May 19, 2005, Introduced by Reps. Pearce, Baxter, LaJoy, Pavlov, Nitz, Huizenga, Newell, Stahl, Gosselin, Stewart, Elsenheimer, Mortimer, Booher, Emmons, Nofs, Taub and Hildenbrand and referred to the Committee on Commerce.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending section 8d (MCL 125.2688d), as amended by 2004 PA 202.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8d. (1) The board of the Michigan strategic fund
described in section 4 of the Michigan strategic fund act, 1984 PA
270, MCL 125.2004, may designate not more than 20 tool and die
renaissance recovery zones 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 recovery zone within their boundaries. A recovery
zone shall have a duration of renaissance zone status for a period
not to exceed 15 years as determined by the board of the Michigan
strategic fund. A qualified tool and die business in a recovery
zone may have a different period of renaissance zone status than
other qualified tool and die businesses in the same recovery zone.
(2) The board of the Michigan strategic fund may designate a
recovery zone within this state if the recovery zone consists only
of 1 or more parcels of qualified tool and die business property.
(3) The board of the Michigan strategic fund may revoke the
designation of all or a portion of a recovery zone with respect to
1 or more qualified tool and die businesses if those qualified tool
and die businesses fail or cease to participate in or comply with a
qualified collaborative agreement.
(4) A tool and die business may enter into a preexisting
qualified collaboration agreement with the consent of all other
qualified tool and die businesses that are part of that qualified
collaboration agreement and with the consent of the Michigan
strategic fund.
(5) The board of the Michigan strategic fund shall not require
a business entity seeking qualified tool and die business status to
create a new qualified collaborative agreement if the business
entity seeking qualified tool and die business status can join an
existing qualified collaborative agreement with other qualified
tool and die businesses.
(6) (4)
As used in this section:
(a) "Qualified collaborative agreement" means an agreement
that demonstrates synergistic opportunities, including, but not
limited to, all of the following:
(i) Sales and marketing efforts.
(ii) Development of standardized processes.
(iii) Development of tooling standards.
(iv) Standardized project management methods.
(v) Improved ability for specialized or small niche shops to
develop expertise and compete successfully on larger programs.
(b) "Qualified tool and die business" means a business entity
that meets all of the following:
(i) Has a North American industrial classification system
(NAICS) of 333511, 333512, 333513, 333514, or 333515; or has a
North American industrial classification system (NAICS) of 337215
and operates a facility within an existing renaissance zone, which
facility is adjacent to real property not located in a renaissance
zone and is located within 1/4 mile of a Michigan technical
education center.
(ii) Has entered into a qualified collaboration agreement as
approved by the Michigan strategic fund with other business
entities that have a North American industrial classification
system (NAICS) of 333511, 333512, 333513, 333514, or 333515.
(iii) Has less than 50 full-time employees.
(c) "Qualified tool and die business property" means 1 or more
of the following:
(i) Property owned by 1 or more qualified tool and die
businesses and used by those qualified tool and die businesses
primarily for tool and die business operations.
(ii) Property leased by 1 or more qualified tool and die
business for which the qualified tool and die business is liable
for ad valorem property taxes and which is used by those qualified
tool and die businesses primarily for tool and die business
operations. The qualified tool and die business shall furnish proof
of its ad valorem property tax liability to the department of
treasury.
(d) "Recovery zone" means a tool and die renaissance recovery
zone created in this section.