HB-5114, As Passed Senate, May 23, 2006
SUBSTITUTE FOR
HOUSE BILL NO. 5114
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 52706 (MCL 324.52706), as amended by 2004 PA
377.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 52706. (1) The department, the department of treasury, or
other
a state officer having charge of state land, may sell
homestead, tax, swamp, or primary school land to a public agency
for forestry purposes, at a price set by the department, department
of treasury, or other state officer. However, the amount of land
sold shall not exceed the amount that may be necessary for the
public agency, and any land that is sold shall be suitable for and
used solely for a forestry purpose unless conveyed as provided in
this
section. Prime land Land sold to a public
agency under this
section or section 6 of former 1931 PA 217 shall be used only for a
forestry purpose if the land is prime land. When the prime land is
no longer used for a forestry purpose, the land shall revert to
this state.
(2)
Except as provided in subsection (5) (6), the department
shall not
retain relinquish a reversionary interest in municipal
forestland, conveyed to a public agency under this section or
section
6 of former 1931 PA 217 before the
effective date of the
amendatory
act that added this subsection. The department shall
relinquish
any such reversionary interest within 3 years after the
effective
date of the amendatory act that added this subsection or
October 12, 2004, within 90 days after the department receives, on
a form prescribed by the department, a written request for
relinquishment from the public agency that owns the municipal
forestland
subject to the reversionary interest.
, whichever is
earlier.
The department shall relinquish its reversionary
interest
by an instrument approved by the department of attorney general and
recorded by the department with the register of deeds of the county
where the municipal forestland is located. The instrument shall
include
provisions implementing subsection (3) subsections (3)
through (9). The department may charge the public agency an amount
equal to the charge for recording the release.
(3) Beginning 4 years after the effective date of the 2006
amendatory
act that added amended
this subsection, a public
agency to which a reversionary interest was relinquished under
subsection (2) shall not convey the municipal forestland formerly
subject to the reversionary interest unless the conveyance is
approved by the department.
(4) A
Subject to subsection (5), a
public agency to which a
reversionary interest was relinquished under subsection (2) and any
public agency that is a successor in interest shall not convey the
municipal forestland formerly subject to the reversionary interest,
for
less than fair market value. If a public agency to which a
reversionary
interest was relinquished under subsection (2) conveys
the
municipal forestland formerly subject to the reversionary
interest,
the public agency shall distribute the proceeds of the
conveyance
as follows:
(a)
Except as provided in subdivision (b), 50% of the proceeds
shall
be retained by that public agency and or any part thereof,
unless the conveyance is to a public agency for $1.00 or to a
public agency or any other person for fair market value. If the
conveyance is to a public agency for $1.00, the deed shall recite
"MCL 324.52706 requires an accounting and specifies how proceeds
are to be distributed when the property is subsequently conveyed
for fair market value." If the conveyance is to a public agency or
any other person for fair market value, the public agency conveying
the property shall have an accounting taken, shall retain 50% of
the
proceeds, and shall submit the
remaining 50% of the proceeds
shall
be submitted to the department of treasury for deposit as
follows:
(a) (i) The first $18,000,000.00 in total proceeds from all
such conveyances shall be deposited in the general fund.
(b) (ii) Any proceeds in excess of $18,000,000.00 shall be
deposited in the fire protection fund created in section 732a of
the Michigan vehicle code, 1949 PA 300, MCL 257.732a.
(b)
If the municipal forestland is conveyed to another public
agency,
all of the proceeds shall be retained by the public agency
conveying
the municipal forestland.
(5) Once the municipal forestland or part thereof formerly
subject to a reversionary interest is conveyed for fair market
value and an accounting is taken and the proceeds are distributed
as provided under subsection (4), subsection (4) does not apply to
subsequent conveyances of that municipal forestland or part
thereof, respectively.
(6) (5)
Subsection (2) does not apply to prime land.
(7) (6)
A public agency to which a reversionary interest is
relinquished under subsection (2) shall not convey the municipal
forestland formerly subject to the reversionary interest to a third
person unless the public agency has conducted a public hearing on
the proposed conveyance. The public agency may conduct a second
public hearing on the proposed conveyance if the public agency
determines that a second public hearing may be necessary. Notice of
a public hearing under this subsection shall be published at least
twice in a newspaper of general circulation in the county or
counties where the municipal forestland is located, not more than
28 or less than 7 days before the hearing. The notice shall
describe where the municipal forestland is located, specify the
approximate size of the municipal forestland, describe its current
use, and identify the person to whom the municipal forestland is
proposed to be sold, if known. The public agency shall provide a
House Bill No. 5114 (H-1) as amended March 1, 2006
copy of the notice to the director of the department not less than
7 days before the hearing.
(8) (7)
The requirements of subsection (6)
(7) do not
relieve the public agency of any notice, hearing, or other
requirements imposed by any other law.
(9) (8)
If, before 4 years after the effective date of the [2006]
amendatory
act that [added
amended] this subsection,
municipal forestland
formerly subject to a reversionary interest that was relinquished
under
subsection (2) is conveyed by [the public agency to which the
reversionary interest was relinquished under subsection (2) a
public
agency], the
public agency shall notify the department within 60 days of the
conveyance. Notice of the conveyance shall be in a form prescribed
by the department.
(10) (9)
If municipal forestland was conveyed to a public
agency under this section or section 6 of former 1931 PA 217 and
the municipal forestland is subsequently conveyed by the public
agency to the department, then, for purposes of subparts 13 and 14
of part 21, the municipal forestland shall not be considered to
have been reacquired by the department on or after January 1, 1933
for natural resource purposes unless the municipal forestland was
originally acquired by the department on or after January 1, 1933
for natural resource purposes.
(11) (10)
As used in this section:
[(a) "Basal area" means the sum of the cross-sectional area of trees 4 inches or greater in diameter measured at 4.5 feet from the highest ground at the base of each tree.
(b) (a)]"Municipal
forestland" means homestead, tax, swamp, or
primary school land sold to a public agency under this section or
section 6 of former 1931 PA 217 solely for a forestry purpose.
[(c) (b)] "Prime land" means land
municipal forestland that meets
House Bill No. 5114 (H-1) as amended March 1, 2006
1 or more of the following requirements:
(i) Is within a boundary of a program administered by the
department.
(ii) Provides access to a public body of water.
(iii) Is not less than 80 121 acres
in size and, at any time
during the preceding 10 years, had a [residual] basal area of not
less than 90 square feet per acre.
[(d) (c)] "Public agency" means a school district,
public
educational institution, governmental unit of this state or agency
of this state, or a municipality.
[[(e)] "Residual basal area" means that term as defined in
section 52501.]
(12) The use in this section of the phrase "this section or
section 6 of former 1931 PA 217" does not imply that the term "this
section" as used elsewhere in this act does not include the
relevant section as it existed in former law codified in this act.