Bill Text: MI HB5073 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Property: land sales; sale or transfer of agricultural assets or land to foreign entities; prohibit. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds secs. 36a & 36b.
Spectrum: Partisan Bill (Republican 17-0)
Status: (Introduced) 2023-10-03 - Bill Electronically Reproduced 09/28/2023 [HB5073 Detail]
Download: Michigan-2023-HB5073-Introduced.html
HOUSE BILL NO. 5073
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, and prohibitions on certain foreign acquisition or ownership of certain real estate.
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 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 section (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 the title may have been was derived.
Sec. 36a. (1) Except as otherwise provided in this section, a foreign principal shall not directly or indirectly own or acquire by purchase, grant, devise, or descent any interest in agricultural land or real property located within 20 miles of any military installation or key facility in this state. The prohibition under this subsection does not apply to a foreign principal that acquires agricultural land or real property within 20 miles of any military installation or key facility for a diplomatic purpose that is recognized, acknowledged, or allowed by the government of the United States.
(2) A foreign principal that directly or indirectly owns or acquires an interest in agricultural land or real property within 20 miles of any military installation or key facility in this state before the effective date of the amendatory act that added this section may continue to own or hold the agricultural land or real property but shall not purchase or otherwise acquire any additional agricultural land or real property located within 20 miles of any military installation or key facility in this state.
(3) A foreign principal that directly or indirectly owns or acquires any interest in agricultural land or real property within 20 miles of any military installation or key facility before the effective date of the amendatory act that added this section shall register with the department no later than July 1, 2025. The department shall create a registration form that includes, but is not limited to, all of the following information about the agricultural land or real property:
(a) The name of the owner or the owner of any interest.
(b) The address, the parcel identification number, and the legal description.
(c) The number of acres.
(4) A foreign principal that does not register with the department under subsection (3) by July 1, 2025, is responsible for a state civil infraction and may be ordered to pay a civil fine of not more than $1,000.00 for each day the registration is late. The department may place a lien against unregistered agricultural land or real property located within 20 miles of any military installation or key facility for the unpaid balance of any penalties assessed under this subsection.
(5) A foreign principal may acquire agricultural land or real property within 20 miles of any military installation or key facility on or after the effective date of the amendatory act that added this section by devise or descent, through the enforcement of security interests, or through the collection of debts if the foreign principal sells, transfers, or otherwise divests itself of the agricultural land or real property no later than 2 years after acquiring the agricultural land or real property.
(6) If a foreign principal acquires or holds agricultural land or real property within 20 miles of any military installation or key facility in violation of this section, the department shall do all of the following:
(a) Initiate an action in the circuit court of any county in which the agricultural land or real property 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 or real property is located.
(7) In any action initiated under subsection (6), if the court finds that the foreign principal violated this section, the court shall do any of the following, as applicable:
(a) If the court finds that the agricultural land or real property located within 20 miles of any military installation or key facility 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 or real property 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 or real property is located.
(ii) Declare the agricultural land or real property escheated to this state and order the sale of the agricultural land or real property 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, lienholders, and any outstanding fines, and the remaining funds, if any, must be paid to the person divested of the agricultural land or real property.
(b) At any time during the forfeiture proceeding under this subsection, the department may seek an order of seizure of the agricultural land or real property within 20 miles of any military installation or key facility upon a showing that the defendant's control of the agricultural land or real property is a clear and present danger to this state.
(8) A foreign principal that purchases or acquires any interest in agricultural land or real property within 20 miles of any military installation or key facility in violation of this section is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.
(9) A person that knowingly sells any interest in agricultural land or real property within 20 miles of any military installation or key facility to a foreign principal in violation of this section is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.
(10) 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) "Department" means the department of agriculture and rural development.
(c) "Foreign country of concern" means China, Russia, Iran, North Korea, Cuba, Venezuela, or Syria, including any agency of or any other entity under significant control of China, Russia, Iran, North Korea, Cuba, Venezuela, or Syria.
(d) "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.
(iv) A person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent resident of the United States.
(e) "Key facility" means that term as defined under section 552c of the Michigan penal code, 1931 PA 328, MCL 750.552c.
(f) "Military installation" means that term as defined in 10 USC 2801(c)(4) and includes an armory as that term is defined in section 105 of the Michigan military act, 1967 PA 150, MCL 32.505.
(g) "Real property" means land buildings, fixtures, and all other improvements to land.
Sec. 36b. (1) No later than the time of purchase, a buyer of any interest in agricultural land or real property within 20 miles of any military installation or key facility in this state shall file with the department an affidavit signed under the penalty of perjury attesting that the buyer is not a foreign principal and is in compliance with the requirements under section 36a.
(2) The failure to obtain or maintain an affidavit required under subsection (1) does not do either of the following:
(a) Affect the title or insurability of the title for the agricultural land or real property.
(b) Subject the closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of section 36a.
(3) 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) "Department" means the department of agriculture and rural development.
(c) "Foreign country of concern" means China, Russia, Iran, North Korea, Cuba, Venezuela, or Syria, including any agency of or any other entity under significant control of China, Russia, Iran, North Korea, Cuba, Venezuela, or Syria.
(d) "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.
(iv) A person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent resident of the United States.
(e) "Key facility" means that term as defined under section 552c of the Michigan penal code, 1931 PA 328, MCL 750.552c.
(f) "Military installation" means that term as defined in 10 USC 2801(c)(4) and includes an armory as that term is defined in section 105 of the Michigan military act, 1967 PA 150, MCL 32.505.
(g) "Real property" means land buildings, fixtures, and all other improvements to land.
