HOUSE BILL No. 4480

March 27, 2003, Introduced by Reps. Robertson and DeRossett and referred to the Committee on Land Use and Environment.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1996 PA 381, entitled                                             

                                                                                

    "Brownfield redevelopment financing act,"                                   

                                                                                

    by amending the title and sections 2 and 13 (MCL 125.2652 and               

                                                                                

    125.2663), section 2 as amended by 2002 PA 254 and section 13 as            

                                                                                

    amended by 2002 PA 727.                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1                                 TITLE                                         

                                                                                

2                                                                                An act to authorize municipalities to create a brownfield                          

                                                                                

3   redevelopment authority to facilitate the implementation of                 

                                                                                

4   brownfield plans;  relating to the designation and treatment of             

                                                                                

5   to create brownfield redevelopment zones; to promote the                    

                                                                                

6   revitalization,  of environmentally distressed areas                        

                                                                                

7   redevelopment, and reuse of certain property; to prescribe the              

                                                                                

8   powers and duties of brownfield redevelopment authorities; to               

                                                                                

9   permit the issuance of bonds and other evidences of indebtedness            

                                                                                


                                                                                

1   by an authority; to authorize the acquisition and disposal of               

                                                                                

2   certain property; to authorize certain funds; to prescribe                  

                                                                                

3   certain powers and duties of certain state officers and agencies;           

                                                                                

4   and to authorize and permit the use of certain tax increment                

                                                                                

5   financing.                                                                  

                                                                                

6       Sec. 2.  As used in this act:                                               

                                                                                

7       (a) "Additional response activities" means response                         

                                                                                

8   activities identified as part of a brownfield plan that are in              

                                                                                

9   addition to baseline environmental assessment activities and due            

                                                                                

10  care activities for an eligible property.                                   

                                                                                

11      (b) "Authority" means a brownfield redevelopment authority                  

                                                                                

12  created under this act.                                                     

                                                                                

13      (c) "Baseline environmental assessment" means that term as                  

                                                                                

14  defined in section 20101 of the natural resources and                       

                                                                                

15  environmental protection act, 1994 PA 451, MCL 324.20101.                   

                                                                                

16      (d) "Baseline environmental assessment activities" means                    

                                                                                

17  those response activities identified as part of a brownfield plan           

                                                                                

18  that are necessary to complete a baseline environmental                     

                                                                                

19  assessment for an eligible property in the brownfield plan.                 

                                                                                

20      (e) "Blighted" means property that meets any of the following               

                                                                                

21  criteria:                                                                   

                                                                                

22                                                                               (i) Has been declared a public nuisance in accordance with a                        

                                                                                

23  local housing, building, plumbing, fire, or other related code or           

                                                                                

24  ordinance.                                                                  

                                                                                

25      (ii) Is an attractive nuisance to children because of                        

                                                                                

26  physical condition, use, or occupancy.                                      

                                                                                

27      (iii) Is a fire hazard or is otherwise dangerous to the                      


                                                                                

1   safety of persons or property.                                              

                                                                                

2       (iv) Has had the utilities, plumbing, heating, or sewerage                   

                                                                                

3   permanently disconnected, destroyed, removed, or rendered                   

                                                                                

4   ineffective so that the property is unfit for its intended use.             

                                                                                

5       (v) Is tax reverted property owned by a qualified local                     

                                                                                

6   governmental unit, by a county, or by this state.  The sale,                

                                                                                

7   lease, or transfer of tax reverted property by a qualified local            

                                                                                

8   governmental unit, county, or this state after the property's               

                                                                                

9   inclusion in a brownfield plan shall not result in the loss to              

                                                                                

10  the property of the status as blighted property for purposes of             

                                                                                

11  this act.                                                                   

                                                                                

12      (vi) Is property owned or under the control of a land bank                   

                                                                                

13  under the Michigan land bank and community development authority            

                                                                                

14  act or is property over which the land bank may exercise its                

                                                                                

15  authority.  The sale, lease, or transfer of the property by a               

                                                                                

16  land bank after the property's inclusion in a brownfield plan               

                                                                                

17  shall not result in the loss to the property of the status as               

                                                                                

18  blighted property for purposes of this act.                                 

                                                                                

19      (f) "Board" means the governing body of an authority.                       

                                                                                

20      (g) "Brownfield plan" means a plan that meets the                           

                                                                                

21  requirements of section 13 and is adopted under section 14.                 

                                                                                

22      (h) "Captured taxable value" means the amount in 1 year by                  

                                                                                

23  which the current taxable value of an eligible property subject             

                                                                                

24  to a brownfield plan, including the taxable value or assessed               

                                                                                

25  value, as appropriate, of the property for which specific taxes             

                                                                                

26  are paid in lieu of property taxes, exceeds the initial taxable             

                                                                                

27  value of that eligible property.  The state tax commission shall            


                                                                                

1   prescribe the method for calculating captured taxable value.                

                                                                                

2       (i) "Chief executive officer" means the mayor of a city, the                

                                                                                

3   village manager of a village, the township supervisor of a                  

                                                                                

4   township, or the county executive of a county or, if the county             

                                                                                

5   does not have an elected county executive, the chairperson of the           

                                                                                

6   county board of commissioners.                                              

                                                                                

7       (j) "Department" means the department of environmental                      

                                                                                

8   quality.                                                                    

                                                                                

9       (k) "Due care activities" means those response activities                   

                                                                                

10  identified as part of a brownfield plan that are necessary to               

                                                                                

11  allow the owner or operator of an eligible property in the plan             

                                                                                

12  to comply with the requirements of section 20107a of the natural            

                                                                                

13  resources and environmental protection act, 1994 PA 451,                    

                                                                                

14  MCL 324.20107a.                                                             

                                                                                

15                                                                               (l) "Eligible activities" or "eligible activity" does not                           

                                                                                

16  include activities related to multisource commercial hazardous              

                                                                                

17  waste disposal wells as that term is defined in section 62506a of           

                                                                                

18  the natural resources and environmental protection act, 1994                

                                                                                

19  PA 451, MCL 324.62506a, but means 1 or more of the following:               

                                                                                

20                                                                               (i) Baseline environmental assessment activities.                                   

                                                                                

21      (ii) Due care activities.                                                    

                                                                                

22      (iii) Additional response activities.                                        

                                                                                

23      (iv) For eligible activities on eligible property that was                   

                                                                                

24  used or is currently used for commercial, industrial, or                    

                                                                                

25  residential purposes that is in a qualified local governmental              

                                                                                

26  unit and is a facility, functionally obsolete, or blighted, and             

                                                                                

27  except for purposes of section 38d of the single business tax               


                                                                                

1   act, 1975 PA 228, MCL 208.38d, the following additional                     

                                                                                

2   activities:                                                                 

                                                                                

3       (A) Infrastructure improvements that directly benefit                       

                                                                                

4   eligible property.                                                          

                                                                                

5       (B) Demolition of structures that is not response activity                  

                                                                                

6   under section  201  20101 of the natural resources and                      

                                                                                

7   environmental protection act, 1994 PA 451, MCL 324.20101.                   

                                                                                

8       (C) Lead or asbestos abatement.                                             

                                                                                

9       (D) Site preparation that is not response activity under                    

                                                                                

10  section  201  20101 of the natural resources and environmental              

                                                                                

11  protection act, 1994 PA 451, MCL 324.20101.                                 

                                                                                

12      (E) Assistance to a land bank in clearing or quieting title                 

                                                                                

13  to and disposing of property owned or held by a land bank or                

                                                                                

14  property over which the land bank may exercise its authority and            

                                                                                

15  related activities of the land bank under the Michigan land bank            

                                                                                

16  and community development authority act.                                    

                                                                                

17      (v) Relocation of public buildings or operations for economic               

                                                                                

18  development purposes with prior approval of the Michigan economic           

                                                                                

19  development authority.                                                      

                                                                                

20      (m) "Eligible property" means property for which eligible                   

                                                                                

21  activities are identified under a brownfield plan that was used             

                                                                                

22  or is currently used for commercial, industrial, or residential             

                                                                                

23  purposes that is either in a qualified local governmental unit              

                                                                                

24  and is a facility, functionally obsolete, or blighted or is not             

                                                                                

25  in a qualified local governmental unit and is a facility, and               

                                                                                

26  includes parcels that are adjacent or contiguous to that property           

                                                                                

27  if the development of the adjacent and contiguous parcels is                


                                                                                

1   estimated to increase the captured taxable value of that                    

                                                                                

2   property.  Eligible property includes, to the extent included in            

                                                                                

3   the brownfield plan, personal property located on the property.             

                                                                                

4   Eligible property does not include qualified agricultural                   

                                                                                

5   property exempt under section 7ee of the general property tax               

                                                                                

6   act, 1893 PA 206, MCL 211.7ee, from the tax levied by a local               

                                                                                

7   school district for school operating purposes to the extent                 

                                                                                

8   provided under section 1211 of the revised school code, 1976                

                                                                                

9   PA 451, MCL 380.1211.                                                       

                                                                                

10      (n) "Facility" means that term as defined in section 20101 of               

                                                                                

11  the natural resources and environmental protection act, 1994                

                                                                                

12  PA 451, MCL 324.20101.                                                      

                                                                                

13      (o) "Fiscal year" means the fiscal year of the authority.                   

                                                                                

14      (p) "Functionally obsolete" means that the property is unable               

                                                                                

15  to be used to adequately perform the function for which it was              

                                                                                

16  intended due to a substantial loss in value resulting from                  

                                                                                

17  factors such as overcapacity, changes in technology, deficiencies           

                                                                                

18  or superadequacies in design, or other similar factors that                 

                                                                                

19  affect the property itself or the property's relationship with              

                                                                                

20  other surrounding property.                                                 

                                                                                

21      (q) "Governing body" means the elected body having                          

                                                                                

22  legislative powers of a municipality creating an authority under            

                                                                                

23  this act.                                                                   

                                                                                

24      (r) "Infrastructure improvements" means a street, road,                     

                                                                                

25  sidewalk, parking facility, pedestrian mall, alley, bridge,                 

                                                                                

26  sewer, sewage treatment plant, property designed to reduce,                 

                                                                                

27  eliminate, or prevent the spread of identified soil or                      


                                                                                

1   groundwater contamination, drainage system, waterway, waterline,            

                                                                                

2   water storage facility, rail line, utility line or pipeline, or             

                                                                                

3   other similar or related structure or improvement, together with            

                                                                                

4   necessary easements for the structure or improvement, owned or              

                                                                                

5   used by a public agency or functionally connected to similar or             

                                                                                

6   supporting property owned or used by a public agency, or designed           

                                                                                

7   and dedicated to use by, for the benefit of, or for the                     

                                                                                

8   protection of the health, welfare, or safety of the public                  

                                                                                

9   generally, whether or not used by a single business entity,                 

                                                                                

10  provided that any road, street, or bridge shall be continuously             

                                                                                

11  open to public access and that other property shall be located in           

                                                                                

12  public easements or rights-of-way and sized to accommodate                  

                                                                                

13  reasonably foreseeable development of eligible property in                  

                                                                                

14  adjoining areas.                                                            

                                                                                

15      (s) "Initial taxable value" means the taxable value of an                   

                                                                                

16  eligible property identified in and subject to a brownfield plan            

                                                                                

17  at the time the resolution adding that eligible property in the             

                                                                                

18  brownfield plan is adopted, as shown by the most recent                     

                                                                                

19  assessment roll for which equalization has been completed at the            

                                                                                

20  time the resolution is adopted.  Property exempt from taxation at           

                                                                                

21  the time the initial taxable value is determined shall be                   

                                                                                

22  included with the initial taxable value of zero.  Property for              

                                                                                

23  which a specific tax is paid in lieu of property tax shall not be           

                                                                                

24  considered exempt from taxation.  The state tax commission shall            

                                                                                

25  prescribe the method for calculating the initial taxable value of           

                                                                                

26  property for which a specific tax was paid in lieu of property              

                                                                                

27  tax.                                                                        


                                                                                

1       (t) "Land bank" means that term as defined in the Michigan                  

                                                                                

2   land bank and community development authority act.                          

                                                                                

3       (u)  (t)  "Local taxes" means all taxes levied other than                   

                                                                                

4   taxes levied for school operating purposes.                                 

                                                                                

5       (v)  (u)  "Municipality" means all of the following:                        

                                                                                

6                                                                                (i) A city.                                                                         

                                                                                

7       (ii) A village.                                                              

                                                                                

8       (iii) A township in those areas of the township that are                     

                                                                                

9   outside of a village.                                                       

                                                                                

10      (iv) A township in those areas of the township that are in a                 

                                                                                

11  village upon the concurrence by resolution of the village in                

                                                                                

12  which the zone would be located.                                            

                                                                                

13      (v) A county.                                                               

                                                                                

14      (w)  (v)  "Qualified local governmental unit" means that term               

                                                                                

15  as defined in the obsolete property rehabilitation act, 2000                

                                                                                

16  PA 146, MCL 125.2781 to 125.2797.                                           

                                                                                

17      (x)  (w)  "Qualified taxpayer" means that term as defined in                

                                                                                

18  sections 38d and 38g of the single business tax act, 1975 PA 228,           

                                                                                

19  MCL 208.38d and 208.38g.                                                    

                                                                                

20      (y)  (x)  "Remedial action plan" means a plan that meets both               

                                                                                

21  of the following requirements:                                              

                                                                                

22                                                                               (i) Is a remedial action plan as that term is defined in                            

                                                                                

23  section 20101 of the natural resources and environmental                    

                                                                                

24  protection act, 1994 PA 451, MCL 324.20101.                                 

                                                                                

25      (ii) Describes each individual activity to be conducted to                   

                                                                                

26  complete eligible activities and the associated costs of each               

                                                                                

27  individual activity.                                                        


                                                                                

1       (z)  (y)  "Response activity" means that term as defined in                 

                                                                                

2   section 20101 of the natural resources and environmental                    

                                                                                

3   protection act, 1994 PA 451, MCL 324.20101.                                 

                                                                                

4       (aa)  (z)  "Specific taxes" means a tax levied under 1974                   

                                                                                

5   PA 198, MCL 207.551 to 207.572; the commercial redevelopment act,           

                                                                                

6   1978 PA 255, MCL 207.651 to 207.668; the enterprise zone act,               

                                                                                

7   1985 PA 224, MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181             

                                                                                

8   to 211.182; the technology park development act, 1984 PA 385,               

                                                                                

9   MCL 207.701 to 207.718; the obsolete property rehabilitation act,           

                                                                                

10  2000 PA 146, MCL 125.2781 to 125.2797;  or  the neighborhood                

                                                                                

11  enterprise zone act, 1992 PA 147, MCL 207.771 to  207.787                   

                                                                                

12  207.786; or that portion of the tax levied under the tax reverted           

                                                                                

13  property clean title act that is not required to be distributed             

                                                                                

14  to a land bank.                                                             

                                                                                

15      (bb)  (aa)  "Tax increment revenues" means the amount of ad                 

                                                                                

16  valorem property taxes and specific taxes attributable to the               

                                                                                

17  application of the levy of all taxing jurisdictions upon the                

                                                                                

18  captured taxable value of each parcel of eligible property                  

                                                                                

19  subject to a brownfield plan and personal property located on               

                                                                                

20  that property.  Tax increment revenues exclude ad valorem                   

                                                                                

21  property taxes specifically levied for the payment of principal             

                                                                                

22  of and interest on either obligations approved by the electors or           

                                                                                

23  obligations pledging the unlimited taxing power of the local                

                                                                                

24  governmental unit, and specific taxes attributable to those ad              

                                                                                

25  valorem property taxes.  Tax increment revenues attributable to             

                                                                                

26  eligible property also exclude the amount of ad valorem property            

                                                                                

27  taxes or specific taxes captured by a downtown development                  


                                                                                

1   authority, tax increment finance authority, or local development            

                                                                                

2   finance authority if those taxes were captured by these other               

                                                                                

3   authorities on the date that eligible property became subject to            

                                                                                

4   a brownfield plan under this act.                                           

                                                                                

5       (cc)  (bb)  "Taxable value" means the value determined under                

                                                                                

6   section 27a of the general property tax act, 1893 PA 206,                   

                                                                                

7   MCL 211.27a.                                                                

                                                                                

8       (dd)  (cc)  "Taxes levied for school operating purposes"                    

                                                                                

9   means all of the following:                                                 

                                                                                

10                                                                               (i) The taxes levied by a local school district for operating                       

                                                                                

11  purposes.                                                                   

                                                                                

12      (ii) The taxes levied under the state education tax act, 1993                

                                                                                

13  PA 331, MCL 211.901 to 211.906.                                             

                                                                                

14      (iii) That portion of specific taxes attributable to taxes                   

                                                                                

15  described under subparagraphs (i) and (ii).                                  

                                                                                

16      (ee)  (dd)  "Work plan" means a plan that describes each                    

                                                                                

17  individual activity to be conducted to complete eligible                    

                                                                                

18  activities and the associated costs of each individual activity.            

                                                                                

19      (ff)  (ee)  "Zone" means, for an authority established before               

                                                                                

20  the effective date of the amendatory act that added                        

                                                                                

21  subdivision (r)  June 6, 2000, a brownfield redevelopment zone              

                                                                                

22  designated under this act.                                                  

                                                                                

23      Sec. 13.  (1) Subject to section 15, the board may implement                

                                                                                

24  a brownfield plan.  The brownfield plan may apply to 1 or more              

                                                                                

25  parcels of eligible property whether or not those parcels of                

                                                                                

26  eligible property are contiguous and may be amended to apply to             

                                                                                

27  additional parcels of eligible property.   If  Except as                    


                                                                                

1   otherwise authorized by this act, if more than 1 parcel of                  

                                                                                

2   eligible property is included within the plan, the tax increment            

                                                                                

3   revenues under the plan shall be determined individually for each           

                                                                                

4   parcel of eligible property.  Each plan or an amendment to a plan           

                                                                                

5   shall be approved by the governing body of the municipality and             

                                                                                

6   shall contain all of the following:                                         

                                                                                

7       (a) A description of the costs of the plan intended to be                   

                                                                                

8   paid for with the tax increment revenues.                                   

                                                                                

9       (b) A brief summary of the eligible activities that are                     

                                                                                

10  proposed for each eligible property or, for a plan for eligible             

                                                                                

11  properties qualified on the basis that the property is owned or             

                                                                                

12  held by a land bank or that the land bank may exercise its                  

                                                                                

13  authority over the property, a listing of all eligible activities           

                                                                                

14  that may be conducted for 1 or more of the eligible properties              

                                                                                

15  subject to the plan.                                                        

                                                                                

16      (c) An estimate of the captured taxable value and tax                       

                                                                                

17  increment revenues for each year of the plan from each parcel of            

                                                                                

18  eligible property, or from all eligible properties qualified on             

                                                                                

19  the basis that the property is owned or held by a land bank or              

                                                                                

20  that the land bank may exercise its authority over the property,            

                                                                                

21  and in the aggregate.  The plan may provide for the use of part             

                                                                                

22  or all of the captured taxable value, including deposits in the             

                                                                                

23  local site remediation revolving fund, but the portion intended             

                                                                                

24  to be used shall be clearly stated in the plan.  The plan shall             

                                                                                

25  not provide either for an exclusion from captured taxable value             

                                                                                

26  of a portion of the captured taxable value or for an exclusion of           

                                                                                

27  the tax levy of 1 or more taxing jurisdictions unless the tax               


                                                                                

1   levy is excluded from tax increment revenues in section  2(aa)              

                                                                                

2   2(bb), or unless the tax levy is excluded from capture under                

                                                                                

3   section 15.                                                                 

                                                                                

4       (d) The method by which the costs of the plan will be                       

                                                                                

5   financed, including a description of any advances made or                   

                                                                                

6   anticipated to be made for the costs of the plan from the                   

                                                                                

7   municipality.                                                               

                                                                                

8       (e) The maximum amount of note or bonded indebtedness to be                 

                                                                                

9   incurred, if any.                                                           

                                                                                

10      (f) The duration of the brownfield plan, which shall not                    

                                                                                

11  exceed the lesser of the period authorized under subsections (4)            

                                                                                

12  and (5) or 30 years.                                                        

                                                                                

13      (g) An estimate of the impact of tax increment financing on                 

                                                                                

14  the revenues of all taxing jurisdictions in which the eligible              

                                                                                

15  property is located.                                                        

                                                                                

16      (h) A legal description of each parcel of eligible property                 

                                                                                

17  to which the plan applies, a map showing the location and                   

                                                                                

18  dimensions of each eligible property, a statement of the                    

                                                                                

19  characteristics that qualify the property as eligible property,             

                                                                                

20  and a statement of whether personal property is included as part            

                                                                                

21  of the eligible property.  If the project is on property that is            

                                                                                

22  functionally obsolete, the taxpayer shall include, with the                 

                                                                                

23  application, an affidavit signed by a level 3 or level 4                    

                                                                                

24  assessor, that states that it is the assessor's expert opinion              

                                                                                

25  that the property is functionally obsolete and the underlying               

                                                                                

26  basis for that opinion.                                                     

                                                                                

27      (i) Estimates of the number of persons residing on each                     


                                                                                

1   eligible property to which the plan applies and the number of               

                                                                                

2   families and individuals to be displaced.  If occupied residences           

                                                                                

3   are designated for acquisition and clearance by the authority,              

                                                                                

4   the plan shall include a demographic survey of the persons to be            

                                                                                

5   displaced, a statistical description of the housing supply in the           

                                                                                

6   community, including the number of private and public units in              

                                                                                

7   existence or under construction, the condition of those in                  

                                                                                

8   existence, the number of owner-occupied and renter-occupied                 

                                                                                

9   units, the annual rate of turnover of the various types of                  

                                                                                

10  housing and the range of rents and sale prices, an estimate of              

                                                                                

11  the total demand for housing in the community, and the estimated            

                                                                                

12  capacity of private and public housing available to displaced               

                                                                                

13  families and individuals.                                                   

                                                                                

14      (j) A plan for establishing priority for the relocation of                  

                                                                                

15  persons displaced by implementation of the plan.                            

                                                                                

16      (k) Provision for the costs of relocating persons displaced                 

                                                                                

17  by implementation of the plan, and financial assistance and                 

                                                                                

18  reimbursement of expenses, including litigation expenses and                

                                                                                

19  expenses incident to the transfer of title, in accordance with              

                                                                                

20  the standards and provisions of the uniform relocation assistance           

                                                                                

21  and real property acquisition policies act of 1970, Public Law              

                                                                                

22  91-646, 84 Stat. 1894.                                                      

                                                                                

23                                                                               (l) A strategy for compliance with 1972 PA 227, MCL 213.321                         

                                                                                

24  to 213.332.                                                                 

                                                                                

25      (m) A description of proposed use of the local site                         

                                                                                

26  remediation revolving fund.                                                 

                                                                                

27      (n) Other material that the authority or governing body                     


                                                                                

1   considers pertinent.                                                        

                                                                                

2       (2) The percentage of all taxes levied on a parcel of                       

                                                                                

3   eligible property for school operating expenses that is captured            

                                                                                

4   and used under a brownfield plan and all tax increment finance              

                                                                                

5   plans under 1975 PA 197, MCL 125.1651 to 125.1681, the tax                  

                                                                                

6   increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

7   125.1830, or the local development financing act, 1986 PA 281,              

                                                                                

8   MCL 125.2151 to 125.2174, shall not be greater than the                     

                                                                                

9   combination of the plans' percentage capture and use of all local           

                                                                                

10  taxes levied for purposes other than for the payment of principal           

                                                                                

11  of and interest on either obligations approved by the electors or           

                                                                                

12  obligations pledging the unlimited taxing power of the local unit           

                                                                                

13  of government.  This subsection shall apply only when taxes                 

                                                                                

14  levied for school operating purposes are subject to capture under           

                                                                                

15  section 15.                                                                 

                                                                                

16      (3) Except as provided in this subsection and                               

                                                                                

17  subsections (5), (15), and (16), tax increment revenues related             

                                                                                

18  to a brownfield plan shall be used only for costs of eligible               

                                                                                

19  activities attributable to the eligible property, the captured              

                                                                                

20  taxable value of which produces the tax increment revenues,                 

                                                                                

21  including the cost of principal of and interest on any obligation           

                                                                                

22  issued by the authority to pay the costs of eligible activities             

                                                                                

23  attributable to the eligible property, and the reasonable costs             

                                                                                

24  of preparing a work plan or remedial action plan for the eligible           

                                                                                

25  property, including the actual cost of the review of the work               

                                                                                

26  plan or remedial action plan under section 15.  For property                

                                                                                

27  owned or under the control of a land bank or property over which            


                                                                                

1   the land bank may exercise its authority, tax increment revenues            

                                                                                

2   related to a brownfield plan may be used for eligible activities            

                                                                                

3   attributable to any eligible property owned or under the control            

                                                                                

4   of the land bank or property over which the land bank may                   

                                                                                

5   exercise its authority, the cost of principal of and interest on            

                                                                                

6   any obligation issued by the authority to pay the costs of                  

                                                                                

7   eligible activities, the reasonable costs of preparing a work               

                                                                                

8   plan or remedial action plan, and the actual cost of the review             

                                                                                

9   of the work plan or remedial action plan under section 15.                  

                                                                                

10      (4) Except as provided in subsection (5), a brownfield plan                 

                                                                                

11  shall not authorize the capture of tax increment revenue from               

                                                                                

12  eligible property after the year in which the total amount of tax           

                                                                                

13  increment revenues captured is equal to the sum of the costs  of            

                                                                                

14  eligible activities attributable to the eligible property                   

                                                                                

15  including the cost of principal of and interest on any obligation           

                                                                                

16  issued by the authority to pay the costs of eligible activities             

                                                                                

17  on the eligible property, and the reasonable cost of preparing a            

                                                                                

18  work plan or remedial action plan for eligible property, and the            

                                                                                

19  actual cost of the department's review of the work plan or                  

                                                                                

20  remedial action plan  permitted to be funded with tax increment             

                                                                                

21  revenues under this act.                                                    

                                                                                

22      (5) A brownfield plan may authorize the capture of additional               

                                                                                

23  tax increment revenue from an eligible property in excess of the            

                                                                                

24  amount authorized under subsection (4) during the time of capture           

                                                                                

25  for the purpose of paying the costs  of eligible activities                 

                                                                                

26  permitted under subsection (3), or for not more than 5 years                

                                                                                

27  after the time that capture is required for the purpose of paying           


                                                                                

1   the costs  of eligible activities  permitted under                          

                                                                                

2   subsection (3), or both.  Excess revenues captured under this               

                                                                                

3   subsection shall be deposited in the local site remediation                 

                                                                                

4   revolving fund created under section 8 and used for the purposes            

                                                                                

5   authorized in section 8.  If tax increment revenues attributable            

                                                                                

6   to taxes levied for school operating purposes from eligible                 

                                                                                

7   property are captured by the authority for purposes authorized              

                                                                                

8   under subsection (3), the tax increment revenues captured for               

                                                                                

9   deposit in the local site remediation revolving fund also may               

                                                                                

10  include tax increment revenues attributable to taxes levied for             

                                                                                

11  school operating purposes in an amount not greater than the tax             

                                                                                

12  increment revenues levied for school operating purposes captured            

                                                                                

13  from the eligible property by the authority for the purposes                

                                                                                

14  authorized under subsection (3).  Excess tax increment revenues             

                                                                                

15  from taxes levied for school operating purposes for eligible                

                                                                                

16  activities authorized under subsection (15) by the Michigan                 

                                                                                

17  economic growth authority shall not be captured for deposit in              

                                                                                

18  the local site remediation revolving fund.                                  

                                                                                

19      (6) An authority shall not expend tax increment revenues to                 

                                                                                

20  acquire or prepare eligible property, unless the acquisition or             

                                                                                

21  preparation is an eligible activity.                                        

                                                                                

22      (7) Costs of eligible activities attributable to eligible                   

                                                                                

23  property include all costs that are necessary or related to a               

                                                                                

24  release from the eligible property, including eligible activities           

                                                                                

25  on properties affected by a release from the eligible property.             

                                                                                

26  For purposes of this subsection, "release" means that term as               

                                                                                

27  defined in section 20101 of the natural resources and                       


                                                                                

1   environmental protection act, 1994 PA 451, MCL 324.20101.                   

                                                                                

2       (8) Costs of a response activity paid with tax increment                    

                                                                                

3   revenues that are captured pursuant to subsection (3) may be                

                                                                                

4   recovered from a person who is liable for the costs of eligible             

                                                                                

5   activities at an eligible property.  This state or an authority             

                                                                                

6   may undertake cost recovery for tax increment revenue captured.             

                                                                                

7   Before an authority or this state may institute a cost recovery             

                                                                                

8   action, it must provide the other with 120 days' notice.  This              

                                                                                

9   state or an authority that recovers costs under this subsection             

                                                                                

10  shall apply those recovered costs to the following, in the                  

                                                                                

11  following order of priority:                                                

                                                                                

12      (a) The reasonable attorney fees and costs incurred by this                 

                                                                                

13  state or an authority in obtaining the cost recovery.                       

                                                                                

14      (b) One of the following:                                                   

                                                                                

15                                                                               (i) If an authority undertakes the cost recovery action, the                        

                                                                                

16  authority shall deposit the remaining recovered funds into the              

                                                                                

17  local site remediation fund created pursuant to section 8, if               

                                                                                

18  such a fund has been established by the authority.  If a local              

                                                                                

19  site remediation fund has not been established, the authority               

                                                                                

20  shall disburse the remaining recovered funds to the local taxing            

                                                                                

21  jurisdictions in the proportion that the local taxing                       

                                                                                

22  jurisdictions' taxes were captured.                                         

                                                                                

23      (ii) If this state undertakes a cost recovery action, this                   

                                                                                

24  state shall deposit the remaining recovered funds into the                  

                                                                                

25  revitalization revolving loan fund established under                        

                                                                                

26  section 20108a of the natural resources and environmental                   

                                                                                

27  protection act, 1994 PA 451, MCL 324.20108a.                                


                                                                                

1       (iii) If this state and an authority each undertake a cost                   

                                                                                

2   recovery action, undertake a cost recovery action jointly, or 1             

                                                                                

3   on behalf of the other, the amount of any remaining recovered               

                                                                                

4   funds shall be deposited pursuant to subparagraphs (i) and (ii)              

                                                                                

5   in the proportion that the tax increment revenues being recovered           

                                                                                

6   represent local taxes and taxes levied for school operating                 

                                                                                

7   purposes, respectively.                                                     

                                                                                

8       (9) Approval of the brownfield plan or an amendment to a                    

                                                                                

9   brownfield plan shall be in accordance with the notice and                  

                                                                                

10  approval provisions of this section and section 14.                         

                                                                                

11      (10) Before approving a brownfield plan for an eligible                     

                                                                                

12  property, the governing body shall hold a public hearing on the             

                                                                                

13  brownfield plan.  Notice of the time and place of the hearing               

                                                                                

14  shall be given by publication twice in a newspaper of general               

                                                                                

15  circulation designated by the municipality, the first of which              

                                                                                

16  shall be not less than 20 or more than 40 days before the date              

                                                                                

17  set for the hearing.                                                        

                                                                                

18      (11) Notice of the time and place of the hearing on a                       

                                                                                

19  brownfield plan shall contain all of the following:                         

                                                                                

20      (a) A description of the property to which the plan applies                 

                                                                                

21  in relation to existing or proposed highways, streets, streams,             

                                                                                

22  or otherwise.                                                               

                                                                                

23      (b) A statement that maps, plats, and a description of the                  

                                                                                

24  brownfield plan are available for public inspection at a place              

                                                                                

25  designated in the notice and that all aspects of the brownfield             

                                                                                

26  plan are open for discussion at the public hearing required by              

                                                                                

27  this  subsection  section.                                                  


                                                                                

1       (c) Any other information that the governing body considers                 

                                                                                

2   appropriate.                                                                

                                                                                

3       (12) At the time set for the hearing on the brownfield plan                 

                                                                                

4   required under subsection (10), the governing body shall provide            

                                                                                

5   an opportunity for interested persons to be heard and shall                 

                                                                                

6   receive and consider communications in writing with reference to            

                                                                                

7   the brownfield plan.  The governing body shall make and preserve            

                                                                                

8   a record of the public hearing, including all data presented at             

                                                                                

9   the hearing.                                                                

                                                                                

10      (13) Not less than 20 days before the hearing on the                        

                                                                                

11  brownfield plan, the governing body shall provide notice of the             

                                                                                

12  hearing to the taxing jurisdictions that levy taxes subject to              

                                                                                

13  capture under this act.  The authority shall fully inform the               

                                                                                

14  taxing jurisdictions about the fiscal and economic implications             

                                                                                

15  of the proposed brownfield plan.  At that hearing, an official              

                                                                                

16  from a taxing jurisdiction with millage that would be subject to            

                                                                                

17  capture under this act has the right to be heard in regard to the           

                                                                                

18  adoption of the brownfield plan.                                            

                                                                                

19      (14) The authority shall not enter into agreements with the                 

                                                                                

20  taxing jurisdictions and the governing body of the municipality             

                                                                                

21  to share a portion of the captured taxable value of an eligible             

                                                                                

22  property.  Upon adoption of the plan, the collection and                    

                                                                                

23  transmission of the amount of tax increment revenues as specified           

                                                                                

24  in this act shall be binding on all taxing units levying ad                 

                                                                                

25  valorem property taxes or specific taxes against property located           

                                                                                

26  in the zone.                                                                

                                                                                

27      (15) If a brownfield plan includes the capture of taxes                     


                                                                                

1   levied for school operating purposes or the use of tax increment            

                                                                                

2   revenues related to a brownfield plan for the cost of eligible              

                                                                                

3   activities attributable to more than 1 eligible property that is            

                                                                                

4   adjacent and contiguous to all other eligible properties covered            

                                                                                

5   by the development agreement, whether or not the captured taxes             

                                                                                

6   are levied for school operating purposes, approval of a work plan           

                                                                                

7   by the Michigan economic growth authority before January 1, 2008            

                                                                                

8   to use school operating taxes and a development agreement between           

                                                                                

9   the municipality and an owner or developer of eligible property             

                                                                                

10  are required if the revenues will be used for infrastructure                

                                                                                

11  improvements that directly benefit eligible property, demolition            

                                                                                

12  of structures that is not response activity under part 201 of the           

                                                                                

13  natural resources and environmental protection act, 1994 PA 451,            

                                                                                

14  MCL 324.20101 to 324.20142, lead or asbestos abatement, or site             

                                                                                

15  preparation that is not response activity under section  201                

                                                                                

16  20101 of the natural resources and environmental protection act,            

                                                                                

17  1994 PA 451, MCL 324.20101.  The eligible activities to be                  

                                                                                

18  conducted described in this subsection shall be consistent with             

                                                                                

19  the work plan submitted by the authority to the Michigan economic           

                                                                                

20  growth authority.  The department's approval is not required for            

                                                                                

21  the capture of taxes levied for school operating purposes for               

                                                                                

22  eligible activities described in this subsection.                           

                                                                                

23      (16) A brownfield authority may reimburse reasonable and                    

                                                                                

24  actual administrative and operating expenses that include, but              

                                                                                

25  are not limited to, baseline environmental assessments, due care            

                                                                                

26  activities, and additional response activities, related directly            

                                                                                

27  to work conducted by the authority on prospective eligible                  


                                                                                

1   properties prior to approval of the brownfield plan and on                  

                                                                                

2   eligible properties and for eligible activities after the                   

                                                                                

3   approval of the brownfield plan, only from captured local taxes             

                                                                                

4   not to exceed $75,000.00 for each authority in each fiscal year.            

                                                                                

5   Reasonable and actual administrative and operating expenses do              

                                                                                

6   not include reasonable costs of preparing a work plan or remedial           

                                                                                

7   action plan or the cost of the review of a work plan for which              

                                                                                

8   taxes may be used under  section 13(3)  subsection (3).                     

                                                                                

9       (17) A brownfield authority may reimburse advances made by a                

                                                                                

10  municipality under section 7(3), a land bank, or any other person           

                                                                                

11  or entity for costs of eligible activities with any source of               

                                                                                

12  revenue available for use of the brownfield authority under this            

                                                                                

13  act and may enter into agreements related to those                          

                                                                                

14  reimbursements.                                                             

                                                                                

15      Enacting section 1.  This amendatory act does not take                      

                                                                                

16  effect unless all of the following bills of the 92nd Legislature            

                                                                                

17  are enacted into law:                                                       

                                                                                

18      (a) Senate Bill No. _____ or House Bill No. 4481  (request                  

                                                                                

19  no. 00033'03).                                                              

                                                                                

20      (b) Senate Bill No. _____ or House Bill No. 4482  (request                  

                                                                                

21  no. 00033'03 a).                                                            

                                                                                

22      (c) Senate Bill No. _____ or House Bill No. 4488  (request                  

                                                                                

23  no. 00034'03).                                                              

                                                                                

24      (d) Senate Bill No. _____ or House Bill No. 4483  (request                  

                                                                                

25  no. 00035'03).