SENATE BILL No. 916

December 4, 2001, Introduced by Senator MC COTTER and referred to the Committee on Government Operations.

A bill to amend 1943 PA 92, entitled

"An act to protect the interest of the public, acquired other

than through taxation, in lands under the jurisdiction and con-

trol of the state land office board and department of conserva-

tion, and to make an appropriation therefor,"

by amending sections 1, 2, 3, and 4 (MCL 211.371, 211.372,

211.373, and 211.374).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. (1) If the state land office board or department

2 of conservation shall discover NATURAL RESOURCES DISCOVERS

3 before the execution and delivery of a deed or the execution of a

4 contract for the sale of any land, apparent title to which vested

5 in the THIS state of Michigan by virtue of a tax sale, that

6 the THIS state, of Michigan, or any board, officer, commis-

7 sion, department, public corporation, governmental subdivision,

8 agency, municipal or quasi-municipal corporation thereof OF

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1 THIS STATE owned any parcel of such land or part thereof OF A

2 PARCEL or interest therein IN A PARCEL prior to the apparent

3 vesting of title thereto TO THAT PARCEL in the THIS state,

4 of Michigan by virtue of a tax sale, it shall be the duty of

5 the state land office board or department of conservation,

6 hereinafter called the "board" and "department," having juris-

7 diction over said THE land to SHALL withhold the same LAND

8 or THAT part thereof so OF LAND publicly owned , or in which

9 the public had an interest, from public sale, and to notify the

10 auditor general STATE TREASURER of such THE withholding and

11 the reason therefor FOR THE WITHHOLDING.

12 (2) AS USED IN THIS ACT, "DEPARTMENT" MEANS THE DEPARTMENT

13 OF NATURAL RESOURCES.

14 Sec. 2. (1) Such THE land or part thereof so OF THE

15 LAND withheld shall be conveyed by deed by said board or THE

16 department to such THE grantee or grantees, including the

17 THIS state, of Michigan, as THAT would have had title thereto

18 had not TO THE LAND IF the apparent title thereto HAD NOT

19 vested in the THIS state as a result of tax sale proceedings.

20 : Provided, That if

21 (2) IF any taxes or special assessments are lawfully due

22 upon said THE land by reason of BECAUSE the public interest

23 therein having been WAS acquired after the tax day, or after

24 such THE special assessments had become a lien, or for any

25 other reason, such THE taxes and special assessments shall be

26 paid to the county treasurer and to the city treasurer , in

27 case IF the land lies within the limits of a city collecting its

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1 own delinquent taxes and special assessments , and the fact of

2 such THE payment of valid taxes and special assessments shall

3 be certified to the board or the department by the auditor

4 general STATE TREASURER prior to the execution and delivery of

5 such THE conveyance. , which THE taxes and special assess-

6 ments shall be distributed and accounted for in the same manner

7 as if paid at the time of the acquisition of the interest of the

8 public in such THE land. : Provided further, That interest

9 (3) INTEREST and penalties due upon said THE taxes and

10 special assessments shall not be required to be computed or paid

11 beyond the time when the public acquired an interest in such

12 THE land. : Provided further, That if

13 (4) IF the public interest in such THE land was less than

14 a fee simple absolute prior to the apparent vesting of title in

15 the THIS state, the THIS state or any board, officer, commis-

16 sion, department, public corporation, governmental subdivision,

17 agency, municipal or quasi-municipal corporation thereof OF

18 THIS STATE paying such THE valid taxes and special assessments

19 shall have a lien on such THE land or interest therein IN THE

20 LAND not publicly owned for such THE portion of the amount paid

21 as THAT is lawfully chargeable to such THE interest not owned

22 by the public, as aforesaid, which DESCRIBED IN THIS SECTION.

23 THE lien may be foreclosed in the circuit court in chancery for

24 the county wherein such IN WHICH THE land or any part thereof

25 OF THE LAND is situated. , and which THE lien shall bear inter-

26 est at the rate of 6 per centum 6% per annum from the date of

27 such THE payment.

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1 Sec. 3. Taxes and special assessments subsequently assessed

2 upon property acquired by the public prior to the tax day shall

3 be rejected by the auditor general STATE TREASURER and shall be

4 reassessed in the same manner as if said THE land or part

5 thereof OF THE LAND had not been sold at tax sale. In case a

6 geographical part only of such THE land was owned by the public

7 prior to the apparent vesting of title in the THIS state as the

8 result of tax sale proceedings, the remaining part of such THE

9 land shall be disposed of by the board or department in the

10 usual manner, and a division of the taxes and special assessments

11 shall be made in the same manner as though said THE taxes had

12 not yet become delinquent.

13 Sec. 4. (1) Payment of valid taxes and special assessments

14 due on lands in which an interest was acquired by the state of

15 Michigan THIS STATE, or any board, officer, commission, depart-

16 ment, public corporation, governmental subdivision, or agency

17 thereof, OF THIS STATE, except lands under the jurisdiction and

18 control of the state highway TRANSPORTATION department, shall

19 be made by the auditor general by warrant drawn on the state

20 treasurer in the usual manner. : Provided, That in

21 (2) IN the case of lands in which an interest was acquired

22 by any governmental subdivision or agency of the THIS state,

23 the functions of which are local and for the support of which

24 real property taxes are required or permitted to be raised local-

25 ly, the valid taxes and special assessments on such THE land

26 shall be paid by such THE governmental subdivision or agency of

27 the THIS state. : Provided further, That in

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1 (3) IN all cases where IN WHICH payment is required to be

2 made out of the state treasury, it PAYMENT shall be made only

3 upon the written approval of the auditor general STATE

4 TREASURER and the attorney general. , such THE approval to

5 SHALL be filed and kept in the office of the auditor general

6 STATE TREASURER. Payment shall be made by the interested munici-

7 pal or quasi-municipal corporation or the state highway

8 TRANSPORTATION department in all other cases.

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