Bill Text: MI HB4069 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Natural resources; forests; classification of forestland as commercial forest; clarify requirements for inclusion and withdrawal of forestland. Amends secs. 51102, 51103, 51108, 51113 & 51115 of 1994 PA 451 (MCL 324.51102 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-06-06 - Assigned Pa 48'13 With Immediate Effect [HB4069 Detail]
Download: Michigan-2013-HB4069-Engrossed.html
HB-4069, As Passed House, March 19, 2013
SUBSTITUTE FOR
HOUSE BILL NO. 4069
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 51102, 51103, 51108, 51113, and 51115 (MCL
324.51102, 324.51103, 324.51108, 324.51113, and 324.51115),
sections 51102 and 51115 as added by 1995 PA 57, sections 51103 and
51113 as amended by 2006 PA 383, and section 51108 as amended by
2012 PA 248.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51102. The department shall establish and maintain
commercial forests and may promulgate and enforce rules as
necessary
to accomplish the intent and purpose of this part. All
expenses
incurred and staff employed to implement this part shall
be
with the approval of the state administrative board.
Sec. 51103. (1) The owner of at least 40 contiguous acres or a
survey unit consisting of 1/4 of 1/4 of a section of forestland
located within this state may apply to the department to have that
forestland
determined to be classified
as a commercial forest under
this part. For purposes of this subsection, "contiguous" means land
that touches at any point. Even if portions of commercial
forestland are contiguous only at a point, the privilege of hunting
and fishing as provided in section 51113 shall not be denied for
any
portion of the land. as provided in section 51113. The
existence of a public or private road, a railroad, or a utility
right-of-way that separates any part of the land does not make the
land noncontiguous.
(2)
To be eligible for determination classification as a
commercial forest, forestland shall be capable of all of the
following:
(a) Producing not less than 20 cubic feet per acre per year of
forest growth upon maturity.
(b) Producing tree species that have economic or commercial
value.
(c) Producing a commercial stand of timber within a reasonable
period of time.
(3) An application for classification as commercial forest
shall be submitted on a form prescribed by the department. The
application shall be postmarked or delivered not later than April 1
to
be eligible for approval classification
as commercial forest for
the following tax year. In addition to any information that the
department may reasonably require by rule, the applicant shall
provide all of the following to the department:
(a) A nonrefundable application fee in the amount of $1.00 per
acre or fraction of an acre, but not less than $200.00 and not more
than $1,000.00. The department shall remit the application fee to
the state treasurer for deposit into the fund.
(b) A legal description and the amount of acreage considered
for
determination classification
as a commercial forest.
(c) A statement certifying that a forest management plan
covering the forestland has been prepared and is in effect.
(d) A statement certifying that the owner of the forestland
owns the timber rights to the timber standing on the forestland.
(4) The department shall prepare and distribute to any person
desiring to apply for classification of forestland as commercial
forest under this part a brochure that lists and explains, in
simple, nontechnical terms, all of the following:
(a) The application, hearing, determination, declassification,
and prosecution process.
(b) The requirements of the forest management plan.
(5) Not later than 3 months after the effective date of the
2006
2013 amendatory act that amended this section, the
department
shall notify each county and township and all owners of forestland
that is classified as commercial forest under this part, who are on
record with the department, of the amendments to this part that
were
enacted in 2006.2013.
(6)
If an applicant is unable to secure the services of a
registered
forester or a natural resources professional to prepare
a
forest management plan, the department upon request shall prepare
the
forest management plan on behalf of the owner of the forestland
and
charge the owner a forest management plan fee not to exceed the
actual
cost of preparing the forest management plan.
(6) (7)
After an owner certifies to the
department that a
forest management plan has been prepared and is in effect, a
violation of that forest management plan is a violation of this
part.
(7) A forest management plan that has been submitted to the
department or the local tax collecting unit is exempt from
disclosure under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
Sec. 51108. (1) An owner of a commercial forest may withdraw
his
or her land, forestland, in whole or in part, from the
operation
of classification as
commercial forest under this part
upon application to the department and payment of the withdrawal
application fee and penalty, as provided in this section.
(2) Except as otherwise provided by this section, upon
application
to the department to withdraw commercial forestland
from
the operation of classification
as commercial forest under
this part, the applicant shall forward to the department a
withdrawal application fee in the amount of $1.00 per acre with a
minimum withdrawal application fee of $200.00 per application and a
maximum withdrawal application fee of $1,000.00 per application.
(3) Except as otherwise provided in this section, an
application
to withdraw commercial forestland from the operation of
classification as commercial forest under this part shall be
granted
upon the payment of a penalty to the township treasurer of
the
township in which the commercial forestland
is located. of a
penalty.
For applications to withdraw commercial forestland filed
on
or after September 27, 2007 in which the withdrawal penalty has
not
been paid before October 8, 2008, the The withdrawal penalty
shall be calculated in the following manner:
(a)
Multiply the number of acres of commercial forestland
withdrawn
from the operation of classification
as commercial forest
under this part by 1 of the following:
(i) For 2007, 1/2 of the valuation per acre for the county in
which the forestland is located.
(ii) Beginning in 2008, and for each subsequent year, the
number described in subparagraph (i) adjusted annually by the
inflation rate for each year after 2007.
(b) Multiply the product of the calculation in subdivision (a)
by the average millage rate levied by all townships, excluding
villages,
in the county in which the property forestland is
located.
(c) Multiply the product of the calculation in subdivision (b)
by the number of years, to a maximum of 7 years, in which the
property
forestland withdrawn from the operation of classification
as
commercial forest under this part has
been designated classified
as
commercial forestland forest
under this part.
(d) Multiply the product of the calculation in subdivision (c)
by the following:
(i) 0.2, if the commercial forestland is
located in Luce
county.
(ii) 0.3, if the commercial forestland is
located in Grand
Traverse, Manistee, Ottawa, or Wexford county.
(iii) 0.4, if the commercial forestland is
located in
Charlevoix, Chippewa, Emmet, Gladwin, Leelanau, Midland, Oscoda, or
Tuscola county.
(iv) 0.5, if the commercial forestland is
located in Cheboygan,
Delta, Mackinac, Oceana, Otsego, or Schoolcraft county.
(v) 0.6, if the commercial forestland is
located in Alcona,
Alger, Allegan, Alpena, Arenac, Barry, Bay, Benzie, Berrien,
Branch, Calhoun, Cass, Clare, Clinton, Crawford, Dickinson, Eaton,
Genesee, Gogebic, Gratiot, Hillsdale, Houghton, Huron, Ingham,
Ionia, Iosco, Iron, Isabella, Jackson, Kalamazoo, Kalkaska, Kent,
Lapeer, Lenawee, Livingston, Macomb, Marquette, Mecosta, Monroe,
Montcalm, Montmorency, Muskegon, Newaygo, Oakland, Ogemaw, Osceola,
Presque Isle, Roscommon, Saginaw, St. Clair, St. Joseph, Sanilac,
Shiawassee, Van Buren, Washtenaw, or Wayne county.
(vi) 0.7, if the commercial forestland is
located in Antrim,
Baraga, Mason, or Menominee county.
(vii) 0.8, if the commercial forestland is
located in Keweenaw,
Lake, Missaukee, or Ontonagon county.
(4) The department shall publish all of the following on its
website:
(a) The calculation described in subsection (3)(a)(i) for each
county.
(b) The adjusted value and the inflation rate described in
subsection (3)(a)(ii) for each county.
(c) The average millage rate described in subsection (3)(b)
for each county.
(5) Until 1 year after the effective date of the 2013
amendatory act that amended this section, the owner of forestland
that is withdrawn from the classification as commercial forest
under this part is not subject to a withdrawal penalty if all of
the following occur:
(a) The owner of the forestland withdraws his or her
forestland from the classification as commercial forest under this
part as provided in this section.
(b) The former commercial forestland is placed on the
assessment roll in the local tax collecting unit in which the
former commercial forestland is located.
(c) The owner of the former commercial forestland claims and
is granted an exemption for that land from the tax levied by a
local school district for school operating purposes under section
7jj of the general property tax act, 1893 PA 206, MCL 211.7jj[1].
The owner shall submit to the department a copy of the recorded
qualified forest school tax affidavit by December 31 of the year in
which the land is withdrawn from this part.
(6) (5)
An application to withdraw commercial
forestland from
the
operation of classification
as commercial forest under this
part that meets 1 or more of the following requirements shall be
granted without payment of the withdrawal application fee or
penalty under this section:
(a)
Commercial forestland Forestland
that has been donated to
a public body for public use prior to withdrawal.
(b)
Commercial forestland Forestland
that has been exchanged
for property belonging to a public body if the property received is
designated
classified as a commercial forest as determined by the
department.
(c)
Commercial forestland Forestland
that has been condemned
for public use.
(7) (6)
An application to withdraw commercial
forestland from
the
operation of classification
as commercial forest under this
part that meets all of the following requirements shall be granted
without payment of the withdrawal application fee or penalty under
this section:
(a) Evidence is submitted to the department that the land met
the legal requirements to be exempt from ad valorem property tax on
tax day for the tax year in which the list application was
submitted and approved and that the land would have met the legal
requirements to be exempt from ad valorem property tax on tax day
for
each year that the land was subject to the operation of
classified as commercial forest under this part, if the land had
not
been subject to the operation of classified as commercial
forest under this part. As used in this subdivision, "tax day"
means that term as provided in section 2 of the general property
tax act, 1893 PA 206, MCL 211.2.
(b)
The application to withdraw is submitted to the department
by the same landowner that owned the land on tax day for the tax
year
in which the list application was submitted and that submitted
the application for determination under section 51103.
(c)
Reimbursement is made by the The
landowner to reimburses
the state treasurer for the specific tax that was paid by the state
treasurer to the county treasurer, as provided in section 51106(1),
for
each tax year the land was commercial forestland classified as
commercial forest under this part.
(8) The department may withdraw forestland from the
classification as commercial forest under this part if the
forestland has been acquired by a federally recognized Indian tribe
and the associated property taxes are subsequently preempted under
federal law. A withdrawal under this subsection is not subject to
the withdrawal application fee or penalty under this section.
(9) (7)
The department shall remit the withdrawal
application
fee paid pursuant to subsection (2) to the state treasurer for
deposit into the fund. The penalty received by the township
treasurer under subsection (3) shall be distributed by the township
treasurer in the same proportions to the various funds as the ad
valorem general property tax is allocated in the township, except
as provided by section 51109(2).
(10) (8)
If an application to withdraw commercial
forestland
from classification as commercial forest under this part is
granted, the department shall immediately notify the applicant, the
supervisor of the township, and the register of deeds of the county
in which the lands are located of the action and shall file with
those officials a list of the lands withdrawn.
(11) (9)
As used in this section:
(a) "Inflation rate" means the lesser of 1.05 or the inflation
rate as defined in section 34d of the general property tax act,
1893 PA 206, MCL 211.34d.
(b) "Valuation" means the market value as determined by the
state tax commission.
Sec. 51113. (1) Except as provided in this section, the owner
of
a forestland that is
classified as commercial forest shall
not
use that land in a manner that is prejudicial to its development as
a commercial forest, use the land for agricultural, mineral
extraction except as provided in this section, wind energy
development except as provided in this section, grazing,
industrial, developed recreational, residential, resort,
commercial, or developmental purposes, or deny the general public
the privilege of hunting and fishing on commercial forestland
unless the land is closed to hunting or fishing, or both, by order
of the department or by an act of the legislature. If the
department determines that the owner of commercial forestland has
taken an action that has the effect of denying or inhibiting access
to the commercial forestland for public hunting and fishing, except
as specifically provided in this part, the department may require
withdrawal of the forestland as commercial forest under this part
unless the owner corrects that action and allows access to the
commercial forestland for public hunting and fishing. If there is
not access to a parcel of commercial forestland and the lack of
access is not the consequence of an action taken by the owner of
commercial forestland, the forestland may remain as commercial
forestland if all of the following apply:
(a) There is not a transfer of title for the parcel of
commercial forestland, other than as a part of a larger sale of
10,000 or more acres.
(b) The landowner has not taken an action following
acquisition of the commercial forestland that has the effect of
denying or inhibiting access to the commercial forestland to the
public for hunting and fishing.
(c) The commercial forestland is otherwise in compliance with
this part.
(2)
Exploration for minerals shall be permitted on land listed
forestland that is classified as commercial forest under this part.
Except as provided in subsections (3) and (4), before the removal
of any commercial mineral deposits, the owner shall withdraw the
portion of the commercial forestland directly affected by the
removal pursuant to section 51108. The withdrawal of commercial
forestland due to mineral removal as provided in this section and
section
51108 shall does not cause require the remaining
portion of
the commercial forestland to be withdrawn due to insufficient
acreage of the remaining commercial forestland.
(3) Upon application to and approval by the department, sand
and
gravel may be removed from the commercial forest forestland
without
affecting the land's status classification
as a commercial
forest. The department shall approve an application to remove sand
and gravel deposits only if the removal site is not greater than 5
acres, excluding access to the removal site, and the sand and
gravel are to be utilized by 1 or more of the following:
(a)
The owner of a commercial forest forestland for personal
use
if the owner of the commercial forest forestland is also the
owner of the sand and gravel deposits.
(b) The owner of the sand and gravel deposits for his or her
personal
use or for sale to the owner of the commercial forest
forestland
for personal use, if the owner of the
commercial forest
forestland is not also the owner of the sand and gravel deposits.
(c)
This For sale to this state, a local unit of government, a
federal government agency, or a county road commission, for
governmental use, or a contractor or other agent undertaking
construction, maintenance, or a project for 1 of these governmental
entities.
(4) Upon application to and approval by the department,
deposits
of oil and gas may be removed from the commercial forest
forestland
without affecting the land's status classification as a
commercial forest.
(5) The exploration for wind energy development is permitted
on forestland classified as commercial forest under this part
pursuant to this subsection. Upon application to and approval by
the department, meteorological towers may be erected and wind
energy exploration or development leases, easements, or license
agreements may be entered into without affecting the land's
classification as commercial forest. A landowner may be paid
compensation for these leases, easements, and license agreements.
Before any wind turbines are erected for the purpose of generating
electricity for commercial purposes, the owner shall withdraw the
portion of the commercial forest directly affected as follows:
(a) The actual physical footprint of each wind turbine,
associated buildings, and adjacent areas that will be permanently
removed from forest production shall be removed from the
classification as commercial forest.
(b) Forestland under a wind energy development lease,
easement, or license agreement where forest production will
continue may continue to be classified as commercial forest.
(c) Forestland containing road and utility rights-of-way may
continue to be classified as commercial forest.
Sec.
51115. (1) The transfer of title of forestland subject to
classified
as commercial forest under this part shall
does not
affect
that forestland's status classification
as a commercial
forest if the forestland continues to meet all of the eligibility
requirements under this part. If the purchaser desires to withdraw
his or her forestland from the classification as commercial forest
under this part, the purchaser shall withdraw that forestland
pursuant
to section 51108. If the forestland's eligibility to be a
classified as commercial forest is affected by the transfer of
title, the department shall determine which forestlands may remain
classified as commercial forest under this part and which
forestlands must be withdrawn or declassified.
(2) A document that transfers any interest in commercial
forestlands shall state on the face of the document that "this
property is subject to part 511, the commercial forest part of the
natural resources and environmental protection act". Failure to
comply
with this subsection does not affect the status
classification of the land as commercial forestland.
(3) Not later than 30 days after the county equalization
office receives notice of a transfer of title or the transfer of
any interest in a land contract concerning the commercial
forestland,
the owner county
equalization office shall notify the
department in writing of the transfer or ownership change.
Enacting section 1. This amendatory act takes effect June 1,
2013.
