March 12, 2008, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 3 and 8d (MCL 125.2683 and 125.2688d), section
3 as amended by 2006 PA 304 and section 8d as amended by 2006 PA
93.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Agricultural processing facility" means 1 or more
facilities or operations that transform, package, sort, or grade
livestock or livestock products, agricultural commodities, or
plants or plant products, excluding forest products, into goods
that are used for intermediate or final consumption including goods
for nonfood use, and surrounding property.
(b) "Board" means the state administrative board created in
1921 PA 2, MCL 17.1 to 17.3.
(c) "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 renaissance zone that indicates the
geographic boundaries, the total area, and the present use and
conditions generally of the land and structures within those
boundaries.
(ii) Evidence of community support and commitment from
residential and business interests.
(iii) A description of the methods proposed to increase economic
opportunity and expansion, facilitate infrastructure improvement,
and identify job training opportunities.
(iv) Current social, economic, and demographic characteristics
of the proposed renaissance zone and anticipated improvements in
education, environment, health, human services, public safety, and
employment if the renaissance zone is created.
(v) Any other information required by the board.
(d) "Elected county executive" means the elected county
executive in a county organized under 1966 PA 293, MCL 45.501 to
45.521, or 1973 PA 139, MCL 45.551 to 45.573.
(e) "Forest products processing facility" means 1 or more
facilities or operations that transform, package, sort, recycle, or
grade forest or paper products into goods that are used for
intermediate or final use or consumption or for the creation of
biomass or alternative fuels through the utilization of forest
products or forest residue, and surrounding property. Forest
products processing facility does not include an existing facility
or operation that is located in this state that relocates to a
renaissance zone for a forest products processing facility. Forest
products processing facility does not include a facility or
operation that engages primarily in retail sales.
(f) "Local governmental unit" means a county, city, village,
or township.
(g) "Person" means an individual, partnership, corporation,
association, limited liability company, governmental entity, or
other legal entity.
(h) "Qualified local governmental unit" means either of the
following:
(i) A county.
(ii) A city, village, or township that contains an eligible
distressed area as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(i) "Recovery zone" means a tool and die renaissance recovery
zone created in section 8d.
(j) "Renaissance zone" means a geographic area designated
under this act.
(k) "Renewable energy facility" means a system that creates
energy from a process using residues from agricultural products,
forest products, paper products industries, and food production and
processing; trees and grasses grown specifically to be used as
energy crops; and gaseous fuels produced from solid biomass, animal
wastes, or landfills.
(l) "Residential rental property" means that term as defined in
section 7ff of the general property tax act, 1893 PA 206, MCL
211.7ff.
(m) "Review board" means the renaissance zone review board
created in section 5.
(n) "Rural area" means an area that lies outside of the
boundaries of an urban area.
(o) "Urban area" means an urbanized area as determined by the
economics and statistics administration, United States bureau of
the census according to the 1990 census.
Sec. 8d. (1) The board of the Michigan strategic fund
described in section 4 of the Michigan strategic fund act, 1984 PA
270,
MCL 125.2004, may designate not more than 25 30 tool
and die
renaissance recovery zones within this state in 1 or more cities,
villages, or townships if that city, village, or township or
combination of cities, villages, or townships consents to the
creation of a recovery zone within their boundaries. A recovery
zone shall have a duration of renaissance zone status for a period
of not less than 5 years and not more than 15 years as determined
by the board of the Michigan strategic fund. If the Michigan
strategic fund determines that the duration of renaissance zone
status for a recovery zone is less than 15 years, then the Michigan
strategic fund, with the consent of the city, village, or township
or combination of cities, villages, or townships in which the
qualified tool and die business is located, may extend the duration
of renaissance zone status for the recovery zone for 1 or more
periods that when combined do not exceed 15 years. Not less than 1
of the recovery zones shall consist of 1 or more qualified tool and
die businesses that have a North American industrial classification
system (NAICS) of 332997.
(2) The board of the Michigan strategic fund may designate a
recovery zone within this state if the recovery zone consists of
not less than 4 and not more than 20 qualified tool and die
businesses at the time of designation. If the board of the Michigan
strategic fund designated 1 or more recovery zones that contain
less than 20 qualified tool and die businesses before December 19,
2005, the board of the Michigan strategic fund may add additional
qualified tool and die businesses to that recovery zone subject to
the limitations contained in this subsection. A recovery zone shall
consist of only qualified tool and die business property. The board
of the Michigan strategic fund may combine existing recovery zones
that are comprised solely of tool and die businesses that are
parties to the same qualified collaborative agreement. Where 2 or
more recovery zones have been combined, the board of the Michigan
strategic fund may continue to designate additional recovery zones,
provided
that no more than 25 30 tool and die recovery zones exist
at 1 time.
(3) The board of the Michigan strategic fund may revoke the
designation of all or a portion of a recovery zone with respect to
1 or more qualified tool and die businesses if those qualified tool
and die businesses fail or cease to participate in or comply with a
qualified collaborative agreement. A qualified tool and die
business may enter into another qualified collaborative agreement
once it is designated part of a recovery zone.
(4) One or more qualified tool and die businesses subject to a
qualified collaborative agreement may merge into another group of
qualified tool and die businesses subject to a different qualified
collaborative agreement upon application to and approval by the
Michigan strategic fund.
(5) A qualified tool and die business in a recovery zone may
have a different period of renaissance zone status than other
qualified tool and die businesses in the same recovery zone.
(6) The board of the Michigan strategic fund may modify an
existing recovery zone to add 1 or more qualified tool and die
businesses with the consent of all other qualified tool and die
businesses that are participating in the recovery zone.
(7) As used in this section:
(a) "Qualified collaborative agreement" means an agreement
that demonstrates synergistic opportunities, including, but not
limited to, all of the following:
(i) Sales and marketing efforts.
(ii) Development of standardized processes.
(iii) Development of tooling standards.
(iv) Standardized project management methods.
(v) Improved ability for specialized or small niche shops to
develop expertise and compete successfully on larger programs.
(b) "Qualified tool and die business" means a business entity
that meets all of the following:
(i) Has a North American industrial classification system
(NAICS) of 332997, 333511, 333512, 333513, 333514, or 333515; or
has a North American industrial classification system (NAICS) of
337215 and operates a facility within an existing renaissance zone,
which facility is adjacent to real property not located in a
renaissance zone and is located within 1/4 mile of a Michigan
technical education center.
(ii) Has entered into a qualified collaboration agreement as
approved by the Michigan strategic fund consisting of not fewer
than 4 or more than 20 other business entities at the time of
designation that have a North American industrial classification
system (NAICS) of 332997, 333511, 333512, 333513, 333514, or
333515.
(iii) Has fewer than 75 full-time employees.
(c) "Qualified tool and die business property" means 1 or more
of the following:
(i) Property owned by 1 or more qualified tool and die
businesses and used by those qualified tool and die businesses
primarily for tool and die business operations. Qualified tool and
die business property is used primarily for tool and die business
operations if the qualified tool and die businesses that own the
qualified tool and die business property generate 75% or more of
the qualified tool and die businesses' gross revenue from tool and
die operations that take place on the qualified tool and die
business property at the time of designation.
(ii) Property leased by 1 or more qualified tool and die
business for which the qualified tool and die business is liable
for ad valorem property taxes and which is used by those qualified
tool and die businesses primarily for tool and die business
operations. Qualified tool and die business property is used
primarily for tool and die business operations if the qualified
tool and die businesses that lease the qualified tool and die
business property generate 75% or more of the qualified tool and
die businesses' gross revenue from tool and die operations that
take place on the qualified tool and die business property at the
time of designation. The qualified tool and die business shall
furnish proof of its ad valorem property tax liability to the
department of treasury.