HOUSE BILL No. 6021

 

December 2, 2014, Introduced by Rep. Price and referred to the Committee on Local Government.

 

     A bill to amend 1974 PA 338, entitled

 

"Economic development corporations act,"

 

by amending sections 15, 17, 23, and 31 (MCL 125.1615, 125.1617,

 

125.1623, and 125.1631), sections 17 and 31 as amended by 1980 PA

 

501 and section 23 as amended by 2002 PA 357.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 15. (1) Meetings of the project citizens district council

 

shall be open to the public. Notice Through December 31, 2014

 

notice of the time and place of the meetings shall be given by

 

publication in a newspaper of general circulation not less than 3

 

days before the dates set for meetings of the project citizens

 

district council. Beginning January 1, 2015, the project citizens

 

 

 

 

 


 

district council shall provide tier B public notice as provided in

 

the local government public notice act of the time and place of the

 

meeting, not less than 3 days before the date set for the meeting.

 

A person present at those meetings shall have reasonable

 

opportunity to be heard.

 

     (2) A record of the meetings of a project citizens district

 

council, including information and data presented, shall be

 

maintained by the council.

 

     (3) A project citizens district council may request of and

 

receive from the corporation and the local public agency

 

information and technical assistance relevant to the preparation of

 

a project plan for its district area.

 

     (4) Failure of a project citizens district council to organize

 

or to consult with and be advised by a corporation and the local

 

public agency, or failure to advise the local public agency or the

 

governing body, as provided herein, in this section, shall not

 

preclude the adoption of a project plan by a municipality if the

 

municipality complies with the other provisions of this act.

 

     Sec. 17. (1) The governing body of the municipality for which

 

the corporation is incorporated, before adoption of a resolution

 

approving a project plan authorized by this act, shall hold a

 

public hearing. This act shall not be construed to require any

 

other municipality, other than the municipality for which the

 

corporation is incorporated, to hold a public hearing. Notice

 

Through December 31, 2014, notice of the time and place of the

 

hearing shall be given by publication once in a newspaper of

 

general circulation designated by the municipality, not less than


 

10 days before the date set for the hearing. Beginning January 1,

 

2015, the governing body of the municipality shall provide tier B

 

public notice with a link as provided in the local government

 

public notice act of the time and place of the hearing, not less

 

than 10 days before the date set for the hearing. In the case of an

 

agricultural and forestry enterprise project undertaken by a county

 

corporation, each unit of government within the county shall be

 

notified by mail.

 

     (2) Notice Through December 31, 2014, notice of the hearing

 

shall be posted in at least 10 conspicuous and public places in the

 

proposed project district area not less than 10 days before the

 

hearing and shall be mailed not less than 10 days before the

 

hearing to the last known owner of each parcel of real property in

 

the proposed project district area at the last known address of the

 

owner as shown by the tax assessment records of the municipality in

 

which the project area is located. Agricultural and forestry

 

enterprise projects shall not be required to comply with this

 

subsection.

 

     (3) Notice of the time, date, and place of hearing on a

 

proposed project plan shall contain a description of the location

 

of the project area in relation to highways, streets, streams, or

 

otherwise. The notice shall contain a statement that maps, plats,

 

and a description of the proposed project plan, including the

 

method of relocating families and individuals who will be displaced

 

from the area, are available for public inspection at a place

 

designated in the notice and that all aspects of the proposed

 

project plan will be open for discussion at the public hearing and


 

shall contain other information the governing body considers

 

appropriate. At the time set for hearing, the governing body shall

 

provide an opportunity for interested persons to be heard and shall

 

receive and consider communications in writing with reference to

 

the hearing. The hearing shall provide the fullest opportunity for

 

expression of opinion, for argument on the merits, and for

 

introduction of documentary evidence pertinent to the proposed

 

project plan. The governing body shall make and preserve a record

 

of the public hearing, including all data presented at the public

 

hearing. The record shall be made available to the public in

 

compliance with Act No. 442 of the Public Acts of 1976, as amended,

 

being sections 15.231 to 15.246 of the Michigan Compiled Laws.the

 

open meetings act, 1976 PA 442, MCL 15.231 to 15.246.

 

     Sec. 23. (1) For the purpose of defraying all or part of its

 

project costs, refunding or refunding in advance obligations

 

authorized under this act or obligations authorized under the

 

industrial development revenue bond act of 1963, 1963 PA 62, MCL

 

125.1251 to 125.1267, by a municipality incorporating a corporation

 

under this act, a corporation may borrow money and issue its

 

revenue bonds or revenue notes. Refunding bonds may be issued by

 

the corporation whether the bonds to be refunded have or have not

 

matured, are or are not redeemable on the date of issuance of the

 

refunding bonds, or are or are not subject to redemption before

 

maturity, and may be issued to pay principal, interest, redemption

 

premiums, or any combination thereof of the obligations to be

 

refunded. The bonds may be issued partly to refund bonds and partly

 

for any other purpose authorized by this act. The refunding bonds


 

may be issued in a principal amount greater than the principal

 

amount of the bonds to be refunded as may be necessary to effect

 

the refunding pursuant to the plan of refunding. The bonds or notes

 

shall be exempt from all taxation except inheritance and transfer

 

taxes and the interest on the bonds or notes shall be exempt from

 

all taxation in the state of Michigan, notwithstanding that the

 

interest may be subject to federal income tax.

 

     (2) The municipality shall not be liable on notes or bonds of

 

the corporation and the notes and bonds shall not be a debt of the

 

municipality. The notes and bonds shall contain on their face a

 

statement to that effect.

 

     (3) The bonds and notes of the corporation may be invested in

 

by all public officers, state agencies and political subdivisions,

 

insurance companies, banks, savings and loan associations,

 

investment companies, and fiduciaries and trustees, and may be

 

deposited with and received by all public officers and the agencies

 

and political subdivisions of this state for any purpose for which

 

the deposit of bonds is authorized.

 

     (4) The corporation shall report to the governing body of the

 

municipality for which the corporation is incorporated and the

 

Michigan economic development corporation not less than once per

 

year, which report shall fully describe the activities of the

 

corporation including a statement of all revenues and expenditures

 

since the previous report.

 

     (5) The financial records, accountings, audit reports, and

 

other reports of public money under the control of the corporation

 

shall be public records and open to inspection. The Through


 

December 31, 2014, the corporation shall publish in a newspaper of

 

general circulation in the incorporating municipality not more than

 

120 days after the conclusion of the corporation's operating year a

 

statement of all of its revenues and expenditures for the year. and

 

Beginning January 1, 2015, the corporation shall provide tier B

 

public notice with a link as provided in the local government

 

public notice act of a statement of all of its revenues and

 

expenditures for the year not more than 120 days after the

 

conclusion of the corporation's operating year. The corporation

 

shall distribute copies of the report upon request.

 

     Sec. 31. (1) The articles of incorporation shall be executed

 

in duplicate and delivered to the county clerk who shall file 1

 

copy in his or her office and the other with the recording officer

 

of the corporation when a recording officer is selected. The

 

Through December 31, 2014, the municipality's clerk shall cause a

 

copy of the articles of incorporation to be published once in a

 

newspaper designated in the articles of incorporation and

 

circulating within the municipality. accompanied by Beginning

 

January 1, 2015, the municipality's clerk shall provide tier B

 

public notice with a link as provided in the local government

 

public notice act of the articles of incorporation.                                            

 

The publication shall include a statement that the right exists to

 

question the incorporation in court as provided in this section.

 

     (2) The county clerk shall file 1 printed copy of the articles

 

of incorporation with the secretary of state and 1 printed copy in

 

his or her office, attached to each of which printed copies shall

 

be his or her certificate setting forth that the same is a true and


 

complete copy of the original articles of incorporation on file in

 

his or her office.

 

     (3) The corporation shall become effective at the time

 

provided in the articles of incorporation.

 

     (4) The validity of the incorporation shall be conclusively

 

presumed unless questioned in a court of competent jurisdiction

 

within 60 days after the filing of a certified copy with the

 

secretary of state.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 5560 of the 97th Legislature is enacted into

 

law.