February 8, 2011, Introduced by Senator HANSEN and referred to the Committee on Economic Development.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending section 3 (MCL 125.2683), as amended by 2010 PA 277,
and by adding section 8i.
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) "Border crossing facility" means a business that is 1 or
more of the following as determined by the board of the Michigan
strategic fund:
(i) That was located in a qualified border local governmental
unit as defined in section 8g and was displaced or otherwise
negatively affected by the development of the international border
crossing and is unable to recover from the displacement or negative
effect without the establishment of a renaissance zone.
(ii) That is associated with international trade, shipping, or
freight hauling, including, but not limited to, all of the
following:
(A) Customs brokers.
(B) Distribution centers.
(C) Truck supply and repair.
(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 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, health, human services, public safety, and employment if
the renaissance zone is created.
(v) Any other information required by the board.
(e) "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.
(f) "Eligible next Michigan business" means a business engaged
in the shipment of tangible personal property via multimodal
commerce; a supply chain business providing a majority of its
services to businesses engaged in the shipment of tangible personal
property, including inventory, via multimodal commerce; a
manufacturing or assembly facility receiving a majority of its
production components via multimodal commerce; a manufacturing or
assembly facility shipping a majority of products via multimodal
commerce; or a light manufacturing or assembly facility that
packages, kits, labels, or customizes products and ships those
products via multimodal commerce.
(g) "Entrepreneurial business" means 1 of the following:
(i) A new, for-profit start-up business of 100 employees or
less registered in and with this state on or after July 1, 2010.
(ii) An existing business that does 1 or more of the following
as determined by the board of the Michigan strategic fund:
(A) Increases the size of its facility by 25% or more.
(B) Increases the number of employees at its facility by 25%
or more.
(C) Increases the amount of capital investment at its
facility.
(h) "Entrepreneurial business facility" means a facility or
operation that has as its principal function the research,
development, support, manufacturing, or providing a service for an
entrepreneurial business.
(i) (g)
"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.
(j) (h)
"Local governmental unit"
means a county, city,
village, township, or, for taxes levied after 2009, any other
taxing jurisdiction that levies an ad valorem property tax.
(k) (i)
"Multimodal commerce"
means the movement of products
or services via 2 or more of the following:
(i) Air.
(ii) Road.
(iii) Rail.
(iv) Water.
(l) (j)
"Next Michigan development corporation"
means that term
as defined in section 3 of the next Michigan development act, 2010
PA 275, MCL 125.2953.
(m) (k)
"Next Michigan development
district" means that term
as defined in section 3 of the next Michigan development act, 2010
PA 275, MCL 125.2953.
(n) (l) "Next
Michigan renaissance zone" means a renaissance
zone created under section 8h.
(o) (m)
"Person" means an
individual, partnership,
corporation, association, limited liability company, governmental
entity, or other legal entity.
(p) (n)
"Qualified eligible next Michigan
business" means an
eligible next Michigan business that has been certified in
accordance with section 8h.
(q) (o)
"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.
(r) (p)
"Recovery zone" means a
tool and die renaissance
recovery zone created in section 8d.
(s) (q)
"Renaissance zone" means
a geographic area designated
under this act.
(t) (r)
"Renewable energy
facility" means a facility that
creates energy, fuels, or chemicals directly from the wind, the
sun, trees, grasses, biosolids, algae, agricultural commodities,
processed products from agricultural commodities, or residues from
agricultural processes, wood or forest processes, food production
and processing, or the paper products industry. Renewable energy
facility also includes a facility that creates energy, fuels, or
chemicals from solid biomass, animal wastes, or landfill gases.
Renewable energy facility also includes a facility that focuses on
research, development, or manufacturing of systems or components of
systems used to create energy, fuel, or chemicals from the items
described in this subdivision. Renewable energy facility also
includes a facility that focuses on research, development, or
manufacturing of systems or components of systems that involve the
conversion of chemical energy for advanced battery technology.
(u) (s)
"Residential rental
property" means that term as
defined in section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff.
(v) (t)
"Review board" means the
renaissance zone review board
created in section 5.
(w) (u)
"Rural area" means an
area that lies outside of the
boundaries of an urban area.
(x) (v)
"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. 8i. (1) The board, upon recommendation of the board of
the Michigan strategic fund defined in section 4 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2004, may designate
additional renaissance zones for entrepreneurial business
facilities within this state in that portion of a city, village, or
township if that city, village, or township or combination of
cities, villages, or townships consents to the creation of a
renaissance zone for an entrepreneurial business facility within
their boundaries. A renaissance zone for an entrepreneurial
business facility shall have a duration of renaissance zone status
for a period of 5 years.
(2) Each renaissance zone designated for an entrepreneurial
business facility under this section shall be 1 continuous distinct
geographic area.
(3) The board may revoke the designation of all or a portion
of a renaissance zone for an entrepreneurial business facility if
the board determines that the entrepreneurial business facility
does 1 or more of the following in a renaissance zone designated
under this section:
(a) Fails to commence operation.
(b) Ceases operation.
(c) Fails to commence construction or renovation within 1 year
from the date the renaissance zone for the entrepreneurial business
facility is designated.
(4) The board shall consider all of the following when
designating a renaissance zone for an entrepreneurial business
facility:
(a) The economic impact on local suppliers who supply raw
materials, goods, and services to the entrepreneurial business
facility.
(b) The creation of jobs relative to the employment base of
the community rather than the static number of jobs created.
(c) The viability of the project.
(d) The economic impact on the community in which the
entrepreneurial business facility is located.
(5) The board shall require a development agreement between
the Michigan strategic fund and the entrepreneurial business
facility.
(6) As used in this section, "development agreement" means a
written agreement between the Michigan strategic fund and the
entrepreneurial business facility that includes, but is not limited
to, all of the following:
(a) A requirement that the entrepreneurial business facility
comply with all state and local laws.
(b) A requirement that the entrepreneurial business facility
report annually to the Michigan strategic fund on all of the
following:
(i) The amount of capital investment made at the facility.
(ii) The number of individuals employed at the facility at the
beginning and end of the reporting period as well as the number of
individuals transferred to the facility from another facility owned
by the entrepreneurial business facility.
(iii) The percentage of raw materials purchased in this state.
(c) Approval of the business plan by a state recognized
entrepreneurial support resource as determined by the board.
(d) Any other conditions or requirements reasonably required
by the Michigan strategic fund.