LAND CONVEYANCE; REMOVE FIRE PROTECTION FUND S.B. 26:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 26 (as reported without amendment)
Sponsor: Senator Veronica Klinefelt
Committee: Transportation and Infrastructure
LAND CONVEYANCE; REMOVE FIRE PROTECTION FUND S.B. 26:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 26 (as reported without amendment)
Sponsor: Senator Veronica Klinefelt
Committee: Transportation and Infrastructure
CONTENT
The bill would amend Part 527 (Municipal Forests) of the Natural Resources and Environmental Protection Act to remove a requirement that any additional proceeds from municipal forestland conveyances above $18.0 million be deposited into the Fire Protection Fund.
BRIEF RATIONALE
Reportedly, the primary source of revenue for the State's Fire Protection Fund was driver responsibility fees (DRFs), fees assessed against drivers for certain infractions, such as moving violations; however, Public Acts 43 through 50 of 2018 wholly discontinued the assessment of, and phased out liability for, DRFs. As the Fund's primary source of funding has been eliminated, it has been suggested that reference to the Fund itself also be removed.
PREVIOUS LEGISLATION
(This section does not provide a comprehensive account of previous legislative efforts on this subject matter.)
The bill is a reintroduction of Senate Bill 985 from the 2023-2024 Legislative Session, which passed the Senate but received no further action in the House.
Legislative Analyst: Abby Schneider
FISCAL IMPACT
The bill would have an indeterminate fiscal impact on the State and no fiscal impact on local units of government. The bill would not change the practice of conveying State land; however, it could change the distribution of proceeds from lands conveyed for fair market value.
Currently, if 50% of the proceeds from the conveyance of land exceeds $18.0 million, the amount over $18.0 million is deposited into the Fire Protection Fund. Within the Fire Protection Fund, the first $8.5 million could be appropriated for fire protection grants to cities, villages, and townships with State-owned facilities for fire services. After $8.5 million, the amount that exceeds $8.5 million would then be credited back to the General Fund.
The bill would remove the distribution to the Fire Protection Fund and instead deposit 50% of proceeds from lands conveyed for fair market value to the General Fund. This would at most increase the General Fund by $8.5 million for scenarios where 50% of the proceeds from the conveyance of land exceed $18.0 million. These situations are uncommon and would not be part of ongoing revenue assumptions.
Date Completed: 5-13-26 Fiscal Analyst: Cory Savino, PhD
floor\sb26 Bill Analysis @ www.senate.michigan.gov/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.