Bill
SB 26
SB 26 eliminates the statutory requirement that excess proceeds from municipal forestland conveyances be deposited into the Fire Protection Fund.
Status
- Bill number: SB 26
- Title: Traffic control: driver license; reference to fire protection fund in the natural resources and environmental protection act; remove. (Amends MCL 324.52706)
- Sponsor (introduced): Senator Veronica Klinefelt
- Introduced: August 15, 2025
- Current referral: Committee on Transportation and Infrastructure
- Proposed effective date (per bill): takes effect 90 days after enactment
Purpose / intent
- To amend section 52706 of the Natural Resources and Environmental Protection Act (1994 PA 451; MCL 324.52706) by removing the statutory reference directing that proceeds in excess of a specified threshold from certain conveyances of municipal forestland be deposited into the “fire protection fund” (see MCL 257.732a). In short: eliminate the current statutory requirement that excess sale proceeds be deposited into the Fire Protection Fund.
Key provisions and how they change current law
- Current statute (MCL 324.52706(4)(b), as shown in the bill text) requires that when municipal forestland formerly subject to a reversionary interest is conveyed for fair market value, the conveying public agency must:
- retain 50% of the proceeds; and
- submit the remaining 50% to the Department of Treasury, with the first $18,000,000 deposited into the State General Fund and any proceeds in excess of $18,000,000 deposited in the Fire Protection Fund (MCL 257.732a).
- SB 26 removes the reference to the Fire Protection Fund. That eliminates the explicit statutory direction that proceeds above the $18 million threshold be deposited into that fund.
- The rest of MCL 324.52706 (procedures on reversionary-interest relinquishment, public hearing requirements, definitions of “municipal forestland,” “prime land,” etc.) remain scoped by the section; SB 26 targets only the distribution destination language involving the Fire Protection Fund.
Who would be affected
- Public agencies (school districts, municipalities, state agencies) that sell or convey municipal forestland formerly subject to reversionary interests — because the statutory distribution of proceeds from such sales would change.
- Department of Natural Resources and Department of Treasury — administrative and accounting processes for handling proceeds could change.
- The Michigan Fire Protection Fund and its beneficiaries — potential loss of the dedicated stream of revenue from these conveyances (to the extent that SB 26 removes that statutory allocation).
- Local communities and stakeholders involved in municipal forestland transactions (e.g., buyers, taxpayers, conservation and recreation interests).
Procedural / timeline notes
- Introduced Aug 15, 2025 and referred to the Senate Committee on Transportation and Infrastructure. Standard next steps: committee hearing(s), possible amendments, committee vote, then floor consideration. If enacted, the bill specifies a 90‑day delay before taking effect.
Potential fiscal and policy impacts (high level)
- Fiscal impact: Removing the statutory channel to the Fire Protection Fund would reduce (or eliminate) that explicit revenue source. The bill as drafted does not specify an alternative destination for proceeds above $18 million; absent a replacement provision, disposition of excess funds could default to other statutory rules or require Treasury/administrative interpretation. The net effect on the General Fund, the Fire Protection Fund, and local budgets is therefore uncertain and would depend on subsequent statutory language or administrative practice.
- Policy impact: By changing the statutory allocation, the bill may alter incentives or planning for public agencies contemplating sales of municipal forestland and could affect funding available for fire protection services financed via the referenced fund.
Notes / recommendation for reviewers
- Review fiscal estimates showing historical proceeds from such conveyances to assess potential revenue impact to the Fire Protection Fund and the General Fund.
- If the intent is to redirect or retain proceeds elsewhere, consider including explicit destination language to avoid administrative ambiguity.
- Evaluate whether the change affects other statutory programs that assume deposits to the Fire Protection Fund.
Compiled from official sources — confirm details with the bill’s official record.
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