September 10, 2008, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 8a and 8e (MCL 125.2688a and 125.2688e),
section 8a as amended by 2008 PA 116 and section 8e as amended by
2008 PA 117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8a. (1) Except as provided in subsections (2), (3), and
(4), the board shall not designate more than 9 additional
renaissance zones within this state under this section. Not more
than 6 of the renaissance zones shall be located in urban areas and
not more than 5 of the renaissance zones shall be located in rural
areas. For purposes of determining whether a renaissance zone is
located in an urban area or rural area under this section, if any
part of a renaissance zone is located within an urban area, the
entire renaissance zone shall be considered to be located in an
urban area.
(2) The board of the Michigan strategic fund described in
section 4 of the Michigan strategic fund act, 1984 PA 270, MCL
125.2004,
may designate not more than 17 18
additional renaissance
zones within this state in 1 or more cities, villages, or townships
if that city, village, or township or combination of cities,
villages, or townships consents to the creation of a renaissance
zone within their boundaries. The board of the Michigan strategic
fund
may designate not more than 1 of the 17 18 additional
renaissance zones described in this subsection as an alternative
energy zone. An alternative energy zone shall promote and increase
the research, development, testing, and manufacturing of
alternative energy technology, alternative energy systems, and
alternative energy vehicles, as those terms are defined in the
Michigan next energy authority act, 2002 PA 593, MCL 207.821 to
207.827. An alternative energy zone shall have a duration of
renaissance zone status for a period not to exceed 20 years as
determined by the board of the Michigan strategic fund. The board
of the Michigan strategic fund may designate not more than 8 of the
additional
17 18 renaissance zones described in this subsection as
a redevelopment renaissance zone. A redevelopment renaissance zone
shall promote the redevelopment of existing industrial facilities
or the development of property for industrial purposes. The board
of the Michigan strategic fund may designate not more than 1 of the
17
18 additional renaissance zones described in this
subsection as
a pharmaceutical recovery renaissance zone. A pharmaceutical
recovery renaissance zone shall promote the development or
redevelopment of existing underutilized facilities currently
occupied or formerly occupied by a pharmaceutical company. Before
designating a renaissance zone under this subsection, the board of
the Michigan strategic fund may enter into a development agreement
with the city, township, or village in which the renaissance zone
will be located and the owner or developer of the facility or
property located in the renaissance zone. The development agreement
for a redevelopment renaissance zone described only in subsection
(6)(b)(vi) or (vii) may provide for the payment of 1 or more of the
taxes described in section 9.
(3) In addition to the not more than 9 additional renaissance
zones described in subsection (1), the board may designate
additional renaissance zones within this state in 1 or more
qualified local governmental units if that qualified local
governmental unit or units contain a military installation that was
operated by the United States department of defense and was closed
in 1977 or after 1990.
(4) Land owned by a county or the qualified local governmental
unit or units adjacent to a zone as described in subsection (3) may
be included in this zone.
(5) Notwithstanding any other provision of this act, property
located in the alternative energy zone that is classified as
commercial real property under section 34c of the general property
tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the
concurrence of the assessor of the local tax collecting unit,
determines is not used to directly promote and increase the
research, development, testing, and manufacturing of alternative
energy technology, alternative energy systems, and alternative
energy vehicles as those terms are defined in the Michigan next
energy authority act, 2002 PA 593, MCL 207.821 to 207.827, is not
eligible for any exemption, deduction, or credit under section 9.
(6) As used in this section:
(a) "Pharmaceutical recovery renaissance zone" means a
renaissance zone that includes a geographic area that is located in
1 or both of the following:
(i) In a city with a population of more than 70,000 and less
than 85,000 and in a county with a population of more than 235,000
and less than 250,000.
(ii) In a city with a population of more than 42,000 and less
than 55,000 and in a county with a population of more than 235,000
and less than 250,000.
(b) "Redevelopment renaissance zone" means a renaissance zone
that meets 1 of the following:
(i) All of the following:
(A) Is located in a city with a population of more than 7,500
and less than 8,500 and is located in a county with a population of
more than 60,000 and less than 70,000.
(B) Contains only all or a portion of an industrial site of
200 or more acres.
(ii) All of the following:
(A) Is located in a city with a population of more than 13,000
and less than 14,000 and is located in a county with a population
of more than 1,000,000 and less than 1,300,000.
(B) Contains only all or a portion of an industrial site of
300 or more contiguous acres.
(iii) All of the following:
(A) Is located in a township with a population of more than
5,500 and is located in a county with a population of less than
24,000.
(B) Contains only all or a portion of an industrial site of
more than 850 acres and has railroad access.
(iv) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site of
more than 475 acres.
(v) All of the following:
(A) Is located in a city with a population of more than 21,000
and less than 26,000 and is located in a county with a population
of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
less than 45 acres in size.
(vi) All of the following:
(A) Is located in a city with a population of more than
190,000 and less than 250,000 and is located in a county with a
population of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
more than 14 acres and less than 16 acres in size.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(vii) All of the following:
(A) Is located in a city with a population of more than 35,500
and less than 36,800 and is located in a county with a population
of more than 157,000 and less than 162,000.
(B) Contains only all or a portion of an industrial site
comprised of 1 or more adjacent parcels totaling 5 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(viii) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site
composed of 1 or more adjacent parcels totaling 100 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2008.
Sec. 8e. (1) The board, upon recommendation of the board of
the Michigan strategic fund defined in section 4 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2004, and upon
recommendation of the commission of agriculture if the renewable
energy facility uses agricultural crops or residues, or processed
products from agricultural crops as its primary raw material
source,
may designate not more than 10 12
additional renaissance
zones for renewable energy facilities within this state in 1 or
more cities, villages, or townships if that city, village, or
township or combination of cities, villages, or townships consents
to the creation of a renaissance zone for a renewable energy
facility within their boundaries.
(2) Each renaissance zone designated for a renewable energy
facility under this section shall be 1 continuous distinct
geographic area.
(3) The board may revoke the designation of all or a portion
of a renaissance zone for a renewable energy facility if the board
determines that the renewable energy facility does 1 or more of the
following in a renaissance zone designated under this section:
(a) Fails to commence operation.
(b) Ceases operation.
(c) Fails to commence construction or renovation within 1 year
from the date the renaissance zone for the renewable energy
facility is designated.
(4) When designating a renaissance zone for a renewable energy
facility, the board shall consider all of the following:
(a) The economic impact on local suppliers who supply raw
materials, goods, and services to the renewable energy facility.
(b) The creation of jobs relative to the employment base of
the community rather than the static number of jobs created.
(c) The viability of the project.
(d) The economic impact on the community in which the
renewable energy facility is located.
(e) All other things being equal, giving preference to a
business entity already located in this state.
(f) Whether the renewable energy facility can be located in an
existing renaissance zone designated under section 8 or 8a.
(5) Beginning on July 7, 2006, the board shall require a
development agreement between the Michigan strategic fund and the
renewable energy facility.
(6) Until the maximum number of additional renaissance zones
for renewable energy facilities described in subsection (1) is met,
if the board designates a renaissance zone under this section,
section 8c, or section 8f for a facility that is a forest products
processing facility or an agricultural processing facility and that
also meets the definition of a renewable energy facility, then the
board shall only designate that renaissance zone as a renaissance
zone for a renewable energy facility under this section.
(7) As used in this section, "development agreement" means a
written agreement between the Michigan strategic fund and the
renewable energy facility that includes, but is not limited to, all
of the following:
(a) A requirement that the renewable energy facility comply
with all state and local laws.
(b) A requirement that the renewable energy facility report
annually to the Michigan strategic fund on all of the following:
(i) The amount of capital investment made at the facility.
(ii) The number of individuals employed at the facility at the
beginning and end of the reporting period as well as the number of
individuals transferred to the facility from another facility owned
by the renewable energy facility.
(iii) The percentage of raw materials purchased in this state.
(c) Any other conditions or requirements reasonably required
by the Michigan strategic fund.