Bill Text: MI HB4329 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Property: land sales; sale or transfer of real property to foreign entities; prohibit. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds sec. 36a.
Spectrum: Partisan Bill (Republican 20-0)
Status: (Introduced) 2023-03-23 - Bill Electronically Reproduced 03/23/2023 [HB4329 Detail]
Download: Michigan-2023-HB4329-Introduced.html
HOUSE BILL NO. 4329
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 section 36a.
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 acquisition of certain real estate, and the prescription of remedies.
Sec. 35. (1) Any Except as otherwise provided in section 36a, any 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 the 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 the title may have been was derived.
Sec. 36a. (1) Except as otherwise provided in this section, beginning on the effective date of the amendatory act that added this section, a foreign person shall not purchase or otherwise acquire land in this state. A foreign person that owns or holds land in this state on the effective date of the amendatory act that added this section may continue to own or hold the land, but shall not purchase or otherwise acquire additional land in this state.
(2) Subsection (1) does not apply to the following:
(a) Land that is acquired by devise or descent if, except as otherwise provided in this subdivision, the land is sold or otherwise disposed of within 60 months after the acquisition. This subdivision does not require divestment of land acquired by devise or descent from a foreign citizen if the land was acquired by a foreign citizen before the effective date of the amendatory act that added this section.
(b) Land that is acquired by 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 if the land is sold or otherwise disposed of within 60 months after the acquisition.
(3) A person that purchases or otherwise acquires land in this state after the effective date of the amendatory act that added this section, and whose status changes so that the person becomes a foreign person, shall divest itself of all right, title, and interest in the land within 60 months after the date of the change in status.
(4) If a foreign person acquires or holds land in violation of this section, the secretary of state shall report the violation to the attorney general.
(5) On receipt of the report under subsection (5), the attorney general shall do all 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.
(6) The department of natural resources shall promulgate rules to govern the sale of land escheated to this state under subsection (5) including, but not limited to, all of the following:
(a) The sale must be completed by auction.
(b) The department of natural resources, or an agent of the department of natural resources, shall oversee the auction.
(c) The department of natural resources, or an agent of the department of natural resources, shall begin the auction no later than 1 year after the date the land is acquired by this state.
(d) The proceeds of the auction must be deposited in the general fund of this state.
(7) As used in this section:
(a) "Business entity" means a corporation, limited liability company, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, activity, or entity that is organized for profit or nonprofit purposes.
(b) "Foreign business" means any of the following:
(i) A business entity incorporated under the laws of a foreign government.
(ii) A business entity headquartered in a country controlled by a foreign government.
(iii) A business entity, whether or not incorporated, in which any controlling interest is owned directly or indirectly by a foreign government or foreign citizen.
(c) "Foreign citizen" means an individual who is a citizen of a foreign government.
(d) "Foreign government" means a governmental entity of a foreign country that is either of the following:
(i) A nonmarket economy country.
(ii) A state sponsor of terrorism.
(e) "Foreign person" means a foreign citizen, foreign business, or foreign government, or an agent, trustee, or fiduciary of a foreign citizen, foreign business, or foreign government.
(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.
