Bill Text: MI SB0763 | 2017-2018 | 99th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Natural resources; funding; Michigan natural resources trust fund and Michigan state parks endowment fund; modify allowable expenditures. Amends secs. 1901, 1902, 1903 & 74119 of 1994 PA 451 (MCL 324.1901 et seq.); adds sec. 74119a & repeals sec. 1904 of 1994 PA 451 (MCL 324.1904).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-12-31 - Assigned Pa 597'18 12/31/18 Addenda [SB0763 Detail]

Download: Michigan-2017-SB0763-Introduced.html

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SENATE BILL No. 763

 

 

January 24, 2018, Introduced by Senator CASPERSON 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 1901, 1902, 1903, and 74119 (MCL 324.1901,

 

324.1902, 324.1903, and 324.74119), section 1901 as added by 1995

 

PA 60, section 1902 as amended by 2012 PA 619, section 1903 as

 

amended by 2011 PA 117, and section 74119 as amended by 2002 PA 54,

 

and by adding section 74119a; and to repeal acts and parts of acts.

 

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) "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.

 

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

 

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

 

(2).

 

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

 

trust fund established in section 35 of article IX of the state

 

constitution of 1963 and provided for in section 1902.

 

     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

 

Michigan state parks endowment fund reaches an accumulated

 

principal of $500,000,000.00, $10,000,000.00 of $800,000,000.00,

 

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

 

state 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.

 

     (3) The trust fund may receive appropriations, money, or other

 

things of value.

 

     (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.

 

     (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.

 

     (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 The accumulated principal of the trust

 

fund shall not be expended. However, 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 including

 

the renovation and redevelopment of public recreation facilities

 

that have reached their projected depreciated life expectancy.

 

     (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 After the Michigan state parks endowment fund reaches

 

an accumulated principal of $800,000,000.00, in addition to the

 

money described in subsection (1), 33-1/3% 50% 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. 74119. (1) In accordance with section 35a of article IX

 

of the state constitution of 1963, the Michigan state parks

 

endowment fund is created within the state treasury. The Michigan

 

state parks endowment fund may be referred to as the Genevieve

 

Gillette state parks 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. 38.1141. 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 Subject to subsection (6), money in the endowment

 

fund shall be expended for operations, the following:

 

     (a) Operations, maintenance, and capital improvements at

 

Michigan state parks and for the acquisition of land or rights in

 

land for Michigan state parks.

 

     (b) Local public recreation projects including 1 or more of

 

the following:

 

     (i) The development, redevelopment, and renovation of

 

motorized and nonmotorized trails and related infrastructure.

 

     (ii) The control and prevention of aquatic invasive species.

 

     (iii) The development, redevelopment, and renovation of local

 

public recreation facilities.

 

     (c) The administration of the endorsement fund.

 

     (6) Not more than 25% of the expenditures from the endowment

 

fund for local public recreation projects shall be for the control

and prevention of aquatic invasive species.

 

     (7) (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 shall allocate 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 .as follows:

 

     (i) Twenty-five percent shall be retained by the endowment

 

fund and credited to the accumulated principal of the endowment

 

fund.

 

     (ii) Not less than 50% shall be made available for expenditure

 

for operations, maintenance, and capital improvements at Michigan

 

state parks and the acquisition of land and rights in land for

 

Michigan state parks.

 

     (iii) Not less than 20% shall be made available for

 

expenditure for local public development projects authorized by

 

this section.

 

     (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 .for

 

the following:

 

     (i) Operations, maintenance, and capital improvements at

 

Michigan state parks.

 

     (ii) The administration of the endowment fund.

     (8) (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.

 

     (9) An expenditure from the endowment 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 a local public recreation project

 

described in subsection (5)(b).

 

     (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.

 

     (10) (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.

 

     Sec. 74119a. (1) The Michigan natural resources trust fund

 

board established in section 1905 shall determine which projects

 

should be funded with money from the endowment fund and shall

 

submit to the legislature in January of each year a list of those

projects, compiled in order of priority. In preparing the list

 

under this subsection, the Michigan natural resources trust fund

 

board shall do all of the following:

 

     (a) Give a preference to the following:

 

     (i) A project that is located within a local unit of

 

government that has adopted a resolution in support of the project.

 

     (ii) A project for recreational trails that intersect the

 

downtown areas of cities and villages.

 

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

 

acquisition by legal description and include the estimated cost of

 

acquisition and assessed value.

 

     (c) Provide a scoring of each project individually.

 

     (d) Give consideration to a project 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 projects under subsection (1),

 

the following apply:

 

     (a) The Michigan natural resources trust fund 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 of projects prepared under subsection (1) shall

be accompanied by estimates of the cost of each project and the

 

total costs for the projects.

 

     (4) The Michigan natural resources trust fund board shall

 

supply with the list of projects prepared under subsection (1) a

 

statement of the guidelines used in listing and assigning the

 

priority of these projects.

 

     (5) The legislature shall approve by law the projects to be

 

funded each year with money from the endowment fund.

 

     (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.

 

     Enacting section 1. Section 1904 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.1904, is

 

repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Joint Resolution O                                  

 

                       of the 99th Legislature becomes a part of

 

the state constitution of 1963 as provided in section 1 of article

 

XII of the state constitution of 1963.