SB 686

Act
No. 69
Public
Acts of 2025
Approved
by the Governor
December
23, 2025
Filed
with the Secretary of State
December
23, 2025
EFFECTIVE
DATE:� December 23, 2025
state of michigan
103rd Legislature
Regular session of 2025
Introduced by Senators Daley, Singh, Lauwers, Shink and
Cherry
ENROLLED SENATE BILL No. 686
AN ACT to amend 1994 PA 451,
entitled �An act to protect the environment and natural resources of the state;
to codify, revise, consolidate, and classify laws relating to the environment
and natural resources of the state; to regulate the discharge of certain
substances into the environment; to regulate the use of certain lands, waters,
and other natural resources of the state; to protect the people�s right to hunt
and fish; to prescribe the powers and duties of certain state and local
agencies and officials; to provide for certain charges, fees, assessments, and
donations; to provide certain appropriations; to prescribe penalties and
provide remedies; and to repeal acts and parts of acts,� by amending section
36110 (MCL 324.36110), as amended by 2016 PA 265.
The People of the State of
Michigan enact:
Sec.
36110. (1) Land subject to a development rights agreement or easement may be
sold without penalty under sections 36111, 36112, and 36113, if the use of the
land by the successor in title complies with the development rights agreement
or easement. The seller shall notify the governmental authority having
jurisdiction over the development rights of the change in ownership.
(2) If the owner of land subject to a development rights
agreement or easement dies or becomes totally and permanently disabled or if an
individual essential to the operation of the farm dies or becomes totally and
permanently disabled, the land may be relinquished from the program under this
part and is subject to a lien pursuant to sections 36111(11), 36112(7), and
36113(7). A request for relinquishment under this section shall be made within
3 years after the date of death or disability. A request for relinquishment
under this subsection shall be made only by the owner in case of a disability
or, in case of death, the person who becomes the owner through survivorship or
inheritance.
(3) If an owner of land subject to a development rights
agreement becomes totally and permanently disabled or dies, land containing
structures that were present before the recording of the development rights
agreement may be relinquished from the agreement, upon request of the disabled
agreement holder or upon request of the person who becomes an owner through
survivorship or inheritance, and upon approval of the local governing body and
the state land use agency. Not more than 2 acres may be relinquished under this
subsection unless additional land area is needed to encompass all of the
buildings located on the parcel, in which case not more than 5 acres may be
relinquished. If the size of the parcel proposed to be relinquished is less than
that required by local zoning, the parcel shall not be relinquished unless a
variance is obtained from the local zoning board of appeals to allow for the
smaller parcel size. The portion of the farmland relinquished from the
development rights agreement under this subsection is subject to a lien
pursuant to section 36111(11).
(4) If approved by the local governing body and the state
land use agency, not more than 1 acre of land, as determined by a professional
surveyor licensed in this state, may be relinquished from an agricultural
conservation easement or development rights agreement. If
the size of the parcel proposed to be relinquished is less than that required
by local zoning, the parcel shall not be relinquished unless a variance is
obtained from the local zoning board of appeals to allow for the smaller parcel
size.
(5) The land described in a development rights agreement may
be divided into smaller parcels of land and remains subject to the same terms
and conditions as the original development rights agreement. The smaller
parcels created by the division must meet the minimum requirements for being
enrolled under this part or be 40 acres or more in size. Farmland may be
divided once under this subsection without payment of a fee to the state land
use agency. The state land use agency may charge a reasonable fee not greater
than the state land use agency�s actual cost of dividing the agreement for all
subsequent divisions of that farmland. When a division of a development rights
agreement is made under this subsection and is executed and recorded, the state
land use agency shall notify the applicant, the local governing body and its
assessing office, all reviewing agencies, and the department of treasury.
(6) As used in this section, �individual essential to the operation
of the farm� means a co-owner, partner, shareholder, farm manager, or family
member, who, to a material extent, cultivates, operates, or manages farmland
under this part. An individual is considered involved to a material extent if the
individual does 1 or more of the following:
(a) Has a financial interest equal to or greater than 1/2 the
cost of producing the crops, livestock, or products and inspects and advises
and consults with the owner on production activities.
(b) Works 1,040 hours or more annually in activities
connected with production of the farming operation.
(7) The state land use agency shall not charge a fee to
process a change of ownership under subsection (1).
Enacting
section 1. This amendatory act does not take effect unless all of the following
bills of the 103rd Legislature are enacted into law:
(a) Senate Bill No. 685.
(b) Senate Bill No. 687.
(c) Senate Bill No. 688.
(d) Senate Bill No. 689.
(e) Senate Bill No. 690.
(f) Senate Bill No. 699.
This
act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of
Representatives
Approved___________________________________________
____________________________________________________
Governor