SENATE BILL NO. 519 April 15, 1999, Introduced by Senators DUNASKISS, BULLARD, JOHNSON and MC MANUS and referred to the Committee on Local, Urban and State Affairs. 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: 1 Sec. 5. (1) Before initiating negotiations for the purchase 2 of property, the agency shall establish an amount that it 3 believes to be just compensation for the property and promptly 4 shall submit to the owner a good faith written offer to acquire 5 the property for the full amount so established. If there is 6 more than 1 owner of a parcel, the agency may make a single, uni- 7 tary good faith written offer. The good faith offer shall state 8 whether the agency reserves or waives its rights to bring federal 9 or state cost recovery actions against the present owner of the 10 property arising out of a release of hazardous substances at the 11 property and the agency's appraisal of just compensation for the 01651'99 * TMV 2 1 property shall reflect such reservation or waiver. The amount 2 shall not be less than the agency's appraisal of just compensa- 3 tion for the property. If the owner fails to provide documents 4 or information as required by subsection (2), the agency may base 5 its good faith written offer on the information otherwise known 6 to the agency whether or not the agency has sought a court order 7 under subsection (2). The agency shall provide the owner of the 8 property and the owner's attorney with an opportunity to review 9 the written appraisal, if an appraisal has been prepared, or if 10 an appraisal has not been prepared, the agency shall provide the 11 owner or the owner's attorney with a written statement and summa- 12 ry, showing the basis for the amount the agency established as 13 just compensation for the property. If an agency is unable to 14 agree with the owner for the purchase of the property, after 15 making a good faith written offer to purchase the property, the 16 agency may file a complaint for the acquisition of the property 17 in the circuit court in the county in which the property is 18 located. If a parcel of property is situated in 2 or more coun- 19 ties and an owner resides in 1 of the counties, the complaint 20 shall be filed in the county in which the owner is a resident. 21 If a parcel of property is situated in 2 or more counties and an 22 owner does not reside in 1 of the counties, the complaint may be 23 filed in any of the counties in which the property is situated. 24 The complaint shall ask that the court ascertain and determine 25 just compensation to be made for the acquisition of the described 26 property. If an agency made a good faith written offer pursuant 27 to this section before January 28, 1994but has notAND filed a 01651'99 * 3 1 complaint for acquisition of the property ON OR AFTER DECEMBER 2 26, 1996, AND IF THE ACTION IS STILL PENDING, the agency may 3 withdraw the good faith written offer and resubmit a good faith 4 written offer.that complies with this act as amended.HOWEVER, 5 THE AMOUNT OF THE RESUBMITTED GOOD FAITH WRITTEN OFFER MAY DIFFER 6 FROM THE AMOUNT OF THE WITHDRAWN GOOD FAITH WRITTEN OFFER ONLY TO 7 THE EXTENT NECESSARY TO REFLECT THE RESERVATION OR WAIVER OF 8 RIGHTS TO BRING A FEDERAL OR STATE COST RECOVERY ACTION ARISING 9 OUT OF A RELEASE OF HAZARDOUS SUBSTANCES AT THE PROPERTY. If a 10 good faith offer is resubmitted pursuant to this subsection, 11 attorney fees under section 16 shall be based on the resubmitted 12 good faith offer. 13 (2) During the period in which the agency is establishing 14 just compensation for the owner's parcel, the agency has the 15 right to secure tax returns, financial statements, and other rel- 16 evant financial information for a period not to exceed 5 years 17 before the agency's request. The owner shall produce the infor- 18 mation within 21 business days after receipt of a written request 19 from the agency. The agency shall reimburse the owner for 20 actual, reasonable costs incurred in reproducing any requested 21 documents, plus other actual, reasonable costs of not more than 22 $1,000.00 incurred to produce the requested information. Within 23 45 days after production of the requested documents and other 24 information, the owner shall provide to the agency a detailed 25 invoice for the costs of reproduction and other costs sought. 26 The owner is not entitled to a reimbursement of costs under this 27 subsection if the reimbursement would be duplicative of any other 01651'99 * 4 1 reimbursement to the owner. If the owner fails to provide all 2 documents and other information requested by the agency under 3 this section, the agency may file a complaint and proposed order 4 to show cause in the circuit court in the county specified in 5 subsection (1). The court shall immediately hold a hearing on 6 the agency's proposed order to show cause. The court shall order 7 the owner to provide documents and other information requested by 8 the agency that the court finds to be relevant to a determination 9 of just compensation. An agency shall keep documents and other 10 information that an owner provides to the agency under this sec- 11 tion confidential. However, the agency and its experts and rep- 12 resentatives may utilize the documents and other information to 13 determine just compensation, may utilize the documents and other 14 information in legal proceedings under this act, and may utilize 15 the documents and other information as provided by court order. 16 If the owner unreasonably fails to timely produce the documents 17 and other information, the owner shall be responsible for all 18 expenses incurred by the agency in obtaining the documents and 19 other information. This section does not affect any right a 20 party may otherwise have to discovery or to require the produc- 21 tion of documents and other information upon commencement of an 22 action under this act. A copy of this section shall be provided 23 to the owner with the agency's request. 24 (3) If an owner believes that the good faith written offer 25 made under subsection (1) did not include or fully include 1 or 26 more items of compensable property or damage for which the owner 27 intends to claim a right to just compensation, the owner shall, 01651'99 * 5 1 for each item, file a written claim with the agency. The owner's 2 written claim shall provide sufficient information and detail to 3 enable the agency to evaluate the validity of the claim and to 4 determine its value. The owner shall file all such claims within 5 90 days after the good faith written offer is made pursuant to 6section 5(1)SUBSECTION (1) or 60 days after the complaint is 7 filed, whichever is later. Within 60 days after the date the 8 owner files a written claim with the agency, the agency may ask 9 the court to compel the owner to provide additional information 10 to enable the agency to evaluate the validity of the claim and to 11 determine its value. For good cause shown, the court shall, upon 12 motion filed by the owner, extend the time in which claims may be 13 made, if the rights of the agency are not prejudiced by the 14 delay. Only 1 such extension may be granted. After receiving a 15 written claim from an owner, the agency may provide written 16 notice that it contests the compensability of the claim, estab- 17 lish an amount that it believes to be just compensation for the 18 item of property or damage, or reject the claim. If the agency 19 establishes an amount it believes to be just compensation for the 20 item of property or damage, the agency shall submit a good faith 21 written offer for the item of property or damage. The sum of the 22 good faith written offer for all such items of property or damage 23 plus the original good faith written offer constitutes the good 24 faith written offer for purposes of determining the maximum reim- 25 bursable attorney fees under section 16. If an owner fails to 26 file a timely written claim under this subsection, the claim is 27 barred. If the owner files a claim that is frivolous or in bad 01651'99 * 6 1 faith, the agency is entitled to recover from the owner its 2 actual and reasonable expenses incurred to evaluate the validity 3 and to determine the value of the claim. 4 (4) In addition to other allegations required or permitted 5 by law, the complaint shall contain or have annexed to it all of 6 the following: 7 (a) A plan showing the property to be taken. 8 (b) A statement of purpose for which the property is being 9 acquired, and a request for other relief to which the agency is 10 entitled by law. 11 (c) The name of each known owner of the property being 12 taken. 13 (d) A statement setting forth the time within which motions 14 for review under section 6 shall be filed; the amount that will 15 be awarded and the persons to whom the amount will be paid in the 16 event of a default; and the deposit and escrow arrangements made 17 under subsection (5). 18 (e) A declaration signed by an authorized official of the 19 agency declaring that the property is being taken by the agency. 20 The declaration shall be recorded with the register of deeds of 21 each county within which the property is situated. The declara- 22 tion shall include all of the following: 23 (i) A description of the property to be acquired sufficient 24 for its identification and the name of each known owner. 25 (ii) A statement of the estate or interest in the property 26 being taken. Fluid mineral and gas rights and rights of access 01651'99 * 7 1 to and over the highway are excluded from the rights acquired 2 unless the rights are specifically included. 3 (iii) A statement of the sum of money estimated by the 4 agency to be just compensation for each parcel of property being 5 acquired. 6 (iv) Whether the agency reserves or waives its rights to 7 bring federal or state cost recovery actions against the present 8 owner of the property. 9 (5) When the complaint is filed, the agency shall deposit 10 the amount estimated to be just compensation with a bank, trust 11 company, or title company in the business of handling real estate 12 escrows, or with the state treasurer, municipal treasurer, or 13 county treasurer. The deposit shall be set aside and held for 14 the benefit of the owners, to be disbursed upon order of the 15 court under section 8. 01651'99 * Final page. TMV