Bill Text: MI HB5855 | 2015-2016 | 98th Legislature | Engrossed

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Bill Title: Economic development; tax increment financing; reporting and oversight of tax increment financing and certain tax increment financing changes; provide for. Amends secs. 1, 4, 8, 14 & 30 of 1980 PA 450 (MCL 125.1801 et seq.).

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2016-12-06 - Referred To Committee On Economic Development And International Investment [HB5855 Detail]

Download: Michigan-2015-HB5855-Engrossed.html

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HB-5855, As Passed House, December 1, 2016

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5855

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1980 PA 450, entitled

 

"The tax increment finance authority act,"

 

by amending sections 1, 4, 8, 14, and 30 (MCL 125.1801, 125.1804,

 

125.1808, 125.1814, and 125.1830), section 1 as amended by 2014 PA

 

38, section 4 as amended and section 8 as added by 1987 PA 68,

 

section 14 as amended by 1993 PA 322, and section 30 as added by

 

1988 PA 420.

 

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.

 

Evidence of the intent to repay an advance is required and may

 

include, but is not limited to, an executed agreement to repay,

 

provisions contained in a tax increment financing plan approved

before the advance or before August 14, 1993, 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, taxable

 

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

 

act, 1893 PA 206, MCL 211.27a.

 

     (c) "Authority" means a tax increment finance authority

 

created under this act.

 

     (d) "Authority district" means that area within which an

 

authority exercises its powers and within which 1 or more

 

development areas may exist.

 

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

 

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

 

by which the current assessed value of the development area,

 

including the assessed value of property for which specific local

 

taxes are paid in lieu of property taxes as determined in

 

subdivision (w), exceeds the initial assessed value. The state tax

 

commission shall prescribe the method for calculating captured

 

assessed value.

 

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

 

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

 

township.

 

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

 

plan is applicable.

     (i) "Development area citizens council" or "council" means

 

that advisory body established pursuant to section 20.

 

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

 

requirements for a development set forth in section 16.

 

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

 

development plan.

 

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

 

1993.

 

     (m) "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.

 

Eligible obligation also includes an ongoing management contract or

 

contract for professional services or development services that was

 

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

 

authority in 1991, and related similar written agreements executed

 

before 1984, if the 1991 agreement both provides for automatic

 

annual renewal and incorporates by reference the prior related

 

agreements; however, receipt by an authority of tax increment

 

revenues authorized under subdivision (aa)(ii) in order to pay

 

costs arising under those contracts shall be limited to:

 

     (i) For taxes levied before July 1, 2005, the amount permitted

 

to be received by an authority for an eligible obligation as

 

provided in this act.

     (ii) For taxes levied after June 30, 2005 and before July 1,

 

2006, $3,000,000.00.

 

     (iii) For taxes levied after June 30, 2006 and before July 1,

 

2007, $3,000,000.00.

 

     (iv) For taxes levied after June 30, 2007 and before July 1,

 

2008, $3,000,000.00.

 

     (v) For taxes levied after June 30, 2008 and before July 1,

 

2009, $3,000,000.00.

 

     (vi) For taxes levied after June 30, 2009 and before July 1,

 

2010, $3,000,000.00.

 

     (vii) For taxes levied after June 30, 2010 and before July 1,

 

2011, $2,650,000.00.

 

     (viii) For taxes levied after June 30, 2011 and before July 1,

 

2012, $2,400,000.00.

 

     (ix) For taxes levied after June 30, 2012 and before July 1,

 

2013, $2,125,000.00.

 

     (x) For taxes levied after June 30, 2013 and before July 1,

 

2014, $1,500,000.00.

 

     (xi) For taxes levied after June 30, 2014 and before July 1,

 

2015, $1,150,000.00.

 

     (xii) For taxes levied after June 30, 2015, $0.00.

 

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

 

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

 

having legislative powers.

 

     (p) "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 resolution 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

 

property that is exempt from taxation. The initial assessed value

 

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

 

tax shall be determined as provided in subdivision (w).

 

     (q) "Municipality" means a city.

 

     (r) "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.

 

     (s) "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 a municipality, or the 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.

 

     (t) "Other protected obligation" means:

     (i) A qualified refunding obligation issued to refund an

 

obligation described in subparagraph (ii) or (iii), 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 the municipality or authority

 

before March 1, 1994.

 

     (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 issued or incurred by an authority or by a

 

municipality on behalf of an authority to implement a project

 

described in a tax increment finance plan approved by the

 

municipality in accordance with this act before August 19, 1993,

 

that is located on land owned by a public university on the date

 

the tax increment financing plan is approved, and for which a

 

contract for final design is entered into before December 31, 1993.

 

     (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) An obligation issued or incurred by a municipality under

 

a contract executed on December 19, 1994 as subsequently amended

 

between the municipality and the authority to implement a project

 

described in a tax increment finance plan approved by the

 

municipality under this act before August 19, 1993 for which a

 

contract for final design was entered into by the municipality

 

before March 1, 1994 provided that final payment by the

 

municipality is made on or before December 31, 2001.

 

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

 

municipality on behalf of an authority that meets all of the

 

following qualifications:

 

     (A) The obligation is issued or incurred to finance a project

 

described in a tax increment financing plan approved before August

 

19, 1993 by a municipality in accordance with this act.

 

     (B) The obligation qualifies as an other protected obligation

 

under subparagraph (ii) and was issued or incurred by the authority

 

before December 31, 1994 for the purpose of financing the project.

 

     (C) A portion of the obligation issued or incurred by the

 

authority before December 31, 1994 for the purpose of financing the

 

project was retired prior to December 31, 1996.

 

     (D) The obligation does not exceed the dollar amount of the

 

portion of the obligation retired prior to December 31, 1996.

     (viii) An obligation incurred by an authority that meets both

 

of the following qualifications:

 

     (A) The obligation is a contract of lease originally executed

 

on December 20, 1994 between the municipality and the authority to

 

partially implement the authority's development plan and tax

 

increment financing plan.

 

     (B) The obligation qualifies as an obligation under

 

subparagraph (ii). The obligation described in this subparagraph

 

may be amended to extend cash rental payments for a period not to

 

exceed 30 years through the year 2039. The duration of the

 

development plan and tax increment financing plan described in this

 

subparagraph is extended to 1 year after the final date that the

 

extended cash rental payments are due.

 

     (u) "Public facility" means 1 or more of the following:

 

     (i) A street, plaza, or pedestrian mall, and any improvements

 

to a street, plaza, boulevard, alley, or pedestrian mall, including

 

street furniture and beautification, park, parking facility,

 

recreation facility, playground, school, library, public

 

institution or administration building, right of way, structure,

 

waterway, bridge, lake, pond, canal, utility line or pipeline,

 

transit-oriented development, transit-oriented facility, and other

 

similar facilities and necessary easements of these facilities

 

designed and dedicated to use by the public generally or used by a

 

public agency. As used in this subparagraph, public institution or

 

administration building includes, but is not limited to, a police

 

station, fire station, court building, or other public safety

 

facility.

     (ii) The acquisition and disposal of real and personal

 

property or interests in real and personal property, demolition of

 

structures, site preparation, relocation costs, building

 

rehabilitation, and all associated administrative costs, including,

 

but not limited to, architect's, engineer's, legal, and accounting

 

fees as contained in the resolution establishing the district's

 

development plan.

 

     (iii) 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.

 

     (v) "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 of the following

 

applies:

 

     (i) 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 (aa)(ii) and the distributions

 

under section 12a 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 (aa)(ii) and the distributions

 

under section 12a to repay the obligation being refunded, as

 

calculated using a method approved by the department of treasury.

 

     (ii) The refunding obligation is a tax increment refunding

 

bond issued to refund a refunding bond that is an other protected

 

obligation issued as a capital appreciation bond delivered to the

 

Michigan municipal bond authority on December 21, 1994, or bonds

 

issued to refund that bond, and the authority, by resolution of its

 

board, authorized issuance of the refunding obligation before

 

December 31, 2019 with a final maturity not later than 2039. The

 

municipality by majority vote of the members of its governing body

 

may pledge its full faith and credit for the payment of the

 

principal of and interest on the refunding obligation. A refunding

 

obligation issued under this subparagraph is not subject to the

 

requirements of section 305(2), (3), (5), or (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

 

plan and the tax increment financing plan relating to the refunding

 

obligations described in this subparagraph is extended to 1 year

 

after the final date of maturity of the refunding obligation.

 

     (w) "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.

 

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

 

October 1 of each year.

 

     (y) "Tax increment district" or "district" means that area to

 

which the tax increment finance plan pertains.

 

     (z) "Tax increment financing plan" means that information and

 

those requirements set forth in sections 13 to 15.

 

     (aa) "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 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.

 

     (D) 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 authorized on or before December

 

31, 2016.

 

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

 

included under subparagraph (ii), 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 which 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, bear 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).

 

     (bb) "Transit-oriented development" means infrastructure

 

improvements that are located within 1/2 mile of a transit station

or transit-oriented facility that promotes transit ridership or

 

passenger rail use as determined by the board and approved by the

 

municipality in which it is located.

 

     (cc) "Transit-oriented facility" means a facility that houses

 

a transit station in a manner that promotes transit ridership or

 

passenger rail use.

 

     Sec. 4. (1) The authority shall be under the supervision and

 

control of a board chosen by the governing body which may by

 

majority vote designate any 1 of the following to constitute the

 

board:

 

     (a) The board of directors of the economic development

 

corporation of the municipality established pursuant to the

 

economic development corporations act, Act No. 338 of the Public

 

Acts of 1974, as amended, being sections 125.1601 to 125.1636 of

 

the Michigan Compiled Laws.1974 PA 338, MCL 125.1601 to 125.1636.

 

     (b) The trustees of the board of a downtown development

 

authority established pursuant to Act No. 197 of the Public Acts of

 

1975, as amended, being sections 125.1651 to 125.1680 of the

 

Michigan Compiled Laws.1975 PA 197, MCL 125.1651 to 125.1681.

 

     (c) The trustees of the board of an urban redevelopment

 

corporation established pursuant to the urban redevelopment

 

corporations law, Act No. 250 of the Public Acts of 1941, as

 

amended, being sections 125.901 to 125.922 of the Michigan Compiled

 

Laws.1941 PA 250, MCL 125.901 to 125.922.

 

     (d) The members of the commission established pursuant to Act

 

No. 344 of the Public Acts of 1945, being sections 125.71 to 125.84

 

of the Michigan Compiled Laws.1945 PA 344, MCL 125.71 to 125.84.

     (e) In a municipality that has a population of less than

 

5,000, the planning commission of the municipality established

 

pursuant to Act No. 285 of the Public Acts of 1931, being sections

 

125.31 to 125.45 of the Michigan Compiled Laws.former 1931 PA 285

 

or the Michigan planning enabling act, 2008 PA 33, MCL 125.3801 to

 

125.3885.

 

     (f) Not less than 7 nor more than 13 persons appointed by the

 

chief executive officer of the municipality subject to the approval

 

of the governing body. Of the members appointed, an equal number,

 

as near as practicable, shall be appointed for 1 year, 2 years, 3

 

years, and 4 years. A member shall hold office until the member's

 

successor is appointed. Thereafter, each member shall serve for a

 

term of 4 years. An appointment to fill a vacancy shall be made by

 

the chief executive officer of the municipality for the unexpired

 

term only. Members of the board shall serve without compensation,

 

but shall be reimbursed for actual and necessary expenses.

 

     (2) The chairperson of the board shall be elected by the

 

board.

 

     (3) Before assuming the duties of office, a member shall

 

qualify by taking and subscribing to the constitutional oath of

 

office.

 

     (4) The board shall adopt rules governing its procedure and

 

the holding of regular meetings, subject to the approval of the

 

governing body. Special meetings may be held when called in the

 

manner provided in the rules of the board. Meetings of the board

 

shall be open to the public, in accordance with the open meetings

 

act, Act No. 267 of the Public Acts of 1976, as amended, being

sections 15.261 to 15.275 of the Michigan Compiled Laws.1976 PA

 

267, MCL 15.261 to 15.275.

 

     (5) Pursuant to notice and an opportunity to be heard, a

 

member of the board appointed pursuant to subsection (1)(f) may be

 

removed before the expiration of his or her term for cause by the

 

governing body. Removal of a member is subject to the review by the

 

circuit court.

 

     (6) All expense items of the authority shall be publicized

 

annually and the financial records shall be open to the public

 

pursuant to the freedom of information act, Act No. 442 of the

 

Public Acts of 1976, as amended, being sections 15.231 to 15.246 of

 

the Michigan Compiled Laws.1976 PA 442, MCL 15.231 to 15.246.

 

     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. 14. (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 in accordance with the

 

tax increment financing plan. Surplus funds may be retained by the

 

authority for the payment of the principal of and interest on

 

outstanding tax increment bonds or for other purposes that, by

 

resolution of the board, are determined to further the development

 

program. Any surplus funds not so used shall revert proportionately

 

to the respective taxing bodies. These revenues shall not be used

 

to circumvent existing property tax laws or a local charter that

 

provides a maximum authorized rate for levy of property taxes. The

 

governing body may abolish the tax increment financing plan when it

 

finds that the purposes for which the plan was established are

 

accomplished. However, the tax increment finance plan shall not be

 

abolished, allowed to expire, or otherwise terminate, until the

 

principal of and interest on bonds issued pursuant to section 15

 

have been paid or funds sufficient to make the payment have been

 

segregated.

 

     (3) The authority shall submit annually to the governing body,

 

the governing body of a taxing unit levying taxes subject to

 

capture by an authority, and the state tax commission a financial

 

report on the status of the tax increment financing plan. The

 

report shall be published in a newspaper of general circulation in

 

the municipality or on a website of the authority or the

 

municipality. The report shall include the following:

     (a) The amount and source of tax increments received.

 

     (b) The amount in any bond reserve account.

 

     (c) The amount and purpose of expenditures of tax increment

 

revenues.

 

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

 

bonded indebtedness.

 

     (e) The initial assessed value of the development area.

 

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

 

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

 

implementation of the tax increment financing plan.The tax

 

increment revenues received.

 

     (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 the tax increment revenues used for the

 

operation of the authority.

 

     (n) (h) 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. 30. (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 14(2).