Bill Text: MI HB4021 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Natural resources; gas and oil; distribution to natural resources trust fund from sale of oil and gas leases on state property; reduce. Amends sec. 1902 of 1994 PA 451 (MCL 324.1902) & repeals sec. 1908 of 1994 PA 451 (MCL 324.1908). TIE BAR WITH: HJR B'11

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2011-01-18 - Printed Bill Filed 01/14/2011 [HB4021 Detail]

Download: Michigan-2011-HB4021-Introduced.html

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HOUSE BILL No. 4021

 

 

January 13, 2011, Introduced by Reps. Agema, Yonker, Hooker and Pscholka and referred to the Committee on Natural Resources, Tourism, and Outdoor Recreation.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 1902 (MCL 324.1902), as amended by 2004 PA 587;

 

and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

     (2) Subsection (4) regulates the distribution 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.

 

     (3) However, the trust fund shall not include subsection (4)

 

does not apply to the distribution of 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 16 USC 669

 

to 669i, commonly known as the federal aid in wildlife restoration

 

act, or 16 USC 777 to 777l, 777n, commonly known as the federal aid

 

in fish restoration act.

 

     (d) Money received by the state from net proceeds allocable to

 

the nonconventional fuel credit contained in section 29 45K of the

 

internal revenue code of 1986, 26 USC 29, 45K, as provided for in

 

section 503.

 

     (4) The revenue described in subsection (2) shall be deposited

 

as follows:

 

     (a) 20% in the Michigan natural resources trust fund.

 

     (b) 20% in the state aeronautics fund created in section 34 of

 

the aeronautics code of the state of Michigan, 1945 PA 327, MCL

 

259.34.

 

     (c) 60% in the Michigan transportation fund established in

 

section 10 of 1951 PA 51, MCL 247.660.

 

     (5) (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 fuel credit contained in section 29 of the internal

 

revenue code of 1986, 26 USC 29, 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 fuel credit contained in section

 

29 of the internal revenue code of 1986, 26 USC 29, 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, (4)(a), 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) (4)(a) 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) In addition to the contents of the trust fund described in

 

subsection (1), the trust fund shall consist of money transferred

 

to the trust fund pursuant to section 1909.

 

     (6) (4) The Michigan natural resources trust fund may receive

 

appropriations, money, or other things of value for deposit in the

 

trust fund.

 

     (7) (5) The state treasurer shall direct the investment of the

 

Michigan natural resources 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

 

38.1140l.38.1140m.

 

     (8) (6) The department shall annually prepare a report

 

containing an accounting of revenues and expenditures from the

 

Michigan natural resources 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.

 

     (9) (7) 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.

 

     Enacting section 1. Section 1908 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.1908, is

 

repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Joint Resolution _____ or House Joint Resolution B

 

(request no. 00194'11) of the 96th Legislature becomes a part

 

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

 

article XII of the state constitution of 1963.