SB-0763, As Passed House, December 21, 2018

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 763

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 1901, 1902, 1903, 1904, 1907, 1907a, and 1911

(MCL 324.1901, 324.1902, 324.1903, 324.1904, 324.1907, 324.1907a,

and 324.1911), sections 1901 and 1903 as amended by 2018 PA 238,

sections 1902 and 1907 as amended by 2018 PA 166, section 1904 as

amended by 2002 PA 52, section 1907a as amended by 2012 PA 619, and

section 1911 as added by 2010 PA 32; and to repeal acts and parts

of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1901. As used in this part:

(a) "Board" means the Michigan natural resources trust fund

board established in section 1905.

(b) "Local unit of ~~government" or "local unit"~~ government or

public authority" means a county, city, township, village, school

district, the Huron-Clinton metropolitan authority, or any

authority composed of counties, cities, townships, villages, or

school districts, or any combination ~~thereof,~~ of these entities,

and legally constituted to provide public recreation.

state parks endowment fund established in section 35a of article IX

of the state constitution of 1963 and provided for in section

74119.

(d) ~~(c)~~ "Trust fund" means the Michigan natural resources

trust fund established in section 35 of article IX of the state

constitution of 1963.

Sec. 1902. (1) In accordance with section 35 of article IX of

the state constitution of 1963, the Michigan natural resources

trust fund is established in the state treasury. ~~The~~ Subject to

section 1904, 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~~ state-owned lands. However, the trust

fund shall not include bonuses, rentals, delayed rentals, and

royalties collected or reserved by the state from the following

sources:

(a) ~~State owned~~ State-owned lands acquired with money

appropriated from the former game and fish protection fund or the

game and fish protection account of the Michigan conservation and

recreation legacy fund provided for in section 2010.

(b) ~~State owned~~ State-owned lands acquired with money

appropriated from the subfund account created by former section 4

of former 1976 PA 204.

appropriated from related federal funds made available to the state

under the Pittman-Robertson wildlife restoration act, 16 USC 669 to

669i, or the Dingell-Johnson sport fish restoration act, 16 USC 777

to 777m.

(d) Money received by the state from net proceeds allocable to

the nonconventional source production credit contained in section

45k of the internal revenue code of 1986, 26 USC 45k, as provided

for in section 503.

(2) ~~The~~ In addition to the revenues described in subsection

(1), the trust fund may receive appropriations, money, or other

things of value.

(3) The state treasurer shall direct the investment of the

trust fund. The state treasurer shall have the same authority to

invest the assets of the trust fund as is granted to an investment

fiduciary under the public employee retirement system investment

act, 1965 PA 314, MCL 38.1132 to 38.1141.

(4) The department shall annually prepare a report containing

an accounting of revenues and expenditures from the trust fund.

This report shall identify the interest and earnings of the trust

fund from the previous year, the cumulative total amount of

unexpended interest and earnings held by the trust fund, the

investment performance of the trust fund during the previous year,

and the total amount of appropriations from the trust fund during

the previous year. This report shall be provided to the senate and

house of representatives appropriations committees and the standing

committees of the senate and house of representatives with

jurisdiction over issues pertaining to natural resources and the

environment.

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~~ 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~~ Development, renovation, and redevelopment

of public recreation facilities.

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) 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).

(b) The grant is matched by the local unit or public authority

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

(3) Not less than 25% of the ~~total amounts~~ money 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% of the ~~total amounts~~ money 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.

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

fund is subsequently sold or transferred by this state to a

nongovernmental entity, this 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), and (iii).

(5) This part is subject to section 2132a.

Sec. 1904. ~~The~~ Until the Michigan state parks endowment fund

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

accumulated in the trust fund shall not exceed $500,000,000.00,

exclusive of interest and earnings and amounts authorized for

expenditure under this part. Any amount of money that would be a

part of the trust fund but for the limitation stated in this

section shall be deposited in the Michigan state parks endowment

fund created in section 74119, until the Michigan state parks

endowment fund reaches an accumulated principal of $800,000,000.00.

After the Michigan state parks endowment fund reaches an

accumulated principal of $800,000,000.00, ~~any money that would be~~

~~part of the Michigan state parks endowment fund but for this~~

~~limitation shall be distributed as provided by law.~~the accumulated

principal limit for the trust fund provided in this section no

longer applies and the revenues from bonuses, rentals, delayed

rentals, and royalties described in section 1902 shall be deposited

into the trust fund for expenditure as provided in this part.

Sec. 1907. (1) The board shall determine which lands and

rights in land within this state should be acquired for

recreational uses or protection of land because of its

environmental importance or its scenic beauty and which public

recreation facilities should be developed, renovated, and

redeveloped with money from the trust fund and shall submit to the

legislature in January of each year a list of those lands and

rights in land and those public recreation facilities that the

board has determined should be acquired or developed, renovated,

and redeveloped with trust fund money, compiled in order of

priority. The list prepared under this subsection shall be based

upon the accounting of revenues available for expenditure as

described in the report prepared under section 1902(4) and upon

consideration of any consensus recommendation submitted under

subsection (2) that is consistent with section 35 of article 9 of

the state constitution of 1963.

(2) By December 1 of each year, the governor or his or her

designee, the state treasurer or his or her designee, the senate

majority leader or his or her designee, and the speaker of the

house of representatives or his or her designee, and 1 member of

the board selected by the board, shall meet and develop a consensus

recommendation to be submitted to the board on the amount of money

that should be made available to fund each of the following:

(a) Acquisitions under section 1903(1)(a).

(b) Development, renovation, and redevelopment projects under

section 1903(1)(b).

(d) If there is additional money available after funding

recommendations are made for subdivisions (a), (b), and (c), an

amount that should be retained by the trust fund to mitigate

potential future investment return fluctuations.

(3) In preparing the list under subsection (1), the board

shall do all of the following:

(a) Give a preference to the following:

(i) A project or acquisition that is located within a ~~local~~

~~unit of government~~ city, village, township, or county that has

adopted a resolution in support of the project or acquisition.

(ii) The acquisition of land and rights in land for

recreational trails that intersect the downtown areas of cities and

villages.

(b) Identify each parcel of land that is recommended for

acquisition by legal description and include the estimated cost of

acquisition and assessed value.

acquisition individually.

(d) Give consideration to an acquisition that meets either or

both of the following:

(i) Is located within a county that contains 50% or more

privately owned land.

(ii) Allows motorized recreational use.

(4) In preparing the list of lands to be acquired or developed

under subsection (1), the following apply:

(a) The board shall not include an acquisition of land or

rights in land on the list if the board determines that the seller

was harassed, intimidated, or coerced into selling his or her land

or rights in land by the department, a local unit of government, or

a qualified conservation organization.

(b) A project or acquisition may be named in honor or memory

of an individual or organization.

(5) The list prepared under subsection (1) shall be

accompanied by estimates of total costs for the proposed

acquisitions and developments.

(6) The board shall supply with the ~~list~~ lists prepared under

subsection (1) a statement of the guidelines used in listing and

assigning the priority of these proposed acquisitions and

developments, renovations, and redevelopments.

(7) The legislature shall approve by law the lands and rights

in land to be acquired and the public recreation facilities to be

~~acquired or~~ developed, renovated, or redeveloped each year with

money from the trust fund.

(8) As used in this section, "qualified conservation

organization" means that term as it is defined in section 7o of the

general property tax act, 1893 PA 206, MCL 211.7o.

Sec. 1907a. (1) If within 2 years after a parcel of property

that is approved for acquisition or development, renovation, or

redevelopment by the legislature has not been acquired or

developed, renovated, or redeveloped in the manner determined by

the board and is not open for public use, the board shall report to

the standing committees of the senate and the house of

representatives with jurisdiction over issues related to natural

resources and the environment on the status of the project and the

reason why the property has not been purchased or developed,

renovated, or redeveloped in the manner determined by the board.

The department shall post on its website a bimonthly report of

project status containing information described in this subsection.

(2) Following the appropriation of money from the trust fund,

if the public recreation project changes significantly, the board

shall submit the changes to the joint capital outlay subcommittee

of the legislature to review whether the proposed changed project

is consistent with the purpose of the appropriation. As used in

this subsection, "changes significantly" means changes to a project

such that the project would not have been funded had the change

been in place during the evaluation of the project.

Sec. 1911. (1) The local public recreation facilities fund is

created within the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the local public recreation facilities

fund. The state treasurer shall direct the investment of the local

public recreation facilities fund. The state treasurer shall credit

to the local public recreation facilities fund interest and

earnings from local public recreation facilities fund investments.

(3) Money in the local public recreation facilities fund at

the close of the fiscal year shall remain in the local public

recreation facilities fund and shall not lapse to the general fund.

(4) The department of natural resources shall be the

administrator of the local public recreation facilities fund for

auditing purposes.

(5) The department of natural resources shall expend money

from the local public recreation facilities fund, upon

appropriation, only for grants to local units of government for the

development, renovation, and redevelopment of public recreation

facilities pursuant to the same procedures of the board and

guidelines as apply under section 1907.

Enacting section 1. Section 1908 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.1908, is

repealed.

Enacting section 2. This amendatory act does not take effect

unless all of the following bills of the 99th Legislature are

enacted into law:

(a) Senate Bill No. 931.

(b) Senate Bill No. 932.

Enacting section 3. This amendatory act does not take effect

unless Senate Joint Resolution O of the 99th Legislature becomes a

part of the state constitution of 1963 as provided in section 1 of

article XII of the state constitution of 1963.