SB-1078, As Passed House, June 21, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1078

     A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

(MCL 125.2681 to 125.2696) by adding section 8e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8e. (1) The board, upon recommendation of the board of

the Michigan strategic fund defined in section 4 of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2004, may designate not

more than 10 additional renaissance zones for renewable energy

facilities 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 for a renewable energy facility within their

boundaries.

     (2) Each renaissance zone designated for a renewable energy

facility under this section shall be 1 continuous distinct

geographic area.

     (3) The board may revoke the designation of all or a portion

of a renaissance zone for a renewable energy facility if the board

determines that the renewable energy facility does 1 or more of the

following in a renaissance zone designated under this section:

     (a) Fails to commence operation.

     (b) Ceases operation.

     (c) Fails to commence construction or renovation within 1 year

from the date the renaissance zone for the renewable energy

facility is designated.

     (4) When designating a renaissance zone for a renewable energy

facility, the board shall consider all of the following:

     (a) The economic impact on local suppliers who supply raw

materials, goods, and services to the renewable energy facility.

     (b) The creation of jobs relative to the employment base of

the community rather than the static number of jobs created.

     (c) The viability of the project.

     (d) The economic impact on the community in which the

renewable energy facility is located.

     (e) All other things being equal, giving preference to a

business entity already located in this state.

     (f) Whether the renewable energy facility can be located in an

existing renaissance zone designated under section 8 or 8a.

     (5) Beginning on the effective date of the amendatory act that

added this subsection, the board shall require a development

agreement between the Michigan strategic fund and the renewable

energy facility.

     (6) Until the maximum number of additional renaissance zones

for renewable energy facilities described in subsection (1) is met,

if the board designates a renaissance zone under this section,

section 8c, or section 8f for a facility that is a forest products

processing facility or an agricultural processing facility and that

also meets the definition of a renewable energy facility, then the

board shall only designate that renaissance zone as a renaissance

zone for a renewable energy facility under this section.

     (7) As used in this section, "development agreement" means a

written agreement between the Michigan strategic fund and the

renewable energy facility that includes, but is not limited to, all

of the following:

     (a) A requirement that the renewable energy facility comply

with all state and local laws.

     (b) A requirement that the renewable energy facility report

annually to the Michigan strategic fund on all of the following:

     (i) The amount of capital investment made at the facility.

     (ii) The number of individuals employed at the facility at the

beginning and end of the reporting period as well as the number of

individuals transferred to the facility from another facility owned

by the renewable energy facility.

     (iii) The percentage of raw materials purchased in this state.

     (c) Any other conditions or requirements reasonably required

by the Michigan strategic fund.