SENATE BILL No. 534

 

 

May 24, 2007, Introduced by Senators RICHARDVILLE, PATTERSON, SANBORN, GILBERT, PAPPAGEORGE, JANSEN, ALLEN, BIRKHOLZ, BROWN, GARCIA, THOMAS, JACOBS and HUNTER and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1996 PA 381, entitled

 

"Brownfield redevelopment financing act,"

 

by amending section 2 (MCL 125.2652), as amended by 2006 PA 32.

 

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:

 

     (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.

 

     (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) "Department" means the department of environmental

 

quality.

 

     (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.

 

     (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.

 

     (m) "Eligible activities" or "eligible activity" does not

 

include activities related to multisource commercial hazardous

 

waste disposal wells as that term is defined in section 62506a of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.62506a, but means 1 or more of the following

 

regardless of whether it occurs before or after the adoption of the

 

work plan:

 

     (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,

 

functionally obsolete, or blighted, and except for purposes of


 

section 38d of the single business tax act, 1975 PA 228, MCL

 

208.38d, 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.

 

     (v) Relocation of public buildings or operations for economic

 

development purposes. with prior approval of the Michigan economic

 

development authority.

 

     (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, functionally obsolete, or blighted, as determined by the

 

governing body by resolution, 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 for preparation and administration of

 

brownfield plans and work plans.

 

     (n) "Eligible property" means property for which eligible

 

activities are identified under a brownfield plan that was used or

 

is currently used for commercial, industrial, or residential

 

purposes that is either in a qualified local governmental unit and

 

is a facility, functionally obsolete, or blighted or 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 or tax

 

reverted property owned or under the control of a land bank fast

 

track authority. Eligible property includes, to the extent included

 

in the brownfield plan, personal property located on the property.

 

Eligible property also includes qualified agricultural property

 

exempt under section 7ee of the general property tax act, 1893 PA


 

206, MCL 211.7ee, that is a facility or is otherwise contaminated,

 

is serviced by municipal sewer and water infrastructure, is

 

included in a master plan, and is zoned residential, commercial, or

 

industrial. Except as otherwise provided in this subdivision,

 

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.

 

     (o) "Facility" means that term as defined in section 20101 of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20101.

 

     (p) "Fiscal year" means the fiscal year of the authority.

 

     (q) "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.

 

     (r) "Governing body" means the elected body having legislative

 

powers of a municipality creating an authority under this act.

 

     (s) "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, 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.

 

     (t) "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.


 

     (u) "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.

 

     (v) "Local taxes" means all taxes levied other than taxes

 

levied for school operating purposes.

 

     (w) "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.

 

     (x) "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.

 

     (y) "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.

 

     (z) "Qualified local governmental unit" means that term as

 

defined in the obsolete property rehabilitation act, 2000 PA 146,

 

MCL 125.2781 to 125.2797.

 

     (aa) "Qualified taxpayer" means that term as defined in

 

sections 38d and 38g of the single business tax act, 1975 PA 228,

 

MCL 208.38d and 208.38g.

 

     (bb) "Remedial action plan" means a plan that meets both of

 

the following requirements:

 

     (i) Is a remedial action plan as that term is defined in

 

section 20101 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.20101.

 

     (ii) Describes each individual activity to be conducted to

 

complete eligible activities and the associated costs of each

 

individual activity.

 

     (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.

 

     (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; 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.

 

     (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. 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.

 

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

 

27a of the general property tax act, 1893 PA 206, MCL 211.27a.

 

     (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).

 

     (hh) "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.

 

     (ii) "Zone" means, for an authority established before June 6,

 

2000, a brownfield redevelopment zone designated under this act.