HB-6034, As Passed House, May 17, 2006
May 4, 2006, Introduced by Reps. Huizenga, Baxter, David Law, Pavlov, Emmons, Jones, Green, Wenke, Schuitmaker, Palsrok, Hildenbrand, Marleau, Dillon, Meisner, Tobocman, Murphy, Hunter, Plakas, Mayes, Condino, Byrum, Byrnes, Mortimer, Casperson, Moore, Proos, Acciavatti, Ball and Cheeks and referred to the Committee on Commerce.
A bill to amend 1995 PA 24, entitled
"Michigan economic growth authority act,"
by amending section 3 (MCL 207.803), as amended by 2006 PA 21.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Affiliated business" means a business that is 100% owned
and controlled by an associated business.
(b) "Associated business" means a business that owns at least
50% of and controls, directly or indirectly, an authorized
business.
(c) "Authorized business" means 1 of the following:
(i) A single eligible business with a unique federal employer
identification number that has met the requirements of section 8
and with which the authority has entered into a written agreement
for a tax credit under section 9.
(ii) A single eligible business with a unique federal employer
identification number that has met the requirements of section 8,
except as provided in this subparagraph, and with which the
authority has entered into a written agreement for a tax credit
under section 9. An eligible business is not required to create
qualified new jobs or maintain retained jobs if qualified new jobs
are created or retained jobs are maintained by an associated or
affiliated business.
(iii) A single eligible business with a unique federal employer
identification number that has met the requirements of section 8,
except as provided in this subparagraph, and with which the
authority has entered into a written agreement for a tax credit
under section 9. An eligible business is not required to create
qualified new jobs or maintain retained jobs if qualified new jobs
are created or retained jobs are maintained by a subsidiary
business that withholds income and social security taxes, or an
employee leasing company or professional employer organization that
has entered into a contractual service agreement with the
authorized business in which the employee leasing company or
professional employer organization withholds income and social
security taxes on behalf of the authorized business.
(d) "Authority" means the Michigan economic growth authority
created under section 4.
(e) "Business" means proprietorship, joint venture,
partnership, limited liability partnership, trust, business trust,
syndicate, association, joint stock company, corporation,
cooperative, limited liability company, or any other organization.
(f) "Distressed business" means a business that meets all of
the following as verified by the Michigan economic growth
authority:
(i) Four years immediately preceding the application to the
authority under this act, the business had 150 or more full-time
jobs in this state.
(ii) Within the immediately preceding 4 years, there has been a
reduction of not less than 30% of the number of full-time jobs in
this state during any consecutive 3-year period. The highest number
of full-time jobs within the consecutive 3-year period shall be
used in order to determine the percentage reduction of full-time
jobs in this subparagraph.
(iii) Is not a seasonal employer as defined in section 27 of the
Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.27.
(g) "Eligible business" means a distressed business or
business that proposes to maintain retained jobs after December 31,
1999 or to create qualified new jobs in this state after April 18,
1995 in manufacturing, mining, research and development, wholesale
and trade, or office operations or a business that is a qualified
high-technology business. An eligible business does not include
retail establishments, professional sports stadiums, or that
portion of an eligible business used exclusively for retail sales.
Professional sports stadium does not include a sports stadium in
existence on June 6, 2000 that is not used by a professional sports
team on the date that an application related to that professional
sports stadium is filed under section 8.
(h) "Facility" means a site or sites within this state in
which an authorized business or subsidiary businesses maintains
retained jobs or creates qualified new jobs.
(i)
"Full-time job" means a job performed by an individual
who is employed by an authorized business or an employee leasing
company or professional employer organization on behalf of the
authorized business for consideration for 35 hours or more each
week and for which the authorized business or an employee leasing
company or professional employer organization on behalf of the
authorized business withholds income and social security taxes.
(j) "Local governmental unit" means a county, city, village,
or township in this state.
(k) "High-technology activity" means 1 or more of the
following:
(i) Advanced computing, which is any technology used in the
design and development of any of the following:
(A) Computer hardware and software.
(B) Data communications.
(C) Information technologies.
(ii) Advanced materials, which are materials with engineered
properties created through the development of specialized process
and synthesis technology.
(iii) Biotechnology, which is any technology that uses living
organisms, cells, macromolecules, microorganisms, or substances
from living organisms to make or modify a product, improve plants
or animals, or develop microorganisms for useful purposes.
Biotechnology does not include human cloning as defined in section
16274 of the public health code, 1978 PA 368, MCL 333.16274, or
stem cell research with embryonic tissue.
(iv) Electronic device technology, which is any technology that
involves microelectronics, semiconductors, electronic equipment,
and instrumentation, radio frequency, microwave, and millimeter
electronics, and optical and optic-electrical devices, or data and
digital communications and imaging devices.
(v) Engineering or laboratory testing related to the
development of a product.
(vi) Technology that assists in the assessment or prevention of
threats or damage to human health or the environment, including,
but not limited to, environmental cleanup technology, pollution
prevention technology, or development of alternative energy
sources.
(vii) Medical device technology, which is any technology that
involves medical equipment or products other than a pharmaceutical
product that has therapeutic or diagnostic value and is regulated.
(viii) Product research and development.
(ix) Advanced vehicles technology, which is any technology that
involves electric vehicles, hybrid vehicles, or alternative fuel
vehicles, or components used in the construction of electric
vehicles, hybrid vehicles, or alternative fuel vehicles. For
purposes of this act:
(A) "Electric vehicle" means a road vehicle that draws
propulsion energy only from an on-board source of electrical
energy.
(B) "Hybrid vehicle" means a road vehicle that can draw
propulsion energy from both a consumable fuel and a rechargeable
energy storage system.
(x) Tool and die manufacturing.
(l) "New capital investment" means 1 or more of the following:
(i) New construction. As used in this subparagraph:
(A) "New construction" means property not in existence on the
date the authorized business enters into a written agreement with
the authority and not replacement construction. New construction
includes the physical addition of equipment or furnishings, subject
to section 27(2)(a) to (o) of the general property tax act, 1893 PA
206, MCL 211.27.
(B) "Replacement construction" means that term as defined in
section 34d(1)(b)(v) of the general property tax act, 1893 PA 206,
MCL 211.34d.
(ii) The purchase of new personal property. As used in this
subparagraph, "new personal property" means personal property that
is not subject to or that is exempt from the collection of taxes
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.157, on the date the authorized business enters into a written
agreement with the authority.
(m) "Qualified high-technology business" means a business or
facility that is either of the following:
(i) A business with not less than 25% of the total operating
expenses of the business used for research and development in the
tax year in which the business files an application under this act
as determined under generally accepted accounting principles and
verified by the authority.
(ii) A business or facility whose primary business activity is
high-technology activity.
(n) "Qualified new job" means 1 of the following:
(i) A full-time job created by an authorized business at a
facility that is in excess of the number of full-time jobs the
authorized business maintained in this state prior to the expansion
or location, as determined by the authority.
(ii) For jobs created after July 1, 2000, a full-time job at a
facility created by an eligible business that is in excess of the
number of full-time jobs maintained by that eligible business in
this state 120 days before the eligible business became an
authorized business, as determined by the authority.
(iii) For a distressed business, a full-time job at a facility
that is in excess of the number of full-time jobs maintained by
that eligible business in this state on the date the eligible
business became an authorized business.
(o) "Retained jobs" means the number of full-time jobs at a
facility of an authorized business maintained in this state on a
specific date as that date and number of jobs is determined by the
authority.
(p) "Rural business" means an eligible business located in a
county with a population of 80,000 or less.
(q) "Subsidiary business" means a business that is directly or
indirectly controlled or at least 80% owned by an authorized
business.
(r) "Written agreement" means a written agreement made
pursuant to section 8.