The package of blight bills related to communities who have administrative hearings bureaus, SB 35-39, passed the full House of Representatives today.  An amendment was added on the house floor from Rep. Banks (D-Grosse Pointe Woods) that would state any property holding a principal residence exemption containing blight violations would not be subject to foreclosure unless it also was delinquent on taxes.  These bills now move back to the Senate for concurrence.

There have been problems throughout the state with the lack of appropriate contact information when dealing with blighted property notices on financial institution owned property.  In response to those concerns and because of this legislation, the Michigan Department of Information and Financial Services is currently working on integrating a list of registered agents at financial institutions with their website.  In the meantime, anyone who might be interested in that agent information can call DIFS toll-free at 877-999-6442 or DIFS Corporate Review directly at 517-373-7236.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The House Regulatory Reform Committee passed out of committee HB 4257 (Denby, R-Fowlerville), a reintroduction from last session.  This bill amends the Michigan liquor control code dealing with redevelopment liquor licenses. According to a recent determination by the Liquor Control Commission, only businesses in cities are eligible for redevelopment liquor licenses.  This determination is counter to the last six years, where the Liquor Control Commission has allowed the redevelopment licenses in TIF districts to be for cities, villages, or townships.  This bill is an attempt to rectify this issue and clarifies eligibility for the redevelopment liquor licenses in the development districts to cities, villages, and townships. We have heard from multiple villages worried about this because their redevelopment efforts are coming to a halt without being eligible for these redevelopment licenses.

Towards the end of session last year this bill became an issue because the Restaurant Association and the Licensed Beverage Association wanted an amendment that expanded the search for a quota license to the entire county instead of only the municipality prior to seeking a redevelopment license, a problem from the League’s perspective because there are so many different cost inconsistencies from one area of the county to another.  It passed out of the House last session without the amendment but there was a commitment by the chair of the senate committee it was in to add that amendment on.  However, it died in that committee at the end of session.

Rep. Denby is committed to doing this for the communities who have been using this as a redevelopment tool but will now not be able to do so unless this is changed.  Knowing what happened last session and that it would be the same fight this session, she and her staff tried to work a solution that would work for both municipalities and the industry.  The substitute version states the countywide search is only necessary in the areas where the license fair market value is the same as the municipality where the establishment is located.

This bill moves onto the full house.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

A bill to allow local communities to enter into written agreements with other local governmental units for election activities passed the Michigan House of Representatives yesterday and now heads to the senate. HB 4878 would allow a city or township clerk to enter into a written contract with the county or another city or township to handle election administration duties such as handling absent voter ballot applications/ballots and processing voter registrations and maintenance of the qualified voter file.  Two communities (city or township) could also enter into a contract to prepare and conduct election day operations.  The governing body of each of the participating units would have to approve the action by resolution in order for the written agreement to be entered into.  A local unit can terminate this agreement with 60 days written notice to the other participating party.

This legislation also allows a local governmental unit to approve the bureau of elections or a county, city or township to handle an election if the office of the clerk becomes vacant in close proximity to an election.

Nikki Brown is a legislative associate with the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The House Elections and Ethics committee took up a package of bills to limit when new elections could be placed on the ballot yesterday.  HB 4887 (Rep. Dan Lauwers) is among the package (including HB 5115-5116 dealing with schools sponsored by Rep. Lisa Posthumus Lyons) and would only allow local municipalities to place new millages on the ballot for the August regular election date or the November regular election date (straight renewals can be done at any of the four election dates).  The argument of the bill is there is greater voter turnout in the August and November elections so new millages should only be allowed to be voted on during those times. The introduced version of the legislation only allowed a millage to be placed on the ballot for the November General Election but a substitute changing it to each August and November election was adopted.

This is a complete infringement on local control. The funding our municipalities have received from the state by way of revenue sharing/EVIP has been cut by $6 billion in the last decade.  Additionally, Proposal A and Headlee severely limit revenue increases at the local level.  The cuts at the state level coupled with Proposal A and Headlee have left local communities to essentially fend for themselves, which means asking their residents to vote on millages to cover cost of services.  Limiting the timeframe as to when they can ask voters to vote on millages further ties the hands of our local units of government to operate effectively.

The League testified in opposition as did the Michigan Township Association and the Michigan Library Association.  The school groups and the Michigan Association of Municipal Clerks are opposed as well.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The Michigan House of Representatives passed the crowdfunding legislation, HB 4996, with 108 yes votes and 0 no votes!  It moves one step closer to full passage and assisting a segment of our economy that will prove to be huge economic drivers, those new small businesses and those wishing to expand.

HB 4996, a creative approach to economic development, will allow the sales of securities to an unlimited number of non-accredited investors, provided the issuer registers with the State of Michigan.  Any Michiganders who do not fit the federal definition of an accredited investor are given the opportunity to support their local entrepreneurs, existing small businesses, and real estate investments.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

The package of blight bills related to communities who have administrative hearings bureaus, SB 35-39, passed the House Local Government committee on Thursday. If you recall, financial institutions and credit unions are exempt from the enhanced penalties outlined in the legislation. However, and amendment was added stating that any entity that is exempt from the legislation (financial institutions, credit unions) must comply with local vacant property and blight ordinances.

Additionally, there has been concern by many communities (both those affected by this legislation and those we are not) with the lack of appropriate contact information when dealing with blighted property notices on financial institution owned property.  In response to those concerns and because of this legislation, the Michigan Department of Information and Financial Services is currently working on integrating a list of registered agents at financial institutions with their website.  In the meantime, anyone who might be interested in that agent information can call DIFS toll-free at 877-999-6442 or DIFS Corporate Review directly at 517-373-7236.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.