SB-1280, As Passed Senate, November 8, 2012

SUBSTITUTE FOR

SENATE BILL NO. 1280

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 501, 503, 2131, and 2132 (MCL 324.501,

324.503, 324.2131, and 324.2132), section 503 as amended by 2012 PA

294, section 2131 as amended by 2006 PA 308, and section 2132 as

amended by 2012 PA 240.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 501. (1) A department of natural resources for this state

is created which shall possess the powers and perform the duties

granted and imposed by this act and as otherwise provided by law.

(2) The ~~commission of~~ natural resources commission is created.

~~as the head of the department of natural resources and may~~

~~establish general policies related to natural resources management~~

~~and environmental protection for the guidance of the director. In~~

~~addition, the commission has appellate authority as provided in~~

~~section 1101.~~ The commission shall be composed of 7 members, not

more than 4 of whom shall be members of the same political party,

appointed by the governor by and with the advice and consent of the

senate. A member of the commission shall be selected with special

reference to that person's training and experience related to at

least 1 of the principal lines of activities vested in the

department of natural resources and the ability and fitness of that

person to deal with those activities. The term of office of each

member of the commission shall be 4 years. An individual is not

eligible to serve more than 2 terms on the commission. An

individual who serves more than 2 years of a term shall be

considered to have served a full term. An individual serving in a

third or subsequent term on the commission when the amendatory act

adding this 2-term limitation takes effect may continue to serve

for the balance of his or her term. The governor shall fill a

vacancy occurring in the membership of the commission and may

remove a member of the commission for cause after a hearing. Each

member of the commission shall hold office until the appointment

and qualification of that member's successor.

(3) The commission, within 30 days after having qualified and

annually after that time, shall meet at its office in Lansing and

organize by appointing a secretary, who need not be a member of the

commission. The governor shall appoint a chairperson of the

commission from among its members. ~~, who~~ The chairperson shall

serve as chairperson at the pleasure of the governor. Four members

of the commission constitute a quorum for the transaction of

business. The business which the commission may perform shall be

conducted at a public meeting of the commission held in compliance

with the open meetings act, ~~Act No. 267 of the Public Acts of 1976,~~

~~being sections 15.261 to 15.275 of the Michigan Compiled Laws.~~ 1976

PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and

place of the meeting shall be given in the manner required by ~~Act~~

~~No. 267 of the Public Acts of 1976.~~ that act. A meeting may be

called by the chairperson and shall be called on request of a

majority of the members of the commission. ~~A meeting~~ Meetings may

be held as often as necessary and at other places than the

commissioners' offices at Lansing. The commission shall meet at

least ~~once each~~ every other month and shall post a schedule of its

meetings on the department website.

(4) ~~The commission shall appoint and employ a director who~~

~~shall continue in office at the pleasure of the commission.~~ The

commission shall advise the director of the department of natural

resources on matters related to natural resources and conservation.

The director of the department of natural resources shall be

appointed by the governor and shall serve at the pleasure of the

governor. The director shall appoint 1 or more deputy directors and

other assistants and employees as are necessary to implement this

part and any other law of this state affecting the powers and

duties of the department of natural resources. A person to whom the

director has lawfully delegated decision making authority in

writing may perform a duty or exercise a power conferred by law

upon the department at the time and to the extent the duty and

power is delegated to that person by the director. When a vacancy

in the office of director occurs, or the director is unable to

perform the director's duties or is absent from the state, the

powers and duties of the director as prescribed by law shall be

imposed on and transferred to a deputy director until the vacancy

is filled or the director's inability or absence from the state

ceases.

(5) The compensation of the deputy directors, the assistants,

and the employees and the number of assistants and employees shall

be subject to the approval of the state administrative board. The

members of the commission shall not receive compensation under this

part, but each member and the other officers and employees of the

department of natural resources ~~shall be~~ are entitled to reasonable

expenses while traveling in the performance of their duties

prescribed by this act. The salaries and expenses authorized under

this act shall be paid out of the state treasury in the same manner

as the salaries of other state officers and employees are paid. The

department of technology, management, and budget shall furnish

suitable offices and office equipment, at in Lansing, for the use

of the department of natural resources. Each member of the

commission and the director shall qualify by taking and subscribing

to the constitutional oath of office and by filing it in the office

of the secretary of state.

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

natural resources of this state while optimizing natural resource

based economic activity and recreational opportunities on land

owned or controlled by the department; 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 this state; prevent and

guard against the pollution of lakes and streams within this state

and enforce all laws provided for that purpose with all authority

granted by law; ~~and~~ foster and encourage the protection and

propagation of game and fish; and promote the development of the

forestry and forest products industry and the mineral extraction

and utilization industry in this state.

(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 of this part. Beginning September 30, 2012,

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. This subsection does not apply after the

enactment of legislation adopting the strategic plan.

(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 July 2, 2012 if

acquired by the department before July 2, 2012.

(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.

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 July 2, 2012 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),~~ (5)(a) to (c), 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),~~ (5)(a) to (c), 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.

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. This subsection

does not apply after the enactment of legislation adopting the

strategic plan.

(10) The department shall annually report on the

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

manner provided in subsection (7).

(11) Beginning July 2, 2020 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.

(12) 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

strategic plan to legislative committees as required under

subsection (7).

(13) 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.

(14) 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.

(15) 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.

(16) When the department sells land, the deed by which the

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

to 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 this state the right of ingress and

egress over and across land along watercourses and streams.

Whenever an exchange of land is made 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 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 those lands as

shown by the records shall be given priority in case the department

authorizes any sale of those lands, and, unless the landowner

waives 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.

(17) 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 source production credit determined under section

45k of the internal revenue code of 1986, 26 USC 45k. However, in

entering into these contracts, the department shall ~~assure~~ ensure

that revenues to the natural resources trust fund or other

applicable fund as provided by law under these contracts are not

less than the revenues the natural resources trust fund or other

applicable fund as provided by law 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 source

production credit determined under section 45k of the internal

revenue code of 1986, 26 USC 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.

(18) 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 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.

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 (17) 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. 2131. (1) Except as otherwise provided in subsection (2)

or (3), the department may designate as surplus land any state

owned land that is under the control of the department and that has

been dedicated for public use and may, on behalf of the state, sell

that land if the department determines all of the following:

(a) That the sale will not materially diminish the quality or

utility of other state owned land adjoining the land to be sold.

(b) That the sale is not otherwise restricted by law.

giving due regard to the variety, use, and quantity of lands then

under the control of the department.

(d) That 1 or ~~both~~ more of the following conditions are met:

(i) The land has been dedicated for public use for not less

than 5 years immediately preceding its sale and is not needed to

meet a department objective.

(ii) The land is occupied for a private use through inadvertent

trespass.

(iii) The sale will promote the development of the forestry or

forest products industry or the mineral extraction and utilization

industry in this state.

(2) The department shall not authorize the sale of surplus

land as provided in subsection (1) if the proceeds from the sale of

the land will cause the balance of the fund to exceed

~~$2,500,000.00.~~$25,000,000.00.

(3) Except as provided in section 74102b, the department shall

not designate as surplus land any land within a state park or state

recreation area.

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

sell surplus land at a price established using the method that the

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

following:

(a) Appraisal.

(b) Appraisal consulting.

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) The sale of surplus land shall be conducted by the

department through 1 of the following methods:

(a) A public auction sale.

(b) A negotiated sale.

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

through a public auction sale shall be to the highest bidder.

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

provided in section 2133.

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

deposited into the fund.

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

conveyed by quitclaim deed approved by the attorney general.

(8) Each application, as later amended or supplemented,

submitted by a private person under subsection (3)(b) for the

purchase of the land identified in that application as a prospect

for purchase, shall be considered and acted upon by the department

to final decision, before any other application submitted at a

later date by a different private person for the purchase or