HOUSE BILL No. 5900 June 2, 1998, Introduced by Rep. Frank and referred to the Committee on Agriculture. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 36111 (MCL 324.36111), as amended by 1996 PA 567, and by adding part 362. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 36111. (1) A development rights agreement shall be 2 relinquished by the state at the expiration of the term of the 3 agreement unless renewed with the consent of the owner of the 4 land. If the owner of the land has complied with the require- 5 ments of this part regarding development rights agreements, the 6 owner is entitled to automatic renewal of the farmland covered by 7 the agreement upon written request of the owner. A development 8 rights agreement may be renewed for a term of not less than 7 9 years. If a development rights agreement is renewed, the state 10 land use agency shall send a copy of the renewal contract to the 06488'98 JCB 2 1 local governing body of the local unit of government in which the 2 farmland is located. 3 (2) A development rights agreement or a portion of the farm- 4 land covered by a development rights agreement may be relin- 5 quished as provided in this section and section 36111a. Farmland 6 may be relinquished by this state before a termination date con- 7 tained in the instrument under either of the following 8 circumstances: 9 (a) If approved by the local governing body and the state 10 land use agency, land containing structures that were present 11 before the recording of the development rights agreement may be 12 relinquished from the agreement. Not more than 2 acres may be 13 relinquished under this subdivision unless additional land area 14 is needed to encompass all of the buildings located on the 15 parcel, in which case not more than 5 acres may be relinquished. 16 If the parcel proposed to be relinquished is less in area than 17 the minimum parcel size required by local zoning, the parcel may 18 not be relinquished unless a variance is obtained from the local 19 zoning board of appeals to allow for the smaller parcel size. 20 (b) If approved by the local governing body and the state 21 land use agency, land may be relinquished from the agreement for 22 the construction of a residence by an individual essential to the 23 operation of the farm as defined in section 36110(5). Not more 24 than 2 acres may be relinquished under this subdivision. If the 25 parcel proposed to be relinquished is less in area than the mini- 26 mum parcel size required by local zoning, the parcel may not be 06488'98 3 1 relinquished unless a variance is obtained from the local zoning 2 board of appeals to allow for the smaller parcel size. 3 (3) Until April 1, 1997, if an owner who entered into or 4 renewed a development rights agreement before April 15, 1994 5 makes a request, in writing, to the state land use agency, to 6 terminate that development rights agreement with respect to all 7 or a portion of the farmland covered by the agreement, the state 8 land use agency shall approve the request and relinquish that 9 farmland from the development rights agreement. If farmland is 10 relinquished under this subsection, the state land use agency 11 shall notify the local governing body of the local unit of gov- 12 ernment in which the land is located of the relinquishment. 13 (4) If the request for relinquishment of the development 14 rights agreement is approved, the state land use agency shall 15 prepare an instrument, subject to subsections (5), (6), (7), and 16 (8), and record it with the register of deeds of the county in 17 which the land is situated. 18 (5) If a development rights agreement or a portion of a 19 development rights agreement is to be relinquished pursuant to 20 subsection (2) or section 36111a, the state land use agency shall 21 record a lien against the property formerly subject to the devel- 22 opment rights agreement for the total amount of the allocated tax 23 credit of the last 7 years, including the year of termination, 24 received by an owner for that property under the agreement under 25 section 36109, attributable to the property formerly subject to 26 the development rights agreement, plus interest at the rate of 6% 06488'98 4 1 per annum simple interest from the time the credit was received 2 until the lien is placed on the property. 3 (6) If the property being relinquished from the development 4 rights agreement is less than all of the property subject to that 5 development rights agreement, the allocated tax credit for the 6 development rights agreement shall be multiplied by the 7 property's share of the taxable value of the agreement. As used 8 in this subsection: 9 (a) "The allocated tax credit" means the amount obtained by 10 multiplying the owner's total farmland preservation credit 11 claimed in that year on all agreements by the quotient of the ad 12 valorem property tax levied in that year on property subject to 13 the development rights agreement that included the property being 14 relinquished from the agreement divided by the total property 15 taxes levied on property subject to any development rights agree- 16 ment and used in determining the farmland preservation credit in 17 that year. 18 (b) "The property's share of the taxable value of the 19 agreement" means the quotient of the taxable value of the prop- 20 erty being relinquished from the agreement divided by the total 21 taxable value of property subject to the development rights 22 agreement that included the property being relinquished from the 23 agreement. For years before 1995, taxable value means assessed 24 value. 25 (7) Thirty days before the recording of a lien under this 26 section, the state land use agency shall notify the owner of the 27 farmland subject to the development rights agreement of the 06488'98 5 1 amount of the lien, including interest, if any. If the lien 2 amount is paid before 30 days after the owner is notified, the 3 lien shall not be recorded. The lien may be paid and discharged 4 at any time and is payable to the state by the owner of record at 5 the time the land or any portion of it is sold by the owner of 6 record, or if the land is converted to a use prohibited by the 7 former development rights agreement. The lien shall be dis- 8 charged upon renewal or reentry in a development rights agree- 9 ment, except that a subsequent lien shall not be less than the 10 lien discharged. 11 (8) Upon the natural termination of the development rights 12 agreement under subsections (1) or (13), or the termination of 13 all or a portion of the development rights agreement under sub- 14 section (3), the state land use agency shall prepare and record a 15 lien, if any, against the property formerly subject to the devel- 16 opment rights agreement for the total amount of the allocated tax 17 credit of the last 7 years, including the year of natural termi- 18 nation, received by the owner under section 36109, attributable 19 to the property formerly subject to the development rights 20 agreement. The lien shall be without interest or penalty and is 21 payable subject to subsection (7). 22 (9) Upon termination, the state land use agency shall notify 23 the department of treasury for their records. 24 (10)TheUNTIL JULY 1, 1999, THE proceeds from lien pay- 25 ments made under this part shall be used by the state land use 26 agency to administer this part,for fiscal years 1991-92 and27through 1999-2000,to purchase development rights of unique or 06488'98 6 1 critical land area that does not necessitate direct purchase of 2 the fee interest in the land for which money was appropriated 3 underAct No. 128 of the Public Acts of 1995,1995 PA 128, and, 4 pursuant to section 36111b, to purchase development rights on 5 farmland that does not necessitate direct purchase of the fee 6 interest in the land. It is the intent of the legislature that 7 if the accumulated proceeds from lien payments received under 8 this part fall below $2,000,000.00, then the funds used to admin- 9 ister this part shall be appropriated from the general fund until 10 the proceeds from the lien payments received under this part 11 exceed $2,000,000.00. However, the amount of lien payments used 12 to administer this part shall not exceed $600,000.00 in any 13 fiscal year. BEGINNING ON JULY 1, 1999, THE PROCEEDS FROM LIEN 14 PAYMENTS MADE UNDER THIS PART SHALL BE FORWARDED TO THE STATE 15 TREASURER FOR DEPOSIT IN THE MICHIGAN FARMLAND TRUST FUND CREATED 16 IN PART 362. ON JULY 1, 1999, ALL UNEXPENDED PROCEEDS FROM LIEN 17 PAYMENTS MADE UNDER THIS PART THAT ARE HELD BY THE STATE SHALL BE 18 TRANSFERRED TO THE MICHIGAN FARMLAND TRUST FUND CREATED IN 19 PART 362. 20 (11) Upon the relinquishment of all of the farmland under 21 section 36110(2) or a portion of the farmland under 22 section 36110(3), the state land use agency shall prepare and 23 record a lien against the property formerly subject to a develop- 24 ment rights agreement in an amount calculated as follows: 25 (a) Establishing a term of years by multiplying 7 by a frac- 26 tion, the numerator of which is the number of years the farmland 27 was under the development rights agreement, including any 06488'98 7 1 extensions, and the denominator of which is the number 2 representing the term of years of that agreement, including any 3 extensions. 4 (b) The lien amount equals the total amount of the allocated 5 tax credit claimed attributable to that development rights agree- 6 ment in the immediately preceding term of years as determined in 7 subdivision (a). 8 (12) When a lien is paid under this section, the state land 9 use agency shall prepare and record a discharge of lien with the 10 register of deeds in the county in which the land is located. 11 The discharge of lien shall specifically state that the lien has 12 been paid in full, that the lien is discharged, that the develop- 13 ment rights agreement and accompanying contract are terminated, 14 and that the state has no further interest in the land under that 15 agreement. 16 (13) An owner of farmland, upon written request to the state 17 land use agency on or before April 1, 1997, may elect to have the 18 remaining term of the development rights agreement reduced to 7 19 years if the farmland has been subject to that development rights 20 agreement for 10 or more years. If the farmland has not been 21 subject to a development rights agreement for 10 or more years, 22 an owner of farmland may, upon written request to the state land 23 use agency on or before April 1, 1997, elect to have the term of 24 the development rights agreement reduced to 17 years from the 25 initial year of enrollment. 26 (14) Within 60 days of June 5, 1996, the state land use 27 agency shall notify, by first-class mail, all owners of farmland 06488'98 8 1 that have a development rights agreement in effect as determined 2 by the state land use agency on June 5, 1996 about all of the 3 following: 4 (a) The ability to terminate an agreement under subsection 5 (3). 6 (b) The ability to reduce the termination agreement under 7 subsection (13). 8 (c) All other significant changes in law contained in the 9 amendatory act that added this subsection. 10 PART 362 FARMLAND TRUST FUND 11 SEC. 36201. AS USED IN THIS PART: 12 (A) "AGRICULTURE CONSERVATION EASEMENT" MEANS A GRANT, BY AN 13 INSTRUMENT, IN WHICH THE OWNER RELINQUISHES TO THE PUBLIC IN PER- 14 PETUITY OR FOR A TERM OF YEARS HIS OR HER DEVELOPMENT RIGHTS AS 15 MAY BE EXPRESSLY RESERVED IN THE INSTRUMENT, THAT CONTAINS THE 16 PERMITTED USES OF THE LAND, AND THAT CONTAINS A COVENANT RUNNING 17 WITH THE LAND, NOT TO DEVELOP, EXCEPT AS THIS RIGHT IS EXPRESSLY 18 RESERVED IN THE INSTRUMENT. 19 (B) "AGRICULTURAL USE" MEANS SUBSTANTIALLY UNDEVELOPED LAND 20 DEVOTED TO THE PRODUCTION OF PLANTS AND ANIMALS USEFUL TO HUMANS, 21 INCLUDING FORAGES AND SOD CROPS; GRAINS, FEED CROPS, AND FIELD 22 CROPS; DAIRY AND DAIRY PRODUCTS; POULTRY AND POULTRY PRODUCTS; 23 LIVESTOCK, INCLUDING BREEDING AND GRAZING OF CATTLE, SWINE, CAP- 24 TIVE CERVIDAE, AND SIMILAR ANIMALS; BERRIES; HERBS; FLOWERS; 25 SEEDS; GRASSES; NURSERY STOCK; FRUITS; VEGETABLES; CHRISTMAS 26 TREES; AND OTHER SIMILAR USES AND ACTIVITIES. AGRICULTURAL USE 27 DOES NOT INCLUDE THE MANAGEMENT AND HARVESTING OF A WOODLOT. 06488'98 9 1 (C) "BOARD" MEANS THE MICHIGAN FARMLAND TRUST FUND BOARD 2 CREATED IN SECTION 36204. 3 (D) "DEPARTMENT" MEANS THE DEPARTMENT OF AGRICULTURE. 4 (E) "DEVELOP" OR "DEVELOPMENT" MEANS AN ACTIVITY THAT MATE- 5 RIALLY ALTERS OR AFFECTS THE EXISTING CONDITIONS OR USE OF ANY 6 LAND IN A MANNER THAT IS INCONSISTENT WITH AN AGRICULTURAL USE. 7 (F) "DEVELOPMENT RIGHTS" MEANS THE RIGHT TO DEVELOP LAND TO 8 THE MAXIMUM INTENSITY OF DEVELOPMENT AUTHORIZED BY LAW. 9 (G) "FARMLAND" MEANS 1 OR MORE OF THE FOLLOWING: 10 (i) A FARM OF 40 OR MORE ACRES IN 1 OWNERSHIP, WITH 51% OR 11 MORE OF THE LAND AREA DEVOTED TO AN AGRICULTURAL USE. 12 (ii) A FARM OF 5 ACRES OR MORE IN 1 OWNERSHIP, BUT LESS THAN 13 40 ACRES, WITH 51% OR MORE OF THE LAND AREA DEVOTED TO AN AGRI- 14 CULTURAL USE, THAT HAS PRODUCED A GROSS ANNUAL INCOME FROM AGRI- 15 CULTURE OF $200.00 PER YEAR OR MORE PER ACRE OF CLEARED AND TIL- 16 LABLE LAND. A FARM DESCRIBED IN THIS SUBPARAGRAPH ENROLLED IN A 17 FEDERAL ACREAGE SET ASIDE PROGRAM OR A FEDERAL CONSERVATION 18 RESERVE PROGRAM IS CONSIDERED TO HAVE PRODUCED A GROSS ANNUAL 19 INCOME FROM AGRICULTURE OF $200.00 PER YEAR OR MORE PER ACRE OF 20 CLEARED AND TILLABLE LAND. 21 (iii) A FARM DESIGNATED BY THE DEPARTMENT OF AGRICULTURE AS 22 A SPECIALTY FARM IN 1 OWNERSHIP THAT HAS PRODUCED A GROSS ANNUAL 23 INCOME OF $2,000.00 OR MORE FROM AN AGRICULTURAL USE. SPECIALTY 24 FARMS INCLUDE, BUT ARE NOT LIMITED TO, GREENHOUSES; EQUINE BREED- 25 ING AND GRAZING; THE BREEDING AND GRAZING OF CERVIDAE, PHEASANTS, 26 AND OTHER GAME ANIMALS; BEES AND BEE PRODUCTS; MUSHROOMS; 27 AQUACULTURE; AND OTHER SIMILAR USES AND ACTIVITIES. 06488'98 10 1 (iv) PARCELS OF LAND IN 1 OWNERSHIP THAT ARE NOT CONTIGUOUS 2 BUT WHICH CONSTITUTE AN INTEGRAL PART OF A FARMING OPERATION 3 BEING CONDUCTED ON LAND OTHERWISE QUALIFYING AS FARMLAND MAY BE 4 INCLUDED IN AN APPLICATION UNDER THIS PART. 5 (H) "GRANT" MEANS A GRANT FOR THE PURCHASE OF AGRICULTURE 6 CONSERVATION EASEMENTS ISSUED UNDER THIS PART. 7 (I) "OWNER" MEANS A PERSON HAVING A FREEHOLD ESTATE IN LAND 8 COUPLED WITH POSSESSION AND ENJOYMENT. IF LAND IS SUBJECT TO A 9 LAND CONTRACT, OWNER MEANS THE VENDEE IN AGREEMENT WITH THE 10 VENDOR. 11 (J) "PERMITTED USE" MEANS ANY USE CONTAINED WITHIN AN AGRI- 12 CULTURE CONSERVATION EASEMENT CONSISTENT WITH THE FARMING OPERA- 13 TION OR THAT DOES NOT ALTER THE OPEN SPACE CHARACTER OF THE 14 LAND. STORAGE, RETAIL OR WHOLESALE MARKETING, OR PROCESSING OF 15 AGRICULTURAL PRODUCTS IS A PERMITTED USE IN A FARMING OPERATION 16 IF MORE THAN 50% OF THE STORED, PROCESSED, OR MERCHANDISED PRO- 17 DUCTS ARE PRODUCED BY THE FARM OPERATOR FOR AT LEAST 3 OF THE 18 IMMEDIATELY PRECEDING 5 YEARS. PERMITTED USE INCLUDES OIL AND 19 GAS EXPLORATION, BUT DOES NOT INCLUDE OTHER MINERAL DEVELOPMENT 20 THAT IS INCONSISTENT WITH AN AGRICULTURAL USE. 21 (K) "TRUST FUND" MEANS THE MICHIGAN FARMLAND TRUST FUND CRE- 22 ATED IN SECTION 36202. 23 SEC. 36202. (1) THE MICHIGAN FARMLAND TRUST FUND IS CREATED 24 WITHIN THE STATE TREASURY. 25 (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS 26 FROM ANY SOURCE FOR DEPOSIT INTO THE TRUST FUND, INCLUDING 27 DONATIONS TO THE TRUST FUND. THE STATE TREASURER SHALL DIRECT 06488'98 11 1 THE INVESTMENT OF THE TRUST FUND. THE STATE TREASURER SHALL 2 CREDIT TO THE TRUST FUND INTEREST AND EARNINGS FROM TRUST FUND 3 INVESTMENTS. 4 (3) MONEY IN THE TRUST FUND AT THE CLOSE OF THE FISCAL YEAR 5 SHALL REMAIN IN THE TRUST FUND AND SHALL NOT LAPSE TO THE GENERAL 6 FUND. 7 (4) THE INTEREST AND EARNINGS ONLY OF THE TRUST FUND MAY BE 8 EXPENDED, UPON APPROPRIATION, AS FOLLOWS: 9 (A) NOT MORE THAN $600,000.00, AS THIS AMOUNT IS ADJUSTED 10 PURSUANT TO SUBSECTION (5), ANNUALLY FOR THE ADMINISTRATIVE COSTS 11 OF THE DEPARTMENT, THE DEPARTMENT OF NATURAL RESOURCES, AND THE 12 BOARD IN IMPLEMENTING THIS PART AND PART 361. 13 (B) THE ACCUMULATED INTEREST AND EARNINGS OF THE TRUST FUND 14 OTHER THAN THOSE EXPENDED PURSUANT TO SUBDIVISION (A) SHALL BE 15 EXPENDED AS FOLLOWS: 16 (i) NOT LESS THAN 50% PURSUANT TO SECTION 36111B BY THE 17 DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES FOR THE ACQUISI- 18 TION OF DEVELOPMENT RIGHTS. 19 (ii) NOT MORE THAN 50% TO PROVIDE GRANTS TO LOCAL UNITS OF 20 GOVERNMENT PURSUANT TO SECTION 36203. 21 (5) THE STATE TREASURER SHALL ADJUST THE FIGURE DESCRIBED IN 22 SUBSECTION (4) BY AN AMOUNT DETERMINED BY THE STATE TREASURER AT 23 THE END OF EACH CALENDAR YEAR TO REFLECT THE CUMULATIVE ANNUAL 24 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX. AS USED IN THIS 25 SUBSECTION, "CONSUMER PRICE INDEX" MEANS THE MOST COMPREHENSIVE 26 INDEX OF CONSUMER PRICES AVAILABLE FOR THIS STATE FROM THE BUREAU 27 OF LABOR STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 06488'98 12 1 SEC. 36203. (1) THE DEPARTMENT SHALL ESTABLISH A GRANTS 2 PROGRAM FOR THE PURCHASE OF AGRICULTURE CONSERVATION EASEMENTS. 3 THE DEPARTMENT, UPON DIRECTION FROM THE BOARD, SHALL PROVIDE 4 GRANTS TO LOCAL UNITS OF GOVERNMENT FOR THE ACQUISITION OF AGRI- 5 CULTURE CONSERVATION EASEMENTS. 6 (2) A LOCAL UNIT OF GOVERNMENT IS ELIGIBLE TO SUBMIT A GRANT 7 APPLICATION IF THE LOCAL UNIT OF GOVERNMENT HAS ADOPTED A DEVEL- 8 OPMENT RIGHTS ORDINANCE PROVIDING FOR A PURCHASE OF DEVELOPMENT 9 RIGHTS PROGRAM PURSUANT TO 1 OF THE FOLLOWING: 10 (A) THE CITY AND VILLAGE ZONING ACT, 1921 PA 207, MCL 11 125.581 TO 125.600. 12 (B) THE TOWNSHIP ZONING ACT, 1943 PA 184, MCL 125.271 TO 13 125.310. 14 (C) THE COUNTY ZONING ACT, 1943 PA 183, MCL 125.201 TO 15 125.240. 16 (3) A LOCAL UNIT OF GOVERNMENT THAT WISHES TO APPLY FOR A 17 GRANT SHALL SUBMIT A GRANT APPLICATION TO THE DEPARTMENT ON A 18 FORM PRESCRIBED BY THE DEPARTMENT AND CONTAINING THE INFORMATION 19 REQUIRED BY THE DEPARTMENT. 20 (4) UPON RECEIPT OF APPLICATIONS PURSUANT TO SUBSECTION (2), 21 THE DEPARTMENT SHALL FORWARD THOSE APPLICATIONS TO THE BOARD. 22 SEC. 36204. (1) THE FARMLAND TRUST FUND BOARD IS CREATED 23 WITHIN THE DEPARTMENT. 24 (2) THE BOARD SHALL CONSIST OF THE FOLLOWING MEMBERS: 25 (A) THE DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES OR 26 HIS OR HER DESIGNEE AS A NONVOTING MEMBER. 06488'98 13 1 (B) THE DIRECTOR OF THE DEPARTMENT OF AGRICULTURE OR HIS OR 2 HER DESIGNEE AS A NONVOTING MEMBER. 3 (C) FIVE INDIVIDUALS APPOINTED BY THE GOVERNOR AS FOLLOWS: 4 (i) TWO INDIVIDUALS REPRESENTING CONSERVATION INTERESTS. 5 (ii) TWO INDIVIDUALS REPRESENTING AGRICULTURAL INTERESTS. 6 (iii) ONE INDIVIDUAL REPRESENTING THE GENERAL PUBLIC. 7 (3) THE MEMBERS FIRST APPOINTED TO THE BOARD SHALL BE 8 APPOINTED WITHIN 60 DAYS AFTER THE EFFECTIVE DATE OF THIS 9 SECTION. 10 (4) MEMBERS OF THE BOARD SHALL SERVE FOR TERMS OF 4 YEARS OR 11 UNTIL A SUCCESSOR IS APPOINTED, WHICHEVER IS LATER, EXCEPT THAT 12 OF THE MEMBERS FIRST APPOINTED SHALL SERVE AS FOLLOWS: 13 (A) ONE OF THE INDIVIDUALS APPOINTED UNDER 14 SUBSECTION (2)(C)(i) AND 1 OF THE INDIVIDUALS APPOINTED UNDER 15 SUBSECTION (2)(C)(ii) SHALL SERVE FOR 3 YEARS. 16 (B) ONE OF THE INDIVIDUALS APPOINTED UNDER 17 SUBSECTION (2)(C)(i) AND 1 OF THE INDIVIDUALS APPOINTED UNDER 18 SUBSECTION (2)(C)(ii) SHALL SERVE FOR 2 YEARS. 19 (C) THE INDIVIDUAL APPOINTED UNDER SUBSECTION (2)(C)(iii) 20 SHALL SERVE FOR 1 YEAR. 21 (5) IF A VACANCY OCCURS ON THE BOARD, THE VACANCY SHALL BE 22 FILLED FOR THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL 23 APPOINTMENT. 24 (6) THE BOARD MAY REMOVE A MEMBER OF THE BOARD FOR INCOMPE- 25 TENCY, DERELICTION OF DUTY, MALFEASANCE, MISFEASANCE, OR NONFEA- 26 SANCE IN OFFICE, OR ANY OTHER GOOD CAUSE. 06488'98 14 1 (7) THE FIRST MEETING OF THE BOARD SHALL BE CALLED BY THE 2 DIRECTOR OF THE DEPARTMENT OF AGRICULTURE. AT THE FIRST MEETING, 3 THE BOARD SHALL ELECT FROM AMONG ITS MEMBERS A CHAIRPERSON AND 4 OTHER OFFICERS AS IT CONSIDERS NECESSARY OR APPROPRIATE. AFTER 5 THE FIRST MEETING, THE BOARD SHALL MEET AT LEAST QUARTERLY, OR 6 MORE FREQUENTLY AT THE CALL OF THE CHAIRPERSON OR IF REQUESTED BY 7 3 OR MORE MEMBERS. 8 (8) A MAJORITY OF THE MEMBERS OF THE BOARD CONSTITUTE A 9 QUORUM FOR THE TRANSACTION OF BUSINESS AT A MEETING OF THE 10 BOARD. A MAJORITY OF THE MEMBERS PRESENT AND SERVING ARE 11 REQUIRED FOR OFFICIAL ACTION OF THE BOARD. 12 (9) THE BUSINESS THAT THE BOARD MAY PERFORM SHALL BE CON- 13 DUCTED AT A PUBLIC MEETING OF THE BOARD HELD IN COMPLIANCE WITH 14 THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 15.275. 15 (10) A WRITING PREPARED, OWNED, USED, IN THE POSSESSION OF, 16 OR RETAINED BY THE BOARD IN THE PERFORMANCE OF AN OFFICIAL FUNC- 17 TION IS SUBJECT TO THE FREEDOM OF INFORMATION ACT, 1976 PA 442, 18 MCL 15.231 TO 15.246. 19 (11) MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION. 20 HOWEVER, MEMBERS OF THE BOARD MAY BE REIMBURSED FOR THEIR ACTUAL 21 AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFI- 22 CIAL DUTIES AS MEMBERS OF THE BOARD. 23 SEC. 36205. (1) THE BOARD SHALL ANNUALLY DETERMINE WHICH 24 GRANTS SHOULD BE APPROVED AND SHALL SUBMIT TO THE LEGISLATURE A 25 LIST OF THOSE GRANTS THAT THE BOARD HAS DETERMINED SHOULD BE 26 ACQUIRED WITH TRUST FUND MONEY, COMPILED IN ORDER OF PRIORITY. 27 THE BOARD SHALL REQUIRE THE LOCAL UNIT OF GOVERNMENT TO PROVIDE 06488'98 15 1 AT LEAST 25% OF THE COST OF ACQUIRING THE AGRICULTURE 2 CONSERVATION EASEMENTS. 3 (2) THE BOARD SHALL CONSIDER ALL OF THE FOLLOWING IN REVIEW- 4 ING GRANT APPLICATIONS FOR THE ACQUISITION OF AGRICULTURE CONSER- 5 VATION EASEMENTS IN THE FOLLOWING PRIORITY ORDER: 6 (A) THE PRODUCTIVE CAPACITY OF THE FARMLAND SUITED FOR THE 7 PRODUCTION OF FEED, FOOD, AND FIBER, INCLUDING, BUT NOT LIMITED 8 TO, PRIME OR UNIQUE FARMLAND OR FARMLAND OF LOCAL IMPORTANCE, AS 9 DEFINED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE-NATURAL 10 RESOURCES CONSERVATION SERVICE. 11 (B) WHETHER THE FARMLAND MEETS ANY OF THE FOLLOWING: 12 (i) THE FARMLAND WOULD COMPLEMENT AND IS PART OF A DOCU- 13 MENTED, LONG-RANGE EFFORT OR PLAN FOR LAND PRESERVATION BY THE 14 GOVERNING BODY OF THE LOCAL UNIT OF GOVERNMENT. 15 (ii) THE FARMLAND IS LOCATED WITHIN AN AGRICULTURAL SECURITY 16 AREA. 17 (iii) THE FARMLAND IS ADJACENT TO FARMLAND DESCRIBED IN 18 SUBPARAGRAPH (i) OR (ii). 19 (C) THE AMOUNT OF MATCHING FUNDS FROM THE LOCAL UNIT OF GOV- 20 ERNMENT, PRIVATE ORGANIZATIONS, THE OWNER OF THE FARMLAND, OR 21 OTHER SOURCES IN EXCESS OF THE MINIMUM MATCH AMOUNT REQUIRED. 22 (D) WHETHER THE FARMLAND IS FACED WITH DEVELOPMENT PRESSURE 23 THAT WILL PERMANENTLY ALTER THE ABILITY FOR THAT LAND TO BE USED 24 FOR PRODUCTIVE AGRICULTURAL ACTIVITY. 25 (E) WHETHER THE LOCATION OF THE FARMLAND IS WITHIN THE 26 JURISDICTION OF A CONSERVATION PLAN APPROVED BY A SOIL 27 CONSERVATION DISTRICT UNDER PART 93. 06488'98 16 1 (F) WHETHER THE FARMLAND IS ENROLLED UNDER PART 361. 2 (3) THE DEPARTMENT SHALL PROVIDE THE BOARD WITH STAFF AND 3 ASSISTANCE NECESSARY TO CARRY OUT ITS RESPONSIBILITIES UNDER THIS 4 PART. 5 (4) THE LEGISLATURE SHALL APPROVE BY LAW THE GRANTS TO BE 6 FUNDED WITH MONEY IN THE TRUST FUND. 7 SEC. 36206. UPON APPROPRIATION, THE DEPARTMENT SHALL DIS- 8 TRIBUTE GRANTS TO RECIPIENTS. THE DEPARTMENT SHALL CONDITION THE 9 RECEIPT OF A GRANT UPON THE DEPARTMENT'S APPROVAL OF THE AGRICUL- 10 TURE CONSERVATION EASEMENT. IN REVIEWING PERMITTED USES CON- 11 TAINED WITHIN AN AGRICULTURE CONSERVATION EASEMENT, THE DEPART- 12 MENT SHALL CONSIDER ALL OF THE FOLLOWING: 13 (A) WHETHER THE USE ADVERSELY AFFECTS THE PRODUCTIVITY OF 14 FARMLAND OR ADVERSELY AFFECTS THE CHARACTER OF OPEN SPACE LAND. 15 (B) WHETHER THE USE MATERIALLY ALTERS OR NEGATIVELY AFFECTS 16 THE EXISTING CONDITIONS OR USE OF THE LAND. 17 (C) WHETHER THE USE SUBSTANTIALLY ALTERS THE AGRICULTURAL 18 USE OF FARMLAND SUBJECT TO A DEVELOPMENT RIGHTS AGREEMENT OR SUB- 19 STANTIALLY ALTERS THE NATURAL CHARACTER OF OPEN SPACE LAND 20 SUBJECT TO AN OPEN SPACE EASEMENT. 21 (D) WHETHER THE USE RESULTS IN A MATERIAL ALTERATION OF AN 22 EXISTING STRUCTURE TO A NONAGRICULTURAL USE. 23 (E) WHETHER THE USE CONFORMS WITH ALL APPLICABLE FEDERAL, 24 STATE, AND LOCAL LAWS AND ORDINANCES. 25 SEC. 36207. THE DEPARTMENT MAY PROMULGATE RULES TO IMPLE- 26 MENT THIS PART. 06488'98 Final page. JCB