Bill Text: MI HB5333 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Natural resources: forests; use of money in the forest development fund; prohibit for certain administrative costs and payments in lieu of taxes. Amends secs. 50501, 50502, 50507 & 53503 of 1994 PA 451 (MCL 324.50501 et seq.).
Spectrum: Bipartisan Bill
Status: (Passed) 2020-12-31 - Assigned Pa 287'20 With Immediate Effect [HB5333 Detail]
Download: Michigan-2019-HB5333-Engrossed.html
Substitute For
HOUSE BILL NO. 5333
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 50501, 50502, and 50507 (MCL 324.50501, 324.50502, and 324.50507), sections 50501 and 50502 as amended by 2004 PA 124 and section 50507 as amended by 2018 PA 116.
the people of the state of michigan enact:
Sec. 50501. The purpose of this part and of the
authority created by this part is to preserve existing jobs, create new jobs,
and alleviate and prevent unemployment through the retention, promotion, and
development of forestry and forest industries and to protect the health and
vigor of forest resources by doing all of the following:
(a) Funding practices
prescribed and approved by the department that intensify management of certain
highly productive portions of this state's forest system.
(b) Implementing a system
of forest management that is investment-oriented, economically efficient, and
environmentally sound.
(c) Implementing a system
of forest management that is consistent with principles of sustainable forestry
and with part 525.
(d) Promoting a stable
and continuing supply of timber for future economic expansion.
(e) Providing dependable
funding of scheduled forest management operations and practices.
(f) Promoting effective
investment of revenues from timber sales for high future returns.
(g) Facilitating timely
performance of forest management operations and practices.
(h) Earning additional
revenues for forest management from timber sales.
(i) Improving existing timber stands
and establishing Establishing new
stands of trees.
(j) Providing for
reforestation, forest protection, and timber stand improvement.
(k) Providing an additional funding source for the purposes described in this section from indebtedness secured with revenues generated from future sale of timber harvested from state tax reverted lands, from lands in the state forest system from which revenues derived from the sale of timber were previously deposited in the forest management fund created in former 1945 PA 268, and from other lands as provided by law.
Sec. 50502. As used in this part:
(a) "Authority"
means the Michigan forest finance authority created in section 50503.
(b) "Board"
means the board of directors of the Michigan forest finance authority, except
where the context clearly requires a different definition.
(c) "Bonds"
means bonds of the authority issued as provided in this part.
(d)
"Forest management operations and practices" means activities related
to the harvesting, reforestation, and other forest management, including, but
not limited to, road access for silviculture activity and forest thinning, pest
control, disease control, fertilization, forest protection, and wildlife
management, that are consistent with principles of sustainable forestry.
(e) (d) "Notes" means notes of the authority issued as provided in this part, including commercial paper.
(f) (e) "State
forester" means an employee of the department who has a 4-year degree in
forest management from an accredited college or university and experience in
forest management and who is designated as the state forester by the director.
(g) (f) "Sustainable
forestry" means that term as it is defined in section 52501.
Sec. 50507. (1) The authority shall finance only
forest management operations and practices consistent with part 525 that follow
the guidelines, rules, and objectives prescribed and approved by the department. as these
guidelines, rules, and objectives are amended by the department.
(2) Funds managed by the
authority shall be applied in a manner consistent with part 525 and the land
management planning policies of the department on lands that have been
identified for forest management practices. In the absence of an approved state
forest management plan covering a candidate area, the department shall use an interim procedure , as adopted by the department, shall be used to
ensure that all forest values have been considered in selecting sites for
investment with funds of the authority. The department shall annually submit a
list of activities and practices allocated from the funds funded from revenue generated under this part for
the board's review and determination of consistency with this part.
(3) The executive
director of the authority shall notify the department if the authority projects
a probable default on any bonds or notes issued by the authority. Within 1 year
of after receipt of the notification, or within less than 1
year , if the notification
indicates a shorter time period is necessary to avoid a default, the department
shall identify and convey to the authority sufficient timber on tax reverted
lands to enable the authority to avoid the projected default and to provide for
timely payment of principal of and interest on the authority's bonds or notes.
The authority may only issue contracts for the cutting and sale of timber that
has been conveyed to the authority under this section to avoid a default on any
bonds or notes issued by the authority. The determination of the board as to
the need to cut and sell timber is conclusive. Contracts for the cutting and
sale of timber shall be consistent with part 525 and with the guidelines,
rules, and objectives prescribed by the department.
(4) The authority shall
establish a fund designated as the "forest development fund". Revenue
as provided under section 53519 and any money on hand or received in the future
from bond proceeds and from contracts for the cutting and sale of timber on tax
reverted lands shall be deposited in the forest development fund. In addition,
this fund may receive revenues from any other source. The authority shall use
money in the forest development fund only for 1 or more of the following, subject to subsection (5):
(a) To provide for the
payment of principal of and interest on any bonds or notes issued by the
authority.
(b) For reforestation, forest protection,
and timber stand improvement.forest management operations and practices.
(c) To obtain and
maintain certification of sustainable forestry standards in the state forest
under section 52505.
(d) For the
administration and enforcement of part 535. Revenue deposited in the forest
development fund as provided under section 53519 shall be used only as provided
in this subdivision.
(e) For any other purposes authorized by this part.For the administration of the forest development
fund.
(5)
Money in the forest development fund shall not be used for payments in lieu of
taxes under section 2154.
(6)
(5) The auditor general shall audit the expenditures of
the forest development fund at least once every 3 years.
