HB-5243, As Passed House, June 1, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5243

                                                                             A bill to amend 1996 PA 376, entitled                                             

"Michigan renaissance zone act,"                                            

by amending section 8d (MCL 125.2688d), as added by 2003 PA 266.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 8d.  (1) The board of the Michigan strategic fund                      

2   described in section 4 of the Michigan strategic fund act, 1984             

3   PA 270, MCL 125.2004, may designate not more than 20 tool and die           

4   renaissance recovery zones within this state in 1 or more cities,           

5   villages, or townships if that city, village, or township or                

6   combination of cities, villages, or townships consents to the               

7   creation of a recovery zone within their boundaries.  A recovery            

8   zone shall have a duration of renaissance zone status for a                 

9   period not to exceed 15 years as determined by the board of the             

10  Michigan strategic fund.                                                    

11      (2) The board of the Michigan strategic fund may designate a                

1   recovery zone within this state if the recovery zone consists               

2   only of 1 or more parcels of  property owned by 1 or more                   

3   qualified tool and die businesses and used by those qualified               

4   tool and die businesses primarily for tool and die business                 

5   operations qualified tool and die business property.                       

6       (3) As used in this section:                                                

7       (a) "Qualified collaborative agreement" means an agreement                  

8   that demonstrates synergistic opportunities, including, but not             

9   limited to, all of the following:                                           

10                                                                               (i) Sales and marketing efforts.                                                    

11      (ii) Development of standardized processes.                                  

12      (iii) Development of tooling standards.                                      

13      (iv) Standardized project management methods.                                

14      (v) Improved ability for specialized or small niche shops to                

15  develop expertise and compete successfully on larger programs.              

16      (b) "Qualified tool and die business" means a business entity               

17  that meets all of the following:                                            

18                                                                               (i) Has a North American industrial classification system                           

19  (NAICS) of 333511, 333512, 333513, 333514, or 333515; or has a              

20  North American industrial classification system (NAICS) of 337215           

21  and operates a facility within an existing renaissance zone,                

22  which facility is adjacent to real property not located in a                

23  renaissance zone and is located within 1/4 mile of a Michigan               

24  technical education center.                                                 

25      (ii) Has entered into a qualified collaboration agreement as                 

26  approved by the Michigan strategic fund with other business                 

27  entities that have a North American industrial classification               

1   system (NAICS) of 333511, 333512, 333513, 333514, or 333515.                

2       (iii) Has less than 50 full-time employees.                                  

3   (c) "Qualified tool and die business property" means 1 or                   

4   more of the following:                                                      

5                                                                                (i) Property owned by 1 or more qualified tool and die                              

6   businesses and used by those qualified tool and die businesses              

7   primarily for tool and die business operations.                             

8       (ii) Property leased by 1 or more qualified tool and die                     

9   business for which the qualified tool and die business is liable            

10  for ad valorem property taxes and which is used by those                    

11  qualified tool and die businesses primarily for tool and die                

12  business operations.  The qualified tool and die business shall             

13  furnish proof of its ad valorem property tax liability to the               

14  department.

15  (d)  (c)  "Recovery zone" means a tool and die renaissance                  

16  recovery zone created in this section.