HOUSE BILL No. 5820

 

March 2, 2006, Introduced by Reps. Lemmons, III, Drolet, Jones, Gosselin, Tobocman, Stahl, Brandenburg, Baxter, Elsenheimer, Rocca, Mortimer, Huizenga, Lipsey and Acciavatti and referred to the Committee on Government Operations.

 

     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

 

a property that is a residential dwelling.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 93rd Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5821(request no.

 

05069'05).

 

     (b) Senate Bill No.____ or House Bill No. 5817(request no.

 

05070'05).

 

     (c) Senate Bill No.____ or House Bill No. 5818(request no.

 

06017'06).

 

     (d) Senate Bill No.____ or House Bill No. 5819(request no.

 

06018'06).