Bill Text: MI SB0580 | 2013-2014 | 97th Legislature | Introduced
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-Introduced.html
SENATE BILL No. 580
October 2, 2013, 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 sections 6, 8a, 8d, 8h, and 15 (MCL 125.2686,
125.2688a, 125.2688d, 125.2688h, and 125.2695), sections 6 and 8a
as amended and section 8h as added by 2010 PA 277 and section 8d as
amended by 2010 PA 368.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) The board shall review all recommendations
submitted by the review board and determine which applications meet
the criteria contained in section 7.
(2) The board shall do all of the following:
(a) Designate renaissance zones.
(b) Subject to subsection (3), approve or reject the duration
of renaissance zone status.
(c) Subject to subsection (3), approve or reject the
geographic boundaries and the total area of the renaissance zone as
submitted in the application.
(3) The board shall not alter the geographic boundaries of the
renaissance zone or the duration of renaissance zone status
described in the application unless the qualified local
governmental unit or units and the local governmental unit or units
in which the renaissance zone is to be located consent by
resolution to the alteration.
(4) The board shall not designate a renaissance zone under
section 8 before November 1, 1996 or after December 31, 1996.
(5) Except as otherwise provided in this subsection, the
designation of a renaissance zone under this act shall take effect
on January 1 in the year following designation. However, for
purposes of the taxes exempted under section 9(2), the designation
of a renaissance zone under this act shall take effect on December
31 in the year of designation. For designations made pursuant to
section 8a(2), the board of the Michigan strategic fund may choose
a beginning date, provided that the date must be January 1 of a
year and must not be more than 5 years after the date of
designation. The board of the Michigan strategic fund may provide
that the January 1 beginning date be determined under a written
agreement between the board of the Michigan strategic fund and the
qualified local governmental unit in which the renaissance zone is
to be located. However, for purposes of the taxes exempted under
section 9(2), the designation of a renaissance zone under section
8a(2) shall take effect on December 31 in the year immediately
preceding the year in which the designation under section 8a(2)
takes effect.
(6) The board shall not designate a renaissance zone under
section 8a after December 31, 2002.
(7) Through December 31, 2002, a qualified local governmental
unit in which a renaissance zone was designated under section 8 or
8a may modify the boundaries of that renaissance zone to include
contiguous parcels of property as determined by the qualified local
governmental unit and approval by the review board. The additional
contiguous parcels of property included in a renaissance zone under
this subsection do not constitute an additional distinct geographic
area under section 4(1)(d). If the boundaries of the renaissance
zone are modified as provided in this subsection, the additional
contiguous parcels of property shall become part of the original
renaissance zone on the same terms and conditions as the original
designation of that renaissance zone.
(8) Notwithstanding any other provisions of this act, before
July 1, 2004, a qualified local governmental unit in which a
renaissance zone was designated under section 8a(1) as a
renaissance zone located in a rural area may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than .5 acres in size and that the qualified local
governmental unit previously sought to have included in the zone by
submitting an application in February 2002 that was not acted upon
by the review board. The additional contiguous parcel of property
included in a renaissance zone under this subsection does not
constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(9) A business that is located and conducts business activity
within
a renaissance zone designated under this act , except as
designated
under section 8a(2) before December 1, 2010, shall not
make a payment in lieu of taxes to any taxing jurisdiction within
the qualified local governmental unit in which the renaissance zone
is located.
(10) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of less than 50 contiguous acres but more than 20
contiguous acres was designated under section 8 or 8a as a
renaissance zone in a city located in a county with a population of
more than 160,000 and less than 170,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(11) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 500 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 64,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(12) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 137 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 63,000 may modify the boundaries
of that renaissance zone to include a parcel of property that is
separated from the existing renaissance zone by a roadway as
determined by the qualified local governmental unit. The parcel of
property shall only include property that is less than 67 acres in
size. The additional contiguous parcel of property included in a
renaissance zone under this subsection does not constitute an
additional distinct geographic area under section 4(1)(d). If the
boundaries of the renaissance zone are modified as provided in this
subsection, the additional contiguous parcel of property shall
become part of the original renaissance zone on the same terms and
conditions as the rest of the property in that renaissance zone.
Sec. 8a. (1) Except as provided in subsections (2), (3), and
(4), the board shall not designate more than 9 additional
renaissance zones within this state under this section. Not more
than 6 of the renaissance zones shall be located in urban areas and
not more than 5 of the renaissance zones shall be located in rural
areas. For purposes of determining whether a renaissance zone is
located in an urban area or rural area under this section, if any
part of a renaissance zone is located within an urban area, the
entire renaissance zone shall be considered to be located in an
urban area.
(2) 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 27 additional renaissance
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 renaissance
zone within their boundaries. The board of the Michigan strategic
fund may designate not more than 1 of the 27 additional renaissance
zones described in this subsection as an alternative energy zone.
An alternative energy zone shall promote and increase the research,
development, testing, and manufacturing of alternative energy
technology, alternative energy systems, and alternative energy
vehicles, as those terms are defined in the Michigan next energy
authority act, 2002 PA 593, MCL 207.821 to 207.827. An alternative
energy zone shall have a duration of renaissance zone status for a
period not to exceed 20 years as determined by the board of the
Michigan strategic fund. The board of the Michigan strategic fund
may designate not more than 8 of the additional 27 renaissance
zones described in this subsection as a redevelopment renaissance
zone. A redevelopment renaissance zone shall promote the
redevelopment of existing industrial facilities or the development
of property for industrial purposes. The board of the Michigan
strategic fund may designate not more than 1 of the 27 additional
renaissance zones described in this subsection as a pharmaceutical
recovery renaissance zone. A pharmaceutical recovery renaissance
zone shall promote the development or redevelopment of existing
underutilized facilities currently occupied or formerly occupied by
a pharmaceutical company. Before designating a renaissance zone
under this subsection, the board of the Michigan strategic fund may
enter into a development agreement with the city, township, or
village in which the renaissance zone will be located and the owner
or developer of the facility or property located in the renaissance
zone.
The development agreement for a redevelopment renaissance
zone
described only in subsection (6)(b)(vi) or (vii) may provide for
the
payment of 1 or more of the taxes described in section 9. Not
fewer than 3 of the 10 additional renaissance zones created under
this subsection on or after December 1, 2010 shall be located in
rural areas. Until the maximum number of qualified eligible next
Michigan
businesses are certified under section 8h(10), 8h(9), the
board shall not designate an additional renaissance zone under this
subsection if that additional renaissance zone would include a
business that is an eligible next Michigan business that is
eligible to be certified as a qualified eligible next Michigan
business under this act.
(3) In addition to the not more than 9 additional renaissance
zones described in subsection (1), the board may designate
additional renaissance zones within this state in 1 or more
qualified local governmental units if that qualified local
governmental unit or units contain a military installation that was
operated by the United States department of defense and was closed
in 1977 or after 1990.
(4) Land owned by a county or the qualified local governmental
unit or units adjacent to a zone as described in subsection (3) may
be included in this zone.
(5) Notwithstanding any other provision of this act, property
located in the alternative energy zone that is classified as
commercial real property under section 34c of the general property
tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the
concurrence of the assessor of the local tax collecting unit,
determines is not used to directly promote and increase the
research, development, testing, and manufacturing of alternative
energy technology, alternative energy systems, and alternative
energy vehicles as those terms are defined in the Michigan next
energy authority act, 2002 PA 593, MCL 207.821 to 207.827, is not
eligible for any exemption, deduction, or credit under section 9.
(6) Each renaissance zone designated under this section shall
be 1 continuous distinct geographic area.
(7) (6)
As used in this section:
(a) "Pharmaceutical recovery renaissance zone" means a
renaissance zone that includes a geographic area that is located in
1 or both of the following:
(i) In a city with a population of more than 70,000 and less
than 85,000 and in a county with a population of more than 235,000
and less than 250,000.
(ii) In a city with a population of more than 42,000 and less
than 55,000 and in a county with a population of more than 235,000
and less than 250,000.
(b) "Redevelopment renaissance zone" means a renaissance zone
that meets 1 of the following:
(i) All of the following:
(A) Is located in a city with a population of more than 7,500
and less than 8,500 and is located in a county with a population of
more than 60,000 and less than 70,000.
(B) Contains only all or a portion of an industrial site of
200 or more acres.
(ii) All of the following:
(A) Is located in a city with a population of more than 13,000
and less than 14,000 and is located in a county with a population
of more than 1,000,000 and less than 1,300,000.
(B) Contains only all or a portion of an industrial site of
300 or more contiguous acres.
(iii) All of the following:
(A) Is located in a township with a population of more than
5,500 and is located in a county with a population of less than
24,000.
(B) Contains only all or a portion of an industrial site of
more than 850 acres and has railroad access.
(iv) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site of
more than 475 acres.
(v) All of the following:
(A) Is located in a city with a population of more than 21,000
and less than 26,000 and is located in a county with a population
of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
less than 45 acres in size.
(vi) All of the following:
(A) Is located in a city with a population of more than
190,000 and less than 250,000 and is located in a county with a
population of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
more than 14 acres and less than 16 acres in size.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(vii) All of the following:
(A) Is located in a city with a population of more than 35,500
and less than 36,800 and is located in a county with a population
of more than 157,000 and less than 162,000.
(B) Contains only all or a portion of an industrial site
comprised of 1 or more adjacent parcels totaling 5 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(viii) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site
composed of 1 or more adjacent parcels totaling 100 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2008.
Sec.
8d. (1) The Through June
30, 2014, 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
Through June 30, 2014, 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. For determining the number
of qualified tool and die businesses to designate a recovery zone,
each parcel of qualified tool and die business property that is not
contiguous to other qualified tool and die business property shall
be considered a separate qualified tool and die business. 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, through June 30, 2014, 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 Through June 30,
2014, 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
Through June 30, 2014, 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.
(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 Through June 30, 2014,
1 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 Through June 30, 2014,
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 Through June 30, 2014,
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.
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.
Sec.
15. The department of Michigan jobs commission Michigan
strategic fund shall annually report to the legislature on the
economic effects of this act in each renaissance zone. The report
shall include, but is not limited to, all of the following for each
renaissance zone:
(a) Number of new jobs created.
(b) Percentage change in aggregate taxable value and state
equalized value.
(c) Average wage of new jobs created.
(d)
Percentage change of adjusted gross income of residents.
