Summary — HB 4694 (Substitute H-1): Recreational Authorities Act — Revisions to add public forests and expand powers
Status & timeline
- Introduced: March 12, 2025 (Rep. Gregory Markkanen).
- House action: Substitute (H‑1) adopted; passed House Sept. 18, 2025 (Yeas 96, Nays 2) with immediate effect; transmitted Sept. 22, 2025 and referred to Committee on Local Government.
- Tie-bar: HB 4695 (definitions / rename to “Recreational and Natural Resources Authority Act”) and HB 4798 (adds recreational authority to Part 19 NREPA / Natural Resources Trust Fund eligibility).
Purpose and intent
- Amend Michigan’s Recreational Authorities Act (2000 PA 321) to (1) permit single municipalities or districts to form recreational authorities, (2) add “public forest and natural resources area” as an authorized purpose, and (3) broaden authorities’ powers, governance options, and funding/financial authorities.
Key provisions and changes
- Formation and purpose
- One or more municipalities/districts (not just two or more) may establish an authority.
- Explicitly adds “public forest and natural resources area” to permissible authority purposes.
- Defines permitted uses of such areas: recreational facilities and trails (including ORV, snowmobile, bicycle, bridle), open/scenic space, conservation/wildlife/nature areas, forestry/natural-resources management, cultural/historical resource protection, and existing park uses.
Articles of incorporation / governance
- Required contents expanded to include process for designating authority‑owned property as a public forest and natural resources area.
- Clarifies amendment procedures: if articles lack an amendment voting rule, amendments may follow the same voting used to adopt articles.
- Articles may include activity restrictions, dissolution allocation among participating municipalities, election partisan/nonpartisan designation, and payments‑in‑lieu‑of‑taxes (PILOT) provisions for forests/resources areas.
- Boards may form advisory committees and volunteer subcommittees; appointed members removable for cause after a public hearing.
Powers and finance
- Extends existing fiscal tools for authorities to apply to public forests/resources areas: ability to levy up to 1 mill (current law—typically up to 20 years), borrow money, and issue bonds for authorized activities.
- New operational powers: sell/lease/develop authority property; create endowments/supporting funds; make/enforce property use rules (subject to law); manage sustainable commercial natural resource activities including sustainable commercial forestry and sale of carbon or environmental credits/tax attributes; manage/maintain property not owned by the authority; construct/repair improvements; and sue/be sued.
- Allows PILOTs distributed to taxing units based on portion of area in each taxing unit and that unit’s millage rate (excluding school operating millage under section 1211 of the Revised School Code).
Natural Resources Trust Fund eligibility
- HB 4798 (tie‑bar) would treat recreational authorities as a “local unit of government or public authority” under Part 19 of NREPA, making them eligible for Michigan Natural Resources Trust Fund grants (subject to Part 19 rules).
Who would be affected
- Municipalities, counties, school districts, and other districts that form or join authorities.
- Local taxpayers in participating territories (due to millage authorizations and PILOT arrangements).
- Recreational authorities (existing and future) — expanded operational, finance, and commercial activity authorities.
- Natural Resources Trust Fund applicants (if HB 4798 becomes law) — new eligible entity type.
- Local taxing units where public forests/resources areas are located (PILOT distribution).
Procedural notes / requirements
- Articles must be adopted by a majority of each participating municipality’s legislative body, published in local newspaper prior to adoption, and filed with the Secretary of State to take effect.
- A municipality may not withdraw from an authority during an authorized tax period.
- Tax levies to support authorities require approval by electors as specified in section 11 (existing tax‑vote procedures remain applicable).
Practical impact
- The bill modernizes and expands the scope of recreational authorities to include larger, multi‑use natural resource areas and permits authorities to undertake commercial, revenue‑generating activities (e.g., sustainable forestry, environmental credit sales). It creates additional governance flexibility for single municipalities and clarifies financial and operational authorities, while providing mechanisms (PILOTs) to address local tax impacts.
