HOUSE BILL No. 6176

 

June 8, 2006, Introduced by Reps. Tobocman, Amos, Proos, Donigan, Byrnes, Clemente, Mayes, Kolb, Lipsey, Kahn, Murphy, Hunter, Alma Smith, Kathleen Law, Accavitti, David Law, Ball, Palmer, Espinoza, McDowell, Gonzales, Polidori, Cushingberry, Sak, Anderson, Stewart, Kooiman and Gaffney and referred to the Committee on Commerce.

 

     A bill to create the cultural redevelopment authority; to

 

create and operate certain cultural redevelopment districts; to

 

foster economic opportunities in this state; to facilitate economic

 

development; to stimulate cultural, industrial, commercial, and

 

residential improvements; to prevent physical and infrastructure

 

deterioration of geographic areas in this state; to authorize

 

expenditures; to provide exemptions and credits from certain taxes;

 

to create certain obligations of this state and local governmental

 

units; to provide for appropriations; and to prescribe the powers

 

and duties of certain state and local departments, agencies, and

 

officials.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 


"cultural redevelopment district authority act".

 

     Sec. 2. The legislature of this state finds and declares that

 

there exists in this state continuing need for programs to assist

 

certain local governmental units in encouraging cultural

 

development, cultural redevelopment, economic development, the

 

consequent job creation and retention, and ancillary economic

 

growth in this state. To achieve these purposes, the legislature

 

determines it is necessary to assist and encourage the creation of

 

cultural redevelopment districts and provide temporary relief from

 

certain taxes within those districts.

 

     Sec. 3. As used in this act:

 

     (a) "Artist" means a person who creates or executes an

 

artistic work.

 

     (b) "Artist materials" means materials used directly in the

 

creation of artistic work that are for sale or purchased within the

 

district.

 

     (c) "Artistic work" means an original and creative work,

 

whether written, composed, created, or executed for one-of-a-kind

 

or limited production, which is 1 of the following:

 

     (i) A book or other writing.

 

     (ii) A play or the performance of a play.

 

     (iii) A musical composition or the performance of the

 

composition.

 

     (iv) A painting or other like picture.

 

     (v) A sculpture.

 

     (vi) A traditional and fine craft.

 

     (vii) The creation of a film, the acting of a film, or

 


photography.

 

     (viii) The creation of a dance or the performance of the dance.

 

     (ix) A design art.

 

     (d) "Authority" means the cultural redevelopment district

 

authority created in section 4.

 

     (e) "Board" means the board of directors of the cultural

 

redevelopment authority board created in section 5.

 

     (f) "Department" means the department of labor and economic

 

growth.

 

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

 

criteria in section 7 and includes all of the following:

 

     (i) A map of the proposed cultural redevelopment district that

 

indicates the geographic boundaries, the total area, and the

 

present use and conditions generally of the land and structures

 

within those boundaries.

 

     (ii) Evidence of community support and commitment from

 

cultural, residential, and business interests.

 

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

 

opportunity and expansion, facilitate infrastructure improvement,

 

and identify job opportunities.

 

     (iv) Current and anticipated improvements in infrastructure and

 

social, economic, and demographic characteristics of the proposed

 

district.

 

     (v) Any other information required by the board.

 

     (h) "District" means a cultural redevelopment district created

 

under section 6.

 

     (i) "Local governmental unit" means a county, city, village,

 


or township.

 

     (j) "Person" means an individual, partnership, corporation,

 

association, limited liability company, governmental entity, or

 

other legal entity.

 

     (k) "Qualified business" means a person who creates an

 

artistic work or assists others in the creation, display, or sale

 

of an artistic work.

 

     (l) "Qualified local governmental unit" means a city, village,

 

or township.

 

     Sec. 4. (1) The cultural redevelopment district authority is

 

created as a public body corporate and politic within the

 

department.

 

     (2) The authority shall exercise its duties independently of

 

the department. However, the budgeting, procurement, and related

 

administrative functions of the authority shall be conducted by the

 

department.

 

     Sec. 5. (1) The authority shall exercise its duties through

 

its board of directors.

 

     (2) The board shall be made up of 13 members as follows:

 

     (a) The director of the department of labor and economic

 

growth.

 

     (b) The director of the department of history, arts, and

 

libraries.

 

     (c) The director of the Michigan council for arts and cultural

 

affairs.

 

     (d) The chief executive officer of the Michigan economic

 

development corporation.

 


     (e) The director of the state historic preservation office of

 

the Michigan historical center of the department of history, arts,

 

and libraries.

 

     (f) The state librarian.

 

     (g) The director of the Michigan state housing development

 

authority.

 

     (h) Four members with knowledge, skill, or experience in

 

private development or local arts or cultural organizations

 

appointed by the governor with the advice and consent of the

 

senate.

 

     (i) One member appointed by the governor from a list of 2 or

 

more individuals selected by the majority leader of the senate,

 

with knowledge, skill, or experience in private development or

 

local arts or cultural organizations.

 

     (j) One member appointed by the governor from a list of 2 or

 

more individuals selected by the speaker of the house of

 

representatives, with knowledge, skill, or experience in private

 

development or local arts or cultural organizations.

 

     (3) The appointed members shall serve for terms of 4 years. Of

 

the 2 members first appointed, 1 shall be appointed for an initial

 

term of 1 year and 1 shall be appointed for an initial term of 2

 

years. The appointed members shall serve until a successor is

 

appointed. A vacancy shall be filled for the balance of the

 

unexpired term in the same manner as the original appointment.

 

     (4) The chief executive officer or director of any state

 

department or agency who is a designated member of the board may

 

appoint a representative to serve in his or her absence.

 


     (5) Members of the board shall serve without compensation but

 

may receive reasonable reimbursement for necessary travel and

 

expenses incurred in the discharge of their duties.

 

     (6) The board shall select a board member to serve as

 

chairperson of the board.

 

     (7) A majority of the appointed and serving members of the

 

board shall constitute a quorum of the board for the transaction of

 

business. A member may participate in a meeting by the use of

 

amplified telephonic or video conferencing equipment. A member

 

participating by the use of telephonic or video conferencing

 

equipment shall be considered to be present for purposes of a

 

quorum and for purposes of voting. Actions of the board shall be

 

approved by a majority vote of the members present at a meeting.

 

     (8) The members of the board and officers and employees of the

 

authority are subject to 1968 PA 317, MCL 15.321 to 15.330, or 1968

 

PA 318, MCL 15.301 to 15.310.

 

     (9) A member of the board or officer, employee, or agent of

 

the authority shall discharge the duties of his or her position in

 

a nonpartisan manner, with good faith, and with that degree of

 

diligence, care, and skill that an ordinarily prudent person would

 

exercise under similar circumstances in a like position.

 

     Sec. 6. (1) One or more qualified local governmental units may

 

apply to the board to designate a portion of the qualified local

 

governmental unit or units as a district if all of the following

 

criteria are met:

 

     (a) The geographic area of the proposed district is located

 

within the boundaries of the qualified local governmental unit or

 


units that apply.

 

     (b) The application includes a development plan.

 

     (c) The application includes the proposed duration of district

 

status, not to exceed 10 years, except as otherwise provided in

 

this section.

 

     (d) If the qualified local governmental unit is a city, that

 

city's mayor's written approval of the application.

 

     (2) A qualified local governmental unit may submit not more

 

than 1 application to the board for designation as a district.

 

     Sec. 7. (1) The board shall review all applications submitted

 

by qualified local governmental units and determine which

 

applications meet the criteria contained in section 6.

 

     (2) The board shall do all of the following:

 

     (a) Designate districts.

 

     (b) Subject to subsection (3), approve or reject the duration

 

of district status.

 

     (c) Subject to subsection (3), approve or reject the

 

geographic boundaries and the total area of the district as

 

submitted in the application.

 

     (d) Approve or reject each exemption, deduction, or credit as

 

described in section 9.

 

     (3) The board shall not alter the geographic boundaries of the

 

district or the duration of district status described in the

 

application unless the qualified local governmental unit or units

 

and the local governmental unit or units in which the district is

 

to be located consent by resolution to the alteration.

 

     (4) The designation of a district under this act shall take

 


effect on January 1 in the year following designation.

 

     Sec. 8. The board shall consider the following criteria in

 

designating a district:

 

     (a) Giving priority to applications that include new business

 

activity.

 

     (b) Evidence of adverse economic and socioeconomic conditions

 

within the proposed district.

 

     (c) The viability of the development plan.

 

     (d) Whether the development plan is creative and innovative.

 

     (e) Public and private commitment to and other resources

 

available for the proposed district.

 

     (f) How district designation would relate to a broader plan

 

for the community as a whole.

 

     (g) The level of demonstrated cooperation from artists and the

 

local arts community.

 

     (h) Any other information required by the board.

 

     Sec. 9. An artist who is a resident of or conducts business in

 

a district or a qualified business that is located and conducts

 

business activity within a district shall receive the exemption,

 

deduction, or credit as determined by the board as provided in the

 

following for the period provided under section 6(2)(b):

 

     (a) Sections 36f and 36g of the single business tax act, 1975

 

PA 228, MCL 208.36f and 208.36g.

 

     (b) Sections 272 and 275 of the income tax act of 1967, 1967

 

PA 281, MCL 206.272 and 206.275.

 

     (c) Section 4cc of the general sales tax act, 1933 PA 167, MCL

 

205.54cc.

 


     Sec. 10. The form of the application for a district

 

designation shall be as specified by the department. The board may

 

request any information from an applicant, in addition to that

 

contained in an application, as may be needed to permit the board

 

to discharge its responsibilities under this act.

 

     Sec. 11. This state shall reimburse the school aid fund for

 

all revenues lost as the result of the establishment of a district.

 

Foundation allowances calculated under section 20 of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1620, shall not be

 

reduced as a result of lost revenues arising from this act.

 

     Sec. 12. (1) The board shall conduct all business at public

 

meetings held in compliance with the open meetings act, 1976 PA

 

267, MCL 15.261 to 15.275. Public notice of the time, date, and

 

place of each meeting shall be given in the manner required by the

 

open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (2) A record or a portion of a record, material, application,

 

or other data received, prepared, used, or retained by the board is

 

subject to the freedom of information act, 1976 PA 442, MCL 15.231

 

to 15.246.

 

     Sec. 13. This act shall be construed liberally to effectuate

 

the legislative intent and the purposes of this act and as complete

 

and independent authority for the performance of each and every act

 

and thing authorized by this act, and all powers granted by this

 

act shall be broadly interpreted to effectuate the intent and

 

purposes of this act and not as a limitation of powers.

 

     Sec. 14. The department shall annually report to the

 

legislature on the economic effects of this act in each district.

 


The report shall include, but is not limited to, all of the

 

following for each district:

 

     (a) Number of new jobs created.

 

     (b) Percentage change in aggregate taxable value and state

 

equalized value.

 

     (c) Average wage of new jobs created.

 

     (d) Percentage change of adjusted gross income of residents.

 

     (e) The estimated change in the population from the

 

immediately preceding year.