RENAISSANCE ZONE EXTENSION                                                            S.B. 553 (S-1):

                                                                                                      FLOOR SUMMARY

Senate Bill 553 (Substitute S-1 as reported)

Sponsor:  Senator Roger Kahn, M.D.

Committee:  Economic Development

CONTENT

The bill would amend the Michigan Renaissance Zone Act to allow a qualified local governmental unit to seek an eight-year extension of renaissance zone status, in addition to a previously granted seven-year extension.  This would apply to a renaissance zone located in a county with a population of more than 190,000 and less than 240,000 (i.e., Saginaw County).

Specifically, if a qualified local governmental unit in which a renaissance zone was designated under Section 8 received approval by the Michigan Strategic Fund (MSF) to extend the duration of renaissance zone status for a period of seven years, and that renaissance zone is located in a county with a population of more than 190,000 and less than 240,000, according to the most recent decennial census, that local governmental unit could resubmit an application to the MSF before June 14, 2014, to extend the renaissance zone status for an additional eight years, for a total maximum extension of 15 years.  The MSF could grant the extension if it would increase capital investment or job creation in the State, and the owner and project developer were in compliance with a written agreement that the Act requires extension of zone status.

(Section 8 of the Act originally authorized the State Administrative Board to designate up to nine renaissance zones, and specified that not more than six could be in urban areas and not more than four could be in rural areas.  Section 8 also authorized the Board to designate renaissance zones in one or more qualified local governmental units containing a closed military installation.  A qualified local government unit is either 1) a county, or 2) a city, village, or township that contains an eligible distressed area, as defined in the State Housing Development Authority Act.)

MCL 125.2684                                                         Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would reduce State and local revenue by an unknown amount.  The bill also would potentially increase State expenditures by an unknown amount.  The amount of any fiscal impact would depend upon the specific characteristics of the taxpayers and local units affected as well as revenue appropriated to local units as part of State reimbursements for losses attributable to renaissance zones.  If reimbursement amounts were not changed, the bill would lower reimbursements received by local units affected by all other renaissance zones.  Any revenue losses would affect revenue in 2015 through 2023.  The bill would apply to only a renaissance zone located in Saginaw County.

Date Completed:  10-25-13                                                       Fiscal Analyst:  David Zin

This 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.