MICHIGAN REAL PROPERTY REVIEW

Vol. 22, No. 4 Winter, 1995

CONTENTS

A Real Property Practitioner’s Guide to the Utilization of Limited Liability Companies in Real Property Transactions ...... 9.17 by Tara E. Barr Only Polluters Pay -- Maybe: Implications of Act 307/Part 201 Amendments for Mortgage Lenders ...... 225 by Vicki R. Harding Building Owners Beware: OSHA Extends Its Reach ...... 231 by James A. Gray, Ill Condominium Associations Get A Break -- Or Do They? ...... 235 by Steve Sowell Legislative Status Report ...... 9.39 by Gregory L. McClelland and Deborah A. Lee Recent Decisions ...... 264 by Joseph Lloyd Continuing Legal Education ...... 266 by Gaff A. Anderson and Arlene R. Rubinstein Standing Committees ...... 269 Special Committee Chairpersons and Council Coordinators ...... 271 Ad Hoc Committees ...... 275 1995 Supplement to Michigan Ethics Opinions ...... 276 Ethics at Your Fingerprints ...... 277 Cumulative Article Index ...... 278 Michigan Environmental Statutes and Regulations (2nd Edition) ...... Inside Back Cover

Published by the Real Property Law Section State Bar of Michigan. MICHIGAN REAL PROPERTY REVIEW

Vol. 22, No. 4 Winter, 1995

The Michigan Real Property Review is the official journal of the Real Property Law Section of the State Bar of Michigan. The Review is published quarterly and is a significant part of the Section’s program of publications, seminars, conferences, legislative liaison and other undertakings for the professional education and development of its members and the Bar.

The Section encourages interested members of the Bar to contribute articles and other publishable material relating to real property law and of interest to the profession. Manuscripts are reviewed by attorneys experienced in the subject matter covered by each article.

Readers are invited to submit articles, comments and correspondence to George J. Siedel, Editor, 5211 Business Administration Building, University of Michigan, Ann Arbor, Michigan 48109-1234. The publication of articles and the editing thereof are at the discretion of the Editor. A cumulative index of articles is printed annually in the Winter issue of the Review.

Articles in the Review may be cited by reference to the volume number, abbreviated title of the publication, the appropriate page number and the year of publication as, for example, 14 Mich Real Prop Rev 35 (1987).

Publications Committee, Real Property Law Section C. Robert Wartell, Chairperson, Detroit George J. Siedel, Co-Chairperson, Editor of Review, Ann Arbor Lawrence D. McLaughlin, Chairperson of Section, Detroit Stephen E. Dawson, Bloomfield Hills Thomas C. Simpson, Bloomfield Hills Ronald T. Barrows, Grosse Pointe Jack D. Shumate, Detroit

Copyright © 1995 Real Property Law Section of the State Bar of Michigan The views, opinions and conclusions expressed in the Michigan Real Property Review are those of only the respective authors and do not necessarily reflect the position or opinion of the State Bar of Michigan, the Real Property Law Section, the Michigan Real Property Review, its editor or the Publications Committee of the Section. The publication in the Review of articles, letters and other materials does not constitute and should not be construed to be an endorsement of any views, opinions or conclusions which may be expressed or implied. The Review is prepared and published as a part of the legal education activities of the Real Property Law Section, for the benefit of its members and the Bar. In publishing theReview, the Real Property Law Section does not purport to engage in or to render legal or professional services. If legal advice or services are desired or appropriate, an attorney should be consulted.

The Michigan Real Property Review is published by the Real Property Law Section of the State Bar of Michigan. An annual subscription to the Review commences in September of each year and ends in August of the following year. Four issues are published each year. The subscription price is $25 annually, payable in advance. Orders for subscriptions should be sent, with the above-stated payment, to Michigan Real Property Review, Real Property Law Section, State Bar of Michigan, The Michael Franck Building, 306 Townsend Street, Lansing, Michigan 48933-2083. MICHIGAN REAL PROPERTY REVIEW Published by the Real Property Law Section, State Bar of Michigan

OFFICERS OF THE SECTION: CHAIRPERSON CHAIRPERSON-ELECT LAWRENCE D. McLAUGHUN C. ROBERT WARTELL 2290 First National Building 28400 Northwestern Highway Detroit, MI 48226 3rd Floor Essex Centre Southfield, MI 48034

VICE-CHAIRPERSON SECRETARY TREASURER JACK D. SHUMATE PATRICK E. MEARS RONALD T. BARROWS 150 West Jefferson 200 Old Town Riverfront Building P.O. Box 36958 Detroit, MI 48226 Grand Rapids, MI 49503 Grosse Pointe, M148236

COUNCIL OF THE SECTION: William B. Acker Denise J. Lewis 201 W. Big Beaver Road 2290 First National Building P.O. Box 4300 Detroit, MI 48226 Troy, MI 48099-4300 Michael W. Maddln Gaff A. Anderson 28400 Northwestern Highway 215 South Washington Square, Suite 200 3rd Floor Essex Centre Lansing, MI 48933-1812 Southfield, MI 48034 David W. Berry Carol Ann Martinelli 32270 Telegraph Road, Suite 200 900 Wilshire Drive, Suite 305 Birmingham, MI 48025 Troy, MI 48084 Robert A. Berlow Willard G. Moseng 1577 North Woodward Avenue, Suite 300 401 South Washington ,Square Bloomfield Hills, MI 48304 P.O. Box 30044 Lansing, MI 48909 James N. Candler, Jr. Reuben A. Munday 500 Woodward Avenue, Suite 400 1300 First National Building Detroit, M! 48226 Detroit, MI 48226 Vicki R. Harding George J. Sledel 100 Renaissance Center 5211 Business Administration 36th Root Ann Arbor, MI 48109 Detroit, MI 48243-1157 Sheldon P. Winkelman Howard A. Lax 2290 First National Building 1400 North Woodward Avenue, Suite 101 Detroit, MI 48226 Bloomfield Hills, MI 48304 MICHIGAN REAL PROPERTY REVIEW

EX-OFFlClO MEMBERS

(PAST CHAIRPERSONS OF THE SECTION)

Patrick J. Keating Peter A. Nathan Detroit West Palm Beach, FL

Maurice S. Binkow Carl A. Hasselwander Detroit Troy

James W. Draper James M. Tervo Detroit Detroit

David S. Snyder Nyal D. Deems Southfield Grand Rapids

William B. Dunn James R. Brown Detroit Grand Rapids

Allen Schwartz Stephen E. Dawson Detroit Bloomfield Hills

Stephen A. Bromberg Thomas C. Simpson Birmingham Bloomfield Hills

Richard E. Rabbideau Robert R. Nix, I! Detroit Detroit

Gary A. Taback Southfield

COMMISSIONER LIAISON

Wendy L. Ports Birmingham MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 217

A REAL PROPERTY PRACTITIONER’S GUIDE TO THE UTILIZATION OF LIMITED LIABILITY COMPANIES IN REAL PROPERTY TRANSACTIONS

by Tara E. Barr*

I. Introduction Corporations offer limited liability while permitting shareholders the right to participate in management. In a typical sale of non-residential real property, the However, since double taxation results when corporate purchaser forms a single purpose entity through which earnings are distributed to shareholders, the taxation the real estate is purchased, developed and operated. inherent with the corporate form may prove to be too Counseling the purchaser on the best entity for the costly. Although favorable tax treatment is available to venture is the first challenge facing the real property corporations under subchapter S of the Internal practitioner. Since the adoption of the Michigan Revenue Code of 1986 (the "Code"), its rigid criteria Limited Liability Company Act (the "Act")I approxi- 2 often outweighs or precludes the availability of the mately two and one-half years ago, real estate election in many transactions3 and does not allow purchasers have rapidly abandoned the limited partner- investors to take advantage of non-recourse debt. ship as the organizational form of choice for the single Accordingly, the client was often forced to weigh the purpose entity and have instead turned to the limited risks associated with the transaction, the negatives liability company (the "LLC"). Prior to the enactment associated with each entity form and to choose a less of the Act, the choice for a single purpose entity was than perfect entity for the transaction. typically limited to partnerships or corporations. While the partnership form is flexible and tax advantageous, Practitioners quickly recognized that the LLC com- partners may remain liable to creditors of the partner- bines the best advantages of the limited partnership ship. Moreover, if investors holding a limited partner- form and corporate form. Primarily, the LLC protects ship interest desire to participate in management, they its members from liability and permits flexibility and risk losing the liability shield from partnership creditors. distinctions with respect to distributions, allocations,

* Tara E. Barr is an associate with the law firm Dawda, Mann, Mulcahy & Sadler, P.L.C. specializing in corporate law. She is a graduate of Cornell University (B.S. 1990) and of Emory University School of Law (J.D. 1993 with distinction). Winter, 1995 -- Page 218 MICHIGAN REAL PROPERTY REVIEW

liquidation distributions and voting rights while retaining delegate the management of the LLC to a manager or the favorable tax treatment enjoyed by partnerships. a group of managers (centralized management). Section Unlike a limited partnership, investors may participate 506(2) permits the free transferability of membership in the management of the LLC without risking liability interests provided that the LLC is managed by its to creditors. Rather, management by all members and members and has not elected continuity of life. Section in varying degrees is permissible with the LLC form. 801(d)(ii) permits continuity of life if the LLC has not Thus, the LLC form is rapidly becoming the client’s provided for managers and free transferability of mere- entity of choice for the purchase, development and bership interests. In other words, if the practitioner operation of real estate¯ adheres to the statute carefully, the LLC should be classified as a partnership for federal tax purposes and If the choice is made to use the LLC form, the real should avoid double taxation that plagues corporations property practitioner faces the challenge of ensuring and their shareholders. However, despite the drafters’ that the LLC complies with the Act and federal tax rule~ attempt to bullet-proof the Act, it is still possible to to achieve the benefits of the LLC described above. This inadvertently trigger corporate tax status. article assumes a basic knowledge of the characteristics of the LLC and is designed to alert real proper~ By definition, the LLC possesses the corporate practitioners to common issues arising in connection characteristic of limited liability. Therefore, the mere- with its use. bers of the LLC may have only one of the remaining three corporate characteristics to preserve pass-through !!. Common Issues Facing the Real Property tax treatment under the Code.6 The real property prac- Practitioner titioner must be careful to draft the operating agreement A. Maintenance of Pass-through Tax to avoid choosing more than one of the remaining Treatment corporate characteristics. Definitions of each character- istic have evolved through private letter rulings and If properly structured, the Internal Revenue Service revenue rulings. Practitioners unfamiliar with the (the "IRS") treats an LLC as a partnership for federal subtleties of these rulings must be careful not to cause tax purposes. The IRS has issued several revenue rulings the inadvertent loss of partnership tax treatment for which provide guidance for obtaining partnership clas- the LLC. sification.4 To determine whether an organization is classified as a corporation for tax purposes, Treasury For example, a trap for the unwary practitioner Regulation Section 30 I. 7702(a)(1) establishes six char- arises when a limited liability company is formed by two acteristics inherent to the corporate form. These are (I) or more commonly controlled entities and the articles an objective to carry on a business for profit and to of organization elect management by managers. divide the gains therefrom; (2) associates; (3) continuity Because a limited liability company requires at least 7 of life; (4) limited liability; (5) free transferability of two members under the Act, in situations where the interests; and (6) centralized management. With respect limited liability company form is desired but only one to characteristics (1) and (2), the IRS has held that an entity or person is involved, partnership tax status may objective to carry on a business for profit and to divide be lost. This danger arises when a commonly owned ¯ the gains therefrom and associates are intrinsic to all special purpose S corporation is created to act as one organizations, be it the corporate or unincorporated member and the individual sole shareholder acts as the form.s Accordingly, when determining if an LLC will be other. If management of the LLC is to be delegated to treated as a corporation rather than as a partnership for a designated manager, 8 it is possible, despite the bullet- federal tax purposes, the IRS focuses its review on proof nature of the Act, that the IRS will determine that whether the LLC possesses more than two of the the LLC also possesses free transferability of interests remaining four corporate characteristics. in addition to limited liability and centralized manage- ment. Although the adoption of three corporate The Act is designed as a "bullet-proof" statute. characteristics may be inadvertent, the LLC will be Other than limited liability, if one of the three remaining treated as a corporation for federal tax purposes and is corporate characteristics of centralized management, ineligible to elect S status until its next tax year. This free transferability and continuity of life is selected for result can cause significant losses to your client. a particular LLC, the Act precludes elections of either of the remaining two characteristics. Specifically, Sec- Private Letter Ruling 9433008 addressed a tions 203 (1)(d), 401 and 402 permit members to situation in which the taxpayer formed an LLC to be the MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 219

sole general partner of a limited partnership which sidiary corporations of P. The operating agreement acquired and operated commercial property. There prohibited all assignments and transfers of membership were two members of the LLC: the taxpayer (an S interests. Unlike the LLC in the 1994 private letter corporation wholly owned by B) and B, an individual. ruling, this LLC did not have free transferability. The The Articles of Organization of the LLC delegated IRS ruled that if there is an absolute prohibition of management to the taxpayer. The operating agreement transfer and/or the LLC dissolves upon a transfer, the provided that the LLC would dissolve upon the occur- LLC lacks continuity of life and free transferability of rence of certain events unless the members elected to interests despite the commonality of control among the continue the LLC within 90 days following the occur- members.11 It follows that if language used in an oper- rence of any such event. The taxpayer requested that ating agreement mirrors the language of the operating the IRS determine for federal tax purposes whether the agreement discussed in this private letter ruling, free LLC was a partnership or a corporation. transferability is likely to be avoided.12 The IRS ruled that the LLC was a corporation for Practitioner’s Note: A sample provision for federal tax purposes because it possessed three of the the above concept follows: four critical corporate characteristics. First, it had elected limited liability by using the LLC form. Second, by No Member shall voluntarily or involuntarily delegating management to the taxpayer, it also had sell, transfer, assign, exchange, mortgage, centralized management. Finally, to the surprise of the pledge, grant or dispose of its Membership taxpayer, the LLC had free transferability of interests. Interest in the Company to any person or In making its decision, the IRS referred to Rev. RUl. 93- persons, entity, corporation, partnership or 4, 1993-I C.B. 225 which concluded that because two other limited liability company. wholly owned entities were the only members of a German GmbH9, the prohibition on transfer was not LLCs that need to avoid free transferability even meaningful because the controlling parent effectively without commonly controlled members should not permit makes all decisions regarding transfer of the GmbH transfer upon the consent of the members. Rather, an interests held by its members. Applying this logic to the absolute prohibition is safer than permitting transfer case before it, the IRS determined that the LLC interests upon consent of the other members. Often, courts were freely transferable because B ultimately controlled imply that consent to transfer may not be unreasonably all voting decisions for the members. withheld. Such an interpretation might be characterized as free transferability because the restriction on transfer The result of Private Letter Ruling 9433008 is is not meaningful. If a particular transaction necessitates disastrous to the client. Since the taxpayer had elected transfer upon consent, the language "which may be subchapter S treatment, the S election was terminated withheld in a member’s sole discretion" should be at the time of organization of the LLC by reason of the inserted to make the restriction on transfer more taxpayer becoming a member of an affiliated group.1° meaningful. Not only would the LLC be treated as a corporation for federal tax purposes, the Subchapter S corporation B. Centralized Management member also lost its Subchapter S treatment. In this instance, the IRS ultimately determined that the taxpayer’s A typical real estate owner or group of owners often membership in an affiliated group was inadvertent within require the delegation of management of an LLC to a the meaning of Section 1362(0 of the Code. However, manager in order to effectively run the day to day since this determination is fact based, there is no business of the property owned by the LLC. Unlike the guarantee that the IRS will hold all such terminations corporate characteristics of free transferability, limited inadvertent. liability and continuity of life, the centralized manage- ment characteristic must be dealt with in the Articles of If the transaction structure necessitates delegating Organization. This feature of the Act is designed to put management to a manager and the members are com- creditors on notice that only certain individuals (a monly controlled, placing a clear prohibition on the manager need not be a member) can bind the LLC. transfer of membership interests under all circumstances should avoid free transferability. In PLR 9510037, the Practitioner’s note: A simple statement such taxpayer requested a determination of the tax status of as "Management will be delegated to Manag- an LLC whose members were two wholly owned sub- ers" is all that is needed. Winter, 1995 -- Page 220 MICHIGAN REAL PROPERTY REVIEW

However, if the election is not made, management is avoid such a presumption and the personal liability decentralized. The form Articles of Organization (Forms resulting therefrom, the member or manager must file 700 and 701) provided by the Michigan Department of a written dissent at such time.I~ Therefore, the Commerce do not include a space for this provision to operating agreement might outline the procedures remind the practitioner to make the election in the for dissent to raise awareness of this potential for Articles of Organization. Failure to include the neces- personal liability. sary statement in the Articles gives each member the authority to act for and to bind the LLC. Exposing the Practitioner’s Note: The following is a sample LLC to liabilities incurred by a member whom the client provision to illustrate the above concept: did not intend to have management authority is a A meeting of the Members may be called upon potential malpractice trap. not less than ten days nor more than sixty days Finally, the real estate practitioner should resist th~ written notice to each Member. The notice shall temptation to name all members as managers in the state the time, date, place and purposes of the Articles. If managers are elected in the Articles and ~II meeting. members are managers, the IR$ may maintain that Any action required or permitted tb be taken at management is centralized despite the fact that the an annual or special meeting of the Members actual management structure is akin to a member- may be taken without a meeting, without prior managed LLC. Therefore, avoid the temptation to list notice, and without a vote, if consents in all the initial members as managers in the Articles of writing, setting forth the action so taken, are Organization if centralized management needs to be signed by the Members having not less than the avoided. minimum number of votes that would be nec- essary to authorize or take the action at a C. Situations Resulting in Liability to Members meeting at which all membership interests entitled to vote on the action were present and In general, a member of an LLC is not personally voted. Prompt notice of the taking of action liable for the acts, debts or obligations of the Company. without a meeting by less than unanimous written With respect to liability of a member, the Act provides; consent shall be given to all Members who have not consented in writing to the action. Unless otherwise provided by law or in an operating agreement, a person who is a mem- If a Member dissents from a proposed Com- ber or manager, or both, of a limited liability pany action, the dissenting Member shall dis- company is not liable for the acts, debts, or sent at the meeting in person or by proxy at the obligations of the company.13 time the vote is taken and file a written dissent with the Company within ten days after the With respect to a manger’s liability, the Act further meeting. In the event an action is authorized provides: without a meeting, without prior notice, and without a vote, any Member who has not con- A manager is not liable for any action taken as sented in writing to such action shall have ten a manager or any failure to take any action if days from the receipt of notice of such action he or she performs the duties of his or her office to file a written dissent with the Company. in compliance with this section.14 Failure to dissent to a Company action in com- pliance with this Section shall be a waiver of However, personal liability may be imposed on a such Members’ right to dissent. member or manager under certain circumstances. Specifically, voting for an improper distributionis results D. Fiduciary Duties of Managers in the imposition of personal liability upon the member or manager voting for such distribution.~6 The Act The Act in its current form requires managers, or creates a presumption that any member or manager members in a member-managed LLC, to discharge who is entitled to participate in a decision which results their duties in good faith, with the care an ordinarily in an improper distribution has consented to the prudent person in a like position would exercise in a distribution regardless of whether such member actually similar position and to act in the best interests of the participated in the decision or had knowledge of it. To Company. is While members are considered managers MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 221

for purposes of the Act, it is unclear to what standard F. Title Insurance and Financing of the Real of loyalty a member will be held in a manager-managed Estate Transaction2° LLC. Until the Act is clarified by case law or statutory Since the adoption of the Act in Michigan and the amendment, the operating agreement should carefully increasing usage of the LLC throughout the nation, title describe the fiduciary duties of both members and insurers and lenders have grown comfortable with pro- managers if the client desires to hold members to a viding insurance and financing to an LLC. Typically, the higher standard of care than the standard of care insurer or lender requires documents similar to those required under the Act. required from a corporation prior to providing insur- As of this writing, the Michigan legislature is con- ance or financing in connection with a real estate transaction. These include: 1) certified copy of the sidering a proposal to amend the Act to provide that a member owes the duty of loyalty and the duty of care Articles of Organization (and all amendments) of the to the other members of a member-managed LLC. LLC; 2) a copy of the Operating Agreement (and all Under the proposed amendment, in a manager-man- amendments thereto) governing the LLC; 3) resolutions of the members authorizing the real estate transaction; aged LLC, a member who is not a manager owes no 4) a certificate of filing and no dissolution of the LLC fiduciary duties to the LLC or other members solely by issued by the Michigan Department of Commerce, membership in the company. However, if a member’s Corporation and Securities Bureau (similar to a Good conduct takes on the characteristics of management, Standing Certificate for the corporate form); and 5) an such member must act in accordance with the duties of incumbency certificate attesting to certain facts about loyalty and care to avoid personal liability to the other the LLC required by the insurer or lender. members for his acts. When obtaining title insurance for the property to E. Valid Purpose and Licenses be acquired by the LLC, the real property practitioner A Michigan LLC may be formed for any lawful should consider asking the insurer for a "Fairway purpose for which a domestic partnership or corpora- Endorsement." The "Fairway Endorsement" has its origins in the partnership context. In 1985 a title insurer tion may be formed.19 Therefore, it is important to consult both the Michigan Uniform Partnership Act and denied coverage to a partnership which experienced a change of partners arguing that under the Partnership the Michigan Business Code to ascertain if the use of Act, a change in partners technically dissolved that the LLC is permissible. Moreover, special concerns partnership.21 The court agreed. As a result, most title arise if a license will need to be issued to the limited companies will issue "Fairway Endorsements" for an liability company. For example, prior to September of additional fee when the owner is a partnership .22 Since 1995, LLCs were not permitted to obtain a liquor LLCs also technically dissolve upon a change of license from the Michigan Liquor Control Commission. membership, you may want to consider obtaining a If the LLC to be formed must secure a license or Fairway Endorsement when obtaining title insurance licenses, check with the regulatory agency to confirm for an LLC.~3 that a license will be issued to an LLC. G. Dissolution & Continuity of Life Like the corporate form, professionals desiring to use the LLC form must comply with Article 9 of the Act Unlike a limited partnership which does not which establishes Professional Limited Liability terminate upon the death, disability, withdrawal, Companies (a "PLC"). The most important requirement expulsion or bankruptcy of a limited partner, the Act of a PLC is the requirement that all members be provides for dissolution of the LLC upon each of the licensed in the professional service rendered by the following events: Company. While the use of a PLC in the real estate purchase and sale context is limited, an agency for land (a) At the time specified in the articles of surveyors must be formed under Article 9 because land organization or an operating agreement. surveyors require a license prior to performing services, (b) Upon the happening of events specified in Finally, if the proposed members of an LLC consist of the articles of organization or an operating professionals who must use the PLC form and agreement. nonprofessionals, the LLC form is not the appropriate choice of entity for the transaction. (c) By the unanimous consent of all members. Winter, 1995 -- Page 222 MICHIGAN REAL PROPERTY REVIEW

Upon the death, withdrawal, expulsion, Upon the occurrence of an Event of Default as bankruptcy, or dissolution of a member, or defined herein or under the Act, each Member the occurrence of any other event that shall vote to continue the business of the terminates the continued membership of a Company. member in the limited liability company, unless either of the following applies .... 24 and/or: The Act further provides that the members may vote to A Member shall not withdraw from the Com- continue the LLC despite the occurrence of an event pany without the consent of the other Mem- of dissolution within 90 days from such date. The bers, which consent may be withheld in their automatic dissolution provided for under this Section, sole discretion. despite the members’ ability to vote to continue the !!!. Conclusion business of the LLC, is sufficient to avoid the. characteristic of continuity of life for federal tax With the adoption of the Act, there is now an purposes if the operating agreement provides that at attractive entity to structure a real estate transaction. least a majority in interest of the remaining members Since LLCs are relatively new and untested in the elect to continue the business of the LLC within such courtroom, it is important to adhere to the Act and ninety-day period. follow IRS guidelines to ensure that clients receive the benefit of limited liability protection and favorable tax On the other hand, the automatic dissolution under treatment that the LLC offers. Section 801(d) of the Act could be disastrous in a real estate transaction. To address the concern that a ENDNOTES majority in interest of the remaining members will not I. 1993 Public Act 23. elect to continue the business of the LLC upon the occurrence of an event of dissolution, the operating The Michigan Limited Liability Company Act became agreement could provide that all members must vote to effective June 1, 1993. continue the operation of the limited liability company Limitations are placed on the number and type of upon the occurrence of a triggering event. While this shareholders. Distinctions among shareholders with provision is not likely to eliminate a member’s statutory respect to distributions, allocations and voting rights are not permissible since only one class of stock is right to dissolve, a cause of action for breach of contract permitted and restrictions exist regarding parent- resulting in personal liability to the member may subsidiary relationships. deter a member from exercising its right to dissolve under the Act. 4. See Rev. Rule 88-76, 1988-2 C.B. 360. Treasury Regulation Section 301.7701-2 provides that A second alternative to consider is to prohibit characteristics common to partnerships and corpora- members from withdrawing from the LLC except in tions are not material in attempting to distinguish be- limited circumstances. Section 509 of the Act provides tween an association and a partnership. See also PLR that a member may withdraw from an LLC as provided 9510037. in the operating agreement or by giving 90 days written Under the Act, limited liability is not required. Section notice to the company and the other members. The Act 501 specifically permits members to limit, in the oper- further provides that if the withdrawal violates the ating agreement, the general premise that a member or provisions of the operating agreement, the withdrawing manager is not liable for the acts, debts, or obligations of the LLC. However, the primary reason to use the LLC member is not entitled to distributions under the Act, form in lieu of a limited partnership is to limit the liability and the company may recover damages from the with- of all parties involved. drawing member for breach of the operating agree- ment. To dissuade a member from exercising its Section 102(2)(I) of the Act provides ""Limited Liability Company" or "domestic limited liability company" means statutory right to withdraw, limit the circumstances an entity that is an unincorporated association having under which withdrawal is permitted. While the member two or more members and is formed under the Act." may still withdraw, which technically dissolves the LLC, the company may seek damages from the member 8. A manager need not be a member of the LLC. See Section 402(1). resulting from his early withdrawal. 9. The German Gessellschaft mit beschrenkter Haftung Practitioner’s Note: The following provisions ("GmbH"), a German limited liability entity, is similar to illustrate the above concept: a domestic LLC. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 223

10. For a definition of Affiliated Group .see Section 1504 of 17. Section 308(2). the Code. 18. Section 404 of the Act. 11. See also PLR 9507004. 19. See Section 201; see also Article 9 of the Act for 12. "Membership in [the Company] shall be restricted to the special regulations regarding professional limited initial members, ... assignment in whole or in part of any liability companies. membership interest is prohibited..., and that no new members shall be admitted...." PLR 9510037. 20. The information in this section was first presented to the author in a recent ICLE seminar presentation by 13. Section 501(2). Daniel H. Minkus entitled "Current Business Issues 14. Section 404(4). Regarding Michigan LLCs." 15. Section 307(1) provides "A distribution shall not be 21. Fairway Development Company v Title Insurance made if, after giving it effect, the limited liability com- Company of Minnesota, 621 F Supp 120 (ND Ohio pany would not be able to pay its debts as they become 1985). due in the usual course of business or the limited liability 22. At the present time, many practitioners are forgoing the company’s total assets would be less than the sum of its "Fairway Endorsement" because of its limited protection total liabilities plus, unless the operating agreement and additional cost. provides othe~uise, the amount that would be needed, if the limited liability company were to be dissolved at the 23. Currently, Fairway-type endorsements are not generally time of the distribution, to satisfy the preferential rights available for LLCs. However, many title companies are of other members upon dissolution that are superior to evaluating the use of the "Fairway Endorsement" in the the rights of the member or members receiving the LLC context and indicate that a similar endorsement is distribution." likely to be available to LLCs in the near future. 16. Section 309(1). 24. Section 801. MICHIGAN RE~L PROPERTY REVIEW Winter, 1995 -- Page 225

ONLY POLLUTERS PAY n MAYBE: IMPLICATIONS OF ACT 307/PART 201 AMENDMENTS FOR MORTGAGE LENDERS

by Vicki R. Harding*

Public Act No. 71 of 1995 became effective June Michigan equivalent to CERCLA. Although the Act 307 5, 1995, and brought major changes to Act 307, now amendments were billed as "Polluter Pay" laws, liability more properly called Part 201. These amendments was clearly not limited to those who caused pollution. have particular significance for mortgage lenders be- Thus, a threshold issue in the acquisition of property cause, among other things, they revise both (a) some of (including acquisition in the context of a foreclosure the lender specific provisions, and (b) the ground rules sale) was the potential liability for contamination caused for determining owner liability for environmental con- by former owners and operators. In 1994, Michigan’s tamination existing at the time a person becomes the environmental laws were recodified in the Natural owner or operator of property. Since a foreclosing Resources and Environmental Protection Act ("NREPA"), lender is often the successful bidder at a foreclosure sale and Act 307 became Part 201 of NREPA.I in Michigan, owner liability for pre-existing contamina- tion is a key area of concern. By 1994 a perception had emerged that environ- mental contamination and cleanup requirements were Evolution of Act 307/Part 201 impeding efforts to revitalize urban areas. As a conse- quence, in late 1994 several groups, including a commit- It is easy to forget that Public Act 307 of 1982 tee formed by the mayors of a number of Michigan began life as a relatively innocuous statute. It was only cities, began to develop proposals to alter liability, revise after major amendments in 1990 that the Michigan cleanup standards, and otherwise modify the environ- Environmental Response Act -- commonly referred to mental provisions in Part 201 in an effort to reduce as Act 307 -- could be fairly characterized as the urban redevelopment costs.2 These efforts led to Public

* Vicki R. Harding is a partner in the Detroit office of Pepper, Hamilton & Scheetz. She is a member of their commercial practice group specializing in real estate, bankruptcy and intellectual property matters, and received her B.A. from the University of Texas at Austin and J.D. from Harvard Law School. Ms. Harding is a member of the Mortgages and Related Financing Devices and Security Interests Committee of the Real Property Law Section of the State Bar of Michigan. Winter, 1995 -- Page 226 MICHIGAN REAL PROPERTY REVIEW

Act 71 of 1995 and related acts, which significantly Ironically, the Michigan legislature had previously amend Part 201. A major theme of these amendments codified elements of the Environmental Protection is reflected in the new legislative finding that "liability Agency lender liability regulations before the Michigan for response activities to address environmental con- Attorney General was successful in challenging those tamination should be imposed upon those persons who regulations. 11 Thus, under Section 20126(5), "a lender are responsible for the environmental contamination. ,,3 who has not participated in the management of the facility is not liable under this part for costs or damages Threshold Concent of "Facility" as a result of response activity taken in response to a release or threat of release." This subsection goes on The former Category A, B, and C cleanup criteria to state: "For a lender, this subsection applies only to have been replaced by criteria that are based on land response activity undertaken prior to foreclosure." At a use categories, including regular and limited categories minimum, a lender has significant protection against for residential, commercial, recreational, industrial an~l liability based solely on its interest as a mortgagee. In other land use based categories developed by the Michi- addition, as discussed below, this subsection arguably provides protection to a mortgagee after foreclosure gan Department of Natural Resources (now Michigan with respect to pre-foreclosure contamination. Department of Environmental Quality, or "MDEQ")~.4 Under Part 201, a mortgagee participates in man- Prior to the 1995 amendments, "facility" was agement if it "engages in acts of facility management defined generally as "any area, place or property that constitute actual participation in the management where a hazardous substance has been released, deposit- or operational affairs at a facility and that exceed the ed, stored, disposed of, or otherwise comes to be mere capacity to influence, or ability to influence, or the Iocated."s Under Part 201 as revised, the term "facility," unexercised right to control facility operations."12 which is a keystone for a number of other provisions, Participation includes exercising "decision making is now defined by reference to the residential criteria. control over the borrower’s environmental compliance," Specifically, facility is now defined to mean "any area, taking responsibility for hazardous substance handling place or property where a hazardous substance in or disposal, and exercising control such that the mort- excess of the concentrations which satisfy the gagee is making day-to-day decisions with respect to requirements of Section 20120a(1)(a) or (17) [cleanup environmental compliance or substantially all of the criteria for residential category] has been released, operational aspects of the enterprise (which does not ~3 deposited, disposed of, or otherwise comes to be include financial or administrative aspects). located. ,,6 Participation in management does not include the "mere capacity to influence, or ability to influence, or Lender-Snecific Provisions the unexercised right to control facility operations," or Prior to Public Act No. 71, the lender-specific undertaking or requiring environmental inspections of provisions in Part 201 applied only to a "commercial the mortgaged property, or requiring a prospective borrower to undertake activities to comply or come into lending institution" (including banks, savings and loan compliance with any applicable law. Part 201 also associations, regulated affiliates and subsidiaries, insur- specifically provides that a variety of loan policing and ance companies, and certain other limited categories of ~ work-out activities do not constitute participation in entities). Under Part 201 as amended, the concept of management, including "requiring or exercising rights "commercial lending institution" is replaced with ’’s pursuant to an assignment of accounts or other amounts "lender. The definition as amended has been signifi- owing to an obligor.’u4 cantly expanded and includes both institutional lenders and "[a]ny other person who loans money for the Part 201 also specifically provides that a lender that purchase of or improvement of real property" and does not cause or contribute to environmental contami- "[~]ny person who retains or receives a security interest nation is not liable because it conducts a "lawful mar- to service a debt or to secure a performance obliga- shalling or liquidation of personal property," which tion."9 The 1995 amendments also added a definition includes "holding a sale of personal property on a of "security interest," which is broadly defined to include portion of the facility.’us various mechanisms for evidencing an interest in real property for purposes of securing a loan or other Suner Priori~ Lien obligation.I° This broad definition reinforces the expanded application of protection offered mortgagees Under Section 20138, if a facility has been the in Part 201. subject of response activity by the state, there will be a MICHIGAN REAL PROPERTY REVIEW Winter, 1995 w Page 227

lien on the facility for unpaid costs and damages to the of a facility, or who was an owner or operator of a extent that the owner of the facility is liable for those facility at the time of disposal of a hazardous substance, costs and damages.16 This lien will have priority over is generally liable under Section 20126 only if it was other liens and encumbrances, except liens and encum- "responsible for an activity causing a release or threat brances recorded before the date the state’s lien is of release." recorded. However, the Michigan Attorney General may petition a court for a lien that takes priority over However, there is an important qualification for a all other liens, including prior recorded liens, or a lien person who becomes an owner or operator after the on other assets of the potentially liable person who effective date of the 1995 amendments (i.e., June 5, owns the facility.17 1995). Under Section 20126(c), persons who become owners or operators after that date are potentially liable These provisions were largely unchanged by the for pre-existing contamination unless (1) a "baseline 1995 amendments, except that liens are now condi- environmental assessment is conducted prior to or tioned on the owner being liable under Section 20126. within 45 days after the earlier of the date of purchase, This means that the potential for environmental liens occupancy, or foreclosure," and (2) the results of the has been reduced since the potential liability of an baseline environmental assessment are disclosed to the owner for contamination that is not caused by the MDEQ if the results confirm that the property is a owner has been reduced. Note that the state’s lien "facility."2~ Baseline environmental assessment ("BEA") against real property is perfected by filing a notice with is defined as an environmental evaluation of conditions the register of deeds in the county where the property that exist at the time of purchase, occupancy, or fore- is located, and its lien on personal property is perfected closure that reasonably defines the existing conditions by filing in accordance with applicable laws and regu- so that there will be a basis for distinguishing new lations relating to that type of personal property,is releases from existing contamination.22 If a new Although mortgagees, particularly out-of-state owner or operator complies with this requirement, it is mortgagees, sometimes express interest in and concern not liable for contamination existing at the earlier of about the potential for a priming environmental lien, the date of purchase, occupancy, or foreclosure, unless it is responsible for the activity causing the the possibility of a senior lien is not the primary issue 23 in Michigan. As noted above, in Michigan the mort- contamination. gagee is typically the successful bidder at a foreclosure Thus, it is important that a foreclosing mortgagee sale. At that point, the mortgagee is faced with the 19 consider complying with the BEA requirements in order possibility of direct liability for any contamination. to minimize potential liability for pre-existing contami- This potential for recourse against the mortgagee is far nation. The requirement that the BEA be conducted more significant than the possibility that the state will within 45 days of "foreclosure" raises an issue of incur response costs and then attempt to obtain a feasibility because, under Michigan law, a mortgagor priming lien on the affected property. has a post-foreclosure sale redemption period and usually has a right to continue in possession of the Persons Subiect to Liability ~ New Owners or foreclosed property until expiration of the redemption O_nerators period. However, the 1995 amendments address this Section 20126 establishes general liability roles for issue by defining foreclosure as "possession of a owners and operators (both current and at the time of property by a lender on which it has foreclosed on a disposal), transporters, and persons who arrange the security interest or the expiration of a lawful redemption disposal, treatment, or transport for disposal or treat- period, whichever occurs first."~4 Also note that there ment of hazardous substances.2° The owner and is a new provision that allows a mortgagee to petition operator categories are the most significant for a a court for access to a facility in order to conduct mortgagee since it may eventually be classified in one response activities approved by the MDEQ.2s or both of these categories if it acquires the property as a result of a foreclosure. Additional Considerations for Mortgagee as Prior to the 1995 amendments, owners and 6pera- tots were potentially liable solely by virtue of their status Although the most conservative approach is to as an owner or operator of a contaminated property. comply with the BEA requirements in order to minimize Now, a person who is currently an owner or operator potential liability for contamination existing at the time Winter, 1995 -- Page 228 MICHIGAN REAL PROPERTY REVIEW

of a foreclosure, a foreclosing mortgagee may have an provision will have any practical benefit in light of additional defense under Section 20126(5).26 As dis- the state’s interpretation of the conditions and cussed above, this subsection provides that a lender who requirements. has not "participated in management" of a facility is not liable for "costs or damages as a result of response Both of these provisions have inherent ambiguities, activity taken in response to a release or threat of which probably cannot be resolved without further release." This limitation on liability applies only to legislation and/or interpretation by a court. Although "response activity undertaken prior to foreclosure." the ambiguities make it difficult to rely on these provi- This qualification could be read to mean that the sub- sions as the primary line of defense, they both present section is simply inapplicable after foreclosure. How- a viable fallback position for a mortgagee that has a ever, it could also be read to mean that a mortgagee will problem, and should be considered under appropriate be responsible for costs or damages that result from circumstances. response activities that it undertakes after foreclosure,~ but is not liable for any conditions that occurred prior Ongoina Duties and MDEO Determination to foreclosure -- regardless of compliance with the BF_~ requirements. Notwithstanding the general rule limiting liability of an owner or operator to contamination caused by the Prior to the 1995 amendments, a commercial owner or operator, Part 201 imposes affirmative duties lending institution that had not participated in manage- on an owner or operator if it has knowledge that the ment, and that conducted a foreclosure environmental property is a facility (i.e., contamination exists in excess assessment that did not indicate a release or threat of of the residential cleanup criteria).29 In particular, it must release, was entitled to a rebuttable presumption that it (a) undertake measures necessary to prevent exacerba- was not liable based on the innocent purchaser excep- tion of the existing contamination,3° (b) exercise "due tion.27 This defense did not apply to releases that began care" by undertaking response activities necessary to after the commercial lending institution took title to the mitigate unacceptable exposures and allow for the property. Given the general intent to limit liability to intended use of the facility in a manner that protects parties responsible for contamination that underlies the public health and safety, and (c) take reasonable 1995 amendments, combined with the defense that precautions against the reasonably foreseeable was already available to lenders under the prior version consequences of third-party actions or omissions.31 of Part 201, it is reasonable to conclude that the interpretation of 20126(5) which provides broader A person may petition the MDEQ within six months protection to mortgagees is the proper interpretation. after completion of a BEA for a determination that the person qualifies for an exemption under Section If a mortgagee becomes the owner of property and 20126(I)(c), together with a determination that the then discovers that the property is so contaminated that proposed use of the facility satisfies the person’s due it has no value, the mortgagee may be able to transfer care obligations.~2 The MDEQ is required to issue a the property to the state. Under Section 20126(7), as written determination within 15 business days, which revised by the 1995 amendments, a lender that is not may be conditioned on completion of response activi- responsible for a release and complies with the BEA ties described in the petition. As a practical matter, a requirements "may immediately transfer to the state the potential owner will need to consider conducting the property on which there has been a release or a threat BEA sufficiently early in the process so that it will be of release" if the mortgagee (a) lists or advertises the able to remedy any deficiencies in the BEA within the property for sale within nine months following fore- initial 45-day window for conducting a BEA. Otherwise, closure for at least 120 days, (b) takes reasonable care the MDEQ may determine that the requirements of in maintaining the real estate and fixtures, (c) provides Section 20126(I)(9) have not been met, and any the MDEQ all environmental information available to attempts to remedy the deficiencies will be too late to the mortgagee, (d) complies with any MDEQ orders meet the 45-day deadline in that section. issued under Section 20119 (relating to imminent and substantial dangers or requiring response activities by Conclusion liable persons), and (e) takes appropriate response actions to abate the threat of a fire or explosion or The 1995 amendments to Part 201 have imminent hazard through direct contact with hazardous significant implications for mortgagees. The safe harbor substances.2s It remains to be seen whether this and other provisions designed to provide relief to MICHIGAN REAL PROPERTY" REVIEW Winter, 1995 -- Page 229

mortgagees are no longer restricted to institutional 12, See MCL 324.20101a. lenders. The attempts to focus liability on persons 13. See MCL 324.20101a(1). responsible for contamination should also provide additional comfort to mortgagees who are concerned 14, See MCL 324.20101a(2)(d)-(e) & (3). about liability for pre-existing contamination, although 15. See MCL 324.20126(4)(c). there are significant conditions and qualifications to this 16. See MCL 324.20138. However. note that under Part potential reduction in liability. It will be important to 201 a "person who is liable" includes a person who is watch for further developments as everyone struggles to merely subject to liability and does not presume that the sort out the practical effect of these changes. liability has been adjudicated. See MCL 324.20101(2). ENDNOTES 17. See MCL 324.20138(2). I. MCL 324.20101 et seq.; MSA 13A.20101 et seq. 18, See MCL 324.20138(5). 2. See e.g., House Legislative Analysis for House Bills 19, However. note that the mortgagee may be able to avoid 4596, 4597 & 4598, dated March 30, 1995 at pp. liability for,pre-existing contamination pursuant to Sec- 1-2. tions 20126(1) and/or 20126(5). 20. See MCL 324.20126(1)(a)-(e). 3. ~ee MCL 324.20102(f). 4. See MCL 324.20120a. 21, See MCL 324.20126(1)(c). 22. 5. See former MCL 299.603(m); MSA 13.32(3)(m); See MCL 324.20101(1)(d). initially recodified as MCL 324.20101(1)(k); MSA 23. See MCL 324.20126(2). 13A.20101(1)(k). 24, See MCL 324.20i01(1)(n). See 6. MCL 324.20101(1)(I). Section 20120a(1)(a) refers 25. See MCL 324.20135a. to cleanup criteria for the residential land use category, and subsection 17 includes an additional reference to 26. See MCL 324.20126(5). factors to be considered in establishing categorical cleanup 27, See former MCL 299.612a(8) & (1)(c); initially recodified criteria. as MCL 324.20127(8) & {1)(c). 7. See former MCL 299.603(d); MSA 13.32(3)(d); 28. See MCL 324.20126(7). initially recodified as MCL 324.20101(1)(d); MSA 13A.20 i01(1)(d). 29. See MCL 324.20107a. 8. See MCL 324.20101(1)(s). 30. Exacerbation means that contamination migrates beyond the property at levels that exceed applicable 9. See MCL 324.20101(1)(s)(xi) & (xii). cleanup criteria or there is a change in conditions that increases response activity costs as a result of activities 10. See MCL 324.20101(1)(dd). of the owner or operator. See MCL 324.20101(1){k). See Kelley v Environmental Protection Agency, 15 11. 31. See MCk 324.20107(a)(1). F.3d 1100 (D.C. Cir. 1994), cert denied 115 S.Ct. 900 (1995). 32. See MCL 324.20129a. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 231

BUILDING OWNERS BEWARE: OSHA EXTENDS ITS REACH

by James A. Gray, III*

In a move that might be viewed as a stealth attack people are aware of their final adoption and many on building owners, the Occupational Safety and property owners are bound to be taken by surprise should Health Administration (OSHA), with little or no publicity, they be questioned concerning compliance. has brought building owners within the purview of the Occupational Safety and Health Act (OSH Act). The The Catalyst For The New Revisions agency has inserted a hazard communication standard into 29 CFR § 19 I0 (regulating occupational exposures An expansion of asbestos regulation at this time is to asbestos). The new standard applies directly to surprising. In recent years, the conventional wisdom was property owners and landlords of buildings constructed in that the furor surrounding asbestos exposure was finally 1980 or earlier. Effective October I, 1995, building drawing to a close. With a decreasing pool of "deep owners must presume that certain surfacing materials pockets," litigation had become less frequent, the media contain asbestos, inform employers and employees in appeared to have lost interest, and even the regulatory the building of the presence of these materials, maintain authorities had to back off after the chaotic results of " records, and in some cases post warning signs and initiate an ill-conceived attempt to eliminate asbestos in the training programs for housekeeping personnel.I The schools. Furthermore, there has been a shift away only way for building owners to avoid application of the from asbestos products wherever substitutes are avail- hazard communication requirements is to conduct tests able, and it appears unlikely that major new uses will be of the materials in question to rebut the presumption found for asbestos in the future. However, the current established by the new standard. Although these revision has its roots in a series of events that took revisions have been in the making since 1986, few place in the mid-eighties.

*James A. Gray, III is an associate specializing in environmental law in the Detroit office of Butzel Long. He holds a B.S. in Biology from the University of Michigan, Graduate Certificate in Chemical Engineering: Hazardous Waste Management from Wayne State University and J.D. from the University of Michigan Law School. Prior to entering the practice of law, he served as an environmental enforcement officer for the Detroit Health Department. Winter, 1995 -- Page 232 MICHIGAN REAL PROPERTY REVIEW

The fact that "building owners" are now within the comments, the deadline was postponed several times purview of the Occupational Safety and Health Act (OSH and the period for public comment eventually closed on Act) appears to be a classic example of the adage "be January 4, 1993. There were no further developments careful what you ask for -- you just may get it." Most of for over a year, leading many people to believe that the the revisions in the amended standards are the final issue had quietly disappeared. On August 10, 1994, response to an order of the Court of Appeals for the however, OSHA issued the final rule revising the asbestos District of Columbia. In Building and Construction standards for general industry.4 In the revised standard, Trades Department, AFL-CIO v Brock, 838 F.2d OSHA expands on the idea of hazard communication 1258 (D.C. Cir. 1988), the two plaintiff unions proposed by the unions in Brock. The approach challenged revised standards issued by OSHA in July adopted by OSHA places the primary compliance burden 1986 governing worker exposure to asbestos. The unions on the building and/or facility owner, even though the were interested in heightening the protection afforded to, employees at risk may not be the owner’s employees. its members involved in "asbestos-related" work. The initial complaint focused primarily on questioning the As for the question of OSHA’s authority to regulate scientific foundation for the standards regardinff building owners, the 1990 NPRM pointed to other permissible exposure limits (PEL) and how OSHA came standards in which OSHA had required building owners to its conclusions in promulgating the standards. to warn of defects, take remedial action or provide However, during a previous comment period and information to the directly-employing employer. OSHA during the course of the litigation, the unions made a reasoned that the building or project owner is the best and peripheral argument that "OSHA should require all often the only source of information concerning the employers contracting or subcontracting asbestos- location of asbestos installed in structures. The agency related work to establish, maintain, and transfer to then proceeded to make building owners "statutory building owners written records of the presence and employers" by adding the term "building/facility locations of any asbestos or asbestos products in any owner" to the definitions’ section of the revised standard. actual or prospective workplace." In response, OSHA "Building/facility owner is the legal entity, including a argued that building owners were "outside the domain of lessee, which exercises control over management and the OSH Act" and did not even address this proposal in record keeping functions relating to a building and/or its 1986 revision of the standards. facility in which activities covered by this standard take place."s Thus, by a change of a regulatory definition, By isolating and applying a rather expansive con- OSHA subjected owners of commercial and office struction of certain language in the OSH Act, the court buildings to a regulation originally intended to apply only disagreed with OSHA’s conclusion that building owners to manufacturing and service industries. were not covered. "The definition of the standards that OSHA is to adopt seems somewhat broader: the stan- OSHA further expanded the scope of the asbestos dards are to ’require conditions, or the adoption or use of standard by adopting an approach requiring that certain one or more practices, means, methods, operations, or materials must be presumed to contain asbestos. The processes reasonably necessary or appropriate to pro- revised standard introduces the term "presumed asbestos vide safe or healthful employments and places of employ- containing material" (PACM) which is defined as ment.’’2 The court then remanded the matter to OSHA "thermal system insulation and surfacing material found for further consideration. in buildings constructed no later than 1980/’6 This "flexible" presumptive approach allows building/facility OSHA’s Response After Remand owners whose buildings/facilities contain PACM and other employers of employees potentially exposed to In effect, three short paragraphs addressing a PACM to choose the most cost-effective way to protect peripheral issue within a lengthy opinion have resulted employees. "They may treat the material as if it in subjecting a whole new class to OSHA regulation. In contains asbestos and [comply with the new standards]; response to the Court .of Appeals’ remand, OSHA test the material and rebut the presumptions; or reconsidered the question of regulating building owners combine strategies.-7 and issued a notice of proposed rulemaking (NPRM) on July 20, 1990.3 The -original date for the close of the Although the presumption primarily targets thermal public comment period was September 25, 1990. How- system insulation (TSI), building owners will face their ever, at the request of several interested parties and after greatest challenge when characterizing flooring the submission of an unusually high volume of studies and materials. Asphalt and vinyl flooring materials installed MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 233

no later than 1980 are specifically referred to in the installed material as PACM through testingP This may be statute and must be treated as asbestos containing. done by: Although the condition of the material influences its risk potential, OSHA continues its practice of not (1) having a completed inspection conducted distinguishing materials based on their friability. As a pursuant to the requirements of the Asbestos result, it is unlikely that building owners will be able to Hazard Emergency Response Act (AHERA) (40 simply encapsulate or cover regulated materials as a CFR 763, Subpart E) which demonstrates that method of compliance. It is the "presence" of these no asbestos is present in the material; or materials and the imparting of that knowledge that is the focus of the new standard. (2) performing individual tests of the PACM which demonstrate that no asbestos is present. Duties of Building Owners Under (This option also requires testing as prescribed by The Revised Standard statute.) Section (j) of the revised standard sets forth the duties The statutory language appears to preclude any other of building owners under the new rules.8 Under this alternatives. section, the building owner must: Conclusion (1) determine the presence, location, and quantity of PACM at a building/facility. (Owners The new statutory requirements are already in effect must exercise due diligence in so doing); and it is clear that building owners are now subject to OSHA regulation. The requirements imposed by the (2) maintain records of all information required revised standard may not seem particularly onerous, but to be provided pursuant to the standard they will create an added expense for owners of buildings regarding the presence, location and quantity built in or before 1980. It also remains to be seen what of ACM and/or PACM in the building/facility. Such records must be kept for the duration of problems these requirements may cause for lessors. ownership and shall be transferred to successive While it is extremely surprising that these revisions owners; and came about with little or no fanfare, the question of the (3) building and facility owners shall inform OSH Act’s application to building owners did not go employers of employees, and in turn employers completely unchallenged, and as a result, any future shall inform employees who will perform house- challenges on this point are not likely to be successful. keeping activities in areas which contain ACM Although OSHA is not known for zealous enforcement, and/or PACM of the presence and location of building owners must face the fact that they are now ACM and/or PACM in such areas which may be saddled with a new statutory liability. contacted during such activities. ENDNOTES In addition to these three basic requirements, the 1. 29 CFR § 1910.1001(j). standard indicates that if the building/facility owner directly employs the housekeeping staff, the owner shall 2. Building and Construction Trades Department, AFL- CIO v Brock, 838 F.2d 1258, 1278 (D.C. Cir. 1988). also provide, at no cost to employees who perform housekeeping activities, an asbestos awareness training 3. 55 Federal Register 29712 (July 20, 1990). course which shall at a minimum contain the following 4. 59 Federal Register 40964 (August 10, 1994). elements: health effects of asbestos, locations of ACM and PACM in the building, recognition of ACM and 5. 29 CFR § 1910.1001(b). PACM damage and deterioration, provisions of the 6. Id. standard relating to housekeeping, and proper response to fiber release episodes. 7. 59 Federal Register 41015. The only way for building owners to avoid these new 8. 29 CFR § 1910.1001(j). statutory requirements is to rebut the designation of 9. 29 CFR § 1910.10010)(8). MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 235

CONDOMINIUM ASSOCIATIONS GET A BREAK m OR DO THEY?

by Steve Sowell*

On October 22, 1994, President Clinton signed the bership association with respect to the debtor’s Bankruptcy Reform Act of 19941 ("the Reform Act") into interest in a dwelling unit that has condominium law. The many and varied provisions of the Reform Act ownership or in a share of a cooperative housing include some much-needed protection for Condominium corporation, but only if such fee or assessment is Associations and Cooperatives when a co-owner2 files payable for a period during which -- for Chapter 7 bankruptcy,a Section 309 of the Reform Act, entitled "Fairness to Condominium and Cooperative (A) the debtor physically occupied a dwelling Owners," amends Section 523(a) of the United States unit in the condominium or cooperative project; Bankruptcy Code4 ("the Bankruptcy Code") to exempt or from dischargeability any fee or assessment which falls s (B) the debtor rented the dwelling unit to a due after the bankruptcy petition is filed (i.e., postpetition tenant and received payments from the tenant assessments), provided that the fee is payable for a period for such period,but nothing in this paragraph during which the debtor either physically occupied the shall except from discharge the debt of a debtor unit, or rented the unit and received payments from the for a membership association fee or assessment tenant for the period. Section 309 adds a new §523(a)(16) for a period arising before entry of the order for to the Bankruptcy Code, which states that a discharge relief in a pending or subsequent bankruptcy under any of the chapters of the Bankruptcy Code does case.6 not discharge an individual debtor from any debt: Before passage of the Reform Act, there was a split (16) for a fee or assessment that becomes due of authority among bankruptcy courts as to the and payable after the order or relief to a mem- dischargeability of postpetition condominium assessments.

* Steve Sowell is an attorney with Shapiro & Alt, the Michigan member of the LOGS Legal Network. The firm represents primarily institutional lenders in the areas of real estate law and bankruptcy, including foreclosures. Mr. Sowell has represented more than 150 condominium associations in his 10 years of practice. Winter, 1995 -- Page 2:36 MICHIGAN REAL PROPERTY REVIEW

Some courts analyzed each case to determine whether ments. Additional and special assessments may be levied and when the co-owner vacated the property, and held to fund budgetary shortfalls, emergencies, and replace- this to be the determining factor in liability for postpetition ments and/or additions to the general or limited common assessments.7 Other courts simply held that all postpetition elements. While the fiscal year of the association presum- assessments are discharged.8 Still others held that, until ably determines whether an additional assessment for the co-owner is divested of title, the co-owner remains budgetary shortfalls occurs during "the period" involved, liable for assessments.9 this is not certain. Also, how does one determine what "the period" is for a special assessment levied in order to Section 309 is an attempt to make uniform the add a swimming pool to the project? Is the period treatment of condominium and cooperative assessments determined by the date of adoption of the assessment by by codifying the occupancy test which some courts had the board or membership, or is it the date the addition or espoused before the Reform Act. Under §523(a)(16) of improvement is actually started or completed? Is it the the Bankruptcy Code, one looks at whether and when due date for the assessment as determined by the board? the co-owner occupied the property (or whether and Obviously, §523(a)(16) raises a number of interesting when the co-owner received rent for the property if it is questions with respect to additional and special assess- a rental unit) to determine when the co-owner’s liabih~y ments. It may be advisable for the Board of Directors to for assessment ends. However, the language of spell out when the special or additional assessment §523(a)(16) is subject to differing interpretations and is becomes due and payable, either in the resolution difficult to reconcile with both the Michigan adopting the additional assessment or in the language Condominium Act and provisions commonly seen in presented to the co-owners for vote on a special Michigan condominium documents. assessment.~2 For example, §523(a)(16) refers to "a fee or assess- Section 523(a)(16) creates evidentiary problems. ment that becomes due and payable after the order Subsection (A) requires the debtor to have physically for relief." [emphasis added] Many older condominium occupied the unit, but does not define physical occupa- documents provide for payment of generaP° assessments tion. In Michigan, with its many snowbirds, a co-owner monthly, although the recent trend has been to make the may actually live in a sun-belt state for several months of general assessment a yearly assessment payable in the year. Will the co-owner’be found to "physically monthly installments, to aid in collections by providing occupy" the unit if he is not in the state for several for acceleration of the remaining balance of the annual months of the year? Is it enough that the co-owner keeps assessment upon default by the co-owner. In the case of furniture in the unit? What effect does the debtor’s a chronically delinquent co-owner, the association residency have on the issue? A prudent association usually pursues collection only once a year, even though attorney will garner as much evidence as possible to installments are payable monthly. However, under establish the debtor’s ties to Michigan in an attempt to §523(a)(16) it remains to be litigated whether such an demonstrate to the court that the debtor "physically annual assessment is due and payable when levied or is occupied" the unit even though the debtor lived due and payable only when each monthly installment somewhere else. Important evidence may include the falls due. If a co-owner files for bankruptcy the day after co-owner’s driver’s license, voter registration, vehicle an annual assessment is levied and the court finds that registration, tax returns, and mailing address. the assessment was due and payable when levied, rather than when each installment falls due, the association Section 523(a)(16) creates other evidentiary prob- may lose an entire year’s worth of assessments. Those lems. For instance, it requires that the debtor receive associations with annual assessments may therefore payments from a tenant for the period in issue. The wish to consider revising their documents to avoid this association may have to engage in discovery with the problem. debtor to determine what, if any, rent the debtor received and for what month the rent was due. The association in order for the assessment to be nondischargeable, also may wish to subpoena the tenant’s records to verify §523(a)(16) mandates that it must be payable for a period the statement of the debtor. What effect does the during which the co-owner either physically occupied the association’s right to demand rent directly from the unit, or rented the unit out and received rent from his tenant for payment of the condominium assessment13 tenant. This language appears to be directed at the have? What about situations where the debtor is in the general assessment; however, most condominium docu- middle of a rent dispute with the tenant and the tenant is ments also provide for additional and special11 assess- escrowing money14 until the dispute is resolved? Is the MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 237

debtor considered to have received the rent if it is in ENDNOTES escrow, or does the debtor’s liability for assessments turn © 1995 by Steve Sowell on the outcome of the rent dispute? 1. Public Law 103-394; 108 Stat. 4106. Note that Section 309 refers to "dwelling unit": "Co-owner" is a term of art defined by the Michigan presumably, this provision does not apply to business Condominium Act (MCLA 8559.101 et seq.) In MCLA condominiums, but what about other forms of condo- 8559.106(1). This article is written from the perspective miniums? The author has represented campground con- of a condominium association; issues will likely be differ- dominiums as well as boat dock condominiums. Will units ent for a cooperative housing association. in any of these non-traditional condominiums be consid- There are three types of bankruptcies that an individual ered dwelling units for purposes of §523(a)(16)? co-owner may file: a straight liquidation (Chapter 7), a "wage-earner’s" reorganization (Chapter 13), and a In one respect, Section 309 of the Reform Act has "business" reorganization (Chapter 11). Although not gone far enough: §523(a)(16) covers the debtor’s individuals may be family farmer debtors (Chapter 12), interest in a dwelling unit that has condominium it is unlikely that farmland would be held as ownership; however, there are a multitude of homeowner condominium property. associations that are allowed by their Declaration of 4. 11 USC 8101 et. seq. RestrictionsIs to collect assessments, but which do not come under the definition of "condominium" or "coop- A bankruptcy case is started by the filing of a petition. 11 erative housing association." On the other hand, the USC 8101(42). The filing date is usually the defining date language is arguably broad enough to allow the collection for determining liability on debts pursuant to 11 USC of fees by a master or umbrella homeowner’s association 8727; obligations are thus referred to has having been incurred "prepetition" or "postpetition." if the condominium unit is a part of the master associa- tion. This leads to the anomaly that homeowner associa- 6. 11 USC 8523(a)(16). tion dues on a single family home may not be collectible, Cohen v North Park Parkside Community Associa- unlike homeowner association dues on a condominium tion, 122 BR 735 (Bankr. S.D. CA 1991); In re Miller, in the same planned unit development. The author would 125 BR 441 (Bankr. W.D. PA 1991); In re Montoya, have preferred that Congress use a term such as "com- 95 BR 511 (Bankr. S.D. OH 1988). munity association" or "common interest ownership 8. In re Turner, 101 BR 751 (Bankr. D. LIT 1989); association" such as is used in the model acts.16 Matter of Behrens, 900 F2d 97 (7th Cir. 1990); The practitioner should realize that §523(a)(16) of Matter of Rosteck, 899 F2d 694 (7th Cir. 1990). the Bankruptcy Code affects only co-owners who file in re Raymond, 129 BR 354 (Bankr. S.D. NY 1991). bankruptcy under Chapter 7; bankruptcies filed under See also Alexandria Knowles West Condominium Chapter 11 and Chapter 13 are governed by different Homes Coundl of Co-owners v Strelsky, 46 BR 178 rules which require a debtor to propose a plan that (Bankr. E.D. VA 1985); Horton v Beaumont Place provides for payment of the current monthly assessments Homeowners Assodation, 87 BR 650 (Bankr. D. CO 17 1987); in re O’Mara, 141 BR 237 (Bankr. M.D. FL as well as cure of the arrears. 1992). While Section 309 of the Bankruptcy Reform Act, 10. "General" assessment is not a term of art under the and its creation of §523(a)(16) is a good start, it may Michigan Condominium Act. The author is referring to ultimately lead to more problems than it has cured. Given assessments that are derived by calculating the needs of the fact that the association is usually arguing with the co- the association for the year and multiplying that by the co- owner/debtor about a relatively small amount of money, owners’ respective percentages of value. it may take quite a while before all of the ins and outs of 11, "Additional" and "Special" assessments are not terms of the new provision are delineated because few associa- art; they are taken from the language of many condo- tions will have either the inclination or the financial minium bylaws which refer to an assessment levied by the resources to litigate the unresolved issues and to make Board of Directors of the condominium association as an law, notwithstanding that the Michigan Condominium additional assessment and an assessment which requires Act allows the Association to recover attorney fees if a vote of the co-owners (and sometimes mortgagees) to 18 be adopted as a special assessment. However, the termi- successful. Perhaps the better approach may be for nology is not uniform among condominium documents condominium attorneys to return to Congress to obtain and has led to endless confusion between board mem- some reform to the Bankruptcy Reform Act of 1994. bers, managing agents, and even judges. Winter, 1995 -- Page 238 MICHIGAN REAL PROPERTY REVIEW

12. This is a good idea in any event, so that prospective sellers Conditions, Easement and Restriction Agreements, and and purchasers of condominium units can allocate pay- no doubt numerous other titles. ment of assessments at closing. Disputes have arisen as to when an assessment has become due under some 16. See e.g., the Uniform Common Interest Ownership Act. purchase agreements, where the parties have to depend 17. 11 USC §1322(bX5) provides that a defau/t on a secured upon boilerplate language intended to cover general debt on which the last payment is due after completion of property assessments. the Chapter 13 plan may be cured under the plan within 13. MCLA §559.211(5). a reasonable time. Most bankruptcy practitioners treat condominium assessments as debts which fall under this 14. MCR 4.201(HX2Xa). provision because the assessments continue to accrue as 15. "A rose by any other name .... " William Shakespeare. long as the debtor owns the unit; presumably, ownership The documents which define a homeowner association will continue after the debtor’s case is concluded. have also been referred to as Declarations of Planned Unit Developments, Declarations of Covenants and 18. MCLA §559.206(b), MICHIGAN REAL PROPERTY REVIEW Winter, 1995 m Page 239

LEGISLATIVE STATUS REPORT

ACTION ON LEGISLATION OVER THE LAST THREE MONTHS

by Gregory L. McClelland and Deborah A. Lee

HB 4004 ~ Amends the state aid to public Governor, filed with Secretary of State, assigned PA libraries act to provide for a cooperative library board 111 with immediate effect. that may sue or be sued, enter into land contracts and give purchase money mortgages to acquire sites -- HB 4051 -- Amends the act concerned with the introduced by Rep. Anthony on 1/11/95 and referred designation of natural beauty roads to require boards to to Committee on Local Government; 5/10/95, notify township clerks of proposed projects along reported with recommendation with substitute, referred natural beauty roads and permit townships to hold to second reading; 5/17/95, substitute adopted, placed public hearings on proposed activity, if desired -- intro- on third reading; 5/18/95, amended, passed, given duced by Rep. Crissman on 1/11/95 and referred to immediate effect; 5/23/95, referred to Committee on Committee on Transportation; 10/19/95, reported Local Urban and State Affairs; 11/7/95, reported with recommendation with substitute, referred to favorably without amendment; 11/8/95, reported by second reading; 10/25/95, substitute adopted, Committee of the Whole favorably without amend- placed on third reading; 10/26/95, passed; ment, placed on order of third reading; 11/9/95, 10/31/95, referred to Committee on Transportation passed; given immediate effect, substitute adopted, and Tourism. passed; 11/29/95, Senate substitute concurred in, HB 4211 -- (Same as SB 207) Amends the dam roll call, given immediate effect in House, bill safety act to, until January 1, 1998, exempt certain ordered enrolled. dams in need of repair or improvement from the permit HB 4008 m Amends the act which provides civil requirements of the act -- introduced by Rep. Llewellyn on 1/30/95 and referred to Committee on Conserva- remedies for littering, to include the seizure and tion and Great Lakes; 5/2/95, reported with recom- impoundment of a vehicle operated in the commission mendation with substitute, referred to second reading; of a violation of the act w introduced by Rep. Anthony 5/10/95, substitute adopted, placed on third reading; on 1/11/95 and referred to Committee on Conserva- 5/11/95, passed, given immediate effect; 5/16/95, tion, Environment and Great Lakes; 3/14/95, reported referred to Committee on Natural Resources and with recommendation with substitute, referred to sec- Environmental Affairs; 5/25/95, reported favorably ond reading; 3/21/95, substitute amended and adopted, with substitute; 5/30/95, reported by Committee of placed on third reading; 3/22/95, passed, given the Whole favorably with substitute, substitute immediate effect; 3/23/95, referred to Committee on concurred in, placed on order of third reading with Natural Resources and Environmental Affairs; substitute; 5/31/95, passed, given immediate effect; 5/25/95, reported favorably with substitute; 5/30/95, 6/6/95, Senate substitute concurred in, roll call, given reported by Committee of the Whole favorably with immediate effect in House, bill ordered enrolled; substitute, concurred in, placed on order of third 6/13/95, presented to the Governor; 9/12/95, reading with substitute; 5/31/95, passed, given imme- approved by the Governor, filed with Secretary of diate effect; 6/6/95, Senate substitute concurred in as State, assigned PA 100 with immediate effect. amended, roll call, given immediate effect in House; 6/7/95, House amendment(s) to Senate substitute HB 4325 -- Amends the farm land and open concurred in, roll call, bill ordered enrolled; 6/15/95, space preservation act to provide for the division of land presented to the Governor; 9/12/95, approved by the described in a development rights agreement, provide Winter, 1995 -- Page 240 MICHIGAN REAL PROPERTY REVIEW

for the renewal of development rights agreements and Affairs; 10/26/95, reported favorably without for the repayment and reduction of liens, among other amendment; 10/31/95, reported by Committee of the things -- introduced by Rep. McManus on 2/7/95 and whole favorably without amendment, placed on order referred to Committee on Agriculture and Forestry; of third reading; 11/2/95, amended, passed; given 11/8/95, reported with recommendation with substi- immediate effect; 11/9/95, Senate amendment(s) tute, referred to second reading; 11/30/95, substitute concurred in, given immediate effect in House, bill amended and adopted, placed on third reading, placed ordered enrolled; 11/28/95, presented to the on immediate passage, passed, given immediate effect. Governor; 11/29/95, approved by the Governor, filed with Secretary of State, assigned PA 211 with liB 4400 ~ Amends the social welfare act to provide that in cases of rent vendoring arrangements, immediate effect. if a judgment is entered against a recipient of ADC or liB 4451 m Amends the charter township act to state family assistance for damages arising from the exempt bonds, assessments and contract obligations for recipient’s destruction of the rented premises, that the the improvement or replacement of a combined sewer Department deduct 10% of each monthly grant to the overflow abatement facility from a township’s debt limit recipient and convey that amount to the landlord ’-- -- introduced by Rep. Hammerstrom on 2/21/95 and introduced by Rep. Horton on 2/14/95 and referred referred to Committee on Local Government; 3/8/95, to Committee on Human Services; 5/2/95, reported reported with recommendation, referred to second with recommendation with substitute, referred to reading; 3/14/95, placed on third reading; 3/15/95, second reading; 5/9/95, substitute adopted, placed passed, given immediate effect; 3/16/95, referred to on third reading; 5/10/95, passed, given immediate Committee on Natural Resource and Environmental effect, Rep. M. Hanley removed as sponsor; 5/16/95, Affairs; 10/26/95, reported favorably without referred to Committee on Families, Mental Health and amendment; 10/31/95, reported by Committee of the Human Services; 11/30/95, reported favorably whole favorably without amendment, placed on order without’ amendment, referred to general orders, of third reading; 11/2/95, amended, passed; given reported by Committee of the Whole favorably immediate effect; 11/9/95, Senate amendment(s) without amendment, placed on order of third reading. concurred in, given immediate effect in House, bill lib 4433 w Creates the property rights ordered enrolled; 11/28/95, presented to the preservation act which provides a process for Governor; 11/29/95, approved by the Governor, filed evaluating, and creates causes of action for, govern- with Secretary of State, assigned PA 212 with mental actions that may result in constitutional immediate effect. takings of private property -- introduced by Rep. lib 4493 m Amends the act concerned with the Sikkema on 2/16/95 and referred to Committee on making of certain public improvements by townships Conservation, Environment and Great Lakes; and paying for those improvements to include as an 10/31/95, reported with recommendation with improvement under the act the construction, substitute, referred to second reading; 11/2/95, improvement and maintenance of bodies of water -- substitute adopted, placed on third reading; 11/9/95, introduced by Rep. Wetters on 3/1/95 and referred passed, given immediate effect; 11/28/95, referred to Committee on Natural Resources and Environ- to Committee on Conservation, Environment and Great Lakes; 5/16/95, reported with recommendation mental Affairs. with substitute, referred to second reading; lib 4450 m Amends the home rule village act to 5/24/95, substitute amended and adopted, placed permit villages to issue special assessment bonds on third reading; 5/25/95, passed, given immediate for certain local improvements in certain effect; 5/30/95, referred to Committee on Local, circumstances without having to submit the issue Urban and State Affairs; 6/16/95, motion to discharge to approval by election -- introduced by Rep. committee, motion to discharge committee approved, Hammerstrom on 2/21/95 and referred to referred to general orders, placed on immediate Committee on Local Government; 3/8/95, reported passage, placed on order of third reading, passed, given with recommendation, referred to second reading; immediate effect, bill ordered enrolled; 9/12/95, 3/14/95, placed on third reading; 3/15/95, passed, presented to the Governor, approved by the Governor, given immediate effect; 3/16/95, referred to filed with the Secretary of State, assigned PA 139 with Committee on Natural Resources and Environmental immediate effect. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 241

HB 4508 -- Amends the revised judiciary act of recommendation with substitute, referred to second 1961 to provide general procedural and other amend- reading; 9/12/95, re-referred to Committee on ments with respect to causes of action based on tort or Commerce. another legal theory seeking damages for property damage, among other things -- introduced by Rep. Nye HB 4616 -- (Same as SB 435) Amends the act on 3/2/95 and referred to Committee on Judiciary and concerned with the organization and operation of credit Civil Rights; 4/26/95, reported with recommendation unions to incorporate certain changes appearing in the with substitute, referred to second reading; 4/27/95, credit reform act (HB 4614) including permitting credit substitute adopted, placed on third reading, placed on unions to charge rates of interest no greater than rates immediate passage, passed; 5/2/95, referred to of interest permitted by the credit reform act (HB 4614) Committee on Judiciary; 9/27/95, motion to discharge -- introduced by Rep. Kaza on 3/16/95 and referred committee, motion to discharge committee approved, to Committee on Commerce; ($B 435) -- introduced referred to general orders, reported by Committee of by Sen. Rogers on 3/28/95 and referred to Committee the Whole favorably without amendment, placed on on Financial Services; 4/26/95, reported with order of third reading; 9/28/95, amendment(s) recommendation with substitute, referred to second defeated, passed, bill ordered enrolled; 10/3/95, reading; 6/7/95, substitute adopted, placed on third presented to the Governor, approved by the Governor, reading; 6/15/95, passed; 9/12/95, referred to filed with Secretary of State, of signed PA 161. Committee on Financial Services; 9/19/95, reported favorably without amendment, referred to general HB 4614 -- (Same as SB 438) Creates the orders, reported by Committee of the Whole favorably credit reform act which, among other things, permits a without amendment, placed on order of third reading; regulated lender to charge, collect and receive up to 9/20/95, passed, bill ordered enrolled; 9/26/95, 25% interest per annum and finance charges for an presented to the Governor; 10/10/95, approved by extension of credit, and require borrowers to pay the Governor, filed with Secretary of State, assigned various fees for renewing or for the extension of credit PA 163. -- introduced by Rep. Randall on 3/16/95 and referred to Committee on Commerce. (SB 438) m HB 4617 -- (Same as SB 431) Amends the introduced by Sen. Schuette on 3/28/95 and referred home improvement finance act to permit the charging to Committee on Financial Services; 4/26/95, of a finance charge not to exceed the rate of reported with recommendation with substitute, referred interest permitted by the credit reform act (HB 4614), to second reading; 6/1/95, substitute adopted, amended; in addition to other revisions-- introduced by Rep. Jaye 6/7/95, substitute amended and adopted, placed on on 3/16/95 and referred to Committee on Commerce; third reading, placed on immediate passage, defeated; ($B 43 I) ~ introduced by Sen. Shugars on 3/28/95 6/15/95, vote on passage reconsidered, amended, and referred to Committee on Financial Services; passed; 9/12/95, referred to Committee on Financial 4/26/95, reported with recommendation with Services; 9/19/95, reported favorably without substitute, referred to second reading; 6/15/95, amendment, referred to general orders, reported by substitute amended and adopted, placed on third Committee of the Whole favorably without amend- reading, placed on immediate passage; 9/12/95, ment, placed on order of third reading; 9/20/95, re-referred to Committee on Commerce. amendment(s) defeated, passed, bill ordered enrolled; 9/26/95, presented to the Governor; 10/10/95, HB 4618 ~ (Same as $B 436) Amends the act concerned with the definition of and regulation of approved by the Governor, filed with Secretary of secondary mortgage loans and other unsecured loans to State, assigned PA 162. incorporate changes brought about by the credit HB 4615 m (Same as SB 434) Amends the reform act (HB 4614) including the provisions act defining and regulating certain credit card concerned with the interest rate permitted under the transactions to incorporate certain changes appearing credit reform act -- introduced by Rep. Middaugh on in the credit reform act (HB 4614) including permitting 3/16/95 and referred to Committee on Commerce; the charging of fees and rate of interest -- introduced .($B 436) f introduced by Sen. Rogers on 3/28/95 by Rep. Gernaat on 3/16/95 and referred to and referred to Committee on Financial Services; Committee on Commerce; ($B 434) m introduced by 4/26/95, reported with recommendation with Sen. Berryman on 3/28/95 and referred to Committee substitute, referred to second reading; 6/7/95, on Financial Services; 4/26/95, reported with substitute adopted, placed on third reading; 6/15/95, Winter, 1995 -- Page 242 MICHIGAN REAL PROPERTY REVIEW

passed; 9/12/95, referred to Committee on Financial passage, amended, passed; 9/12/95, referred to Services; 9/19/95, reported favorably without Committee on Financial Services; 9/19/95, reported amendment, referred to general orders, reported favorably without amendment, referred to general by Committee of the Whole favorably without orders, reported by Committee of the Whole favorably amendment, placed on order of third reading; without amendment, placed on order of third 9/20/95, passed, bill ordered enrolled; 9/26/95, pre- reading; 9/20/95, passed, bill ordered enrolled; sented to the Governor; 10/10/95, approved 9/26/95, presented to the Governor; 10/10/95, by the Governor, filed with Secretary of State, approved by the Governor, filed with Secretary of assigned PA 164. State, assigned PA 167. HB 4619 -- (Same as SB 441) Amends the HB 4625 ~ (Same as SB 433) Amends the regulatory loan act of 1963 to incorporate certain savings and loan act of 1980 to permit savings and loan provisions of the credit reform act (HB 4614) including associations to charge an interest rate, other charge those provisions concerning permissible interest rates or rate in an amount not greater than that permitted by -- introduced by Rep. Alley on 3/16/95 and referred the credit reform act (HB 4614) -- introduced by Rep. ~ to Committee on Commerce; (SB 441) --"introduced Randall on 3/16/95 and referred to Committee on by Sen. Bouchard on 3/28/95 and referred to Commerce; (SB 433) ~ introduced by Sen. Berryman Committee on Financial Services; 4/26/95, on 3/28/95 and referred to Committee on Financial reported with recommendation, referred to second Services; 4/26/95, reported with recommendation with reading; 6/7/95, placed on third reading; 6/15/95, substitute, referred to second reading; 9/12/95, passed; 9/12/95, referred to Committee on Financial re-referred to Committee on Commerce. Services; 9/19/95, reported favorably without HB 4707 ~ Amends the inland lakes and streams amendment, referred to general orders, reported by act of 1972 to make certain lake drawdowns for weed Committee of the Whole favorably without control purposes a "minor project" for the purposes amendment, placed on order of third reading; of assessing a fee -- introduced by Rep. Alley on 9/20/95, passed, bill ordered enrolled; 10/10/95, 4/25/95 and referred to Committee on Conservation, approved by the Governor, filed with Secretary of Environment and Great Lakes; 9/20/95, reported with State, assigned PA 165. recommendation with substitute, referred to second reading; 9/26/95, substitute amended and HB 4620 -- (Same as SB 440) Amends the adopted, placed on third reading; 9/28/95, passed; banking code of 1969 to incorporate certain changes given immediate effect; 10/3/95, referred to brought about by the credit reform act (HB 4614) Committee on Natural Resources and Environmental including those provisions concerned with the rate of Affairs; 11/30/95, reported favorably with substitute. interest that may be charged -- introduced by Rep. Profit on 3/16/95 and referred to Committee on HB 4709 N Amends the act concerned with the Commerce; (SB 440) m introduced by Sen. Bouchard protection and conservation of natural resources to on 3/28/95 and referred to Committee on Financial require the director of the department of natural Services; 4/26/95, reported with recommendation resources and the director of environmental quality with substitute, referred to second reading; 6/7/95, to report annually before a joint meeting of the substitute adopted; 9/I 2/95, re-referred to Committee committees of the Senate and House on certain issues on Commerce. pertaining to natural resources and the environment -- introduced by Rep. Alley on 4/25/95 and referred to HB 4622 m (Same as SB 439) Amends the Committee on Conservation, Environment and Great retail installment sales act to incorporate provisions of Lakes; 10/3/95, reported with recommendation with the truth in lending act and the consumer credit protec- substitute, referred to second reading; 10/11/95, tion act in addition to the credit reform act (HB 4614) substitute adopted, placed on third reading; m introduced by Rep. Kukuk on 3/16/95 and referred 10/12/95, passed; given immediate effect; 10/17/95, to Committee on Commerce; (SB 439) ~ introduced referred to Committee on Natural Resources and by Sen. Bouchard on 3/28/95 and referred to Environmental Affairs; 11/30/95, reported favorably Committee on Financial Services; 4/26/95, reported without amendment. with recommendation with substitute, referred to second reading; 6/16/95, substitute amended and HB 4712 m Amends the general property tax act adopted, placed on third reading, placed on immediate to require the state treasury pay $2.00 to each local tax MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 243

collecting unit for each homestead exemption defeated, motion to reconsider defeated, passed, imme- affidavit the unit forwarded to the department in the diate effect defeated; 6/15/95, Senate amendment(s) immediately preceding year -- introduced by Rep. non-concurred in, House conferees named Reps. W. Voorhees on 4/25/95 and referred to Committee on DeLange, J. Llewellyn, R. Murphy; 6/16/95, Senate Tax Policy; 4/27/95, reported with recommendation named conferees, Sens. M. Rogers, L. Stille, J. Cherry, with amendment(s), referred to second reading; Jr., referred to Conference Committee 6/16/95; 9/12/95, re-referred to Committee on Tax Policy. 9/27/95, conference report adopted by House; 10/3/95, Senate adopted conference report, lib 4713 --Amends the act concerned with the immediate effect defeated, bill ordered enrolled; prompt payment by principal executive departments 10/10/95, prese.nted to the Governor; 10/24/95, to private enterprises for goods and services to require approved by the Governor, filed with Secretary of the state transportation department take all steps State, assigned PA 181. necessary to assure payment of a construction project be mailed within 45 days after the date of completion HB 4800 ~ Amends the act creating the unless otherwise agreed in writing and provide Michigan State Police to permit the director to appoint penalties for late payment, among other things -- a law enforcement officer of a Michigan Indian Tribal introduced by Rep. Voorhees on 4/25/95 and Police Force to act as a police officer for a Michigan referred to Committee on Commerce; 9/28/95, Indian tribe upon Indian country of the tribe -- reported with recommendation with substitute, introduced by Rep. McBryde on 5/10/95 and referred referred to second reading; 10/5/95, substitute amended to Committee on Judiciary and civil rights; 9/27/95, and adopted, placed on third reading; 10/11/95, reported with recommendation with amendment(s), substitute adopted; 10/12/95, amended; 10/18/95, referred to second reading; 10/3/95, amended, amended, passed; 10/24/95, referred to Committee placed on third reading; 10/5/95, passed; given on Local, Urban and State affairs. immediate effect; 10/10/95, referred to Committee on Government Operations; 1 I/2/95, reported favorably liB 4744 -- Amends the act concerned with without amendment; 1 I/7/95, reported by Committee governmental immunity to limit the duty imposed upon of the Whole favorably without amendment, placed on those governmental agencies having jurisdiction over order of third reading; 1 I/9/95, passed, given imme- highways from certain acts relating to snowmobiles and diate effect, bill ordered enrolled; 11/28/95, presented off-road recreational vehicles -- introduced by Rep. to the Governor; 11/29/95, approved by the McNutt on 4/25/95 and referred to Committee on Governor, filed with Secretary of State, assigned PA Judiciary and Civil Rights; 10/31/95, reported 203 with immediate effect. with recommendation for referral to Committee on Conservation, Environment and Great Lakes; lib 4818 J Creates a bill to authorize local units 11/7/95, reported with recommendation with of government, unless otherwise prohibited by law, to substitute, referred to second reading; 11/30/95, pass resolutions permitting them to accept financial substitute adopted, placed on third reading, placed on transaction device payments (i.e., electronic funds immediate passage, passed, given immediate effect. transfer card, credit card or debit card) for the payment of a tax, assessment or fee -- introduced by Rep. HB 4746 J Amends the Michigan Employment Brewer on 5/11/95 and referred to Committee on Security Act to exclude from the definition of seasonal Local Government; 10/25/95, reported with employer, employers in the construction industry -- recommendation with substitute, referred to second introduced by Rep. Goschka on 4/25/95 and referred reading; 11/2/95, substitute amended and adopted, to Committee on Human Resources and Labor; placed on third reading, placed on immediate passage, 5/2/95, reported with recommendation, referred to passed, given immediate effect; 11/7/95, referred to second reading; 5/16/95, placed on third reading, Committee on Local, Urban and State Affairs. placed on immediate passage, passed; 5/18/95, referred to Committee on Human Resources, Labor I~B 4843 ~ Amends the general property tax act and Veterans Affairs; 5/30/95, reported favorably to establish the date a tax lien arises as being December without amendment; 6/13/95, reported by 1 or the tax date designated by-the county, township, Committee of the Whole favorably with amendment(s), city or village due to certain events having occurred, amendment(s) concurred in, placed on order of third such as the filing of a bankruptcy petition -- introduced reading with amendment(s); 6/14/95, amendment(s) by Rep. Bullard, Jr. on 5/16/95 and referred to Winter, 1995 -- Page 244 MICHIGAN REAL PROPERTY REVIEW

Committee on Tax Policy; 5/18/95, reported with Conservation, Environment and Great Lakes; recommendation with substitute, referred to second 9/20/95, reported with recommendation with reading; 5/23/95, substitute amended and adopted, substitute, referred to second reading; 9/26/95, placed on third reading, passed, given immediate substitute amended and adopted, placed on third effect; 5/24/95, referred to Committee on Finance; reading; 9/28/95, passed; given immediate effect; 6/14/95, motion to discharge committee, motion to 10/3/95, referred to Committee on Natural discharge committee approved, referred to general Resources and Environmental Affairs; 11/30/95, orders; 6/15/95, reported by Committee of the Whole reported favorably with substitute. favorably without amendment, placed on order of third reading, placed on immediate passage, passed, given HB 4931 -- Amends the single business tax act to permit, for tax years beginning after December 31, immediate effect, bill ordered enrolled; 9/12/95, presented to the Governor, approved by the Governor, 1992 and before January 1, 1996, an affiliated filed with Secretary of State, assigned PA 143 w~th group of corporations under certain circumstances, to allocate certain amounts paid and used, to determine immediate effect. the credit under the Act for each tax year among the liB 4854 -- Amends the act concerned with ’the members of the affiliated group m introduced by Rep. establishment of plant rehabilitation and industrial de-Bullard, Jr. on 6/6/95 and referred to Committee on velopment districts to amend those sections "Fax Policy; 9/12/95, public hearing scheduled concerned with the allocation of industrial facilities’7/13/95; 10/26/95, reported with recommendation taxes levied before 1994 and after 1993 -- introduced with substitute, referred to second reading; 11/1/95, by Rep. Bullard Jr. on 5/17/95, referred to substitute adopted, placed on third reading; 11/2/95, Committee on Tax Policy; 5/18/95, reported with passed, vote reconsidered, passed; given immediate recommendation, referred to second reading; effect; 11/?/95, referred to Committee on Finance; 5/23/95, placed on third reading; 5/24/95, passed, 11/29/95, reported favorably without amendment. given immediate effect; 5/25/95, referred to liB 4934 -- Amends the single business tax act Committee on Economic Development, International to provide for an increase in the maximum small Trade and Regulatory Affairs; 6/14/95, motion to business credit income limit -- introduced by Rep. discharge committee, motion to discharge committee approved, referred to general orders; 6/15/95, Bullard, Jr. on 6/6/95 and referred to Committee on reported by Committee of the Whole favorably Tax Policy; 9/12/95, public hearings scheduled without amendment, placed on order of third reading, 7/13/95. placed on immediate passage, passed, given HB 4940 ~ Amends the general property tax act immediate effect, bill ordered enrolled; 9/12/95, to provide that if a treasurer of a local tax collecting unit presented to the Governor, approved by the Governor, or the state treasurer must sue to collect property tax, filed with Secretary of State, assigned PA 132 with the owner of the property is to be assessed, and is immediate effect. liable for, any reasonable attorneys or collection fees incurred and that amount shall be added to the tax HB 4884 ~ Amends the natural resources and assessment due -- introduced by Rep. Profit on environmental protection act to create an adopt-a-river 6/7/95 and referred to Committee on Tax Policy; program -- introduced by Rep. Middaugh on 10/17/95, reported with recommendation, referred to 5/23/95 and referred to Committee on Conservation, second reading; 10/19/95, placed on third Environment and Great Lakes; 9/20/95, reported with reading; 10/24/95, passed, given immediate effect; recommendation with substitute, referred to 10/25/95, referred to Committee on Finance. second reading; 9/26/95, substitute amended and adopted, placed on third reading; 9/28/95, passed; HB 4943 -- Amends the single business tax act given immediate effect; 10/3/95, referred to to revise those provisions concerned with capital Committee on Natural Resources and Environmental acquisition deductions -- introduced by Rep. Perricone Affairs; 11/30/95, reported favorably with substitute. on 6/8/95 and referred to Committee on Tax Policy; 9/12/95, public hearing scheduled 6/29/95; liB 4885 -- Amends the natural resources and 9/13/95, public hearing scheduled 9/7/95. environmental protection act to provide for an adopt-a-shoreline program -- introduced by Rep. liB 4963 ~ Amends the natural resources and Middaugh on 5/23/95 and referred to Committee on environmental protection act to revise the penalty for MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 245

failure to procure any permit required under this part collection agencies, including provisions regarding de- of the act to include imprisonment for not more than pository accounts, the keeping of" books and 90 days or a fine of not more than $1,000 or less than records and permitting a licensee to act as an agent $100, or both -- introduced by Rep. Hill on 6/14/95 of the creditor in dealing with attorneys -- introduced and referred to Committee on Judiciary and Civil Rights; by Rep. Profit on 6/16/95 and referred to Committee 9/27/95, reported with recommendation, referred on Commerce; 10/18/95, reported with recommen- to second reading; 10/3/95, placed on third reading; dation with substitute, referred to second reading; 10/5/95, passed, given immediate effect; 10/10/95, 10/25/95, substitute amended and adopted, placed on referred to Committee on Natural Resources and third reading; 10/26/95, passed; given immediate Environmental Affairs. effect; 10/31/95, referred to Committee on Financial Services. HB 4966 m Amends the natural resources and environmental protection act to permit wetlands to be HB 4987 D Amends the state scho~ol aid act of 6sed for the preparation, farming, production and 1979 to redefine the term pupil as a person in harvesting of cranberries-- introduced by Rep. Gnodtke membership in a public school (striking the requirement that a district must have the approval of the on 6/15/95 and referred to Committee on Conserva- pupil’s resident district to count the pupil in tion, Environment and Great Lakes; 10/17/95, membership) and strike the entire definition of reported with recommendation, referred to second "tuition pupil" (which was generally defined as a pupil reading. attending school in a district other than the pupil’s resident district) m introduced by Rep. Dalman on HB 4971 D Amends the act concerned with the election and duties of township officers to provide that 6/16/95 and referred to Committee on Education; 10/10/95, reported with recommendation with a township with a state equalized evaluation of $50 substitute, referred to second reading. million or more must publish township board meeting minutes within 21 days after a meeting of the board m HB 4994 ~ Amends the income tax act of 1967 introduced by Rep. Llewellyn on 6/16/95 and referred to extend through 1995 the credit for heating fuel cost to Committee on Local Government; 10/25/95, for a claimant’s homestead against the state income tax reported with recommendation, referred to second -- introduced by Rep. Hill on 6/16/95 and referred to reading; 11/2/95, placed on third reading, placed on Committee on Tax Policy; 11/9/95, reported with immediate passage, passed, given immediate effect; recommendation with substitute, referred to second 11/7/95, referred to Committee on Government reading; 11/30/95, substitute amended and adopted, Operations. placed on third reading, placed on immediate passage, amended, passed; given immediate effect. HB 4973 -- Amends the act concerned with local government housing facilities to amend those sections HB 4996 -- Amends the township rural zoning act concerned with the appointment and removal of to permit the governing boards of charter townships to members of the governing bodies of the incorporating adopt ordinances regulating the hours of operation of unit, permit the commissions to solicit, accept and enter oil, gas, brine or any other substance or material that into agreements relating to grants from any source in may be transported or removed from’ the site of an oil order to carry out federal or state programs, provide or gas well, the access routes to and from oil or gas that mortgages and other agreements be wells, the appearance of the site of an oil or gas well, executed in the name of the commission or among other things -- introduced by Rep. Law on incorporating unit, provide for the transfer of property, 9/12/95 and referred to Committee on Local among other things ~ introduced by Rep. Bankes on Government. 6/16/95 and referred to Committee on Urban Policy; HB 5002 ~ Amends the school code of 1976 to 9/21/95, reported with recommendation with allow pupil attendance in a school of choice within an amendment(s), referred to second reading; 10/24/95, intermediate school district -- introduced by Rep. Nye amended, placed on third reading; 10/31/95, on 9/12/95 and referred to Committee on Education. amended, passed; given immediate effect; 11/1/95, referred to Committee on Finance. HB -5003 -- Amends the state school aid act of 1979 to redefine the terms "pupil" and "tuition HB 4983 m Amends the occupational code to pupil" to include pupils enrolled under Section 1147A provide amendments to those sections concerned with of the school code of 1976 and another district Winter, 1995 -- Page 246 MICHIGAN REAL PROPERTY REVIEW

within the same intermediate district as a pupil’s to provide that county boards of Commissioners may district of residence -- introduced by Rep. Nye on require in their bylaws that the vote of two-thirds of the 9/12/95 and referred to Committee on Education. members present are required on final passage or adoption of a non agenda item -- introduced by Rep. HB 5013 -- Amends the natural resources and Perricone on 9/13/95 and referred to Committee on environmental protection act to require those who Local Government. purchase a game license to pay an additional $5.00 fee which shall be placed in the game damage reimburse- HB 5047 -- Amends the general sales tax act to ment fund and used to pay for the fencing of private exempt from sales tax property affixed to and made a property which has or may suffer damage or be structural part of a nonprofit multiple unit dwelling intruded upon by game animals and pay for verified owned by certain municipalities and permit those mu- farm crop damages caused by game animals -- nicipalities to claim a refund of tax levied and paid under introduced by Rep. Llewellyn 9/12/95 and referred the act in tax years ending after December 31, 1990 to Committee on Agriculture and Forestry. --introduced by Rep. McNutt on 9/14/95 and referred to Committee on Tax ,Policy. liB 5019 -- Creates an act authorizing and regulating credit card transactions by local units of HB 5048 m Amends the use tax act to exempt government, including the use of credit cards by from use tax certain multiple unit dwellings owned by officers and employees of local units and the certain municipalities and permit a refund of tax levied acceptance of credit card payments by local units -- and paid in tax years ending after December 31, 1990 introduced by Rep. Brackenridge on 9/12/95 and on property affixed to and made a structural part of that referred to Committee on Local Government; nonprofit housing -- introduced by Rep. McNutt on 9/21/95, reported with recommendation with 9/14/95 and referred to Committee on Tax Policy. substitute, referred to second reading; 10/5/95, substitute defeated, substitute adopted, placed on HB 5050 -- Amends the natural resources and third reading; 10/10/95, passed; 10/11/95, referred environmental protection act to include within the to Committee on Local, Urban and State Affairs. definition of "peace officer" an officer of the United States coast guard or United States coast guard liB 5031 -- Amends the act concerned with the reserve authorized under federal law to make arrests -- regulation and control of public utilities to place introduced by Rep. Middaugh on 9/19/95 and governmental units under the jurisdiction of the referred to Committee on Conversation, Environment commission with respect to those governmental units and Great Lakes. discontinuing retail water service for non payment of a bill, under certain circumstances -- introduced by Rep. HB 5052 ~ Amends the bill concerned with the Ciaramitaro 9/12/95 and referred to Committee on powers and duties of townships and township officers Public Utilities. to increase the state equalized valuation threshold requirement for publication of township board liB 5036 m Amends the revised judicature act of meetings from $25 million to $100 million -- 1961 to repeal section 2534 (MCLA600.2534) which introduced by Rep. Rhead on 9/19/95 and referred to regulates the rates that can be charged for publishing Committee on Local Government. legal notices, summons, advertisement, and other matters arising out of a judicature proceeding, in a newspaper HB 5053 ~ Amends the natural resources and -- introduced by Rep. Nye on 9/13/95 and referred to environmental protection act to provide that a high-risk Committee on Judiciay and Civil Rights. erosion area designation shall be removed or the projected recession distance reduced for an individual HB 5038 -- Amends the act concerned with the parcel of real property when the parcel is eligible for levying of a severance tax on oil and gas producers to and has received beach nourishment material under a provide adjustments for the tax charged on oil and gas federal erosion control project or a licensed produced from marginal wells, among other things -- professional engineer certifies that a seawall or other introduced by Rep. McBryde on 9/13/95 and referred engineered erosion control measure is limiting the to Committee on Tax Policy. recession to an average annual rate of less than one foot per year -- introduced by Rep. Rhead on HB 5041 -- Amends the act concerned with 9/19/95 and referred to Committee on Conservation, powers and duties of county boards of commissioners Environment and Great Lakes. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 247

HB 5055 u Amends the hunting and fishing formula distribution, eliminate the tax burden formula licensing act to provide that the department may distribution and delete certain requirements regarding a establish a non-refundable application fee for each property tax levy being at least one mil, among other person who applies for a bear hunting license -- things -- introduced by Rep. Bullard, Jr. on 9/19/95 introduced by Rep. Rhead on 9/19/95 and referred to and referred to Committee on Appropriations. Committee on Conservation, Environment and Great Lakes; 10/17/95, reported with recommenda- HB 5071 m Amends the act concerned with the tion with substitute, referred to second reading; establishment of a downtown development authority to 10/19/95, substitute adopted, placed on third expand the definition of "eligible obligation" to include reading; 10/24/95, passed; given immediate effect; an obligation issued or incurred by an authority or 10/25/95, referred to committee on Natural municipality on behalf of an authority, to refund a bond Resource and Environmental Affairs; 11/30/95, or note that was issued or incurred under the act before reported favorably without amendment. 8/19/93 -- introduced by Rep. Anthony on 9/19/95 and referred to Committee on Local Government. HB 5056 -- Amends the municipal finance act to permit an authorized distressed urban area, unless HB 5072 ~ Amends the tax increment finance prohibited by laws or charter, to issue bonds authority act to expand the definition of "eligible denominated in a foreign currency and provide obligation" to also include an obligation issued or procedural guidelines with respect to bonds issued in a incurred by an authority, or a municipality on behalf of foreign currency -- introduced by Rep. Kaza on an authority to refund a bond or note that was 9/19/95 and referred to Committee on Urban issued or incurred under the act before 8/19/93 -- Policy; 10/18/95, reported with recommendation, introduced by Rep. Pitoniak on 9/19/95 and referred referred to second reading; 10/24/95, amended, to Committee on Local Government. placed on third reading; 10/25/95, passed, given HB 5073 m Amends the local development immediate effect; 10/26/95, referred to Committee on financing act to expand the definition of "eligible Financi:al Services. obligation" to also include an obligation issued or HB 5059 -- Amends the general property tax act incurred by an authority, or by a municipality on behalf to apply the judgment interest rate to interest due on of an authority, to refund a bond or a note that was delinquent tax payments-- introduced by Rep. Voorhees issued or incurred under the act before 8/19/93 -- on 9/19/95 and referred to Committee on Tax Policy. introduced by Rep. Agee on 9/19/95 and referred to Committee on Local Government. HB 5061 ~ Amends the act concerned with the assessment of property operated or conducted by HB 5088 -- Amends the act concerned with the telegraph and telephone companies to provide that powers and duties of county boards of commissioners taxes collected under the act on the property of to permit county boards of commissioners to enter into telephone and telegraph companies shall be returned to an employment contract with an appointed county the local tax collecting unit in which the property is manager or other appointed chief administrative located and distributed in the same manner as taxes officer or county controller and provide certain collected under the general property tax act -- requirements with respect to the terms of the introduced by Rep. Voorhees on 9/19/95 and employment contract -- introduced by Rep. Green on referred to Committee on Tax Policy. 9/20/95 and referred to Committee on Local Government; 10/25/95, reported with recommenda- HB 5062 ~ Amends the act concerned with the tion with substitute, referred to second reading; powers and duties of county boards of commissioners 1 I/2/95, substitute adopted, placed on third reading, to provide that county boards of commissioners may placed on immediate passage, passed; given immediate require in their bylaws that a vote of 2/3 of the members effect; 11/7/95, referred to Committee on present is required for final passage or adoption of a Government Operations. non-agenda item -- introduced by Rep. LaForge on 9/19/95 and referred to Committee on Local HB 5092 -- Amends the general property tax act Govemment. to provide that local tax collecting units may exempt in whole or in part any additions to environmentally con- HB 5065 ~ Amends the state revenue sharing act taminated property from the collection of taxes under of 1971 to phase in a conversion to a per capita the act if there is no known responsible party Winter, 1995 -- Page 248 MICHIGAN REAL PROPERTY REVIEW

or solvent responsible party and provide procedural HB 5138 -- Amends the natural resources and guidelines with respect to such exemptions -- environmental protection act to provide liability introduced by Rep. Dolan on 9/20/95 and referred to reform with respect to underground storage tanks u Committee on !Urban Policy. introduced by Rep. Middaugh on 9/26/95 and referred to Committee on Conservation, Environment HB 5124 --Amends the tax tribunal act to revise and Great Lakes. the calculation of interest so that after December 31, 1995 it a/:crues at an interest rate set each year based liB 5149 -- Amends the natural resources and on the average auction rate of 91-day discount treasury environmental protection act to provide that an owner bills in the immediately preceding state fiscal year, plus of a snowmobile who states that the snowmobile will not 1% and provide certain land owners with the option of be operated on the statewide recreational and snowmo- proceeding before the residential and small claims bile trail system but will only be operated for access to division of the tribunal -- introduced by Rep. Gemaat the frozen surface of public waters for the purpose of on 9/26/95 and referred to Committee on Tax ice fishing is exempt from the requirements of Policy; 10/17/95, reported with recommendation with purchasing a snowmobile trail permit sticker under this substitute, referred to second reading; 10/19/95, section -- introduced by Rep. Gagliardi on 9/26/95 substitute adopted, placed on third reading; 10/24/95, and referred to Committee on Conservation, passed, given immediate effect; 10/25/95, referred to Environment and Great Lakes; 10/17/95, reported Committee on Finance; 11/8/95, reported favorably with recommendation with substitute, referred to without amendment; 11/28/95, reported by second reading; 10/24/95, substitute amended and Committee of the Whole favorably without amend- adopted, placed on third reading; 10/25/95, merit, placed on order of third reading; 11/29/95, passed, given immediate effect; 10/26/95, referred passed, given immediate effect, bill ordered enrolled. to Committee on Natural Resources and Environmental Affairs. HI] 5125 ~ Amends the act concerned with public roads, streets and highways to provide that a contractor liB 5150 -- Amends the public health code to shall not be awarded a contract under the act for promulgate rules for the screening and statistical construction relating to a state trunk line highway or reporting of lead poisoning and provide insurance bridge unless the contractor provides the state with a coverage for lead poisoning -- introduced by Rep. five year full replacement guaranty from the Clack on 9/26/95 and referred to Committee on date the project is completed on the work performed Regulatory Affairs. under the contract -- introduced by Rep. Leland on 9/26/95 and referred to Committee on HB 5151 --Amends the income tax act of 1967 Transportation. to provide a tax credit for taxpayers who pay for lead abatement, reduction or interim control for each unit of HB 5136 m Amends the act providing for the housing the taxpayer owns or rents -- introduced by establishment of plant rehabilitation and industrial Rep. Clack on 9/26/95 and referred to Committee on development districts to provide that owners or lessees Regulatory Affairs. of new facilities or speculative buildings may obtain additional industrial facility exemption certificates if liB 5152 -- Amends the act concerned with the the exemption certificate obtained becomes effective licensing and regulation of child care organizations to after December 31, 1995 and is for a period shorter provide that the owners of certain child care than the maximum permitted under the act -- organizations whose facilities were constructed before introduced by Rep. Law on 9/26/95 and referred to 1978 shall undertake lead abatement -- introduced by Committee on Tax Policy; 10/5/95, reported with Rep. Clack on 9/26/95 and referred to Committee on recommendation with substitute, referred to second Regulatory Affairs. reading; 10/11/95, substitute amended and adopted, placed on third reading; 10/12/95, amended, passed; HB 5178 -- Amends the natural resources and given immediate effect; 10/17/95, referred to environmental protection act to provide general Committee on Econ. Development, Intl. Trade and amendments, including amendments to those sections Reg. Affairs; 11/9/95, reported favorably with concerned with the regulatory fee imposed on all substitute; 11/29/95, reported by Committee of the refined petroleum products sold for resale or Whole favorably with substitute, substitute concurred in, consumption in this state, and those sections placed on order of third reading with substitute. concerned with the state treasurer determining the MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 249

amount of money needed to pay all approved or HB 5191 -- Amends the city income tax act to approvable work invoices and request for provide that for the 1997 tax year forward, individual indemnification received by the department on or residence and corporations located in a renissance zone before 6/19/95 -- introduced by Rep. Alley on are exempt from the tax imposed by city 10/3/95 and referred to Committee on Conservation, ordinance to the extent and for the duration provided Environment and Great Lakes. pursuant to the Michigan renaissance zone act and provide procedures for calculating the amount of credit HB 5179 -- Amends the natural resources and allowed -- introduced by Rep. Bodem on 10/3/95 and environmental protection act to create the "permit referred to Committee on Tax Policy. review board" to review final decisions of the department of environmental quality and, in certain HB 5192 -- Amends the act concerned with the instances, a preliminary procedural or intermediate assessment’ of.property o ~wned, operated or conducted decision of the department of environmental by railroad, telegraph, telephone and other companies, quality and set forth procedures and requirements to provide that such property, if in a renaissance zone, concerning the permit review board -- introduced by is exempt from taxation under the act to the extent and Rep. Alley on 10/3/95 and referred to Committee on for the duration provided pursuant to the Michigan Conservation, Environment and Great Lakes. renaissance zone act -- introduced by Rep. Ryan on HB 5183 m Amends the income tax act of 1967 10/3/95 and referred to Committee on Tax Policy. to provide that for the 1996 tax year and each tax year HB 5193 ~ Amends the act concerned with the thereafter, that the property tax credit allowed by creation of the state administrative board to provide that sections 520 and 522 of the act shall be claimed only the state administrative board shall have the by a senior citizen who has no taxable income for the powers granted and perform the duties imposed under tax year, along with repealing various sections of the act the Michigan renaissance zone act -- introduced by -- introduced by Rep. Bullard Jr. on 10/3/95 and Rep. Randall on 10/3/95 and referred to referred to Committee on Tax Policy. Committee on Tax Policy; 10/5/95, reported with HB 5184 -- Amends the natural resources and recommendation for referral to Committee on Urban environmental protection act to provide that beginning Policy; 11/1/95, reported with recommendation, on January 1, 1996, the state land use agency shall not referred to second reading; 11/9/95, placed on enter into, execute or renew a development rights third reading. agreement or easement tinder the act unless that agreement provides in writing that the owner is not HB 5194 ~ Amends the enterprise zone act to eligible for a tax credit under section 36109 (an income provide that certain property exempted under the act tax credit under a farm land and open space and located in a renaissance zone is exempt from the preservation agreement), among other things -- specific taxes levied under the act to the extent and for introduced by Rep. Bullard, Jr. on 10/3/95 and the duration provided pursuant to the Michigan referred to Committee on Tax Policy. renaissance zone act n introduced by Rep. Voorhees on 10/3/95 and referred to Committee on Tax Policy. lib 5185 ~ Amends the act regulating ~’elationships between landlords and tenants to provide HB 5195 -- Amends the technology park that the attorney general shall establish a toll-free development act to provide that a facility located in a service to provide information to callers with questions renaissance zone is exempt from the technology regarding landlord and tenant matters ~ introduced park facilities tax levied under the act to the extent and by Rep. Agee on 10/3/95 and referred to Committee for the duration provided pursuant to the Michigan on Commerce. renaissance zone act -- introduced by Rep. Hill on 10/3/95 and referred to Committee on Tax Policy. HB 5190 -- Amends the single business tax act to provide that for tax years beginning after December HB 5196 ~ Amends the act concerned with the 31, 1996, a taxpayer may claim a credit against the tax establishment of plant rehabilitation and industrial imposed by the act to the extent, and for the duration development districts to provide that a speculative provided pursuant to; the Michigan renaissance zone building, new facility or replacement facility located in act and provide guidelines with respect to determining a renaissance zone is exempt from the industrial that amount of credit -- introduced by Rep. Bush on facility tax levied under the act to the extent and for the 10/3/95 and referred to Committee on Tax Policy. duration provided pursuant to the Michigan Winter, 1995 m Page 250 MICHIGAN REAL PROPERTY REVIEW

renaissance zone act -- introduced by Rep. Kaza on HB 5219 ~ Amends the enterprise zone act to 10/3/95 and referred to Committee on Tax Policy. incorporate the term "taxable value" as having the meaning given it under section 27A of the general lib 5197 -- Amends the commercial property tax act and provide other general redevelopment act to provide that a new, replacement amendments m introduced by Rep. Brackenridge on or restored facility located in a renaissance zone is 10/10/95 and referred to Committee on Tax Policy; exempt from the commercial facilities tax levied under 10/26/95, reported with recommendation with the act to the extent and for the duration provided substitute, referred to second reading; 11/2/95, pursuant to the Michigan renaissance zone act -- substitute adopted, placed on third reading, placed on introduced by Rep. Kukuk on 10/3/95 and referred immediate passage, passed, given immediate effect; to Committee on Tax Policy. 1 I/7/95, referred to Committee on Finance. liB 5198 D Amends the act concerned with the lib 5220 ~ Amends the neighborhood taxation of lessees and users of tax exempt property to enterprise zone act to incorporate the definition of provide that real property located in a renaissance zone "taxable value" as defined under section 27A of the is exempt from taxation under the act to the exteht and general property tax act and provide other general for the duration p~ovided pursuant to the Michigan amendments -- introduced by Rep. Brackenridge on renaissance zone act -- introduced by Rep. Varga on 10/10/95 and referred to Committee on Tax Policy; 10/3/95 and referred to Committee on 10/26/95, reported with recommendation with Tax Policy. substitute, referred to second reading; 11/2/95, lib 5214 D Amends the tax tribunal act to provide substitute adopted, placed on third reading, placed on that in the event an assessment of property is appealed, immediate passage, passed, given immediate effect; if the tribunal determines that the assessment, after 11/7/95, referred to Committee on Finance. equalization, is greater than the assessment that was liB 5221 -- Amends the commercial redevelop- appealed, the tribunal shall not order an increase in the ment act to incorporate the definition of "taxable value" amount of the assessment tinder appeal -- introduced as defined under section 27A of the general property by Rep. Jaye on 10/5/95 and referred to Committee tax act and provide other general amendments -- on Tax Policy. introduced by Rep. Goschka on 10/10/95 and referred to Committee on Tax Policy; 10/26/95, HB 5217 -- Amends the racing law of 1980 to reported with recommendation with substitute, insert different ceilings for the amount the legislature referred to second reading; 11/2/95, substitute may appropriate to the department for various items, adopted, placed on third reading, placed on immediate repeal certain sections regarding revenue allotment and passage, passed, given immediate effect; 11/7/95, provide that holders of a race meeting license pay a referred to Committee on Finance. certain percentage directly to a city or township in which the licensed race meeting is located -- liB 5222 ~ Amends the technology park introduced by Rep. Bullard, Jr. on 10/10/95 and development act to incorporate the definition of referred to Committee on Regulatory Affairs. "taxable value" as defined under section 27A of the general property tax act and provide other general liB 5218 -- Amends the act concerned with the amendments -- introduced by Rep. Gernaat on assessment of property owned, operated or conducted 10/10/95 and referred to Committee on Tax Policy; by utility companies and others to incorporate the 10/26/95, reported with recommendation with definition of "taxable value" as defined by section 27A substitute, referred to second reading; 11/2/95, of the general property tax act and provide general substitute adopted, placed on third reading, placed amendments with respect to assessing utility property on immediate passage, passed, given immediate and determining true cash value and taxable value -- introduced by Rep. Bullard, Jr. on 10/10/95 and effect; 11/7/95, referred to Committee on Finance. referred to Committee on Tax Policy; 11/2/95, liB 5238 -- Amends the insurance code of reported with recommendation with substitute, 1956 to permit, under certain circumstances, financial referred to second reading; 11/28/95, substitute institutions or their affiliates to own and receive adopted, placed on third reading; 11/30/95, passed, dividends from stock in a reinsurer that accepts given immediate effect. cessions from an insurance company that provides MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 251

group life insurance to customers of the financial special assessments that are lawfully imposed upon the institution in connection with loans on dwellings or land -- introduced by Rep. Randall on 10/18/95 and mobil homes -- introduced by Rep. Bullard, Jr. on referred to Committee on Appropriations. 10/11/95 and referred to Committee on Insurance; 10/24/95, adverse roll call. HIS 5270 --Amends the general property tax act to permit a property owner that sustains a loss after tax HB 5246 N Amends the social welfare act to day to appeal to the July or December board of review provide that the amount of medical assistance paid on -- introduced by Rep. Hanley on 10/18/95 and behalf of a recipient under the act is not a claim against referred to Committee on Tax Policy. the estate of the recipient following death or the estate of a deceased spouse who survived the recipient, and liB 5274 ~ Amends the natural resources and that the state shall not impose a lien against the real environmental protection act to provide for a winter property of a recipient before or after his or her death fishing license which enables a holder to take fish only to secure amounts properly paid for medical assistance during the months of December, danuary and February on behalf of the recipient-- introduced by Rep. Olshove -- introduced by Rep. Kukuk on 10/24/95 and on 10/12/95 and referred to Committee on referred to Committee on Conservation, Environment Human Services. and Great Lakes. HB 5255 -- Amends the income tax act of 1967 liB 5276 -- Amends the natural resources and to provide that for the 1996 tax year and each tax year environmental protection act to repeal part 33 of the thereafter, a taxpayer who is a land contract vendor act because it duplicates part 479 -- introduced by Rep. may deduct, to the extent included in adjusted gross Middaugh on 10/25/95 and referred to Committee on income, an amount equal to the amount of collection Conservation, Environment and Great Lakes; 10/31/95, reported with recommendation; 11/2/95, and filing fees associated with each land contract paid referred to second reading; 11/28/95, placed on third by the taxpayer in the tax year -- introduced by Rep. reading, placed on immediate passage, passed, given Voorhees on 10/12/95 and referred to Committee on immediate effect; 11/29/95, referred to Committee on Tax Policy. Natural Resources and Environmental Affairs. HB 5262 -- Amends the state construction code HB 5304 D Amends the act regulating potatoes act of 1972 to redefine the enforcing agency under the to provide for certain revisions to the potato grower code as being an official or public agent of a govemmen- assessment -- introduced by Rep. Gnodtke on tal subdivision, provide that the official or public agent 10/5/95 and referred to Committee on Agriculture and acting as the enforcing agency could administer and Forestry; 10/11/95, reported with recommendation enforce the code as the final decision making authority with substitute, referred to second reading; within the governmental subdivision for certain items 10/17/95, substitute adopted, placed on third reading; such as the issuance and revocation of permits, that the 10/18/95, passed, given immediate effect; decision of the official or public agent is appealable to 10/24/95, referred to Commitee on Agriculture the construction board of appeals, set forth what the and Forestry. governmental subdivision may base its decisions on with respect to administering the code, including the HB 5349 -- Amends the natural resources and technical advice and assistance of a private entity or environmental protection act to drop the January 1, individual who is a registered inspector or plan reviewer, 2005 sunset on the fund and amend the date among other things -- introduced by Rep. Cropsey for submitting a work invoice or request for on 10/17/95 and referred to Committee on indemnification to the administrator to June 29, 1995, Regulatory Affairs. among other things -- introduced by Rep. Lowe on 10/31/95 and referred to Committee on Tax Policy. HB 5269 -- Amends the natural resources and environmental protection act to provide that payments HB 5351 D Creates a bill to make appropriations for land purchased through the Michigan natural to the department of treasury for the fiscal year ending resources trust fund (after the 1995 amendments to September 30, 1996 and to provide, amongst other this section of the act) be equal to the amount of the things, for the appropriation of monies by the general ad valorem property tax that would be paid if department of treasury to counties to reimburse them the land was held in private ownership, including any for expenses incurred in processing homestead Winter, 1995 -- Page 252 MICHIGAN REAL PROPERTY REVIEW

property tax exemption claims u introduced by Rep. 11/7/95 and referred to Committee on Local Prusi on 10/31/95 and referred to Committee on Government. Appropriations. HB 5367 ~ Amends the home rule village act to HB 5357 -- Amends the plant rehabilitation and provide that if an ordinance adopts by reference a industrial development district act to provide a statute of this state or a rule promulgated by an agency restriction on the fee amount local units of government of the state, that the ordinance may also incorporate may charge to process an industrial facilities exemption future amendments or revisions to those statutes or certificate -- introduced by Rep. Brackenridge on rules by reference -- introduced by Rep. Bush on 11/2/95 and referred to Committee on Local 11/7/95 and referred to Committee on Local Government; 11/8/95, reported with recommenda- Government. tion for referral to Committee on Tax Policy. HB 5368 -- Amends the act concerned with the HB 5358 ~ Amends the general property ta~ act authorization of township boards to adopt ordinances to provide that an accessor or an assessor’s agent and regulations to provide that if an ordinance adopts cannot enter a person’s homestead for purposes of by reference a statute of this state, a rule promulgated assessment without that person’s consent -- by an agency of the state or recognized standard official introduced by Rep. Kaza on 11/2/95 and referred to or unofficial code, the ordinance shall take effect within Committee on Tax Policy. 30 days of the date of the adoption of the statute, rule or code and provide that if an ordinance adopts by HB 5359 -- Amends the general property tax act reference a statute, rule or code, it is not necessary to to provide that a transferee of real property may appeal publish it in its entirety and also provide that the the levy of any additional taxes, interest and penalties township shall provide a true copy of the statute, rule within 35 days of the levy provided that the appeal is or code for inspection and distribution to the public -- limited to the issue of whether a transfer of ownership introduced by Rep. Kukuk on 11/7/95 and referred to has occurred or the correcting of arithmetic errors, Committee on Local Government. and provide other general amendments -- introduced by Rep. Bobier on 11/7/95 and referred to HB 5369 -- Amends the\\fourth class city act to Committee on Tax Policy; 11/30/95, reported with provide that a city may adopt a statute of this state, rule recommendation with substitute, referred to promulgated by an agency of the state, or a recognized second reading. standard official or unofficial code by reference and that the ordinance may incorporatefuture amendments lib 5360 -- Amends the general property tax act or revisions of the statute or rule by reference ~ to include within the definition of "transfer of owner- introduced by Rep. Hill on 11/7/95 and referred to ship" the conveyance of an ownership interest in a Committee on Local Government. cooperative housing corporation (except that portion of the property not subject to the ownership interest HB 5370 -- Amends the general law village act conveyed) to revise the method for calculating taxable to provide that a village may adopt a statute of the value, and to provide other general amendments u state, a rule promulgated by an agency of the state, or introduced by Rep. Bobier on 11/7/95 and referred to recognized standard official or unofficial code by Committee on Tax Policy. reference and that the ordinance may incorporate future amendments or revisions of the statute or rule lib 5362 -- Amends the agricultural commodities by reference -- introduced by Rep. Galloway on marketing act to provide for and revise certain admin- 11/7/95 and referred to Committee on Local istrative procedures concerning the awarding of grants Government. -- introduced by Rep. Rhead on 11/7/95 and referred to Committee on Agriculture and Forestry. HB 5371 --Amends the general property tax act to provide that an ad valorem special assessment levied HB 5366 -- Amends the home rule city act to on property after December 31, 1995 shall be based provide that if an ordin .ance adopts by reference a on the state equalized valuation of the property, to statute of this state or a rule promulgated by an agency provide that an ad-valorem special assessment levied of the state, that the ordinance may also incorporate on property after December 31, 1994 and before future amendments or revisions to those statutes or January 1, 1996 shall be based on either the property’s rules by reference -- introduced by Rep. Ryan on state equalization valuation or the taxable value, and MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 253

to provide amendments to that section of the act 11/30/95, reported with recommendation with concerned with amounts that must be paid before substitute, referred to second reading. redemption of property can be had -- introduced by Rep. Bullard Jr. on 11/7/95 and referred to liB 5376 -- Amends the township and village Committee on Tax Policy; 11/30/95, reported public improvement and public service act to provide with recommendation with substitute, referred to that for a special assessment levied after December 31, second reading. 1995, a special assessment installment shall not be levied on property in excess of 15 percent of the HB 5372 -- Amends the act concerned with properties state equalized valuation and, the total providing for the construction and repair of pavements assessment installment for a year for a combination of and sidewalks to provide that the amount required for improvements or services specified in the act, the lighting of county roads shall be apportioned regardless of the year in which the assessment amongst the several townships and cities of the county installments are levied, shall not exceed 45 percent of according to either their taxable value or their state the properties state equalized valuation -- introduced by equalized valuation for the time period of January 1, Rep. Bullard Jr. on 11/7/95 and referred to 1995 thru December 31, 1995 or, after December 31, Committee on Tax Policy; 11/30/95, reported with 1995, by their state equalized valuation -- introduced recommendation with substitute, referred to by Rep. Bullard Jr. on 11/7/95 and referred to second reading. Committee on Tax Policy; 11/30/95, reported with recommendation with substitute, referred to HB 5377 -- Amends the act authorizing second reading. township water supplies and sewage disposal services and facilities to provide that a special assessment liB 5373 ~ Amends the act concerned with the for a water system financed by revenue bonds, levied making of certain improvements by townships to after July 1995, shall not be levied against any provide a method for the levying of special assessments property in one year in excess of 1/5 of one percent on an ad vaiorem basis for the calendar year 1995 and of the taxable value of the property, unless a special provide that after December 31, 1995, if a special hearing is held, and to provide that after the creation assessment is levied on an ad valorem basis, the of a special assessment district, and while bonds are amount assessed against each parcel of land is the outstanding, that for a special assessment levied after proportionate amount of the whole sum to be levied July 1995, the special assessment shall be levied against against all parcels of land in the special assessment the taxable value of benefited properties within the district, as the state equalized valuation of the parcel of district -- introduced by Rep. Bullard Jr. on 11/7/95 land bears to the total state equalized valuation of all and referred to Committee on Tax Policy; 11/30/95, parcels of land in the special assessment district -- reported with recommendation with substitute, introduced by Rep. Bullard Jr. on 11/7/95 and referred to second reading. referred to Committee on Tax Policy; 11/30/95, reported with recommendation with substitute, liB 5378 -- Amends the act concerned with the referred to second reading. acquisition and maintenance of township parks to provide that after December 31, 1995, a township liB 5374 -- Amends the drain code of 1956 to budget covering the cost of maintaining township parks provide that in determining the amounts due from and places of recreation shall not exceed 1.5 rail of the public corporations in so far as a special assessment levy state equalized valuation of the township and provide for drains, be based upon taxable value -- introduced requirements for the acquisition of township parks and by Rep. Bullard Jr. on 11/7/95 and referred to places of recreation m introduced by Rep. Bullard Jr. Committee on Tax Policy. on 11/7/95 and referred to Committee on Tax Policy; 11/30/95, reported with recommendation with liB 5375 -- Amends the act concerned with substitute, referred to second reading. providing police and fire protection to provide that after December 31, 1995, the apportionment for liB 5380 -- Amends the natural resources and emergency equipment within a one year period, shall environmental protection act to provide that if the not exceed ten mils of the state equalized valuation of owner or operator of a facility became the owner or the area ~ introduced by Rep. Bullard Jr. on operator prior to the effective date of this amendment, 11/7/95 and referred to Committee on Tax Policy; and the facility contains an underground storage tank Winter, 1995 -- Page 254 MICHIGAN REAL PROPERTY REVIEW

system, that owner or operator is liable only if the owner Services; 11/30/95, reported with recommendation, or operator is responsible for an activity causing a and referred to second reading. release or a threat of a release from the underground storage tank, among other things -- introduced by Rep. HB 5387 -- Amends the revised judicature act of Sikkema on 11/7/95 and referred to Committee on 1961 to provide that a license to practice law in this Conservation, Environment and Great Lakes; state is subject to suspension as provided in the support 11/28/95, reported with recommendation, referred to and visitation enforcement act (HB 5384) and the second reading. regulated occupation support enforcement act (HB 5385) -- introduced by Rep. Green on 11/8/95 and referred HB 5381 m Amends the natural resources and to Committee on Human Services; 11/30/95, environmental protection act to provide that if the reported with recommendation, and referred to release or threat of a release at a facility is not solely second reading. from an underground storage tank, that the ownet’ or HB 5393 -- Amends the Michigan tragic fund act operator has an option with respect to response to exclude from the definition of "project" a stadium, or activities/corrective actions and to provide~ for similar structure, to be used by a professional sports retroactive application of the changes in liability organization -- introduced by Rep. Alley on 11/9/95 provided for in the amendatory act, amongst other and referred to Committee on Appropriations. things -- introduced by Rep. Sikkema on 11/7/95 and \ referred to Committee on Conservation, Environment HIS 5394 -- Creates the cultural district and Great Lakes; 11/28/95, reported with establishment act to provi~le for the establishment and recommendation, referred to second reading. maintenance of cultural~ districts, prescribe their powers and duties, authorize the imposition and liB 5382 -- Amends the Michigan liquor control collection of certain taxes, and provide for the act to prohibit the advertisement of alcoholic liquor on allocation of funds for certain cultural organizations -- any sign located outside of a licensed premises or on any introduced by Rep. Hertal on 11/9/95 and referred to billboard -- introduced by Rep. Byl on 11/8/95 and Committee on Tax Policy; 11/30/95, reported with referred to Committee on Conservation, Environment recommendation with substitute, referred to and Great Lakes. second reading. HB 5384 m Amends the support and visitation HB 5402 -- Amends the open meetings act to enforcement act to provide a mechanism for the repeal enacting section 2 of act no. 158 of the public suspension of a delinquent support payer’s acts of 1988 -- introduced by Rep. Dobb on 11/9/95 occupational license under certain circumstances -- and referred to Committee on Public Utilities; introduced by Rep. Bankes on 11/8/95 and referred 11/28/95, reported with recommendation, referred to Committee on Human Services; 11/30/95, to second reading; 11/30/95, placed on third reported with recommendation with substitute, and reading, placed on immediate passage, passed, given referred to second reading. immediate effect. HB 5385 ! Creates the regulated occupation liB 5403 -- Amends the act concerned with the support enforcement act to provide for the suspension powers and duties of revenue collection of the state to of certain occupational licenses under certain provide that a home heating credit shall not be applied circumstances and provide a procedure for the issuance to a writ of garnishment under the act, among other of an order recinding a suspension order issued under things -- introduced by Rep. Baade on 11/9/95 and the act -- introduced by Rep. Gire on 11/8/95 referred to Committee on Tax Policy. and referred to Committee on Human Services; 11/30/95, reported with recommendation, and HB 5404 -- Amends the natural resources and referred to second reading. environmental protection act to exclude from the definition of solid waste potash resulting from a wood HB 5386 -- Amends the administrative burning source -- introduced by Rep. Anthony on procedures act of 1969 to incorporate the regulated 11/9/95 and referred to Committee on Conservation, occupation support enforcement act (HB 5385) and Environment and Great Lakes. amendments to the Support and visitation enforcement act (HB 5384) -- introduced by Rep. McManuas on HB 5409 -- Amends the act concerned with cities, 11/8/95 and referred to Committee on Human villages and townships establishing and maintaining MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 255

public libraries to require that city, village and township HB 5441 -- Amends the revised probate code to library board members be elected -- introduced by Rep. require the dower right provided for under the code be Jaye on 1 I/9/95, and referred to Committee on Local gender neutral -- introduced by Rep. Pitoniak on Government. 11/30/95 and referred to Committee on Judiciary and Civil Rights. HB 5413 -- Amends the act concerned with the maintenance and use of public highways and private HB 5442 -- Amends the act concerned with roads to provide that the state shall pay to certain judgements of divorce and separate maintenance to counties the amount the county would have received if require references to dower be gender neutral in the county had levied i rail under the act, less revenues divorce and separate maintenance judgments -- received as a result of that tax levy, had 100 percent introduced by Rep. Pitoniak on 11/30/95 and of the real property within that county been subject to referred to Committee on Judiciary and Civil Rights. the tax levy and assessed the 50 percent of true cash value, under certain circumstances -- introduced by HB 5443 u Amends the drain code of 1956 to Rep. Lowe on 11/28/95 and referred to Committee require references to the dower right to be gender on Appropriations. neutral -- introduced by Rep. Pitoniak on 11/30/95 and referred to Committee on Judiciary and liB 5418 -- Amends the seller disclosure act to Civil Rights. require a seller to provide information concerning the proximity of the property to a farm or a farm HB 5444 ~ Amends the uniform partnership act operation -- introduced by Rep. Hill on 11/28/95 and to provide for gender neutral terms and require referred to Committee on Agriculture and Forestry; references to the dower right be gender neutral -- 11/29/95, reported with recommendation with introduced by Rep. Pitoniak on 11/30/95 and substitute, referred to second reading. referred to Committee on Judiciary and Civil Rights. liB 5422 ~ Amends the natural resources and HB 5445 ~ Amends the act concerned with environmental protection act to provide amendments estates of dower to require the dower right be gender neutral m introduced by Rep. Pitoniak on to those sections concerned with hunting licenses 11/30/95 and referred to Committee on Judiciary and, particularly, the fee charge for hunting licenses m introduced by Rep. Alley on 11/29/95 and and Civil Rights. referred to Committee on Conservation, Environment FIB 5446 ~ Amends the act concerned with the and Great Lakes. assignment of dower to provide that the dower right be gender neutral -- introduced by Rep. Pitoniak on HB 5426 ~ Amends the Michigan vehicle code to provide for a specialty environmental license plate 11/30/95 and referred to Committee on Judiciary and and provide that fees collected from such plates be Civil Rights. earmarked for the state parks improvement fund -- HB 5447 ~ Amends the act concerned with the introduced by Rep. Bodem on 11/29/95 and requirement of filing claims of dower and to bar referred to’Committee on Conservation, Environment dower in certain cases, to provide that the dower right and Great Lakes. be gender neutral -- introduced by Rep. Pitoniak on 11/30/95 and referred to Committee on Judiciary HB 5429 m Amends the natural resources and and Civil Rights. environmental protection act to revise hunting and fishing license fee structures -- introduced by Rep. HB 5448 u Amends the act concerned with the Bobier on 11/29/95 and referred to Committee on filing of claims of dower with the register of deeds to Conservation, Environment and Great Lakes. provide that the dower right be gender neutral -- introduced by Rep. Pitoniak on 11/30/95 and HB 5439 -- Amends the natural resources and referred to Committee on Judiciary and Civil Rights. environmental protection act to revise the eligibility requirements for solid waste alternative program HB 5449 -- Amends the revised judiciary act of grants to require applicants to have recycled product 1961 to revise those sections concerned with the dower procurement policies in place -- introduced by Rep. right to make such right gender neutral -- introduced Hanley on 11/30/95 and referred to Committee on by Rep. Pitoniak on 11/30/95 and referred to Appropriations. Committee on Judiciary and Civil Rights. Winter, 1995 -- Page 256 MICHIGAN REAL PROPERTY REVIEW

HB 5453 -- Amends the natural resources and with recommendation with substitute, referred to environmental protection act to exempt from the second reading; 6/7/95, substitute amended and requirements of wearing hunters orange, persons adopted, placed on third reading, placed on immediate hunting bear during archery hunting season -- passage, passed, given immediate effect, returned to introduced by Rep. Green on 11/30/95 and Senate; 6/13/95, House substitute concurred in, roll referred to Committee on Conservation, Environment call, given immediate effect, ordered enrolled; and Great Lakes. 9/12/95, presented to the Governor, approved by the Governor, filed with Secretary of State, assigned PA HB 5454 -- Amends the natural resources and 127 with immediate effect. environmental protection act to provide that the Michigan state water waste fund be used for public SB 471 --Amends the ski area safety act of 1962 access infrastructure including limited access highwaysto amend the definition of skier to include snowboarding and connecting drives to access sites, among other -- introduced by Sen. North on 4/26/95 and referred things -- introduced by Rep. Yokich on 11/30/95 and to Committee on Transportation and Tourism; referred to Committee on Conservation, Environment 5/23/95, reported favorably without amendment, and Great Lakes. ~ referred to general orders, reported by Committee of the Whole favorably without amendment, placed on SB 379 m Amends the revised judiciary act of order of third reading; 5/24/95, passed, referred to 1961 to limit the amount of noneconomic loss Committee on Regulatory Affairs; 5/31/95, reported recoverable by a plaintiff against a governmental agency with recommendation, referred to second reading; for bodily injury or property damage resulting from 6/13/95, placed on third reading, placed on negligent operation of an emergency vehicle under immediate passage, passed, given immediate effect, certain conditions, provide complete governmental returned to Senate; 6/14/95, given immediate immunity to certain persons in certain instances, effect, ordered enrolled; 9/12/95, presented to along with other amendments -- introduced by Sen. the Governor, approved by the Governor, filed Van Regenmorter on 3/7/95 and referred to with Secretary of State, assigned PA 120 with Committee on Judiciary; 10/26/95, reported favorably with substitute. immediate effect. SB 438 m Amends the credit reform act to SB 516 -- Amends the natural resources and define "excessive fee or charge" and to exempt certain environmental protection act to prohibit the sale of extensions of credit from the definition of "extension ofcertain batteries after January 1, 1996 -- introduced by credit" -- introduced by Rep. Randall on 3/16/95 and Sen. Bennett on 5/10/95 and referred to Committee referred to Committee on Commerce -- on Natural Resources and Environmental Affairs; introduced by Sen. Schuette on 3/28/95 and referred 5/18/95, reported favorably with substitute, referred to Committee on Financial Services; 11/9/95, to general orders, reported by Committee of the Whole reported favorably with substitute; 11/28/95, favorably with substitute, substitute concurred in, placed reported by Committee of the Whole favorably with on order of third reading with substitute; placed on substitute, substitute concurred in, placed on order of immediate passage, amendment(s) defeated, passed, third reading with substitute; 11/29/95, passed, referred to Committee on Conservation, Environment referred to Committee on Commerce. and G~eat Lakes; 5/23/95, reported with recommendation, referred to second reading; 6/7/95, SB 454 -- Amends the asbestos workers substitute amended and adopted, placed on third accreditation act to require asbestos abatement reading, placed on immediate passage, passed, given contractors to comply with environmental protection immediate effect, returned to Senate; 6/8/95, House agency guidelines -- introduced by Sen. Shugars on substitute concurred in, roll call, given immediate 4/19/95 and referred to Committee on Local, Urban effect, ordered enrolled; 9/12/95, presented to the and State Affairs; 4/20/95, referred to Committee on Governor, approved by the Governor, filed with Health Policy and Senior Citizens; 5/4/95, reported Secretary of State, assigned PA 124 with favorably with substitute; 5/9/95, reported by immediate effect. Committee of the Whole favorably with substitute, substitute concurred in, placed on order of third SB 518 m Amends the banking code of 1969 to reading with substitute; 5/10/95, passed, referred to add additional definitions, provide general amendments Committee on Regulatory Affairs; 5/31/95, reported to those sections concerned with bank consolidation MICHIGAN REAL PROPERTY REVIEW Winter, 1995 m Page 257

and branching, among other things -- introduced by to Committee on Financial Services; 5/23/95, Sen. Bouchard on 5/11/95 and referred to reported favorably with substitute; 5/24/95, reported Committee on Financial Services; 5/23/95, reported by Committee of the Whole favorably with substitute, favorably with substitute; 5/24/95, substitute substitute concurred in, placed on order of third reading defeated, substitute adopted, reported by Committee of with substitute; 5/25/95, passed by 2/3 vote, given the Whole favorably with substitute, substitute immediate effect, referred to Committee on Commerce; concurred in, placed on order of third reading with 10/18/95, reported with recommendation, referred to substitute; 5/25/95, passed by 2/3 vote, given second reading; 10/25/95, placed on third reading; immediate effect, referred to Committee on 10/26/95, passed; given immediate effect, returned Commerce; 10/11/95, reported with recommenda- to Senate; 11/7/95, given immediate effect, ordered tion with substitute, referred to second reading; enrolled; 11/28/95, presented to the Governor; 10/17/95, substitute adopted, placed on third 11/30/95, approved by the Governor, filed with reading; 10/18/95, passed by two-thirds vote, secretary of state, assigned PA 198 with returned to Senate; 10/31/95, House substitute immediate effect. concurred in by two-thirds vote, roll call, given immediate effect, ordered enrolled; 11/28/95, SB 536 ~ Amends the savings and loan act of presented to the Governor; 11/30/95, approved by 1980 to provide that except as otherwise provided, an the Governor, filed with Secretary of State, assigned association or federal association that requires a PA 202 with immediate effect. mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not SB 534 -- Amends the act concerned with certain require the amount of insurance to be greater than the mortgage lending practices to provide that a credit replacement cost of the mortgaged building u granting institution that requires a mortgagor to introduced by Sen. Bouchard on 5/17/95 and maintain property/casualty insurance as a condition to referred to Committee on Financial Services; receiving a mortgage loan shall not require the amount 5/23/95, reported favorably with substitute; of the property/casualty insurance to be greater than 5/24/95, reported by Committee of the Whole the replacement cost of the mortgaged building -- favorably with substitute, substitute concurred in, introduced by Sen. Bouchard on 5/17/95 and placed on order of third reading with substitute; referred to Committee on Financial Services; 5/25/95, passed, referred to Committee on 5/23/95, reported favorably with substitute; Commerce; 10/18/95, reported with recommenda- 5/24/95, reported by Committee of the Whole tion with substitute, referred to second reading; favorably with substitute, substitute concurred in, 10/25/95, substitute adopted, placed on third placed on order of third reading with substitute; reading; 10/26/95, passed; given immediate effect, 5/25/95, passed, referred to Committee on returned to Senate; 11/7/95, house substitute Commerce; 10/18/95, reported with recommenda- concurred in, roll call, given immediate effect, tion with substitute, referred to second reading; ordered enrolled; 11/28/95, presented to the 10/25/95, substitute adopted, placed on third Governor; 11/30/95, approved by the Governor, filed reading; 10/26/95, passed, given immediate effect, with Secretary of State, assigned PA 199 with returned to Senate; 11/7/95, House substitute immediate effect. concurred in, roll call, given immediate effect, ordered enrolled; 11/9/95, enrollment vacated, re-returned SB 537 m Amends the act concerned with the to Senate, ordered enrolled; 11/28/95, presented to operation of credit unions to provide that a credit the Governor; 11/30/95, approved by the Governor, union that requires a mortgagor to maintain property/ filed with Secretary of State, assigned PA 214 with casualty insurance as a condition to receiving a immediate effect. mortgage loan shall not require the amount of insurance to be greater than the replacement cost of the SB 535 -- Amends the banking code of 1969 to mortgaged building u introduced by Sen. Bouchard on provide that except as otherwise noted, a bank that 5/17/95 and referred to Committee on Financial requires a mortgagor to maintain property/casual Services; 5/23/95, reported favorably with substitute; insurance as a condition to receiving a mortgage loan, 5/24/95, rePorted by Committee of the Whole shall not require the amount of insurance to be greater favorably with substitute, substitute concurred in, than the replacement cost of the mortgaged building -- placed on order of third reading with substitute; introduced by Sen. Bouchard on 5/17/95 and referred 5/25/95, passed, referred to Committee on Winter, 1995 -- Page 258 MICHIGAN REAL PROPERTY REVIEW

Commerce; 10/18/95, reported with recommenda- SB 540 -- Amends the state housing development tion with substitute, referred to second reading; authority act of 1966 to allow the authority to use other 10/25/95, substitute adopted, placed on third security arrangements for purposes of the capital reading; 10/26/95, passed; given immediate effect, reserve fund and revise the purchase price limits returned to Senate; 11/7/95, House substitute retroactively for certain loans -- introduced by Rep. concurred in, roll call, given immediate effect, Honigman on 5/17/95 and referred to Committee on ordered enrolled; 11/28/95, presented to the Local, Urban and State Affairs; 5/18/95, reported Governor; 11/30/95, approved by the Governor, filed favorably without; 10/03/95, placed on third with Secretary of State, assigned PA 200 with reading; 10/05/95, passed; given immediate effect, immediate effect. returned to Senate; 10/11/95, given immediate effect, ordered enrolled; 10/17/95, presented to the SB 538 -- Amends the act creating a liquor control Governor; 10/24/95, approved by the Governor, commission to extend the sunset for ’the filed with Secretary of State, assigned PA 186 with issuance for special liquor licenses on certain state immediate effect. owned land -- introduced by Sen. Koivisto, on 5/17/95, referred to Committee on Economic SB 625 -- Amends the income tax act of 1967 Development, International Trade and Regulatory to provide a tax credit for restoration of historical Affairs; 5/25/95, reported favorably without sites -- introduced by Sen. Schwarz on 9/12/95 and amendment; 5/30/95, reported by Committee of the referred to Committee on Finance. Whole favorably with amendment(s), amendment(s) concurred in, placed on order of third reading with SB 626 u Amends the single business tax act to amendment(s); 5/31/95, passed, referred to provide a tax credit for restoration of historical Committee on Regulatory Affairs; 6/14/95, motion to sites -- introduced by Sen. Dunaskiss on 9/12/95 and discharge committee approved, referred to second referred to Committee on Finance. reading; 6/15/95, amended, placed on third SB 628 ~ Amends the act concerned with the reading; placed on immediate passage, passed, payment of subcontractors, laborers and material men given immediate effect, returned to Senate, House working on public buildings and public works to require amendment(s) concurred in, given immediate effect, a "good and sufficient performance payment bond," ordered enrolled; 9/12/95, presented to the provide that the surety company executing the bond be Governor, approved by the Governor, filed authorized by the Michigan Insurance Bureau to do with Secretary of State, assigned PA 138 with business in this state, and provide that if such a bond immediate effect. is not obtained that the governmental entity is liable to SB 539 -- Creates the enterprise community any third party or person who would be entitled to development corporation act which permits recover under the bond ~ introduced by Sen. North on municipalities to create enterprise community 9/12/95 and referred to Committee on Local, Urban development corporations to facilitate strategic plans and State Affairs. relating to the designation and treatment of enterprise SB 629 -- Amends the act providing a procedure communities N introduced by Sen. Honigman on for bonding contractors for public buildings and public 5/17/95 and referred to Committee on Local, Urban works to require "good and sufficient performance and and State Affairs; 5/23/95, reported favorably with payment bonds" and provide that if a governmental unit substitute, referred to general orders, reported by has not obtained such a bond, it is liable to any person Committee of the Whole favorably with substitute, who would be entitled to recover under the bond ~ substitute concurred in, placed on order of third reading introduced by Sen. North on 9/12/95 and referred to with substitute, placed on immediate passage, passed, Committee on Local, Urban and State Affairs. referred to Committee on Urban Policy; 5/24/95, reported with recommendation, referred to second read- SB 631 ~ Amends the revised judiciary act of ing; 6/8/95, placed on third reading, placed on 1961 to abolish the doctrine of adverse possession immediate passage, passed, given immediate effect, beginning on the effective date of the amendment and returned to Senate, given immediate effect, brdered also provide that a claim of title to real property by enrolled; 9/12/95, presented to the Governor, adverse possession may be made if the period of con- approved by the Governor, filed with Secretary of tinuous possession of the property, as required by law, State, assigned PA 123 with immediate effect. has run in its entirety before the effective date of the MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 259

amendment-- introduced by Sen. Conroy on 9/12/95 reading with amendment(s); 11/9/95, passed, referred and referred to Committee on Financial Services. to Committee on Local Government. SB 632 -- Amends the act concerned with SB 653 -- Amends the housing law of Michigan marketable record title and interest in land to to provide that the enforcing agency may inspect incorporate the amendments set forth in SB 631 multiple unit dwellings and rooming houses regulated by concerning the abolishment of the doctrine of adverse the act after the agency has received a complaint possession -- introduced by Sen. Conroy on 9/12/95 regarding the health or safety of the dwellings, and referred to Committee on Financial Services. that, except in the case of an emergency, an inspection shall not be carried out unless the occupant consents or SB 639 -- Amends the state school aid act of there is a warrant for probable cause, and that such an 1979 to redefine the term "membership" with respect inspection shall be conducted in the manner best to the counting of nonresident pupils and to permit a calculated to secure compliance with the act and that district to refuse e~ollment of a nonresident child who the enforcing agency may charge a fee for such has been expelle~! from another district, among inspections which amount shall not exceed the actual other things -- introduced by Sen. Schuette on cost of the inspection -- introduced by Sen. Honigman 9/12/95 and referred to Committee on Education; on 9/14/95 and referred to Committee on Local, 10/10/95, reported favorably with substitute; Urban and State Affairs; 11/7/95, reported favorably 10/17/95, reported by Committee of the whole with substitute. favorably with substitute, substitute concurred in, placed on order of third reading with substitute; 10/18/95, SB 656 -- Amends the occupational code to amendment(s) defeated, passed, referred to exempt architects, professional engineers, surveyors, Committee on Education. and persons engaged in interior or building design from the licensure requirements of the occupational code -- SB 645 -- Amends the natural resources and introduced by Sen. Rogers on 9/14/95 and referred to environmental protection act to increase the Committee on Economic Development, International registration fee for personal water craft, to require a Trade and Regulatory Affairs. person operating a personal water craft to be at least 150 feet from the shore line except when traveling at SB 660 ~ Amends the natural resources and a no wake speed, to require persons age 12 through 15 environmental protection act to provide that a years who operate a motor boat to present a boating snowmobile used solely for transportation on the frozen safety certificate upon demand of a police officer, and surface of public waters for the purpose of ice fishing to require the DNR to create and make available to is exempt from the requirement of purchasing a snow- dealers a summary of marine safety laws pertaining mobile permit sticker under the act -- introduced by to personal water crafts, among other things -- Sen. North on 9/20/95 and referred to Committee on introduced by Sen. Gast on 9/13/95 and referred to Transportation and Tourism; 11/28/95, reported favorably with amendment(s); 11/30/95, reported by Committee on Transportation and Tourism; 11/7/95, Committee of the Whole favorably with amendment(s), reported favorably with substitute; 11/8/95, amended, reported by Committee of the Whole favorably amendment(s) concurred in, placed on order of third reading with amendment(s). with substitute and amendment(s), substitute and amendment(s) concurred in, placed on order of third SB 663 -- Amends the insurance code of 1956 reading with substitute and amendment(s); 11/9/95, to require title insurance rates be negotiable -- amended, passed, referred to Committee on introduced by Sen. Honigman on 9/20/95 and Conservation, Environment and Great Lakes. referred to Committee on Financial Services. SB 651 -- Creates a bill for the acquisition, SB 668 -- Creates the Michigan renaissance zone improvement, maintenance and operation of parks by act whose purpose is to facilitate economic certain local units of government m introduced by Sen. development, stimulate industrial, commercial and Honigman on 9/13/95 and referred to Committee on residential improvements and prevent physical and Local, Urban, and State Affairs; 11/7/95, reported infrastructure deterioration of certain geographical favorably with amendment(s); 11/8/95, reported by areas in the state -- introduced by Sen. Posthumus on Committee of the Whole favorably with amendment(s), 9/20/95 and referred to Committee on Local, Urban amendment(s) concurred in, placed on order of third and State Affairs. Winter, 1995 -- Page 260 MICHIGAN REAL PROPERTY REVIEW

SB 669 ~ Amends the income tax act of 1967 referred to Committee on Transportation and Tourism; to provide that a person who is a resident in a 11/28/95, reported favorably with amendment(s). renaissance zone is exempt from the tax imposed by the act to the extent, and for the duration provided, SB 719 ~ Amends the state construction code act pursuant to the proposed Michigan renaissance zone of 1972 to provide that the construction code commis- act (SB 668) -- introduced by Sen. Steil on 9/20/95 sion prescribe energy conservation standards for the and referred to Committee on Local, Urban and construction of certain buildings and provide that the State Affairs. standards for energy conservation in the construction of a building envelope be those set forth in standards SB 670 -- Amends the general property tax act 90A-1980 or 90B-1975, as applicable, published to provide, under certain circumstances, that real and by the American Society of Heating, Refrigerating and personal property in a renaissance zone is exempt from Air-Conditioning Engineers, Inc. -- introduced by taxes collected under the act to the extent and for,the Sen. Rogers on 10/5/95 and referred to Committee duration provided pursuant to the proposed Michigan on Human Resources, Labor and Veterans Affairs; renaissance zone act (SB 668) -- introduced by Sen. 10/24/95, reported favorably with amendment(s); Bennett on 9/20/95 and referred to Committe~ on 10/31/95, reported by Committee of the Whole Local, Urban and State Affairs. favorably with amendment(s), amendment(s) concurred in, placed on order of third reading with amendment(s); SB 715 -- Amends the act concerned with the 11/I/95, passed, referred to Committee on abandonment or discontinuation of public highways to Regulatory Affairs. provide that in the event a city or village abandons, discontinues or vacates a public highway or portion of SB 720 -- Amends the act concerned with the a public highway which provides public access to water, regulation of the business of transporting, buying, and the department, of natural resources decides to selling or dealing in crude oil or petroleum to add maintain that property as a public access site, that provisions and requirements for persons seeking the interest of the city or village in that property to obtain easements for petroleum pipelines which, shall be transferred or conveyed to the state, among other things, include contacting land owners among other things -- introduced by Sen. Carl on of record whose property is located within the 10/03/95 and referred to Committee on Transporta- proposed pipeline route and advising them of their tion and Tourism; 11/28/95, reported favorably rights under the uniform condemnation procedures act with amendment(s). -- introduced by Sen. Gougeon on 10/5/95 and referred to Committee on Local, Urban and SB 716 ~ Amends the act concerned with the State Affairs. opening and closing of public highways to provide that in the event a county discontinues, abandons, or vacates SB 721 ~ Amends the income tax act of 1967 a county road or portion of a county road which to provide, for the 1995 tax year, a method of provides access to a lake or stream, and the department calculating the home heating credit based upon of natural resources decides to maintain the road as a whether or not federal low income home heating public access site, that the county shall transfer or energy assistance block grant funds are allocated to convey its interest in that property to the state -- this state and to extend the sunset for such credit to introduced by Sen. Cherry Jr. on 10/3/95 and referred 1995 -- introduced by Sen. North on 10/5/95 and to Committee on Transportation and Tourism; referred to Committee on Finance; 11/1/95, reported 11/28/95, reported favorably with amendment(s). favorably with substitute; 11/28/95, reported by Committee of the Whole favorably with substitute, $B 717 -- Amends the subdivision control act of substitute concurred in, placed on order of third 1967 to provide that in the event a recorded plat is reading with substitute; 11/29/95, passed, referred to vacated or altered in such a manner that would result Committee on Tax Policy. in the loss of a public highway or portion of a public highway that accesses water, that the state may decide $B 727 -- Amends the state transportation whether it wants to maintain the property as a public preservation act of 1976 to provide that if the access site and, in the event that it does, that control department offers for sale to the current contract over the property be relinquished and interest in the operators all segments of state owned rail property property be transferred or conveyed to the state -- under certain circumstances, the department shall not introduced by Sen. Cherry Jr. on 10/3/95 and partition any individual segment of that state owned MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 261

rail property into more than one parcel -- introduced SB 745 ~ Amends the mobile home commission by Sen. McManus Jr. on 10/17/95 and referred to act to provide that the department may issue a permit Committee on Transportation and Tourism. for the construction of a mobile home park or seasonal mobile home park which shall expire not more than 5 SB 728 -- Amends the natural resources and years after it is issued and provide that the department environmental protection act to provide a part shall not extend the time that a permit is valid -- concerned with environmental audit privilege and introduced by Sen. Bennett on 11/1/95 and referred immunity -- introduced by Sen. Bennett on to Committee on Human Resources, Labor and 10/18/95 and referred to Committee on Natural Veterans Affairs. Resources and Environmental Affairs; 11/I/95, reported favorably with substitute; 11/7/95, reported SB 748 -- Amends the natural resources and by Committee of the Whole favorably with environmental protection act to provide that upon the substitute, substitute concurred in, placed on order of request of any person, the department shall hold a third reading with substitute; 11/8/95, amendment(s) public hearing on the permit application for the defeated, passed, referred to Committee on construction of a marina -- introduced by Sen. Dunaskiss Conservation, Environment and Great Lakes. on 11/2/95 and referred to Committee on Transportation and Tourism. SB 734 -- Amends the act concerned with the powers and duties of county boards of commissioners SB 752 ~ Amends the revised judiciary act of to increase the permissible term of real estate leases 1961 to provide that a defendant that is found liable for that county boards of commissioners enter into from an act or omission that causes personal injury, five to twenty years -- introduced by Sen. Shugars on property damage, or wrongful death is jointly and 10/25/95 and referred to Committee on Local, Urban separately liable if the defendant’s act or omission falls and State Affairs. within certain categories, (e.g., intentional, a crime involving the use of acholic or a controlled substance), SB 738 ~ Amends the natural resources and among other things -- introduced by Sen. Peters on environmental protection act with respect to the 11/7/95 and referred to Committee on Judiciary. Michigan underground storage tank financial assurance fund to provide funding for work invoices and $B 753 ~ Amends the Michigan election law to request for indemnification submitted prior to June 29, provide that the reason for recall petitions shall be for 1995 and approved by the department, and misfeasance, malfeasance, or nonfeasance in office and provide payments for work invoices or requests for be based upon the officer’s conduct during the current indemnification that were denied but for which an term of office -- introduced by Sen. Conroy on appeal was filed prior to June 29, 1995 and in which 11/7/95 and referred to Committee on Government. denial was subsequently reversed on appeal, among other things -- introduced by Sen. Bennett on SB 755 -- Amends the Michigan vehicle code to 10/31/95 and referred to Committee on Natural provide that notwithstanding any other provision of the Resources and Environmental Affairs; 11/9/95, act, a person responsible for a moving violation in a reported favorably with substitute; 11/28/95, reported construction zone be subject to double the fine other- by Committee of the Whole favorably with substitute, wise prescribed for a moving violation -- introduced by substitute concurred in, placed on order of third Sen. Carl on 1 I/8/95 and referred to Committee on reading with substitute; 11/29/95, substitute Transportation and Tourism. defeated, amended, passed, referred to Committee on Conservation, Environment and Great Lakes. $B 756 -- Amends the natural resources and environmental protection act to eliminate the sunset on SB 744 ~ Amends the natural resources and the distance requirements for incinerators -- environmental protection act to permit a person to introduced by Sen. Bouchard on 11/8/95 and construct a building that includes a basement in a referred to Committee on Natural Resources and floodplain that has been properly filled under permit, ifEnvironmental Affairs; 11/28/95, reported favorably the footings for the basement are set entirely in virginwith substitute; 11/9/95, reported by Committee of soil (i.e., soil other than soil used to fill a flood-plain) -- Whole favorably with substitute, substitute concurred in, introduced by Rep. Bennett on 11/1/95 and placed on order of third reading with substitute; referred to Committee on Human Resources, Labor 11/$0/95, passed, referred to Committee on and Veterans Affairs. Conservation, Environment and Great Lakes. Winter, 1995 -- Page 262 MICHIGAN REAL PROPERTY REVIEW

SB 764 -- Amends the management and budget and referred to Committee on Natural Resources and act to provide that beginning October 1, 1996, a unit Environmental Affairs. of local government that requires a certain portion of those employed to build or renovate a public $B 778 -- Amends the uniform condemnation improvement to reside in a particular unit of local procedures act to provide various general amendments government, is not eligible to receive funds from the concerning such topics as applying for a zoning state through an appropriation for that public variance for the remainder of a parcel that becomes improvement -- introduced by Sen. Honigman on non-conforming after the acquisition of a portion of the 11/28/95 and referred to Committee on Local, parcel, the ability of the agency to request from an Urban and State Affairs. owner the reproduction of tax returns, financial statements and other information to be used in SB 765 -- Amends the management and budget establishing just compensation for the property, act to provide that beginning October 1, 1996, a u~nit placing a 180 day time limit after filing a complaint for of local government that does not have a competitive each party to complete appraisals in certain bidding process in effect for the procurement of gopds circumstances, changes regarding the payment of and services in the building or renovation of a public expert witness fees and attorneys fees, among other improv~ement is not eligible to receive funds from the things -- introduced by Sen. Dunaskiss on 11/30/95 state through an appropriation for the building or and referred to Committee on Local, Urban and renovation of that public improvement -- introduced by State Affairs. Sen. Honigman on 11/28/95 and referred to -- Committee on Local, Urban and State Affairs. $B 779 Amends the natural resources and environmental protection act to authorize condemning SB 766 ~ Creates a bill to prohibit governmental agencies to seek variances in natural rivers entities from requiring individuals to reside within zoning -- introduced by Sen. Dunaskiss on 11/30/95 certain geographical areas as a condition of employ- and referred to Committee on Local, Urban and ment or promotion -- introduced by Sen. Honigman on State Affairs. 11/28/95 and referred to Local, Urban and $B 780 ~ Amends the airport zoning act to State Affairs. authorize a condemning agency to seek variances SB 767 ~ Amends the natural resources and in airport zoning -- introduced by Sen. Dunaskiss on environmental protection act to provide that with 11/30/95 and referred to Committee on Local, respect to a person seeking a construction permit to Urb~an and State Affairs. establish a treatment, storage or disposal facility, that $B 781 m Amends the county rural zoning the director shall deny an application for construction enabling act to authorize condemning agencies to seek permit if the applicant has been convicted of a criminal variances in county zoning -- introduced by Sen. violation of any environmental statute enacted by any Honigman on 11/30/95 and referred to Committee on federal, state, Canadian, or Canadian provincial Local, Urban and State Affairs. agency -- introduced by Sen. Berryman on 11/28/95 and referred to Committee on Natural Resources and SB 782 ~ Amends the township rural zoning act Environmental Affairs. to authorize condemning agencies to seek variances in township zoning ~ introduced by Sen Honigman on SB 771 -- Amends the natural resources and 11/30/95 and referred to Committee on Local, Urban environmental protection act to add a part concerned and State Affairs. with state forest recreation -- introduced by Sen. Hoffman on 11/29/95 and referred to Committee on SB 783 ~ Amends the act concerned with the Natural Resources. establishment of zoning ordinances within cities and villages to authorize condemning agencies to seek SB 772 -- Amends the natural resources and variances in city and village zoning ~ introduced by environmental protection act to permit the.department Sen. Hongiman on 11/30/95 and referred to to lease lands owned or controlled by the department Committee on Local, Urban and State Affairs. or grant concessions on the land and to provide direction as to where the money received shall be $B 784 -- Amends the natural resources and credited -- introduced by Sen. Hoffman on 11/29/95 environmental protection act to permit the department MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 263

to enter into contracts for the sale of the economic contained in the internal revenue code -- introduced by share of royalty interest it holds in hydrocarbons Sen. McManus Jr. 11/30/95 and referred to produced from devonian or antrim shale allocable to the Committee on Natural Resources and Environ- nonconventional fuel credit contained in the mental Affairs. internal revenue code and provide that such funds received be transmitted to the State Treasurer for SB 786 -- Amends the act concerned with the deposit into the orphan share fund -- introduced by levying of a severance tax on those in the business Sen. Bennett on 11/30/95 and referred to Committee of severing oil and gas from the soil to provide that on Local, Urban and State Affairs. a producer is not required to pay severance tax on income received from the hydrocarbon produced SB 785 m Amends the natural resources and by devonian or antrim shale qualifying for the environmental protection act to provide that the nonconventional fuel credit contained in the internal Michigan natural resources trust fund shall not include revenue code and acquired pursuant to a royalty as a source money received by the State from the sale interest sold by the state under the act -- of its economic share of royalty interest in introduced by Sen. Emmons 11/30/95 and referred hydrocarbons derived from devonian or antrim shale to Committee on Natural Resources and Environ- and allocable to the nonconventional fuel credit mental Affairs. Winter, 1995 -- Page 264 MICHIGAN REAL PROPERTY REVIEW

RECENT DECISIONS

by Joseph Lloyd Chard & Lloyd 201 E. Washington Ann Arbor, Michigan 48104

Frick v Design Developers, Inc., __ Mich App __; S Ct 2886; 120 L Ed2d 798 (1992) in which it was __ NW2d __ (No. 173381, October 31, 199~) held that compensation must be awarded either if Plaintiffs’ property was physically invaded or regulated Lender Negligence "too far." In looking at the extent of regulation, the Plaintiffs sold property to a developer, taking back a court first must determine whether the regulation purchase money mortgage. They subordinated the denied all beneficial or productive use of the land. purchase money mortgage to a loan from a commercial Compensation would be appropriate where the lender, which was to be used to develop the land. The regulation did not substantially advance a legitimate plaintiffs were to be paid as the developer sold state interest, or where it denied a landowner all eco- individual lots. The commercial mortgage went into nomically viable use of his land in contravention of the default, and the lender foreclosed. After the property property owner’s investment-backed expectations. was not redeemed, the plaintiffs brought an action Compensation was not appropriate where the against the commercial lender for negligence in regulation merely resulted in a diminution of the handling of loan. The trial court granted summary property’s value. disposition for the defendant, and the court of appeals affirmed. In making the determination of whether the land was rendered economically useless, the court first The Court of Appeals found the Plaintiffs’ claims clearly determined that it was proper to look not just at the unenforceable as a matter of law. There is no duty to wetlands themselves, but at the total acreage of which manage the construction loan for the benefit of junior they are a part. Even if the Plaintiffs had lost use of the lienholders. The construction loan agreement did not 4.6 acre parcel, the 24 acre parcel of which it was a reference the Plaintiffs and was clearly not a third party part retained substantial value and could be used in the beneficiary contract. This was a case of first impression manner intended by the Plaintiffs. in Michigan, and the Court adopted the position of the courts of other states that have ruled on the question. Kalinoff v Township of Columbus, __ Mich App __; ~ NW2d __ (No. 166845, October 13, 1995) Volkema v Michigan Department of Natural Resources, __ Mich App m; m NW2d __ (No. Zoning - Merger of Non-Conforming Lots 159820, October 20, 1995) The Defendant owned five platted lots. After the plat Condemnation - Wetlands Protection was recorded, the Township enacted a zoning ordinance under which the five lots were non- The Plaintiffs owned 24 acres of recreational property conforming. Township ordinance further provided which contained 4.3 acres of regulated wetlands. They that if a party owned nonconforming parcels which sought an application to fill. After the application was adjoined each other and which could be combined to denied, the plaintiffs brought suit, claiming that there form a conforming parcel, it would be required to do so. was a taking for which they should be compensated. In this case the Plaintiffs brought suit to prevent the The trial court held that there was no compensable Township from granting five building permits to the taking, and a divided Court of Appeals affirmed. owner of the five lots. The trial court granted summary In its decision the court explored the scope of Lucas judgment in favor of the Plaintiff and a divided court of v South Carolina Coastal Council, __ US__; 112 appeals affirmed. The dissent was based on the MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 265

argument that the Plaintiff lacked standing to bring the building had been condemned. When the Plaintiff the suit. was unable to make payments, the Defendant brought an action for forfeiture, obtained a judgment and writ Halabu v Behnke, __ Mich App ~; __NW2d __ (No. 169054, September 26, 1995) of restitution. After execution of the writ, the Plaintiff brought an action to rescind the land contract based on Tax Sales - Right 9f Redemption fraud, seeking the refund of the deposit he had paid. The question before the court was whether that The Defendant lost his property in a tax foreclosure sale issue was required to have been raised in the initial for failure to pay delinquent property taxes. He was forfeiture proceedings as a counterclaim. The trial court served with notice of his right to redeem, and did not denied the Defendant’s motion for summary disposi- do so. The Plaintiff did not serve the Federal Govern- tion. After trial on the merits, the court entered judg- ment, which had a lien for unpaid income taxes. The ment for the Plaintiff. The Court of Appeals question before the court was whether the failure to reversed, holding that, under the state’s broad serve the United States tolled the six month redemption rules of res judicata, the Plaintiff’s claims were barred, period with respect to the individual taxpayer. A divided Court of Appeals affirmed the trial court and held that and summary judgment should have been granted for it did not. the Defendant. Stegman v City of Ann Arbor, __ Mich App __; Pakideh v Franklin Commercial Mortgage Group, Mich App m; __ NW2d m (No. 149804, __ NW2d __ (No. 168084, September 19, 1995) ~--eeptember 29, 1995) Zoning - Single Family Loan Commitment - Acceptance of Offer The Defendant’s zoning ordinance defined "family" to include the concept ofa "functional family," which may The Defendant lender had offered the Plaintiff a loan be up to six persons living as a single housekeeping unit. commitment which contained a non-refundable The Plaintiff, a landlord, seeking to rent his building to commitment fee of $52,000. The commitment a number of unrelated, transient college students, sought contained a specific date by which it must be accepted, to have the zoning ordinance declared unconstitutional and required that it be accepted in writing. The Plaintiff as it related to the number of occupants. The trial court never signed the commitment and paid the fee after the held for the City. After analyzing the Plaintiff’s claimrequired date. When the proposed purchase fell under doctrines of due process, equal protection, and through, the Plaintiff sought the refund of the money, under the Elliott-Larsen Civil Rights Act, the Court of claiming it was a "good faith deposit" rather than a non- Appeals affirmed, and found the ordinance valid. refundable commitment fee. A jury found no cause of action. The Court of Appeals reversed. Sprague v Buhaglar, ~ Mich App m; __NW2d (No. 169853, September 8, 1995) The rationale of the majority of the court was that in order that an offer be accepted, there must be an Land Contract - Recision - Required Joinder of unambiguous acceptance in strict compliance with its Counterclaim terms. In this case, as a matter of law, these things did The Plaintiff and Defendant were parties to a land not occur. The court held, moreover, that the contract for a rental property. After closing, the Defendant was not entitled to unilaterally waive the Plaintiff/purchaser learned that two of the six units in terms of the offer regarding acceptance. Winter, 1995 -- Page 266 MICHIGAN REAL PROPERTY REVIEW

CONTINUING LEGAL EDUCATION

by Gall A. Anderson, Chairperson and Arlene R. Rubinstein, Administrative Assistant

HOMEWARD BOUND The Real Property Law Section’s Nineteenth Hor~eward Bound Series continues in January with our program entitled "Construction Developments" which will be presented by Lawrence M. Dudek of Miller, Canfield, Paddock & Stone, Ronald P. Strote of May, Simpson & Strote and James R. Case of Kerr, Russell & Weber. The subject matter will consist of typical construction contract clauses under various forms of contracts, including the new AGS/ASA subcontract, the AIA contract forms and various proprietary contract forms. The discussion will focus upon the points of view of the owner, the general contractor, and the subcontractors. The speakers will also consider related construction law issues, such as alternative dispute resolution and partnering.

Melvin J. Hollowell, Jr. of Butzel Long will speak on February 22, 1996 on "Brownfield/Enterprise Zones/ Renaissance Zones - The New Vocabulary of Urban Development." This program will address the historical obstacles to the development of property in the urban core, and how legislative initiatives (such as enterprise zones, empowerment zones and renaissance zones) can assist in overcoming these obstacles, to help make urban development both feasible and profitable.

The March 21, 1996 program will discuss what every real property attorney should know about estate planning. William B. Acker and Michael D. Umphrey of Kemp, Klein, Umphrey & Endelman will present an overview and discussion of selected important estate planning techniques for owners of real estate.

$50 for Section members and $65 for non-section members. Walk-ins are welcome! Please call Arlene Rubinstein at 810-644-7378 for further Homeward Bound information.

TWENTY-FIRST ANNUAL SUMMER CONFERENCE GRAND TRAVERSE RESORT

The 1996 Summer Conference will be held at the GRAND TRAVERSE RESORT, Grand Traverse Village, Michigan, Wednesday, July 24 through Saturday, July 27, 1996. Thomas C. Simpson of May, Simpson & Strote is in the process of planning a fantastic program! Please set aside these dates on your calendar. Details will be mailed in March.

(Continued on next page) MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 267

COURSE CALENDAR

Set forth below is a schedule of continuing legal education courses sponsored or co-sponsored by the Real Property Law Section through March 1996.

Key: HB -- Homeward Bound ICLE -- Courses co-sponsored by the Institute of Continuing Legal Education

Date Location Program Topic

January 18 MSU Management HB Construction Education Center Developments Troy

February 1 MSU Management ICLE Real Estate Education Center Title "Cleanup" Troy

February 22 MSU Management HB Brownfield/Enterprise Education Center Zones/Renaissance Zones - Troy The New Vocabulary of Urban Development

February 23 MSU Management ICLE Basic Michigan Real Education Center Property Transactions Troy

March 8 GVSU Eberhard Center ICLE Basic Michigan Real Grand Rapids Property Transactions

March 21 MSU Management HB Estate Planning for Education Center Owners of Real Estate Troy

For further information on ICLE courses, please call 313-764-0533.

(Continued on next page) Winter, 1995 -- Page 268 MICHIGAN REAL PROPERTY REVIEW

ICLE VIDEO SCHEDULE REAL ESTATE TITLE "CLEANUP" Avoiding Conveyancing Problems

February 19 Grand Rapids - GVSU Eberhard Center February 20 Lansing - State Bar Building February 21 Ann Arbor - ICLE Kalamazoo - Radisson Hotel February 29 Marquette - Northern Michigan University Traverse City - Holiday Inn

COMMERCIAL AND RESIDENTIAL LEASES A Road Map for N~gotiation and Enforcement

January 8 Ann Arbor - ICLE Detroit - Greater Detroit Chamber of Commerce January 9 Flint - McKinnon Building Lansing - State Bar Building January 10 Kalamazoo - Radisson Hotel January 17 Bay City - Bay Valley Hotel & Resort

BASELINE ENVIRONMENTAL ASSESSMENTS: BEAs from A to Z

January 8 Ann Arbor - ICLE Detroit - Greater Detroit Chamber of Commerce January 9 Flint - McKinnon Building Lansing - State Bar Building January I0 Kalamazoo - Radisson Hotel January 17 Bay City - Bay Valley Hotel & Resort January 18 Marquette - Northern Michigan University Traverse City - Holiday Inn January 22 Grand Rapids - GVSU Eberhard Center 8:00 - II:00 A.M.

For more information about ICLE courses and The Real Property Law Section’s Homeward Bound Series try the ICLE home page through the Intemet. The address is; http://www.umich.edu/~i¢le MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 269

REAL PROPERTY LAW SECTION STATE BAR OF MICHIGAN

STANDING COMMITTEES OF THE SECTION 1995 - 1996

Budget and Finance C. Robert Wartell, Chairperson (as Chairperson-Elect of Section) Ronald T. Barrows (as Treasurer) Lawrence D. McLaughlin

On Committees C. Robert Wartell, Chairperson (as Chairperson-Elect of Section) Jack D. Shumate (as Vice Chairman of Section) Stephen E. Dawson (as Past Section Chairperson) Michael W. Maddin

Continuing Legal Education Gail A. Anderson, Chairperson Lawrence D. McLaughlin (as Chairperson of Section) William B. Acker Dennis Gannon Carl Hasselwander Denise J. Lewis Robert R. Nix, II Sandra Lea Meyer Reuben A. Munday Roger O’Toole Allen Schwartz Thomas C. Simpson Gary A. Taback C. Robert Wartell

Land Title Standards

James R. Brown, Chairman Gerald K. Knott Robert R. Nix, II Emeritus Members: Ronald T. Barrows Catherine B. Lamont Robert S. Oliver Joseph J. Beck James P. Lanzetta Brian J. Page John R. Baker William H. Darbee James M. Marquardt Russell E. Pdns Maurice S. Binkow Gary E. Gottlieb Carol Ann Martinelli James E. Reed James W. Draper Dennis W. Hagerty Douglas S. McDougal Michael H. Rhodes Saverio Mistretta Carl A. Hasselwander Donald R. MeMillan John P. Rooney Allen Schwartz Bethany E. Hawkins Russell A. McNair, Jr. Richard H. Sehloss Gary A. Taback Anne H. Hiemstra Sandra Lea Meyer Kevin T. Smith Nicholas Volino Janet L. Kinzinger John E. Mogk C. Robert Wartell Kevin M. Kohls Robert D. Mollhagen Winter, 1995 -- Page 270 MICHIGAN REAL PROPERTY REVIEW

STANDING COMMITTEES (continued)

Membership Vicki R. Harding, Chairperson Robert R. Nix, II Reuben A. Munday

1995-1996 Committee to be selected later ~ 1994-1995 Committee is: Gary A. Taback, Chairperson Robert R. Nix, II (as a Past Chairperson of Section) Lawrence D. McLaughlin Thomas C. Simpson Reuben A. Munday Gregg A. Nathanson

poblications George J. Siedel, Co-Chairperson (as Editor of Review) Lawrence D. McLaughlin (as Chairperson of Section) C. Robert Wartell Robert R. Nix, II Stephen E. Dawson Thomas C. Simpson Ronald R. Barrows Jack D. Shumate MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 271

SPECIAL COMMITTEES

REAL PROPERTY LAW SECTION COMMITTEE CHAIRPERSONS & COUNCIL COORDINATORS 1995- 1996

Committee Chairperson Coordinator Bankruptcy Debtor Lisa Sommers Gretchko Patrick E. Mears Creditor Rights Pepper, Hamilton & Scheetz Dykema Gossett 100 Renaissance Center - 36th FI. 200 Old Town Riverfront Bldg. Detroit, MI 48243-1157 Grand Rapids, M! 48503-2688 (313) 393-7307 (tel) (616) 776-7550 (tel) (313) 259-7926 (fax) (616) 776-7573 (fax)

Broker and Mortgage Services Harry S. Ellman Howard A. Lax Fidelity Title Company Howard & Howard 32100 Telegraph Road, Suite 215 1400 N. Woodward Avenue, #101 Bingham Farms, MI 48025 Bloomfield Hills, MI 48304 (810) 642-1115 (tel) (810) 433-7326 (tel) (810) 642-0935 (fax) (810) 645-1568 (fax) Commercial Leasing and Robert A. Berlow James N. Candler, Jr. Management of Real Estate Dennis Gannan Dickinson, Wright, Moon, Dykema Gossett Van Dusen & Freeman Suite 300 One Detroit Center, Suite 4000 1577 N. Woodward Avenue 500 Woodward Avenue Bloomfield Hills, MI 48304-2820 Detroit, MI 48226 (810) 540-0771 (tel) (313) 223-3513 (tel) (810) 540-2820 (fax) (313) 223-3598 (fax) Condominiums, PUDs and Jeffery R. Jones Gail A. Anderson Cooperatives Jeffery R. Jones, P.C. Dickinson, Wright, Moon, Suite 100 Van Dusen & Freeman 28535 Orchard Lake 215 S. Washington Sq., Ste. 200 Farmington Hills, MI 48334 Lansing, MI 48933-1812 (810) 488-0022 (tel) (517) 487-4767 (tel) (810) 488-0486 (fax) (517) 487-4700 (fax) Construction Lawrence M. Dudek Michael W. Maddin Miller, Canfield, Paddock & Maddin, Hauser, Wartell, Roth, Stone Heller & Pesses, P.C. 150 W. Jefferson, Suite 2500 3rd Floor, Essex Centre Detroit, MI 48226 28400 Northwestern Highway (313) 963-6420 (tel) Southfield, MI 48034-1839 (313) 496-8451 (fax) (810) 827-1880 (tel) (810) 354-1422 (fax) Winter, 1995 -- Page 272 MICHIGAN REAL PROPERTY REVIEW

SPECIAL COMMITTEES (continued)

Decisions Joseph A. Lloyd Robert A. Berlow Chard & Lloyd Dykema Gossett 201 E. Washington Suite 300 Ann Arbor, MI 48104-2007 1577 N. Woodward Avenue (313) 668-1522 (tel) Bloomfield Hills, MI 48304 (313) 665-411~ (fax) (810) 540-0771 (tel) (810) 540-2820 (fax)

Eminent Domain Frederick D. Steinhardt David W. Berry Mason, Steinhardt, Jacobs & Butzel Long Perlman, P.C. 32270 Telegraph Rd., Ste. 200 4000 Town Center, Suite 1500 Birmingham, MI 48025-2457 Southfield, MI 48075 (810) 258-1414 (tel) (810) 358-2090 (tel) (810) 258-1439 (fax) (810) 358-3599 (fax)

Environmental Law and Gary A. Trepod Lawrence D. McLaughlin Energy Law Honigrnan Miller Schwartz and Honigman Miller Schwartz and Cohn Cohn 222 N. Washington Sq., Ste. 400 2290 First National Building Lansing, MI 48933 Detroit, MI 48226 (517) 484-8285 (tel) (313) 256-7620 (tel) (517) 484-8286 (fax) (313) 962-0176 (fax)

Federal Tax Aspects of Real William B. Acker Sheldon P. Winkelman Estate Transactions Kemp, Klein, Umphrey & Honigman Miller Schwartz and Endelman, P.C. Cohn 201 W. Big Beaver Rd., Ste. 600 2290 First National Building P.O. Box 4300 Detroit, MI 48226 Troy, MI 48099-4300 (313) 256-7224 (tel) (810) 528-1111 (tel) (313) 962-0176 (fax) (810) 528-5129 (fax)

Legislation Gregory L. McClelland Willard G. Moseng Dickinson, Wright, Moon, Michigan State Housing Van Dusen & Freeman Development Authority 215 S. Washington Sq., Ste. 200 401 S. Washington Square Lansing, MI 48933-1812 P.O. Box 30044 (517) 371-1730 (tel) Lansing, MI 48909 (517) 487-4700 (fax) (517) 373-8295 (tel) (517) 373-2450 (fax) MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 273

SPECIAL COMMITTEES (continued)

Mortgages & Related Financing V~ilfred A. Steiner, Jr. William B. Acker Devices and Security Agreements Dykema Gossett Kemp, Klein, Umphrey & 400 Renaissance Center Endelman, P.C. Detroit, MI 48243-1504 Suite 600 (313) 568-6924 (tel) 201 W. Big Beaver Rd. (313) 568-6701 (fax) P.O. Box 4300 Troy, MI 48099-4300 (810)528-1111 (tel) (810) 528-5129 (fax) Partnerships, Joint Ventures & Leslie Banas Michael W. Maddin Other Investment Vehicles Honigman Miller Schwartz and Maddin, Hauser, Wartell, Roth Cohn Heller & Pesses, P.C. 2290 First National Building 3rd Floor, Essex Centre Detroit, MI 48226 28400 Northwestern Highway (313) 256-7604 (tel) Southfield, MI 48034-1839 (313) 962-0176 (fax) (810) 827-1880 (tel) (810) 354-1422 (fax) Professional Responsibility William C. Roush Vicki R. Harding Dykema Gossett Pepper, Hamilton & Scheetz 1577 N. Woodward Avenue #300 36th Floor Bloomfield Hills, MI 48304-2820 100 Renaissance Center (810) 540-0816 (tel) Detroit, MI 48243-1157 (810) 540-0763 (fax) (313) 393-7324 (tel) (313) 259-7926 (fax) Residential Transactions Mary M. Fowlie Reuben A. Munday Standard Federal Bank Lewis White & Clay 2600 W. Big Beaver Road 1300 First National Building Troy, MI 48084-3323 Detroit, MI 48226 (810) 643-9600 (tel) (313) 961-2550 (tel) (810) 637-2768 (fax) (313) 961-1270 (fax) Gregg. A. Nathanson Couzens, Lansky, Fealk, Ellis, Roeder & Lazar, P.C. Suite 150 33533 W. Twelve Mile Road Farmington Hills, MI 48333-9507 (810) 489-8600 (tel) (810) 489-4156 (fax) Winter, 1995 -- Page 274 MICHIGAN REAL PROPERTY REVIEW

SPECIAL COMMITTEES (continued)

State and Local Taxation Joanne B. Faycurry Jack D. Shumate Miller, Canfield, Paddock & Butzel Long Stone 150 W. Jefferson, Suite 900 150 W. Jefferson, Suite 2500 Detroit, MI 48226-4430 Detroit, MI 48226 (313) 225-7075 (tel) (313) 963-6420 (tel) (313) 225-7080 (fax) (313) 496-8451 (fax)

Titles and Conveyancing Margaret A. Meyers Denise J. Lewis Michigan State Housing Honigrnan Miller Schwartz and Development Authority Cohn 401 S. Washington Square 2290 First National Building P.O. Box 30044 Detroit, MI 48226 Lansing, MI 48909 (313) 256-7828 (tel) (517) 335-2036 (tel) (313) 962-0176 (fax) (517) 373-2450 (fax)

Water Law Anne H. Hiemstra Ronald T. Barrows Miller, Canfield, Paddock & Barrows & Associates Stone P.O. Box 36958 150 W. Jefferson, Suite 2500 Grosse Pointe, MI 48226-0958 Detroit, MI 48226 (313) 824-4040 (tel) (313) 496-8437 (tel) (313) 824-7474 (fax) (313) 396-8450 (fax)

Zoning and Land Use Susan K. Friedlaender C. Robert Wartell Butzel Long Maddin, Hauser, Wartell, Roth, 32270 Telegraph Road, Suite 200 Heller & Pesses, P.C. Birmingham, MI 48025-2457 3rd Floor, Essex Centre (810) 258-1402 (tel) 28400 Northwestern Highway (810) 258-1439 (fax) Southfield, MI 48034-1839 (810) 827-1881 (tel) (810) 354-1422 (fax) MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 275

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CUMULATIVE ARTICLE INDEX

ABSTRACTS OF TITLE vs INSURANCE-- WHICH SHOULD YOU RECOMMEND TO YOUR CLIENT?. -- by Allen E. Priestley- August, 1974, p. 3. ACTIONS TO QUIET TITLE UNDER MICHIGAN LAW -- by Samuel J. Behringer, Jr. m February, 1975, p. 16. ALCAN AND BELL PETROLEUM: THE FEDERAL COURTS RECONSIDER JOINT AND SEVERAL LIABILITY IN SUPERFUND CASES m by Jack D. Shumate -- Summer, 1994, p. 81. ALTA TITLE POLICY FORMS: 1987 REVISIONS -- by Ronald E. Hodess -- Spring, 1988, p. 39. ALTERNATIVE THEORIES FOR RECOVERY OF CONSTRUCTION CLAIMS -- by Clifford J. DeVine and Dana I. Avrunin- Fall, 1985, p. 168. THE AMENDED SAND DUNES PROTECTION AND MANAGEMENT ACT: DNR GETS SOME POTENTIAL NEW ALLIES ~ by Michael F. Skinner -- Fall, 1990, p. 129. AN ANALYSIS OF THE CONSOLIDATED MORTGAGE DECISION -- by Thomas L. Griem ~ April, 1977, p. 14. ANALYSIS OF CONSTRUCTION SUBCONTRACT AGREEMENTS -- by Clifford J. DeVine -- Summer, 1989, p. 67. AN ANALYSIS OF MICHIGAN’S NEW USURY STATUTES ~ by James Marshall ~ June, 1980, p. 86. AN ANALYSIS OF A "PHENOMENON" ~ SITE CONDOMINIUM PROJECTS -- by Mark F. Makower and Jeffery R. Jones ~ Winter, 1989, p. 241. ANALYSIS OF PRIORITY CLAIMS UNDER THE MICHIGAN BUILDERS TRUST FUND ACT IN THE BANKRUPTCY SETTING -- by Clifford J. DeVine and Ronald P. Strote -- Summer, 1986, p. 39. ANALYSIS OF SUBDIVISION CONTROL ACT OF 1967 ~ by Joseph J. Goluban -- August, 1978, p. 2. ANALYZING LEASE TAX CLAUSES IN RESPONSE TO POTENTIAL TAX RESTRUCTURING-- by Alan M. Hurvitz and Kenneth F. Posner -- Summer, 1994, p. 61. ANATOMY OF AN OIL AND GAS LEASE ~ by Lawrence M. Elkus w Summer, 1983, p. I00. ANOTHER ACRONYM COMES OF AGE, OR WILL FIRPTA’S NEW WITHHOLDING REQUIREMENTS FREEZE FOREIGN INVESTMENT IN THE UNITED STATES? ~ by Kaplin Jones and Nyal Deems ~ Summer, 1985, p. 29. APPELLATE COURT OVERTURNS EPA’S LENDER LIABILITY RULE -- by Peter D. Holmes m Summer, 1994, p. 87. APPLICATION OF CHANGES IN COST RECOVERY AND REHABILITATION CREDITS UNDER THE 1981 ECONOMIC RECOVERY TAX ACT TO A REAL ESTATE PROJECT -- by Michael J. Brenner and Mark L. Robinson- October, 1982, p. 215. ASBESTOS AND CONSTRUCTIVE EVICTION: DETERMINING A STANDARD OF FITNESS FOR LEASEHOLDS -- by Lawrence R. Shoffner ~ Spring, 1989, p. 11. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 279

ASSESSING SUBSIDIZED APARTMENTS: CONGRESSHILLS APARTMENTS I AND II -- by Thomas J. Beale -- Summer, 1984, p. 335. ASSIGNMENTS OF RENTS IN BANKRUPTCY UNDER MICHIGAN LAW -- by Julia Goatley Moreno and Laura J. Eisele- Winter, 1992, p. 137. ATTORNEY FEES IN CONDEMNATION CASES -- by Walter B. Mason, Jr. and Frederick D. Steinhardt -- Fall, 1986, p. 73. BANK BOARD FINAL REGULATIONS FOR DUE-ON-SALE UNDER GARN-ST. GERMAINE ACT -- by William B. Dunn- Summer, 1983, p. 90. BANKRUPTCY "CRAMDOWN": MORTGAGE FINANCING OF LAST RESORT -- by Vicki R. Harding -- Spring, 1993, p. 23. BANKRUPTCY REFORM ACT OF 1994: HOW THE RULES HAVE CHANGED -- by Vicki R. Harding -- Spring, 1995, p. 13. BANKRUPTCY v ASSIGNMENT OF RENTS: A CASE TO BE DECIDED -- by Michael E. Baum -- Spring, 1992, p. 7. THE BUILDER’S TRUST FUND ACT ~ by Andrew A. Paterson, Jr. -- December, 1976, p. 3. THE BUILDER’S TRUST FUND ACT -- REVISITED -- by Andrew A. Paterson, Jr. n February, 1979, p. 22. BUILDING OWNERS BEWARE: OSHA EXTENDS ITS REACH -- by James A. Gray, III -- Winter, 1995, p. 231. BURDEN OF PROOF, RANGE OF TESTIMONY AND APPELLATE REVIEW IN CONDEMNATION PROCEED- INGS n by Allan T. Ackerman and Gregory A. Buss ~ Winter, 1991, p. 155. BUYER BROKERING -- CHANGING SOME OF THE RULES IN RESIDENTIAL REAL ESTATE TRANSACTIONS -- by Gregory L. McClelland, Gall A. Anderson and Paula Ao Charland ~ Fall, 1991, p. 113. THE CASE FOR PROMPT PAY LEGISLATION FOR PRIVATE CONSTRUCTION PROJECTS ~ Summer, 1995, p. 103. CHECKLIST FOR PROCEEDINGS BEFORE MICHIGAN TAX TRIBUNAL -- by Leo Goldstein and Donald M. Lansky- August, 1978, p. 35. CITIZEN SUITS UNDER THE CLEAN WATER ACT -- GWALTNEY MUDDLES THE WATERS -- by Peter D. Holmes m Spring, 1989, p. 17. CLARIFICATION OF DOWER RIGHTS UNDER THE REVISED PROBATE CODE -- by Ralph Jossman m April, 1981, p. 29. CLOGGING THE EQUITY -- by John C. Murray -- October, 1981, p. 132. COMMENDING THE PLANNED UNIT DEVELOPMENT ~ by Gerald A. Fisher -- Summer, 1983, p. 61.

A COMMENTARY UPON AND CRITIQUE OF ACT 351, PUBLIC ACTS OF 1984: MICHIGAN’S ANSWER TO FEDERAL PREEMPTION OF STATE LAW GOVERNING ENFORCEABILITY OF DUE-ON-SALE CLAUSES -- by William B. Dunn -- Summer, 1985, p. 80. COMMERCIAL LEASES: EFFECT OF LANDLORD’S BREACH ON TENANT’S OBLIGATION TO PAY RENT N by Lawrence Shoffner -- Summer, 1990, p. 75. COMMON OIL AND GAS TERMS -- by David A. Lawler -- Summer, 1983, p. 96. Winter, 1995 -- Page 280 MICHIGAN REAL PROPERTY REVIEW

COMPETING PRIORITY CLAIMS UNDER THE MICHIGAN BUILDER’S TRUST FUND ACT -- by Stanley M. Weingarden and Clifford J. DeVine -- Summer, 1983, p. 70. CONDO DEREGULATION ARRIVES -- COMPLETE WITH QUESTIONS -- by Jeffery R. Jones and James P. Babcock -- Spring, 1983, p. 42. THE CONDOMINIUM ACT REVISITED -- TEN YEARS AFTER "DEREGULATION" -- by Mark F. Makower-- Fall, 1993, p. 125. CONDOMINIUM ASSOCIATIONS GET A BREAK -- OR DO THEY? -- by Steve Sowell -- Winter, 1995, p. 235. CONDOMINIUM DEREGULATION ACT CLARIFIED -- by Jeffery R. Jones, Paul L. Nine and James P. Babcock ~ Fall, 1983, p. 182. CONDOMINIUM DEREGULATION IN MICHIGAN ~ by James P. Babcock and Jeffery R. Jones -- August, 1982, p. 157. CONDOMINIUM SUBDIVISION PLAN ~ A PRACTITIONER’S CHECKLIST - by Jeffery R. Jones -- Fall, 1992, p. 115. CONDOMINIUMS: HASSLE OR CASTLE -- by Earl I. Sherman -- December, 1980, p. 172. CONSIDERATION OF ENVIRONMENTAL ISSUES WITHIN A CONDEMNATION PROCEEDING -- by Richard A. Barr and Jerome P. Pesick -- Fall, 1994, p. 153. CONSTITUTIONALITY OF TAX INCREMENT FINANCING LEGISLATION UPHELD IN ADVISORY OPINION ON CONSTITUTIONALITY OF 1986 PA 281 ~ by Kester K. So -- Spring, 1989, p. 31. THE CONSTRUCTION CONTRACT REVISITED: KEY CONTRACT CLAUSES -- by Ronald P. Strote ~ Summer, 1990, p. 87. CONSTRUCTION LIENS IN MICHIGAN ~ OWNER’S OR INSURER’S RISK? -- by Stephanie M. Zimmerman -- Spring, 1995, p. 25. CONVENIENCE AT QUALITY’S EXPENSE: BEWARE OF THE FORM LEASE! -- by Sean M. Carty -- Spring, 1993, p. 33. COVENANTS AND PRIVITY: A NEW PERSPECTIVE ~ by Willard G. Moseng and Clarence L Stone, Jr. -- Spring, 1991, p. 7. COVERTURE’S LAST STAND: THE MARRIED WOMAN’S LACK OF CONTRACTUAL CAPACITY IN MICHIGAN ~ by George D. Cameron, III ~ June, 1981, p. 75. CURING TITLE OF AN UNRELEASED OIL AND GAS LEASE -- by David A. Lawler -- Fall, 1984, p. 417. CURRENT DEVELOPMENTS IN MICHIGAN ENVIRONMENTAL LAW-- by Joseph M. Polito -- Fall, 1985, p. I 13. CURRENT ISSUES CONCERNING THE UNAUTHORIZED PRACTICE OF LAW IN CONNECTION WITH MICHIGAN REAL ESTATE TRANSACTIONS -- by J. Patrick Martin and Mark W. Cherry -- Winter, 1990, p. 163. DAMAGES FOR UNLAWFUL EVICTION -- by N. O. Stockmeyer, Jr. ~ Fall, 1994, p. 157. DEDUCTION OF "PRE-OPENING" EXPENSES -- by Andrew M. Barbas and Jonathan M. Kurtzrnan -- Summer, 1983, p. 77. THE DESCENT AND DISTRIBUTION OF PROPERTY WHEN THE OWNER DOES NOT MAKE A WILL-- by Allen E. Priesfley -- Spring, 1983, p. 37. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 281

DETERMINING REASONABLE ATTORNEY FEES UNDER THE UCPA: COMMENTS ON DEPARTMENT OF TRANSPORTATION v D&T CONSTRUCTION COMPANY -- by Patrick-F. Isom -- Fall, 1995, p. 191. DETERMINING THE AMOUNT OF PARTNERSHIP DEBT INCLUDABLE IN A PARTNER’S BASIS UNDER THE NEW REGULATIONS -- by Richard S. Soble -- Fall, 1989, p. 161. DEVELOPMENTS IN REAL PROPERTY LAW: 1982-83 -- by Stephen A. Bromberg and Jeffrey R. Kravitz -- Winter, 1983, p. 217. DORMANT MINERAL ACT HELD CONSTITUTIONAL -- by Allen E. Priesfley -- June, 1981, p. 80. THE EFFECT OF THE AUTOMATIC STAY PROVISIONS OF THE BANKRUPTCY REFORM ACT OF 1978 ON THE STATUTORY RIGHT OF REDEMPTION -- by Wallace M. Handler -- October, 1982, p. 211. THE EFFECT OF THE BANKRUPTCY AMENDMENTS AND FEDERAL JUDGESHIP ACT OF 1984 ON THE REAL ESTATE PRACTITIONER -- by Louis P. Rochkind and Jay L. Welford m Fall, 1984, p. 442. EFFECT OF BANKRUPTCY ON NON-RESIDENTIAL REAL ESTATE LEASES -- by Lisa Sommers Gretchko -- Winter, 1992, p. 157. EMINENT DOMAIN LAW FOR THE GENERAL PRACTITIONER -- by David W. Berry and Clara DeMatteis Mager --Winter, 1989, p. 233. ENFORCEABILITY ON DUE-ON-SALE CLAUSES: THE NICHOLS AND KEMPF DECISIONS -- by Stephen G. Palms- April, 1977, p. 2. ENTIRETIES PROPERTY: CERTAINLY UNSETTLING NEWS -- by John S. Regan -- Spring, 1995, p. 39. ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE -- by Jack D. Shumate ~ Summer, 1985, p. 87. THE ENVIRONMENTAL PERILS OF LAND OWNERSHIP m by Jack D. Shumate -- Summer, 1985, p. 92. ENVIRONMENTAL RISK ASSESSMENT FOR REAL ESTATE TRANSACTIONS -- by James M. Harless -- Winter, 1987, p. 81. ETHICS IN REAL ESTATE LAW -- by William C. Roush -- Fall, 1994, p. 109. EVERYTHING YOU EVER WANTED TO KNOW BUT WERE AFRAID TO ASK ABOUT ORIGINAL ISSUE DISCOUNT (OID) AND IMPUTED INTEREST ~ by Mark L. Robinson and Warren J. Ligan ~ Fall, 1986, p. 77. EVICTION IN MICHIGAN: DRAFTING AND PLANNING TECHNIQUES TO ENHANCE THE LANDLORD’S PosmoN -- by Lawrence R. Shoffner -- Summer, 1988, p. 89. EXCHANGE REAL ESTATE AND SAVE TAX: RECENT DEVELOPMENTS CLARIFY PRACTICE APPLICATIONS -- by William B. Acker ~ Winter, 1994, p. 195. EXEMPTIONS FROM FEDERAL REGISTRATION FOR REAL ESTATE LIMITED PARTNERSHIPS ~ by Sheldon P. Winkelman and C. Leslie Banas ~ December, 1977, p. 20. EXPANDED APPLICATION OF BUILDER’S TRUST FUND ACT-- by Stanley M. Weingarden ~ April, 1980, p. 46. EXPANDED REAL ESTATE REPORTING REQUIREMENTS IMPACT MANY REAL ESTATE TRANSACTIONS -- by William B. Acker -- Summer, 1991, p. 69. FARMLAND AND OPEN SPACE PRESERVATION ACT ~ Act 116, P.A. 1.974 w by Dennis A. Conway-- February, 1975, p. 8. FARMOUT AGREEMENTS IN THE OIL AND GAS INDUSTRY -- by William H. Stephens -- Fall, 1984, p. 421. Winter, 1995 -- Page 282 MICHIGAN REAL PROPERTY REVIEW

FEDERAL AND MICHIGAN LAW CHANGES AFFECTING PRIVATE PURPOSE TAX-EXEMPT FINANCING, TAX INCREMENT FINANCING AND SPECIAL ASSESSMENTS -- by James W. Bliss, Donald W. Kein, Mitchell R. Meisner, Timothy D. Sochocki and Thomas V. Yates -- Winter, 1987, p. 51. FEDERAL AND MICHIGAN TAX ASPECTS OF REAL ESTATE PARTNERSHIP WORKOUTS AND FORECLOSURES -- by dohn J. Grant and William B. Acker -- Winter, 1991, p. 147. FEDERAL AND MICHIGAN TAX ASPECTS OF REAL ESTATE PARTNERSHIP WORKOUTS AND FORECLOSURES ~ by John J. Grant and William B. Acker ~ Fail, 1992, p. 103. FEDERAL LEAD-BASED PAINT DISCLOSURE REQUIREMENTS ARE JUST AROUND THE CORNER ~ by Gregg A. Nathanson -- Summer, 1995, p. 93. FEDERAL PREEMPTION OF STATE USURY CEILINGS UNDER PUBLIC LAW 96-161 -- by Robert H. danover --June, 1980, p. 76. FEDERAL REGULATION OF RIPARIAN RIGHTS -- by Kevin T. Smith ~ Fall, 1994, p. 147. FIRST AID FOR THE BUYER - REMEDIES FOR THE PURCHASE OF CONTAMINATED PROPERTY -- by John D. Dunn ~ Winter, 1987, p. 87. FIRST MORTGAGE INTEREST RATE ON RESIDENTIAL REAL PROPERTY IN MICHIGAN ~ by Patrick D. Hanes ~ August, 1982, p. 169. FIXTURES, FILINGS AND REAL ESTATE MORTGAGES UNDER THE 1972 AMENDMENTS TO THE UCC -- by Asher Rabinowitz and Stanley B. Bemstein ~ April, 1978, p. 2. THE FOLLIES OF MODERN ARCHITECTURE -- by Peter Blake -- August, 1975, p. 17. FORFEITURE UNDER LAND CONTRACTS: TO POSSESS OR NOT TO POSSESS -- by Alan M. Oravec ~ February, 1981, p. 2. THE FORTY YEAR MARKETABLE TITLE ACT -- AFTER FORTY YEARS -- by Ralph Jossman -- Fall, 1986, p. 82. THE 40 YEAR MARKETABLE TITLE ACT: RESTRICTIONS OF RECORD REDUX -- by Clarence L. Stone, Jr. and Willard G. Moseng -- Spring, 1992, p. 17. FRAUDULENT PUBLIC WORKS BONDS: NO RIGHT, NO REMEDY -- by Sheryl A. Collins -- Summer, 1992, p. 53. FROM FEE SIMPLE TO FEE COMPLEX -- by Ralph Jossman -- Winter, 1985, p. 183. FUTURE ADVANCE MORTGAGES ACT: TO AMEND OR NOT TO AMEND? -- by Vicki R. Harding -- Winter, 1991, p. 139. GARN-ST. GERMAINE AND DUE-ON-SALE CLAUSES IN MICHIGAN -- by Timothy A. Fusco -- December, 1982, p. 275. THE GENERAL PROPERTY TAX AS IT PERTAINS TO INTERESTS IN OIL AND GAS -- by J. Donel Moore -- Fall, 1991, p. 91. A GUIDE TO THE SECURITY DEPOSITS ACT OF 1973 -- by Harold D. Hood -- October~ 1974, p. 9. HAS MY OIL AND GAS LEASE EXPIRED? THE HABENDUM CLAUSE -- by T. T. Thompson -- Summer, 1983, p. 113. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 283

HEAD START vs. F.RESH START: WHEN WILL THE ABUSES STOP? -- by Robert S. Hertzberg and Michael J. Ryan- Spring, 1986, p. 13. HIGHLIGHTS OF THE NEW MICHIGAN CONDOMINIUM ACT-- by Essel W. Bailey, William T. Myers and Robert L. Nelson- June, 1978, p. 2. HOME CONSTRUCTION -- by John W. Steckling -- Summer, 1984, p. 366. HOMEOWNER CONSTRUCTION LIEN RECOVERY FUND -- by Dayna Milbrand -- Summer, 1984, p. 339. HOTEL REVENUES AS CASH COLLATERAL IN BANKRUPTCY CASES -- ARE HOTEL REVENUES PERSONAL PROPERTY OR REAL PROPERTY? -- by Douglas L. Lutz -- Fall, 1993, p. 119. HOW TO AVOID GRIEVANCES IN REAL ESTATE PRACTICE -- by Michael Alan Schwartz -- Winter, 1984, p. 482. IMPACT OF BANKRUPTCY REFORM ACT ON REAL ESTATE MORTGAGES ~ by Peter A. Nathan and Stuart E. Hertzberg ~ April, 1979, p. 2. THE IMPACT OF LUCAS v SOUTH CAROLINA COASTAL COUNCIL ON MICHIGAN’S WETLAND ACT -- by David W. Berry and Susan K. Friedlander -- Winter, 1992, p. 177. IMPACT OF THE NEW RULES OF PROFESSIONAL RESPONSIBILITY ON REAL ESTATE LAWYERS -- by J. Patrick Martin and Mark W. Cherry -- Fall, 1989, p. 173. IMPACT OF NORTHRUP AND DOW ON FORECLOSURE BY ADVERTISEMENT ~ by George E. Pawloski -- April, 1977, p. 11. THE IMPACT OF PARTNERSHIP DISSOLUTION WITH RESPECT TO CLAIMS UNDER A POLICY OF TITLE INSURANCE -- by James F. Airman -- Summer, 1993, p. 69. IMPLIED COVENANT OF REASONABLE DEVELOPMENT -- by Deborah L. Bruce -- Winter, 1993, p. 181. IMPLIED COVENANTS OF EXPLORATION AND DEVELOPMENT IN OIL AND GAS LEASES -- by James R. Brown -- Fall, 1984, p. 391. IMPUTING THE MISDEEDS OF ONE PARTNER TO ANOTHER PARTNER UNDER THE BANKRUPTCY CODE -- by Michael I. Conlon -- Winter, 1994, p. 203. INDEPENDENT PROBATE -- by Ralph Jossman -- April, 1979, p. 10. INFORMATIONAL REQUIREMENTS FOR SMALL REAL ESTATE PRIVATE OFFERINGS -- by Gail A. Berry -- Spring, 1984, p. 303. INSURANCE AND THE STANDARD FORM OF COMMERCIAL LEASE ~ by Michael W. Maddin and Ian D. Pesses --Summer, 1984, p. 350. INSURING TITLE TO RIPARIAN OR LITTORAL PROPERTY -- by J. Bushnell Nielsen ~ Spring, 1990, p. 11. INTERESTS ARISING UNDER AN OIL AND GAS LEASE -- by T. T. Thompson ~ Fall, 1984, p. 386. INTERPRETATION: RULES IMPLEMENTING HOME PURCHASE CREDIT -- July, 1975, p. 73. THE INTERRELATION BETWEEN THE FEDERAL AND MICHIGAN LAND SALES ACTS -- by Duane E. Burgess ~ June, 1979, p. 2. AN INTRODUCTION TO TIME-SHARING CONDOMINIUMS UNDER THE MICHIGAN CONDOMINIUM ACT ~ by Mark S. Keegan -- August, 1982, p. 164. Winter, 1995 -- Page 284 MICHIGAN REAL PROPERTY REVIEW

IOLTA UPDATE -- by Linda K. Rexer -- Fall, 1987, p. 32. ISTHERE POSSESSION AFTER FORFEITURE? -- by Thomas W. Hall, Jr. and Diane M. Kuhn -- Spring, 1993, p. 29. A JUDICIAL CHALLENGE TO STATUTORY FORECLOSURE -- by James W. Draper -- June, 1974, p. 4. THE JURISDICTIONAL TIME PERIODS AND PREREQUISITES FOR FILING AND AMENDING PETITIONS BEFORE THE MICHIGAN TAX TRIBUNAL -- by Robert E. McCarthy -- Fall, 1987, p. 27. KROPF REVISITED: SOMETHING NEW IN MICHIGAN LAW u by Avern Cohn -- December, 1974, p. 13. KROPF v CITY OF STERLING HEIGHTS: A CHANGE IN dUDICIAL REVIEW OF ZONING -- dune, 1974, p. 13. LABOR AND MATERIAL PAYMENT BONDS: AN OOERVIEW -- by Ronald P. Strote -- Summer, 1988, p. 101. THE LAND CONTRACT CONDOMINIUM PURCI--L~SER -- THE DISENFRANCHISED OWNER -- by dohn A. Stevens- February, 1982, p. 3. LAND CONTRACT INTERESTS AS COLLATERAL -- by Laurence D. Rich -- Winter, 1993, p. 185. LAND CONTRACTS IN BANKRUPTCY: TERRELL REVISITED -- by Robert A. Hendricks and doan Schleef -- Summer, 1991, p. 57. LAND TITLE STANDARDS, FIFTH EDITION -- by Russell A. McNair -- Fall, 1992, p. 111. LAND TITLE STANDARDS UPDATE -- by Andrew Cooke -- February, 1977, p. 2. LANDLORD LIABILITY FOR CRIMINAl.. ACTS OF THIRD PARTIES ~ by Michael W. Maddin and Mark H. Fink w Spring, 1990, p. 43. LANDLORD-TENANCY PROCEEDINGS -- by David S. Snyder -- December, 1974, p. 17. LANDLORD-TENANT LAW IN DETROIT: THE COURT AND LEGAL AID -- by Ramsey A. Gregory and Lavail Hull ~ August, 1974, p. 7. THE LANDLORD’S LIABILITY FOR INdURIES ON THE PREMISES -- by dames Marshall -- August, 1981, p. 108. THE LAW OF FUTURE ADVANCE MORTGAGES AND THE USE OF LETTERS OF CREDIT IN FINANCING THE CONSTRUCTION OF CONDOMINIUMS -- by William S. Fambrough -- December, 1979, p. 2. THE LAW OF MUTUAL MISTAKE AND LENAWEE: SHOULD MICHIGAN ABANDON ROSE 2nd OF ABERLONE? -- by George D. Cameron, II1 -- Spring, 1984, p. 315. THE LAW OF PREMISES LIABILITY -- by dames Marshall -- December, 1977, p. 27. THE LAWYER’S JOB AT A REAL ESTATE CLOSING -- by Norbert d. Podgorski -- August, 1974, p. 2. LEGAL RATES OF INTEREST -- by Dick Philleo -- duly, 1975, p. 10. THE LEGAL RIGHTS OF THE PUBLIC IN THE FORESHORES OF THE GREAT LAKES -- by Diana V. Pratt ~ Winter, 1983, p. 237. LENDER LIABILITY: THE DONE DEAL? ~ by dohn E. Anding ~ Winter, 1988, p. 259. LENDER LIABILITY: SHOULD LENDERS CARE ABOUT "DUE CARE"? -- by dames L. Allen ~ Summer, 1989, p. ’83. LIEN CLAIMANTS AND NON-TITLEHOLDERS, LESSEES AND LAND CONTRACT PURCHASERS: NEW ACT, OLD PROBLEMS -- by E. Peter Drolet and Ronald P. Strote -- Summer, 1984, p. 345. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 285

LIMITATIONS ON THE LESSEE’S USE OF THE POOLING CLAUSE m by David A. Lawler and Richard D. Moritz --Summer, 1986, p. 49. LIMITED PARTNERSHIP REAL ESTATE SYNDICATIONS -- SECURITIES LAW COMPLIANCE m by Lawrence S. Schultz ~ October, 1975, p. 7. LOCAL ASSESSORS RECEIVE A BELATED CHRISTMAS PRESENT: ACT 415 REQUIRES THE SUBMISSION OF VALUATION DATA -- by Gaff A. Anderson, James M. Marquardt and Michael W. Maddin -- Spring, 1995, p. 5. THE LOCAL DEVELOPMENT FINANCE AUTHORITY ACT OF 1986 - MORE TAX INCREMENT FINANCING IN MICHIGAN -- by Fred M. Woodruff -- Summer, 1987, p. 6. LOW-INTEREST MORTGAGES THROUGH LOCAL MUNICIPALITIES ~ by Charles L. Burleigh, Jr. -- December, 1977, p. 2. MADHAVEN v SUCHER-REvISrrED ~ by Jeffrey B. Larkin -- Spring, 1983, p. 35. MAKING CLAIMS ON TITLE POLICIES -- by Alan A. Knox -- August, 1981 ~ p. 119. MARINA CONDOMINIUMS OR "DOCKOMINIUMS" ~ by C. Peter Theut and James Y. Stewart -- Spring, 1990, p. 17. MARKETABLE TITLE TO THE CONDOMINIUM -- by Asher N. Tilchin ~ Winter, 1990, p. 173. MECHANIC’S LIEN LAW UPDATE -- by Robert S. Bolton ~ June, 1977, p. 2. MECHANIC’S LIEN LAW UPDATE -- by Robert S. Bolton -- October, 1978, p. 11. MECHANIC’S LIENS AND RESIDENTIAL BUILDERS’ LICENSES ~ by Gary A. Trepod -- April, 1980, p. 52. THE MENNONITE DECISION -- by Allen E. Priestley -- Winter, 1983, p. 249. METES AND BOUNDS DESCRIPTIONS -- by John S. Hoag -- December, 1975, p. 7. THE MICHIGAN BUILDERS TRUST FUND ACT: AN OVERLOOKED REMEDY? -- by Daniel M. Morley-- Spring, 1994, p. 13. MICHIGAN COURT OF APPEALS INTERPRETS THE ASSIGNMENT OF RENTS STATUTE -- by James R. Cambridge and Partick J. Haddad -- Fall, 1994, p. 161. MICHIGAN COURTS PAINT WITH A BROAD BRUSH IN RECENT ZONING CASES ~ by Gerald A. Fisher~ Summer, 1986, p. 45. THE MICHIGAN DORMANT MINERALS ACT -- by James R. Brown m Summer, 1983, p. 116. THE MICHIGAN HOMEOWNERS’ ASSOCIATIVE AND ARCHITECTURAL CONTROL ~ by William J. Perrone ~ February, 1979, p. 2. MICHIGAN HOUSING CODE CLAIMS AND DEFENSES DURING EVICTION -- by Michael G. Slaughter-- Winter, 1986, p. 115. THE MICHIGAN LAND SALES ACT: A NEW ERA OF VENDEE PROTECTION -- by Kenneth W. Schmidt -- August, 1974, p. 13. MICHIGAN LAND TrrLE STANDARDS ~ by Myron Winegarden ~ August, 1975, p. 13. MICHIGAN LAND TrrLE STANDARDS, FOURTH EDmON -- by Ralph Jossman ~ Spring, 1983, p. 30. Winter, 1995 -- Page 286 MICHIGAN REAL PROPERTY REVIEW

MICHIGAN LAND TITLE STANDARDS: 1978 SUPPLEMENT -- by Ralph Jossman -- February, 1978, p. 2. THE MICHIGAN LIMITED LIABILITY ACT: NEW OPPORTUNITIES FOR MICHIGAN BUSINESSES -- by William B. Acker and Gary Schwarcz-- Fall, 1993, p. 109. MICHIGAN REAL ESTATE MALPRACTICE -- A 1992 UPDATE -- by William C. Roush -- Winter, 1992, p. 167. MICHIGAN REAL ESTATE MALPRACTICE 1995 -- by William C. Roush -- Summer, 1995, p. 73. MICHIGAN REGISTERS OF DEEDS PRACTICE ~ by Willard G. Moseng -- Summer, 1989, p. 91. MICHIGAN SOIL EROSION AND SEDIMENTATION CONTROL ACT OF 1972 ~ by Edward B. Stulberg -- February, 1975, p. 12. MICHIGAN STATUTORY INTEREST RATE CEILINGS IMPOSED BY STATE LAW ~ February, 1982, p. 10. THE MICHIGAN TRUTH-IN-RENTING ACT ~ by Edward C. Dawda -- April, 1979, p. 20. MICHIGAN WETLAND PROTECTION ACT: THE STATE’S PERSPECTIVE ~ by John Amsman and Steve Sadewasser- Spring, 1990, p. 23. MICHIGAN’S NEW CONSTRUCTION LIEN ACT--by Robert S. Bolton, Patrick D. Hanes, A. Dearie Malaker, Peter A. Nathan, Richard W. Pennings, and Stanley M. Weingarden ~ April, 1982, p. 41. MICHIGAN’S NEW SELLER DISCLOSURE ACT: SELLER BEWARD ~ by Gregg A. Nathanson ~ Summer, 1994, p. 71. MICHIGAN’S NEW STATUTE ON MARRIED WOMEN’S CONTRACTUAL CAPACITY: THE END OF COVERTURE? ~ by George D. Cameron, III -- December, 1982, p. 280. MICHIGAN’S PROPERTY TAX "CAP" ~ NOT AS SIMPLE AS IT SOUNDS -- by Samuel J. McKim ~ Summer, 1995, p. 109. THE MOBILE HOME: PROBLEMS WITH ITS RECOGNITION AS A VALID HOUSING SOURCE -- by Geoffrey L. Neithercut ~ December, 1975, p. 14. MORE ON MECHANIC’S LIENS -- by G. Norman Gilmore ~ August, 1977, p. 5. THE MORTGAGE BROKERS, LENDERS, AND SERVICERS LICENSING ACT OF 1987 -- by Murray E. Brown --Spring, 1988, p. 27. MORTGAGE FORECLOSURE SALES AS FRAUDULENT CONVEYANCES ~ by Ronald P. Strote ~ Spring, 1986,

MORTGAGING HOMESTEAD ~ by Willard G. Moseng -- Spring, 1994, p. 19. NAVIGATING TO CERCLA’S SAFE HARBOR: EPA’S LENDER LIABILITY RULE-- by Peter D. Holmes -- Winter, 1993, p. 161. NEGOTIATING ENVIRONMENTAL PROVISIONS IN REAL ESTATE TRANSACTIONS -- by Alan S. Levine -- Winter, 1987, p. 74. NEW REAL ESTATE REPORTING REQUIREMENTS: A LI’FI’LE MORE SALT FOR THE WOUNDS -- by Kaplin S. Jones and Nyal D. Deems -- Spring, 1988, p. 15. NEW TITLE STANDARDS -- by Ralph Jossman -- February, 1980, p. 9. 1978 DECISIONS BY THE COURT OF APPEALS AND MICHIGAN TAX TRIBUNAL AFFECTING ASSESS- MENTS OF REAL PROPERTY ~ by Michael B. Shapiro -- August, 1979, p. 4. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 287

1979 TAX TRIBUNAL DECISION -- by Michael B. Shapiro -- August, 1980, p. 108. OFFERING LIMITED PARTNERSHIP INTERESTS UNDER THE NEW MICHIGAN PRIVATE OFFERING EXEMPTIONS~ by Joel J. Morris -- February, 1980, p. 2. ONLY POLLUTERS PAY -- MAYBE: IMPLICATIONS OF ACT 307/PART 201 AMENDMENTS FOR MORT- GAGE LENDERS -- by Vicki R. Harding -- Winter, 1995, p. 225. ORAL PROMISES TO LEND UNDER MICHIGAN’S ACT 245 -- by David E. Doran and Daniel J. Brondyk m Winter, 1993, p. 175. OREGON vs MICHIGAN -- by Avern Cohn -- December, 1975, p. 7. OUTLINE OF MECHANIC’S LIEN LAW IN MICHIGAN -- August, 1976, p. 4. AN OVERVIEW OF THE BANKRUPTCY JUDGES, UNITED STATES TRUSTEES AND FAMILY FARMER’ BANKRUPTCY ACT OF 1986 -- by Jay L. Welford -- Winter, 1986, p. 129. PARAGON v CITY OF NOVI: THE MISAPPLICATION OF THE "FINAL DECISION" RULE UNDER MICHIGAN LAND USE LAW -- by Susan K. Friedlaender -- Fall, 1995, p. 157. PARKER REVISITED: HAS THE LAW OF GOVERNMEI~ITAL IMMUNITY BECOME A CONCERN IN THE DEVELOPMENT OF PUBLIC SERVICE FACILITIES? -- by Jack D. Shumate -- Summer, 1983, p. 75. PENDING LEGISLATION REGARDING MICHIGAN’S MECHANIC’S LIEN LAW -- by Richard W. Pennings -- April, 1980, p. 38. PITFALLS IN CLOSING REAL ESTATE TRANSACTIONS -- by W. A. Steiner, Jr. m Winter, 1993, p. 189. POINT SYSTEM -- by John A. Scott -- December, 1974, p. 19. THE POINT SYSTEM -- by Frank S. Sengstock -- October, 1974, p. 1. POOLING AND UNITIZATION IN MICHIGAN -- by Thomas A. Nelson -- Summer, 1989, p. 103. POTENTIAL RULE AGAINST PERPETUITIES EFFECTS ON COMMON OIL, GAS AND MINERAL TRANSACTIONS -- by E. Dan Stevens -- Fall, 1984, p. 437. PRACTICE UNDER THE UNIFORM CONDEMNATION ACT -- by Walter B. Mason and Frederick D. Steinhardt --Fall, 1983, p. 177. PRESERVATION TAX CREDITS: EVERYBODY WINS -- by Janet L. Kreger ~ December, 1982, p. 286. PRICE v LONG REALTY ~ REVISITING THE APPLICABIUTY OF THE MICHIGAN CONSUMER PROTECTION ACT TO CERTAIN CONDUCT OF REAL ESTATE UCENSEES -- by Gall A. Anderson and Deborah A. Lee ~ Fall, 1993, p. 135. A PRIMER FOR MICHIGAN REAL ESTATE PRACTITIONERS ON BANKRUPTCY TRUSTEE AVOIDANCE POWERS ~ by Jacqueline K. Vestevich and Robert D. Mollhagen ~ Winter, 1989, p. 223. PROCEDURE TO ESTABUSH A CONDOMINIUM UNDER THE DEREGULATION ACT -- by James P. Babcock and Jeffery R. Jones ~ Fall, 1983, p. 1984. PROPERTY TAX REUEF FOR CONTAMINATED PROPERTY ~ by Julianna B. Miller -- Fall, 1989, p. 167. PROPOSED AMENDMENT TO CHAPTER 32, REVISED JUDICATURE ACT (MCL SECTION 600.3201 et seq.) RELATIVE TO PROVIDING NOTICE AND OPPORTUNITY FOR HEARING PRIOR TO FORECLOSURE BY ADVERTISEMENT m by William B. Dunn ~ August, 1975, p. 7. Winter, 1995 -- Page 288 MICHIGAN REAL PROPERTY REVIEW

PRO-RATING TAXES -- by Frank S. Sengstock -- February, 1975, p. 1. PRORATION OF TAXES -- by Frank S. Sengstock -- April, 1975, p. 37. REAL ESTATE BROKERS -- COMMISSION DISPUTES -- by Gregory L. McClelland and Gail A. Anderson -- Fall, 1990, p. 115. REAL ESTATE CLOSINGS AND OUTSTANDING OIL AND GAS RIGHTS ~ DO THEY MIX? ~ by Mark A. Van Allsburg -- Spring, 1993, p. 17. REAL ESTATE MALPRACTICE EXPERIENCE IN MICHIGAN -- by William C. Roush -- Summer, 1985, p. 53. REAL ESTATE MALPRACTICE EXPERIENCE -- AN UPDATE -- by William C. Roush -- Summer, 1988, p. 67. REAL ESTATE MALPRACTICE RISKS IN THE USE OF LEGAL FORMS m by William C. Roush ~ Winter, 1984, p. 465. THE REAL ESTATE SETTLEMENT PROCEDURES ACT AND HUD’S REGULATION X: OH HUD! ~ by Howard A. Lax m Winter, 1994, p. 181. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 -- by William B. Dunn w April, 1975, p. 1. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 -- UPDATED -- by William B. Dunn -- July, 1975, p. 23. REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) AND HUD’S REGULATION X: WHAT HATH HUD WROUGHT? -- by Howard A. Lax -- Summer, 1993, p. 81. REAL ESTATE TRANSACTIONS IN THE AGE OF SARA -- by Jack D. Shumate ~ Winter, 1987, p. 70. REAL ESTATE TRANSACTIONS UNDER THE REVISED PROBATE CODE -- by Edward C. Dawda ~ February, 1980, p. 13. REAL PROPERTY ASSESSMENTS: SIGNIFICANT LEGISLATION AND DECISIONS IN 1976 ~ by John R. Baker --June, 1977, p. 25. REAL PROPERTY LAW 1981 (PART D -- by Allen Schwartz and Sally S. Harwood -- October, 1981, p. 137. REAL PROPERTY LAW 1981 (PART II) ~ by Allen Schwartz and Sally S. Harwood w December, 1981, p. 179. REAL PROPERTY LAW, 1981-82 ~ by William B. Dunn and Edward C. Dawda ~ October, 1982, p. 189. A REAL PROPERTY PRACTITIONER’S GUIDE TO THE UTILIZATION OF LIMITED LIABILITY COMPANIES IN REAL PROPERTY TRANSACTIONS w by Tara E. Ban" -- Winter, 1995, p. 217. RECENT DECISIONS BY MICHIGAN TAX TRIBUNAL AND COURT OF APPEALS AFFECTING ASSESSMENTS OF REAL PROPERTY ~ by Michael B. Shapiro -- August, 1978, p. 41. THE RECENT AMENDMENTS TO ACT 307: REASON AND SANITY PREVAILS OR "THE WORST ASSAULT ON THE ENVIRONMENT BY SELFISH INTEREST IN THIS CENTURY" -- by Grant R. Trigger -- Fall, 1995, p. 171. RECENT DEVELOPMENTS IN REAL PROPERTY LAW -- by Richard E. Rabbideau and William L. Cooper ~ Spring, 1985, p. 3. RECENT MICHIGAN SUPERFUND ACTIONS -- by Jack D. Shumate -- Summer, 1985, p. 97. RECENT ZONING ENABLING LEGISLATION: A BEGINNING WITH PROMISE ~ by Gerald A. Fisher -- October, 1979, p. 9. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 m Page 289

RECORDING CORRECTIVE DOCUMENTS -- by Willard G. Moseng -- Spring, 1995, p. 29. RECORDING LAND CONTRACT AND LEASE MEMORANDA -- by Carol Ann Martinelli and Willard G. Moseng m Summer, 1986, p. 31. RECOVERY OF CONSEQUENTIAL DAMAGES AND DELAY/DISRUPTION DAMAGES FROM PAYMENT BOND SURETIES -- by Clifford J. DeVine and Mark W. Mclnemey -- Summer, 1993, p. 63. RECOVERY OF INTEREST OR HNANCE CHARGES IN CONSTRUCTION LIEN FORECLOSURE ACTIONS -- by Lawrence M. Dudek -- Summer, 1987, p. 3. REGULATION OF REAL ESTATE BROKERS AND SALESPERSONS IN MICHIGAN ~ AN UPDATE -- by Gregory L. McClelland and Gail A. Anderson -- Fall, 1993, p. 131. REGULATION OF THE REAL ESTATE PROFESSION IN MICHIGAN -- by George J. Siedel, III -- June, 1982, p. 124. REGULATION OF UNDERGROUND STORAGE TANKS IN MICHIGAN -- by Robert A. Hykan and John C. Burchett- Winter, 1989, p. 215.

REIMBURSEMENT OF ATTORNEY FEES AND LITIGATION COSTS UNDER THE UNIFORM CONDEMNATION PROCEDURES ACT -- by Boris K. Yakima -- Winter, 1989, p. 249. REJECTION OF LAND CONTRACT AS EXECUTORY CONTRACT IN BANKRUPTCY PROCEEDINGS OF VENDOR -- by Stephen A. Bromberg -- February, 1979, p. 20. REMEDIES OF THE SUBCONTRACTOR OR SUPPLIER WHEN THE OWNER OR GENERAL CONTRACTOR HLES FOR BANKRUPTCY -- by Lawrence M. Dudek -- Summer, 1992, p. 49. THE REORGANIZING DEBTOR AND UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY m by Brian L. Donovan -- Winter, 1988, p. 243. REPORT OF THE SUBCOMMITTEE OF THE REAL PROPERTY SECTION ON PROPOSED REVISIONS TO MICHIGAN STATUTORY FORECLOSURE OF MORTGAGES LAW -- July, 1975, p. 13. REPORTING REAL ESTATE SALES - THE 1986 TAX REFORM ACT -- by Carol Ann Martinelli -- Spring, 1987, p. 8. RESIDENTIAL CLOSING PROBLEMS -- by Philip R. Seaver -- Summer, 1983, p. 85. RESOLVING CONSTRUCTION DISPUTES: ALTERNATIVES TO LITIGATION -- by Mary A. Bedikian -- Winter, 1988, p. 249. RESOLVING CONSTRUCTION PROJECT CHANGES -- by David M. Hayes and Sheryl A. Moody -- Fall, 1989, p. 151. RESOLVING REAL ESTATE VALUATION DISPU’IT~ BY ARBITRATION -- by Lamont M. Walton -- Fall, 1983, p. 191. A RESPONSE TO KROPF -- by Avem Cohn -- June, 1974, p. 13. REVENUE ACT OF 1978: EFFECT UPON INDEXING REQUIREMENTS OF FEDERAL TAX LIENS -- by Richard H. Schloss- August, 1979, p. 2. THE REVENUE ACT OF 1978: TAX CHANGES FOR HOMEOWNERS, REAL ESTATE INVESTORS AND FARMERS -- by Fred W. Brenner and L. Fallasha Erwin -- October, 1979, p. 21. REVISION OF TAX LIEN CHAPTER OF THE TITLE STANDARDS -- Ralph Jossman -- August, 1977, p. 13. Winter, 1995 -- Page 290 MICHIGAN REAL PROPERTY REVIEW

ROAD END ACCESS TO MICHIGAN WATER -- by M. Carol Bambery and Douglas S. Loomer -- Spring, 1993, poSo SALE OF HUD PROJECTS -- "TRANSFER OF PHYSICAL ASSETS" -- by Jefferson F. Riddeli -- April, 1981, p. 24. A SECONDARY IMPACT OF SILVA -- by Norman Hyman -- Summer, 1983, p. 68. THE SECURED LENDER: VICTIM OR VILLAIN? -- THE BATTLE TO PREVENT SEPARATE CLASSIFICATION OF UNSECURED DEFICIENCY CLAIMS IN BANKRUPCY ~ Fall, 1994, p. 129. THE SECURITY DEPOSITS ACT OF 1973 -- by James M. Szkrybalo -- October, 1974, p. 7. SECURITY INTERESTS IN "FIXTURES" UNDER "IT-IE 1978 AMENDMENT TO THE MICHIGAN UNIFORM COMMERCIAL CODE -- by Gary A. Taback, December, 1978, p. 11. A SELECTED SURVEY OF PUBLIC FINANCING ALTERNATIVES -- by James W. Bliss, Cynthia B. Faulhaber, Terrence P. Grady, Michael L. Lencione, Jeffrey M. McHugh, and Timothy D. Sochocki ~ Summer, 1991, p. 43. SELF-HELP: AN INTRUSION INTO THE TENANT’S RIGHTS ~ by ].avail Hull -- April, 1975, p. 17. SHARE LOAN FINANCING FOR THE COOPERATIVE MEMBER -- by Michele Cubbison and James N. Candler, Jr. m Spring, 1988, p. 9. A SHORT ESSAY ON DOWER’S ERODING FOUNDATION m by Roger A. Petzke ~ October, 1977, p. 2. SINGLE-ASSET CHAPTER 11 REAL ESTATE CASES: BAD FAITH AND NEW DEBTOR SYNDROME AFFIRMED BY THE SIXTH CIRCUIT COURT OF APPEALS -- by Lisa Sommers Gretchko -- Spring, 1995, p. 19. SINGLE-ASSET CHAPTER 11 REAL ESTATE CASES: BAD FAITH, NEW DEBTOR SYNDROME, AND OTHER PITFALLS ~ by Lisa Sommers Gretchko -- Summer, 1994, p. 49. SITE PLAN REVIEW-- LIMITS ON DISCRETION-- by Michael L. Chojnowski and Michele C. Marquardt ~ Summer, 1990, p. 81. SIXTH CIRCUIT FINDS TURNER "SUBSTANTIAL CONTINUITY" RULE OF SUCCESSOR LIABILITY INAPPLICABLE OUTSIDE THE CONTEXT OF PRODUCTS LIABILITY -- by Saulius K. Mikalonis, Esq. ~ Spring, 1995, p. 37. SMALLEY TO PRICE TO ERB: A TIME-PRICE TRILOGY -- by Ronald P. Strote -- Summer, 1995, p. 115. SOLAR EASEMENTS UNDER HB 4083 and HB 4127 ~ by Dearie Malaker ~ June, 1980, p. 66. SOME CONSIDERATIONS IN DRAFTING AN OFFER TO PURCHASE -- Aiken -- August, 1974, p. 5. SOME MORE THOUGHTS ON PRORATION ~ (LETTERS TO EDITOR) -- July, 1975, p. 2; October, 1975, p. 34. SPACING AND POOLING IN MICHIGAN ~ by Terence V. Lynam and William H. Stephens, [] ~ Summer, 1983, p. 136. THE "SPECIAL LAND USE": WHAT IS IT AND WHEN IS IT PERMITTED? -- by Timothy A. Stoepker -- Fall, 1994, p. 139. STATEMENT CONCERNING HOUSE BILL NO. 4095 -- by Louis P. Rochkind -- Summer, 1983, p. 146. STATUS OF REAL PROPERTY TAXES IN BANKRUPTCY CASES --by Harold E. Nelson -- Spring, 1991, p. 13. MICHIGAN REAL PROPERTY REVIEW Winter, 1995 -- Page 291

STATUS OF WILLIAMS AND WORKS, INC. v SPRINGFIELD CORPORATION, ET AL -- by James W. Batchelor --April, 1980, p. 55. STATUTES PROMOTING MARKETABILITY OF OIL AND GAS TITLES: THE MICHIGAN DORMANT MINERALS ACT AND ITS COUNTERPARTS AFTER TWENTY-FIVE YEARS -- by James R. Brown -- Fall, 1988, p. 145. STRUCTURING REAL ESTATE TRANSACTIONS IN THE ERA OF THE POLLUTERS PAY LAW -- by Jack D. Shumate and Paul S. Lewandowski ~ Fall, 1992, p. 93. SUBDIVISION CONTROL AT THE CROSSROADS -- by Jack D. Shumate ~ October, 1979, p. 17. A SUBJECT INDEX OF THE CONDOMINIUM ACT AND REGULATIONS -- by Ethan M. Powsner -- Winter, 1994, p. 209. SUMMARY OF DECISIONS UNDER THE CONSTRUCTION LIEN ACT -- by Matthew Norris, Marty A. Burnstein and Ronald L Comell, Jr., -- Summer, 1993, p. 53. A SURVEY OF PUBLIC FINANCIAL ASSISTANCE TO REAL ESTATE DEVELOPMENT -- by Frank L. Andrews, Gerald P. LaHaie, Thomas S. Leven, Dennis R. Neiman, and Jefferson F. Riddell -- Spring, 1983, p. 3. SYNDICATIONS AND OTHER AREAS OF REAL ESTATE FINANCING IN THE 1980’s ~ by Craig Hall -- December, 1981, p. 189. SYNDICATIONS OF REAL ESTATE INVESTMENTS IN MICHIGAN -- by Joel J. Morris -- December, 1978, p. 2. TAX CREDIT FOR PURCHASE OF NEW PRINCIPAL RESIDENCE ~ April, 1975, p. 30. TAX DELINQUENCY ~ by Russell E. Prins ~ December, 1981, p. 170. TAX ON RECEIPT OF A PARTNERSHIP INTEREST FOR SERVICES: THE CAMPBELL CASE ~ by Richard S. Soble and William B. Acker -- Fall, 1990, p. 123. TAX TITLES ~ by Lee P. Mohnkern -- Winter, 1990, p. 179. THE TAX TRIBUNAL ~ by Richard J. Sullivan ~ July, 1975, p. 3. THIRD PARTY LEGAL OPINIONS: A NEW AGE DAWNS? -- by William B. Dunn and Steven O. Weise -- Summer, 1991, p. 63. THIRD-PARTY LEGAL OPINIONS: THE NEXT GENERATION -- by Robert R. Nix, II, Vicki R. Harding, Dan M. Challa, Tyrone A. Powell, Gregg A. Nathanson, Denise J. Lewis, Ronald E. Hodess and John A. Nitz-- Fall, 1992, p. 77. THE TIME PRICE DIFFERENTIAL: A BOND CLAIMANT’S VEHICLE FOR RECOVERY OF SERVICE CHARGES -- by Robert R. Nix, II ~ June, 1982, p. 121. TIME SHARE CONDOMINIUMS - by Gary J. Mclnerney -- December, 1981, p. 164. TIME SHARE LAW AND THE 1984 BANKRUPTCY AMENDMENTS ~ by John D. Fershee -- Spring, 1986, p. 3. TITLE INSURANCE FOR THE OWNER: COMMITMENT AND POLICY ~ by Robert S. Olivier, Lee P. Mohnkern and James P. Lanzetta -- Spring, 1987, p. 3. A TITLE INSURER LOOKS AT THE CONSTRUCTION LIEN ACT -- by Dearie Malaker -- June, 1981, p. 42. TREATMENT OF LAND CONTRACTS IN BANKRUPTCY-EXECUTORY CONTRACTS OR LIENS? ~ by Louis P. Rochkind and Jay L. Welford -- Winter, 1984, p. 484. Winter, 1995 -- Page 292 MICHIGAN REAL PROPERTY REVIEW

TREATMENT OF MICHIGAN LAND CONTRACTS IN CHAPTER 11 AND CHAPTER 13 CASES: IMPACT OF THE VENDEE’S BANKRUPTCY -- by Patrick E. Mears -- Winter, 1988, p. 231. TREBLE DAMAGES FOR INJURY TO LAND -- by N. O. Stockmeyer, Jr. -- Fall, 1990, p. 135. TRUTH AND CONSEQUENCES: THE STATUTE OF FRAUDS AND ADMISSIONS IN COURT -- by George D. Cameron, III --Winter, 1985, p. 186. TURKISH AND THE FUTURE -- by Michael H. Feiler w October, 1980, p. 142. THE UNIFORM STATUTORY RULE AGAINST PERPETUmES: FIXING WHAT ISN’T BROKEN w by William A. Siebert ~ Summer, 1989, p. 99. THE UNINTENDED INDEMNIFICATION OF A LANI~LORD ~ by Arthur A. Homing ~ Spring, 1995, p. 33. U.S. DISTRICT COURT HOLDS THAT THE CITY OF TAYLOR’S REFUSAL TO ALLOW A TWELVE-PERSON ADULT FOSTER CARE HOME TO LOCATE I1~ A SINGLE-FAMILY RESIDENTIAL DISTRICT VIOLATED THE FAIR HOUSING AMENDMENTS ACT m by Gregory Bator -- Summer, 1995, p. 123. U.S. DISTRICT COURT HOLDS THAT THE 1500-FOOT RULE AND NEIGHBOR NOTIFICATION RULE VIOLATE THE FAIR HOUSING AMENDMENTS ACT AND THE EQUAL PROTCTION CLAUSE OF THE U.S. CONSTITUTION -- by Gregory Bator -- Summer, 1995, p. 119. U.S. SUPREME COURT DENIES CERTIORARI IN MICHIGAN DORMANT MINERAL ACT CASES -- by Allen E. Priestley ~ June, 1982, p. 139. U.S. SUPREME COURT HOLDS THAT DEDICATION REQUIREMENT TO OBTAIN APPROVAL OF DEVELOPMENT CONSTITUTES A TAKING w by David W. Berry and Susan K. Friedlaender -- Fall, 1994, p. 159. THE USES OF A RECEIVERSHIP OVER REAL PROPERTY -- by Lawrence M. Dudek -- Summer, 1994, p. 41. VENDOR’S LIABILITY FOR PHYSICAL DEFECTS -- by William F. Nero m August, 1977, p. 2. VOTING RIGHTS FOR LIMITED PARTNERS UNDER MICHIGAN’S REVISED UNIFORM LIMITED PARTNER- SHIP ACT -- by Thomas S. Vaughn ~ December, 1982, p. 261. WARNING: THE BANK MUST SIGN THE PROMISSORY NOTE (OR AT LEAST A WRITING) ~ by Gary A. Taback ~ Winter, 1992, p. 185. WATERFRONT DEVELOPMENTS AND THE REGULATORY PROCESS -- by C. Peter Theut, Ronald T. Barrows and Robert Charles Davis ~ Spring, 1990, p. 31. WHAT IS THE PROPER STANDARD FOR REIMBURSEMENT OF ATFORNEY FEES UNDER THE UNIFORM CONDEMNATION PROCEDURES ACT?. -- by Frederick D. Steinhardt ~ Fall, 1995, p. 187. WHY NEW HOUSES COST TOO MUCH -- by Arthur M. Watkins -- August, 1975, p. 15. WILLIAMS & WORKS. v SPRINGFIELD CORPORATION REVERSED -- by James W. Batchelor ~ August, 1980, p. 111. ZAAGMAN AND TURKISH: HAS REZONING BECOME IMPRACTICAL? -- by Stephen A. Bromberg -- October, 1979, p. 2. ZONING LITIGATION: APPROACHES AND PREPARATION TECHNIQUES -- by Stephen A. Bromberg -- October, 1978, p. 2. ZONING LITIGATION: THE DISTINCTION BETWEEN CONFISCATION AND SUBSTANTIVE DUE PROCESS -- by David W. Berry and David d. Portelli -- Summer, 1988, p. 61. N MICHIGAN ENVIRONMENTAL N E STATUTES AND REGULATIONS E W (2nd Edition) W PREPARED BY THE ENVIRONMENTAL LAW AND REAL PROPERTY SECTIONS OF THE STATE BAR OF MICHIGAN ¯ TWO VOLUME HANDBOOK (APPROX. 2,500 PAGES) ¯ COVERS ALL MICHIGAN ENVIRONMENTAL STATUTES AND REGULATIONS ¯ FIRST RELEASED IN SEPTEMBER 1990 ¯ ALL NEW TEXT PUBLISHED IN 1992

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