2002 House Bill 6070

Introduced in the House

May 9, 2002

Introduced by Rep. Jim Howell (R-94)

To create a “Michigan Next Energy Authority” with broad authority to subsidize alternative energy technology projects using various state resources. The Authority would oversee an alternative energy renaissance zone; manage and develop a master plan for the alternative energy zone; finance and aid in the construction of alternative energy technology businesses and infrastructures located within the zone; acquire, construct, and improve an alternative energy technology project, including land, buildings, equipment, and various types of facilities for alternative energy technology; issue bonds and notes; and enter into an interlocal agreement with a university, agency, or local government to accomplish the above. The bill would transfer to the Authority 817 acres of state land in Washtenaw County, and allow it to convey, sell, lease, or otherwise dispose of its real or personal property to any public or private person for public purposes. Finally, the bill would create a "Michigan Alternative Energy Technology Fund” to fund general operations and to secure notes and bonds of the Authority.

Referred to the Committee on Energy and Technology

June 5, 2002

Substitute offered

To replace the previous version of the bill with one which narrows very slightly the powers of the “Michigan Next Energy Authority” (MNEA), focusing some of its activities more explicitly on the actual two alternative energy renaissance zones that are contemplated under the revised package, and placing certain limits on the tax exemptions the authority could grant. The land to be transferred to MNEA is four parcels of state-owned land located in York Township (Washtenaw County) comprising approximately 724 acres, which previously had been used for hospitalization of mentally ill patients. Any state school tax exemptions granted by MNEA to selected persons would have to be repaid to the school aid fund from the state general fund (funded by other state tax revenues). MNEA would be prohibited from operating an "alternative energy technology business" or otherwise engaging in the manufacturing of any commercial products. However the authority would still be granted broad enumerated powers, the enumeration of which would not to be construed as a limitation on MNEA's general authority. The substitute requires the MNEA chief executive officer to be a resident of Michigan.

The substitute passed by voice vote

Amendment offered by Rep. Ken Bradstreet (R-105)

To more narrowly focus some of MNEA's authority more explicitly on the actual alternative energy renaissance zone, and remove the property tax exemption from any property owned by MNEA that is outside the zone.

The amendment passed by voice vote

Amendment offered by Rep. Ken Bradstreet (R-105)

To limit the creation of new alternative energy renaissance zones to one specific 724 acre parcel in York Township (Washtenaw County).

The amendment passed by voice vote

Amendment offered by Rep. David Woodward (D-34)

To require the MNEA chief financial officer (as well as the chief executive officer) to be a resident of Michigan.

The amendment passed by voice vote

Amendment offered by Rep. David Woodward (D-34)

To limit the salary of the MNEA chief executive officer to that of the lieutenant governor.

The amendment failed 44 to 56 (details)

Amendment offered by Rep. David Woodward (D-34)

To require the state to reimburse from the state general fund (funded by other state tax revenues) a local school district for the value of any school tax exemptions granted by MNEA, including local bond and other millages, at a rate based on the current value of the exempt property.

The amendment failed 49 to 53 (details)

Passed in the House 103 to 1 (details)

To create a “Michigan Next Energy Authority” (MNEA) with broad authority to subsidize alternative energy technology projects using various state resources. MNEA would oversee an alternative energy renaissance zone; manage and develop a master plan for the alternative energy zone; finance and aid in the construction of alternative energy technology businesses and infrastructures located within the zones; acquire, construct, and improve an alternative energy technology project, including land, buildings, equipment, and various types of facilities for alternative energy technology; issue bonds and notes; and enter into an interlocal agreement with a university, agency, or local government to accomplish the above. MNEA would be responsible for granting to selected persons various personal property tax and Single Business Tax exemptions created by the companion bills. Any state school tax exemptions would have to be repaid to the school aid fund from the state general fund (funded by other state tax revenues). The bill would transfer to MNEA 724 acres of state land in York Township (Washtenaw County), and allow it to convey, sell, lease, or otherwise dispose of its real or personal property in the zone to any public or private person for public purposes. Finally, the bill would create a "Michigan Alternative Energy Technology Fund” to fund general operations and to secure notes and bonds of the Authority. MNEA would be prohibited from operating an "alternative energy technology business" or otherwise engaging in the manufacturing of any commercial products, but would be granted broad enumerated powers, the enumeration of which would not to be construed as a limitation on MNEA's general authority. The MNEA chief executive officer and chief financial officer would have to be residents of Michigan.

Received in the Senate

June 5, 2002