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HB-4724, As Passed Senate, July 3, 2026
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HOUSE BILL NO. 4724
A bill to authorize the state administrative board to convey
state-owned real property in Kent County; to prescribe conditions
for the conveyance; to provide for powers and duties of state
departments regarding the property; and to provide for disposition
of the revenue from the conveyance.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) The state administrative board, on behalf of this 1
state, may convey by quitclaim deed or affidavit of jurisdictional 2
transfer all or portions of state-owned property now under the 3
jurisdiction of the department of state police, located at 345 4
July 01, 2025, Introduced by Reps. Posthumus, Morgan, Fitzgerald, Johnsen, Rigas, Meerman,
Skaggs, Grant, Wooden, Glanville and Outman and referred to Committee on Appropriations.
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Northland Drive, NE, city of Rockford, county of Kent, Michigan, 1
which is further described as follows: 2
Lots 73, 74, 87, and 88 of the Wolverine Addition to the city 3
of Rockford according to the recorded plat thereof, consisting of 4
approximately 0.586 acre in area, more or less, and subject to any 5
easements, rights-of-way, or other restrictions of record. 6
(2) The property description in subsection (1) is approximate 7
and subject to possible adjustment by a professional survey 8
conducted or otherwise approved by the department of technology, 9
management, and budget. 10
(3) The property to be conveyed or transferred under this act 11
includes all improvements on the property and all surplus, salvage, 12
and scrap property or equipment remaining on the property on the 13
date of the conveyance. 14
(4) The department of state police is responsible for all due 15
diligence duties and expenses required for prudently and properly 16
maintaining the property until the time of the conveyance or 17
jurisdictional transfer under this act. 18
(5) The department of attorney general shall approve as to 19
legal form a deed or affidavit of jurisdictional transfer 20
authorized by this act. 21
(6) The fair market value of property conveyed under this act 22
must be determined as needed to facilitate a fair market value 23
conveyance by an independent fee appraisal prepared for the 24
department of technology, management, and budget or by an appraiser 25
employed by this state. 26
(7) The department of technology, management, and budget may 27
take the necessary steps to convey the property described in 28
subsection (1) using any of the following measures: 29
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(a) A publicly disclosed competitive method of sale, selected 1
to realize the fair market value to this state, as determined by 2
the department of technology, management, and budget. 3
(b) Offering the property for sale for fair market value to a 4
local unit or units of government. 5
(c) Transferring the property, with or without consideration, 6
through jurisdictional transfer to another executive branch agency 7
or this state. A property transfer under this subdivision must be 8
by an affidavit of jurisdictional transfer in recordable form, not 9
by quitclaim deed. 10
(d) Trading some or all the property for other real property 11
if the other real property is deemed by the department of 12
technology, management, and budget to be of reasonably equal value 13
to this state. 14
(e) Offering the property for sale for less than fair market 15
value to the local units of government in which the property is 16
located, subject to all of the following: 17
(i) The department of technology, management, and budget may 18
provide notice to each local unit of government of the surplus real 19
property's availability. The first local unit of government to make 20
an offer to purchase the property via registered mail must be given 21
the first opportunity to purchase the property. If an offer is 22
accepted by the department of technology, management, and budget, 23
the local unit of government shall enter into a purchase agreement 24
not later than 60 days after making the offer and complete the 25
conveyance not later than 180 days after the date of the offer. The 26
department of technology, management, and budget may extend the 27
period to complete the conveyance as needed. If there are competing 28
offers from local units of government, the department of 29
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technology, management, and budget shall make a determination as to 1
what is in the best interests of this state in determining to whom 2
to convey the property. 3
(ii) The property must be used exclusively for public use for 4
30 years after the conveyance. If any fee, term, or condition for 5
the use of the property is imposed on members of the public, or if 6
any of those fees, terms, or conditions are waived for use of the 7
property, all members of the public must be subject to the same 8
fees, terms, conditions, and waivers. The public use restriction 9
must be included in the deed. 10
(iii) If the local unit of government intends to further convey 11
the property within 30 years after the conveyance, the unit must 12
first offer the property for sale, in writing, to this state, which 13
may purchase the property at the original sale price. This state 14
has 120 days to consider reacquiring the property. If this state 15
agrees to reacquire the property, this state is not liable to any 16
person for improvements to or liens placed on the property. If this 17
state declines to reacquire the property, the public use 18
restrictions described in subparagraph (ii) remain in effect. 19
(iv) If the property is conveyed for less than fair market 20
value under this subdivision and if the local unit of government 21
retains the property for 30 years after the date of the conveyance 22
this state, the public use restriction automatically terminates 23
subject to the restrictions in subsection (12). 24
(v) If the local unit of government or its successor disputes 25
this state's exercise of its right of reentry and fails to promptly 26
deliver possession of the property to this state, the attorney 27
general, on behalf of this state, may bring an action to quiet 28
title to, and regain possession of, the property. 29
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(vi) If this state reenters and repossesses the property under 1
subparagraph (v), this state is not liable to reimburse any person 2
for any improvements made on the property nor to compensate any 3
person for any part of an unfulfilled contract or license issued 4
for the provision of goods or services on or for the property. 5
(vii) The department of technology, management, and budget may 6
require the local unit of government to reimburse this state at 7
closing for this state's demonstrably incurred costs as were 8
necessary to prepare the property for conveyance. 9
(8) The net revenue received from the sale of property under 10
this section must be deposited in the state treasury and credited 11
to the general fund. 12
(9) The department of technology, management, and budget may 13
require a grantee of property conveyed or transferred under this 14
act to record the instrument of conveyance or affidavit of 15
jurisdictional transfer with the Kent County register of deeds and 16
provide the department with a recorded copy of the recorded 17
instrument as a condition of closing. 18
(10) This state shall not reserve oil, gas, or mineral rights 19
to property conveyed under this act. However, the conveyance 20
instrument authorized under this act must provide that, if the 21
purchaser or any grantee develops any oil, gas, or minerals found 22
on, within, or under the conveyed property, the purchaser or any 23
grantee must pay this state 1/2 of the gross revenue generated from 24
the development of the oil, gas, or minerals. This payment must be 25
deposited in the general fund. 26
(11) This state reserves all aboriginal antiquities, including 27
mounds, earthworks, forts, burial and village sites, mines, or 28
other relics lying on, within, or under the property with power to 29
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this state and all others acting under its authority to enter the 1
property for any purpose related to exploring, excavating, and 2
taking away the aboriginal antiquities. 3
(12) If property conveyed under this act was officially 4
designated or used by this state as a historical monument, 5
memorial, park, or protected wildlife habitat area, it must be 6
maintained and protected for that purpose in perpetuity in 7
accordance with applicable law. 8
(13) If property conveyed under this act is used for any 9
purpose that is inconsistent with a restriction under subsection 10
(7)(e)(ii), (10), (11), or (12), the state may reenter and repossess 11
the property, terminating the grantee's or successor's estate in 12
the property. 13
(14) As used this section: 14
(a) "Fair market value" means the highest estimated price the 15
property will bring if offered for sale on the open market, 16
allowing a reasonable time to find a purchaser who would buy with 17
knowledge of the property's possible uses. 18
(b) "Local unit of government" means the township, village, 19
city, county, school district, intermediate school district, or 20
community college district in which the property is located. 21
(c) "Net revenue" means the proceeds from the sale of the 22
property less reimbursement for any costs to the department of 23
technology, management, and budget associated with the sale of 24
property, including, but not limited to, administrative costs, 25
including employee wages, salaries, and benefits; costs of reports 26
and studies and other materials necessary to the preparation of 27
sale; costs of environmental remediation; legal fees; and the cost 28
of any litigation related to the conveyance of the property. 29
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(d) "Public use" means, subject to subdivision (e), actual use 1
of the property by members of the public or actual use by the unit 2
of local government for any of the following: 3
(i) General government administration. 4
(ii) Publicly owned and operated correctional facilities. 5
(iii) Law enforcement purposes. 6
(iv) Emergency management response purposes. 7
(v) Public educational use. 8
(vi) Public transportation. 9
(vii) Public parks and recreational areas. 10
(viii) Public health uses. 11
(ix) Wildlife conservation or restoration. 12
(e) Public use does not include use by a for-profit enterprise 13
or any use that is closed to the public. 14