SB-0371, As Passed Senate, April 27, 2005

SUBSTITUTE FOR

SENATE BILL NO. 371

     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  21 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

not to exceed 15 years as determined by the board of the Michigan

strategic fund. Not less than 1 of the recovery zones shall consist

of 1 or more qualified tool and die businesses that have a North

American industrial classification system (NAICS) of 332997.

     (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, at the

request of 1 or more qualified tool and die businesses that are

part of a qualified collaborative agreement, modify the qualified

collaborative agreement and may add 1 or more new qualified tool

and die businesses to the qualified collaborative agreement.

(4)  (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.

(5)  (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 332997, 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 332997, 333511, 333512, 333513, 333514, or

333515.

     (iii) Has  less  fewer than 50 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.

     (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.

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

zone created in this section.