SB-0919, As Passed Senate, May 23, 2006

SUBSTITUTE FOR

SENATE BILL NO. 919

     A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending sections 6 and 8 (MCL 125.2686 and 125.2688), section 6

as amended by 2006 PA 116 and section 8 as amended by 2003 PA 266,

and by adding section 8e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     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.

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

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of less than 50 contiguous acres but more than 20

contiguous acres was designated under section 8 or 8a as a

renaissance zone in a city located in a county with a population of

more than 160,000 and less than 170,000 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 12 acres in size. 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.

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

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of more than 500 acres was designated under

section 8 or 8a as a renaissance zone in a county with a population

of more than 61,000 and less than 64,000 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 12 acres in size. 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.

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

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of more than 137 acres was designated under

section 8 or 8a as a renaissance zone in a county with a population

of more than 61,000 and less than 63,000 may modify the boundaries

of that renaissance zone to include a parcel of property that is

separated from the existing renaissance zone by a roadway as

determined by the qualified local governmental unit. The parcel of

property shall only include property that is less than 67 acres in

size. 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.

     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 10 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

does 1 or more of the following in a renaissance zone designated

under this section:

     (a) Fails to commence operation.

     (b) Ceases operation.

     (c) Fails to commence construction or renovation within 1 year

from the date the renaissance zone for the forest products

processing facility is designated.

     (4) Beginning on the effective date of the amendatory act that

added this subsection, the board shall consider all of the

following when designating a renaissance zone for a forest products

processing facility:

     (a) The economic impact on local suppliers who supply raw

materials, goods, and services to the forest products processing

facility.

     (b) The creation of jobs relative to the employment base of

the community rather than the static number of jobs created.

     (c) The viability of the project.

     (d) The economic impact on the community in which the forest

products processing facility is located.

     (e) Whether the forest products processing facility can be

located in an existing renaissance zone designated under section 8

or 8a.

     (5) Beginning on the effective date of the amendatory act that

added this subsection, the board shall require a development

agreement between the Michigan strategic fund and the forest

products processing facility.

     (6) As used in this section, "development agreement" means a

written agreement between the Michigan strategic fund and the

forest products processing facility that includes, but is not

limited to, all of the following:

     (a) A requirement that the forest products processing facility

comply with all state and local laws.

     (b) A requirement that the forest products processing facility

report annually to the Michigan strategic fund on all of the

following:

     (i) The amount of capital investment made at the facility.

     (ii) The number of individuals employed at the facility at the

beginning and end of the reporting period as well as the number of

individuals transferred to the facility from another facility owned

by the forest products processing facility.

     (iii) The percentage of raw materials purchased in this state.

     (c) Any other conditions or requirements reasonably required

by the Michigan strategic fund.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5456 of the 93rd Legislature is enacted into

law.