HB-4545, As Passed House, March 25, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 4545

     A bill to amend 1963 PA 62, entitled

"Industrial development revenue bond act of 1963,"

by amending section 3 (MCL 125.1253).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) A municipality may:

     (a) Construct, acquire by gift or purchase, reconstruct,

improve, maintain or repair industrial buildings within or without

the municipality, acquire sites for those activities, and enlarge

or remodel industrial buildings.

     (b) Acquire by gift or purchase industrial machinery and

equipment, but only in conjunction with a project whereby the

municipality will construct, acquire by gift or purchase,

reconstruct, improve, or remodel the industrial building in or near

which the industrial machinery or equipment will be located.

     (c) Issue revenue bonds to finance the costs of the

acquisition, purchase, construction, reconstruction, or remodeling

of industrial buildings, the acquisition and improvement of sites,

the acquisition of industrial machinery and equipment, and the

refunding of bonds issued pursuant to this act.

     (d) Enter into lease or lease purchase agreements with any

person, firm or corporation for the use of the industrial building,

the site therefor and industrial machinery and equipment. The

agreement shall provide that the rents to be charged for the use

shall be fixed and revised from time to time so as to produce

income and revenues sufficient to pay promptly when due the

interest upon and the principal of all bonds issued payable

therefrom after provision has been made for the payment of

operation and maintenance costs. Whenever such agreement shall

relate to industrial machinery or equipment, it shall specify that

the machinery or equipment shall remain in or near the industrial

building until provision has been made for the retirement in full

of all bonds issued therefor unless the industrial machinery and

equipment is replaced without cost to the municipality with similar

machinery and equipment of equivalent value and utility.

     (e) Mortgage the industrial building, the site, and any

industrial machinery and equipment in favor of the holders of the

bonds issued therefor.

     (f) Sell and convey the industrial building, the site, and any

industrial machinery and equipment, including without limitation

the sale and conveyance thereof subject to a mortgage, for a price

and at a time which that the governing body may determine, but a

sale or conveyance shall not be made in a manner that would impair

the rights or interests of the holders of bonds issued payable from

the rentals of the building, site, machinery or equipment.

     (2) Beginning April 1, 2010, a municipality shall not enter

into an agreement with a business under this act that has failed to

comply with section 3 of the Michigan corporate responsibility act

or that has failed to disclose a civil or criminal offense as

required by section 3 of the Michigan corporate responsibility act.

The attorney general of this state is responsible for the

enforcement necessary to ensure compliance with this subsection.