HB-5816, As Passed House, June 9, 2004                                      

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 5816                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1980 PA 450, entitled                                             

                                                                                

    "The tax increment finance authority act,"                                  

                                                                                

    by amending sections 3 and 17 (MCL 125.1803 and 125.1817),                  

                                                                                

    section 3 as amended by 1983 PA 148.                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1) If the governing body of a municipality                        

                                                                                

2   determines that it is in the best interests of the public to halt           

                                                                                

3   a decline in property values, increase property tax valuation,              

                                                                                

4   eliminate the causes of the decline in property values, and to              

                                                                                

5   promote growth in an area in the municipality, the governing body           

                                                                                

6   of that municipality may declare by resolution its intention to             

                                                                                

7   create and provide for the operation of an authority.                       

                                                                                

8       (2) In the resolution of intent, the governing body shall set               

                                                                                

9   a date for the holding of a public hearing on the adoption of a             

                                                                                

10  proposed resolution creating the authority and designating the              

                                                                                


                                                                                

1   boundaries of the authority district.  Notice of the public                 

                                                                                

2   hearing shall be published twice in a newspaper of general                  

                                                                                

3   circulation in the municipality, not less than 20 nor more than             

                                                                                

4   40 days before the date of the hearing.  Notice shall also be               

                                                                                

5   mailed to the property taxpayers of record in the proposed                  

                                                                                

6   authority district not less than 20 days before the hearing.                

                                                                                

7   Beginning June 1, 2004, the notice of hearing within the time               

                                                                                

8   frame described in this subsection shall be mailed by certified             

                                                                                

9   mail to the treasurer, clerk, and chairperson of the board of               

                                                                                

10  commissioners of the county in which the authority district is              

                                                                                

11  located. Failure to receive the notice shall not invalidate these           

                                                                                

12  proceedings.  The notice shall state the date, time, and place of           

                                                                                

13  the hearing, and shall describe the boundaries of the proposed              

                                                                                

14  authority district.  At that hearing, a citizen, taxpayer, or               

                                                                                

15  property owner of the municipality has the right to be heard in             

                                                                                

16  regard to the establishment of the authority and the boundaries             

                                                                                

17  of the proposed authority district.  The governing body of the              

                                                                                

18  municipality shall not incorporate land into the authority                  

                                                                                

19  district not included in the description contained in the notice            

                                                                                

20  of public hearing, but it may eliminate described lands from the            

                                                                                

21  authority district in the final determination of the boundaries.            

                                                                                

22      (3) After the public hearing, if the governing body intends                 

                                                                                

23  to proceed with the establishment of the authority, it shall                

                                                                                

24  adopt, by majority vote of its members, a resolution establishing           

                                                                                

25  the authority and designating the boundaries of the authority               

                                                                                

26  district within which the authority shall exercise its powers.              

                                                                                

27  The adoption of the resolution is subject to any applicable                 


                                                                                

1   statutory or charter provisions with respect to the approval or             

                                                                                

2   disapproval by the chief executive or other officer of the                  

                                                                                

3   municipality and the adoption of a resolution over his or her               

                                                                                

4   veto.  This resolution shall be filed with the secretary of state           

                                                                                

5   promptly after its adoption and shall be published at least once            

                                                                                

6   in a newspaper of general circulation in the municipality.                  

                                                                                

7       (4) The governing body may alter or amend the boundaries of                 

                                                                                

8   the authority district to include or exclude lands from the                 

                                                                                

9   authority district in accordance with the same requirements                 

                                                                                

10  prescribed for adopting the resolution creating the authority.              

                                                                                

11      (5) The validity of the proceedings establishing an authority               

                                                                                

12  shall be conclusive unless contested in a court of competent                

                                                                                

13  jurisdiction within 60 days after the last of the following takes           

                                                                                

14  place:                                                                      

                                                                                

15      (a) Publication of the resolution as adopted.                               

                                                                                

16      (b) Filing of the resolution with the secretary of state.                   

                                                                                

17      (c) The effective date of this subsection.                                  

                                                                                

18      Sec. 17.  (1) The governing body, before adoption of a                      

                                                                                

19  resolution approving or amending a development plan or approving            

                                                                                

20  or amending a tax increment financing plan, shall hold a public             

                                                                                

21  hearing on the development plan.  Notice of the time and place of           

                                                                                

22  the hearing shall be given by publication twice in a newspaper of           

                                                                                

23  general circulation designated by the municipality, the first of            

                                                                                

24  which shall not be less than 20 days before the date set for the            

                                                                                

25  hearing.  Notice shall also be mailed to all property taxpayers             

                                                                                

26  of record in the development area not less than 20 days before              

                                                                                

27  the hearing.  Beginning June 1, 2004, the notice of hearing                 


                                                                                

1   within the time frame described in this subsection shall be                 

                                                                                

2   mailed by certified mail to the treasurer, clerk, and                       

                                                                                

3   chairperson of the board of commissioners of the county in which            

                                                                                

4   the proposed development area is located.                                   

                                                                                

5       (2) Notice of the time and place of hearing on a development                

                                                                                

6   plan shall contain the following:                                           

                                                                                

7       (a) A description of the proposed development area in                       

                                                                                

8   relation to highways, streets, streams, or otherwise.                       

                                                                                

9       (b) A statement that maps, plats, and a description of the                  

                                                                                

10  development plan, including the method of relocating families and           

                                                                                

11  individuals who may be displaced from the area, are available for           

                                                                                

12  public inspection at a place designated in the notice, and that             

                                                                                

13  all aspects of the development plan will be open for discussion             

                                                                                

14  at the public hearing.                                                      

                                                                                

15      (c) Other information that the governing body considers                     

                                                                                

16  appropriate.                                                                

                                                                                

17      (3) At the time set for hearing, the governing body shall                   

                                                                                

18  provide an opportunity for interested persons to be heard and               

                                                                                

19  shall receive and consider communications in writing with                   

                                                                                

20  reference thereto.  The hearing shall provide the fullest                   

                                                                                

21  opportunity for expression of opinion, for argument on the                  

                                                                                

22  merits, and for introduction of documentary evidence pertinent to           

                                                                                

23  the development plan.  The governing body shall make and preserve           

                                                                                

24  a record of the public hearing, including all data presented at             

                                                                                

25  that time.