SB-1453, As Passed House, November 30, 2004

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1453

                                                                             A bill to amend 1996 PA 376, entitled                                             

"Michigan renaissance zone act,"                                            

by amending sections 6 and 8a (MCL 125.2686 and 125.2688a),                 

section 6 as amended by 2004 PA 16 and section 8a as amended by             

2002 PA 587.                                                                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 6.  (1) The board shall review all recommendations                     

2   submitted by the review board and determine which applications              

3   meet the criteria contained in section 7.                                   

4       (2) The board shall do all of the following:                                

5       (a) Designate renaissance zones.                                            

6       (b) Subject to subsection (3), approve or reject the duration               

7   of renaissance zone status.                                                 

8       (c) Subject to subsection (3), approve or reject the                        

9   geographic boundaries and the total area of the renaissance zone            

1   as submitted in the application.                                            

2       (3) The board shall not alter the geographic boundaries of                  

3   the renaissance zone or the duration of renaissance zone status             

4   described in the application unless the qualified local                     

5   governmental unit or units and the local governmental unit or               

6   units in which the renaissance zone is to be located consent by             

7   resolution to the alteration.                                               

8       (4) The board shall not designate a renaissance zone under                  

9   section 8 before November 1, 1996 or after December 31, 1996.               

10      (5) The designation of a renaissance zone under this act                    

11  shall take effect on January 1 in the year following                        

12  designation.  However, for purposes of the taxes exempted under             

13  section 9(2), the designation of a renaissance zone under this              

14  act shall take effect on December 31 in the year of designation.            

15      (6) The board shall not designate a renaissance zone under                  

16  section 8a after December 31, 2002.                                         

17      (7) Through December 31, 2002, a qualified local governmental               

18  unit in which a renaissance zone was designated under section 8             

19  or 8a may modify the boundaries of that renaissance zone to                 

20  include contiguous parcels of property as determined by the                 

21  qualified local governmental unit and approval by the review                

22  board.  The additional contiguous parcels of property included in           

23  a renaissance zone under this subsection do not constitute an               

24  additional distinct geographic area under section 4(1)(d).  If              

25  the boundaries of the renaissance zone are modified as provided             

26  in this subsection, the additional contiguous parcels of property           

27  shall become part of the original renaissance zone on the same              

1   terms and conditions as the original designation of that                    

2   renaissance zone.                                                           

3       (8) Notwithstanding any other provisions of this act, before                

4   July 1, 2004, a qualified local governmental unit in which a                

5   renaissance zone was designated under section 8a(1) as a                    

6   renaissance zone located in a rural area may modify the                     

7   boundaries of that renaissance zone to include a contiguous                 

8   parcel of property as determined by the qualified local                     

9   governmental unit.  The contiguous parcel of property shall only            

10  include property that is less than .5 acres in size and that the            

11  qualified local governmental unit previously sought to have                 

12  included in the zone by submitting an application in February               

13  2002 that was not acted upon by the review board.  The additional           

14  contiguous parcel of property included in a renaissance zone                

15  under this subsection does not constitute an additional distinct            

16  geographic area under section 4(1)(d).  If the boundaries of the            

17  renaissance zone are modified as provided in this subsection, the           

18  additional contiguous parcel of property shall become part of the           

19  original renaissance zone on the same terms and conditions as the           

20  rest of the property in that renaissance zone.                              

21  (9) A business that is located and conducts business activity               

22  within a renaissance zone designated under section 8(1) and (2),            

23  8a(1) and (3), 8c(1), or 8d(1) shall not make a payment in lieu             

24  of taxes to any taxing jurisdiction within the qualified local              

25  governmental unit in which the renaissance zone is located.

26      Sec. 8a.  (1) Except as provided in subsections (2), (3), and               

27  (4), the board shall not designate more than 9 additional                   

1   renaissance zones within this state under this section.  Not more           

2   than 6 of the renaissance zones shall be located in urban areas             

3   and not more than 5 of the renaissance zones shall be located in            

4   rural areas.  For purposes of determining whether a renaissance             

5   zone is located in an urban area or rural area under this                   

6   section, if any part of a renaissance zone is located within an             

7   urban area, the entire renaissance zone shall be considered to be           

8   located in an urban area.                                                   

9       (2) The board of the Michigan strategic fund described in                   

10  section 4 of the Michigan strategic fund act, 1984 PA 270,                  

11  MCL 125.2004, may designate not more than  5 6 additional                  

12  renaissance zones within this state in 1 or more cities,                    

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

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

15  creation of a renaissance zone within their boundaries.  The                

16  board of the Michigan strategic fund may designate not more than            

17  1 of the  5 6 additional renaissance zones described in this               

18  subsection as an alternative energy zone.  An alternative energy            

19  zone shall promote and increase the research, development, and              

20  manufacturing of alternative energy technology as that term is              

21  defined in the Michigan next energy authority act.  An                      

22  alternative energy zone shall have a duration of renaissance zone           

23  status for a period not to exceed 20 years as determined by the             

24  board of the Michigan strategic fund.  Not later than  18 months            

25  after the effective date of the amendatory act that added                   

26  subsection (6) April 16, 2004, the board of the Michigan                   

27  strategic fund may designate not more than 1 of the  5 6

1   additional renaissance zones described in this subsection as a              

2   pharmaceutical renaissance zone.  A pharmaceutical renaissance              

3   zone shall promote and increase the research, development, and              

4   manufacturing of pharmaceutical products of an eligible                     

5   pharmaceutical company.  The board of the Michigan strategic fund           

6   may designate not more than 1 of the additional 6 renaissance               

7   zones described in this subsection as a redevelopment renaissance           

8   zone.  A redevelopment renaissance zone shall promote the                   

9   redevelopment of existing industrial facilities.  Before                    

10  designating a renaissance zone under this subsection, the board             

11  of the Michigan strategic fund may enter into a development                 

12  agreement with the city, township, or village in which the                  

13  renaissance zone will be located.

14      (3) In addition to the not more than 9 additional renaissance               

15  zones described in subsection (1), the board may designate                  

16  additional renaissance zones within this state in 1 or more                 

17  qualified local governmental units if that qualified local                  

18  governmental unit or units contain a military installation that             

19  was operated by the United States department of defense and was             

20  closed in 1977 or after 1990.                                               

21      (4) Land owned by a county or the qualified local                           

22  governmental unit or units adjacent to a zone as described in               

23  subsection (3) may be included in this zone.                                

24      (5) Notwithstanding any other provision of this act, property               

25  located in the alternative energy zone that is classified as                

26  commercial real property under section 34c of the general                   

27  property tax act, 1893 PA 206, MCL 211.34c, and that the                    

1   authority, with the concurrence of the assessor of the local tax            

2   collecting unit, determines is not used to directly promote and             

3   increase the research, development, and manufacturing of                    

4   alternative energy technology is not eligible for any exemption,            

5   deduction, or credit under section 9.                                       

6       (6) As used in this section:  , "eligible

7   (a) "Eligible pharmaceutical company" means a company that                  

8   meets all of the following criteria:                                        

9   (i)  (a)  Is engaged primarily in manufacturing, research and                        

10  development, and sale of pharmaceuticals.                                   

11  (ii)  (b)  Has not less than 8,500 employees located in this                 

12  state, all of whom are located within a 100-mile radius of each             

13  other.                                                                      

14  (iii)  (c)  Of the total number of employees located in this                 

15  state, has not less than 5,000 engaged primarily in research and            

16  development of pharmaceuticals.                                             

17  (b) "Redevelopment renaissance zone" means a renaissance zone               

18  that meets all of the following:                                            

19                                                                               (i) Is located in a city with a population of more than 7,500                       

20  and less than 8,500 and is located in a county with a population            

21  of more than 60,000 and less than 70,000.                                   

22      (ii) Contains an industrial site of 200 or more acres.