SENATE BILL NO. 800

March 14, 2024, Introduced by Senators LAUWERS and DALEY and referred to the Committee on Appropriations.

A bill to authorize the state administrative board to convey state-owned property in Tuscola County; to prescribe conditions for the conveyance; to provide for the powers and duties of certain state governmental officers and entities; and to provide for disposition of revenue derived from the conveyance.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Net revenue" means the proceeds from the sale of the property less reimbursement for any costs to the department of technology, management, and budget associated with the sale, including, but not limited to, administrative costs, including employee wages, salaries, and benefits; costs of reports and studies and other materials necessary to the preparation of sale; environmental remediation; legal fees; and any litigation costs related to the conveyance.

(b) "Public use" means, subject to subdivision (c), actual use of the property by the Tuscola Area Airport Authority for any of the following:

(i) General government administration.

(ii) Publicly owned and operated correctional facilities.

(iii) Law enforcement purposes.

(iv) Emergency management response purposes.

(v) Public educational use.

(vi) Public transportation.

(vii) Public parks and recreational areas.

(viii) Public health uses.

(ix) Wildlife conservation or restoration.

(c) Public use does not include use by a for-profit enterprise or any use that is closed to the public.

Sec. 2. (1) The state administrative board, on behalf of this state, may convey by quitclaim deed to the Tuscola Area Airport Authority all or portions of real property described in subsection (2) that is owned by this state and under the jurisdiction of the department of health and human services.

(2) The real property that may be conveyed under this act is described as follows:

A parcel of land situated in Sections 18 and 19, Town 12 North, Range 9 East, Township of Indianfields, County of Tuscola, State of Michigan, and described as follows, to-wit:

Beginning at the Southeast Corner of Section 12, Town 12 North, Range 8 East; said point being on the centerline of Michigan State Highway M-81; thence, along said centerline of highway for the following two (2) courses, along a 250.06 foot curve to the left, having a radius of 34379.29 feet and a chord bearing and distance of South 8935'59" East 250.06 feet; thence South 8935'59" East 566.52 feet; thence North 0158'02" West 33.03 feet to a point on the northerly easement line of Michigan State Highway M-81; thence South 8935'59" East 1323.35 feet to the intersection of said northerly easement line and the North-South one-quarter line of Section 18, T12N-R9E; thence South 0155'28" East, along said North and South one-quarter line, 33.03 feet to the centerline of said highway; thence, along said centerline the following two (2) courses: thence South 8935'59" East 141.21 feet; thence on a 480.79 foot curve to the left having a radius of 2858.85 feet, with a chord bearing and distance of North 8534'57" East 480.23 feet to the centerline of Center Street; thence, along the centerline of said Center Street the following two (2) courses, South 5525'18" East 96.30 feet; thence on a 45.80 foot curve to the left having a radius of 580.47 feet, with a chord bearing and distance of South 6018'22" East 45.79 feet to the north line of the Michigan Central Railroad Company; thence along the north line of said railroad, South 7052'47" West 3023.54 feet to the West line of said section 19; thence North 0112'54" West, along said west line, 1046.88 feet to the Point of Beginning. Parcel contains 36.92 acres of land, more or less.

SUBJECT TO the 66' wide right of way of Center Street over the easterly 33' thereof.

ALSO SUBJECT TO a variable easement for M-81 highway as shown on survey.

ALSO SUBJECT TO the right-of-way of Handy Road over the westerly 33 feet thereof.

ALSO SUBJECT TO all agreements, covenants, easements, right-of-ways, reservations and restrictions of record, if any. Containing 36.92 acres, more or less.

(3) The description of the property in subsection (2) is approximate and, for purposes of a conveyance under this act, may be adjusted as the state administrative board or the department of attorney general considers necessary because of a survey or another legal description.

(4) Real property conveyed under this act includes all surplus, salvage, and scrap property or equipment remaining on the property on the date of the conveyance.

Sec. 3. (1) For a period of not more than 2 years beginning on the effective date of this act, the director of the department of technology, management, and budget shall offer the property described in section 2 to the Tuscola Area Airport Authority for $1.00. The Tuscola Area Airport Authority may acquire the property subject to the conditions prescribed in subsection (2).

(2) A conveyance to the Tuscola Area Airport Authority authorized by this act must include a condition that the property must be used exclusively for public use, and that if a fee, term, or condition is imposed on members of the public for use of the property, or if such a fee, term, or condition is waived, all members of the public must be subject to the same fees, terms, conditions, and waivers.

Sec. 4. (1) The department of the attorney general shall prepare and approve as to legal form a deed authorized by this act.

(2) This state shall not reserve oil, gas, or mineral rights to property conveyed under this act. However, the conveyance authorized under this act must provide that, if the grantee or any successor develops any oil, gas, or minerals found on, within, or under the conveyed property, the grantee or any successor must pay this state 1/2 of the gross revenue generated from the development of the oil, gas, or minerals. A payment under this subsection must be deposited in the general fund.

(3) A conveyance under this act must reserve to this state all aboriginal antiquities, including mounds, earthworks, forts, burial and village sites, mines, or other relics lying on, within, or under the property, with power to this state and all others acting under its authority to enter the property for any purpose related to exploring, excavating, and taking away the aboriginal antiquities.

(4) If property conveyed under this act was used by this state as a historical monument, memorial, burial ground, park, or protected wildlife habitat area, the grantee or any successor shall maintain and protect the property for that purpose in perpetuity in accordance with applicable law.

(5) If property conveyed under this act is used in a manner that violates a condition imposed under section 3 or subsection (2), (3), or (4), this state may reenter and take the property, terminating the grantee's or any successor's estate in the property. An action to regain possession of the property may be brought and maintained by the attorney general on behalf of this state.

(6) If this state reenters and repossesses property under subsection (5), this state is not liable to reimburse any person for any improvements made on the property.

Sec. 5. (1) The department of technology, management, and budget shall manage the conveyance of property to the Tuscola Area Airport Authority under this act.

(2) The department of health and human services is responsible for all due diligence duties and expenses required for prudently and properly maintaining the property until the time of conveyance.

(3) The Tuscola Area Airport Authority shall reimburse this state for demonstrable requested costs incurred to prepare the property for conveyance.

(4) The department of technology, management, and budget may require the Tuscola Area Airport Authority to record the instrument of conveyance under this act with the appropriate register of deeds and provide the department of technology, management, and budget with a copy of the recorded instrument.

(5) The net revenue received from the sale of property under this act must be deposited in the state treasury. The state treasurer shall credit the money deposited to the general fund.