HB-5631, As Passed House, June 2, 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.