Bill Text: MI SB0809 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: State agencies (existing); natural resources; powers and duties of the department of environmental quality under land bank fast track act; transfer to the department of natural resources. Amends secs. 7, 9 & 10 of 2003 PA 258 (MCL 124.757 et seq.). TIE BAR WITH: SB 0807'09
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2009-12-02 - Referred To Committee On Government Operations [SB0809 Detail]
Download: Michigan-2009-SB0809-Engrossed.html
SB-0809, As Passed Senate, December 2, 2009
SENATE BILL No. 809
September 15, 2009, Introduced by Senators RICHARDVILLE and McMANUS and referred to the Committee on Appropriations.
A bill to amend 2003 PA 258, entitled
"Land bank fast track act,"
by amending sections 7, 9, and 10 (MCL 124.757, 124.759, and
124.760).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) Except as an authority otherwise agrees by
intergovernmental agreement or otherwise, on terms and conditions,
and in a manner and for an amount of consideration an authority
considers proper, fair, and valuable, including for no monetary
consideration, the authority may convey, sell, transfer, exchange,
lease as lessor, or otherwise dispose of property or rights or
interests in property in which the authority holds a legal interest
to any public or private person for value determined by the
authority.
If the department of environmental quality natural
resources determines that conditions on a property transferred to
an authority under section 78m(15) of the general property tax act,
1893 PA 206, MCL 211.78m, represent an acute threat to public
health, safety, and welfare, or to the environment, the authority
shall not convey, sell, transfer, exchange, lease, or otherwise
dispose of the property until after a determination by the
department
of environmental quality natural
resources that the
acute threat has been eliminated and that conveyance, sale,
transfer, exchange, lease, or other disposal of the property by the
authority will not interfere with any response activities by the
department. The transfer and use of property under this section and
the exercise by the authority of powers and duties under this act
shall be considered a necessary public purpose and for the benefit
of the public.
(2) All property held by an authority shall be inventoried and
classified by the authority according to title status and
suitability for use.
(3) A document, including, but not limited to, a deed,
evidencing the transfer under this act of 1 or more parcels of
property to an authority by this state or a political subdivision
of this state may be recorded with the register of deeds office in
the county in which the property is located without the payment of
a fee.
Sec. 9. (1) An authority may initiate an expedited quiet title
and foreclosure action under this section to quiet title to real
property held by the authority or interests in tax reverted
property held by the authority by recording with the register of
deeds in the county in which the property subject to expedited
quiet title and foreclosure is located a notice of pending
expedited quiet title and foreclosure action in a form prescribed
by the department of treasury. The notice shall include a legal
description of the property, the street address of the property if
available, the name, address, and telephone number of the
authority, a statement that the property is subject to expedited
quiet title proceedings and foreclosure under this act, and a
statement that any legal interests in the property may be
extinguished by a circuit court order vesting title to the property
in the authority. If a notice is recorded in error, the authority
may correct the error by recording a certificate of correction with
the register of deeds. A notice or certificate under this
subsection need not be notarized and may be authenticated by a
digital signature or other electronic means. Property is not
subject to an expedited quiet title and foreclosure action under
this section if the property was forfeited under section 78g of the
general property tax act, 1893 PA 206, MCL 211.78g, and remains
subject to foreclosure under section 78k of the general property
tax act, 1893 PA 206, MCL 211.78k. If an authority has reason to
believe that a property subject to an expedited quiet title and
foreclosure action under this section may be the site of
environmental contamination, the authority shall provide the
department
of environmental quality natural
resources with any
information in the possession of the authority that suggests the
property may be the site of environmental contamination.
(2) After recording the notice under subsection (1), an
authority shall initiate a search of records identified in this
subsection to identify the owners of a property interest in the
property who are entitled to notice of the quiet title and
foreclosure hearing under this section. The authority may enter
into a contract with or may request from 1 or more authorized
representatives a title search or other title product to identify
the owners of a property interest in the property as required under
this subsection or to perform the other functions set forth in this
section required for the quieting of title to property under this
act. The owner of a property interest is entitled to notice under
this section if that owner's interest was identifiable by reference
to any of the following sources before the date that the authority
records the notice under subsection (1):
(a) Land title records in the office of the county register of
deeds.
(b) Tax records in the office of the county treasurer.
(c) Tax records in the office of the local assessor.
(d) Tax records in the office of the local treasurer.
(3) An authority may file a single petition with the clerk of
the circuit court in which property subject to expedited
foreclosure under this section is located listing all property
subject to expedited foreclosure by the authority and for which the
authority seeks to quiet title. If available to the authority, the
list of properties shall include a legal description of, a tax
parcel identification number for, and the street address of each
parcel of property. The petition shall seek a judgment in favor of
the authority against each property listed and shall include a
date, within 90 days, on which the authority requests a hearing on
the petition. The petition shall request that a judgment be entered
vesting absolute title in the authority, without right of
redemption for each parcel of property listed, as provided in this
section. Prior to the entry of judgment under this section, the
authority may request the court to remove property erroneously
included in the petition, or any tax delinquent properties redeemed
prior to the hearing.
(4) The clerk of the circuit court in which a petition is
filed under subsection (3) shall immediately set the date, time,
and place for a hearing on the petition for foreclosure. The date
shall be set by the clerk and shall not be more than 10 days after
the date requested by the authority in the petition. In no event
may the clerk schedule the hearing later than 90 days after the
filing of a petition by the authority under subsection (3).
(5) After completing the records search under subsection (2),
an authority shall determine the address or addresses reasonably
calculated to inform those owners of a property interest in
property subject to expedited foreclosure under this section of the
pendency of the quiet title and foreclosure hearing under
subsection (11). If, after conducting the title search, the
authority is unable to determine an address reasonably calculated
to inform persons with a property interest in property subject to
expedited tax foreclosure, or if the authority discovers a
deficiency in notice under subsection (10), the following shall be
considered reasonable steps by the authority to ascertain the
addresses of persons with a property interest in the property
subject to expedited foreclosure or to ascertain an address
necessary to correct a deficiency in notice under subsection (10):
(a) For an individual, a search of records of the county
probate court for the county in which the property is located.
(b) For an individual, a search of the qualified voter file
established under section 509o of the Michigan election law, 1954
PA 116, MCL 168.509o, which is authorized by this subdivision.
(c) For a partnership, a search of partnership records filed
with the county clerk.
(d) For a business entity other than a partnership, a search
of business entity records filed with the corporation division of
the department.
(6) Not less than 30 days before the quiet title and
foreclosure hearing under subsection (11), the authority shall send
notice by certified mail, return receipt requested, of the hearing
to the persons identified under subsection (5) with a property
interest in property subject to expedited foreclosure. The
authority shall also send a notice via regular mail addressed to
the "Occupant" for each property subject to expedited foreclosure
if an address for the property is ascertainable.
(7) Not less than 30 days before the quiet title and
foreclosure hearing under subsection (11), the authority or its
authorized representative or authorized agent shall visit each
parcel of property subject to expedited foreclosure and post
conspicuously on the property notice of the hearing. In addition to
the requirements of subsection (8), the notice shall also include
the following statement: "THIS PROPERTY HAS BEEN TRANSFERRED TO THE
____________________ LAND BANK FAST TRACK AUTHORITY AND IS SUBJECT
TO AN EXPEDITED QUIET TITLE AND FORECLOSURE ACTION. PERSONS WITH
INFORMATION REGARDING THE PRIOR OWNER OF THE PROPERTY ARE REQUESTED
TO CONTACT THE LAND BANK FAST TRACK AUTHORITY AT
_________________________.".
(8) The notice required under subsections (6) and (7) shall
include:
(a) The date on which the authority recorded under subsection
(1) notice of the pending expedited quiet title and foreclosure
action.
(b) A statement that a person with a property interest in the
property may lose his or her interest, if any, as a result of the
quiet title and foreclosure hearing under subsection (11).
(c) A legal description, parcel number of the property, and
the street address of the property, if available.
(d) The person to whom the notice is addressed.
(e) The date and time of the hearing on the petition for
foreclosure under subsection (11) and a statement that the judgment
of the court may result in title to the property vesting in the
authority.
(f) An explanation of any rights of redemption and notice that
the judgment of the court may extinguish any ownership interest in
or right to redeem the property.
(g) The name, address, and telephone number of the authority.
(h) A statement that persons with information regarding the
owner or prior owner of any of the properties are requested to
contact the authority.
(9) If the authority is unable to ascertain the address
reasonably calculated to inform the owners of a property interest
entitled to notice under this section, or is unable to provide
notice under subsection (6) or (7), the authority shall provide
notice by publication. Prior to the hearing, a notice shall be
published for 3 successive weeks, once each week, in a newspaper
published and circulated in the county in which the property is
located. If no paper is published in that county, publication shall
be made in a newspaper published and circulated in an adjoining
county. This publication shall substitute for notice under
subsection (6) or (7). The published notice shall include all of
the following:
(a) A legal description, parcel number of the property, and
the street address of the property, if available.
(b) The name of any person not notified under subsection (6)
or (7) that the authority reasonably believes may be entitled to
notice under this section of the quiet title and foreclosure
hearing under subsection (11).
(c) A statement that a person with a property interest in the
property may lose his or her interest, if any, as a result of the
foreclosure proceeding under subsection (11).
(d) The date and time of the hearing on the petition for
foreclosure under subsection (11).
(e) A statement that the judgment of the court may result in
title to the property vesting in the authority.
(f) An explanation of any rights of redemption and notice that
judgment of the court may extinguish any ownership interest in or
right to redeem the property.
(g) The name, address, and telephone number of the authority.
(h) A statement that persons with information regarding the
owner or prior owner of any of the properties are requested to
contact the authority.
(10) If prior to the quiet title and foreclosure hearing under
subsection (11) the authority discovers any deficiency in the
provision of notice under this section, the authority shall take
reasonable steps in good faith to correct the deficiency before the
hearing. The provisions of this section relating to notice of the
quiet title and foreclosure hearing are exclusive and exhaustive.
Other requirements relating to notice and proof of service under
other law, rule, or other legal requirement are not applicable to
notice or proof of service under this section.
(11) If a petition for expedited quiet title and foreclosure
is filed under subsection (3), before the hearing, the authority
shall file with the clerk of the circuit court proof of notice by
certified mail under subsection (6), proof of notice by posting on
the property under subsection (7), and proof of notice by
publication, if applicable. A person claiming an interest in a
parcel of property set forth in the petition for foreclosure who
desires to contest that petition shall file written objections with
the clerk of the circuit court and serve those objections on the
authority before the date of the hearing. The circuit court may
appoint and utilize as the court considers necessary a special
master for assistance with the resolution of any objections to the
foreclosure or questions regarding the title to property subject to
foreclosure. If the court withholds property from foreclosure, an
authority's ability to include the property in a subsequent
petition for expedited quiet title and foreclosure is not
prejudiced. No injunction shall issue to stay an expedited quiet
title and foreclosure action under this section. The circuit court
shall enter judgment on a petition to quiet title and foreclosure
filed under subsection (3) not more than 10 days after the
conclusion of the hearing or contested case, and the judgment shall
be effective 10 days after the conclusion of the hearing or
contested case. The circuit court's judgment shall specify all of
the following:
(a) The legal description and, if known, the street address of
the property foreclosed.
(b) That fee simple title to property foreclosed by the
judgment is vested absolutely in the authority, except as otherwise
provided in subdivisions (c) and (e), without any further rights of
redemption.
(c) That all liens against the property, including any lien
for unpaid taxes or special assessments, except future installments
of special assessments and liens recorded by this state or the
authority under the natural resources and environmental protection
act, 1994 PA 451, MCL 324.101 to 324.90106, are extinguished.
(d) That, except as otherwise provided in subdivisions (c) and
(e), the authority has good and marketable fee simple title to the
property.
(e) That all existing recorded and unrecorded interests in
that property are extinguished, except a visible or recorded
easement or right-of-way, private deed restrictions, plat
restrictions, or restrictions or other governmental interests
imposed under the natural resources and environmental protection
act, 1994 PA 451, MCL 324.101 to 324.90106.
(f) A finding that all persons entitled to notice and an
opportunity to be heard have been provided that notice and
opportunity. A person shall be deemed to have been provided notice
and an opportunity to be heard if the authority followed the
procedures for provision of notice by mail, for visits to property
subject to expedited quiet title and foreclosure, and for
publication under this section, or if 1 or more of the following
apply:
(i) The person had constructive notice of the hearing by
acquiring an interest in the property after the date of the
recording under subsection (1) of the notice of pending expedited
quiet title and foreclosure action.
(ii) The person appeared at the hearing under this subsection
or submitted written objections to the clerk of the circuit court
under this subsection prior to the hearing.
(iii) Prior to the hearing under this subsection, the person had
actual notice of the hearing.
(12) Except as otherwise provided in subsection (11)(c) and
(e), fee simple title to property set forth in a petition for
foreclosure filed under subsection (3) shall vest absolutely in the
authority upon the effective date of the judgment by the circuit
court and the authority shall have absolute title to the property.
The authority's title is not subject to any recorded or unrecorded
lien, except as provided in subsection (11) and shall not be stayed
or held invalid except as provided in subsection (13). A judgment
entered under this section is a final order with respect to the
property affected by the judgment and shall not be modified,
stayed, or held invalid after the effective date of the judgment,
except as provided in subsection (14).
(13) An authority or a person claiming to have a property
interest under subsection (2) in property foreclosed under this
section may within 21 days of the effective date of the judgment
under subsection (12) appeal the circuit court's order or the
circuit court's judgment foreclosing property to the court of
appeals. An appeal under this subsection is limited to the record
of the proceedings in the circuit court under this section. The
circuit court's judgment foreclosing property shall be stayed until
the court of appeals has reversed, modified, or affirmed that
judgment. If an appeal under this subsection stays the circuit
court's judgment foreclosing property, the circuit court's judgment
is stayed only as to the property that is the subject of that
appeal and the circuit court's judgment foreclosing other property
that is not the subject of that appeal is not stayed. To appeal the
circuit court's judgment foreclosing property, a person appealing
the judgment shall pay to the authority any taxes, interest,
penalties, and fees due on the property and provide notice of the
appeal to the authority within 21 days after the circuit court's
judgment is effective. If the circuit court's judgment foreclosing
the property is affirmed on appeal, the amount determined to be due
shall be refunded to the person who appealed the judgment. If the
circuit court's judgment foreclosing the property is reversed or
modified on appeal, the authority shall refund the amount
determined to be due to the person who appealed the judgment, if
any, and forward the balance to the appropriate taxing
jurisdictions in accordance with the order of the court of appeals.
(14) The authority shall record a notice of judgment for each
parcel of foreclosed property in the office of the register of
deeds for the county in which the foreclosed property is located in
a form prescribed by the department of treasury. If an authority
records a notice of judgment in error, the authority may
subsequently record a certificate of correction. A notice or
certificate under this subsection need not be notarized and may be
authenticated by a digital signature or other electronic means.
After the entry of a judgment foreclosing the property under this
section, if the property has not been transferred by the authority,
the authority may cancel the foreclosure by recording with the
register of deeds of the county in which the property is located a
certificate of error in a form prescribed by the department of
treasury, if the authority discovers any of the following:
(a) The description of the property used in the expedited
quiet title and foreclosure proceeding was so indefinite or
erroneous that the foreclosure of the property was void.
(b) An owner of an interest in the property entitled to notice
of the expedited quiet title and proceedings against the property
under this section was not provided notice sufficient to satisfy
the minimum due process requirements of the state constitution of
this
state 1963 and the constitution of the United States.
(c) A judgment of foreclosure was entered under this section
in violation of an order issued by a United States bankruptcy
court.
(15) If a judgment of foreclosure is entered under subsection
(12), and all existing recorded and unrecorded interests in a
parcel of property are extinguished as provided in subsection (12),
the owner of any extinguished recorded or unrecorded interest in
that property who claims that he or she did not receive notice of
the expedited quiet title and foreclosure action shall not bring an
action for possession of the property against any subsequent owner,
but may only bring an action to recover monetary damages as
provided in this subsection. The court of claims has original and
exclusive jurisdiction in any action to recover monetary damages
under this subsection. An action to recover monetary damages under
this subsection shall not be brought more than 2 years after a
judgment for foreclosure is entered under subsection (12). Any
monetary damages recoverable under this subsection shall be
determined as of the date a judgment for foreclosure is entered
under subsection (12) and shall not exceed the fair market value of
the interest in the property held by the person bringing the action
under this section on that date, less any taxes, interest,
penalties, and fees owed on the property as of that date. The right
to sue for monetary damages under this subsection shall not be
transferable except by testate or intestate succession.
(16) The owner of a property interest with notice of the quiet
title and foreclosure hearing under subsection (11) may not assert
any of the following:
(a) That notice to the owner was insufficient or inadequate in
any way because some other owner of a property interest in the
property was not notified.
(b) That any right to redeem tax reverted property was
extended in any way because some other person was not notified.
(17) A person holding or formerly holding an interest in tax
reverted property subject to expedited foreclosure under this
section is barred from questioning the validity of the expedited
foreclosure under this section if 1 or more of the following apply:
(a) Prior to the transfer of the property to the authority,
the property was deeded to this state under former section 67a of
the
general property tax act, 1893 PA 206, MCL 211.67a, and the
person or the person's predecessor in title was notified of a
hearing regarding the deeding of the property as required by
section 131e of the general property tax act, 1893 PA 206, MCL
211.131e.
(b) Prior to the transfer of the property to the authority,
title to the property vested in a foreclosing governmental unit
following a circuit court hearing under section 78k of the general
property tax act, 1893 PA 206, MCL 211.78k, and the person or the
person's predecessor in title was notified of the hearing under
section 78i of the general property tax act, 1893 PA 206, MCL
211.78i.
(18) The failure of an authority to comply with any provision
of this section shall not invalidate any proceeding under this
section if a person with a property interest in property subject to
foreclosure was accorded the minimum due process required under the
state constitution of 1963 and the constitution of the United
States.
(19) It is the intent of the legislature that the provisions
of this section relating to the expedited quiet title and
foreclosure of property by an authority satisfy the minimum
requirements of due process required under the constitution of this
state and the constitution of the United States but that the
provisions do not create new rights beyond those required under the
state constitution of 1963 or the constitution of the United
States. The failure of an authority, this state, a political
subdivision of this state, or a local unit of government to follow
a requirement of this section relating to the expedited quiet title
and foreclosure of property held by an authority shall not be
construed to create a claim or cause of action against an
authority, this state, a political subdivision of this state, or a
local unit of government unless the minimum requirements of due
process accorded under the state constitution of 1963 or the
constitution of the United States are violated.
(20) As used in this section, "authorized representative"
includes 1 or more of the following:
(a) A title insurance company or agent licensed to conduct
business in this state.
(b) An attorney licensed to practice law in this state.
(c) A person accredited in land title search procedures by a
nationally recognized organization in the field of land title
searching.
(d) A person with demonstrated experience in the field of
searching land title records, as determined by the authority.
Sec. 10. (1) If an authority has reason to believe that
property held by the authority may be the site of environmental
contamination, the authority shall provide the department of
environmental
quality natural resources with any information in the
possession of the authority that suggests that the property may be
the site of environmental contamination.
(2) If property held by an authority is a facility as defined
under section 20101(1)(o) of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.20101, prior to
the sale or transfer of the property under this section, the
property is subject to all of the following:
(a) Upon reasonable written notice from the department of
environmental
quality natural resources, the authority shall
provide
access to the department of environmental quality natural
resources, its employees, its contractors, and any other person
expressly
authorized by the department of environmental quality
natural resources to conduct response activities at the property.
Reasonable written notice under this subdivision may include, but
is not limited to, notice by electronic mail or facsimile, if the
authority consents to notice by electronic mail or facsimile prior
to
provision of notice by the department of environmental quality
natural resources.
(b)
If requested by the department of environmental quality
natural resources to protect public health, safety, and welfare or
the environment, the authority shall grant an easement for access
to conduct response activities on the property as authorized under
chapter
7 part 201 of the natural resources and environmental
protection
act, 1994 PA 451, MCL 324.20101 to 324.20302 324.20142.
(c)
If requested by the department of environmental quality
natural resources to protect public health, safety, and welfare or
the environment, the authority shall place and record deed
restrictions
on the property as authorized under chapter 7 part 201
of the natural resources and environmental protection act, 1994 PA
451,
MCL 324.20101 to 324.20302 324.20142.
(d)
The department of environmental quality natural resources
may place an environmental lien on the property as authorized under
section 20138 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20138.
(3) For purposes of part 201 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.20101 to
324.20142, an authority shall be considered a local unit of
government. Except as provided under parts 111, 115, and 315 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.11101 to 324.11153, 324.11501 to 324.11550, and 324.31501
to 324.31529, the acquisition or control of property through tax
delinquent forfeiture, foreclosure, or sale, abandonment, court
order, circumstances in which the authority has acquired title or
control of the property under this act, or by a transfer of the
property to the authority by this state, an agency or department of
this state, or any local unit of government of this state shall not
subject the authority to liability under the natural resources and
environmental protection act, 1994 PA 451, MCL 324.101 to
324.90106, unless the authority is responsible for an activity
causing a release on the property or other activity giving rise to
liability under the natural resources and environmental protection
act, 1994 PA 451, MCL 324.101 to 324.90106. This subsection shall
not be considered to restrict or diminish any protection from
liability that is otherwise available to the authority under the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.101 to 324.90106.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 807
of the 95th Legislature is enacted into law.
