SJR-O, As Passed Senate, May 16, 2018

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE JOINT RESOLUTION O

 

 

 

 

 

 

 

 

 

 

 

 

     A joint resolution proposing an amendment to the state

 

constitution of 1963, by amending sections 35 and 35a of article

 

IX, to provide for the use of certain revenues generated from

 

leases for the extraction of nonrenewable resources from state

 

owned lands and to modify the allowable expenditures from the

 

Michigan natural resources trust fund and the Michigan state parks

 

endowment 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 provide for the use of certain revenues

 

generated from leases for the extraction of nonrenewable resources

 

from state owned lands and to modify the allowable expenditures

 

from the Michigan natural resources trust fund and the Michigan

 

state parks endowment fund, is proposed, agreed to, and submitted


to the people of the state:

 

ARTICLE IX

 

     Sec. 35. (1) There is hereby established the Michigan natural

 

resources trust fund. The trust fund shall consist 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, 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 However,

 

until the Michigan state parks endowment fund reaches an

 

accumulated principal of $800,000,000.00, the revenues from

 

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

 

section that would otherwise be deposited into the trust fund shall

 

be deposited into the Michigan state parks endowment fund. In

 

addition to the revenues described in this subsection, 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.

 

     (2) The Until the Michigan state parks endowment fund reaches

 

an accumulated principal of $800,000,000.00, 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 This amount is the accumulated principal limitation. The

 

accumulated principal of the trust fund shall not be expended.

 

However, the interest and earnings of the trust fund shall be

 

expended for the following:

 

     (a) 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

 

     (b) The development, renovation, and redevelopment of public

 


recreation facilities. , and for the

 

     (c) The administration of the trust fund, which may include

 

payments in lieu of taxes on state owned land purchased through the

 

trust fund.

 

     (3) The trust fund may provide grants to local 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 these grants be

 

provided by the local unit of government or public authority.

 

     (4) Until the trust fund reaches an accumulated principal of

 

$500,000,000.00, the After the Michigan state parks endowment fund

 

reaches an accumulated principal of $800,000,000.00, the

 

accumulated principal limitation for the trust fund as provided for

 

in subsection (2) no longer applies and the revenues from bonuses,

 

rentals, delayed rentals, and royalties described in subsection (1)

 

shall be deposited into the trust fund. From these revenues each

 

year 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 50 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.

 

     (5) 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

 

for recreational uses or protection of the land because of its

 


environmental importance or its scenic beauty, and not more 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 development, renovation, and redevelopment of public recreation

 

facilities.

 

     (6) The legislature shall provide by law for the establishment

 

of a trust fund board within the department of natural resources.

 

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.

 

     (7) The legislature shall provide by law for the

 

implementation of this section.

 

     Sec. 35a. (1) There is hereby established the Michigan state

 

parks endowment fund. The endowment fund shall consist of revenues

 

as provided in section 35 of this article, and as provided by law.

 

The endowment fund may also receive private contributions of money

 

or other things of value. All money in the Genevieve Gillette state

 

parks endowment fund shall be transferred to the endowment fund.

 

The assets of the endowment fund shall be invested as provided by

 

law.

 

     (2) The accumulated principal of the endowment fund shall not

 

exceed $800,000,000.00, which amount shall be annually adjusted

 

pursuant to the rate of inflation beginning when the endowment fund

 

reaches $800,000,000.00. This annually adjusted figure is the

 

accumulated principal limit of the endowment fund.

 

     (3) Money Until December 31, 2019, money available for

 


expenditure from the endowment fund as provided in this section

 

shall be expended for operations, maintenance, and capital

 

improvements at Michigan state parks and for the acquisition of

 

land or rights in land for Michigan state parks.

 

     (4) Money in the endowment fund shall be expended as follows:

 

     (1) Until the endowment fund reaches an accumulated principal

 

of $800,000,000.00, Until December 31, 2019, each state fiscal year

 

the legislature may appropriate not more than 50 percent of the

 

money received under section 35 of this article plus interest and

 

earnings and any private contributions or other revenue to the

 

endowment fund.

 

     (2) Once the accumulated principal in the endowment fund

 

reaches $800,000,000.00, only the interest and earnings of the

 

endowment fund in excess of the amount necessary to maintain the

 

endowment fund's accumulated principal limit may be made available

 

for expenditure.

 

     (5) Beginning January 1, 2020, money available for expenditure

 

from the endowment fund as provided in this section shall be

 

expended for the following:

 

     (a) Operations, maintenance, and capital improvements at

 

Michigan state parks and for the acquisition of land or rights in

 

land for Michigan state parks.

 

     (b) Local public recreation projects conducted by local units

 

of government and public authorities that provide for the

 

following:

 

     (i) The development, renovation, and redevelopment of

 

motorized and nonmotorized trails and related infrastructure.

 


     (ii) The development, renovation, and redevelopment of local

 

public recreation facilities. However, not more than 25 percent of

 

the total expenditures under this subparagraph shall be expended

 

for the prevention of aquatic invasive species and the 1-time

 

control of aquatic invasive species conducted in conjunction with

 

local public recreation projects.

 

     (c) The administration of the endowment fund.

 

     (6) Beginning January 1, 2020 and until the endowment fund

 

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

 

fund may provide grants to local units of government or public

 

authorities for local public recreation projects authorized by this

 

section. The legislature shall provide that a portion of the cost

 

of a project funded by these grants be provided by the local unit

 

of government or public authority.

 

     (7) Beginning January 1, 2020 and until the endowment fund

 

reaches an accumulated principal of $800,000,000.00, each state

 

fiscal year the legislature shall allocate the money received under

 

section 35 of this article as follows:

 

     (a) Thirty percent shall be retained by the endowment fund and

 

credited to the accumulated principal of the endowment fund.

 

     (b) Fifty-five percent shall be made available for expenditure

 

for operations, maintenance, and capital improvements at Michigan

 

state parks and the acquisition of land and rights in land for

 

Michigan state parks.

 

     (c) Fifteen percent shall be made available for expenditure

 

for local public recreation projects authorized by this section.

 

     (8) Beginning January 1, 2020 and until the endowment fund

 


reaches an accumulated principal of $800,000,000.00, the

 

legislature may appropriate the money made available for

 

expenditure under subsection (7) plus interest and earnings and any

 

private contributions or other revenue received by the endowment

 

fund.

 

     (9) Beginning January 1, 2020 and until the endowment fund

 

reaches an accumulated principal of $800,000,000.00, the Michigan

 

natural resources trust fund board established pursuant to section

 

35 of this article shall recommend the local public recreation

 

projects to be funded by the endowment fund. The board shall submit

 

its recommendations to the governor, who shall submit the board's

 

recommendations to the legislature in an appropriations bill.

 

     (10) Once the accumulated principal in the endowment fund

 

reaches $800,000,000.00, the legislature shall appropriate only the

 

interest and earnings of the endowment fund and any private

 

contributions or other revenue received by the endowment fund in

 

excess of the amount necessary to maintain the endowment fund's

 

accumulated principal limit for the following:

 

     (a) Operations, maintenance, and capital improvements at

 

Michigan state parks and for the acquisition of land and rights in

 

land for Michigan state parks.

 

     (b) The administration of the endowment fund.

 

     (11) Unexpended appropriations of the endowment fund from any

 

state fiscal year as authorized by this section may be carried

 

forward or may be appropriated as determined by the legislature for

 

purposes of this section.

 

     (12) The legislature shall provide by law for implementation

 


of this section.

 

     Resolved further, That the foregoing amendment shall be

 

submitted to the people of the state at a special election to be

 

held on August 7, 2018 in the manner provided by law.