2003 House Bill 5313 / 2004 Public Act 377

Allow schools to sell land given by state

Introduced in the House

Nov. 13, 2003

Introduced by Rep. Mike Pumford (R-100)

To revoke the reversion clauses in all tax-reverted land conveyed by the state to school districts and certain land conveyed to local governments, which would allow these entities to sell the land. The reversion clause provides that if the land is not being used for public purposes, ownership reverts to the state. Proceeds from any resulting land sales be divided equally between the state and the selling entity, with the state's portion to be divided between the school aid fund, the state agricultural preservation fund, and a new fund for annual payments in lieu of property taxes (PILT) made by the state to local governments on state-owned land. Reportedly, 82,000 acres have come into government possession as tax-reverted property.

Referred to the Committee on Conservation and Outdoor Recreation

April 21, 2004

Reported without amendment

With the recommendation that the amendment be adopted and that the bill then pass.

May 4, 2004

Amendment offered

The amendment passed by voice vote

Substitute offered by Rep. Mike Pumford (R-100)

To replace the previous version of the bill with one that excludes the sale of "prime land," which among other things is defined as land that provides access to a public body of water. The substitute also revises other details that do not change its substance as previously described.

The substitute passed by voice vote

Amendment offered by Reps. Sandy Caul (R-99) and Gretchen Whitmer (D-69)

To require that the state's share of revenues from the proposed land sales go first to a fund to pay for future fire protection grants to local governments that have state-owned facilities, and only be used for the other proposed purposes when this is fully funded.

The amendment passed by voice vote

Passed in the House 101 to 5 (details)

To revoke the reversion clauses in most tax-reverted land conveyed by the state to school districts and certain land conveyed to local governments, which would allow these entities to sell the land. The reversion clause provides that if the land is not being used for public purposes, ownership reverts to the state. The bill would divide proceeds from any resulting land sales equally between the state and the selling entity. The state's portion would go first to a fund to pay for future fire protection grants to local governments that have state-owned facilities, and only be used for the other proposed purposes when this is fully funded. The balance would be divided between the school aid fund, the state agricultural preservation fund, and a new fund for annual payments in lieu of property taxes (PILT) made by the state to local governments on state-owned land. The bill would affect 75,272 acres came into government possession as tax-reverted property, but would not apply to waterfront property.

Received in the Senate

May 5, 2004

Referred to the Committee on Appropriations

Sept. 9, 2004

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises the distribution formula of the state's portion of land sale proceeds. See Senate-passed version for details.

The substitute passed by voice vote

Passed in the Senate 34 to 0 (details)

To revoke the reversion clauses in most tax-reverted land conveyed by the state to school districts, local governments and other public authorities, which would allow these entities to sell the land. The reversion clause provides that if the land is not being used for public purposes, ownership reverts to the state. The bill would divide proceeds from any resulting land sales equally between the state and the selling entity. The first $18 million of state's portion would go to the general fund, and after that could be used to pay local governments for fire protection services provided to state buildings. The bill would affect 75,272 acres came into government possession as tax-reverted property, but would not apply to waterfront property.

Received in the House

Sept. 9, 2004

Sept. 15, 2004

Failed in the House 0 to 102 (details)

To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received in the Senate

Sept. 21, 2004

Received in the House

Sept. 22, 2004

Sept. 29, 2004

Passed in the House 102 to 2 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee. This would sunset the bill in four years, and it removes a prohibition on selling land that is within 500 feet of water. Sales of land that provides access to a public body of water would be prohibited.

In the Senate

Sept. 30, 2004

Passed in the Senate 33 to 4 (details)

Signed by Gov. Jennifer Granholm

Oct. 12, 2004