SB-1238, As Passed Senate, November 8, 2012

SUBSTITUTE FOR

SENATE BILL NO. 1238

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 1902, 1905, 1907, and 1907a (MCL 324.1902,

324.1905, 324.1907, and 324.1907a), section 1902 as amended by 2004

PA 587, section 1905 as added by 1995 PA 60, section 1907 as

amended by 2008 PA 229, and section 1907a as added by 2002 PA 52.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1902. (1) In accordance with section 35 of article IX of

the state constitution of 1963, the Michigan natural resources

trust fund is established in the state treasury. The trust fund

shall consist of all bonuses, rentals, delayed rentals, and

royalties collected or reserved by the state under provisions of

leases for the extraction of nonrenewable resources from state

owned lands. However, the trust fund shall not include bonuses,

rentals, delayed rentals, and royalties collected or reserved by

the state from the following sources:

(a) State owned lands acquired with money appropriated from

the former game and fish protection fund or the game and fish

protection account of the Michigan conservation and recreation

legacy fund provided for in section 2010.

(b) State owned lands acquired with money appropriated from

the subfund account created by former section 4 of former 1976 PA

204.

related federal funds made available to the state under the

Pittman-Robertson wildlife restoration act, 16 USC 669 to ~~669i,~~

~~commonly known as the federal aid in wildlife restoration act,~~

669k, or the Dingell-Johnson sport fish restoration act, 16 USC 777

to ~~777~~l~~, commonly known as the federal aid in fish restoration~~

~~act.~~777n.

(d) Money received by the state from net proceeds allocable to

the nonconventional ~~fuel~~ source production credit contained in

section 29 45k of the internal revenue code of 1986, 26 USC ~~29,~~

45k, as provided for in section 503.

(2) Notwithstanding subsection (1), until the trust fund

reaches an accumulated principal of $500,000,000.00, $10,000,000.00

of the revenues from bonuses, rentals, delayed rentals, and

royalties described in this section, but not including money

received by the state from net proceeds allocable to the

nonconventional ~~fuel~~ source production credit contained in section

29 45k of the internal revenue code of 1986, 26 USC ~~29,~~ 45k, as

provided for in section 503, otherwise dedicated to the trust fund

that are received by the trust fund each state fiscal year shall be

transferred to the state treasurer for deposit into the Michigan

state parks endowment fund. However, until the trust fund reaches

an accumulated principal of $500,000,000.00, in any state fiscal

year, not more than 50% of the total revenues from bonuses,

rentals, delayed rentals, and royalties described in this section,

but not including net proceeds allocable to the nonconventional

~~fuel~~ source production credit contained in section 29 45k of the

internal revenue code of 1986, 26 USC ~~29,~~ 45k, as provided in

section 503, otherwise dedicated to the trust fund that are

received by the trust fund each state fiscal year shall be

transferred to the Michigan state parks endowment fund. To

implement this subsection, until the trust fund reaches an

accumulated principal of $500,000,000.00, the department shall

transfer 50% of the money received by the trust fund each month

pursuant to subsection (1) to the state treasurer for deposit into

the Michigan state parks endowment fund. The department shall make

this transfer on the last day of each month or as soon as

practicable thereafter. However, not more than a total of

$10,000,000.00 shall be transferred in any state fiscal year

pursuant to this subsection.

~~(3) In addition to the contents of the trust fund described in~~

~~subsection (1), the trust fund shall consist of money transferred~~

~~to the trust fund pursuant to section 1909.~~

(3) ~~(4)~~ The trust fund may receive appropriations, money, or

other things of value.

(4) ~~(5)~~ The state treasurer shall direct the investment of the

trust fund. The state treasurer shall have the same authority to

invest the assets of the trust fund as is granted to an investment

fiduciary under the public employee retirement system investment

act, 1965 PA 314, MCL 38.1132 to ~~38.1140~~l.38.1140m.

(5) ~~(6)~~ The department shall annually prepare a report

containing an accounting of revenues and expenditures from the

trust fund. This report shall identify the interest and earnings of

the trust fund from the previous year, the investment performance

of the trust fund during the previous year, and the total amount of

appropriations from the trust fund during the previous year. This

report shall be provided to the senate and house of representatives

appropriations committees and the standing committees of the senate

and house of representatives with jurisdiction over issues

pertaining to natural resources and the environment.

(6) ~~(7)~~ As used in this section, "Michigan state parks

endowment fund" means the Michigan state parks endowment fund

established in section 35a of article IX of the state constitution

of 1963 and provided for in section 74119.

Sec. 1905. (1) The Michigan natural resources trust fund board

is established within the department. The board shall have the

powers and duties of an agency transferred under a type I transfer

pursuant to section 3 of the executive organization act of 1965,

~~Act No. 380 of the Public Acts of 1965, being section 16.103 of the~~

~~Michigan Compiled Laws.~~ 1965 PA 380, MCL 16.103. The board shall be

administered under the supervision department and the department

shall offer its cooperation and aid to the board and shall provide

suitable offices and equipment for the board.

(2) The board shall consist of 5 members. The members shall

include the director or a member of the commission as determined by

the commission, and 4 residents of the state to be appointed by the

governor with the advice and consent of the senate. An individual

shall not be appointed to serve more than 2 full terms.

(3) The terms of the appointive members shall be 4 years,

except that of those first appointed, 1 shall be appointed for 1

year, 1 shall be appointed for 2 years, 1 shall be appointed for 3

years, and 1 shall be appointed for 4 years.

(4) The appointive members may be removed by the governor for

inefficiency, neglect of duty, or malfeasance in office.

(5) Vacancies on the board shall be filled for the unexpired

term in the same manner as the original appointments.

(6) The board may incur expenses necessary to carry out its

powers and duties under this part and shall compensate its members

for actual expenses incurred in carrying out their official duties.

Sec. 1907. (1) The board shall determine which lands and

rights in land within the state should be acquired and which public

recreation facilities should be developed with money from the trust

fund and shall submit to the legislature in January of each year a

list of those lands and rights in land and those public recreation

facilities that the board has determined should be acquired or

developed with trust fund money, compiled in order of priority. In

preparing the list under this subsection, the board shall ~~give~~ do

all of the following:

(a) Give particular consideration to a project or acquisition

that is located within a local unit of government that has adopted

Senate Bill No. 1238 as amended November 8, 2012

a resolution in support of the project or acquisition.

(b) Identify each parcel of land that is recommended for

acquisition by legal description and include the estimated cost of

acquisition and assessed value.

acquisition individually.

(d) Give consideration to an acquisition that meets any of the

following:

(i) Is located within a county that contains 50% or more

privately owned land.

(ii)>> Allows motorized recreational use.

(e) Give particular consideration to the acquisition of land

and rights in land for recreational trails that intersect the

downtown areas of cities and villages.

(2) In preparing the list of lands to be acquired under

subsection (1), the following apply:

(a) The board shall not participate in the acquisition of land

under either or both of the following circumstances:

(i) If any aspect of the sale was not voluntary on the part of

the seller.

(ii) If the board determines that the seller was harassed,

intimidated, or coerced into selling his or her land by the

department, a local unit of government, or a qualified conservation

organization.

(b) A project or acquisition may be named in honor or memory

of an individual or organization.

(3) ~~(2) This~~ The list prepared under subsection (1) shall be

accompanied by estimates of total costs for the proposed

acquisitions and developments.

(4) ~~(3)~~ The board shall supply with each list prepared under

subsection (1) a statement of the guidelines used in listing and

assigning the priority of these proposed acquisitions and

developments.

(5) ~~(4)~~ The legislature shall approve by law the lands and

rights in land and the public recreation facilities to be acquired

or developed each year with money from the trust fund.

(6) As used in this section, "qualified conservation

organization" means that term as it is defined in section 7o of the

general property tax act, 1893 PA 206, MCL 211.7o.

Sec. 1907a. (1) If within 2 years after a parcel of property

that is approved for acquisition or development by the legislature

has not been acquired or developed in the manner determined by the

board and is not open for public use, the board shall report to the

standing committees of the senate and the house of representatives

with jurisdiction over issues related to natural resources and the

environment on the status of the project and the reason why the

property has not been purchased or developed in the manner

determined by the board. The department shall post on its website a

bimonthly report of project status containing information described

in this subsection.

(2) Following the appropriation of money from the trust fund,

if the public recreation project changes significantly, the board

shall submit the changes to the joint capital outlay subcommittee

of the legislature to review whether the proposed changed project

is consistent with the purpose of the appropriation. As used in

this subsection, "changes significantly" means changes to a project

such that the project would not have been funded had the change

been in place during the evaluation of the project.