HOUSE BILL NO. 6216
November 26, 2024, Introduced by Rep. Farhat and referred to the Committee on Economic
Development and Small Business.
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
by amending sections 2, 14a, and 16 (MCL 125.2652, 125.2664a, and
125.2666), as amended by 2023 PA 90.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 2. As used in this act:
2 (a) "Authority" means a brownfield redevelopment authority
3 created under this act.
4 (b) "Baseline environmental assessment" means that term as
KAS 06969'24 *
 2
1 defined in part 201 or 213.
2 (c) "Blighted" means property that meets any of the following
3 criteria as determined by the governing body:
4 (i) Has been declared a public nuisance in accordance with a
5 local housing, building, plumbing, fire, or other related code or
6 ordinance.
7 (ii) Is an attractive nuisance to children because of physical
8 condition, use, or occupancy.
9 (iii) Is a fire hazard or is otherwise dangerous to the safety
10 of persons or property.
11 (iv) Has had the utilities, plumbing, heating, or sewerage
12 permanently disconnected, destroyed, removed, or rendered
13 ineffective so that the property is unfit for its intended use.
14 (v) Is previously developed or tax reverted property owned by
15 a municipality or by this state. The sale, lease, or transfer of
16 previously developed or tax reverted property by a municipality or
17 this state after the property's inclusion in a brownfield plan does
18 not result in the loss to the property of the status as blighted
19 property for purposes of this act.
20 (vi) Is property owned by or under the control of a land bank
21 fast track authority, whether or not located within a qualified
22 local governmental unit. Property included within a brownfield plan
23 before the date it meets the requirements of this subdivision to be
24 eligible property is considered to become eligible property as of
25 the date the property is determined to have been or becomes
26 qualified as, or is combined with, other eligible property. The
27 sale, lease, or transfer of the property by a land bank fast track
28 authority after the property's inclusion in a brownfield plan does
29 not result in the loss to the property of the status as blighted
KAS 06969'24 *
 3
1 property for purposes of this act.
2 (vii) Has substantial buried subsurface demolition debris
3 present so that the property is unfit for its intended use.
4 (d) "Board" means the board that supervises and controls an
5 authority under section 5.
6 (e) "Brownfield plan" means a plan that meets the requirements
7 of sections 13 and 13b and is adopted under section 14.
8 (f) "Captured taxable value" means the amount in 1 year by
9 which the current taxable value of an eligible property subject to
10 a brownfield plan, including the taxable value or assessed value,
11 as appropriate, of the property for which specific taxes are paid
12 in lieu of property taxes, exceeds the initial taxable value of
13 that eligible property. The state tax commission shall prescribe
14 the method for calculating captured taxable value.
15 (g) "Chief executive officer" means the mayor of a city, the
16 village manager of a village, the township supervisor of a
17 township, or the county executive of a county or, if the county
18 does not have an elected county executive, the chairperson of the
19 county board of commissioners.
20 (h) "Combined brownfield plan" means a brownfield plan that
21 also includes the information necessary to submit the plan to the
22 department, Michigan state housing development authority, or
23 Michigan strategic fund under section 15(20).
24 (i) "Construction period tax capture revenues" means funds
25 equal to the amount of income tax levied and imposed in a calendar
26 year on wages paid to individuals physically present and working
27 within the eligible property for the construction, renovation, or
28 other improvement of eligible property that is an eligible activity
29 within a transformational brownfield plan. As used in this
KAS 06969'24 *
 4
1 subdivision, "wages" means that term as defined in section 3401 of
2 the internal revenue code of 1986, 26 USC 3401. To calculate the
3 amount of construction period tax capture revenues for a calendar
4 year under a transformational brownfield plan, the state treasurer
5 shall do all of the following:
6 (i) Require the owner or developer of the eligible property to
7 report the total taxable wages paid to individuals for the
8 construction, renovation, or other improvement of eligible property
9 that is an eligible activity within the transformational brownfield
10 plan. The wages reported under this subparagraph must exclude any
11 wages paid to employees of the owner or developer.
12 (ii) Multiply the amount under subparagraph (i) by the effective
13 rate as determined by the state treasurer at which the income tax
14 is levied on an individual in this state. The state treasurer shall
15 estimate the effective rate by taking into account the effect of
16 any exemptions, additions, subtractions, and credits allowable
17 under part 1 of the income tax act of 1967, 1967 PA 281, MCL 206.1
18 to 206.532. The state treasurer may require the owner or developer
19 to submit any information necessary for the calculation under this
20 subparagraph.
21 (iii) The wage information and other information required under
22 this subdivision must be provided to the department of treasury by
23 the owner or developer in a manner prescribed by the state
24 treasurer. The state treasurer may require the owner or developer
25 to provide a review or reconciliation of the wages by an
26 independent auditing firm.
27 (j) "Corrective action" means that term as defined in part 111
28 or part 213.
29 (k) "Department" means the department of environment, Great
KAS 06969'24 *
 5
1 Lakes, and energy.
2 (l) "Department specific activities" means baseline
3 environmental assessments, due care activities, response
4 activities, and other environmentally related actions that are
5 eligible activities and are identified as a part of a brownfield
6 plan that are in addition to the minimum due care activities
7 required by part 201, including, but not limited to:
8 (i) Response activities that are more protective of the public
9 health, safety, and welfare and the environment than required by
10 section 20107a, 20114, or 21304c of the natural resources and
11 environmental protection act, 1994 PA 451, MCL 324.20107a,
12 324.20114, and 324.21304c.
13 (ii) Removal and closure of underground storage tanks pursuant
14 to part 211 or 213.
15 (iii) Disposal of solid waste, as defined in part 115 of the
16 natural resources and environmental protection act, 1994 PA 451,
17 MCL 324.11501 to 324.11587, from the eligible property, if the
18 solid waste was not generated or accumulated by the authority or
19 the developer.
20 (iv) Dust control related to construction activities.
21 (v) Removal and disposal of lake or river sediments exceeding
22 part 201 criteria from, at, or related to an economic development
23 project if the upland property is either a facility or would become
24 a facility as a result of the deposition of dredged spoils.
25 (vi) Industrial cleaning.
26 (vii) Sheeting and shoring necessary for the removal of
27 materials exceeding part 201 criteria at projects requiring a
28 permit pursuant to part 301, 303, or 325 of the natural resources
29 and environmental protection act, 1994 PA 451, MCL 324.30101 to
KAS 06969'24 *
 6
1 324.30113, 324.30301 to 324.30328, and 324.32501 to 324.32515a.
2 (viii) Lead, mold, or asbestos abatement when lead, mold, or
3 asbestos pose an imminent and significant threat to human health.
4 (ix) Environmental insurance.
5 (m) "Due care activities" means those response activities
6 identified as part of a brownfield plan that are necessary to allow
7 the owner or operator of an eligible property in the plan to comply
8 with the requirements of section 20107a or 21304c of the natural
9 resources and environmental protection act, 1994 PA 451, MCL
10 324.20107a and 324.21304c.
11 (n) "Economic opportunity zone" means 1 or more parcels of
12 property that meet all of the following:
13 (i) That together are 40 or more acres in size.
14 (ii) That contain or contained a manufacturing operation or an
15 enclosed mall that consists or consisted of 300,000 or more square
16 feet.
17 (iii) That are located in a municipality that is contiguous to a
18 qualified local governmental unit.
19 (o) "Eligible activities" or "eligible activity" means 1 or
20 more of the following:
21 (i) For all eligible properties, eligible activities include
22 all of the following:
23 (A) Department specific activities.
24 (B) Relocation of public buildings or operations for economic
25 development purposes.
26 (C) Reasonable costs of environmental insurance.
27 (D) Reasonable costs incurred to develop and prepare
28 brownfield plans, combined brownfield plans, or work plans for the
29 eligible property, including legal and consulting fees that are not
KAS 06969'24 *
 7
1 in the ordinary course of acquiring and developing real estate.
2 (E) Reasonable costs of brownfield plan and work plan
3 implementation, including, but not limited to, tracking and
4 reporting of data and plan compliance, including costs to
5 implement, monitor, and maintain compliance with the income and
6 price monitoring responsibilities associated with housing
7 development activities, and the reasonable costs incurred to
8 estimate and determine actual costs incurred, whether those costs
9 are incurred by a municipality, authority, or private developer.
10 (F) Demolition of structures or site improvements that are not
11 a response activity, including removal of manufactured debris
12 composed of discarded, unused, or unusable manufactured by-products
13 left on the site by a previous owner. The removal of the
14 manufactured by-products left on the site described in this sub-
15 subparagraph is not eligible for interest reimbursement under sub-
16 subparagraph (H).
17 (G) Lead, asbestos, or mold abatement.
18 (H) Except as otherwise provided in sub-subparagraph (F), the
19 repayment of principal of and interest on any obligation issued by
20 an authority to pay the costs of eligible activities attributable
21 to an eligible property.
22 (ii) For housing property located in a community that has
23 identified a specific housing need and has absorption data or job
24 growth data included in the brownfield plan, eligible activities
25 include all of the following:
26 (A) The activities described in subparagraph (i).
27 (B) Housing development activities.
28 (C) Infrastructure improvements that are necessary for housing
29 property and support housing development activities.
KAS 06969'24 *
 8
1 (D) Site preparation that is not a response activity and that
2 supports housing development activities.
3 (iii) For eligible properties located in a qualified local
4 governmental unit, or an economic opportunity zone, or that are a
5 former mill, eligible activities include all of the following:
6 (A) The activities described in subparagraph (i).
7 (B) Infrastructure improvements that directly benefit eligible
8 property.
9 (C) Site preparation that is not a response activity.
10 (iv) For eligible properties that are owned by or under the
11 control of a land bank fast track authority, or a municipality or
12 authority, eligible activities include all of the following:
13 (A) The eligible activities described in subparagraphs (i),
14 (ii), and (iii).
15 (B) Assistance to a land bank fast track authority in clearing
16 or quieting title to, or selling or otherwise conveying, property
17 owned by or under the control of a land bank fast track authority
18 or the acquisition of property by the land bank fast track
19 authority if the acquisition of the property is for economic
20 development purposes.
21 (C) Assistance to a municipality or authority in clearing or
22 quieting title to, or selling or otherwise conveying, property
23 owned by or under the control of a municipality or authority or the
24 acquisition of property by a qualified local governmental unit or
25 authority if the acquisition of the property is for economic
26 development purposes.
27 (v) For eligible activities on eligible property that is
28 included in a transformational brownfield plan, any demolition,
29 construction, restoration, alteration, renovation, or improvement
KAS 06969'24 *
 9
1 of buildings or site improvements on eligible property, including
2 infrastructure improvements that directly benefit eligible
3 property.
4 (vi) For eligible activities on eligible property that is a
5 qualified facility that is not located in a qualified local
6 governmental unit and that is a facility, functionally obsolete, or
7 blighted, the following additional activities:
8 (A) The activities described in subparagraph (i).
9 (B) Infrastructure improvements that directly benefit eligible
10 property.
11 (C) Site preparation that is not a response activity.
12 (p) "Eligible property" means either of the following:
13 (i) Except as otherwise provided in sub-subparagraph (G),
14 property for which eligible activities are identified under a
15 brownfield plan that was used or is currently used for commercial,
16 industrial, public, or residential purposes, including personal
17 property located on the property, or former dumps, landfills, and
18 other areas filled with nonnative material, to the extent included
19 in the brownfield plan, and that meets 1 or more of the following
20 conditions listed in sub-subparagraphs (A) to (F):
21 (A) Is in a qualified local governmental unit and is a
22 facility or a site or property as those terms are defined in part
23 213, historic resource, functionally obsolete, or blighted and
24 includes parcels that are adjacent or contiguous to that property
25 if the development of the adjacent and contiguous parcels is
26 estimated to increase the captured taxable value of that property.
27 (B) Is not in a qualified local governmental unit and is a
28 facility, historic resource, functionally obsolete, blighted, or a
29 site or property as those terms are defined in part 213, and
KAS 06969'24 *
 10
1 includes parcels that are adjacent or contiguous to that property
2 if the development of the adjacent and contiguous parcels is
3 estimated to increase the captured taxable value of that property.
4 (C) Is tax reverted property owned by or under the control of
5 a land bank fast track authority.
6 (D) Is a transit-oriented development or transit-oriented
7 property.
8 (E) Is located in a qualified local governmental unit and
9 contains a targeted redevelopment area.
10 (F) Is undeveloped property that was eligible property in a
11 previously approved brownfield plan abolished under section 14(8).
12 (G) Eligible property does not include qualified agricultural
13 property exempt under section 7ee of the general property tax act,
14 1893 PA 206, MCL 211.7ee, from the tax levied by a local school
15 district for school operating purposes to the extent provided under
16 section 1211 of the revised school code, 1976 PA 451, MCL 380.1211.
17 (ii) Housing property for which eligible activities are
18 identified under a brownfield plan implemented under section 13
19 only, including personal property located on the property, to the
20 extent included in the brownfield plan. Eligible property does not
21 include housing property for which eligible activities are
22 identified under a transformational brownfield plan implemented
23 under section 13c.
24 (q) "Environmental insurance" means liability insurance for
25 environmental contamination and cleanup that is not otherwise
26 required by state or federal law.
27 (r) "Facility" means that term as defined in part 201.
28 (s) "Fiscal year" means the fiscal year of the authority.
29 (t) "Former mill" means a former mill that has not been used
KAS 06969'24 *
 11