HB-4475, As Passed Senate, June 12, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 4475
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 301, 503, 2106, 2133, and 72118 (MCL 324.301,
324.503, 324.2106, 324.2133, and 324.72118), section 301 as amended
by 2004 PA 587, section 503 as amended by 2012 PA 294, sections
2106 and 2133 as added by 1995 PA 60, and section 72118 as added by
2016 PA 288, and by adding subpart 17 to part 21.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 301. Except as otherwise defined in this act, as used in
this act:
(a) "Commission" means the commission of natural resources.
(b) "Department" means the director of the department of
natural resources or his or her designee to whom the director
delegates a power or duty by written instrument.
(c) "Department of natural resources" means the principal
state department created in section 501.
(d) "Director" means the director of the department of natural
resources.
(e) "Local unit of government" or "local unit" means a
municipality or county.
(f) "Michigan conservation and recreation legacy fund" means
the Michigan conservation and recreation legacy fund established in
section 40 of article IX of the state constitution of 1963 and
provided for in section 2002.
(g) "Municipality" means a city, village, or township.
(h) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(i)
"Public domain" means all land owned by the this state
or
land
deeded to the this state under state law.
(j) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
Sec. 503. (1) The department shall protect and conserve the
natural resources of this state; provide and develop facilities for
outdoor recreation; prevent the destruction of timber and other
forest growth by fire or otherwise; promote the reforesting of
forestlands belonging to this state; prevent and guard against the
pollution of lakes and streams within this state and enforce all
laws provided for that purpose with all authority granted by law;
and foster and encourage the protection and propagation of game and
fish. Before issuing an order or promulgating a rule under this act
that will designate or classify land managed by the department for
any purpose, the department shall consider, in addition to any
other matters required by law, all of the following:
(a) Providing for access to and use of the public land for
recreation and tourism.
(b) The existence of or potential for natural resources-based
industries, including forest management, mining, or oil and gas
development on the public land.
(c) The potential impact of the designation or classification
on private property in the immediate vicinity.
(2) The department has the power and jurisdiction over the
management, control, and disposition of all land under the public
domain, except for those lands under the public domain that are
managed by other state agencies to carry out their assigned duties
and responsibilities. On behalf of the people of this state, the
department may accept gifts and grants of land and other property
and may buy, sell, exchange, or condemn land and other property,
for
any of the purposes of this part. Beginning September 30, 2012,
the
department shall not acquire surface rights to land unless the
department
has estimated the amount of annual payments in lieu of
taxes
on the land, posted the estimated payments on its website for
at
least 30 days, and notified the affected local units of the
estimated
payments at least 30 days before the acquisition.
(3)
Before May 1, 2015, the department shall not acquire
surface
rights to land if the department owns, or as a result of
the
acquisition will own, the surface rights to more than 4,626,000
acres
of land.
(4)
Beginning May 1, 2015, the department shall not acquire
surface
rights to land north of the Mason-Arenac line if the
department
owns, or as a result of the acquisition will own, the
surface
rights to more than 3,910,000 acres of land north of the
Mason-Arenac
line. This subsection does not apply after the
enactment
of legislation adopting the strategic plan.
(3) If any payment under subpart 13 or 14 of part 21 or
section 51106 for land located north of the Mason-Arenac line is
not made in full and on time during a fiscal year, then, until the
end of that fiscal year, the department shall not purchase surface
rights to land located north of the Mason-Arenac line unless 1 or
both of the following apply:
(a) Full payment was made later during that fiscal year.
(b) The specific acquisition is approved by resolution adopted
by the following, as applicable:
(i) If the land is located in a single township, the township
board.
(ii) If the land is located in 2 or more townships, the county
board of commissioners of the county where the land is located.
(4) (5)
For the purposes of subsections (3)
and (4), the
number
of acres of (9),
respectively, land in which the
department
acquires or owns surface rights does not include any of the
following:
(a) Land acquired under an option agreement in effect on the
date when the payment described in subsection (3) became due if the
acquisition takes place within 120 days after the payment became
due.
(b) (a)
Land in which the department has a
conservation
easement.
(c) (b)
Land that, before July 2, 2012, was platted
under the
land division act, 1967 PA 288, MCL 560.101 to 560.293, or a
predecessor
act before July 2, 2012 if and
acquired by the
department. before
July 2, 2012.
(d) (c)
Any of the following if acquired on
or after July 2,
2012:
(i) Land with an area of not more than 80 acres, or a right-
of-way, for accessing other land owned by the department or for
accessing the waters of the state as defined in section 3101.
(ii) A Land
for a trail, subject to all of the
following:
(A) If the traveled portion of the proposed trail is located
within an abandoned railroad right-of-way, the land excluded is
limited to the abandoned railroad right-of-way.
(B) If the traveled portion of the proposed trail is located
in a utility easement, the land excluded is limited to the utility
easement.
(C) If sub-subparagraphs (A) and (B) do not apply, the land
excluded is limited to the traveled portion of the proposed trail
and
contiguous land. The For
the purposes of the exclusion, the
area of the contiguous land shall not exceed the product of 100
feet multiplied by the length of the proposed trail in feet.
(iii) Land that, on July 2, 2012 was commercial forestland as
defined in section 51101 if the land continues to be used in a
manner consistent with part 511.
(iv) Land acquired by the department by gift, including the
gift of funds specifically dedicated to land acquisition.
(v) Land acquired by the department through litigation.
(5) (6)
The department shall maintain a
record of land as
described
in subsection (5)(a) (4)(a)
to (c). (d). The
record shall
include the location, acreage, date of acquisition, and use of the
land.
The department shall post and maintain on its website all of
the
following information:
(a)
The number of acres of land, including land as described
in
subsection (5), in which the department owns surface rights
north
of the Mason-Arenac line, south of the Mason-Arenac line, in
total
for this state, and by program.
(b)
The number of acres of land, excluding land as described
in
subsection (5), in which the department owns surface rights
north
of the Mason-Arenac line, south of the Mason-Arenac line, in
total
for this state, and by program.
(6) (7)
By October 1, 2014, the department
shall develop a
written strategic plan to guide the acquisition and disposition of
state lands managed by the department, submit the plan to the
senate
and house committees with primary responsibility for natural
resources
and outdoor recreation and the corresponding
appropriation
subcommittees, relevant
legislative committees, and
post the plan on the department's website. In developing the plan,
the department shall solicit input from the public and local units
of government.
(7) (8)
The strategic plan shall do all of
the following:
(a) Divide this state into regions.
(b) Identify lands managed by the department in each region.
(c) Set forth for each region measurable strategic performance
goals with respect to all of the following for land managed by the
department:
(i) Maximizing availability of points of access to the land
and to bodies of water on or adjacent to the land.
(ii) Maximizing outdoor recreation opportunities.
(iii) Forests.
(iv) Wildlife and fisheries.
(d) To assist in achieving the goals set forth in the
strategic plan pursuant to subdivision (c), identify all of the
following:
(i) Land to be acquired.
(ii) Land to be disposed of.
(iii) Plans for natural resource management.
(e) To the extent feasible, identify public lands in each
region that are not managed by the department but affect the
achievement of the goals set forth in the strategic plan pursuant
to subdivision (c).
(f) Identify ways that the department can better coordinate
the achievement of the goals set forth in the strategic plan
pursuant to subdivision (c), recognizing that public lands are
subject to multiple uses and both motorized and nonmotorized uses.
(g) Identify critical trail connectors to enhance motorized
and nonmotorized natural-resource-dependent outdoor recreation
activities for public enjoyment.
(9)
The department shall not implement the strategic plan as
it
applies to land north of the Mason-Arenac line. This subsection
does
not apply after the enactment of legislation adopting the
strategic
plan.
(10)
The department shall annually report on the
implementation
of the plan and submit and post the report in the
manner
provided in subsection (7).
(8) (11)
Beginning July 2, 2020 The
legislature approves the
strategic plan entitled "Department of Natural Resources Managed
Public Land Strategy" issued by the department and dated July 1,
2013. The department shall implement the most recent legislatively
approved strategic plan and shall not change the plan except by a
plan update proposed pursuant to subsection (10) and subsequently
approved by the legislature.
(9) The department shall annually submit to the relevant
legislative committees and post and annually update on the
department's website all of the following:
(a) A report on the implementation of the plan.
(b) The number of acres of land in which the department owns
surface rights north of the Mason-Arenac line, south of the Mason-
Arenac line, and in total for this state.
(c) Information on the total number of each of the following:
(i) Acres of land managed by the department.
(ii) Acres of state park and state recreation area land.
(iii) Acres of state game and state waterfowl areas.
(iv) Acres of land managed by the department and open for
public hunting.
(v) Acres of state-owned mineral rights managed by the
department that are under a development lease.
(vi) Acres of state forestland.
(vii) Public boating access sites managed by the department.
(viii) Miles of motorized trails managed by the department.
(ix) Miles of nonmotorized trails managed by the department.
(10) For legislative consideration and approval, as provided
in subsection (8), by July 1, 2021, and every 6 years thereafter,
the
department shall propose an update to
the strategic plan, and
submit
and post the updated plan in the manner provided in
subsection
(7). submit the proposed
updated plan to the relevant
legislative committees, and post the proposed updated plan on the
department's website. At least 60 days before posting the proposed
updated
plan, the department shall prepare, submit , and post in
the
manner provided in subsection (7) a report on progress to the
relevant legislative committees, and post on the department's
website a report that covers all of the following and includes
department contact information for persons who wish to comment on
the report:
(a) Progress toward the goals set forth in the strategic plan
pursuant
to subsection (8)(c) in portions of this state where,
subject
to subsection (9), the plan is being implemented and any
(7)(c).
(b) Any proposed changes to the goals, including the rationale
for
the changes. The submittal and posting shall include department
contact
information for persons who wish to comment on the report.
(c) The department's engagement and collaboration with local
units of government.
(12)
At least 30 days before acquiring or disposing of land,
the
department shall submit to the senate and house committees with
primary
responsibility for natural resources and outdoor recreation
and
the corresponding appropriations subcommittees a statement
identifying
the land and describing the effect of the proposed
transaction
on achieving the goals set forth in the strategic plan
pursuant
to subsection (8)(c). The statement shall include
department
contact information for persons who wish to comment on
the
acquisition or disposition and be in a standard format. The
department
shall also post the statement on its website for at
least
30 days before the acquisition or disposition. This
subsection
does not apply before the department submits the
strategic
plan to legislative committees as required under
subsection
(7).
(11) Subject to subsection (12), if land owned by this state
and managed by the department, land owned by the federal
government, and land that is commercial forestland as defined in
section 51101 constitute 40% or more of the land in a county, the
department shall not acquire land in that county if, not more than
60 days after the department sent the notice of the proposed
acquisition to the board under section 2165, the department
receives a copy of a resolution rejecting the proposed acquisition
adopted by the following, as applicable:
(a) If the land is located in a single township, the township
board.
(b) If the land is located in 2 or more townships, the county
board of commissioners.
(12) Subsection (11) does not apply to land described in
subsection (4)(d).
(13) The department may accept funds, money, or grants for
development of salmon and steelhead trout fishing in this state
from the government of the United States, or any of its departments
or agencies, pursuant to the anadromous fish conservation act, 16
USC 757a to 757f, and may use this money in accordance with the
terms and provisions of that act. However, the acceptance and use
of federal funds does not commit state funds and does not place an
obligation upon the legislature to continue the purposes for which
the funds are made available.
(14) The department may appoint persons to serve as volunteers
for
the purpose of facilitating the responsibilities of to assist
the department in meeting its responsibilities as provided in this
part. Subject to the direction of the department, a volunteer may
use equipment and machinery necessary for the volunteer service,
including, but not limited to, equipment and machinery to improve
wildlife habitat on state game areas.
(15) The department may lease lands owned or controlled by the
department or may grant concessions on lands owned or controlled by
the department to any person for any purpose that the department
determines
to be necessary to implement this part. In granting a
concession,
the The department shall provide that each concession
is
awarded at least every grant
each concession for a term of not
more than 7 years based on extension, renegotiation, or competitive
bidding. However, if the department determines that a concession
requires a capital investment in which reasonable financing or
amortization necessitates a longer term, the department may grant a
concession for up to a 15-year term. A concession granted under
this subsection shall require, unless the department authorizes
otherwise,
that all buildings and equipment shall be removed at the
end of the concession's term. Any lease entered into under this
subsection shall limit the purposes for which the leased land is to
be used and shall authorize the department to terminate the lease
upon a finding that the land is being used for purposes other than
those permitted in the lease. Unless otherwise provided by law,
money received from a lease or a concession of tax reverted land
shall be credited to the fund providing financial support for the
management
of the leased land. Money received from a lease of all
any other land shall be credited to the fund from which the land
was purchased. However, money received from program-related leases
on these lands shall be credited to the fund providing financial
support for the management of the leased lands. For land managed by
the forest management division of the department, that fund is
either the forest development fund established pursuant to section
50507 or the forest recreation account of the Michigan conservation
and recreation legacy fund provided for in section 2005. For land
managed by the wildlife or fisheries division of the department,
that fund is the game and fish protection account of the Michigan
conservation and recreation legacy fund provided for in section
2010.
(16)
When the department sells land, the deed by which the
land
is conveyed may reserve all
mineral, coal, oil, and gas rights
to
this state only when if the land is in production or is leased
or
permitted for production, or when if the department determines
that the land has unusual or sensitive environmental features or
that it is in the best interest of this state to reserve those
rights as determined by commission policy. However, the department
shall not reserve the rights to sand, gravel, clay, or other
nonmetallic minerals. When the department sells land that contains
subsurface rights, the department shall include a deed restriction
that restricts the subsurface rights from being severed from the
surface rights in the future. If the landowner severs the
subsurface rights from the surface rights, the subsurface rights
revert to this state. The deed may reserve to this state the right
of ingress and egress over and across land along watercourses and
streams. Whenever an exchange of land is made with the United
States government, a corporation, or an individual for the purpose
of consolidating the state forest reserves, the department may
issue deeds without reserving to this state the mineral, coal, oil,
and gas rights and the rights of ingress and egress. The department
may sell the limestone, sand, gravel, or other nonmetallic
minerals. However, the department shall not sell a mineral or
nonmetallic mineral right if the sale would violate part 353, part
637, or any other provision of law. The department may sell all
reserved mineral, coal, oil, and gas rights to such lands upon
terms and conditions as the department considers proper and may
sell oil and gas rights as provided in part 610. The owner of those
lands as shown by the records shall be given priority in case the
department authorizes any sale of those lands, and, unless the
landowner waives that priority, the department shall not sell such
rights to any other person. For the purpose of this section,
mineral rights do not include rights to sand, gravel, clay, or
other nonmetallic minerals.
(17) The department may enter into contracts for the sale of
the economic share of royalty interests it holds in hydrocarbons
produced from devonian or antrim shale qualifying for the
nonconventional source production credit determined under section
45k of the internal revenue code of 1986, 26 USC 45k. However, in
entering
into these contracts, the department shall assure ensure
that revenues to the natural resources trust fund under these
contracts are not less than the revenues the natural resources
trust fund would have received if the contracts were not entered
into. The sale of the economic share of royalty interests under
this subsection may occur under contractual terms and conditions
considered appropriate by the department and as approved by the
state administrative board. Funds received from the sale of the
economic share of royalty interests under this subsection shall be
transmitted to the state treasurer for deposit in the state
treasury as follows:
(a) Net proceeds allocable to the nonconventional source
production credit determined under section 45k of the internal
revenue code of 1986, 26 USC 45k, under this subsection shall be
credited to the environmental protection fund created in section
503a.
(b) Proceeds related to the production of oil or gas from
devonian or antrim shale shall be credited to the natural resources
trust fund or other applicable fund as provided by law.
(18) As used in this section:
(a) "Concession" means an agreement between the department and
a person under terms and conditions as specified by the department
to provide services or recreational opportunities for public use.
(b) "Lease" means a conveyance by the department to a person
of a portion of this state's interest in land under specific terms
and for valuable consideration, thereby granting to the lessee the
possession of that portion conveyed during the period stipulated.
(c) "Mason-Arenac line" means the line formed by the north
boundaries of Mason, Lake, Osceola, Clare, Gladwin, and Arenac
counties.Counties.
(d) "Natural resources 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.
(e) "Net proceeds" means the total receipts received from the
sale of royalty interests under subsection (17) less costs related
to the sale. Costs may include, but are not limited to, legal,
financial advisory, geological or reserve studies, and accounting
services.
(f) "Relevant legislative committees" means the senate and
house committees with primary responsibility for natural resources
and outdoor recreation and the corresponding appropriation
subcommittees.
(g) (f)
"Strategic plan" or
"plan" means the plan developed
under
subsection (7).(6), as
updated under subsection (10), if
applicable.
Sec. 2106. (1) The department shall maintain on its website
and make available in writing to persons seeking to purchase land
from, sell land to, or exchange land with the department under this
part information about relevant requirements and procedures under
this part and section 503(11) and (12).
(2)
If the department determines that it
is in the best
interests
of the this state to exchange any of the lands mentioned
described in section 2104 for lands of an equal area or of
approximately equal value belonging to private individuals, the
department shall maintain a description of the lands to be conveyed
and a description of the lands belonging to individuals to be
deeded
to the this state.
(3) Before any of the lands are deeded to an individual as
provided
in this subpart, the person or persons owning the any
lands
to be deeded to the this state shall execute a conveyance of
those
lands to the this state.
The department shall accept
delivery
of the deed. The attorney general shall examine the title to the
lands
deeded to the this state and certify to the department
whether
or not the conveyance is sufficient to vest in the this
state a good and sufficient title to the land free from any liens
or encumbrances. If the attorney general certifies that the deed
vests
in the this state a good and sufficient title to the deeded
lands free from any liens or encumbrances, the department shall
within 30 days execute a deed to the individual of the lands to be
conveyed
by the this state. selected by the department in lieu of
the
lands.
Sec.
2133. (1) A notice of a sealed or oral bid public auction
sale
of surplus lands shall be published at least once in a
newspaper
as defined in section 1461 of the revised judicature act
of
1961, Act No. 236 of the Public Acts of 1961, being section
600.1461
of the Michigan Compiled Laws, not less than 10 days
before
the sale. The newspaper shall be published in the county
where
the surplus lands are located. If a newspaper is not
published
in the county where the surplus lands are located, the
notice
shall be published in a newspaper in a county nearest to the
county
in which the lands are located. A notice shall describe the
general
location of the surplus lands to be offered at the sale and
the
date, time, and place of the sale. Upon
request, the department
shall furnish a list of surplus lands being offered for sale at
public auction. The surplus land sale list shall include all of the
following:
(a) The date, time, and place of sale.
(b) Descriptions of surplus lands being offered.
(c) The conditions of sale.
(2)
A notice of a negotiated sale of surplus lands shall be
published
at least once in a newspaper as defined in section 1461
of
the revised judicature act of 1961 not less than 10 days before
the
department authorizes the sale. The newspaper shall be
published
in the county where the surplus lands are located. If a
newspaper
is not published in the county where the surplus lands
are
located, the notice shall be published in a newspaper in a
county
nearest to the county in which the lands are located. A
notice
shall describe the general location of the surplus lands
offered
in a negotiated sale and the date, time, and place that the
department
will meet to authorize the sale. Upon
request, the
department shall furnish a list of surplus lands being offered in a
negotiated sale. The surplus land negotiated sale list shall
include both of the following:
(a) The date, time, and place that the department will meet to
authorize the sale.
(b) Descriptions of surplus lands being offered.
SUBPART 17
NOTICE
Sec. 2165. (1) At least 30 days before disposing of,
acquiring, leasing, or developing lands that are more THAN 80 acres
in size, the department shall do all of the following:
(a) Provide notice in writing to the legislative bodies of the
local units of government where the land is located.
(b) Post the notice on its website.
(c) Publish the notice in a newspaper of general circulation
in the county where the land is located.
(2) The notice under subsection (1) shall contain all of the
following information:
(a) The acreage, the location by address or by distance and
direction from specified roads or highways, and the legal
description of the land.
(b) The proposed timing of the land transaction.
(c) The proposed use for the land.
(d) The opportunity for the legislative body of a local unit
of government where the land is located, or 5 or more residents of
or owners of land in the county where the land is located, to
request a general public meeting on the proposed transaction and
the date by which the request must be received by the department
under subsection (3).
(e) A website address where additional information on the
proposed transaction can be found.
(f) For persons who wish to comment on or ask questions about
the proposed TRANSACTION, the name, telephone NUMBER, electronic
mail ADDRESS, and mailing address of a department contact person.
(g) For the website notice, the following additional
information:
(i) For the acquisition, lease from another person, or
development of land, the fund source that will be used.
(ii) For the acquisition of land, the estimated annual
payments in lieu of taxes.
(iii) The effect the proposal is expected to have on achieving
the strategic performance goals set forth in the strategic plan
pursuant to section 503(7).
(3) If the legislative body of a local unit of government
where the land is located or 5 or more residents of or owners of
land in the county where the land is located request a general
public meeting and the department receives the necessary request or
requests within 15 days after providing notice under subsection
(1), the department shall meet with the general public in the
county where the land is located to discuss the proposed
disposition, acquisition, lease, or development. The department
shall send a representative to the meeting who is familiar with the
proposal.
(4) The department shall provide notice of a meeting under
subsection (3) by all of the following means:
(a) Written notice to the legislative body of each local unit
of government where the land is located.
(b) Written notice to each resident or owner of land that
requested the meeting under subsection (3).
(c) Posting of the notice on the department's website.
(5) The department shall provide an opportunity for
representatives of all local units of government where the land is
located to meet in person with a department representative who is
familiar with the proposed disposition, acquisition, lease, or
development to discuss the proposal.
(6) Subsections (1) to (5) do not apply to either of the
following:
(a) A lease with a term of 10 years or less.
(b) A lease limited to exploration for and production of oil
and gas.
(7) As used in this section:
(a) "Development" means development that would significantly
change or impact the current use of the land subject to
development. "Developing" has a corresponding meaning. The removal
of a berm, gate, or other human-made barrier under section 504 is
not development.
(b) "Newspaper" means that term as defined in section 1461 of
the revised judicature act of 1961, 1961 PA 236, MCL 600.1461.
Sec. 72118. (1) The department shall make a comprehensive
inventory of forest roads that are state roads. The department
shall divide the state into 5 regions and complete the inventory in
regional phases. The Upper Peninsula shall be a separate region or
regions. The department shall inventory the 2 most northerly
regions in the Lower Peninsula by December 31, 2017. The department
shall inventory the remaining regions by December 31, 2018. The
inventory shall meet both of the following requirements:
(a) Identify the location, condition, and development level of
the forest roads.
(b) Determine types of motorized and nonmotorized use
currently restricted on each forest road segment and the seasons
during which those uses are currently restricted.
(2) Beginning when the inventory for a region is completed or
required to be completed, whichever occurs first, all of the
following apply:
(a)
The forest roads within that region shall be are open
to
motorized use by the public unless designated otherwise by an order
of
the department pursuant to under section
504(7). 504. However,
beginning
on the effective date of the amendatory act that added
this
section, forest roads in the Upper
Peninsula shall be are open
to
motorized use by the public unless designated otherwise pursuant
to
section 504(7).by an order of
the department under section 504.
(b) If a timber harvest is planned for a particular area in
that region, the department shall evaluate whether the timber
harvest activity offers the opportunity to connect existing forest
roads and trails in that area.
(c) The department shall not newly restrict a road or trail in
that region from being used to access public land unless the
department has provided each local unit of government in which the
public land is located written notice that includes the reason for
the restriction. This subdivision does not apply to a restriction
imposed to protect public health or safety in an emergency
situation.
(3) The department shall annually post to its website the
total miles of forest roads open to motorized use in all
inventoried regions and a map or maps of those forest roads.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
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. 302.
(b) Senate Bill No. 303.