SB-0472, As Passed Senate, September 7, 2011
June 15, 2011, Introduced by Senator MOOLENAAR and referred to the Committee on Agriculture.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 36105 and 36106 (MCL 324.36105 and 324.36106),
as amended by 2002 PA 75.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 36105. (1) If an owner of open space land desires an open
space
development rights easement, and the land is subject to
described
in section 36101(j)(i), the procedures for filing and
processing of an application provided by the state land use agency
shall
follow the same procedures as provided in section 36104. ,
except
However, subsections (2) to
(4) apply instead of section
36104(7)
and (12) do not apply to an open space development rights
easement.(8), and subsection (6) applies instead of
section
36104(12).
(2) The state land use agency, within 60 days after the open
space development rights easement application is received, shall
approve or reject the application. The state land use agency shall
approve the application if the land that is the subject of the
application meets all of the following requirements:
(a) Is 15 acres or more in size.
(b) Does not contain any residential, commercial, or
industrial structures.
(c) Is not operated as a commercial facility.
(3) If the application is approved by the state land use
agency, the state land use agency shall prepare an open space
development rights easement that includes all of the following
provisions:
(a) A structure shall not be built on the land without the
approval of the state land use agency.
(b) Improvement to the land shall not be made without the
approval of the state land use agency.
(c) An interest in the land shall not be sold, except for a
scenic, access, or utility easement that does not substantially
hinder the character of the open space land.
(d) Access to the open space land may be provided if access is
agreed to by the owner and if access will not jeopardize the
conditions of the land.
(e) Any other condition or restriction on the land as agreed
to by the parties that is considered necessary to preserve the land
or appropriate portions of it as open space land.
(4) (3)
Upon receipt of the application,
the state land use
agency
shall notify the state tax commission. Upon Within 60 days
after
receiving notification, the state tax
commission shall within
60
days make an on-site appraisal of
the land in compliance with
the Michigan state tax commission assessors manual. The application
shall contain a statement specifying the current fair market value
of the land and the current fair market value of the development
rights.
The If the application is
approved by the state land use
agency under subsection (2), the state land use agency shall submit
to
the legislature commission
of agriculture and rural development
each application for an open space development rights easement and
an
analysis of its cost to the state. The application shall be
approved
in both houses by a resolution concurred in by a majority
of
the members elected and serving in each house. The amount of the
cost
shall be returned to the local governing body if lost revenues
are
indicated. A commission of
agriculture and rural development
shall approve or reject the application. If the application is
approved, a copy of the approved application and the open space
development rights easement shall be forwarded by the state land
use agency to the applicant for execution and to the local
assessing
office where the land is situated.located.
(5) (4)
If an application for an open space
development rights
easement is rejected under subsection (2) or (4), the applicant may
reapply for an open space development rights easement beginning 1
year after the rejection.
(6) (5)
The development rights held by the
state as expressed
in an open space development rights easement under this section are
exempt from ad valorem taxation. The legislature by annual
appropriation shall reimburse the local taxing authorities for
revenue lost as a result of the application of this subsection.
Sec. 36106. (1) An owner of open space land desiring an open
space
development rights easement whose land is subject to
described in section 36101(j)(ii) may apply by filing an application
with the local governing body. The application shall be made on a
form prescribed by the state land use agency. The application shall
contain
information reasonably necessary to properly identify the
land as open space. This information shall include a land survey or
a legal description of the land and a map showing the significant
natural features and all structures and physical improvements
located on the land. In the application, the owner may waive the
exemption from ad valorem taxation under subsection (12) that would
otherwise apply if the open space development rights easement is
approved.
(2) Upon receipt of an application, the local governing body
shall notify the county planning commission, the regional planning
commission, and the soil conservation district agency. If the local
governing body is the county board of commissioners, the county
board shall also notify the township board of the township in which
the
land is situated. located.
If the land is located within
3
miles of the boundary of a city or within 1 mile of the boundary of
a village, the local governing body shall notify the governing body
of the city or village.
(3)
An entity Within 30 days
after receiving notice under
subsection
(2), has 30 days to an entity may review, comment, and
make recommendations to the local governing body with which the
application was filed.
(4) The local governing body shall approve or reject the
application after considering the comments and recommendations of
the reviewing entities and within 45 days after the application was
received by the local governing body, unless that period is
extended by agreement of the parties involved. The local governing
body's approval or rejection of the application shall be based
upon, and consistent with, rules promulgated by the state land use
agency under section 36116. If the local governing body does not
act within the time prescribed or agreed upon, the applicant may
proceed as provided in subsection (9) as if the application was
rejected.
(5) If the application is approved by the local governing
body, the local governing body shall prepare the open space
development rights easement. If the application is approved by the
state land use agency on appeal, the state land use agency shall
prepare the easement. An easement prepared under this section shall
contain all of the following provisions:
(a) A structure shall not be built on the land without the
approval of the local governing body.
(b) An improvement to the land shall not be made without the
approval of the local governing body.
(c) An interest in the land shall not be sold, except for a
scenic, access, or utility easement that does not substantially
hinder the character of the open space land.
(d) Public access to the open space land may be provided if
agreed upon by the owner and if access will not jeopardize the
conditions of the land.
(e) Any other condition or restriction on the land as agreed
to by both parties that is considered necessary to preserve the
land or appropriate portions of it as open space land.
(6) Upon receipt of the application, the local governing body
shall direct either the local assessing officer or an independent
certified assessor to make an on-site appraisal of the land within
30 days in compliance with the Michigan state tax commission
assessors manual. The approved application shall contain a
statement specifying the current fair market value of the land and
the
current fair market value of the development rights, if any. A
This subsection does not apply if, in the application under
subsection (1), the owner waived the exemption from ad valorem
taxation under subsection (12).
(7) The state land use agency or local governing body,
whichever prepared the development rights easement, shall forward a
copy of the approved application and the development rights
easement
shall be forwarded to the applicant for his or her
execution.
(8) (7)
If the owner of the land executes
the approved open
space
development rights easement, it
shall be returned the owner
shall
return it to the local governing body
for its execution. The
local
governing body shall record execute
the open space
development rights easement and record it with the register of
deeds
of the county. A The local
governing body shall forward a
copy
of the approved executed easement shall be forwarded to the to
both of the following for their information:
(a)
The local assessing office. and
to the However, this
subdivision does not apply if, in the application, the owner waived
the exemption from ad valorem taxation.
(b)
The state land use agency. for
their information.
(8)
The decision of the local governing body may be appealed
to
the state land use agency, pursuant to subsection (9).
(9) If an application for an open space development rights
easement is rejected by the local governing body, the local
governing body shall notify the applicant and all reviewing
entities with a written statement of the reasons for rejection.
Within 30 days after receipt of the notice of the rejected
application, the applicant may appeal the rejection to the state
land
use agency. The state land use agency shall have 60 days to
approve
or reject the application. The state land use agency shall
submit
to the legislature each approved application for an open
space
development rights easement and an analysis of its cost. The
application
shall be approved in both houses by a resolution
concurred
in by a majority of the members elected and serving in
each
house. The amount of the cost shall be returned to the local
governing
body where lost revenues are indicated. A Subject to
subsection (10), if, in the application, the owner waived the
exemption from ad valorem taxation, the state land use agency,
within 60 days after receipt of the appeal, shall reject or finally
approve the application. Subject to subsection (10), if the owner
did not waive the exemption from ad valorem taxation, the state
land use agency, within 60 days after receipt of the appeal, shall
reject the application or approve the application and submit the
approved application to the commission of agriculture and rural
development. The commission of agriculture and rural development
shall reject or finally approve the application in which the owner
did not waive the exemption from ad valorem taxation. If an
application is finally approved, a copy of the approved application
and an appropriate easement shall be forwarded by the state land
use agency to the applicant for execution and to the local
governing
body where the land is situated.located.
(10) The state land use agency shall approve an application
under subsection (9) if the land that is the subject of the
application meets all of the following requirements:
(a) Is 15 acres or more in size.
(b) Does not contain any residential, commercial, or
industrial structures.
(c) Is not operated as a commercial facility.
(d) Bears significant importance to the public interest of
more than local concern as a valuable land resource.
(11) (10)
If an application for an open space
development
rights easement is rejected under subsection (4), the applicant may
reapply for an open space development rights easement beginning 1
year after the final rejection.
(12) (11)
The development rights held by the
local governing
body
as expressed in under an open space development rights
easement are exempt from ad valorem taxation unless, in the
application under subsection (1), the owner waived the exemption.
The legislature by annual appropriation shall reimburse the local
taxing authorities for revenue lost as a result of the application
of this subsection.