SENATE BILL No. 1238

 

 

August 15, 2012, Introduced by Senators BOOHER, CASPERSON, PAPPAGEORGE, JANSEN and COLBECK and referred to the Committee on Natural Resources, Environment and Great Lakes.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 1902, 1905, 1907, and 1907a (MCL 324.1902,

 

324.1905, 324.1907, and 324.1907a), section 1902 as amended by 2004

 

PA 587, section 1905 as added by 1995 PA 60, section 1907 as

 

amended by 2008 PA 229, and section 1907a as added by 2002 PA 52.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1902. (1) In accordance with section 35 of article IX of

 

the state constitution of 1963, the Michigan natural resources

 

trust fund is established in the state treasury. The trust fund

 

shall consist of all bonuses, rentals, delayed rentals, and

 

royalties collected or reserved by the state under provisions of

 

leases for the extraction of nonrenewable resources from state

 

owned lands. However, the trust fund shall not include bonuses,

 


rentals, delayed rentals, and royalties collected or reserved by

 

the state from the following sources:

 

     (a) State owned lands acquired with money appropriated from

 

the former game and fish protection fund or the game and fish

 

protection account of the Michigan conservation and recreation

 

legacy fund provided for in section 2010.

 

     (b) State owned lands acquired with money appropriated from

 

the subfund account created by former section 4 of former 1976 PA

 

204.

 

     (c) State owned lands acquired with money appropriated from

 

related federal funds made available to the state under the

 

Pittman-Robertson wildlife restoration act, 16 USC 669 to 669i,

 

commonly known as the federal aid in wildlife restoration act,

 

669k, or the Dingell-Johnson sport fish restoration act, 16 USC 777

 

to 777l, commonly known as the federal aid in fish restoration

 

act.777n.

 

     (d) Money received by the state from net proceeds allocable to

 

the nonconventional fuel source production credit contained in

 

section 29 45k of the internal revenue code of 1986, 26 USC 29,

 

45k, as provided for in section 503.

 

     (2) Notwithstanding subsection (1), until the trust fund

 

reaches an accumulated principal of $500,000,000.00, $10,000,000.00

 

of the revenues from bonuses, rentals, delayed rentals, and

 

royalties described in this section, but not including money

 

received by the state from net proceeds allocable to the

 

nonconventional fuel source production credit contained in section

 

29 45k of the internal revenue code of 1986, 26 USC 29, 45k, as

 


provided for in section 503, otherwise dedicated to the trust fund

 

that are received by the trust fund each state fiscal year shall be

 

transferred to the state treasurer for deposit into the Michigan

 

state parks endowment fund. However, until the trust fund reaches

 

an accumulated principal of $500,000,000.00, in any state fiscal

 

year, not more than 50% of the total revenues from bonuses,

 

rentals, delayed rentals, and royalties described in this section,

 

but not including net proceeds allocable to the nonconventional

 

fuel source production credit contained in section 29 45k of the

 

internal revenue code of 1986, 26 USC 29, 45k, as provided in

 

section 503, otherwise dedicated to the trust fund that are

 

received by the trust fund each state fiscal year shall be

 

transferred to the Michigan state parks endowment fund. To

 

implement this subsection, until the trust fund reaches an

 

accumulated principal of $500,000,000.00, the department shall

 

transfer 50% of the money received by the trust fund each month

 

pursuant to subsection (1) to the state treasurer for deposit into

 

the Michigan state parks endowment fund. The department shall make

 

this transfer on the last day of each month or as soon as

 

practicable thereafter. However, not more than a total of

 

$10,000,000.00 shall be transferred in any state fiscal year

 

pursuant to this subsection.

 

     (3) In addition to the contents of the trust fund described in

 

subsection (1), the trust fund shall consist of money transferred

 

to the trust fund pursuant to section 1909.

 

     (3) (4) The trust fund may receive appropriations, money, or

 

other things of value.

 


     (4) (5) The state treasurer shall direct the investment of the

 

trust fund. The state treasurer shall have the same authority to

 

invest the assets of the trust fund as is granted to an investment

 

fiduciary under the public employee retirement system investment

 

act, 1965 PA 314, MCL 38.1132 to 38.1140l.38.1140m.

 

     (5) (6) The department shall annually prepare a report

 

containing an accounting of revenues and expenditures from the

 

trust fund. This report shall identify the interest and earnings of

 

the trust fund from the previous year, the investment performance

 

of the trust fund during the previous year, and the total amount of

 

appropriations from the trust fund during the previous year. In

 

addition, the report shall include the status of each approved

 

project, including whether the project has been started, whether it

 

is currently being developed and the timeline for completion, and

 

the completion date, if appropriate. This report shall be provided

 

to the senate and house of representatives appropriations

 

committees and the standing committees of the senate and house of

 

representatives with jurisdiction over issues pertaining to natural

 

resources and the environment.

 

     (6) (7) As used in this section, "Michigan state parks

 

endowment fund" means the Michigan state parks endowment fund

 

established in section 35a of article IX of the state constitution

 

of 1963 and provided for in section 74119.

 

     Sec. 1905. (1) The Michigan natural resources trust fund board

 

is established within the department. The board shall have the

 

powers and duties of an agency transferred under a type I transfer

 

pursuant to section 3 of the executive organization act of 1965,

 


Act No. 380 of the Public Acts of 1965, being section 16.103 of the

 

Michigan Compiled Laws. 1965 PA 380, MCL 16.103. The board shall be

 

administered under the supervision department and the department

 

shall offer its cooperation and aid to the board and shall provide

 

suitable offices and equipment for the board.

 

     (2) The board shall consist of 5 7 members. The members shall

 

include the director or a member of the commission as determined by

 

the commission, and 4 6 residents of the state to be appointed by

 

the governor with the advice and consent of the senate. Two of the

 

members appointed under this subsection shall be selected from a

 

list of candidates recommended jointly by the senate majority

 

leader and the speaker of the house of representatives. Former

 

members of the natural resources commission are not eligible to be

 

appointed under this subsection. An individual shall not be

 

appointed to serve more than 2 full terms.

 

     (3) The terms of the appointive members shall be 4 years,

 

except that of those first appointed, 1 shall be appointed for 1

 

year, 1 shall be appointed for 2 years, 1 shall be appointed for 3

 

years, and 1 shall be appointed for 4 years. The 2 additional

 

members initially appointed following the effective date of the

 

2012 amendatory act that amended this section shall serve for 4

 

years.

 

     (4) The appointive members may be removed by the governor for

 

inefficiency, neglect of duty, or malfeasance in office.

 

     (5) Vacancies on the board shall be filled for the unexpired

 

term in the same manner as the original appointments.

 

     (6) The board may incur expenses necessary to carry out its

 


powers and duties under this part and shall compensate its members

 

for actual expenses incurred in carrying out their official duties.

 

     Sec. 1907. (1) The board shall determine which lands and

 

rights in land within the state should be acquired and which public

 

recreation facilities should be developed with money from the trust

 

fund and shall submit to the legislature in January of each year a

 

list of those lands and rights in land and those public recreation

 

facilities that the board has determined should be acquired or

 

developed with trust fund money, compiled in order of priority. In

 

preparing the list under this subsection, the board shall give do

 

all of the following:

 

     (a) Give particular consideration to the acquisition of land

 

and rights in land for recreational trails that intersect the

 

downtown areas of cities and villages.

 

     (b) Identify each parcel of land that is recommended for

 

acquisition by legal description and include the cost of

 

acquisition.

 

     (c) Provide a scoring of each parcel of land recommended for

 

acquisition individually.

 

     (d) Give particular consideration to a project or acquisition

 

that includes 1 or more of the following:

 

     (i) Allows motorized recreational use.

 

     (ii) Is located within a county that contains 50% or more

 

privately owned land.

 

     (iii) Is located within a local unit of government that has

 

adopted a resolution in support of the acquisition.

 

     (2) In preparing the list of lands to be acquired under

 


subsection (1), the board shall comply with all of the following:

 

     (a) The board shall not recommend for acquisition any land

 

that was solicited for sale by the department, a local unit of

 

government, or a land conservancy.

 

     (b) The board shall not recommend the acquisition of land for

 

transfer to a land conservancy unless the transfer assures that the

 

land will remain open for all types of recreational uses.

 

     (c) In determining which lands or rights in lands should be

 

acquired, the board shall not consider the name attached to a

 

particular project nor shall the board attach a name to any project

 

beyond its location or legal description.

 

     (3) (2) This The list prepared under subsection (1) shall be

 

accompanied by estimates of total costs for the proposed

 

acquisitions and developments.

 

     (4) (3) The board shall supply with each list prepared under

 

subsection (1) a statement of the guidelines used in listing and

 

assigning the priority of these proposed acquisitions and

 

developments.

 

     (5) (4) The legislature shall approve by law the lands and

 

rights in land and the public recreation facilities to be acquired

 

or developed each year with money from the trust fund.

 

     Sec. 1907a. (1) If within 2 years after a parcel of property

 

that is approved for acquisition or development by the legislature

 

has not been acquired or developed in the manner determined by the

 

board and is not open for public use, the board shall report to the

 

standing committees of the senate and the house of representatives

 

with jurisdiction over issues related to natural resources and the

 


environment on the status of the project and the reason why the

 

property has not been purchased or developed in the manner

 

determined by the board.

 

     (2) The board shall annually report to the standing committees

 

of the senate and the house of representatives with jurisdiction

 

over issues related to natural resources and the environment on any

 

funds that were appropriated from the trust fund but not expended.

 

     (3) Following the appropriation of money from the trust fund,

 

if the development of a public recreation project changes or the

 

cost of the project increases, the entity receiving the

 

appropriation shall submit the change to the joint capital outlay

 

subcommittee of the legislature to review whether the proposed

 

change or increased cost is consistent with the purpose of the

 

appropriation.