SB-0670, As Passed Senate, December 8, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 670

 

 

June 30, 2005, Introduced by Senators McMANUS and GILBERT and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 33901, 33902, 33903, 33904, 33908, 33910,

 

33911, 33916, 33924, 33929, and 33935 (MCL 324.33901, 324.33902,

 

324.33903, 324.33904, 324.33908, 324.33910, 324.33911, 324.33916,

 

324.33924, 324.33929, and 324.33935), as added by 1995 PA 59; and

 

to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 33901. All of the unpatented overflowed lands, made

 

lands, and  lake  Lake St. Clair bottomlands belonging to this

 

state or held in trust by  it  this state as provided in this part

 

shall be held, leased, disposed of by deed, and controlled by the

 

department in the manner provided in this part.

 

     Sec. 33902. The department shall not deed or convey the lands


 

described in section 33901 except as provided in sections 33903 to

 

33911.  , but may lease lands of the character described in section

 

33901 to a person for the purposes and in the manner provided in

 

this part.  The department may dedicate unleased lands of the

 

character described in section 33901 for public hunting, fishing,

 

and other recreational uses.

 

     Sec. 33903. The department, upon application of any person

 

holding  who, on the effective date of the 2005 amendatory act that

 

amended this section, holds a lease of any portion or portions of

 

land from this state pursuant to former  Act No. 326 of the Public

 

Acts of 1913  1913 PA 326, or this part, or upon application by

 

that person's heirs or assigns, shall execute and deliver to the

 

applicant or his or her heirs or assigns a deed conveying to him or

 

her all of the right, title, and interest of this state in and to

 

the lands described in this section, subject to the paramount

 

rights of navigation, hunting, and fishing that remain in the

 

general public and in the government as now existing and recognized

 

by law. The deeds shall contain the same provisions as to use and

 

occupancy as now set forth in all leases previously granted under

 

former  Act No. 326 of the Public Acts of 1913  1913 PA 326.  The

 

lands covered by this section are that portion of the St. Clair

 

Flats, township of Clay, St. Clair county, Michigan, as surveyed

 

under former Act No. 175 of the Public Acts of 1899, which front

 

upon or are a part of the south, middle, and Sni Bora channel

 

sections as follows:

 

     South channel section, lots 2-601 inclusive, excepting

 

therefrom portions described in Act No. 5 of the Public Acts of


 

1938 and already conveyed to the federal government pursuant to

 

that act.

 

     Also any interior lands so-called, lying between lots 452-601

 

inclusive, south channel section, and the highway known as M-154;

 

and in addition thereto the lands leased under section 11 of former

 

Act No. 326 of the Public Acts of 1913, and particularly described

 

therein.  

 

     Also middle channel section, lots 29-34 inclusive, lots 39-53

 

inclusive, lots 82 and 83 lying north of middle channel drive, lots

 

84-107 inclusive, lots 109 and 111, and lots 163-215 inclusive,

 

also Sni Bora channel section, lots 147-162 inclusive and lots 167-

 

202 inclusive. An application under this section must be filed at

 

least 1 year before the date on which the lease expires. 

 

     Sec. 33904. Before the department grants a deed, there shall

 

be presented evidence that the applicant requesting the deed is the

 

lessee of the land, that the land is part of the lands described in

 

section 33903, and that all taxes on the land are paid.  Upon

 

presentation of evidence of these facts satisfactory to the

 

department, together with a sum of money to be determined by the

 

department, the applicant shall be given a deed.  All property  so

 

deeded under this part is thereafter subject to the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, and the

 

recording laws of this state.

 

     Sec. 33908. The consideration  as  received for the execution

 

and delivery of  any of the  deeds  provided for in  under this

 

part  shall be credited to the general fund of this state.  and all

 

fees collected under this part shall be forwarded to the state


 

treasurer and credited to the land and water management permit fee

 

fund created in section 30113 to cover the administrative costs

 

associated with lease renewals, lease extensions, appraisals, and

 

other costs directly related to processing St. Clair flats leases

 

and deed requests. The department may charge against this account

 

for that purpose.

 

     Sec. 33910. The department, in its discretion, upon

 

application of  any  a person holding a lease or deed under this

 

part to any lands lying contiguous to  any  a water highway as

 

surveyed under former  Act No. 175 of the Public Acts of 1899 and

 

where  1899 PA 175, if it is determined that  such  the water

 

highway is no longer needed for navigation, ingress, and egress to

 

surveyed lots, or for any public use, whether dredged or not, may

 

execute and deliver to the applicant  a lease under section 33912,

 

or  a deed subject to all the applicable conditions and provisions

 

of sections 33902 to 33909, to all of the right, title, and

 

interest of the state in and to 1/2 of the surveyed width of that

 

portion of the water highway as lies contiguous to land held under

 

lease or deed by the applicant.  Where a lease is issued, its term

 

may be made to run concurrent with that of the lease held by the

 

applicant for the contiguous land.  

 

     Sec. 33911.  (1) Upon application of a person that holds a

 

lease from this state of any portion or portions of the real

 

property described in  subsection (2)  this part, the department

 

may execute and deliver to the applicant a deed conveying all of

 

the right, title, and interest of this state in and to that real

 

property, subject to the paramount rights of hunting, fishing, and


Senate Bill No. 670 as amended December 7, 2005

 

navigation, which remain in the general public and in the

 

government as recognized by law. The deeds shall contain the same

 

provisions as to use and occupancy now set forth in all the leases

 

previously granted under former  Act No. 326 of the Public Acts of

 

1913  1913 PA 326 or under this part.  <<The department shall not grant a

deed under this part unless the lessee of the subject property agrees to cancel the lease and relinquishes all rights under the lease.>>

 

     (2) The real property to which this section applies are that

 

portion of the St. Clair Flats, Township of Clay, St. Clair County,

 

Michigan, as surveyed under former Act No. 175 of the Public Acts

 

of 1899, that front upon or are a part of the North and Sni Bora

 

channel section and middle channel section described as:

 

     (a) Sni Bora Channel, the northeast one-half of lot 386.

 

     (b) North Channel, lots 79 and 80.

 

     (c) Sni Bora channel, lot 366.

 

     (d) Lot 470, middle channel section.

 

     (e) Lot 471, middle channel section.

 

     (2)  (3) Notwithstanding subsections (1) and (2), the  The

 

department shall not grant a deed under this  section  part for a

 

lot that contains a structure unless the structure and the lot

 

subject to the deed, including seawalls where present, comply with

 

the applicable township building code and county and state

 

sanitation codes and the structure is located on a parcel of land

 

that is adequately protected from erosion.

 

     (3)  (4)  A deed granted under this  section  part shall not

 

include a portion of the original lease that is submerged or lies

 

below the <<ordinary high-water mark of Lake St. Clair, which is

elevation of>>

 

574.5  575.3 International Great Lakes Datum (IGLD  1955  1985).

 

The department of environmental quality shall perform a site


Senate Bill No. 670 as amended December 7, 2005

 

inspection and set stakes, if necessary, to identify the boundaries

 

of the area of the  parcel  leased lot to be deeded. The applicant

 

may be required to  shall provide a boundary survey, completed by a

 

professional surveyor, that delineates the area of the real

 

property to be deeded. The state shall retain <<proprietary>> ownership

in trust

 

over the portion of the leased lot below the ordinary high-water

 

mark of Lake St. Clair at the time of the conveyance.

 

     (4)  (5)  A deed shall not be granted under this  section  

 

part at less than the fair market value of the real property in

 

accordance with the current department appraisal procedures for the

 

eligible parcels. Appraisal procedures and practices may include

 

utilizing independent fee appraisal contractors. The appraisal

 

shall not include improvements such as buildings, seawalls, and

 

docks. Credit shall not be granted to the lessee for the years

 

remaining on an unexpired lease when determining the sale value to

 

the state.

 

     (5) A request for a deed shall be on a form provided by the

 

department of environmental quality and shall be accompanied by an

 

application fee of $500.00.

 

     Sec. 33916.  All persons who, having been in occupation or

 

possession of lands of the character named in section 33901 for 1

 

or more years prior to January 1, 1913, fail to make application

 

for a lease for the occupation and possession of the lands as

 

provided for in this part, within 9 months after August 14, 1913,

 

and all persons who fail after the notification provided for in

 

section 33915 to make payment of the consideration fixed by the

 

department within the time and in the manner specified in this


 

part,  If a lease under this part expires and a deed is not issued

 

under this part to the former lease holder, the former lease holder

 

shall be considered  trespassers  to be a trespasser, and an action

 

may be brought in the circuit court for the county in which  those

 

lands are  that land is located, in the name of the people of this

 

state, by the attorney general of this state, to recover possession

 

of  the lands  that land.

 

     Sec. 33924.  (1) The words "possession",  As used in this

 

part:

 

     (a) "Department" means the department of natural resources

 

unless expressly indicated otherwise.

 

     (b) "Possession", "occupancy", and "improvement"  as used in

 

this part  include dredging or ditching, the throwing up of

 

embankments, sheetpiling, filling in, the erection of fences, a

 

boathouse, land made by dredging and filling, or building

 

structures.

 

     (c)  (2) As used in this part, "person"  "Person" means an

 

individual, partnership, corporation, association, or other

 

nongovernmental legal entity.

 

     (d) "Well maintained" means that any structure on the land

 

complies with township building codes and current county and state

 

health codes and that the land is adequately protected from

 

erosion.

 

     Sec. 33929. (1)  All sales  Each sale or  transfers  transfer

 

of  leases  a lease shall contain a specific statement of the

 

purpose for which the property leased is to be used by the

 

purchaser or assignee.  , and no  A sale or transfer of  any  a


 

lease for other than club or residence purposes  shall be  is not

 

valid  ,  unless and until the sale or transfer is approved by the

 

department of environmental quality.  The department shall keep a

 

book of record for the purpose of recording all sales or transfers

 

of leases, and no sale or transfer of any lease by any lessee shall

 

be valid unless and until the same is filed for record with the

 

department.

 

     (2) Before selling or transferring a property that is subject

 

to a lease under this part, the parties involved shall apply to the

 

department of environmental quality for approval of the transfer of

 

the lease to the purchaser. The application shall be made on a form

 

provided by the department of environmental quality and shall be

 

accompanied by a fee of $250.00. Upon approval by the department of

 

environmental quality, an assignment of lease form shall be

 

recorded with the county register of deeds.

 

     Sec. 33935.  The several  Each county  treasurers  treasurer

 

shall report to the department all descriptions of  the lands where

 

the same  parcels of property subject to this part that have been

 

returned for nonpayment of taxes,  and such  if those taxes have

 

not been paid within 6 months after  such return, the  being

 

returned for nonpayment of taxes. The report  to  shall be made by

 

such  the treasurer within 30 days after the  said 6 months shall

 

have  6-month period has expired. Land leased or deeded under this

 

part that is returned to state ownership through purchase, gift,

 

devise, lease expiration, or tax reversion shall not be re-leased

 

or sold by the state if that land is not well maintained.

 

     Enacting section 1. Sections 33905, 33909, 33913, 33914,


 

33915, 33917, 33918, 33919, 33920, 33922, 33923, 33925, 33930,

 

33931, 33932, 33936, 33937, 33938, and 33939 of the natural

 

resources and environmental protection act, 1994 PA 451, MCL

 

324.33905, 324.33909, 324.33913, 324.33914, 324.33915, 324.33917,

 

324.33918, 324.33919, 324.33920, 324.33922, 324.33923, 324.33925,

 

324.33930, 324.33931, 324.33932, 324.33936, 324.33937, 324.33938,

 

and 324.33939, are repealed.