(1) The department may sell tax reverted state lands under its control to school districts, to churches and other religious organizations, to public educational institutions for public purposes, to the United States, and to governmental units of this state and agencies thereof. The lands shall be sold at a price determined by an appraisal, subject to section 2132a. The department may transfer jurisdiction of tax reverted state lands for public purposes to any department, board, or commission of this state. The application for the purchase or transfer of tax reverted state lands shall be made by the proper officers of a school district, church or other religious organization, public educational institution, the United States, or governmental unit or agency thereof upon forms prepared and furnished by the department for that purpose.

    (2) The department may sell tax reverted lands to any entity described in subsection (1), and the transfer of the lands is not subject to a reverter clause. If a conveyance or transfer of lands is made to a governmental unit without a reverter clause, the department may convey or transfer the lands at a price determined by an appraisal, subject to section 2132a, or at a nominal fee that includes any amount paid by the department for maintaining the lands in a condition that is protective of the public health and safety. If lands are conveyed or transferred for a nominal fee and are subsequently sold by the governmental unit for a valuable consideration, the proceeds from such a sale, after deducting the fee and any amount paid by the local governmental units for maintaining the lands in a condition that is protective of the public health and safety, shall be paid to the state, county, township, and school district in which the lands are situated pro rata according to their several interests in the lands arising from the nonpayment of taxes and special assessments on the lands as the interest appears in the offices of the state treasurer or county, city, or village treasurer.

     Notwithstanding section 2101, the department may convey tax reverted land to a public agency described in section 2101 without monetary consideration but subject to a reverter to this state upon termination of the use of the land for which the conveyance was approved by the department or upon any use of the land other than the use for which the conveyance was approved.

     If the state sells or transfers land containing a Michigan trailway established under part 721, an off-road vehicle trail established under part 811, or a snowmobile trail established under part 821, the state shall retain an easement for the continued use of the trail or trailway. If the trail or trailway at issue is subject to an interest by which the trail or trailway could be transformed into or reactivated as a railroad, then the sale or transfer of the trail or trailway is subject to the rail interest and any easement retained by the state on the trail or trailway is also subject to the rail interest.