Bill Text: MI HB4881 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Property: land sales; prohibition for foreign entity to purchase farmland in Michigan; provide for. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds secs. 36a & 36b.
Spectrum: Partisan Bill (Republican 39-0)
Status: (Introduced) 2023-06-29 - Bill Electronically Reproduced 06/28/2023 [HB4881 Detail]
Download: Michigan-2023-HB4881-Introduced.html
HOUSE BILL NO. 4881
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 sections 36a and 36b.
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.
Sec. 35. (1) Any Except as otherwise provided in section 36a, 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 section 36a, 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 section 36a, 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, an adversarial entity shall not own, purchase, lease, possess, exercise control over, or otherwise acquire land in this state. An adversarial entity that owns, leases, possesses, exercises control over, or holds land in this state on the effective date of the amendatory act that added this section may continue to own, lease, possess, exercise control over, or hold the land but shall not purchase or otherwise acquire additional land in this state. An adversarial entity that owns, leases, possesses, exercises control over, or holds agricultural land in this state on the effective date of the amendatory act that added this section shall register under section 36b.
(2) Subsection (1) does not apply to land acquired after the effective date of the amendatory act that added this section if the adversarial entity sells or otherwise disposes of its interest in the land no later than 60 months after the effective date of the amendatory act that added this section and the land is acquired by any of the following:
(a) Devise or descent.
(b) A bona fide encumbrance on land taken for security.
(c) 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 land, whether created by mortgage or otherwise.
(3) If a person owns, purchases, leases, possesses, exercises control over, or otherwise acquires land after the effective date of the amendatory act that added this section, and the person's status changes so that the person becomes an adversarial entity, the adversarial entity shall sell or otherwise dispose of its interest in the land no later than 60 months after becoming an adversarial entity.
(4) If an adversarial entity acquires or holds land in violation of this section, the department shall report the violation to the attorney general.
(5) On receipt of the report under subsection (4), the attorney general shall do all of the following:
(a) Initiate an action in the circuit court of any county in which the 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 land is located.
(6) In any action initiated under subsection (5), if a court finds that the land at issue was acquired or held in violation of this section, the court shall do both of the following:
(a) Enter an order declaring that the 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 land is located.
(b) Declare the land escheated to this state and order the sale of the 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 to pay court costs and the remaining funds, if any, must be paid to the person divested of the land.
(7) A person that acquires or holds land in violation of this section remains in violation of this section for as long as the person holds an interest in the land.
(8) As used in this section:
(a) "Adversarial entity" means any of the following:
(i) An entity included on the entity list.
(ii) Any person that has sworn an oath of loyalty to an entity on the entity list.
(iii) A governmental entity of a nonmarket economy country or a state sponsor of terrorism.
(iv) Any person that has sworn an oath of loyalty to a governmental entity of a nonmarket economy country or a state sponsor of terrorism.
(b) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land.
(c) "Commission" means the Michigan commission of agriculture and rural development.
(d) "Department" means the department of agriculture and rural development.
(e) "Entity list" means the Entity List published by the Bureau of Industry and Security under the United States Department of Commerce, 15 CFR part 744, supplement no. 4.
(f) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252.
(g) "Local government" means a county, city, township, or village in this state.
(h) "Nonmarket economy country" means any country the United States Department of Commerce deems not to operate on market principles of cost or pricing structures, so that sales of merchandise in the country do not reflect the fair value of merchandise.
(i) "Sensitive area" means any of the following:
(i) A key facility as that term is defined in section 552c of the Michigan penal code, 1931 PA 328, MCL 750.552c.
(ii) A location that is owned or possessed by the United States Armed Forces or the Michigan national guard.
(iii) A location that is important for national security or the security of this state.
(j) "State sponsor of terrorism" means that term as defined in 48 CFR 225.772-1.
Sec. 36b. (1) No later than 1 year after the effective date of the amendatory act that added this section, an adversarial entity that owns, leases, possesses, exercises control over, or holds agricultural land in this state on the effective date of the amendatory act that added this section shall register with the department under this section.
(2) The registration must be in a form and manner prescribed by the department and include, but not be limited to, all of the following information:
(a) The name of the registrant of the agricultural land.
(b) If the registrant of the agricultural land is an agent, trustee, or fiduciary of an adversarial entity, the name of any 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.
(3) No later than 6 months after the effective date of the amendatory act that added this section, the department shall make registration available electronically on the department website.
(4) The department shall distribute registration forms to every county clerk's office in this state.
(5) As used in this section:
(a) "Adversarial entity" means any of the following:
(i) An entity included on the entity list.
(ii) Any person that has sworn an oath of loyalty to an entity on the entity list.
(iii) A governmental entity of a nonmarket economy country or a state sponsor of terrorism.
(iv) Any person that has sworn an oath of loyalty to a governmental entity of a nonmarket economy country or a state sponsor of terrorism.
(b) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land.
(c) "Department" means the department of agriculture and rural development.
(d) "Entity list" means the Entity List published by the Bureau of Industry and Security under the United States Department of Commerce, 15 CFR part 744, supplement no. 4.
(e) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252.
(f) "Nonmarket economy country" means any country the United States Department of Commerce deems not to operate on market principles of cost or pricing structures, so that sales of merchandise in the country do not reflect the fair value of merchandise.
(g) "State sponsor of terrorism" means that term as defined in 48 CFR 225.772-1.
