Bill Text: MI HB5631 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Natural resources; funding; forest development fund; modify allowable uses. Amends sec. 50507 of 1994 PA 451 (MCL 324.50507).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-07-13 - Assigned Pa 248'16 With Immediate Effect [HB5631 Detail]
Download: Michigan-2015-HB5631-Engrossed.html
HB-5631, As Passed House, June 2, 2016
SUBSTITUTE FOR
HOUSE BILL NO. 5631
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 50507 (MCL 324.50507), as amended by 2004 PA
124.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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, an interim
procedure,
as adopted by the department, shall be used to assure
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 generated under this part for the board's review and
determination
of consistency with the purposes of 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.
, and within Within 1
year
of 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". 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 Except
as otherwise provided in
subsection (6), the authority shall use money in the forest
development fund for 1 or more of the following:
(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.
(c) To obtain and maintain certification of sustainable
forestry standards in the state forest under section 52505.
(d) For any other purposes authorized by this part.
(5) The auditor general shall audit the expenditures of the
forest development fund at least once every 3 years.
(6) For fiscal year 2015-2016 only, $3,000,000.00 from the
forest development fund is transferred to the first responder
presumed coverage fund created under section 405 of the worker's
disability compensation act of 1969, 1969 PA 317, MCL 418.405.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
