HB-4577, As Passed House, June 30, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4577

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending section 1903 (MCL 324.1903), as amended by 2002 PA 52.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1903. (1) Subject to the limitations of this part and of

section 35 of article IX of the state constitution of 1963, the

interest and earnings of the trust fund in any 1 state fiscal year

may be expended in subsequent state fiscal years only for the

following purposes:

     (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.

     (b) The development of public recreation facilities.

     (c) The administration of the fund, including payments in lieu

of taxes on state owned land purchased through the trust fund. The

legislature shall make appropriations from the trust fund each

state fiscal year to make full payments in lieu of taxes on state-

owned land purchased through the trust fund, as provided in section

2154.

     (2) In addition to the money described in subsection (1), 33-

1/3% of the money, exclusive of interest and earnings, received by

the trust fund in any state fiscal year may be expended in

subsequent state fiscal years for the purposes described in

subsection (1). However, the authorization for the expenditure of

money provided in this subsection does not apply after the state

fiscal year in which the total amount of money in the trust fund,

exclusive of interest and earnings and amounts authorized for

expenditure under this section, exceeds $500,000,000.00.

     (3) An expenditure from the trust fund may be made in the form

of a grant to a local unit of government or public authority,

subject to all of the following conditions:

     (a) The grant is used for the purposes described in subsection

(1). and meets the requirements of either subdivision (b) or (c).

     (b) A The grant for the purposes described in subsection

(1)(a) is matched by the local unit of government or public

authority with at least 25% of the total cost of the project.

     (c) A grant for the purposes described in subsection (1)(b) is

matched by the local unit of government with 25% or more of the

total cost of the project.

     (4) Not less than 25% 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% 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.

     (5) If property that was acquired with money from the trust

fund is subsequently sold or transferred by the state to a

nongovernmental entity, the state shall forward to the state

treasurer for deposit into the trust fund an amount of money equal

to the following:

     (a) If the property was acquired solely with trust fund money,

the greatest of the following:

     (i) The net proceeds of the sale.

     (ii) The fair market value of the property at the time of the

sale or transfer.

     (iii) The amount of money that was expended from the trust fund

to acquire the property.

     (b) If the property was acquired with a combination of trust

fund money and other restricted funding sources governed by federal

or state law, an amount equal to the percentage of the funds

contributed by the trust fund for the acquisition of the property

multiplied by the greatest of the amounts under subdivision (a)(i),

(ii), or and (iii).