HB-5851, As Passed House, December 1, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5851

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1975 PA 197, entitled

 

"An act to provide for the establishment of a downtown development

authority; to prescribe its powers and duties; to correct and

prevent deterioration in business districts; to encourage historic

preservation; to authorize the acquisition and disposal of

interests in real and personal property; to authorize the creation

and implementation of development plans in the districts; to

promote the economic growth of the districts; to create a board; to

prescribe its powers and duties; to authorize the levy and

collection of taxes; to authorize the issuance of bonds and other

evidences of indebtedness; to authorize the use of tax increment

financing; to reimburse downtown development authorities for

certain losses of tax increment revenues; and to prescribe the

powers and duties of certain state officials,"

 

by amending sections 1, 8, 15, and 31 (MCL 125.1651, 125.1658,

 

125.1665, and 125.1681), section 1 as amended by 2013 PA 66,

 

section 8 as added by 1987 PA 66, section 15 as amended by 1993 PA

 

323, and section 31 as added by 1988 PA 425; and to repeal acts and

 

parts of acts.

 


THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Advance" means a transfer of funds made by a municipality

 

to an authority or to another person on behalf of the authority in

 

anticipation of repayment by the authority. Evidence of the intent

 

to repay an advance may include, but is not limited to, an executed

 

agreement to repay, provisions contained in a tax increment

 

financing plan approved prior to the advance, or a resolution of

 

the authority or the municipality.

 

     (b) "Assessed value" means 1 of the following:

 

     (i) For valuations made before January 1, 1995, the state

 

equalized valuation as determined under the general property tax

 

act, 1893 PA 206, MCL 211.1 to 211.155.

 

     (ii) For valuations made after December 31, 1994, the taxable

 

value as determined under section 27a of the general property tax

 

act, 1893 PA 206, MCL 211.27a.

 

     (c) "Authority" means a downtown development authority created

 

pursuant to this act.

 

     (d) "Board" means the governing body of an authority.

 

     (e) "Business district" means an area in the downtown of a

 

municipality zoned and used principally for business.

 

     (f) "Captured assessed value" means the amount in any 1 year

 

by which the current assessed value of the project area, including

 

the assessed value of property for which specific local taxes are

 

paid in lieu of property taxes as determined in subdivision (aa),

 

exceeds the initial assessed value. The state tax commission shall

 

prescribe the method for calculating captured assessed value.


     (g) "Catalyst development project" means a project that is

 

located in a municipality with a population greater than 600,000,

 

is designated by the authority as a catalyst development project,

 

and is expected to result in at least $300,000,000.00 of capital

 

investment. There shall be no more than 1 catalyst development

 

project designated within each authority.

 

     (h) "Chief executive officer" means the mayor or city manager

 

of a city, the president or village manager of a village, or the

 

supervisor of a township or, if designated by the township board

 

for purposes of this act, the township superintendent or township

 

manager of a township.

 

     (i) "Development area" means that area to which a development

 

plan is applicable.

 

     (j) "Development plan" means that information and those

 

requirements for a development plan set forth in section 17.

 

     (k) "Development program" means the implementation of the

 

development plan.

 

     (l) "Downtown district" means that part of an area in a

 

business district that is specifically designated by ordinance of

 

the governing body of the municipality pursuant to this act. A

 

downtown district may include 1 or more separate and distinct

 

geographic areas in a business district as determined by the

 

municipality if the municipality enters into an agreement with a

 

qualified township under section 3(7) or if the municipality is a

 

city that surrounds another city and that other city lies between

 

the 2 separate and distinct geographic areas. If the downtown

 

district contains more than 1 separate and distinct geographic area


in the downtown district, the separate and distinct geographic

 

areas shall be considered 1 downtown district.

 

     (m) "Eligible advance" means an advance made before August 19,

 

1993.

 

     (n) "Eligible obligation" means an obligation issued or

 

incurred by an authority or by a municipality on behalf of an

 

authority before August 19, 1993 and its subsequent refunding by a

 

qualified refunding obligation. Eligible obligation includes an

 

authority's written agreement entered into before August 19, 1993

 

to pay an obligation issued after August 18, 1993 and before

 

December 31, 1996 by another entity on behalf of the authority.

 

     (o) "Fire alarm system" means a system designed to detect and

 

annunciate the presence of fire, or by-products of fire. Fire alarm

 

system includes smoke detectors.

 

     (p) "Fiscal year" means the fiscal year of the authority.

 

     (q) "Governing body of a municipality" means the elected body

 

of a municipality having legislative powers.

 

     (r) "Initial assessed value" means the assessed value, as

 

equalized, of all the taxable property within the boundaries of the

 

development area at the time the ordinance establishing the tax

 

increment financing plan is approved, as shown by the most recent

 

assessment roll of the municipality for which equalization has been

 

completed at the time the resolution is adopted. Property exempt

 

from taxation at the time of the determination of the initial

 

assessed value shall be included as zero. For the purpose of

 

determining initial assessed value, property for which a specific

 

local tax is paid in lieu of a property tax shall not be considered


to be property that is exempt from taxation. The initial assessed

 

value of property for which a specific local tax was paid in lieu

 

of a property tax shall be determined as provided in subdivision

 

(aa). In the case of a municipality having a population of less

 

than 35,000 that established an authority prior to 1985, created a

 

district or districts, and approved a development plan or tax

 

increment financing plan or amendments to a plan, and which plan or

 

tax increment financing plan or amendments to a plan, and which

 

plan expired by its terms December 31, 1991, the initial assessed

 

value for the purpose of any plan or plan amendment adopted as an

 

extension of the expired plan shall be determined as if the plan

 

had not expired December 31, 1991. For a development area

 

designated before 1997 in which a renaissance zone has subsequently

 

been designated pursuant to the Michigan renaissance zone act, 1996

 

PA 376, MCL 125.2681 to 125.2696, the initial assessed value of the

 

development area otherwise determined under this subdivision shall

 

be reduced by the amount by which the current assessed value of the

 

development area was reduced in 1997 due to the exemption of

 

property under section 7ff of the general property tax act, 1893 PA

 

206, MCL 211.7ff, but in no case shall the initial assessed value

 

be less than zero.

 

     (s) "Municipality" means a city, village, or township.

 

     (t) "Obligation" means a written promise to pay, whether

 

evidenced by a contract, agreement, lease, sublease, bond, or note,

 

or a requirement to pay imposed by law. An obligation does not

 

include a payment required solely because of default upon an

 

obligation, employee salaries, or consideration paid for the use of


municipal offices. An obligation does not include those bonds that

 

have been economically defeased by refunding bonds issued under

 

this act. Obligation includes, but is not limited to, the

 

following:

 

     (i) A requirement to pay proceeds derived from ad valorem

 

property taxes or taxes levied in lieu of ad valorem property

 

taxes.

 

     (ii) A management contract or a contract for professional

 

services.

 

     (iii) A payment required on a contract, agreement, bond, or

 

note if the requirement to make or assume the payment arose before

 

August 19, 1993.

 

     (iv) A requirement to pay or reimburse a person for the cost

 

of insurance for, or to maintain, property subject to a lease, land

 

contract, purchase agreement, or other agreement.

 

     (v) A letter of credit, paying agent, transfer agent, bond

 

registrar, or trustee fee associated with a contract, agreement,

 

bond, or note.

 

     (u) "On behalf of an authority", in relation to an eligible

 

advance made by a municipality, or an eligible obligation or other

 

protected obligation issued or incurred by a municipality, means in

 

anticipation that an authority would transfer tax increment

 

revenues or reimburse the municipality from tax increment revenues

 

in an amount sufficient to fully make payment required by the

 

eligible advance made by the municipality, or eligible obligation

 

or other protected obligation issued or incurred by the

 

municipality, if the anticipation of the transfer or receipt of tax


increment revenues from the authority is pursuant to or evidenced

 

by 1 or more of the following:

 

     (i) A reimbursement agreement between the municipality and an

 

authority it established.

 

     (ii) A requirement imposed by law that the authority transfer

 

tax increment revenues to the municipality.

 

     (iii) A resolution of the authority agreeing to make payments

 

to the incorporating unit.

 

     (iv) Provisions in a tax increment financing plan describing

 

the project for which the obligation was incurred.

 

     (v) "Operations" means office maintenance, including salaries

 

and expenses of employees, office supplies, consultation fees,

 

design costs, and other expenses incurred in the daily management

 

of the authority and planning of its activities.

 

     (w) "Other protected obligation" means:

 

     (i) A qualified refunding obligation issued to refund an

 

obligation described in subparagraph (ii), (iii), or (iv), an

 

obligation that is not a qualified refunding obligation that is

 

issued to refund an eligible obligation, or a qualified refunding

 

obligation issued to refund an obligation described in this

 

subparagraph.

 

     (ii) An obligation issued or incurred by an authority or by a

 

municipality on behalf of an authority after August 19, 1993, but

 

before December 31, 1994, to finance a project described in a tax

 

increment finance plan approved by the municipality in accordance

 

with this act before December 31, 1993, for which a contract for

 

final design is entered into by or on behalf of the municipality or


authority before March 1, 1994 or for which a written agreement

 

with a developer, titled preferred development agreement, was

 

entered into by or on behalf of the municipality or authority in

 

July 1993.

 

     (iii) An obligation incurred by an authority or municipality

 

after August 19, 1993, to reimburse a party to a development

 

agreement entered into by a municipality or authority before August

 

19, 1993, for a project described in a tax increment financing plan

 

approved in accordance with this act before August 19, 1993, and

 

undertaken and installed by that party in accordance with the

 

development agreement.

 

     (iv) An obligation incurred by the authority evidenced by or

 

to finance a contract to purchase real property within a

 

development area or a contract to develop that property within the

 

development area, or both, if all of the following requirements are

 

met:

 

     (A) The authority purchased the real property in 1993.

 

     (B) Before June 30, 1995, the authority enters a contract for

 

the development of the real property located within the development

 

area.

 

     (C) In 1993, the authority or municipality on behalf of the

 

authority received approval for a grant from both of the following:

 

     (I) The department of natural resources for site reclamation

 

of the real property.

 

     (II) The department of consumer and industry services for

 

development of the real property.

 

     (v) An ongoing management or professional services contract


with the governing body of a county which was entered into before

 

March 1, 1994 and which was preceded by a series of limited term

 

management or professional services contracts with the governing

 

body of the county, the last of which was entered into before

 

August 19, 1993.

 

     (vi) A loan from a municipality to an authority if the loan

 

was approved by the legislative body of the municipality on April

 

18, 1994.

 

     (vii) Funds expended to match a grant received by a

 

municipality on behalf of an authority for sidewalk improvements

 

from the Michigan department of transportation if the legislative

 

body of the municipality approved the grant application on April 5,

 

1993 and the grant was received by the municipality in June 1993.

 

     (viii) For taxes captured in 1994, an obligation described in

 

this subparagraph issued or incurred to finance a project. An

 

obligation is considered issued or incurred to finance a project

 

described in this subparagraph only if all of the following are

 

met:

 

     (A) The obligation requires raising capital for the project or

 

paying for the project, whether or not a borrowing is involved.

 

     (B) The obligation was part of a development plan and the tax

 

increment financing plan was approved by a municipality on May 6,

 

1991.

 

     (C) The obligation is in the form of a written memorandum of

 

understanding between a municipality and a public utility dated

 

October 27, 1994.

 

     (D) The authority or municipality captured school taxes during


1994.

 

     (ix) An obligation incurred after July 31, 2012 by an

 

authority, municipality, or other governmental unit to pay for

 

costs associated with a catalyst development project.

 

     (x) "Public facility" means a street, plaza, pedestrian mall,

 

and any improvements to a street, plaza, or pedestrian mall

 

including street furniture and beautification, park, parking

 

facility, recreational facility, right-of-way, structure, waterway,

 

bridge, lake, pond, canal, utility line or pipe, building, and

 

access routes to any of the foregoing, designed and dedicated to

 

use by the public generally, or used by a public agency. Public

 

facility includes an improvement to a facility used by the public

 

or a public facility as those terms are defined in section 1 of

 

1966 PA 1, MCL 125.1351, which improvement is made to comply with

 

the barrier free design requirements of the state construction code

 

promulgated under the Stille-DeRossett-Hale single state

 

construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

 

Public facility also includes the acquisition, construction,

 

improvement, and operation of a building owned or leased by the

 

authority to be used as a retail business incubator.

 

     (y) "Qualified refunding obligation" means an obligation

 

issued or incurred by an authority or by a municipality on behalf

 

of an authority to refund an obligation if 1 or more of the

 

following apply:

 

     (i) The obligation is issued to refund a qualified refunding

 

obligation issued in November 1997 and any subsequent refundings of

 

that obligation issued before January 1, 2010 or the obligation is


issued to refund a qualified refunding obligation issued on May 15,

 

1997 and any subsequent refundings of that obligation issued before

 

January 1, 2010 in an authority in which 1 parcel or group of

 

parcels under common ownership represents 50% or more of the

 

taxable value captured within the tax increment finance district

 

and that will ultimately provide for at least a 40% reduction in

 

the taxable value of the property as part of a negotiated

 

settlement as a result of an appeal filed with the state tax

 

tribunal. Qualified refunding obligations issued under this

 

subparagraph are not subject to the requirements of section 611 of

 

the revised municipal finance act, 2001 PA 34, MCL 141.2611, if

 

issued before January 1, 2010. The duration of the development

 

program described in the tax increment financing plan relating to

 

the qualified refunding obligations issued under this subparagraph

 

is hereby extended to 1 year after the final date of maturity of

 

the qualified refunding obligations.

 

     (ii) The refunding obligation meets both of the following:

 

     (A) The net present value of the principal and interest to be

 

paid on the refunding obligation, including the cost of issuance,

 

will be less than the net present value of the principal and

 

interest to be paid on the obligation being refunded, as calculated

 

using a method approved by the department of treasury.

 

     (B) The net present value of the sum of the tax increment

 

revenues described in subdivision (cc)(ii) and the distributions

 

under section 13b to repay the refunding obligation will not be

 

greater than the net present value of the sum of the tax increment

 

revenues described in subdivision (cc)(ii) and the distributions


under section 13b to repay the obligation being refunded, as

 

calculated using a method approved by the department of treasury.

 

     (iii) The obligation is issued to refund an other protected

 

obligation issued as a capital appreciation bond delivered to the

 

Michigan municipal bond authority on December 21, 1994 and any

 

subsequent refundings of that obligation issued before January 1,

 

2012. Qualified refunding obligations issued under this

 

subparagraph are not subject to the requirements of section 305(2),

 

(3), (5), and (6), section 501, section 503, or section 611 of the

 

revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501,

 

141.2503, and 141.2611, if issued before January 1, 2012. The

 

duration of the development program described in the tax increment

 

financing plan relating to the qualified refunding obligations

 

issued under this subparagraph is extended to 1 year after the

 

final date of maturity of the qualified refunding obligations. The

 

obligation may be payable through the year 2025 at an interest rate

 

not exceeding the maximum rate permitted by law, notwithstanding

 

the bond maturity dates contained in the notice of intent to issue

 

bonds published by the municipality. An obligation issued under

 

this subparagraph is a qualified refunding obligation only to the

 

extent that revenues described in subdivision (cc)(ii) and

 

distributions under section 13b to repay the qualified refunding

 

obligation do not exceed $750,000.00.

 

     (iv) The obligation is issued to refund a qualified refunding

 

obligation issued on February 13, 2008, and any subsequent

 

refundings of that obligation, issued before December 31, 2018.

 

Qualified refunding obligations issued under this subparagraph are


not subject to the requirements of section 305(2), (3), (5), and

 

(6), 501, 503, or 611 of the revised municipal finance act, 2001 PA

 

34, MCL 141.2305, 141.2501, 141.2503, and 141.2611. The duration of

 

the development program described in the tax increment financing

 

plan relating to the qualified refunding obligations issued under

 

this subparagraph is extended to 1 year after the final date of

 

maturity of the qualified refunding obligations. Revenues described

 

in subdivision (cc)(ii) and distributions made under section 13b in

 

excess of the amount needed for current year debt service on an

 

obligation issued under this subparagraph may be paid to the

 

authority to the extent necessary to pay future years' debt service

 

on the obligation as determined by the board.

 

     (z) "Qualified township" means a township that meets all of

 

the following requirements:

 

     (i) Was not eligible to create an authority prior to January

 

3, 2005.

 

     (ii) Adjoins a municipality that previously created an

 

authority.

 

     (iii) Along with the adjoining municipality that previously

 

created an authority, is a member of the same joint planning

 

commission under the joint municipal planning act, 2003 PA 226, MCL

 

125.131 to 125.143.

 

     (aa) "Specific local tax" means a tax levied under 1974 PA

 

198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978

 

PA 255, MCL 207.651 to 207.668, the technology park development

 

act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL

 

211.181 to 211.182. The initial assessed value or current assessed


value of property subject to a specific local tax shall be the

 

quotient of the specific local tax paid divided by the ad valorem

 

millage rate. However, after 1993, the state tax commission shall

 

prescribe the method for calculating the initial assessed value and

 

current assessed value of property for which a specific local tax

 

was paid in lieu of a property tax.

 

     (bb) "State fiscal year" means the annual period commencing

 

October 1 of each year.

 

     (cc) "Tax increment revenues" means the amount of ad valorem

 

property taxes and specific local taxes attributable to the

 

application of the levy of all taxing jurisdictions upon the

 

captured assessed value of real and personal property in the

 

development area, subject to the following requirements:

 

     (i) Tax increment revenues include ad valorem property taxes

 

and specific local taxes attributable to the application of the

 

levy of all taxing jurisdictions other than the state pursuant to

 

the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,

 

and local or intermediate school districts upon the captured

 

assessed value of real and personal property in the development

 

area for any purpose authorized by this act.

 

     (ii) Tax increment revenues include ad valorem property taxes

 

and specific local taxes attributable to the application of the

 

levy of the state pursuant to the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906, and local or intermediate school

 

districts upon the captured assessed value of real and personal

 

property in the development area in an amount equal to the amount

 

necessary, without regard to subparagraph (i), to repay eligible


advances, eligible obligations, and other protected obligations.

 

     (iii) Tax increment revenues do not include any of the

 

following:

 

     (A) Ad valorem property taxes attributable either to a portion

 

of the captured assessed value shared with taxing jurisdictions

 

within the jurisdictional area of the authority or to a portion of

 

value of property that may be excluded from captured assessed value

 

or specific local taxes attributable to such ad valorem property

 

taxes.

 

     (B) Ad valorem property taxes excluded by the tax increment

 

financing plan of the authority from the determination of the

 

amount of tax increment revenues to be transmitted to the authority

 

or specific local taxes attributable to such ad valorem property

 

taxes.

 

     (C) Ad valorem property taxes exempted from capture under

 

section 3(3) or specific local taxes attributable to such ad

 

valorem property taxes.

 

     (D) Ad valorem property taxes levied under 1 or more of the

 

following or specific local taxes attributable to those ad valorem

 

property taxes:

 

     (I) The zoological authorities act, 2008 PA 49, MCL 123.1161

 

to 123.1183.

 

     (II) The art institute authorities act, 2010 PA 296, MCL

 

123.1201 to 123.1229.

 

     (III) The regional transit authority act, 2012 PA 387, MCL

 

124.541 to 124.558.

 

     (E) Ad valorem property taxes or specific local taxes levied


for a millage approved by the electors after December 31, 2016,

 

except for 1 or more of the following:

 

     (I) A millage approved by the electors under section 34d(11)

 

of the general property tax act, 1893 PA 206, MCL 211.34d.

 

     (II) A renewal of a millage that was authorized on or before

 

December 31, 2016.

 

     (iv) The amount of tax increment revenues authorized to be

 

included under subparagraph (ii) or (v), and required to be

 

transmitted to the authority under section 14(1), from ad valorem

 

property taxes and specific local taxes attributable to the

 

application of the levy of the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906, a local school district or an

 

intermediate school district upon the captured assessed value of

 

real and personal property in a development area shall be

 

determined separately for the levy by the state, each school

 

district, and each intermediate school district as the product of

 

sub-subparagraphs (A) and (B):

 

     (A) The percentage that the total ad valorem taxes and

 

specific local taxes available for distribution by law to the

 

state, local school district, or intermediate school district,

 

respectively, bears to the aggregate amount of ad valorem millage

 

taxes and specific taxes available for distribution by law to the

 

state, each local school district, and each intermediate school

 

district.

 

     (B) The maximum amount of ad valorem property taxes and

 

specific local taxes considered tax increment revenues under

 

subparagraph (ii) or (v).


     (v) Tax increment revenues include ad valorem property taxes

 

and specific local taxes, in an annual amount and for each year

 

approved by the state treasurer, attributable to the levy by this

 

state under the state education tax act, 1993 PA 331, MCL 211.901

 

to 211.906, and by local or intermediate school districts, upon the

 

captured assessed value of real and personal property in the

 

development area of an authority established in a city with a

 

population of 600,000 or more to pay for, or reimburse an advance

 

for, not more than $8,000,000.00 for the demolition of buildings or

 

structures on public or privately owned property within a

 

development area that commences in 2005, or to pay the annual

 

principal of or interest on an obligation, the terms of which are

 

approved by the state treasurer, issued by an authority, or by a

 

city on behalf of an authority, to pay not more than $8,000,000.00

 

of the costs to demolish buildings or structures on public or

 

privately owned property within a development area that commences

 

in 2005.

 

     (vi) Tax increment revenues include ad valorem property taxes

 

and specific local taxes attributable to the levy by this state

 

under the state education tax act, 1993 PA 331, MCL 211.201 to

 

211.906, and by local or intermediate school districts which were

 

levied on or after July 1, 2010, upon the captured assessed value

 

of real and personal property in the development area of an

 

authority established in a city with a population of 600,000 or

 

more to pay for, or reimburse an advance for, costs associated with

 

the land acquisition, preliminary site work, and construction of a

 

catalyst development project.


     Sec. 8. (1) If a board created under this act serves as the

 

planning commission under section 2 of Act No. 285 of the Public

 

Acts of 1931, being section 125.32 of the Michigan Compiled Laws,

 

the board shall include planning commission business in its agenda.

 

The municipality creating the authority shall ensure that a website

 

is operated and regularly maintained with all authority records and

 

documents, for the immediately preceding 5 fiscal years, including

 

all of the following:

 

     (a) Minutes of all board meetings.

 

     (b) Annual budget.

 

     (c) Annual audits.

 

     (d) Currently adopted development plan.

 

     (e) Currently adopted tax increment finance plan.

 

     (f) List of all authority sponsored and managed events.

 

     (g) Current authority staff contact information.

 

     (h) All promotional and marketing materials.

 

     (i) Amount of tax increment revenues captured for each taxing

 

jurisdiction that levies ad valorem property taxes or specific

 

local taxes within the boundaries of the authority.

 

     (j) Current contracts and other documents related to

 

management of the authority.

 

     (2) Subject to subsection (3), the requirements in subsection

 

(1) are required for records and documents related to fiscal years

 

starting the fiscal year of the date of enactment of the amendatory

 

act that added this subsection.

 

     (3) The records and documents described in subsection (1)(f),

 

(g), (h), and (j) shall be required for 2 fiscal years immediately


preceding the date of enactment of the amendatory act that added

 

this subsection.

 

     (4) The requirements of this section shall not take effect

 

until 180 days after the end of an authority's current fiscal year

 

as of the date of enactment of the amendatory act that added this

 

subsection.

 

     (5) Each year, the board shall hold not fewer than 1

 

informational meeting. The purpose of the informational meeting

 

will be to highlight the information described in subsection (1)(a)

 

to (j). Notice of an informational meeting shall be posted on the

 

municipality's or authority's website not less than 20 days before

 

the date of the informational meeting. Not less than 20 days before

 

the informational meeting, the board shall mail or electronically

 

mail notice of the informational meeting to the governing body of

 

each taxing jurisdiction levying taxes that are subject to capture

 

by the authority.

 

     Sec. 15. (1) The municipal and county treasurers shall

 

transmit to the authority tax increment revenues.

 

     (2) The authority shall expend the tax increment revenues

 

received for the development program only pursuant to the tax

 

increment financing plan. Surplus funds shall revert

 

proportionately to the respective taxing bodies. These revenues

 

shall not be used to circumvent existing property tax limitations.

 

The governing body of the municipality may abolish the tax

 

increment financing plan when it finds that the purposes for which

 

it was established are accomplished. However, the tax increment

 

financing plan shall not be abolished, allowed to expire, or


otherwise terminate, until the principal of, and interest on, bonds

 

issued pursuant to section 16 have been paid or funds sufficient to

 

make the payment have been segregated.

 

     (3) Annually the authority shall submit to the governing body

 

of the municipality, the governing body of a taxing unit levying

 

taxes subject to capture by an authority, and the state tax

 

commission a report on the status of the tax increment financing

 

account. The report shall be published in a newspaper of general

 

circulation in the municipality or on a website of the authority or

 

the municipality and shall include the following:

 

     (a) The amount and source of revenue in the account.

 

     (b) The amount in any bond reserve account.

 

     (c) The amount and purpose of expenditures from the account.

 

     (d) The amount of principal and interest on any outstanding

 

bonded indebtedness.

 

     (e) The initial assessed value of the project development

 

area.

 

     (f) The captured assessed value retained by the authority.

 

     (g) The tax increment revenues received.

 

     (h) The number of jobs created as a result of the

 

implementation of the tax increment financing plan.

 

     (h) The total new public investment by the authority in each

 

of the development areas.

 

     (i) The totals received by the authority or contributions made

 

by sponsorships, cash, and in-kind services for events, programs,

 

and projects within each development area.

 

     (j) The amounts of any funds other than tax increments


revenues used by the authority for any projects or activities in

 

the development areas.

 

     (k) The current assessed value of the development area.

 

     (l) The captured assessed value retained by the authority for

 

each taxing jurisdiction.

 

     (m) The amount of tax increment revenues used for the

 

operation of the authority.

 

     (n) (i) Any additional information the governing body or the

 

state tax commission considers necessary.

 

     (4) Tax increment revenues shall be expended within 5 years of

 

their receipt. However, tax increment revenues may be accumulated

 

for a period longer than 5 years, provided the tax increment

 

financing plan specifically provides for all of the following:

 

     (a) The reasons for accumulating those funds.

 

     (b) A time frame when the fund will be expended.

 

     (c) The uses for which the fund will be expended.

 

     Sec. 31. (1) The state tax commission department of treasury

 

may institute proceedings to compel enforcement of this act and

 

shall send written notification of the specific violation to an

 

authority failing to comply with this act and the governing body of

 

the municipality that established the authority of a violation of

 

any provision of this act.

 

     (2) The state tax commission department of treasury may

 

promulgate rules necessary for the administration of this act

 

pursuant to the administrative procedures act of 1969, Act No. 306

 

of the Public Acts of 1969, being sections 24.201 to 24.328 of the

 

Michigan Compiled Laws.1969 PA 306, MCL 24.201 to 24.328.


     (3) If the department of treasury notifies an authority in

 

writing that the authority failed to comply with any provision of

 

this act and after 60 days following receipt of that notice the

 

authority does not comply, that authority shall not capture any tax

 

increment revenues that are in excess of amounts necessary to pay

 

bonded indebtedness or other obligations for the period of

 

noncompliance as determined by the department of treasury. Any

 

excess funds captured shall be returned to the taxing jurisdiction

 

from which they were captured as provided in section 15(2).

 

     Enacting section 1. The following acts are repealed:

 

     (a) The historic neighborhood tax increment finance authority

 

act, 2004 PA 530, MCL 125.2841 to 125.2866.

 

     (b) The private investment infrastructure funding act, 2010 PA

 

250, MCL 125.1871 to 125.1883.