HB-4818, As Passed Senate, December 13, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4818

     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  25 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 a period

of not  to exceed  less than 5 years and not more than 15 years as

determined by the board of the Michigan strategic fund. If the

Michigan strategic fund determines that the duration of renaissance

zone status for a recovery zone is less than 15 years, then the

Michigan strategic fund, with the consent of the city, village, or

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

the qualified tool and die business is located, may extend the

duration of renaissance zone status for the recovery zone for 1 or

more periods that when combined do not exceed 15 years.

     (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

of not less than 4 and not more than 20 qualified tool and die

businesses at the time of designation. If the board of the Michigan

strategic fund designated 1 or more recovery zones that contain

less than 20 qualified tool and die businesses before the effective

date of the amendatory act that added this sentence, the board of

the Michigan strategic fund may add additional qualified tool and

die businesses to that recovery zone subject to the limitations

contained in this subsection. A recovery zone shall consist of only

qualified tool and die business property. The board of the Michigan

strategic fund may combine existing recovery zones that are

comprised solely of tool and die businesses that are parties to the

same qualified collaborative agreement. Where 2 or more recovery

zones have been combined, the board of the Michigan strategic fund

may continue to designate additional recovery zones, provided that

no more than 25 tool and die recovery zones exist at 1 time.

     (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. A qualified tool and die

business may enter into another qualified collaborative agreement

once it is designated part of a recovery zone.

     (4) One or more qualified tool and die businesses subject to a

qualified collaborative agreement may merge into another group of

qualified tool and die businesses subject to a different qualified

collaborative agreement upon application to and approval by the

Michigan strategic fund.

     (5) A qualified tool and die business in a recovery zone may

have a different period of renaissance zone status than other

qualified tool and die businesses in the same recovery zone.

     (6) The board of the Michigan strategic fund may modify an

existing recovery zone to add 1 or more qualified tool and die

businesses with the consent of all other qualified tool and die

businesses that are participating in the recovery zone.

(7)  (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  consisting of not

fewer than 4 or more than 20 other business entities at the time of

designation that have a North American industrial classification

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

     (iii) Has  less  fewer than  50  75 full-time employees.

     (c) "Qualified tool and die business property" means 1 or more

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. Qualified tool and

die business property is used primarily for tool and die business

operations if the qualified tool and die businesses that own the

qualified tool and die business property generate 75% or more of

the qualified tool and die businesses' gross revenue from tool and

die operations that take place on the qualified tool and die

business property at the time of designation.

     (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. Qualified tool and die business property is used

primarily for tool and die business operations if the qualified

tool and die businesses that lease the qualified tool and die

business property generate 75% or more of the qualified tool and

die businesses' gross revenue from tool and die operations that

take place on the qualified tool and die business property at the

time of designation. The qualified tool and die business shall

furnish proof of its ad valorem property tax liability to the

department of treasury.

     (d) "Recovery zone" means a tool and die renaissance recovery

zone created in this section.