HOUSE BILL NO. 5292

December 10, 2019, Introduced by Reps. Pohutsky, Rabhi, Brixie, Hood, Sowerby, Wittenberg, Hoadley, LaGrand, Peterson, Brenda Carter, Haadsma, Cynthia Johnson, Anthony, Bolden, Hammoud and Kuppa and referred to the Committee on Natural Resources and Outdoor Recreation.

"Natural resources and environmental protection act,"

by amending sections 502, 503, and 504 (MCL 324.502, 324.503, and 324.504), section 502 as amended by 2004 PA 587, section 503 as amended by 2018 PA 240, and section 504 as amended by 2018 PA 238.

the people of the state of michigan enact:

Sec. 502. (1) The commission may promulgate rules, not inconsistent with law, governing its organization and procedure.

(2) The department may do 1 or more of the following:

(a) Promulgate and enforce reasonable rules concerning the protection, conservation, use, and occupancy of lands land, water, and property under its the department's control, in accordance with subject to section 504.

(b) Provide and develop facilities for outdoor recreation.

(c) Conduct investigations it considers necessary for the proper protection, conservation, and management of land, water, and property under the department's control through the administration of this part.

(d) Remove and dispose of forest products as required for the protection, reforestation, and proper development and conservation of the lands land and property under the department's control. of the department.

(e) Require the payment of a fee as provided by law for a daily permit or other authorization that allows the person to hunt and take waterfowl on a public hunting area managed and developed for waterfowl.

(3) Except as provided in subsection (4), the department may enter into contracts for the taking of coal, oil, gas, and other mineral products from state owned lands, land, upon a royalty basis or upon another basis, and upon the terms the department considers just and equitable, subject to section 502a. This contract power includes authorization to enter into contracts for the storage of gas or other mineral products in or upon state owned lands, land, if the consent of the state agency having jurisdiction and control of the state owned land is first obtained. A contract permitted under this section subsection for the taking of coal, oil, gas, or metallic mineral products, or for the storage of gas or other mineral products, is not valid unless the contract is approved by the state administrative board. Money received from a contract for the storage of gas or other mineral products in or upon state lands land shall be transmitted to the state treasurer for deposit in the general fund of the this state to be used for the purpose of defraying to defray the expenses incurred in the administration of this act and other purposes provided by law. Other money received from a contract permitted under this subsection, except money received from lands land acquired with money from the former game and fish protection fund or the game and fish protection account of the Michigan conservation and recreation legacy fund provided for in section 2010, shall be transmitted to the state treasurer for deposit in the Michigan natural resources trust fund created in section 35 of article IX of the state constitution of 1963 and provided for in part 19. However, the money received from the payment of service charges by a person using areas managed for waterfowl shall be credited to the game and fish protection account of the Michigan conservation and recreation legacy fund provided for in section 2010 and used only for the purposes provided by law. Money received from bonuses, rentals, delayed rentals, royalties, and the direct sale of resources, including forest resources, from lands land acquired with money from the former game and fish protection fund or the game and fish protection account of the Michigan conservation and recreation legacy fund provided for in section 2010 shall be credited to the Michigan game and fish protection trust fund established in section 41 of article IX of the state constitution of 1963 and provided for in part 437, except as otherwise provided by law.

(4) The department shall not enter into a contract that allows drilling operations beneath the lake bottomlands of the Great Lakes, the connected bays or harbors of the Great Lakes, or the a connecting waterways waterway as defined in section 32301, for the exploration or production of oil or gas.

(5) This section does not permit a contract for the taking of gravel, sand, coal, oil, gas, or other metallic mineral products that does not comply with applicable local ordinances and state law.

Sec. 503. (1) The department shall protect and conserve the water and other natural resources of this state and the public trust in those natural resources; 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. Before issuing an order or promulgating a rule under this act that will designate or classify land managed by the department for any purpose, the department shall consider, in addition to any other matters required by law, all of the following:

(a) Providing for access to and use of the public land and water for recreation and tourism.

(b) The existence of or potential for natural resources-based industries, including forest management, mining, or oil and gas development on the public land.

(2) The department has the power and jurisdiction over the management, control, and disposition of all land under the public domain and over the management and control of all water under the public domain, except for those lands land and water 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.

(3) If any payment under subpart 13 or 14 of part 21 or section 51106 for land located north of the Mason-Arenac line is not made in full and on time during a fiscal year, then, until the end of that fiscal year, the department shall not purchase surface rights to land located north of the Mason-Arenac line unless 1 or both of the following apply:

(a) Full payment was made later during that fiscal year.

(b) The specific acquisition is approved by resolution adopted by the following, as applicable:

(i) If the land is located in a single township, the township board.

(ii) If the land is located in 2 or more townships, the county board of commissioners of the county where the land is located.

(4) For the purposes of subsections (3) and (9), respectively, land in which the department acquires or owns surface rights does not include any of the following:

(a) Land acquired under an option agreement in effect on the date when the payment described in subsection (3) became due if the acquisition takes place within 120 days after the payment became due.

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

(c) Land that, before July 2, 2012, was platted under the land division act, 1967 PA 288, MCL 560.101 to 560.293, or a predecessor act and acquired by the department.

(d) Any of the following if acquired on or after 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 or for accessing the waters of the state as defined in section 3101.

(ii) Land for a trail, subject to all of the following:

(A) If the traveled portion of the proposed 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 proposed 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 proposed trail and contiguous land. For the purposes of the exclusion, the area of the contiguous land shall not exceed the product of 100 feet multiplied by the length of the proposed 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.

(5) The department shall maintain a record of land as described in subsection (4)(a) to (d). The record shall include the location, acreage, date of acquisition, and use of the land.

(6) By October 1, 2014, the department shall develop a written strategic plan to guide the acquisition and disposition of state lands land managed by the department, submit the plan to the relevant legislative committees, 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.

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

(a) Divide this state into regions.

(b) Identify lands land and public bodies of water 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 land and public bodies of water 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 land and public bodies of water are subject to multiple uses and both motorized and nonmotorized uses.

(g) Identify critical trail connectors to enhance motorized and nonmotorized natural-resource-dependent outdoor recreation activities for public enjoyment.

(8) The legislature approves the strategic plan entitled "Department of Natural Resources Managed Public Land Strategy" issued by the department and dated July 1, 2013. The department shall implement the most recent legislatively approved strategic plan and shall not change the plan except by a plan update proposed pursuant to subsection (10) and subsequently approved by the legislature.

(9) The department shall annually submit to the relevant legislative committees and post and annually update on the department's website all of the following:

(a) A report on the implementation of the plan.

(b) The number of acres of land in which the department owns surface rights north of the Mason-Arenac line, south of the Mason-Arenac line, and in total for this state.

(i) Acres of land managed by the department.

(ii) Acres of state park and state recreation area land.

(iii) Acres of state game and state waterfowl areas.

(iv) Acres of land managed by the department and open for public hunting.

(v) Acres of state-owned mineral rights managed by the department that are under a development lease.

(vi) Acres of state forestland.

(vii) Public boating access sites managed by the department.

(viii) Miles of motorized trails managed by the department.

(ix) Miles of nonmotorized trails managed by the department.

(10) For legislative consideration and approval, as provided in subsection (8), by July 1, 2021, and every 6 years thereafter, the department shall propose an update to the strategic plan, submit the proposed updated plan to the relevant legislative committees, and post the proposed updated plan on the department's website. At least 60 days before posting the proposed updated plan, the department shall prepare, submit to the relevant legislative committees, and post on the department's website a report that covers all of the following and includes department contact information for persons who wish to comment on the report:

(a) Progress toward the goals set forth in the strategic plan pursuant to subsection (7)(c).

(b) Any proposed changes to the goals, including the rationale for the changes.

(11) Subject to subsection (12), if land owned by this state and managed by the department, land owned by the federal government, and land that is commercial forestland as defined in section 51101 constitute 40% or more of the land in a county, the department shall not acquire land in that county if, not more than 60 days after the department sent the notice of the proposed acquisition to the board under section 2165, the department receives a copy of a resolution rejecting the proposed acquisition adopted by the following, as applicable:

(a) If the land is located in a single township, the township board.

(b) If the land is located in 2 or more townships, the county board of commissioners.

(12) Subsection (11) does not apply to land described in subsection (4)(d).

(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 compliance 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 to assist the department in meeting its responsibilities 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 land owned or controlled by the department or may grant concessions on lands land owned or controlled by the department to any person for any purpose that the department determines to be necessary to implement this part. The department shall grant each concession for a term of not more than 7 years based on extension, renegotiation, or competitive bidding. However, if the department determines that a concession requires a capital investment in for 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 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 any 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 may reserve all mineral, coal, oil, and gas rights to this state only if the land is in production or is leased or permitted for production, or if 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 land 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 the land as shown by the records shall be given priority in case the department authorizes any sale of those lands, the land, 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 ensure 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 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.

(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 (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) "Relevant legislative committees" means the senate and house committees with primary responsibility for natural resources and outdoor recreation and the corresponding appropriation subcommittees.

(g) "Strategic plan" or "plan" means the plan developed under subsection (6), as updated under subsection (10), if applicable.

Sec. 504. (1) The department shall promulgate rules to protect and preserve lands land, water, and other property under its control from depredation, damage, or destruction or wrongful or improper use or occupancy. Not more than 10 days after promulgating a rule under this subsection, the department shall provide a copy of the rule to the relevant legislative committees, as defined in section 503. Within 6 months after the effective date of a rule promulgated under this subsection that limits the use of or access to more than 500 acres of state forest, the department shall, if requested by the chair of a relevant legislative committee, provide testimony to the committee on the implementation and effects of the rule.

(2) Subject to subsection (3), the department shall do all of the following:

(a) Keep land and bodies of water under its control open to hunting and fishing unless the department determines that the land or body of water should be closed to hunting or fishing because of public safety, fish or wildlife management, or homeland security concerns or as otherwise required by law.

(b) Manage land and water under its control to support and promote hunting and fishing opportunities to the extent authorized by law.

(3) Subsection (2) does not apply to commercial forestland as defined in section 51101.

(4) The department is urged to promote public enjoyment of this state's wildlife and other natural resources by providing public access to lands land and bodies of water under the control of the department for outdoor recreation activities dependent on natural resources, providing reasonable consideration for both motorized and nonmotorized activities.

(5) If the department receives a written resolution from a recreational users organization or the legislative body of a local unit of government requesting the removal of a berm, gate, or other human-made barrier on land under the department's control, the department shall notify the requestor in writing within 60 days of 1 of the following:

(a) That the barrier will be removed. In this case, the department shall remove the barrier within 180 days after receiving the written request.

(b) The reasons the department believes the barrier should not be removed and the right of the recreational users organization or local unit of government, within 21 days after the department sends the written notice, to request in writing a public meeting on the matter. If the recreational users organization or local unit of government requests a public meeting as provided in this subdivision, the department shall conduct a public meeting within the city, village, or township where the barrier is located to explain the department's position and receive comments on the proposed removal. After the meeting, and within 180 days after receiving the request to remove the barrier, the department shall approve or deny the request and notify the requestor in writing. If the request is denied, the notice shall include the reasons for denial. If the request is approved, the department shall remove the barrier as follows:

(i) Unless subparagraph (ii) applies, within 180 days after the public meeting.

(ii) Within 30 days, if the recreational users organization or legislative body requesting the removal of the barrier agrees with the department to remove the barrier under the department's oversight and at the requestor's expense.

(c) That the department will not consider the request. The department is not required to consider the request if, within the 3-year period preceding the receipt of the request, the department received another request for removal of the barrier and acted or is acting on the request under subdivision (a) or (b). The notice under this subdivision shall explain why the request is not being considered and specify the date after which the department is required, if the barrier has not already been removed, to consider a new request.

(6) Upon request from a local unit of government, the department shall work with the local unit to allow use of state land managed by the department and located within the local unit that will benefit the local community by increasing outdoor recreation opportunities and expanding access to and appropriate use of the natural resources and outdoors. The department may charge the local unit a reasonable fee for the use that does not exceed the costs incurred by the department for the use.

(7) This section does not authorize the department to promulgate a rule that applies to commercial fishing except as otherwise provided by law.

(8) The department shall not promulgate or enforce a rule that prohibits an individual who is licensed or exempt from licensure under 1927 PA 372, MCL 28.421 to 28.435, from carrying a pistol in compliance with that act, whether concealed or otherwise, on property under the control of the department.

(9) The department shall issue orders necessary to implement rules promulgated under this section. The orders are effective upon posting.

(10) In Subject to subsection (11), in issuing an order under subsection (9), the department shall comply with the following procedures in a manner that ensures adequate public notice and opportunity for public comment:

(a) The department shall prepare the order after considering comments from department field personnel.

(b) The department shall conduct a public meeting and otherwise provide an opportunity for public comment on the order.

(c) Commencing at least 30 days before the first meeting and continuing through the public comment period under subdivision (b), the natural resources commission shall include the order on a public meeting agenda and the department shall post the order on its website. If the order will result in a loss of public land open to hunting, the agenda and website posting shall specify the number of acres affected.

(d) Not less than 30 days before issuance of an order, the department shall provide a copy of the order to the relevant legislative committees. This subdivision does not apply to an order that does not alter the substance of a lawful provision that exists in the form of a statute, rule, regulation, or order at the time the order is prepared.

(11) Subsection (10) does not apply to an order for emergency management purposes that is in effect for 90 days or less.

(12) If an order limits the use of or access to more than 500 acres of state forest, the department shall provide a copy of the order to the relevant legislative committees not more than 10 days after the order is issued. If requested by the chair of a relevant legislative committee, the department shall provide testimony on the implementation and effects of such an order at a committee hearing held within 6 months after the effective date of the order.

(13) The department may revise an order issued pursuant to subsection (9). The revision is subject to subsections (10) to (12), as applicable.

(14) A person who violates a rule promulgated under this section or an order issued under this section is responsible for a state civil infraction and may be ordered to pay a civil fine of not more than $500.00.

(15) As used in this section, "relevant legislative committees" means that term as defined in section 503.