Act No. 115

Public Acts of 2006

Approved by the Governor

April 7, 2006

Filed with the Secretary of State

April 10, 2006

EFFECTIVE DATE: April 10, 2006

STATE OF MICHIGAN

93RD LEGISLATURE

REGULAR SESSION OF 2006

Introduced by Senator Johnson

ENROLLED SENATE BILL No. 969

AN ACT 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 or other instrument 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.

Sec. 3. The revenue received under this act shall be deposited in the state treasury and credited to the general fund.

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 Section 12 of 2002 PA 671 is repealed.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor