MI HB4754

Authorizes the department to sell or lease state-owned railroad segments to various entities including private corporations, governmental units, and port authorities, with reimbursement determined by the department.

Establishes a divestiture order prioritizing sale or 10-year lease of four defined rail system segments: Lenawee County, Hillsdale County, Vassar area, and Ann Arbor and Northwest Michigan systems, proceeding from smallest to largest.

Requires purchase agreements to include minimum net liquidation value pricing, maintenance of service levels and rates for 3 years post-sale, Federal Railway Administration track standards, and 95% return of proceeds to the state if non-main line portions are abandoned and sold.

Mandates lease agreements include minimum service level provisions, reinvestment of at least 50% of trackage rights revenues in eligible maintenance expenditures, and Federal Railway Administration track standards maintenance.

Permits the department to preserve rights-of-way for future rail use and, with approval processes, develop them as commuter trails or recreational trails, transfer them to the Department of Natural Resources, or dispose of them for other transportation purposes.