TERMINATION OF PA 198 DISTRICT S.B. 757: COMMITTEE SUMMARY


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Senate Bill 757 (as introduced 9-6-07)
Sponsor: Senator Jason E. Allen
Committee: Commerce and Tourism


Date Completed: 9-10-07

CONTENT The bill would amend the plant rehabilitation and industrial development Act, commonly referred to as PA 198, to extend the period in which a local governmental unit must give notice before terminating a plant rehabilitation or industrial development district.

Under PA 198, a local unit, by resolution of its legislative body, may establish a plant rehabilitation district or an industrial development district on its own initiative or upon a written request filed by the owner or owners of 75% of the State equalized value (SEV) of the industrial property located within a proposed district. With the approval of the State Tax Commission, local units that establish districts may grant industrial facilities exemption certificates to new and speculative buildings and replacement facilities located in a district. Also, a local unit, by resolution of its legislative body, may terminate a plant rehabilitation or industrial development district, if there are no industrial facilities exemption certificates in effect in the district on the date of the termination resolution.


The Act requires a local unit to give at least 14 days' written notice by certified mail to the owners of all real property within a district, and to hold a public hearing on termination of the district, before acting on a proposed resolution to terminate a plant rehabilitation district or an industrial development district. Under the bill, a local unit would have to give at least 21 days' written notice.


MCL 207.552 & 207.554 Legislative Analyst: Patrick T. Affholter

FISCAL IMPACT
The bill would have no fiscal impact on State or local government.

Fiscal Analyst: David Zin

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb757/0708