December 4, 2014, Introduced by Rep. LaFontaine and referred to the Committee on Natural Resources.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending sections 35 and 35a of article
IX, to modify the accumulated principal limitations of the Michigan
natural resources trust fund and the Michigan state parks endowment
fund and to provide for the allowable uses of those funds.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to modify the accumulated principal
limitations of the Michigan natural resources trust fund and the
Michigan state parks endowment fund and to provide for the
allowable uses of those funds, is proposed, agreed to, and
submitted to the people of the state:
ARTICLE IX
Sec. 35. There is hereby established the Michigan natural
resources trust fund. 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, except such revenues
accruing under leases of state owned lands acquired with money from
state or federal game and fish protection funds or revenues
accruing from lands purchased with such revenues. The trust fund
may receive appropriations, money, or other things of value. The
assets of the trust fund shall be invested as provided by law.
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
otherwise dedicated to the trust fund that are received by the
state each state fiscal year shall be deposited into the Michigan
state
parks and recreation 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 percent of the total revenues
from bonuses, rentals, delayed rentals, and royalties described in
this section otherwise dedicated to the trust fund that are
received by the state each state fiscal year shall be deposited
into
the Michigan state parks and
recreation endowment fund.
The amount accumulated in the trust fund in any state fiscal
year shall not exceed $500,000,000.00, exclusive of interest and
earnings and amounts authorized for expenditure pursuant to this
section as this amount is adjusted pursuant to the most
comprehensive index of consumer prices available for the Detroit
area from the United States department of labor, bureau of labor
statistics or successor agency. When the accumulated principal of
the trust fund reaches $500,000,000.00, all revenue from bonuses,
rentals, delayed rentals, and royalties described in this section
that would be received by the trust fund but for this limitation
shall
be deposited into the Michigan state parks and recreation
endowment
fund. until the Michigan state parks endowment fund
reaches
an accumulated principal of $800,000,000.00. When the
Michigan
state parks endowment fund reaches an accumulated
principal
of $800,000,000.00, all revenues from bonuses, rentals,
delayed
rentals, and royalties described in this section shall be
distributed
as provided by law.
The interest and earnings of the trust fund shall be expended
for 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, for the development of public recreation
facilities, and for the administration of the trust fund, which may
include payments in lieu of taxes on state owned land purchased
through the trust fund. The trust fund may provide grants to units
of local government or public authorities which shall be used for
the purposes of this section. The legislature shall provide that a
portion of the cost of a project funded by such grants be provided
by the local unit of government or public authority.
Until the trust fund reaches an accumulated principal of
$500,000,000.00, the legislature may provide, in addition to the
expenditure of interest and earnings authorized by this section,
that a portion, not to exceed 33-1/3 percent, of the revenues from
bonuses, rentals, delayed rentals, and royalties described in this
section received by the trust fund during each state fiscal year
may be expended during subsequent state fiscal years for the
purposes of this section.
Not less than 25 percent 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 less than 25 percent 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.
The legislature shall provide by law for the establishment of
a trust fund board within the department of natural resources. The
trust fund board shall recommend the projects to be funded. The
board shall submit its recommendations to the governor who shall
submit the board's recommendations to the legislature in an
appropriations bill.
The legislature shall provide by law for the implementation of
this section.
Sec.
35a. There is hereby established the Michigan state parks
and recreation endowment fund. The endowment fund shall consist of
revenues as provided in section 35 of this article, and as provided
by law. The endowment fund may also receive private contributions
of
money or other things of value. All money in the Genevieve
Gillette
state parks endowment fund shall be transferred to the
endowment
fund. The assets of the endowment
fund shall be invested
as provided by law.
The
accumulated principal of the endowment fund shall not
exceed
$800,000,000.00, which amount shall be annually adjusted
pursuant
to the rate of inflation beginning when the endowment fund
reaches
$800,000,000.00. This annually adjusted figure is the
accumulated
principal limit of the endowment fund.
Money
available for expenditure from the endowment fund as
provided
in this section shall be expended for operations,
maintenance,
and capital improvements at Michigan state parks and
for
the acquisition of land or rights in land for Michigan state
parks.
Money
in the endowment fund, shall be expended as follows:
(1)
Until the endowment fund reaches an accumulated principal
of
$800,000,000.00, each state fiscal year the legislature may
appropriate
not more than 50 percent of including
the money
received under section 35 of this article plus interest and
earnings and any private contributions or other revenue to the
endowment
fund, .shall
be expended as follows:
(1) Not more than 50 percent for operations, maintenance,
capital improvements, and acquisition of land for Michigan state
parks.
(2) Not more than 25 percent for infrastructure renovation and
capital improvements on publicly owned recreation land.
(3) Not more than 25 percent shall be reinvested in the corpus
of the endowment fund.
(2)
Once the accumulated principal in the endowment fund
reaches
$800,000,000.00, only the interest and earnings of the
endowment
fund in excess of the amount necessary to maintain the
endowment
fund's accumulated principal limit may be made available
for
expenditure.
Unexpended appropriations of the endowment fund from any state
fiscal year as authorized by this section may be carried forward or
may be appropriated as determined by the legislature for purposes
of this section.
The legislature shall provide by law for implementation of
this section.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at the next general election
in the manner provided by law.