SENATE BILL NO. 458 March 23, 1999, Introduced by Senators BULLARD and DUNASKISS and referred to the Committee on Natural Resources and Environmental Affairs. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 503 and 74113 (MCL 324.503 and 324.74113), section 503 as amended by 1998 PA 419 and section 74113 as added by 1995 PA 58. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 503. (1) The department shallprotectDO ALL OF THE 2 FOLLOWING: 3 (A) PROTECT and conserve the natural resources of this 4 state.; provide5 (B) PROVIDE and develop facilities for outdoor recreation. 6; prevent7 (C) PREVENT the destruction of timber and other forest 8 growth by fire or otherwise.; promote00021'99 TMV 2 1 (D) PROMOTE the reforesting of forest lands belonging to the 2 state.; prevent3 (E) PREVENT and guard against the pollution of lakes and 4 streams within the state and enforce all laws provided for that 5 purpose with all authority granted by law.; and foster6 (F) FOSTER and encourage theprotectingPROTECTION and 7 propagation of game and fish. 8 (2) The department has the power and jurisdiction over the 9 management, control, and disposition of all land under the public 10 domain, except for those lands under the public domain that are 11 managed by other state agencies to carry out their assigned 12 duties and responsibilities. On behalf of the people of the 13 state, the department may accept gifts and grants of land and 14 other property and may buy, sell, exchange, or condemn land and 15 other property, for any of the purposes contemplated by this 16 part. The department may accept funds, money, or grants for 17 development of salmon and steelhead trout fishing in this state 18 from the government of the United States, or any of its depart- 19 ments or agencies, pursuant to the anadromous fish conservation 20 act, Public Law 89-304, 16 U.S.C. 757a to 757f, and may use this 21 money in accordance with the terms and provisions of that act. 22 However, the acceptance and use of federal funds does not commit 23 state funds and does not place an obligation upon the legislature 24 to continue the purposes for which the funds are made available. 25 (3)(2)The department may lease lands owned or controlled 26 by the department or may grant concessions on lands owned or 27 controlled by the department to any person for any purpose that 00021'99 3 1 the department determines to be necessary to implement this 2 part. In granting a concession, the department shall provide 3 that each concession is awarded at least every 7 years based on 4 extension, renegotiation, or competitive bidding. However, if 5 the department determines that a concession requires a capital 6 investment in which reasonable financing or amortization necessi- 7 tates a longer term, the department may grant a concession for up 8 to a 15-year term. A concession granted under this subsection 9 shall require, unless the department authorizes otherwise, that 10 all buildings and equipmentshallbe removed at the end of the 11 concession's term. Any lease entered into under this subsection 12 shall limit the purposes for which the leased land is to be used 13 and shall authorize the department to terminate the lease upon a 14 finding that the land is being used for purposes other than those 15 permitted in the lease. Unless otherwise provided by law, AND 16 SUBJECT TO SUBSECTION (4), money received from a lease or a con- 17 cession of tax reverted land shall be credited to the fund pro- 18 viding financial support for the management of the leased land. 19MoneySUBJECT TO SUBSECTION (4), MONEY received from a lease of 20 all other land shall be credited to the fund from which the land 21 was purchased. However, money received from program-related 22 leases on these OTHER lands shall be credited to the fund provid- 23 ing financial support for the management of the leased lands. 24 For land managed by the forest management division of the 25 department,of natural resources,that fund is either the 26 forest development fund established pursuant to part 505 or the 27 forest recreation fund created in part 831. For land managed by 00021'99 4 1 the wildlife or fisheries division of the department,of natural2resources,that fund is the game and fish protection fund cre- 3 ated in part 435. 4 (4) MONEY RECEIVED FROM A LEASE OF LAND OWNED OR CONTROLLED 5 BY THE DEPARTMENT IN A PARTICULAR CITY, VILLAGE, OR TOWNSHIP, 6 OTHER THAN A PROGRAM-RELATED LEASE OR A LEASE FOR THE EXTRACTION 7 OF NONRENEWABLE RESOURCES FROM STATE OWNED LANDS, SHALL BE DEPOS- 8 ITED WITH THE STATE TREASURER IN A SPECIAL FUND. THE STATE TREA- 9 SURER MAY RECEIVE MONEY OR OTHER ASSETS FROM ANY SOURCE FOR 10 DEPOSIT INTO ANY SUCH FUND. THE STATE TREASURER SHALL DIRECT THE 11 INVESTMENT OF EACH SUCH FUND. THE STATE TREASURER SHALL CREDIT 12 TO EACH SUCH FUND INTEREST AND EARNINGS FROM INVESTMENTS OF THAT 13 FUND. MONEY IN EACH SUCH FUND AT THE CLOSE OF THE FISCAL YEAR 14 SHALL REMAIN IN THE FUND AND SHALL NOT LAPSE TO THE GENERAL 15 FUND. THE DEPARTMENT SHALL EXPEND MONEY FROM SUCH A FUND, UPON 16 APPROPRIATION, ONLY FOR THE ACQUISITION OF LAND IN THE CITY, VIL- 17 LAGE, OR TOWNSHIP WHERE THE LEASED LAND IS LOCATED FOR RECREA- 18 TIONAL USES OR FOR THE PROTECTION OF THE ACQUIRED LAND BECAUSE OF 19 ITS ENVIRONMENTAL IMPORTANCE OR SCENIC BEAUTY. SUCH A FUND MAY 20 PROVIDE A GRANT TO THE CITY, VILLAGE, OR TOWNSHIP WHERE THE 21 LEASED LAND IS LOCATED FOR THE PURPOSES OF THIS SUBSECTION. 22 (5)(3)When the department sells land, the deed by which 23 the land is conveyed may reserve all mineral, coal, oil, and gas 24 rights to the state only when the land is in production or is 25 leased or permitted for production, or when the department deter- 26 mines that the land has unusual or sensitive environmental 27 features or that it is in the best interest of this state to 00021'99 5 1 reserve those rights as determined by commission policy. 2 However, the department shall not reserve the rights to sand, 3 gravel, clay, or other nonmetallic minerals. When the department 4 sells land that contains subsurface rights, the department shall 5 include a deed restriction that restricts the subsurface rights 6 from being severed from the surface rights in the future. If the 7 landowner severs the subsurface rights from the surface rights, 8 the subsurface rights revert to this state. The deed may reserve 9 to the state the right of ingress and egress over and across land 10 along watercourses and streams. Whenever an exchange of land is 11 made, either with the United States government, a corporation, or 12 an individual, for the purpose of consolidating the state forest 13 reserves, the department may issue deeds without reserving to the 14 state the mineral, coal, oil, and gas rights and the rights of 15 ingress and egress. The department may sell the limestone, sand, 16 gravel, or other nonmetallic minerals. However, the department 17 shall not sell a mineral or nonmetallic mineral right if the sale 18 would violate part 353, part 637, or any other provision of law. 19 The department may sell all reserved mineral, coal, oil, and gas 20 rights to such lands upon terms and conditions as the department 21 considers proper and may sell oil and gas rights as provided in 22 part 610. The owner of such lands as shown by the records shall 23 be given priority in case the department authorizes any sale of 24 such lands, and, unless the landowner waives such rights, the 25 department shall not sell such rights to any other person. For 26 the purpose of this section, mineral rights do not include rights 27 to sand, gravel, clay, or other nonmetallic minerals. 00021'99 6 1 (6)(4)The department may enter into contracts for the 2 sale of the economic share of royalty interests it holds in 3 hydrocarbons produced from devonian or antrim shale qualifying 4 for the nonconventional fuel credit contained in section 29 of 5 the internal revenue code of 1986. However, in entering into 6 these contracts, the department shall assure that revenues to the 7 natural resources trust fund under these contracts are not less 8 than the revenues the natural resources trust fund would have 9 received if the contracts were not entered into. The sale of the 10 economic share of royalty interests under this subsection may 11 occur under contractual terms and conditions considered appropri- 12 ate by the department and as approved by the state administrative 13 board. Funds received from the sale of the economic share of 14 royalty interests under this subsection shall be transmitted to 15 the state treasurer for deposit in the state treasury as 16 follows: 17 (a) Net proceeds allocable to the nonconventional fuel 18 credit contained in section 29 of the internal revenue code of 19 1986, under this subsection shall be credited to the environmen- 20 tal protection fund created in section 503a. 21 (b) Proceeds related to the production of oil or gas from 22 devonian or antrim shale shall be credited to the natural 23 resources trust fund or other applicable fund as provided by 24 law. 25 (7)(5)As used in subsection(4)(6): 26 (a) "Natural resources trust fund" means the Michigan 27 natural resources trust fund established in section 35 of 00021'99 7 1 article IX of the state constitution of 1963 and provided for in 2 section 1902. 3 (b) "Net proceeds" means the total receipts received from 4 the sale of royalty interests under subsection(4)(6) less 5 costs related to the sale. Costs may include, but are not 6 limited to, legal, financial advisory, geological or reserve 7 studies, and accounting services. 8 (8)(6)As used in this section: 9 (a) "Concession" means an agreement between the department 10 and a person under terms and conditions as specified by the 11 department to provide services or recreational opportunities for 12 public use. 13 (b) "Lease" means a conveyance by the department to a person 14 of a portion of the state's interest in land under specific terms 15 and for valuable consideration, thereby granting to the lessee 16 the possession of that portion conveyed during the period 17 stipulated. 18 Sec. 74113.AllSUBJECT TO SECTION 503, ALL state park 19 revenues shall be deposited with the state treasurer, who shall 20 act as the fiscal agent for the department. The state treasurer 21 shall establish a special depositary account to be designated 22 "state park revenue bond receiving fund". The necessary expenses 23 of the fiscal agent incurred by reason of his or her duties under 24 this part shall be paid from the state park revenue bond receiv- 25 ing fund. The commission may designate banks or trust companies 26 to act as paying agents for bonds issued pursuant to this part. 00021'99 8 1 The paying agent shall be paid from the state park debt service 2 fund. 00021'99 Final page. TMV