HOUSE JOINT RESOLUTION B

 

January 13, 2011, Introduced by Reps. Agema, Yonker, Hooker, Pscholka and Damrow and referred to the Committee on Natural Resources, Tourism, and Outdoor Recreation.

 

     A joint resolution proposing an amendment to the state

 

constitution of 1963, by amending section 35 of article IX, to

 

reduce the proportion of certain lease revenue required to be

 

deposited in the Michigan natural resources trust fund.

 

     Resolved by the Senate and House of Representatives of the

 

state of Michigan, That the following amendment to the state

 

constitution of 1963, to reduce the proportion of certain lease

 

revenue required to be deposited in the Michigan natural resources

 

trust fund, is proposed, agreed to, and submitted to the people of

 

the state:

 

ARTICLE IX

 

     Sec. 35. There is hereby established the Michigan natural


 

resources trust fund. The trust fund shall consist of all revenue

 

in the trust fund immediately prior to the effective date of the

 

2012 amendment to this section and 20 percent of all bonuses,

 

rentals, delayed rentals, and royalties collected or reserved by

 

the state under provisions of leases for the extraction of

 

nonrenewable resources from state owned lands on or after the

 

effective date of that amendment, except such revenues accruing

 

under leases of state owned lands acquired with money from state or

 

federal game and fish protection funds or revenues accruing from

 

lands purchased with such revenues. The trust fund may receive

 

appropriations, money, or other things of value. The assets of the

 

trust fund shall be invested as provided by law.

 

     Until the trust fund reaches an accumulated principal of

 

$500,000,000.00, $10,000,000.00 of the revenues from bonuses,

 

rentals, delayed rentals, and royalties described in this section

 

otherwise dedicated to the trust fund that are received by the

 

state each state fiscal year shall be deposited into the Michigan

 

state parks endowment fund. However, until the trust fund reaches

 

an accumulated principal of $500,000,000.00, in any state fiscal

 

year, not more than 50 percent of the total revenues from bonuses,

 

rentals, delayed rentals, and royalties described in this section

 

otherwise dedicated to the trust fund that are received by the

 

state each state fiscal year shall be deposited into the Michigan

 

state parks endowment fund.

 

     The amount accumulated in the trust fund in any state fiscal

 

year shall not exceed $500,000,000.00, exclusive of interest and

 

earnings and amounts authorized for expenditure pursuant to this


 

section. When the accumulated principal of the trust fund reaches

 

$500,000,000.00, all revenue from bonuses, rentals, delayed

 

rentals, and royalties described in this section that would be

 

received by the trust fund but for this limitation shall be

 

deposited into the Michigan state parks endowment fund until the

 

Michigan state parks endowment fund reaches an accumulated

 

principal of $800,000,000.00. When the Michigan state parks

 

endowment fund reaches an accumulated principal of $800,000,000.00,

 

all revenues from bonuses, rentals, delayed rentals, and royalties

 

described in this section shall be distributed as provided by law.

 

     The interest and earnings of the trust fund shall be expended

 

for the acquisition of land or rights in land for recreational uses

 

or protection of the land because of its environmental importance

 

or its scenic beauty, for the development of public recreation

 

facilities, and for the administration of the trust fund, which may

 

include payments in lieu of taxes on state owned land purchased

 

through the trust fund. The trust fund may provide grants to units

 

of local government or public authorities which shall be used for

 

the purposes of this section. The legislature shall provide that a

 

portion of the cost of a project funded by such grants be provided

 

by the local unit of government or public authority.

 

     Until the trust fund reaches an accumulated principal of

 

$500,000,000.00, the legislature may provide, in addition to the

 

expenditure of interest and earnings authorized by this section,

 

that a portion, not to exceed 33-1/3 percent, of the revenues from

 

bonuses, rentals, delayed rentals, and royalties described in this

 

section received by the trust fund during each state fiscal year


 

may be expended during subsequent state fiscal years for the

 

purposes of this section.

 

     Not less than 25 percent of the total amounts made available

 

for expenditure from the trust fund from any state fiscal year

 

shall be expended for acquisition of land and rights in land and

 

not more than 25 percent of the total amounts made available for

 

expenditure from the trust fund from any state fiscal year shall be

 

expended for development of public recreation facilities.

 

     The legislature shall provide by law for the establishment of

 

a trust fund board. The trust fund board shall exist within the

 

department of natural resources and environment or a successor

 

department. The trust fund board shall recommend the projects to be

 

funded. The board shall submit its recommendations to the governor

 

who shall submit the board's recommendations to the legislature in

 

an appropriations bill.

 

     The legislature shall provide by law for the implementation of

 

this section.

 

     Resolved further, That the foregoing amendment shall be

 

submitted to the people of the state at the next general election

 

in the manner provided by law.