HOUSE BILL No. 5718 February 21, 2002, Introduced by Rep. Lipsey and referred to the Committee on House Oversight and Operations. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 33934, 42506, 47104, and 52706 (MCL 324.33934, 324.42506, 324.47104, and 324.52706), section 33934 as added by 1995 PA 59 and sections 42506, 47104, and 52706 as added by 1995 PA 57. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 33934. (1)In all cases whereIF default is made in 2 the payment of taxes to the treasurer of the township, city, or 3 village in which the lands leased are located, the same shall be 4 returned to the county treasurer according to and subject to the 5 provisions of law for the return and collection of unpaid taxes 6 assessed upon real estate. The treasurer of the township, city, 7 or village, at the same time that he or she makes returns to the 8 county treasurer, shall make and transmit to the department a 02238'01 JLB 2 1 list of the lands so delinquent for taxes and the amount of taxes 2 delinquent upon each description in the list. The county trea- 3 surer shall, at the same time he or she makes his or her return 4 of delinquent lands to theauditor generalDEPARTMENT OF 5 TREASURY, make a similar return to the department of all such 6 leasehold interests, the taxes upon which have not been col- 7 lected, with a statement of the amount thereof. The county trea- 8 surer shall not receive payment of the amount of any taxes 9 assessed upon such leasehold interests; but such taxes when 10 returned delinquent by the township treasurer shall be payable 11 only to the department. The department shall provide suitable 12 books and enter in those books the description of every leasehold 13 interest so returned and the taxes thereon. The person holding 14 such interest in any parcel ofsaid landsTHIS LAND may pay to 15 the department at any time within 1 year after the same becomes a 16 lien on the premises, the taxes assessed thereon, with interest 17 at the rate of 1/2 of 1% per month or fraction thereof, with 4% 18 as a collection fee, from the first day of March last preceding. 19 However, if the taxes are not paid withinthe time herein speci-20fied, saidTHIS TIME PERIOD, THE leasehold interestshall21standIS forfeited because of the nonpayment ofsuchTHE 22 taxes, and within its discretion the department may release 23saidTHE premises to any person for any term of years not 24 exceeding 99 years, uponsuchTHAT person paying to the depart- 25 ment all unpaid taxesthereonON THE LAND, together with such 26 rental as may be determined upon under this part by the 27 department.In the event any such02238'01 3 1 (2) IF THE leasehold interest is owned by 2 or more persons, 2 and any 1 or more of the persons neglect or refuse to pay his or 3 her or their proportionate share of the taxes assessed against 4 the leasehold at the date when the taxes become due and payable, 5 then any 1 or more of the owners may pay his or her or their pro- 6 portionate share of the taxes, and the county treasurer, in his 7 or her return of delinquent lands to the department, shall indi- 8 catesaidpartial payments of taxes credited to the owner or 9 owners making them. Any owner not having made payment of his or 10 her proportionate share of the taxes may, at any time within 1 11 year after the taxes have become a lien on the premises, pay to 12 the department his or her proportionate share of the taxes with 13 interest at the rate of 1% per month or fraction thereof, from 14 the first day of March last preceding. If the proportionate 15 share of taxes of any such owner is not paid withinthe time16herein specifiedTHIS TIME PERIOD, the interest of the owner in 17 the leaseholdshall standIS forfeited because of the nonpay- 18 ment ofsuchTHE taxes, and thereafter within 30 days, such of 19 the owners as have paid their proportionate share of the taxes, 20 upon payment to the department of the amount of the taxes remain- 21 ing due with interest accrued to the date of forfeiture, shall be 22 entitled to conveyances by the department ofsuchTHE interests 23 in the leaseholdasTHAT have been forfeited. The interest 24 thus conveyed shall be allotted equally among those owners who 25 shall pay the delinquent taxes with interest as provided in this 26 section. 02238'01 4 1 (3) If default is made by any lessee in the payment of 2 taxes, he or she shall be notified in writing by the department 3 at least 3 months before the date of final forfeiture of the 4 amount due and the penalty for nonpayment and the date upon which 5 forfeiture is to occur. 6 (4) Upon payment to the department of taxes and interest as 7 provided in this section,suchTHE PAYMENT amount shall be 8 credited to the county in which such leasehold interests were 9 assessed, in the same manner as taxes and interest are now cred- 10 ited to counties on part-paid state lands. 11 (5) Immediately upon formal determination by the department 12 that a lease has been forfeited under this part, a certificate of 13 cancellation of thesameLEASE shall be executed under the seal 14 of the department and shall be forwarded to the register of deeds 15 of the countywherein suchWHERE THE land is situated. Upon 16 receipt ofsuchTHIS certificate, the register of deeds shall 17 at once causethe sameIT to be recorded in a suitable book to 18 be provided bysaidTHE register OF DEEDS. If the lease is of 19 record insaid officeTHE REGISTER OF DEEDS, the register OF 20 DEEDS shall notethereonON THE LEASE the fact that a certifi- 21 cate of cancellation has been issued and shall also note the 22 citation to the record of such certificate. 23 Sec. 42506. All money received from the sale of licenses as 24 provided in this part shall be forwarded to theauditor general25 STATE TREASURER and placed to the credit of the game and fish 26 protection fund created in part 435, and shall be used for the 02238'01 5 1 purpose necessary to the protection, propagation, and 2 distribution of game and fur-bearing animals as provided by law. 3 Sec. 47104. The unexpended balance of any appropriation to 4 implement this part at the end of the year for which the appro- 5 priation is made shall be carried forward to the credit of the 6 department, if the department certifies to theauditor general7and thestate treasurer that the money is needed for the pur- 8 chase of additional grounds, for making permanent improvements 9 upon any of its property, or for equipment or labor. 10 Sec. 52706. The department, theauditor general11 DEPARTMENT OF TREASURY, or other state officer having charge of 12 state land, may sell homestead, tax, swamp, or primary school 13 land to municipalities for forestry purposes, at a price fixed by 14 the department,auditor generalDEPARTMENT OF TREASURY, or 15 other state officer. However, land shall not be sold in excess 16 of the amount that may be necessary for the municipality, and any 17 land that is sold shall be suitable for and used solely for a 18 forestry purpose. When the land described in this section is no 19 longer used for a forestry purpose, the land shall revert to the 20 state. 02238'01 Final page. JLB