Bill Text: MI HB5333 | 2019-2020 | 100th Legislature | Enrolled
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-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Reps. Markkanen and Cambensy
ENROLLED HOUSE BILL No. 5333
AN ACT to amend 1994 PA 451, entitled “An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to protect the people’s right to hunt and fish; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, assessments, and donations; to provide certain appropriations; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” 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) 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) “Notes” means notes of the authority issued as provided in this part, including commercial paper.
(f)
“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)
“Sustainable
forestry” means that term as 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 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 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 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
after receipt
of the notification, or 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 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 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)
The auditor
general shall audit the expenditures of the forest development fund at least
once every 3 years.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor
