SB-0979, As Passed Senate, June 8, 2010

SUBSTITUTE FOR

SENATE BILL NO. 979

A bill to amend 2003 PA 258, entitled

"Land bank fast track act,"

by amending sections 3 and 23 (MCL 124.753 and 124.773).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. As used in this act:

(a) "Authority" means a land bank fast track authority created

under section 15, section 23(4), or section 23(5).

(b) "Authority board" means the board of directors of the

state authority appointed under section 16.

Michigan gaming control and revenue act, ~~the Initiated Law of~~ 1996

IL 1, MCL 432.201 to 432.226, or a casino at which gaming is

conducted under the Indian gaming regulatory act, Public Law 100-

497, 102 Stat. 2467, and all property associated or affiliated with

the operation of the casino, including, but not limited to, a

parking lot, hotel, motel, or retail store.

(d) "County authority" means a county land bank fast track

authority created by a county foreclosing governmental unit under

section 23(4).

(e) "Department" means the department of energy, labor, and

economic growth, a principal department of state government created

by section 225 of the executive organization act of 1965, 1965 PA

380, MCL 16.325, and renamed by Executive Order No. 1996-2, MCL

445.2001, and by Executive Order No. 2003-18.

(f) "Foreclosing governmental unit" means that term as defined

in section 78 of the general property tax act, 1893 PA 206, MCL

211.78.

(g) "Fund" means the land bank fast track fund created in

section 18.

(h) "Intergovernmental agreement" means a contractual

agreement between 1 or more governmental agencies, including, but

not limited to, an interlocal agreement to jointly exercise any

power, privilege, or authority that the agencies share in common

and that each might exercise separately under the urban cooperation

act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.

(i) "Local authority" means a local land bank fast track

authority created by a qualified city under section 23(5).

(j) "Local unit of government" means a city, village,

township, county, or any intergovernmental, metropolitan, or local

department, agency, or authority, or other local political

subdivision.

(k) "Michigan economic development corporation" means the

public body corporate created under section 28 of article VII of

the state constitution of 1963 and the urban cooperation act of

1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual

interlocal agreement effective April 5, 1999, as amended, between

local participating economic development corporations formed under

the economic development corporations act, 1974 PA 338, MCL

125.1601 to 125.1636, and the Michigan strategic fund. If the

Michigan economic development corporation is unable for any reason

to perform its duties under this act, those duties may be exercised

by the Michigan strategic fund.

(l) "Michigan state housing development authority" means the

authority created under the state housing development authority act

of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.

(m) "Michigan strategic fund" means the Michigan strategic

fund as described in the Michigan strategic fund act, 1984 PA 270,

MCL 125.2001 to ~~125.2093~~ 125.2094.

(n) "Qualified city" means a city that ~~contains a first class~~

~~school district~~ has a population of 750,000 or more and includes

any department or agency of ~~the~~ that city.

(o) "State administrative board" means the board created under

1921 PA 2, MCL 17.1 to 17.3, that exercises general supervisory

control over the functions and activities of all administrative

departments, boards, commissioners, and officers of the state and

of all state institutions.

(p) "State authority" means the land bank fast track authority

created under section 15.

(q) "Tax reverted property" means property that meets 1 or

more of the following criteria:

(i) The property was conveyed to this state under section 67a

of the general property tax act, 1893 PA 206, MCL 211.67a, and

subsequently was not sold at a public auction under section 131 of

the general property tax act, 1893 PA 206, MCL 211.131, except

property described in section 131 of the general property tax act,

1893 PA 206, MCL 211.131, that is withheld from sale by the

director of the department of natural resources as authorized in

that section.

(ii) The property was conveyed to this state under section 67a

of the general property tax act, 1893 PA 206, MCL 211.67a, and

subsequently was either redeemed by a local unit of government or

transferred to a local unit of government under section 2101 or

2102 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.2101 and 324.2102, or under former section 461

of 1909 PA 223 except property transferred to a local unit of

government that is subject to a reverter clause under which the

property reverts to this state upon transfer by the local unit of

government.

(iii) The property was subject to forfeiture, foreclosure, and

sale for the collection of delinquent taxes as provided in sections

78 to 79a of the general property tax act, 1893 PA 206, MCL 211.78

to 211.79a, and both of the following apply:

(A) Title to the property vested in a foreclosing governmental

unit under section 78k of the general property tax act, 1893 PA

206, MCL 211.78k.

(B) The property was offered for sale at an auction but not

sold under section 78m of the general property tax act, 1893 PA

206, MCL 211.78m.

(iv) The property was obtained by or transferred to a local

unit of government under section 78m of the general property tax

act, 1893 PA 206, MCL 211.78m.

(v) Pursuant to the requirements of a city charter, the

property was deeded to or foreclosed by the city or a department or

agency of the city for unpaid delinquent real property taxes.

Sec. 23. (1) An authority may enter into an intergovernmental

agreement with the Michigan economic development corporation for

the joint exercise of powers and duties under this act, of the

powers and duties of the authority and the Michigan economic

development corporation, and for the provision of economic

development services related to the activities of the authority.

(2) An authority may enter into an intergovernmental agreement

with the Michigan state housing development authority for the joint

exercise of powers and duties under this act, of the powers and

duties of the authority and the Michigan state housing development

authority, and for the provision of redevelopment services related

to the activities of the authority.

(3) A county, city, qualified city, township, or village may

enter into an intergovernmental agreement with the state authority

providing for the transfer to the authority of tax reverted

property held by the county, city, township, or village, for title

clearance, for the disposition of the proceeds from the sale of the

property, and for other activities authorized under this act,

including the return or transfer of property under the control of

the authority to the county, city, township, or village. An

intergovernmental agreement under this subsection may not provide

for a separate legal or administrative entity to administer or

execute the agreement under section 7 of the urban cooperation act

of 1967, 1967 (Ex Sess) PA 7, MCL 124.507.

(4) A county foreclosing governmental unit may, with the

approval of the board of commissioners for that county and, if that

county has an elected county executive, with the concurrence of the

elected county executive, enter into an intergovernmental agreement

with the state authority providing for the exercise of the powers,

duties, functions, and responsibilities of an authority under this

act and for the creation of a county authority to exercise those

functions. If a county authority is created under this subsection,

the treasurer of the county shall be a member of the authority

board.

(5) A qualified city may enter into an intergovernmental

agreement with the state authority providing for the exercise of

the powers, duties, functions, and responsibilities of an authority

under this act and for the creation of a local authority to

exercise those functions.

(6) An intergovernmental agreement under subsection (4) or (5)

shall provide for all of the following:

(a) The incorporation of a county or local authority as a

Senate Bill No. 979 as amended June 8, 2010

public body corporate.

(b) The name of the authority.

local authority, which shall be composed of an odd number of

members.

(d) The qualifications, method of selection, and terms of

office of the initial board members.

(e) A method for the adoption of articles of incorporation by

the governing body of the county or local authority.

(f) A method for the distribution of proceeds from the

activities of the county or local authority.

(g) A method for the dissolution of the local or county

authority and for the withdrawal from the authority of any

governmental agencies involved.

(h) Any other matters considered advisable by the

participating governmental agencies, consistent with this act.

(i) If a county <<executive, with the concurrence of the

legislative body>>, that is located

in a county with a population of more than 1,500,000, enters into

an intergovernmental agreement with a qualified city<<, with the

approval of the mayor and the legislative body of the qualified city>>

to jointly

operate an authority under subsection (4) or (5), the resulting

authority shall be considered a redevelopment authority and the

intergovernmental agreement shall provide that 1 of the members of

the governing body shall be appointed by the governor.

(7) If under the charter of a qualified city the qualified

city collects delinquent city real property taxes and does not

return the delinquent taxes to the treasurer of the county in which

the qualified city is located under the general property tax act,

1893 PA 206, MCL 211.1 to ~~211.157~~ 211.155, any of the following

property held by the qualified city may be transferred to a local

authority:

(a) Tax delinquent real property for which a lien has been

deemed sold to a city department director under the charter or

ordinances of the qualified city, except for property that was

deeded to a department director less than 2 years before the

proposed transfer to the local authority.

(b) Tax delinquent real property held by the city that has

been foreclosed by the qualified city and for which title has

vested in the city pursuant to procedures established under the

charter or ordinances of the qualified city.

the qualified city.

(8) A qualified city may authorize the transfer with or

without consideration of any real property or interest in real

property to a local authority including, but not limited to, tax

reverted property or interests in tax reverted property held or

acquired after the creation of the local authority by the qualified

city, with the consent of the local authority.

(9) A qualified city and any agency or department of a

qualified city, or any other official public body, may do 1 or more

of the following:

(a) Anything necessary or convenient to aid a local authority

in fulfilling its purposes under this act.

(b) Lend, grant, transfer, appropriate, or contribute funds to

a local authority in furtherance of its purposes.

authority that are received from the federal government or this

state or from any nongovernmental entity in aid of the purposes of

this act.

(10) A local authority may reimburse advances made by a

qualified city under subsection (9) or by any other person for

costs eligible to be incurred by the local authority with any

source of revenue available for use of the local authority under

this act and enter into agreements related to these reimbursements.

A reimbursement agreement under this subsection is not subject to

section 305 of the revised municipal finance act, 2001 PA 34, MCL

141.2305.

(11) A local authority may enter into agreements with the

county treasurer of the county in which the qualified city is

located for the collection of property taxes or the enforcement and

consolidation of tax liens within that qualified city for any

property or interest in property transferred to the local

authority.

(12) Unless specifically reserved or conditioned upon the

approval of the governing body of a qualified city, all powers

granted under this act to a local authority may be exercised by the

local authority without the approval of the governing body of the

qualified city, notwithstanding any charter, ordinance, or

resolution to the contrary.

(13) Prior to its effectiveness, an intergovernmental

agreement under this section shall be filed with the county clerk

of each county where a party to the agreement is located and with