SB 689 — Land use: farmland and open space; relinquishment of farmland from development rights agreements; expand legal arrangements triggering. Amends sec. 36111 of 1994 PA 451 (MCL 324.36111). TIE BAR WITH: SB 0688'25, SB 0690'25, SB 0686'25, SB 0687'25, SB 0685'25

SB-689, As Passed House,Senate, December 16,2, 2025 SENATE BILL NO.

If the owner of the land has complied with the requirements of this part regarding development TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 rights agreements, the owner is entitled to automatic renewal of the agreement upon written request of the owner.

If the size of the parcel proposed to be relinquished is less than that required TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 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) 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 TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 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.

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 TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 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.

(9) The state land use agency shall notify the department of TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 treasury of the termination of a development rights agreement.

(13) A When farmland subject to a farmland development rights agreement is automatically relinquished when the farmland becomes subject to an agricultural conservation easement or purchase of development rights under section 2140(a), 2141, 36101(a), 36111b, TMV S03728'25_SB689_APH_1S03728'25_SB689_APS_1 zfcdstwz0qbf 1 or 36206, the farmland is automatically relinquished from the farmland development rights agreement.

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