CONVEY STATE LAND TO SULLIVAN TOWNSHIP

IN MUSKEGON COUNTY FOR RECREATION

House Bill 5330 as introduced

Sponsor:  Rep. Holly Hughes

1st Committee:  Appropriations

2nd Committee:  Natural Resources

Complete to 4-11-16

SUMMARY:

House Bill 5330 would create a new act which would provide for the sale of certain state-owned property in Sullivan Township in Muskegon County that is now under the jurisdiction of the Department of Natural Resources (DNR) to that township for $1. The DNR would convey the property by quitclaim deed approved by the attorney general, but would retain the mineral rights to the property.

This conveyance would be contingent on the township using the property exclusively for public recreation purposes, and resident and nonresident members of the public must be treated alike as regards any fee, term, or condition for the use of the property, or for any waiver of fees, terms, or conditions.  The bill contains a detailed description of the property.  Revenue from the conveyance would be deposited in the Natural Resources Trust Fund.

If the property is not used as described above, or if it is used for any other purpose, the state would be able to reenter and repossess the property, terminating the grantee's estate in the property. If the township disputes the state's exercise of its right of reentry and fails to promptly deliver possession of the property to the state, the attorney general, on behalf of the state, may bring an action to quiet title to, and regain possession of, the property.

FISCAL IMPACT:

House Bill 5330 would increase revenue for the Michigan Natural Resources Trust Fund by $1.00.  This bill would also decrease costs for the Department of Natural Resources by relieving the state of responsibility for security and maintenance on the land in question.  An estimation of the fair market value of this parcel of land is unavailable at this time. 

Correspondingly, the bill would increase costs for Sullivan Township by $1.00.  This bill would also increase township costs by transferring responsibility for security and maintenance on the land in question from the state to the township.  The extent of this cost increase to the township is unclear at present.

                                                                                        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.