March 2, 2006, Introduced by Reps. McConico, Tobocman, Drolet, Green, Gosselin, Stahl, Brandenburg, Baxter, Elsenheimer, Mortimer, Rocca, Huizenga, Lipsey, Acciavatti and Jones and referred to the Committee on Government Operations.
A bill to amend 1980 PA 87, entitled
"The uniform condemnation procedures act,"
by amending section 5 (MCL 213.55), as amended by 1996 PA 474.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Before initiating negotiations for the purchase of
property, the agency shall establish an amount that it believes to
be just compensation for the property and promptly shall submit to
the owner a good faith written offer to acquire the property for
the full amount so established. At the same time, the agency shall
provide written notice to the occupants of the property stating
that a condemnation process has commenced and outlining the
occupants' basic legal rights in the process, including, but not
limited to, the fact that any person who has a leasehold interest
of less than 6 months is entitled to a $5,200.00 moving allowance
pursuant to section 2 of 1965 PA 40, MCL 213.352, and that an
individual who is a residential occupant may not be displaced until
that allowance is paid and the person has had a reasonable
opportunity to relocate to a comparable dwelling. If there is more
than 1 owner of a parcel, the agency may make a single, unitary
good faith written offer. The good faith offer shall state whether
the agency reserves or waives its rights to bring federal or state
cost recovery actions against the present owner of the property
arising out of a release of hazardous substances at the property
and the agency's appraisal of just compensation for the property
shall reflect such reservation or waiver. The amount shall not be
less than the agency's appraisal of just compensation for the
property. If the owner fails to provide documents or information as
required by subsection (2), the agency may base its good faith
written offer on the information otherwise known to the agency
whether or not the agency has sought a court order under subsection
(2). The agency shall provide the owner of the property and the
owner's attorney with an opportunity to review the written
appraisal, if an appraisal has been prepared, or if an appraisal
has not been prepared, the agency shall provide the owner or the
owner's attorney with a written statement and summary, showing the
basis for the amount the agency established as just compensation
for the property. If an agency is unable to agree with the owner
for the purchase of the property, after making a good faith written
offer to purchase the property, the agency may file a complaint for
the acquisition of the property in the circuit court in the county
in which the property is located. If a parcel of property is
situated in 2 or more counties and an owner resides in 1 of the
counties, the complaint shall be filed in the county in which the
owner is a resident. If a parcel of property is situated in 2 or
more counties and an owner does not reside in 1 of the counties,
the complaint may be filed in any of the counties in which the
property is situated. The complaint shall ask that the court
ascertain and determine just compensation to be made for the
acquisition
of the described property. If an agency made a good
faith
written offer pursuant to this section before January 28,
1994
but has not filed a complaint for acquisition of the property,
the
agency may withdraw the good faith written offer and resubmit a
good
faith written offer that complies with this act as amended. If
a
good faith offer is resubmitted pursuant to this subsection,
attorney
fees under section 16 shall be based on the resubmitted
good
faith offer.
(2) During the period in which the agency is establishing just
compensation for the owner's parcel, the agency has the right to
secure tax returns, financial statements, and other relevant
financial information for a period not to exceed 5 years before the
agency's request. The owner shall produce the information within 21
business days after receipt of a written request from the agency.
The agency shall reimburse the owner for actual, reasonable costs
incurred in reproducing any requested documents, plus other actual,
reasonable costs of not more than $1,000.00 incurred to produce the
requested information. Within 45 days after production of the
requested documents and other information, the owner shall provide
to the agency a detailed invoice for the costs of reproduction and
other costs sought. The owner is not entitled to a reimbursement of
costs under this subsection if the reimbursement would be
duplicative of any other reimbursement to the owner. If the owner
fails to provide all documents and other information requested by
the agency under this section, the agency may file a complaint and
proposed order to show cause in the circuit court in the county
specified in subsection (1). The court shall immediately hold a
hearing on the agency's proposed order to show cause. The court
shall order the owner to provide documents and other information
requested by the agency that the court finds to be relevant to a
determination of just compensation. An agency shall keep documents
and other information that an owner provides to the agency under
this section confidential. However, the agency and its experts and
representatives may utilize the documents and other information to
determine just compensation, may utilize the documents and other
information in legal proceedings under this act, and may utilize
the documents and other information as provided by court order. If
the owner unreasonably fails to timely produce the documents and
other information, the owner shall be responsible for all expenses
incurred by the agency in obtaining the documents and other
information. This section does not affect any right a party may
otherwise have to discovery or to require the production of
documents and other information upon commencement of an action
under this act. A copy of this section shall be provided to the
owner with the agency's request.
(3) If an owner believes that the good faith written offer
made under subsection (1) did not include or fully include 1 or
more items
of compensable property or damage categories
of claims
for compensation for which the owner intends to claim a right to
just
compensation, the owner shall, for each
item category,
file
a written claim with the agency. The owner's written claim shall
provide sufficient information and detail to enable the agency to
evaluate the validity of the claim and to determine its value. The
owner
shall file all such the claim or claims within
90 days
after
the good faith written offer is made pursuant to section 5(1)
or
60 days after the complaint is filed, whichever is later. Within
60
days after the date the owner files a written claim with the
agency,
the agency may along with,
or as part of, the appraisal,
unless a different date is set by the court in accordance with
section 11(1). If the agency believes that the information provided
by the owner is not sufficient to allow the evaluation of the
claim, the agency shall ask the court to compel the owner to
provide additional information to enable the agency to evaluate the
validity
of the claim and to determine its value. For good cause
shown,
the court shall, upon motion filed by the owner, extend the
time
in which claims may be made, if the rights of the agency are
not
prejudiced by the delay. Only 1 such extension may be granted.
For any claim that has not fully accrued or is continuing in nature
when the claim is filed, the owner shall reasonably provide
information then available that would enable the agency to evaluate
the claim, subject to the owner reasonably supplementing that
information as it becomes available. After receiving a written
claim from an owner, the agency may provide written notice that it
contests the compensability of the claim, establish an amount that
it believes to be just compensation for the item of property or
damage, or reject the claim. If the agency establishes an amount it
believes to be just compensation for the item of property or
damage, the agency shall submit a good faith written offer for the
item of property or damage. The sum of the good faith written offer
for all such items of property or damage plus the original good
faith written offer constitutes the good faith written offer for
purposes of determining the maximum reimbursable attorney fees
under section 16. If an owner fails to file a timely written claim
under this subsection, the claim is barred. If the owner files a
claim that is frivolous or in bad faith, the agency is entitled to
recover from the owner its actual and reasonable expenses incurred
to evaluate the validity and to determine the value of the claim. A
residential tenant's leasehold interest of less than 6 months in
the property is not a compensable claim under this act.
(4) In addition to other allegations required or permitted by
law, the complaint shall contain or have annexed to it all of the
following:
(a) A plan showing the property to be taken.
(b) A statement of purpose for which the property is being
acquired, and a request for other relief to which the agency is
entitled by law.
(c) The name of each known owner of the property being taken.
(d) A statement setting forth the time within which motions
for review under section 6 shall be filed; the amount that will be
awarded and the persons to whom the amount will be paid in the
event of a default; and the deposit and escrow arrangements made
under subsection (5).
(e) A declaration signed by an authorized official of the
agency declaring that the property is being taken by the agency.
The declaration shall be recorded with the register of deeds of
each county within which the property is situated. The declaration
shall include all of the following:
(i) A description of the property to be acquired sufficient for
its identification and the name of each known owner.
(ii) A statement of the estate or interest in the property
being taken. Fluid mineral and gas rights and rights of access to
and over the highway are excluded from the rights acquired unless
the rights are specifically included.
(iii) A statement of the sum of money estimated by the agency to
be just compensation for each parcel of property being acquired.
(iv) Whether the agency reserves or waives its rights to bring
federal or state cost recovery actions against the present owner of
the property.
(5) When the complaint is filed, the agency shall deposit the
amount estimated to be just compensation with a bank, trust
company, or title company in the business of handling real estate
escrows, or with the state treasurer, municipal treasurer, or
county treasurer. The deposit shall be set aside and held for the
benefit of the owners, to be disbursed upon order of the court
under section 8.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5817(request no.
05070'05).
(b) Senate Bill No.____ or House Bill No. 5818(request no.
06017'06).
(c) Senate Bill No.____ or House Bill No. 5819(request no.
06018'06).
(d) Senate Bill No.____ or House Bill No. 5820(request no.
06019'06).