HB-5814, As Passed House, June 9, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5814

                                                                             A bill to amend 1986 PA 281, entitled                                             

"The local development financing act,"                                      

by amending sections 4 and 16 (MCL 125.2154 and 125.2166),                  

section 4 as amended by 2000 PA 248.                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 4.  (1) The governing body of a municipality may                       

2   declare by resolution adopted by a majority of its members                  

3   elected and serving its intention to create and provide for the             

4   operation of an authority.                                                  

5       (2) In the resolution of intent, the governing body proposing               

6   to create the authority shall set a date for holding a public               

7   hearing on the adoption of a proposed resolution creating the               

8   authority and designating the boundaries of the authority                   

9   district or districts.  Notice of the public hearing shall be               

10  published twice in a newspaper of general circulation in the                

1   municipality, not less than 20 nor more than 40 days before the             

2   date of the hearing.  Not less than 20 days before the hearing,             

3   the governing body proposing to create the authority shall also             

4   mail notice of the hearing to the property taxpayers of record in           

5   a proposed authority district and, for a public hearing to be               

6   held after February 15, 1994, to the governing body of each                 

7   taxing jurisdiction levying taxes that would be subject to                  

8   capture if the authority is established and a tax increment                 

9   financing plan is approved.  Beginning June 1, 2004, the notice             

10  of hearing within the time frame described in this subsection               

11  shall be mailed by certified mail to the treasurer, clerk, and              

12  chairperson of the board of commissioners of the county in which            

13  the authority district is located. Failure of a property taxpayer           

14  to receive the notice shall not invalidate these proceedings.               

15  The notice shall state the date, time, and place of the hearing,            

16  and shall describe the boundaries of the proposed authority                 

17  district or districts.  At that hearing, a resident, taxpayer, or           

18  property owner from a taxing jurisdiction in which the proposed             

19  district is located or an official from a taxing jurisdiction               

20  with millage that would be subject to capture has the right to be           

21  heard in regard to the establishment of the authority and the               

22  boundaries of that proposed authority district.  The governing              

23  body of the municipality in which a proposed district is to be              

24  located shall not incorporate land into an authority district not           

25  included in the description contained in the notice of public               

26  hearing, but it may eliminate lands described in the notice of              

27  public hearing from an authority district in the final                      

1   determination of the boundaries.                                            

2       (3) Not more than 60 days after a public hearing held after                 

3   February 15, 1994, the governing body of a taxing jurisdiction              

4   with millage that would otherwise be subject to capture may                 

5   exempt its taxes from capture by adopting a resolution to that              

6   effect and filing a copy with the clerk of the municipality                 

7   proposing to create the authority.  However, a resolution by a              

8   governing body of a taxing jurisdiction to exempt its taxes from            

9   capture is not effective for the capture of taxes that are used             

10  for a certified technology park.  The resolution takes effect               

11  when filed with that clerk and remains effective until a copy of            

12  a resolution rescinding that resolution is filed with that                  

13  clerk.                                                                      

14      (4) Not less than 60 days after the public hearing, if the                  

15  governing body creating the authority intends to proceed with the           

16  establishment of the authority, it shall adopt, by majority vote            

17  of its members elected and serving, a resolution establishing the           

18  authority and designating the boundaries of the authority                   

19  district or districts within which the authority shall exercise             

20  its powers.  The adoption of the resolution is subject to any               

21  applicable statutory or charter provisions with respect to the              

22  approval or disapproval of resolutions by the chief executive               

23  officer of the municipality and the adoption of a resolution over           

24  his or her veto.  This resolution shall be filed with the                   

25  secretary of state promptly after its adoption and shall be                 

26  published at least once in a newspaper of general circulation in            

27  the municipality.                                                           

1       (5) The governing body may alter or amend the boundaries of                 

2   an authority district to include or exclude lands from that                 

3   authority district or create new authority districts pursuant to            

4   the same requirements prescribed for adopting the resolution                

5   creating the authority.                                                     

6       (6) The validity of the proceedings establishing an authority               

7   shall be conclusive unless contested in a court of competent                

8   jurisdiction within 60 days after the last of the following takes           

9   place:                                                                      

10      (a) Publication of the resolution creating the authority as                 

11  adopted.                                                                    

12      (b) Filing of the resolution creating the authority with the                

13  secretary of state.                                                         

14      (7) Except as otherwise provided by this subsection, if 2 or                

15  more municipalities desire to establish an authority under                  

16  section 3(2), each municipality in which the authority district             

17  will be located shall comply with the procedures prescribed by              

18  this act.  The notice required by subsection (2) may be published           

19  jointly by the municipalities establishing the authority.  The              

20  resolutions establishing the authority shall include, or shall              

21  approve an agreement including, provisions governing the number             

22  of members on the board, the method of appointment, the members             

23  to be represented by governmental units or agencies, the terms of           

24  initial and subsequent appointments to the board, the manner in             

25  which a member of the board may be removed for cause before the             

26  expiration of his or her term, the manner in which the authority            

27  may be dissolved, and the disposition of assets upon                        

1   dissolution.  An authority described in this subsection shall not           

2   be considered established unless all of the following conditions            

3   are satisfied:                                                              

4       (a) A resolution is approved and filed with the secretary of                

5   state by each municipality in which the authority district will             

6   be located.                                                                 

7       (b) The same boundaries have been approved for the authority                

8   district by the governing body of each municipality in which the            

9   authority district will be located.                                         

10      (c) The governing body of the county in which a majority of                 

11  the authority district will be located has approved by resolution           

12  the creation of the authority.                                              

13      Sec. 16.  (1) Before adoption of a resolution approving or                  

14  amending a development plan or approving or amending a tax                  

15  increment financing plan, the governing body shall hold a public            

16  hearing on the development plan.  Notice of the time and place of           

17  the hearing shall be given by publication twice in a newspaper of           

18  general circulation designated by the municipality, the first of            

19  which shall not be less than 20 days before the date set for the            

20  hearing.  Beginning June 1, 2004, the notice of hearing within              

21  the time frame described in this subsection shall be mailed by              

22  certified mail to the treasurer, clerk, and chairperson of the              

23  board of commissioners of the county in which the proposed                  

24  development area is located.

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

26  plan shall contain the following:                                           

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

1   in relation to highways, streets, streams, or otherwise.                    

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

3   development plan, including the method of relocating families and           

4   individuals who may be displaced from the area, are available for           

5   public inspection at a place designated in the notice, and that             

6   all aspects of the development plan will be open for discussion             

7   at the public hearing.                                                      

8       (c) Other information that the governing body considers                     

9   appropriate.                                                                

10      (3) At the time set for hearing, the governing body shall                   

11  provide an opportunity for interested persons to be heard and               

12  shall receive and consider communications in writing with                   

13  reference to the matter.  The hearing shall provide the fullest             

14  opportunity for expression of opinion, for argument on the                  

15  merits, and for introduction of documentary evidence pertinent to           

16  the development plan.  The governing body shall make and preserve           

17  a record of the public hearing, including all data presented at             

18  that time.