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SB-26, As Passed Senate, June 3, 2026
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SENATE BILL NO. 26
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 52706 (MCL 324.52706), as amended by 2012 PA
488.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 52706. (1) The department, the department of treasury, or 1
a state officer having charge of state land, may sell homestead, 2
tax, swamp, or primary school land to a public agency for a 3
forestry or recreational purpose, or both, at a price set by the 4
department, the department of treasury, or the state officer. 5
January 23, 2025, Introduced by Senator KLINEFELT and referred to Committee on
Transportation and Infrastructure.
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However, the amount of land sold shall must not exceed the amount 1
that may be necessary for the public agency, and any land that is 2
sold shall must be suitable for and used for a forestry or 3
recreational purpose, or both, unless conveyed as provided in this 4
section. Land sold to a public agency under this section or section 5
6 of former 1931 PA 217 shall must be used only for a forestry or 6
recreational purpose, or both, if the land is prime land. When the 7
prime land is no longer used for a forestry or recreational 8
purpose, or both, the land shall must revert to this state. 9
(2) Except as provided in subsection (6), the department shall 10
relinquish a reversionary interest in municipal forestland, 11
conveyed to a public agency under this section or section 6 of 12
former 1931 PA 217 before October 12, 2004, within not later than 13
90 days after the department receives, on a form prescribed by the 14
department, a written request for relinquishment from the public 15
agency that owns the municipal forestland subject to the 16
reversionary interest. The department shall relinquish its 17
reversionary interest by an instrument approved by the department 18
of attorney general and recorded by the department with the 19
register of deeds of the county where the municipal forestland is 20
located. The instrument shall must include provisions implementing 21
subsections (3) through to (8). The department may charge the 22
public agency an amount equal to the charge for recording the 23
release. 24
(3) A public agency to which a reversionary interest was 25
relinquished under subsection (2) shall not convey the municipal 26
forestland formerly subject to the reversionary interest unless the 27
conveyance is approved by the department. 28
(4) Subject to subsection (5), a public agency to which a 29
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reversionary interest was relinquished under subsection (2) and any 1
public agency that is a successor in interest shall not convey the 2
municipal forestland formerly subject to the reversionary interest, 3
or any part thereof, of the municipal forestland, unless the 4
conveyance is to a public agency for $1.00 or to a public agency or 5
any other person for fair market value. If the conveyance is to a 6
public agency for $1.00, the deed shall must recite "MCL 324.52706 7
requires an accounting and specifies how proceeds are to be 8
distributed when the property is subsequently conveyed for fair 9
market value.". If the conveyance is to a public agency or any 10
other person for fair market value, the public agency conveying the 11
property shall must have an accounting taken, shall retain 50% of 12
the proceeds, and shall submit the remaining 50% of the proceeds to 13
the department of treasury for deposit as follows: 14
(a) The first $18,000,000.00 in total proceeds from all such 15
conveyances shall be deposited in into the general fund. 16
(b) Any proceeds in excess of $18,000,000.00 shall be 17
deposited in the fire protection fund created in section 732a of 18
the Michigan vehicle code, 1949 PA 300, MCL 257.732a. 19
(5) Once When the municipal forestland or part thereof of the 20
municipal forestland formerly subject to a reversionary interest is 21
conveyed for fair market value and an accounting is taken and the 22
proceeds are distributed as provided under subsection (4), 23
subsection (4) does not apply to subsequent conveyances of that 24
municipal forestland or part thereof, of the municipal forestland, 25
respectively. 26
(6) Subsection (2) does not apply to prime land. 27
(7) A public agency to which a reversionary interest is 28
relinquished under subsection (2) shall not convey the municipal 29
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forestland formerly subject to the reversionary interest to a third 1
person unless the public agency has conducted a public hearing on 2
the proposed conveyance. The public agency may conduct a second 3
public hearing on the proposed conveyance if the public agency 4
determines that a second public hearing may be necessary. Notice of 5
a public hearing under this subsection shall must be published at 6
least twice 2 times in a newspaper of general circulation in the 7
county or counties where the municipal forestland is located, not 8
more than 28 or less than 7 days before the hearing. The notice 9
shall must describe where the municipal forestland is located, 10
specify the approximate size of the municipal forestland, describe 11
its current use, and identify the person to whom the municipal 12
forestland is proposed to be sold, if known. The public agency 13
shall provide a copy of the notice to the director of the 14
department not less than 7 days before the hearing. 15
(8) The requirements of subsection (7) do not relieve the 16
public agency of any notice, hearing, or other requirements imposed 17
by any other law. 18
(9) If municipal forestland was conveyed to a public agency 19
under this section or section 6 of former 1931 PA 217 and the 20
municipal forestland is subsequently conveyed by the public agency 21
to the department, then, for purposes of subparts 13 and 14 of part 22
21, the municipal forestland shall must not be considered to have 23
been reacquired by the department on or after January 1, 1933 for 24
natural resource purposes unless the municipal forestland was 25
originally acquired by the department on or after January 1, 1933 26
for natural resource purposes. 27
(10) As used in this section: 28
(a) "Basal area" means the sum of the cross-sectional area of 29
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trees 4 inches or greater in diameter measured at 4.5 feet from the 1
highest ground at the base of each tree. 2
(b) "Municipal forestland" means homestead, tax, swamp, or 3
primary school land sold to a public agency under this section or 4
section 6 of former 1931 PA 217 for a forestry or recreational 5
purpose, or both. 6
(c) "Prime land" means municipal forestland that meets 1 or 7
more of the following requirements: 8
(i) Is within a boundary of a program administered by the 9
department. 10
(ii) Provides access to a public body of water. 11
(iii) Is not less than 121 acres in size and, at any time during 12
the preceding 10 years, had a basal area of not less than 90 square 13
feet per acre. 14
(d) "Public agency" means a school district, public 15
educational institution, governmental unit of this state or agency 16
of this state, or a municipality. 17
(e) "Recreational purpose" includes any motorized or 18
nonmotorized recreational activity. 19
(11) The use in this section of the phrase "this section or 20
section 6 of former 1931 PA 217" does not imply that the term "this 21
section" as used elsewhere in this act does not include the 22
relevant section as it existed in former law codified in this act. 23
Enacting section 1. This amendatory act takes effect 90 days 24
after the date it is enacted into law. 25