Bill Text: MI HB5281 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Property; conveyances; conveyance of surplus state-owned real estate; enact procedures for conveyance. Amends sec. 251 of 1984 PA 431 (MCL 18.1251) & adds sec. 257.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2016-12-13 - Referred To Committee On Appropriations [HB5281 Detail]
Download: Michigan-2015-HB5281-Introduced.html
HOUSE BILL No. 5281
February 2, 2016, Introduced by Reps. Inman and Pscholka and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 251 (MCL 18.1251), as amended by 1999 PA 8, and
by adding section 257.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
251. (1) This section applies to all real property of the
this state except all of the following:
(a) Property under the jurisdiction of the state
transportation department.
(b)
Property under the jurisdiction of a state an institution
of higher education.
(c) Property under the jurisdiction of the department of
natural resources.
(d) Property under the jurisdiction of the department of
military and veterans affairs.
(2) The department shall provide for the development and
maintenance of real property records and facility inventories. The
department may award appropriate service contracts or employ land
surveyors to survey, monument, map, describe, and record real
property and facilities.
(3)
The department shall issue directives to provide for the
disposition
process for facilities and lands that are considered
surplus.
The department shall require a public notice component in
its
directives regarding the disposition process under this
subsection.After the effective date of the amendatory act
that
added section 257, if a statute of this state requires the
disposition of real property to be in accordance with directives
developed for the disposition of surplus facilities and lands under
this section, the disposition is controlled by section 257.
Sec. 257. (1) The department, on behalf of this state, may
convey by quitclaim deed or affidavit of jurisdictional transfer
all or portions of state-owned property designated as surplus real
property by the state agency with jurisdiction over the property if
both of the following apply:
(a) The property is designated as surplus real property by the
director of the state agency with jurisdiction over the property in
writing to the director.
(b) The property is not needed to meet a state objective as
determined by the director.
(2) The department shall not convey property under this
section unless the conveyance and the terms of the conveyance have
been approved by the board.
(3) The state agency with jurisdiction over surplus real
property conveyed or transferred under this section is responsible
for all expenses of maintaining the property until the time of
conveyance or transfer.
(4) Surplus real property conveyed under this section must be
identified by a legal description approved or prepared by the state
surveyor for use in a state quitclaim deed.
(5) A deed or affidavit of jurisdictional transfer authorized
by this section must be approved as to legal form by the department
of attorney general.
(6) Surplus real property conveyed or transferred under this
section includes all surplus, salvage, and personal property or
equipment remaining on the property on the date of the conveyance.
(7) If surplus real property is to be sold for fair market
value under this section, the fair market value must be determined
by an independent fee appraisal prepared for the department, or by
an appraiser who is an employee or contractor of this state.
(8) The department may take the necessary steps to convey
surplus real property under this section using any of the following
means:
(a) Any publicly disclosed competitive method of sale,
selected to realize the fair market value to this state, as
determined by the department.
(b) Offering the property for sale for fair market value to 1
or more units of local government.
(c) Transferring the property, with or without consideration,
through jurisdictional transfer to another state agency. If
property is transferred under this subdivision, the transfer must
be made by an affidavit of jurisdictional transfer in recordable
form rather than a quitclaim deed.
(d) Exchanging some or all of the property for other real
property if the other real property is determined by the department
to be of reasonably equal value to this state.
(e) Offering the property for sale for less than fair market
value to the units of local government in which the property is
located, subject to the following conditions:
(i) The department may provide notice to each of the units of
local government of the property's availability. The department
shall give the first opportunity to purchase the property to the
first unit of local government to make an offer by registered mail
to purchase the property. If there are competing offers from units
of local government submitted on the same day, the department shall
determine which unit should receive the property based on the best
interests of this state. If an offer is accepted by the department,
the unit of local government shall enter into a purchase agreement
within 60 days after making the offer and complete the conveyance
within 180 days after making the offer. The department may extend
the time to complete the conveyance as needed.
(ii) The property must be used exclusively for public use for
30 years after the conveyance. If a fee, term, or condition is
imposed on members of the public for use of the property, or if
such a fee, term, or condition is waived, all members of the public
must be subject to the same fees, terms, conditions, and waivers.
The public use restriction must be included in the deed.
(iii) If the unit of local government intends to convey the
property within 30 years after the conveyance, the unit of local
government must first offer the property for sale, in writing, to
this state, which may purchase the property at the original sale
price. The unit of local government shall provide this state 120
days to consider reacquiring the property. If this state agrees to
reacquire the property, this state is not liable to any person for
improvements to or liens placed on the property. If this state
declines to reacquire the property, the public use restrictions
described in subparagraph (ii) remain in effect.
(iv) If the unit of local government retains the property for
30 years after the conveyance, the public use restrictions under
subparagraphs (ii) and (iii) automatically terminate.
(v) The department may require the unit of local government to
reimburse this state at closing for costs demonstrably incurred by
this state that were necessary to prepare the property for
conveyance.
(9) The department may require a grantee of property conveyed
under this section to record the instrument of conveyance or
jurisdictional transfer with the appropriate register of deeds and
provide the department with a recorded copy of the recorded
instrument.
(10) The department shall deposit the net revenue received
from the sale of property under this section in the state treasury.
The state treasurer shall credit the money deposited to the general
fund.
(11) This section applies to the conveyance of all real
property of this state except property under the jurisdiction of
any of the following:
(a) The state transportation department.
(b) An institution of higher education.
(c) The department of natural resources.
(d) The department of military and veterans affairs.
(e) The land bank fast track authority created under section
15 of the land bank fast track act, 2003 PA 258, MCL 124.765.
(12) This section applies to all jurisdictional transfers
between state departments and institutions, including those
exempted under subsection (11). However, this section does not
apply to a jurisdictional transfer of property exempted under
subsection (11)(e).
(13) This state shall not reserve oil, gas, or mineral rights
to property conveyed under this section. However, the conveyance
authorized under this section must provide that, if the grantee or
any successor develops any oil, gas, or minerals found on, within,
or under the conveyed property, the grantee or any successor shall
pay this state 1/2 of the gross revenue generated from the
development of the oil, gas, or minerals. A payment under this
section must be deposited in the general fund.
(14) A conveyance under this section must reserve to this
state all aboriginal antiquities, including mounds, earthworks,
forts, burial and village sites, mines, or other relics lying on,
within, or under the property, with power to this state and all
others acting under its authority to enter the property for any
purpose related to exploring, excavating, and taking away the
aboriginal antiquities.
(15) If property conveyed under this section was used by this
state as a historical monument, memorial, park, or protected
wildlife habitat area, the grantee or any successor shall maintain
and protect the property for that purpose in perpetuity in
accordance with applicable law.
(16) If property conveyed under this section is used in a
manner that violates any of the restrictions imposed under
subsection (8)(e), (13), (14), or (15), this state may reenter and
take the property, terminating the grantee's or any successor's
estate in the property. An action to regain possession of the
property under this section may be brought and maintained by the
attorney general on behalf of this state.
(17) If this state reenters and repossesses property under
subsection (16), this state is not liable to reimburse any person
for any improvements made on the property or to compensate any
person for any part of an unfulfilled contract or license issued to
provide goods or services on or for the property.
(18) By July 1 of each year, the department shall provide a
report to the house of representatives and senate appropriations
committees that contains all of the following information:
(a) The number and full description of and the state
department or agency with jurisdiction over each parcel of real
property declared as surplus property in the previous 12 months.
(b) The number and descriptions of properties sold under this
section competitively and at fair market value.
(c) The number and descriptions of properties sold under this
section at fair market value to units of local government.
(d) The number and descriptions of properties transferred
through jurisdictional transfer to another state agency under this
section.
(e) The number and descriptions of properties traded for other
real property under this section.
(f) The number and descriptions of properties offered to units
of local government for less than fair market value under this
section.
(g) The number and descriptions of properties sold to units of
local government for less than fair market value under this
section.
(h) The appraisal price of each parcel of property conveyed,
transferred, or offered for sale under this section.
(i) The purchase price of each parcel of property conveyed
under this section.
(j) The intended use of each parcel of property conveyed or
transferred under this section, if known.
(19) As used in this section:
(a) "Fair market value" means the highest estimated price that
the property will bring if offered for sale on the open market,
allowing a reasonable time to find a purchaser who would buy with
knowledge of the property's possible uses.
(b) "Net revenue" means the proceeds from the sale of the
property less reimbursement for any costs to the department
associated with the sale, including, but not limited to,
administrative costs, including employee wages, salaries, and
benefits; costs of reports and studies and other materials
necessary to the preparation of sale; environmental remediation;
legal fees; and any litigation costs related to the conveyance.
(c) "Public use" means, subject to subdivision (d), actual use
of the property by members of the public or actual use by the unit
of local government for any of the following:
(i) Publicly owned and operated correctional facilities.
(ii) Law enforcement purposes.
(iii) Emergency management response purposes.
(iv) Public educational use.
(v) Public transportation.
(vi) Public parks and recreational areas.
(vii) Public health uses.
(viii) Wildlife conservation or restoration.
(d) "Public use" does not include use by a for-profit
enterprise or any use that is closed to the public.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
