August 9, 2006, Introduced by Reps. Bennett, Alma Smith, Tobocman, Polidori, Hood, Kolb, Sak, Hunter, Espinoza, Mayes, Vagnozzi, Zelenko, Clack, Cushingberry, Kathleen Law, Plakas, Accavitti, Condino, Angerer, Bieda, Lemmons, Jr., McDowell, Byrum, Gillard, Murphy, Meisner and Lemmons, III and referred to the Committee on Commerce.
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending section 3 (MCL 125.2783).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) A qualified local governmental unit, by resolution
of its legislative body, may establish 1 or more obsolete property
rehabilitation districts that may consist of 1 or more parcels or
tracts of land or a portion of a parcel or tract of land, if at the
time the resolution is adopted, the parcel or tract of land or
portion of a parcel or tract of land within the district is either
of the following:
(a) Obsolete property in an area characterized by obsolete
commercial property or commercial housing property.
(b) Commercial property that is obsolete property that was
owned by a qualified local governmental unit on the effective date
of this act, and subsequently conveyed to a private owner.
(2) The legislative body of a qualified local governmental
unit may establish an obsolete property rehabilitation district on
its own initiative or upon a written request filed by the owner or
owners of property comprising at least 50% of all taxable value of
the property located within a proposed obsolete property
rehabilitation district. The written request must be filed with the
clerk of the qualified local governmental unit.
(3) Before adopting a resolution establishing an obsolete
property rehabilitation district, the legislative body shall give
written notice by certified mail to the owners of all real property
within the proposed obsolete property rehabilitation district and
shall afford an opportunity for a hearing on the establishment of
the obsolete property rehabilitation district at which any of those
owners and any other resident or taxpayer of the qualified local
governmental unit may appear and be heard. The legislative body
shall give public notice of the hearing not less than 10 days or
more than 30 days before the date of the hearing.
(4) The legislative body of the qualified local governmental
unit, in its resolution establishing an obsolete property
rehabilitation district, shall set forth a finding and
determination that the district meets the requirements set forth in
subsection (1).
(5) Beginning January 1, 2007, the owner or lessee of a
rehabilitated facility who has been found guilty of a criminal
violation or found responsible for a civil violation under section
1131 or 1132 of the employee retirement security act of 1974, 29
USC 1131 or 1132, in the immediately preceding 10 years from the
date of application is not eligible for an obsolete property
rehabilitation exemption certificate under this act.
(6) Beginning with obsolete property rehabilitation exemption
certificates that take effect on or after January 1, 2007, if the
person to whom the certificate is issued is found guilty of a
criminal violation or found responsible for a civil violation under
section 1131 or 1132 of the employee retirement security act of
1974, 29 USC 1131 or 1132, on or after January 1, 2007, then that
person is responsible for the payment of a penalty described in
this subsection. The penalty is equal to the difference between the
industrial facility tax and the general ad valorem taxes that would
have been levied if the certificate had not been granted for each
year the certificate was in effect.