HOUSE BILL No. 4733 May 26, 1999, Introduced by Reps. Bisbee, Garcia, Kowall, Van Woerkom, LaSata, Mortimer, Richardville, Gilbert and Shackleton and referred to the Committee on Economic Development. A bill to amend 1996 PA 376, entitled "Michigan renaissance zone act," by amending the title and sections 3, 4, 5, 6, and 8 (MCL 125.2683, 125.2684, 125.2685, 125.2686, and 125.2688) and by adding section 8a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to create AND EXPAND certain renaissance zones; to 3 foster economic opportunities in this state; to facilitate eco- 4 nomic development; to stimulate industrial, commercial, and resi- 5 dential improvements; to prevent physical and infrastructure 6 deterioration of geographic areas in this state; to authorize 7 expenditures; to provide exemptions and credits from certain 8 taxes; to create certain obligations of this state and local 9 governmental units; to require disclosure of certain transactions 03333'99 JLB 2 1 and gifts; to provide for appropriations; and to prescribe the 2 powers and duties of certain state and local departments, agen- 3 cies, and officials. 4 Sec. 3. As used in this act: 5 (a) "Board" means the state administrative board created in 6Act No. 2 of the Public Acts of 1921, being sections 17.1 to717.3 of the Michigan Compiled Laws1921 PA 2, MCL 17.1 TO 17.3. 8 (b) "Development plan" means a written plan that addresses 9 the criteria in section 7 and includes all of the following: 10 (i) A map of the proposed renaissance zone that indicates 11 the geographic boundaries, the total area, and the present use 12 and conditions generally of the land and structures within those 13 boundaries. 14 (ii) Evidence of community support and commitment from resi- 15 dential and business interests. 16 (iii) A description of the methods proposed to increase eco- 17 nomic opportunity and expansion, facilitate infrastructure 18 improvement, and identify job training opportunities. 19 (iv) Current social, economic, and demographic characteris- 20 tics of the proposed renaissance zone and anticipated improve- 21 ments in education, health, human services, public safety, and 22 employment if the renaissance zone is created. 23 (v) Any other information required by the board. 24 (c) "Elected county executive" means the elected county 25 executive in a county organized underAct No. 293 of the Public26Acts of 1966, being sections 45.501 to 45.521 of the Michigan27Compiled Laws1966 PA 293, MCL 45.501 TO 45.521, orAct No. 13903333'99 3 1of the Public Acts of 1973, being sections 45.551 to 45.573 of2the Michigan Compiled Laws1973 PA 139, MCL 45.551 TO 45.573. 3 (d) "Local governmental unit" means a county, city, village, 4 or township. 5 (e) "Person" means an individual, partnership, corporation, 6 association, limited liability company, governmental entity, or 7 other legal entity. 8 (f) "Qualified local governmental unit" means either of the 9 following: 10 (i) A county. 11 (ii) A city, village, or township that contains an eligible 12 distressed area as defined in section 11 of the state housing 13 development authority act of 1966,Act No. 346 of the Public14Acts of 1966, being section 125.1411 of the Michigan Compiled15Laws1966 PA 346, MCL 125.1411. 16 (g) "Renaissance zone" means a geographic areasodesig- 17 natedby the boardunder this act. 18 (h) "Residential rental property" means that term as defined 19 in section 7ff of the general property tax act,Act No. 206 of20the Public Acts of 1893, being section 211.7ff of the Michigan21Compiled Laws1893 PA 206, MCL 211.7FF. 22 (i) "Review board" means the renaissance zone review board 23 created in section 5. 24 (j) "Rural area" means an area that lies outside of the 25 boundaries of an urban area. 03333'99 4 1 (k) "Urban area" means an urbanized area as determined by 2 the economics and statistics administration, United States bureau 3 of the census according to the 1990 census. 4 Sec. 4. (1) One or more qualified local governmental units 5 may apply to the review board to designate the qualified local 6 governmental unit or units as a renaissance zone if all of the 7 following criteria are met: 8 (a) The geographic area of the proposed renaissance zone is 9 located within the boundaries of the qualified local governmental 10 unit or units that apply. 11 (b) The application includes a development plan. 12 (c) The proposed renaissance zone is not more than 5,000 13 acres in size. 14 (d) The renaissance zone does not contain more than610 15 distinct geographic areas.TheEXCEPT AS OTHERWISE PROVIDED IN 16 THIS SUBDIVISION, THE minimum size of a distinct geographic area 17 isas follows:NOT LESS THAN 5 ACRES. A QUALIFIED LOCAL GOV- 18 ERNMENTAL UNIT OR UNITS MAY DESIGNATE NOT MORE THAN 4 DISTINCT 19 GEOGRAPHIC AREAS IN EACH RENAISSANCE ZONE TO HAVE NO MINIMUM SIZE 20 REQUIREMENT. 21(i) For a distinct geographic area that is wholly or partly22within a city with a population over 500,000, the distinct geo-23graphic area is not less than 30 acres.24(ii) For a distinct geographic area that is located wholly25or partially within a village, the distinct geographic area is26not less than 10 acres.03333'99 5 1(iii) For a distinct geographic area other than in an area2described in subparagraph (i) or (ii), the distinct geographic3area is not less than 20 acres.4(e) That not more than 50% of the real property in each dis-5tinct geographic area described in subdivision (d) is owned by6the same person.7 (E)(f)The application includes the proposed duration of 8 renaissance zone status, not to exceed 15 years. 9 (F)(g)If the qualified local governmental unit has an 10 elected county executive, the county executive's written approval 11 of the application. 12 (G)(h)If the qualified local governmental unit is a 13 city, that city's mayor's written approval of the application. 14 (2) A qualified local governmental unit shall not be a part 15 of more than 1 renaissance zone. 16 (3) A qualified local governmental unit may submit not more 17 than 1 application to the review board for designation as a 18 renaissance zone. A resolution provided by a city, village, or 19 township under section 7(2) does not constitute an application of 20 a city, village, or township for a renaissance zone under this 21 act. 22 (4) For a distinct geographic area described in subsection 23(1)(d)(ii)(1)(D), a village may include publicly owned land 24 within the boundaries of any distinct geographic area. 25 (5) THROUGH DECEMBER 31, 2002, A QUALIFIED LOCAL GOVERNMEN- 26 TAL UNIT OR UNITS IN WHICH A RENAISSANCE ZONE WAS DESIGNATED 27 UNDER SECTION 8 MAY DESIGNATE ADDITIONAL DISTINCT GEOGRAPHIC 03333'99 6 1 AREAS NOT TO EXCEED A TOTAL OF 10 DISTINCT GEOGRAPHIC AREAS UPON 2 APPLICATION TO AND APPROVAL BY THE BOARD. THE ADDITIONAL DIS- 3 TINCT GEOGRAPHIC AREAS SHALL HAVE THE DURATION OF RENAISSANCE 4 ZONE STATUS AS DETERMINED BY THE QUALIFIED LOCAL GOVERNMENTAL 5 UNIT NOT TO EXCEED 15 YEARS EXCEPT AS PROVIDED IN SUBSECTION 6 (6). 7 (6) IF A QUALIFIED LOCAL GOVERNMENTAL UNIT OR UNITS DESIG- 8 NATE ADDITIONAL DISTINCT GEOGRAPHIC AREAS IN A RENAISSANCE ZONE 9 UNDER SUBSECTION (5), THE QUALIFIED LOCAL GOVERNMENTAL UNIT OR 10 UNITS MAY EXTEND THE DURATION OF THE RENAISSANCE ZONE STATUS OF 11 ALL DISTINCT GEOGRAPHIC AREAS IN THAT RENAISSANCE ZONE SO THAT 12 THE RENAISSANCE ZONE STATUS OF ALL DISTINCT GEOGRAPHIC AREAS 13 WITHIN THAT RENAISSANCE ZONE ENDS AT THE SAME TIME. 14 Sec. 5. (1) The renaissance zone review board is created. 15 The review board shall consist ofall of the following:THE 16 BOARD OF THE MICHIGAN STRATEGIC FUND DESCRIBED IN SECTION 4 OF 17 THE MICHIGAN STRATEGIC FUND ACT, 1984 PA 270, MCL 125.2004. 18(a) The director of the department of management and19budget, or his or her designee.20(b) The chief executive officer of the Michigan jobs commis-21sion, or his or her designee.22(c) The state treasurer, or his or her designee.23 (2) The review board shall review all applications submitted 24 by qualified local governmental units and make recommendations to 25 the board for approval based on the criteria contained in section 26 7. 03333'99 7 1 (3) The review board and the board shall not consider an 2 application if the application was submitted after September 30, 3 1996 FOR DESIGNATIONS UNDER SECTION 8. 4 (4) Members of the board and the review board shall serve 5 without compensation for their membership on the board and the 6 review board, but members of the board and the review board may 7 receive reasonable reimbursement for necessary travel and 8 expenses. 9 Sec. 6. (1) The board shall review all recommendations sub- 10 mitted by the review board and determine which applications meet 11 the criteria contained in section 7. 12 (2) The board shall do all of the following: 13 (a) Designate renaissance zones. 14 (b) Subject to subsection (3), approve or reject the dura- 15 tion of renaissance zone status as submitted in the application, 16 not to exceed 15 years EXCEPT AS PROVIDED IN SECTION 4(6). 17 (c) Subject to subsection (3), approve or reject the geo- 18 graphic boundaries and the total area of the renaissance zone as 19 submitted in the application. 20 (3) The board shall not alter the geographic boundaries of 21 the renaissance zone or the duration of renaissance zone status 22 described in the application unless the qualified local govern- 23 mental unit or units and the local governmental unit or units in 24 which the renaissance zone is to be located consent by resolution 25 to the alteration. 26 (4) The board shall not designate a renaissance zone UNDER 27 SECTION 8 before November 1, 1996 or after December 31, 1996. 03333'99 8 1 (5) The designation of a renaissance zone under this act 2 shall take effect on January 1, 1997IN THE YEAR FOLLOWING 3 DESIGNATION. However, for purposes of the taxes exempted under 4 section 9(2), the designation of a renaissance zone under this 5 act shall take effect on December 31, 1996IN THE YEAR OF 6 DESIGNATION. 7 (6) THE BOARD SHALL NOT DESIGNATE A RENAISSANCE ZONE UNDER 8 SECTION 8A AFTER DECEMBER 31, 2002. 9 Sec. 8. (1) Except as provided in subsection (2) AND SEC- 10 TION 8A, the board shall not designate more than 9 renaissance 11 zones within this state. Not more than 6 of the renaissance 12 zones shall be located in urban areas and not more than 4 of the 13 renaissance zones shall be located in rural areas. For purposes 14 of determining whether a renaissance zone is located in an urban 15 area or rural area under this section, if any part of a renais- 16 sance zone is located within an urban area, the entire renais- 17 sance zone shall be considered to be located in an urban area. 18 (2) The board may designate additional renaissance zones 19 within this state in 1 or more qualified local governmental units 20 if that qualified local governmental unit or units contain a mil- 21 itary installation that was operated by the United States depart- 22 ment of defense and has closed after 1990. 23(3) A list of the renaissance zones designated by the board24shall be submitted to the legislature, which, by concurrent reso-25lution adopted by a majority vote of those elected to and serving26in each house, on a record roll call vote, may reject the entire03333'99 9 1list no later than December 30 of the year in which this act2becomes effective.3 SEC. 8A. (1) EXCEPT AS PROVIDED IN SUBSECTION (2), THE 4 BOARD SHALL NOT DESIGNATE MORE THAN 9 ADDITIONAL RENAISSANCE 5 ZONES WITHIN THIS STATE UNDER THIS SECTION. NOT MORE THAN 6 OF 6 THE RENAISSANCE ZONES SHALL BE LOCATED IN URBAN AREAS AND NOT 7 MORE THAN 4 OF THE RENAISSANCE ZONES SHALL BE LOCATED IN RURAL 8 AREAS. FOR PURPOSES OF DETERMINING WHETHER A RENAISSANCE ZONE IS 9 LOCATED IN AN URBAN AREA OR RURAL AREA UNDER THIS SECTION, IF ANY 10 PART OF A RENAISSANCE ZONE IS LOCATED WITHIN AN URBAN AREA, THE 11 ENTIRE RENAISSANCE ZONE SHALL BE CONSIDERED TO BE LOCATED IN AN 12 URBAN AREA. 13 (2) THE BOARD OF THE MICHIGAN STRATEGIC FUND DESCRIBED IN 14 SECTION 4 OF THE MICHIGAN STRATEGIC FUND ACT, 1984 PA 270, 15 MCL 125.2004, MAY DESIGNATE NOT MORE THAN 5 ADDITIONAL RENAIS- 16 SANCE ZONES WITHIN THIS STATE IN 1 OR MORE LOCAL GOVERNMENTAL 17 UNITS IF THAT LOCAL GOVERNMENTAL UNIT OR UNITS CONSENT TO THE 18 CREATION OF A RENAISSANCE ZONE WITHIN THEIR BOUNDARIES. 03333'99 Final page. JLB