HB-4818, As Passed House, June 8, 2005

HOUSE BILL No. 4818

May 19, 2005, Introduced by Reps. Baxter, LaJoy, Pavlov, Huizenga, Nitz, Newell, Stewart, Stahl, Gosselin, Elsenheimer, Mortimer, Booher, Emmons, Nofs, Taub and Hildenbrand and referred to the Committee on Commerce.

A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending section 8d (MCL 125.2688d), as amended by 2004 PA 202.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 8d. (1) 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 20 tool and die

renaissance recovery 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 recovery zone within their boundaries. A recovery

zone shall have a duration of renaissance zone status ~~for~~ as

follows:

(a) For a period not to exceed 15 years as determined by the

board of the Michigan strategic fund.

House Bill No. 4818 as amended June 7, 2005

(b) For a period of 15 years, if the city, village, or

township, or combination of cities, villages, or townships in which

the qualified tool and die business is located, as a condition of

granting its consent under this subsection [as detailed in a written

agreement], retains the right to

revoke the recovery zone designation for a qualified tool and die

business in the fifth year and tenth year following the year the

recovery zone designation was made if the city, village, or

township, or combination of cities, villages, or townships

determines that [the qualified tool and die business has violated 1

or more terms of the written agreement and the board of the Michigan

strategic fund concurs with that determination.]

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

recovery zone within this state if the recovery zone consists only

of 1 or more parcels of qualified tool and die business property.

(3) The board of the Michigan strategic fund may revoke the

designation of all or a portion of a recovery zone with respect to

1 or more qualified tool and die businesses if those qualified tool

and die businesses fail or cease to participate in or comply with a

qualified collaborative agreement.

(4) As used in this section:

(a) "Qualified collaborative agreement" means an agreement

that demonstrates synergistic opportunities, including, but not

limited to, all of the following:

(i) Sales and marketing efforts.

(ii) Development of standardized processes.

(iii) Development of tooling standards.

(iv) Standardized project management methods.

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

develop expertise and compete successfully on larger programs.

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

that meets all of the following:

(i) Has a North American industrial classification system

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

North American industrial classification system (NAICS) of 337215

and operates a facility within an existing renaissance zone, which

facility is adjacent to real property not located in a renaissance

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

education center.

(ii) Has entered into a qualified collaboration agreement as

approved by the Michigan strategic fund with other business

entities that have a North American industrial classification

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

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

of the following:

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

businesses and used by those qualified tool and die businesses

primarily for tool and die business operations.

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

business for which the qualified tool and die business is liable

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

tool and die businesses primarily for tool and die business

operations. The qualified tool and die business shall furnish proof

of its ad valorem property tax liability to the department of

treasury.