February 25, 2014, Introduced by Senators BRANDENBURG, JANSEN, ROBERTSON, COLBECK, EMMONS, PROOS, PAVLOV, PAPPAGEORGE, MARLEAU, JONES, BOOHER, WARREN and MOOLENAAR and referred to the Committee on Finance.
A bill to create a metropolitan authority; to prescribe the
powers, duties, and jurisdictions of the metropolitan authority; to
prescribe the powers and duties of certain state officials; to
levy, collect, and distribute a tax; and to repeal acts and parts
of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "local
community stabilization authority act".
Sec. 3. (1) The legislature finds and declares all of the
following:
(a) That there exists in this state a continuing need to
strengthen and revitalize the economy of this state and to organize
the activities of local government in metropolitan areas in a
manner that reduces governmental barriers to economic growth,
facilitates economic development, helps small businesses grow,
preserves communities and strengthens neighborhoods, prevents or
reduces unemployment, and creates jobs.
(b) That under section 27 of article VII of the state
constitution of 1963, the legislature may establish in metropolitan
areas additional forms of government or authorities with power,
duties, and jurisdictions as the legislature shall provide.
(c) That it is necessary and appropriate for the promotion of
the health, safety, and welfare of the people of this state to
enable the formation of metropolitan governments designed to
perform multipurpose functions.
(d) That the formation of a metropolitan government under this
act and the powers conferred by this act constitute a necessary
program and serve a necessary public purpose.
(2) The purpose of this act is to do all of the following:
(a) Establish an authority to perform multipurpose functions
in the metropolitan areas of this state.
(b) Promote the public health, safety, welfare, convenience,
and prosperity of this state and its metropolitan areas.
(c) Modernize the tax system to help small businesses grow and
create jobs in this state.
(d) Dedicate revenue for local purposes, including, but not
limited to, police safety, fire protection, and ambulance emergency
services.
Sec. 5. As used in this act:
(a) "Ambulance services" means patient transport services,
nontransport prehospital life support services, and advanced life
support, paramedic, and medical first-responder services.
(b) "Authority" means the local community stabilization
authority, a metropolitan authority established under section 7.
(c) "Captured value" means 1 or more of the following:
(i) For a tax increment finance authority under the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
captured taxable value as defined in section 2 of the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2652.
(ii) For a tax increment finance authority under 1975 PA 197,
MCL 125.1651 to 125.1681, captured assessed value as defined in
section 1 of 1975 PA 197, MCL 125.1651.
(iii) For a tax increment finance authority under the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, captured assessed value as defined in section 1 of the
tax increment finance authority act, 1980 PA 450, MCL 125.1801.
(iv) For a tax increment finance authority under the local
development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
captured assessed value as defined in section 2 of the local
development financing act, 1986 PA 281, MCL 125.2152.
(v) For a tax increment finance authority under the historic
neighborhood tax increment finance authority act, 2004 PA 530, MCL
125.2841 to 125.2866, captured assessed value as defined in section
2 of the historic neighborhood tax increment finance authority act,
2004 PA 530, MCL 125.2842.
(vi) For a tax increment finance authority under the corridor
improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899,
captured assessed value as defined in section 2 of the corridor
improvement authority act, 2005 PA 280, MCL 125.2872.
(vii) For a tax increment finance authority under the
neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to
125.2932, captured assessed value as defined in section 2 of the
neighborhood improvement authority act, 2007 PA 61, MCL 125.2912.
(viii) For a tax increment finance authority under the water
resource improvement tax increment finance authority act, 2008 PA
94, MCL 125.1771 to 125.1793, captured assessed value as defined in
section 2 of the water resource improvement tax increment finance
authority act, 2008 PA 94, MCL 125.1772.
(ix) For a tax increment finance authority under the private
investment infrastructure funding act, 2010 PA 250, MCL 125.1871 to
125.1883, captured assessed value as defined in section 2 of the
private investment infrastructure funding act, 2010 PA 250, MCL
125.1872.
(x) For a tax increment finance authority under the nonprofit
street railway act, 1867 PA 35, MCL 472.1 to 472.27, captured
assessed value as defined in section 23 of the nonprofit street
railway act, 1867 PA 35, MCL 472.23.
(d) "Commercial personal property" means all of the following:
(i) Personal property classified as commercial personal
property under section 34c of the general property tax act, 1893 PA
206, MCL 211.34c.
(ii) Personal property subject to the industrial facilities tax
under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is
sited on land classified as commercial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(e) "Commercial real property" means all of the following:
(i) Real property classified as commercial real property under
section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
(ii) Real property subject to the industrial facilities tax
under section 14(1) or (3) of 1974 PA 198, MCL 207.564, that is
sited on land classified as commercial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(f) "Council" means the council established for the authority
under section 9.
(g) "Debt loss" means, for a municipality that is not a local
school district, intermediate school district, or tax increment
finance authority, the amount of ad valorem property taxes and any
specific tax levied for the payment of principal and interest of
obligations incurred before January 1, 2013 pledging the unlimited
or limited taxing power of the municipality that are lost as a
result of the exemption of industrial personal property and
commercial personal property under sections 9m, 9n, and 9o of the
general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and
211.9o.
(h) "Department" means the department of treasury.
(i) "Essential services" means all of the following:
(i) Ambulance services.
(ii) Fire services.
(iii) Police services.
(iv) Jail operations.
(v) The funding of pensions for personnel providing services
described in subparagraphs (i) to (iv).
(j) "Fire services" means services in the prevention and
suppression of fire, homeland security response, hazardous
materials response, rescue, fire marshal, and medical first-
responder services.
(k) "Fiscal year" means either an annual period that begins on
October 1 and ends on September 30 or the fiscal year for the
authority established by the council.
(l) "Increased captured value" means the anticipated increase
in captured value for all industrial personal property and
commercial personal property in a tax increment finance authority
that would have occurred as a result of either the addition of
personal property as part of a specific project or the expiration
of an exemption under section 7k, 7ff, or 9f of the general
property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,
after 2013 if the exemptions under section 9m, 9n, or 9o of the
general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and
211.9o, were not in effect. In order for an anticipated increase in
captured value to qualify as increased captured value, the tax
increment financing plan must have demonstrated before 2013 that
the tax increment finance authority was relying on this anticipated
increase in captured value to pay 1 or more qualified obligations
by specifically projecting the anticipated increase in captured
value that would be used to pay the qualified obligations and the
plan must meet all of the following:
(i) The tax increment financing plan was fully approved by the
governing body of the applicable local government not later than
December 31, 2012. This does not prevent subsequent amendment to
the tax increment financing plan, provided the amendment does not
change the amount of any obligation under the plan, the scope of
the project or projects described in the plan, or the time needed
to repay any obligation.
(ii) If the tax increment financing plan is part of a
brownfield plan under the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2672, any needed work plans were
also approved by the appropriate state agencies not later than
December 31, 2012. This does not prevent subsequent amendment to a
work plan, provided the amendment does not change the amount of any
obligation under the plan, the scope of the project or projects
described in the plan, or the time needed to repay any obligation.
(iii) The tax increment financing plan identifies a particular
site owner and site occupant that is engaged in industrial
processing or direct integrated support, as defined in section 9m
of the general property tax act, 1893 PA 206, MCL 211.9m. This does
not preclude a change in the site owner or occupant, provided that
change in the site owner or occupant did not result from a
financial difficulty encountered during the construction and
installation of the project and provided change in the site owner
or occupant will not result in any change in the project.
(iv) The tax increment financing plan identifies a particular
project on a specific parcel and that project includes the addition
of particular personal property that is eligible manufacturing
personal property, as defined in section 9m of the general property
tax act, 1893 PA 206, MCL 211.9m, that is also identified in the
tax increment financing plan.
(v) The personal property that is eligible manufacturing
personal property, as defined in section 9m of the general property
tax act, 1893 PA 206, MCL 211.9m, and is identified in the tax
increment financing plan comprises not less than 20% of the true
cash value of the improvements to be made as part of the specific
project identified in the tax increment financing plan. The
requirement under this subparagraph does not apply to the addition
of personal property as a result of the expiration of an exemption
under section 7k, 7ff, or 9f of the general property tax act, 1893
PA 206, MCL 211.7k, 211.7ff, and 211.9f.
(vi) Before December 31, 2012, the specific project identified
in the tax increment financing plan had obtained all necessary
local zoning approvals, including any necessary rezoning, special
land use, and site plan approvals for that project.
(vii) Before December 31, 2012, orders had been placed and
significant investments made in the personal property that is
eligible manufacturing personal property, as defined in section 9m
of the general property tax act, 1893 PA 206, MCL 211.9m, to be
located on the site.
(m) "Increased value from expired tax exemptions" means the
increase in taxable value subject to tax of industrial personal
property and commercial personal property that would have occurred
after 2013 if the exemptions under section 9m or 9n of the general
property tax act, 1893 PA 206, MCL 211.9m and 211.9n, were not in
effect as a result of the expiration of an exemption under section
7k, 7ff, or 9f of the general property tax act, 1893 PA 206, MCL
211.7k, 211.7ff, and 211.9f, that had been in effect in 2013,
assuming an exemption under section 7k of the general property tax
act, 1893 PA 206, MCL 211.7k, was not extended under section 11a of
1974 PA 198, MCL 207.561a, and an exemption under section 9f of the
general property tax act, 1893 PA 206, MCL 211.9f, was not extended
under section 9f(8) of the general property tax act, 1893 PA 206,
MCL 211.9f.
(n) "Industrial personal property" means all of the following:
(i) Personal property classified as industrial personal
property under section 34c of the general property tax act, 1893 PA
206, MCL 211.34c.
(ii) Personal property subject to the industrial facilities tax
under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is
sited on land classified as industrial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(o) "Industrial real property" means all of the following:
(i) Real property classified as industrial real property under
section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
(ii) Real property subject to the industrial facilities tax
under section 14(1) or (3) of 1974 PA 198, MCL 207.564, that is
sited on land classified as industrial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(p) "Jail operations" means all of the following:
(i) The operation of a jail, holding cell, holding center, or
lockup as those terms are defined in section 62 of the corrections
code of 1953, 1953 PA 232, MCL 791.262.
(ii) The operation of a juvenile detention facility by a county
juvenile agency as authorized under section 7 of the county
juvenile agency act, 1998 PA 518, MCL 45.627.
(q) "Local community stabilization share" means that portion
of the use tax levied by the authority under the use tax act, 1937
PA 94, MCL 205.91 to 205.111.
(r) "Municipality" includes, but is not limited to, the
following:
(i) Counties.
(ii) Cities.
(iii) Villages.
(iv) Townships.
(v) Authorities, excluding an authority created under this
act.
(vi) Local school districts.
(vii) Intermediate school districts.
(viii) Community college districts.
(ix) Libraries.
(x) Other local and intergovernmental taxing units.
(s) "Personal property exemption loss" means the 2013 taxable
value of commercial personal property and industrial personal
property minus the current year taxable value of commercial
personal property and industrial personal property.
(t) "Police services" means law enforcement services for the
prevention and detection of crime, the enforcement of laws and
ordinances, homeland security response, and medical first-responder
services.
(u) "Qualified loss" means the amounts calculated under
sections 14(1), 14(3), and 16a(2) that are not distributed to the
municipality under section 17(3)(a).
(v) "Qualified obligation" means a written promise to pay by a
tax increment finance authority, whether evidenced by a contract,
agreement, lease, sublease, bond, resolution promising repayment of
an advance, or note, or a requirement to pay imposed by law. A
qualified obligation does not include a payment required solely
because of default upon an obligation, employee salary, or
consideration paid for the use of municipal offices. A qualified
obligation does not include bonds that have been economically
defeased by refunding.
(w) "School debt loss" means the amount of revenue lost from
ad valorem property taxes specifically levied for the payment of
principal and interest of obligations approved by the electors
before January 1, 2013 or obligations pledging the unlimited taxing
power of a local school district or intermediate school district
incurred before January 1, 2013, as a result of the exemption of
industrial personal property and commercial personal property under
sections 9m, 9n, and 9o of the general property tax act, 1893 PA
206, MCL 211.9m, 211.9n and 211.9o.
(x) "School operating loss not reimbursed by the school aid
fund" means the amount of revenue lost from ad valorem property
taxes levied under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, as a result of the exemption of industrial
personal property and commercial personal property under sections
9m, 9n, and 9o of the general property tax act, 1893 PA 206, MCL
211.9m, 211.9n, and 211.9o, for mills other than basic school
operating mills, as that term is defined in section 2c of the use
tax act, 1937 PA 94, MCL 205.92c.
(y) "Small taxpayer exemption loss" means the 2013 taxable
value of commercial personal property and industrial personal
property minus the 2014 taxable value of commercial personal
property and industrial personal property.
(z) "Specific tax" means a tax levied under any of the
following:
(i) 1974 PA 198, MCL 207.551 to 207.572.
(ii) The commercial redevelopment act, 1978 PA 255, MCL 207.651
to 207.668.
(iii) The commercial rehabilitation act, 2005 PA 210, MCL
207.841 to 207.856.
(aa) "Tax increment debt loss shortfall" means, for the
current year, the amount calculated as follows:
(i) The amount of revenue required to pay principal and
interest of qualified obligations.
(ii) From the amount determined in subparagraph (i), subtract
the amount of tax increment revenues captured by the tax increment
finance authority.
(iii) If the result of the calculation in subparagraph (ii) is a
zero or a negative number, then the tax increment debt loss
shortfall is zero. The tax increment debt loss shortfall shall not
exceed the amount calculated under section 16a(2).
(bb) "Tax increment finance authority" means an authority
created under 1 or more of the following:
(i) 1975 PA 197, MCL 125.1651 to 125.1681.
(ii) The tax increment finance authority act, 1980 PA 450, MCL
125.1801 to 125.1830.
(iii) The local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174.
(iv) The brownfield redevelopment financing act, 1996 PA 381,
MCL 125.2651 to 125.2672.
(v) The historic neighborhood tax increment finance authority
act, 2004 PA 530, MCL 125.2841 to 125.2866.
(vi) The corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(vii) The neighborhood improvement authority act, 2007 PA 61,
MCL 125.2911 to 125.2932.
(viii) The water resource improvement tax increment finance
authority act, 2008 PA 94, MCL 125.1771 to 125.1793.
(ix) The private investment infrastructure funding act, 2010 PA
250, MCL 125.1871 to 125.1883.
(x) The nonprofit street railway act, 1867 PA 35, MCL 472.1 to
472.27.
(cc) "Tax increment small taxpayer loss" means the amount of
revenue lost by a municipality that is a tax increment finance
authority due to the exemption provided by section 9o of the
general property tax act, 1893 PA 206, MCL 211.9o.
(dd) "Taxable value" means all of the following:
(i) Except as otherwise provided in subparagraph (ii), that
value determined under section 27a of the general property tax act,
1893 PA 206, MCL 211.27a.
(ii) For real or personal property subject to the industrial
facilities tax under section 14(3) or (4) of 1974 PA 198, MCL
207.564, 50% of that value determined under section 27a of the
general property tax act, 1893 PA 206, MCL 211.27a.
(ee) "Total qualified loss" means the total amount of
qualified losses of all municipalities, as determined by the
department.
Sec. 7. (1) The local community stabilization authority is
established as a metropolitan government for the metropolitan areas
of this state under section 27 of article VII of the state
constitution of 1963. The authority is a public body corporate and
a special authority. The authority is not an agency or
instrumentality of state government.
(2) The property of the authority is public property devoted
to an essential public and governmental purpose. Any income of the
authority is for a public and governmental purpose.
(3) Property of the authority and its income, activities, and
operations are exempt from all taxes and special assessments of
this state or a political subdivision of this state. Property of
the authority is exempt from any ad valorem property taxes levied
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, or other law of this state authorizing the taxation of
real or personal property. The authority is an entity of government
for purposes of section 4a(1)(a) of the general sales tax act, 1933
PA 167, MCL 205.54a, and section 4(1)(h) of the use tax act, 1937
PA 94, MCL 205.94.
(4) The validity of the creation of the authority is presumed
unless held invalid by the court of appeals in an original action
filed in the court of appeals not later than 60 days after the
establishment of the authority under this section. The court of
appeals has original jurisdiction to hear an action under this
subsection. The court shall hear the action in an expedited manner.
Sec. 9. (1) The authority council is established as the
governing body of the authority. The powers, duties, functions, and
responsibilities of the authority are vested in the council. The
council shall consist of 5 residents of this state appointed by the
governor. Not less than 3 members of the council shall be residents
of separate metropolitan areas within this state. An officer or
employee of this state may not serve as a member of the council.
(2) Of the members of the council initially appointed by the
governor, 1 member shall be appointed for an initial term of 5
years, 1 member shall be appointed for an initial term of 4 years,
1 member shall be appointed for an initial term of 3 years, 1
member shall be appointed for an initial term of 2 years, and 1
member shall be appointed for an initial term of 1 year. After the
initial appointments, a member of the council shall be appointed
for a term of 6 years. If a vacancy on the council occurs other
than by expiration of a term, the vacancy shall be filled in the
same manner as the original appointment for the balance of the
unexpired term. A member of the council may continue to serve until
a successor is appointed and qualified. The governor shall
designate a member of the council to serve as its chairperson at
the pleasure of the governor.
(3) An individual appointed as a member of the council shall
take the oath of office as provided under section 1 of article XI
of the state constitution of 1963.
(4) A member of the council shall serve without compensation
but may be reimbursed by the authority for necessary travel and
expenses to the extent not prohibited by law and consistent with a
reimbursement policy adopted by the council.
(5) A member of the council shall discharge the duties of his
or her position in a nonpartisan manner, in good faith, and with
the degree of diligence, care, and skill that an ordinarily prudent
person would exercise under similar circumstances in a like
position. In discharging his or her duties, a member of the
council, when acting in good faith, may rely upon any of the
following:
(a) The opinion of legal counsel for the authority.
(b) The report of an independent appraiser selected by the
council.
(c) Financial statements of the authority represented to the
member of the council to be correct by the officer of the authority
having charge of its books of account or stated in a written report
by an auditor or a certified public accountant, or a firm of
certified accountants, to reflect the financial condition of the
authority.
(6) Within not more than 30 days following appointment of the
initial members of the council, the council shall hold its first
meeting at a date and time determined by the chairperson of the
council. The council shall elect from among the members of the
council an individual to serve as vice-chairperson of the council
and secretary of the council and may elect other officers as the
council considers necessary. All officers under this subsection
shall be elected annually by the council.
(7) The council shall conduct its business at a public meeting
held in compliance with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275. Public notice of the time, date, and place of the
meeting shall be given in the manner required by the open meetings
act, 1976 PA 267, MCL 15.261 to 15.275. The council shall adopt
bylaws consistent with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, governing its procedures and the holding of
meetings. After organization, the council shall adopt a schedule of
regular meetings and adopt a regular meeting date, place, and time.
A special meeting of the council may be called by the chairperson
of the council or as provided in bylaws adopted by the council.
Notice of a special meeting shall be given in the manner required
by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(8) The council shall keep a written or printed record of each
meeting, which record and any other document or record prepared,
owned, used, in the possession of, or retained by the authority in
the performance of an official function shall be made available to
the public in compliance with the freedom of information act, 1976
PA 442, MCL 15.231 to 15.246.
(9) The council shall provide for a system of accounts for the
authority to conform to a uniform system required by law and for
the auditing of the accounts of the authority. The council shall
obtain an annual audit of the authority by an independent certified
public accountant and report on the audit and auditing procedures
in the manner provided by sections 6 to 13 of the uniform budgeting
and accounting act, 1968 PA 2, MCL 141.426 to 141.433. The audit
also shall be in accordance with generally accepted government
auditing standards.
(10) Before the beginning of each fiscal year, the council
shall prepare a budget for the authority containing an itemized
statement of the estimated expenses and revenue of the authority
from all sources for the next fiscal year. Before final adoption of
the budget, the council shall hold a public hearing as required by
1963 (2nd Ex Sess) PA 43, MCL 141.411 to 141.415, and the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275. The council shall
adopt a budget for the fiscal year in compliance with the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a.
(11) The council shall adopt a procurement policy consistent
with the requirements of state law relating to procurement. The
procurement policy shall address all of the following:
(a) The purchase of, the contracting for, and the providing of
supplies, materials, services, insurance, utilities, third-party
financing, equipment, printing, and all other items as needed by
the authority to efficiently and effectively meet the needs of the
authority using competitive procurement methods to secure the best
value for the authority.
(b) That the council shall make all discretionary decisions
concerning the solicitation, award, amendment, cancellation, and
appeal of authority contracts.
(c) Control, supervision, management, and oversight of each
contract to which the authority is a party.
(d) Monitoring of contracts to assure the contract is being
performed in compliance with the terms of the contract and
applicable law.
(12) Members of the council are public servants subject to
1968 PA 317, MCL 15.321 to 15.330, and are subject to any other
applicable law with respect to conflicts of interest. The council
shall establish policies and procedures requiring periodic
disclosure of relationships which may give rise to conflicts of
interest. The council shall require that a member of the council
with a direct interest in any matter before the authority disclose
the member's interest before the council takes any action with
respect to the matter. The council shall establish an ethics manual
for the authority governing authority business and the conduct of
authority officers and employees. The authority shall establish
policies that are no less stringent than those provided for public
officers and employees by 1973 PA 196, MCL 15.341 to 15.348, and
coordinate efforts for the authority to preclude the opportunity
for and the occurrence of transactions by the authority that would
create a conflict of interest involving officers or employees of
the authority. At a minimum, the policies shall include compliance
by each officer or employee who regularly exercises significant
discretion over the award and management of authority procurements
with policies governing all of the following:
(a) Immediate disclosure of the existence and nature of any
financial interest that could reasonably be expected to create a
conflict of interest.
(b) Withdrawal by an officer or employee from participation in
or discussion or evaluation of any recommendation or decision
involving an authority procurement that would reasonably be
expected to create a conflict of interest for that officer or
employee.
(13) The governor may remove a member of the council from
office for gross neglect of duty, corrupt conduct in office, or any
other misfeasance or malfeasance in office.
Sec. 11. (1) The authority may exercise all of the following
powers, duties, functions, and responsibilities:
(a) Levy and distribute the local community stabilization
share as provided under the use tax act, 1937 PA 94, MCL 205.91 to
205.111.
(b) Exercise the powers, duties, functions, and
responsibilities vested in the authority or the metropolitan
extension telecommunications rights-of-way oversight authority
under this act or the metropolitan extension telecommunications
rights-of-way oversight act, 2002 PA 48, MCL 484.3101 to 484.3120,
and other laws of this state. The authority may exercise the
powers, duties, functions, and responsibilities under this
subdivision through a director hired by the authority.
(2) When exercising the powers, duties, functions, and
responsibilities vested in the authority under subsection (1), the
authority may do 1 or more of the following:
(a) Establish and maintain an office.
(b) Adopt, amend, and repeal bylaws for the regulation of its
affairs and the conduct of its business.
(c) Sue and be sued in its own name and plead and be
impleaded.
(d) Solicit, receive, and accept gifts or grants from any
public or private source.
(e) Employ personnel, contract for goods and services, and
enter into agreements with other governmental entities.
(f) Establish 1 or more depositories for authority money and
invest authority money under an investment policy consistent with
this act and 1943 PA 20, MCL 129.91 to 129.97a.
(g) Acquire, hold, and dispose of interests in property.
(h) Incur indebtedness, but only in the manner and to the
extent authorized by law.
(3) The powers, duties, functions, and responsibilities of the
authority may be exercised throughout this state, including all the
metropolitan areas of this state. The authority possesses the
jurisdiction to exercise its functions on a statewide basis and may
do other things and take other action necessary or convenient to
the exercise of the powers, duties, functions, and responsibilities
of the authority under this section if they relate to the purposes
and jurisdiction of the authority.
Sec. 12. (1) The authority has the exclusive power to levy the
local community stabilization share under the use tax act, 1937 PA
94, MCL 205.91 to 205.111.
(2) The department shall administer under the use tax act,
1937 PA 94, MCL 205.91 to 205.111, the receipt and collection of
the local community stabilization share on behalf of the authority
as an agent of the authority. The authority may enter into an
agreement with the department relating to the receipt and
collection of the local community stabilization share and the
payment of the authority revenue generated by the local community
stabilization share to the authority.
(3) Money generated by the local community stabilization share
is money of the authority, not state funds, and shall not be
credited to the state treasury as state funds.
Sec. 13. (1) Not later than June 5, 2014, the assessor for
each city and township shall report to the county equalization
director all of the following:
(a) The 2013 taxable value of commercial personal property and
industrial personal property for each municipality in the city or
township.
(b) The 2014 taxable value of commercial personal property and
industrial personal property for each municipality in the city or
township.
(c) The small taxpayer exemption loss for each municipality in
the city or township.
(2) Not later than June 20, 2014, the equalization director
for each county shall report to the department the information
described in subsection (1) for each municipality in the county.
For each municipality levying a millage in more than 1 county, the
county equalization director responsible for compiling the
municipality's taxable value under section 34d of the general
property tax act, 1893 PA 206, MCL 211.34d, shall compile the
municipality's information described in subsection (1).
(3) Not later than June 5, 2015, and each June 5 thereafter,
the assessor for each city and township shall report to the county
equalization director the current year taxable value of commercial
personal property and industrial personal property for each
municipality in the city or township. Not later than June 20, 2015,
and each June 20 thereafter, the equalization director for each
county shall report to the department the current year taxable
value of commercial personal property and industrial personal
property for each municipality in the county. For each municipality
levying a millage in more than 1 county, the county equalization
director responsible for compiling the municipality's taxable value
under section 34d of the general property tax act, 1893 PA 206, MCL
211.34d, shall compile the municipality's information described in
this subsection.
(4) Not later than August 15, 2014, and each August 15
thereafter, each municipality shall report to the department the
millage rate levied or to be levied that year for a millage
described in section 5(g) or (w). For 2014 and 2015, the rate of
that millage shall be calculated using the sum of the
municipality's taxable value and the municipality's small taxpayer
exemption loss. Beginning in 2016 and each year thereafter, the
rate of that millage shall be calculated using the sum of the
municipality's taxable value and the municipality's personal
property exemption loss. For 2014 and 2015, the department shall
calculate each municipality's debt loss or school debt loss by
multiplying the municipality's millage rate reported under this
subsection by the municipality's small taxpayer exemption loss.
Beginning in 2016 and each year thereafter, the department shall
calculate each municipality's debt loss or school debt loss by
multiplying the municipality's millage rate reported under this
subsection by the municipality's personal property exemption loss.
(5) The department shall calculate and make available to each
municipality by May 1 of each year that municipality's sum of the
lowest rate of each individual millage levied in the period between
2012 and the year immediately preceding the current year. For a
municipality, other than a municipality described in section 14,
the calculation shall exclude debt millage. For an individual
millage rate not levied in 1 of the years, the lowest millage rate
is zero. A millage used to make the calculations under this act
must be levied against both real property and personal property.
Sec. 14. (1) Not later than August 15, 2016, and each August
15 thereafter, for each municipality that is not a local school
district, intermediate school district, or tax increment finance
authority, the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the municipality's personal property exemption
loss by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this section. An adjustment under this subdivision shall only be
made for municipalities for which changes in prior year taxable
values can be calculated from taxable values reported under section
151(1) of the state school aid act of 1979, 1979 PA 94, MCL
388.1751.
(d) Adjust the amount calculated under subdivision (b), as
adjusted by subdivision (c), by the amount calculated under section
16a(2) for captured taxes levied by the municipality not including
taxes attributable to increased captured value.
(2) Not later than August 15, 2016, and each August 15
thereafter, for each municipality that is a county, township,
village, city, or authority that provides essential services, the
department shall do all of the following:
(a) Add to the amount calculated under subsection (1)(a) any
increased value from expired tax exemptions for the current year.
(b) Subtract from the amount calculated under subdivision (a)
the small taxpayer exemption loss and the amount calculated under
section 16a(2)(b) for the municipality.
(c) Multiply the result of the calculation in subdivision (b)
by the millage rate calculated under section 13(5) for general
operating millage.
(d) Multiply the result of the calculation in subdivision (c)
by the percentage of the municipality's general operating millage
used to fund the cost of essential services in the municipality's
fiscal year ending in 2012. Each municipality's comprehensive
annual financial report for the municipality's fiscal year ending
in 2014 must include a calculation of the municipality's percentage
of general operating revenues used to fund essential services in
the municipality's fiscal year ending in 2012.
(e) Add to the result of the calculation in subdivision (d) an
amount calculated by multiplying the amount calculated under
subsection (2)(b) by the millage rates calculated under section
13(5) that are dedicated solely for the cost of essential services
levied on industrial personal property and commercial personal
property. A millage levied to fund a pension under the fire
fighters and police officers retirement act, 1937 PA 345, MCL
38.551 to 38.562, is dedicated solely for the cost of essential
services.
(3) Not later than August 15, 2016, for each municipality that
is a city, the department shall do all of the following:
(a) Calculate the municipality's small taxpayer exemption
loss.
(b) Multiply the amount calculated under subdivision (a) by
the millage rates calculated under section 13(5) for 2014.
(c) Multiply the amount calculated under subdivision (a) by
the millage rates calculated under section 13(5) for 2015.
(d) Add the amounts calculated under subdivisions (b) and (c).
(e) Subtract from the amount calculated under subdivision (d)
the sum of the municipality's debt loss for 2014 and 2015.
(f) Subtract from the amount calculated under subdivision (e)
the amount of any tax increment small taxpayer loss for captured
taxes levied by the municipality in 2014 and 2015.
Sec. 15. Not later than August 15, 2016, and each August 15
thereafter, for each municipality that is a local school district,
the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the result of the calculation in subdivision (a)
by the sum of the lowest rate of each individual millage levied
under section 1212 of the revised school code, 1976 PA 451, MCL
380.1212, and section 2 of 1917 PA 156, MCL 123.52, levied by that
municipality in the period between 2012 and the year immediately
preceding the current year.
(c) Adjust the amount calculated under subdivision (b) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this section.
(d) Subtract from the result of the calculation in subdivision
(b), as adjusted by subdivision (c), the amount calculated under
section 16a(2) for captured taxes levied by the municipality under
section 1212 of the revised school code, 1976 PA 451, MCL 380.1212,
and section 2 of 1917 PA 156, MCL 123.52, not including taxes
attributable to increased captured value.
Sec. 16. Not later than August 15, 2016, and each August 15
thereafter, for each municipality that is an intermediate school
district, the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the result of the calculation in subdivision (a)
by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this section.
(d) Subtract from the result of the calculation in subdivision
(b), as adjusted by subdivision (c), the amount calculated under
section 16a(2) for captured taxes levied by that municipality not
including taxes attributable to increased captured value.
Sec. 16a. (1) Not later than June 15, 2014 and June 15, 2015,
each municipality that is a tax increment finance authority shall
calculate and report to the department the municipality's tax
increment small taxpayer loss for the current calendar year.
(2) Not later than June 15, 2016, and each June 15 thereafter,
each municipality that is a tax increment finance authority shall
do all of the following for each of its tax increment financing
plans:
(a) Calculate the total captured value of all industrial
personal property and commercial personal property in the
municipality that is a tax increment finance authority in 2013 and
add any increased captured value for the current year.
(b) From the amount calculated in subdivision (a), subtract
the total captured value of all industrial personal property and
commercial personal property in the municipality that is a tax
increment finance authority in the current year. If the resulting
amount, when added to the taxable value of all property within the
tax increment finance authority in the current year, would result
in a captured value for all property within the tax increment
finance authority that is less than the resulting amount, then this
captured value shall be used instead of the resulting amount.
(c) Multiply the result of the calculation in subdivision (b)
by the sum of the lowest rate of each individual millage levied in
the period between 2012 and the year immediately preceding the
current year, to the extent the millage is subject to capture by
that tax increment finance authority. A millage used to make the
calculation under this subdivision must be eligible to be levied
against both real property and personal property.
(d) Adjust the amount calculated under subdivision (c) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this section.
(e) For an obligation refinanced after 2012, estimate for the
term of the obligation:
(i) The cumulative school district operating tax and state
education tax that would have been captured to repay the obligation
had the obligation not been refinanced.
(ii) The cumulative amount calculated under subdivision (c), as
adjusted by subdivision (d), for school district operating tax and
state education tax for the obligation had it not been refinanced.
(f) Once the amount included in subdivision (c), as adjusted
by subdivision (d), for the current and prior years for school
operating tax and state education tax for the refinanced obligation
equals the amount estimated in subdivision (e)(ii), subtract from
the amount calculated under subdivision (c), as adjusted by
subdivision (d), the amount calculated under subdivision (c), as
adjusted by subdivision (d), for school district operating tax and
state education tax for the refinanced obligation.
(g) Once the amount of school district operating tax and state
education tax captured for the current and prior years to pay the
refinanced obligation equals the amount estimated under subdivision
(e)(i), subtract from the amount calculated in subdivision (c), as
adjusted by subdivision (d), the amount of school operating tax and
state education tax captured to repay the refinanced obligation.
(3) Not later than June 15, 2016, and each June 15 thereafter,
each municipality that is a tax increment finance authority shall
report to the department all of the following:
(a) The results of the calculations under subsection (2) for
each tax increment financing plan.
(b) That municipality's tax increment debt loss shortfall.
Sec. 16b. (1) Each municipality that is a tax increment
finance authority shall report to the department the calculation
required under section 16a on a form and in a manner prescribed by
the department.
(2) If a municipality that is a tax increment finance
authority fails to make the calculation and report it to the
department by the date provided in section 16a, the department may
extend the calculation and reporting date upon good cause as
determined by the department.
(3) The department shall exclude from the calculations under
sections 14, 15, and 16 the taxable value of property exempt under
section 7ff of the general property tax act, 1893 PA 206, MCL
211.7ff, for millages subject to the exemption.
Sec. 17. (1) The legislature shall appropriate funds for all
of the following purposes:
(a) For fiscal year 2014-2015 and fiscal year 2015-2016, to
the authority, an amount equal to all debt loss for municipalities
that are not a local school district, intermediate school district,
or tax increment finance authority, an amount equal to all school
debt loss for municipalities that are a local school district or
intermediate school district, and an amount equal to all tax
increment small taxpayer loss for municipalities that are a tax
increment finance authority.
(b) Beginning in fiscal year 2014-2015 and each fiscal year
thereafter, an amount equal to the necessary expenses incurred by
the authority and the department in implementing this act.
(2) In fiscal year 2014-2015 and fiscal year 2015-2016, the
authority shall distribute to municipalities those funds
appropriated under subsection (1)(a). However, in fiscal year 2014-
2015, if the authority is not able to make the distribution under
this subsection, the department shall make the distribution under
this subsection on behalf of the authority.
(3) Beginning in fiscal year 2015-2016, the authority shall
distribute local community stabilization share revenue as follows
in the following order of priority:
(a) The authority shall distribute to each municipality an
amount equal to all of the following:
(i) 100% of that municipality's school debt loss in the current
year and 100% of its amount calculated under section 15.
(ii) 100% of that municipality's amount calculated under
section 16.
(iii) 100% of that municipality's school operating loss not
reimbursed by the school aid fund in the current year.
(iv) 100% of the amount calculated in section 14(2). However,
the amount distributed to a municipality under this subparagraph
shall not exceed the amount calculated in section 14(1)(d). All
distributions under this subparagraph shall be used to fund
essential services.
(v) For a municipality that is a tax increment finance
authority, 100% of the tax increment debt loss shortfall and 100%
of its amount calculated under section 16a(2) related to its
increased captured value. The amount calculated under section
16a(2)(c) shall first be attributable to any increased captured
value.
(b) Beginning in fiscal year 2017-2018, after the
distributions under subdivision (a), and subject to subparagraphs
(v) and (vi), the authority shall distribute 5% of the remaining
balance of local community stabilization share fund for the current
fiscal year to each municipality in an amount determined as
follows:
(i) Calculate the total taxable value of all industrial real
property in the municipality on which is located personal property
exempt under sections 9m and 9n of the general property tax act,
1893 PA 206, MCL 211.9m and 211.9n. For a municipality that is not
a tax increment finance authority, the amount calculated under this
subparagraph shall be reduced by the industrial real property
captured value of any municipality that is a tax increment finance
authority.
(ii) For a municipality that is not a tax increment finance
authority, multiply the result of the calculation in subparagraph
(i) by the sum of the lowest rate of each individual millage levied
by the municipality in the period between 2012 and the year
immediately preceding the current year that is not used to
calculate a distribution under subdivision (a) and that is not used
to calculate the distribution under section 21(3) of the use tax
act, 1937 PA 94, MCL 205.111. For a municipality that is a tax
increment finance authority, multiply the industrial real property
captured value by the sum of the lowest rate of each individual
millage captured by the municipality in the period between 2012 and
the year immediately preceding the current year that is not used to
calculate the distribution under section 21(3) of the use tax act,
1937 PA 94, MCL 205.111. A millage used to make the calculation
under this subparagraph must be eligible to be levied against both
real property and personal property.
(iii) Divide the result of the calculation in subparagraph (ii)
by the sum of the calculation under subparagraph (ii) for all
municipalities.
(iv) Multiply the result of the calculation in subparagraph (iii)
by the amount to be distributed under this subdivision.
(v) For fiscal year 2018-2019, and each fiscal year
thereafter, the percentage amount described in this subdivision
shall be increased an additional 5% each year, not to exceed 100%.
(vi) For a municipality that is a tax increment finance
authority, the amount calculated under this subdivision shall be
reduced by its tax increment debt loss shortfall.
(c) After the distributions in subdivisions (a) and (b), the
authority shall distribute the remaining balance of that fiscal
year's local community stabilization share fund to each
municipality in an amount determined by multiplying the remaining
balance by a fraction, the numerator of which is that
municipality's qualified loss and the denominator of which is the
total qualified loss. For a municipality that is a tax increment
finance authority, the amount calculated under this subdivision
shall be reduced by its tax increment debt loss shortfall.
(4) The authority shall make the payments required by
subsection (3) not later than on the following dates:
(a) For county allocated millage, September 20 of the year the
millage is levied.
(b) For county extra-voted millage, township millage, and
other millage levied 100% in December of a year, February 20 of the
following year.
(c) For other millages, October 20 of the year the millage is
levied.
(5) If the authority has insufficient funds to make the
payments on the dates required in subsection (4), the department
shall advance to the authority the amount necessary for the
authority to make the required payments. The authority shall repay
the advance to the department from the local community
stabilization share.
Sec. 18. (1) Beginning in fiscal year 2015-2016, and each
fiscal year thereafter, the department shall determine the amount
of the distributions under this act.
(2) Each municipality shall submit to the department
sufficient information for the department to make its calculations
under this act, as determined by the department.
Sec. 19. (1) A local unit of government may issue bonds or
other obligations in anticipation of the distribution of local
community stabilization share revenue under section 17(3)(a)(iv).
(2) Bonds or other obligations issued under this section are
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(3) If authorized by a majority vote of the qualified electors
of the local unit of government, the local unit of
government may, at the time of issuance, pledge the full faith and
credit of the local unit of government for the payment of bonds or
other obligations issued under this section.
Sec. 20. From the amount of local community stabilization
share revenue distributed under section 17(3)(a)(iv), a municipality
shall first replace the amount of ad valorem property taxes used
for the payment of principal and interest of essential services
obligations incurred before 2013 pledging the unlimited or limited
taxing power of the municipality, that are lost from the exemptions
provided by sections 9m, 9n, and 9o of the general property tax
act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o. A municipality
shall not receive distributions under section 17(3)(a)(iv) if it has
increased a millage rate for essential service obligations incurred
before 2013 pledging the unlimited or limited taxing power of the
municipality as a result of the exemptions provided by sections 9m,
9n, and 9o of the general property tax act, 1893 PA 206, MCL
211.9m, 211.9n, and 211.9o.
Sec. 21. From the amount received under section 17, a
municipality shall first replace debt loss or school debt loss, as
applicable. A municipality shall not receive a distribution under
this act if it has increased its millage rate to replace debt loss
or school debt loss, as applicable.
Sec. 22. This act shall be construed to effectuate the
legislative intent and the purposes of this act as complete and
independent authorization for the performance of each and every act
and thing authorized in the act, and all powers granted in this act
shall be broadly interpreted to effectuate the intent and purposes
of this act and not as to limitation of powers.
Enacting section 1. The Michigan metropolitan areas
metropolitan authority act, 2012 PA 407, MCL 123.1311 to 123.1330,
is repealed.
Enacting section 2. This act does not take effect unless
Senate Bill No.822
of the 97th Legislature is approved by a majority of the qualified
electors of this state voting on the question at an election to be
held on the August regular election date in 2014.
Enacting section 3. If Senate Bill No.822
____ of the 97th Legislature is not approved
by the majority of the qualified electors of this state voting on
the question at an election to be held on the August regular
election in 2014, for fiscal year 2013-2014 and fiscal year 2014-
2015, the legislature shall appropriate an amount sufficient to
make the appropriations described in section 17(1)(a).