Today the House Commerce committee took up HB 4996, legislation to enable crowdfunding, the idea of funding projects or startups by obtaining small sums of money from many individuals.  HB 4996 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.

There were some concerns from some of the representatives on the committee not about the idea and intent of the legislation but regarding the level of safety built in for those investing so there may be a new draft with amendments coming forth.

We see this as a creative approach to economic development in the state of Michigan.  It is no secret that entrepreneurs are one of the keys to economic success.  Entrepreneurship is among the League’s 8 key assets to creating vibrant, successful, 21^st century communities.  Studies have shown the communities with the largest growth rate are those in which entrepreneurs are flocking to.  These very entrepreneurs are finding it difficult to pull together the necessary investments to start their businesses.  The investment strategy allowed for under this legislation will help to close the gap and make the entrepreneurs dream of starting a business and having a presence in the community very real.  Entrepreneurs help to make our local municipalities flourish and helping these businesses succeed makes for strong local and regional economies. Local communities are doing their part in identifying the aspects of a community that entrepreneurs seek out in places where they want to set up shop but that doesn’t matter if there isn’t a means for them to get off the ground and running or to grow their business. This legislation will provide another avenue for other local individuals to invest in their community in a new way by supporting the businesses they know best.  Healthy local economies and healthy communities go hand in hand.

It is exciting and refreshing to be able to be supportive of such a creative and positive economic development effort at the state level.  We want to thank Rep. Jenkins for all of her work on this and for championing this issue.  Also a huge thank you to Chris Miller, city of Adrian, and his team for all of their work on this too.

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

On Thursday, Rep. Amanda Price, chair of the House Local Government Committee, took general testimony on the problems local communities and organizations are having when attempting to deal with blighted properties in their area.  There were great discussions on many of problems being faced.  Officials from the city of Ypsilanti, city of Jackson and city of Niles were among the group to testify.

Among the many topic areas of discussion were squatters, the lengthy foreclosure process when a property is sitting vacant, the problems a second auction presents when dealing with foreclosed properties, and not knowing contact information for bank owned properties.

The committee hearing brought to light many of the hurdles local communities are facing when trying to eradicate blight from their area.  We are encouraged by the amount of interested in discussing this topic and we are thankful to Rep. Amanda Price for taking this testimony in her committee. We look forward to working the chair and the rest of the committee members as this issue develops further.

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

The Michigan Chapter of the National Brownfield Association, in partnership with several other organizations including the MEDC and the MDEQ, is sponsoring a program at the Lansing Center on November 13.

The agenda will include the latest developments on brownfield redevelopment initiatives, including legislative and policy changes under Act 381, the MDEQ Grant and Loan Program, the Community Revitalization Program, and Part 201. You will hear about new Due Care developments, vapor intrusion  developments and new ASTM standards and how these changes affect redevelopment.  Experts will also describe environmental insurance products that can help brownfield redevelopment projects as well as case studies of two prominent brownfield projects in the state of Michigan.  Speakers will include representatives of the MEDC, the MDEQ, and the private sector.

The program will run from 9:00 a.m. until approximately 3:00 p.m., and lunch will be provided.

Registration information will be forthcoming within the next two weeks. Stay tuned.

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

SB 247 (Sen Virgil Smith – Detroit), a bill to establish a 2 am to 4 am liquor licenses in DDAs, had a testimony only hearing today in the Senate Regulatory Reform Committee.  This legislation would allow an on-premise license to apply to the Michigan Liquor Control Commission for a permit to serve alcohol from 2 am to 4 am for a $10,000 fee.  The $10,000 fee is dispersed as follows: 85% to the local policy department, 5% to local municipality for administrative purposes, and 10% to the Michigan Liquor Control Commission for administrative purposes.

In the introduced bill, there is no local government approval needed before a license is given.  The $10,000 fee is also a very low number and wouldn’t provide the needed financial support for a local unit of government in providing adequate policing of these establishments from 2 am to 4 am.  The League is opposed to the legislation as introduced.  However, we have had great conversations with Sen. Smith and his staff and he is working with us on both of our issues.  I would like to thank Sen. Smith and his staff for all of their work in addressing our concerns.

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

Yesterday SB 313, legislation that could cripple local rental inspection programs, was passed out of the Senate Local Government and Elections committee around 5:20 pm.  It is now on the senate floor where the sponsor has publicly committed to working on this before asking for a vote. The League along with about 11 communities testified in opposition to the legislation.  We also had a number of communities submit written testimony to the committee members. A substitute was adopted that reinserted language that was stricken from the law in the introduced version saying municipality could inspect recurring offenders on a more frequent basis (thus continuing to allow the frequent inspections of repeat offenders).

The legislation, which affects communities over 10,000, limits both registration fees and inspection fees for rental inspections as well as changes the timeline for inspections to not less than 6 years but no longer than 10 years. The bill would also require an inspector to inform the lessee of their right to refuse an inspection and request and obtain permission from the lessee to inspect. Here is a memo with concerns the League has and which were conveyed by all the members during the hearing yesterday: SB313 Memo SenRobertson_RentalHousing_edits

In a time when we need to be focusing on creating municipalities that attract talented people who want to live, play and stay in our Michigan communities, this is a giant step backwards.  Research shows there are more and more people, spanning multiple generations, who are not looking to own their home.  They want a variety of different housing rental options.  Our local communities across this state are looking, and will continue to look, at housing options to attract people to their communities.  That being said, community leaders need to be able to ensure they have quality, safe, reputable housing options for those residents by having effective rental inspection programs if there is a need for one in the community and at a timeline that fits those needs. General fund dollars are not there to subsidize anymore of the program than they already are (if they are able to at all). Rental registration and inspection fees allow them to recoup some of the cost of providing the service to the community.

I would like to say a big THANK YOU to all of our members who came up to testify and/or submitted written testimony. Hearing directly from the local communities and how this will affect you specifically brings a whole new level of life to the

I would encourage you to contact your senator and let them know the impacts this will have on your rental inspection program if you have one. 

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