December 1, 2005, Introduced by Senators SIKKEMA and HARDIMAN and referred to the Committee on Commerce and Labor.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 6 and 8a (MCL 125.2686 and 125.2688a), as
amended by 2004 PA 430.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) The board shall review all recommendations
submitted by the review board and determine which applications meet
the criteria contained in section 7.
(2) The board shall do all of the following:
(a) Designate renaissance zones.
(b) Subject to subsection (3), approve or reject the duration
of renaissance zone status.
(c) Subject to subsection (3), approve or reject the
geographic boundaries and the total area of the renaissance zone as
submitted in the application.
(3) The board shall not alter the geographic boundaries of the
renaissance zone or the duration of renaissance zone status
described in the application unless the qualified local
governmental unit or units and the local governmental unit or units
in which the renaissance zone is to be located consent by
resolution to the alteration.
(4) The board shall not designate a renaissance zone under
section 8 before November 1, 1996 or after December 31, 1996.
(5) The designation of a renaissance zone under this act shall
take effect on January 1 in the year following designation.
However, for purposes of the taxes exempted under section 9(2), the
designation of a renaissance zone under this act shall take effect
on December 31 in the year of designation.
(6) The board shall not designate a renaissance zone under
section 8a after December 31, 2002.
(7) Through December 31, 2002, a qualified local governmental
unit in which a renaissance zone was designated under section 8 or
8a may modify the boundaries of that renaissance zone to include
contiguous parcels of property as determined by the qualified local
governmental unit and approval by the review board. The additional
contiguous parcels of property included in a renaissance zone under
this subsection do not constitute an additional distinct geographic
area under section 4(1)(d). If the boundaries of the renaissance
zone are modified as provided in this subsection, the additional
contiguous parcels of property shall become part of the original
renaissance zone on the same terms and conditions as the original
designation of that renaissance zone.
(8) Notwithstanding any other provisions of this act, before
July 1, 2004, a qualified local governmental unit in which a
renaissance zone was designated under section 8a(1) as a
renaissance zone located in a rural area may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than .5 acres in size and that the qualified local
governmental unit previously sought to have included in the zone by
submitting an application in February 2002 that was not acted upon
by the review board. The additional contiguous parcel of property
included in a renaissance zone under this subsection does not
constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(9) A business that is located and conducts business activity
within a renaissance zone designated under section 8(1) and (2),
8a(1) and (3), 8c(1), or 8d(1) shall not make a payment in lieu of
taxes to any taxing jurisdiction within the qualified local
governmental unit in which the renaissance zone is located.
(10) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of less than 50 contiguous acres but more than 20
contiguous acres was designated under section 8 or 8a as a
renaissance zone in a city located in a county with a population of
more than 160,000 and less than 170,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
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 6 7
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
6 7 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 6 7
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 1 2 of the additional
6
7 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 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 5,000 engaged primarily in research and
development of pharmaceuticals.
(b) "Redevelopment renaissance zone" means a renaissance zone
that
meets all 1
of the following:
(i) All of the following:
(A) (i) 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) (ii) 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
185,000 and less than 200,000.
(B) Contains an industrial site of 150 or more acres.