HOUSE BILL No. 6503

 

September 24, 2008, Introduced by Rep. Byrnes and referred to the Committee on New Economy and Quality of Life.

 

     A bill to amend 1986 PA 281, entitled

 

"The local development financing act,"

 

by amending sections 3 and 4 (MCL 125.2153 and 125.2154), section 3

 

as amended by 2000 PA 248 and section 4 as amended by 2005 PA 15.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) Except as otherwise provided by subsection (2), a

 

municipality may establish not more than 1 authority under the

 

provisions of this act. An authority established under this

 

subsection shall exercise its powers in all authority districts.

 

     (2) In addition to an authority established under subsection

 

(1), a municipality may join with 1 or more other municipality

 

located within the same county to establish an authority under this

 

act. An authority created under this subsection may only exercise


 

its powers in a certified technology park designated in an

 

agreement made under section 12a. A municipality shall not

 

establish more than 1 authority under this subsection.

 

     (3) An aerotropolis development corporation may establish not

 

more than 1 authority under the provisions of this act. An

 

authority established under this subsection shall exercise its

 

powers within its authority district and in all aerotropolis

 

development areas. The authority district in which the authority

 

may exercise its powers shall include all or part of the territory

 

of an aerotropolis development corporation, as determined by the

 

governing body of the aerotropolis development corporation.

 

     (4) (3) The authority shall be a public body corporate which

 

may sue and be sued in any court of this state. The authority

 

possesses all the powers necessary to carry out the purpose of its

 

incorporation. The enumeration of a power in this act shall not be

 

construed as a limitation upon the general powers of the authority.

 

The powers granted in this act to an authority may be exercised

 

notwithstanding that bonds are not issued by the authority.

 

     Sec. 4. (1) The governing body of a municipality may declare

 

by resolution adopted by a majority of its members elected and

 

serving its intention to create and provide for the operation of an

 

authority.

 

     (2) In the resolution of intent, the governing body proposing

 

to create the authority shall set a date for holding a public

 

hearing on the adoption of a proposed resolution creating the

 

authority and designating the boundaries of the authority district

 

or districts. Notice of the public hearing shall be published twice


 

in a newspaper of general circulation in the municipality, not less

 

than 20 nor more than 40 days before the date of the hearing. Not

 

less than 20 days before the hearing, the governing body proposing

 

to create the authority shall also mail notice of the hearing to

 

the property taxpayers of record in a proposed authority district

 

and, for a public hearing to be held after February 15, 1994, to

 

the governing body of each taxing jurisdiction levying taxes that

 

would be subject to capture if the authority is established and a

 

tax increment financing plan is approved. Beginning June 1, 2005,

 

the notice of hearing within the time frame described in this

 

subsection shall be mailed by certified mail to the governing body

 

of each taxing jurisdiction levying taxes that would be subject to

 

capture if the authority is established and a tax increment

 

financing plan is approved. Failure of a property taxpayer to

 

receive the notice shall not invalidate these proceedings. The

 

notice shall state the date, time, and place of the hearing, and

 

shall describe the boundaries of the proposed authority district or

 

districts. At that hearing, a resident, taxpayer, or property owner

 

from a taxing jurisdiction in which the proposed district is

 

located or an official from a taxing jurisdiction with millage that

 

would be subject to capture has the right to be heard in regard to

 

the establishment of the authority and the boundaries of that

 

proposed authority district. The governing body of the municipality

 

in which a proposed district is to be located shall not incorporate

 

land into an authority district not included in the description

 

contained in the notice of public hearing, but it may eliminate

 

lands described in the notice of public hearing from an authority


 

district in the final determination of the boundaries.

 

     (3) Not Except as otherwise provided in subsection (8), not

 

more than 60 days after a public hearing held after February 15,

 

1994, the governing body of a taxing jurisdiction with millage that

 

would otherwise be subject to capture may exempt its taxes from

 

capture by adopting a resolution to that effect and filing a copy

 

with the clerk of the municipality proposing to create the

 

authority. However, a resolution by a governing body of a taxing

 

jurisdiction to exempt its taxes from capture is not effective for

 

the capture of taxes that are used for a certified technology park.

 

The resolution takes effect when filed with that clerk and remains

 

effective until a copy of a resolution rescinding that resolution

 

is filed with that clerk.

 

     (4) Not Except as otherwise provided in subsection (8), not

 

less than 60 days after the public hearing, if the governing body

 

creating the authority intends to proceed with the establishment of

 

the authority, it shall adopt, by majority vote of its members

 

elected and serving, a resolution establishing the authority and

 

designating the boundaries of the authority district or districts

 

within which the authority shall exercise its powers. The adoption

 

of the resolution is subject to any applicable statutory or charter

 

provisions with respect to the approval or disapproval of

 

resolutions by the chief executive officer of the municipality and

 

the adoption of a resolution over his or her veto. This resolution

 

shall be filed with the secretary of state promptly after its

 

adoption and shall be published at least once in a newspaper of

 

general circulation in the municipality.


 

     (5) The governing body may alter or amend the boundaries of an

 

authority district to include or exclude lands from that authority

 

district or create new authority districts pursuant to the same

 

requirements prescribed for adopting the resolution creating the

 

authority.

 

     (6) The validity of the proceedings establishing an authority

 

shall be conclusive unless contested in a court of competent

 

jurisdiction within 60 days after the last of the following takes

 

place:

 

     (a) Publication of the resolution creating the authority as

 

adopted.

 

     (b) Filing of the resolution creating the authority with the

 

secretary of state.

 

     (7) Except as otherwise provided by this subsection, if 2 or

 

more municipalities desire to establish an authority under section

 

3(2), each municipality in which the authority district will be

 

located shall comply with the procedures prescribed by this act.

 

The notice required by subsection (2) may be published jointly by

 

the municipalities establishing the authority. The resolutions

 

establishing the authority shall include, or shall approve an

 

agreement including, provisions governing the number of members on

 

the board, the method of appointment, the members to be represented

 

by governmental units or agencies, the terms of initial and

 

subsequent appointments to the board, the manner in which a member

 

of the board may be removed for cause before the expiration of his

 

or her term, the manner in which the authority may be dissolved,

 

and the disposition of assets upon dissolution. An authority


 

described in this subsection shall not be considered established

 

unless all of the following conditions are satisfied:

 

     (a) A resolution is approved and filed with the secretary of

 

state by each municipality in which the authority district will be

 

located.

 

     (b) The same boundaries have been approved for the authority

 

district by the governing body of each municipality in which the

 

authority district will be located.

 

     (c) The governing body of the county in which a majority of

 

the authority district will be located has approved by resolution

 

the creation of the authority.

 

     (8) For an authority created under section 3(3), except as

 

otherwise provided by this subsection, the aerotropolis development

 

corporation shall comply with the procedures prescribed for a

 

municipality by subsections (1) and (2) and this subsection. The

 

provisions of subsections (3) and (4) shall not apply to an

 

authority exercising its powers under section 3(3). The notice

 

required by subsection (2) may be published by the aerotropolis

 

development corporation in a newspaper or newspapers of general

 

circulation within the municipalities which are constituent members

 

of the aerotropolis development corporation, and notice shall not

 

be required to be mailed to the property taxpayers of record in the

 

proposed authority district. The governing body of the aerotropolis

 

development corporation shall be the governing body of the

 

authority. A taxing jurisdiction with millage that would otherwise

 

be subject to capture which is not a party to the intergovernmental

 

agreement may exempt its taxes from capture by adopting a


 

resolution to that effect and filing a copy not more than 60 days

 

after the public hearing with the recording officer of the

 

aerotropolis development corporation. The aerotropolis development

 

corporation shall mail notice of the public hearing to the

 

governing body of each taxing jurisdiction which is not a party to

 

the intergovernmental agreement not less than 20 days before the

 

hearing. Following the public hearing, the governing body of the

 

aerotropolis development corporation shall adopt a resolution

 

designating the boundaries of the authority district within which

 

the authority shall exercise its powers, which may include any

 

certified technology park within the proposed authority district

 

and may include property adjacent to or within 500 feet of a road

 

classified as an arterial or collector according to the federal

 

highway administration manual "Highway Functional Classification -

 

Concepts, Criteria and Procedures" or of another road in the

 

discretion of the aerotropolis development corporation, and

 

property adjacent to that property within the territory of the

 

aerotropolis development corporation, as provided in the

 

resolution. The resolution shall be effective when adopted, shall

 

be filed with the secretary of state promptly after its adoption,

 

and shall be published at least once in a newspaper of general

 

circulation in the territory of the aerotropolis development

 

corporation. If an authority district designated under this

 

subsection includes a certified technology park which is within the

 

authority district of another authority and which is subject to an

 

existing development plan or tax increment financing plan, then

 

that certified technology park, as of the effective date of the


 

resolution establishing the authority under section 3(3), shall be

 

considered to be under the jurisdiction of the authority

 

established under section 3(3) if so provided in the resolution,

 

and the development plan and tax increment financing plan

 

applicable to the certified technology park, including all assets

 

and obligations under the plans, shall be considered assigned and

 

transferred from the other authority to the authority created under

 

section 3(3), and the initial assessed value of the certified

 

technology park prior to the transfer shall remain the initial

 

assessed value of the certified technology park following the

 

transfer.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 6502(request no.

 

07377'08 **).

 

     (b) Senate Bill No.____ or House Bill No. 6504(request no.

 

07806'08 **).

 

     (c) Senate Bill No.____ or House Bill No. 6505(request no.

 

07807'08 **).

 

     (d) Senate Bill No.____ or House Bill No. 6506(request no.

 

08280'08 *).

 

     (e) Senate Bill No.____ or House Bill No. 6507(request no.

 

08281'08 *).

 

     (f) Senate Bill No.____ or House Bill No. 6508(request no.

 

08282'08 *).

 

     (g) Senate Bill No.____ or House Bill No. 6509(request no.


 

08283'08 *).

 

     (h) Senate Bill No.____ or House Bill No. 6510(request no.

 

08284'08 *).

 

     (i) Senate Bill No.____ or House Bill No. 6511(request no.

 

08285'08 *).