SENATE BILL NO. 654
A bill to amend 2003 PA 258, entitled
"Land bank fast track act,"
by amending sections 3, 16, and 23 (MCL 124.753, 124.766, and 124.773), section 3 as amended by 2023 PA 52.
the people of the state of michigan enact:
(a) "Authority" means a land bank fast track authority created under section 15, section 23(4), or section 23(5).
(b) "Authority board" means the board of directors of the state authority appointed under section 16.
(c) "Casino" means a casino regulated by this state under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, or a casino at which gaming is conducted under the Indian gaming regulatory act, Public Law 100-497, and all property associated or affiliated with the operation of the casino, including, but not limited to, a parking lot, hotel, motel, or retail store.
(d) "County authority" means a county land bank fast track authority created by a county foreclosing governmental unit under section 23(4).
(e) "Department" means the department of labor and economic opportunity.
(f) "Foreclosing governmental unit" means that term as defined in section 78 of the general property tax act, 1893 PA 206, MCL 211.78.
(g) "Fund" means the land bank fast track fund created in section 18.
(h) "Intergovernmental agreement" means a contractual agreement between 1 or more governmental agencies, including, but not limited to, an interlocal agreement to jointly exercise any power, privilege, or authority that the agencies share in common and that each might exercise separately under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.
(i) "Local authority" means a local land bank fast track authority created by a qualified city under section 23(5), with the local land bank fast track authority having control over properties within its geographical boundaries, unless that local land bank fast track authority approves an intergovernmental agreement as allowed under this act.
(j) "Local unit of government" means a city, village, township, county, or any intergovernmental, metropolitan, or local department, agency, or authority, or other local political subdivision.
(k) "Michigan economic development corporation" means the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999, as amended, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund. If the Michigan economic development corporation is unable for any reason to perform its duties under this act, those duties may be exercised by the Michigan strategic fund. Beginning on the effective date of the economic development fair competition and free enterprise act, the duties of the Michigan economic development corporation or the Michigan strategic fund under this act shall be performed by the bureau of fair competition and free enterprise created in section 7 of the economic development fair competition and free enterprise act.
(l) "Michigan state housing development authority" means the Michigan state housing development authority created under the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.
(m) "Michigan strategic fund" means the Michigan strategic fund as described in the Michigan strategic fund act, former 1984 PA 270. , MCL 125.2001 to 125.2094.
(n) "Qualified city" means 1 of the following:
(i) A city that contains a first class school district.
(ii) A city that has a population of 50,000 or more according to the most recent federal decennial census if that city is not located in a county with a county authority under section 23(4) when the city establishes a local authority under section 23(5).
(iii) A township that has a population of 50,000 or more according to the most recent federal decennial census if that township is not located in a county with a county authority under section 23(4) when the township establishes a local authority under section 23(5). Beginning on the effective date of the amendatory act that added this subparagraph, February 13, 2024, a reference to "city" in section 23(7) includes a township described in this subparagraph.
(o) "State administrative board" means the board created under 1921 PA 2, MCL 17.1 to 17.3, that exercises general supervisory control over the functions and activities of all administrative departments, boards, commissioners, and officers of this state and of all state institutions.
(p) "State authority" means the land bank fast track authority created under section 15 and renamed the state land bank authority by Executive Reorganization Order No. 2019-3, MCL 125.1998.
(q) "Tax reverted property" means property that meets 1 or more of the following criteria:
(i) The property was conveyed to this state under former section 67a of the general property tax act, 1893 PA 206, and subsequently was not sold at a public auction under former section 131 of the general property tax act, 1893 PA 206, except property described in former section 131 of the general property tax act, 1893 PA 206, that is withheld from sale by the director of the department of natural resources as authorized in that section.
(ii) The property was conveyed to this state under former section 67a of the general property tax act, 1893 PA 206, and subsequently was either redeemed by a local unit of government or transferred to a local unit of government under section 2101 or 2102 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.2101 and 324.2102, or under former section 461 of 1909 PA 223, except property transferred to a local unit of government that is subject to a reverter clause under which the property reverts to this state upon on transfer by the local unit of government.
(iii) The property was subject to forfeiture, foreclosure, and sale for the collection of delinquent taxes as provided in sections 78 to 79a of the general property tax act, 1893 PA 206, MCL 211.78 to 211.79a, and both of the following apply:
(A) Title to the property vested in a foreclosing governmental unit under section 78k of the general property tax act, 1893 PA 206, MCL 211.78k.
(B) The property was offered for sale at an auction but not sold under section 78m of the general property tax act, 1893 PA 206, MCL 211.78m.
(iv) The property was obtained by or transferred to a local unit of government under section 78m of the general property tax act, 1893 PA 206, MCL 211.78m.
(v) Pursuant to the requirements of a city charter, the property was deeded to or foreclosed by the city or a department or agency of the city for unpaid delinquent real property taxes.
(vi) Pursuant to the requirements of a township charter, the property was deeded to or foreclosed by the township or a department or agency of the township for unpaid delinquent real property taxes.
Sec. 16. (1) The purposes, powers, and duties of the state authority are vested in and shall be exercised by a board of directors. The authority board shall consist of 7 members. The governor shall appoint 4 residents of this state as members of the authority board. The members of the authority board shall serve terms of 4 years. In appointing the initial members of the authority board, the governor shall designate 2 to serve for 4 years, 1 to serve for 3 years, and 1 to serve for 2 years. All of the following shall also serve as members of the authority board:
(a) The director of the department or his or her designee.
(b) The chief executive officer of the Michigan economic development corporation or his or her designee.director of the bureau of fair competition and free enterprise created in section 7 of the economic development fair competition and free enterprise act or his or her designee.
(c) The executive director of the Michigan state housing development authority or his or her designee.
(2) Upon On appointment to the authority board under subsection (1) and upon on the taking and filing of the constitutional oath of office prescribed in section 1 of article XI of the state constitution of 1963, a member of the authority board shall enter the office and exercise the duties of the office. A member of the authority board may be removed by the governor as provided in section 10 of article V of the state constitution of 1963.
(3) Regardless of the cause of a vacancy on the authority board, the governor shall fill a vacancy in the office by appointment in the same manner as an appointment under subsection (1). A vacancy shall must be filled for the balance of the unexpired term of the office. A member of the authority board shall hold office until a successor has been appointed and qualified.
(4) The authority board shall elect a chairperson and a vice-chairperson from among its members. Members of the authority board shall serve without compensation, but shall be reimbursed for actual and necessary expenses.
(5) A state officer or director who is a member of the authority board may designate a representative from his or her department or agency as a voting member of the authority board for 1 or more meetings.
(6) A member of the authority board, officer, employee, or agent of the state authority shall discharge the duties of his or her position in a nonpartisan manner, with good faith, and with that degree of diligence, care, and skill that an ordinarily prudent person would exercise under similar circumstances in a like position. In discharging the duties of his or her position, a member of the authority board or an officer, employee, or agent, when acting in good faith, may rely upon on the opinion of counsel for the state authority, upon on the report of an independent appraiser selected with reasonable care by the board, or upon on financial statements of the authority represented to the member of the authority board or officer, employee, or agent of the state authority to be correct by the president or the officer of the state authority having charge of its books or account, or stated in a written report by a certified public accountant or firm of certified public accountants fairly to reflect the financial condition of the state authority.
Sec. 23. (1) An All of the following provisions apply regarding an intergovernmental agreement related to economic development:
(a) Until the effective date of the economic development fair competition and free enterprise act, an authority may enter into an intergovernmental agreement with the Michigan economic development corporation for the joint exercise of powers and duties under this act, of the powers and duties of the authority and the Michigan economic development corporation, and for the provision of economic development services related to the activities of the authority.
(b) Beginning the effective date of the economic development fair competition and free enterprise act, an authority may enter into an intergovernmental agreement with the bureau for the joint exercise of powers and duties under this act and of the powers and duties of the authority and the bureau, and for the provision of economic development services related to the activities of the authority.
(c) If an agreement under subdivision (a) remains in effect on the effective date of the economic development fair competition and free enterprise act, the bureau shall acquire and succeed to all of the rights, properties, obligations, and duties of the Michigan economic development corporation or the Michigan strategic fund under that agreement.
(2) An authority may enter into an intergovernmental agreement with the Michigan state housing development authority for the joint exercise of powers and duties under this act, of the powers and duties of the authority and the Michigan state housing development authority, and for the provision of redevelopment services related to the activities of the authority.
(3) A county, city, qualified city, township, or village may enter into an intergovernmental agreement with the state authority providing for the transfer to the authority of tax reverted property held by the county, city, township, or village, for title clearance, for the disposition of the proceeds from the sale of the property, and for other activities authorized under this act, including the return or transfer of property under the control of the authority to the county, city, township, or village. An intergovernmental agreement under this subsection may not provide for a separate legal or administrative entity to administer or execute the agreement under section 7 of the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.507.
(4) A county foreclosing governmental unit may, with the approval of the board of commissioners for that county and, if that county has an elected county executive, with the concurrence of the elected county executive, enter into an intergovernmental agreement with the state authority providing for the exercise of the powers, duties, functions, and responsibilities of an authority under this act and for the creation of a county authority to exercise those functions. If a county authority is created under this subsection, the treasurer of the county shall be a member of the authority board.
(5) A qualified city may enter into an intergovernmental agreement with the state authority providing for the exercise of the powers, duties, functions, and responsibilities of an authority under this act and for the creation of a local authority to exercise those functions.
(6) An intergovernmental agreement under subsection (4) or (5) shall must provide for all of the following:
(a) The incorporation of a county or local authority as a public body corporate.
(b) The name of the authority.
(c) The size of the initial governing body of the county or local authority, which shall must be composed of an odd number of members.
(d) The qualifications, method of selection, and terms of office of the initial board members.
(e) A method for the adoption of articles of incorporation by the governing body of the county or local authority.
(f) A method for the distribution of proceeds from the activities of the county or local authority.
(g) A method for the dissolution of the local or county authority and for the withdrawal from the authority of any governmental agencies involved.
(h) Any other matters considered advisable by the participating governmental agencies, consistent with this act.
(7) If under the charter of a qualified city the qualified city collects delinquent city real property taxes and does not return the delinquent taxes to the treasurer of the county in which the qualified city is located under the general property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, any of the following property held by the qualified city may be transferred to a local authority:
(a) Tax delinquent real property for which a lien has been deemed sold to a city department director under the charter or ordinances of the qualified city, except for property that was deeded to a department director less than 2 years before the proposed transfer to the local authority.
(b) Tax delinquent real property held by the city that has been foreclosed by the qualified city and for which title has vested in the city pursuant to procedures established under the charter or ordinances of the qualified city.
(c) Any tax reverted property owned or under the control of the qualified city.
(8) A qualified city may authorize the transfer with or without consideration of any real property or interest in real property to a local authority including, but not limited to, tax reverted property or interests in tax reverted property held or acquired after the creation of the local authority by the qualified city, with the consent of the local authority.
(9) A qualified city and any agency or department of a qualified city, or any other official public body, may do 1 or more of the following:
(a) Anything necessary or convenient to aid a local authority in fulfilling its purposes under this act.
(b) Lend, grant, transfer, appropriate, or contribute funds to a local authority in furtherance of its purposes.
(c) Lend, grant, transfer, or convey funds to a local authority that are received from the federal government or this state or from any nongovernmental entity in aid of the purposes of this act.
(10) A local authority may reimburse advances made by a qualified city under subsection (9) or by any other person for costs eligible to be incurred by the local authority with any source of revenue available for use of the local authority under this act and enter into agreements related to these reimbursements. A reimbursement agreement under this subsection is not subject to section 305 of the revised municipal finance act, 2001 PA 34, MCL 141.2305.
(11) A local authority may enter into agreements with the county treasurer of the county in which the qualified city is located for the collection of property taxes or the enforcement and consolidation of tax liens within that qualified city for any property or interest in property transferred to the local authority.
(12) Unless specifically reserved or conditioned upon on the approval of the governing body of a qualified city, all powers granted under this act to a local authority may be exercised by the local authority without the approval of the governing body of the qualified city, notwithstanding any charter, ordinance, or resolution to the contrary.
(13) Prior to Before its effectiveness, an intergovernmental agreement under this section shall must be filed with the county clerk of each county where a party to the agreement is located and with the secretary of state.
(14) As used in this section, "bureau" means the bureau of fair competition and free enterprise created in section 7 of the economic development fair competition and free enterprise act.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 631 of the 103rd Legislature is enacted into law.