State of Michigan
JENNIFER M. GRANHOLM governor	DEPARTMENT OF NATURAL RESOURCES Lansing	K. L. COOL director

BILL ANALYSIS

BILL NUMBER: HB 5649

TOPIC: Places a priority on acquiring severed mineral rights with the

Michigan Natural Resources Trust Fund.

SPONSOR: Representative Matthew Gillard

CO-SPONSORS: F. Accavitti, Jr., Byrum, Tobocman, Bieda, Lipsey, Hood III, Vagnozzi, Meisner, McConico, Hopgood, Smith, Condino, Law, Rivit, Dennis, Kolb, Farrah, Plakas, Woodward, Adamini, Gleason

COMMITTEE: Conservation and Outdoor Recreation

Analysis Done: April 15, 2004

POSITION

The Department opposes the bill.

PROBLEM/BACKGROUND

The bill would require a priority for reuniting mineral rights severed from State lands.

DESCRIPTION OF BILL

The bill would require that the Michigan Natural Resources Trust Fund (MNRTF) Board give priority to the purchase of severed mineral rights to State land if the Board determines that the land provides recreation uses or should be protected because of the environmental importance or scenic beauty and the use of the lands would be adversely affected by the exploration or production of subsurface minerals. The bill also requires that the Department annually assess potential opportunities to acquire severed mineral rights meeting these conditions and, if opportunities exist, shall include those acquisitions in an application for funding from the MNRTF.

SUMMARY OF ARGUMENTS

Pro

Would create a mechanism to recombine mineral rights severed from State-owned lands.

Con

• Would restrict the ability of the MNRTF Board to select projects by requiring a priority on a certain type of project.
• May impact their ability to select projects, both local and State, that may have greater resource or recreation value.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a) Department

Budgetary:

None.

Revenue:

None.

Comments:

May reduce the ability of the Department to receive MNRTF grants for projects that may have a higher recreation or resource protection value.

(b) State

Budgetary:

None.

Revenue:

None.

Comments:

None.

(c) Local Government

Comments:

May reduce the ability of the MNRTF Board to award grants to local units of government.

OTHER STATE DEPARTMENTS

None that we are aware of.

ANY OTHER PERTINENT INFORMATION

None.

ADMINISTRATIVE RULES IMPACT

None.

_______________________________

Rebecca A. Humphries

Director

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Date

GCCS/FMFM