SB-0551, As Passed House, May 15, 2018
SB-0551, As Passed Senate, May 3, 2018SB-0551,
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 551
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 1902, 1903, and 1907 (MCL 324.1902, 324.1903,
and 324.1907), sections 1902 and 1907 as amended by 2012 PA 619 and
section 1903 as amended by 2011 PA 117.
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.
(c) State owned lands acquired with money appropriated from
related federal funds made available to the state under the
Pittman-Robertson
wildlife restoration act, 16 USC 669 to 669k,
669i, or the Dingell-Johnson sport fish restoration act, 16 USC 777
to
777n.777m.
(d) Money received by the state from net proceeds allocable to
the nonconventional source production credit contained in section
45k of the internal revenue code of 1986, 26 USC 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
source production credit contained in section 45k
of
the internal revenue code of 1986, 26 USC 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
source
production credit contained in section 45k of the internal
revenue
code of 1986, 26 USC 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.
(2) (3)
The trust fund may receive
appropriations, money, or
other things of value.
(3) (4)
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 38.1140m.38.1141.
(4) (5)
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 cumulative total amount
of unexpended interest and earnings held by the trust fund, 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)
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. 1903. (1) Subject to the limitations of this part and of
section 35 of article IX of the state constitution of 1963, the
interest and earnings of the trust fund in any 1 state fiscal year
may be expended in subsequent state fiscal years only for the
following purposes:
(a) The acquisition of land or rights in land for recreational
uses or protection of the land because of its environmental
importance or its scenic beauty.
(b) The development of public recreation facilities.
(c) The administration of the fund, including payments in lieu
of taxes on state-owned land purchased through the trust fund. The
legislature shall make appropriations from the trust fund each
state fiscal year to make full payments in lieu of taxes on state-
owned land purchased through the trust fund, as provided in section
2154.
(2)
In addition to the money described in subsection (1), 33-
1/3%
of the money, exclusive of interest and earnings, received by
the
trust fund in any state fiscal year may be expended in
subsequent
state fiscal years for the purposes described in
subsection
(1). However, the authorization for the expenditure of
money
provided in this subsection does not apply after the state
fiscal
year in which the total amount of money in the trust fund,
exclusive
of interest and earnings and amounts authorized for
expenditure
under this section, exceeds $500,000,000.00.
(2) (3)
An expenditure from the trust fund
may be made in the
form of a grant to a local unit of government or public authority,
subject to all of the following conditions:
(a) The grant is used for the purposes described in subsection
(1).
(b) The grant is matched by the local unit of government or
public authority with at least 25% of the total cost of the
project.
(3) (4)
Not less than 25% of the total
amounts made available
for expenditure from the trust fund from any state fiscal year
shall be expended for acquisition of land and rights in land, and
not more than 25% of the total amounts made available for
expenditure from the trust fund from any state fiscal year shall be
expended for development of public recreation facilities.
(4) (5)
If property that was acquired with
money from the
Senate Bill No.
551 as amended May 3, 2018
trust
fund is subsequently sold or transferred by the this state
to
a
nongovernmental entity, the this
state shall forward to the state
treasurer for deposit into the trust fund an amount of money equal
to the following:
(a) If the property was acquired solely with trust fund money,
the greatest of the following:
(i) The net proceeds of the sale.
(ii) The fair market value of the property at the time of the
sale or transfer.
(iii) The amount of money that was expended from the trust
fund to acquire the property.
(b) If the property was acquired with a combination of trust
fund money and other restricted funding sources governed by federal
or state law, an amount equal to the percentage of the funds
contributed by the trust fund for the acquisition of the property
multiplied by the greatest of the amounts under subdivision (a)(i),
(ii), and (iii).
Sec. 1907. (1) The board shall determine which lands and
rights
in land within the this 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. The list prepared under this subsection shall be based
upon the accounting of revenues available for expenditure as
described in the report prepared under section 1902(4) and upon <<CONSIDERATION
Senate Bill No.
551 as amended May 3, 2018
OF ANY CONSENSUS RECOMMENDATION SUBMITTED UNDER SUBSECTION (2)
THAT IS CONSISTENT WITH SECTION 35 OF ARTICLE 9 OF THE STATE CONSTITUTION OF 1963.>>
(2) By December 1 of each year, the governor or his or her
designee, the state treasurer or his or her designee, the senate
majority leader or his or her designee, and the speaker of the
house of representatives or his or her designee, and 1 member of
the board selected by the board, shall <<MEET AND DEVELOP A CONSENSUS
RECOMMENDATION TO BE SUBMITTED TO THE BOARD ON THE AMOUNT OF
>> money that should be made available to fund each of the
following:
(a) Acquisitions under section 1903(1)(a).
(b) Development projects under section 1903(1)(b).
(c) Administration of the trust fund under section 1903(1)(c).
(d) If there is additional money available after funding
recommendations are made for subdivisions (a), (b), and (c), an
amount that should be retained by the trust fund to mitigate
potential future investment return fluctuations.
(3)
In preparing the list under this subsection (1),
the board
shall do all of the following:
(a) Give a preference to the following:
(i) A project or acquisition that is located within a local
unit of government that has adopted a resolution in support of the
project or acquisition.
(ii) The acquisition of land and rights in land for
recreational trails that intersect the downtown areas of cities and
villages.
(b) Identify each parcel of land that is recommended for
acquisition by legal description and include the estimated cost of
acquisition and assessed value.
(c) Provide a scoring of each parcel of land recommended for
acquisition individually.
(d) Give consideration to an acquisition that meets either or
both of the following:
(i) Is located within a county that contains 50% or more
privately owned land.
(ii) Allows motorized recreational use.
(4) (2)
In preparing the list of lands to
be acquired or
developed under subsection (1), the following apply:
(a) The board shall not include an acquisition of land on the
list 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.
(5) (3)
The list prepared under subsection
(1) shall be
accompanied by estimates of total costs for the proposed
acquisitions and developments.
(6) (4)
The board shall supply with the
list prepared under
subsection (1) a statement of the guidelines used in listing and
assigning the priority of these proposed acquisitions and
developments.
(7) (5)
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.
(8) (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.