HOUSE BILL No. 5114

 

August 31, 2005, Introduced by Rep. Brown and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.

 

     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 sold to a public

 

agency under this section shall be used only for a forestry

 

purpose. 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), the department shall

 

not retain a reversionary interest in municipal forestland conveyed

 

to a public agency  under this section  before  the effective date

 

of the amendatory act that added this subsection  October 12, 2004.

 

The department shall relinquish any such reversionary interest

 

within 3 years after the effective date of the amendatory act that

 

added this subsection  by October 12, 2007 or within 90 days after

 

the department receives 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 with the register

 

of deeds of the county where the municipal forestland is located.

 

The instrument shall include provisions implementing subsection

 

(3).

 

     (3) Beginning  4 years after the effective date of the

 

amendatory act that added this subsection  October 12, 2008, 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 public agency to which a reversionary interest was


 

relinquished under subsection (2) 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 the remaining 50% of

 

the proceeds shall be submitted to the department of treasury for

 

deposit as follows:

 

     (i) The first $18,000,000.00 in total proceeds from all such

 

conveyances shall be deposited in the general fund.

 

     (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) Subsection (2) does not apply to prime land.

 

     (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.

 

     (7) The requirements of subsection (6) do not relieve the

 

public agency of any notice, hearing, or other requirements imposed

 

by any other law.

 

     (8) If, before  4 years after the effective date of the

 

amendatory act that added this subsection  October 12, 2008,

 

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), 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.

 

     (9) If municipal forestland was conveyed to a public agency

 

under this section  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.


 

     (10) As used in this section:

 

     (a) "Municipal forestland" means homestead, tax, swamp, or

 

primary school land sold by the department, the department of

 

treasury, or a state officer having charge of state land to a

 

public agency  under this section solely for a forestry purpose.

 

     (b) "Prime land" means land that meets 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 acres in size and, at any time during

 

the preceding 10 years, had a basal area of not less than 90 square

 

feet per acre.

 

     (c) "Public agency" means a school district, public

 

educational institution, governmental unit of this state or agency

 

of this state, or a municipality.