SB-0763, As Passed Senate, May 16, 2018

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, and 1903 (MCL 324.1901, 324.1902,

and 324.1903), section 1901 as added by 1995 PA 60, section 1902 as

amended by 2012 PA 619, and section 1903 as amended by 2011 PA 117,

and by adding section 74119a; 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) "Economic development revenue bonds (oil and gas

revenues), series 1982A, dated December 1, 1982" includes bonds

refunding these bonds, provided that any refunding bonds mature no

later than September 1, 1994.

     (c) "Local unit of 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, which authority is legally constituted to

provide public recreation.

     (d) "Michigan state parks endowment fund" means the Michigan

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

of the state constitution of 1963 and provided for in section

74119.

(e) (d) "Total expenditures" means the amounts actually

expended from the trust fund as authorized by section 1903(1) and

(2).

(f) (e) "Trust fund" means the Michigan natural resources

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

constitution of 1963 and provided for in section 1902.

     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 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.

     (c) State owned State-owned lands acquired with money

appropriated from related federal funds made available to the state

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

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

USC 777 to 777n.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) Notwithstanding subsection (1), until the trust fund

Michigan state parks endowment fund reaches an accumulated

principal of $500,000,000.00, $10,000,000.00 of $800,000,000.00,

the revenues from bonuses, rentals, delayed rentals, and royalties

described in this section, but not including 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, otherwise

dedicated to the trust fund that are received by the trust fund

state each state fiscal year shall be transferred to the state

treasurer for deposit into the Michigan state parks endowment fund.

However, until the trust fund reaches an accumulated principal of

$500,000,000.00, in any state fiscal year, not more than 50% of the

total revenues from bonuses, rentals, delayed rentals, and

royalties described in this section, but not including 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 in section 503, otherwise dedicated to the trust fund that

are received by the trust fund each state fiscal year shall be

transferred to the Michigan state parks endowment fund. To

implement this subsection, until the trust fund reaches an

accumulated principal of $500,000,000.00, the department shall

transfer 50% of the money received by the trust fund each month

pursuant to subsection (1) to the state treasurer for deposit into

the Michigan state parks endowment fund. The department shall make

this transfer on the last day of each month or as soon as

practicable thereafter. However, not more than a total of

$10,000,000.00 shall be transferred in any state fiscal year

pursuant to this subsection.

     (3) The trust fund may receive appropriations, money, or other

things of value.

     (4) 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 38.1140m.38.1141.

     (5) 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 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.

     (6) As used in this section, "Michigan state parks endowment

fund" means the Michigan state parks endowment fund established in

section 35a of article IX of the state constitution of 1963 and

provided for in section 74119.

     Sec. 1903. (1) Subject Until the Michigan state parks

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

the amount accumulated in the trust fund in any state fiscal year

shall not exceed $500,000,000.00, exclusive of interest and

earnings and amounts authorized for expenditure. This amount is the

accumulated principal limitation. The accumulated principal of the

trust fund shall not be expended. However, 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, renovation, and redevelopment 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 After the Michigan state

parks endowment fund reaches an accumulated principal of

$800,000,000.00, the accumulated principal limitation for the trust

fund as provided for in section 1903 no longer applies and the

revenues from bonuses, rentals, delayed rentals, and royalties

described in section 1902 shall be deposited into the trust fund.

From these revenues each year the legislature may provide, in

addition to the expenditure of interest and earnings authorized by

this section, that a portion, not to exceed 50%, 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).

     (b) The grant is matched by the local unit of government or

public authority with at least 25% 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 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 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.

     (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), and (iii).

     Sec. 74119a. (1) Beginning January 1, 2020, the Michigan

natural resources trust fund board established in section 1905

shall determine which local public recreation projects should be

funded with money from the endowment fund and shall submit to the

legislature in January of each year a list of those projects,

compiled in order of priority. In preparing the list under this

subsection, the Michigan natural resources trust fund board shall

do all of the following:

     (a) Give a preference to the following:

     (i) A project that is located within a local unit of

government that has adopted a resolution in support of the project.

     (ii) A project for recreational trails that intersect the

downtown areas of cities and villages.

     (b) Provide a scoring of each project individually.

     (c) Give consideration to a project that is located within a

county that contains 50% or more privately owned land.

     (2) The list of projects prepared under subsection (1) shall

be accompanied by estimates of the cost of each project and the

total costs for the projects.

     (3) The Michigan natural resources trust fund board shall

supply with the list of projects prepared under subsection (1) a

statement of the guidelines used in listing and assigning the

priority of these projects.

     (4) The legislature shall approve by law the projects to be

funded each year with money from the endowment fund.

     Enacting section 1. Section 1904 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.1904, 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.