SB-0922, As Passed Senate, March 30, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 922

     A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

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

amended by 2004 PA 430.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

submitted by the review board and determine which applications meet

the criteria contained in section 7.

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

     (a) Designate renaissance zones.

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

of renaissance zone status.

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

geographic boundaries and the total area of the renaissance zone as

submitted in the application.

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

renaissance zone or the duration of renaissance zone status

described in the application unless the qualified local

governmental unit or units and the local governmental unit or units

in which the renaissance zone is to be located consent by

resolution to the alteration.

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

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

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

take effect on January 1 in the year following designation.

However, for purposes of the taxes exempted under section 9(2), the

designation of a renaissance zone under this act shall take effect

on December 31 in the year of designation.

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

section 8a after December 31, 2002.

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

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

8a may modify the boundaries of that renaissance zone to include

contiguous parcels of property as determined by the qualified local

governmental unit and approval by the review board. The additional

contiguous parcels of property included in a renaissance zone under

this subsection do not constitute an additional distinct geographic

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

zone are modified as provided in this subsection, the additional

contiguous parcels of property shall become part of the original

renaissance zone on the same terms and conditions as the original

designation of that renaissance zone.

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

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

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

renaissance zone located in a rural area may modify the boundaries

of that renaissance zone to include a contiguous parcel of property

as determined by the qualified local governmental unit. The

contiguous parcel of property shall only include property that is

less than .5 acres in size and that the qualified local

governmental unit previously sought to have included in the zone by

submitting an application in February 2002 that was not acted upon

by the review board. The additional contiguous parcel of property

included in a renaissance zone under this subsection does not

constitute an additional distinct geographic area under section

4(1)(d). If the boundaries of the renaissance zone are modified as

provided in this subsection, the additional contiguous parcel of

property shall become part of the original renaissance zone on the

same terms and conditions as the rest of the property in that

renaissance zone.

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

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

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

taxes to any taxing jurisdiction within the qualified local

governmental unit in which the renaissance zone is located.

     (10) Notwithstanding any other provisions of this act, before

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of less than 50 contiguous acres but more than 20

contiguous acres was designated under section 8 or 8a as a

renaissance zone in a city located in a county with a population of

more than 160,000 and less than 170,000 may modify the boundaries

of that renaissance zone to include a contiguous parcel of property

as determined by the qualified local governmental unit. The

contiguous parcel of property shall only include property that is

less than 12 acres in size. The additional contiguous parcel of

property included in a renaissance zone under this subsection does

not constitute an additional distinct geographic area under section

4(1)(d). If the boundaries of the renaissance zone are modified as

provided in this subsection, the additional contiguous parcel of

property shall become part of the original renaissance zone on the

same terms and conditions as the rest of the property in that

renaissance zone.

     (11) Notwithstanding any other provisions of this act, before

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of more than 500 acres was designated under

section 8 or 8a as a renaissance zone in a county with a population

of more than 61,000 and less than 64,000 may modify the boundaries

of that renaissance zone to include a contiguous parcel of property

as determined by the qualified local governmental unit. The

contiguous parcel of property shall only include property that is

less than 12 acres in size. The additional contiguous parcel of

property included in a renaissance zone under this subsection does

not constitute an additional distinct geographic area under section

4(1)(d). If the boundaries of the renaissance zone are modified as

provided in this subsection, the additional contiguous parcel of

property shall become part of the original renaissance zone on the

same terms and conditions as the rest of the property in that

renaissance zone.

     (12) Notwithstanding any other provisions of this act, before

July 1, 2006, a qualified local governmental unit in which a

renaissance zone of more than 137 acres was designated under

section 8 or 8a as a renaissance zone in a county with a population

of more than 61,000 and less than 63,000 may modify the boundaries

of that renaissance zone to include a parcel of property that is

separated from the existing renaissance zone by a roadway as

determined by the qualified local governmental unit. The parcel of

property shall only include property that is less than 67 acres in

size. The additional contiguous parcel of property included in a

renaissance zone under this subsection does not constitute an

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

boundaries of the renaissance zone are modified as provided in this

subsection, the additional contiguous parcel of property shall

become part of the original renaissance zone on the same terms and

conditions as the rest of the property in that renaissance zone.

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

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

renaissance zones within this state under this section. Not more

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

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

areas. For purposes of determining whether a renaissance zone is

located in an urban area or rural area under this section, if any

part of a renaissance zone is located within an urban area, the

entire renaissance zone shall be considered to be located in an

urban area.

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

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

125.2004, may designate not more than  6  10 additional renaissance

zones within this state in 1 or more cities, villages, or townships

if that city, village, or township or combination of cities,

villages, or townships consents to the creation of a renaissance

zone within their boundaries. The board of the Michigan strategic

fund may designate not more than 1 of the  6  10 additional

renaissance zones described in this subsection as an alternative

energy zone. An alternative energy zone shall promote and increase

the research, development, and manufacturing of alternative energy

technology as that term is defined in the Michigan next energy

authority act. An alternative energy zone shall have a duration of

renaissance zone status for a period not to exceed 20 years as

determined by the board of the Michigan strategic fund. Not later

than April 16, 2004, the board of the Michigan strategic fund may

designate not more than 1 of the  6  10 additional renaissance

zones described in this subsection as a pharmaceutical renaissance

zone. A pharmaceutical renaissance zone shall promote and increase

the research, development, and manufacturing of pharmaceutical

products of an eligible pharmaceutical company. The board of the

Michigan strategic fund may designate not more than  1  5 of the

additional  6  10 renaissance zones described in this subsection as

a redevelopment renaissance zone. A redevelopment renaissance zone

shall promote the redevelopment of existing industrial facilities.

Before designating a renaissance zone under this subsection, the

board of the Michigan strategic fund may enter into a development

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

renaissance zone will be located.

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

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

additional renaissance zones within this state in 1 or more

qualified local governmental units if that qualified local

governmental unit or units contain a military installation that was

operated by the United States department of defense and was closed

in 1977 or after 1990.

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

unit or units adjacent to a zone as described in subsection (3) may

be included in this zone.

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

located in the alternative energy zone that is classified as

commercial real property under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the

concurrence of the assessor of the local tax collecting unit,

determines is not used to directly promote and increase the

research, development, and manufacturing of alternative energy

technology is not eligible for any exemption, deduction, or credit

under section 9.

     (6) As used in this section:

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

meets all of the following criteria:

     (i) Is engaged primarily in manufacturing, research and

development, and sale of pharmaceuticals.

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

all of whom are located within a 100-mile radius of each other.

     (iii) Of the total number of employees located in this state,

has not less than  5,000  4,800 engaged primarily in research and

development of pharmaceuticals.

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

that meets  all  1 of the following:

     (i) All of the following:

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

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

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

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

     (ii) All of the following:

     (A) Is located in a city with a population of more than 13,000

and less than 14,000 and is located in a county with a population

of more than 1,000,000 and less than 1,300,000.

     (B) Contains an industrial site of 300 or more contiguous

acres.

     (iii) All of the following:

     (A) Is located in a township with a population of more than

5,500 and is located in a county with a population of less than

24,000.

     (B) Contains an industrial site of more than 850 acres and has

railroad access.

     (iv) All of the following:

     (A) Is located in a city with a population of more than 40,000

and less than 44,000 and is located in a county with a population

of more than 81,000 and less than 87,000.

     (B) Contains an industrial site of more than 475 acres.

     (v) All of the following:

     (A) Is located in a city with a population of more than 21,000

and less than 26,000 and is located in a county with a population

of more than 573,000 and less than 625,000.

     (B) Contains an industrial site of less than 45 acres in size.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5640 of the 93rd Legislature is enacted into

law.