February 10, 2004, Introduced by Senators McMANUS, JELINEK, CROPSEY, BIRKHOLZ, KUIPERS, ALLEN, HARDIMAN, GOSCHKA, GARCIA, PRUSI, STAMAS, BARCIA and CHERRY and referred to the Committee on Natural Resources and Environmental Affairs.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 503 and 1907 (MCL 324.503 and 324.1907),
section 503 as amended by 1998 PA 419 and section 1907 as added
by 1995 PA 60.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 503. (1) The
department shall protect do all of the
2 following:
3 (a) Protect and conserve the natural resources of this state.
4 ; provide
5 (b) Provide
and develop facilities for outdoor recreation. ;
6 prevent
7 (c) Prevent the destruction of timber and other forest growth
8 by fire or otherwise.
; promote
9 (d) Promote the reforesting of forest lands belonging to the
1 state. ;
prevent
2 (e) Prevent and guard against the pollution of lakes and
3 streams within the state and enforce all laws provided for that
4 purpose with all
authority granted by law. ; and foster
5 (f) Foster and
encourage the protecting protection and
6 propagation of game and fish.
7 (2) The
department has the power and jurisdiction over the
8 management, control,
and disposition to manage,
control, and
9 dispose of all land under the public domain, except for those
10 lands under the public domain that are managed by other state
11 agencies to carry out their assigned duties and
12 responsibilities. On behalf of the people of the state, the
13 department may accept gifts and grants of land and other property
14 and may buy, sell, exchange, or condemn land and other property,
15 for any of the purposes contemplated by this part. Before
16 acquiring land, the department, in consultation with the
17 department of management and budget, shall prepare and consider a
18 written analysis of all of the following:
19 (a) The long-term costs of maintaining the land, including,
20 but not limited to, payments under part 21.
21 (b) The state's ability to pay costs identified under
22 subdivision (a).
23 (c) A justification for acquiring the land in light of the
24 analysis's conclusions under subdivisions (a) and (b).
25 (3) The department may accept funds, money, or grants for
26 development of salmon and steelhead trout fishing in this state
27 from the government of the United States, or any of its
1 departments or agencies, pursuant to the anadromous fish
2 conservation act, Public
Law 89-304, 16 U.S.C. 16 USC 757a to
3 757f, and may use this
money in accordance with subject to the
4 terms and provisions of that act. However, the acceptance and
5 use of federal funds does not commit state funds and does not
6 place an obligation upon the legislature to continue the purposes
7 for which the funds are made available.
8 (4) (2) The
department may lease lands owned or controlled
9 by the department or may grant concessions on lands owned or
10 controlled by the department to any person for any purpose that
11 the department determines to be necessary to implement this
12 part. In granting a concession, the department shall provide
13 that each concession is awarded at least every 7 years based on
14 extension, renegotiation, or competitive bidding. However, if
15 the department determines that a concession requires a capital
16 investment in which reasonable financing or amortization
17 necessitates a longer term, the department may grant a concession
18 for up to a 15-year term. A concession granted under this
19 subsection shall require, unless the department authorizes
20 otherwise, that all buildings and equipment shall be removed at
21 the end of the concession's term. Any lease entered into under
22 this subsection shall limit the purposes for which the leased
23 land is to be used and shall authorize the department to
24 terminate the lease upon a finding that the land is being used
25 for purposes other than those permitted in the lease. Unless
26 otherwise provided by law, money received from a lease or a
27 concession of tax reverted land shall be credited to the fund
1 providing financial support for the management of the leased
2 land. Money received from a lease of all other land shall be
3 credited to the fund from which the land was purchased. However,
4 money received from program-related leases on these lands shall
5 be credited to the fund providing financial support for the
6 management of the leased
lands, . For land managed by the
7 forest management
division of the department of natural
8 resources, that fund
is either such as the forest
development
9 fund established pursuant
to part 505 or section 50507, the
10 forest recreation fund
created in part 831. For land managed by
11 the wildlife or
fisheries division of the department of natural
12 resources, that fund
is section 83104, or the game
and fish
13 protection fund created
in part 435 section 43553, as
14 applicable.
15 (5) (3) When
the department sells land, the deed by which
16 the land is conveyed may reserve all mineral, coal, oil, and gas
17 rights to the state only when the land is in production or is
18 leased or permitted for production, or when the department
19 determines that the land has unusual or sensitive environmental
20 features or that it is in the best interest of this state to
21 reserve those rights as determined by commission policy.
22 However, the department shall not reserve the rights to sand,
23 gravel, clay, or other nonmetallic minerals. When the department
24 sells land that contains subsurface rights, the department shall
25 include a deed restriction that restricts the subsurface rights
26 from being severed from the surface rights in the future. If the
27 landowner severs the subsurface rights from the surface rights,
1 the subsurface rights revert to this state. The deed may reserve
2 to the state the right of ingress and egress over and across land
3 along watercourses and streams. Whenever an exchange of land is
4 made, either with the United States government, a corporation, or
5 an individual, for the purpose of consolidating the state forest
6 reserves, the department may issue deeds without reserving to the
7 state the mineral, coal, oil, and gas rights and the rights of
8 ingress and egress. The department may sell the limestone, sand,
9 gravel, or other nonmetallic minerals. However, the department
10 shall not sell a mineral or nonmetallic mineral right if the sale
11 would violate part 353, part 637, or any other provision of law.
12 The department may sell all reserved mineral, coal, oil, and gas
13 rights to such lands upon terms and conditions as the department
14 considers proper and may sell oil and gas rights as provided in
15 part 610. The owner of such lands as shown by the records shall
16 be given priority in case the department authorizes any sale of
17 such lands rights,
and, unless the landowner waives such
18 rights the priority, the department shall not sell such
the
19 rights to any other person. For the purpose of this section,
20 mineral rights do not include rights to sand, gravel, clay, or
21 other nonmetallic minerals.
22 (6) (4) The
department may enter into contracts for the
23 sale of the economic share of royalty interests it holds in
24 hydrocarbons produced from devonian or antrim shale qualifying
25 for the nonconventional fuel credit contained in section 29 of
26 the internal revenue code,
of 1986 26 USC 29. However, in
27 entering into these contracts, the department shall assure that
1 revenues to the natural resources trust fund under these
2 contracts are not less than the revenues the natural resources
3 trust fund would have received if the contracts were not entered
4 into. The sale of the economic share of royalty interests under
5 this subsection may occur under contractual terms and conditions
6 considered appropriate by the department and as approved by the
7 state administrative board. Funds received from the sale of the
8 economic share of royalty interests under this subsection shall
9 be transmitted to the state treasurer for deposit in the state
10 treasury as follows:
11 (a) Net proceeds allocable to the nonconventional fuel credit
12 contained in section 29
of the internal revenue code, of 1986
13 26 USC 29, under this subsection shall be credited to the
14 environmental protection fund created in section 503a.
15 (b) Proceeds related to the production of oil or gas from
16 devonian or antrim shale shall be credited to the natural
17 resources trust fund or other applicable fund as provided by
18 law.
19 (7) (5) As
used in subsection (4) (6):
20 (a) "Natural resources trust fund" means the Michigan natural
21 resources trust fund established in section 35 of article IX of
22 the state constitution of 1963 and provided for in section 1902.
23 (b) "Net proceeds" means the total receipts received from the
24 sale of royalty interests
under subsection (4) (6) less costs
25 related to the sale. Costs may include, but are not limited to,
26 legal, financial advisory, geological or reserve studies, and
27 accounting services.
1 (8) (6) As
used in this section:
2 (a) "Concession" means an agreement between the department
3 and a person under terms and conditions as specified by the
4 department to provide services or recreational opportunities for
5 public use.
6 (b) "Lease" means a conveyance by the department to a person
7 of a portion of the state's interest in land under specific terms
8 and for valuable consideration, thereby granting to the lessee
9 the possession of that portion conveyed during the period
10 stipulated.
11 Sec. 1907. (1) The board shall determine which lands and
12 rights in land within the state should be acquired and which
13 public recreation facilities should be developed with money from
14 the trust fund. and
The board shall prepare, annually review,
15 and, if advisable, update a long-term spending plan for money
16 from the trust fund. Before the board determines which lands or
17 rights in land should be acquired with money from the trust fund,
18 the board shall consider the long-term spending plan and shall
19 prepare, in consultation with the department of management and
20 budget, and consider a written analysis of all of the following:
21 (a) The long-term costs of maintaining each of the lands or
22 rights in land, including, but not limited to, payments under
23 part 21.
24 (b) The state's ability to pay costs identified under
25 subdivision (a).
26 (c) A justification for acquiring each of the lands in light
27 of the long-term spending plan and the written analysis's
1 conclusions under subdivisions (a) and (b).
2 (2) The board shall submit to the legislature in January of
3 each year a list of those lands and rights in land and those
4 public recreation facilities that the board has determined should
5 be acquired or developed with trust fund money, compiled in order
6 of priority. (2) This
list shall be accompanied by estimates
7 of total costs for the proposed acquisitions and developments and
8 long-term costs of maintenance of proposed acquisitions.
9 (3) The board shall supply with each list a statement of the
10 guidelines used in listing and assigning the priority of these
11 proposed acquisitions and developments and the long-term plan and
12 written analysis under subsection (1).
13 (4) The legislature shall approve by law the lands and rights
14 in land and the public recreation facilities to be acquired or
15 developed each year with money from the trust fund.