HB-5455, As Passed House, February 8, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5455

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 51101, 51103, and 51104 (MCL 324.51101,

324.51103, and 324.51104), as added by 1995 PA 57; and to repeal

acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 51101. As used in this part:

     (a) "Ad valorem general property tax" means taxes levied under

the general property tax act,  Act No. 206 of the Public Acts of

1893, being sections 211.1 to 211.157 of the Michigan Compiled Laws

1893 PA 206, MCL 211.1 to 211.157.

     (b) "Commercial forest" or "commercial forestland" means

forestland that is determined to be a commercial forest under

section 51103.

     (c) "Declassify" or "declassification" means the removal of

the commercial forest designation pursuant to section 51116.

     (d) "Forestland" means a tract of land that may include

nonproductive land that is intermixed with productive land that is

an integral part of a managed forest and that meets all the

following:

     (i) Does not have material natural resources other than those

resources suitable for forest growth or the potential for forest

growth.

     (ii) Is not used for agricultural, mineral extraction except as

provided in section 51113, grazing, industrial, developed

recreational, residential, resort, commercial, or developmental

purposes.

     (iii) The owner agrees to develop, maintain, and actively manage

the land as a commercial forest through planting, natural

reproduction, or other silvicultural practices.

     (e) "Forest management plan" means a written plan prepared and

signed by a registered forester or a natural resources professional

that prescribes measures to optimize production, utilization, and

regeneration of forest resources. The forest management plan shall

include schedules and timetables for the various silvicultural

practices used on commercial forestlands, including, but not

limited to, timber harvesting and regeneration.

     (f) "Fund" means the commercial forest fund created  pursuant

to  under section 51112.

     (g) "Natural resources professional" means a person who is

acknowledged by the department as having the education, knowledge,

experience, and skills to identify, schedule, and implement

appropriate forest management practices needed to achieve the

purposes of this part on land subject to or to be subject to this

part.

     (h) "Owner" means a person who holds title to the surface

estate of forestland subject to this part. However, if land is

purchased on a land contract, the owner includes the person who

holds the land contract vendee's interest and does not include the

person who holds the land contract vendor's interest.

     (i) "Personal use" means use for any noncommercial purpose.

     (j) "Registered forester" means a person registered under

article 21 of the occupational code,  Act No. 299 of the Public

Acts of 1980, being sections 339.2101 to 339.2108 of the Michigan

Compiled Laws  1980 PA 299, MCL 339.2101 to 339.2108.

     (k) "Silvicultural practices" means the management and

manipulation of forest vegetation for the protection, growth, and

enhancement of forest products.

     Sec. 51103. (1) The owner of at least 40 contiguous acres or a

survey unit consisting of 1/4 of 1/4 of a section of forestland

located within this state may apply to the department to have that

forestland determined to be a commercial forest under this part.

For purposes of this subsection, "contiguous" means land that

touches at any point. The existence of a public or private road, a

railroad, or a utility right-of-way that separates any part of the

land does not make the land noncontiguous.

     (2) To be eligible for determination as a commercial forest,

forestland shall be capable of all of the following:

     (a) Producing not less than 20 cubic feet per acre per year of

forest growth upon maturity.

     (b) Producing tree species that have economic or commercial

value.

     (c) Producing a commercial stand of timber within a reasonable

period of time.

     (3) An application for classification as commercial forest

shall be submitted on a form prescribed by the department. The

application shall be postmarked or delivered not later than April 1

to be eligible for approval as commercial forest for the following

tax year. In addition to any information that the department may

reasonably require by rule, the applicant shall provide all of the

following to the department:

     (a) A nonrefundable application fee in the amount of $1.00 per

acre or fraction of an acre,  not to exceed  but not less than

$200.00 and not more than $1,000.00. The department shall remit the

application fee to the state treasurer for deposit into the fund.

     (b) A legal description and the amount of acreage considered

for determination as a commercial forest.

     (c) A statement certifying that a forest management plan

covering the forestland has been prepared and is in effect.

     (d) A statement certifying that the owner of the forestland

owns the timber rights to the timber standing on the forestland.

     (e) Documentation that the owner of the commercial forestland

will provide access to the general public for hunting and fishing

as required under section 51113(1).

     (4) The department shall prepare and distribute to any person

desiring to  make application  apply for classification of

forestland as commercial forest under this part a brochure that

lists and explains, in simple, nontechnical terms, all of the

following:

     (a) The application, hearing, determination, declassification,

and prosecution process.

     (b) The requirements of the forest management plan.

     (5) Not later than 3 months after the effective date of the

2006 amendatory act that amended this section, the department of

treasury shall notify all owners of forestland that is classified

as commercial forest under this part of the amendments to this part

that were enacted in 2006.

(6)  (5) If an applicant is unable to secure the services of

a registered forester or a natural resources professional to

prepare a forest management plan, the department upon request shall

prepare the forest management plan on behalf of the owner of the

forestland and charge the owner a forest management plan fee not to

exceed the actual cost of preparing the forest management plan.

     (6) Before January 1, 1997, an owner of a commercial forest

that was designated a commercial forest before January 1, 1994,

shall prepare a forest management plan and file a statement with

the department certifying that a forest management plan has been

prepared and is in effect. If an owner of a commercial forest fails

to comply with this subsection, the department shall declassify the

owner's commercial forest pursuant to section 51116.

     (7) After an owner certifies to the department that a forest

management plan has been prepared and is in effect, a violation of

that forest management plan is a violation of this part.

     Sec. 51104. (1) Upon receipt of the application, the forest

management plan certification, the public access documentation, the

timber rights certification, and the application fee described in

section 51103, the department shall evaluate the forestland offered

and  fix  establish a date for a public hearing upon the

eligibility of the forestland for determination as a commercial

forest. The hearing shall be held in the county where the land is

located not later than November 1 following receipt of the

application. Applications offering lands in the same county may be

heard on the same day and at the same place. The department shall

publish a notice of hearing and a list of the legal descriptions of

lands being considered for determination as commercial forests in a

newspaper of general circulation in the county in which the land is

located. The notice of hearing shall be published at least 20 days

before the date of the hearing. At the time of publication, the

department shall provide a copy of the notice of hearing and a list

of descriptions of land in each township to be considered for

determination as a commercial forest to  each  the township

supervisor in whose township the lands are located. Any person who

wishes may testify as to eligibility for determination as a

commercial forest of any of the described lands. The hearing shall

be conducted by the department.

     (2) After the hearing, if the department determines that the

applicant and forestland meet the requirements of this part and

determines that all valid taxes assessed against that forestland

have been paid, the department shall approve the application. Upon

approval of the application, the department shall immediately

record a listing certificate in the register of deeds office in the

county in which the land is located with the department approval

endorsed on the listing certificate and forward a copy of the

listing certificate to the applicant and to the township supervisor

of the township in which the land is located.

     Enacting section 1. Section 51107 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.51107, is

repealed.

     Enacting section 2. This amendatory act does not take effect

unless House Bill No. 5454 of the 93rd Legislature is enacted into

law.