Bill Text: MI SB0580 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: Economic development; renaissance zones; requirements for certain renaissance zones and certain qualified eligible next Michigan businesses; modify. Amends secs. 6, 8a, 8d, 8h & 15 of 1996 PA 376 (MCL 125.2686 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2013-10-31 - Referred To Committee On Commerce [SB0580 Detail]

Download: Michigan-2013-SB0580-Engrossed.html

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SB-0580, As Passed Senate, October 31, 2013

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 580

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 8h (MCL 125.2688h), as added by 2010 PA 277.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 8h. (1) The board of the Michigan strategic fund

 

described in section 4 of the Michigan strategic fund act, 1984 PA

 

270, MCL 125.2004, upon the application of a next Michigan

 

development corporation, may designate next Michigan renaissance

 

zones for eligible next Michigan businesses within the boundaries

 

of a next Michigan development district by certifying that eligible

 

next Michigan business as a qualified eligible next Michigan

 

business. Except as otherwise provided in this section, each

 

qualified eligible next Michigan business shall be located in a

 

separate next Michigan renaissance zone. The number of next

 

Michigan renaissance zones to be designated for a next Michigan

 

development district that does not include an eligible urban entity

 

as defined in the next Michigan development act shall equal the

 

cumulative number of initial or subsequent local governmental unit

 

parties to the next Michigan development corporation interlocal

 

agreement, plus 1 additional next Michigan renaissance zone for

 

each county party to the interlocal agreement, but shall not exceed

 

12 for each next Michigan development district. The number of next

 

Michigan renaissance zones to be designated for a next Michigan

 

development district that includes an eligible urban entity as

 

defined in the next Michigan development act shall not exceed 12 as

 

determined by the president of the Michigan strategic fund. The

 

number shall not be reduced on account of a reduction in the number

 

of local government unit parties to the interlocal agreement from

 

time to time. The next Michigan development corporation shall make

 

recommendations to the board of the Michigan strategic fund as to

 

which areas shall be designated as next Michigan renaissance zones

 

for eligible next Michigan businesses under this act. The aggregate

 

territory of all next Michigan renaissance zones designated for a

 

next Michigan development corporation shall not exceed the lesser

 

of 200 acres times the number of next Michigan renaissance zones

 

designated for a next Michigan development corporation or 1,675

 

acres. A next Michigan renaissance zone shall have a duration of

 

renaissance zone status for a period of not less than 5 years and

 

not more than 10 years as determined by the board of the Michigan

 

strategic fund. Except as otherwise provided in this act, if the

 

board of the Michigan strategic fund determines that the duration

 

of renaissance zone status for a next Michigan renaissance zone is

 

less than 10 years, then the board of the Michigan strategic fund,

 

with the consent of the next Michigan development corporation and

 

with the consent of the city, village, or township in which the

 

next Michigan renaissance zone is located, may extend the duration

 

of renaissance zone status for the next Michigan renaissance zone

 

for 1 or more periods that when combined do not exceed 10 years.

 

     (2) The next Michigan development corporation shall make

 

recommendations to the board of the Michigan strategic fund to

 

certify an eligible next Michigan business as a qualified eligible

 

next Michigan business entitled to the exemptions, deductions, or

 

credits as provided in section 9. Upon the recommendation of a next

 

Michigan development corporation and subject to subsection (10),

 

(9), the board of the Michigan strategic fund may determine whether

 

an eligible next Michigan business should receive the benefits of a

 

renaissance zone and certify that eligible next Michigan business

 

as a qualified eligible next Michigan business under this act and

 

subject to a written agreement as provided in subsection (8). (7).

 

The board of the Michigan strategic fund shall establish a standard

 

process to evaluate applications for certification as a qualified

 

eligible next Michigan business and shall appoint a committee to

 

review the applications. The standard application process developed

 

by the board of the Michigan strategic fund shall be approved by a

 

resolution of the board of the Michigan strategic fund before an

 

eligible next Michigan business is certified as a qualified

 

eligible next Michigan business. The board of the Michigan

 

strategic fund shall certify or deny the application to certify an

 

eligible next Michigan business as a qualified eligible next

 

Michigan business within 49 days of receipt of the application that

 

is complete in all material respects as determined by the president

 

of the Michigan strategic fund. If the board of the Michigan

 

strategic fund fails to certify or deny the application for

 

certification within 49 days of receipt of the application that is

 

complete in all material respects as determined by the president of

 

the Michigan strategic fund, the application for certification is

 

considered approved. If the board of the Michigan strategic fund

 

denies the application for certification, the applicant may appeal

 

that denial to the board of the Michigan strategic fund for

 

reconsideration. The president of the Michigan strategic fund shall

 

notify the next Michigan development corporation that the Michigan

 

strategic fund has certified a qualified eligible next Michigan

 

business in a next Michigan development district. The next Michigan

 

development corporation shall develop an application process for

 

eligible next Michigan businesses, which process shall be approved

 

by the board of the Michigan strategic fund. A next Michigan

 

development corporation shall not use the incentives provided in

 

this act primarily to recruit an eligible next Michigan business to

 

relocate from a location in this state to another location in this

 

state. A next Michigan development corporation shall not recommend

 

and the board of the Michigan strategic fund shall not certify an

 

eligible next Michigan business as a qualified eligible next

 

Michigan business unless that eligible next Michigan business opens

 

a new location in this state, locates in this state, or is an

 

existing business located in this state that will materially expand

 

its business in this state as determined by the board of the

 

Michigan strategic fund. However, the board of the Michigan

 

strategic fund shall not certify an eligible next Michigan business

 

as a qualified eligible next Michigan business if the principal

 

economic effect of the expansion or location of the eligible next

 

Michigan business into a next Michigan development district is the

 

transfer of employment from 1 or more cities, villages, or

 

townships in this state to the next Michigan development district

 

and each order or resolution certifying an eligible next Michigan

 

business as a qualified eligible next Michigan business shall

 

contain an express finding, based upon competent and material

 

evidence in the record, of compliance with the requirements of this

 

subsection. Any transfer of employment from 1 or more cities,

 

villages, and townships in this state to a next Michigan

 

development district resulting from the expansion or location of an

 

eligible next Michigan business into a next Michigan development

 

district in which the aggregate number of transferred full-time

 

employees is less than 15% of the total number of full-time

 

employees proposed to be located in the next Michigan development

 

district by the eligible next Michigan business shall be

 

conclusively presumed to not be a principal economic effect of the

 

expansion or location. In the event that a transfer of employment

 

will occur resulting from the expansion or location of an eligible

 

next Michigan business into a next Michigan development district,

 

the board of the Michigan strategic fund shall provide written

 

notice of the order or resolution certifying the eligible next

 

Michigan business as a qualifying next Michigan business to the

 

chief executive officer of each county, city, village, and township

 

from which the transfer of employment will occur within 10 days of

 

the order or resolution certifying the qualified eligible next

 

Michigan business. The chief executive officer of each county,

 

city, village, and township notified under this subsection shall

 

have 30 days to file an appeal of the certification with the board

 

of the Michigan strategic fund. The board of the Michigan strategic

 

fund shall decide the appeal within 45 days of the receipt of the

 

appeal. The board of the Michigan strategic fund shall not certify

 

an eligible next Michigan business as a qualified eligible next

 

Michigan business if the business applicant has been convicted of a

 

felony and the board of the Michigan strategic fund has determined

 

that the conviction will have a material impact on the business

 

applicant's ability to fulfill its obligations under this act. As

 

used in this subsection, the business applicant includes the

 

business entity, affiliates, subsidiaries, officers, directors,

 

managerial employees, and any person who, directly or indirectly,

 

holds a pecuniary interest in that business entity of 20% or more.

 

     (3) Upon request of the next Michigan development corporation,

 

the board of the Michigan strategic fund may modify an existing

 

next Michigan renaissance zone to add additional property under the

 

same terms and conditions as the existing next Michigan renaissance

 

zone if all of the following are met:

 

     (a) The additional real property is located within the

 

boundaries of the next Michigan development district and will be

 

owned or operated by a qualified eligible next Michigan business

 

once it is brought into operation as determined by the board of the

 

Michigan strategic fund.

 

     (b) The next Michigan development corporation and the city,

 

village, or township in which the qualified eligible next Michigan

 

business is located consent to the modification.

 

     (c) The aggregate territory limitations provided in subsection

 

(1) will not be exceeded.

 

     (4) A qualified eligible next Michigan business in a next

 

Michigan renaissance zone shall be granted the benefits of

 

renaissance zone status for a period of up to 15 years.

 

     (5) The board of the Michigan strategic fund may revoke the

 

designation of all or a portion of a next Michigan renaissance zone

 

or the certification of a qualified eligible next Michigan business

 

if the board of the Michigan strategic fund determines 1 or more of

 

the following:

 

     (a) The qualified eligible next Michigan business proposed in

 

the application fails, or a preponderance of businesses proposed in

 

the application fail, to commence operation within 2 years from the

 

date of the certification as a qualified eligible next Michigan

 

business.

 

     (b) The qualified eligible next Michigan business proposed in

 

the application to commence operation within the next Michigan

 

renaissance zone ceases operation, provided that designation shall

 

not be revoked if the qualified eligible next Michigan business has

 

assigned its rights to a successor entity engaged in a qualified

 

eligible next Michigan business and that assignment has been

 

approved by the Michigan strategic fund.

 

     (c) The qualified eligible next Michigan business proposed in

 

the application to commence operation within the next Michigan

 

renaissance zone fails to commence construction or renovation

 

within 1 year from the date of the certification as a qualified

 

eligible next Michigan business.

 

     (d) The qualified eligible next Michigan business fails to

 

meet jobs and investment criteria set forth in the application and

 

approved as a condition by the president or the board of the

 

Michigan strategic fund.

 

     (e) The local governmental unit in which the qualified

 

eligible next Michigan business is located withdraws from the next

 

Michigan development corporation interlocal agreement, provided

 

that the tax incentives previously granted to the qualified

 

eligible next Michigan business shall remain in full force and

 

effect for the stated term of the tax incentives so long as the

 

qualified eligible next Michigan business satisfies all of the

 

conditions upon which the tax incentives were granted.

 

     (6) If the designation of all or a portion of a next Michigan

 

renaissance zone or the certification of a qualified eligible next

 

Michigan business is revoked, a qualified eligible next Michigan

 

business affected may appeal that revocation to the board of the

 

Michigan strategic fund. The designation may subsequently be

 

restored by the board of the Michigan strategic fund to the same

 

site and in respect of a qualified eligible next Michigan business,

 

but the duration of the restored designation shall not exceed the

 

term of the original designation.

 

     (6) (7) Upon request of the next Michigan development

 

corporation, the board of the Michigan strategic fund may extend

 

the duration of renaissance zone status for 1 or more portions of a

 

next Michigan renaissance zone if the extension will increase

 

capital investment or job creation, and the next Michigan

 

development corporation and the city, village, or township in which

 

that portion of the next Michigan renaissance zone is located

 

consents to extend the duration of renaissance zone status. The

 

board of the Michigan strategic fund may extend renaissance zone

 

status for 1 or more portions of the next Michigan renaissance zone

 

under this subsection for a period of time not to exceed 5

 

additional years as determined by the board of the Michigan

 

strategic fund.

 

     (7) (8) Before an eligible next Michigan business is certified

 

as a qualified eligible next Michigan business, the board of the

 

Michigan strategic fund shall enter into a written agreement with

 

the next Michigan development corporation and a qualified eligible

 

next Michigan business in respect of the terms and conditions of

 

granting and retaining renaissance zone status, certification as a

 

qualified eligible next Michigan business, and any other related

 

matters. The written agreement also shall contain a remedy

 

provision that includes, but is not limited to, all of the

 

following:

 

     (a) A requirement that all or a portion of the exemptions,

 

deductions, or credits described in section 9 shall be revoked

 

under the procedures set forth in this act if the qualified

 

eligible next Michigan business is determined to be in violation of

 

the provisions of this act or the written agreement or relocates

 

outside the next Michigan development district for a period of

 

years after renaissance zone status expires as set forth in the

 

written agreement.

 

     (b) A requirement that the qualified eligible next Michigan

 

business may be required to repay all or a portion of the

 

exemptions, deductions, or credits described in section 9 if the

 

qualified eligible next Michigan business is determined to be in

 

violation of the provisions of this act or the written agreement or

 

relocates outside the next Michigan development district for a

 

period of years after renaissance zone status expires as set forth

 

in the written agreement.

 

     (8) (9) Except as otherwise provided in this subsection, the

 

commencement of renaissance zone status under this section shall

 

take effect on January 1 in the year following designation.

 

However, for purposes of the taxes exempted under section 9(2), the

 

commencement of renaissance zone status under this section shall

 

take effect on December 31 in the year immediately preceding the

 

year in which the commencement under this section takes effect.

 

     (9) (10) The board of the Michigan strategic fund shall not

 

certify more than 25 35 eligible businesses as qualified eligible

 

next Michigan businesses under this act. The board of the Michigan

 

strategic fund shall not certify more than 10 eligible businesses

 

as qualified eligible next Michigan businesses in a next Michigan

 

development district as defined in the next Michigan development

 

act.