September 26, 2018, Introduced by Senator STAMAS and referred to the Committee on Economic Development and International Investment.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 8c and 8e (MCL 125.2688c and 125.2688e),
section 8c as amended by 2006 PA 284 and section 8e as amended by
2008 PA 329.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8c. (1) The board, upon recommendation of the board of
the Michigan strategic fund defined in section 4 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2004, and upon
recommendation of the commission of agriculture, may designate not
more than 30 additional renaissance zones for agricultural
processing facilities 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 for an agricultural processing
facility within their boundaries.
(2) Each renaissance zone designated for an agricultural
processing facility under this section shall be 1 continuous
distinct geographic area.
(3) The board may revoke the designation of all or a portion
of a renaissance zone for an agricultural processing facility if
the board determines that the agricultural processing facility does
1 or more of the following in a renaissance zone designated under
this section:
(a) Fails to commence operation.
(b) Ceases operation.
(c) Fails to commence construction or renovation within 1 year
from the date the renaissance zone for the agricultural processing
facility is designated.
(4) A facility previously approved as a renaissance zone for a
renewable energy facility on or before December 31, 2009 shall
become renewed as a renaissance zone designated for an agricultural
processing facility as of the date the renewable energy renaissance
zone was revoked and for the remaining term of the original
renewable energy renaissance zone as designated by the board,
subject to eligibility under this act and compliance with a
development agreement, if all of the following apply:
(a) The facility utilized the same wastewater discharge
renewable feedstock to produce an approved agricultural product
continuously from the time the renewable energy renaissance zone
designation was revoked to the application for renewal as an
agricultural processing facility.
(b) The facility maintained at least 10 jobs continuously from
the time the renewable energy renaissance zone designation was
revoked to the application for renewal as an agricultural
processing facility.
(c) The facility certifies that it acted in good faith when
changing its product and was at all times eligible for renaissance
zone designation under section 8e before it was revoked.
(d) The facility enters into a development agreement with the
Michigan strategic fund.
(5) (4)
Beginning on the date of the
amendatory act that added
this
subsection, July 10, 2006, the board shall consider all of the
following when designating a renaissance zone for an agricultural
processing facility:
(a) The economic impact on local suppliers who supply raw
materials, goods, and services to the agricultural processing
facility.
(b) The creation of jobs relative to the employment base of
the community rather than the static number of jobs created.
(c) The viability of the project.
(d) The economic impact on the community in which the
agricultural processing facility is located.
(e) All other things being equal, giving preference to a
business entity already located in this state.
(6) (5)
Beginning on the date of the
amendatory act that added
this
subsection, July 10, 2006, the board shall do all of the
following:
(a) Require a development agreement between the Michigan
strategic fund and the agricultural processing facility.
(b) Designate not less than 3 of the renaissance zones for
agricultural processing facilities that have an initial capital
investment of less than $7,000,000.00.
(c) Designate not less than 5 of the renaissance zones for
agricultural processing facilities in rural areas.
(7) (6)
As used in this section,
"development agreement" means
a written agreement between the Michigan strategic fund and the
agricultural processing facility that includes, but is not limited
to, all of the following:
(a) A requirement that the agricultural processing facility
comply with all state and local laws.
(b) A requirement that the agricultural processing facility
report annually to the Michigan strategic fund on all of the
following:
(i) The amount of capital investment made at the facility.
(ii) The number of individuals employed at the facility at the
beginning and end of the reporting period as well as the number of
individuals transferred to the facility from another facility owned
by the agricultural processing facility.
(iii) The percentage of raw materials purchased in this state.
(c) Any other conditions or requirements reasonably required
by the Michigan strategic fund.
(8) The renewal of a renaissance zone for an agricultural
facility under subsection (4) shall not be considered a designation
under subsection (1).
Sec. 8e. (1) The board, upon recommendation of the board of
the Michigan strategic fund defined in section 4 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2004, and upon
recommendation of the commission of agriculture if the renewable
energy facility uses agricultural crops or residues, or processed
products from agricultural crops as its primary raw material
source, may designate not more than 15 additional renaissance zones
for renewable energy facilities 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 for a renewable energy facility
within their boundaries. Not fewer than 5 of the renaissance zones
for renewable energy facilities shall be designated for renewable
energy facilities that focus primarily on the production of
cellulosic biofuels.
(2) Each renaissance zone designated for a renewable energy
facility under this section shall be 1 continuous distinct
geographic area.
(3) The board may revoke the designation of all or a portion
of a renaissance zone for a renewable energy facility if the board
determines that the renewable energy facility does 1 or more of the
following in a renaissance zone designated under this section:
(a) Fails to commence operation.
(b) Ceases operation.
(c) Fails to commence construction or renovation within 1 year
from the date the renaissance zone for the renewable energy
facility is designated.
(4) When designating a renaissance zone for a renewable energy
facility, the board shall consider all of the following:
(a) The economic impact on local suppliers who supply raw
materials, goods, and services to the renewable energy facility.
(b) The creation of jobs relative to the employment base of
the community rather than the static number of jobs created.
(c) The viability of the project.
(d) The economic impact on the community in which the
renewable energy facility is located.
(e) All other things being equal, giving preference to a
business entity already located in this state.
(f) Whether the renewable energy facility can be located in an
existing renaissance zone designated under section 8 or 8a.
(5) Beginning on July 7, 2006, the board shall require a
development agreement between the Michigan strategic fund and the
renewable energy facility.
(6) Until the maximum number of additional renaissance zones
for renewable energy facilities described in subsection (1) is met,
if
the board designates a renaissance zone under this section; ,
section 8c, except for a renaissance zone designated for an
agricultural processing facility under section 8c(4); or section 8f
for a facility that is a forest products processing facility or an
agricultural processing facility and that also meets the definition
of a renewable energy facility, then the board shall only designate
that renaissance zone as a renaissance zone for a renewable energy
facility under this section.
(7) As used in this section, "development agreement" means a
written agreement between the Michigan strategic fund and the
renewable energy facility that includes, but is not limited to, all
of the following:
(a) A requirement that the renewable energy facility comply
with all state and local laws.
(b) A requirement that the renewable energy facility report
annually to the Michigan strategic fund on all of the following:
(i) The amount of capital investment made at the facility.
(ii) The number of individuals employed at the facility at the
beginning and end of the reporting period as well as the number of
individuals transferred to the facility from another facility owned
by the renewable energy facility.
(iii) The percentage of raw materials purchased in this state.
(c) Any other conditions or requirements reasonably required
by the Michigan strategic fund.