SENATE BILL No. 430

 

 

June 13, 2013, Introduced by Senators CASPERSON, COLBECK, ROBERTSON, PAVLOV, BRANDENBURG, JONES, GREEN, KOWALL and PAPPAGEORGE and referred to the Committee on Economic Development.

 

 

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 3 (MCL 125.2683), as amended by 2010 PA 277,

 

and by adding section 8i.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Agricultural processing facility" means 1 or more

 

facilities or operations that transform, package, sort, or grade

 

livestock or livestock products, agricultural commodities, or

 

plants or plant products, excluding forest products, into goods

 

that are used for intermediate or final consumption including goods

 

for nonfood use, and surrounding property.

 

     (b) "Arms-related manufacturing facility" means 1 or more

 

facilities or operations that manufacture or assemble firearms,

 


ammunition, or firearm accessories in this state.

 

     (c) "Arms-related manufacturing renaissance zone" means an

 

arms-related manufacturing renaissance zone created under section

 

8i.

 

     (d) (b) "Board" means the state administrative board created

 

in 1921 PA 2, MCL 17.1 to 17.3.

 

     (e) (c) "Border crossing facility" means a business that is 1

 

or more of the following as determined by the board of the Michigan

 

strategic fund:

 

     (i) That was located in a qualified border local governmental

 

unit as defined in section 8g and was displaced or otherwise

 

negatively affected by the development of the international border

 

crossing and is unable to recover from the displacement or negative

 

effect without the establishment of a renaissance zone.

 

     (ii) That is associated with international trade, shipping, or

 

freight hauling, including, but not limited to, all of the

 

following:

 

     (A) Customs brokers.

 

     (B) Distribution centers.

 

     (C) Truck supply and repair.

 

     (f) (d) "Development plan" means a written plan that addresses

 

the criteria in section 7 and includes all of the following:

 

     (i) A map of the proposed renaissance zone that indicates the

 

geographic boundaries, the total area, and the present use and

 

conditions generally of the land and structures within those

 

boundaries.

 

     (ii) Evidence of community support and commitment from

 


residential and business interests.

 

     (iii) A description of the methods proposed to increase economic

 

opportunity and expansion, facilitate infrastructure improvement,

 

and identify job training opportunities.

 

     (iv) Current social, economic, and demographic characteristics

 

of the proposed renaissance zone and anticipated improvements in

 

education, health, human services, public safety, and employment if

 

the renaissance zone is created.

 

     (v) Any other information required by the board.

 

     (g) (e) "Elected county executive" means the elected county

 

executive in a county organized under 1966 PA 293, MCL 45.501 to

 

45.521, or 1973 PA 139, MCL 45.551 to 45.573.

 

     (h) (f) "Eligible next Michigan business" means a business

 

engaged in the shipment of tangible personal property via

 

multimodal commerce; a supply chain business providing a majority

 

of its services to businesses engaged in the shipment of tangible

 

personal property, including inventory, via multimodal commerce; a

 

manufacturing or assembly facility receiving a majority of its

 

production components via multimodal commerce; a manufacturing or

 

assembly facility shipping a majority of products via multimodal

 

commerce; or a light manufacturing or assembly facility that

 

packages, kits, labels, or customizes products and ships those

 

products via multimodal commerce.

 

     (i) (g) "Forest products processing facility" means 1 or more

 

facilities or operations that transform, package, sort, recycle, or

 

grade forest or paper products into goods that are used for

 

intermediate or final use or consumption or for the creation of

 


biomass or alternative fuels through the utilization of forest

 

products or forest residue, and surrounding property. Forest

 

products processing facility does not include an existing facility

 

or operation that is located in this state that relocates to a

 

renaissance zone for a forest products processing facility. Forest

 

products processing facility does not include a facility or

 

operation that engages primarily in retail sales.

 

     (j) (h) "Local governmental unit" means a county, city,

 

village, township, or, for taxes levied after 2009, any other

 

taxing jurisdiction that levies an ad valorem property tax.

 

     (k) (i) "Multimodal commerce" means the movement of products

 

or services via 2 or more of the following:

 

     (i) Air.

 

     (ii) Road.

 

     (iii) Rail.

 

     (iv) Water.

 

     (l) (j) "Next Michigan development corporation" means that term

 

as defined in section 3 of the next Michigan development act, 2010

 

PA 275, MCL 125.2953.

 

     (m) (k) "Next Michigan development district" means that term

 

as defined in section 3 of the next Michigan development act, 2010

 

PA 275, MCL 125.2953.

 

     (n) (l) "Next Michigan renaissance zone" means a renaissance

 

zone created under section 8h.

 

     (o) (m) "Person" means an individual, partnership,

 

corporation, association, limited liability company, governmental

 

entity, or other legal entity.

 


     (p) (n) "Qualified eligible next Michigan business" means an

 

eligible next Michigan business that has been certified in

 

accordance with section 8h.

 

     (q) (o) "Qualified local governmental unit" means either of

 

the following:

 

     (i) A county.

 

     (ii) A city, village, or township that contains an eligible

 

distressed area as defined in section 11 of the state housing

 

development authority act of 1966, 1966 PA 346, MCL 125.1411.

 

     (r) (p) "Recovery zone" means a tool and die renaissance

 

recovery zone created in section 8d.

 

     (s) (q) "Renaissance zone" means a geographic area designated

 

under this act.

 

     (t) (r) "Renewable energy facility" means a facility that

 

creates energy, fuels, or chemicals directly from the wind, the

 

sun, trees, grasses, biosolids, algae, agricultural commodities,

 

processed products from agricultural commodities, or residues from

 

agricultural processes, wood or forest processes, food production

 

and processing, or the paper products industry. Renewable energy

 

facility also includes a facility that creates energy, fuels, or

 

chemicals from solid biomass, animal wastes, or landfill gases.

 

Renewable energy facility also includes a facility that focuses on

 

research, development, or manufacturing of systems or components of

 

systems used to create energy, fuel, or chemicals from the items

 

described in this subdivision. Renewable energy facility also

 

includes a facility that focuses on research, development, or

 

manufacturing of systems or components of systems that involve the

 


conversion of chemical energy for advanced battery technology.

 

     (u) (s) "Residential rental property" means that term as

 

defined in section 7ff of the general property tax act, 1893 PA

 

206, MCL 211.7ff.

 

     (v) (t) "Review board" means the renaissance zone review board

 

created in section 5.

 

     (w) (u) "Rural area" means an area that lies outside of the

 

boundaries of an urban area.

 

     (x) (v) "Urban area" means an urbanized area as determined by

 

the economics and statistics administration, United States bureau

 

of the census according to the 1990 census.

 

     Sec. 8i. (1) The board of the Michigan strategic fund defined

 

in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL

 

125.2004, may designate up to 5 arms-related manufacturing

 

renaissance zones for arms-related manufacturing 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 an arms-related manufacturing

 

renaissance zone for an arms-related manufacturing facility within

 

their boundaries. An arms-related manufacturing renaissance zone

 

for an arms-related manufacturing facility shall have a duration of

 

renaissance zone status for a period of 15 years.

 

     (2) Each arms-related manufacturing renaissance zone

 

designated for an arms-related manufacturing facility under this

 

section shall be 1 continuous distinct geographic area.

 

     (3) The board may revoke the designation of all or a portion

 

of an arms-related manufacturing renaissance zone for an arms-

 


related manufacturing facility if the board determines that the

 

arms-related manufacturing facility does 1 or more of the following

 

in an arms-related manufacturing 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 arms-related manufacturing renaissance zone for

 

the arms-related manufacturing facility is designated.

 

     (4) The board shall consider all of the following when

 

designating an arms-related manufacturing renaissance zone for an

 

arms-related manufacturing facility:

 

     (a) The economic impact on local suppliers who supply raw

 

materials, goods, and services to the arms-related manufacturing

 

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 arms-

 

related manufacturing facility is located.

 

     (5) The board shall require a development agreement between

 

the Michigan strategic fund and the arms-related manufacturing

 

facility.

 

     (6) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the arms-

 

related manufacturing facility that includes, but is not limited

 

to, all of the following:

 


     (a) A requirement that the arms-related manufacturing facility

 

comply with all state and local laws.

 

     (b) A requirement that the arms-related manufacturing 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 arms-related manufacturing facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (c) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.