Bill Text: MI HB5187 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Economic development; renaissance zones; maximization of the tool and die renaissance zone program; provide for. Amends sec. 8d of 1996 PA 376 (MCL 125.2688d).
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-12-12 - Printed Bill Filed 12/11/2013 [HB5187 Detail]
Download: Michigan-2013-HB5187-Introduced.html
HOUSE BILL No. 5187
December 11, 2013, Introduced by Reps. Switalski, Townsend and Yanez and referred to the Committee on Commerce.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending section 8d (MCL 125.2688d), as amended by 2010 PA 368.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8d. (1) The board of the Michigan strategic fund
described in section 4 of the Michigan strategic fund act, 1984 PA
270, MCL 125.2004, may designate not more than 35 tool and die
renaissance recovery zones within this state in 1 or more cities,
villages, or townships if that city, village, or township or
combination of cities, villages, or townships consents to the
creation of a recovery zone within their boundaries. A recovery
zone shall have a duration of renaissance zone status for a period
of not less than 5 years and not more than 15 years as determined
by the board of the Michigan strategic fund. If the Michigan
strategic fund determines that the duration of renaissance zone
status for a recovery zone is less than 15 years, then the Michigan
strategic fund, with the consent of the city, village, or township
or combination of cities, villages, or townships in which the
qualified tool and die business is located, may extend the duration
of renaissance zone status for the recovery zone for 1 or more
periods that when combined do not exceed 15 years. Not less than 1
of the recovery zones shall consist of 1 or more qualified tool and
die businesses that have a North American industrial classification
system (NAICS) of 332997.
(2) The board of the Michigan strategic fund may designate a
recovery zone within this state if the recovery zone consists of
not less than 4 and not more than 20 qualified tool and die
businesses at the time of designation. If the board of the Michigan
strategic fund designated 1 or more recovery zones that contain
less than 20 qualified tool and die businesses before December 19,
2005, the board of the Michigan strategic fund may add additional
qualified tool and die businesses to that recovery zone subject to
the limitations contained in this subsection. A recovery zone shall
consist of only qualified tool and die business property. The board
of the Michigan strategic fund may combine existing recovery zones
that are comprised solely of tool and die businesses that are
parties to the same qualified collaborative agreement. Where 2 or
more recovery zones have been combined, the board of the Michigan
strategic fund may continue to designate additional recovery zones,
provided that no more than 35 tool and die recovery zones exist at
1 time. The board of the Michigan strategic fund shall aggressively
work with cities, villages, and townships and with tool and die
businesses to maximize the number of tool and die recovery zones in
this state.
(3) The board of the Michigan strategic fund may revoke the
designation of all or a portion of a recovery zone with respect to
1 or more qualified tool and die businesses if those qualified tool
and die businesses fail or cease to participate in or comply with a
qualified collaborative agreement. A qualified tool and die
business may enter into another qualified collaborative agreement
once it is designated part of a recovery zone.
(4) One or more qualified tool and die businesses subject to a
qualified collaborative agreement may merge into another group of
qualified tool and die businesses subject to a different qualified
collaborative agreement upon application to and approval by the
Michigan strategic fund.
(5) A qualified tool and die business in a recovery zone may
have a different period of renaissance zone status than other
qualified tool and die businesses in the same recovery zone.
(6) The board of the Michigan strategic fund may modify an
existing recovery zone to add 1 or more qualified tool and die
businesses with the consent of all other qualified tool and die
businesses that are participating in the recovery zone.
(7) The board of the Michigan strategic fund may modify an
existing recovery zone to add additional property under the same
terms and conditions as the existing recovery zone if all of the
following are met:
(a) The additional real property is contiguous to existing
qualified tool and die business property and will become qualified
tool and die business property once it is brought into operation as
determined by the board of the Michigan strategic fund.
(b) The city, village, or township in which the qualified tool
and die business is located consents to the modification.
(8) Beginning on January 13, 2009, a recovery zone may include
a qualified tool and die business that has 75 or more full-time
employees if that qualified tool and die business has entered into
a written agreement with the board of the Michigan strategic fund
and the city, village, or township, or a combination of cities,
villages, or townships, in which the qualified tool and die
business is located.
(9) As used in this section:
(a) "Qualified collaborative agreement" means an agreement
that demonstrates synergistic opportunities, including, but not
limited to, all of the following:
(i) Sales and marketing efforts.
(ii) Development of standardized processes.
(iii) Development of tooling standards.
(iv) Standardized project management methods.
(v) Improved ability for specialized or small niche shops to
develop expertise and compete successfully on larger programs.
(b) "Qualified tool and die business" means a business entity
that meets all of the following:
(i) Has a North American industrial classification system
(NAICS) of 332997, 333511, 333512, 333513, 333514, or 333515; or
has a North American industrial classification system (NAICS) of
337215 and operates a facility within an existing renaissance zone,
which facility is adjacent to real property not located in a
renaissance zone and is located within 1/4 mile of a Michigan
technical education center.
(ii) Has entered into a qualified collaboration agreement as
approved by the Michigan strategic fund consisting of not fewer
than 4 or more than 20 other business entities at the time of
designation that have a North American industrial classification
system (NAICS) of 332997, 333511, 333512, 333513, 333514, or
333515.
(iii) Except as otherwise provided by the board of the Michigan
strategic fund, has fewer than 75 full-time employees.
(c) "Qualified tool and die business property" means 1 or more
of the following:
(i) Property owned by 1 or more qualified tool and die
businesses and used by those qualified tool and die businesses
primarily for tool and die business operations. Qualified tool and
die business property is used primarily for tool and die business
operations if the qualified tool and die businesses that own the
qualified tool and die business property generate 75% or more of
the qualified tool and die businesses' gross revenue from tool and
die operations that take place on the qualified tool and die
business property at the time of designation.
(ii) Property leased by 1 or more qualified tool and die
business for which the qualified tool and die business is liable
for ad valorem property taxes and which is used by those qualified
tool and die businesses primarily for tool and die business
operations. Qualified tool and die business property is used
primarily for tool and die business operations if the qualified
tool and die businesses that lease the qualified tool and die
business property generate 75% or more of the qualified tool and
die businesses' gross revenue from tool and die operations that
take place on the qualified tool and die business property at the
time of designation. The qualified tool and die business shall
furnish proof of its ad valorem property tax liability to the
department of treasury.
