Bill Text: MI HB4430 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Property tax; delinquent taxes; notice requirements for show cause hearing and foreclosure hearing; revise. Amends sec. 78i of 1893 PA 206 (MCL 211.78i).
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Introduced - Dead) 2011-03-16 - Printed Bill Filed 03/16/2011 [HB4430 Detail]
Download: Michigan-2011-HB4430-Introduced.html
HOUSE BILL No. 4430
March 15, 2011, Introduced by Reps. Hovey-Wright, Santana, Hobbs, Dillon, Brunner, Segal, Smiley, Haugh, Constan, Lipton, Darany, Kandrevas, Ananich, McCann, Switalski, Slavens, Geiss, Barnett, Liss, Bauer, Jackson, Howze, Rutledge and Meadows and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78i (MCL 211.78i), as amended by 2006 PA 611.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78i. (1) Not later than May 1 immediately succeeding the
forfeiture of property to the county treasurer under section 78g,
the foreclosing governmental unit shall initiate a search of
records identified in subsection (6) to identify the owners of a
property interest in the property who are entitled to notice under
this section of the show cause hearing under section 78j and the
foreclosure hearing under section 78k. The foreclosing governmental
unit may enter into a contract with 1 or more authorized
representatives to perform a title search or may request from 1 or
more authorized representatives another title search product to
identify the owners of a property interest in the property as
required under this subsection or to perform other functions
required for the collection of delinquent taxes under this act.
(2) After conducting the search of records under subsection
(1), the foreclosing governmental unit or its authorized
representative shall determine the address reasonably calculated to
apprise those owners of a property interest of the show cause
hearing under section 78j and the foreclosure hearing under section
78k and shall send notice of the show cause hearing under section
78j and the foreclosure hearing under section 78k to those owners,
and to a person entitled to notice of the return of delinquent
taxes under section 78a(4), by certified mail, return receipt
requested, not less than 30 days before the show cause hearing. The
foreclosing governmental unit or its authorized representative
shall also send notice of the show cause hearing under section 78j
and the foreclosure hearing under section 78k by first-class mail
to those owners of the property identified under subsection (1), to
a person entitled to notice of the return of delinquent taxes under
section 78a(4), and to the occupant, if any, at the address for the
property listed in the tax rolls or ascertained during the personal
visit to the property under section 78i, if the address is evident.
If after conducting the search of records under subsection (1) the
foreclosing governmental unit is unable to determine an address
reasonably calculated to inform a person with an interest in a
forfeited property, or if the foreclosing governmental unit
discovers a deficiency in notice under subsection (4), the
following shall be considered reasonable steps by the foreclosing
governmental unit or its authorized representative to ascertain the
address of a person entitled to notice under this section or to
ascertain an address necessary to correct the deficiency in notice
under subsection (4):
(a) For an individual, a search of the records of the probate
court for the county in which the property is located.
(b) For an individual, a search of the qualified voter file
established under section 509o of the Michigan election law, 1954
PA 116, MCL 168.509o, which is authorized by this subdivision.
(c) For a partnership, a search of partnership records filed
with the county clerk.
(d) For a business entity other than a partnership, a search
of business entity records filed with the department of energy,
labor, and economic growth.
(3) The foreclosing governmental unit or its authorized
representative or authorized agent shall make a personal visit to
each parcel of property forfeited to the county treasurer under
section 78g to ascertain whether or not the property is occupied.
If the property appears to be occupied, the foreclosing
governmental unit or its authorized representative shall do all of
the following:
(a) Attempt to personally serve upon a person occupying the
property notice of the show cause hearing under section 78j and the
foreclosure hearing under section 78k.
(b) If a person occupying the property is personally served,
orally inform the occupant that the property will be foreclosed and
the occupants will be required to vacate unless all forfeited
unpaid delinquent taxes, interest, penalties, and fees are paid, of
the time within which all forfeited unpaid delinquent taxes,
interest, penalties, and fees must be paid, and of agencies or
other resources that may be available to assist the owner to avoid
loss of the property.
(c) If the occupant appears to lack the ability to understand
the advice given, notify the department of human services or
provide the occupant with the names and telephone numbers of the
agencies that may be able to assist the occupant.
(d) If the foreclosing governmental unit or its authorized
representative is not able to personally meet with the occupant,
the foreclosing governmental unit or its authorized representative
shall place the notice in a conspicuous manner on the property and
shall also place in a conspicuous manner on the property a notice
that explains, in plain English, that the property will be
foreclosed unless forfeited unpaid delinquent taxes, interest,
penalties, and fees are paid, the time within which forfeited
unpaid delinquent taxes, interest, penalties, and fees must be
paid, and the names, addresses, and telephone numbers of agencies
or other resources that may be available to assist the occupant to
avoid loss of the property. If this state is the foreclosing
governmental unit within a county, the department of treasury shall
perform the personal visit to each parcel of property under this
subsection on behalf of this state.
(4) If the foreclosing governmental unit or its authorized
representative discovers any deficiency in the provision of notice,
the foreclosing governmental unit shall take reasonable steps in
good faith to correct that deficiency not later than 30 days before
the show cause hearing under section 78j, if possible.
(5) If the foreclosing governmental unit or its authorized
representative is unable to ascertain the address reasonably
calculated to apprise the owners of a property interest entitled to
notice under this section, or is unable to notify the owner of a
property interest under subsection (2), the notice shall be made by
publication. A notice shall be published for 3 successive weeks,
once each week, in a newspaper published and circulated in the
county in which the property is located, if there is one. If no
paper is published in that county, publication shall be made in a
newspaper published and circulated in an adjoining county. This
publication shall be instead of notice under subsection (2).
(6) The owner of a property interest is entitled to notice
under this section of the show cause hearing under section 78j and
the foreclosure hearing under section 78k if that owner's interest
was identifiable by reference to any of the following sources
before the date that the county treasurer records the certificate
required under section 78g(2):
(a) Land title records in the office of the county register of
deeds.
(b) Tax records in the office of the county treasurer.
(c) Tax records in the office of the local assessor.
(d) Tax records in the office of the local treasurer.
(7) The notice required under subsections (2) and (3) shall
include all of the following:
(a) The date on which the property was forfeited to the county
treasurer.
(b) A statement that the person notified may lose his or her
interest in the property as a result of the foreclosure proceeding
under section 78k.
(c) A legal description or parcel number of the property and
the street address of the property, if available.
(d) The person to whom the notice is addressed.
(e) The total taxes, interest, penalties, and fees due on the
property.
(f) The date and time of the show cause hearing under section
78j.
(g) The date and time of the hearing on the petition for
foreclosure under section 78k, and a statement that unless the
forfeited unpaid delinquent taxes, interest, penalties, and fees
are paid on or before the March 31 immediately succeeding the entry
of a judgment foreclosing the property under section 78k, or in a
contested case within 21 days of the entry of a judgment
foreclosing the property under section 78k, the title to the
property shall vest absolutely in the foreclosing governmental unit
and that all existing interests in oil or gas in that property
shall be extinguished except the following:
(i) The interests of a lessee or an assignee of an interest of
a lessee under an oil or gas lease in effect as to that property or
any part of that property if the lease was recorded in the office
of the register of deeds in the county in which the property is
located before the date of filing the petition for foreclosure
under section 78h.
(ii) Interests preserved as provided in section 1(3) of 1963 PA
42, MCL 554.291.
(h) An explanation of the person's rights of redemption and
notice that the rights of redemption will expire on the March 31
immediately succeeding the entry of a judgment foreclosing the
property under section 78k, or in a contested case 21 days after
the entry of a judgment foreclosing the property under section 78k.
(8) The published notice required under subsection (5) shall
include all of the following:
(a) A legal description or parcel number of each property.
(b) The street address of each property, if available.
(c) The name of any person or entity entitled to notice under
this section who has not been notified under subsection (2) or (3).
(d) The date and time of the show cause hearing under section
78j.
(e) The date and time of the hearing on the petition for
foreclosure under section 78k.
(f) A statement that unless all forfeited unpaid delinquent
taxes, interest, penalties, and fees are paid on or before the
March 31 immediately succeeding the entry of a judgment foreclosing
the property under section 78k, or in a contested case within 21
days of the entry of a judgment foreclosing the property under
section 78k, the title to the property shall vest absolutely in the
foreclosing governmental unit and that all existing interests in
oil or gas in that property shall be extinguished except the
following:
(i) The interests of a lessee or an assignee of an interest of
a lessee under an oil or gas lease in effect as to that property or
any part of that property if the lease was recorded in the office
of the register of deeds in the county in which the property is
located before the date of filing the petition for foreclosure
under section 78h.
(ii) Interests preserved as provided in section 1(3) of 1963 PA
42, MCL 554.291.
(g) A statement that a person with an interest in the property
may lose his or her interest in the property as a result of the
foreclosure proceeding under section 78k and that all existing
interests in oil or gas in that property shall be extinguished
except the following:
(i) The interests of a lessee or an assignee of an interest of
a lessee under an oil or gas lease in effect as to that property or
any part of that property if the lease was recorded in the office
of the register of deeds in the county in which the property is
located before the date of filing the petition for foreclosure
under section 78h.
(ii) Interests preserved as provided in section 1(3) of 1963 PA
42, MCL 554.291.
(9) The owner of a property interest who has been properly
served with a notice of the show cause hearing under section 78j
and the foreclosure hearing under section 78k and who failed to
redeem the property as provided under this act shall not assert any
of the following:
(a) That notice was insufficient or inadequate on the grounds
that some other owner of a property interest was not also served.
(b) That the redemption period provided under this act was
extended in any way on the grounds that some other owner of a
property interest was not also served.
(10) The failure of the foreclosing governmental unit to
comply with any provision of this section shall not invalidate any
proceeding under this act if the owner of a property interest or a
person to whom a tax deed was issued is accorded the minimum due
process required under the state constitution of 1963 and the
constitution of the United States.
(11) As used in this section, "authorized representative"
includes all of the following:
(a) A title insurance company or agent licensed to conduct
business in this state.
(b) An attorney licensed to practice law in this state.
(c) A person accredited in land title search procedures by a
nationally recognized organization in the field of land title
searching.
(d) A person with demonstrated experience searching land title
records, as determined by the foreclosing governmental unit.
(12) The provisions of this section relating to notice of the
show cause hearing under section 78j and the foreclosure hearing
under section 78k are exclusive and exhaustive. Other requirements
relating to notice or proof of service under other law, rule, or
legal requirement are not applicable to notice and proof of service
under this section.
