December 9, 2009, Introduced by Reps. Amash, Agema, Meekhof, Horn, Walsh, McMillin, Moss, Lori, Calley, Haveman, Daley, Genetski, Lund, Rogers, Kowall and Opsommer and referred to the Committee on Judiciary.
A bill to require just compensation for certain reductions in
the value of real property due to land use regulations; and to
require certain duties of certain governmental entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Land use regulation" means a statute, rule, ordinance,
resolution, or law enacted by this state or a political subdivision
of this state that regulates the use or division of land or any
interest in land or that regulates accepted farming or forestry
practices.
(b) "Governmental entity" means any of the following:
(i) The legislative branch of state government.
(ii) A board, commission, council, department, or other agency
in the executive branch of state government, including an
institution of higher education.
(iii) A political subdivision of this state.
(c) "Owner" means a person with legal or equitable title to
affected private real property.
(d) "Fair market value" means the price a buyer would pay a
seller in a voluntary exchange.
(e) "Property" means an interest in private real property
recognized by common law, including a groundwater or surface water
right of any kind, that is not owned by the federal government,
this state, or a political subdivision of this state.
Sec. 2. If a governmental entity enacts a land use regulation
that restricts the use of property and that reduces the value of
the property to the owner, then the owner is entitled to just
compensation from the governmental entity that enacted the land use
regulation.
Sec. 3. (1) The governmental entity that enacted the land use
regulation that gives rise to a claim under section 2 shall provide
just compensation for that claim.
(2) Just compensation under this act shall be based on the
reduction in the fair market value of the property resulting from
the land use regulation.
Sec. 4. This act does not apply to a land use regulation that
was enacted before the effective date of this act or before the
claimant's acquisition date, or to a land use regulation that does
either of the following:
(a) Restricts or prohibits activities commonly and
historically recognized as public nuisances under common law.
(b) Is required by federal law.
Sec. 5. A governmental entity may adopt or apply procedures
for the processing of claims for just compensation under this act.
However, these procedures shall not be a prerequisite to the filing
of a claim for just compensation under this act, and the failure of
the owner to file an application for a land use permit with the
governmental entity shall not serve as grounds for dismissal,
abatement, or delay of a claim for just compensation under this
act.
Sec. 6. For claims arising from land use regulations enacted
on or after the effective date of this act, written demand for just
compensation shall be made within 2 years after the enactment of
the land use regulation, or within 2 years after the date the owner
submits a land use application in which the land use regulation is
an approval criterion, whichever is later.
Sec. 7. Just compensation is due the owner if the land use
regulation continues to apply to the property 180 days after the
owner makes written demand for just compensation under section 6 to
the governmental entity enacting or enforcing the land use
regulation.
Sec. 8. (1) If the land use regulation that is the subject of
a claim for just compensation continues to apply to the property
for more than 180 days after the owner has made written demand for
just compensation under this act, then the owner, or any interest
therein, may bring an action for just compensation under this act
in the circuit court for the county in which the property is
located.
(2) In lieu of payment of just compensation under this act,
the governmental entity responsible for enacting the land use
regulation may modify or remove the land use regulation or land use
regulations.
(3) The owner is entitled to reasonable attorney fees,
expenses, costs, and other disbursements reasonably incurred in an
action brought under this act.
Sec. 9. The remedies created by this act are in addition to
any other remedy under the state constitution of 1963 or the United
States constitution and are not intended to modify or replace any
constitutional remedy.