Bill Text: MI HB6348 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Economic development: local development financing authority; public notice; revise to make reference to the local government public notice act. Amends secs. 404 & 416 of 2018 PA 57 (MCL 125.4404 & 125.4416). TIE BAR WITH: HB 6440'20
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-11-18 - Bill Electronically Reproduced 11/18/2020 [HB6348 Detail]
Download: Michigan-2019-HB6348-Introduced.html
HOUSE BILL NO. 6348
November 12, 2020, Introduced by Reps. Coleman
and Steven Johnson and referred to the Committee on Government Operations.
A bill to amend 2018 PA 57, entitled
"Recodified tax increment financing act,"
by amending sections 404 and 416 (MCL 125.4404 and 125.4416).
the people of the state of michigan enact:
Sec. 404. (1) The
governing body of a municipality may declare by resolution adopted by a
majority of its members elected and serving its intention to create and provide
for the operation of an authority.
(2) In the resolution of intent, the governing body proposing
to create the authority shall set a date for holding a public hearing on the
adoption of a proposed resolution creating the authority and designating the
boundaries of the authority district or districts. Notice
Through December 31, 2021, notice of
the public hearing shall be published twice in a newspaper of general
circulation in the municipality, not less than 20 nor more than 40 days before
the date of the hearing. Beginning January 1, 2022,
the governing body shall post notice as provided in the local government public
notice act not less than 20 or more than 40 days before the date of the
hearing. Except as otherwise provided in subsection (8), not less
than 20 days before the hearing, the governing body proposing to create the
authority shall also mail notice of the hearing to the property taxpayers of
record in a proposed authority district and, for a public hearing to be held
after February 15, 1994, to the governing body of each taxing jurisdiction
levying taxes that would be subject to capture if the authority is established
and a tax increment financing plan is approved. Beginning June 1, 2005, the
notice of hearing within the time frame described in this subsection shall be
mailed by certified mail to the governing body of each taxing jurisdiction
levying taxes that would be subject to capture if the authority is established
and a tax increment financing plan is approved. Failure of a property taxpayer
to receive the notice shall not invalidate these proceedings. The notice shall
state the date, time, and place of the hearing, and shall describe the
boundaries of the proposed authority district or districts. At that hearing, a
resident, taxpayer, or property owner from a taxing jurisdiction in which the
proposed district is located or an official from a taxing jurisdiction with
millage that would be subject to capture has the right to be heard in regard to
the establishment of the authority and the boundaries of that proposed
authority district. The governing body of the municipality in which a proposed
district is to be located shall not incorporate land into an authority district
not included in the description contained in the notice of public hearing, but
it may eliminate lands described in the notice of public hearing from an
authority district in the final determination of the boundaries.
(3) Except as otherwise provided in subsection (8), not more
than 60 days after a public hearing held after February 15, 1994, the governing
body of a taxing jurisdiction with millage that would otherwise be subject to
capture may exempt its taxes from capture by adopting a resolution to that
effect and filing a copy with the clerk of the municipality proposing to create
the authority. However, a resolution by a governing body of a taxing
jurisdiction to exempt its taxes from capture is not effective for the capture
of taxes that are used for a certified technology park or a certified
alternative energy park. The resolution takes effect when filed with that clerk
and remains effective until a copy of a resolution rescinding that resolution
is filed with that clerk. If a separate millage for public library purposes was
levied before January 1, 2017, and all obligations and other protected
obligations of the authority are paid, then the levy is exempt from capture
under this part, unless the library board or commission allows all or a portion
of its taxes levied to be included as tax increment revenues and subject to
capture under this part under the terms of a written agreement between the
library board or commission and the authority. The written agreement shall be
filed with the clerk of the municipality. However, if a separate millage for
public library purposes was levied before January 1, 2017, and the authority
alters or amends the boundaries of the authority district or extends the
duration of the existing finance plan, then the library board or commission
may, not later than 60 days after a public hearing is held under this
subsection, exempt all or a portion of its taxes from capture by adopting a
resolution to that effect and filing a copy with the clerk of the municipality
that created the authority. For ad valorem property taxes or specific local
taxes attributable to those ad valorem property taxes levied for a separate
millage for public library purposes approved by the electors after December 31,
2016, a library board or commission may allow all or a portion of its taxes
levied to be included as tax increment revenues and subject to capture under
this part under the terms of a written agreement between the library board or
commission and the authority. The written agreement shall be filed with the
clerk of the municipality. However, if the library was created under section 1
or 10a of 1877 PA 164, MCL 397.201 and 397.210a, or established under 1869 LA
233, then any action of the library board or commission under this subsection
shall have the concurrence of the chief executive officer of the city that
created the library to be effective.
(4) Except as otherwise provided in subsection (8), not less
than 60 days after the public hearing or a shorter period as determined by the
governing body for a certified technology park or a certified alternative
energy park, if the governing body creating the authority intends to proceed
with the establishment of the authority, it shall adopt, by majority vote of its
members elected and serving, a resolution establishing the authority and
designating the boundaries of the authority district or districts within which
the authority shall exercise its powers. The adoption of the resolution is
subject to any applicable statutory or charter provisions with respect to the
approval or disapproval of resolutions by the chief executive officer of the
municipality and the adoption of a resolution over his or her veto. This
resolution shall be filed with the secretary of state promptly after its
adoption and shall be published at least once in a newspaper of general
circulation in the municipality.
(5) The governing body may alter or amend the boundaries of
an authority district to include or exclude lands from that authority district
or create new authority districts pursuant to the same requirements prescribed
for adopting the resolution creating the authority.
(6) The validity of the proceedings establishing an authority
shall be conclusive unless contested in a court of competent jurisdiction
within 60 days after the last of the following takes place:
(a) Publication of the resolution creating the authority as
adopted.
(b) Filing of the resolution creating the authority with the
secretary of state.
(7) Except as otherwise provided by this subsection, if 2 or
more municipalities desire to establish an authority under section 403(2), each
municipality in which the authority district will be located shall comply with
the procedures prescribed by this part. The notice required by subsection (2)
may be published jointly by the municipalities establishing the authority. The
resolutions establishing the authority shall include, or shall approve an
agreement including, provisions governing the number of members on the board,
the method of appointment, the members to be represented by governmental units
or agencies, the terms of initial and subsequent appointments to the board, the
manner in which a member of the board may be removed for cause before the
expiration of his or her term, the manner in which the authority may be
dissolved, and the disposition of assets upon dissolution. An authority
described in this subsection shall not be considered established unless all of
the following conditions are satisfied:
(a) A resolution is approved and filed with the secretary of
state by each municipality in which the authority district will be located.
(b) The same boundaries have been approved for the authority
district by the governing body of each municipality in which the authority
district will be located.
(c) The governing body of the county in which a majority of
the authority district will be located has approved by resolution the creation
of the authority.
(8) For an authority created under section 403(3), except as
otherwise provided by this subsection, the Next Michigan development
corporation shall comply with the procedures prescribed for a municipality by
subsections (1) and (2) and this subsection. The provisions of subsections (3)
and (4) shall not apply to an authority exercising its powers under section
403(3). The notice required by subsection (2) may be published by the Next
Michigan development corporation in a newspaper or newspapers of general
circulation within the municipalities which are constituent members of the Next
Michigan development corporation, and notice shall not be required to be mailed
to the property taxpayers of record in the proposed authority district. The
governing body of the Next Michigan development corporation shall be the
governing body of the authority. A taxing jurisdiction levying ad valorem taxes
within the authority district that would otherwise be subject to capture which
is not a party to the intergovernmental agreement may exempt its taxes from
capture by adopting a resolution to that effect and filing a copy not more than
60 days after the public hearing with the recording officer of the Next
Michigan development corporation. The Next Michigan development corporation
shall mail notice of the public hearing to the governing body of each taxing
jurisdiction which is not a party to the intergovernmental agreement not less
than 20 days before the hearing. Following the public hearing, the governing
body of the Next Michigan development corporation shall adopt a resolution
designating the boundaries of the authority district within which the authority
shall exercise its powers, which may include any certified technology park
within the proposed authority district in accordance with this subsection and
may include property adjacent to or within 1,500 feet of a road classified as
an arterial or collector according to the Federal Highway Administration manual
"Highway Functional Classification - Concepts, Criteria and
Procedures" or of another road in the discretion of the Next Michigan
development corporation, and property adjacent to that property within the
territory of the Next Michigan development corporation, as provided in the
resolution. The resolution shall be effective when adopted, shall be filed with
the secretary of state and the president of the Michigan strategic fund
promptly after its adoption, and shall be published at least once in a
newspaper of general circulation in the territory of the Next Michigan
development corporation. If an authority district designated under this
subsection or subsequently amended includes a certified technology park which
is within the authority district of another authority and which is subject to
an existing development plan or tax increment financing plan, then that
certified technology park may be considered to be under the jurisdiction of the
authority established under section 403(3) if so provided in a resolution of
the authority established under section 403(3) and if approved by resolution of
the governing body of the municipality which created the other authority, and
by the president of the Michigan strategic fund. If so provided and approved,
then the development plan and tax increment financing plan applicable to the
certified technology park, including all assets and obligations under the
plans, shall be considered assigned and transferred from the other authority to
the authority created under section 403(3), and the initial assessed value of
the certified technology park prior to the transfer shall remain the initial
assessed value of the certified technology park following the transfer. The
transfer shall be effective as of the later of the effective date of the
resolution of the authority established under section 403(3), the resolution
approved by the governing body of the municipality which created the other
authority, and the approval of the president of the Michigan strategic fund.
Sec. 416. (1)
Before adoption of a resolution approving or amending a development plan or
approving or amending a tax increment financing plan, the governing body shall
hold a public hearing on the development plan. Notice
Through December 31, 2021, notice of
the time and place of the hearing shall be given by publication twice in a
newspaper of general circulation designated by the municipality, the first of
which shall not be less than 20 days before the date set for the hearing. Beginning January 1, 2022, the governing body shall post notice as
provided in the local government public notice act not less than 20 days before
the date set for the hearing. Beginning June 1, 2005, the notice
of hearing within the time frame described in this subsection shall be mailed
by certified mail to the governing body of each taxing jurisdiction levying
taxes that would be subject to capture if the development plan or the tax
increment financing plan is approved or amended.
(2) Notice of the time and place of hearing on a development
plan shall contain the following:
(a) A description of the property to which the plan applies
in relation to highways, streets, streams, or otherwise.
(b) A statement that maps, plats, and a description of the
development plan, including the method of relocating families and individuals
who may be displaced from the area, are available for public inspection at a
place designated in the notice, and that all aspects of the development plan
will be open for discussion at the public hearing.
(c) Other information that the governing body considers
appropriate.
(3) At the time set for hearing, the governing body shall
provide an opportunity for interested persons to be heard and shall receive and
consider communications in writing with reference to the matter. The hearing
shall provide the fullest opportunity for expression of opinion, for argument
on the merits, and for introduction of documentary evidence pertinent to the
development plan. The governing body shall make and preserve a record of the
public hearing, including all data presented at that time.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 6440 (request no. 02449'19) of the 100th Legislature is enacted into law.