HB-5785, As Passed House, May 20, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5785

A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending sections 15 and 16 (MCL 125.2695 and 125.2696) and by

adding sections 8g and 8h.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 8g. Beginning July 1, 2008, when designating a

renaissance zone under section 8a(2), 8c, 8d, 8e, or 8f, if all

other considerations are equal, the board or the Michigan strategic

fund, as applicable, shall give preference to an applicant for

renaissance zone status if the applicant agrees, in writing, to do

all of the following:

(a) Hire only residents of this state to operate a facility in

the renaissance zone, unless the board or the Michigan strategic

fund, as applicable, determines that the facility cannot be

House Bill No. 5785 (H-1) as amended April 9, 2008

operated by using only residents of this state for 1 or more of the

following:

(i) To the extent necessary to comply with federal law or

regulation concerning the use of federal funds.

(ii) To the extent that key management personnel or individuals

with special skills, who are not residents of this state, are

needed.

(b) Contract with businesses that agree to hire only residents

of this state to construct a facility in the renaissance zone,

unless the board or the Michigan strategic fund, as applicable,

determines that the facility cannot be constructed by using only

residents of this state for 1 or more of the following:

(i) To the extent necessary to comply with federal law or

regulation concerning the use of federal funds.

(ii) To the extent that key management personnel or individuals

with special skills, who are not residents of this state, are

needed.

Sec. 8h. (1) Beginning July 1, 2008, if the board or the

Michigan strategic fund, as applicable, designates a renaissance

zone under section 8a(2), 8c, 8d, 8e, or 8f, a taxpayer that is a

business is not able to claim the exemption, deduction, or credit

under this act unless that taxpayer enters into a contract with the

board or the Michigan strategic fund, as applicable, that provides

that, for any work in the renaissance zone, the taxpayer will not

knowingly hire or contract with any business entity that knowingly

hires an individual who is not authorized under federal law to work

in the United States[.

House Bill No. 5785 (H-1) as amended April 9, 2008

]

(2) The contract with the taxpayer described in this section

and section 8g shall also contain a remedy provision that provides

for all of, but not limited to, the following:

(a) A requirement that the taxpayer is not eligible to claim

any future exemptions, deductions, or credits under this act if the

taxpayer is determined to be in violation of the provisions of this

section or section 8g, if applicable, as determined by the board or

the Michigan strategic fund, as applicable.

(b) A requirement that the taxpayer may be required to repay

some or all of the exemptions, deductions, or credits received

under this act if the taxpayer is determined to be in violation of

the provisions of this section or section 8g, if applicable, as

determined by the board or the Michigan strategic fund, as

applicable.

Sec. 15. The department of ~~Michigan~~ ~~jobs commission~~ labor and

economic growth shall annually report to the board of the Michigan

strategic fund and to the legislature on the economic effects of

this act in each renaissance zone. The report shall include, but is

not limited to, all of the following for each renaissance zone:

(a) Number of new jobs created.

(b) Percentage change in aggregate taxable value and state

equalized value.

(d) Percentage change of adjusted gross income of residents.

(e) The number of Michigan residents employed in new jobs in

the immediately preceding year.

(f) The total number of new jobs created in the immediately

preceding year.

(g) The specific reasons for each determination of exemption

from the provisions of section 8g(a) or (b) made by the board or

the Michigan strategic fund and the number of jobs related to each

determination.

Sec. 16. A state research university shall annually report to

the legislature on the economic effects of this act in each

renaissance zone. The report shall include, but is not limited to,

all of the following for each renaissance zone: