Technology (Economic Development)

This bill amends Michigan's zoning enabling act to explicitly include the Data Center Community Benefit Agreement Act as a law that local zoning ordinances must follow. By adding this requirement to the list of existing state laws, the measure ensures that municipalities cannot create zoning rules that conflict with community benefit agreements for data center projects. The legislation also clarifies that local governments cannot regulate oil and gas drilling operations and establishes specific criteria for evaluating mining activities based on factors like safety, traffic, and public interest. Additionally, it protects renewable energy projects approved after January 1, 2021, from having their special land use approvals revoked once substantial construction or financial investment has begun.

This bill amends Michigan's Technology Park Development Act to exempt facilities located in HOPE zones from the technology park facilities tax. The exemption applies for the same duration and to the same extent as existing exemptions provided under the Helping Opportunity Prosper Everywhere (HOPE) Zone Act. The legislation is tied to companion bills that must also be enacted for this change to take effect.

HR 240 is a resolution urging Michigan to pause state tax breaks and subsidies for new data center construction for one year. It directs state agencies to review the fiscal costs, electricity grid impacts, water use, environmental effects, and local governance concerns related to data center development, requiring reports within 12 months. The resolution also tasks specific House committees with examining local zoning, community input, and worker hiring practices for these projects. This applies directly to data center developers seeking state incentives and state agencies managing economic development programs.

HB 5416 amends the Michigan Strategic Fund Act to restructure the fund's governing board. It adds two new private-sector board members appointed by the governor (with input from minority leaders) who must have expertise in venture capital, commercial lending, or technology commercialization. The bill also updates membership requirements to ensure diversity representation (including minority, female, and small business perspectives) and specifies detailed qualifications for private-sector appointees. This change affects how the Michigan Strategic Fund, which administers economic development grants and incentives, is governed and managed.