Bill Text: MI SB0523 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Economic development; other; state convention facility development act; revise distribution of funds. Amends sec. 9 of 1985 PA 106 (MCL 207.629).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-28 - Placed On Order Of Third Reading With Substitute S-2 [SB0523 Detail]
Download: Michigan-2017-SB0523-Introduced.html
SENATE BILL No. 523
September 6, 2017, Introduced by Senator CASPERSON and referred to the Committee on Commerce.
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending section 9 (MCL 207.629), as amended by 2009 PA 61.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) Except as provided in subsection (5) or (6), on or
before the thirtieth day of each month, the state treasurer shall
make a distribution from the convention facility development fund
to a qualified local governmental unit. The distribution shall be
an amount equal to the sum of the collections from the excise tax
levied for accommodations under this act for the previous month
from the convention hotels in the county in which the convention
facility is or is to be located and in any county in which
convention hotels are located that is contiguous to the county in
which the convention facility is located, or is to be located, the
additional tax imposed under section 1207 of the Michigan liquor
control code of 1998, 1998 PA 58, MCL 436.2207, for the previous
month received in the fund, and any distribution received under
section 5(b)(iii) of the health and safety fund act, 1987 PA 264,
MCL 141.475, and from the 21st century jobs trust fund under
section 8(4). However, distributions for any state fiscal year to
any qualified local governmental unit under this section shall not
exceed an amount equal to the amount pledged, assigned, or
dedicated by the qualified local governmental unit pursuant to
section 11 for the payment during that state fiscal year of bonds,
obligations, or other evidences of indebtedness incurred for the
purposes specified in this act or the regional convention facility
authority act, 2008 PA 554, MCL 141.1351 to 141.1379, plus
operating deficit cost expenditures and other expenditures
authorized under section 10, plus any amount necessary to maintain
a fully funded debt reserve or other reserves intended to secure
the principal and interest on the bonds, obligations, or other
evidences of indebtedness as contained in the resolution or
ordinance authorizing their issuance.
(2) Notwithstanding the distributions provided by subsection
(1), if a local governmental unit becomes a qualified local
governmental unit entitled to receive distributions from the tax
imposed under section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, or from the tax imposed by this act
in counties in which the convention facility is located or in a
county in which a convention hotel is located that is contiguous to
the county in which the convention facility is located, and from
any distribution under section 5(b)(iii) of the health and safety
fund act, 1987 PA 264, MCL 141.475, no other qualified local
governmental unit is entitled to distributions pursuant to this
section for which that qualified local governmental unit has
previously become entitled, until such time as that qualified local
governmental unit ownership or leasehold interest described in
subsection (3) is transferred to another local governmental unit.
If that transfer renders the transferee a qualified local
governmental unit, the transferee shall, immediately upon that
transfer, be entitled to the distributions to a qualified local
governmental unit provided in subsection (1) and the priority
provided to a qualified local governmental unit in this subsection,
notwithstanding that the amount of the distributions may increase
as a result of that transfer. A transfer under this subsection
includes a transfer that occurs on a transfer date under the
regional convention facility authority act, 2008 PA 554, MCL
141.1351 to 141.1379.
(3) Notwithstanding the provisions of subsection (2), if the
transfer and lease of a qualified convention facility to an
authority is disapproved and the authority is dissolved under
section 19(1) of the regional convention facility authority act,
2008 PA 554, MCL 141.1369, then a distribution from the convention
facility development fund of proceeds received under section
5(b)(iii) of the health and safety fund act, 1987 PA 264, MCL
141.475, shall be made to a building authority for a county having
a population of not less than 1,000,000 and not more than 1,500,000
according to the most recent federal decennial census for the
purpose of developing, leasing, or operating a convention facility
as defined in this act and no other qualified local governmental
unit is entitled to any distribution of proceeds received under
section 5(b)(iii) of the health and safety fund act, 1987 PA 264,
MCL 141.475.
(4) As used in this act, "qualified local governmental unit"
means, except as otherwise provided in this subsection, a city,
village, township, county, or authority that is located in, or
includes within its territory or jurisdiction, a county in which
convention hotels are located and that either is the owner or
lessee of a convention facility with 350,000 square feet or more of
total exhibit space on July 30, 1985 or, if such a convention
facility does not exist, will be the owner or lessee of a
convention facility with 350,000 square feet or more of total
exhibit space through the application of distributions under this
section to the purchase or lease of a convention facility.
Qualified local governmental unit includes a metropolitan authority
that leases, develops, operates, and maintains a qualified
convention facility under the regional convention facility
authority act, 2008 PA 554, MCL 141.1351 to 141.1379. If the
transfer and lease of a qualified convention facility to an
authority is disapproved and the authority is dissolved under
section 19(1) of the regional convention facility authority act,
2008 PA 554, MCL 141.1369, then for purposes of any distribution
from the convention facility development of proceeds under section
5(b)(iii) of the health and safety fund act, 1987 PA 264, MCL
141.475, qualified local governmental unit means a building
authority for a county having a population of not less than
1,000,000 and not more than 1,500,000 according to the most recent
federal decennial census.
(5) Before the 2015-2016 fiscal year, collections from the
excise tax levied for accommodations under this act and collections
from the tax imposed under section 1207 of the Michigan liquor
control code of 1998, 1998 PA 58, MCL 436.2207, shall not be paid
to a qualified local governmental unit for the repayment of bonds,
obligations, or other evidences of indebtedness incurred after
2007.
(6) Beginning in fiscal year 2015-2016, and each fiscal year
thereafter, if a transfer and a lease of a qualified convention
facility is disapproved and an authority is dissolved under section
19(1) of the regional convention facility authority act, 2008 PA
554, MCL 141.1369, then the collections from the excise tax levied
for accommodations under this act shall be distributed to each
county in which it was levied based on the amount collected in that
county. However, if an excise tax for accommodations is levied in a
qualified city at a rate greater than the rate levied in that
portion of the county in which the qualified city is not located,
the qualified city shall receive the collections of the excise tax
for accommodations in an amount equal to the difference between the
rate levied in the qualified city and the rate levied in that
portion of the county in which the qualified city is not located.
The funds described in this subsection are not available for a
distribution of subsection (1). As used in this subsection,
"qualified city" means that term as defined in section 5 of the
regional convention facility authority act, 2008 PA 554, MCL
141.1355.
(7) If a building authority becomes a qualified local
governmental unit under subsection (4), collections from
distributions under section 5(b)(iii) of the health and safety fund
act, 1987 PA 264, MCL 141.475, shall be paid by the state treasurer
on or before the thirtieth day of each month to that building
authority.
(8) Notwithstanding any other provision of this act, after the
distributions under subsection (1), and before any distributions
under section 10, for fiscal years 2017-2018 through 2026-2027
only, $1,900,000.00 each fiscal year shall be distributed to the
northern Michigan regional tourism and sports fund. The money
distributed to the northern Michigan regional tourism and sports
fund described in this subsection shall be deducted from the money
described in section 10(2)(a) before any distribution is made under
section 10(2)(a).
(9) The northern Michigan regional tourism and sports fund is
created within the state treasury.
(10) The state treasurer may receive money or other assets
from any source for deposit into the northern Michigan regional
tourism and sports fund. The state treasurer shall direct the
investment of the northern Michigan regional tourism and sports
fund. The state treasurer shall credit to the northern Michigan
regional tourism and sports fund interest and earnings from the
northern Michigan regional tourism and sports fund investments.
(11) Money in the northern Michigan regional tourism and
sports fund at the close of the fiscal year shall remain in the
northern Michigan regional tourism and sports fund and shall not
lapse to the general fund. However, money remaining in the fund on
September 30, 2028 shall lapse to the convention facility
development fund.
(12) The department of treasury shall expend money from the
northern Michigan regional tourism and sports fund, upon
appropriation, to the Great Lakes sports commission for the
development or improvement of facilities or for events promoting
tourism and recreation in northern Michigan. Money shall not be
distributed to the northern Michigan regional tourism and sports
fund that impairs obligations, bonds, or other evidences of
indebtedness issued under this act.
