Bill Text: MI SB0908 | 2015-2016 | 98th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Economic development; brownfield redevelopment authority; definitions and program changes; modify. Amends secs. 2, 3, 4, 7, 8, 8a, 11, 13, 14, 15, 15a & 16 of 1996 PA 381 (MCL 125.2652 et seq.); adds secs. 13a & 13b & repeals secs. 21 & 22 of 1996 PA 381 (MCL 125.2671 & 125. 2672).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-12-30 - Assigned Pa 0471'16 12/30/16 Addenda [SB0908 Detail]

Download: Michigan-2015-SB0908-Engrossed.html

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SB-0908, As Passed House, December 14, 2016

SB-0908, As Passed Senate, October 18, 2016

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 908

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1996 PA 381, entitled

 

"Brownfield redevelopment financing act,"

 

by amending sections 2, 3, 4, 7, 8, 8a, 11, 13, 14, 15, 15a, and 16

 

(MCL 125.2652, 125.2653, 125.2654, 125.2657, 125.2658, 125.2658a,

 

125.2661, 125.2663, 125.2664, 125.2665, 125.2665a, and 125.2666),

 

section 2 as amended by 2013 PA 67, section 3 as amended by 2000 PA

 

145, sections 4, 8, 13, 15, and 16 as amended and section 8a as

 

added by 2012 PA 502, section 7 as amended by 2002 PA 413, and

 

section 15a as amended by 2014 PA 20, and by adding sections 13a

 

and 13b; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Additional response activities" means response activities

 

identified as part of a brownfield plan that are in addition to

 

baseline environmental assessment activities and due care

 

activities for an eligible property.

 

     (a) (b) "Authority" means a brownfield redevelopment authority

 

created under this act.

 

     (b) (c) "Baseline environmental assessment" means that term as

 

defined in section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.part 201 or 213.

 

     (d) "Baseline environmental assessment activities" means those

 

response activities identified as part of a brownfield plan that

 

are necessary to complete a baseline environmental assessment for

 

an eligible property in the brownfield plan.

 

     (c) (e) "Blighted" means property that meets any of the

 

following criteria as determined by the governing body:

 

     (i) Has been declared a public nuisance in accordance with a

 

local housing, building, plumbing, fire, or other related code or

 

ordinance.

 

     (ii) Is an attractive nuisance to children because of physical

 

condition, use, or occupancy.

 

     (iii) Is a fire hazard or is otherwise dangerous to the safety

 

of persons or property.

 

     (iv) Has had the utilities, plumbing, heating, or sewerage

 

permanently disconnected, destroyed, removed, or rendered

 

ineffective so that the property is unfit for its intended use.

 

     (v) Is tax reverted property owned by a qualified local

 

governmental unit, by a county, or by this state. The sale, lease,

 

or transfer of tax reverted property by a qualified local

 

governmental unit, county, or this state after the property's

inclusion in a brownfield plan shall not result in the loss to the

 

property of the status as blighted property for purposes of this

 

act.

 

     (vi) Is property owned by or under the control of a land bank

 

fast track authority, whether or not located within a qualified

 

local governmental unit. Property included within a brownfield plan

 

prior to the date it meets the requirements of this subdivision to

 

be eligible property shall be considered to become eligible

 

property as of the date the property is determined to have been or

 

becomes qualified as, or is combined with, other eligible property.

 

The sale, lease, or transfer of the property by a land bank fast

 

track authority after the property's inclusion in a brownfield plan

 

shall not result in the loss to the property of the status as

 

blighted property for purposes of this act.

 

     (vii) Has substantial buried subsurface demolition debris

 

buried on site present so that the property is unfit for its

 

intended use.

 

     (d) (f) "Board" means the governing body of an authority.

 

     (e) (g) "Brownfield plan" means a plan that meets the

 

requirements of section 13 and section 13b and is adopted under

 

section 14.

 

     (f) (h) "Captured taxable value" means the amount in 1 year by

 

which the current taxable value of an eligible property subject to

 

a brownfield plan, including the taxable value or assessed value,

 

as appropriate, of the property for which specific taxes are paid

 

in lieu of property taxes, exceeds the initial taxable value of

 

that eligible property. The state tax commission shall prescribe

the method for calculating captured taxable value.

 

     (g) (i) "Chief executive officer" means the mayor of a city,

 

the village manager of a village, the township supervisor of a

 

township, or the county executive of a county or, if the county

 

does not have an elected county executive, the chairperson of the

 

county board of commissioners.

 

     (h) (j) "Combined brownfield plan" means a brownfield plan

 

that also includes the information necessary to submit the plan to

 

the department or Michigan strategic fund under section

 

15(25).15(20).

 

     (i) "Corrective action" means that term as defined in part 111

 

or part 213.

 

     (j) (k) "Department" means the department of environmental

 

quality.

 

     (k) "Department specific activities" means baseline

 

environmental assessments, due care activities, response

 

activities, and other environmentally related actions that are

 

eligible activities and are identified as a part of a brownfield

 

plan that are in addition to the minimum due care activities

 

required by part 201, including, but not limited to:

 

     (i) Response activities that are more protective of the public

 

health, safety, and welfare and the environment than required by

 

section 20107a, 20114, or 21304c of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20107a,

 

324.20114, and 324.21304c.

 

     (ii) Removal and closure of underground storage tanks pursuant

 

to part 211 or 213.

     (iii) Disposal of solid waste, as defined in part 115 of the

 

natural resources and environmental protection act, 1994 PA 451,

 

MCL 324.11501 to 324.11554, from the eligible property, provided it

 

was not generated or accumulated by the authority or the developer.

 

     (iv) Dust control related to construction activities.

 

     (v) Removal and disposal of lake or river sediments exceeding

 

part 201 criteria from, at, or related to an economic development

 

project where the upland property is either a facility or would

 

become a facility as a result of the deposition of dredged spoils.

 

     (vi) Industrial cleaning.

 

     (vii) Sheeting and shoring necessary for the removal of

 

materials exceeding part 201 criteria at projects requiring a

 

permit pursuant to part 301, 303, or 325 of the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.30101 to

 

324.30113, MCL 324.30301 to 324.30328, or MCL 324.32501 to

 

324.32515a.

 

     (viii) Lead, mold, or asbestos abatement when lead, mold, or

 

asbestos pose an imminent and significant threat to human health.

 

     (l) "Due care activities" means those response activities

 

identified as part of a brownfield plan that are necessary to allow

 

the owner or operator of an eligible property in the plan to comply

 

with the requirements of section 20107a or 21304c of the natural

 

resources and environmental protection act, 1994 PA 451, MCL

 

324.20107a and 324.21304c.

 

     (m) "Economic opportunity zone" means 1 or more parcels of

 

property that meet all of the following:

 

     (i) That together are 40 or more acres in size.

     (ii) That contain or contained a manufacturing facility

 

operation that consists or consisted of 500,000 or more square

 

feet.

 

     (iii) That are located in a municipality that has a population

 

of 30,000 or less and that is contiguous to a qualified local

 

governmental unit.

 

     (n) "Eligible activities" or "eligible activity" means 1 or

 

more of the following:

 

     (i) Baseline environmental assessment activities.For all

 

eligible properties, eligible activities include all of the

 

following:

 

     (ii) Due care activities.

 

     (iii) Additional response activities.

 

     (iv) For eligible activities on eligible property that was

 

used or is currently used for commercial, industrial, or

 

residential purposes that is in a qualified local governmental

 

unit, that is owned or under the control of a land bank fast track

 

authority, or that is located in an economic opportunity zone, and

 

is a facility, historic resource, functionally obsolete, or

 

blighted, and except for purposes of section 38d of former 1975 PA

 

228, the following additional activities:

 

     (A) Infrastructure improvements that directly benefit eligible

 

property.

 

     (A) Department specific activities.

 

     (B) Relocation of public buildings or operations for economic

 

development purposes.

 

     (C) Reasonable costs of environmental insurance.

     (D) Reasonable costs incurred to develop and prepare

 

brownfield plans, combined brownfield plans, or work plans for the

 

eligible property, including legal and consulting fees that are not

 

in the ordinary course of acquiring and developing real estate.

 

     (E) Reasonable costs of brownfield plan and work plan

 

implementation, including, but not limited to, tracking and

 

reporting of data and plan compliance and the reasonable costs

 

incurred to estimate and determine actual costs incurred, whether

 

those costs are incurred by a municipality, authority, or private

 

developer.

 

     (F) (B) Demolition of structures that is not a response

 

activity. under section 20101 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20101.

 

     (G) (C) Lead, or asbestos, or mold abatement.

 

     (H) The repayment of principal of and interest on any

 

obligation issued by an authority to pay the costs of eligible

 

activities attributable to an eligible property.

 

     (ii) For eligible properties located in a qualified local unit

 

of government, or an economic opportunity zone, or that is a former

 

mill, eligible activities include:

 

     (A) The activities described in subparagraph (i).

 

     (B) Infrastructure improvements that directly benefit eligible

 

property.

 

     (C) (D) Site preparation that is not a response activity.

 

under section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.

 

     (iii) For eligible properties that are owned by or under the

control of a land bank fast track authority, or a qualified local

 

unit of government or authority, eligible activities include:

 

     (A) The eligible activities described in subparagraphs (i) and

 

(ii).

 

     (B) (E) Assistance to a land bank fast track authority in

 

clearing or quieting title to, or selling or otherwise conveying,

 

property owned by or under the control of a land bank fast track

 

authority or the acquisition of property by the land bank fast

 

track authority if the acquisition of the property is for economic

 

development purposes.

 

     (C) (F) Assistance to a qualified local governmental unit or

 

authority in clearing or quieting title to, or selling or otherwise

 

conveying, property owned by or under the control of a qualified

 

local governmental unit or authority or the acquisition of property

 

by a qualified local governmental unit or authority if the

 

acquisition of the property is for economic development purposes.

 

     (v) Relocation of public buildings or operations for economic

 

development purposes.

 

     (vi) For eligible activities on eligible property that is a

 

qualified facility that is not located in a qualified local

 

governmental unit and that is a facility, functionally obsolete, or

 

blighted, the following additional activities:

 

     (A) Infrastructure improvements that directly benefit eligible

 

property.

 

     (B) Demolition of structures that is not response activity

 

under section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.

     (C) Lead or asbestos abatement.

 

     (D) Site preparation that is not response activity under

 

section 20101 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.20101.

 

     (vii) For eligible activities on eligible property that is not

 

located in a qualified local governmental unit and that is a

 

facility, historic resource, functionally obsolete, or blighted,

 

the following additional activities:

 

     (A) Demolition of structures that is not response activity

 

under section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.

 

     (B) Lead or asbestos abatement.

 

     (viii) Reasonable costs of developing and preparing brownfield

 

plans, combined brownfield plans, and work plans.

 

     (ix) For property that is not located in a qualified local

 

governmental unit and that is a facility, functionally obsolete, or

 

blighted, that is a former mill that has not been used for

 

industrial purposes for the immediately preceding 2 years, that is

 

located along a river that is a federal superfund site listed under

 

the comprehensive environmental response, compensation, and

 

liability act of 1980, 42 USC 9601 to 9675, and that is located in

 

a city with a population of less than 10,000 persons, the following

 

additional activities:

 

     (A) Infrastructure improvements that directly benefit the

 

property.

 

     (B) Demolition of structures that is not response activity

 

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

 

     (C) Lead or asbestos abatement.

 

     (D) Site preparation that is not response activity under

 

section 20101 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.20101.

 

     (x) For eligible activities on eligible property that is

 

located north of the 45th parallel, that is a facility,

 

functionally obsolete, or blighted, and the owner or operator of

 

which makes new capital investment of $250,000,000.00 or more in

 

this state, the following additional activities:

 

     (A) Demolition of structures that is not response activity

 

under section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.

 

     (B) Lead or asbestos abatement.

 

     (xi) Reasonable costs of environmental insurance.

 

     (o) Except as otherwise provided in this subdivision,

 

"eligible "Eligible property" means, except as otherwise provided

 

in this subdivision, property for which eligible activities are

 

identified under a brownfield plan that was used or is currently

 

used for commercial, industrial, public, or residential purposes,

 

including personal property located on the property, to the extent

 

included in the brownfield plan, and that is 1 or more of the

 

following:

 

     (i) Is in a qualified local governmental unit and is a

 

facility or a site or property as those terms are defined in part

 

213, historic resource, functionally obsolete, or blighted and

 

includes parcels that are adjacent or contiguous to that property

if the development of the adjacent and contiguous parcels is

 

estimated to increase the captured taxable value of that property.

 

     (ii) Is not in a qualified local governmental unit and is a

 

facility, historic resource, functionally obsolete, blighted, or a

 

site or property as those terms are defined in part 213, and

 

includes parcels that are adjacent or contiguous to that property

 

if the development of the adjacent and contiguous parcels is

 

estimated to increase the captured taxable value of that property.

 

     (iii) Is tax reverted property owned by or under the control

 

of a land bank fast track authority.

 

     (iv) Is not in a qualified local governmental unit, is a

 

qualified facility, and is a facility, functionally obsolete, or

 

blighted, if the eligible activities on the property are limited to

 

the eligible activities identified in subdivision (n)(vi).a

 

transit-oriented development or transit-oriented property.

 

     (v) Is not located in a qualified local governmental unit and

 

is a facility, historic resource, functionally obsolete, or

 

blighted, if the eligible activities on the property are limited to

 

the eligible activities identified in subdivision (n)(vii).contains

 

a targeted redevelopment area.

 

     (vi) Is not in a qualified local governmental unit and is a

 

facility, functionally obsolete, or blighted, if the eligible

 

activities on the property are limited to the eligible activities

 

identified in subdivision (n)(ix).

 

     (vi) (vii) Is located north of the 45th parallel, is a

 

facility, functionally obsolete, or blighted, and the owner or

 

operator makes new capital investment of $250,000,000.00 or more in

this state. Eligible property does not include qualified

 

agricultural property exempt under section 7ee of the general

 

property tax act, 1893 PA 206, MCL 211.7ee, from the tax levied by

 

a local school district for school operating purposes to the extent

 

provided under section 1211 of the revised school code, 1976 PA

 

451, MCL 380.1211.

 

     (viii) Is a transit-oriented development.

 

     (ix) Is a transit-oriented facility.

 

     (x) Is located in a qualified local governmental unit and

 

contains a targeted redevelopment area, as designated by resolution

 

of the governing body and approved by the Michigan strategic fund,

 

of not less than 40 and not more than 500 contiguous parcels. A

 

qualified local governmental unit is limited to designating no more

 

than 2 targeted redevelopment areas for the purposes of this

 

section in a calendar year. The Michigan strategic fund may approve

 

no more than 5 redevelopment areas for the purposes of this section

 

in a calendar year.

 

     (p) "Environmental insurance" means liability insurance for

 

environmental contamination and cleanup that is not otherwise

 

required by state or federal law.

 

     (q) "Facility" means that term as defined in section 20101 of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20101.part 201.

 

     (r) "Fiscal year" means the fiscal year of the authority.

 

     (s) "Former mill" means a former mill that has not been used

 

for industrial purposes for the immediately preceding 2 years, that

 

is not located in a qualified local governmental unit, that is a

facility or is a site or a property as those terms are defined in

 

part 213, functionally obsolete, or blighted, and that is located

 

within 15 miles of a river that is a federal superfund site listed

 

under the comprehensive environmental response, compensation and

 

liability act of 1980, 42 USC 9601 to 9675, and that is located in

 

a municipality with a population of less than 10,000.

 

     (t) (s) "Functionally obsolete" means that the property is

 

unable to be used to adequately perform the function for which it

 

was intended due to a substantial loss in value resulting from

 

factors such as overcapacity, changes in technology, deficiencies

 

or superadequacies in design, or other similar factors that affect

 

the property itself or the property's relationship with other

 

surrounding property.

 

     (u) (t) "Governing body" means the elected body having

 

legislative powers of a municipality creating an authority under

 

this act.

 

     (v) (u) "Historic resource" means that term as defined in

 

section 90a of the Michigan strategic fund act, 1984 PA 270, MCL

 

125.2090a.

 

     (w) "Industrial cleaning" means cleaning or removal of

 

contaminants from within a structure necessary to achieve the

 

intended use of the property.

 

     (x) (v) "Infrastructure improvements" means a street, road,

 

sidewalk, parking facility, pedestrian mall, alley, bridge, sewer,

 

sewage treatment plant, property designed to reduce, eliminate, or

 

prevent the spread of identified soil or groundwater contamination,

 

drainage system, waterway, waterline, water storage facility, rail

line, utility line or pipeline, transit-oriented development,

 

transit-oriented facility, property, or other similar or related

 

structure or improvement, together with necessary easements for the

 

structure or improvement, owned or used by a public agency or

 

functionally connected to similar or supporting property owned or

 

used by a public agency, or designed and dedicated to use by, for

 

the benefit of, or for the protection of the health, welfare, or

 

safety of the public generally, whether or not used by a single

 

business entity, provided that any road, street, or bridge shall be

 

continuously open to public access and that other property shall be

 

located in public easements or rights-of-way and sized to

 

accommodate reasonably foreseeable development of eligible property

 

in adjoining areas. Infrastructure improvements also include 1 or

 

more of the following whether publicly or privately owned or

 

operated or located on public or private property:

 

     (i) Underground parking.

 

     (ii) Multilevel parking structures.

 

     (iii) Urban storm water management systems.

 

     (y) (w) "Initial taxable value" means the taxable value of an

 

eligible property identified in and subject to a brownfield plan at

 

the time the resolution adding that eligible property in the

 

brownfield plan is adopted, as shown either by the most recent

 

assessment roll for which equalization has been completed at the

 

time the resolution is adopted or, if provided by the brownfield

 

plan, by the next assessment roll for which equalization will be

 

completed following the date the resolution adding that eligible

 

property in the brownfield plan is adopted. Property exempt from

taxation at the time the initial taxable value is determined shall

 

be included with the initial taxable value of zero. Property for

 

which a specific tax is paid in lieu of property tax shall not be

 

considered exempt from taxation. The state tax commission shall

 

prescribe the method for calculating the initial taxable value of

 

property for which a specific tax was paid in lieu of property tax.

 

The initial assessed value may be modified by lowering the initial

 

assessed value once during the term of the brownfield plan through

 

an amendment as provided in section 14 after the tax increment

 

financing plan fails to generate captured assessed value for 3

 

consecutive years due to declines in assessed value.

 

     (z) (x) "Land bank fast track authority" means an authority

 

created under the land bank fast track act, 2003 PA 258, MCL

 

124.751 to 124.774.

 

     (aa) (y) "Local taxes" means all taxes levied other than taxes

 

levied for school operating purposes.

 

     (bb) (z) "Michigan strategic fund" means the Michigan

 

strategic fund created under the Michigan strategic fund act, 1984

 

PA 270, MCL 125.2001 to 125.2094.

 

     (cc) (aa) "Municipality" means all of the following:

 

     (i) A city.

 

     (ii) A village.

 

     (iii) A township in those areas of the township that are

 

outside of a village.

 

     (iv) A township in those areas of the township that are in a

 

village upon the concurrence by resolution of the village in which

 

the zone would be located.

     (v) A county.

 

     (dd) (bb) "Owned by or under the control of" means that a land

 

bank fast track authority or a qualified local unit of government

 

has 1 or more of the following:

 

     (i) An ownership interest in the property.

 

     (ii) A tax lien on the property.

 

     (iii) A tax deed to the property.

 

     (iv) A contract with this state or a political subdivision of

 

this state to enforce a lien on the property.

 

     (v) A right to collect delinquent taxes, penalties, or

 

interest on the property.

 

     (vi) The ability to exercise its authority over the property.

 

     (cc) "Qualified facility" means a landfill facility area of

 

140 or more contiguous acres that is located in a city and that

 

contains a landfill, a material recycling facility, and an asphalt

 

plant that are no longer in operation.

 

     (ee) "Part 111", "part 201", "part 211", or "part 213" means

 

that part as described as follows:

 

     (i) Part 111 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.11101 to 324.11153.

 

     (ii) Part 201 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101 to 324.20142.

 

     (iii) Part 211 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.21101 to 324.21113.

 

     (iv) Part 213 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.21301a to 324.21334.

 

     (ff) (dd) "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

 

146, MCL 125.2781 to 125.2797.

 

     (gg) (ee) "Qualified taxpayer" means that term as defined in

 

sections 38d and 38g of former 1975 PA 228, or section 437 of the

 

Michigan business tax act, 2007 PA 36, MCL 208.1437, or a recipient

 

of a community revitalization incentive as described in section 90a

 

of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090a.

 

     (hh) "Release" means that term as defined in part 201 or part

 

213.

 

     (ii) (ff) "Response activity" means either of the following:

 

     (i) Response activity as that term is defined in section 20101

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20101.part 201.

 

     (ii) Corrective action. as that term is defined in section

 

21302 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.21302.

 

     (jj) (gg) "Specific taxes" means a tax levied under 1974 PA

 

198, MCL 207.551 to 207.572; the commercial redevelopment act, 1978

 

PA 255, MCL 207.651 to 207.668; the enterprise zone act, 1985 PA

 

224, MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182;

 

the technology park development act, 1984 PA 385, MCL 207.701 to

 

207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL

 

125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA

 

147, MCL 207.771 to 207.786; the commercial rehabilitation act,

 

2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax

 

levied under the tax reverted clean title act, 2003 PA 260, MCL

 

211.1021 to 211.1025a, that is not required to be distributed to a

land bank fast track authority.

 

     (kk) (hh) "State brownfield redevelopment fund" means the

 

state brownfield redevelopment fund created in section 8a.

 

     (ll) "Targeted redevelopment area" means not fewer than 40 and

 

not more than 500 contiguous parcels of real property located in a

 

qualified local governmental unit and designated as a targeted

 

redevelopment area by resolution of the governing body and approved

 

by the Michigan strategic fund. A qualified local governmental unit

 

is limited to designating no more than 2 targeted redevelopment

 

areas for the purposes of this section in a calendar year. The

 

Michigan strategic fund may approve no more than 5 targeted

 

redevelopment areas for the purposes of this section in a calendar

 

year.

 

     (mm) (ii) "Tax increment revenues" means the amount of ad

 

valorem property taxes and specific taxes attributable to the

 

application of the levy of all taxing jurisdictions upon the

 

captured taxable value of each parcel of eligible property subject

 

to a brownfield plan and personal property located on that

 

property, regardless of whether those taxes began to be levied

 

after the brownfield plan was adopted. Tax increment revenues do

 

not include any of the following:

 

     (i) Ad valorem property taxes specifically levied for the

 

payment of principal of and interest on either obligations approved

 

by the electors or obligations pledging the unlimited taxing power

 

of the local governmental unit, and specific taxes attributable to

 

those ad valorem property taxes.

 

     (ii) For tax increment revenues attributable to eligible

property also exclude the amount of ad valorem property taxes or

 

specific taxes captured by a downtown development authority under

 

1975 PA 197, MCL 125.1651 to 125.1681, tax increment finance

 

authority under the tax increment finance authority act, 1980 PA

 

450, MCL 125.1801 to 125.1830, corridor improvement authority,

 

under the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899, or local development finance authority under

 

the local development financing act, 1986 PA 281, MCL 125.2151 to

 

125.2174, if those taxes were captured by these other authorities

 

on the date that eligible property became subject to a brownfield

 

plan under this act.

 

     (iii) Ad valorem property taxes levied under 1 or more of the

 

following or specific taxes attributable to those ad valorem

 

property taxes:

 

     (A) The zoological authorities act, 2008 PA 49, MCL 123.1161

 

to 123.1183.

 

     (B) The art institute authorities act, 2010 PA 296, MCL

 

123.1201 to 123.1229.

 

     (nn) (jj) "Taxable value" means the value determined under

 

section 27a of the general property tax act, 1893 PA 206, MCL

 

211.27a.

 

     (oo) (kk) "Taxes levied for school operating purposes" means

 

all of the following:

 

     (i) The taxes levied by a local school district for operating

 

purposes.

 

     (ii) The taxes levied under the state education tax act, 1993

 

PA 331, MCL 211.901 to 211.906.

     (iii) That portion of specific taxes attributable to taxes

 

described under subparagraphs (i) and (ii).

 

     (pp) (ll) "Transit-oriented development" means infrastructure

 

improvements that are located within 1/2 mile of a transit station

 

or transit-oriented facility property that promotes transit

 

ridership or passenger rail use as determined by the board and

 

approved by the municipality in which it is located.

 

     (qq) (mm) "Transit-oriented facility" property" means a

 

facility property that houses a transit station in a manner that

 

promotes transit ridership or passenger rail use.

 

     (rr) (nn) "Work plan" means a plan that describes each

 

individual activity to be conducted to complete eligible activities

 

and the associated costs of each individual activity.

 

     (ss) (oo) "Zone" means, for an authority established before

 

June 6, 2000, a brownfield redevelopment zone designated under this

 

act.

 

     Sec. 3. (1) A municipality may establish 1 or more

 

authorities. Except as provided in subsection (4), an authority

 

with zones established before the effective date of the amendatory

 

act that added subsection (2) June 6, 2000 shall exercise its

 

powers within its designated zones. Except as provided in

 

subsection (4), an authority established on or after the effective

 

date of the amendatory act that added subsection (2) June 6, 2000

 

shall exercise its powers over any eligible property located in the

 

municipality.

 

     (2) An authority with zones established before the effective

 

date of the amendatory act that added this subsection June 6, 2000

may alter or amend the boundaries of those zones if the authority

 

holds a public hearing on the alteration or amendment using the

 

procedures under section 4(2), (3), and (4).

 

     (3) The authority shall be a public body corporate that may

 

sue and be sued in a court of competent jurisdiction. The authority

 

possesses all the powers necessary to carry out the purpose of its

 

incorporation. The enumeration of a power in this act is not a

 

limitation upon the general powers of the authority. The powers

 

granted in this act to an authority may be exercised whether or not

 

bonds are issued by the authority.

 

     (4) An authority established by a county shall exercise its

 

powers with respect to eligible property within a city, village, or

 

township within the county only if that city, village, or township

 

has concurred with the provisions of a brownfield plan that apply

 

to that eligible property within the city, village, or township.

 

     (5) A city, village, or township including a city, village, or

 

township that is a qualified local governmental unit may enter into

 

a written agreement with the county in which that city, village, or

 

township is located to exercise the powers granted to that specific

 

city, village, or township under this act.

 

     Sec. 4. (1) A governing body may declare by resolution adopted

 

by a majority of its members elected and serving its intention to

 

create and provide for the operation of an authority.

 

     (2) In the resolution of intent, the governing body shall set

 

a date for holding a public hearing on the adoption of a proposed

 

resolution creating the authority. The notice of the public hearing

 

shall state the date, time, and place of the hearing. At that

hearing, a citizen, taxpayer, official from a taxing jurisdiction

 

whose millage may be subject to capture under a brownfield plan, or

 

property owner of the municipality has the right to be heard in

 

regard to the establishment of the authority.

 

     (3) Not more than 30 days after the public hearing, if the

 

governing body intends to proceed with the establishment of the

 

authority, the governing body shall adopt, by majority vote of its

 

members elected and serving, a resolution establishing the

 

authority. The adoption of the resolution is subject to all

 

applicable statutory or charter provisions with respect to the

 

approval or disapproval by the chief executive or other officer of

 

the municipality and the adoption of a resolution over his or her

 

veto. This resolution shall be filed with the secretary of state

 

promptly after its adoption.

 

     (4) The proceedings establishing an authority shall be

 

presumptively valid unless contested in a court of competent

 

jurisdiction within 60 days after the filing of the resolution with

 

the secretary of state.

 

     (5) The exercise by an authority of the powers conferred by

 

this act shall be considered to be an essential governmental

 

function and benefit to, and a legitimate public purpose of, the

 

state, the authority, and the municipality or units.

 

     (6) If the board implements or modifies a brownfield plan that

 

contains a qualified facility, the governing body shall mail notice

 

of that implementation or modification to each taxing jurisdiction

 

that levies ad valorem property taxes in the municipality. Not more

 

than 60 days after receipt of that notice, the governing body of a

taxing jurisdiction levying ad valorem property taxes that would

 

otherwise be subject to capture may exempt its taxes from capture

 

by adopting a resolution to that effect and filing a copy with the

 

clerk of the municipality in which the qualified facility is

 

located. The resolution takes effect when filed with that clerk and

 

remains effective until a copy of a resolution rescinding that

 

resolution is filed with that clerk.

 

     Sec. 7. (1) An authority may do 1 or more of the following:

 

     (a) Adopt, amend, and repeal bylaws for the regulation of its

 

affairs and the conduct of its business.

 

     (b) Incur and expend funds to pay or reimburse a public or

 

private person for costs of eligible activities attributable to an

 

eligible property.

 

     (c) As approved by the municipality, authority, incur costs

 

and expend funds from the local site remediation brownfield

 

revolving fund created under section 8 for purposes authorized in

 

that section.

 

     (d) Make and enter into contracts necessary or incidental to

 

the exercise of its powers and the performance of its duties,

 

including, but not limited to, lease purchase agreements, land

 

contracts, installment sales agreements, and loan agreements.

 

     (e) On terms and conditions and in a manner and for

 

consideration the authority considers proper or for no monetary

 

consideration, own, mortgage, convey, or otherwise dispose of, or

 

lease as lessor or lessee, land and other property, real or

 

personal, or rights or interests in the property, that the

 

authority determines are reasonably necessary to achieve the

purposes of this act, and grant or acquire licenses, easements, and

 

options with respect to the property.

 

     (f) Acquire, maintain, repair, or operate all devices

 

necessary to ensure continued eligible activities on eligible

 

property.

 

     (g) Accept grants and donations of property, labor, or other

 

things of value from a public or private source.

 

     (h) Incur costs in connection with the performance of its

 

authorized functions, including, but not limited to, administrative

 

costs and architect, engineer, legal, or accounting fees.

 

     (i) Study, develop, and prepare the reports or plans the

 

authority considers necessary to assist it in the exercise of its

 

powers under this act and to monitor and evaluate the progress

 

under this act.

 

     (j) Procure insurance against loss in connection with the

 

authority's property, assets, or activities.

 

     (k) Invest the money of the authority at the authority's

 

discretion in obligations determined proper by the authority, and

 

name and use depositories for its money.

 

     (l) Make loans, participate in the making of loans, undertake

 

commitments to make loans and mortgages, buy and sell loans and

 

mortgages at public or private sale, rewrite loans and mortgages,

 

discharge loans and mortgages, foreclose on a mortgage, commence an

 

action to protect or enforce a right conferred upon the authority

 

by a law, mortgage, loan, contract, or other agreement, bid for and

 

purchase property that was the subject of the mortgage at a

 

foreclosure or other sale, acquire and take possession of the

property and in that event compute, administer, pay the principal

 

and interest on obligations incurred in connection with that

 

property, and dispose of and otherwise deal with the property, in a

 

manner necessary or desirable to protect the interests of the

 

authority.

 

     (m) Borrow money and issue its bonds and notes under the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821, in anticipation of collection of tax increment revenues.

 

     (n) Do all other things necessary or convenient to achieve the

 

objectives and purposes of the authority, this act, or other laws

 

that relate to the purposes and responsibilities of the authority.

 

     (2) The authority shall determine the captured taxable value

 

of each parcel of eligible property. The captured taxable value of

 

a parcel shall not be less than zero.

 

     (3) A municipality may transfer the funds of the municipality

 

to an authority or to another person on behalf of the authority in

 

anticipation of repayment by the authority.

 

     Sec. 8. (1) An authority may establish a local site

 

remediation brownfield revolving fund. A local site remediation

 

brownfield revolving fund shall consist of money available under

 

section 13(5) and may also consist of money funds deposited from

 

the following sources:

 

     (a) Funds appropriated or otherwise made available from public

 

or private sources.

 

     (b) Local tax and school operating tax increment revenue

 

captured in excess of the amount authorized for eligible expenses

 

under section 13(4) only when all of the following conditions are

met:

 

     (i) The excess capture occurs during the time of capture for

 

the purpose of paying the costs permitted under section 13(4), or

 

for not more than 5 years after the time that capture is required

 

for the purpose of paying the costs permitted under section 13(4),

 

or both.

 

     (ii) The excess local tax excess capture shall not exceed the

 

total of the cost of eligible activities approved in the brownfield

 

plan.

 

     (iii) The excess capture of taxes for school operating

 

purposes shall not exceed the total of the cost of eligible

 

department specific activities approved in the applicable

 

brownfield plan, combined brownfield plan, or work plan.

 

     (iv) Excess tax increment revenues from taxes levied for

 

school operating purposes for eligible activities authorized under

 

section 13b(4) by the Michigan strategic fund shall not be captured

 

for deposit in the local brownfield revolving fund.

 

     (2) The capture of school operating tax increment revenue

 

described in subsection (1)(b) is subject to the 50% capture

 

specified in section 13b(14).

 

     (3) The tax increment revenues from eligible property for

 

deposit in the local brownfield revolving fund may include tax

 

increment revenues attributable to taxes levied for school

 

operating purposes in an amount not greater than the tax increment

 

revenues levied for school operating purposes captured from the

 

eligible property pursuant to section 13(4).

 

     (4) (2) The local site remediation brownfield revolving fund

may be used only to pay the costs of eligible activities on

 

eligible property that is located within the municipality.

 

     (5) (3) An authority or a municipality on behalf of an

 

authority may incur an obligation for the purpose of funding a

 

local site remediation brownfield revolving fund.

 

     Sec. 8a. (1) The state brownfield redevelopment fund is

 

created as a revolving fund within the department of treasury to be

 

administered as provided in this section. The state treasurer shall

 

direct the investment of the state brownfield redevelopment fund.

 

Money in the state brownfield redevelopment fund at the close of

 

the fiscal year shall remain in the state brownfield redevelopment

 

fund and shall not lapse to the general fund.

 

     (2) The state treasurer shall credit to the fund money from

 

the following sources:

 

     (a) All amounts deposited into the state brownfield

 

redevelopment fund under section 13(21).13b(14).

 

     (b) The proceeds from repayment of a loan, including interest

 

on those repayments, under subsection (5)(f).(3)(c)(vi).

 

     (c) Interest on funds deposited into the state brownfield

 

redevelopment fund.

 

     (d) Money obtained from any other source authorized by law.

 

     (3) The state brownfield redevelopment fund may be used only

 

for the following purposes:

 

     (a) To Up to 15% of the amounts deposited annually into the

 

state brownfield redevelopment fund may be used to pay

 

administrative costs of all of the following:

 

     (i) The Michigan strategic fund to implement this act.

     (ii) The department to implement this act.

 

     (iii) The department to implement part 196 of the natural

 

resources and environmental protection act, 1994 PA 451, MCL

 

324.19601 to 324.19616.

 

     (b) To fund a grant and loan program for the costs of eligible

 

activities described in section 13(15) on eligible property as

 

provided in subsection (5).

 

     (b) (c) To make deposits into the clean Michigan initiative

 

bond fund under section 19606(2)(d) of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.19606, for use

 

in providing grants and loans under part 196 section

 

19608(1)(a)(iv) of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.19601 to 324.19616.324.19608.

 

     (4) Not more than 15% of the amounts deposited annually into

 

the state brownfield redevelopment fund may be used for purposes of

 

subsection (3)(a).

 

     (c) (5) The state brownfield redevelopment fund may be used to

 

To fund a grant and loan program created and operated by the

 

Michigan strategic fund for the costs of eligible activities

 

described in section 13(15) 13b(4) on eligible property under this

 

subsection. properties. The grant and loan program shall provide

 

for all of the following:

 

     (i) (a) The Michigan strategic fund shall create and operate a

 

grant and loan program to provide grants and loans to fund eligible

 

activities described in section 13(15) 13b(4) on eligible property.

 

The Michigan strategic fund shall develop and use a detailed

 

application, approval, and compliance process adopted by resolution

of the board of the Michigan strategic fund. This process shall be

 

published and available on the Michigan strategic fund website.

 

Program standards, guidelines, templates, or any other forms to

 

implement the grant and loan program shall be approved by the board

 

of the Michigan strategic fund. The Michigan strategic fund may

 

delegate its approval authority under this subsection to a

 

designee.

 

     (ii) (b) A person may apply to the Michigan strategic fund for

 

approval of a grant or loan to fund eligible activities described

 

in section 13(15) 13b(4) on eligible property.

 

     (iii) (c) The Michigan strategic fund shall approve or deny an

 

application not more than 90 60 days after receipt of an

 

administratively complete application. If the application is

 

neither approved nor denied within 90 60 days, it shall be

 

considered by the board of the Michigan strategic fund, or its

 

designee if delegated, for action at, or by, the next regularly

 

scheduled board meeting. The Michigan strategic fund may delegate

 

the approval or denial of an application to the chairperson of the

 

Michigan strategic fund or other designees determined by the board.

 

     (iv) (d) When an application is approved under this

 

subsection, the Michigan strategic fund shall enter into a written

 

agreement with the applicant. The written agreement shall provide

 

all the conditions imposed on the applicant and the terms of the

 

grant or loan. The written agreement shall also provide for

 

penalties if the applicant fails to comply with the provisions of

 

the written agreement.

 

     (v) (e) After the Michigan strategic fund and the applicant

have entered into a written agreement under subdivision (d),

 

subparagraph (iv), the Michigan strategic fund shall distribute the

 

proceeds to the applicant according to the terms of the written

 

agreement.

 

     (vi) (f) Any proceeds from repayment of a loan, including

 

interest on those repayments, under this subsection shall be paid

 

into the state brownfield redevelopment fund or to the fund from

 

which the loan was generated, as defined in subsection (3)(b) and

 

(c).

 

     Sec. 11. The activities of the authority shall be financed

 

from 1 or more of the following sources:

 

     (a) Contributions, contractual payments, or appropriations to

 

the authority for the performance of its functions or to pay the

 

costs of a brownfield plan of the authority.

 

     (b) Revenues from a property, building, or facility owned,

 

leased, licensed, or operated by the authority or under its

 

control, subject to the limitations imposed upon the authority by

 

trusts or other agreements.

 

     (c) Subject to the limitations imposed under sections 8, 13,

 

13b, and 15, 1 or both of the following:

 

     (i) Tax increment revenues received under a brownfield plan

 

established under sections 13 and 14.

 

     (ii) Proceeds of tax increment bonds and notes issued under

 

section 17.

 

     (d) Proceeds of revenue bonds and notes issued under section

 

12.

 

     (e) Revenue available in the local site remediation brownfield

revolving fund for the costs described in section 8.

 

     (f) Money obtained from all other sources approved by the

 

governing body of the municipality or otherwise authorized by law

 

for use by the authority or the municipality to finance activities

 

authorized under this act.

 

     Sec. 13. (1) When adopting a brownfield plan, the board shall

 

comply with the notice and approval provisions of section 14.

 

     (2) (1) Subject to section 15, the board may implement a

 

brownfield plan. The brownfield plan may apply to 1 or more parcels

 

of eligible property whether or not those parcels of eligible

 

property are contiguous and may be amended to apply to additional

 

parcels of eligible property. Except as otherwise authorized by

 

this act, if more than 1 eligible property is included within the

 

plan, the tax increment revenues under the plan shall be determined

 

individually for each eligible property. Each plan or an amendment

 

to a plan shall be approved by the governing body of the

 

municipality and shall contain all of the following:

 

     (a) A description of the costs of the plan intended to be paid

 

for with the tax increment revenues or, for a plan for eligible

 

properties qualified on the basis that the property is owned by or

 

under the control of a land bank fast track authority, a listing of

 

all eligible activities that may be conducted for 1 or more of the

 

eligible properties subject to the plan.

 

     (b) A brief summary of the eligible activities that are

 

proposed for each eligible property or, for a plan for eligible

 

properties qualified on the basis that the property is owned by or

 

under the control of a land bank fast track authority, a brief

summary of eligible activities conducted for 1 or more of the

 

eligible properties subject to the plan.

 

     (c) An estimate of the captured taxable value and tax

 

increment revenues for each year of the plan from the eligible

 

property. The plan may provide for the use of part or all of the

 

captured taxable value, including deposits in the local site

 

remediation brownfield revolving fund, but the portion intended to

 

be used shall be clearly stated in the plan. The plan shall not

 

provide either for an exclusion from captured taxable value of a

 

portion of the captured taxable value or for an exclusion of the

 

tax levy of 1 or more taxing jurisdictions unless the tax levy is

 

excluded from tax increment revenues in section 2(ii), 2(mm), or

 

unless the tax levy is excluded from capture under section 15.

 

     (d) The method by which the costs of the plan will be

 

financed, including a description of any advances made or

 

anticipated to be made for the costs of the plan from the

 

municipality.

 

     (e) The maximum amount of note or bonded indebtedness to be

 

incurred, if any.

 

     (f) The proposed beginning date and duration of capture of tax

 

increment revenues for each eligible property as determined under

 

subsection (22).section 13b(16).

 

     (g) An estimate of the impact of tax increment financing on

 

the future tax revenues of all taxing jurisdictions in which the

 

eligible property is located to be generated during the term of the

 

plan.

 

     (h) A legal description of the eligible property to which the

plan applies, a map showing the location and dimensions of each

 

eligible property, a statement of the characteristics that qualify

 

the property as eligible property, and a statement of whether

 

personal property is included as part of the eligible property. If

 

the project is on property that is functionally obsolete, the

 

taxpayer shall include, with the application, an affidavit signed

 

by a level 3 or level 4 assessor, that states that it is the

 

assessor's expert opinion that the property is functionally

 

obsolete and the underlying basis for that opinion.

 

     (i) Estimates of the number of persons residing on each

 

eligible property to which the plan applies and the number of

 

families and individuals to be displaced. If occupied residences

 

are designated for acquisition and clearance by the authority, the

 

plan shall include a demographic survey of the persons to be

 

displaced, a statistical description of the housing supply in the

 

community, including the number of private and public units in

 

existence or under construction, the condition of those in

 

existence, the number of owner-occupied and renter-occupied units,

 

the annual rate of turnover of the various types of housing and the

 

range of rents and sale prices, an estimate of the total demand for

 

housing in the community, and the estimated capacity of private and

 

public housing available to displaced families and individuals.

 

     (j) A plan for establishing priority for the relocation of

 

persons displaced by implementation of the plan.

 

     (k) Provision for the costs of relocating persons displaced by

 

implementation of the plan, and financial assistance and

 

reimbursement of expenses, including litigation expenses and

expenses incident to the transfer of title, in accordance with the

 

standards and provisions of the uniform relocation assistance and

 

real property acquisition policies act of 1970, Public Law 91-646.

 

     (l) A strategy for compliance with 1972 PA 227, MCL 213.321 to

 

213.332.

 

     (m) A description of proposed use of the local site

 

remediation revolving fund.

 

     (m) (n) Other material that the authority or governing body

 

considers pertinent to the brownfield plan.

 

     (3) (2) The percentage of all taxes levied on a parcel of

 

eligible property for school operating expenses that is captured

 

and used When taxes levied for school operating purposes are

 

subject to capture under section 15, the percentage of school

 

operating tax increment revenues captured relating to a parcel of

 

eligible property under a brownfield plan and all tax increment

 

finance plans under 1975 PA 197, MCL 125.1651 to 125.1681, the tax

 

increment finance authority act, 1980 PA 450, MCL 125.1801 to

 

125.1830, or the local development financing act, 1986 PA 281, MCL

 

125.2151 to 125.2174, shall not be greater than the combination of

 

the plans' percentage capture and use of all local taxes levied for

 

purposes other than for the payment of principal of and interest on

 

either obligations approved by the electors or obligations pledging

 

the unlimited taxing power of the local unit of government. This

 

subsection shall apply only when taxes levied for school operating

 

purposes are subject to capture under section 15.percentage of

 

local tax increment revenues that are captured under the brownfield

 

plan relating to that parcel of eligible property.

     (4) (3) Except as provided in this subsection (5) and

 

subsections (5), (15), and (16), sections 8 and 13b(4) and (5), tax

 

increment revenues related to a brownfield plan shall be used only

 

for costs 1 or more of the following:

 

     (a) Costs of eligible activities attributable to the eligible

 

property , the captured taxable value of which that produces the

 

tax increment revenues. , including the cost of principal of and

 

interest on any obligation issued by the authority to pay the costs

 

of eligible

 

     (b) Eligible activities attributable to the any eligible

 

property , and the reasonable costs of preparing a brownfield plan,

 

combined brownfield plan, or a work plan for the eligible property.

 

For for property that is owned by or under the control of a land

 

bank fast track authority , tax increment revenues related to a

 

brownfield plan may be used for eligible activities attributable to

 

any eligible property owned or under the control of the land bank

 

fast track authority, the cost of principal of and interest on any

 

obligation issued by the authority to pay the costs of eligible

 

activities, the reasonable costs of preparing a combined brownfield

 

plan or work plan. Except as provided in subsection (18), tax

 

increment revenues captured from taxes levied by this state under

 

the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,

 

or taxes levied by a local school district shall not be used for

 

eligible activities described in section 2(n)(iv)(E).or a qualified

 

local unit of government.

 

     (5) (4) Except as provided in subsection (5), a A brownfield

 

plan shall not authorize the capture of tax increment revenue from

eligible property after the year in which the total amount of tax

 

increment revenues captured is equal to the sum of the costs

 

permitted to be funded with tax increment revenues under this act

 

.or 30 years from the beginning date of the capture of the tax

 

increment revenues for that eligible property, whichever occurs

 

first, except that a brownfield plan may authorize the capture of

 

additional local and school operating tax increment revenue from an

 

eligible property if 1 or more of the following apply:

 

     (a) (5) A brownfield plan may authorize the capture of

 

additional tax increment revenue from an eligible property in

 

excess of the amount authorized under subsection (4) during During

 

the time of capture described in this subsection for the purpose of

 

paying the costs permitted under subsection (3), (4) or for section

 

13b(4).

 

     (b) For not more than 5 years after the time that capture is

 

required for the purpose of paying the costs permitted under

 

subsection (3), or both. Excess revenues captured under this

 

subsection shall be deposited date specified in subdivision (a),

 

for payment to the local site remediation brownfield revolving fund

 

created under section 8. and used for the purposes authorized in

 

section 8. If tax increment revenues attributable to taxes levied

 

for school operating purposes from eligible property are captured

 

by the authority for purposes authorized under subsection (3), the

 

tax increment revenues captured for deposit in the local site

 

remediation revolving fund also may include tax increment revenues

 

attributable to taxes levied for school operating purposes in an

 

amount not greater than the tax increment revenues levied for

school operating purposes captured from the eligible property by

 

the authority for the purposes authorized under subsection (3).

 

Excess tax increment revenues from taxes levied for school

 

operating purposes for eligible activities authorized under

 

subsection (15) by the Michigan strategic fund shall not be

 

captured for deposit in the local site remediation revolving fund.

 

     (6) An authority shall not expend tax increment revenues to

 

acquire or prepare eligible property, unless the acquisition or

 

preparation is an eligible activity.

 

     (7) Costs of eligible activities attributable to eligible

 

property include all costs that are necessary or related to a

 

release from the eligible property, including eligible activities

 

on properties affected by a release from the eligible property. For

 

purposes of this subsection, "release" means that term as defined

 

in section 20101 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.20101.

 

     (8) Costs of a response activity paid with tax increment

 

revenues that are captured pursuant to subsection (3) may be

 

recovered from a person who is liable for the costs of eligible

 

activities at an eligible property. This state or an authority may

 

undertake cost recovery for tax increment revenue captured. Before

 

an authority or this state may institute a cost recovery action, it

 

must provide the other with 120 days' notice. This state or an

 

authority that recovers costs under this subsection shall apply

 

those recovered costs to the following, in the following order of

 

priority:

 

     (a) The reasonable attorney fees and costs incurred by this

state or an authority in obtaining the cost recovery.

 

     (b) One of the following:

 

     (i) If an authority undertakes the cost recovery action, the

 

authority shall deposit the remaining recovered funds into the

 

local site remediation fund created pursuant to section 8, if such

 

a fund has been established by the authority. If a local site

 

remediation fund has not been established, the authority shall

 

disburse the remaining recovered funds to the local taxing

 

jurisdictions in the proportion that the local taxing

 

jurisdictions' taxes were captured.

 

     (ii) If this state undertakes a cost recovery action, this

 

state shall deposit the remaining recovered funds into the

 

revitalization revolving loan fund established under section 20108a

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20108a.

 

     (iii) If this state and an authority each undertake a cost

 

recovery action, undertake a cost recovery action jointly, or 1 on

 

behalf of the other, the amount of any remaining recovered funds

 

shall be deposited pursuant to subparagraphs (i) and (ii) in the

 

proportion that the tax increment revenues being recovered

 

represent local taxes and taxes levied for school operating

 

purposes, respectively.

 

     (9) Approval of the brownfield plan or an amendment to a

 

brownfield plan shall be in accordance with the notice and approval

 

provisions of this section and section 14.

 

     (10) Before approving a brownfield plan for an eligible

 

property, the governing body shall hold a public hearing on the

brownfield plan. By resolution, the governing body may delegate the

 

public hearing process to the authority or to a subcommittee of the

 

governing body subject to final approval by the governing body.

 

     (11) Notice of the time and place of the hearing on a

 

brownfield plan shall contain all of the following:

 

     (a) A description of the property to which the plan applies in

 

relation to existing or proposed highways, streets, streams, or

 

otherwise.

 

     (b) A statement that maps, plats, and a description of the

 

brownfield plan are available for public inspection at a place

 

designated in the notice and that all aspects of the brownfield

 

plan are open for discussion at the public hearing required by this

 

section.

 

     (c) Any other information that the governing body considers

 

appropriate.

 

     (12) At the time set for the hearing on the brownfield plan

 

required under subsection (10), the governing body shall ensure

 

that interested persons have an opportunity to be heard and that

 

written communications with reference to the brownfield plan are

 

received and considered. The governing body shall ensure that a

 

record of the public hearing is made and preserved, including all

 

data presented at the hearing.

 

     (13) Not less than 10 days before the hearing on the

 

brownfield plan, the governing body shall provide notice of the

 

hearing to the taxing jurisdictions that levy taxes subject to

 

capture under this act. The authority shall fully inform the taxing

 

jurisdictions about the fiscal and economic implications of the

proposed brownfield plan. At that hearing, an official from a

 

taxing jurisdiction with millage that would be subject to capture

 

under this act has the right to be heard in regard to the adoption

 

of the brownfield plan. Not less than 10 days before the hearing on

 

the brownfield plan, the governing body shall provide notice of the

 

hearing to the department if the brownfield plan involves the use

 

of taxes levied for school operating purposes to pay for eligible

 

activities that require the approval of a combined brownfield plan

 

or a work plan by the department under section 15(1)(a) and the

 

Michigan strategic fund, or its designee, if the brownfield plan

 

involves the use of taxes levied for school operating purposes to

 

pay for eligible activities subject to subsection (15) or (18).

 

     (14) The authority shall not enter into agreements with the

 

taxing jurisdictions and the governing body of the municipality to

 

share a portion of the captured taxable value of an eligible

 

property. Upon adoption of the plan, the collection and

 

transmission of the amount of tax increment revenues as specified

 

in this act shall be binding on all taxing units levying ad valorem

 

property taxes or specific taxes against property located in the

 

zone.

 

     (15) Except as provided by subsection (18), if a brownfield

 

plan includes the capture of taxes levied for school operating

 

purposes approval of a combined brownfield plan or a work plan by

 

the Michigan strategic fund to use taxes levied for school

 

operating purposes and a development agreement or reimbursement

 

agreement between the municipality or authority and an owner or

 

developer of eligible property are required if the taxes levied for

school operating purposes will be used for infrastructure

 

improvements that directly benefit eligible property, demolition of

 

structures that is not response activity under part 201 of the

 

natural resources and environmental protection act, 1994 PA 451,

 

MCL 324.20101 to 324.20142, lead or asbestos abatement, site

 

preparation that is not response activity under section 20101 of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20101, relocation of public buildings or operations

 

for economic development purposes, or acquisition of property by a

 

land bank fast track authority if acquisition of the property is

 

for economic development purposes. The eligible activities to be

 

conducted described in this subsection shall be consistent with the

 

work plan submitted by the authority to the Michigan strategic

 

fund. The department's approval is not required for the capture of

 

taxes levied for school operating purposes for eligible activities

 

described in this subsection.

 

     (16) The limitations of section 15(1) upon use of tax

 

increment revenues by an authority shall apply except as follows:

 

     (a) The limitations of section 15(1) upon use of tax increment

 

revenues by an authority shall not apply to the following costs and

 

expenses:

 

     (i) In each fiscal year of the authority, the amount described

 

in subsection (19) for the following purposes for tax increment

 

revenues attributable to local taxes:

 

     (A) Reasonable and actual administrative and operating

 

expenses of the authority.

 

     (B) Baseline environmental assessments, due care activities,

and additional response activities conducted by or on behalf of the

 

authority related directly to work conducted on prospective

 

eligible properties prior to approval of the brownfield plan.

 

     (ii) Reasonable costs of preparing a work plan for which tax

 

increment revenues may be used under section 13(3).

 

     (b) The limitations of section 15(1)(a), (b), and (c) upon the

 

use of taxes levied for school operating purposes by an authority

 

shall not apply to the costs of 1 or more of the following incurred

 

by a person other than the authority:

 

     (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.

 

     (c) The limitations of section 15(1)(b) upon use of tax

 

increment revenues by an authority shall not apply to the following

 

costs and expenses:

 

     (i) For tax increment revenues attributable to taxes levied

 

for school operating purposes, eligible activities associated with

 

unanticipated response activities conducted on eligible property if

 

that eligible property has been included in a brownfield plan, if

 

the department is consulted on the unanticipated response

 

activities before they are conducted and the costs of those

 

activities are subsequently included in a brownfield plan approved

by the authority and a combined brownfield plan or a work plan

 

approved by the department.

 

     (ii) For tax increment revenues attributable to local taxes,

 

any eligible activities conducted on eligible property or

 

prospective eligible properties prior to approval of the brownfield

 

plan, if those costs and the eligible property are subsequently

 

included in a brownfield plan approved by the authority.

 

     (iii) For tax increment revenues attributable to taxes levied

 

for school operating purposes, eligible activities described in

 

section 13(15) and conducted on eligible property or prospective

 

eligible properties prior to approval of the brownfield plan, if

 

those costs and the eligible property are subsequently included in

 

a brownfield plan approved by the authority and a combined

 

brownfield plan or work plan approved by the Michigan strategic

 

fund.

 

     (17) A brownfield authority may reimburse advances, with or

 

without interest, made by a municipality under section 7(3), a land

 

bank fast track authority, or any other person or entity for costs

 

of eligible activities with any source of revenue available for use

 

of the brownfield authority under this act. If an authority

 

reimburses a person or entity under this section for an advance for

 

the payment or reimbursement of the cost of eligible activities and

 

interest thereon, the authority may capture local taxes for the

 

payment of that interest. If an authority reimburses a person or

 

entity under this section for an advance for the payment or

 

reimbursement of the cost of baseline environmental assessments,

 

due care, and additional response activities and interest thereon

included in a combined brownfield plan or a work plan approved by

 

the department, the authority may capture taxes levied for school

 

operating purposes and local taxes for the payment of that

 

interest. If an authority reimburses a person or entity under this

 

section for an advance for the payment or reimbursement of the cost

 

of eligible activities that are not baseline environmental

 

assessments, due care, and additional response activities and

 

interest thereon included in a combined brownfield plan or a work

 

plan approved by the Michigan strategic fund, the authority may

 

capture taxes levied for school operating purposes and local taxes

 

for the payment of that interest provided that the Michigan

 

strategic fund grants an approval for the capture of taxes levied

 

for school operating purposes to pay such interest. An authority

 

may enter into agreements related to these reimbursements and

 

payments. A reimbursement agreement for these purposes and the

 

obligations under that reimbursement agreement shall not be subject

 

to section 12 or the revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821.

 

     (18) If a brownfield plan includes the capture of taxes levied

 

for school operating purposes, approval of a combined brownfield

 

plan or a work plan by the Michigan strategic fund in the manner

 

required under section 15(14) to (16) or (25) is required in order

 

to use tax increment revenues attributable to taxes levied for

 

school operating purposes for purposes of eligible activities

 

described in section 2(n)(iv)(E) for 1 or more parcels of eligible

 

property. The combined brownfield plan or work plan to be submitted

 

to the Michigan strategic fund under this subsection shall be in a

form prescribed by the Michigan strategic fund. The eligible

 

activities to be conducted and described in this subsection shall

 

be consistent with the combined brownfield plan or work plan

 

submitted by the authority to the Michigan strategic fund. The

 

department's approval is not required for the capture of taxes

 

levied for school operating purposes for eligible activities

 

described in this section.

 

     (19) In each fiscal year of the authority, the amount of tax

 

increment revenues attributable to local taxes that an authority

 

can use for the purposes described in subsection (16)(a) shall be

 

determined as follows:

 

     (a) For authorities that have 5 or fewer active projects,

 

$100,000.00.

 

     (b) For authorities that have 6 or more but fewer than 11

 

active projects, $125,000.00.

 

     (c) For authorities that have 11 or more but fewer than 16

 

active projects, $150,000.00.

 

     (d) For authorities that have 16 or more but fewer than 21

 

active projects, $175,000.00.

 

     (e) For authorities that have 21 or more but fewer than 26

 

active projects, $200,000.00.

 

     (f) For authorities that have 26 or more but fewer than 31

 

active projects, $300,000.00.

 

     (g) For authorities that have 31 or more active projects,

 

$500,000.00.

 

     (20) As used in subsection (19), "active project" means a

 

project in which the authority is currently capturing taxes under

this act. The amounts of tax increment revenues attributable to

 

local taxes listed in subsection (19) that an authority can use for

 

the purposes described in subsection (16)(a) may be increased by 2%

 

for each written agreement entered into by an authority in either

 

of the following situations up to a total maximum increase of 10%:

 

     (a) The authority is an authority established by a county and

 

that authority enters into a written agreement with 1 or more

 

municipalities within that county to serve as the only authority

 

for those other municipalities.

 

     (b) The authority enters into a written agreement with 1 or

 

more other authorities to administer 1 or more administrative

 

operations of those other authorities.

 

     (21) Notwithstanding anything to the contrary in this act, for

 

a brownfield plan that includes the capture of taxes levied for

 

school operating purposes from eligible property included in a

 

brownfield plan after January 1, 2013, an authority shall pay to

 

the department of treasury at least once annually an amount equal

 

to 3 mills of the taxes levied under the state education tax, 1993

 

PA 331, MCL 211.901 to 211.906, that are captured under the

 

brownfield plan for up to the first 25 years of the duration of

 

capture of tax increment revenues for each eligible property

 

included in the brownfield plan. The department of treasury shall

 

deposit these amounts into the state brownfield redevelopment fund.

 

If an authority pays an amount equal to 3 mills of the taxes levied

 

under the state education tax, 1993 PA 331, MCL 211.901 to 211.906,

 

on a parcel of eligible property to the department of treasury

 

under this subsection, the percentage of local taxes levied on that

parcel and used to reimburse eligible activities for a project

 

under a brownfield plan shall not exceed the percentage of local

 

taxes levied on that parcel that would have been used to reimburse

 

eligible activities for the project under a brownfield plan if the

 

3 mills of the taxes levied under the state education tax, 1993 PA

 

331, MCL 211.901 to 211.906, on that parcel were not paid to the

 

department of treasury under this subsection. If, due to an appeal

 

of any tax assessment, an authority is required to reimburse a

 

taxpayer for any portion of the 3 mills that are paid to the

 

department of treasury under this subsection, the department of

 

treasury shall reimburse that amount to the authority within 30

 

days after receiving a request from the authority for

 

reimbursement.

 

     (22) The duration of capture of tax increment revenues under a

 

brownfield plan for a particular eligible property shall not exceed

 

the lesser of the period authorized under subsections (4) and (5)

 

or 30 years from the beginning date of the capture of tax increment

 

revenues for that eligible property. The beginning date of capture

 

of tax increment revenues for an eligible property shall not be

 

later than 5 years following the date of the resolution including

 

the eligible property in the brownfield plan. The authority may

 

amend the beginning date of capture of tax increment revenues for a

 

particular eligible property to a date not later than 5 years

 

following the date of the resolution including the eligible

 

property in the brownfield plan. The authority may not amend the

 

beginning date of capture of tax increment revenues for a

 

particular eligible property if the authority has begun to

reimburse eligible activities from the capture of tax increment

 

revenues from that eligible property. Any tax increment revenues

 

captured from an eligible property before the beginning date of

 

capture of tax increment revenues for that eligible property shall

 

revert proportionately to the respective tax bodies. If an

 

authority amends the beginning date for capture of tax increment

 

revenues that includes the capture of tax increment revenues for

 

school operating purposes, then the authority shall notify the

 

department or the Michigan strategic fund, as applicable, within 30

 

days after amending the beginning date.

 

     Sec. 13a. Costs of a response activity paid with tax increment

 

revenues that are captured pursuant to section 13(4) may be

 

recovered from a party that is responsible for an activity causing

 

a release. This state or an authority may undertake cost recovery

 

for tax increment revenue captured. Before an authority or this

 

state may institute a cost recovery action, it must provide the

 

other with 60 days' notice. This state or an authority that

 

recovers costs under this section shall apply those recovered costs

 

to the following, in the following order of priority:

 

     (a) The reasonable attorney fees and costs incurred by this

 

state or an authority in obtaining the cost recovery.

 

     (b) One of the following:

 

     (i) If an authority undertakes the cost recovery action, the

 

authority shall deposit the remaining recovered funds into the

 

local brownfield revolving fund created pursuant to section 8, if

 

such a fund has been established by the authority. If a local

 

brownfield revolving fund has not been established, the authority

shall disburse the remaining recovered funds to the local taxing

 

jurisdictions in the proportion that the local taxing

 

jurisdictions' taxes were captured.

 

     (ii) If this state undertakes a cost recovery action, this

 

state shall deposit the remaining recovered funds into the

 

revitalization revolving loan fund established under section 20108a

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20108a.

 

     (iii) If this state and an authority each undertake a cost

 

recovery action, undertake a cost recovery action jointly, or one

 

on behalf of the other, the amount of any remaining recovered funds

 

shall be deposited pursuant to subparagraphs (i) and (ii) in the

 

proportion that the tax increment revenues being recovered

 

represent local taxes and taxes levied for school operating

 

purposes, respectively.

 

     Sec. 13b. (1) An authority shall not expend tax increment

 

revenues to acquire or prepare eligible property unless the

 

acquisition or preparation is an eligible activity.

 

     (2) An authority shall not enter into agreements with the

 

taxing jurisdictions and the governing body of the municipality to

 

share a portion of the taxes captured from an eligible property

 

under this act. Upon adoption of the plan, the collection and

 

transmission of the amount of tax increment revenues as specified

 

in this act shall be binding on all taxing units levying ad valorem

 

property taxes or specific taxes against property located in the

 

zone.

 

     (3) Tax increment revenues captured from taxes levied by this

state under the state education tax act, 1993 PA 331, MCL 211.901

 

to 211.906, or taxes levied by a local school district shall not be

 

used to assist a land bank fast track authority with clearing or

 

quieting title, acquiring, selling, or conveying property, except

 

as provided in subsection (4).

 

     (4) If a brownfield plan includes the use of taxes levied for

 

school operating purposes captured from an eligible property for

 

eligible activities that are not department specific activities,

 

then 1 or more of the following apply:

 

     (a) A combined brownfield plan or a work plan shall be

 

approved by the Michigan strategic fund and a development agreement

 

or reimbursement agreement between the municipality or authority

 

and an owner or developer of eligible property is required before

 

such tax increment may be used for infrastructure improvements that

 

directly benefit eligible property, demolition of structures that

 

is not response activity, lead, mold, or asbestos abatement that is

 

not a department specific activity, site preparation that is not

 

response activity, relocation of public buildings or operations for

 

economic development purposes, or acquisition of property by a land

 

bank fast track authority if acquisition of the property is for

 

economic development purposes.

 

     (b) Approval of a combined brownfield plan or a work plan by

 

the Michigan strategic fund in the manner required under section

 

15(12) through (14) or (20) is required in order to use the tax

 

increment revenues to assist a land bank fast track authority or

 

qualified local governmental unit with clearing or quieting title,

 

acquiring, selling, or conveying property.

     (c) The combined brownfield plan or work plan to be submitted

 

to the Michigan strategic fund under this subsection shall be in a

 

form prescribed by the Michigan strategic fund.

 

     (d) The eligible activities to be conducted and described in

 

this subsection shall be consistent with the combined brownfield

 

plan or work plan submitted by the authority to the Michigan

 

strategic fund.

 

     (e) The department's approval is not required for the capture

 

of taxes levied for school operating purposes for eligible

 

activities described in this section.

 

     (5) If a brownfield plan includes the use of taxes levied for

 

school operating purposes captured from eligible property for

 

department specific activities, a combined brownfield plan or a

 

work plan must be approved by the department with the exception of

 

those activities identified in subsections (8) and (9).

 

     (6) An authority shall not do any of the following:

 

     (a) Use taxes captured from eligible property to pay for

 

eligible activities conducted before approval of the brownfield

 

plan.

 

     (b) Use taxes captured from eligible property to pay for

 

administrative and operating activities of the authority or the

 

municipality on behalf of the authority for activities, other than

 

those identified in subsection (7).

 

     (c) For eligible activities not described in subsection (4),

 

an authority shall not use taxes levied for school operating

 

purposes captured from eligible property unless the eligible

 

activities to be conducted on the eligible property are eligible

department specific activities, consistent with a combined

 

brownfield plan or a work plan approved by the department after

 

July 24, 1996.

 

     (7) An authority may use taxes captured from eligible property

 

to pay for the administrative and operating costs under 1 or more

 

of the following:

 

     (a) Local taxes captured may be used for 1 or more of the

 

following administrative and operating purposes:

 

     (i) Reasonable and actual administrative and operating

 

expenses of the authority.

 

     (ii) Department specific activities conducted by or on behalf

 

of the authority related directly to work conducted on prospective

 

eligible properties prior to approval of the brownfield plan.

 

     (iii) Reasonable costs of developing and preparing brownfield

 

plans, combined plans, or work plans for which tax increment

 

revenues may be used under subsection (4), including, but not

 

limited to, legal and consulting fees that are not in the ordinary

 

course of acquiring and developing real estate.

 

     (b) Taxes levied for school operating purposes may be used for

 

1 or more of the following administrative and operating purposes:

 

     (i) Reasonable costs of developing and preparing brownfield

 

plans, combined brownfield plans, or work plans for which tax

 

increment revenues may be used under section 13(4), including, but

 

not limited to, legal and consulting fees that are not in the

 

ordinary course of acquiring and developing real estate, not to

 

exceed $30,000.00.

 

     (ii) Reasonable costs of brownfield plan or work plan

implementation, including, but not limited to, tracking and

 

reporting of data and plan compliance, not to exceed $30,000.00.

 

     (c) In each fiscal year of the authority, the amount of tax

 

increment revenues attributable to local taxes that an authority

 

can use for the purposes described in subdivisions (a) and (b)

 

shall be determined as follows:

 

     (i) For authorities that have 5 or fewer active projects,

 

$100,000.00.

 

     (ii) For authorities that have 6 or more but fewer than 11

 

active projects, $125,000.00.

 

     (iii) For authorities that have 11 or more but fewer than 16

 

active projects, $150,000.00.

 

     (iv) For authorities that have 16 or more but fewer than 21

 

active projects, $175,000.00.

 

     (v) For authorities that have 21 or more but fewer than 26

 

active projects, $200,000.00.

 

     (vi) For authorities that have 26 or more but fewer than 31

 

active projects, $300,000.00.

 

     (vii) For authorities that have 31 or more active projects,

 

$500,000.00.

 

     (d) Nothing contained in this subsection shall limit the

 

amount of funds that may be granted, loaned, or expended by a local

 

brownfield revolving fund for eligible activities.

 

     (e) As used in this subsection, "active project" means a

 

project in which the authority is currently capturing taxes under

 

this act. The amounts of tax increment revenues attributable to

 

local taxes listed in this subsection that an authority can use for

the purposes described in this subsection may be increased by 2%

 

for each written agreement entered into by an authority in either

 

of the following situations up to a total maximum increase of 10%:

 

     (i) The authority is an authority established by a county and

 

that authority enters into a written agreement with 1 or more

 

municipalities within that county to serve as the only authority

 

for those other municipalities.

 

     (ii) The authority enters into a written agreement with 1 or

 

more other authorities to administer 1 or more administrative

 

operations of those other authorities.

 

     (8) The limitations of subsections (4), (5), and (6) upon the

 

use of taxes levied for school operating purposes shall not apply

 

to the costs of 1 or more of the following incurred by a person

 

other than the authority:

 

     (a) Site investigation activities required to conduct a

 

baseline environmental assessment and to evaluate compliance with

 

sections 20107a and 21304c of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20107a and

 

324.21304c.

 

     (b) Completing a baseline environmental assessment.

 

     (c) Preparing a plan for compliance with sections 20107a and

 

21304c of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.20107a and 324.21304c.

 

     (d) Performing pre-demolition and building hazardous materials

 

surveys.

 

     (e) Asbestos, mold, and lead surveys.

 

     (9) The limitations of subsections (4), (5), and (6) upon the

use of local taxes and taxes levied for school operating purposes

 

shall not apply to the following costs and expenses:

 

     (a) For tax increment revenues attributable to taxes levied

 

for school operating purposes, eligible activities associated with

 

unanticipated response activities conducted on eligible property if

 

that eligible property has been included in a brownfield plan, if

 

the department is consulted in writing on the unanticipated

 

response activities before they are conducted and the costs of

 

those activities are subsequently included in a brownfield plan,

 

combined brownfield plan or a work plan or amendment approved by

 

the authority and approved by the department.

 

     (b) For tax increment revenues attributable to local taxes,

 

any eligible activities conducted on eligible property or

 

prospective eligible properties prior to approval of the brownfield

 

plan, if those costs and the eligible property are subsequently

 

included in a brownfield plan approved by the authority.

 

     (c) For tax increment revenues attributable to taxes levied

 

for school operating purposes, eligible activities described in

 

subsection (4) and conducted on eligible property or prospective

 

eligible properties prior to approval of the brownfield plan, if

 

those costs and the eligible property are subsequently included in

 

a brownfield plan approved by the authority and a combined

 

brownfield plan or work plan approved by the Michigan strategic

 

fund.

 

     (10) An authority shall not use taxes levied for school

 

operating purposes captured from eligible property for response

 

activities that benefit a party responsible for an activity causing

a release under section 20126 or 21323a of the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.20126 and

 

324.21323a, 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.

 

     (11) A brownfield authority may reimburse advances, with or

 

without interest, made by a municipality under section 7(3), a land

 

bank fast track authority, or any other person or entity for costs

 

of eligible activities with any source of revenue available for use

 

of the brownfield authority under this act.

 

     (12) A brownfield authority may capture taxes for the payment

 

of interest, as follows:

 

     (a) If an authority reimburses a person or entity under this

 

section for an advance for the payment or reimbursement of the cost

 

of eligible activities and interest thereon, the authority may

 

capture local taxes for the payment of that interest.

 

     (b) If an authority reimburses a person or entity under this

 

section for an advance for the payment or reimbursement of the cost

 

of department specific activities and interest thereon included in

 

a combined brownfield plan or a work plan approved by the

 

department, the authority may capture taxes levied for school

 

operating purposes and local taxes for the payment of that

 

interest.

 

     (c) If an authority reimburses a person or entity under this

 

section for an advance for the payment or reimbursement of the cost

 

of eligible activities that are not department specific activities

Senate Bill No. 908 as amended December 14, 2016

and interest thereon included in a combined brownfield plan or a

 

work plan approved by the Michigan strategic fund, the authority

 

may capture taxes levied for school operating purposes and local

 

taxes for the payment of that interest provided that the Michigan

 

strategic fund grants an approval for the capture of taxes levied

 

for school operating purposes to pay such interest.

 

     (13) An authority may enter into agreements related to these

 

reimbursements and payments described in this section. A

 

reimbursement agreement for these purposes and the obligations

 

under that reimbursement agreement shall not be subject to section

 

13 or the revised municipal finance act, 2001 PA 34, MCL 141.2101

 

to 141.2821.

 

     (14) Notwithstanding anything to the contrary in this act, for

 

a brownfield plan that includes the capture of taxes levied for

 

school operating purposes from each eligible property included in a

 

brownfield plan after January 1, 2013, an authority shall pay to

 

the department of treasury at least once annually an amount equal

 

to 50% of the taxes levied under the state education tax act, 1993

 

PA 331, MCL 211.901 to 211.906, [including 50% of that portion of

 specific taxes attributable to, but not levied under, the state education tax act, 1993 pa 331, mcl 211.901 to 211.906,] that are captured under the

 

brownfield plan until the expiration of the earlier of the

 

following:

 

     (a) Twenty-five years of capture of tax increment revenues

 

from such eligible property included in the brownfield plan.

 

     (b) The later of:

 

     (i) The date of repayment of all eligible expenses relative to

 

such eligible property.

 

     (ii) The date excess capture is terminated under subsection

Senate Bill No. 908 as amended December 14, 2016

(16).

 

     (15) The department of treasury shall deposit the amounts

 

described in subsection (14) into the state brownfield

 

redevelopment fund. If an authority makes a payment as required

 

under subsection (14) to the department of treasury, the local

 

taxes levied on that parcel and used to reimburse eligible

 

activities under a brownfield plan shall not be increased or

 

decreased due to that payment. If, due to an appeal of any tax

 

assessment, an authority is required to reimburse a taxpayer for

 

any portion of the [amount        ] paid to the department of

 

treasury under this subsection, the department of treasury shall

 

reimburse that amount to the authority within 30 days after

 

receiving a request from the authority for reimbursement.

 

     (16) The brownfield plan shall include a proposed beginning

 

date of capture. The beginning date of capture of tax increment

 

revenues shall not be later than 5 years following the date of the

 

resolution including the eligible property in the brownfield plan.

 

The authority may amend the beginning date of capture of tax

 

increment revenues for a particular eligible property to a date not

 

later than 5 years following the date of the resolution including

 

the eligible property in the brownfield plan. The authority may not

 

amend the beginning date of capture of tax increment revenues for a

 

particular eligible property if the authority has begun to

 

reimburse eligible activities from the capture of tax increment

 

revenues from that eligible property. Any tax increment revenues

 

captured from an eligible property before the beginning date of

 

capture of tax increment revenues for that eligible property shall

revert proportionately to the respective tax bodies. If an

 

authority amends the beginning date for capture of tax increment

 

revenues that includes the capture of tax increment revenues for

 

school operating purposes, then the authority shall notify the

 

department or the Michigan strategic fund, as applicable, within 30

 

days after amending the beginning date.

 

     Sec. 14. (1) Before approving a brownfield plan for an

 

eligible property, the governing body shall hold a public hearing

 

on the brownfield plan. By resolution, the governing body may

 

delegate the public hearing process to the authority or to a

 

subcommittee of the governing body subject to final approval by the

 

governing body.

 

     (2) Notice of the time and place of the hearing on a

 

brownfield plan shall contain all of the following:

 

     (a) A description of the property to which the plan applies in

 

relation to existing or proposed highways, streets, streams, or

 

otherwise.

 

     (b) A statement that maps, plats, and a description of the

 

brownfield plan are available for public inspection at a place

 

designated in the notice and that all aspects of the brownfield

 

plan are open for discussion at the public hearing required by this

 

section.

 

     (c) Any other information that the governing body considers

 

appropriate.

 

     (3) At the time set for the hearing on the brownfield plan

 

required under subsection (1), the governing body shall ensure that

 

interested persons have an opportunity to be heard and that written

communications with reference to the brownfield plan are received

 

and considered. The governing body shall ensure that a record of

 

the public hearing is made and preserved, including all data

 

presented at the hearing.

 

     (4) Not less than 10 days before the hearing on the brownfield

 

plan, the governing body shall provide notice of the hearing to the

 

taxing jurisdictions that levy taxes subject to capture under this

 

act. The authority shall notify the taxing jurisdictions of the

 

proposed brownfield plan. At that hearing, an official from a

 

taxing jurisdiction with millage that would be subject to capture

 

under this act has the right to be heard in regard to the adoption

 

of the brownfield plan. Not less than 10 days before the hearing on

 

the brownfield plan, the governing body shall provide notice of the

 

hearing to the department if the brownfield plan involves the use

 

of taxes levied for school operating purposes to pay for eligible

 

activities that require the approval of a combined brownfield plan

 

or a work plan by the department under section 13b(6)(c) and the

 

Michigan strategic fund, or its designee, if the brownfield plan

 

involves the use of taxes levied for school operating purposes to

 

pay for eligible activities subject to section 13b(4).

 

     (5) (1) Not less than 10 days after notice of the proposed

 

brownfield plan is provided to the taxing jurisdictions, the

 

governing body shall determine whether the plan constitutes a

 

public purpose. If the governing body determines that the plan does

 

not constitute a public purpose, the governing body shall reject

 

the plan. If the governing body determines that the plan

 

constitutes a public purpose, the governing body may then approve

or reject the plan, or approve it with modification, by resolution,

 

based on the following considerations:

 

     (a) Whether the plan meets the requirements of section

 

sections 13 and 13b.

 

     (b) Whether the proposed method of financing the costs of

 

eligible activities is feasible and the authority has the ability

 

to arrange the financing.

 

     (c) Whether the costs of eligible activities proposed are

 

reasonable and necessary to carry out the purposes of this act.

 

     (d) Whether the amount of captured taxable value estimated to

 

result from adoption of the plan is reasonable.

 

     (6) (2) Except as provided in this subsection, amendments to

 

an approved brownfield plan must be submitted by the authority to

 

the governing body for approval or rejection following the same

 

notice necessary for approval or rejection of the original plan.

 

Notice is not required for revisions in the estimates of captured

 

taxable value or tax increment revenues.

 

     (7) (3) The procedure, adequacy of notice, and findings with

 

respect to purpose and captured taxable value shall be

 

presumptively valid unless contested in a court of competent

 

jurisdiction within 60 days after adoption of the resolution

 

adopting the brownfield plan. An amendment, adopted by resolution,

 

to a conclusive plan shall likewise be conclusive unless contested

 

within 60 days after adoption of the resolution adopting the

 

amendment. If a resolution adopting an amendment to the plan is

 

contested, the original resolution adopting the plan is not

 

therefore open to contest.

     (8) A brownfield plan or plan amendment may be abolished or

 

terminated according to this subsection subject to all of the

 

following:

 

     (a) The governing body may abolish a brownfield plan when it

 

finds that the purposes for which the plan was established are

 

accomplished.

 

     (b) The governing body may terminate a brownfield plan or plan

 

amendment for an eligible property if the project for which

 

eligible activities were identified in the brownfield plan or plan

 

amendment fails to occur with respect to the eligible property for

 

at least 2 years following the date of the resolution approving the

 

brownfield plan or plan amendment, provided that the governing body

 

first does both of the following:

 

     (i) Gives 30 days' prior written notice to the developer at

 

its last known address by certified mail or other method that

 

documents proof of delivery attempted.

 

     (ii) Provides the developer an opportunity to be heard at a

 

public meeting.

 

     (c) If a brownfield plan or plan amendment is terminated under

 

subdivision (b), the governing body may approve a new brownfield

 

plan or plan amendment for the eligible property under which tax

 

increment revenues may be captured for up to the period of time

 

provided under section 13(5).

 

     (d) Notwithstanding anything in this subsection to the

 

contrary, a brownfield plan or plan amendment shall not be

 

abolished or terminated until the principal and interest on bonds

 

issued under section 17 and all other obligations to which the tax

increment revenues are pledged have been paid or funds sufficient

 

to make the payment have been identified or segregated.

 

     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 combined brownfield

 

plan or a work plan approved by the department after July 24, 1996.

 

     (b) 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).

 

     (c) 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.

 

     (d) 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

 

combined brownfield plan or a work plan for the eligible property.

 

     (1) (2) To seek department approval of a work plan under

 

subsection (1)(a), section 13b(6)(c), 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.

 

     (2) (3) Upon receipt of a request for approval of a work plan

 

under subsection (2) (1) or a portion of a work plan that pertains

 

to only baseline environmental assessment department specific

 

activities, or due care activities, or both, the department shall

 

review the work plan according to subsection (4) (3) 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), (3), including, but not limited to, individual activities to

 

be modified, added, or deleted from the work plan and revision of

costs. The department may not condition its approval on deletions

 

from or modifications of the work plan relating to activities to be

 

funded solely by tax increment revenues not attributable to taxes

 

levied for school operating purposes.

 

     (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)(c), section

 

13b(10), or for any specific activity if the activity is prohibited

 

by subsection (1)(b). section 13b(6)(a). The department may also

 

deny any activity in a work plan that does not meet the conditions

 

in subsection (4) (3) only if the department cannot respond under

 

subdivision (b) or (c). subsection (2)(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) subsection (2)(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.

 

     (3) (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

 

department specific activities or additional response activities

 

other than activities that are exempt from the work plan approval

 

process under subsection (1)(a).section 13b(8).

 

     (b) The due care department specific activities, and response

 

activities, other than the activities that are exempt from the work

 

plan approval process under subsection (1)(a), section 13b(8), are

 

protective of the public health, safety, and welfare and the

 

environment. The department may approve additional response

 

department specific 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 department specific 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 The cost to implement activities

 

minimally necessary to achieve due care compliance, the incremental

 

cost of all additional response activities relative to the cost of

 

all total cost of response activities, and the total cost of all

 

response incremental cost of department specific activities in

 

excess of those activities minimally necessary to achieve due care

compliance.

 

     (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.

 

     (4) (5) If the department fails to provide a written response

 

under subsection (3) (2) 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), (5), 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) (2) 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), (2)(c), the department shall review the

 

additional information according to subsection (4) (3) and provide

 

1 of the responses described in subsection (3) (2) 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), (2)(c), the activity is approved under

 

subsection (1).section 13b.

     (5) (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) section 13b for the eligible activities described in

 

the work plan initially submitted under subsection (5). (4). 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). section

 

13b. 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, or part 213 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.or part

 

213.

 

     (6) (7) If the department issues a written response under

 

subsection (6) (5) 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), section 13b, 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.

 

     (7) (8) It shall be in the sole discretion of an authority to

 

propose to undertake additional response department specific

 

activities under subsection (3)(b) at an eligible property under a

 

brownfield plan. The department shall not require a work plan to

 

include additional response department specific activities that are

 

more protective of public health, safety, welfare, and the

 

environment.

 

     (8) (9) The department shall review the portion of a work plan

 

that includes additional response department specific activities in

 

accordance with subsection (4).(3).

 

     (9) (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) Through December 31, 2012, 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) 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 to each

 

member of the legislature as provided in section 16(4).

 

     (10) (13) To seek Michigan strategic fund approval of a work

 

plan under section 13(15), 13b(4), 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) 13b(4) to be

 

undertaken.

 

     (g) A copy of the development agreement or reimbursement

 

agreement required under section 13(15), 13b(4), 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.

 

     (11) (14) Upon receipt of a request for approval of a work

 

plan, the Michigan strategic fund shall provide 1 of the following

 

written responses to the requesting authority within 65 60 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.

 

     (12) (15) In its review of a work plan under section 13(15),

 

13b(4), the Michigan strategic fund 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 strategic fund.

 

     (j) (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.

 

     (k) (l) Whether the project of the developer, landowner, or

 

corporate entity that is included in the work plan is financially

 

and economically sound.

 

     (l) (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.

 

     (m) (n) Any other criteria that the Michigan strategic fund

 

considers appropriate for the determination of eligibility or for

approval of the work plan.

 

     (13) (16) If the Michigan strategic fund fails to provide a

 

written response under subsection (14) (11) within 65 60 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)

 

13b(4) as outlined in the work plan as submitted for approval.

 

     (14) (17) The Michigan strategic fund approval of a work plan

 

under section 13(15) 13b(4) is final.

 

     (18) Through December 31, 2012, the authority shall reimburse

 

the Michigan strategic fund for the actual cost incurred by the

 

Michigan strategic fund or a contractor of the Michigan strategic

 

fund to review a work plan under this section.

 

     (15) (19) The Michigan strategic fund shall submit a report

 

each year to each member of the legislature as provided in section

 

16(4).

 

     (16) (20) All taxes levied for school operating purposes that

 

are not used for eligible activities consistent with a combined

 

brownfield plan or a work plan approved by the department or the

 

Michigan strategic fund or for the payment of interest under

 

section sections 13 and 13b and that are not deposited in a local

 

site remediation brownfield 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.

 

     (17) (22) The department's approval of a work plan under

 

subsection (3)(a) or (b) (2)(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.

 

     (18) (23) The applicant party seeking work plan approval 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.

 

     (19) (24) If a brownfield plan includes the capture of taxes

 

levied for school operating purposes, the chairperson of the

 

Michigan strategic fund may approve, without a meeting of the fund

 

board, combined brownfield plans and work plans that address

 

eligible activities described in section 13(15) 13b(4) totaling an

 

amount of $500,000.00 $1,000,000.00 or less according to

 

subsections (10), (11), (12), (13), and (14). , (15), (16), (17),

 

and (18).

 

     (20) (25) In lieu of seeking approval of a work plan under

 

section 13(15) or subsection (1)(a), 13b(4) or (6)(c), an authority

 

may seek approval of a combined brownfield plan from the department

 

or Michigan strategic fund under this subsection as follows:

 

     (a) To seek approval of a combined brownfield plan under this

 

subsection, the authority shall, at least 30 days before the

 

hearing on the combined brownfield plan to allow for consultation

 

between the authority and the department or the Michigan strategic

 

fund, provide notice that the authority will be seeking approval of

 

a combined brownfield plan in lieu of a work plan to 1 or more of

the following:

 

     (i) The department, if the combined brownfield plan involves

 

the use of taxes levied for school operating purposes to pay for

 

eligible activities that require approval by the department under

 

subsection (1)(a).section 13b(6)(c).

 

     (ii) The Michigan strategic fund, if the combined brownfield

 

plan involves the use of taxes levied for school operating purposes

 

to pay for eligible activities subject to subsection (15).(12).

 

     (b) After the governing body approves a combined brownfield

 

plan, the authority shall submit the combined brownfield plan to

 

the department under the circumstances described in subdivision

 

(a)(i) or Michigan strategic fund under the circumstances described

 

in subdivision (a)(ii).

 

     (c) The department shall review a combined brownfield plan

 

according to subdivision (e). The Michigan strategic fund shall

 

review a combined brownfield plan according to subdivision (f).

 

     (d) Upon receipt of a combined brownfield plan under

 

subdivision (b), the department or Michigan strategic fund shall

 

provide 1 of the following written responses to the requesting

 

authority within 65 60 days:

 

     (i) An unconditional approval that includes an enumeration of

 

eligible activities and a maximum allowable capture amount.

 

     (ii) A conditional approval that delineates specific necessary

 

modifications to the combined brownfield plan, including, but not

 

limited to, individual activities to be added to or deleted from

 

the combined brownfield plan and revision of costs.

 

     (iii) A denial and a letter stating with specificity the

reason for the denial. If a combined brownfield plan is denied

 

under this subdivision, the combined brownfield plan may be

 

subsequently resubmitted.

 

     (e) The department may approve a combined brownfield plan if

 

the authority submits the information identified in subsection

 

(2)(b) to (e) (1) and if the conditions identified in subsection

 

(4) (3) are met.

 

     (f) The Michigan strategic fund shall consider the criteria

 

identified in subsection (15)(a) to (n) (12) to the extent

 

reasonably applicable to the type of activities proposed as part of

 

a combined brownfield plan when approving or denying the combined

 

brownfield plan.

 

     (g) If the department or Michigan strategic fund issues a

 

written response to a requesting authority under subdivision (d)(i)

 

or (ii), the governing body or its designee may administratively

 

approve any modifications to a combined brownfield plan required by

 

the written response without the need to follow the notice and

 

approval process required by section 14(2) 14(6) unless the

 

modifications add 1 or more parcels of eligible property or

 

increase the maximum amount of tax increment revenues approved for

 

the project.

 

     (h) If the department or Michigan strategic fund fails to

 

provide a written response under subdivision (d) within 65 60 days

 

after receipt of a complete combined brownfield plan, the eligible

 

activities shall be considered approved as submitted.

 

     (i) The approval of a combined brownfield plan by the

 

department or Michigan strategic fund under this subsection is

final.

 

     Sec. 15a. (1) If the amount of tax increment revenues lost as

 

a result of the personal property tax exemptions provided by

 

section 1211(4) of the revised school code, 1976 PA 451, MCL

 

380.1211, section 3 of the state education tax act, 1993 PA 331,

 

MCL 211.903, section 14(4) of 1974 PA 198, MCL 207.564, and section

 

9k of the general property tax act, 1893 PA 206, MCL 211.9k, will

 

reduce the allowable school tax capture received in a fiscal year,

 

then, notwithstanding any other provision of this act, the

 

authority, with approval of the department of treasury under

 

subsection (3), may request the local tax collecting treasurer to

 

retain and pay to the authority taxes levied within the

 

municipality under the state education tax act, 1993 PA 331, MCL

 

211.901 to 211.906, to be used for the following:

 

     (a) To repay an advance made not later than 1 year after the

 

effective date of the amendatory act that added this section.before

 

June 5, 2008.

 

     (b) To repay an obligation issued or incurred not later than 1

 

year after the effective date of the amendatory act that added this

 

section.before June 5, 2008.

 

     (c) To pay or reimburse a developer or owner of eligible

 

property or a municipality that created the authority for eligible

 

activities pursuant to a development and reimbursement agreement

 

entered into not later than 1 year after the effective date of the

 

amendatory act that added this section.before June 5, 2008.

 

     (d) To pay for eligible activities identified in a brownfield

 

plan, or an amendment to that plan approved by board of the

authority not later than 90 days after the effective date of the

 

amendatory act that added this section before September 3, 2008 if

 

the plan contains all of the following and the work plan for the

 

capture of school taxes has been approved within 1 year after the

 

effective date of the amendatory act that added this section:before

 

June 5, 2009:

 

     (i) A detailed description of the project.

 

     (ii) A statement of the estimated cost of the project.

 

     (iii) The specific location of the project.

 

     (iv) The name of any developer of the project.

 

     (2) Not later than June 15 of each year, or for 2013 only, not

 

later than 30 days after the effective date of the amendatory act

 

that amended this sentence, before March 28, 2014, an authority

 

eligible under subsection (1) to have taxes levied under the state

 

education tax act, 1993 PA 331, MCL 211.901 to 211.906, retained

 

and paid to the authority under this section, shall apply for

 

approval with the department of treasury. The application for

 

approval shall include the following information:

 

     (a) The property tax millage rates expected to be levied by

 

local school districts within the jurisdictional area of the

 

authority for school operating purposes for that fiscal year.

 

     (b) The tax increment revenues estimated to be received by the

 

authority for that fiscal year based upon actual property tax

 

levies of all taxing jurisdictions within the jurisdictional area

 

of the authority.

 

     (c) The tax increment revenues the authority estimates it

 

would have received for that fiscal year if the personal property

tax exemptions described in subsection (1) were not in effect.

 

     (d) A list of advances, obligations, development and

 

reimbursement agreements, and projects included in brownfield plans

 

described in subsection (1), and shall separately identify the

 

payments due on each of those advances, obligations, development

 

agreements, and eligible activities in that fiscal year, and the

 

total amount of all the payments due on all of those in that fiscal

 

year.

 

     (e) The amount of money, other than tax increment revenues,

 

estimated to be received in that fiscal year by the authority that

 

is primarily pledged to, or would be used for, the repayment of an

 

advance, the payment of an obligation, the payment of eligible

 

activities pursuant to a development and reimbursement agreement,

 

or the payment of eligible activities identified in a brownfield

 

plan described in subsection (1). That amount shall not include

 

excess tax increment revenues of the authority that are permitted

 

by law to be retained by the authority for purposes that further

 

the development program. However, that amount shall include money

 

to be obtained from sources authorized by law, which law is enacted

 

on or after December 1, 1993, for use by the municipality or

 

authority to finance a development plan.

 

     (f) The amount of a distribution received pursuant to this act

 

for a fiscal year in excess of or less than the distribution that

 

would have been required if calculated upon actual tax increment

 

revenues received for that fiscal year.

 

     (3) Not later than August 15 of each year, based on the

 

calculations under subsection (5), the department of treasury shall

approve, modify, or deny the application for approval to have taxes

 

levied under the state education tax act, 1993 PA 331, MCL 211.901

 

to 211.906, retained and paid to the authority under this section.

 

If the application for approval contains the information required

 

under subsection (2)(a) through (f) and appears to be in

 

substantial compliance with the provisions of this section, then

 

the department of treasury shall approve the application. If the

 

application is denied by the department of treasury, then the

 

department of treasury shall provide the opportunity for a

 

representative of the authority to discuss the denial within 21

 

days after the denial occurs and shall sustain or modify its

 

decision within 30 days after receiving information from the

 

authority. If the application for approval is approved or modified

 

by the department of treasury, the local tax collecting treasurer

 

shall retain and pay to the authority the amount described in

 

subsection (5) as approved by the department of treasury. If the

 

department of treasury denies the authority's application for

 

approval, the local tax collecting treasurer shall not retain or

 

pay to the authority the taxes levied under the state education tax

 

act, 1993 PA 331, MCL 211.901 to 211.906. An approval by the

 

department does not prohibit a subsequent audit of taxes retained

 

in accordance with the procedures currently authorized by law.

 

     (4) Each year the legislature shall appropriate and distribute

 

an amount sufficient to pay each authority the following:

 

     (a) If the amount to be retained and paid under subsection (3)

 

is less than the amount calculated under subsection (5), the

 

difference between those amounts.

     (b) If the application for approval is denied by the

 

department of treasury, an amount verified by the department equal

 

to the amount calculated under subsection (5).

 

     (5) Subject to subsection (6), the aggregate amount under this

 

section shall be the sum of the amounts determined under

 

subdivisions (a) and (b) minus the amount determined under

 

subdivision (c), as follows:

 

     (a) The amount by which the tax increment revenues the

 

authority would have received and retained for the fiscal year,

 

excluding taxes exempt under section 7ff of the general property

 

tax act, 1893 PA 206, MCL 211.7ff, if the personal property tax

 

exemptions described in subsection (1) were not in effect, exceed

 

the tax increment revenues the authority actually received for the

 

fiscal year.

 

     (b) A shortfall required to be reported under subsection

 

(2)(f) that had not previously increased a distribution.

 

     (c) An excess amount required to be reported under subsection

 

(2)(f) that had not previously decreased a distribution.

 

     (6) A distribution or taxes retained under this section

 

replacing tax increment revenues pledged by an authority or a

 

municipality are subject to any lien of the pledge described in

 

subsection (1), whether or not there has been physical delivery of

 

the distribution.

 

     (7) Obligations for which distributions are made under this

 

section are not a debt or liability of this state; do not create or

 

constitute an indebtedness, liability, or obligation of this state;

 

and are not and do not constitute a pledge of the faith and credit

of this state.

 

     (8) Not later than September 15 of each year, the authority

 

shall provide a copy of the application for approval approved by

 

the department of treasury to the local tax collecting treasurer

 

and provide the amount of the taxes retained and paid to the

 

authority under subsection (5).

 

     (9) Calculations of amounts retained and paid and

 

appropriations to be distributed under this section shall be made

 

on the basis of each development area of the authority.

 

     (10) The state tax commission may provide that the

 

calculations under this section and the calculation of allowable

 

capture of school taxes shall be made for each calendar year's tax

 

increment revenues using a 12-month debt payment period used by the

 

authority and approved by the state tax commission.

 

     (11) It is the intent of the legislature that, to the extent

 

that the total amount of taxes levied under the state education tax

 

act, 1993 PA 331, MCL 211.901 to 211.906, that are allowed to be

 

retained under this section and section 11b of the local

 

development financing act, 1986 PA 281, MCL 125.2161b, section 12b

 

of the tax increment finance authority act, 1980 PA 450, MCL

 

125.1812b, and section 13c of 1975 PA 197, MCL 125.1663c, exceeds

 

the difference of the total school aid fund revenue for the tax

 

year minus the estimated amount of revenue the school aid fund

 

would have received for the tax year had the tax exemptions

 

described in subsection (1) and the earmark created by section 515

 

of the Michigan business tax act, 2007 PA 36, MCL 208.1515, not

 

taken effect, the general fund shall reimburse the school aid fund

the difference.

 

     (12) As used in this section:

 

     (a) "Advance" means that term as defined in section 1 of 1975

 

PA 197, MCL 125.1651.

 

     (b) "Obligation" means that term as defined in section 1 of

 

1975 PA 197, MCL 125.1651.

 

     Sec. 16. (1) The municipal and county treasurers shall

 

transmit tax increment revenues to the authority not more than 30

 

days after tax increment revenues are collected.

 

     (2) The authority shall expend the tax increment revenues

 

received only in accordance with the brownfield plan. All surplus

 

funds not deposited in the local site remediation brownfield

 

revolving fund of the authority under section 13(5) 8 shall revert

 

proportionately to the respective taxing bodies, except as provided

 

in section 15(20).15(16).

 

     (3) The authority shall submit annually to the governing body,

 

the department, and the Michigan strategic fund a financial report

 

on the status of the activities of the authority for each calendar

 

year. The report shall include all of the following:

 

     (a) The amount and source of tax increment revenues received.

 

     (b) The amount and purpose of expenditures of tax increment

 

revenues.

 

     (c) The amount of principal and interest on all outstanding

 

indebtedness.

 

     (d) The initial taxable value of all eligible property subject

 

to the brownfield plan.

 

     (e) The captured taxable value realized by the authority for

each eligible property subject to the brownfield plan.

 

     (f) The amount of actual capital investment made for each

 

project.

 

     (g) The amount of tax increment revenues attributable to taxes

 

levied for school operating purposes used for activities described

 

in section 15(1)(a) and 13b(6)(c), section 2(n)(vii).2(n)(i)(H),

 

and section 2(n)(ii)(B) and (C).

 

     (h) The number of residential units constructed or

 

rehabilitated for each project.

 

     (i) The amount, by square foot, of new or rehabilitated

 

residential, retail, commercial, or industrial space for each

 

project.

 

     (j) The number of new jobs created at the project.

 

     (k) All additional information that the governing body, the

 

department, or the Michigan strategic fund considers necessary.

 

     (4) The department and the Michigan strategic fund shall

 

collect the financial reports submitted under subsection (3),

 

compile a combined report, which includes the use of local taxes,

 

taxes levied for school operating purposes, and the state

 

brownfield redevelopment fund, based on the information contained

 

in those reports and any additional information considered

 

necessary, and submit annually a report based on that information

 

to each member of the legislature.

 

     (5) Beginning on January 1, 2013, all of the following

 

reporting obligations apply:

 

     (a) The department shall on a quarterly basis post on its

 

website the name, location, and amount of tax increment revenues,

including taxes levied for school operating purposes, for each

 

project approved by the department under this act during the

 

immediately preceding quarter.

 

     (b) The Michigan strategic fund shall on a quarterly basis

 

post on its website the name, location, and amount of tax increment

 

revenues, including taxes levied for school operating purposes, for

 

each project approved by the Michigan strategic fund under this act

 

during the immediately preceding quarter.

 

     (6) In addition to any other requirements under this act, not

 

less than once every 3 years beginning not later than June 30,

 

2008, the auditor general shall conduct and report a performance

 

postaudit on the effectiveness of the program established under

 

this act. As part of the performance postaudit, the auditor general

 

shall assess the extent to which the implementation of the program

 

by the department and the Michigan strategic fund facilitate and

 

affect the redevelopment or reuse of eligible property and identify

 

any factors that inhibit the program's effectiveness. The

 

performance postaudit shall also assess the extent to which the

 

interpretation of statutory language, the development of guidance

 

or administrative rules, and the implementation of the program by

 

the department and the Michigan strategic fund is consistent with

 

the fundamental objective of facilitating and supporting timely and

 

efficient brownfield redevelopment of eligible properties.

 

     (7) The owner or developer for an active project included

 

within a brownfield plan must annually submit to the authority a

 

report on the status of the project. The report shall be in a form

 

developed by the authority and must contain information necessary

for the authority to report under subsection (3)(f), (h), (i), (j),

 

and (k). The authority may waive the requirement to submit a report

 

under this subsection. As used in this subsection, "active project"

 

means a project for which the authority is currently capturing

 

taxes under this act.

 

     (8) A brownfield plan or plan amendment may be abolished or

 

terminated according to this subsection subject to all of the

 

following:

 

     (a) The governing body may abolish a brownfield plan when it

 

finds that the purposes for which the plan was established are

 

accomplished.

 

     (b) The governing body may terminate a brownfield plan or plan

 

amendment for an eligible property if the project for which

 

eligible activities were identified in the brownfield plan or plan

 

amendment fails to occur with respect to the eligible property for

 

at least 5 years following the date of the resolution approving the

 

brownfield plan or plan amendment.

 

     (c) If a brownfield plan or plan amendment is terminated under

 

subdivision (b), the governing body may approve a new brownfield

 

plan or plan amendment for the eligible property under which tax

 

increment revenues may be captured for up to 30 years as provided

 

in section 13(22).

 

     (d) Notwithstanding anything in this subsection to the

 

contrary, a brownfield plan or plan amendment shall not be

 

abolished or terminated until the principal and interest on bonds

 

issued under section 17 and all other obligations to which the tax

 

increment revenues are pledged have been paid or funds sufficient

to make the payment have been identified or segregated.

 

     Enacting section 1. Sections 21 and 22 of the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2671 and

 

125.2672, are repealed.

 

     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.