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HB-5471, As Passed House, December 7, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5471

A bill to amend 1996 PA 381, entitled

"Brownfield redevelopment financing act,"

by amending sections 2, 13, and 15 (MCL 125.2652, 125.2663, and

125.2665), as amended by 2005 PA 101.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Additional response activities" means response activities

identified as part of a brownfield plan that are in addition to

baseline environmental assessment activities and due care

activities for an eligible property.

(b) "Authority" means a brownfield redevelopment authority

created under this act.

defined in section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(d) "Baseline environmental assessment activities" means those

response activities identified as part of a brownfield plan that

are necessary to complete a baseline environmental assessment for

an eligible property in the brownfield plan.

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

criteria:

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

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

ordinance.

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

condition, use, or occupancy.

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

of persons or property.

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

permanently disconnected, destroyed, removed, or rendered

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

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

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

or transfer of tax reverted property by a qualified local

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

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

property of the status as blighted property for purposes of this

act.

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

track authority under the land bank fast track act, whether or not

located within a qualified local governmental unit. Property

included within a brownfield plan prior to the date it meets the

requirements of this subdivision to be eligible property shall be

considered to become eligible property as of the date the property

is determined to have been or becomes qualified as, or is combined

with, other eligible property. The sale, lease, or transfer of the

property by a land bank fast track authority after the property's

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

property of the status as blighted property for purposes of this

act.

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

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

of section 13 and is adopted under section 14.

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

which the current taxable value of an eligible property subject to

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

as appropriate, of the property for which specific taxes are paid

in lieu of property taxes, exceeds the initial taxable value of

that eligible property. The state tax commission shall prescribe

the method for calculating captured taxable value.

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

village manager of a village, the township supervisor of a

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

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

county board of commissioners.

(j) "Department" means the department of environmental

quality.

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

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

the owner or operator of an eligible property in the plan to comply

with the requirements of section 20107a of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.20107a.

(l) "Economic opportunity zone" means 1 or more parcels of

property that meet all of the following:

(i) That together are 40 or more acres in size.

(ii) That contain a manufacturing facility that consists of

500,000 or more square feet.

(iii) That are located in a municipality that has a population

of 30,000 or less and that is contiguous to a qualified local

governmental unit.

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

include activities related to multisource commercial hazardous

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

the natural resources and environmental protection act, 1994 PA

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

(i) Baseline environmental assessment activities.

(ii) Due care activities.

(iii) Additional response activities.

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

or is currently used for commercial, industrial, or residential

purposes that is in a qualified local governmental unit, or that

is owned or under the control of a land bank fast track authority,

or that is located in an economic opportunity zone, and is a

facility, functionally obsolete, or blighted, and except for

purposes of section 38d of the single business tax act, 1975 PA

228, MCL 208.38d, the following additional activities:

(A) Infrastructure improvements that directly benefit eligible

property.

(B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(E) Assistance to a land bank fast track authority in clearing

or quieting title to, or selling or otherwise conveying, property

owned or under the control of a land bank fast track authority.

(v) Relocation of public buildings or operations for economic

development purposes with prior approval of the Michigan economic

development authority.

(vi) For eligible activities on eligible property that is a

qualified facility that is not located in a qualified local

governmental unit and that is a facility, functionally obsolete, or

blighted, the following additional activities:

(A) Infrastructure improvements that directly benefit eligible

property.

(B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(n) ~~(m)~~ "Eligible property" means property for which

eligible activities are identified under a brownfield plan that was

used or is currently used for commercial, industrial, or

residential purposes that is either in a qualified local

governmental unit and is a facility, functionally obsolete, or

blighted or is not in a qualified local governmental unit and is a

facility, and includes parcels that are adjacent or contiguous to

that property if the development of the adjacent and contiguous

parcels is estimated to increase the captured taxable value of that

property or tax reverted property owned or under the control of a

land bank fast track authority. Eligible property includes, to the

extent included in the brownfield plan, personal property located

on the property. Eligible property does not include qualified

agricultural property exempt under section 7ee of the general

property tax act, 1893 PA 206, MCL 211.7ee, from the tax levied by

a local school district for school operating purposes to the extent

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

451, MCL 380.1211.

(o) ~~(n)~~ "Facility" means that term as defined in section

20101 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.20101.

(p) ~~(o)~~ "Fiscal year" means the fiscal year of the

authority.

(q) ~~(p)~~ "Functionally obsolete" means that the property is

unable to be used to adequately perform the function for which it

was intended due to a substantial loss in value resulting from

factors such as overcapacity, changes in technology, deficiencies

or superadequacies in design, or other similar factors that affect

the property itself or the property's relationship with other

surrounding property.

(r) ~~(q)~~ "Governing body" means the elected body having

legislative powers of a municipality creating an authority under

this act.

(s) ~~(r)~~ "Infrastructure improvements" means a street, road,

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

sewage treatment plant, property designed to reduce, eliminate, or

prevent the spread of identified soil or groundwater contamination,

drainage system, waterway, waterline, water storage facility, rail

line, utility line or pipeline, or other similar or related

structure or improvement, together with necessary easements for the

structure or improvement, owned or used by a public agency or

functionally connected to similar or supporting property owned or

used by a public agency, or designed and dedicated to use by, for

the benefit of, or for the protection of the health, welfare, or

safety of the public generally, whether or not used by a single

business entity, provided that any road, street, or bridge shall be

continuously open to public access and that other property shall be

located in public easements or rights-of-way and sized to

accommodate reasonably foreseeable development of eligible property

in adjoining areas.

(t) ~~(s)~~ "Initial taxable value" means the taxable value of

an eligible property identified in and subject to a brownfield plan

at the time the resolution adding that eligible property in the

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

assessment roll for which equalization has been completed at the

time the resolution is adopted or, if provided by the brownfield

plan, by the next assessment roll for which equalization will be

completed following the date the resolution adding that eligible

property in the brownfield plan is adopted. Property exempt from

taxation at the time the initial taxable value is determined shall

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

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

considered exempt from taxation. The state tax commission shall

prescribe the method for calculating the initial taxable value of

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

(u) ~~(t)~~ "Land bank fast track authority" means an authority

created under the land bank fast track act, 2003 PA 258, MCL

124.751 to 124.774.

(v) ~~(u)~~ "Local taxes" means all taxes levied other than

taxes levied for school operating purposes.

(w) ~~(v)~~ "Municipality" means all of the following:

(i) A city.

(ii) A village.

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

of a village.

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

village upon the concurrence by resolution of the village in which

the zone would be located.

(v) A county.

(x) ~~(w)~~ "Owned or under the control of" means that a land

bank fast track authority has 1 or more of the following:

(i) An ownership interest in the property.

(ii) A tax lien on the property.

(iii) A tax deed to the property.

(iv) A contract with this state or a political subdivision of

this state to enforce a lien on the property.

(v) A right to collect delinquent taxes, penalties, or

interest on the property.

(vi) The ability to exercise its authority over the property.

(y) ~~(x)~~ "Qualified facility" means a landfill facility area

of 140 or more contiguous acres that is located in a city and that

contains a landfill, a material recycling facility, and an asphalt

plant that are no longer in operation.

(z) ~~(y)~~ "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

146, MCL 125.2781 to 125.2797.

(aa) ~~(z)~~ "Qualified taxpayer" means that term as defined in

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

MCL 208.38d and 208.38g.

(bb) ~~(aa)~~ "Remedial action plan" means a plan that meets

both of the following requirements:

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

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(ii) Describes each individual activity to be conducted to

complete eligible activities and the associated costs of each

individual activity.

(cc) ~~(bb)~~ "Response activity" means that term as defined in

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(dd) ~~(cc)~~ "Specific taxes" means a tax levied under 1974 PA

198, MCL 207.551 to 207.572; the commercial redevelopment act, 1978

PA 255, MCL 207.651 to 207.668; the enterprise zone act, 1985 PA

224, MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182;

the technology park development act, 1984 PA 385, MCL 207.701 to

207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL

125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA

147, MCL 207.771 to 207.786; or that portion of the tax levied

under the tax reverted ~~property~~ clean title act, 2003 PA 260, MCL

211.1021 to 211.1026, that is not required to be distributed to a

land bank fast track authority.

(ee) ~~(dd)~~ "Tax increment revenues" means the amount of ad

valorem property taxes and specific taxes attributable to the

application of the levy of all taxing jurisdictions upon the

captured taxable value of each parcel of eligible property subject

to a brownfield plan and personal property located on that

property. Tax increment revenues exclude ad valorem property taxes

specifically levied for the payment of principal of and interest on

either obligations approved by the electors or obligations pledging

the unlimited taxing power of the local governmental unit, and

specific taxes attributable to those ad valorem property taxes. Tax

increment revenues attributable to eligible property also exclude

the amount of ad valorem property taxes or specific taxes captured

by a downtown development authority, tax increment finance

authority, or local development finance authority if those taxes

were captured by these other authorities on the date that eligible

property became subject to a brownfield plan under this act.

(ff) ~~(ee)~~ "Taxable value" means the value determined under

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

211.27a.

(gg) ~~(ff)~~ "Taxes levied for school operating purposes" means

all of the following:

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

purposes.

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

PA 331, MCL 211.901 to 211.906.

(iii) That portion of specific taxes attributable to taxes

described under subparagraphs (i) and (ii).

(hh) ~~(gg)~~ "Work plan" means a plan that describes each

individual activity to be conducted to complete eligible activities

and the associated costs of each individual activity.

(ii) ~~(hh)~~ "Zone" means, for an authority established before

June 6, 2000, a brownfield redevelopment zone designated under this

act.

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

brownfield plan. The brownfield plan may apply to 1 or more parcels

of eligible property whether or not those parcels of eligible

property are contiguous and may be amended to apply to additional

parcels of eligible property. Except as otherwise authorized by

this act, if more than 1 parcel of eligible property is included

within the plan, the tax increment revenues under the plan shall be

determined individually for each parcel of eligible property. Each

plan or an amendment to a plan shall be approved by the governing

body of the municipality and shall contain all of the following:

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

for with the tax increment revenues or, for a plan for eligible

properties qualified on the basis that the property is owned or

under the control of a land bank fast track authority, a listing of

all eligible activities that may be conducted for 1 or more of the

eligible properties subject to the plan.

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

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

properties qualified on the basis that the property is owned or

under the control of a land bank fast track authority, a brief

summary of eligible activities conducted for 1 or more of the

eligible properties subject to the plan.

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

eligible property, or from all eligible properties qualified on the

basis that the property is owned or under the control of a land

bank fast track authority, and in the aggregate. The plan may

provide for the use of part or all of the captured taxable value,

including deposits in the local site remediation revolving fund,

but the portion intended to be used shall be clearly stated in the

plan. The plan shall not provide either for an exclusion from

captured taxable value of a portion of the captured taxable value

or for an exclusion of the tax levy of 1 or more taxing

jurisdictions unless the tax levy is excluded from tax increment

revenues in section ~~2(cc)~~ 2(dd), or unless the tax levy is

excluded from capture under section 15.

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

financed, including a description of any advances made or

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

municipality.

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

incurred, if any.

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

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

and (5) or 30 years.

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

the revenues of all taxing jurisdictions in which the eligible

property is located.

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

which the plan applies, a map showing the location and dimensions

of each eligible property, a statement of the characteristics that

qualify the property as eligible property, and a statement of

whether personal property is included as part of the eligible

property. If the project is on property that is functionally

obsolete, the taxpayer shall include, with the application, an

affidavit signed by a level 3 or level 4 assessor, that states that

it is the assessor's expert opinion that the property is

functionally obsolete and the underlying basis for that opinion.

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

eligible property to which the plan applies and the number of

families and individuals to be displaced. If occupied residences

are designated for acquisition and clearance by the authority, the

plan shall include a demographic survey of the persons to be

displaced, a statistical description of the housing supply in the

community, including the number of private and public units in

existence or under construction, the condition of those in

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

the annual rate of turnover of the various types of housing and the

range of rents and sale prices, an estimate of the total demand for

housing in the community, and the estimated capacity of private and

public housing available to displaced families and individuals.

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

persons displaced by implementation of the plan.

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

implementation of the plan, and financial assistance and

reimbursement of expenses, including litigation expenses and

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

standards and provisions of the uniform relocation assistance and

real property acquisition policies act of 1970, Public Law 91-646.

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

213.332.

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

remediation revolving fund.

(n) Other material that the authority or governing body

considers pertinent.

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

property for school operating expenses that is captured and used

under a brownfield plan and all tax increment finance plans under

1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance

authority act, 1980 PA 450, MCL 125.1801 to 125.1830, or the local

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,

shall not be greater than the combination of the plans' percentage

capture and use of all local taxes levied for purposes other than

for the payment of principal of and interest on either obligations

approved by the electors or obligations pledging the unlimited

taxing power of the local unit of government. This subsection shall

apply only when taxes levied for school operating purposes are

subject to capture under section 15.

(3) Except as provided in this subsection and subsections (5),

(15), and (16), tax increment revenues related to a brownfield plan

shall be used only for costs of eligible activities attributable to

the eligible property, the captured taxable value of which produces

the tax increment revenues, including the cost of principal of and

interest on any obligation issued by the authority to pay the costs

of eligible activities attributable to the eligible property, and

the reasonable costs of preparing a work plan or remedial action

plan for the eligible property, including the actual cost of the

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

For property owned or under the control of a land bank fast track

authority, tax increment revenues related to a brownfield plan may

be used for eligible activities attributable to any eligible

property owned or under the control of the land bank fast track

authority, the cost of principal of and interest on any obligation

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

the reasonable costs of preparing a work plan or remedial action

plan, and the actual cost of the review of the work plan or

remedial action plan under section 15. Tax increment revenues

captured from taxes levied by this state under the state education

tax act, 1993 PA 331, MCL 211.901 to 211.906, or taxes levied by a

local school district shall not be used for eligible activities

described in section 2(l)(iv~~)(E)~~ 2(m)(iv)(E).

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

shall not authorize the capture of tax increment revenue from

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

increment revenues captured is equal to the sum of the costs

permitted to be funded with tax increment revenues under this act.

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

tax increment revenue from an eligible property in excess of the

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

for the purpose of paying the costs permitted under subsection (3),

or for not more than 5 years after the time that capture is

required for the purpose of paying the costs permitted under

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

subsection shall be deposited in the local site remediation

revolving fund created under section 8 and used for the purposes

authorized in section 8. If tax increment revenues attributable to

taxes levied for school operating purposes from eligible property

are captured by the authority for purposes authorized under

subsection (3), the tax increment revenues captured for deposit in

the local site remediation revolving fund also may include tax

increment revenues attributable to taxes levied for school

operating purposes in an amount not greater than the tax increment

revenues levied for school operating purposes captured from the

eligible property by the authority for the purposes authorized

under subsection (3). Excess tax increment revenues from taxes

levied for school operating purposes for eligible activities

authorized under subsection (15) by the Michigan economic growth

authority shall not be captured for deposit in the local site

remediation revolving fund.

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

acquire or prepare eligible property, unless the acquisition or

preparation is an eligible activity.

(7) Costs of eligible activities attributable to eligible

property include all costs that are necessary or related to a

release from the eligible property, including eligible activities

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

purposes of this subsection, "release" means that term as defined

in section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

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

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

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

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

undertake cost recovery for tax increment revenue captured. Before

an authority or this state may institute a cost recovery action, it

must provide the other with 120 days' notice. This state or an

authority that recovers costs under this subsection shall apply

those recovered costs to the following, in the following order of

priority:

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

state or an authority in obtaining the cost recovery.

(b) One of the following:

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

authority shall deposit the remaining recovered funds into the

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

a fund has been established by the authority. If a local site

remediation fund has not been established, the authority shall

disburse the remaining recovered funds to the local taxing

jurisdictions in the proportion that the local taxing

jurisdictions' taxes were captured.

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

state shall deposit the remaining recovered funds into the

revitalization revolving loan fund established under section 20108a

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20108a.

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

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

behalf of the other, the amount of any remaining recovered funds

shall be deposited pursuant to subparagraphs (i) and (ii) in the

proportion that the tax increment revenues being recovered

represent local taxes and taxes levied for school operating

purposes, respectively.

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

brownfield plan shall be in accordance with the notice and approval

provisions of this section and section 14.

(10) Before approving a brownfield plan for an eligible

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

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

be given by publication twice in a newspaper of general circulation

designated by the municipality, the first of which shall be not

less than 20 or more than 40 days before the date set for the

hearing.

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

brownfield plan shall contain all of the following:

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

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

otherwise.

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

brownfield plan are available for public inspection at a place

designated in the notice and that all aspects of the brownfield

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

section.

appropriate.

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

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

opportunity for interested persons to be heard and shall receive

and consider communications in writing with reference to the

brownfield plan. The governing body shall make and preserve a

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

hearing.

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

brownfield plan, the governing body shall provide notice of the

hearing to the taxing jurisdictions that levy taxes subject to

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

jurisdictions about the fiscal and economic implications of the

proposed brownfield plan. At that hearing, an official from a

taxing jurisdiction with millage that would be subject to capture

under this act has the right to be heard in regard to the adoption

of the brownfield plan.

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

taxing jurisdictions and the governing body of the municipality to

share a portion of the captured taxable value of an eligible

property. Upon adoption of the plan, the collection and

transmission of the amount of tax increment revenues as specified

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

property taxes or specific taxes against property located in the

zone.

(15) Except as provided by subsection (18), if a brownfield

plan includes the capture of taxes levied for school operating

purposes or the use of tax increment revenues related to a

brownfield plan for the cost of eligible activities attributable to

more than 1 eligible property that is adjacent and contiguous to

all other eligible properties covered by the development agreement,

whether or not the captured taxes are levied for school operating

purposes, approval of a work plan by the Michigan economic growth

authority before January 1, 2008 to use school operating taxes and

a development agreement between the municipality and an owner or

developer of eligible property are required if the revenues will be

used for infrastructure improvements that directly benefit eligible

property, demolition of structures that is not response activity

under part 201 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101 to 324.20142, lead or

asbestos abatement, or site preparation that is not response

activity under section 20101 of the natural resources and

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

eligible activities to be conducted described in this subsection

shall be consistent with the work plan submitted by the authority

to the Michigan economic growth authority. The department's

approval is not required for the capture of taxes levied for school

operating purposes for eligible activities described in this

subsection.

(16) The limitations of section 15(1) upon use of tax

increment revenues by an authority shall not apply to the following

costs and expenses:

(a) In each fiscal year of the authority, $75,000.00 for the

following purposes for tax increment revenues attributable to local

taxes:

(i) Reasonable and actual administrative and operating expenses

of the authority.

(ii) Baseline environmental assessments, due care activities,

and additional response activities related directly to work

conducted on prospective eligible properties prior to approval of

the brownfield plan.

(b) Reasonable costs of preparing a work plan or remedial

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

increment revenues may be used under section 13(3).

(17) A brownfield authority may reimburse advances, with or

without interest, made by a municipality under section 7(3), a land

bank fast track authority, or any other person or entity for costs

of eligible activities with any source of revenue available for use

of the brownfield authority under this act and may enter into

agreements related to those reimbursements. A reimbursement

agreement for these purposes and the obligations under that

reimbursement agreement shall not be subject to section 12 or the

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

141.2821.

(18) If a brownfield plan includes the capture of taxes levied

for school operating purposes, approval of a work plan by the

Michigan economic growth authority in the manner required under

section 15(14) to (16) is required in order to use tax increment

revenues attributable to taxes levied for school operating purposes

for purposes of eligible activities described in section 2(l)(iv~~)(E)~~

2(m)(iv)(E) for 1 or more parcels of eligible property. The work

plan to be submitted to the Michigan economic growth authority

under this subsection shall be in a form prescribed by the Michigan

economic growth authority. The eligible activities to be conducted

and described in this subsection shall be consistent with the work

plan submitted by the authority to the Michigan economic growth

authority. The department's approval is not required for the

capture of taxes levied for school operating purposes for eligible

activities described in this section.

Sec. 15. (1) An authority shall not do any of the following:

(a) For eligible activities not described in section 13(15),

use taxes levied for school operating purposes captured from

eligible property unless the eligible activities to be conducted on

the eligible property are eligible activities under part 201 of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.20101 to 324.20142, consistent with a work plan or remedial

action plan approved by the department after July 24, 1996 and

before January 1, 2008.

(b) For eligible activities not described in section 13(15),

use funds from a local site remediation revolving fund that are

derived from taxes levied for school operating purposes unless the

eligible activities to be conducted are eligible activities under

part 201 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.20101 to 324.20142, consistent with a work

plan or remedial action plan that has been approved by the

department after July 24, 1996.

created pursuant to section 8 that are derived from taxes levied

for school operating purposes for the eligible activities described

in section 13(15) unless the eligible activities to be conducted

are consistent with a work plan approved by the Michigan economic

growth authority.

(d) Use taxes captured from eligible property to pay for

eligible activities conducted before approval of the brownfield

plan except for costs described in section 13(16).

(e) Use taxes levied for school operating purposes captured

from eligible property for response activities that benefit a party

liable under section 20126 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20126, except

that a municipality that established the authority, for taxes

levied after 2004, may use taxes levied for school operating

purposes captured from eligible property for response activities

associated with a landfill.

(f) Use taxes captured from eligible property to pay for

administrative and operating activities of the authority or the

municipality on behalf of the authority except for costs described

in section 13(16) and for the reasonable costs for preparing a work

plan or remedial action plan for the eligible property, including

the actual cost of the review of the work plan or remedial action

plan under this section.

(2) To seek department approval of a work plan under

subsection (1)(a) or (b) or remedial action plan, the authority

shall submit all of the following for each eligible property:

(a) A copy of the brownfield plan.

(b) Current ownership information for each eligible property

and a summary of available information on proposed future

ownership, including the amount of any delinquent taxes, interest,

and penalties that may be due.

current use of each eligible property, including a brief summary of

site conditions and what is known about environmental contamination

as that term is defined in section 20101 of the natural resources

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

(d) Existing and proposed future zoning for each eligible

property.

(e) A brief summary of the proposed redevelopment and future

use for each eligible property.

(f) A separate work plan or remedial action plan, or part of a

work plan or remedial action plan, for each eligible activity to be

undertaken.

(3) Upon receipt of a request for approval of a work plan or

remedial action plan under subsection (2) that pertains to baseline

environmental assessment activities or due care activities, or

both, or a portion of a work plan or remedial action plan that

pertains to only baseline environmental assessment activities or

due care activities, or both, the department shall provide 1 of the

following written responses to the requesting authority within 60

days:

(a) An unconditional approval.

(b) A conditional approval that delineates specific necessary

modifications to the work plan or remedial action plan, including,

but not limited to, individual activities to be added or deleted

from the work plan or remedial action plan and revision of costs.

information for the department to respond under subdivision (a) or

(b), a letter stating with specificity the necessary additions or

changes to the work plan or remedial action plan to be submitted

before a plan will be considered by the department.

(4) In its review of a work plan or remedial action plan, the

department shall consider all of the following:

(a) Whether the individual activities included in the work

plan or remedial action plan are sufficient to complete the

eligible activity.

(b) Whether each individual activity included in the work plan

or remedial action plan is required to complete the eligible

activity.

reasonable.

(5) If the department fails to provide a written response

under subsection (3) within 60 days after receipt of a request for

approval of a work plan or remedial action plan that pertains to

baseline environmental assessment activities or due care

activities, or both, the authority may proceed with the baseline

environmental assessment activities or due care activities, or

both, as outlined in the work plan or remedial action plan as

submitted for approval. Except as provided in subsection (6),

baseline environmental assessment activities or due care

activities, or both, conducted pursuant to a work plan or remedial

action plan that was submitted to the department for approval but

for which the department failed to provide a written response under

subsection (3) shall be considered approved for the purposes of

subsection (1).

(6) The department may issue a written response to a work plan

or remedial action plan that pertains to baseline environmental

assessment activities or due care activities, or both, more than 60

days but less than 6 months after receipt of a request for

approval. If the department issues a written response under this

subsection, the authority is not required to conduct individual

activities that are in addition to the individual activities

included in the work plan or remedial action plan as it was

submitted for approval and failure to conduct these additional

activities shall not affect the authority's ability to capture

taxes under subsection (1) for the eligible activities described in

the work plan or remedial action plan initially submitted under

subsection (5). In addition, at the option of the authority, these

additional individual activities shall be considered part of the

work plan or remedial action plan of the authority and approved for

purposes of subsection (1). However, any response by the department

under this subsection that identifies additional individual

activities that must be carried out to satisfy the baseline

environmental assessment or due care requirements, or both, of part

201 of the natural resources and environmental protection act, 1994

PA 451, MCL 324.20101 to 324.20142, must be satisfactorily

completed for the baseline environmental assessment or due care

activities, or both, to be considered acceptable for the purposes

of compliance with part 201 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20101 to

324.20142.

(7) If the department issues a written response under

subsection (6) to a work plan or remedial action plan that pertains

to baseline environmental assessment activities or due care

activities, or both, and if the department's written response

modifies an individual activity proposed by the work plan or

remedial action plan of the authority in a manner that reduces or

eliminates a proposed response activity, the authority must

complete those individual activities included in the baseline

environmental assessment or due care activities, or both, in

accordance with the department's response in order for that portion

of the work plan or remedial action plan to be considered approved

for purposes of subsection (1), unless 1 or more of the following

conditions apply:

(a) Obligations for the individual activity have been issued

by the authority, or by a municipality on behalf of the authority,

to fund the individual activity prior to issuance of the

department's response.

(b) The individual activity has commenced or payment for the

work has been irrevocably obligated prior to issuance of the

department's response.

(8) It shall be in the sole discretion of an authority to

propose to undertake additional response activities at an eligible

property under a brownfield plan. The department shall not require

a work plan or remedial action plan for either baseline

environmental assessment activities or due care activities, or

both, to include additional response activities.

(9) The department may reject the portion of a work plan or

remedial action plan that includes additional response activities

and may consider the level of risk reduction that will be

accomplished by the additional response activities in determining

whether to approve or reject the work plan or remedial action plan

or a portion of a plan.

(10) The department's approval or rejection of a work plan

under subsection (1)(a) or (b) or remedial action plan for

additional response activities is final.

(11) The authority shall reimburse the department for the

actual cost incurred by the department or a contractor of the

department to review a work plan under subsection (1)(a) or (b) or

remedial action plan under this section. Funds paid to the

department under this subsection shall be deposited in the cost

recovery subaccount of the cleanup and redevelopment fund created

under section 20108 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20108.

(12) The department shall submit a report each year on or

before March 1 to each member of the legislature that contains all

of the following:

(a) A compilation and summary of all the information submitted

under subsection (2).

(b) The amount of revenue this state would have received if

taxes levied for school operating purposes had not been captured

under this section for the previous calendar year.

have received if taxes levied for school operating purposes had not

been captured under this section for the previous calendar year.

(13) To seek Michigan economic growth authority approval of a

work plan under subsection (1)(c) or section 13(15), the authority

shall submit all of the following for each eligible property:

(a) A copy of the brownfield plan.

(b) Current ownership information for each eligible property

and a summary of available information on proposed future

ownership, including the amount of any delinquent taxes, interest,

and penalties that may be due.

current use of each eligible property.

(d) Existing and proposed future zoning for each eligible

property.

(e) A brief summary of the proposed redevelopment and future

use for each eligible property.

(f) A separate work plan, or part of a work plan, for each

eligible activity described in section 13(15) to be undertaken.

(g) A copy of the development agreement required under section

13(15), which shall include, but is not limited to, a detailed

summary of any and all ownership interests, monetary

considerations, fees, revenue and cost sharing, charges, or other

financial arrangements or other consideration between the parties.

(14) Upon receipt of a request for approval of a work plan,

the Michigan economic growth authority shall provide 1 of the

following written responses to the requesting authority within 65

days:

(a) An unconditional approval that includes an enumeration of

eligible activities and a maximum allowable capture amount.

(b) A conditional approval that delineates specific necessary

modifications to the work plan, including, but not limited to,

individual activities to be added or deleted from the work plan and

revision of costs.

for the denial. If a work plan is denied under this subsection, the

work plan may be subsequently resubmitted.

(15) In its review of a work plan under subsection (1)(c) or

section 13(15), the Michigan economic growth authority shall

consider the following criteria to the extent reasonably applicable

to the type of activities proposed as part of that work plan when

approving or denying a work plan:

(a) Whether the individual activities included in the work

plan are sufficient to complete the eligible activity.

(b) Whether each individual activity included in the work plan

is required to complete the eligible activity.

reasonable.

(d) The overall benefit to the public.

(e) The extent of reuse of vacant buildings and redevelopment

of blighted property.

(f) Creation of jobs.

(g) Whether the eligible property is in an area of high

unemployment.

(h) The level and extent of contamination alleviated by or in

connection with the eligible activities.

(i) The level of private sector contribution.

(j) The cost gap that exists between the site and a similar

greenfield site as determined by the Michigan economic growth

authority.

(k) If the developer or projected occupant of the new

development is moving from another location in this state, whether

the move will create a brownfield.

(l) Whether the financial statements of the developer,

landowner, or corporate entity indicate that the developer,

landowner, or corporate entity is financially sound and that the

project of the developer, landowner, or corporate entity that is

included in the work plan is economically sound.

(m) Other state and local incentives available to the

developer, landowner, or corporate entity for the project of the

developer, landowner, or corporate entity that is included in the

work plan.

(n) Any other criteria that the Michigan economic growth

authority considers appropriate for the determination of

eligibility or for approval of the work plan.

(16) If the Michigan economic growth authority fails to

provide a written response under subsection (14) within 65 days

after receipt of a request for approval of a work plan, the

eligible activities shall be considered approved and the authority

may proceed with the eligible activities described in section

13(15) as outlined in the work plan as submitted for approval.

(17) The Michigan economic growth authority's approval of a

work plan under section 13(15) is final.

(18) The authority shall reimburse the Michigan economic

growth authority for the actual cost incurred by the Michigan

economic growth authority or a contractor of the Michigan economic

growth authority to review a work plan under this section.

(19) The Michigan economic growth authority shall submit a

report each year on or before March 1 to each member of the

legislature that contains all of the following:

(a) A compilation and summary of all the information submitted

under subsection (13).

(b) The amount of revenue this state would have received if

taxes levied for school operating purposes had not been captured

under this section for the previous calendar year.

have received if taxes levied for school operating purposes had not

been captured under this section for the previous calendar year.

(20) All taxes levied for school operating purposes that are

not used for eligible activities consistent with a work plan

approved by the department or the Michigan economic growth

authority or for the payment of interest under section 13 and that

are not deposited in a local site remediation revolving fund shall

be distributed proportionately between the local school district

and the school aid fund.

(21) An authority shall not use taxes levied for school

operating purposes captured from eligible property for eligible

activities for a qualified facility or for eligible activities for

property located in an economic opportunity zone.