SB-0111, As Passed Senate, February 22, 2017

SENATE BILL No. 111

February 7, 2017, Introduced by Senators HORN, MACGREGOR, CASPERSON, ZORN, HANSEN, STAMAS, SCHMIDT, GREEN, JONES, KOWALL, HERTEL, WARREN, YOUNG, KNEZEK and BRANDENBURG and referred to the Committee on Economic Development and International Investment.

A bill to amend 1996 PA 381, entitled

"Brownfield redevelopment financing act,"

by amending sections 2, 8a, 11, 13, 13b, 15, and 16 (MCL 125.2652,

125.2658a, 125.2661, 125.2663, 125.2663b, 125.2665, and 125.2666),

as amended by 2016 PA 471, and by adding sections 13c and 14a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Authority" means a brownfield redevelopment authority

created under this act.

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

defined in part 201 or 213.

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 by or under the control of a land bank

fast track authority, 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 buried subsurface demolition debris

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

(d) "Board" means the governing body of an authority.

(e) "Brownfield plan" means a plan that meets the requirements

of section 13 and section 13b and is adopted under section 14.

(f) "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.

(g) "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.

(h) "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(20).

(i) "Construction period tax capture revenues" means funds

equal to the amount of income tax levied and imposed in a calendar

year upon wages paid to individuals physically present and working

within the eligible property for the construction, renovation, or

other improvement of eligible property that is an eligible activity

within a transformational brownfield plan. As used in this

subdivision, "wages" means that term as defined in section 3401 of

the internal revenue code of 1986, 26 USC 3401. To calculate the

amount of construction period tax capture revenues for a calendar

year under a transformational brownfield plan, the state treasurer

shall do all of the following:

(i) Require the owner or developer of the eligible property to

report the total taxable wages paid to individuals for the

construction, renovation, or other improvement of eligible property

that is an eligible activity within the transformational brownfield

plan. The wages reported under this subparagraph shall exclude any

wages paid to employees of the owner or developer.

(ii) Multiply the amount under subparagraph (i) by the

effective rate as determined by the state treasurer at which the

income tax is levied on an individual in this state. The state

treasurer shall estimate the effective rate by taking into account

the effect of any exemptions, additions, subtractions, and credits

allowable under part 1 of the income tax act of 1967, 1967 PA 281,

MCL 206.1 to 206.532. The state treasurer may require the owner or

developer to submit any information necessary for the calculation

under this subparagraph.

(iii) The wage information and other information required

under this subdivision shall be provided to the department of

treasury by the owner or developer in a manner prescribed by the

state treasurer. The state treasurer may require the owner or

developer to provide a review or reconciliation of the wages by an

independent auditing firm.

(j) ~~(i)~~ "Corrective action" means that term as defined in part

111 or part 213.

(k) ~~(j)~~ "Department" means the department of environmental

quality.

(l) ~~(k)~~ "Department specific activities" means baseline

environmental assessments, due care activities, response

activities, and other environmentally related actions that are

eligible activities and are identified as a part of a brownfield

plan that are in addition to the minimum due care activities

required by part 201, including, but not limited to:

(i) Response activities that are more protective of the public

health, safety, and welfare and the environment than required by

section 20107a, 20114, or 21304c of the natural resources and

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

324.20114, and 324.21304c.

(ii) Removal and closure of underground storage tanks pursuant

to part 211 or 213.

(iii) Disposal of solid waste, as defined in part 115 of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.11501 to 324.11554, from the eligible property, provided it

was not generated or accumulated by the authority or the developer.

(iv) Dust control related to construction activities.

(v) Removal and disposal of lake or river sediments exceeding

part 201 criteria from, at, or related to an economic development

project where the upland property is either a facility or would

become a facility as a result of the deposition of dredged spoils.

(vi) Industrial cleaning.

(vii) Sheeting and shoring necessary for the removal of

materials exceeding part 201 criteria at projects requiring a

permit pursuant to part 301, 303, or 325 of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.30101 to

324.30113, MCL 324.30301 to 324.30328, or MCL 324.32501 to

324.32515a.

(viii) Lead, mold, or asbestos abatement when lead, mold, or

asbestos pose an imminent and significant threat to human health.

(m) (l) "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 or 21304c of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.20107a and 324.21304c.

(n) ~~(m)~~ "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 or contained a manufacturing operation that

consists or consisted 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.

(o) ~~(n)~~ "Eligible activities" or "eligible activity" means 1

or more of the following:

(i) For all eligible properties, eligible activities include

all of the following:

(A) Department specific activities.

(B) Relocation of public buildings or operations for economic

development purposes.

(D) Reasonable costs incurred to develop and prepare

brownfield plans, combined brownfield plans, or work plans for the

eligible property, including legal and consulting fees that are not

in the ordinary course of acquiring and developing real estate.

(E) Reasonable costs of brownfield plan and work plan

implementation, including, but not limited to, tracking and

reporting of data and plan compliance and the reasonable costs

incurred to estimate and determine actual costs incurred, whether

those costs are incurred by a municipality, authority, or private

developer.

(F) Demolition of structures that is not a response activity.

(G) Lead, asbestos, or mold abatement.

(H) The repayment of principal of and interest on any

obligation issued by an authority to pay the costs of eligible

activities attributable to an eligible property.

(ii) For eligible properties located in a qualified local unit

of government, or an economic opportunity zone, or that is a former

mill, eligible activities include:

(A) The activities described in subparagraph (i).

(B) Infrastructure improvements that directly benefit eligible

property.

(iii) For eligible properties that are owned by or under the

control of a land bank fast track authority, or a qualified local

unit of government or authority, eligible activities include:

(A) The eligible activities described in subparagraphs (i) and

(ii).

(B) Assistance to a land bank fast track authority in clearing

or quieting title to, or selling or otherwise conveying, property

owned by 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.

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

conveying, property owned by 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.

(iv) For eligible activities on eligible property that is

included in a transformational brownfield plan, any demolition,

construction, restoration, alteration, renovation, or improvement

of buildings or site improvements on eligible property, including

infrastructure improvements that directly benefit eligible

property.

(p) ~~(o)~~ "Eligible property" means, except as otherwise

provided in this subdivision, 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 or a site or property as those terms are defined in part

213, 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, historic resource, functionally obsolete, blighted, or a

site or property as those terms are defined in part 213, 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 by or under the control

of a land bank fast track authority.

(iv) Is a transit-oriented development or transit-oriented

property.

(v) Is located in a qualified local governmental unit and

contains a targeted redevelopment area.

(vi) Is undeveloped property that was eligible property in a

previously approved brownfield plan abolished under section 14(8).

(vii) (vi) 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.

(q) ~~(p)~~ "Environmental insurance" means liability insurance

for environmental contamination and cleanup that is not otherwise

required by state or federal law.

(r) ~~(q)~~ "Facility" means that term as defined in part 201.

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

(t) ~~(s)~~ "Former mill" means a former mill that has not been

used for industrial purposes for the immediately preceding 2 years,

that is not located in a qualified local governmental unit, that is

a facility or is a site or a property as those terms are defined in

part 213, functionally obsolete, or blighted, and that is located

within 15 miles of 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 municipality with a population of less than 10,000.

(u) ~~(t)~~ "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.

(v) ~~(u)~~ "Governing body" means the elected body having

legislative powers of a municipality creating an authority under

this act.

(w) ~~(v)~~ "Historic resource" means that term as defined in

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

125.2090a.

(x) "Income tax" means the tax levied and imposed under part 1

of the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532.

(y) "Income tax capture revenues" means funds equal to the

amount for each tax year by which the aggregate income tax from

individuals domiciled within the eligible property subject to a

transformational brownfield plan exceeds the initial income tax

value. The state treasurer shall calculate annually the income tax

capture revenues associated with each transformational brownfield

plan. In calculating income tax capture revenues, the state

treasurer shall subtract from the aggregate amount of income tax

credits under sections 255, 265, 266, and chapter 9 of the income

tax act of 1967, 1967 PA 281, MCL 206.255, 206.265, 206.266, and

206.501 to 206.532. The state treasurer shall require the owner or

developer of the eligible property to provide to the department of

treasury all of the following information at the end of each

calendar year, including the year in which the resolution adding

that eligible property in the transformational brownfield plan is

adopted:

(i) A list of individuals domiciled within the eligible

property.

(ii) The addresses of those individuals identified in

subparagraph (i).

(iii) Any other information that may be necessary to calculate

the income tax capture revenues. The information required under

this subdivision shall be provided in a manner prescribed by the

state treasurer.

(z) ~~(w)~~ "Industrial cleaning" means cleaning or removal of

contaminants from within a structure necessary to achieve the

intended use of the property.

(aa) ~~(x)~~ "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 property, 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~~ stormwater management systems.

(bb) "Initial income tax value" means the aggregate amount of

income tax less credits under sections 255, 265, 266, and chapter 9

of the income tax act of 1967, 1967 PA 281, MCL 206.255, 206.265,

206.266, and 206.501 to 206.532, from individuals domiciled within

the eligible property subject to a transformational brownfield plan

for the tax year in which the resolution adding that eligible

property in the transformational brownfield plan is adopted.

(cc) ~~(y)~~ "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.

The initial assessed value may be modified by lowering the initial

assessed value once during the term of the brownfield plan through

an amendment as provided in section 14 after the tax increment

financing plan fails to generate captured assessed value for 3

consecutive years due to declines in assessed value.

(dd) "Initial withholding tax value" means the amount of

income tax withheld under part 3 of the income tax act of 1967,

1967 PA 281, MCL 206.701 to 206.713, from individuals employed

within the eligible property subject to a transformational

brownfield plan for the calendar year in which the resolution

adding the eligible property to the plan is adopted. For purposes

of this act, an individual is employed within the eligible property

if the eligible property is the individual's principal place of

employment. The initial withholding tax value shall not include

construction period tax capture revenues.

(ee) ~~(z)~~ "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.

(ff) ~~(aa)~~ "Local taxes" means all taxes levied other than

taxes levied for school operating purposes.

(gg) ~~(bb)~~ "Michigan strategic fund" means the Michigan

strategic fund created under the Michigan strategic fund act, 1984

PA 270, MCL 125.2001 to 125.2094.

(hh) "Mixed-use" means a real estate project with planned

integration of some combination of retail, office, residential, or

hotel uses.

(ii) ~~(cc)~~ "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.

(jj) ~~(dd)~~ "Owned by or under the control of" means that a land

bank fast track authority or a qualified local unit of government

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.

(kk) ~~(ee)~~ "Part 111", "part 201", "part 211", or "part 213"

means that part as described as follows:

(i) Part 111 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.11101 to 324.11153.

(ii) Part 201 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101 to 324.20142.

(iii) Part 211 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.21101 to 324.21113.

(iv) Part 213 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.21301a to 324.21334.

(ll) ~~(ff)~~ "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

146, MCL 125.2781 to 125.2797.

(mm) ~~(gg)~~ "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.

(nn) ~~(hh)~~ "Release" means that term as defined in part 201 or

part 213.

(oo) ~~(ii)~~ "Response activity" means either of the following:

(i) Response activity as that term is defined in part 201.

(ii) Corrective action.

(pp) ~~(jj)~~ "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 211.1025a, that is not required to be distributed to a

land bank fast track authority.

(qq) ~~(kk)~~ "State brownfield redevelopment fund" means the

state brownfield redevelopment fund created in section 8a.

(rr) (ll) "Targeted redevelopment area" means not fewer than

40 and not more than 500 contiguous parcels of real property

located in a qualified local governmental unit and designated as a

targeted redevelopment area by resolution of the governing body and

approved by the Michigan strategic fund. A qualified local

governmental unit is limited to designating no more than 2 targeted

redevelopment areas for the purposes of this section in a calendar

year. The Michigan strategic fund may approve no more than 5

targeted redevelopment areas for the purposes of this section in a

calendar year.

(ss) ~~(mm)~~ "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 do

not include any of the following:

(i) 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.

(ii) For 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 under

1975 PA 197, MCL 125.1651 to 125.1681, tax increment finance

authority under the tax increment finance authority act, 1980 PA

450, MCL 125.1801 to 125.1830, corridor improvement authority,

under the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899, or local development finance authority under

the local development financing act, 1986 PA 281, MCL 125.2151 to

125.2174, if those taxes were captured by these other authorities

on the date that eligible property became subject to a brownfield

plan under this act.

(iii) Ad valorem property taxes levied under 1 or more of the

following or specific taxes attributable to those ad valorem

property taxes:

(A) The zoological authorities act, 2008 PA 49, MCL 123.1161

to 123.1183.

(B) The art institute authorities act, 2010 PA 296, MCL

123.1201 to 123.1229.

(tt) ~~(nn)~~ "Taxable value" means the value determined under

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

211.27a.

(uu) ~~(oo)~~ "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).

(vv) "Transformational brownfield plan" means a brownfield

plan that meets the requirements of section 13c and is adopted

under section 14a and, as designated by resolution of the governing

body and approved by the Michigan strategic fund, will have a

transformational impact on local economic development and community

revitalization based on the extent of brownfield redevelopment and

growth in population, commercial activity, and employment that will

result from the plan. To be designated a transformational

brownfield plan, a transformational brownfield plan under this

subdivision shall be for mixed-use development and shall be

expected to result in the following levels of capital investment:

(i) In a municipality that is not a county and that has a

population of at least 600,000, $500,000,000.00.

(ii) In a municipality that is not a county and that has a

population of at least 150,000 and not more than 599,000,

$100,000,000.00.

(iii) In a municipality that is not a county and that has a

population of at least 100,000 and not more than 149,999,

$75,000,000.00.

(iv) In a municipality that is not a county and that has a

population of at least 50,000 and not more than 99,999,

$50,000,000.00.

(v) In a municipality that is not a county and that has a

population of at least 25,000 and not more than 49,999,

$25,000,000.00.

(vi) In a municipality that is not a county and that has a

population of less than 25,000, $15,000,000.00.

(ww) ~~(pp)~~ "Transit-oriented development" means infrastructure

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

or transit-oriented property that promotes transit ridership or

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

municipality in which it is located.

(xx) ~~(qq)~~ "Transit-oriented property" means property that

houses a transit station in a manner that promotes transit

ridership or passenger rail use.

(yy) "Withholding tax capture revenues" means the amount for

each calendar year by which the income tax withheld under part 3 of

the income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.713,

from individuals employed within the eligible property subject to a

transformational brownfield plan exceeds the initial withholding

tax value. Withholding tax capture revenues shall not include

income tax from individuals domiciled within the eligible property

or construction period tax capture revenues. To calculate

withholding tax capture revenues for a calendar year under a

transformational brownfield plan, the state treasurer or the

Michigan strategic fund shall do all of the following:

(i) The state treasurer shall require the owner or developer

of the eligible property to provide the department of treasury with

notice not more than 10 days from the date an employer commences or

terminates occupancy within the eligible property. As used in this

subdivision, "employer" means that term as defined in section 8 of

the income tax act of 1967, 1967 PA 281, MCL 206.8.

(ii) The state treasurer shall develop methods and processes

that are necessary for each employer occupying the eligible

property to report the amount of withholding under part 3 of the

income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.713, from

individuals employed within the eligible property.

(iii) The Michigan strategic fund shall include the following

provisions in the development and reimbursement agreement for any

transformational brownfield plan that utilizes withholding tax

capture revenues:

(A) That the owner or developer of the eligible property shall

require each employer occupying the eligible property to comply

with the reporting requirements under this section through a

contract requirement, lease requirement, or other such means.

(B) That reimbursement of withholding tax capture revenues is

limited to amounts that are reported in accordance with part 3 of

the income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.713,

and this state has no obligation with respect to withholding tax

capture revenues that are not reported or paid.

(zz) ~~(rr)~~ "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.

(aaa) ~~(ss)~~ "Zone" means, for an authority established before

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

act.

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 subsection (4) and section 13b(14).

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

on those repayments, under subsection (3)(c)(vi).

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) Up to 15% of the amounts deposited annually into the state

brownfield redevelopment fund may be used 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.

(iv) The department of treasury to implement this act.

(b) 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 section 19608(1)(a)(iv) of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.19608.

the Michigan strategic fund for the costs of eligible activities

described in section 13b(4) on eligible properties. The grant and

loan program shall provide for all of the following:

(i) 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 13b(4) 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.

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

approval of a grant or loan to fund eligible activities described

in section 13b(4) on eligible property.

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

application not more than 60 days after receipt of an

administratively complete application. If the application is

neither approved nor denied within 60 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.

(iv) 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.

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

entered into a written agreement under subparagraph (iv), the

Michigan strategic fund shall distribute the proceeds to the

applicant according to the terms of the written agreement.

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

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

state brownfield redevelopment fund or to the fund from which the

loan was generated, as defined in subsection (3)(b) and (c).

(d) To distribute construction period tax capture revenues,

withholding tax capture revenues, and income tax capture revenues

in accordance with a transformational brownfield plan under

subsection (4).

(4) The state treasurer shall deposit annually from the

general fund into the state brownfield redevelopment fund an amount

equal to the construction period tax capture revenues, withholding

tax capture revenues, and income tax capture revenues due to be

transmitted under all transformational brownfield plans. The

department of treasury shall distribute the construction period tax

capture revenues, withholding tax capture revenues, and income tax

capture revenues to an authority, or to the owner or developer of

the eligible property to which the revenues are attributable, in

accordance with section 16(8) and the terms of the written

development or reimbursement agreement for each transformational

brownfield plan. Amounts transferred into the state brownfield

redevelopment fund attributable to a specific transformational

brownfield plan shall be accounted for separately within the state

brownfield redevelopment fund and shall not be used for any other

purpose or activity under this section or for any transformational

brownfield plan other than the plan to which the revenues are

attributable or for the additional administrative costs under this

section associated with the implementation of a transformational

brownfield plan.

Sec. 11. The activities of the authority shall be financed

from 1 or more of the following sources:

(a) Contributions, contractual payments, or appropriations to

the authority for the performance of its functions or to pay the

costs of a brownfield plan of the authority.

(b) Revenues from a property, building, or facility owned,

leased, licensed, or operated by the authority or under its

control, subject to the limitations imposed upon the authority by

trusts or other agreements.

13b, and 15, 1 or both of the following:

(i) Tax increment revenues received under a brownfield plan

established under sections 13 and 14.

(ii) Proceeds of tax increment bonds and notes issued under

section 17.

(d) Proceeds of revenue bonds and notes issued under section

12.

(e) Revenue available in the local brownfield revolving fund

for the costs described in section 8.

(f) Construction period tax capture revenues, withholding tax

capture revenues, and income tax capture revenues received under a

transformational brownfield plan established under sections 13c and

14a.

(g) ~~(f)~~ Money obtained from all other sources approved by the

governing body of the municipality or otherwise authorized by law

for use by the authority or the municipality to finance activities

authorized under this act.

Sec. 13. (1) When adopting a brownfield plan, the board shall

comply with the notice and approval provisions of section 14.

(2) 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 by 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 by 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.

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 brownfield

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(mm),~~ 2(ss), 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 proposed beginning date and duration of capture of tax

increment revenues for each eligible property as determined under

section 13b(16).

(g) An estimate of the future tax revenues of all taxing

jurisdictions in which the eligible property is located to be

generated during the term of the plan.

(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) Other material that the authority or governing body

considers pertinent to the brownfield plan.

(3) When taxes levied for school operating purposes are

subject to capture under section 15, the percentage of school

operating tax increment revenues captured relating to a parcel of

eligible property under a brownfield plan shall not be greater than

the percentage of local tax increment revenues that are captured

under the brownfield plan relating to that parcel of eligible

property.

(4) Except as provided in subsection (5) and sections 8, ~~and~~

13b(4) and (5), and 13c(12), tax increment revenues related to a

brownfield plan shall be used only for 1 or more of the following:

(a) Costs of eligible activities attributable to the eligible

property that produces the tax increment revenues.

(b) Eligible activities attributable to any eligible property

for property that is owned by or under the control of a land bank

fast track authority or a qualified local unit of government.

(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 or 30 years from the beginning date of the capture

of the tax increment revenues for that eligible property, whichever

occurs first, except that a brownfield plan may authorize the

capture of additional local and school operating tax increment

revenue from an eligible property if 1 or more of the following

apply:

(a) During the time of capture described in this subsection

for the purpose of paying the costs permitted under subsection (4)

or section 13b(4).

(b) For not more than 5 years after the date specified in

subdivision (a), for payment to the local brownfield revolving fund

created under section 8.

Sec. 13b. (1) An authority shall not expend tax increment

revenues to acquire or prepare eligible property unless the

acquisition or preparation is an eligible activity.

(2) An authority shall not enter into agreements with the

taxing jurisdictions and the governing body of the municipality to

share a portion of the taxes captured from an eligible property

under this act. 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.

(3) 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 to assist a land bank fast track authority with clearing or

quieting title, acquiring, selling, or conveying property, except

as provided in subsection (4).

(4) If a brownfield plan includes the use of taxes levied for

school operating purposes captured from an eligible property for

eligible activities that are not department specific activities,

then 1 or more of the following apply:

(a) A combined brownfield plan or a work plan shall be

approved by the Michigan strategic fund and a development agreement

or reimbursement agreement between the municipality or authority

and an owner or developer of eligible property is required before

such tax increment may be used for infrastructure improvements that

directly benefit eligible property, demolition of structures that

is not response activity, lead, mold, or asbestos abatement that is

not a department specific activity, site preparation that is not

response activity, 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.

(b) Approval of a combined brownfield plan or a work plan by

the Michigan strategic fund in the manner required under section

15(12) ~~through~~ to (14) or (20) is required in order to use the tax

increment revenues to assist a land bank fast track authority or

qualified local governmental unit with clearing or quieting title,

acquiring, selling, or conveying property.

to the Michigan strategic fund under this subsection shall be in a

form prescribed by the Michigan strategic fund.

(d) 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

strategic fund.

(e) The department's approval is not required for the capture

of taxes levied for school operating purposes for eligible

activities described in this section.

(5) If a brownfield plan includes the use of taxes levied for

school operating purposes captured from eligible property for

department specific activities, a combined brownfield plan or a

work plan must be approved by the department with the exception of

those activities identified in subsections (8) and (9).

(6) An authority shall not do any of the following:

(a) Use taxes captured from eligible property to pay for

eligible activities conducted before approval of the brownfield

plan.

(b) Use taxes captured from eligible property to pay for

administrative and operating activities of the authority or the

municipality on behalf of the authority for activities, other than

those identified in subsection (7).

an authority shall not use taxes levied for school operating

purposes captured from eligible property unless the eligible

activities to be conducted on the eligible property are eligible

department specific activities, consistent with a combined

brownfield plan or a work plan approved by the department after

July 24, 1996.

(d) Use construction period tax capture revenues, withholding

tax capture revenues, or income tax capture revenues to pay for

eligible activities conducted before approval of the

transformational brownfield plan except for costs described in

section 13c(10).

(e) Use construction period tax capture revenues, withholding

tax capture revenues, and income tax capture revenues for any

expense other than as provided for in section 13c(2), except for

the reasonable costs for preparing a transformational brownfield

plan and the additional administrative and operating expenses of

the authority or municipality as are specifically associated with

the implementation of a transformational brownfield plan. For

purposes of this subsection, the reasonable costs of preparing a

transformational brownfield plan include the reasonable costs of

preparing an associated work plan, combined brownfield plan, and

development or reimbursement agreement.

(7) An authority may use taxes captured from eligible property

to pay for the administrative and operating costs under 1 or more

of the following:

(a) Local taxes captured may be used for 1 or more of the

following administrative and operating purposes:

(i) Reasonable and actual administrative and operating

expenses of the authority.

(ii) Department specific 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.

(iii) Reasonable costs of developing and preparing brownfield

plans, combined plans, or work plans for which tax increment

revenues may be used under subsection (4), including, but not

limited to, legal and consulting fees that are not in the ordinary

course of acquiring and developing real estate.

(b) Taxes levied for school operating purposes may be used for

1 or more of the following administrative and operating purposes:

(i) Reasonable costs of developing and preparing brownfield

plans, combined brownfield plans, or work plans for which tax

increment revenues may be used under section 13(4), including, but

not limited to, legal and consulting fees that are not in the

ordinary course of acquiring and developing real estate, not to

exceed $30,000.00.

(ii) Reasonable costs of brownfield plan or work plan

implementation, including, but not limited to, tracking and

reporting of data and plan compliance, not to exceed $30,000.00.

increment revenues attributable to local taxes that an authority

can use for the purposes described in subdivisions (a) and (b)

shall be determined as follows:

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

$100,000.00.

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

active projects, $125,000.00.

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

active projects, $150,000.00.

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

active projects, $175,000.00.

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

active projects, $200,000.00.

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

active projects, $300,000.00.

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

$500,000.00.

(d) Nothing contained in this subsection shall limit the

amount of funds that may be granted, loaned, or expended by a local

brownfield revolving fund for eligible activities.

(e) As used in this subsection, "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 this subsection that an authority can use for

the purposes described in this subsection 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%:

(i) 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.

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

more other authorities to administer 1 or more administrative

operations of those other authorities.

(8) The limitations of subsections (4), (5), and (6) upon the

use of taxes levied for school operating purposes shall not apply

to the costs of 1 or more of the following incurred by a person

other than the authority:

(a) Site investigation activities required to conduct a

baseline environmental assessment and to evaluate compliance with

sections 20107a and 21304c of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20107a and

324.21304c.

(b) Completing a baseline environmental assessment.

21304c of the natural resources and environmental protection act,

1994 PA 451, MCL 324.20107a and 324.21304c.

(d) Performing pre-demolition and building hazardous materials

surveys.

(e) Asbestos, mold, and lead surveys.

(9) The limitations of subsections (4), (5), and (6) upon the

use of local taxes and taxes levied for school operating purposes

shall not apply to the following costs and expenses:

(a) 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 in writing on the unanticipated

response activities before they are conducted and the costs of

those activities are subsequently included in a brownfield plan,

combined brownfield plan or a work plan or amendment approved by

the authority and approved by the department.

(b) 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.

for school operating purposes, eligible activities described in

subsection (4) 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.

(10) An authority shall not use taxes levied for school

operating purposes captured from eligible property for response

activities that benefit a party responsible for an activity causing

a release under section 20126 or 21323a of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.20126 and

324.21323a, 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.

(11) 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.

(12) A brownfield authority may capture taxes for the payment

of interest, as follows:

(a) 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.

(b) If an authority reimburses a person or entity under this

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

of department specific 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.

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

of eligible activities that are not department specific activities

and interest thereon included in a combined brownfield plan or a

work plan approved by the Michigan 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

strategic fund grants an approval for the capture of taxes levied

for school operating purposes to pay such interest.

(13) An authority may enter into agreements related to these

reimbursements and payments described in this section. A

reimbursement agreement for these purposes and the obligations

under that reimbursement agreement shall not be subject to section

13 or the revised municipal finance act, 2001 PA 34, MCL 141.2101

to 141.2821.

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

a brownfield plan that includes the capture of taxes levied for

school operating purposes from each 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 50% of the taxes levied under the state education tax act, 1993

PA 331, MCL 211.901 to 211.906, including 50% of that portion of

specific taxes attributable to, but not levied under, the state

education tax act, 1993 PA 331, MCL 211.901 to 211.906, that are

captured under the brownfield plan until the expiration of the

earlier of the following:

(a) Twenty-five years of capture of tax increment revenues

from such eligible property included in the brownfield plan.

(b) The later of:

(i) The date of repayment of all eligible expenses relative to

such eligible property.

(ii) The date excess capture is terminated under subsection

(16).

(15) The department of treasury shall deposit the amounts

described in subsection (14) into the state brownfield

redevelopment fund. If an authority makes a payment as required

under subsection (14) to the department of treasury, the local

taxes levied on that parcel and used to reimburse eligible

activities under a brownfield plan shall not be increased or

decreased due to that payment. If, due to an appeal of any tax

assessment, an authority is required to reimburse a taxpayer for

any portion of the amount 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.

(16) The brownfield plan shall include a proposed beginning

date of capture. The beginning date of capture of tax increment

revenues 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. 13c. (1) Subject to the approval of the governing body

and Michigan strategic fund under section 14a, the board may

implement a transformational brownfield plan. The transformational

brownfield plan may consist of a single development on eligible

property or a series of developments on eligible property that are

part of a related program of investment, whether or not located on

contiguous parcels, and may be amended to apply to additional

parcels of eligible property. Each amendment to a transformational

brownfield plan shall be approved by the governing body of the

municipality in which it is located and the Michigan strategic fund

and shall be consistent with the approval requirements in this

section.

(2) A transformational brownfield plan may authorize the use

of construction period tax capture revenues, withholding tax

capture revenues, income tax capture revenues, and tax increment

revenues for eligible activities described in section 2(o)(iv).

Except as provided for in section 13b(6)(d), tax increment

revenues, construction period tax capture revenues, withholding tax

capture revenues, and income tax capture revenues shall be used

only for the costs of eligible activities included within the

transformational brownfield plan to which the revenues are

attributable, including the cost of principal of and interest on

any obligation to pay the cost of the eligible activities.

(3) A transformational brownfield plan is a brownfield plan

and, except as otherwise provided, is subject to sections 13, 13a,

13b, 14, and 15 of this act. In addition to the information

required under section 13(2), a transformational brownfield plan

shall contain all of the following:

(a) The basis for designating the plan as a transformational

brownfield plan under section 2(vv).

(b) A description of the costs of the transformational

brownfield plan intended to be paid for with construction period

tax capture revenues, withholding tax capture revenues, and income

tax capture revenues.

capture revenues, withholding tax capture revenues, and income tax

capture revenues expected to be generated for each year of the

transformational brownfield plan from the eligible property.

(d) The beginning date and duration of capture of construction

period tax capture revenues, withholding tax capture revenues, and

income tax capture revenues for each eligible property as

determined under subsections (8) and (11).

(4) Subject to section 14a(8), the transformational brownfield

plan may provide for the use of part or all of the tax increment

revenues, construction period tax capture revenues, withholding tax

capture revenues, and income tax capture revenues. The portion of

tax increment revenues, construction period tax capture revenues,

withholding tax capture revenues, and income tax capture revenues

to be used may vary over the duration of the transformational

brownfield plan, but the portion intended to be used shall be

clearly stated in the transformational brownfield plan.

(5) Approval of a transformational brownfield plan, or an

amendment to a transformational brownfield plan, shall be in

accordance with the notice, approval, and public hearing

requirements of sections 14 and 14a, except that the governing body

shall provide notice to the Michigan strategic fund not less than

30 days before the hearing on a transformational brownfield plan.

(6) If a transformational brownfield plan authorizes the use

of construction period tax capture revenues, withholding tax

capture revenues, or income tax capture revenues, approval of a

combined brownfield plan or work plan by the Michigan strategic

fund and a written development or reimbursement agreement between

the owner or developer of the eligible property, the authority, and

the Michigan strategic fund are required. If a plan authorizes the

use of tax increment revenues for eligible activities under section

2(o)(iv) other than eligible activities described in section 13b,

approval of a work plan or combined brownfield plan by the Michigan

strategic fund to use tax increment revenues for those additional

eligible activities is required. A work plan or combined brownfield

plan under this subsection shall be consolidated with a work plan

or combined brownfield plan under section 13b(4). The eligible

activities to be conducted shall be consistent with the work plan

submitted by the authority to the Michigan strategic fund.

(7) Upon approval of the transformational brownfield plan by

the governing body and Michigan strategic fund, and the execution

of the written development or reimbursement agreement, the transfer

and distribution of construction period tax capture revenues,

withholding tax capture revenues, and income tax capture revenues

as specified in this act and in the plan shall be binding on this

state and the collection and transmission of the amount of tax

increment revenues as specified in this act and in the plan shall

be binding on all taxing units levying ad valorem property taxes or

specific taxes against property subject to the transformational

brownfield plan.

(8) A transformational brownfield plan shall not authorize the

capture or use of tax increment revenues, construction period tax

capture revenues, withholding tax capture revenues, or income tax

capture revenues after the year in which the total amount of the

revenue captured under the transformational brownfield plan is

equal to the sum of the costs permitted to be funded with the

revenue under the transformational brownfield plan.

(9) The brownfield authority and Michigan strategic fund 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

included within a transformational brownfield plan using tax

increment revenues, construction period tax capture revenues,

withholding tax capture revenues, or income tax capture revenues

attributable to that plan. Upon approval of the Michigan strategic

fund, the amount of tax increment revenues, construction period tax

capture revenues, withholding tax capture revenues, and income tax

capture revenues authorized to be captured under a transformational

brownfield plan may include amounts required for the payment of

interest under this subsection. A written development or

reimbursement agreement shall be entered into under subsection (6)

before any reimbursement or payment using tax increment revenues,

construction period tax capture revenues, withholding tax capture

revenues, or income tax capture revenues may commence. 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.

(10) Eligible activities conducted on eligible property prior

to approval of the transformational brownfield plan may be

reimbursed from tax increment revenues, construction period tax

capture revenues, withholding tax capture revenues, and income tax

capture revenues if those costs and the eligible property are

subsequently included in a transformational brownfield plan

approved by the governing body and Michigan strategic fund, a

combined brownfield plan or work plan approved by the Michigan

strategic fund, and a written development or reimbursement

agreement under subsection (6). Reimbursement under this subsection

shall be limited to eligible expenses incurred within 90 days of

the approval of the transformational brownfield plan by the

Michigan strategic fund.

(11) The duration of the capture of withholding tax capture

revenues and income tax capture revenues under a transformational

brownfield plan for a particular eligible property shall not exceed

the lesser of the period authorized under subsection (8) or 20

years from the beginning date of the capture of withholding tax

capture revenues and income tax capture revenues for that eligible

property. The beginning date for the capture of tax increment

revenues, withholding tax capture revenues, and income tax capture

revenues for an eligible property shall not be later than 5 years

following the date the Michigan strategic fund approves the

inclusion of the eligible property in a transformational brownfield

plan. Subject to the approval of the governing body and Michigan

strategic fund, the authority may amend the beginning date of

capture of tax increment revenues, withholding tax capture

revenues, and income tax capture revenues to a date not later than

5 years following the date the Michigan strategic fund approved

inclusion of the eligible property in the transformational

brownfield plan so long as capture of the revenues under the

transformational brownfield plan has not yet commenced.

(12) For purposes of subsection (1), a series of developments

on parcels that are not contiguous shall be considered a related

program of investment if all of the following are met:

(a) The developments are proposed to be undertaken

concurrently or in reasonable succession.

(b) For developments under affiliated ownership, the

developments are reasonably contiguous and are part of a program of

investment in a logically defined geography, including, but not

limited to, a downtown district as defined in section 1 of 1975 PA

197, MCL 125.1651, or a principal shopping district or business

improvement district as defined in section 1 of 1961 PA 120, MCL

125.981, and including areas that are logically related to those

districts and that will promote infill development.

the criteria described in subdivisions (a) and (b), the

developments are part of a master development plan, area plan, sub-

area plan, or similar development plan that has been approved or

adopted by resolution of the governing body.

(d) The designation of the developments as a related program

of investment is consistent with the purposes of this act and is

not a combination of unrelated or minimally related projects

calculated to meet the minimum investment threshold.

(13) Where undeveloped property included in a transformational

brownfield plan has been designated as a renaissance zone under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696, upon the request of the owner or developer of the

eligible property and the local government unit that designated the

zone, the Michigan strategic fund, and a city levying a tax under

the city income tax act, 1964 PA 284, MCL 141.501 to 141.787, may

elect under section 9(4) of the Michigan renaissance zone act, 1996

PA 376, MCL 125.2689, to terminate the exemptions, deductions, or

credits provided for in section 9(1)(b) and (c) of that act, and

reimburse the authority, or owner or developer of the eligible

property, an annual amount equal to the revenue collected for each

tax year as a result of the termination of the exemptions,

deductions, or credits that would otherwise be in effect. In

implementing this subsection, all of the following apply:

(a) The authority and Michigan strategic fund shall include

amounts anticipated to be collected under this subsection in the

income tax capture revenues authorized to be used under the

transformational brownfield plan and associated work plan or

combined brownfield plan.

(b) The state treasurer shall calculate for each tax year the

amount of revenue the state of Michigan collected as a result of

the operation of this subsection and shall deposit that amount as

income tax capture revenues into the state brownfield redevelopment

fund, where the funds shall be transmitted in the manner provided

for in sections 8a(4) and 16(8).

act, 1964 PA 284, MCL 141.501 to 141.787, shall calculate for each

tax year the amount of revenue the city collected as a result of

the operation of this subsection and shall enter into a binding

reimbursement agreement with the authority, and owner or developer

of the eligible property, providing for the payment of the amounts

to the authority, or the owner or developer of the eligible

property, for eligible activities as provided for in the

transformational brownfield plan. City income taxes administered by

the department of treasury pursuant to the city income tax act,

1964 PA 284, MCL 141.501 to 141.787, shall be subject to the

procedures of subdivision (b) regarding the calculation and deposit

of any revenue collected as a result of the operation of this

subsection.

(d) The department of treasury may require the owner or

developer to submit any information necessary for the calculation

of revenue collected pursuant to the operation of this subsection.

This state has no obligation for calculating revenues to be

collected pursuant to the operation of this subsection where the

required information is not reported.

(14) The authority and governing body are solely responsible

for deciding whether to seek approval of a brownfield plan as a

transformational brownfield plan. Nothing in this section or

section 14a shall operate to prejudice or limit consideration of a

brownfield plan under sections 13 and 14, including a decision by

the Michigan strategic fund not to approve a plan as a

transformational brownfield plan.

(15) Nothing in this act is intended to preclude an authority

established by a county from seeking approval of a brownfield plan

as a transformational brownfield plan. In the event that an

authority established by a county seeks approval of a plan that

extends into more than 1 of its component local units of government

and that plan includes eligible property in more than 1

municipality that is not a county, the minimum investment

requirements of section 2(vv) shall be established with reference

to combined population of the municipalities that are not a county

in which the eligible property is located.

Sec. 14a. (1) The governing body and Michigan strategic fund

shall determine whether to approve a transformational brownfield

plan in accordance with the provisions of this section.

(2) The governing body shall make an initial determination as

to whether the transformational brownfield plan constitutes a

public purpose in accordance with section 14(5). If the governing

body determines the transformational brownfield plan does not

constitute a public purpose, it shall reject the transformational

brownfield plan.

(3) If the governing body determines that the transformational

brownfield plan constitutes a public purpose, the governing body

may then approve or reject the transformational brownfield plan, or

approve it with modification, by resolution based on all of the

following considerations:

(a) Whether the transformational brownfield plan meets the

requirements of section 2(vv), which must include a determination

that the transformational brownfield plan is calculated to, and has

the reasonable likelihood to, have a transformational impact on

local economic development and community revitalization based on

the extent of brownfield redevelopment and growth in population,

commercial activity, and employment that will result from the

transformational brownfield plan.

(b) Whether the transformational brownfield plan meets the

requirements of sections 13, 13b, and 13c.

reasonable and necessary to carry out the purposes of this act.

(d) Whether the amount of captured taxable value, construction

period tax capture revenues, withholding tax capture revenues, and

income tax capture revenues estimated to result from adoption of

the transformational brownfield plan are reasonable.

(e) Whether, based on an economic and fiscal impact analysis,

the transformational brownfield plan will result in an overall

positive fiscal impact to this state.

(f) Whether the transformational brownfield plan takes into

account the criteria described in section 90b(4) of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2090b.

(g) Whether subject to subsection (23)(b), the

transformational brownfield plan includes provisions for affordable

housing.

(4) Within 90 days of the completion of an administratively

complete application and the analysis required under subsections

(5) and (6), the Michigan strategic fund shall approve or reject

the transformational brownfield plan, or approve it with

modification, by resolution based on the criteria in subsection

(3).

(5) In determining whether to approve a transformational

brownfield plan under subsection (3)(c) and (d), the Michigan

strategic fund shall conduct a financial and underwriting analysis

of the developments included in the plan. The Michigan strategic

fund shall not approve the use of construction period tax capture

revenues, withholding tax capture revenues, and income tax capture

revenues beyond the amount determined to be necessary for the

project to be economically viable. The Michigan strategic fund

shall develop standardized underwriting criteria for determining

economic viability. The Michigan strategic fund shall take into

account the impact of the sales and use tax exemptions under

section 4d(n) of the general sales tax act, 1933 PA 167, MCL

205.54d, and section 4dd of the use tax act, 1937 PA 94, MCL

205.94dd, in determining the amount of construction period tax

capture revenues, withholding tax capture revenues, and income tax

capture revenues required for the project to be economically

viable. The Michigan strategic fund shall ensure that each

transformational brownfield plan includes a significant equity

contribution from the owner or developer as determined by the fund.

(6) Except as otherwise provided in this section, the Michigan

strategic fund shall not approve a transformational brownfield plan

under subsection (3)(e) unless it determines that the

transformational brownfield plan will result in an overall positive

fiscal impact to this state. In making that determination, the

Michigan strategic fund shall take into account both of the

following:

(a) The potential displacement of tax revenue from other areas

of this state.

(b) The effects of the transformational brownfield plan on

economic development in the surrounding area.

(7) The Michigan strategic fund shall require an independent,

third-party underwriting analysis under subsection (3)(d) and an

independent, third-party fiscal and economic impact analysis under

subsection (3)(e) for any plan that proposes to use more than

$1,500,000.00 in any year in withholding tax capture revenues and

income tax capture revenues, as determined by the first full year

of tax capture under the plan. The Michigan strategic fund shall

consult with the state treasurer prior to approving any

transformational brownfield plan subject to this subsection. The

state treasurer must concur that there is an overall positive

fiscal impact to this state in order for the transformational

brownfield plan to be approved. Nothing in this subsection shall

limit the ability of the Michigan strategic fund to utilize

independent, third-party analyses on plans not subject to this

subsection.

(8) The Michigan strategic fund may not approve a

transformational brownfield plan that proposes to use more than 50%

of the withholding tax capture revenues or 50% of the income tax

capture revenues unless the income tax capture revenues are

attributable to the election under section 13c(13). The Michigan

strategic fund may modify the amount of withholding tax capture

revenues and income tax capture revenues before approving a

transformational brownfield plan in order to bring the

transformational brownfield plan into compliance with subsections

(5) and (6).

(9) The Michigan strategic fund shall require the owner or

developer of the eligible property to certify the actual capital

investment, as determined in accordance with section 2(o)(iv) and

section 2(vv), upon the completion of construction and before the

commencement of reimbursement from withholding tax capture

revenues, income tax capture revenues, or tax increment revenues,

for the plan or the distinct phase or project within the plan for

which reimbursement will be provided. If the actual capital

investment is less than the amount included in the plan, the

Michigan strategic fund shall review the determination under

subsection (5) and may modify the amount of reimbursement if, and

to the extent, such a modification is necessary to maintain

compliance with subsection (5). The transformational brownfield

plan, work plan, and development and reimbursement agreement shall

include provisions to enforce the requirements and remedies under

this subsection. If the actual level of capital investment does not

meet the applicable minimum investment requirement under section

2(vv) and is outside of the safe harbor under subsection (16), the

Michigan strategic fund may take 1 of the following remedial

actions:

(a) For a plan that consists of a single development, reduce

the amount of reimbursement under the plan.

(b) For a plan that consists of distinct phases or projects,

where the failure to meet the minimum investment threshold is the

result of failure to undertake additional distinct phases or

projects as provided for in the plan, 1 or more of the following:

(i) Permanently rescind the authorization to use tax increment

revenues, construction period tax capture revenues, withholding tax

capture revenues, and income tax capture revenues for the

additional distinct phases or projects in the plan.

Senate Bill No. 111 as amended February 21, 2017

(ii) If the Michigan strategic fund determines that the

applicable owner or developer acted in bad faith, reduce the amount

of reimbursement for completed phases of the plan.

(10) Upon approval by the Michigan strategic fund, the minimum

investment requirements in section 2(vv) and limitation under

subsection (23)(a) <<and (b)>> may be waived if the transformational

brownfield

plan meets 1 of the following criteria:

(a) Is for eligible property in an area approved by the state

housing development authority as eligible for blight elimination

program funding under the housing finance agency innovation fund

for the hardest hit housing markets authorized pursuant to the

emergency economic stabilization act of 2008, Public Law 110-343,

12 USC 5201 to 5261. For purposes of this subdivision, an area

approved as eligible for blight elimination program funding means

that specific portion or portions of a municipality where the

Michigan state housing development authority approved the

expenditure of blight elimination program funds pursuant to an

application identifying the target areas.

(b) Is for eligible property in a municipality that was

subject to a state of emergency under the emergency management act,

1976 PA 390, MCL 30.401 to 30.421, issued for drinking water

contamination.

the Michigan strategic fund determines the redevelopment is not

economically feasible absent the transformational brownfield plan.

(11) In determining whether a plan under subsection (10) has a

transformational impact for purposes of section 2(vv) and

subsection (3)(a), the governing body and Michigan strategic fund

shall consider the impact of the transformational brownfield plan

in relation to existing investment and development conditions in

the project area and whether the transformational brownfield plan

will act as a catalyst for additional revitalization of the area in

which it is located.

(12) The Michigan strategic fund may not approve more than 5

transformational brownfield plans under subsection (10) in a

calendar year, except that if the Michigan strategic fund approves

fewer than 5 plans in a calendar year under subsection (10), the

unused approval authority shall carry forward into future calendar

years and remain available until 5 years from the effective date of

the amendatory act that added this section.

(13) Except as provided in this subsection, amendments to an

approved transformational brownfield plan shall be submitted by the

authority to the governing body and to the Michigan strategic fund

for approval or rejection following the same notice necessary for

approval or rejection of the original transformational brownfield

plan. Notice is not required for revisions in the estimates of tax

increment revenues, construction period tax capture revenues,

withholding tax capture revenues, or income tax capture revenues.

(14) Except as provided in this subsection, an amendment to an

approved transformational brownfield plan under section 13c(1)

shall not be considered a new plan approval subject to the

limitation in subsection (23)(a). The Michigan strategic fund may

consider an amendment as a new plan approval only where the

amendment adds eligible property and the Michigan strategic fund

determines that approving the addition as an amendment would be

inconsistent with the purposes of this act.

(15) The procedure, adequacy of notice, and findings under

this section shall be presumptively valid unless contested in a

court of competent jurisdiction within 60 days after approval of

the transformational brownfield plan by the Michigan strategic

fund. An approved amendment to a conclusive transformational

brownfield plan shall likewise be conclusive unless contested

within 60 days after approval of the amendment by the Michigan

strategic fund. If a resolution adopting an amendment to the

transformational brownfield plan is contested, the original

resolution adopting the transformational brownfield plan is not

open to contest.

(16) The determination as to whether a transformational

brownfield plan complies with the minimum investment requirements

in section 2(vv) shall be made with reference to the most recent

decennial census data available at the time of approval by the

authority. A plan in a municipality that exceeds a population tier

under section 2(vv) by not more than 10% of the maximum population

for that tier shall, upon election of the authority, be subject to

the investment requirement for that tier. A transformational

brownfield plan that is expected to result in, or does result in, a

total capital investment that is within 10% of the applicable

minimum investment requirement shall be considered to satisfy the

applicable requirement under section 2(vv).

(17) For purposes of a transformational brownfield plan,

determination as to whether property is functionally obsolete as

defined under section 2(u) may include considerations of economic

obsolescence as determined in accordance with the Michigan state

tax commission's assessor's manual.

(18) Any positive or negative determination by the Michigan

strategic fund under this section shall be supported by objective

analysis and documented in the record of its proceedings.

(19) The Michigan strategic fund shall charge and collect a

reasonable application fee as necessary to cover the costs

associated with the review and approval of a transformational

brownfield plan.

(20) The Michigan strategic fund shall not commit, and the

department of treasury shall not disburse, more than $40,000,000.00

in total annual tax capture. For purposes of this subsection,

"total annual tax capture" means the total annual amount of income

tax capture revenues and withholding tax capture revenues that may

be reimbursed each calendar year under all transformational

brownfield plans. If the amount committed or disbursed in a

calendar year is less than $40,000,000.00, the difference between

that amount and $40,000,000.00 shall be available to be committed

or disbursed in subsequent calendar years and shall be in addition

to the annual limit otherwise applicable.

(21) The Michigan strategic fund shall not commit, and the

department of treasury shall not disburse, a total amount of income

tax capture revenues and withholding tax capture revenues that

exceeds $800,000,000.00.

(22) The Michigan strategic fund shall not approve more than a

total of $200,000,000.00 in construction period tax capture

revenues and in projected sales and use tax exemptions under

section 4d(n) of the general sales tax act, 1933 PA 167, MCL

205.54d, and section 4dd of the use tax act, 1937 PA 94, MCL

205.94dd. The Michigan strategic fund shall project the value of

the sales and use tax exemptions under each transformational

brownfield plan at the time of plan approval and shall require such

information from the owner or developer as is necessary to perform

this calculation. The Michigan strategic fund also shall require

the owner or developer of the eligible property to report the

actual value of the sales and use tax exemptions each year of the

construction period and at the end of the construction period. If

the value of the actual sales and use tax exemptions and

construction period tax capture revenues under all transformational

brownfield plans exceeds the limit of $200,000,000.00 under this

subsection by more than a de minimis amount, as determined by the

state treasurer, the state treasurer shall take corrective action

and may reduce future disbursements to achieve compliance with the

aggregate limitation under subsection (21) and this subsection. The

corrective action described in this subsection shall not reduce the

disbursement for an individual plan by an amount that is more than

the amount by which the value of the sales and use tax exemptions

for that plan exceeded the amount projected at the time of plan

approval and included in the plan. The Michigan strategic fund and

department of treasury shall prescribe specific methods for

implementing this section within 60 days of the effective date of

the amendatory act that added this section.

(23) The Michigan strategic fund shall comply with both of the

Senate Bill No. 111 as amended February 21, 2017

following:

(a) Not approve more than 5 transformational brownfield plans

in a calendar year, except that if the Michigan strategic fund

approves fewer than 5 plans in a calendar year, the unused approval

authority shall carry forward into future calendar years and remain

available until 5 years from the effective date of the amendatory

act that added this section.

<<(b) Not approve more than 1 transformational brownfield plan in any individual city, village, or township in a calendar year.

(C)>> In coordination with the governing body, shall determine

the appropriate provisions regarding affordable housing on a plan-

by-plan basis.

(24) In the event of a proposed change in ownership of

eligible property subject to a transformational brownfield plan for

which reimbursement will continue, the approval of the Michigan

strategic fund is required prior to the assignment or transfer of

the development and reimbursement agreement.

(25) The Michigan strategic fund shall not provide community

revitalization incentives under section 90b of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2090b, to any project

included in a transformational brownfield plan that has or will

receive reimbursement for eligible activities pursuant to section

13c and this section.

Sec. 15. (1) To seek department approval of a work plan under

section 13b(6)(c), 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.

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.

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

under subsection (1) or a portion of a work plan that pertains to

only department specific activities, the department shall review

the work plan according to subsection (3) 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

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

modified, added, or deleted from the work plan and revision of

costs. The department may not condition its approval on deletions

from or modifications of the work plan relating to activities to be

funded solely by tax increment revenues not attributable to taxes

levied for school operating purposes.

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 section 13b(10), or for any

specific activity if the activity is prohibited by section

13b(6)(a). The department may also deny any activity in a work plan

that does not meet the conditions in subsection (3) only if the

department cannot respond under subsection (2)(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 subsection (2)(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.

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

conditions have been met:

(a) Whether some or all of the activities constitute

department specific activities other than activities that are

exempt from the work plan approval process under section 13b(8).

(b) The department specific activities, other than the

activities that are exempt from the work plan approval process

under section 13b(8), are protective of the public health, safety,

and welfare and the environment. The department may approve

department specific 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 department specific 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) The cost to implement activities minimally necessary to

achieve due care compliance, the total cost of response activities,

and the incremental cost of department specific activities in

excess of those activities minimally necessary to achieve due care

compliance.

(iii) Long-term obligations associated with leaving

contamination in place and the value of reducing or eliminating

these obligations.

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.

(4) If the department fails to provide a written response

under subsection (2) 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 (5), 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 (2) shall be considered approved for the purposes

of subsection (1). Within 45 days after receiving additional

information requested from the authority under subsection (2)(c),

the department shall review the additional information according to

subsection (3) and provide 1 of the responses described in

subsection (2) 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 (2)(c), the activity is

approved under section 13b.

(5) 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 section

13b for the eligible activities described in the work plan

initially submitted under subsection (4). 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 section 13b. However, any response by the

department under this subsection that identifies additional

individual activities that must be carried out to satisfy part 201

or part 213 must be satisfactorily completed for the activities to

be considered acceptable for the purposes of compliance with part

201 or part 213.

(6) If the department issues a written response under

subsection (5) 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 section 13b, 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.

(7) It shall be in the sole discretion of an authority to

propose to undertake department specific activities under

subsection (3)(b) at an eligible property under a brownfield plan.

The department shall not require a work plan to include department

specific activities that are more protective of public health,

safety, welfare, and the environment.

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

that includes department specific activities in accordance with

subsection (3).

(9) 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.

(10) To seek Michigan strategic fund approval of a work plan

under section 13b(4) or 13c(6), the authority shall submit all of

the following for each eligible property:

(a) A copy of the brownfield plan or the transformational

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.

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 13b(4) to be undertaken. For

a transformational brownfield plan, the Michigan strategic fund

shall prescribe the form and content for the work plan to address

additional eligible activities under section 2(o)(iv).

(g) A copy of the development agreement or reimbursement

agreement required under section 13b(4) or 13c(6), 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.

(11) Upon receipt of a request for approval of a work plan,

the Michigan strategic fund shall provide 1 of the following

written responses to the requesting authority within 60 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.

for the denial. If a work plan is denied under this subsection, the

work plan may be subsequently resubmitted.

(12) In its review of a work plan under section 13b(4) or

13c(6), the Michigan 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.

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) 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.

(k) Whether the project of the developer, landowner, or

corporate entity that is included in the work plan is financially

and economically sound.

(l) 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.

(m) Any other criteria that the Michigan strategic fund

considers appropriate for the determination of eligibility or for

approval of the work plan.

(13) If the Michigan strategic fund fails to provide a written

response under subsection (11) within 60 days after receipt of a

request for approval of a work plan or 90 days in the case of a

transformational brownfield plan, the eligible activities shall be

considered approved and the authority may proceed with the eligible

activities described in ~~section~~ sections 13b(4) and 13c(6) as

outlined in the work plan as submitted for approval.

(14) The Michigan strategic fund approval of a work plan under

~~section~~ sections 13b(4) and 13c(6) is final.

(15) The Michigan strategic fund shall submit a report each

year to each member of the legislature as provided in section

16(4).

(16) 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 strategic fund or for the payment of interest under

sections 13 and 13b and that are not deposited in a local

brownfield revolving fund shall be distributed proportionately

between the local school district and the school aid fund.

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

(2)(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.

(18) The party seeking work plan approval 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.

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

for school operating purposes, the chairperson of the Michigan

strategic fund may approve, without a meeting of the fund board,

combined brownfield plans and work plans that address eligible

activities described in section 13b(4) totaling an amount of

$1,000,000.00 or less according to subsections (10), (11), (12),

(13), and (14).

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

13b(4) or (6)(c) or section 13c(6), 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 and at least 60 days in the case of a transformational

brownfield plan, 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

section 13b(6)(c).

(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 (12) or

section 13c(6), or the use of construction period tax capture

revenues, withholding tax capture revenues, or income tax capture

revenues.

(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).

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 60 days or, in the case of a transformational

brownfield plan, within 90 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 (1)

and if the conditions identified in subsection (3) are met.

(f) The Michigan strategic fund shall consider the criteria

identified in subsection (12) 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 and, in

the case of a transformational brownfield plan, shall also consider

the criteria described in section 14a(3).

(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(6) unless the modifications

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

amount of tax increment revenues or, in the case of a

transformational brownfield plan, construction period tax capture

revenues, withholding tax capture revenues, and income tax capture

revenues approved for the project.

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

provide a written response under subdivision (d) within 60 days

after receipt of a complete combined brownfield plan, or 90 days in

the case of a transformational 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 brownfield revolving fund of the

authority under section 8 shall revert proportionately to the

respective taxing bodies, except as provided in section 15(16).

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

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.

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) 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 13b(6)(c), section ~~2(n)(~~i~~)(H),~~ 2(o)(i)(H), and section

~~2(n)(~~ii~~)(B)~~ 2(o)(i)(B) and (C).

(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) All additional information that the governing body, the

department, or the Michigan strategic fund considers necessary.

(4) The department and the Michigan strategic fund shall

collect the financial reports submitted under subsection (3),

compile 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 each member of the legislature.

(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) 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 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 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 strategic fund is consistent with

the fundamental objective of facilitating and supporting timely and

efficient brownfield redevelopment of eligible properties.

(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) For a transformational brownfield plan, all of the

following shall also apply:

(a) The state treasurer shall transfer to the state brownfield

redevelopment fund each fiscal year an amount equal to the

construction period tax capture revenues, withholding tax capture

revenues, and income tax capture revenues under all approved plans

as provided for in section 8a(4). Funds shall be transmitted to the

authority, or owner or developer of the eligible property to which

the revenues are attributable, within 30 days of transfer to the

state brownfield redevelopment fund.

(b) The authority, the department, and the Michigan strategic

fund shall follow the reporting requirements of subsections (3),

(4), and (5) with respect to all approved transformational

brownfield plans, and shall provide information on the amount and

use of construction period tax capture revenues, withholding tax

capture revenues, and income tax capture revenues to the same

extent required for tax increment revenues.

a transformational brownfield plan shall provide the information

required for the authority, the department, and the Michigan

strategic fund to satisfy the reporting and audit requirements of

this section.