Bill Text: MI HB4084 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; brownfield redevelopment authority; eligibility requirements; modify. Amends sec. 15 of 1996 PA 381 (MCL 125.2665).
Spectrum: Partisan Bill (Democrat 18-0)
Status: (Introduced - Dead) 2009-04-01 - Discharge Committee Defeated [HB4084 Detail]
Download: Michigan-2009-HB4084-Engrossed.html
HB-4084, As Passed House, March 12, 2009
HOUSE BILL No. 4084
January 22, 2009, Introduced by Reps. Slavens, Robert Jones, Polidori, Liss, Haugh, Terry Brown, Lisa Brown, Segal, Valentine, Geiss, Roberts, Haase, Barnett, Kennedy, Miller, Bauer, Angerer and Ebli and referred to the Committee on Commerce.
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
by amending section 15 (MCL 125.2665), as amended by 2007 PA 201.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 15. (1) An authority shall not do any of the following:
(a) For eligible activities not described in section 13(15),
use taxes levied for school operating purposes captured from
eligible property unless the eligible activities to be conducted on
the eligible property are eligible activities under part 201 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.20101 to 324.20142, consistent with a work plan approved by
the department after July 24, 1996 and before January 1, 2013.
However, except as provided in subdivision (e), an authority may
use taxes levied for school operating purposes captured from
eligible property without the approval of a work plan by the
department for the reasonable costs of 1 or more of the following:
(i) Site investigation activities required to conduct a
baseline environmental assessment and to evaluate compliance with
section 20107a of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20107a.
(ii) Completing a baseline environmental assessment report.
(iii) Preparing a plan for compliance with section 20107a of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.20107a.
(b) For eligible activities not described in section 13(15),
other than activities that are exempt from the work plan approval
process under subsection (1)(a), use funds from a local site
remediation revolving fund that are derived from taxes levied for
school operating purposes unless the eligible activities to be
conducted are eligible activities under part 201 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.20101 to 324.20142, consistent with a work plan that has been
approved by the department after July 24, 1996.
(c) Use funds from a local site remediation revolving fund
created pursuant to section 8 that are derived from taxes levied
for school operating purposes for the eligible activities described
in section 13(15) unless the eligible activities to be conducted
are consistent with a work plan approved by the Michigan economic
growth authority.
(d) Use taxes captured from eligible property to pay for
eligible activities conducted before approval of the brownfield
plan except for costs described in section 13(16).
(e) Use taxes levied for school operating purposes captured
from eligible property for response activities that benefit a party
liable under section 20126 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.20126, except
that a municipality that established the authority may use taxes
levied for school operating purposes captured from eligible
property for response activities associated with a landfill.
(f) Use taxes captured from eligible property to pay for
administrative and operating activities of the authority or the
municipality on behalf of the authority except for costs described
in section 13(16) and for the reasonable costs for preparing a work
plan for the eligible property, including the actual cost of the
review of the work plan under this section.
(2) To seek department approval of a work plan under
subsection (1)(a) or (b), the authority shall submit all of the
following for each eligible property:
(a) A copy of the brownfield plan.
(b) Current ownership information for each eligible property
and a summary of available information on proposed future
ownership, including the amount of any delinquent taxes, interest,
and penalties that may be due.
(c) A summary of available information on the historical and
current use of each eligible property, including a brief summary of
site conditions and what is known about environmental contamination
as that term is defined in section 20101 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.20101.
(d) Existing and proposed future zoning for each eligible
property.
(e) A brief summary of the proposed redevelopment and future
use for each eligible property.
(f) A separate work plan, or part of a work plan, for each
eligible activity to be undertaken.
(3) Upon receipt of a request for approval of a work plan
under subsection (2) or a portion of a work plan that pertains to
only baseline environmental assessment activities or due care
activities, or both, the department shall review the work plan
according to subsection (4) and provide 1 of the following written
responses to the requesting authority within 60 days:
(a) An unconditional approval.
(b) A conditional approval that delineates specific necessary
modifications to the work plan to meet the criteria of subsection
(4), including, but not limited to, individual activities to be
added or deleted from the work plan and revision of costs.
(c) If the work plan lacks sufficient information for the
department to respond under subdivision (a), (b), or (d) for any
specific activity, a letter stating with specificity the necessary
additions or changes to the work plan to be submitted before that
activity will be considered by the department. The department shall
respond under subdivision (a), (b), or (d) according to this
section for the other activities in the work plan.
(d) A denial if the property is not an eligible property under
this act, if the work plan contemplates the use of taxes levied for
school operating purposes prohibited by subsection (1)(e), or for
any specific activity if the activity is prohibited by subsection
(1)(d). The department may also deny any activity in a work plan
that does not meet the conditions in subsection (4) only if the
department cannot respond under subdivision (b) or (c). The
department shall accompany the denial with a letter that states
with specificity the reason for the denial. The department shall
respond under subdivision (a), (b), or (c) according to this
section for any activities in the work plan that are not denied
under this subdivision. If the department denies all or a portion
of a work plan under this subdivision, the authority may
subsequently resubmit the work plan.
(4) The department may approve a work plan if the following
conditions have been met:
(a) Whether some or all of the activities constitute due care
activities or additional response activities other than activities
that are exempt from the work plan approval process under
subsection (1)(a).
(b) The due care activities and response activities, other
than the activities that are exempt from the work plan approval
process under subsection (1)(a), are protective of the public
health, safety, and welfare and the environment. The department may
approve additional response activities that are more protective of
the public health, safety, and welfare and the environment than
required by section 20107a of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.20107a, if those
activities provide public health or environmental benefit. In
review of a work plan that includes activities that are more
protective of the public health, safety, and welfare and the
environment, the department's considerations may include, but are
not limited to, all of the following:
(i) Proposed new land use and reliability of restrictions to
prevent exposure to contamination.
(ii) Cost of implementation activities minimally necessary to
achieve due care compliance, the incremental cost of all additional
response activities relative to the cost of all response
activities, and the total cost of all response activities.
(iii) Long-term obligations associated with leaving
contamination in place and the value of reducing or eliminating
these obligations.
(c) The estimated costs for the activities as a whole are
reasonable for the stated purpose. Except as provided in
subdivision (b), the department shall make the determination in
this subdivision only after the department determines that the
conditions in subdivisions (a) and (b) have been met.
(5) If the department fails to provide a written response
under subsection (3) within 60 days after receipt of a request for
approval of a work plan, the authority may proceed with the
activities as outlined in the work plan as submitted for approval.
Except as provided in subsection (6), activities conducted pursuant
to a work plan that was submitted to the department for approval
but for which the department failed to provide a written response
under subsection (3) shall be considered approved for the purposes
of subsection (1). Within 45 days after receiving additional
information requested from the authority under subsection (3)(c),
the department shall review the additional information according to
subsection (4) and provide 1 of the responses described in
subsection (3) to the requesting authority for the specific
activity. If the department does not provide a response to the
requesting authority within 45 days after receiving the additional
information requested under subsection (3)(c), the activity is
approved under subsection (1).
(6) The department may issue a written response to a work plan
more than 60 days but less than 6 months after receipt of a request
for approval. If the department issues a written response under
this subsection, the authority is not required to conduct
individual activities that are in addition to the individual
activities included in the work plan as it was submitted for
approval and failure to conduct these additional activities shall
not affect the authority's ability to capture taxes under
subsection (1) for the eligible activities described in the work
plan initially submitted under subsection (5). In addition, at the
option of the authority, these additional individual activities
shall be considered part of the work plan of the authority and
approved for purposes of subsection (1). However, any response by
the department under this subsection that identifies additional
individual activities that must be carried out to satisfy part 201
of the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101 to 324.20142, must be satisfactorily completed
for the activities to be considered acceptable for the purposes of
compliance with part 201 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101 to 324.20142.
(7) If the department issues a written response under
subsection (6) to a work plan and if the department's written
response modifies an individual activity proposed by the work plan
of the authority in a manner that reduces or eliminates a proposed
response activity, the authority must complete those individual
activities in accordance with the department's response in order
for that portion of the work plan to be considered approved for
purposes of subsection (1), unless 1 or more of the following
conditions apply:
(a) Obligations for the individual activity have been issued
by the authority, or by a municipality on behalf of the authority,
to fund the individual activity prior to issuance of the
department's response.
(b) The individual activity has commenced or payment for the
work has been irrevocably obligated prior to issuance of the
department's response.
(8) It shall be in the sole discretion of an authority to
propose to undertake additional response activities at an eligible
property under a brownfield plan. The department shall not require
a work plan to include additional response activities.
(9) The department shall review the portion of a work plan
that includes additional response activities in accordance with
subsection (4).
(10) The department's approval or denial of a work plan
submitted under this section constitutes a final decision in regard
to the use of taxes levied for school operating purposes but does
not restrict an authority's use of tax increment revenues
attributable to local taxes to pay for eligible activities under a
brownfield plan. If a person is aggrieved by the final decision,
the person may appeal under section 631 of the revised judicature
act of 1961, 1961 PA 236, MCL 600.631.
(11) The authority shall reimburse the department for the
actual cost incurred by the department or a contractor of the
department to review a work plan under subsection (1)(a) or (b)
under this section. Funds paid to the department under this
subsection shall be deposited in the cost recovery subaccount of
the cleanup and redevelopment fund created under section 20108 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20108.
(12) The department shall submit a report each year on or
before March 1 to each member of the legislature that contains all
of the following:
(a) A compilation and summary of all the information submitted
under subsection (2).
(b) The amount of tax increment revenues approved by the
department in the immediately preceding calendar year, including
taxes levied for school operating purposes, to conduct eligible
activities.
(13) To seek Michigan economic growth authority approval of a
work plan under subsection (1)(c) or section 13(15), the authority
shall submit all of the following for each eligible property:
(a) A copy of the brownfield plan.
(b) Current ownership information for each eligible property
and a summary of available information on proposed future
ownership, including the amount of any delinquent taxes, interest,
and penalties that may be due.
(c) A summary of available information on the historical and
current use of each eligible property.
(d) Existing and proposed future zoning for each eligible
property.
(e) A brief summary of the proposed redevelopment and future
use for each eligible property.
(f) A separate work plan, or part of a work plan, for each
eligible activity described in section 13(15) to be undertaken.
(g) A copy of the development agreement or reimbursement
agreement required under section 13(15), which shall include, but
is not limited to, a detailed summary of any and all ownership
interests, monetary considerations, fees, revenue and cost sharing,
charges, or other financial arrangements or other consideration
between the parties.
(14) Upon receipt of a request for approval of a work plan,
the Michigan economic growth authority shall provide 1 of the
following written responses to the requesting authority within 65
days:
(a) An unconditional approval that includes an enumeration of
eligible activities and a maximum allowable capture amount.
(b) A conditional approval that delineates specific necessary
modifications to the work plan, including, but not limited to,
individual activities to be added or deleted from the work plan and
revision of costs.
(c) A denial and a letter stating with specificity the reason
for the denial. If a work plan is denied under this subsection, the
work plan may be subsequently resubmitted.
(15) In its review of a work plan under subsection (1)(c) or
section 13(15), the Michigan economic growth authority shall
consider the following criteria to the extent reasonably applicable
to the type of activities proposed as part of that work plan when
approving or denying a work plan:
(a) Whether the individual activities included in the work
plan are sufficient to complete the eligible activity.
(b) Whether each individual activity included in the work plan
is required to complete the eligible activity.
(c) Whether the cost for each individual activity is
reasonable.
(d) The overall benefit to the public.
(e) The extent of reuse of vacant buildings and redevelopment
of blighted property.
(f) Creation of jobs.
(g) Whether the eligible property is in an area of high
unemployment.
(h) The level and extent of contamination alleviated by or in
connection with the eligible activities.
(i) The level of private sector contribution.
(j) The cost gap that exists between the site and a similar
greenfield site as determined by the Michigan economic growth
authority.
(k) If the developer or projected occupant of the new
development is moving from another location in this state, whether
the move will create a brownfield.
(l) Whether the project of the developer, landowner, or
corporate entity that is included in the work plan is financially
and economically sound.
(m) Other state and local incentives available to the
developer, landowner, or corporate entity for the project of the
developer, landowner, or corporate entity that is included in the
work plan.
(n) Any other criteria that the Michigan economic growth
authority considers appropriate for the determination of
eligibility or for approval of the work plan.
(16) If the Michigan economic growth authority fails to
provide a written response under subsection (14) within 65 days
after receipt of a request for approval of a work plan, the
eligible activities shall be considered approved and the authority
may proceed with the eligible activities described in section
13(15) as outlined in the work plan as submitted for approval.
(17) The Michigan economic growth authority's approval of a
work plan under section 13(15) is final.
(18) The authority shall reimburse the Michigan economic
growth authority for the actual cost incurred by the Michigan
economic growth authority or a contractor of the Michigan economic
growth authority to review a work plan under this section.
(19) The Michigan economic growth authority shall submit a
report each year on or before March 1 to each member of the
legislature that contains all of the following:
(a) A compilation and summary of all the information submitted
under subsection (13).
(b) The amount of tax increment revenues approved by the
Michigan economic growth authority in the immediately preceding
calendar year, including taxes levied for school operating
purposes, to conduct eligible activities.
(20) All taxes levied for school operating purposes that are
not used for eligible activities consistent with a work plan
approved by the department or the Michigan economic growth
authority or for the payment of interest under section 13 and that
are not deposited in a local site remediation revolving fund shall
be distributed proportionately between the local school district
and the school aid fund.
(21) An authority shall not use taxes levied for school
operating purposes captured from eligible property for eligible
activities for a qualified facility or for eligible activities for
property located in an economic opportunity zone.
(22) The department's approval of a work plan under subsection
(3)(a) or (b) does not imply an entitlement to reimbursement of the
costs of the eligible activities if the work plan is not
implemented as approved.
(23) The applicant and the department can, by mutual
agreement, extend the time period for any review described in this
section. An agreement described in this subsection shall be
documented in writing.
(24) Beginning July 1, 2009, the authority shall not use tax
increment revenues to pay or reimburse a business entity for
eligible activities on eligible properties unless the business
entity states, in writing, that the business entity will not
knowingly hire or contract with any business entity that knowingly
hires an individual who is not authorized under federal law to work
in the United States.
(25) Beginning July 1, 2009, the authority shall not use tax
increment revenues to pay or reimburse a business entity for
eligible activities on eligible properties unless the business
entity states, in writing, that the business entity will do all of
the following:
(a) Hire only residents of this state to perform eligible
activities on eligible properties under this act unless the
authority determines that the eligible activities cannot be
performed by using only residents of this state for 1 or more of
the following:
(i) To the extent necessary to comply with federal law or
regulation concerning the use of federal funds.
(ii) To the extent that key management personnel or individuals
with special skills, who are not residents of this state, are
needed.
(b) Contract with businesses that agree to hire only residents
of this state to perform eligible activities on eligible properties
under this act unless the authority determines that the eligible
activities cannot be performed by using only residents of this
state for 1 or more of the following:
(i) To the extent necessary to comply with federal law or
regulation concerning the use of federal funds.
(ii) To the extent that key management personnel or individuals
with special skills, who are not residents of this state, are
needed.
(26) Beginning July 1, 2009, the written agreement described
in subsections (24) and (25) shall also contain a remedy provision
that provides for all of, but not limited to, a requirement that
the business entity may be required to repay some or all of the
payments or reimbursements received under this act if the eligible
business is determined to be in violation of the provisions of
subsection (24) or (25), as determined by the authority.
(27) Each authority shall report to the board of the Michigan
strategic fund and on October 1 on the activities of the authority.
The report shall include, but is not limited to, all of the
following:
(a) The number of Michigan residents employed in new jobs in
the immediately preceding year in which subsections (24) and (25)
apply.
(b) The total number of new jobs created in all jobs in the
immediately preceding year in which subsections (24) and (25)
apply.
(c) The specific reasons for each determination of exemption
from the provisions of subsection (25)(a) or (b) made by the
authority and the number of jobs related to each determination.
(28) The attorney general or appropriate agency of this state
shall be responsible for any enforcement necessary to ensure
compliance after the applicant has signed the agreement under the
provisions described in subsections (24), (25), and (26).
