January 24, 2018, Introduced by Senator CASPERSON and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 1901, 1902, 1903, and 74119 (MCL 324.1901,
324.1902, 324.1903, and 324.74119), section 1901 as added by 1995
PA 60, section 1902 as amended by 2012 PA 619, section 1903 as
amended by 2011 PA 117, and section 74119 as amended by 2002 PA 54,
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" 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 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 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 lands acquired with money appropriated from
the subfund account created by former section 4 of former 1976 PA
204.
(c) 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, or
the Dingell-Johnson sport fish restoration act, 16 USC 777 to 777n.
(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 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 of public recreation facilities including
the renovation and redevelopment of public recreation facilities
that have reached their projected depreciated life expectancy.
(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 After the Michigan
state parks endowment fund reaches
an accumulated principal of $800,000,000.00, in addition to the
money
described in subsection (1), 33-1/3% 50% 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).
(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, 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 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. 74119. (1) In accordance with section 35a of article IX
of the state constitution of 1963, the Michigan state parks
endowment fund is created within the state treasury. The Michigan
state parks endowment fund may be referred to as the Genevieve
Gillette state parks endowment fund.
(2) The state treasurer may receive money or other assets from
any source for deposit into the endowment fund. The state treasurer
shall direct the investment of the endowment fund. The state
treasurer shall have the same authority to invest the assets of the
endowment fund as is granted to an investment fiduciary under the
public employee retirement system investment act, 1965 PA 314, MCL
38.1132
to 38.1140l. 38.1141. The
state treasurer shall credit to
the endowment fund interest and earnings from endowment fund
investments.
(3) Money in the endowment fund at the close of the fiscal
year shall remain in the endowment fund and shall not lapse to the
general fund.
(4) The accumulated principal of the endowment fund shall not
exceed $800,000,000.00, which amount shall be annually adjusted
pursuant to the Detroit consumer price index—all items beginning
when the endowment fund reaches $800,000,000.00. This annually
adjusted figure is the accumulated principal limit of the endowment
fund.
(5)
Money Subject to
subsection (6), money in the endowment
fund
shall be expended for operations, the following:
(a) Operations, maintenance, and capital improvements at
Michigan state parks and for the acquisition of land or rights in
land for Michigan state parks.
(b) Local public recreation projects including 1 or more of
the following:
(i) The development, redevelopment, and renovation of
motorized and nonmotorized trails and related infrastructure.
(ii) The control and prevention of aquatic invasive species.
(iii) The development, redevelopment, and renovation of local
public recreation facilities.
(c) The administration of the endorsement fund.
(6) Not more than 25% of the expenditures from the endowment
fund for local public recreation projects shall be for the control
and prevention of aquatic invasive species.
(7) (6)
Money in the endowment fund shall
be expended as
follows:
(a) Until the endowment fund reaches an accumulated principal
of
$800,000,000.00, each state fiscal year the legislature may
appropriate
not more than 50% of shall
allocate the money received
under section 35 of article IX of the state constitution of 1963
plus interest and earnings and any private contributions or other
revenue
to the endowment fund .as
follows:
(i) Twenty-five percent shall be retained by the endowment
fund and credited to the accumulated principal of the endowment
fund.
(ii) Not less than 50% shall be made available for expenditure
for operations, maintenance, and capital improvements at Michigan
state parks and the acquisition of land and rights in land for
Michigan state parks.
(iii) Not less than 20% shall be made available for
expenditure for local public development projects authorized by
this section.
(b) Once the accumulated principal in the endowment fund
reaches $800,000,000.00, only the interest and earnings of the
endowment fund in excess of the amount necessary to maintain the
endowment
fund's accumulated principal limit shall be expended .for
the following:
(i) Operations, maintenance, and capital improvements at
Michigan state parks.
(ii) The administration of the endowment fund.
(8) (7)
Unexpended appropriations of the
endowment fund from
any state fiscal year as authorized by this section may be carried
forward or may be appropriated as determined by the legislature for
purposes of this section.
(9) An expenditure from the endowment 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 a local public recreation project
described in subsection (5)(b).
(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.
(10) (8)
The department shall annually
prepare a report
containing an accounting of revenues and expenditures from the
endowment fund. This report shall identify the interest and
earnings of the endowment fund from the previous year, the
investment performance of the endowment fund during the previous
year, and the total amount of appropriations from the endowment
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. 74119a. (1) The Michigan natural resources trust fund
board established in section 1905 shall determine which 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) Identify each parcel of land that is recommended for
acquisition by legal description and include the estimated cost of
acquisition and assessed value.
(c) Provide a scoring of each project individually.
(d) Give consideration to a project 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.
(2) In preparing the list of projects under subsection (1),
the following apply:
(a) The Michigan natural resources trust fund board shall not
include an acquisition of land on the list if the board determines
that the seller was harassed, intimidated, or coerced into selling
his or her 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.
(3) 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.
(4) 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.
(5) The legislature shall approve by law the projects to be
funded each year with money from the endowment fund.
(6) 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.
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 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.