Michigan House Bill HB5054

Michigan 2023-2024 Regular Session

• Introduced: 9/27/23
• Refer: 9/27/23

Caption

Economic development: renaissance zones; certain property located in a renaissance zone; extend sunset. Amends sec. 8d of 1996 PA 376 (MCL 125.2688d).

Impact

The proposed legislation reflects a focused effort on economic rejuvenation in regions with a significant presence of tool and die businesses. By establishing these recovery zones, the state aims to attract and retain businesses within this niche, providing them with benefits that encourage growth and innovation. This bill stands to impact state laws regarding the establishment and governance of renaissance zones, potentially leading to an increase in job creation and economic stimulation within affected communities. Overall, the initiative is considered a strategic move to reinforce Michigan's industrial landscape, particularly in its manufacturing capabilities.

Summary

House Bill 5054 seeks to amend the Michigan Renaissance Zone Act of 1996, specifically targeting economic development through the enhancement of recovery zones for the tool and die industry. The bill allows the Michigan strategic fund to designate up to 35 tool and die renaissance recovery zones across various municipalities, contingent upon local consent. The duration of these zones can range from a minimum of five years to a maximum of fifteen years, with the possibility of extension under specific conditions. The inclusion of these recovery zones is aimed at bolstering the tool and die sector, which is critical for manufacturing and production in Michigan.

Contention

While the bill generally enjoys support from stakeholders in the tool and die sector, concerns may arise regarding the regulatory implications and local governance. Critics may voice apprehension about the extent of control granted to the Michigan strategic fund versus local authorities. The flexibility in modifying existing recovery zones and adding new businesses might also raise questions about the resource allocation and fairness in designating benefits. Thus, there might be a need for ongoing discussions to balance state initiatives with local interests, ensuring that the benefits of the renaissance zones are equitably distributed.