Bill Text: MI SB1166 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Economic development; renaissance zones; Michigan strategic fund board to use 1 of the next Michigan renaissance zones for certain rural areas; require. Amends sec. 8h of 1996 PA 376 (MCL 125.2688h).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-06-05 - Referred To Committee On Economic Development [SB1166 Detail]
Download: Michigan-2011-SB1166-Introduced.html
SENATE BILL No. 1166
June 5, 2012, Introduced by Senator CASPERSON and referred to the Committee on Economic Development.
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. 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, 2010 PA 275, MCL
125.2951 to 125.2959, 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, 2010 PA 275, MCL 125.2951 to
125.2959, 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. The board
of the Michigan strategic fund shall designate at least 1 next
Michigan renaissance zone within the boundaries of a next Michigan
development district that is located or partially located in a city
that has a population of more than 11,500 but less than 12,900 and
located in a county with a population of more than 36,900 but less
than 38,000 according to the most recent decennial census. 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),
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). 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.
(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.
(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.
(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.
(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.
(10) The board of the Michigan strategic fund shall not
certify more than 25 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, 2010 PA 275, MCL 125.2951 to 125.2959.
