HB-5313, As Passed House, May 4, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5313

                    (As amended May 4, 2004)                                

                                                                             [A bill to amend 1994 PA 451, entitled                                             

"Natural resources and environmental protection act,"                       

by amending section 52706 (MCL 324.52706), as amended by 2002 PA            

356, and by adding section 2150a.]                                          

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

[Sec. 2150a.  (1) The payment in lieu of taxes fund is created in the state treasury.  The fund shall be administered by the department and shall be used only as provided in section 2150.

    (2) Any money, including interest earned by the fund, remaining in the fund at the end of a fiscal year shall be carried over in the fund to the next and succeeding fiscal years and shall not be credited to or revert to the general fund.]

1       Sec. 52706.  (1) The department, the department of treasury,                

2   or other state officer having charge of state land, may sell                

3   homestead, tax, swamp, or primary school land to  municipalities

4   a public agency for forestry purposes, at a price  fixed set by            

5   the department, department of treasury, or other state officer.             

6   However,  land shall not be sold in excess of the amount of land           

7   sold shall not exceed the amount that may be necessary for the              

8   municipality public agency, and any land that is sold shall be            

9   suitable for and used solely for a forestry purpose unless                  

10  conveyed as provided in this section.   When the land described             

House Bill No. 5313 (H-2) as amended May 4, 2004    (1 of 2)

1   in this section Prime land sold to a public agency under this              

2   section shall be used only for a forestry purpose.  When the                

3   prime land is no longer used for a forestry purpose, the land               

4   shall revert to  the this state.                                           

5   (2) Except as provided in subsection (3), the department                    

6   shall not retain a reversionary interest in municipal forestland            

7   conveyed to a public agency under this section before the                   

8   effective date of the amendatory act that added this subsection.            

9   The department shall relinquish any such reversionary interest              

10  within 3 years after the effective date of the amendatory act               

11  that added this subsection or within 90 days after the department           

12  receives a written request for relinquishment from the public               

13  agency that owns the municipal forestland subject to the                    

14  reversionary interest, whichever is earlier.  A public agency to            

15  which a reversionary interest was relinquished under this                   

16  subsection shall not convey the municipal forestland formerly               

17  subject to the reversionary interest for less than fair market              

18  value.  If a public agency to which a reversionary interest was             

19  relinquished under this subsection conveys the municipal                    

20  forestland formerly subject to the reversionary interest, the               

21  public agency shall distribute the proceeds of the conveyance as            

22  follows:                                                                    

23      (a) Except as provided in subdivision (b), 50% of the                       

24  proceeds shall be retained by that public agency and [the remaining 50%  

25  of the proceeds shall be submitted to the department of treasury for

26  deposit as follows:                                                             

       (i) To the fire protection fund created in section 732a of the Michigan vehicle code, 1949 PA 300, MCL 257.732a, until the fire protection fund is fully funded as provided by law.

     (ii) If the fire protection fund created in section 732a of the Michigan vehicle code, 1949 PA 300, MCL 257.732a, is fully funded as provided by law, to the land exchange facilitation fund created in section 2134, until the land exchange facilitation fund is fully funded as provided by law.

    (iii) If both the fire protection fund created in section 732a of the Michigan vehicle code, 1949 PA 300, MCL 257.732a, and the land exchange facilitation fund created in section 2134 are fully funded as provided by law, all of the remaining balance to the payment in lieu of taxes fund created in section 2150a.]

27      (b) If the municipal forestland is conveyed to another                      

1   public agency, all of the proceeds shall be retained by the                 

2   public agency conveying the municipal forestland.                           

3       (3) Subsection (2) does not apply to prime land.                            

4       (4) A public agency to which a reversionary interest is                     

5   relinquished under subsection (2) shall not convey the municipal            

6   forestland formerly subject to the reversionary interest to a               

7   third person unless the public agency has conducted a public                

8   hearing on the proposed conveyance.  Notice of the public hearing           

9   shall be published at least twice in a newspaper of general                 

10  circulation in the county or counties where the municipal                   

11  forestland is located, not more than 28 or less than 7 days                 

12  before the hearing.  The notice shall describe where the                    

13  municipal forestland is located, specify the approximate size of            

14  the municipal forestland, describe its current use, and identify            

15  the person to whom the municipal forestland is proposed to be               

16  sold, if known.                                                             

17      (5) The requirements of subsection (4) do not relieve the                   

18  public agency of any notice, hearing, or other requirements                 

19  imposed by any other law.                                                   

20      (6) If municipal forestland formerly subject to a                           

21  reversionary interest that was relinquished under subsection (2)            

22  is conveyed by the public agency to which the reversionary                  

23  interest was relinquished under subsection (2), the public agency           

24  shall notify the department within 60 days of the conveyance.               

25  Notice of the conveyance shall be in a form prescribed by the               

26  department.                                                                 

27      (7) If municipal forestland was conveyed to a public agency                 

House Bill No. 5313 (H-2) as amended May 4, 2004

1   under this section and the municipal forestland is subsequently             

2   conveyed by the public agency to the department, then, for                  

3   purposes of subparts 13 and 14 of part 21, the municipal                    

4   forestland shall not be considered to have been reacquired by the           

5   department on or after January 1, 1933 for natural resource                 

6   purposes unless the municipal forestland was originally acquired            

7   by the department on or after January 1, 1933 for natural                   

8   resource purposes.                                                          

9       (8) As used in this section:                                                

10      (a) "Municipal forestland" means homestead, tax, swamp, or                  

11  primary school land sold to a public agency under this section              

12  solely for a forestry purpose.                                              

13      (b) "Prime land" means land that meets 1 or more of the                     

14  following requirements:                                                     

15                                                                               (i) Is within [a boundary of a program administered by the department.]

16      (ii) Provides access to a public body of water.                              

17  (c) "Public agency" means a school district, public                         

18  educational institution, governmental unit of this state or                 

19  agency of this state, or a municipality.