HB-5720, As Passed Senate, December 11, 2018

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5720

     A bill to amend 1961 PA 120, entitled

"An act to authorize the development or redevelopment of principal

shopping districts and business improvement districts; to permit

the creation of certain boards; to provide for the operation of

principal shopping districts and business improvement districts; to

provide for the creation, operation, and dissolution of business

improvement zones; and to authorize the collection of revenue and

the bonding of certain local governmental units for the development

or redevelopment projects,"

by amending section 10 (MCL 125.990), as amended by 2018 PA 262.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 10. As used in this chapter:

     (a) "Assessable property" means real 1 or more of the

following:

     (i) Real property in a zone area other than property

classified as residential real property under section 34c of the

general property tax act, 1893 PA 206, MCL 211.34c, or real

property exempt from the collection of taxes under the general

property tax act, 1893 PA 206, MCL 211.1 to 211.155.

     (ii) Real property in a zone area classified as residential

real property under section 34c of the general property tax act,

1893 PA 206, MCL 211.34c, only if the one plan for the zone area

designates property classified as residential real property in the

zone area as assessable property under the zone plan.

     (b) "Assessment" means an assessment imposed under this

chapter against assessable property for the benefit of the property

owners.

     (c) "Assessment revenues" means the money collected by a

business improvement zone from any assessments, including any

interest on the assessments.

     (d) "Board" means the board of directors of a business

improvement zone.

     (e) "Business improvement zone" means a business improvement

zone created under this chapter.

     (f) "Nonprofit corporation" means a nonprofit corporation

organized under the nonprofit corporation act, 1982 PA 162, MCL

450.2101 to 450.3192, and that complies with all of the following:

     (i) The articles of incorporation of the nonprofit corporation

provide that the nonprofit corporation may promote a business

improvement zone and may also provide management services related

to the implementation of a zone plan.

     (ii) The nonprofit corporation is exempt from federal income

tax under section 501(c)(4) or 501(c)(6) of the internal revenue

code, 28 USC 501.

     (g) "Person" means an individual, partnership, corporation,

limited liability company, association, or other legal entity.

     (h) "Project" means any activity for the benefit of property

owners authorized by section 10a to enhance the business

environment within a zone area.

     (i) "Property owner" means a person who owns, or an agent

authorized in writing by a person who owns, assessable property

according to the records of the treasurer of the city or village in

which the business improvement zone is located.

     (j) "Qualifying period" means the period in which a business

improvement zone is authorized to operate and impose and collect

assessments, beginning on the date that the business improvement

zone is approved by the property owners voting on the question as

provided in section 10f and ending 7 to 10 calendar years after

that date as determined in the petition described in section 10c.

The 10-year period or qualifying period of a business improvement

zone that was created before the date of the amendatory act that

added this sentence June 28, 2018 begins on the date that the

business improvement zone was approved by the property owners

voting on the question as provided in section 10f.

     (k) "Zone area" means the area designated in the zone plan as

the area to be served by the business improvement zone.

     (l) "Zone plan" means a set of goals, strategies, objectives,

and guidelines for the operation of a business improvement zone.