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

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Bill Title: Natural resources; gas and oil; revenue from oil and gas leases on state property; dedicate portion to construction and maintenance of local roads and streets. Amends sec. 31, art. IV & secs. 35 & 35a, art. IX of the state constitution.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2014-04-17 - Printed Joint Resolution Filed 03/28/2014 [HJREE Detail]

Download: Michigan-2013-HJREE-Introduced.html

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HOUSE JOINT RESOLUTION EE

 

March 27, 2014, Introduced by Reps. McMillin, Kelly and Genetski and referred to the Committee on Natural Resources.

 

     A joint resolution proposing an amendment to the state

 

constitution of 1963, by amending section 31 of article IV and

 

sections 35 and 35a of article IX, to require certain general fund

 

appropriations to the state transportation department, to create a

 

transportation fund, to allocate revenue from certain leases for

 

the extraction of nonrenewable resources on state owned land to the

 

transportation fund and the Michigan natural resources trust fund,

 

and to dissolve the state parks endowment fund.

 

     Resolved by the Senate and House of Representatives of the

 

state of Michigan, That the following amendment to the state

 

constitution of 1963, to require certain general fund

 

appropriations to the state transportation department, to create a

 

transportation fund, to allocate revenue from certain leases for

 

the extraction of nonrenewable resources on state owned land to the

 

transportation fund and the Michigan natural resources trust fund,

 

and to dissolve the state parks endowment fund, is proposed, agreed

 

to, and submitted to the people of the state:

 

ARTICLE IV

 

     Sec. 31. The general appropriation bills for the succeeding

 

fiscal period covering items set forth in the budget shall be

 

passed or rejected in either house of the legislature before that

 

house passes any appropriation bill for items not in the budget

 

except bills supplementing appropriations for the current fiscal

 

year's operation. Any bill requiring an appropriation to carry out

 

its purpose shall be considered an appropriation bill. One of the

 

general appropriation bills as passed by the legislature shall

 

contain an itemized statement of estimated revenue by major source

 

in each operating fund for the ensuing fiscal period, the total of

 

which shall not be less than the total of all appropriations made

 

from each fund in the general appropriation bills as passed.

 

     The legislature shall not appropriate from any fund, other

 

than the local transportation fund established by section 35a of

 

article IX, less money for the construction, maintenance, repair,

 

and improvement of county roads and city and village streets in any

 

fiscal year than was appropriated from that fund in the preceding

 

fiscal year unless the appropriation is approved by three-fifths of

 

the members elected to and serving in each house. Appropriations

 

exclusively for the construction, maintenance, repair, and

 

improvement of county roads and city and village streets are not

 

subject to disapproval or reduction by the governor under section

 

19 or 20 of article V.

 

ARTICLE IX

 

     Sec. 35. There is hereby established the Michigan natural

 

resources trust fund. The trust fund shall consist receive 20% of

 

all bonuses, rentals, delayed rentals, and royalties collected or

 

reserved by the state on or after the effective date of the 2014

 

amendment that amended this section under provisions of leases for

 

the extraction of nonrenewable resources from state owned lands,

 

except such revenues accruing under leases of state owned lands

 

acquired with money from state or federal game and fish protection

 

funds or revenues accruing from lands purchased with such revenues.

 

The trust fund may receive appropriations, money, or other things

 

of value. The assets of the trust fund shall be invested as

 

provided by law.

 

     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

 

otherwise dedicated to the trust fund that are received by the

 

state each state fiscal year shall be deposited 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 percent of the total revenues from bonuses,

 

rentals, delayed rentals, and royalties described in this section

 

otherwise dedicated to the trust fund that are received by the

 

state each state fiscal year shall be deposited into the Michigan

 

state parks endowment fund.

 

     The amount accumulated in the trust fund in any state fiscal

 

year shall not exceed $500,000,000.00, $200,000,000.00, exclusive

 

of interest and earnings. and amounts authorized for expenditure

 

pursuant to this section. When To the extent that the accumulated

 

principal of the trust fund reaches $500,000,000.00, all would

 

exceed $200,000,000.00, revenue from bonuses, rentals, delayed

 

rentals, and royalties described in this section that would

 

otherwise be received by the trust fund but for this limitation

 

shall be deposited into the Michigan state parks endowment fund

 

until the Michigan state parks endowment fund reaches an

 

accumulated principal of $800,000,000.00. When the Michigan state

 

parks endowment fund reaches an accumulated principal of

 

$800,000,000.00, all revenues from bonuses, rentals, delayed

 

rentals, and royalties described in this section shall be

 

distributed as provided by law.shall be deposited in the local

 

transportation fund established by section 35a. Accumulated

 

principal in the trust fund in excess of $200,000,000.00 on the

 

effective date of the 2014 amendment to this section shall be

 

transferred to the transportation fund.

 

     The interest and earnings of Money in the trust fund shall be

 

expended only for 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, for the development

 

of public recreation facilities, and for the administration of the

 

trust fund, which may include payments in lieu of taxes on state

 

owned land purchased through the trust fund. Money in the trust

 

fund shall not be expended if, after the expenditure, the

 

accumulated principal in the trust fund will be less than

 

$100,000,000.00. The trust fund may provide grants to units of

 

local government or public authorities which shall be used for the

 

purposes of this section. The legislature shall provide that a

 

portion of the cost of a project funded by such grants be provided

 

by the local unit of government or public authority.

 

     Until the trust fund reaches an accumulated principal of

 

$500,000,000.00, the legislature may provide, in addition to the

 

expenditure of interest and earnings authorized by this section,

 

that a portion, not to exceed 33-1/3 percent, of the revenues from

 

bonuses, rentals, delayed rentals, and royalties described in this

 

section received by the trust fund during each state fiscal year

 

may be expended during subsequent state fiscal years for the

 

purposes of this section.

 

     Not less than 25 percent 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 than 25 percent 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.

 

     The legislature shall provide by law for the establishment of

 

a trust fund board within the department of natural resources. The

 

trust fund board shall recommend the projects to be funded. The

 

board shall submit its recommendations to the governor who shall

 

submit the board's recommendations to the legislature in an

 

appropriations bill.

 

     The legislature shall provide by law for the implementation of

 

this section.

 

     Sec. 35a. There is hereby established the Michigan state parks

 

endowment local transportation fund. Eighty percent of all bonuses,

 

rentals, delayed rentals, and royalties collected or reserved by

 

the state, on or after the effective date of the 2014 amendment

 

that amended this section, under provisions of leases for the

 

extraction of nonrenewable resources from state owned lands, except

 

such revenues accruing under leases of state owned lands acquired

 

with money from state or federal game and fish protection funds or

 

revenues accruing from lands purchased with such revenues, shall be

 

deposited in the local transportation fund. The endowment local

 

transportation fund shall also consist of revenues as provided in

 

section 35 of this article, and as provided by law. The endowment

 

local transportation fund may also receive private contributions of

 

money or other things of value. All money in the Genevieve Gillette

 

Michigan state parks endowment fund on the effective date of the

 

2014 amendment to this section shall be transferred to the

 

endowment local transportation fund, and the Michigan state parks

 

endowment fund is dissolved. The assets of the endowment local

 

transportation fund shall be invested as provided by law.

 

     The accumulated principal of the endowment fund shall not

 

exceed $800,000,000.00, which amount shall be annually adjusted

 

pursuant to the rate of inflation beginning when the endowment fund

 

reaches $800,000,000.00. This annually adjusted figure is the

 

accumulated principal limit of the endowment fund.

 

     Money available for expenditure from the endowment local

 

transportation fund as provided in this section shall only 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.as follows:

 

     (a) Fifty percent to counties for the construction,

 

maintenance, repair, and improvement of county roads.

 

     (b) Fifty percent to cities and villages for the construction,

 

maintenance, repair, and improvement of city and village streets.

 

     Money in the endowment fund shall be expended as follows:

 

     (1) 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 percent of the money received under

 

section 35 of this article plus interest and earnings and any

 

private contributions or other revenue to the endowment fund.

 

     (2) 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 may be made available

 

for expenditure.

 

     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.

 

     The legislature shall provide by law for implementation of

 

this section.

 

     Resolved further, That the foregoing amendment shall be

 

submitted to the people of the state at the next general election

 

in the manner provided by law.