September 22, 2015, Introduced by Reps. Geiss, Pettalia, Dianda, Santana, Chang and Sarah Roberts and referred to the Committee on Tax Policy.
A bill to amend 1980 PA 87, entitled
"The uniform condemnation procedures act,"
by amending section 5 (MCL 213.55), as amended by 2006 PA 439.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Before initiating negotiations for the purchase of
property,
the an agency shall establish an amount that it believes
to be just compensation for the property and promptly shall submit
to the owner a good faith written offer to acquire the property for
the full amount so established. At the same time, if the taking of
the property might require relocation, the agency shall provide
written notice to the occupants of the property stating that an
eminent domain proceeding has commenced and outlining the
occupants' basic legal rights in the process, including, but not
limited to, the fact that any person who has a leasehold interest
of less than 6 months is entitled to a $3,500.00 moving allowance
as provided under section 2 of 1965 PA 40, MCL 213.352, and that an
individual who is a residential occupant may not be displaced until
moving expenses or a moving allowance is paid as provided under
1965 PA 40, MCL 213.351 to 213.355, and the person has had a
reasonable opportunity, not to exceed 180 days after the payment
date of moving expenses or the moving allowance as provided under
1965 PA 40, MCL 213.351 to 213.355, to relocate to a comparable
replacement dwelling. If there is more than 1 owner of a parcel of
the property, the agency may make a single, unitary good faith
written
offer. The good faith offer shall must state whether the
agency reserves or waives its rights to bring federal or state cost
recovery actions against the present owner of the property arising
out of a release of hazardous substances at the property, and the
agency's
appraisal of just compensation for the property shall must
reflect
such the reservation or waiver. The amount shall must not
be less than the agency's appraisal of just compensation for the
property. If the owner fails to provide documents or information as
required by subsection (2), the agency may base its good faith
written offer on the information otherwise known to the agency
regardless
of whether or not the agency has
sought a court order
under subsection (2). The agency shall provide the owner of the
property and the owner's attorney with an opportunity to review the
written appraisal, if an appraisal has been prepared, or, if an
appraisal has not been prepared, the agency shall provide the owner
or the owner's attorney with a written statement and summary,
showing the basis for the amount the agency established as just
compensation
for the property. If an the
agency is unable to agree
with the owner for the purchase of the property, after making a
good faith written offer to purchase the property, the agency may
file a complaint for the acquisition of the property in the circuit
court in the county in which the property is located. If a parcel
of
the property is situated located in
2 or more counties and an
owner
resides in 1 of the counties, the complaint shall must be
filed in the county in which the owner is a resident. If a parcel
of
the property is situated located in
2 or more counties and an
owner does not reside in 1 of the counties, the complaint may be
filed
in any of the counties in which the property is situated.
located.
The complaint shall ask must request that the court
ascertain and determine just compensation to be made for the
acquisition of the described property. As used in this subsection,
"comparable replacement dwelling" means any dwelling that is all of
the following:
(a) Decent, safe, and sanitary.
(b) Adequate in size to accommodate the occupants.
(c) Within the financial means of the individual.
(d) Functionally equivalent.
(e) In an area not subject to unreasonable adverse
environmental conditions.
(f) In a location generally not less desirable than the
location of the individual's dwelling with respect to public
utilities, facilities, services, and the individual's place of
employment.
(2)
During the period in which the an
agency is establishing
just
compensation for the an owner's parcel, the agency has the
right
to may secure tax returns, financial statements, and other
relevant financial information for a period not to exceed 5 years
before the agency's request. The owner shall produce the
information within 21 business days after receipt of a written
request from the agency. The agency shall reimburse the owner for
actual, reasonable costs incurred in reproducing any requested
documents, plus other actual, reasonable costs of not more than
$1,000.00 incurred to produce the requested information. Within 45
days after production of the requested documents and other
information, the owner shall provide to the agency a detailed
invoice for the costs of reproduction and other costs sought. The
owner is not entitled to a reimbursement of costs under this
subsection if the reimbursement would be duplicative of any other
reimbursement to the owner. If the owner fails to provide all
documents and other information requested by the agency under this
section,
subsection, the agency may file a complaint and proposed
order to show cause in the circuit court in the county specified in
subsection (1). The court shall immediately hold a hearing on the
agency's proposed order to show cause. The court shall order the
owner to provide documents and other information requested by the
agency that the court finds to be relevant to a determination of
just compensation. An agency shall keep documents and other
information
that an owner provides to the agency under this section
subsection confidential. However, the agency and its experts and
representatives may utilize the documents and other information to
determine just compensation, may utilize the documents and other
information in legal proceedings under this act, and may utilize
the documents and other information as provided by court order. If
the owner unreasonably fails to timely produce the documents and
other
information, the owner shall be is
responsible for all
expenses incurred by the agency in obtaining the documents and
other information. This section does not affect any right a party
may otherwise have to discovery or to require the production of
documents and other information upon commencement of an action
under
this act. A The agency
shall provide a copy of this section
shall
be provided to the owner with the
agency's request.
(3) In determining just compensation, all of the following
apply:
(a) If an owner claims that the agency is taking property
other than the property described in the good faith written offer
or claims a right to compensation for damage caused by the taking,
apart from the value of the property taken, and not described in
the good faith written offer, the owner shall file a written claim
with the agency stating the nature and substance of that property
or
damage. The owner's written claim shall must provide sufficient
information and detail to enable the agency to evaluate the
validity of the claim and to determine its value. The owner shall
file the claim within 90 days after the good faith written offer is
made
pursuant to section 5(1) subsection
(1) or 180 days after the
complaint is served, whichever is later, unless a later date is set
by the court for reasonable cause. If the appraisal or written
estimate of value is provided within the established period for
filing written claims, the owner's appraisal or written estimate of
value may serve as the written claim under this act. If the owner
fails to timely file the written claim under this subsection, the
claim is barred.
(b) The parties shall exchange the agency's updated appraisal
reports, if any, and the owner's appraisal report within 90 days
after the expiration of the period for filing written claims,
unless a later date is set by the court in accordance with section
11(1) for reasonable cause. If the agency believes that the
information provided by the owner is not sufficient to allow the
evaluation of the claim, the agency may request additional
information from the owner and, if that information is not
provided, may ask the court to compel the owner to provide
additional information to enable the agency to evaluate the
validity of the claim and to determine its value. If the owner
fails to provide sufficient information after being ordered to do
so by the court, the court may assess an appropriate sanction in
accordance with the Michigan court rules for failing to comply with
discovery orders, including, but not limited to, barring the claim.
In addition, the court also shall consider any failure to provide
timely information when it determines the maximum reimbursable
attorney fees under section 16.
(c) For any claim that has not fully accrued or is continuing
in nature when the claim is filed, the owner shall provide
information then reasonably available that would enable the agency
to evaluate the claim, subject to the owner's continuing duty to
supplement that information as it becomes available. The owner
shall provide all supplementary information at least 90 days before
trial, and the court shall afford the agency a reasonable
opportunity for discovery once all supplementary information is
provided and allow that discovery to proceed until 30 days before
trial. For reasonable cause, the court may extend the time for the
owner to provide information to the agency and for the agency to
complete discovery. If the owner fails to provide supplementary
information as required under this subdivision, the court may
assess an appropriate sanction in accordance with the Michigan
court rules for failing to comply with discovery orders, including,
but not limited to, barring the claim. In addition, the court also
shall consider any failure to provide timely supplemental
information when it determines the maximum reimbursable attorney
fees under section 16.
(d) After receiving a written claim from an owner, the agency
may provide written notice that it contests the compensability of
the claim, establish an amount that it believes to be just
compensation for the claim, or reject the claim. If the agency
establishes an amount it believes to be just compensation for the
claim, the agency shall submit a good faith written offer for the
claim. The sum of the good faith written offer for all claims
submitted under this subsection or otherwise disclosed in discovery
for all items of property or damage plus the original good faith
written offer constitutes the good faith written offer for purposes
of determining the maximum reimbursable attorney fees under section
16.
(e) If the owner files a claim that is frivolous or in bad
faith, the agency is entitled to recover from the owner its actual
and reasonable expenses incurred to evaluate the validity and to
determine the value of the claim.
(f) A residential tenant's leasehold interest of less than 6
months in the property is not a compensable claim under this act.
(4) In addition to other allegations required or permitted by
law,
the complaint shall must contain or have annexed to it all of
the following:
(a) A plan showing the property to be taken.
(b) A statement of purpose for which the property is being
acquired, and a request for other relief to which the agency is
entitled by law.
(c) The name of each known owner of the property being taken.
(d) A statement setting forth the time within which motions
for
review under section 6 shall must
be filed; the amount that
will be awarded and the persons to whom the amount will be paid in
the event of a default; and the deposit and escrow arrangements
made under subsection (5).
(e) A declaration signed by an authorized official of the
agency declaring that the property is being taken by the agency.
The
declaration shall must be recorded with the register of deeds
of
each county within which the property is situated. located. The
declaration shall include all of the following:
(i) A description of the property to be acquired sufficient for
its identification and the name of each known owner.
(ii) A statement of the estate or interest in the property
being taken. Fluid mineral and gas rights and rights of access to
and
over the a highway are excluded from the rights acquired unless
the rights are specifically included.
(iii) A statement of the sum of money estimated by the agency to
be just compensation for each parcel of property being acquired.
(iv) Whether the agency reserves or waives its rights to bring
federal or state cost recovery actions against the present owner of
the property.
(5) When the complaint is filed, the agency shall deposit the
amount estimated to be just compensation with a bank, trust
company, or title company in the business of handling real estate
escrows, or with the state treasurer, municipal treasurer, or
county
treasurer. The deposit shall must
be set aside and held for
the benefit of the owners, to be disbursed upon order of the court
under section 8.
(6) If the property being taken is a principal residence for
which an exemption from certain local taxation is granted under
section 7cc of the general property tax act, 1893 PA 206, MCL
211.7cc,
the agency is obligated to shall
pay an additional amount
to
the owner or owners , which shall be deposited along and deposit
that amount with the amount estimated to be just compensation as
provided in subsection (5). The agency shall determine the
additional
amount shall be determined by subtracting the taxable
value of the property from the state equalized value of the
property, multiplying that amount by the total applicable property
tax
millage rate, applicable to the property taken, and
multiplying
that result by the number of years the owner or owners have owned
the
principal residence, but not more than 5 years. the following
number of years:
(a) Five years, unless subdivision (b) applies.
(b) Ten years, if, within 180 days after title to the property
being taken vests in the agency, the owner or owners purchase a
replacement dwelling to be used as their principal residence that
is located in the same city, village, or township as the property
being taken.
(7) As used in this section, "taxable value" means that value
determined under section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.