(1) The local public recreation facilities fund is created within the state treasury.

  (2) The state treasurer may receive money or other assets from any source for deposit into the local public recreation facilities fund. The state treasurer shall direct the investment of the local public recreation facilities fund. The state treasurer shall credit to the local public recreation facilities fund interest and earnings from local public recreation facilities fund investments.

  (3) Money in the local public recreation facilities fund at the close of the fiscal year shall remain in the local public recreation facilities fund and shall not lapse to the general fund.

  (4) The department of natural resources shall be the administrator of the local public recreation facilities fund for auditing purposes.

  (5) The department of natural resources shall expend money from the local public recreation facilities fund, upon appropriation, only for grants to local units of government for the development, renovation, and redevelopment of public recreation facilities pursuant to the same procedures of the board and guidelines as apply under section 1907.