HOUSE BILL No. 4698 May 2, 2001, Introduced by Rep. Allen and referred to the Committee on Commerce. A bill to amend 1996 PA 381, entitled "Brownfield redevelopment financing act," by amending section 15 (MCL 125.2665), as amended by 2000 PA 145. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 15. (1) An authority shall not do any of the 2 following: 3 (a) For eligible activities not described in section 13(15), 4 use taxes levied for school operating purposes captured from eli- 5 gible property unless the eligible activities to be conducted on 6 the eligible property are eligible activities under part 201 of 7 the natural resources and environmental protection act, 1994 8 PA 451, MCL 324.20101 to 324.20142, consistent with a work plan 9 or remedial action plan approved by the department after July 24, 10 1996 and before January 1, 2003. 03177'01 RJA 2 1 (b) For eligible activities not described in section 13(15), 2 use funds from a local site remediation revolving fund that are 3 derived from taxes levied for school operating purposes unless 4 the eligible activities to be conducted are eligible activities 5 under part 201 of the natural resources and environmental protec- 6 tion act, 1994 PA 451, MCL 324.20101 to 324.20142, consistent 7 with a work plan or remedial action plan that has been approved 8 by the department after July 24, 1996. 9 (c) Use funds from a local site remediation revolving fund 10 created pursuant to section 8 that are derived from taxes levied 11 for school operating purposes for the eligible activities 12 described in section 13(15) unless the eligible activities to be 13 conducted are consistent with a work plan approved by the 14 Michigan economic growth authority. 15 (d) Use taxes captured from eligible property to pay for 16 eligible activities conducted before approval of the brownfield 17 plan except for costs described in section 13(16). 18 (e) Use taxes levied for school operating purposes captured 19 from eligible property for response activities that benefit a 20 party liable under section 20126 of the natural resources and 21 environmental protection act, 1994 PA 451, MCL 324.20126. 22 (f) Use taxes captured from eligible property to pay for 23 administrative and operating activities of the authority or the 24 municipality on behalf of the authority except for costs 25 described in section 13(16) and for the reasonable costs for pre- 26 paring a work plan or remedial action plan for the eligible 03177'01 3 1 property, including the actual cost of the review of the work 2 plan or remedial action plan under this section. 3 (2) To seek department approval of a work plan under subsec- 4 tion (1)(a) or (b) or remedial action plan, the authority shall 5 submit all of the following for each eligible property: 6 (a) A copy of the brownfield plan. 7 (b) Current ownership information for each eligible property 8 and a summary of available information on proposed future owner- 9 ship, including the amount of any delinquent taxes, interest, and 10 penalties that may be due. 11 (c) A summary of available information on the historical and 12 current use of each eligible property, including a brief summary 13 of site conditions and what is known about environmental contami- 14 nation as that term is defined in section 20101 of the natural 15 resources and environmental protection act, 1994 PA 451, 16 MCL 324.20101. 17 (d) Existing and proposed future zoning for each eligible 18 property. 19 (e) A brief summary of the proposed redevelopment and future 20 use for each eligible property. 21 (f) A separate work plan or remedial action plan, or part of 22 a work plan or remedial action plan, for each eligible activity 23 to be undertaken. 24 (3) Upon receipt of a request for approval of a work plan or 25 remedial action plan under subsection (2) that pertains to base- 26 line environmental assessment activities or due care activities, 27 or both, or a portion of a work plan or remedial action plan that 03177'01 4 1 pertains to only baseline environmental assessment activities or 2 due care activities, or both, the department shall provide 1 of 3 the following written responses to the requesting authority 4 within 60 days: 5 (a) An unconditional approval. 6 (b) A conditional approval that delineates specific neces- 7 sary modifications to the work plan or remedial action plan, 8 including, but not limited to, individual activities to be added 9 or deleted from the work plan or remedial action plan and revi- 10 sion of costs. 11 (c) If the work plan or remedial action plan lacks suffi- 12 cient information for the department to respond under 13 subdivision (a) or (b), a letter stating with specificity the 14 necessary additions or changes to the work plan or remedial 15 action plan to be submitted before a plan will be considered by 16 the department. 17 (4) In its review of a work plan or remedial action plan, 18 the department shall consider all of the following: 19 (a) Whether the individual activities included in the work 20 plan or remedial action plan are sufficient to complete the eli- 21 gible activity. 22 (b) Whether each individual activity included in the work 23 plan or remedial action plan is required to complete the eligible 24 activity. 25 (c) Whether the cost for each individual activity is 26 reasonable. 03177'01 5 1 (5) If the department fails to provide a written response 2 under subsection (3) within 60 days after receipt of a request 3 for approval of a work plan or remedial action plan that pertains 4 to baseline environmental assessment activities or due care 5 activities, or both, the authority may proceed with the baseline 6 environmental assessment activities or due care activities, or 7 both, as outlined in the work plan or remedial action plan as 8 submitted for approval. Except as provided in subsection (6), 9 baseline environmental assessment activities or due care activi- 10 ties, or both, conducted pursuant to a work plan or remedial 11 action plan that was submitted to the department for approval but 12 for which the department failed to provide a written response 13 under subsection (3) shall be considered approved for the pur- 14 poses of subsection (1). 15 (6) The department may issue a written response to a work 16 plan or remedial action plan that pertains to baseline environ- 17 mental assessment activities or due care activities, or both, 18 more than 60 days but less than 6 months after receipt of a 19 request for approval. If the department issues a written 20 response under this subsection, the authority is not required to 21 conduct individual activities that are in addition to the indi- 22 vidual activities included in the work plan or remedial action 23 plan as it was submitted for approval and failure to conduct 24 these additional activities shall not affect the authority's 25 ability to capture taxes under subsection (1) for the eligible 26 activities described in the work plan or remedial action plan 27 initially submitted under subsection (5). In addition, at the 03177'01 6 1 option of the authority, these additional individual activities 2 shall be considered part of the work plan or remedial action plan 3 of the authority and approved for purposes of subsection (1). 4 However, any response by the department under this subsection 5 that identifies additional individual activities that must be 6 carried out to satisfy the baseline environmental assessment or 7 due care requirements, or both, of part 201 of the natural 8 resources and environmental protection act, 1994 PA 451, 9 MCL 324.20101 to 324.20142, must be satisfactorily completed for 10 the baseline environmental assessment or due care activities, or 11 both, to be considered acceptable for the purposes of compliance 12 with part 201 of the natural resources and environmental protec- 13 tion act, 1994 PA 451, MCL 324.20101 to 324.20142. 14 (7) If the department issues a written response under 15 subsection (6) to a work plan or remedial action plan that per- 16 tains to baseline environmental assessment activities or due care 17 activities, or both, and if the department's written response 18 modifies an individual activity proposed by the work plan or 19 remedial action plan of the authority in a manner that reduces or 20 eliminates a proposed response activity, the authority must com- 21 plete those individual activities included in the baseline envi- 22 ronmental assessment or due care activities, or both, in accord- 23 ance with the department's response in order for that portion of 24 the work plan or remedial action plan to be considered approved 25 for purposes of subsection (1), unless 1 or more of the following 26 conditions apply: 03177'01 7 1 (a) Obligations for the individual activity have been issued 2 by the authority, or by a municipality on behalf of the 3 authority, to fund the individual activity prior to issuance of 4 the department's response. 5 (b) The individual activity has commenced or payment for the 6 work has been irrevocably obligated prior to issuance of the 7 department's response. 8 (8) It shall be in the sole discretion of an authority to 9 propose to undertake additional response activities at an eligi- 10 ble property under a brownfield plan. The department shall not 11 require a work plan or remedial action plan for either baseline 12 environmental assessment activities or due care activities, or 13 both, to include additional response activities. 14 (9) The department may reject the portion of a work plan or 15 remedial action plan that includes additional response activities 16 and may consider the level of risk reduction that will be accom- 17 plished by the additional response activities in determining 18 whether to approve or reject the work plan or remedial action 19 plan or a portion of a plan. 20 (10) The department's approval or rejection of a work plan 21 under subsection (1)(a) or (b) or remedial action plan for addi- 22 tional response activities is final. 23 (11) The authority shall reimburse the department for the 24 actual cost incurred by the department or a contractor of the 25 department to review a work plan under subsection (1)(a) or (b) 26 or remedial action plan under this section. Funds paid to the 27 department under this subsection shall be deposited in the cost 03177'01 8 1 recovery subaccount of the cleanup and redevelopment fund created 2 under section 20108 of the natural resources and environmental 3 protection act, 1994 PA 451, MCL 324.20108. 4 (12) The department shall submit a report each year on or 5 before March 1 to each member of the legislature that contains 6 all of the following: 7 (a) A compilation and summary of all the information submit- 8 ted under subsection (2). 9 (b) The amount of revenue this state would have received if 10 taxes levied for school operating purposes had not been captured 11 under this section for the previous calendar year. 12 (c) The amount of revenue each local governmental unit would 13 have received if taxes levied for school operating purposes had 14 not been captured under this section for the previous calendar 15 year. 16 (13) To seek Michigan economic growth authority approval of 17 a work plan under subsection (1)(c) or section 13(15), the 18 authority shall submit all of the following for each eligible 19 property: 20 (a) A copy of the brownfield plan. 21 (b) Current ownership information for each eligible property 22 and a summary of available information on proposed future owner- 23 ship, including the amount of any delinquent taxes, interest, and 24 penalties that may be due. 25 (c) A summary of available information on the historical and 26 current use of each eligible property. 03177'01 9 1 (d) Existing and proposed future zoning for each eligible 2 property. 3 (e) A brief summary of the proposed redevelopment and future 4 use for each eligible property. 5 (f) A separate work plan, or part of a work plan, for each 6 eligible activity described in section 13(15) to be undertaken. 7 (g) A copy of the development agreement required under sec- 8 tion 13(15), which shall include, but is not limited to, a 9 detailed summary of any and all ownership interests, monetary 10 considerations, fees, revenue and cost sharing, charges, or other 11 financial arrangements or other consideration between the 12 parties. 13 (14) Upon receipt of a request for approval of a work plan, 14 the Michigan economic growth authority shall provide 1 of the 15 following written responses to the requesting authority within 166090 days: 17 (a) An unconditional approval. 18 (b) A conditional approval that delineates specific neces- 19 sary modifications to the work plan, including, but not limited 20 to, individual activities to be added or deleted from the work 21 plan and revision of costs. 22 (c)If the work plan lacks sufficient information for the23Michigan economic growth authority to respond under24subdivision (a) or (b), a letter stating with specificity the25necessary additions or changes to the work plan to be submitted26before a plan will be considered by the Michigan economic growth27authority.A DENIAL. 03177'01 10 1 (15) In its review of a work plan under subsection (1)(c) or 2 section 13(15), the Michigan economic growth authority shall con- 3 siderall ofthe following CRITERIA TO THE EXTENT REASONABLY 4 APPLICABLE TO THE TYPE OF ACTIVITIES PROPOSED AS PART OF THAT 5 WORK PLAN WHEN APPROVING OR DENYING A WORK PLAN: 6 (a) Whether the individual activities included in the work 7 plan are sufficient to complete the eligible activity. 8 (b) Whether each individual activity included in the work 9 plan is required to complete the eligible activity. 10 (c) Whether the cost for each individual activity is 11 reasonable. 12 (D) THE OVERALL BENEFIT TO THE PUBLIC. 13 (E) THE EXTENT OF REUSE OF VACANT BUILDINGS AND REDEVELOP- 14 MENT OF BLIGHTED PROPERTY. 15 (F) CREATION OF JOBS. 16 (G) WHETHER THE ELIGIBLE PROPERTY IS IN AN AREA OF HIGH 17 UNEMPLOYMENT. 18 (H) THE LEVEL AND EXTENT OF CONTAMINATION ALLEVIATED BY OR 19 IN CONNECTION WITH THE ELIGIBLE ACTIVITIES. 20 (I) THE LEVEL OF PRIVATE SECTOR CONTRIBUTION. 21 (J) THE COST GAP THAT EXISTS BETWEEN THE SITE AND A SIMILAR 22 GREENFIELD SITE AS DETERMINED BY THE MICHIGAN ECONOMIC GROWTH 23 AUTHORITY. 24 (K) IF THE DEVELOPER OR PROJECTED OCCUPANT OF THE NEW DEVEL- 25 OPMENT IS MOVING FROM ANOTHER LOCATION IN THIS STATE, WHETHER THE 26 MOVE WILL CREATE A BROWNFIELD. 03177'01 11 1 (l) WHETHER THE FINANCIAL STATEMENTS OF THE DEVELOPER, 2 LANDOWNER, OR CORPORATE ENTITY INDICATE THAT THE DEVELOPER, 3 LANDOWNER, OR CORPORATE ENTITY IS FINANCIALLY SOUND AND THAT THE 4 PROJECT OF THE DEVELOPER, LANDOWNER, OR CORPORATE ENTITY THAT IS 5 INCLUDED IN THE WORKPLAN IS ECONOMICALLY SOUND. 6 (M) OTHER STATE AND LOCAL INCENTIVES AVAILABLE TO THE DEVEL- 7 OPER, LANDOWNER, OR CORPORATE ENTITY FOR THE PROJECT OF THE 8 DEVELOPER, LANDOWNER, OR CORPORATE ENTITY THAT IS INCLUDED IN THE 9 WORKPLAN. 10 (N) ANY OTHER CRITERIA THAT THE MICHIGAN ECONOMIC GROWTH 11 AUTHORITY CONSIDERS APPROPRIATE FOR THE DETERMINATION OF 12 ELIGIBILITY. 13 (16) If the Michigan economic growth authority fails to pro- 14 vide a written response under subsection (14) within 90 days 15 after receipt of a request for approval of a work plan, the eli- 16 gible activities shall be considered approved and the authority 17 may proceed with the eligible activities described in 18 section 13(15) as outlined in the work plan as submitted for 19 approval. 20 (17) The Michigan economic growth authority's approval OR 21 DENIAL of a work plan under section 13(15) is final. IF A WORK 22 PLAN IS DENIED UNDER SUBSECTION (14), THE WORK PLAN MAY BE 23 RESUBMITTED. 24 (18) The authority shall reimburse the Michigan economic 25 growth authority for the actual cost incurred by the Michigan 26 economic growth authority or a contractor of the Michigan 03177'01 12 1 economic growth authority to review a work plan under this 2 section. 3 (19) The Michigan economic growth authority shall submit a 4 report each year on or before March 1 to each member of the leg- 5 islature that contains all of the following: 6 (a) A compilation and summary of all the information submit- 7 ted under subsection (13). 8 (b) The amount of revenue this state would have received if 9 taxes levied for school operating purposes had not been captured 10 under this section for the previous calendar year. 11 (c) The amount of revenue each local governmental unit would 12 have received if taxes levied for school operating purposes had 13 not been captured under this section for the previous calendar 14 year. 15 (20) All taxes levied for school operating purposes that are 16 not used for eligible activities consistent with a work plan 17 approved by the department or the Michigan economic growth 18 authority and that are not deposited in a local site remediation 19 revolving fund shall be distributed proportionately between the 20 local school district and the school aid fund. THE MICHIGAN ECO- 21 NOMIC GROWTH AUTHORITY SHALL NOT APPROVE A TOTAL OF MORE THAN 25 22 WORK PLANS PER YEAR UNDER THIS SECTION. 23 (21) FOR ELIGIBLE ACTIVITIES DESCRIBED IN SECTION 13(15) 24 CONDUCTED AFTER DECEMBER 31, 2000 AND BEFORE APPROVAL OF A WORK- 25 PLAN, AN AUTHORITY MAY USE TAXES LEVIED FOR SCHOOL OPERATING PUR- 26 POSES CAPTURED FROM ELIGIBLE PROPERTY IF THE WORKPLAN WAS 27 APPROVED BEFORE JULY 1, 2001. 03177'01 Final page.