MI SB0631

Amends the State Transportation Preservation Act of 1976 to modify procedures for divestiture and leasing of state-owned railroad property.

Authorizes the department to sell or offer 10-year leases on four defined railroad segments: Lenawee county system, Hillsdale county system, Vassar area system, and Ann Arbor and Northwest Michigan system, with divestiture proceeding from smallest to largest segment.

Requires purchase agreements to include minimum sale prices at net liquidation value, maintenance of service levels for 3 years, track maintenance standards, reasonable freight rates, and restrictions preserving property viability for future rail use.

Establishes a priority order for offering leases if no acceptable purchase offers are received: current operator, current shippers, governmental entities, then other railroad companies.

Allows the department to preserve right-of-way for future rail use through commuter trails, transfer to the Department of Natural Resources, or recreational trails leased indefinitely but cancelable if needed for rail purposes.