Bill Text: MI SB0280 | 2017-2018 | 99th Legislature | Engrossed

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Bill Title: Natural resources; funding; Michigan natural resources trust fund; clarify criteria for eligible expenditures. Amends secs. 1901, 1902, 1903, 1905, 1907 & 1907a of 1994 PA 451 (MCL 324.1901 et seq.) & adds sec. 1907b.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-24 - Referred To Committee On Appropriations [SB0280 Detail]

Download: Michigan-2017-SB0280-Engrossed.html

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SB-0280, As Passed Senate, May 24, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 280

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 1901, 1902, 1903, 1905, 1907, and 1907a (MCL

 

324.1901, 324.1902, 324.1903, 324.1905, 324.1907, and 324.1907a),

 

section 1901 as added by 1995 PA 60, sections 1902, 1905, 1907, and

 

1907a as amended by 2012 PA 619, and section 1903 as amended by

 

2011 PA 117, and by adding section 1907b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1901. As used in this part:

 

     (a) "Board" means the Michigan natural resources trust fund

 

board established in section 1905.

 

     (b) "Economic development revenue bonds (oil and gas

 

revenues), series 1982A, dated December 1, 1982" includes bonds

refunding these bonds, provided that any refunding bonds mature no

 

later than September 1, 1994.

 

     (c) "Local unit of government" means a county, city, township,

 

village, school district, the Huron-Clinton metropolitan authority,

 

or any authority composed of counties, cities, townships, villages,

 

or school districts, or any combination thereof, which authority is

 

legally constituted to provide public recreation.

 

     (d) "Total expenditures" means the amounts actually expended

 

from the trust fund as authorized by section 1903(1) and (2).1903.

 

     (e) "Trust fund" means the Michigan natural resources trust

 

fund established in section 35 of article IX of the state

 

constitution of 1963.

 

     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,

 

669i, or the Dingell-Johnson sport fish restoration act, 16 USC 777

 

to 777n.777m.

 

     (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.38.1141. To mitigate

 

against the fluctuation of investment performance, the state

 

treasurer may establish a stabilization account within the trust

 

fund consisting of interest and earnings of the trust fund.

 

     (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 cumulative total amount

 

of unexpended interest and earnings held by the trust fund, the

 

amount of money in the trust fund's stabilization account, 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.

 

     (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 full funding for

 

all 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.

 

     (2) (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.

 

     (3) (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 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.

 

     (4) (5) If property that was acquired with money from the

 

trust fund is subsequently sold or transferred by the this state,

 

to a nongovernmental entity, the this 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. 1905. (1) The Michigan natural resources trust fund board

 

is established within the department. The board shall have has the

 

powers and duties of an agency transferred under a type I transfer

 

pursuant to section 3 of the executive organization act of 1965,

 

1965 PA 380, MCL 16.103. The board shall be administered under the

 

supervision of the department and the department shall offer its

 

cooperation and aid to the board and shall provide suitable offices

 

and equipment for the board.

 

     (2) The board shall consist consists of 5 members. The members

 

shall include the director or a member of the commission as

 

determined by the commission, and 4 residents of the this state to

 

be appointed by the governor with the advice and consent of the

 

senate.

 

     (3) The terms of the appointive members shall be are 4 years,

except that of those first appointed, 1 shall be appointed for 1

 

year, 1 shall be appointed for 2 years, 1 shall be appointed for 3

 

years, and 1 shall be appointed for 4 years.

 

     (4) The appointive members may be removed by the governor for

 

inefficiency, neglect of duty, or malfeasance in office.

 

     (5) Vacancies on the board shall be filled for the unexpired

 

term in the same manner as the original appointments.

 

     (6) The board may incur expenses necessary to carry out its

 

powers and duties under this part and shall compensate its members

 

for actual expenses incurred in carrying out their official duties.

 

     Sec. 1907. (1) The board shall determine consider which lands

 

and rights in land within the this state should be acquired and

 

which public recreation facilities should be developed with money

 

from the trust fund and shall submit its recommendation to the

 

legislature in January of each year a list of those lands and

 

rights in land and those public recreation facilities that the

 

board has determined recommends should be acquired or developed

 

with trust fund money, compiled in order of priority. The list

 

prepared under this subsection shall be based upon the accounting

 

of revenues available for expenditure as described in the report

 

prepared under section 1902(4) and shall contain proposed

 

appropriations for the development of public recreation facilities

 

equal to 25% of the interest and earnings of the trust fund from

 

the previous year. In addition, if the board has received other

 

applications for the development of public recreation facilities

 

that meet the requirements of this part, the board shall propose

 

the use of up to 25% of the money in the stabilization account

established in section 1902(3) to fund those projects. In preparing

 

the list under this subsection, the board shall do all of the

 

following:

 

     (a) Give consideration to the purchase of rights in land

 

previously purchased with federal funds or other restricted state

 

funds in a manner that allows restrictions to be removed to provide

 

for greater use of the property.

 

     (b) Give consideration to the reimbursement of federal funds

 

that were used to purchase rights in land in a manner that allows

 

restrictions to be removed to provide for greater use of the

 

property.

 

     (c) Give consideration to funding the acquisition of land or

 

rights in land under section 1903(1)(a) for land that has already

 

been developed for recreation purposes or that is proposed for

 

development for recreation purposes. However, land or rights in

 

land are eligible for acquisition under this subdivision only if

 

the land is not currently managed for public outdoor recreation.

 

     (d) (a) Give a preference to the following:

 

     (i) A project or acquisition that is located within a local

 

unit of government that has adopted a resolution in support of the

 

project or acquisition.

 

     (ii) The acquisition of land and rights in land for

 

recreational trails that intersect the downtown areas of cities and

 

villages.

 

     (e) (b) Identify each parcel of land that is recommended for

 

acquisition by legal description and include the estimated cost of

 

acquisition and assessed value.

     (f) For each parcel of land that is recommended for

 

acquisition by the department, include both of the following:

 

     (i) The provisions of the strategic plan provided for in

 

section 503 applicable to that parcel and a description of how the

 

acquisition of that land will be consistent with the strategic

 

plan.

 

     (ii) All restrictions on access to the land or uses of the

 

land that the department intends to impose if the land is acquired

 

by the department.

 

     (g) (c) Provide a scoring of each parcel of land that meets

 

the requirements of this part recommended for acquisition and a

 

scoring of each project recommended for development of public

 

recreation facilities that meets the requirements of this part,

 

individually.

 

     (h) (d) Give consideration to an acquisition that meets either

 

or both of the following:

 

     (i) Is located within a county that contains 50% or more

 

privately owned land.

 

     (ii) Allows motorized recreational use.

 

     (2) In preparing the list of lands to be acquired or developed

 

under subsection (1), the following apply:

 

     (a) The board shall not include an acquisition of land on the

 

list if the board determines that the seller was harassed,

 

intimidated, or coerced into selling his or her land by the

 

department, a local unit of government, or a qualified conservation

 

organization.

 

     (b) A project or acquisition may be named in honor or memory

of an individual or organization.

 

     (3) The list prepared under subsection (1) shall be

 

accompanied by estimates of total costs for the proposed

 

acquisitions and developments.

 

     (4) The board shall supply with the list prepared under

 

subsection (1) a statement of the guidelines used in listing and

 

assigning the priority of these proposed acquisitions and

 

developments.

 

     (5) The legislature shall approve by law the appropriate money

 

for the funding of lands and rights in land and the public

 

recreation facilities to be acquired or developed each year with

 

money from the trust fund. The legislature may include in this

 

appropriation all or a portion of the money held in the

 

stabilization account authorized under section 1902(3). However,

 

the legislature shall not fund a project that has not been scored

 

by the board under section 1907.

 

     (6) As used in this section, "qualified conservation

 

organization" means that term as it is defined in section 7o of the

 

general property tax act, 1893 PA 206, MCL 211.7o.

 

     Sec. 1907a. (1) Following the appropriation of money under

 

section 1907 for use as a grant to a local unit of government or

 

public authority, but prior to the release of that money, the

 

department shall enter into a grant agreement with the recipient of

 

the grant. The grant agreement must include the following

 

provisions:

 

     (a) An annual accounting of the expenditure of the grant

 

proceeds.

     (b) If the project has not been completed and the grant has

 

not been terminated within 2 years, the recipient of the grant must

 

request an extension of the grant agreement from the department.

 

This request must include both of the following:

 

     (i) The status of the project.

 

     (ii) Reasons why the extension is needed.

 

     (c) At the discretion of the department, the extension request

 

may be granted.

 

     (d) If the department determines progress is not being made on

 

the project and the project is not likely to be completed, the

 

department will terminate the grant agreement and the recipient of

 

the grant will be required to withdraw the project and immediately

 

return the entire proceeds of the grant.

 

     (2) Within 30 days after entering into a grant agreement under

 

subsection (1) for the development of public recreation facilities,

 

the department shall release to the grant recipient the entire

 

amount of money appropriated for the grant.

 

     (3) If a grant agreement is terminated under subsection (1),

 

the attorney general, on behalf of the department, may bring an

 

action to recover the proceeds of the grant.

 

     (4) (1) If within 2 years after a parcel of property that is

 

approved for acquisition or development by the legislature has not

 

been acquired or developed in the manner determined by the board

 

and is not open for public use, the The board shall report to the

 

standing committees of the senate and the house of representatives

 

with jurisdiction over issues related to natural resources and the

 

environment on the status of the project and the reason why the

property has not been purchased or developed in the manner

 

determined by the board. information received related to subsection

 

(1)(a) to (d). The department shall post on its website a bimonthly

 

report of project status containing of all open projects funded by

 

the trust fund, including information described in this subsection.

 

     (5) (2) Following the appropriation of money from the trust

 

fund, if the a public recreation project changes significantly, the

 

board shall submit the changes to the joint capital outlay

 

subcommittee of the legislature to review whether the proposed

 

changed project is consistent with the purpose of the

 

appropriation. As used in this subsection, "changes significantly"

 

means changes to a project such that the project would not have

 

been funded had the change been in place during the evaluation of

 

the project.

 

     Sec. 1907b. (1) Except for land purchased entirely with

 

funding from the land exchange facilitation fund created in section

 

2134, the department shall not acquire land in this state with

 

funding from any source unless the department has first submitted

 

an application for funding from the trust fund and funding from the

 

trust fund for the acquisition of that land has been denied.

 

     (2) Upon acquisition of land with money from the trust fund,

 

the department shall manage that land consistent with the

 

restrictions on access and use of the land that were identified in

 

section 1907(1)(h). The department may change the restrictions on

 

access or use of the land only if both of the following conditions

 

are met:

 

     (a) The governing body of each city, village, or township in

which the land is located adopts a resolution in support of the

 

changes.

 

     (b) The natural resources commission approves the changes.