Bill Text: MI HB4091 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; obsolete property and rehabilitation; obsolete property rehabilitation act; modify eligibility requirements. Amends sec. 8 of 2000 PA 146 (MCL 125.2788).
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Introduced - Dead) 2009-04-01 - Discharge Committee Defeated [HB4091 Detail]
Download: Michigan-2009-HB4091-Engrossed.html
HB-4091, As Passed House, March 12, 2009
SUBSTITUTE FOR
HOUSE BILL NO. 4091
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending section 8 (MCL 125.2788), as amended by 2008 PA 504.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) If the taxable value of the property proposed to
be exempt pursuant to an application under consideration,
considered together with the aggregate taxable value of property
exempt under certificates previously granted and currently in force
under this act or under 1974 PA 198, MCL 207.551 to 207.572,
exceeds 5% of the taxable value of the qualified local governmental
unit, the legislative body of the qualified local governmental unit
shall make a separate finding and shall include a statement in its
resolution approving the application that exceeding that amount
shall not have the effect of substantially impeding the operation
of the qualified local governmental unit or impairing the financial
soundness of an affected taxing unit.
(2) The legislative body of the qualified local governmental
unit shall not approve an application for an obsolete property
exemption certificate unless the applicant complies with all of the
following requirements:
(a) Except as otherwise provided in subsection (3), the
commencement of the rehabilitation of the facility does not occur
before the establishment of the obsolete property rehabilitation
district.
(b) The application relates to a rehabilitation program that
when completed constitutes a rehabilitated facility within the
meaning of this act and that shall be situated within an obsolete
property rehabilitation district established in a qualified local
governmental unit eligible under this act to establish such a
district.
(c) Completion of the rehabilitated facility is calculated to,
and will at the time of issuance of the certificate have the
reasonable likelihood to, increase commercial activity, create
employment, retain employment, prevent a loss of employment,
revitalize urban areas, or increase the number of residents in the
community in which the facility is situated.
(d) The applicant states, in writing, that the rehabilitation
of the facility would not be undertaken without the applicant's
receipt of the exemption certificate.
(e) The applicant is not delinquent in the payment of any
taxes related to the facility.
(3) The legislative body of a qualified local governmental
unit may approve an application for an obsolete property exemption
certificate if the commencement of the rehabilitation of the
facility occurs before the establishment of the obsolete property
rehabilitation district and if 1 or more of the following are met:
(a) All of the following are met:
(i) The building permit for the rehabilitation of the facility
was obtained in October 2002.
(ii) The obsolete property rehabilitation district was created
in April 2002.
(iii) The rehabilitation of the facility included adding
additional stories to the facility.
(b) All of the following are met:
(i) Emergency or temporary repairs or improvements were made
before the establishment of the obsolete property rehabilitation
district.
(ii) The obsolete property rehabilitation district was created
in January 2006.
(iii) The facility is located in a city with a population of
more than 20,500 and less than 27,000 and is located in a county
with a population of more than 95,000 and less than 105,000.
(c) All of the following are met:
(i) Roof repairs or improvements were completed in March 2006
before the establishment of the obsolete property rehabilitation
district.
(ii) The obsolete property rehabilitation district was created
in April 2006.
(iii) The application was submitted to the qualified local
governmental unit in April 2006.
(iv) The facility is located in a city with a population of
more than 10,800 and less than 11,100 and is located in a county
with a population of more than 39,000 and less than 42,000.
(4) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (3)(a) and (b), the effective date of the
certificate shall be December 31, 2006.
(5) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (3)(c), the effective date of the
certificate shall be December 31, 2006.
(6) Beginning July 1, 2009, the legislative body of the local
governmental unit shall not approve an application for an obsolete
property exemption certificate unless the applicant states, in
writing, that the applicant 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.
(7) Beginning July 1, 2009, the legislative body of the local
governmental unit shall not approve an application for an obsolete
property exemption certificate unless the applicant states, in
writing, that the applicant will do all of the following:
(a) Make a good faith effort to employ, if qualified, Michigan
residents at the facility.
(b) Make a good faith effort to employ or contract with
Michigan residents and firms to construct, rehabilitate, develop,
or renovate the facility.
(c) Make a good faith effort to utilize Michigan-based
House Bill No. 4091 (H-1) as amended March 12, 2009
suppliers and vendors when purchasing goods and services.
(8) Beginning July 1, 2009, the written agreement described in
subsection (6) shall also contain a remedy provision that provides
for all of, but not limited to, the following:
(a) A requirement that the applicant's obsolete property
exemption certificate is revoked under this act if the applicant is
determined to be in violation of subsection (6), as determined by
the legislative body of the local governmental unit.
(b) A requirement that the applicant may be required to repay
some or all of the benefits received under this act if the
applicant is determined to be in violation of the provisions of
subsection (6), as determined by the legislative body of the local
governmental unit.
(9) Not later than February 1 each year, the [applicant
] shall report to the board of the
Michigan strategic fund on the activities for the immediately
preceding fiscal year. The report shall contain all of the
following:
(a) The number of Michigan residents employed in new jobs [by the
applicant] from
the renovation, restoration, or construction of a facility for
which an obsolete property exemption certificate was granted in the
immediately preceding year.
(b) The number of new jobs created [by the applicant] from the
renovation,
restoration, or construction of a facility for which an obsolete
property exemption certificate was granted in the immediately
preceding year.
(c) The details of the good faith efforts required of the
applicant described in subsection (7)(a), (b), and (c).
(10) 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 (6), (7), and (8).
