November 29, 2006, Introduced by Rep. Kolb and referred to the Committee on Commerce.
A bill to create the banking development authority; to create
and operate certain banking development districts; to foster
economic opportunities in this state; to facilitate economic
development; to stimulate banking and industrial, commercial, and
residential improvements; to prevent physical and infrastructure
deterioration of geographic areas in this state; to authorize
expenditures; to provide exemptions and credits from certain taxes;
to create certain obligations of this state and local governmental
units; to provide for appropriations; and to prescribe the powers
and duties of certain state and local departments, agencies, and
officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"banking development district authority act".
Sec. 2. The legislature of this state finds and declares that
there exists in this state continuing need for programs to assist
certain local governmental units in encouraging economic
development, financial institution development, the consequent job
creation and retention, and ancillary economic growth in this
state. To achieve these purposes, the legislature determines it is
necessary to assist and encourage the creation of banking
development districts and provide temporary relief from certain
taxes within those districts.
Sec. 3. As used in this act:
(a) "Authority" means the banking development district
authority created in section 4.
(b) "Board" means the board of directors of the banking
development authority board created in section 5.
(c) "Department" means the department of labor and economic
growth.
(d) "Development plan" means a written plan that addresses the
criteria in section 7 and includes all of the following:
(i) A map of the proposed banking development district that
indicates the geographic boundaries, the total area, and the
present use and conditions generally of the land and structures
within those boundaries.
(ii) Evidence of community support from residential and
business interests and a commitment from 1 or more financial
institutions to open new branch offices within the district.
(iii) A description of the methods proposed to increase economic
opportunity and expansion, facilitate infrastructure improvement,
and identify job opportunities.
(iv) Current and anticipated improvements in infrastructure and
social, economic, and demographic characteristics of the proposed
district.
(v) Any other information required by the board.
(e) "District" means a banking development district created
under section 6.
(f) "Financial institution" means a state or nationally
chartered bank or a state or federally chartered savings and loan
association, savings bank, or credit union whose deposits are
insured by an agency of the United States government and which
maintains a principal office or branch office located in this state
under the laws of this state or the United States.
(g) "Local governmental unit" means a county, city, village,
or township.
(h) "Person" means an individual, partnership, corporation,
association, limited liability company, governmental entity, or
other legal entity.
(i) "Qualified local governmental unit" means a city, village,
or township.
Sec. 4. (1) The banking development district authority is
created as a public body corporate and politic within the
department.
(2) The authority shall exercise its duties independently of
the department. However, the budgeting, procurement, and related
administrative functions of the authority shall be conducted by the
department.
Sec. 5. (1) The authority shall exercise its duties through
its board of directors.
(2) The board shall be made up of 9 members as follows:
(a) The director of the department of labor and economic
growth.
(b) The state treasurer.
(c) The chief executive officer of the Michigan economic
development corporation.
(d) Four members with knowledge, skill, or experience in
finance, banking, or economic development appointed by the governor
with the advice and consent of the senate.
(e) One member appointed by the governor from a list of 2 or
more individuals selected by the majority leader of the senate,
with knowledge, skill, or experience in finance, banking, or
economic development.
(f) One member appointed by the governor from a list of 2 or
more individuals selected by the speaker of the house of
representatives, with knowledge, skill, or experience in finance,
banking, or economic development.
(3) The appointed members shall serve for terms of 4 years. Of
the 2 members first appointed, 1 shall be appointed for an initial
term of 1 year and 1 shall be appointed for an initial term of 2
years. The appointed members shall serve until a successor is
appointed. A vacancy shall be filled for the balance of the
unexpired term in the same manner as the original appointment.
(4) The chief executive officer or director of any state
department or agency who is a designated member of the board may
appoint a representative to serve in his or her absence.
(5) Members of the board shall serve without compensation but
may receive reasonable reimbursement for necessary travel and
expenses incurred in the discharge of their duties.
(6) The board shall select a board member to serve as
chairperson of the board.
(7) A majority of the appointed and serving members of the
board shall constitute a quorum of the board for the transaction of
business. A member may participate in a meeting by the use of
amplified telephonic or video conferencing equipment. A member
participating by the use of telephonic or video conferencing
equipment shall be considered to be present for purposes of a
quorum and for purposes of voting. Actions of the board shall be
approved by a majority vote of the members present at a meeting.
(8) The members of the board and officers and employees of the
authority are subject to 1968 PA 317, MCL 15.321 to 15.330, or 1968
PA 318, MCL 15.301 to 15.310.
(9) A member of the board or officer, employee, or agent of
the authority shall discharge the duties of his or her position in
a nonpartisan manner, with good faith, and with that degree of
diligence, care, and skill that an ordinarily prudent person would
exercise under similar circumstances in a like position.
Sec. 6. (1) One or more qualified local governmental units may
apply to the board to designate a portion of the qualified local
governmental unit or units as a district if all of the following
criteria are met:
(a) The geographic area of the proposed district is located
within the boundaries of the qualified local governmental unit or
units that apply.
(b) The application includes a development plan.
(c) The application includes the proposed duration of district
status, not to exceed 10 years, except as otherwise provided in
this section.
(2) A qualified local governmental unit may submit not more
than 1 application to the board for designation as a district.
Sec. 7. (1) The board shall review all applications submitted
by qualified local governmental units and determine which
applications meet the criteria contained in section 6.
(2) The board shall do all of the following:
(a) Designate districts.
(b) Subject to subsection (3), approve or reject the duration
of district status.
(c) Subject to subsection (3), approve or reject the
geographic boundaries and the total area of the district as
submitted in the application.
(d) Approve or reject each exemption, deduction, or credit as
described in section 9.
(3) The board shall not alter the geographic boundaries of the
district or the duration of district status described in the
application unless the qualified local governmental unit or units
and the local governmental unit or units in which the district is
to be located consent by resolution to the alteration.
(4) The designation of a district under this act shall take
effect on January 1 in the year following designation.
Sec. 8. The board shall consider the following criteria in
designating a district:
(a) Giving priority to applications that include new business
activity.
(b) Evidence of adverse economic and socioeconomic conditions
within the proposed district.
(c) The viability of the development plan.
(d) Whether the development plan is creative and innovative.
(e) Public and private commitment to and other resources
available for the proposed district.
(f) How district designation would relate to a broader plan
for the community as a whole.
(g) The level of demonstrated cooperation from financial
institutions in the community.
(h) Any other information required by the board.
Sec. 9. A financial institution that is located and conducts
business activity within a district shall receive the exemption,
deduction, or credit as determined by the board as provided in the
following for the period provided under section 7(2)(b):
(a) Sections 36f and 36g of the single business tax act, 1975
PA 228, MCL 208.36f and 208.36g.
(b) Section 4cc of the general sales tax act, 1933 PA 167, MCL
205.4cc.
(c) Section 7kk of the general property tax act, 1893 PA 206,
MCL 211.7kk.
Sec. 10. The form of the application for a district
designation shall be as specified by the department. The board may
request any information from an applicant, in addition to that
contained in an application, as may be needed to permit the board
to discharge its responsibilities under this act.
Sec. 11. This state shall reimburse the school aid fund for
all revenues lost as the result of the establishment of a district.
Foundation allowances calculated under section 20 of the state
school aid act of 1979, 1979 PA 94, MCL 388.1620, shall not be
reduced as a result of lost revenues arising from this act.
Sec. 12. (1) The board shall conduct all business at public
meetings held in compliance with the open meetings act, 1976 PA
267, MCL 15.261 to 15.275. Public notice of the time, date, and
place of each meeting shall be given in the manner required by the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(2) A record or a portion of a record, material, application,
or other data received, prepared, used, or retained by the board is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
Sec. 13. This act shall be construed liberally to effectuate
the legislative intent and the purposes of this act and as complete
and independent authority for the performance of each and every act
and thing authorized by this act, and all powers granted by this
act shall be broadly interpreted to effectuate the intent and
purposes of this act and not as a limitation of powers.
Sec. 14. The department shall annually report to the
legislature on the economic effects of this act in each district.
The report shall include, but is not limited to, all of the
following for each district:
(a) Number of new jobs created.
(b) Percentage change in aggregate taxable value and state
equalized value.
(c) Average wage of new jobs created.
(d) Percentage change of adjusted gross income of residents.
(e) The estimated change in the population from the
immediately preceding year.
(f) The number of banks or other financial institutions
operating in the district.