hotels are not located may receive a distribution under
this subsection greater than the total liquor tax collected from
licensees in that county pursuant to section 1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, in the
preceding state fiscal year.
(c)
The remaining money available after distributions under
subdivisions
(a) and (b) shall be distributed to each county in the
following
amounts:
(i) The amount of money available to be distributed
under this
subdivision
multiplied by the percentage of collections in the
preceding
state fiscal year under section 1207 of the Michigan
liquor
control code of 1998, 1998 PA 58, MCL 436.2207, from
licensees
in counties in which convention hotels are not located
shall
be distributed to each county in which convention hotels are
not
located in the same proportion that the amount of tax collected
pursuant
to section 1207 of the Michigan liquor control code of
1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year
from
licensees in that county bears to the total tax collections
from
section 1207 of the Michigan liquor control code of 1998, 1998
PA
58, MCL 436.2207, in the preceding state fiscal year from all
counties
in which convention hotels are not located.
(ii) The amount of money available to be distributed
under this
subdivision
multiplied by the percentage of collections in the
preceding
state fiscal year under section 1207 of the Michigan
liquor
control code of 1998, 1998 PA 58, MCL 436.2207, from
licensees
in counties in which convention hotels are located shall
be
distributed to each county in which convention hotels are
located
in the same proportion that the amount of tax collected
pursuant
to section 1207 of the Michigan liquor control code of
1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year
from
licensees in that county bears to the total tax collections
from
section 1207 of the Michigan liquor control code of 1998, 1998
PA
58, MCL 436.2207, in the preceding state fiscal year from all
counties
in which convention hotels are located. However, in In the
calculation of the proportion represented by a county's share of
distributions
under this subparagraph subdivision, the amount of
the
tax collected from licensees in the a qualified local
governmental
unit that received distributions under section 9 in
the
last state fiscal year with a
population of more than 300,000
shall not be included.
(3) A distribution to a county pursuant to this section shall
be included for purposes of the calculations required to be made by
section 24e of the general property tax act, 1893 PA 206, MCL
211.24e. If the governing body of a taxing unit approves the
additional millage rate under section 24e of the general property
tax act, 1893 PA 206, MCL 211.24e, which is due to distributions
pursuant to this section, then an amount equal to 50% of the
distribution under this section shall be used for substance abuse
treatment within the taxing unit.
(4) Beginning October 1, 2007 and each year thereafter, from
the revenue collected during the previous quarter, after
distributing the monthly payments under section 9(1), the state
treasurer shall make quarterly distributions under subsection
(2)(b). and
(c). From the revenue collected in the last quarter of
the state fiscal year, the state treasurer shall make the
distribution under subsection (2)(a) prior to any distributions
under
subsection (2)(b). and (c).
Sec. 12. (1) Subject to approval pursuant to section 11, a
local governmental unit may assign or pledge all or a portion of
the distribution of taxes that the local governmental unit is
eligible to receive under this act for payment of bonds,
obligations, or other evidences of indebtedness for the purposes
specified in section 8(2). If a local governmental unit assigns,
pledges, or, pursuant to section 11(3), dedicates all or a portion
of the distribution of taxes that the local governmental unit is
eligible to receive under this act for payment of bonds,
obligations, or other evidences of indebtedness incurred for the
purposes specified in this act, the state treasurer may transmit to
the duly appointed trustee or trustees for the bonds, obligations,
or other evidences of indebtedness, if any, the payment of the
distribution assigned, pledged, or dedicated by the local
governmental unit.
(2) A local governmental unit that is a city or a county shall
not issue bonds, obligations, or other evidences of indebtedness to
which distributions under section 9 are pledged in a principal
amount greater than $180,000,000.00. This limit does not apply to
refunding bonds, obligations, or other evidences of indebtedness
issued pursuant to section 11(2) or to bonds, obligations, or other
evidences of indebtedness to which distributions of taxes from the
convention facility development fund are dedicated under section
11(3).
Sec. 20. The tax imposed by this act shall not be levied after
December 31, 2015 2022.
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.____ or House Bill No. 5690(request no.
04081'07 ****).
(b) Senate Bill No.____ or House Bill No. 5692(request no.
05887'07 ****).