SB-0969, As Passed Senate, March 15, 2006

SUBSTITUTE FOR

SENATE BILL NO. 969

(As amended, March 14, 2006)

     A bill to authorize the state administrative board to convey

certain interests in property in Ingham county; to authorize the

state administrative board to convey, exchange, or purchase certain

parcels of property in Jackson county; to prescribe certain

conditions for the conveyances, purchases, and exchanges; to

provide for disposition of the revenue derived from the

conveyances; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. (1) The state administrative board, on behalf of the

state, may convey to the board of trustees of Lansing community

college, for consideration of $1.00, the right of reverter and the

right of reentry <<contained>> in the April 16, 1963 quitclaim deed to

the

Lansing school district recorded in Liber 849 page 897, Ingham

county records, and in the January 21, 1966 quitclaim deed from the

board of education for the Lansing school district to the board of

trustees of Lansing community college recorded in Liber 1199, pages

1047-1048, on real property located in Ingham county, Michigan, and

more particularly described as:

Block No. 81, original plat, City of Lansing, County of Ingham, and

State of Michigan.

     (2) The description of the parcel in subsection (1) is

approximate and for purposes of the conveyance is subject to

adjustment as the state administrative board or attorney general

considers necessary by survey or other legal description.

     (3) The conveyance authorized by this section shall be by

quitclaim deed approved by the attorney general.

     Sec. 2. (1) The state administrative board, on behalf of the

state, may convey, exchange, or purchase certain state owned

property under the jurisdiction of the department of corrections

and privately owned property located in Blackman township, Jackson

county, Michigan, and described as those lands separated from the

main campus of southern Michigan prison or from the private owner's

main parcel of land by the man-made course change from the old

Grand river and old Portage river to the new Grand river drain and

the Portage river drain respectively, for consideration as

determined under subsection (3).

     (2) The property to be conveyed, exchanged, or purchased under

this section shall be properties that contribute to cleaning up the

property lines along the Grand river drain and the Portage river

drain, located in Blackman township, Jackson county, and lying

adjacent to the southern Michigan prison campus and shall be more

particularly described based on the 2001-2002 survey by the polaris

surveying company.

     (3) If the parties mutually determine based on tax records or

a market study of recent sales that 2 properties are approximately

of equal value, an exchange under this section may proceed subject

to approval by the state administrative board. If the parties

either do not agree, or agree that the properties are not of equal

value, or the transaction is solely a conveyance or purchase, then

the parties shall select a qualified appraiser who shall determine

the value of the properties, with the determination being binding

on the parties. If the values for the exchange parcels, as

determined by a qualified appraiser, are within 10% of each other,

the exchange shall proceed without any further consideration. If

the values of the properties are 11% or more apart, the parties may

agree that further consideration be given to the owner of the

higher valued property or that more or less land may be exchanged.

The parties to the exchange shall pay for any survey, environmental

studies, and actions required to clear title, and title commitment

fees, if any, for the parcel they are receiving in exchange or by

purchase.

     (4) A conveyance authorized by this section shall be by

quitclaim deed approved by the attorney general. The state shall

not reserve oil, gas, or mineral rights to the property conveyed

under this section. However, the conveyance authorized under this

section shall provide that, if the purchaser or any grantee

develops any oil, gas, or minerals found on, within, or under the

conveyed property, the purchaser or any grantee shall pay the state

1/2 of the gross revenue generated from the development of the oil,

gas, or minerals. This payment shall be deposited in the general

fund.

     (5) The authority to convey property under this section

expires 10 years after the date on which this act takes effect.

     Enacting section 1. Section 12 of 2002 PA 671 is repealed.