HB-5820, As Passed Senate, September 19, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5820

     A bill to amend 1980 PA 87, entitled

"The uniform condemnation procedures act,"

by amending section 8 (MCL 213.58), as amended by 1996 PA 474.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8. (1) Except as provided in subsections (2) and (3), if

a motion for review under section 6 is not filed or is denied and

the right to appeal has terminated or if interim possession is

granted under section 9, the court shall order the escrowee to pay

the money deposited under section 5 for or on account of the just

compensation that may be awarded under section 13. Except as

provided in subsections (2) and (3), if a motion for review under

section 6 is not filed, the court shall, within 30 days, order the

escrowee to pay the money deposited under section 5 for or on

account of the just compensation that may be awarded under section

13. Upon the motion of any party, the court shall apportion the

estimated compensation among the claimants to the compensation.

     (2)  If  Except as provided in subsection (5), if the agency

reserves its rights to bring a state or federal cost recovery claim

against an owner, under circumstances that the court considers

just, the court may allow any portion of the money deposited under

section 5 to remain in escrow as security for remediation costs of

environmental contamination on the condemned parcel. An agency

shall present an affidavit and environmental report establishing

that the funds placed on deposit under section 5 are likely to be

required to remediate the property. The amount in escrow shall not

exceed the likely costs of remediation if the property were used

for its highest and best use. This subsection does not limit or

expand an owner's or agency's rights to bring federal or state cost

recovery claims.

     (3) Notwithstanding any order entered by the court requiring

money deposited pursuant to section 5 to remain in escrow for the

payment of estimated remediation costs of contaminated property,

the funds in escrow, plus interest subject to section 15, shall be

released among the claimants to the just compensation under

circumstances that the court considers just, including any of the

following circumstances:

     (a) The court finds that the applicable statutory requirements

for remediation have changed and the amount remaining in escrow is

no longer required in full or in part to remediate the alleged

environmental contamination.

     (b) The court finds that the anticipated need for the

remediation of the alleged environmental contamination is not

required or is not required to the extent of the funds remaining on

deposit.

     (c) If the remediation of the property is not initiated by the

agency within 2 years of surrender of possession pursuant to

section 9 and the agency is unable to show good cause for delay.

     (d) The costs actually expended for remediation are less than

the estimated costs of remediation or less than the amount of money

remaining in escrow.

     (e) A court issues an order of apportionment of remediation

responsibility.

     (4) If the court orders the agency to reverse its election

under section 6a(1), the court shall order the escrowee to pay the

amount of the revised good faith written offer for or on account of

the just compensation that may be awarded pursuant to section 13,

and to pay the balance of the escrow to the agency. If the agency

seeks possession before the court decides whether to reverse the

agency's election or before submitting a revised good faith offer,

the agency may request that the court order a portion of the escrow

withheld in anticipation of a reduction in the revised good faith

offer, with the balance to be paid by the escrowee for or on

account of the just compensation that may be awarded pursuant to

section 13. If the court denies the request to reverse the agency's

election or when the revised good faith offer is submitted, the

court shall order the escrowee to pay any unpaid portion of it for

or on account of the owner and to pay any balance to the agency.

     (5) Subsections (2) and (3) do not apply to money deposited

under section 5 in escrow for the payment of just compensation for

an owner's principal residence, if the principal residential

structure is actually taken or the amount of the property taken

leaves less property contiguous to the principal residential

structure than the minimum lot size if the local governing unit has

implemented a minimum lot size by zoning ordinance. This subsection

does not limit or expand an owner's or agency's rights to bring

federal or state cost recovery claims. As used in this subsection,

"principal residence" means a principal residence for which an

exemption from certain local taxation is granted under section 7cc

of the general property tax act, 1893 PA 206, MCL 211.7cc.

     Enacting section 1. This amendatory act takes effect December

23, 2006.

     Enacting section 2. This amendatory act does not take effect

unless House Bill No. 5821 of the 93rd Legislature is enacted into

law.