Bill Text: MI SB1079 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; Michigan economic growth authority; next Michigan development businesses; expand eligibility. Amends sec. 3 of 1995 PA 24 (MCL 207.803). TIE BAR WITH: HB 5349'09
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Passed) 2010-12-29 - Assigned Pa 0272'10 With Immediate Effect [SB1079 Detail]
Download: Michigan-2009-SB1079-Introduced.html
SENATE BILL No. 1079
January 21, 2010, Introduced by Senators RICHARDVILLE, BASHAM, ALLEN, HUNTER, PAPPAGEORGE, JANSEN and HARDIMAN and referred to the Committee on Commerce and Tourism.
A bill to amend 1995 PA 24, entitled
"Michigan economic growth authority act,"
by amending section 3 (MCL 207.803), as amended by 2008 PA 257.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Affiliated business" means a business that is at least
50% owned and controlled, directly or indirectly, by an associated
business.
(b) "Associated business" means a business that owns at least
50% of and controls, directly or indirectly, an authorized
business.
(c) "Authorized business" means 1 of the following:
(i) A single eligible business with a unique federal employer
identification number that has met the requirements of section 8
and with which the authority has entered into a written agreement
for a tax credit under section 9.
(ii) A single eligible business with a unique federal employer
identification number that has met the requirements of section 8,
except as provided in this subparagraph, and with which the
authority has entered into a written agreement for a tax credit
under section 9. An eligible business is not required to create
qualified new jobs or maintain retained jobs if qualified new jobs
are created or retained jobs are maintained by an associated
business, subsidiary business, affiliated business, or an employee
leasing company or professional employer organization that has
entered into a contractual service agreement with the authorized
business in which the employee leasing company or professional
employer organization withholds income and social security taxes on
behalf of the authorized business.
(d) "Authority" means the Michigan economic growth authority
created under section 4.
(e) "Business" means proprietorship, joint venture,
partnership, limited liability partnership, trust, business trust,
syndicate, association, joint stock company, corporation,
cooperative, limited liability company, or any other organization.
(f) "Distressed business" means a business that meets all of
the following as verified by the Michigan economic growth
authority:
(i) Four years immediately preceding the application to the
authority under this act, the business had 150 or more full-time
jobs in this state.
(ii) Within the immediately preceding 4 years, there has been a
reduction of not less than 30% of the number of full-time jobs in
this state during any consecutive 3-year period. The highest number
of full-time jobs within the consecutive 3-year period shall be
used in order to determine the percentage reduction of full-time
jobs in this subparagraph.
(iii) Is not a seasonal employer as defined in section 27 of the
Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.27.
(g) "Eligible business" means a distressed business or
business that proposes to maintain retained jobs after December 31,
1999 or to create qualified new jobs in this state after April 18,
1995 in manufacturing, mining, research and development, wholesale
and trade, film and digital media production, or office operations
or a business that is a qualified high-technology business or a
business that is a tourism attraction facility or a qualified
lodging facility. Except for a retail establishment that meets the
criteria in section 8(11), an eligible business does not include
retail establishments, professional sports stadiums, or that
portion of an eligible business used exclusively for retail sales.
Professional sports stadium does not include a sports stadium in
existence on June 6, 2000 that is not used by a professional sports
team on the date that an application related to that professional
sports stadium is filed under section 8.
(h) "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) (h)
"Facility" means a site
or sites within this state in
which an authorized business or subsidiary business maintains
retained jobs or creates qualified new jobs.
(j) (i)
"Film and digital media
production" means the
development, preproduction, production, postproduction, and
distribution of single media or multimedia entertainment content
for distribution or exhibition to the general public in 2 or more
states by any means and media in any digital media format, film, or
video tape, including, but not limited to, a motion picture, a
documentary, a television series, a television miniseries, a
television special, interstitial television programming, long-form
television, interactive television, music videos, interactive
games, video games, internet programming, an internet video, a
sound recording, a video, digital animation, or an interactive
website. Film and digital media production also includes the
development, preproduction, production, postproduction, and
distribution of a trailer, pilot, video teaser, or demo created
primarily to stimulate the sale, marketing, promotion, or
exploitation of future investment in a film or digital media
production. Film or digital media production does not include the
production of any of the following:
(i) A production for which records are required to be
maintained with respect to any performer in the production under 18
USC 2257.
(ii) A production that includes obscene matter or an obscene
performance as described in 1984 PA 343, MCL 752.361 to 752.374.
(iii) A production that primarily consists of televised news or
current events.
(iv) A production that primarily consists of a live sporting
event.
(v) A production that primarily consists of political
advertising.
(vi) A radio program.
(vii) A weather show.
(viii) A financial market report.
(ix) A talk show.
(x) A game show.
(xi) A production that primarily markets a product or service.
(xii) An awards show or other gala event production.
(xiii) A production with the primary purpose of fund-raising.
(xiv) A production that primarily is for employee training or
in-house corporate advertising or other similar production.
(k) (j)
"Full-time job" means a
job performed by an individual
for 35 hours or more each week and whose income and social security
taxes are withheld by 1 or more of the following:
(i) An authorized business.
(ii) An employee leasing company.
(iii) A professional employer organization on behalf of the
authorized business.
(iv) Another person as provided in section 8(1)(c).
(v) A business that sells all or part of its assets to an
eligible business that receives a credit under section 8(1) or (5).
(l) (k)
"Local governmental unit"
means a county, city,
village, or township in this state.
(m) (l) "High-technology
activity" means 1 or more of the
following:
(i) Advanced computing, which is any technology used in the
design and development of any of the following:
(A) Computer hardware and software.
(B) Data communications.
(C) Information technologies.
(D) Film and digital media production.
(ii) Advanced materials, which are materials with engineered
properties created through the development of specialized process
and synthesis technology.
(iii) Biotechnology, which is any technology that uses living
organisms, cells, macromolecules, microorganisms, or substances
from living organisms to make or modify a product, improve plants
or animals, or develop microorganisms for useful purposes.
Biotechnology does not include human cloning as defined in section
16274 of the public health code, 1978 PA 368, MCL 333.16274, or
stem cell research with embryonic tissue.
(iv) Electronic device technology, which is any technology that
involves microelectronics, semiconductors, electronic equipment,
and instrumentation, radio frequency, microwave, and millimeter
electronics, and optical and optic-electrical devices, or data and
digital communications and imaging devices.
(v) Engineering or laboratory testing related to the
development of a product.
(vi) Technology that assists in the assessment or prevention of
threats or damage to human health or the environment, including,
but not limited to, environmental cleanup technology, pollution
prevention technology, or development of alternative energy
sources.
(vii) Medical device technology, which is any technology that
involves medical equipment or products other than a pharmaceutical
product that has therapeutic or diagnostic value and is regulated.
(viii) Product research and development.
(ix) Advanced vehicles technology, which is any technology that
involves electric vehicles, hybrid vehicles, or alternative fuel
vehicles, or components used in the construction of electric
vehicles, hybrid vehicles, or alternative fuel vehicles. For
purposes of this act:
(A) "Electric vehicle" means a road vehicle that draws
propulsion energy only from an on-board source of electrical
energy.
(B) "Hybrid vehicle" means a road vehicle that can draw
propulsion energy from both a consumable fuel and a rechargeable
energy storage system.
(x) Tool and die manufacturing.
(xi) Competitive edge technology as defined in section 88a of
the Michigan strategic fund act, 1984 PA 270, MCL 125.2088a.
(xii) Digital media, including internet publishing and
broadcasting, video gaming, web development, and entertainment
technology.
(xiii) Music production, including record production and
development, sound recording studios, and integrated high-
technology record production and distribution.
(xiv) Film and video, including motion picture and video
production and distribution, postproduction services, and
teleproduction and production services.
(n) "Multimodal commerce" means the movement of products or
services via 2 of the following:
(i) Air.
(ii) Road.
(iii) Rail.
(iv) Water.
(o) (m)
"New capital investment"
means 1 or more of the
following:
(i) New construction. As used in this subparagraph:
(A) "New construction" means property not in existence on the
date the authorized business enters into a written agreement with
the authority and not replacement construction. New construction
includes the physical addition of equipment or furnishings, subject
to section 27(2)(a) to (o) of the general property tax act, 1893 PA
206, MCL 211.27.
(B) "Replacement construction" means that term as defined in
section 34d(1)(b)(v) of the general property tax act, 1893 PA 206,
MCL 211.34d.
(ii) The purchase of new personal property. As used in this
subparagraph, "new personal property" means personal property that
is not subject to or that is exempt from the collection of taxes
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, on the date the authorized business enters into a written
agreement with the authority.
(p) (n)
"Qualified high-technology
business" means a business
or facility whose primary business activity is high-technology
activity or a qualified high-wage activity.
(q) (o)
"Qualified high-wage
activity" means a business that
has an average wage of 300% or more of the federal minimum wage.
Qualified high-wage activity may also include, but is not limited
to, 1 or more of the following as long as they have an average wage
of 300% or more of the federal minimum wage:
(i) Architecture and design, including architectural design,
graphic design, interior design, fashion design, and industrial
design.
(ii) Advertising and marketing, including advertising and
marketing firms and agencies, public relations agencies, and
display advertising.
(r) (p)
"Qualified lodging
facility" means 1 or more of the
following:
(i) Lodging facilities that constitute a portion of a tourism
attraction facility and represent less than 50% of the total cost
of the tourism attraction facility, or the lodging facilities are
to be located on recreational property owned or leased by the
municipal, state, or federal government.
(ii) The lodging facilities involve the restoration or
rehabilitation of a structure that is listed individually in the
national register of historic places or are located in a national
register historic district and certified by this state as
contributing to the historic significance of the district, and the
rehabilitation or restoration project has been approved in advance
by this state.
(s) (q)
"Qualified new job" means
1 of the following:
(i) A full-time job created by an authorized business at a
facility that is in excess of the number of full-time jobs the
authorized business maintained in this state prior to the expansion
or location, as determined by the authority.
(ii) For jobs created after July 1, 2000, a full-time job at a
facility created by an eligible business that is in excess of the
number of full-time jobs maintained by that eligible business in
this state up to 90 days before the eligible business became an
authorized business, as determined by the authority.
(iii) For a distressed business, a full-time job at a facility
that is in excess of the number of full-time jobs maintained by
that eligible business in this state on the date the eligible
business became an authorized business.
(t) (r)
"Retained jobs" means the
number of full-time jobs at
a facility of an authorized business maintained in this state on a
specific date as that date and number of jobs is determined by the
authority.
(u) (s)
"Rural business" means an
eligible business located in
a county with a population of 90,000 or less.
(v) (t)
"Subsidiary business"
means a business that is
directly or indirectly controlled or at least 80% owned by an
authorized business.
(w) (u)
"Tourism attraction
facility" means a cultural or
historical site, a recreation or entertainment facility, an area of
natural phenomena or scenic beauty, or an entertainment destination
center as determined by the Michigan economic growth authority as
follows:
(i) In making a determination, the Michigan economic growth
authority shall consider all of the following:
(A) Whether the facility will actually attract tourists.
(B) Whether 50% or more of the persons using the facility
reside outside a 100-mile radius.
(C) Whether 50% or more of the gross receipts are from
admissions, food, or nonalcoholic drinks.
(D) Whether the facility offers a unique experience.
(ii) The Michigan economic growth authority shall not determine
any of the following as a tourism attraction facility:
(A) Facilities, other than an entertainment destination
center, that are primarily devoted to the retail sale of goods, a
theme restaurant destination attraction, or a tourism attraction
where the attraction is a secondary and subordinate component to
the sale of goods.
(B) Recreational facilities that do not serve as a likely
destination where individuals who are not residents of the state
would remain overnight in commercial lodging at or near the
facility.
(x) (v)
"Written agreement" means
a written agreement made
pursuant to section 8. A written agreement may address new jobs,
qualified new jobs, full-time jobs, retained jobs, or any
combination of new jobs, qualified new jobs, full-time jobs, or
retained jobs.
