HB-5631, As Passed House, June 9, 2016HB-5631, As Passed Senate, June 8, 2016

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5631

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 50507 (MCL 324.50507), as amended by 2004 PA

 

124.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 50507. (1) The authority shall finance only forest

 

management operations and practices consistent with part 525 that

 

follow the guidelines, rules, and objectives prescribed and

 

approved by the department as these guidelines, rules, and

 

objectives are amended by the department.

 

     (2) Funds managed by the authority shall be applied in a

 

manner consistent with part 525 and the land management planning

 

policies of the department on lands that have been identified for

 

forest management practices. In the absence of an approved state

 


forest management plan covering a candidate area, an interim

 

procedure, as adopted by the department, shall be used to assure

 

ensure that all forest values have been considered in selecting

 

sites for investment with funds of the authority. The department

 

shall annually submit a list of activities and practices allocated

 

from the funds generated under this part for the board's review and

 

determination of consistency with the purposes of this part.

 

     (3) The executive director of the authority shall notify the

 

department if the authority projects a probable default on any

 

bonds or notes issued by the authority. , and within Within 1 year

 

of receipt of the notification, or within less than 1 year, if the

 

notification indicates a shorter time period is necessary to avoid

 

a default, the department shall identify and convey to the

 

authority sufficient timber on tax reverted lands to enable the

 

authority to avoid the projected default and to provide for timely

 

payment of principal of and interest on the authority's bonds or

 

notes. The authority may only issue contracts for the cutting and

 

sale of timber that has been conveyed to the authority under this

 

section to avoid a default on any bonds or notes issued by the

 

authority. The determination of the board as to the need to cut and

 

sell timber is conclusive. Contracts for the cutting and sale of

 

timber shall be consistent with part 525 and with the guidelines,

 

rules, and objectives prescribed by the department.

 

     (4) The authority shall establish a fund designated as the

 

"forest development fund". Any money on hand or received in the

 

future from bond proceeds and from contracts for the cutting and

 

sale of timber on tax reverted lands shall be deposited in the


forest development fund. In addition, this fund may receive

 

revenues from any other source. The Except as otherwise provided in

 

subsection (6), the authority shall use money in the forest

 

development fund for 1 or more of the following:

 

     (a) To provide for the payment of principal of and interest on

 

any bonds or notes issued by the authority.

 

     (b) For reforestation, forest protection, and timber stand

 

improvement.

 

     (c) To obtain and maintain certification of sustainable

 

forestry standards in the state forest under section 52505.

 

     (d) For any other purposes authorized by this part.

 

     (5) The auditor general shall audit the expenditures of the

 

forest development fund at least once every 3 years.

 

     (6) For fiscal year 2015-2016 only, $3,000,000.00 from the

 

forest development fund is transferred to the first responder

 

presumed coverage fund created under section 405 of the worker's

 

disability compensation act of 1969, 1969 PA 317, MCL 418.405.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.