SB-0774, As Passed House, September 25, 2007
SUBSTITUTE FOR
SENATE BILL NO. 774
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending sections 8, 9, and 10 (MCL 207.628, 207.629, and
207.630), section 8 as amended by 1993 PA 58 and section 9 as
amended by 2005 PA 312.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) The collections from the tax imposed by section 4
shall be deposited in the state treasury, to the credit of the
convention facility development fund, which is hereby created
within
the state treasury. Collections from the additional tax on
spirits
imposed pursuant to the tourism
and convention facility
promotion
tax act, Act No. 107 of the Public Acts of 1985, being
sections
436.141 to 436.148 of the Michigan Compiled Laws under
section 1207 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.2207, shall also be deposited to the credit of the
convention facility development fund.
(2) The convention facility development fund shall be
distributed for certain state purposes and to local governmental
units for use only for 1 or more of the following purposes:
(a) Acquiring, constructing, improving, enlarging, renewing,
replacing, or leasing a convention facility.
(b) In conjunction with an activity listed in subdivision (a),
repairing, furnishing, and equipping the convention facility.
(c) Refinancing an activity listed in subdivision (a) or (b).
(d) General fund expenditures.
(3) A contract made by a local governmental unit for the
purposes included in subsection (2)(a) or (b) concerning a
convention facility funded by distributions pursuant to section 9
shall contain a guaranteed maximum price for the total cost of
activities conducted for these purposes pursuant to that contract.
Sec. 9. (1) On or before the thirtieth day of each month, the
state treasurer shall make a distribution from the convention
facility development fund to a qualified local governmental unit.
The distribution shall be an amount equal to the sum of the
collections from the excise tax levied for accommodations under
this act for the previous month from the convention hotels in the
county in which the convention facility is or is to be located and
in any county in which convention hotels are located that is
contiguous to the county in which the convention facility is
located, or is to be located, and the additional tax imposed under
section 1207 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.2207, for the previous month received in the fund.
However, distributions for any state fiscal year to any qualified
local governmental unit shall not exceed an amount equal to the
amount pledged, assigned, or dedicated by the qualified local
governmental unit pursuant to section 11 for the payment during
that state fiscal year of bonds, obligations, or other evidences of
indebtedness incurred for the purposes specified in this act, plus
any amount necessary to maintain a fully funded debt reserve or
other reserves intended to secure the principal and interest on the
bonds, obligations, or other evidences of indebtedness as contained
in the resolution or ordinance authorizing their issuance.
(2) Notwithstanding the distributions provided by subsection
(1), if a local governmental unit becomes a qualified local
governmental unit entitled to receive distributions from the tax
imposed under section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, or from the tax imposed by this act
in counties in which the convention facility is located or in a
county in which a convention hotel is located that is contiguous to
the county in which the convention facility is located, no other
qualified local governmental unit is entitled to distributions
pursuant to this section for which that qualified local
governmental unit has previously become entitled.
(3) As used in this act, "qualified local governmental unit"
means a city, village, township, county, or authority that is
located in a county in which convention hotels are located and that
either is the owner or lessee of a convention facility with 350,000
square feet or more of total exhibit space on July 30, 1985 or, if
such a convention facility does not exist, will be the owner or
lessee of a convention facility with 350,000 square feet or more of
total exhibit space through the application of distributions under
this section to the purchase or lease of a convention facility.
(4) Notwithstanding any other provision of this act, after the
distributions under subsection (1), and before any distributions
under section 10, for fiscal year 2004-2005 only, $1,075,000.00
shall be distributed to the state sports tourism fund. The money
distributed to the state sports tourism fund described in this
subsection, including any funds appropriated in fiscal year 2005-
2006 from the state convention facility development fund, shall be
deducted from the money described in section 10(2)(a) before any
distribution is made under section 10(2)(a).
(5) The state sports tourism fund is created within the state
treasury.
(6) The state treasurer may receive money or other assets from
any source for deposit into the state sports tourism fund. The
state treasurer shall direct the investment of the state sports
tourism fund. The state treasurer shall credit to the state sports
tourism fund interest and earnings from the state sports tourism
fund investments.
(7) Money in the state sports tourism fund at the close of the
fiscal year shall remain in the state sports tourism fund and shall
not lapse to the general fund. However, money remaining in the fund
on September 30, 2006, shall lapse to the convention facility
development fund.
(8) The department of treasury shall expend money from the
state sports tourism fund, upon appropriation, only for grants to
Super Bowl XL host committee functions related to hosting, staging,
or execution of Super Bowl XL activities or to reimburse a county
not more than $500,000.00 for contributions or grants already made
to the Super Bowl XL host committee for functions related to
hosting, staging, or execution of Super Bowl XL activities. Money
shall not be distributed to the state sports tourism fund that
impairs obligations, bonds, or other evidences of indebtedness
issued under this act.
(9) The department of treasury shall expend money from the
state sports tourism fund, upon appropriation of not more than
$1,000,000.00, for Super Bowl XL host committee functions related
to security operations of Super Bowl XL activities. Money shall not
be distributed to the state sports tourism fund that impairs
obligations, bonds, or other evidences of indebtedness issued under
this act.
(10) Notwithstanding any other provision of this act, after
the distributions under subsection (1) and before any distributions
under section 10, for the fiscal year ending September 30, 2007
only, $35,000,000.00 is transferred to the general fund and is
appropriated for general fund expenditures.
Sec. 10. (1) Any money remaining in the convention facility
development
fund at the end of the state fiscal year that is not
used for the bonds, obligations, or other evidences of indebtedness
described
in section 9 shall be transferred to
the general fund of
the
state treasury to be distributed in
the next state fiscal year
pursuant to subsection (2).
(2)
Money transferred from in the convention facility
development
fund to the general fund pursuant to subsection (1)
shall be distributed as provided in subsection (4) in the following
order of priority in the following amounts:
(a) An amount equal to the difference, if any, between the tax
imposed
pursuant to under this act in the preceding state fiscal
year
that is designated pursuant to under section 9 to a qualified
local
governmental unit and the tax imposed pursuant to under
this
act
that is designated pursuant to under section 9 in the state
fiscal
year prior to immediately
preceding the preceding state
fiscal year for the same local governmental unit shall be
distributed
to that local governmental unit. This subdivision shall
does not apply unless a tax has been imposed under this act in the
entire 2 state fiscal years immediately preceding the state fiscal
year in which a distribution under this subdivision is made. Any
amount
distributed pursuant to under this subdivision shall be used
by the local governmental unit only for the retirement of
outstanding bonds, obligations, or other evidences of indebtedness
incurred
for which distributions pursuant to under section 9 are
pledged. A distribution under this subdivision shall not be made to
the extent that the obligations, bonds, or other evidences of
indebtedness cannot be retired or are not outstanding.
(b)
Of the money transferred pursuant to subsection (1) and
remaining
after distributions under subdivision (a), an An amount
equal
to that portion of the liquor tax collected pursuant to the
convention
facility promotion tax act under
section 1207 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
from licensees in counties in which convention hotels are not
located shall be distributed to those counties in which convention
hotels are not located in the same proportion that the amount of
tax
collected pursuant to the convention facility promotion tax act
under section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year from
the licensees in a county bears to the total tax collections
pursuant
to the convention facility promotion tax act under section
1207 of the Michigan liquor control code of 1998, 1998 PA 58, MCL
436.2207, in the preceding state fiscal year from all counties in
which convention hotels are not located.
(c)
The remaining money transferred pursuant to subsection (1)
available after distributions under subdivisions (a) and (b) shall
be distributed to each county in the following amounts:
(i) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding
state fiscal year under the convention facility promotion
tax
act section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, from licensees in counties in which
convention hotels are not located shall be distributed to each
county in which convention hotels are not located in the same
proportion
that the amount of tax collected pursuant to the
convention
facility promotion tax act section
1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, in the
preceding state fiscal year from licensees in that county bears to
the
total tax collections from the convention facility promotion
tax
act section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year from
all counties in which convention hotels are not located.
(ii) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding
state fiscal year under the convention facility promotion
tax
act section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, from licensees in counties in which
convention hotels are located shall be distributed to each county
in which convention hotels are located in the same proportion that
the
amount of tax collected pursuant to the convention facility
promotion
tax act section 1207 of the Michigan liquor control code
of 1998, 1998 PA 58, MCL 436.2207, in the preceding state fiscal
year from licensees in that county bears to the total tax
collections
from the convention facility promotion tax act section
1207 of the Michigan liquor control code of 1998, 1998 PA 58, MCL
436.2207, in the preceding state fiscal year from all counties in
which convention hotels are located. However, in the calculation of
the proportion represented by a county's share of distributions
under this subparagraph, the amount of the tax collected from
licensees in the qualified local governmental unit that received
distributions under section 9 in the last state fiscal year shall
not be included.
(3) A distribution to a county pursuant to this section shall
be included for purposes of the calculations required to be made by
section
24e of the general property tax act, Act No. 206 of the
Public
Acts of 1893, being section 211.24e of the Michigan Compiled
Laws
1893 PA 206, MCL 211.24e. If the governing body of a taxing
unit approves the additional millage rate under section 24e of the
general
property tax act, Act No. 206 of the Public Acts of 1893
1893 PA 206, MCL 211.24e, which is due to distributions pursuant to
this section, then an amount equal to 50% of the distribution under
this section shall be used for substance abuse treatment within the
taxing unit.
(4) Beginning October 1, 2007 and each year thereafter, from
the revenue collected during the previous quarter, after
distributing the monthly payments under section 9(1), the state
treasurer shall make quarterly distributions under subsection
(2)(b) and (c). From the revenue collected in the last quarter of
the state fiscal year, the state treasurer shall make the
distribution under subsection (2)(a) prior to any distributions
under subsection (2)(b) and (c).