February 19, 2008, Introduced by Senators GLEASON, JELINEK and BARCIA and referred to the Committee on Agriculture.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 36110, 36112, and 36113 (MCL 324.36110,
324.36112, and 324.36113), section 36110 as amended by 1996 PA 233
and sections 36112 and 36113 as added by 1995 PA 59.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 36110. (1) Land subject to a development rights agreement
or
easement may be sold without penalty under sections section
36111,
36112, and or 36113, if the use of the land by the successor
in title complies with the provisions contained in the development
rights agreement or easement. The seller shall notify the
governmental authority having jurisdiction over the development
rights of the change in ownership.
(2) If the owner of land subject to a development rights
agreement or easement dies or becomes totally and permanently
disabled
or when if an individual essential to the operation of the
farm dies or becomes totally and permanently disabled, the land may
be relinquished from the program under this part and is subject to
a
lien pursuant to sections section
36111(11), 36112(7), and
36113(7)
36112(9), or 36113(9), as
applicable. A request for
relinquishment under this section shall be made within 3 years from
the date of death or disability. A request for relinquishment under
this subsection shall be made only by the owner in case of a
disability
or, in case of death if
the owner dies, the person who
becomes the owner through survivorship or inheritance.
(3) If an owner of land subject to a development rights
agreement becomes totally and permanently disabled or dies, land
containing structures that were present before the recording of the
development rights agreement may be relinquished from the
agreement, upon request of the disabled agreement holder or upon
request of the person who becomes an owner through survivorship or
inheritance, and upon approval of the local governing body and the
state land use agency. Not more than 2 acres may be relinquished
under this subsection unless additional land area is needed to
encompass all of the buildings located on the parcel, in which case
not more than 5 acres may be relinquished. If the parcel proposed
to be relinquished is less in area than the minimum parcel size
required by local zoning, the parcel may not be relinquished unless
a variance is obtained from the local zoning board of appeals to
allow for the smaller parcel size. The portion of the farmland
relinquished from the development rights agreement under this
subsection is subject to a lien pursuant to section 36111(11).
(4) The land described in a development rights agreement may
be divided into smaller parcels of land, each of which shall be
covered by a separate development rights agreement and each of
which shall be eligible for subsequent renewal. The separate
development rights agreements shall contain the same terms and
conditions as the original development rights agreement. The
smaller parcels created by the division must meet the minimum
requirements for being enrolled under this act or be 40 acres or
more in size. Farmland may be divided once under this subsection
without fee by the state land use agency. The state land use agency
may charge a reasonable fee not greater than the state land use
agency's actual cost of dividing the agreement for all subsequent
divisions of that farmland. When a division of a development rights
agreement is made under this subsection and is executed and
recorded, the state land use agency shall notify the applicant, the
local governing body and its assessing office, all reviewing
agencies, and the department of treasury.
(5) As used in this section, "individual essential to the
operation of the farm" means a co-owner, partner, shareholder, farm
manager, or family member, who, to a material extent, cultivates,
operates, or manages farmland under this act. An individual is
considered involved to a material extent if that individual does 1
or more of the following:
(a) Has a financial interest equal to or greater than 1/2 the
cost of producing the crops, livestock, or products and inspects
and advises and consults with the owner on production activities.
(b) Works 1,040 hours or more annually in activities connected
with production of the farming operation.
(6) The state land use agency may charge and collect a fee of
$25.00 to process each change of ownership under subsection (1) or
each division under subsection (4). The fee collected under this
subsection shall be used by the state land use agency to administer
this
act part and part 362.
Sec. 36112. (1) An open space development rights easement
pursuant
to under section 36105 shall be relinquished by the state
at the expiration of the term of the easement unless renewed with
the consent of the owner of the land. If the owner of the land has
complied with the requirements of this part regarding open space
development rights easements, the owner is entitled to automatic
renewal of the agreement upon written request of the landowner.
(2) An open space development rights easement may be
relinquished
by the state prior to before
a termination date
contained in the instrument as follows:
(a)
At any time When the state determines that the development
of the land is in the public interest and in agreement with the
owner of the land.
(b) The owner of the land may submit an application to the
local
governing body where to
which the original application for an
open space development rights easement was submitted requesting
that the development rights easement be relinquished. The
application shall be made on a form prescribed by the state land
use agency. The request for relinquishment shall be processed under
and
shall be subject to the provisions as provided in sections
36104
and 36105. for review and approval.
(3) An open space development rights easement under section
36105 shall be relinquished by the state before a termination date
contained in the instrument if the land will be devoted to the
production of crops as biomass for the generation of energy.
(4) (3)
If the a request
for relinquishment of the development
rights easement under subsection (2) is approved, the state land
use agency shall prepare an instrument providing for the
relinquishment of the open space development rights easement,
subject
to subsections (4), (5), (6), and (7), and shall record it
with the register of deeds of the county in which the land is
situated
located.
(5) (4)
At the time When a development rights easement is to
be relinquished pursuant to subsection (2)(b), the state land use
agency shall cause to be prepared and recorded a lien against the
property formerly subject to the development rights easement for
the total amount of the ad valorem taxes not paid on the
development rights during the period it was held by the state, if
any. The lien shall provide that interest at the rate of 6% per
annum compounded shall be added to the ad valorem taxes not paid
from the time the exemption was received until it is paid.
(6) (5)
The lien shall become under subsection (5) becomes
payable
to the state by the owner of record at the time when the
land or any portion of it is sold by the owner of record, or if the
land is converted to a use prohibited by the former open space
development rights easement.
(7) (6)
Upon the termination of the open
space development
rights easement pursuant to subsection (2)(a), the development
rights revert back to the owner without penalty or interest.
(8) If a development rights agreement is to be relinquished
pursuant to subsection (3), the state land use agency shall prepare
and record a lien as provided under subsections (5) and (6).
However, a lien shall not be recorded and the development rights
revert back to the owner without penalty or interest if the land is
subject to a farmland development rights easement under section
36104. If the land becomes subject to a farmland development rights
easement under section 36104 after the lien is recorded, the lien
is released and the state land use agency shall prepare and record
a discharge of lien with the register of deeds in the county in
which the land is located.
(9) (7)
Upon the natural termination
of the open space
development rights easement pursuant to subsection (1), the state
land use agency shall cause to be prepared and recorded a lien
against the property formerly subject to the open space development
rights easement. The amount of the lien shall be the total amount
of the last 7 years ad valorem taxes not paid on the development
rights during the period it was held by the state, if any. The lien
shall be without penalty or interest and shall be payable subject
to
subsection (5) (6).
(10) (8)
A copy of the renewal or relinquishment
of an open
space development rights easement shall be sent to the local
governing body's assessing office.
Sec. 36113. (1) An open space development rights easement
pursuant to section 36106 shall be relinquished by the local
governing body to which the easement was granted at the expiration
of the term of the easement unless renewed with the consent of the
owner
of the land. if If
the owner of the land has complied with
the requirements of this part regarding open space development
rights easements, the owner shall be entitled to automatic renewal
of the agreement upon written request of the landowner.
(2) An open space development rights easement may be
relinquished
by the local governing body prior to before a
termination date contained in the instrument as follows:
(a)
At any time When the local governing body determines that
the development of the land is in the public interest and in
agreement with the owner of the land.
(b) The owner of the land may submit an application to the
local
governing body having jurisdiction requesting that the
development rights easement be relinquished. The application shall
be made on a form prescribed by the state land use agency. The
request
for relinquishment shall be processed under
and shall be
subject
to the provisions as provided in section 36106. for
review
and
approval.
(3) An open space development rights easement under section
36106 shall be relinquished by the local governing body before a
termination date contained in the instrument if the land will be
devoted to the production of crops as biomass for the generation of
energy.
(4) (3)
If the request for relinquishment
of the open space
development rights easement under subsection (2) is approved, the
local governing body shall prepare an instrument providing for the
relinquishment of the open space development rights easement,
subject
to subsections (4), (5), (6), and (7), and shall record it
with the register of deeds of the county in which the land is
situated
located.
(5) (4)
At the time When an open space development rights
easement is to be relinquished pursuant to subsection (2)(b), the
local governing body shall cause to have prepared and recorded a
lien against the property formerly subject to the open space
development rights easement. The amount of the lien shall be the
total amount of the ad valorem taxes not paid on the development
rights during the period it was held by the local governing body,
if any. The lien shall provide that interest at the rate of 6% per
annum compounded shall be added to the ad valorem taxes exemption
from the time granted until the lien is paid.
(6) (5)
The lien shall become under subsection (5) becomes
payable
to the local governing body by the owner of record at the
time
when the land or any portion of it is sold by the owner
of
record, or if the land is converted to a use prohibited by the
former open space development rights easement.
(7) (6)
Upon the termination of the open
space development
rights easement pursuant to subsection (2)(a), the development
rights
revert back to the owner without penalty or interest. and
the
development rights easement upon the land expire.
(8) If a development rights agreement is to be relinquished
pursuant to subsection (3), the local governing body shall prepare
and record a lien as provided under subsections (5) and (6).
However, a lien shall not be recorded and the development rights
revert back to the owner without penalty or interest if the land is
subject to a farmland development rights easement under section
36104. If the land becomes subject to a farmland development rights
easement under section 36104 after the lien is recorded, the lien
is released and the local governing body shall prepare and record a
discharge of lien with the register of deeds in the county in which
the land is located.
(9) (7)
Upon the natural termination
of the open space
development rights easement pursuant to subsection (1), the local
governing body shall cause to be prepared and recorded a lien
against the property formerly subject to the open space development
rights easement. The amount of the lien shall be the total amount
of the last 7 years ad valorem taxes not paid on the development
rights during the period it was held by the local governing body,
if any. The lien shall be without penalty or interest and will be
payable
subject to subsection (5) (6).
(10) (8)
A copy of the renewal or
relinquishment of an open
space development rights easement shall be sent to the local
assessing office.