substitute for
House BILL NO. 4233
A bill to amend 1846 RS 66, entitled
"Of estates in dower, by the curtesy, and general provisions concerning real estate,"
by amending the title and sections 35 and 36 (MCL 554.135 and 554.136) and by adding section 36a.
the peoplE of the state of michigan enact:
Of estates in dower, estates by the curtesy, and general provisions concerning real estate, prohibitions on certain foreign ownership of certain real estate, and the prescription of remedies and civil sanctions.
Sec. 35. (1) Any Except as otherwise provided in sections 36a and 36b, an alien may acquire and hold lands, land, or any right thereto or interest therein, in land, by purchase, devise, or descent, and he may convey, mortgage, and devise the same, and if he shall die that land or right or interest in land. If an alien dies intestate, the same shall alien's land or right or interest in land must descend to his the alien's heirs. ; and in all cases such lands shall
(2) Except as otherwise provided in sections 36a and 36b, land or a right or interest in land described in subsection (1) must be held, conveyed, mortgaged, or devised, or shall must descend in like manner, and with like effect, as if such the alien were a native citizen of this state , or of the United States.
Sec. 36. The Except as otherwise provided in sections 36a and 36b, the title to any lands heretofore land conveyed shall must not be questioned, nor or in any manner affected, by reason because of the alienage of any person from or through whom such that title may have been was derived.
Sec. 36a. (1) Beginning on the effective date of the amendatory act that added this section, except as otherwise provided in this section, a foreign principal shall not purchase or otherwise acquire agricultural land in this state. A foreign principal that owns or holds agricultural land in this state on the effective date of the amendatory act that added this section may continue to own or hold the agricultural land, but shall not purchase or otherwise acquire additional agricultural land in this state.
(2) Subsection (1) does not apply to the following:
(a) Agricultural land that is acquired by devise or descent if that agricultural land is sold or otherwise disposed of not later than 2 years after the date of acquisition.
(b) A bona fide encumbrance on agricultural land taken for security.
(c) Agricultural land that is acquired by a process of law in the collection of a debt, by a deed in lieu of foreclosure, under a forfeiture of a contract for deed, or by any procedure for the enforcement of a lien or claim on the agricultural land, whether created by mortgage or otherwise if both of the following conditions are met:
(i) The agricultural land is sold or otherwise disposed of not later than 2 years after the date of acquisition.
(ii) Pending the sale or disposition, the agricultural land is not used for a purpose other than farming, and the agricultural land is not used for farming except under lease to a person not subject to the restriction under subsection (1).
(3) If an entity that is prohibited from purchasing or otherwise acquiring agricultural land under this section has a national security agreement with the Committee on Foreign Investment in the United States and continues to maintain the national security agreement, the entity may purchase, lease, or acquire a maximum of 350 acres of agricultural land for either of the following purposes:
(a) Agricultural research and development.
(b) Experimental purposes, including testing, development, or production of crop production inputs for sale or resale to farmers, including, but not limited to, any of the following:
(i) Seeds.
(ii) Plants.
(iii) Pesticides.
(iv) Soil amendments.
(v) Biologicals.
(vi) Fertilizers.
(4) A person that purchases or otherwise acquires agricultural land in this state after the effective date of the amendatory act that added this section, and whose status changes so that the person becomes a foreign principal shall divest itself of all right, title, and interest in the agricultural land not later than 2 years after the date of the change in status.
(5) A foreign principal that owns agricultural land on or after the effective date of the amendatory act that added this section shall register the agricultural land with the secretary of state not later than 60 days after the effective date of the amendatory act that added this section or not later than 60 days after acquiring the agricultural land, whichever is later. The registration must be in a form and manner prescribed by the secretary of state and contain all of the following information:
(a) The name of the owner of the agricultural land.
(b) If the owner of the agricultural land is an agent, trustee, or fiduciary of a foreign principal, the name of the foreign principal for whom that agricultural land was acquired as agent, trustee, or fiduciary.
(c) The location and number of acres of the agricultural land by municipality and county.
(d) The date the agricultural land was acquired.
(6) If a foreign principal acquires or holds agricultural land in violation of this section, the secretary of state shall report the violation to the attorney general.
(7) On receipt of the report under subsection (6), the attorney general shall do both of the following:
(a) Initiate an action in the circuit court of any county in which the agricultural land is located.
(b) File notice of the pendency of the action initiated under subdivision (a) with the register of deeds in each county in which any of the agricultural land is located.
(8) If an easement, covenant, condition, or restriction is properly created and recorded and does not otherwise violate this act, a circuit court action under subsection (7) does not extinguish or otherwise eliminate the easement, covenant, condition, or restriction.
(9) In any action initiated under subsection (7), if the court finds that the foreign principal violated this section, the court shall do 1 of the following, as applicable:
(a) If the court finds that the agricultural land at issue was acquired or held in violation of this section, do both of the following:
(i) Enter an order declaring that the agricultural land has been acquired or held in violation of this section and file a copy of that order with the register of deeds in each county in which any portion of the agricultural land is located.
(ii) Declare the agricultural land escheated to this state and order the sale of the agricultural land in the same manner as provided by law for the foreclosure of a mortgage on real estate for default of payment. The proceeds of this sale must be used in the following order of priority:
(A) To pay court costs.
(B) Except for liens that are to remain on the property under the terms of the sale or by court order, to lienholders in the lienholders' order of priority.
(C) To pay outstanding fines.
(D) The remaining funds, if any, must be paid to the person divested of the agricultural land.
(b) If the court finds that a foreign principal failed to timely register the agricultural land under subsection (5), impose a civil fine of not more than $2,000.00 for each violation.
(10) A person that acquires or holds agricultural land in violation of this section remains in violation of this section for as long as the person holds an interest in the agricultural land.
(11) All liability for failure to comply with this section is limited solely to the person acquiring an interest in the agricultural land. No person other than the person acquiring an interest in the agricultural land is required to determine or inquire into whether another person is or may be subject to this section.
(12) No title to land is invalid or subject to divestiture due to a violation of this section by any former owner or other person holding or owing a former interest in the land.
(13) As used in this section:
(a) "Agricultural land" means that term as defined under section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252.
(b) "Foreign country of concern" means any of the following:
(i) The People's Republic of China.
(ii) The Russian Federation.
(iii) The Islamic Republic of Iran.
(iv) The Democratic People's Republic of Korea.
(v) The Republic of Cuba.
(vi) The Venezuelan regime of Nicol?s Maduro.
(vii) The Syrian Arab Republic.
(viii) An agency or other entity under the significant control of a country described in subparagraphs (i) to (vii).
(c) "Foreign principal" means any of the following:
(i) The government or any official of the government of a foreign country of concern.
(ii) A political party, member of a political party, or any subdivision of a political party in a foreign country of concern.
(iii) A partnership, association, corporation, organization, or other combination of persons, or a subsidiary of a partnership, association, corporation, organization, or other combination of persons, organized under the laws of or having its principal place of business in a foreign country of concern.
Enacting section 1. This amendatory act does not take effect unless House Bill No. 4234 of the 103rd Legislature is enacted into law.