(1) The game and fish protection account is established as an account within the legacy fund.

    (2) The game and fish protection account shall consist of all of the following:

    (a) Revenue derived from hunting and fishing licenses, passbooks, permits, fees, concessions, leases, contracts, and activities.

    (b) Damages paid for the illegal taking of game and fish.

    (c) Revenue derived from fees, licenses, and permits related to game, game areas, and game fish.

    (d) Other revenues as authorized by law.

    (3) Money in the game and fish protection account shall be expended, upon appropriation, only as provided in part 435 and for the administration of the game and fish protection account, which may include payments in lieu of taxes on state-owned land purchased through the game and fish protection account or through the former game and fish protection fund. The department shall manage land acquired with money from the game and fish protection account or the former game and fish protection fund through the use of scientific game species management for the primary purpose of managing habitat and thereby enhancing recreational hunting opportunities. Unless the department can demonstrate that the expenditure is for that primary purpose, and benefits to nongame species are a result of that primary purpose, both of the following apply:

    (a) Money in the game and fish protection account shall not be expended for management of nongame species.

    (b) Forest treatments on lands acquired with money from the game and fish protection account or the former game and fish protection fund shall not be undertaken to benefit nongame species.

    (4) Money in the game and fish protection account may be expended pursuant to subsection (3) for grants to state colleges and universities to implement programs funded by the game and fish protection account if the department does not have the appropriate staff or other resources to implement the programs itself.