BUSINESS IMPROVEMENT DISTRICTS - H.B. 4735 (S-1) & 4736 (S-1): FLOOR ANALYSIS


House Bills 4735 and 4736 (Substitutes S-1 as reported)

Sponsor: Representative Jason Allen (House Bill 4735)

Representative Samuel Buzz Thomas (House Bill 4736)

House Committee: Commerce

Senate Committee: Economic Development, International Trade and Regulatory Affairs


CONTENT


House Bill 4735 (S-1) would amend the shopping areas redevelopment Act to designate the current statute, which provides for the creation and operation of principal shopping districts and business improvement districts (BIDs), as Chapter 1 ("Principal Shopping District") of the Act. The bill also specifies that a special assessment under Chapter 1 would have to be levied against "assessable property" rather than "a parcel" in a principal shopping district or BID established under that chapter. "Assessable property" would mean real property in a principal shopping district or BID established under Chapter 1 other than 1) property classified as residential; 2) government-owned property that was exempt from property taxes; or 3) a class of property owners whose property either was exempt from property taxes or, as a class, had been determined not to benefit from a project for which special assessments were to be levied.


The bill also would authorize a city with a principal shopping district or BID to provide for or contract with other entities for the provision of services that the district board determined were a benefit to the shopping district or BID.


House Bill 4736 (S-1) would amend the shopping areas redevelopment Act to add a new Chapter 2 ("Business Improvement Districts"), which would provide for the creation and operation of a different type of BID. The bill would do all of the following:


-- Allow a city or village to create a BID for a renewable seven-year period.

-- Specify the procedures for establishing a BID, including a petition and public hearing, adoption of a district plan, approval of the governing body of the city or village in which the BID would be located, and approval by the property owners within the proposed BID.

-- Require a board of directors to manage a BID's activities and implement its district plan.

-- Allow a BID established under Chapter 2 to be funded by one or more assessments.

-- Specify a process for amending a BID plan, reauthorizing a BID, and dissolving a BID.

-- Provide that, to the extent not protected by the governmental immunity Act, a city or village that approved a BID would be immune from civil or administrative liability arising from action of the BID.

-- Require a BID to comply with the Open Meetings Act and the Freedom of Information Act.


MCL 125.981 et al. (H.B. 4735) - Legislative Analyst: P. Affholter

Proposed MCL 125.990-125.990m (H.B. 4736)


FISCAL IMPACT


The bills would have no fiscal impact on the State. Their impact on local units of government would be minimal, if any.


Date Completed: 9-28-01 - Fiscal Analyst: D. Zin



floor\hb4735 - Analysis available @ http://www.michiganlegislature.org

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.