HOUSE BILL No. 5202

 

July 15, 2009, Introduced by Reps. Hansen, Stamas, Green, Sheltrown, Polidori, Horn, Clemente, Slezak, Pearce, Booher, Meekhof, DeShazor, Walsh, Moss, Hammel, Terry Brown, Espinoza, Mayes, Simpson, McDowell, Haveman, Knollenberg, Bolger, Calley, Dean, Proos and Opsommer and referred to the Committee on Commerce.

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 3 (MCL 125.2683), as amended by 2008 PA 217,

 

and by adding section 8g.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Agricultural processing facility" means 1 or more

 

facilities or operations that transform, package, sort, or grade

 

livestock or livestock products, agricultural commodities, or

 

plants or plant products, excluding forest products, into goods

 

that are used for intermediate or final consumption including goods

 

for nonfood use, and surrounding property.

 

     (b) "Board" means the state administrative board created in

 

1921 PA 2, MCL 17.1 to 17.3.

 


     (c) "Development plan" means a written plan that addresses the

 

criteria in section 7 and includes all of the following:

 

     (i) A map of the proposed renaissance zone that indicates the

 

geographic boundaries, the total area, and the present use and

 

conditions generally of the land and structures within those

 

boundaries.

 

     (ii) Evidence of community support and commitment from

 

residential and business interests.

 

     (iii) A description of the methods proposed to increase economic

 

opportunity and expansion, facilitate infrastructure improvement,

 

and identify job training opportunities.

 

     (iv) Current social, economic, and demographic characteristics

 

of the proposed renaissance zone and anticipated improvements in

 

education, health, human services, public safety, and employment if

 

the renaissance zone is created.

 

     (v) Any other information required by the board.

 

     (d) "Elected county executive" means the elected county

 

executive in a county organized under 1966 PA 293, MCL 45.501 to

 

45.521, or 1973 PA 139, MCL 45.551 to 45.573.

 

     (e) "Entrepreneurial business" means a new, for-profit start-

 

up business of 100 employees or less registered in and with this

 

state on or after July 1, 2009.

 

     (f) "Entrepreneurial business facility" means a facility or

 

operation that has as its principal function the research,

 

development, support, manufacturing, or providing a service for an

 

entrepreneurial business.

 

     (g) (e) "Forest products processing facility" means 1 or more

 


facilities or operations that transform, package, sort, recycle, or

 

grade forest or paper products into goods that are used for

 

intermediate or final use or consumption or for the creation of

 

biomass or alternative fuels through the utilization of forest

 

products or forest residue, and surrounding property. Forest

 

products processing facility does not include an existing facility

 

or operation that is located in this state that relocates to a

 

renaissance zone for a forest products processing facility. Forest

 

products processing facility does not include a facility or

 

operation that engages primarily in retail sales.

 

     (h) (f) "Local governmental unit" means a county, city,

 

village, or township.

 

     (i) (g) "Person" means an individual, partnership,

 

corporation, association, limited liability company, governmental

 

entity, or other legal entity.

 

     (j) (h) "Qualified local governmental unit" means either of

 

the following:

 

     (i) A county.

 

     (ii) A city, village, or township that contains an eligible

 

distressed area as defined in section 11 of the state housing

 

development authority act of 1966, 1966 PA 346, MCL 125.1411.

 

     (k) (i) "Recovery zone" means a tool and die renaissance

 

recovery zone created in section 8d.

 

     (l) (j) "Renaissance zone" means a geographic area designated

 

under this act.

 

     (m) (k) "Renewable energy facility" means a facility that

 

creates energy directly or fuel from the wind, the sun, trees,

 


grasses, biosolids, algae, agricultural commodities, processed

 

products from agricultural commodities, or residues from

 

agricultural processes, wood or forest processes, food production

 

and processing, or the paper products industry. Renewable energy

 

facility also includes a facility that creates energy or fuels from

 

solid biomass, animal wastes, or landfill gases. Renewable energy

 

facility also includes a facility that focuses on research,

 

development, or manufacturing of systems or components of systems

 

used to create energy or fuel from the items described in this

 

subdivision.

 

     (n) (l) "Residential rental property" means that term as

 

defined in section 7ff of the general property tax act, 1893 PA

 

206, MCL 211.7ff.

 

     (o) (m) "Review board" means the renaissance zone review board

 

created in section 5.

 

     (p) (n) "Rural area" means an area that lies outside of the

 

boundaries of an urban area.

 

     (q) (o) "Urban area" means an urbanized area as determined by

 

the economics and statistics administration, United States bureau

 

of the census according to the 1990 census.

 

     Sec. 8g. (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, may designate

 

additional renaissance zones for entrepreneurial business

 

facilities within this state in that portion of a city, village, or

 

township if that city, village, or township or combination of

 

cities, villages, or townships consents to the creation of a

 


renaissance zone for an entrepreneurial business facility within

 

their boundaries. A renaissance zone for an entrepreneurial

 

business facility shall have a duration of renaissance zone status

 

for a period of 5 years.

 

     (2) Each renaissance zone designated for an entrepreneurial

 

business 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 an entrepreneurial business facility if

 

the board determines that the entrepreneurial business 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 entrepreneurial business

 

facility is designated.

 

     (4) The board shall consider all of the following when

 

designating a renaissance zone for an entrepreneurial business

 

facility:

 

     (a) The economic impact on local suppliers who supply raw

 

materials, goods, and services to the entrepreneurial business

 

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

 


entrepreneurial business facility is located.

 

     (5) The board shall require a development agreement between

 

the Michigan strategic fund and the entrepreneurial business

 

facility.

 

     (6) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the

 

entrepreneurial business facility that includes, but is not limited

 

to, all of the following:

 

     (a) A requirement that the entrepreneurial business facility

 

comply with all state and local laws.

 

     (b) A requirement that the entrepreneurial business 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 entrepreneurial business facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (c) Approval of the business plan by a state recognized

 

entrepreneurial support resource as determined by the board.

 

     (d) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.