SB-1148, As Passed Senate, December 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1148

     A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending section 8a (MCL 125.2688a), as amended by 2006 PA 440.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     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  10  13 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  10  13

additional renaissance zones described in this subsection as an

alternative energy zone. An alternative energy zone shall promote

and increase the research, development, testing, and manufacturing

of alternative energy technology, alternative energy systems, and

alternative energy vehicles, as  that term is  those terms are

defined in the Michigan next energy authority act, 2002 PA 593, MCL

207.821 to 207.827. 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  10  13 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  5

8 of the additional  10  13 renaissance zones described in this

subsection as a redevelopment renaissance zone. A redevelopment

renaissance zone shall promote the redevelopment of existing

industrial facilities or the development of property for industrial

purposes. 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 and the owner or

developer of the facility or property located in the renaissance

zone. The development agreement for a redevelopment renaissance

zone described only in subsection (6)(b)(vi) or (vii) may provide for

the payment of 1 or more of the taxes described in section 9.

     (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, testing, and manufacturing of alternative

energy technology, alternative energy systems, and alternative

energy vehicles as those terms are defined in the Michigan next

energy authority act, 2002 PA 593, MCL 207.821 to 207.827, 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  8,499 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 4,800 engaged primarily in research and

development of pharmaceuticals.

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

that meets 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) Contains only all or a portion of 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 only all or a portion of 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 only all or a portion of 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 only all or a portion of 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 only all or a portion of an industrial site of

less than 45 acres in size.

     (vi) All of the following:

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

190,000 and less than 250,000 and is located in a county with a

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

     (B) Contains only all or a portion of an industrial site of

more than 14 acres and less than 16 acres in size.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2007.

     (vii) All of the following:

     (A) Is located in a city with a population of more than 35,500

and less than 36,800 and is located in a county with a population

of more than 157,000 and less than 162,000.

     (B) Contains only all or a portion of an industrial site

comprised of 1 or more adjacent parcels totaling 5 or more acres.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2007.

     (viii) 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 only all or a portion of an industrial site

composed of 1 or more adjacent parcels totaling 100 or more acres.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2008.