MichiganSB 05812025-2026 Regular SessionSenateWALLET

Economic development: downtown development authorities; definition of downtown district; modify. Amends sec. 201 of 2018 PA 57 (MCL 125.4201). TIE BAR WITH: HB 5455'26Last Action: ASSIGNED PA 0005'26 WITH IMMEDIATE EFFECT

Sponsored By: Kevin Hertel (Democratic)

Became Law

Economic development: downtown development authoritiesEconomic development: tax increment financing

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Cities can combine separate downtown areas

The law lets a municipality treat more than one separate area as one downtown district in three cases. It applies if the city makes an agreement with a qualified township. It also applies if a city surrounds another city that lies between the areas. It also applies if the municipality spans the mainland and islands with water between the areas. When these rules are met, the authority plans and finances the combined areas as one district.

Large-city catalyst projects can use school taxes

The law defines a catalyst development project in a city with more than 600,000 people. The project must be designated by the authority and expect at least $300 million in capital investment. Each authority can name only one catalyst project. In those large cities, state education tax and local or intermediate school district taxes levied on or after July 1, 2010, on the captured value count as tax increment revenue. The authority can use those dollars to buy land, do site work, and build the catalyst project, or to repay advances for those costs. This boosts project funding but shifts some school tax dollars in the development area to the project.

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Sponsors & Cosponsors

Sponsor

  • Kevin Hertel

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 142 • No: 24

Senate vote 3/24/2026

ROLL CALL:

Yes: 22 • No: 9 • Other: 6

House vote 3/19/2026

passed; given immediate effect

Yes: 98 • No: 2 • Other: 10

Senate vote 3/11/2026

PASSED

Yes: 22 • No: 13 • Other: 2

Actions Timeline

  1. ASSIGNED PA 0005'26 WITH IMMEDIATE EFFECT

    4/14/2026Senate
  2. FILED WITH SECRETARY OF STATE 3/26/2026 11:37 AM

    4/14/2026Senate
  3. APPROVED BY GOVERNOR 3/26/2026 9:30 AM

    4/14/2026Senate
  4. PRESENTED TO GOVERNOR 3/25/2026 1:36 PM

    3/26/2026Senate
  5. ORDERED ENROLLED

    3/24/2026Senate
  6. FULL TITLE AGREED TO

    3/24/2026Senate
  7. GIVEN IMMEDIATE EFFECT

    3/24/2026Senate
  8. ROLL CALL: ROLL CALL # 47 YEAS 22 NAYS 9 EXCUSED 6 NOT VOTING 0

    3/24/2026Senate
  9. HOUSE SUBSTITUTE (H-1) CONCURRED IN

    3/24/2026House
  10. RULES SUSPENDED FOR IMMEDIATE CONSIDERATION

    3/24/2026Senate
  11. PASSED BY HOUSE WITH SUBSTITUTE (H-1) WITH IMMEDIATE EFFECT

    3/24/2026House
  12. returned to Senate

    3/19/2026House
  13. inserted full title

    3/19/2026House
  14. passed; given immediate effect Roll Call #104 Yeas 98 Nays 2 Excused 0 Not Voting 10

    3/19/2026House
  15. read a third time

    3/19/2026House
  16. placed on immediate passage

    3/19/2026House
  17. placed on third reading

    3/19/2026House
  18. substitute (H-1) adopted

    3/19/2026House
  19. read a second time

    3/19/2026House
  20. placed on second reading

    3/19/2026House
  21. motion to discharge committee approved

    3/19/2026House
  22. rule suspended

    3/19/2026House
  23. referred to Committee on Economic Competitiveness

    3/11/2026House
  24. read a first time

    3/11/2026House
  25. received on 03/11/2026

    3/11/2026House

Bill Text

  • Public Act

    3/26/2026

  • As Passed by the Senate

    3/24/2026

  • Senate Concurred

    3/24/2026

  • As Passed by the House

    3/19/2026

  • Introduced

    9/22/2025

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