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Act No. 72
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 Lauwers, Singh, Daley, Shink and Cherry
ENROLLED SENATE BILL No. 689
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 c ertain 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 36111 (MCL 324.36111), as amended by 2016 PA 265.
The People of the State of Michigan enact:
Sec. 36111. (1) A development rights agreement expires at the expiration of the term of the agreement unless
renewed with the consent of the owner of the land. If the owner of the land has complied with the requirements
of this part regarding development rights agreements, the owner is entitled to automatic renewal of the agreement
upon written request of the owner. A development rights agreement may be renewed for a term of not less than
7 years. If a development rights agreement is renewed, the state land use agency shall send a copy of the renewal
contract to the local governing body.
(2) A development rights agreement or a portion of the farmland covered by a development rights agreement
may be relinquished as provided in this section and section 36111a. Farmland may be relinquished by this state
before a termination date contained in the instrument under either of the following circumstances:
(a) If approved by the local governing body and the state land use agency, land containing structures that were
present before the recording of the development rights agreement may be relinquished from the agreement. Not
more than 2 acres may be relinquished under this subdivision 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 requir ed 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.
(b) If approved by the local governing body and the state land use agency, land may be relinquished from the
agreement for the construction of a residence by an individual essential to the operation of the farm as defined in
section 36110(5). Not more than 2 acres may be relinquished under this subdivision. 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.
(3) Until April 1, 1997, if an owner who entered into or renewed a development rights agreement before
April 15, 1994 makes a request, in writing, to the state land use agency, to terminate that development rights
agreement with respect to all or a portion of the farmland covered by the agreement, the state land use agency
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shall approve the request and relinquish that farmland from the development rights agreement. If farmland is
relinquished under this subsection, the state land use agency shall notify the local governing body of the local
unit of government in which the land is located of the relinquishment.
(4) If the request for relinquishment of the development rights agreement is approved, the state land use
agency shall prepare an instrument, subject to subsections (5) to (8), and shall forward the original relinquishment
instrument to the applicant. The applicant shall have the relinquishment instrument recorded by the register of
deeds in the county in which the property is located. The applicant shall provide a copy of the recorded
relinquishment instrument to the department.
(5) If a development rights agreement or a portion of a development rights agreement is to be relinquished
pursuant to subsection (2) or section 36111a, the state land use agency shall record a lien against the property
formerly subject to the development rights agreement for the total amount of the allocated tax credit of the last
7 years, including the year of termination, received by an owner under section 36109 and attributable to the
property formerly subject to the development rights agreement, plus interest at the rate of 6% per annum simple
interest from the time the credit was received until the lien is placed on the property.
(6) If the property being relinquished from the development rights agreement is less than all of the property
subject to that development rights agreement, the allocated tax credit for the development rights agreement shall
be multiplied by the property’s share of the taxable value of the agreement. As used in this subsection:
(a) “The allocated tax credit ” means the amount obtained by multiplying the owner ’s total farmland
preservation credit claimed in that year on all agreements by the quotient of the ad valorem property tax levied
in that year on property subject to the development rights agreement that included the property being
relinquished from the agreement divided by the total property taxes levied on property subject to any development
rights agreement and used in determining the farmland preservation credit in that year.
(b) “The property’s share of the taxable value of the agreement” means the quotient of the taxable value of the
property being relinquished from the agreement divided by the total taxable value of property subject to the
development rights agreement that included the property being relinquished from the agreement. For years before
1995, taxable value means assessed value.
(7) Thirty days before the recording of a lien under this section, the state land use agency shall notify the
owner of the farmland subject to the development rights agreement of the amount of the lien, including interest,
if any. If the lien amount is paid before 30 days after the owner is notified, the lien shall not be recorded. The lien
may be paid and discharged at any time and is payable to the state by the owner of record when the land or any
portion of it is sold by the owner of record, or if the land is converted to a use prohibited by the former development
rights agreement. The lien shall be discharged upon renewal or reentry in a development rights agreement, except
that a subsequent lien shall not be less than the lien discharged.
(8) Upon the termination of all or a portion of the development rights agreement under subsection (3) or,
subject to subsection (14), the termination of a development rights agreement under subsection (1), the state land
use agency shall prepare and record a lien, if any, against the property formerly subject to the development rights
agreement for the total amount of the allocated tax credit of the last 7 years, including the year of termination,
received by the owner under section 36109, attributable to the property formerly subject to the development rights
agreement. The lien shall be without interest or penalty and is payable as provided in subsection (7). However, if
the development rights agreement was approved or rejected by the local governing body under section 36104 on
or after July 1, 2012 and is terminated under subsection (1), the amount of the lien shall include interest at the
current monthly interest rate of 1 percentage point above the adjusted prime rate per annum from the time the
lien is recorded until it is paid. The adjusted prime rate shall be determined as provided in section 23 of
1941 PA 122, MCL 205.23.
(9) The state land use agency shall notify the department of treasury of the termination of a development
rights agreement.
(10) The unappropriated proceeds from lien payments made under this part shall be forwarded to the state
treasurer for deposit in the agricultural preservation fund created in section 36202.
(11) Upon the relinquishment of all of the farmland under section 36110(2) or a portion of the farmland under
section 36110(3), the state land use agency shall prepare and record a lien against the property formerly subject
to a development rights agreement in an amount calculated as follows:
(a) Establishing a term of years by multiplying 7 by a fraction, the numerator of which is the number of years
the farmland was under the development rights agreement, including any extensions, and the denominator of
which is the number representing the term of years of that agreement, including any extensions.
(b) The lien amount equals the total amount of the allocated tax credit claimed attributable to that
development rights agreement in the immediately preceding term of years as determined in subdivision (a).
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(12) When a lien is paid under this section, the state land use agency shall prepare and record a discharge of
lien with the register of deeds in the county in which the land is located. The discharge of lien shall specifically
state that the lien has been paid in full, that the lien is discharged, that the development rights agreement and
accompanying contract are terminated, and that the state has no further interest in the land under that
agreement.
(13) When farmland subject to a farmland development rights agreement becomes subject to an agricultural
conservation easement or purchase of development rights under section 2140(a), 2141, 36101(a), 36111b, or 36206,
the farmland is automatically relinquished from the farmland development rights agreement . Any remaining
land that is not subject to the agricultural conservation easement or purchase of development rights continues to
be subject to the farmland development rights agreement, regardless of the requirements of the definition of
farmland in section 36101, until the natural termination date of the farmland development rights agreement.
That date shall not be extended.
(14) If, upon expiration of the term of a farmland development rights agreement, the farmland becomes subject
to an agricultural conservation easement or purchase of development rights under section 2140(a), 2141, 36101(a),
36111b, or 36206 or if a farmland development rights agreement is automatically relinquished under
subsection (13), the farmland is not subject to a lien under this section.
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. 688.
(b) Senate Bill No. 690.
(c) Senate Bill No. 686.
(d) Senate Bill No. 687.
(e) Senate Bill No. 685.
This act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor