HOUSE BILL No. 5210

 

January 8, 2014, Introduced by Reps. Schmidt, LaFontaine, Bumstead, Daley, Rendon, Pettalia, Brown, Potvin, McCready, Victory, Glardon, Foster, Johnson, Smiley, Kivela, Jenkins and Goike and referred to the Committee on Natural Resources.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 503 (MCL 324.503), as amended by 2012 PA 294.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 503. (1) The department shall protect and conserve the

 

natural resources of this state; provide and develop facilities for

 

outdoor recreation; prevent the destruction of timber and other

 

forest growth by fire or otherwise; promote the reforesting of

 

forestlands belonging to this state; prevent and guard against the

 

pollution of lakes and streams within this state and enforce all

 

laws provided for that purpose with all authority granted by law;

 

and foster and encourage the protection and propagation of game and

 

fish.

 

     (2) The department has the power and jurisdiction over the

 


management, control, and disposition of all land under the public

 

domain, except for those lands under the public domain that are

 

managed by other state agencies to carry out their assigned duties

 

and responsibilities. On behalf of the people of this state, the

 

department may accept gifts and grants of land and other property

 

and may buy, sell, exchange, or condemn land and other property,

 

for any of the purposes of this part. Beginning September 30, 2012,

 

the The department shall not acquire surface rights to land unless

 

the department has estimated the amount of annual payments in lieu

 

of taxes on the land, posted the estimated payments on its website

 

for at least 30 days, and notified the affected local units of the

 

estimated payments at least 30 days before the acquisition.

 

     (3) Before May 1, 2015, the department shall not acquire

 

surface rights to land if the department owns, or as a result of

 

the acquisition will own, the surface rights to more than 4,626,000

 

acres of land.

 

     (4) Beginning May 1, 2015, the department shall not acquire

 

surface rights to land north of the Mason-Arenac line if the

 

department owns, or as a result of the acquisition will own, the

 

surface rights to more than 3,910,000 acres of land north of the

 

Mason-Arenac line. This subsection does not apply after the

 

enactment of legislation adopting the strategic plan.

 

     (5) For the purposes of subsections (3) and (4), the number of

 

acres of land in which the department owns surface rights does not

 

include any of the following:

 

     (a) Land in which the department has a conservation easement.

 

     (b) Land platted under the land division act, 1967 PA 288, MCL

 


560.101 to 560.293, or a predecessor act before July 2, 2012 if

 

acquired by the department before July 2, 2012.

 

     (c) Any of the following if acquired on or after July 2, 2012:

 

     (i) Land with an area of not more than 80 acres, or a right-of-

 

way, for accessing other land owned by the department.

 

     (ii) A trail, subject to all of the following:

 

     (A) If the traveled portion of the trail is located within an

 

abandoned railroad right-of-way, the land excluded is limited to

 

the abandoned railroad right-of-way.

 

     (B) If the traveled portion of the trail is located in a

 

utility easement, the land excluded is limited to the utility

 

easement.

 

     (C) If sub-subparagraphs (A) and (B) do not apply, the land

 

excluded is limited to the traveled portion of the trail and

 

contiguous land. The area of the contiguous land shall not exceed

 

the product of 100 feet multiplied by the length of the trail in

 

feet.

 

     (iii) Land that, on July 2, 2012 was commercial forestland as

 

defined in section 51101 if the land continues to be used in a

 

manner consistent with part 511.

 

     (iv) Land acquired by the department by gift, including the

 

gift of funds specifically dedicated to land acquisition.

 

     (v) Land acquired by the department through litigation.

 

     (6) The department shall maintain a record of land as

 

described in subsection (5)(a) to (c). The record shall include the

 

location, acreage, date of acquisition, and use of the land. The

 

department shall post and maintain on its website all of the

 


following information:

 

     (a) The number of acres of land, including land as described

 

in subsection (5), in which the department owns surface rights

 

north of the Mason-Arenac line, south of the Mason-Arenac line, in

 

total for this state, and by program.

 

     (b) The number of acres of land, excluding land as described

 

in subsection (5), in which the department owns surface rights

 

north of the Mason-Arenac line, south of the Mason-Arenac line, in

 

total for this state, and by program.

 

     (3) (7) By October 1, 2014, the department shall develop a

 

written strategic plan to guide the acquisition and disposition of

 

state lands managed by the department, submit the plan to the

 

senate and house committees with primary responsibility for natural

 

resources and outdoor recreation and the corresponding

 

appropriation subcommittees, and post the plan on the department's

 

website. In developing the plan, the department shall solicit input

 

from the public and local units of government.

 

     (4) (8) The strategic plan shall do all of the following:

 

     (a) Divide this state into regions.

 

     (b) Identify lands managed by the department in each region.

 

     (c) Set forth for each region measurable strategic performance

 

goals with respect to all of the following for land managed by the

 

department:

 

     (i) Maximizing availability of points of access to the land and

 

to bodies of water on or adjacent to the land.

 

     (ii) Maximizing outdoor recreation opportunities.

 

     (iii) Forests.

 


     (iv) Wildlife and fisheries.

 

     (d) To assist in achieving the goals set forth in the

 

strategic plan pursuant to subdivision (c), identify all of the

 

following:

 

     (i) Land to be acquired.

 

     (ii) Land to be disposed of.

 

     (iii) Plans for natural resource management.

 

     (e) To the extent feasible, identify public lands in each

 

region that are not managed by the department but affect the

 

achievement of the goals set forth in the strategic plan pursuant

 

to subdivision (c).

 

     (f) Identify ways that the department can better coordinate

 

the achievement of the goals set forth in the strategic plan

 

pursuant to subdivision (c), recognizing that public lands are

 

subject to multiple uses and both motorized and nonmotorized uses.

 

     (9) The department shall not implement the strategic plan as

 

it applies to land north of the Mason-Arenac line. This subsection

 

does not apply after the enactment of legislation adopting the

 

strategic plan.

 

     (5) The legislature approves the strategic plan entitled

 

"Department of Natural Resources Managed Public Land Strategy" that

 

was issued by the department and dated July 1, 2013.

 

     (6) (10) The department shall annually report on the

 

implementation of the strategic plan and submit and post the report

 

in the manner provided in subsection (7).(3).

 

     (7) (11) Beginning July 2, 2020 and every 6 years thereafter,

 

the department shall update the strategic plan and submit and post

 


the updated plan in the manner provided in subsection (7). (3). At

 

least 60 days before posting the updated plan, the department shall

 

prepare, submit, and post in the manner provided in subsection (7)

 

(3) a report on progress toward the goals set forth pursuant to

 

subsection (8)(c) in portions of this state where, subject to

 

subsection (9), the plan is being implemented (4)(c) and any

 

proposed changes to the goals, including the rationale for the

 

changes. The submittal and posting shall include department contact

 

information for persons who wish to comment on the report.

 

     (8) (12) At Before acquiring or disposing of land, the

 

department shall consult with the local units of government within

 

whose jurisdiction the land is located. In addition, at least 30

 

days before acquiring or disposing of the land, the department

 

shall submit to the senate and house committees with primary

 

responsibility for natural resources and outdoor recreation and the

 

corresponding appropriations subcommittees a statement identifying

 

the land and describing the effect of the proposed transaction on

 

achieving the goals set forth in the strategic plan pursuant to

 

subsection (8)(c). (4)(c). The statement shall include department

 

contact information for persons who wish to comment on the

 

acquisition or disposition and be in a standard format. The

 

department shall also post the statement on its website for at

 

least 30 days before the acquisition or disposition. This

 

subsection does not apply before the department submits the

 

strategic plan to legislative committees as required under

 

subsection (7).

 

     (9) (13) The department may accept funds, money, or grants for

 


development of salmon and steelhead trout fishing in this state

 

from the government of the United States, or any of its departments

 

or agencies, pursuant to the anadromous fish conservation act, 16

 

USC 757a to 757f, and may use this money in accordance with the

 

terms and provisions of that act. However, the acceptance and use

 

of federal funds does not commit state funds and does not place an

 

obligation upon the legislature to continue the purposes for which

 

the funds are made available.

 

     (10) (14) The department may appoint persons to serve as

 

volunteers for the purpose of facilitating the responsibilities of

 

the department as provided in this part. Subject to the direction

 

of the department, a volunteer may use equipment and machinery

 

necessary for the volunteer service, including, but not limited to,

 

equipment and machinery to improve wildlife habitat on state game

 

areas.

 

     (11) (15) The department may lease lands owned or controlled

 

by the department or may grant concessions on lands owned or

 

controlled by the department to any person for any purpose that the

 

department determines to be necessary to implement this part. In

 

granting a concession, the department shall provide that each

 

concession is awarded at least every 7 years based on extension,

 

renegotiation, or competitive bidding. However, if the department

 

determines that a concession requires a capital investment in which

 

reasonable financing or amortization necessitates a longer term,

 

the department may grant a concession for up to a 15-year term. A

 

concession granted under this subsection shall require, unless the

 

department authorizes otherwise, that all buildings and equipment

 


shall be removed at the end of the concession's term. Any lease

 

entered into under this subsection shall limit the purposes for

 

which the leased land is to be used and shall authorize the

 

department to terminate the lease upon a finding that the land is

 

being used for purposes other than those permitted in the lease.

 

Unless otherwise provided by law, money received from a lease or a

 

concession of tax reverted land shall be credited to the fund

 

providing financial support for the management of the leased land.

 

Money received from a lease of all other land shall be credited to

 

the fund from which the land was purchased. However, money received

 

from program-related leases on these lands shall be credited to the

 

fund providing financial support for the management of the leased

 

lands. For land managed by the forest management division of the

 

department, that fund is either the forest development fund

 

established pursuant to section 50507 or the forest recreation

 

account of the Michigan conservation and recreation legacy fund

 

provided for in section 2005. For land managed by the wildlife or

 

fisheries division of the department, that fund is the game and

 

fish protection account of the Michigan conservation and recreation

 

legacy fund provided for in section 2010.

 

     (12) (16) When the department sells land, the deed by which

 

the land is conveyed may reserve all mineral, coal, oil, and gas

 

rights to this state only when the land is in production or is

 

leased or permitted for production, or when the department

 

determines that the land has unusual or sensitive environmental

 

features or that it is in the best interest of this state to

 

reserve those rights as determined by commission policy. However,

 


the department shall not reserve the rights to sand, gravel, clay,

 

or other nonmetallic minerals. When the department sells land that

 

contains subsurface rights, the department shall include a deed

 

restriction that restricts the subsurface rights from being severed

 

from the surface rights in the future. If the landowner severs the

 

subsurface rights from the surface rights, the subsurface rights

 

revert to this state. The deed may reserve to this state the right

 

of ingress and egress over and across land along watercourses and

 

streams. Whenever an exchange of land is made with the United

 

States government, a corporation, or an individual for the purpose

 

of consolidating the state forest reserves, the department may

 

issue deeds without reserving to this state the mineral, coal, oil,

 

and gas rights and the rights of ingress and egress. The department

 

may sell the limestone, sand, gravel, or other nonmetallic

 

minerals. However, the department shall not sell a mineral or

 

nonmetallic mineral right if the sale would violate part 353, part

 

637, or any other provision of law. The department may sell all

 

reserved mineral, coal, oil, and gas rights to such lands upon

 

terms and conditions as the department considers proper and may

 

sell oil and gas rights as provided in part 610. The owner of those

 

lands as shown by the records shall be given priority in case the

 

department authorizes any sale of those lands, and, unless the

 

landowner waives that priority, the department shall not sell such

 

rights to any other person. For the purpose of this section,

 

mineral rights do not include rights to sand, gravel, clay, or

 

other nonmetallic minerals.

 

     (13) (17) The department may enter into contracts for the sale

 


of the economic share of royalty interests it holds in hydrocarbons

 

produced from devonian or antrim shale qualifying for the

 

nonconventional source production credit determined under section

 

45k of the internal revenue code of 1986, 26 USC 45k. However, in

 

entering into these contracts, the department shall assure that

 

revenues to the natural resources trust fund under these contracts

 

are not less than the revenues the natural resources trust fund

 

would have received if the contracts were not entered into. The

 

sale of the economic share of royalty interests under this

 

subsection may occur under contractual terms and conditions

 

considered appropriate by the department and as approved by the

 

state administrative board. Funds received from the sale of the

 

economic share of royalty interests under this subsection shall be

 

transmitted to the state treasurer for deposit in the state

 

treasury as follows:

 

     (a) Net proceeds allocable to the nonconventional source

 

production credit determined under section 45k of the internal

 

revenue code of 1986, 26 USC 45k, under this subsection shall be

 

credited to the environmental protection fund created in section

 

503a.

 

     (b) Proceeds related to the production of oil or gas from

 

devonian or antrim shale shall be credited to the natural resources

 

trust fund or other applicable fund as provided by law.

 

     (14) (18) As used in this section:

 

     (a) "Concession" means an agreement between the department and

 

a person under terms and conditions as specified by the department

 

to provide services or recreational opportunities for public use.

 


     (b) "Lease" means a conveyance by the department to a person

 

of a portion of this state's interest in land under specific terms

 

and for valuable consideration, thereby granting to the lessee the

 

possession of that portion conveyed during the period stipulated.

 

     (c) "Mason-Arenac line" means the line formed by the north

 

boundaries of Mason, Lake, Osceola, Clare, Gladwin, and Arenac

 

counties.

 

     (c) (d) "Natural resources trust fund" means the Michigan

 

natural resources trust fund established in section 35 of article

 

IX of the state constitution of 1963 and provided for in section

 

1902.

 

     (d) (e) "Net proceeds" means the total receipts received from

 

the sale of royalty interests under subsection (17) (13) less costs

 

related to the sale. Costs may include, but are not limited to,

 

legal, financial advisory, geological or reserve studies, and

 

accounting services.

 

     (e) (f) "Strategic plan" or "plan" means the plan developed

 

under subsection (7).(3).