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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
BILL NUMBER: House Bill No. 5313 as
Introduced
TOPIC: Removal
of State’s reversionary interest from municipal and school forest lands.
SPONSOR: Representative
Mike Pumford
CO-SPONSORS: Representatives
Hart, Moolenaar, Emmons, Pastor, Vander Veen, Farhat, Shackleton
and Meyer
COMMITTEE: House Committee on Conservation and
Outdoor Recreation
Analysis
Done:
POSITION
The Department of Natural
Resources (Department) does not support House Bill 5313.
PROBLEM/BACKGROUND
House Bill 5313 would allow
property that was deeded to municipalities and schools, for a nominal fee and
for forestry purposes, to be used and/or sold for any purpose. This will diminish the educational
opportunities related to ecosystem management, and will diminish the on-going revenue
opportunities to public entities from a sustainably
managed forest.
Currently, municipal and
school forest land must be managed for forestry purposes or the property
reverts to the Department. The
Department has a process that allows a municipality or school to request to
have the reverter clause removed. If the site meets the following conditions,
the reverter clause may be removed:
·
The land is not within a Department or federal government
boundary.
·
The land does not provide public access to a body of water.
·
The land does not contain unusual or sensitive environmental
features.
Once the reverter clause is removed, the owner can manage or sell
the property for any purpose.
DESCRIPTION
OF BILL
House Bill 5313 amends
Sections 2102 and 52706 of 1994 PA 451, the Natural Resources and Environmental
Protection Act, to remove the State’s reversionary
interests in existing municipal and
school forest lands, and prohibits the Department from retaining a reversionary
interest in land conveyed as municipal or school forest lands.
The bill also requires that
proceeds from the sale of such land be distributed as follows:
·
Fifty percent (50%) to the Seller.
·
Twenty percent (20%) to the State School Aid fund.
·
Fifteen percent (15%) to the Agriculture Preservation Fund.
·
Fifteen percent (15%) to the Payment in-lieu of Taxes Fund,
as created in Section 2154a of 1994 PA 451.
SUMMARY OF
ARGUMENTS
Pro
This bill will allow
municipalities and schools to utilize forest land acquired under this section
for any purpose. Revenue will be
generated from the potential sale of these lands.
Con
The original intent of 1994
PA 451 was to encourage educational opportunities for ecosystem management, and
to allow municipalities and schools to gain long-term revenues from properly
managed forests.
The Governor’s Land Use
Leadership Council stated that the land resource-based industries, including
forestry, are critical components of
FISCAL/ECONOMIC IMPACT
Revenue
or budgetary implications to the:
Budgetary:
None.
Revenue:
None.
Comments:
None.
Budgetary:
None.
Revenue:
Reduction of properly managed forests will have a
negative impact on the timber industry, which will have an indirect impact on
the State’s economy and revenues. Impact unknown.
Comments:
A potential loss of 82,000 acres from forest
management activities would decrease the amount of timber available in the
market that supports current forest product users.
Comments:
Municipalities and public schools that no longer use
this land for forestry purposes will loose the opportunity for long-term
revenues from sustainable forest management activities.
OTHER
STATE DEPARTMENTS
Unknown.
ANY OTHER
PERTINENT INFORMATION
None.
ADMINISTRATIVE RULES IMPACT
Rules not
necessary to administer this Act.
_______________________________
Rebecca A. Humphries
Director
_______________________________
Date
FMFM/OLAF/BSS
