September 8, 2016, Introduced by Reps. Theis, Chatfield, Somerville, Price and Maturen and referred to the Committee on Local Government.
A bill to amend 2008 PA 94, entitled
"Water resource improvement tax increment finance authority act,"
by amending sections 3, 10, 16, and 23 (MCL 125.1773, 125.1780,
125.1786, and 125.1793), sections 3 and 10 as amended by 2013 PA
25.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Operations" means office maintenance, including salaries
and expenses of employees, office supplies, consultation fees,
design costs, and other expenses incurred in the daily management
of the authority and planning of its activities.
(b) "Parcel" means an identifiable unit of land that is
treated as separate for valuation or zoning purposes.
(c) "Public facility" means a street, and any improvements to
a street, including street furniture and beautification, park,
parking facility, recreational facility, right-of-way, structure,
waterway, bridge, lake, pond, canal, utility line or pipe, or
building, including access routes designed and dedicated to use by
the public generally, or used by a public agency, that is related
to access to inland lakes or a water resource improvement, or means
a water resource improvement. Public facility includes an
improvement to a facility used by the public or a public facility
as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351,
if the improvement complies with the barrier free design
requirements of the state construction code promulgated under the
Stille-DeRossett-Hale single state construction code act, 1972 PA
230,
MCL 125.1501 to 125.1531.
(d) "Specific local tax" 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 technology park development act,
1984 PA 385, MCL 207.701 to 207.718, section 5 of the state
essential services assessment act, 2014 PA 92, MCL 211.1055,
section 5 of the alternative state essential services assessment
act, 2014 PA 93, MCL 211.1075, or 1953 PA 189, MCL 211.181 to
211.182. The initial assessed value or current assessed value of
property subject to a specific local tax shall be the quotient of
the specific local tax paid divided by the ad valorem millage rate.
The state tax commission shall prescribe the method for calculating
the initial assessed value and current assessed value of property
for which a specific local tax was paid in lieu of a property tax.
(e) "State fiscal year" means the annual period commencing
October 1 of each year.
(f) "Tax increment revenues" means the amount of ad valorem
property taxes and specific local taxes attributable to the
application of the levy of all taxing jurisdictions upon the
captured assessed value of real and personal property in the
development area. Tax increment revenues do not include any of the
following:
(i) Taxes under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(ii) Taxes levied by local or intermediate school districts.
(iii) Ad valorem property taxes attributable either to a
portion of the captured assessed value shared with taxing
jurisdictions within the jurisdictional area of the authority or to
a portion of value of property that may be excluded from captured
assessed value or specific local taxes attributable to the ad
valorem property taxes.
(iv) Ad valorem property taxes excluded by the tax increment
financing plan of the authority from the determination of the
amount of tax increment revenues to be transmitted to the authority
or specific local taxes attributable to the ad valorem property
taxes.
(v) Ad valorem property taxes exempted from capture under
section 15(5) or specific local taxes attributable to the ad
valorem property taxes.
(vi) Ad valorem property taxes specifically levied for the
payment of principal and interest of obligations approved by the
electors or obligations pledging the unlimited taxing power of the
local governmental unit or specific taxes attributable to those ad
valorem property taxes.
(vii) Ad valorem property taxes or specific local taxes levied
for a millage approved by the electors after December 31, 2016,
except for 1 or more of the following:
(A) A millage approved by the electors under section 34d(11)
of the general property tax act, 1893 PA 206, MCL 211.34d.
(B) A renewal of a millage that was authorized on or before
December 31, 2016.
(g) "Water resource improvement" means enhancement of water
quality and water dependent natural resources, including, but not
limited to, the following:
(i) The elimination of the causes and the proliferation of
aquatic nuisance species, as defined in section 3101 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.3101.
(ii) Sewer systems that service existing structures that have
failing on-site disposal systems.
(iii) Storm water systems that service existing
infrastructure.
(iv) Dredging, removal of spoils, or other improvements or
maintenance activities that enhance navigability of a waterway.
(h) "Water resource improvement district" or "district" means
1 or more of the following:
(i) An inland body of water and land that is up to 1 mile from
the shoreline of an inland lake that contains 1 or more public
access points.
(ii) An inland body of water and parcels of land that are
contiguous to the shoreline of an inland lake that does not contain
a public access point.
(iii) The shoreline of a harbor on a Great Lake and 1 or more
of the following:
(A) Land up to 1 mile from the shoreline of the harbor.
(B) A tributary to that Great Lake harbor up to 5 miles
upstream from the shoreline of the Great Lake harbor.
(C) Land up to 1 mile from each bank of the tributary
described in sub-subparagraph (B).
Sec. 10. (1) The board may do any of the following:
(a) Prepare an analysis of water resource improvement and
access to inland lakes issues taking place in the development area.
(b) Study and analyze the need for water resource improvements
and access to inland lakes upon the development area.
(c) Plan and propose the construction, renovation, repair,
remodeling, rehabilitation, restoration, preservation, or
reconstruction of a public facility that may be necessary or
appropriate to the execution of a plan that, in the opinion of the
board, aids in water resource improvement or access to inland lakes
in the development area. The board is encouraged to develop a plan
that conserves the natural features, reduces impervious surfaces,
and uses landscaping and natural features to reflect the
predevelopment site.
(d) Plan, propose, and implement an improvement to a public
facility within the development area to comply with the barrier
free design requirements of the state construction code promulgated
under the Stille-DeRossett-Hale single state construction code act,
1972 PA 230, MCL 125.1501 to 125.1531.
(e) Develop long-range plans for water resource improvement
and access to inland lakes within the district.
(f) Implement any plan of development for water resource
improvement and access to inland lakes in the development area
necessary to achieve the purposes of this act in accordance with
the powers of the authority granted by this act.
(g) Make and enter into contracts necessary or incidental to
the exercise of its powers and the performance of its duties.
(h) Acquire by purchase or otherwise, on terms and conditions
and in a manner the authority considers proper or own, convey, or
otherwise dispose of, or lease as lessor or lessee, land and other
property, real or personal, or rights or interests in the property,
that the authority determines is reasonably necessary to achieve
the purposes of this act, and to grant or acquire licenses,
easements, and options.
(i) Improve land and construct, reconstruct, rehabilitate,
restore and preserve, equip, clear, improve, maintain, and repair
any public facility, building, and any necessary or desirable
appurtenances to those buildings and operate a water resource
improvement, as determined by the authority to be reasonably
necessary to achieve the purposes of this act, within the
development area for the use, in whole or in part, of any public or
private person or corporation, or a combination thereof.
(j) Fix, charge, and collect fees, rents, and charges for the
use of any facility, building, or property under its control or any
part of the facility, building, or property, and pledge the fees,
rents, and charges for the payment of revenue bonds issued by the
authority.
(k) Lease, in whole or in part, any facility, building, or
property under its control.
(l) Accept grants and donations of property, labor, or other
things of value from a public or private source.
(m) Acquire and construct public facilities.
(n) Plan and implement water resource improvements in harbors
of the Great Lakes and their tributaries, including, but not
limited to, dredging, removal of spoils, and other improvements or
maintenance activities that enhance navigability of a waterway.
(2) The board shall prepare a water resource management plan
in consultation with the department of environmental quality, the
department of natural resources, or any other entity with expertise
in water quality management and invasive species management.
(3) The board may apply for the necessary state and federal
permits required for a public facility or a water resource
improvement under this act.
(4) The municipality creating the authority shall ensure that
a website is created, operated, and regularly maintained with all
authority records and documents, for the immediately preceding 5
fiscal years, including all of the following:
(a) Minutes of all board meetings.
(b) Annual budget.
(c) Annual audits.
(d) Currently adopted development plan.
(e) Currently adopted tax increment finance plan.
(f) List of all authority sponsored and managed events.
(g) Current authority staff contact information.
(h) All promotional and marketing materials.
(i) Amount of tax increment revenues captured for each taxing
jurisdiction that levies ad valorem property taxes or specific
local taxes within the boundaries of the authority.
(j) Current contracts and other documents related to
management of the authority.
(5) Subject to subsection (6), the requirements in subsection
(4) are required for records and documents related to fiscal years
starting the fiscal year of the date of enactment of the amendatory
act that added this subsection.
(6) The records and documents described in subsection (4)(f),
(g), (h), and (j) shall be required for 2 fiscal years immediately
preceding the date of enactment of the amendatory act that added
this subsection.
(7) The requirements of this section shall not take effect
until 60 days after the end of an authority's current fiscal year
as of the date of enactment of the amendatory act that added this
subsection.
(8) Each year, the board shall hold not fewer than 1
informational meeting. The purpose of the informational meeting
will be to highlight the information described in subsection (4)(a)
to (j). Notice of an informational meeting shall be posted on the
municipality's or authority's website not less than 20 days before
the date of the informational meeting. Not less than 20 days before
the informational meeting, the board shall mail notice of the
informational meeting to the governing body of each taxing
jurisdiction levying taxes that are subject to capture by the
authority.
Sec. 16. (1) The municipal and county treasurers shall
transmit tax increment revenues to the authority.
(2) The authority shall expend the tax increment revenues
received for the development program only under the terms of the
tax increment financing plan. Unused funds shall revert
proportionately to the respective taxing bodies. Tax increment
revenues shall not be used to circumvent existing property tax
limitations. The governing body of the municipality may abolish the
tax increment financing plan if it finds that the purposes for
which it was established are accomplished. However, the tax
increment financing plan shall not be abolished, be allowed to
expire, or otherwise terminate until the principal of, and interest
on, bonds issued under section 17 have been paid or funds
sufficient to make the payment have been segregated.
(3) Annually the authority shall submit to the governing body
of the municipality, the governing body of a taxing unit levying
taxes subject to capture by an authority, and the state tax
commission a report on the status of the tax increment financing
account. The report shall be published in a newspaper of general
circulation in the municipality or on a website of the authority or
the municipality. The report shall include the following:
(a) The amount and source of revenue in the account.
(b) The amount in any bond reserve account.
(c) The amount and purpose of expenditures from the account.
(d) The amount of principal and interest on any outstanding
bonded indebtedness.
(e)
The initial assessed value of the project development
area.
(f) The captured assessed value retained by the authority.
(g) The tax increment revenues received.
(h) The number of public facilities developed.
(i) The number of water resource improvements made.
(j) A brief description of each water resource improvement
made within the district.
(k) The total new public investment by the authority in each
of the development areas.
(l) The totals received by the authority or contributions made
by sponsorships, cash, and in-kind services for events, programs,
and projects within each development area.
(m) The amounts of any funds other than tax increments
revenues used by the authority for any projects or activities in
the development areas.
(n) The current assessed value of the development area.
(o) The captured assessed value retained by the authority for
each taxing jurisdiction.
(p) The amount of tax increment revenues used for the
operation of the authority.
(q) (k)
Any additional information the
governing body
considers necessary.
(4) Tax increment revenues shall be expended within 5 years of
their receipt. However, tax increment revenues may be accumulated
for a period longer than 5 years, provided the tax increment
financing plan specifically provides for all of the following:
(a) The reasons for accumulating those funds.
(b) A time frame when the fund will be expended.
(c) The uses for which the fund will be expended.
Sec. 23. (1) The state tax commission may institute
proceedings to compel enforcement of this act and may send written
notification to an authority failing to comply with this act and
the governing body of the municipality that established the
authority of a violation of any provision of this act.
(2) The state tax commission may promulgate rules necessary
for the administration of this act under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) If the state tax commission notifies an authority in
writing that the authority failed to comply with any provision of
this act, that authority shall not capture any tax increment
revenues that are in excess of amounts necessary to pay bonded
indebtedness or other obligations for the period of noncompliance
as determined by the state tax commission. Any excess funds
captured shall be returned to the taxing jurisdiction from which
they were captured as provided in section 16(2).