Bill Text: MI HB6080 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Natural resources; funding; Michigan natural resources trust fund and Michigan parks and recreation endowment fund; modify accumulated principal limitations and allowable expenditures. Amends secs. 1902, 1903, 1904 & 74119 of 1994 PA 451 (MCL 324.1902 et seq.). TIE BAR WITH: HJR RR'14
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-12-09 - Printed Bill Filed 12/05/2014 [HB6080 Detail]
Download: Michigan-2013-HB6080-Introduced.html
HOUSE BILL No. 6080
December 4, 2014, Introduced by Rep. LaFontaine and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 1902, 1903, 1904, and 74119 (MCL 324.1902,
324.1903, 324.1904, and 324.74119), section 1902 as amended by 2012
PA 619, section 1903 as amended by 2011 PA 117, section 1904 as
amended by 2002 PA 52, and section 74119 as amended by 2002 PA 54.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1902. (1) In accordance with section 35 of article IX of
the state constitution of 1963, the Michigan natural resources
trust fund is established in the state treasury. The trust fund
shall consist of all bonuses, rentals, delayed rentals, and
royalties collected or reserved by the state under provisions of
leases for the extraction of nonrenewable resources from state
owned lands. However, the trust fund shall not include bonuses,
rentals, delayed rentals, and royalties collected or reserved by
the state from the following sources:
(a) State owned lands acquired with money appropriated from
the former game and fish protection fund or the game and fish
protection account of the Michigan conservation and recreation
legacy fund provided for in section 2010.
(b) State owned lands acquired with money appropriated from
the subfund account created by former section 4 of former 1976 PA
204.
(c) State owned lands acquired with money appropriated from
related federal funds made available to the state under the
Pittman-Robertson wildlife restoration act, 16 USC 669 to 669k, or
the Dingell-Johnson sport fish restoration act, 16 USC 777 to 777n.
(d) Money received by the state from net proceeds allocable to
the nonconventional source production credit contained in section
45k of the internal revenue code of 1986, 26 USC 45k, as provided
for in section 503.
(2)
Notwithstanding subsection (1), until the trust fund
reaches
an accumulated principal of $500,000,000.00, $10,000,000.00
of
the revenues from bonuses, rentals, delayed rentals, and
royalties
described in this section, but not including money
received
by the state from net proceeds allocable to the
nonconventional
source production credit contained in section 45k
of
the internal revenue code of 1986, 26 USC 45k, as provided for
in
section 503, otherwise dedicated to the trust fund that are
received
by the trust fund each state fiscal year shall be
transferred
to the state treasurer for deposit into the Michigan
state
parks endowment fund. However, until the trust fund reaches
an
accumulated principal of $500,000,000.00, in any state fiscal
year,
not more than 50% of the total revenues from bonuses,
rentals,
delayed rentals, and royalties described in this section,
but
not including net proceeds allocable to the nonconventional
source
production credit contained in section 45k of the internal
revenue
code of 1986, 26 USC 45k, as provided in section 503,
otherwise
dedicated to the trust fund that are received by the
trust
fund each state fiscal year shall be transferred to the
Michigan
state parks endowment fund. To implement this subsection,
until
the trust fund reaches an accumulated principal of
$500,000,000.00,
the department shall transfer 50% of the money
received
by the trust fund each month pursuant to subsection (1) to
the
state treasurer for deposit into the Michigan state parks
endowment
fund. The department shall make this transfer on the last
day
of each month or as soon as practicable thereafter. However,
not
more than a total of $10,000,000.00 shall be transferred in any
state
fiscal year pursuant to this subsection.
(2) (3)
The trust fund may receive
appropriations, money, or
other things of value.
(3) (4)
The state treasurer shall direct
the investment of the
trust fund. The state treasurer shall have the same authority to
invest the assets of the trust fund as is granted to an investment
fiduciary under the public employee retirement system investment
act, 1965 PA 314, MCL 38.1132 to 38.1140m.
(4) (5)
The department shall annually
prepare a report
containing an accounting of revenues and expenditures from the
trust fund. This report shall identify the interest and earnings of
the trust fund from the previous year, the investment performance
of the trust fund during the previous year, and the total amount of
appropriations from the trust fund during the previous year. This
report shall be provided to the senate and house of representatives
appropriations committees and the standing committees of the senate
and house of representatives with jurisdiction over issues
pertaining to natural resources and the environment.
(5) (6)
As used in this section,
"Michigan state parks
endowment fund" means the Michigan state parks endowment fund
established in section 35a of article IX of the state constitution
of 1963 and provided for in section 74119.
Sec. 1903. (1) Subject to the limitations of this part and of
section 35 of article IX of the state constitution of 1963, the
interest and earnings of the trust fund in any 1 state fiscal year
may be expended in subsequent state fiscal years only for the
following purposes:
(a) The acquisition of land or rights in land for recreational
uses or protection of the land because of its environmental
importance or its scenic beauty.
(b) The development of public recreation facilities.
(c) The administration of the fund, including payments in lieu
of taxes on state-owned land purchased through the trust fund. The
legislature shall make appropriations from the trust fund each
state fiscal year to make full payments in lieu of taxes on state-
owned land purchased through the trust fund, as provided in section
2154.
(2) In addition to the money described in subsection (1), 33-
1/3% of the money, exclusive of interest and earnings, received by
the trust fund in any state fiscal year may be expended in
subsequent state fiscal years for the purposes described in
subsection (1). However, the authorization for the expenditure of
money provided in this subsection does not apply after the state
fiscal year in which the total amount of money in the trust fund,
exclusive of interest and earnings and amounts authorized for
expenditure under this section, exceeds $500,000,000.00.
(3) An expenditure from the trust fund may be made in the form
of a grant to a local unit of government or public authority,
subject to all of the following conditions:
(a) The grant is used for the purposes described in subsection
(1).
(b) The grant is matched by the local unit of government or
public authority with at least 25% of the total cost of the
project.
(4) Not less than 25% of the total amounts made available for
expenditure from the trust fund from any state fiscal year shall be
expended
for acquisition of land and rights in land, and not more
less than 25% of the total amounts made available for expenditure
from the trust fund from any state fiscal year shall be expended
for development of public recreation facilities.
(5) If property that was acquired with money from the trust
fund is subsequently sold or transferred by the state to a
nongovernmental entity, the state shall forward to the state
treasurer for deposit into the trust fund an amount of money equal
to the following:
(a) If the property was acquired solely with trust fund money,
the greatest of the following:
(i) The net proceeds of the sale.
(ii) The fair market value of the property at the time of the
sale or transfer.
(iii) The amount of money that was expended from the trust fund
to acquire the property.
(b) If the property was acquired with a combination of trust
fund money and other restricted funding sources governed by federal
or state law, an amount equal to the percentage of the funds
contributed by the trust fund for the acquisition of the property
multiplied by the greatest of the amounts under subdivision (a)(i),
(ii), and (iii).
Sec. 1904. The amount accumulated in the trust fund shall not
exceed $500,000,000.00, as this amount is annually adjusted
pursuant to the most comprehensive index of consumer prices
available for the Detroit area from the United States department of
labor, bureau of statistics or successor agency, exclusive of
interest and earnings and amounts authorized for expenditure under
this part. Any amount of money that would be a part of the trust
fund but for the limitation stated in this section shall be
deposited
in the Michigan state parks and
recreation endowment fund
created
in section 74119. , until the Michigan state parks
endowment
fund reaches an accumulated principal of $800,000,000.00.
After
the Michigan state parks endowment fund reaches an
accumulated
principal of $800,000,000.00, any money that would be
part
of the Michigan state parks endowment fund but for this
limitation
shall be distributed as provided by law.
Sec. 74119. (1) In accordance with section 35a of article IX
of
the state constitution of 1963, the Michigan state parks and
recreation endowment fund is created within the state treasury. The
Michigan
state parks and recreation
endowment fund may be referred
to
as the Genevieve Gillette state parks and recreation endowment
fund.
(2) The state treasurer may receive money or other assets from
any source for deposit into the endowment fund. The state treasurer
shall direct the investment of the endowment fund. The state
treasurer shall have the same authority to invest the assets of the
endowment fund as is granted to an investment fiduciary under the
public employee retirement system investment act, 1965 PA 314, MCL
38.1132 to 38.1140l. The state treasurer shall credit to the
endowment fund interest and earnings from endowment fund
investments.
(3) Money in the endowment fund at the close of the fiscal
year shall remain in the endowment fund and shall not lapse to the
general fund.
(4)
The accumulated principal of the endowment fund shall not
exceed
$800,000,000.00, which amount shall be annually adjusted
pursuant
to the Detroit consumer price index—all items beginning
when
the endowment fund reaches $800,000,000.00. This annually
adjusted
figure is the accumulated principal limit of the endowment
fund.
(5)
Money in the endowment fund shall be expended for
operations,
maintenance, and capital improvements at Michigan state
parks
and for the acquisition of land or rights in land for
Michigan
state parks.
(4) (6)
Money in the endowment fund shall
be expended as
follows:
(a)
Until the endowment fund reaches an accumulated principal
of
$800,000,000.00, each state fiscal year the legislature may
appropriate
not more than 50% of the money received under section
35
of article IX of the state constitution of 1963 plus interest
and
earnings and any private contributions or other revenue to the
endowment
fund.
(b)
Once the accumulated principal in the endowment fund
reaches
$800,000,000.00, only the interest and earnings of the
endowment
fund in excess of the amount necessary to maintain the
endowment
fund's accumulated principal limit shall be expended.
(a) Not more than 50% for operations, maintenance, capital
improvements, and acquisition of land for Michigan state parks.
(b) Not more than 25% for infrastructure renovation and
capital improvements on publicly owned recreation land.
(c) Not more than 25% shall be reinvested in the corpus of the
endowment fund.
(5) (7)
Unexpended appropriations of the
endowment fund from
any state fiscal year as authorized by this section may be carried
forward or may be appropriated as determined by the legislature for
purposes of this section.
(6) (8)
The department shall annually
prepare a report
containing an accounting of revenues and expenditures from the
endowment fund. This report shall identify the interest and
earnings of the endowment fund from the previous year, the
investment performance of the endowment fund during the previous
year, and the total amount of appropriations from the endowment
fund during the previous year. This report shall be provided to the
senate and house of representatives appropriations committees and
the standing committees of the senate and house of representatives
with jurisdiction over issues pertaining to natural resources and
the environment.
Enacting section 1. This amendatory act does not take effect
unless Senate Joint Resolution ____ or House Joint Resolution RR____
(request no. 05446'14) of the 97th Legislature becomes a part of
the state constitution of 1963 as provided in section 1 of article
XII of the state constitution of 1963.
