May 24, 2007, Introduced by Senators GILBERT, RICHARDVILLE, PATTERSON, SANBORN, PAPPAGEORGE, JANSEN, BIRKHOLZ, ALLEN, BROWN, GARCIA, THOMAS, JACOBS and HUNTER and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
by amending section 15 (MCL 125.2665), as amended by 2006 PA 32.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 2012.
(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.
(c) Use funds from a local site remediation revolving fund
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.
(c) A summary of available information on the historical and
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.
(c) If the work plan or remedial action plan lacks sufficient
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.
(c) Whether the cost for each individual activity is
reasonable.
(d) Whether the work plan or remedial action plan is clear
that the department approval of the work plan does not
automatically authorize reimbursement for an eligible activity.
(e) Whether the work plan or remedial action plan is clear
that the financial risk on whether an expense is an eligible
activity is on the developer.
(f) Whether the work plan or remedial action plan proposes
eligible activities that exceed the standards developed by the
department and, if it does, then the department shall approve those
eligible activities if they are reasonable and provide meaningful
environmental or public health benefits as determined by the
department.
(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.
(c) The amount of revenue each local governmental unit would
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.
(c) A summary of available information on the historical and
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.
(c) A denial and a letter stating with specificity the reason
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.
(c) Whether the cost for each individual activity is
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.
(c) The amount of revenue each local governmental unit would
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.