MI SB1031

Allows municipalities to use forestland for recreational activities provided forestry remains the highest priority objective and recreational use does not interfere with forestry operations.

Permits the state to relinquish reversionary interests in municipal forestland conveyed before October 12, 2004, within 90 days of written request from the public agency owner.

Requires public agencies receiving relinquished reversionary interests to obtain state approval before conveying the property and to conduct public hearings before selling to third parties.

Directs proceeds from fair market value sales to be split equally, with 50% retained by the conveying public agency and 50% submitted to the state treasury (first $18 million to general fund, amounts exceeding $18 million to the fire protection fund).

Defines "prime land" as municipal forestland within state program boundaries, providing access to public water bodies, or meeting minimum size and forest density standards, with additional restrictions on conveyance and reversion requirements.