SB-0248, As Passed Senate, June 13, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 248

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 503 and 2132 (MCL 324.503 and 324.2132),

section 503 as amended by 2011 PA 65 and section 2132 as amended by

1998 PA 117.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 503. (1) The department shall protect and conserve the

natural resources of this state; provide and develop facilities for

outdoor recreation; prevent the destruction of timber and other

forest growth by fire or otherwise; promote the reforesting of

forestlands belonging to the this state; prevent and guard against

the pollution of lakes and streams within the this state and

enforce all laws provided for that purpose with all authority

granted by law; and foster and encourage the protecting and

propagation of game and fish.

     (2) The department has the power and jurisdiction over the

management, control, and disposition of all land under the public

domain, except for those lands under the public domain that are

managed by other state agencies to carry out their assigned duties

and responsibilities. On behalf of the people of this state, the

department may accept gifts and grants of land and other property

and may buy, sell, exchange, or condemn land and other property,

for any of the purposes contemplated by of this part. Beginning 90

days after the effective date of the 2012 amendatory act that

amended this section, the department shall not acquire surface

rights to land unless the department has estimated the amount of

annual payments in lieu of taxes on the land, posted the estimated

payments on its website for at least 30 days, and notified the

affected local units of the estimated payments at least 30 days

before the acquisition.

     (3) Before May 1, 2015, the department shall not acquire

surface rights to land if the department owns, or as a result of

the acquisition will own, the surface rights to more than 4,626,000

acres of land.

     (4) Beginning May 1, 2015, the department shall not acquire

surface rights to land north of the Mason-Arenac line if the

department owns, or as a result of the acquisition will own, the

surface rights to more than 3,910,000 acres of land north of the

Mason-Arenac line. It is the intention of the legislature, if the

legislature approves the strategic plan, to amend this section to

remove the limitation set forth in this subsection.

     (5) For the purposes of subsections (3) and (4), the number of

acres of land in which the department owns surface rights does not

include any of the following:

     (a) Land in which the department has a conservation easement.

     (b) Land platted under the land division act, 1967 PA 288, MCL

560.101 to 560.293, or a predecessor act before the effective date

of the amendatory act that added this subsection if acquired by the

department before the effective date of the amendatory act that

added this subsection.

     (c) Any of the following if acquired on or after the effective

date of the amendatory act that added this subsection:

     (i) Land with an area of not more than 80 acres, or a right-of-

way, for accessing other land owned by the department.

     (ii) A trail, subject to all of the following:

     (A) If the traveled portion of the trail is located within an

abandoned railroad right-of-way, the land excluded is limited to

the abandoned railroad right-of-way.

     (B) If the traveled portion of the trail is located in a

utility easement, the land excluded is limited to the utility

easement.

     (C) If sub-subparagraphs (A) and (B) do not apply, the land

excluded is limited to the traveled portion of the trail and

contiguous land. The area of the contiguous land shall not exceed

the product of 100 feet multiplied by the length of the trail in

feet.

     (iii) Land that, on the effective date of the amendatory act

that added this subsection, was commercial forestland as defined in

section 51101 if the land continues to be used in a manner

consistent with part 511.

     (iv) Land acquired by the department by gift, including the

gift of funds specifically dedicated to land acquisition.

     (v) Land acquired by the department through litigation.

     (6) The department shall maintain a record of land as

described in subsection (5)(a) to (c). The record shall include the

location, acreage, date of acquisition, and use of the land. The

department shall post and maintain on its website all of the

following information:

     (a) The number of acres of land, including land as described

in subsection (5), in which the department owns surface rights

north of the Mason-Arenac line, south of the Mason-Arenac line, in

total for this state, and by program.

     (b) The number of acres of land, excluding land as described

in subsection (5), in which the department owns surface rights

north of the Mason-Arenac line, south of the Mason-Arenac line, in

total for this state, and by program.

     (7) By October 1, 2014, the department shall develop a written

strategic plan to guide the acquisition and disposition of state

lands managed by the department, submit the plan to the senate and

house committees with primary responsibility for natural resources

and outdoor recreation and the corresponding appropriation

subcommittees, and post the plan on the department's website. In

developing the plan, the department shall solicit input from the

public and local units of government.

     (8) The strategic plan shall do all of the following:

     (a) Divide this state into regions.

     (b) Identify lands managed by the department in each region.

     (c) Set forth for each region measurable strategic performance

goals with respect to all of the following for land managed by the

department:

     (i) Maximizing availability of points of access to the land and

to bodies of water on or adjacent to the land.

     (ii) Maximizing outdoor recreation opportunities.

     (iii) Forests.

     (iv) Wildlife and fisheries.

     (d) To assist in achieving the goals set forth in the

strategic plan pursuant to subdivision (c), identify all of the

following:

     (i) Land to be acquired.

     (ii) Land to be disposed of.

     (iii) Plans for natural resource management.

     (e) To the extent feasible, identify public lands in each

region that are not managed by the department but affect the

achievement of the goals set forth in the strategic plan pursuant

to subdivision (c).

     (f) Identify ways that the department can better coordinate

the achievement of the goals set forth in the strategic plan

pursuant to subdivision (c), recognizing that public lands are

subject to multiple uses and both motorized and nonmotorized uses.

     (9) The department shall not implement the strategic plan as

it applies to land north of the Mason-Arenac line. It is the

intention of the legislature, if the legislature approves the

strategic plan, to amend this section to remove the prohibition set

forth in this subsection. The department shall annually report on

the implementation of the plan and submit and post the report in

the manner provided in subsection (7).

     (10) Beginning 8 years after the effective date of the

amendatory act that added this subsection and every 6 years

thereafter, the department shall update the strategic plan and

submit and post the updated plan in the manner provided in

subsection (7). At least 60 days before posting the updated plan,

the department shall prepare, submit, and post in the manner

provided in subsection (7) a report on progress toward the goals

set forth pursuant to subsection (8)(c) in portions of this state

where, subject to subsection (9), the plan is being implemented and

any proposed changes to the goals, including the rationale for the

changes. The submittal and posting shall include department contact

information for persons who wish to comment on the report.

     (11) At least 30 days before acquiring or disposing of land,

the department shall submit to the senate and house committees with

primary responsibility for natural resources and outdoor recreation

and the corresponding appropriations subcommittees a statement

identifying the land and describing the effect of the proposed

transaction on achieving the goals set forth in the strategic plan

pursuant to subsection (8)(c). The statement shall include

department contact information for persons who wish to comment on

the acquisition or disposition and be in a standard format. The

department shall also post the statement on its website for at

least 30 days before the acquisition or disposition. This

subsection does not apply before the department submits the plan to

legislative committees as required under subsection (7).

     (12) The department may accept funds, money, or grants for

development of salmon and steelhead trout fishing in this state

from the government of the United States, or any of its departments

or agencies, pursuant to the anadromous fish conservation act, 16

USC 757a to 757f, and may use this money in accordance with the

terms and provisions of that act. However, the acceptance and use

of federal funds does not commit state funds and does not place an

obligation upon the legislature to continue the purposes for which

the funds are made available.

(13) (2) The department may appoint persons to serve as

volunteers for the purpose of facilitating the responsibilities of

the department as provided in this part. Subject to the direction

of the department, a volunteer may use equipment and machinery

necessary for the volunteer service, including, but not limited to,

equipment and machinery to improve wildlife habitat on state game

areas.

(14) (3) The department may lease lands owned or controlled by

the department or may grant concessions on lands owned or

controlled by the department to any person for any purpose that the

department determines to be necessary to implement this part. In

granting a concession, the department shall provide that each

concession is awarded at least every 7 years based on extension,

renegotiation, or competitive bidding. However, if the department

determines that a concession requires a capital investment in which

reasonable financing or amortization necessitates a longer term,

the department may grant a concession for up to a 15-year term. A

concession granted under this subsection shall require, unless the

department authorizes otherwise, that all buildings and equipment

shall be removed at the end of the concession's term. Any lease

entered into under this subsection shall limit the purposes for

which the leased land is to be used and shall authorize the

department to terminate the lease upon a finding that the land is

being used for purposes other than those permitted in the lease.

Unless otherwise provided by law, money received from a lease or a

concession of tax reverted land shall be credited to the fund

providing financial support for the management of the leased land.

Money received from a lease of all other land shall be credited to

the fund from which the land was purchased. However, money received

from program-related leases on these lands shall be credited to the

fund providing financial support for the management of the leased

lands. For land managed by the forest management division of the

department, that fund is either the forest development fund

established pursuant to section 50507 or the forest recreation

account of the Michigan conservation and recreation legacy fund

provided for in section 2005. For land managed by the wildlife or

fisheries division of the department, that fund is the game and

fish protection account of the Michigan conservation and recreation

legacy fund provided for in section 2010.

(15) (4) When the department sells land, the deed by which the

land is conveyed may reserve all mineral, coal, oil, and gas rights

to the this state only when the land is in production or is leased

or permitted for production, or when the department determines that

the land has unusual or sensitive environmental features or that it

is in the best interest of this state to reserve those rights as

determined by commission policy. However, the department shall not

reserve the rights to sand, gravel, clay, or other nonmetallic

minerals. When the department sells land that contains subsurface

rights, the department shall include a deed restriction that

restricts the subsurface rights from being severed from the surface

rights in the future. If the landowner severs the subsurface rights

from the surface rights, the subsurface rights revert to this

state. The deed may reserve to the this state the right of ingress

and egress over and across land along watercourses and streams.

Whenever an exchange of land is made , either with the United

States government, a corporation, or an individual , for the

purpose of consolidating the state forest reserves, the department

may issue deeds without reserving to the this state the mineral,

coal, oil, and gas rights and the rights of ingress and egress. The

department may sell the limestone, sand, gravel, or other

nonmetallic minerals. However, the department shall not sell a

mineral or nonmetallic mineral right if the sale would violate part

353, part 637, or any other provision of law. The department may

sell all reserved mineral, coal, oil, and gas rights to such lands

upon terms and conditions as the department considers proper and

may sell oil and gas rights as provided in part 610. The owner of

such those lands as shown by the records shall be given priority in

case the department authorizes any sale of such those lands, and,

unless the landowner waives such rights that priority, the

department shall not sell such rights to any other person. For the

purpose of this section, mineral rights do not include rights to

sand, gravel, clay, or other nonmetallic minerals.

(16) (5) The department may enter into contracts for the sale

of the economic share of royalty interests it holds in hydrocarbons

produced from devonian or antrim shale qualifying for the

nonconventional fuel source production credit contained in

determined under section 29 45k of the internal revenue code of

1986, 26 USC 29 45k. However, in entering into these contracts, the

department shall assure that revenues to the natural resources

trust fund under these contracts are not less than the revenues the

natural resources trust fund would have received if the contracts

were not entered into. The sale of the economic share of royalty

interests under this subsection may occur under contractual terms

and conditions considered appropriate by the department and as

approved by the state administrative board. Funds received from the

sale of the economic share of royalty interests under this

subsection shall be transmitted to the state treasurer for deposit

in the state treasury as follows:

     (a) Net proceeds allocable to the nonconventional fuel source

production credit contained in determined under section 29 45k of

the internal revenue code of 1986, 26 USC 29 45k, under this

subsection shall be credited to the environmental protection fund

created in section 503a.

     (b) Proceeds related to the production of oil or gas from

devonian or antrim shale shall be credited to the natural resources

trust fund or other applicable fund as provided by law.

     (6) As used in subsection (5):

     (a) "Natural resources trust fund" means the Michigan natural

resources trust fund established in section 35 of article IX of the

state constitution of 1963 and provided for in section 1902.

     (b) "Net proceeds" means the total receipts received from the

sale of royalty interests under subsection (5) less costs related

to the sale. Costs may include, but are not limited to, legal,

financial advisory, geological or reserve studies, and accounting

services.

(17) (7) As used in this section:

     (a) "Concession" means an agreement between the department and

a person under terms and conditions as specified by the department

to provide services or recreational opportunities for public use.

     (b) "Lease" means a conveyance by the department to a person

of a portion of the this state's interest in land under specific

terms and for valuable consideration, thereby granting to the

lessee the possession of that portion conveyed during the period

stipulated.

     (c) "Mason-Arenac line" means the line formed by the north

boundaries of Mason, Lake, Osceola, Clare, Gladwin, and Arenac

counties.

     (d) "Natural resources trust fund" means the Michigan natural

resources trust fund established in section 35 of article IX of the

state constitution of 1963 and provided for in section 1902.

     (e) "Net proceeds" means the total receipts received from the

sale of royalty interests under subsection (16) less costs related

to the sale. Costs may include, but are not limited to, legal,

financial advisory, geological or reserve studies, and accounting

services.

     (f) "Strategic plan" or "plan" means the plan developed under

subsection (7).

     Sec. 2132. (1) The Subject to subsection (2), the department

may sell surplus land at a price of not less than its fair market

value as determined by an appraisal.established using the method

that the department determines to be most appropriate, such as any

of the following:

     (a) Appraisal.

     (b) Appraisal consulting.

     (c) A schedule adopted by the department for pricing property

with uniform characteristics and low utility.

     (d) The true cash value of nearby land as determined by the

local assessor.

     (2) If the department offers tax reverted land for sale and

the land is not sold within 9 months, the department may sell the

land to a qualified buyer who submits an offer that represents a

reasonable price for the property as determined by the department.

(3) (2) The sale of surplus land shall be conducted by the

department through 1 of the following methods:

     (a) A sealed or oral bid public auction sale.

     (b) A negotiated sale.

(4) (3) The Subject to subsection (1), the sale of surplus

land through a sealed or oral bid public auction sale shall be to

the highest bidder. A bid shall not be accepted for less than the

fair market value of the surplus land as determined by an

appraisal.

(5) (4) A notice of the sale of surplus land shall be given as

provided in section 2133.

(6) (5) The proceeds from the sale of surplus land shall be

deposited into the fund.

(7) (6) Surplus land that is sold under this subpart shall be

conveyed by quitclaim deed approved by the attorney general.