Bill Text: MI HB5725 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Property; conveyances; conveyance of surplus state-owned real estate; enact procedures for conveyance. Amends sec. 251 of 1984 PA 431 (MCL 18.1251) & adds sec. 257.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-12-04 - Postponed Temporarily [HB5725 Detail]

Download: Michigan-2013-HB5725-Introduced.html

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HOUSE BILL No. 5725

 

August 27, 2014, Introduced by Rep. Haveman and referred to the Committee on Appropriations.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 251 (MCL 18.1251), as amended by 1999 PA 8, and

 

by adding section 257.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 251. (1) This section applies to all real property of the

 

this state except all of the following:

 

     (a) Property under the jurisdiction of the state

 

transportation department.

 

     (b) Property under the jurisdiction of a state an institution

 

of higher education.

 

     (c) Property under the jurisdiction of the department of

 

natural resources.

 

     (d) Property under the jurisdiction of the department of

 

military and veterans affairs.

 

     (2) The department shall provide for the development and

 

maintenance of real property records and facility inventories. The

 

department may award appropriate service contracts or employ land

 

surveyors to survey, monument, map, describe, and record real

 

property and facilities.

 

     (3) The department shall issue directives to provide for the

 

disposition process for facilities and lands that are considered

 

surplus. The department shall require a public notice component in

 

its directives regarding the disposition process under this

 

subsection.

 

     Sec. 257. (1) The department, on behalf of this state, may

 

convey by quitclaim deed or affidavit of jurisdictional transfer

 

all or portions of state-owned property designated as surplus real

 

property by the state agency with jurisdiction over the property if

 

both of the following apply:

 

     (a) The property is designated as surplus real property by the

 

director of the state agency in writing to the director.

 

     (b) The property is not needed to meet a state objective as

 

determined by the director.

 

     (2) The department shall not convey property under this

 

section unless the conveyance and the terms of the conveyance have

 

been approved by the board.

 

     (3) The state agency with jurisdiction over surplus real

 

property conveyed under this section is responsible for all

 

expenses of maintaining the property until the time of conveyance.

 

     (4) Surplus real property conveyed under this section must be

 

identified by a legal description approved or prepared by the state

 

surveyor for use in a state quitclaim deed.

 

     (5) A deed or affidavit of jurisdictional transfer authorized

 

by this section must be approved as to legal form by the department

 

of attorney general.

 

     (6) Surplus real property conveyed under this section includes

 

all surplus, salvage, and personal property or equipment remaining

 

on the property on the date of the conveyance.

 

     (7) The fair market value of surplus real property conveyed

 

under this section must be determined as needed to facilitate a

 

fair market value conveyance by an independent fee appraisal

 

prepared for the department, or by an appraiser who is an employee

 

or contractor of this state.

 

     (8) The department may take the necessary steps to convey

 

surplus real property under this section using any of the following

 

means:

 

     (a) Any publicly disclosed competitive method of sale,

 

selected to realize the fair market value to this state, as

 

determined by the department.

 

     (b) Offering the property for sale for fair market value to 1

 

or more units of local government.

 

     (c) Conveying the property to the land bank fast track

 

authority created under section 15 of the land bank fast track act,

 

2003 PA 258, MCL 124.765.

 

     (d) Transferring the property, with or without consideration,

 

through jurisdictional transfer to another state agency. If

 

property is transferred under this subdivision, the transfer shall

 

be made by an affidavit of jurisdictional transfer in recordable

 

form rather than a quitclaim deed.

 

     (e) Trading some or all of the property for other real

 

property if the other real property is determined by the department

 

to be of reasonably equal value to this state.

 

     (f) Offering the property for sale for less than fair market

 

value to the units of local government in which the property is

 

located, subject to the following conditions:

 

     (i) The department may provide notice to each of the units of

 

local government of the property's availability. The department

 

shall give the first opportunity to purchase the property to the

 

first unit of local government to make an offer by registered mail

 

to purchase the property. If an offer is accepted by the

 

department, the unit of local government shall enter into a

 

purchase agreement within 60 days after making the offer and

 

complete the conveyance within 180 days after making the offer. The

 

department may extend the time to complete the conveyance as

 

needed. If there are competing offers from units of local

 

government, the department shall determine which unit should

 

receive the property based on the best interests of this state.

 

     (ii) The property must be used exclusively for public use for

 

30 years after the conveyance. If a fee, term, or condition is

 

imposed on members of the public for use of the property, or if

 

such a fee, term, or condition is waived, all members of the public

 

must be subject to the same fees, terms, conditions, and waivers.

 

The public use restriction must be included in the deed.

 

     (iii) If, within 30 years after the conveyance, the unit of

 

local government intends to convey the property, the unit of local

 

government must provide notice to the department of its desire to

 

convey the property back to this state at the original sale price.

 

If this state reacquires the property, this state is not liable to

 

any person for improvements to or liens placed on the property. If

 

this state declines to reacquire the property, the unit of local

 

government must retain the property.

 

     (iv) If the unit of local government retains the property for

 

30 years after the conveyance, the public use restrictions under

 

subparagraphs (ii) and (iii) automatically terminate.

 

     (v) The department may require the unit of local government to

 

reimburse this state at closing for costs demonstrably incurred by

 

this state that were necessary to prepare the property for

 

conveyance.

 

     (9) The department may require a grantee of property conveyed

 

under this section to record the instrument of conveyance or

 

jurisdictional transfer with the appropriate register of deeds and

 

provide the department with a recorded copy of the recorded

 

instrument.

 

     (10) The department shall deposit the net revenue received

 

from the sale of property under this section in the state treasury.

 

The state treasurer shall credit the money deposited to the general

 

fund.

 

     (11) This section applies to the conveyance of all real

 

property of this state except property under the jurisdiction of

 

any of the following:

 

     (a) The state transportation department.

 

     (b) An institution of higher education.

 

     (c) The department of natural resources.

 

     (d) The department of military and veterans affairs.

 

     (12) This section applies to all jurisdictional transfers

 

between state departments and institutions, including those

 

exempted under subsection (11).

 

     (13) This state shall not reserve oil, gas, or mineral rights

 

to property conveyed under this section. However, the conveyance

 

authorized under this section must provide that, if the grantee or

 

any successor develops any oil, gas, or minerals found on, within,

 

or under the conveyed property, the grantee or any successor shall

 

pay this state 1/2 of the gross revenue generated from the

 

development of the oil, gas, or minerals. A payment under this

 

section must be deposited in the general fund.

 

     (14) A conveyance under this section must reserve to this

 

state all aboriginal antiquities, including mounds, earthworks,

 

forts, burial and village sites, mines, or other relics lying on,

 

within, or under the property, with power to this state and all

 

others acting under its authority to enter the property for any

 

purpose related to exploring, excavating, and taking away the

 

aboriginal antiquities.

 

     (15) If property conveyed under this section was used by this

 

state as a historical monument, memorial, park, or protected

 

wildlife habitat area, the grantee or any successor shall maintain

 

and protect the property for that purpose in perpetuity in

 

accordance with applicable law.

 

     (16) If property conveyed under this section is used in a

 

manner that violates any of the restrictions imposed under

 

subsection (8)(f), (13), (14), or (15), this state may reenter and

 

take the property, terminating the grantee's or any successor's

 

estate in the property. An action to regain possession of the

 

property under this section may be brought and maintained by the

 

attorney general on behalf of this state.

 

     (17) If this state reenters and repossesses property under

 

subsection (16), this state is not liable to reimburse any person

 

for any improvements made on the property or to compensate any

 

person for any part of an unfulfilled contract or license issued to

 

provide goods or services on or for the property.

 

     (18) As used in this section:

 

     (a) "Fair market value" means the highest estimated price that

 

the property will bring if offered for sale on the open market,

 

allowing a reasonable time to find a purchaser who would buy with

 

knowledge of the property's possible uses.

 

     (b) "Net revenue" means the proceeds from the sale of the

 

property less reimbursement for any costs to the department

 

associated with the sale, including, but not limited to,

 

administrative costs, including employee wages, salaries, and

 

benefits; costs of reports and studies and other materials

 

necessary to the preparation of sale; environmental remediation;

 

legal fees; and any litigation costs related to the conveyance.

 

     (c) "Public use" means actual use of the property by members

 

of the public or actual use by the unit of local government for any

 

of the following:

 

     (i) Publicly owned and operated correctional facilities.

 

     (ii) Law enforcement purposes.

 

     (iii) Emergency management response purposes.

 

     (iv) Public educational use.

 

     (v) Public transportation.

 

     (vi) Public parks and recreational areas.

 

     (vii) Public health uses.

 

     (viii) Wildlife conservation or restoration.

 

     (d) "Public use" does not include use by a for-profit

 

enterprise or any use that is closed to the public.