June 11, 2013, Introduced by Reps. Tlaib, Heise, Geiss, Dillon, Slavens and Roberts and referred to the Committee on Tax Policy.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 3 and 8g (MCL 125.2683 and 125.2688g), section
3 as amended by 2010 PA 277 and section 8g as added by 2010 PA 5.
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) Packing, sorting, assembling, or manufacturing of goods.
(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) "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.
(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.
(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.
(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.
(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.
(l) "Next Michigan renaissance zone" means a renaissance zone
created under section 8h.
(m) "Person" means an individual, partnership, corporation,
association, limited liability company, governmental entity, or
other legal entity.
(n) "Qualified eligible next Michigan business" means an
eligible next Michigan business that has been certified in
accordance with section 8h.
(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.
(p) "Recovery zone" means a tool and die renaissance recovery
zone created in section 8d.
(q) "Renaissance zone" means a geographic area designated
under this act.
(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.
(s) "Residential rental property" means that term as defined
in section 7ff of the general property tax act, 1893 PA 206, MCL
211.7ff.
(t) "Review board" means the renaissance zone review board
created in section 5.
(u) "Rural area" means an area that lies outside of the
boundaries of an urban area.
(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. 8g. (1) 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 up to 25 additional renaissance zones for
border crossing facilities within this state in qualified border
local governmental units if that city or township or combination of
cities or townships consents to the creation of a renaissance zone
for a border crossing facility within their boundaries. A
renaissance zone for a border crossing facility shall have a
duration of renaissance zone status for a period of 15 years.
(2) Each renaissance zone designated for a border crossing
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 a border crossing facility if the board
determines that the border crossing 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 border crossing facility
is designated.
(4) The board shall consider all of the following when
designating a renaissance zone for a border crossing facility:
(a) The economic impact on local suppliers who supply raw
materials, goods, and services to the border crossing 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 border
crossing facility is located.
(5) The board shall require a development agreement between
the Michigan strategic fund and the border crossing facility.
(6) As used in this section:
(a) "Development agreement" means a written agreement between
the Michigan strategic fund and the border crossing facility that
includes, but is not limited to, all of the following:
(i) A requirement that the border crossing facility comply with
all state and local laws.
(ii) A requirement that the border crossing facility report
annually to the Michigan strategic fund on all of the following:
(A) The amount of capital investment made at the facility.
(B) 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 border crossing facility.
(C) The percentage of raw materials purchased in this state.
(iii) Any other conditions or requirements reasonably required
by the Michigan strategic fund.
(b) "Qualified border local governmental unit" means 1 of the
following:
(i) A city with a population of more than 30,000 and less than
36,000 that contains an international border crossing.
(ii) A township that adjoins a city with a population of more
than 30,000 and less than 36,000 that contains an international
border crossing.
(iii) A city with a population of 700,000 or more that contains
an international border crossing constructed after January 1, 2010.