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HB 4011

Property: conveyance of state property; transfer of certain state-owned property in Arenac County; provide for. Creates land transfer act.

2025-2026 Regular Session Introduced by Brian BeGole and 12 co-sponsors

authorize the state to convey or transfer about 118 acres of former Standish correctional facility land in Arenac County to eligible buyers or entities, with terms set and managed

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT
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Bill Summary · HB 4011

HB 4011 — Conveyance / Transfer of State Property (Arenac County) — Summary

Status: Referred to Committee on Local Government (introduced March 6, 2025)
Primary subject: Authorization for state conveyance/transfer of former Standish correctional facility property in Arenac County; creates a land transfer framework.

Purpose / Intent

Authorize the Department of Technology, Management, and Budget (DTMB), on behalf of the State, to convey or transfer roughly 118 acres of state-owned real property in Arenac County (the former Standish Maximum Correctional Facility) that is under Department of Corrections jurisdiction, and to prescribe methods, conditions, and reporting/procedure for disposal and use of proceeds.

Property

  • Two parcels totaling approximately 118 acres (Parcel A ≈ 39.89 acres; Parcel B ≈ 78.08 acres).
  • Property formerly hosted the Standish Maximum Correctional Facility (closed 2009).
  • Legal descriptions may be adjusted for surveys or refinements prior to conveyance.

Key Provisions

  • Authorization: DTMB may convey or transfer all or portions of the described property by quitclaim deed or by affidavit of jurisdictional transfer (as applicable).
  • Approval required: Any conveyance/transfer and its terms must be approved by the State Administrative Board; the Attorney General must approve legal form of deeds/transfers.
  • Methods of disposition (DTMB may choose any of the following):
    • Publicly disclosed competitive sale to realize fair market value (FMV).
    • Sale to one or more local units of government for FMV.
    • Transfer to the State Land Bank (Land Bank Fast Track Authority).
    • Jurisdictional transfer to another state agency (may be with or without consideration; executed by affidavit rather than deed).
    • Exchange/trade for other real property of reasonably equal value.
    • Sale to local units of government for less than FMV subject to detailed conditions (see below).
  • Conditions for sale below FMV to local governments:
    • DTMB must notify local units; first unit to respond by registered mail gets first opportunity.
    • Purchasing local unit must execute purchase agreement within 60 days and close within 180 days (DTMB may extend).
    • Property must be used exclusively for defined public uses (government admin, correctional, law enforcement, emergency response, public education/transportation/parks/public health, wildlife conservation/restoration, etc.). For‑profit or closed uses are excluded.
    • If the local unit later intends to convey the property, it must first offer it back to the state at the original sale price.
    • The Attorney General may bring a quiet-title action if purchaser/successor contests the state’s reentry rights and fails to yield possession when required.
    • DTMB may require reimbursement of demonstrable costs it incurred preparing the property for conveyance.

Financial / Fiscal Effects

  • Net proceeds (sale revenue less DTMB’s conveyance-related costs) are deposited into the state general fund.
  • State savings from transferring maintenance/upkeep/security responsibilities once conveyed; the Department of Corrections remains responsible for maintenance until conveyance.
  • No appraisal/value was attached in the available analysis; revenues will depend on chosen method and market conditions.
  • Some drafts (analyses) attach additional provisions (e.g., treatment of mineral rights or revenue-sharing if minerals developed) — treatment may vary by version.

Who is affected

  • State: DTMB, Department of Corrections, State Administrative Board, Attorney General, State Land Bank.
  • Local governments in Arenac County (City of Standish, county, school districts, etc.) — potential purchasers and users.
  • Potential private purchasers (if sold at FMV) and any successors.
  • General fund (receives net sale proceeds).

Procedure / Timeline elements

  • Conveyance contingent on State Administrative Board approval and required legal review.
  • If sold below FMV to a local unit, purchaser must enter purchase agreement within 60 days and complete the conveyance within 180 days (unless extended).
  • Legal descriptions may be refined by survey before closing.

Note: Multiple bills in other jurisdictions share the number “HB 4011” (different topics); this summary addresses the version that authorizes conveyance/transfer of state property in Arenac County (Standish facility).

Compiled from official sources — confirm details with the bill’s official record.

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