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HB-5942, As Passed Senate, September 20, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5942

A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending sections 4, 8a, and 11 (MCL 125.2684, 125.2688a, and

125.2691), section 4 as amended by 2002 PA 477 and section 8a as

amended by 2006 PA 116.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) One or more qualified local governmental units may

apply to the review board to designate the qualified local

governmental unit or units as a renaissance zone if all of the

following criteria are met:

(a) The geographic area of the proposed renaissance zone is

located within the boundaries of the qualified local governmental

unit or units that apply.

House Bill No. 5942 as amended September 20, 2006

(b) The application includes a development plan.

in size.

(d) The renaissance zone does not contain more than 10

distinct geographic areas. Except as otherwise provided in this

subdivision, the minimum size of a distinct geographic area is not

less than 5 acres. A qualified local governmental unit or units may

designate not more than 4 distinct geographic areas in each

renaissance zone to have no minimum size requirement.

(e) The application includes the proposed duration of

renaissance zone status, not to exceed 15 years, except as

otherwise provided in this section.

(f) If the qualified local governmental unit has an elected

county executive, the county executive's written approval of the

application.

(g) If the qualified local governmental unit is a city, that

city's mayor's written approval of the application.

(2) A qualified local governmental unit may submit not more

than 1 application to the review board for designation as a

renaissance zone. A resolution provided by a city, village, or

township under section 7(2) does not constitute an application of a

city, village, or township for a renaissance zone under this act.

(3) For a distinct geographic area described in subsection

(1)(d), a village may include publicly owned land within the

boundaries of any distinct geographic area.

(4) <<~~Through~~ ~~December 31, 2002~~, BEGINNING DECEMBER 1, 2006 THROUGH DECEMBER 31, 2011,>> a qualified local governmental

unit or units in which a renaissance zone was designated under

House Bill No. 5942 as amended September 20, 2006

section 8 or <<8a 8A(1) OR (3)>> may designate additional distinct

geographic areas

not to exceed a total of 10 distinct geographic areas upon

application to and approval by the board <<OF THE MICHIGAN STRATEGIC FUND

IF THE DISTINCT GEOGRAPHIC AREA IS LOCATED IN AN ELIGIBLE DISTRESSED AREA

AS DEFINED IN SECTION 11 OF THE STATE HOUSING DEVELOPMENT AUTHORITY ACT

OF 1966, 1966 PA 346, MCL 125.1411, OR IS CONTIGUOUS TO AN ELIGIBLE

DISTRESSED AREA, AND IF THE ADDITIONAL DISTINCT GEOGRAPHIC AREA WILL

INCREASE CAPITAL INVESTMENT AND JOB CREATION>>. The duration of

renaissance zone status for the additional distinct geographic

areas shall not exceed 15 years. ~~except as provided in subsection~~

~~(5).~~

(5) If Through December 31, 2002, if a qualified local

governmental unit or units designate additional distinct geographic

areas in a renaissance zone under subsection (4), the qualified

local governmental unit or units may extend the duration of the

renaissance zone status of 1 or more distinct geographic areas in

that renaissance zone until 2017 upon application to and approval

by the board.

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

unit or units in which a renaissance zone was designated under

section 8 or 8a may, upon application to and approval by the board,

seek to extend the duration of renaissance zone status until 2017.

Upon application, the board may extend the duration of renaissance

zone status.

(7) Through December 31, 2011, a qualified local governmental

unit or units in which a renaissance zone was designated under

section 8 or 8a(1) or (3) that has not experienced significant

development may, upon application to and approval by the board of

the Michigan strategic fund, seek to extend the duration of

renaissance zone status for 1 or more portions of the renaissance

zone. The board of the Michigan strategic fund may extend

renaissance zone status for 1 or more portions of the renaissance

zone under this subsection for a period of time not to exceed 15

years from the date of the application to the board of the Michigan

strategic fund under this subsection.

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 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 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 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 5 of the additional 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~~ 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 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.

Sec. 11. The form of the application for a renaissance zone

designation shall be as specified by the Michigan ~~jobs commission~~

strategic fund. After the form of the application is specified by

the Michigan ~~jobs commission~~ strategic fund, the Michigan ~~jobs~~

~~commission~~ strategic fund shall file a copy of the application

with each house of the legislature. The board may request any

information from an applicant, in addition to that contained in an