HOUSE BILL No. 5436


     November 1, 2001, Introduced by Rep. Meyer and referred to the Committee on Regulatory Reform.


        A bill to authorize the state administrative board to convey

   certain state owned property in Tuscola county; to prescribe con-

   ditions for conveyance; to provide for certain powers and duties

   of the department of management and budget; and to provide for

   the disposition of revenue derived from the conveyance.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  The state administrative board, on behalf of the

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      state, may convey to the recipient determined under sections 2 to

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      4, for consideration as determined pursuant to sections 2 to 4,

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      all or portions of property now under the jurisdiction of the

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      department of community health and located in the township of

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      Indian Fields, Tuscola county, Michigan, and further described as

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      follows:

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           The Southeast 40 acres, being approximately 1320 feet by

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      1320 feet, of the remainder of the South Half of Section 18, Town


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      12 North, Range 9 East, after excepting out the Southeast 1/4 of

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      Section 18 Town 12 North, Range 9 East, which was conveyed to the

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      City of Caro in that Quitclaim Deed dated May 16th, 1961.

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           Sec. 2.  The Tuscola area airport authority has the exclu-

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      sive right, for a period of 12 months after the effective date of

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      this act, to purchase the property described in section 1.  The

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      purchase price shall be 1 of the following:

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           (a) Less than fair market value, if the Tuscola area airport

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      authority agrees to use the property for public purposes.

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           (b) Fair market value, if the Tuscola airport authority does

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      not agree to use the property for public purposes.

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           Sec. 3.  If, at any time after purchasing the property under

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      sections 1 and 2, the Tuscola area airport authority determines

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      it will no longer operate as a local unit of government, or

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      determines that the property shall no longer continue to be used

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      for public purposes, then the Tuscola area airport authority

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      shall notify the state in writing 180 days before any such change

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      in organization or use.  The Tuscola area airport authority shall

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      then have the right, for 180 days, to purchase the reversionary

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      rights.  The purchase price will be the fair market value of the

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      property exclusive of any improvements on the date of the notice

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      to the state.

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           Sec. 4.  Any conveyance of the property described in

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      section 1 that is conveyed for public purpose for less than fair

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      market value shall provide for all of the following:

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           (a) That the property shall be used exclusively for public

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      purposes and if any fee, term, or condition is imposed on members



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      of the public for recreational use of the conveyed property, all

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      resident and nonresident members of the public shall be subject

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      to the same fees, terms, and conditions, except that the grantee

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      may waive daily fees or waive fees for the use of specific areas

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      or facilities; and that upon termination of that use or use for

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      any other purpose, the state may reenter and repossess the prop-

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      erty, terminating the grantee's estate in the property.

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           (b) That the Tuscola area airport authority may create and

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      record restrictions on the use of the property required for the

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      safe operation of an airport.  Those recorded restrictions shall

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      run with the land as long as the airport is in use and shall not

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      be extinguished solely by reversion of the property to the

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      state.

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           (c) That if the grantee disputes the state's exercise of its

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      rights of reentry and fails to promptly deliver possession of the

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      property to the state, the attorney general, on behalf of the

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      state, may bring an action to quiet title to, and regain posses-

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      sion of, the property.

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           Sec. 5.  The fair market value of the property described in

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      section 1 shall be determined by an appraisal as prepared by the

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      state tax commission or an independent fee appraiser.

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           Sec. 6.  The state administrative board, on behalf of the

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      state, may convey to the recipient determined under sections 7

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      and 8, for consideration as determined pursuant to sections 7 and

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      8, all or portions of property now under the jurisdiction of the

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      department of community health and located in the township of





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      Indian Fields, Tuscola county, Michigan, and further described as

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      follows:

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           That part of the South 1/2 of Section 17, Town 12 North,

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      Range 9 East, which lies North of the Cass River, South of M-81,

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      and 250 feet East of the Caro Center, Buildings number 7 and 9 as

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      numbered and depicted in the States Facility Inventory dated

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      June 1980.  The parcel contains approximately 80 acres.

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           Sec. 7.  The township of Indian Fields has the exclusive

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      right, for a period of 12 months after the effective date of this

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      act, to purchase the property described in section 6, for less

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      than fair market value, if the township of Indian Fields agrees

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      to use the property for public purposes.

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           Sec. 8.  Any conveyance of the property described in

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      section 6 for less than fair market value shall provide for both

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      of the following:

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           (a) That the property shall be used exclusively for public

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      purposes and if any fee, term, or condition is imposed on members

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      of the public for recreational use of the conveyed property, all

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      resident and nonresident members of the public shall be subject

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      to the same fees, terms, and conditions, except that the grantee

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      may waive daily fees or waive fees for the use of specific areas

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      or facilities; and that upon termination of that use or use of

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      any other purpose, the state may reenter and repossess the prop-

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      erty, terminating the grantee's estate in the property.

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           (b) That if the grantee disputes the state's exercise of its

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      rights of reentry and fails to promptly deliver possession of the

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      property to the state, the attorney general, on behalf of the



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      state, may bring an action to quiet title to, and regain

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      possession of, the property.

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           Sec. 9.  The descriptions of the parcels in sections 1 and 6

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      are approximate and for purposes of the conveyance are subject to

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      adjustments as the state administrative board or the attorney

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      general considers necessary by survey or other legal

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      description.

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           Sec. 10.  The conveyances authorized by this act shall be by

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      quitclaim deed approved by the attorney general.  The conveyance

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      shall not reserve the mineral rights to the state; however, the

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      conveyance shall provide that if the grantee derives any revenue

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      from the development of any minerals found on, within, or under

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      the conveyed property, the grantee shall pay 1/2 of that revenue

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      to the state, for deposit in the state general fund.

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           Sec. 11.  (1) The net revenue received under this act shall

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      be deposited in the state treasury and credited to the general

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      fund.

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           (2) For the purposes of this act, "net revenue" means the

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      proceeds from the sale of the property less reimbursement for any

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      costs to the state associated with the sale of the property.

















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