Property: conveyance of state property; transfer of certain state-owned property in Kent County; provide for, the official text

Act No. 81

Public Acts of 2026

Approved by the Governor

July 21, 2026

Filed with the Secretary of State

July 27, 2026

EFFECTIVE
DATE: July 27, 2026

state of michigan

103rd Legislature

Regular session of 2026

Introduced by Reps. Posthumus, Morgan, Fitzgerald,
Johnsen, Rigas, Meerman, Skaggs, Grant, Wooden, Glanville and Outman

ENROLLED HOUSE BILL No. 4724

AN ACT to authorize the state
administrative board to convey state-owned real property in Kent County; to
prescribe conditions for the conveyance; to provide for powers and duties of
state departments regarding the property; and to provide for disposition of the
revenue from the conveyance.

The People of the State of
Michigan enact:

Sec. 1. (1) The state administrative board, on
behalf of this state, may convey by quitclaim deed or affidavit of
jurisdictional transfer all or portions of state-owned property now under the
jurisdiction of the department of state police, located at 345 Northland Drive,
NE, city of Rockford, county of Kent, Michigan, which is further described as
follows:

Lots 73, 74, 87, and 88
of the Wolverine Addition to the city of Rockford according to the recorded
plat thereof, consisting of approximately 0.586 acre in area, more or less, and
subject to any easements, rights-of-way, or other restrictions of record.

(2) The property
description in subsection (1) is approximate and subject to possible adjustment
by a professional survey conducted or otherwise approved by the department of
technology, management, and budget.

(3) The property to be
conveyed or transferred under this act includes all improvements on the
property and all surplus, salvage, and scrap property or equipment remaining on
the property on the date of the conveyance.

(4) The department of
state police is responsible for all due diligence duties and expenses required
for prudently and properly maintaining the property until the time of the
conveyance or jurisdictional transfer under this act.

(5) The department of
attorney general shall approve as to legal form a deed or affidavit of
jurisdictional transfer authorized by this act.

(6) The fair market value
of property conveyed under this act must be determined as needed to facilitate
a fair market value conveyance by an independent fee appraisal prepared for the
department of technology, management, and budget or by an appraiser employed by
this state.

(7) The department of
technology, management, and budget may take the necessary steps to convey the
property described in subsection (1) using any of the following measures:

(a) A publicly disclosed
competitive method of sale, selected to realize the fair market value to this
state, as determined by the department of technology, management, and budget.

(b) Offering the property
for sale for fair market value to a local unit or units of government.

(c) Transferring the
property, with or without consideration, through jurisdictional transfer to
another executive branch agency or this state. A property transfer under this
subdivision must be by an affidavit of jurisdictional transfer in recordable form,
not by quitclaim deed.

(d) Trading some or all
the property for other real property if the other real property is deemed by
the department of technology, management, and budget to be of reasonably equal
value to this state.

(e) Offering the property
for sale for less than fair market value to the local units of government in
which the property is located, subject to all of the following:

(i) The department of technology, management, and
budget may provide notice to each local unit of government of the surplus real
property’s availability. The first local unit of government to make an offer to
purchase the property via registered mail must be given the first opportunity
to purchase the property. If an offer is accepted by the department of
technology, management, and budget, the local unit of government shall enter
into a purchase agreement not later than 60 days after making the offer and
complete the conveyance not later than 180 days after the date of the offer.
The department of technology, management, and budget may extend the period to
complete the conveyance as needed. If there are competing offers from local
units of government, the department of technology, management, and budget shall
make a determination as to what is in the best interests of this state in
determining to whom to convey the property.

(ii) The property must be used exclusively for
public use for 30 years after the conveyance. If any fee, term, or condition
for the use of the property is imposed on members of the public, or if any of
those fees, terms, or conditions are waived for use of the property, all
members of the public must be subject to the same fees, terms, conditions, and
waivers. The public use restriction must be included in the deed.

(iii) If the local unit of government intends to
further convey the property within 30 years after the conveyance, the unit must
first offer the property for sale, in writing, to this state, which may
purchase the property at the original sale price. This state has 120 days to
consider reacquiring the property. If this state agrees to reacquire the
property, this state is not liable to any person for improvements to or liens
placed on the property. If this state declines to reacquire the property, the
public use restrictions described in subparagraph (ii)
remain in effect.

(iv) If the property is conveyed for less than
fair market value under this subdivision and if the local unit of government
retains the property for 30 years after the date of the conveyance this state,
the public use restriction automatically terminates subject to the restrictions
in subsection (12).

(v) If the local unit of government or its
successor disputes this state’s exercise of its right of reentry and fails to
promptly deliver possession of the property to this state, the attorney
general, on behalf of this state, may bring an action to quiet title to, and
regain possession of, the property.

(vi) If this state reenters and repossesses the
property under subparagraph (v), this
state is not liable to reimburse any person for any improvements made on the
property nor to compensate any person for any part of an unfulfilled contract
or license issued for the provision of goods or services on or for the
property.

(vii) The department of technology, management,
and budget may require the local unit of government to reimburse this state at
closing for this state’s demonstrably incurred costs as were necessary to
prepare the property for conveyance.

(8) The net revenue
received from the sale of property under this section must be deposited in the
state treasury and credited to the general fund.

(9) The department of
technology, management, and budget may require a grantee of property conveyed
or transferred under this act to record the instrument of conveyance or
affidavit of jurisdictional transfer with the Kent County register of deeds and
provide the department with a recorded copy of the recorded instrument as a
condition of closing.

(10) This state shall not
reserve oil, gas, or mineral rights to property conveyed under this act.
However, the conveyance instrument authorized under this act must provide that,
if the purchaser or any grantee develops any oil, gas, or minerals found on,
within, or under the conveyed property, the purchaser or any grantee must pay
this state 1/2 of the gross revenue generated from the development of the oil,
gas, or minerals. This payment must be deposited in the general fund.

(11) This state reserves
all aboriginal antiquities, including mounds, earthworks, forts, burial and
village sites, mines, or other relics lying on, within, or under the property
with power to this state and all others acting under its authority to enter the
property for any purpose related to exploring, excavating, and taking away the
aboriginal antiquities.

(12) If property conveyed
under this act was officially designated or used by this state as a historical
monument, memorial, park, or protected wildlife habitat area, it must be
maintained and protected for that purpose in perpetuity in accordance with applicable
law.

(13) If property conveyed
under this act is used for any purpose that is inconsistent with a restriction
under subsection (7)(e)(ii), (10),
(11), or (12), the state may reenter and repossess the property, terminating
the grantee’s or successor’s estate in the property.

(14) As used this
section:

(a) “Fair market value” means the highest estimated price the
property will bring if offered for sale on the open market, allowing a
reasonable time to find a purchaser who would buy with knowledge of the
property’s possible uses.

(b) “Local unit of government” means the township, village,
city, county, school district, intermediate school district, or community
college district in which the property is located.

(c) “Net revenue” means
the proceeds from the sale of the property less reimbursement for any costs to
the department of technology, management, and budget associated with the sale
of property, including, but not limited to, administrative costs, including
employee wages, salaries, and benefits; costs of reports and studies and other
materials necessary to the preparation of sale; costs of environmental
remediation; legal fees; and the cost of any litigation related to the
conveyance of the property.

(d)
“Public use” means, subject to subdivision (e), actual use of the property by
members of the public or actual use by the unit of local government for any of
the following:

(i) General government
administration.

(ii) Publicly owned and
operated correctional facilities.

(iii) Law enforcement
purposes.

(iv) Emergency
management response purposes.

(v) Public educational
use.

(vi) Public
transportation.

(vii) Public parks and
recreational areas.

(viii) Public health
uses.

(ix) Wildlife
conservation or restoration.

(e)
Public use does not include use by a for-profit enterprise or any use that is
closed to the public.

This act is ordered to take
immediate effect.

Clerk of the House of
Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor