HB-5455, As Passed Senate, May 23, 2006

SENATE 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, 51112, and 51113 (MCL 324.51101,

324.51103, 324.51112, and 324.51113), 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. Even if portions of commercial forestland are

contiguous only at a point, the privilege of hunting and fishing

shall not be denied for any portion of the land as provided in

section 51113. 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.

     (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 shall

notify each county and township and 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. 51112. (1) The commercial forest fund is created within

the state treasury.

     (2) The state treasurer shall deposit the money collected from

the following sources into the fund:

     (a) The application fee and forest management plan fee

pursuant to section 51103.

     (b) The withdrawal application fee pursuant to section 51108.

     (c) The fee described in section 51116(1)(a).

     (d) An amount equal to 10 cents for each acre of land enrolled

under this part as certified by the department, to be appropriated

each fiscal year from the general fund.

     (e) Any restitution ordered by a court payable to this state

for a violation of this part.

     (3)  The  In addition to the revenues described in subsection

(2), the state treasurer may receive money or other assets from any

source for deposit into the fund. The state treasurer shall direct

the investment of the fund. The state treasurer shall credit to the

fund interest and earnings from fund investments.

     (4) Money in the fund appropriated from the general fund shall

remain in the fund at the close of the fiscal year and shall not

lapse to the general fund.

     (5) The department shall expend the money from the fund, upon

appropriation, for enforcement, administration, and monitoring of

compliance with part 512 and this part and rules promulgated under

this part.

     Sec. 51113. (1) Except as provided in this section, the owner

of a commercial forest shall not use that land in a manner that is

prejudicial to its development as a commercial forest, use the land

for agricultural, mineral extraction except as provided in this

section, grazing, industrial, developed recreational, residential,

resort, commercial, or developmental purposes, or deny the general

public the privilege of hunting and fishing on commercial

forestland unless the land is closed to hunting or fishing, or

both, by order of the department or by an act of the legislature.

     (2) Exploration for minerals shall be permitted on land listed

under this part. Except as provided in subsections (3) and (4),

before the removal of any commercial mineral deposits, the owner

shall withdraw the portion of the commercial forestland directly

affected by the removal pursuant to section 51108. The withdrawal

of commercial forestland due to mineral removal as provided in this

section and section 51108 shall not cause the remaining portion of

the commercial forestland to be withdrawn due to insufficient

acreage of the remaining commercial forestland.

     (3) Upon application to and approval by the department, sand

and gravel may be removed from the commercial forest without

affecting the land's status as a commercial forest. The department

shall approve an application to remove sand and gravel deposits

only if the removal site is not greater than 5 acres, excluding

access to the removal site, and the sand and gravel are to be

utilized by 1 or more of the following:

     (a) The owner of a commercial forest for personal use if the

owner of the commercial forest is also the owner of the sand and

gravel deposits.

     (b) The owner of the sand and gravel deposits for his or her

personal use or for sale to the owner of the commercial forest for

personal use, if the owner of the commercial forest is not also the

owner of the sand and gravel deposits.

     (c) This state, a local unit of government, or a county road

commission, for governmental use.

     (4) Upon application to and approval by the department,

deposits of oil and gas  owned by this state may be removed from

the commercial forest without affecting the land's status as a

commercial forest.

     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 all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 917.

     (b) House Bill No. 5454.