Bill Text: MI SB0002 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Labor; hours and wages; reference to repealed law; eliminate. Amends secs. 6a & 8 of 1974 PA 338 (MCL 125.1606a & 125.1608). TIE BAR WITH: SB 0003'17

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-01-18 - Referred To Committee On Michigan Competitiveness [SB0002 Detail]

Download: Michigan-2017-SB0002-Introduced.html

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SENATE BILL No. 2

 

 

January 18, 2017, Introduced by Senators MACGREGOR, ROBERTSON, HILDENBRAND and MEEKHOF and referred to the Committee on Michigan Competitiveness.

 

 

     A bill to amend 1974 PA 338, entitled

 

"Economic development corporations act,"

 

by amending sections 6a and 8 (MCL 125.1606a and 125.1608), as

 

amended by 2002 PA 357.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6a. (1) In order to implement a project described in

 

section 3(f)(ii), a corporation incorporated by a city with a

 

population of greater than 750,000 persons may create subsidiary

 

neighborhood development corporations within the city in which the

 

parent corporation may operate. A subsidiary neighborhood

 

development corporation created pursuant to under this subsection

 

shall have power to may conduct business solely for the purpose of

 

a project under section 3(f)(ii), but in with respect to those

 

projects the subsidiary shall have has the same powers of a

corporation formed under this act, except as may be limited by the

 

parent corporation in the articles of incorporation or bylaws of

 

the subsidiary.

 

     (2) To the extent the project involves training for

 

disadvantaged youths, a subsidiary created pursuant to this section

 

shall be exempt from the requirement of the payment of prevailing

 

wage and fringe benefit rates described in section 8(4)(h).

 

     (2) (3) Any surplus from the sale of property in the involved

 

project area under section 3(f)(ii), after payment of principal and

 

interest or other evidences of indebtedness, shall must be

 

deposited in a revolving fund of the corporation creating the

 

subsidiary corporation. , which The fund shall be is restricted to

 

provide revenue for other projects authorized by section 3(f)(ii),

 

within the city.

 

     (3) (4) When bonds or notes are sold to implement projects

 

under section 3(f)(ii), provision shall must be made for the

 

immediate repayment of the bonds or notes at the time all property

 

in the involved project area is sold.

 

     Sec. 8. (1) The corporation shall designate the project area

 

to the governing body of the municipality for which the corporation

 

is incorporated. The governing body of the municipality for which

 

the corporation is incorporated shall certify its approval of the

 

designation of a project area by resolution.

 

     (2) Before acquiring property, or an interest in land, or

 

incurring obligations for a specific project, other than the

 

acquisition of an option or as provided in subsection (9), the

 

corporation shall prepare a project plan and, except as provided in

section 9(3), secure the recommendation of the local public agency

 

of the municipality for which the corporation is incorporated; ,

 

except as provided in section 9(3), the approval of the governing

 

body of each city, village, or township in which all or a part of

 

the project is located; , and the approval of the county, if the

 

corporation is an economic development corporation for the county.

 

     (3) The corporation shall certify to the governing body of the

 

municipality for which the corporation is incorporated that at the

 

time the project plan is approved by the corporation, the project

 

shall would not have the effect of transferring employment of more

 

than 20 full-time persons from a municipality of this state to the

 

municipality in which the project is to be located. This

 

restriction shall does not prevent the approval of a project if the

 

governing body of each municipality from which employment is to be

 

transferred consents by resolution to the transfer.

 

     (4) The project plan shall must contain the following, except

 

that agricultural and forestry enterprise projects need only comply

 

with subsection (9) with respect to project plans:

 

     (a) The location and extent of existing streets and other

 

public facilities within the project district area; , and shall

 

designate the location, character, and extent of the categories of

 

public and private land uses then existing and proposed for the

 

project area, including residential, recreational, commercial,

 

industrial, educational, and other uses; and shall include a legal

 

description of the project area.

 

     (b) A description of existing improvements in the project area

 

to be demolished, repaired, or altered; , a description of repairs

and alterations; , and an estimate of the time required for

 

completion.

 

     (c) The location, extent, character, and estimated cost of the

 

improvements, including rehabilitation contemplated for the project

 

area, and an estimate of the time required for completion.

 

     (d) A statement of the construction or stages of construction

 

planned, and the estimated time of completion of each stage.

 

     (e) A description of the parts of the project area to be left

 

as open space and the use contemplated for the space.

 

     (f) A description of portions of the project area that the

 

corporation desires to sell, donate, exchange, or lease to or from

 

the municipality, and the proposed terms.

 

     (g) A description of desired zoning changes and changes in

 

streets, street levels, intersections, and utilities.

 

     (h) A statement of the proposed method of financing the

 

project, including , except as provided in section 6a, a statement

 

by a person described in subparagraph (j) indicating the payment to

 

all persons performing work on the construction project of the

 

prevailing wage and fringe benefit rates for the same or similar

 

work in the locality in which the work is to be performed, and a

 

statement of the ability of the corporation to arrange the

 

financing. The prevailing wage and fringe benefit rates shall be

 

determined under 1965 PA 166, MCL 408.551 to 408.558. A corporation

 

may conclusively rely upon the statement required under this

 

subsection as to compliance with the payment of prevailing wage and

 

fringe benefit rates and any contracts, bonds or notes of any

 

corporation entered into or issued upon reliance on any statement

shall not be subsequently voided by reason of the failure to comply

 

with the requirements of this subsection.

 

     (i) A list of persons who will manage or be associated with

 

the management of the project for a period of not less than 1 year

 

from the date of approval of the project plan.

 

     (j) Designation of the person or persons, natural or

 

corporate, to whom the project is to be leased, sold, or conveyed

 

and for whose benefit the project is being undertaken if that

 

information is available to the corporation.

 

     (k) If there is not an express or implied agreement between

 

the corporation and persons, natural or corporate, that the project

 

will be leased, sold, or conveyed to those persons, the procedures

 

for bidding for the leasing, purchasing, or conveying of the

 

project upon its completion.

 

     (l) Estimates of the number of persons residing in the project

 

area, and the number of families and individuals to be displaced.

 

If occupied residences are designated for acquisition and clearance

 

by the corporation, a project plan shall must include a survey of

 

the families and individuals to be displaced, including their

 

income and racial composition; , a statistical description of the

 

housing supply in the community, including the number of private

 

and public units in existence or under construction, the condition

 

of those in existence, the number of owner-occupied and renter-

 

occupied units, the annual rate of turnover of the various types of

 

housing and the range of rents and sale prices; , an estimate of

 

the total demand for housing in the community; , and the estimated

 

capacity of private and public housing available to displaced

families and individuals.

 

     (m) A plan for establishing priority for the relocation of

 

persons displaced by the project in new housing in the project

 

area.

 

     (n) Provision for the costs of relocating persons displaced by

 

the project and financial assistance and reimbursement of expenses,

 

including litigation expenses and expenses incident to the transfer

 

of title, in accordance with the standards and provisions of the

 

uniform relocation assistance and real property acquisition

 

policies act of 1970, Public Law 91-646, 84 Stat. 1894 42 USC 4601

 

to 4655.

 

     (o) A plan for compliance with 1972 PA 227, MCL 213.321 to

 

213.332.

 

     (p) Other material as the corporation, local public agency, or

 

governing body considers pertinent.

 

     (5) The corporation shall be is considered an instrumentality

 

of a political subdivision for purposes of 1972 PA 227, MCL 213.321

 

to 213.332.

 

     (6) A person shall must be given not less than 90 days'

 

written notice to vacate unless modified by court order for good

 

cause.

 

     (7) The corporation shall not operate a project or an

 

enterprise in a project, other than as lessor.

 

     (8) The governing body may utilize the corporation to issue

 

obligations pursuant to under section 7 to accomplish the public

 

purposes of the municipality set forth in section 2, and for that

 

purpose may by resolution direct the corporation to take

appropriate action as set forth in subsections (1) and (2) with

 

respect to a proposed project.

 

     (9) In the case of project plans for agricultural and forestry

 

enterprises, the following information shall must be provided in

 

lieu of the requirements of subsections (2) and (4):

 

     (a) A statement of intention regarding the objectives of the

 

project.

 

     (b) A general description of the kinds of buildings,

 

improvements, storage facilities, restorations, acquisition of

 

machinery, equipment furnishings, leasehold improvements and

 

incidental related costs to be financed.

 

     (c) A statement regarding the length of the project and the

 

maximum amount to be financed over the life of the project.

 

     (d) A statement by the corporation that no zoning change or

 

eminent domain proceedings will be necessary to implement the

 

project.

 

     (e) A description of the process to be followed in

 

implementing the individual transactions that may comprise the

 

project.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 3.                                       

 

          of the 99th Legislature is enacted into law.