Bill Text: MI SB0822 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Natural resources; funding; Michigan natural resources trust fund; modify allowable expenditures. Amends secs. 1902 & 1903 of 1994 PA 451 (MCL 324.1902 & 324.1903) & repeals sec. 1904 of 1994 PA 451 (MCL 324.1904). TIE BAR WITH: SJR Q'11
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2011-11-10 - Referred To Committee On Natural Resources, Environment And Great Lakes [SB0822 Detail]
Download: Michigan-2011-SB0822-Introduced.html
SENATE BILL No. 822
November 10, 2011, Introduced by Senators CASPERSON, ROBERTSON, BOOHER, PROOS and EMMONS and referred to the Committee on Natural Resources, Environment and Great Lakes.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 1902 and 1903 (MCL 324.1902 and 324.1903),
section 1902 as amended by 2004 PA 587 and section 1903 as amended
by 2011 PA 117; 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 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. However, the trust fund shall not include 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,
669k, or 16 USC 777 to 777l, commonly known as the federal aid
in
fish restoration act.777n.
(d) Money received by the state from net proceeds allocable to
the
nonconventional fuel credit contained in section 29 49k of
the
internal
revenue code of 1986, 26 USC 29, 45k, as provided for in
section 503.
(2)
Notwithstanding subsection (1), until the trust fund
reaches
an accumulated principal of $500,000,000.00, $10,000,000.00
40% 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 45k of the
internal
revenue code of 1986, 26 USC 29, 45k, 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 until the Michigan state parks endowment
fund
reaches an accumulated principal of $400,000,000.00. 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, 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) 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.
(3) (4)
The trust fund may receive
appropriations, money, or
other things of value.
(4) (5)
The state treasurer shall direct
the investment of the
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.
(5) (6)
The department shall annually
prepare a report
containing an accounting of revenues and expenditures from the
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.
(6) (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.
Sec. 1903. (1) Subject to the limitations of this part and of
section 35 of article IX of the state constitution of 1963, the
interest and earnings of the trust fund in any 1 state fiscal year
may be expended in subsequent state fiscal years only for the
following purposes:
(a) The acquisition of land or rights in land for recreational
uses or protection of the land because of its environmental
importance or its scenic beauty.
(b) The management of land and water resources for
recreational purposes.
(c) (b)
The development of public
recreation facilities.
(d) The development and maintenance of trails and roads on
state-owned land.
(e) Infrastructure related to roads in locations where natural
resource based industries, including timber harvest or mining, are
operating.
(f) Infrastructure on waterways, including breakwaters and
dredging operations.
(g) (c)
The administration of the fund,
including payments in
lieu of taxes on state-owned land purchased through the trust fund.
The legislature shall make appropriations from the trust fund each
state fiscal year to make full payments in lieu of taxes on state-
owned land purchased through the trust fund, as provided in section
2154.
(2)
In addition to the money described in subsection (1), 33-
1/3%
of the money, exclusive of interest and earnings, received by
revenues of the trust fund in any state fiscal year may be expended
in subsequent state fiscal years for the purposes described in
subsection
(1). However, the authorization for the expenditure of
money
provided in this subsection does not apply after the state
fiscal
year in which the total amount of money in the trust fund,
exclusive
of interest and earnings and amounts authorized for
expenditure
under this section, exceeds $500,000,000.00.
(3) The accumulated principal of the trust fund shall not be
expended.
(4) (3)
An expenditure from the trust fund
may be made in the
form of a grant to a local unit of government or public authority,
subject to all of the following conditions:
(a) The grant is used for the purposes described in subsection
(1).
(b) The grant is matched by the local unit of government or
public authority with at least 25% of the total cost of the
project.
(5) (4)
Not less more than
25% of the total amounts made
available for expenditure from the trust fund from any state fiscal
year shall be expended for acquisition of land and rights in land.
,
and not more than 25% of the total amounts made available for
expenditure
from the trust fund from any state fiscal year shall be
expended
for development of public recreation facilities.
(6) (5)
If property that was acquired with
money from the
trust fund is subsequently sold or transferred by the state to a
nongovernmental entity, the state shall forward to the state
treasurer for deposit into the trust fund an amount of money equal
to the following:
(a) If the property was acquired solely with trust fund money,
the greatest of the following:
(i) The net proceeds of the sale.
(ii) The fair market value of the property at the time of the
sale or transfer.
(iii) The amount of money that was expended from the trust fund
to acquire the property.
(b) If the property was acquired with a combination of trust
fund money and other restricted funding sources governed by federal
or state law, an amount equal to the percentage of the funds
contributed by the trust fund for the acquisition of the property
multiplied by the greatest of the amounts under subdivision (a)(i),
(ii), and (iii).
Enacting section 1. Section 1904 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.1904, is
repealed.
Enacting section 2. This amendatory act does not take effect
unless Senate Joint Resolution Q
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.
