Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0270 Compare Versions

Only one version of the bill is available at this time.

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1	1	SENATE BILL NO. 270 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:
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23	23	SENATE BILL NO. 270
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27	27	A bill to amend 1846 RS 66, entitled
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29	29	"Of estates in dower, by the curtesy, and general provisions concerning real estate,"
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31	31	by amending the title and sections 35 and 36 (MCL 554.135 and 554.136) and by adding sections 36a and 36b.
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33	33	the people of the state of michigan enact:
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35	35	1 2 3 4 TITLE 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 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, a foreign person shall not own, purchase, lease, possess, exercise control over, or otherwise acquire agricultural land in this state. A foreign person 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 may continue to own, lease, possess, exercise control over, or hold the agricultural land but shall not purchase or otherwise acquire additional agricultural land in this state and shall register under section 36b. (2) Subsection (1) does not apply to agricultural land 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 acquired after the effective date of the amendatory act that added this section if acquired by any of the following: (a) Devise or descent. (b) A bona fide encumbrance on agricultural 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 agricultural land, whether created by mortgage or otherwise. (3) If a foreign person owns, holds, leases, possesses, exercises control over, or acquires agricultural land in this state under any of the following situations, the foreign person shall petition the commission for a waiver under this section to continue owning, holding, leasing, possessing, or exercising control over the agricultural land or sell or otherwise dispose of the foreign person's interest in the agricultural land: (a) A foreign person purchases or leases agricultural land after the effective date of the amendatory act that added this section. (b) A foreign person acquires agricultural land as described in subsection (2). (c) A person owns, purchases, leases, possesses, exercises control over, or otherwise acquires agricultural land after the effective date of the amendatory act that added this section, and the person's status changes so that the person becomes a foreign person. (4) If the commission denies a waiver requested under subsection (3), the foreign person shall sell or otherwise dispose of the foreign person's interest in the agricultural land no later 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 than 1 year after the waiver is denied. (5) No later than 6 months after the effective date of the amendatory act that added this section, the department shall promulgate rules to implement the waiver process under this section, including, but not limited to, all of the following: (a) The department shall provide a timeline for a decision on the waiver application as follows: (i) If the waiver is a nonexpedited waiver, the commission shall deliver an initial decision no later than 60 days after the waiver application is received by the commission to the waiver applicant and the clerk of each local government where any part of the agricultural land is located. If the waiver application is denied, the waiver applicant may file an appeal with the commission no later than 30 days after receipt of the decision. If the waiver application is granted, any local government where any part of the agricultural land is located may file an appeal with the commission no later than 30 days after receipt of the decision. The commission shall deliver a final decision no later than 30 days after the commission receives the appeal. (ii) If the waiver is an expedited waiver, the commission shall deliver an initial decision no later than 30 days after the waiver application is received by the commission to the waiver applicant and the clerk of each local government where any part of the agricultural land is located. If the waiver application is denied, the waiver applicant may file an appeal with the commission no later than 15 days after receipt of the decision. If the waiver application is granted, any local government where any part of the agricultural land is located may file an appeal with the commission no later than 15 days after receipt of the decision. The commission 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 shall deliver a final decision no later than 15 days after the commission receives the appeal. (b) The department shall publish guidelines on the department's website of the factors the department uses to determine whether or not to grant a waiver. The factors must include, but are not limited to, all of the following: (i) The proximity of the agricultural land to a sensitive area. (ii) The proposed use of the agricultural land. (iii) Any financial impact on the area around the agricultural land. (iv) Any objections by a local government where any part of the agricultural land is located. (v) Any state or national security concerns. (c) The department shall create a fee schedule as follows: Waiver type Fee Nonexpedited business transaction $500.00 Expedited business transaction $1,000.00 Nonexpedited inheritance $100.00 Expedited inheritance $200.00 (d) The department shall make the waiver application available on the department's website. (e) The department shall distribute waiver application forms to every county clerk's office in this state. (6) If a foreign person acquires or holds agricultural land in violation of this section, the department shall report the violation to the attorney general. (7) On receipt of the report under subsection (6), the attorney general shall do all of the following: (a) Initiate an action in the circuit court of any county in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 which the agricultural 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 agricultural land is located. (8) In any action initiated under subsection (7), if the court finds that the agricultural land at issue was acquired or held in violation of this section, do both of the following: (a) Enter an order declaring that the agricultural 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 agricultural land is located. (b) Declare the agricultural land escheated to this state and order the sale of the agricultural 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 agricultural land. (9) A person that acquires or holds agricultural land in violation of this section remains in violation of this section for as long as the person holds an interest in the agricultural land. (10) As used in this section: (a) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land. (b) "Business entity" means a business as that term is defined in section 2 of the Michigan campaign finance act, 1976 PA 388, MCL 169.202. (c) "Commission" means the Michigan commission of agriculture and rural development. (d) "Department" means the department of agriculture and rural 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 development. (e) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252. (f) "Foreign business" means a corporation incorporated under the laws of a foreign country, or a business entity, whether or not incorporated, in which a majority interest is owned directly or indirectly or the business entity is controlled by nonresident aliens or a foreign government. Legal entities, including, but not limited to, trusts, holding companies, multiple corporations, and other business arrangements, do not affect the determination of ownership or control of a foreign business. (g) "Foreign government" means a government other than a government of the United States, its states, territories, or possessions or the government of Canada or Mexico. (h) "Foreign person" means a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government. (i) "Local government" means a county, city, township, or village in this state. (j) "Nonresident alien" means an individual who is not any of the following: (i) A citizen of the United States. (ii) An individual lawfully admitted into the United States for permanent residence by the United States Citizenship and Immigration Services. An individual is lawfully admitted for permanent residence regardless of whether the individual's lawful permanent resident status is conditional. (iii) A passport-holding citizen of Canada or Mexico. (k) "Sensitive area" means any of the following: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (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. Sec. 36b. (1) No later than 1 year after the effective date of the amendatory act that added this section, a foreign person 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 a nonresident alien, foreign business, or foreign government, 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: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (a) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land. (b) "Business entity" means a business as that term is defined in section 2 of the Michigan campaign finance act, 1976 PA 388, MCL 169.202. (c) "Department" means the department of agriculture and rural development. (d) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252. (e) "Foreign business" means a corporation incorporated under the laws of a foreign country, or a business entity, whether or not incorporated, in which a majority interest is owned directly or indirectly or the business entity is controlled by nonresident aliens or a foreign government. Legal entities, including, but not limited to, trusts, holding companies, multiple corporations, and other business arrangements, do not affect the determination of ownership or control of a foreign business. (f) "Foreign government" means a government other than a government of the United States, its states, territories, or possessions or the government of Canada or Mexico. (g) "Foreign person" means a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government. (h) "Nonresident alien" means an individual who is not any of the following: (i) A citizen of the United States. (ii) An individual lawfully admitted into the United States for permanent residence by the United States Citizenship and Immigration Services. An individual is lawfully admitted for 1 2 3 permanent residence regardless of whether the individual's lawful permanent resident status is conditional. (iii) A passport-holding citizen of Canada or Mexico.
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107	107	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
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109	109	(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.
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111	111	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.
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113	113	Sec. 36a. (1) Beginning on the effective date of the amendatory act that added this section, except as otherwise provided in this section, a foreign person shall not own, purchase, lease, possess, exercise control over, or otherwise acquire agricultural land in this state. A foreign person 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 may continue to own, lease, possess, exercise control over, or hold the agricultural land but shall not purchase or otherwise acquire additional agricultural land in this state and shall register under section 36b.
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115	115	(2) Subsection (1) does not apply to agricultural land
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175	175	acquired after the effective date of the amendatory act that added this section if acquired by any of the following:
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177	177	(a) Devise or descent.
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179	179	(b) A bona fide encumbrance on agricultural land taken for security.
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181	181	(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 agricultural land, whether created by mortgage or otherwise.
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183	183	(3) If a foreign person owns, holds, leases, possesses, exercises control over, or acquires agricultural land in this state under any of the following situations, the foreign person shall petition the commission for a waiver under this section to continue owning, holding, leasing, possessing, or exercising control over the agricultural land or sell or otherwise dispose of the foreign person's interest in the agricultural land:
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185	185	(a) A foreign person purchases or leases agricultural land after the effective date of the amendatory act that added this section.
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187	187	(b) A foreign person acquires agricultural land as described in subsection (2).
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189	189	(c) A person owns, purchases, leases, possesses, exercises control over, or otherwise acquires agricultural land after the effective date of the amendatory act that added this section, and the person's status changes so that the person becomes a foreign person.
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191	191	(4) If the commission denies a waiver requested under subsection (3), the foreign person shall sell or otherwise dispose of the foreign person's interest in the agricultural land no later
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251	251	than 1 year after the waiver is denied.
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253	253	(5) No later than 6 months after the effective date of the amendatory act that added this section, the department shall promulgate rules to implement the waiver process under this section, including, but not limited to, all of the following:
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255	255	(a) The department shall provide a timeline for a decision on the waiver application as follows:
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257	257	(i) If the waiver is a nonexpedited waiver, the commission shall deliver an initial decision no later than 60 days after the waiver application is received by the commission to the waiver applicant and the clerk of each local government where any part of the agricultural land is located. If the waiver application is denied, the waiver applicant may file an appeal with the commission no later than 30 days after receipt of the decision. If the waiver application is granted, any local government where any part of the agricultural land is located may file an appeal with the commission no later than 30 days after receipt of the decision. The commission shall deliver a final decision no later than 30 days after the commission receives the appeal.
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259	259	(ii) If the waiver is an expedited waiver, the commission shall deliver an initial decision no later than 30 days after the waiver application is received by the commission to the waiver applicant and the clerk of each local government where any part of the agricultural land is located. If the waiver application is denied, the waiver applicant may file an appeal with the commission no later than 15 days after receipt of the decision. If the waiver application is granted, any local government where any part of the agricultural land is located may file an appeal with the commission no later than 15 days after receipt of the decision. The commission
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319	319	shall deliver a final decision no later than 15 days after the commission receives the appeal.
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321	321	(b) The department shall publish guidelines on the department's website of the factors the department uses to determine whether or not to grant a waiver. The factors must include, but are not limited to, all of the following:
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323	323	(i) The proximity of the agricultural land to a sensitive area.
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325	325	(ii) The proposed use of the agricultural land.
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327	327	(iii) Any financial impact on the area around the agricultural land.
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329	329	(iv) Any objections by a local government where any part of the agricultural land is located.
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331	331	(v) Any state or national security concerns.
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333	333	(c) The department shall create a fee schedule as follows:
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335	335	Waiver type Fee
336	336	Nonexpedited business transaction $500.00
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339	339	Expedited inheritance $200.00
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361	361	(d) The department shall make the waiver application available on the department's website.
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363	363	(e) The department shall distribute waiver application forms to every county clerk's office in this state.
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365	365	(6) If a foreign person acquires or holds agricultural land in violation of this section, the department shall report the violation to the attorney general.
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367	367	(7) On receipt of the report under subsection (6), the attorney general shall do all of the following:
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369	369	(a) Initiate an action in the circuit court of any county in
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429	429	which the agricultural land is located.
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431	431	(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 is located.
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433	433	(8) In any action initiated under subsection (7), if the court finds that the agricultural land at issue was acquired or held in violation of this section, do both of the following:
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435	435	(a) Enter an order declaring that the agricultural 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 agricultural land is located.
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437	437	(b) Declare the agricultural land escheated to this state and order the sale of the agricultural 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 agricultural land.
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439	439	(9) A person that acquires or holds agricultural land in violation of this section remains in violation of this section for as long as the person holds an interest in the agricultural land.
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441	441	(10) As used in this section:
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443	443	(a) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land.
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445	445	(b) "Business entity" means a business as that term is defined in section 2 of the Michigan campaign finance act, 1976 PA 388, MCL 169.202.
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447	447	(c) "Commission" means the Michigan commission of agriculture and rural development.
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449	449	(d) "Department" means the department of agriculture and rural
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511	511	(e) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252.
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513	513	(f) "Foreign business" means a corporation incorporated under the laws of a foreign country, or a business entity, whether or not incorporated, in which a majority interest is owned directly or indirectly or the business entity is controlled by nonresident aliens or a foreign government. Legal entities, including, but not limited to, trusts, holding companies, multiple corporations, and other business arrangements, do not affect the determination of ownership or control of a foreign business.
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515	515	(g) "Foreign government" means a government other than a government of the United States, its states, territories, or possessions or the government of Canada or Mexico.
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517	517	(h) "Foreign person" means a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government.
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519	519	(i) "Local government" means a county, city, township, or village in this state.
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521	521	(j) "Nonresident alien" means an individual who is not any of the following:
522	522
523	523	(i) A citizen of the United States.
524	524
525	525	(ii) An individual lawfully admitted into the United States for permanent residence by the United States Citizenship and Immigration Services. An individual is lawfully admitted for permanent residence regardless of whether the individual's lawful permanent resident status is conditional.
526	526
527	527	(iii) A passport-holding citizen of Canada or Mexico.
528	528
529	529	(k) "Sensitive area" means any of the following:
530	530
531	531	1
532	532
533	533	2
534	534
535	535	3
536	536
537	537	4
538	538
539	539	5
540	540
541	541	6
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543	543	7
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545	545	8
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566	566
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582	582
583	583	27
584	584
585	585	28
586	586
587	587	29
588	588
589	589	(i) A key facility as that term is defined in section 552c of the Michigan penal code, 1931 PA 328, MCL 750.552c.
590	590
591	591	(ii) A location that is owned or possessed by the United States Armed Forces or the Michigan national guard.
592	592
593	593	(iii) A location that is important for national security or the security of this state.
594	594
595	595	Sec. 36b. (1) No later than 1 year after the effective date of the amendatory act that added this section, a foreign person 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.
596	596
597	597	(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:
598	598
599	599	(a) The name of the registrant of the agricultural land.
600	600
601	601	(b) If the registrant of the agricultural land is an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government, the name of any principal for whom that agricultural land was acquired as agent, trustee, or fiduciary.
602	602
603	603	(c) The location and number of acres of the agricultural land by municipality and county.
604	604
605	605	(d) The date the agricultural land was acquired.
606	606
607	607	(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.
608	608
609	609	(4) The department shall distribute registration forms to every county clerk's office in this state.
610	610
611	611	(5) As used in this section:
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615	615	2
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619	619	4
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660	660
661	661	25
662	662
663	663	26
664	664
665	665	27
666	666
667	667	28
668	668
669	669	29
670	670
671	671	(a) "Agricultural land" means land suitable for use in farming and includes any right or interest in such land.
672	672
673	673	(b) "Business entity" means a business as that term is defined in section 2 of the Michigan campaign finance act, 1976 PA 388, MCL 169.202.
674	674
675	675	(c) "Department" means the department of agriculture and rural development.
676	676
677	677	(d) "Farming" means that term as defined in section 2 of the Michigan family farm development act, 1982 PA 220, MCL 285.252.
678	678
679	679	(e) "Foreign business" means a corporation incorporated under the laws of a foreign country, or a business entity, whether or not incorporated, in which a majority interest is owned directly or indirectly or the business entity is controlled by nonresident aliens or a foreign government. Legal entities, including, but not limited to, trusts, holding companies, multiple corporations, and other business arrangements, do not affect the determination of ownership or control of a foreign business.
680	680
681	681	(f) "Foreign government" means a government other than a government of the United States, its states, territories, or possessions or the government of Canada or Mexico.
682	682
683	683	(g) "Foreign person" means a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government.
684	684
685	685	(h) "Nonresident alien" means an individual who is not any of the following:
686	686
687	687	(i) A citizen of the United States.
688	688
689	689	(ii) An individual lawfully admitted into the United States for permanent residence by the United States Citizenship and Immigration Services. An individual is lawfully admitted for
690	690
691	691	1
692	692
693	693	2
694	694
695	695	3
696	696
697	697	permanent residence regardless of whether the individual's lawful permanent resident status is conditional.
698	698
699	699	(iii) A passport-holding citizen of Canada or Mexico.