CONVEYANCE OF MDOC PROPERTY                                                        S.B. 1036 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                                  ON THIRD READING

Senate Bill 1036 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor:  Senator Wayne Schmidt

Committee:  Banking and Financial Institutions

CONTENT

The bill would authorize the Department of Technology, Management, and Budget (DTMB), on behalf of the State, to convey by quitclaim deed or transfer by affidavit of jurisdictional transfer all or portions of State-owned property now under the jurisdiction of the Department of Corrections in Ionia, Grand Traverse, and Tuscola Counties, consisting of eight parcels described in the bill (the Deerfield Correctional Facility Parcel, Camp Pugsley Parcels 1 and 2, and Camp Tuscola Parcels A through E).

The DTMB could transfer the properties to the Michigan Land Bank Fast Track Authority. For properties or portions of properties conveyed the Authority, it would have to convey the property in accordance with the Land Bank Fast Track Act, and deposit the net revenue received from the sale of the property into the Land Bank Fast Track Fund.

The DTMB also could transfer the parcels to another State agency through jurisdictional transfer.

                                                                          Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have an indeterminate impact on State and local government depending on terms of the conveyance. The Land Bank Fast Track Authority has wide discretion to transfer property in a manner calculated to realize the greatest benefit to the State.

The Department of Corrections has no estimate regarding the prospective value of the parcels. Net revenue received by the State from property transferred to the Michigan Land Bank Fast Track Authority and subsequently sold would be deposited in the Land Bank Fast Track Fund to be used for redevelopment and demolition. Net revenue from the sale of property not transferred to the Authority would be deposited in the General Fund.

Date Completed:  6-6-18                                                    Fiscal Analyst:  Bill Bowerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.