SB-1210, As Passed Senate, September 27, 2012

SUBSTITUTE FOR

SENATE BILL NO. 1210

     A bill to amend 1996 PA 381, entitled

"Brownfield redevelopment financing act,"

by amending sections 2, 4, 8, 13, 15, and 16 (MCL 125.2652,

125.2654, 125.2658, 125.2663, 125.2665, and 125.2666), section 2 as

amended by 2010 PA 246, section 4 as amended by 2005 PA 101,

section 8 as amended by 2000 PA 145, section 13 as amended by 2010

PA 288, section 15 as amended by 2007 PA 201, and section 16 as

amended by 2007 PA 203, and by adding section 8a.

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.

     (c) "Baseline environmental assessment" means that term as

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 as determined by the governing body:

     (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.

     (vii) Has substantial subsurface demolition debris buried on

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

     (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) "Combined brownfield plan" means a brownfield plan that

also includes the information necessary to submit the plan to the

department or Michigan strategic fund under section 15(25).

(k) (j) "Department" means the department of natural resources

and environment.environmental quality.

(l) (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.

(m) (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.

(n) (m) "Eligible activities" or "eligible activity" 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, 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,

historic resource, functionally obsolete, or blighted, and except

for purposes of section 38d of former 1975 PA 228, 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.

     (C) Lead or asbestos abatement.

     (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 or

the acquisition of property by the land bank fast track authority

if the acquisition of the property is for economic development

purposes.

     (F) Assistance to a qualified local governmental unit or

authority in clearing or quieting title to, or selling or otherwise

conveying, property owned or under the control of a qualified local

governmental unit or authority or the acquisition of property by a

qualified local governmental unit or authority if the acquisition

of the property is for economic development purposes.

     (v) Relocation of public buildings or operations for economic

development purposes.

     (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.

     (C) Lead or asbestos abatement.

     (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.

     (vii) For eligible activities on eligible property that is not

located in a qualified local governmental unit and that is a

facility, historic resource, functionally obsolete, or blighted,

the following additional activities:

     (A) 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.

     (B) Lead or asbestos abatement.

     (viii) Reasonable costs of developing and preparing brownfield

plans, combined brownfield plans, and work plans.

     (ix) For property that is not located in a qualified local

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

blighted, that is a former mill that has not been used for

industrial purposes for the immediately preceding 2 years, that is

located along a river that is a federal superfund site listed under

the comprehensive environmental response, compensation, and

liability act of 1980, 42 USC 9601 to 9675, and that is located in

a city with a population of less than 10,000 persons, the following

additional activities:

     (A) Infrastructure improvements that directly benefit the

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.

     (C) Lead or asbestos abatement.

     (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.

     (x) For eligible activities on eligible property that is

located north of the 45th parallel, that is a facility,

functionally obsolete, or blighted, and the owner or operator of

which makes new capital investment of $250,000,000.00 or more in

this state, the following additional activities:

     (A) 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.

     (B) Lead or asbestos abatement.

     (xi) Reasonable costs of environmental insurance.

(o) (n) Except as otherwise provided in this subdivision,

"eligible property" means property for which eligible activities

are identified under a brownfield plan that was used or is

currently used for commercial, industrial, public, or residential

purposes, including personal property located on the property, to

the extent included in the brownfield plan, and that is 1 or more

of the following:

     (i) Is in a qualified local governmental unit and is a

facility, historic resource, functionally obsolete, or blighted 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.

     (ii) 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.

     (iii) Is tax reverted property owned or under the control of a

land bank fast track authority.

     (iv) Is not in a qualified local governmental unit, is a

qualified facility, and is a facility, functionally obsolete, or

blighted, if the eligible activities on the property are limited to

the eligible activities identified in subdivision (m)(vi).(n)(vi).

     (v) Is not in a qualified local governmental unit and is a

facility, historic resource, functionally obsolete, or blighted, if

the eligible activities on the property are limited to the eligible

activities identified in subdivision (m)(vii).(n)(vii).

     (vi) Is not in a qualified local governmental unit and is a

facility, functionally obsolete, or blighted, if the eligible

activities on the property are limited to the eligible activities

identified in subdivision (m)(ix).(n)(ix).

     (vii) Is located north of the 45th parallel, is a facility,

functionally obsolete, or blighted, and the owner or operator makes

new capital investment of $250,000,000.00 or more in this state.

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.

     (viii) Is a transit-oriented development.

     (ix) Is a transit-oriented facility.

(p) (o) "Environmental insurance" means liability insurance

for environmental contamination and cleanup that is not otherwise

required by state or federal law.

(q) (p) "Facility" means that term as defined in section 20101

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101.

(r) (q) "Fiscal year" means the fiscal year of the authority.

(s) (r) "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.

(t) (s) "Governing body" means the elected body having

legislative powers of a municipality creating an authority under

this act.

     (u) "Historic resource" means that term as defined in section

90a of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090a.

(v) (t) "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, transit-oriented development,

transit-oriented facility, 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. Infrastructure improvements also include 1 or more

of the following whether publicly or privately owned or operated or

located on public or private property:

     (i) Underground parking.

     (ii) Multilevel parking structures.

     (iii) Urban storm water management systems.

(w) (u) "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.

(x) (v) "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.

(y) (w) "Local taxes" means all taxes levied other than taxes

levied for school operating purposes.

     (z) "Michigan strategic fund" means the Michigan strategic

fund created under the Michigan strategic fund act, 1984 PA 270,

MCL 125.2001 to 125.2094.

(aa) (x) "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.

(bb) (y) "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.

(cc) (z) "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.

(dd) (aa) "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

146, MCL 125.2781 to 125.2797.

(ee) (bb) "Qualified taxpayer" means that term as defined in

sections 38d and 38g of former 1975 PA 228, or section 437 of the

Michigan business tax act, 2007 PA 36, MCL 208.1437, or a recipient

of a community revitalization incentive as described in section 90a

of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090a.

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

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(gg) (dd) "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; the commercial rehabilitation act,

2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax

levied under the tax reverted 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.

     (hh) "State brownfield redevelopment fund" means the state

brownfield redevelopment fund created in section 8a.

(ii) (ee) "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, regardless of whether those taxes began to be levied

after the brownfield plan was adopted. 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.

(jj) (ff) "Taxable value" means the value determined under

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

211.27a.

(kk) (gg) "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).

(ll) (hh) "Transit-oriented development" means infrastructure

improvements that are located within 1/2 mile of a transit station

or transit-oriented facility that promotes transit ridership or

passenger rail use as determined by the board and approved by the

municipality in which it is located.

(mm) (ii) "Transit-oriented facility" means a facility that

houses a transit station in a manner that promotes transit

ridership or passenger rail use.

(nn) (jj) "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.

(oo) (kk) "Zone" means, for an authority established before

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

act.

     Sec. 4. (1) A governing body may declare by resolution adopted

by a majority of its members elected and serving its intention to

create and provide for the operation of an authority.

     (2) In the resolution of intent, the governing body shall set

a date for holding a public hearing on the adoption of a proposed

resolution creating the authority. Notice of the public hearing

shall be published twice in a newspaper of general circulation in

the municipality, not less than 20 nor more than 40 days before the

date of the hearing. The notice of the public hearing shall state

the date, time, and place of the hearing. At that hearing, a

citizen, taxpayer, official from a taxing jurisdiction whose

millage may be subject to capture under a brownfield plan, or

property owner of the municipality has the right to be heard in

regard to the establishment of the authority.

     (3) Not more than 30 days after the public hearing, if the

governing body intends to proceed with the establishment of the

authority, the governing body shall adopt, by majority vote of its

members elected and serving, a resolution establishing the

authority. The adoption of the resolution is subject to all

applicable statutory or charter provisions with respect to the

approval or disapproval by the chief executive or other officer of

the municipality and the adoption of a resolution over his or her

veto. This resolution shall be filed with the secretary of state

promptly after its adoption.

     (4) The proceedings establishing an authority shall be

presumptively valid unless contested in a court of competent

jurisdiction within 60 days after the filing of the resolution with

the secretary of state.

     (5) The exercise by an authority of the powers conferred by

this act shall be considered to be an essential governmental

function and benefit to, and a legitimate public purpose of, the

state, the authority, and the municipality or units.

     (6) If the board implements or modifies a brownfield plan that

contains a qualified facility, the governing body shall mail notice

of that implementation or modification to each taxing jurisdiction

that levies ad valorem property taxes in the municipality. Not more

than 60 days after receipt of that notice, the governing body of a

taxing jurisdiction levying ad valorem property taxes that would

otherwise be subject to capture may exempt its taxes from capture

by adopting a resolution to that effect and filing a copy with the

clerk of the municipality in which the qualified facility is

located. The resolution takes effect when filed with that clerk and

remains effective until a copy of a resolution rescinding that

resolution is filed with that clerk.

     Sec. 8. (1) An authority may establish a local site

remediation revolving fund. A local site remediation revolving fund

shall consist of money available under section 13(5) and may also

consist of money appropriated or otherwise made available from

public or private sources. An authority shall separately account

for money deposited to the fund that is directly derived from tax

increment revenues levied for school operating purposes.

     (2) The local site remediation revolving fund may be used only

to pay the costs of eligible activities on eligible property that

is located within the municipality.

     (3) An authority or a municipality on behalf of an authority

may incur an obligation for the purpose of funding a local site

remediation revolving fund.

     Sec. 8a. (1) The state brownfield redevelopment fund is

created as a revolving fund within the department of treasury to be

administered as provided in this section. The state treasurer shall

direct the investment of the state brownfield redevelopment fund.

Money in the state brownfield redevelopment fund at the close of

the fiscal year shall remain in the state brownfield redevelopment

fund and shall not lapse to the general fund.

     (2) The state treasurer shall credit to the fund money from

the following sources:

     (a) All amounts deposited into the state brownfield

redevelopment fund under section 13(21).

     (b) The proceeds from repayment of a loan, including interest

on those repayments, under subsection (5)(f).

     (c) Interest on funds deposited into the state brownfield

redevelopment fund.

     (d) Money obtained from any other source authorized by law.

     (3) The state brownfield redevelopment fund may be used only

for the following purposes:

     (a) To pay administrative costs of all of the following:

     (i) The Michigan strategic fund to implement this act.

     (ii) The department to implement this act.

     (iii) The department to implement part 196 of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.19601 to 324.19616.

     (b) To fund a grant and loan program for the costs of eligible

activities described in section 13(15) on eligible property as

provided in subsection (5).

     (c) To make deposits into the clean Michigan initiative bond

fund under section 19606(2)(d) of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.19606, for use

in providing grants and loans under part 196 of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.19601 to 324.19616.

     (4) Not more than 15% of the amounts deposited annually into

the state brownfield redevelopment fund may be used for purposes of

subsection (3)(a).

     (5) The state brownfield redevelopment fund may be used to

fund a grant and loan program for the costs of eligible activities

described in section 13(15) on eligible property under this

subsection. The grant and loan program shall provide for all of the

following:

     (a) The Michigan strategic fund shall create and operate a

grant and loan program to provide grants and loans to fund eligible

activities described in section 13(15) on eligible property. The

Michigan strategic fund shall develop and use a detailed

application, approval, and compliance process adopted by resolution

of the board of the Michigan strategic fund. This process shall be

published and available on the Michigan strategic fund website.

Program standards, guidelines, templates, or any other forms to

implement the grant and loan program shall be approved by the board

of the Michigan strategic fund. The Michigan strategic fund may

delegate its approval authority under this subsection to a

designee.

     (b) A person may apply to the Michigan strategic fund for

approval of a grant or loan to fund eligible activities described

in section 13(15) on eligible property.

     (c) The Michigan strategic fund shall approve or deny an

application not more than 90 days after receipt of an

administratively complete application. If the application is

neither approved nor denied within 90 days, it shall be considered

by the board of the Michigan strategic fund, or its designee if

delegated, for action at, or by, the next regularly scheduled board

meeting. The Michigan strategic fund may delegate the approval or

denial of an application to the chairperson of the Michigan

strategic fund or other designees determined by the board.

     (d) When an application is approved under this subsection, the

Michigan strategic fund shall enter into a written agreement with

the applicant. The written agreement shall provide all the

conditions imposed on the applicant and the terms of the grant or

loan. The written agreement shall also provide for penalties if the

applicant fails to comply with the provisions of the written

agreement.

     (e) After the Michigan strategic fund and the applicant have

entered into a written agreement under subdivision (d), the

Michigan strategic fund shall distribute the proceeds to the

applicant according to the terms of the written agreement.

     (f) Any proceeds from repayment of a loan, including interest

on those repayments, under this subsection shall be paid into the

state brownfield redevelopment fund.

     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 eligible property is included within the

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

individually for each 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.

     (c) An estimate of the captured taxable value and tax

increment revenues for each year of the plan from the eligible

property. 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(dd), 2(ii), 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 for eligible

activities on a particular eligible property which shall not exceed

30 years following the beginning date of the capture of tax

increment revenues for that particular eligible property. Each plan

amendment shall also contain the duration of capture of tax

increment revenues including the beginning date of the capture of

tax increment revenues, which beginning date shall be identified in

the brownfield plan and which beginning date shall not be later

than 5 years following the date of the resolution approving the

plan amendment related to a particular eligible property and which

duration shall not exceed the lesser of the period authorized under

subsections (4) and (5) or 30 years from the beginning date of the

capture of tax increment revenues. The date for the beginning of

capture of tax increment revenues from a particular eligible

property may be amended by the authority but not to a date later

than 5 years after the date of the resolution adopting the plan for

that eligible property. If a project fails to occur for which

eligible activities on a particular eligible property were

identified in a plan, the date for the beginning of capture of tax

increment revenues from that eligible property may be amended by

the authority for eligible activities associated with a new project

but not to a date later than 5 years after the date of the

resolution amending the plan for that new project. The authority

may not amend the date for the beginning of capture of tax

increment revenues for a particular eligible property if the

authority has begun to reimburse eligible activities from the

capture of tax increment revenues from that eligible property. Any

tax increment revenues captured from an eligible property before

the beginning date of capture of tax increment revenues for that

eligible property shall revert proportionately to the respective

tax bodies. The authority may not amend the date for the beginning

of capture if that amendment would lead to the duration of capture

of tax increment revenues being longer than 30 years or the period

authorized under subsections (4) and (5). If the date for the

beginning of capture of tax increment revenues is amended by the

authority and that plan includes the capture of tax increment

revenues for school operating purposes, then the authority that

amended that plan shall notify the department and the Michigan

economic growth authority within 30 days of the approval of the

amendment.The beginning date and duration of capture of tax

increment revenues for each eligible property as determined under

subsection (22).

     (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 the 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 brownfield plan, combined

brownfield plan, or a work plan for the eligible property. ,

including the actual cost of the review of the work 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 combined brownfield

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

plan under section 15. Except as provided in subsection (18), 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(m)(iv)(E).2(n)(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 strategic fund 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. By resolution, the governing body may delegate the

public hearing process to the authority or to a subcommittee of the

governing body subject to final approval by the governing body.

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, not less than 10 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.

     (c) Any other information that the governing body considers

appropriate.

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

required under subsection (10), the governing body shall ensure

that interested persons have an opportunity to be heard and that

written communications with reference to the brownfield plan are

received and considered. The governing body shall ensure that a

record of the public hearing is made and preserved, including all

data presented at the hearing.

     (13) Not less than 10 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. Not less than 10 days before the hearing on

the brownfield plan, the governing body shall provide notice of the

hearing to the department if the brownfield plan involves the use

of taxes levied for school operating purposes to pay for eligible

activities that require the approval of a combined brownfield plan

or a work plan by the department under section 15(1)(a) and the

Michigan economic growth authority, strategic fund, or its

designee, if the brownfield plan involves the use of taxes levied

for school operating purposes to pay for eligible activities

subject to subsection (15) or (18).

     (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 approval of a combined brownfield plan or a work plan by

the Michigan economic growth authority before January 1, 2013

strategic fund to use taxes levied for school operating purposes

and a development agreement or reimbursement agreement between the

municipality or authority and an owner or developer of eligible

property are required if the taxes levied for school operating

purposes 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, site preparation that is not

response activity under section 20101 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20101,

relocation of public buildings or operations for economic

development purposes, or acquisition of property by a land bank

fast track authority if acquisition of the property is for economic

development purposes. 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. strategic fund. 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:except as follows:

(a) The limitations of section 15(1) upon use of tax increment

revenues by an authority shall not apply to the following costs and

expenses:

     (i) (a) In each fiscal year of the authority, the amount

described in subsection (19) for the following purposes for tax

increment revenues attributable to local taxes:

(A) (i) Reasonable and actual administrative and operating

expenses of the authority.

(B) (ii) Baseline environmental assessments, due care

activities, and additional response activities conducted by or on

behalf of the authority related directly to work conducted on

prospective eligible properties prior to approval of the brownfield

plan.

(ii) (b) Reasonable costs of preparing a work plan or the cost

of the review of a work plan for which tax increment revenues may

be used under section 13(3).

     (b) The limitations of section 15(1)(a), (b), and (c) upon the

use of taxes levied for school operating purposes by an authority

shall not apply to the costs of 1 or more of the following incurred

by a person other than the authority:

     (i) Site investigation activities required to conduct a

baseline environmental assessment and to evaluate compliance with

section 20107a of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20107a.

     (ii) Completing a baseline environmental assessment report.

     (iii) Preparing a plan for compliance with section 20107a of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.20107a.

     (c) For tax increment revenues attributable to local taxes,

reasonable costs of site investigations described in section

15(1)(a)(i), baseline environmental assessments, and due care

activities incurred by a person other than the authority related

directly to work conducted on eligible property or prospective

eligible properties prior to approval of the brownfield plan, if

those costs and the eligible property are included in a brownfield

plan approved by the authority.The limitations of section 15(1)(b)

upon use of tax increment revenues by an authority shall not apply

to the following costs and expenses:

     (i) For tax increment revenues attributable to taxes levied for

school operating purposes, eligible activities associated with

unanticipated response activities conducted on eligible property if

that eligible property has been included in a brownfield plan, if

the department is consulted on the unanticipated response

activities before they are conducted and the costs of those

activities are subsequently included in a brownfield plan approved

by the authority and a combined brownfield plan or a work plan

approved by the department.

     (ii) For tax increment revenues attributable to local taxes,

any eligible activities conducted on eligible property or

prospective eligible properties prior to approval of the brownfield

plan, if those costs and the eligible property are subsequently

included in a brownfield plan approved by the authority.

     (iii) For tax increment revenues attributable to taxes levied

for school operating purposes, eligible activities described in

section 13(15) and conducted on eligible property or prospective

eligible properties prior to approval of the brownfield plan, if

those costs and the eligible property are subsequently included in

a brownfield plan approved by the authority and a combined

brownfield plan or work plan approved by the Michigan strategic

fund.

     (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. If an authority

reimburses a person or entity under this section for an advance for

the payment or reimbursement of the cost of eligible activities and

interest thereon, the authority may capture local taxes for the

payment of that interest. If an authority reimburses a person or

entity under this section for an advance for the payment or

reimbursement of the cost of baseline environmental assessments,

due care, and additional response activities and interest thereon

included in a combined brownfield plan or a work plan approved by

the department, the authority may capture taxes levied for school

operating purposes and local taxes for the payment of that

interest. If an authority reimburses a person or entity under this

section for an advance for the payment or reimbursement of the cost

of eligible activities that are not baseline environmental

assessments, due care, and additional response activities and

interest thereon included in a combined brownfield plan or a work

plan approved by the Michigan economic growth authority, strategic

fund, the authority may capture taxes levied for school operating

purposes and local taxes for the payment of that interest provided

that the Michigan economic growth authority strategic fund grants

an approval for the capture of taxes levied for school operating

purposes to pay such interest. An authority may enter into

agreements related to these reimbursements and payments. 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 combined brownfield

plan or a work plan by the Michigan economic growth authority

strategic fund in the manner required under section 15(14) to (16)

or (25) 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(m)(iv)(E)

2(n)(iv)(E) for 1 or more parcels of eligible property. The combined

brownfield plan or work plan to be submitted to the Michigan

economic growth authority strategic fund under this subsection

shall be in a form prescribed by the Michigan economic growth

authority. strategic fund. The eligible activities to be conducted

and described in this subsection shall be consistent with the

combined brownfield plan or work plan submitted by the authority to

the Michigan economic growth authority. strategic fund. The

department's approval is not required for the capture of taxes

levied for school operating purposes for eligible activities

described in this section.

     (19) In each fiscal year of the authority, the amount of tax

increment revenues attributable to local taxes that an authority

can use for the purposes described in subsection (16)(a) shall be

determined as follows:

     (a) For authorities that have 5 or fewer active projects,

$100,000.00.

     (b) For authorities that have 6 or more but fewer than 11

active projects, $125,000.00.

     (c) For authorities that have 11 or more but fewer than 16

active projects, $150,000.00.

     (d) For authorities that have 16 or more but fewer than 21

active projects, $175,000.00.

     (e) For authorities that have 21 or more but fewer than 26

active projects, $200,000.00.

     (f) For authorities that have 26 or more but fewer than 31

active projects, $300,000.00.

     (g) For authorities that have 31 or more active projects,

$500,000.00.

     (20) As used in subsection (19), "active project" means a

project in which the authority is currently capturing taxes under

this act. The amounts of tax increment revenues attributable to

local taxes listed in subsection (19) that an authority can use for

the purposes described in subsection (16)(a) may be increased by 2%

for each written agreement entered into by an authority in either

of the following situations up to a total maximum increase of 10%:

     (a) The authority is an authority established by a county and

that authority enters into a written agreement with 1 or more

municipalities within that county to serve as the only authority

for those other municipalities.

     (b) The authority enters into a written agreement with 1 or

more other authorities to administer 1 or more administrative

operations of those other authorities.

     (21) Notwithstanding anything to the contrary in this act, for

a brownfield plan that includes the capture of taxes levied for

school operating purposes from eligible property included in a

brownfield plan after January 1, 2013, an authority shall pay to

the department of treasury at least once annually an amount equal

to 3 mills of the taxes levied under the state education tax, 1993

PA 331, MCL 211.901 to 211.906, that are captured under the

brownfield plan for up to the first 25 years of the duration of

capture of tax increment revenues for each eligible property

included in the brownfield plan. The department of treasury shall

deposit these amounts into the state brownfield redevelopment fund.

If an authority pays an amount equal to 3 mills of the taxes levied

under the state education tax, 1993 PA 331, MCL 211.901 to 211.906,

on a parcel of eligible property to the department of treasury

under this subsection, the percentage of local taxes levied on that

parcel and used to reimburse eligible activities for a project

under a brownfield plan shall not exceed the percentage of local

taxes levied on that parcel that would have been used to reimburse

eligible activities for the project under a brownfield plan if the

3 mills of the taxes levied under the state education tax, 1993 PA

331, MCL 211.901 to 211.906, on that parcel were not paid to the

department of treasury under this subsection. If, due to an appeal

of any tax assessment, an authority is required to reimburse a

taxpayer for any portion of the 3 mills that are paid to the

department of treasury under this subsection, the department of

treasury shall reimburse that amount to the authority within 30

days after receiving a request from the authority for

reimbursement.

     (22) The duration of capture of tax increment revenues under a

brownfield plan for a particular eligible property shall not exceed

the lesser of the period authorized under subsections (4) and (5)

or 30 years from the beginning date of the capture of tax increment

revenues for that eligible property. The beginning date of capture

of tax increment revenues for an eligible property shall not be

later than 5 years following the date of the resolution including

the eligible property in the brownfield plan. The authority may

amend the beginning date of capture of tax increment revenues for a

particular eligible property to a date not later than 5 years

following the date of the resolution including the eligible

property in the brownfield plan. The authority may not amend the

beginning date of capture of tax increment revenues for a

particular eligible property if the authority has begun to

reimburse eligible activities from the capture of tax increment

revenues from that eligible property. Any tax increment revenues

captured from an eligible property before the beginning date of

capture of tax increment revenues for that eligible property shall

revert proportionately to the respective tax bodies. If an

authority amends the beginning date for capture of tax increment

revenues that includes the capture of tax increment revenues for

school operating purposes, then the authority shall notify the

department or the Michigan strategic fund, as applicable, within 30

days after amending the beginning date.

     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 combined brownfield

plan or a work plan approved by the department after July 24, 1996.

and before January 1, 2013. However, except as provided in

subdivision (e), an authority may use taxes levied for school

operating purposes captured from eligible property without the

approval of a work plan by the department for the reasonable costs

of 1 or more of the following:

     (i) Site investigation activities required to conduct a

baseline environmental assessment and to evaluate compliance with

section 20107a of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20107a.

     (ii) Completing a baseline environmental assessment report.

     (iii) Preparing a plan for compliance with section 20107a of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.20107a.

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

other than activities that are exempt from the work plan approval

process under subsection (1)(a), 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 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.

(b) (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).

(c) (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 may use

taxes levied for school operating purposes captured from eligible

property for response activities associated with a landfill.

(d) (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

combined brownfield plan or a work plan for the eligible property.

, including the actual cost of the review of the work plan under

this section.

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

subsection (1)(a), or (b), 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 part of a work plan, for each

eligible activity to be undertaken.

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

under subsection (2) or a portion of a work plan that pertains to

only baseline environmental assessment activities or due care

activities, or both, the department shall review the work plan

according to subsection (4) and 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 to meet the criteria of subsection

(4), including, but not limited to, individual activities to be

added or deleted from the work plan and revision of costs.

     (c) If the work plan lacks sufficient information for the

department to respond under subdivision (a), (b), or (d) for any

specific activity, a letter stating with specificity the necessary

additions or changes to the work plan to be submitted before that

activity will be considered by the department. The department shall

respond under subdivision (a), (b), or (d) according to this

section for the other activities in the work plan.

     (d) A denial if the property is not an eligible property under

this act, if the work plan contemplates the use of taxes levied for

school operating purposes prohibited by subsection (1)(e), (1)(c),

or for any specific activity if the activity is prohibited by

subsection (1)(d). (1)(b). The department may also deny any

activity in a work plan that does not meet the conditions in

subsection (4) only if the department cannot respond under

subdivision (b) or (c). The department shall accompany the denial

with a letter that states with specificity the reason for the

denial. The department shall respond under subdivision (a), (b), or

(c) according to this section for any activities in the work plan

that are not denied under this subdivision. If the department

denies all or a portion of a work plan under this subdivision, the

authority may subsequently resubmit the work plan.

     (4) The department may approve a work plan if the following

conditions have been met:

     (a) Whether some or all of the activities constitute due care

activities or additional response activities other than activities

that are exempt from the work plan approval process under

subsection (1)(a).

     (b) The due care activities and response activities, other

than the activities that are exempt from the work plan approval

process under subsection (1)(a), are protective of the public

health, safety, and welfare and the environment. The department may

approve additional response activities that are more protective of

the public health, safety, and welfare and the environment than

required by section 20107a of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20107a, if those

activities provide public health or environmental benefit. In

review of a work plan that includes activities that are more

protective of the public health, safety, and welfare and the

environment, the department's considerations may include, but are

not limited to, all of the following:

     (i) Proposed new land use and reliability of restrictions to

prevent exposure to contamination.

     (ii) Cost of implementation activities minimally necessary to

achieve due care compliance, the incremental cost of all additional

response activities relative to the cost of all response

activities, and the total cost of all response activities.

     (iii) Long-term obligations associated with leaving

contamination in place and the value of reducing or eliminating

these obligations.

     (c) The estimated costs for the activities as a whole are

reasonable for the stated purpose. Except as provided in

subdivision (b), the department shall make the determination in

this subdivision only after the department determines that the

conditions in subdivisions (a) and (b) have been met.

     (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, the authority may proceed with the

activities as outlined in the work plan as submitted for approval.

Except as provided in subsection (6), activities conducted pursuant

to a work 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). Within 45 days after receiving additional

information requested from the authority under subsection (3)(c),

the department shall review the additional information according to

subsection (4) and provide 1 of the responses described in

subsection (3) to the requesting authority for the specific

activity. If the department does not provide a response to the

requesting authority within 45 days after receiving the additional

information requested under subsection (3)(c), the activity is

approved under subsection (1).

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

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 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 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 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 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 activities 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 and if the department's written

response modifies an individual activity proposed by the work plan

of the authority in a manner that reduces or eliminates a proposed

response activity, the authority must complete those individual

activities in accordance with the department's response in order

for that portion of the work 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 to include additional response activities.

     (9) The department shall review the portion of a work plan

that includes additional response activities in accordance with

subsection (4).

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

submitted under this section constitutes a final decision in regard

to the use of taxes levied for school operating purposes but does

not restrict an authority's use of tax increment revenues

attributable to local taxes to pay for eligible activities under a

brownfield plan. If a person is aggrieved by the final decision,

the person may appeal under section 631 of the revised judicature

act of 1961, 1961 PA 236, MCL 600.631.

     (11) The Through December 31, 2012, 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) 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:as provided in section 16(4).

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

under subsection (2).

     (b) The amount of tax increment revenues approved by the

department in the immediately preceding calendar year, including

taxes levied for school operating purposes, to conduct eligible

activities.

     (13) To seek Michigan economic growth authority strategic fund

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 or reimbursement

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 strategic fund 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 strategic

fund 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.strategic fund.

     (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 project of the developer, landowner, or

corporate entity that is included in the work plan is financially

and 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 strategic fund considers appropriate for the

determination of eligibility or for approval of the work plan.

     (16) If the Michigan economic growth authority strategic fund

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 strategic fund

approval of a work plan under section 13(15) is final.

     (18) The Through December 31, 2012, the authority shall

reimburse the Michigan economic growth authority strategic fund for

the actual cost incurred by the Michigan economic growth authority

strategic fund or a contractor of the Michigan economic growth

authority strategic fund to review a work plan under this section.

     (19) The Michigan economic growth authority strategic fund

shall submit a report each year on or before March 1 to each member

of the legislature that contains all of the following:as provided

in section 16(4).

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

under subsection (13).

     (b) The amount of tax increment revenues approved by the

Michigan economic growth authority in the immediately preceding

calendar year, including taxes levied for school operating

purposes, to conduct eligible activities.

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

not used for eligible activities consistent with a combined

brownfield plan or a work plan approved by the department or the

Michigan economic growth authority strategic fund 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.

     (22) The department's approval of a work plan under subsection

(3)(a) or (b) does not imply an entitlement to reimbursement of the

costs of the eligible activities if the work plan is not

implemented as approved.

     (23) The applicant and the department can, by mutual

agreement, extend the time period for any review described in this

section. An agreement described in this subsection shall be

documented in writing.

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

for school operating purposes, the chairperson of the Michigan

strategic fund may approve combined brownfield plans and work plans

that address eligible activities described in section 13(15)

totaling an amount of $500,000.00 or less according to subsections

(13), (14), (15), (16), (17), and (18).

     (25) In lieu of seeking approval of a work plan under section

13(15) or subsection (1)(a), an authority may seek approval of a

combined brownfield plan from the department or Michigan strategic

fund under this subsection as follows:

     (a) To seek approval of a combined brownfield plan under this

subsection, the authority shall, at least 30 days before the

hearing on the combined brownfield plan to allow for consultation

between the authority and the department or the Michigan strategic

fund, provide notice that the authority will be seeking approval of

a combined brownfield plan in lieu of a work plan to 1 or more of

the following:

     (i) The department, if the combined brownfield plan involves

the use of taxes levied for school operating purposes to pay for

eligible activities that require approval by the department under

subsection (1)(a).

     (ii) The Michigan strategic fund, if the combined brownfield

plan involves the use of taxes levied for school operating purposes

to pay for eligible activities subject to subsection (15).

     (b) After the governing body approves a combined brownfield

plan, the authority shall submit the combined brownfield plan to

the department under the circumstances described in subdivision

(a)(i) or Michigan strategic fund under the circumstances described

in subdivision (a)(ii).

     (c) The department shall review a combined brownfield plan

according to subdivision (e). The Michigan strategic fund shall

review a combined brownfield plan according to subdivision (f).

     (d) Upon receipt of a combined brownfield plan under

subdivision (b), the department or Michigan strategic fund shall

provide 1 of the following written responses to the requesting

authority within 65 days:

     (i) An unconditional approval that includes an enumeration of

eligible activities and a maximum allowable capture amount.

     (ii) A conditional approval that delineates specific necessary

modifications to the combined brownfield plan, including, but not

limited to, individual activities to be added to or deleted from

the combined brownfield plan and revision of costs.

     (iii) A denial and a letter stating with specificity the reason

for the denial. If a combined brownfield plan is denied under this

subdivision, the combined brownfield plan may be subsequently

resubmitted.

     (e) The department may approve a combined brownfield plan if

the authority submits the information identified in subsection

(2)(b) to (e) and if the conditions identified in subsection (4)

are met.

     (f) The Michigan strategic fund shall consider the criteria

identified in subsection (15)(a) to (n) to the extent reasonably

applicable to the type of activities proposed as part of a combined

brownfield plan when approving or denying the combined brownfield

plan.

     (g) If the department or Michigan strategic fund issues a

written response to a requesting authority under subdivision (d)(i)

or (ii), the governing body or its designee may administratively

approve any modifications to a combined brownfield plan required by

the written response without the need to follow the notice and

approval process required by section 14(2) unless the modifications

add 1 or more parcels of eligible property or increase the maximum

amount of tax increment revenues approved for the project.

     (h) If the department or Michigan strategic fund fails to

provide a written response under subdivision (d) within 65 days

after receipt of a combined brownfield plan, the eligible

activities shall be considered approved as submitted.

     (i) The approval of a combined brownfield plan by the

department or Michigan strategic fund under this subsection is

final.

     Sec. 16. (1) The municipal and county treasurers shall

transmit tax increment revenues to the authority not more than 30

days after tax increment revenues are collected.

     (2) The authority shall expend the tax increment revenues

received only in accordance with the brownfield plan. All surplus

funds not deposited in the local site remediation revolving fund of

the authority under section 13(5) shall revert proportionately to

the respective taxing bodies, except as provided in section 15(20).

The governing body may abolish the plan when it finds that the

purposes for which the plan was established are accomplished.

However, the plan shall not be abolished until the principal and

interest on bonds issued under section 17 and all other obligations

to which the tax increment revenues are pledged have been paid or

funds sufficient to make the payment have been segregated.

     (3) The authority shall submit annually to the governing body,

and the state tax commission the department, and the Michigan

strategic fund a financial report on the status of the activities

of the authority for each calendar year. The report shall include

all of the following:

     (a) The amount and source of tax increment revenues received.

     (b) The amount and purpose of expenditures of tax increment

revenues.

     (c) The amount of principal and interest on all outstanding

indebtedness.

     (d) The initial taxable value of all eligible property subject

to the brownfield plan.

     (e) The captured taxable value realized by the authority for

each eligible property subject to the brownfield plan.

     (f) Information concerning any transfer of ownership of or

interest in each eligible property.The amount of actual capital

investment made for each project.

     (g) The amount of tax increment revenues attributable to taxes

levied for school operating purposes used for activities described

in section 15(1)(a) and section 2(m)(vii).2(n)(vii).

     (h) The number of residential units constructed or

rehabilitated for each project.

     (i) The amount, by square foot, of new or rehabilitated

residential, retail, commercial, or industrial space for each

project.

     (j) The number of new jobs created at the project.

(k) (h) All additional information that the governing body, or

the state tax commission the department, or the Michigan strategic

fund considers necessary.

     (4) The state tax commission department and the Michigan

strategic fund shall collect the financial reports submitted under

subsection (3), compile and analyze a combined report, which

includes the use of local taxes, taxes levied for school operating

purposes, and the state brownfield redevelopment fund, based on the

information contained in those reports and any additional

information considered necessary, and submit annually a report

based on that information to all of the following standing

committees each member of the legislature. :

     (a) In the house of representatives, the committees

 responsible for natural resource management, conservation,

environmental protection, commerce, economic development, and

taxation.

     (b) In the senate, the committees responsible for natural

resource management, conservation, environmental protection,

economic development, and taxation.

     (5) Beginning on January 1, 2013, all of the following

reporting obligations apply:

     (a) The department shall on a quarterly basis post on its

website the name, location, and amount of tax increment revenues,

including taxes levied for school operating purposes, for each

project approved by the department under this act during the

immediately preceding quarter.

     (b) The Michigan strategic fund shall on a quarterly basis

post on its website the name, location, and amount of tax increment

revenues, including taxes levied for school operating purposes, for

each project approved by the Michigan strategic fund under this act

during the immediately preceding quarter.

(6) (5) In addition to any other requirements under this act,

not less than once every 3 years beginning not later than June 30,

2008, the auditor general shall conduct and report a performance

postaudit on the effectiveness , efficiency, and economy of the

program established under this act. As part of the performance

postaudit, the auditor general shall assess the extent to which the

implementation of the program by the department and the Michigan

economic growth authority strategic fund facilitate and affect the

redevelopment or reuse of eligible property and identify any

factors that inhibit the program's effectiveness. The performance

postaudit shall also assess the extent to which the interpretation

of statutory language, the development of guidance or

administrative rules, and the implementation of the program by the

department and the Michigan economic growth authority strategic

fund is consistent with the fundamental objective of facilitating

and supporting timely and efficient brownfield redevelopment of

eligible properties. Copies of the performance postaudits shall be

provided to the governor, the clerk of the house of

representatives, the secretary of the senate, and the chairpersons

of the senate and house of representatives standing committees on

commerce and economic development.

     (7) The owner or developer for an active project included

within a brownfield plan must annually submit to the authority a

report on the status of the project. The report shall be in a form

developed by the authority and must contain information necessary

for the authority to report under subsection (3)(f), (h), (i), (j),

and (k). The authority may waive the requirement to submit a report

under this subsection. As used in this subsection, "active project"

means a project for which the authority is currently capturing

taxes under this act.

     (8) A brownfield plan or plan amendment may be abolished or

terminated according to this subsection subject to all of the

following:

     (a) The governing body may abolish a brownfield plan when it

finds that the purposes for which the plan was established are

accomplished.

     (b) The governing body may terminate a brownfield plan or plan

amendment for an eligible property if the project for which

eligible activities were identified in the brownfield plan or plan

amendment fails to occur with respect to the eligible property for

at least 5 years following the date of the resolution approving the

brownfield plan or plan amendment.

     (c) If a brownfield plan or plan amendment is terminated under

subdivision (b), the governing body may approve a new brownfield

plan or plan amendment for the eligible property under which tax

increment revenues may be captured for up to 30 years as provided

in section 13(22).

     (d) Notwithstanding anything in this subsection to the

contrary, a brownfield plan or plan amendment shall not be

abolished or terminated until the principal and interest on bonds

issued under section 17 and all other obligations to which the tax

increment revenues are pledged have been paid or funds sufficient

to make the payment have been identified or segregated.