COST TO LEASE CERTAIN UNPATENTED LAKE BOTTOMLANDS

Senate Bill 363 (as passed by Senate)

Sponsor:  Sen. Tom Casperson

House Committee:  Natural Resources

Senate Committee:  Natural Resources

Complete to 3-7-16

SUMMARY:

Senate Bill 363 would amend Section 32505 of the Natural Resources and Environmental Protection Act (NREPA) by setting the fee for a lease of certain unpatented lake bottomlands at a rate of not more than $10 annually if certain conditions are met. The bill would take effect 90 days after the date it is enacted into law.

If a private harbor formed by a breakwater erected on unpatented lake bottomlands is not used by the littoral owner for commercial purposes, then the fee charged for that lease to occupy the lake bottomlands and for the exclusive use of those harbor waters could not exceed $10 annually. If the littoral owner agrees to allow the harbor to be used by the public as a harbor of refuge during storms, then the Department of Environmental Quality would be required to waive that $10 charge.

MCL 324.32505

FISCAL IMPACT:

Senate Bill 363 would reduce revenue for the Department of Environmental Quality.  This bill sets the fee for granting a deed or lease to unpatented bottomlands at no more than $10 annually and provides for an exemption from this fee.  The department is presently collecting fees at a higher rate than provided in SB 363.  Consequently, DEQ estimates that it will realize a $166,000 reduction in fee revenue if this bill is enacted into law.  Senate bill 363 would have no impact on local units of government.

                                                                                        Legislative Analyst:   Josh Roesner

                                                                                                Fiscal Analyst:   Austin Scott

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.