Creates the military improvement zone program in the department of community, trade, and economic development. The principal purpose of the program is to authorize and promote financing tools that encourage high quality development and affordable housing in the areas nearest to federal military bases. The program must be administered by the department with the advice of the department of revenue.

Requires the department to conduct an examination of land use tools and funding options that local governments can implement to encourage high-quality development of the neighborhoods nearest the state's military bases; affordable housing for military personnel; and infrastructure for this housing that is consistent with the highest public health, safety, and welfare standards.

Requires the department to conduct a military improvement zone pilot program. The pilot program must promote the development of high-quality infrastructure and affordable housing in improvement zones. The program must also determine the effectiveness of the program in increasing the development of high-quality infrastructure and additional affordable housing in improvement zones.