LDFA: AUDIT OF ELIGIBLE PROPERTY S.B. 816: COMMITTEE SUMMARY
[Please see the PDF version of this analysis, if available, to view this image.]






Senate Bill 816 (as introduced 9-26-07)
Sponsor: Senator Michelle A. McManus
Committee: Economic Development and Regulatory Reform


Date Completed: 3-19-08

CONTENT The bill would amend the Local Development Financing Act to delete a requirement for an annual audit of an authority whose district includes a small power production facility.
Under the Act, the Auditor General or a certified public accountant appointed by the Auditor General annually must audit the local district finance authority whose authority district includes eligible property to which Section 2(l)(iv) applies. Upon completion of the audit, the Auditor General must submit a report to the committees of the Senate and the House of Representatives primarily responsible for taxation and environmental protection issues. The Department of Natural Resource must biannually report to these committees and to the Auditor General the status of the remediation of the soil and groundwater contamination described in Section 2(l)(iv). Under the bill, these requirements would be deleted

(Under former Section 2(l)(iv), "eligible property" meant land improvements, buildings, structures, and other real property, and machinery, equipment, furniture, and fixtures, located within an authority district, whose primary purpose and use were the production of energy by the processing of goods or materials by physical or chemical change by a small power production facility as defined by the Federal Energy Regulatory Commission that is fueled primarily by biomass or wood waste. This provision applied only if requirements pertaining to tax increment financing and a special assessment district were met.)


MCL 125.21269 Legislative Analyst: Craig Laurie

FISCAL IMPACT
The bill would have no fiscal impact on State or local government.

Fiscal Analyst: Joe Carrasco Jessica Runnels

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb816/0708