Bill Text: MI HB5058 | 2013-2014 | 97th Legislature | Engrossed


Bill Title: Local government; other; opt-in provision for eligibility as a foreclosing governmental unit; allow. Amends sec. 78 of 1893 PA 206 (MCL 211.78).

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced - Dead) 2013-12-10 - Referred To Committee On Local Government And Elections [HB5058 Detail]

Download: Michigan-2013-HB5058-Engrossed.html

HB-5058, As Passed House, December 5, 2013

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5058

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 78 (MCL 211.78), as amended by 2008 PA 512.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 78. (1) The legislature finds that there exists in this

 

state a continuing need to strengthen and revitalize the economy of

 

this state and its municipalities by encouraging the efficient and

 

expeditious return to productive use of property returned for

 

delinquent taxes. Therefore, the powers granted in this act

 

relating to the return of property for delinquent taxes constitute

 

the performance by this state or a political subdivision of this

 

state of essential public purposes and functions.

 

     (2) It is the intent of the legislature that the provisions of

 

this act relating to the return, forfeiture, and foreclosure of

 

property for delinquent taxes satisfy the minimum requirements of


 

due process required under the constitution of this state and the

 

constitution of the United States but that those provisions do not

 

create new rights beyond those required under the state

 

constitution of 1963 or the constitution of the United States. The

 

failure of this state or a political subdivision of this state to

 

follow a requirement of this act relating to the return,

 

forfeiture, or foreclosure of property for delinquent taxes shall

 

not be construed to create a claim or cause of action against this

 

state or a political subdivision of this state unless the minimum

 

requirements of due process accorded under the state constitution

 

of 1963 or the constitution of the United States are violated.

 

     (3) Not later than December 1, 1999, the county board of

 

commissioners of a county, by a resolution adopted at a meeting

 

held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275, and with the written concurrence of the county treasurer

 

and the county executive, if any, may elect to have this state

 

foreclose property under this act forfeited to the county treasurer

 

under section 78g. At any time during December 2004, the county

 

board of commissioners of a county, by a resolution adopted at a

 

meeting held pursuant to the open meetings act, 1976 PA 267, MCL

 

15.261 to 15.275, and with the written concurrence of the county

 

treasurer and county executive, if any, may do either of the

 

following:

 

     (a) Elect to have this state foreclose property under this act

 

forfeited to the county treasurer under section 78g.

 

     (b) Rescind its prior resolution by which it elected to have

 

this state foreclose property under this act forfeited to the


 

county treasurer under section 78g.

 

     (4) Beginning January 1, 2009 through March 1, 2009, the

 

county board of commissioners of a county in which is located an

 

eligible city, as that term is defined in section 89d, may, by a

 

resolution adopted at a meeting held pursuant to the open meetings

 

act, 1976 PA 267, MCL 15.261 to 15.275, and with the written

 

concurrence of the county treasurer and county executive, if any,

 

rescind its prior resolution by which it elected to have this state

 

foreclose property under this act forfeited to the county treasurer

 

under section 78g.

 

     (5) Beginning on the effective date of the amendatory act that

 

added this subsection through November 30, 2014, the county board

 

of commissioners of a county that has elected to have property

 

forfeited under section 78g foreclosed by this state under this act

 

may, by a resolution adopted at a meeting held pursuant to the open

 

meetings act, 1976 PA 267, MCL 15.261 to 15.275, and with the

 

written concurrence of the county treasurer and county executive,

 

if any, rescind its prior resolution by which it elected to have

 

this state foreclose property under this act forfeited to the

 

county treasurer under section 78g. A county board of commissioners

 

shall forward a copy of the resolution and any concurrence to the

 

department of treasury not later than November 30, 2014. A county

 

that rescinds its prior election under this section by January 30,

 

2014 shall act as the foreclosing governmental unit under this act

 

for all property forfeited to the county treasurer under section

 

78g after February 1, 2014. A county that rescinds its prior

 

election under this section between January 31, 2014 and November


 

30, 2014 shall act as the foreclosing governmental unit under this

 

act for all property forfeited under section 78g after February 1,

 

2015.

 

     (6) (5) The foreclosure of forfeited property by a county is

 

voluntary and is not an activity or service required of units of

 

local government for purposes of section 29 of article IX of the

 

state constitution of 1963.

 

     (7) (6) A county and a local governmental unit within that

 

county may enter into an agreement for the collection of property

 

taxes or the enforcement and consolidation of tax liens within that

 

local governmental unit. A local governmental unit shall not

 

establish a delinquent tax revolving fund under section 87b.

 

     (8) (7) As used in this section and sections 78a through 155

 

for purposes of the collection of taxes returned as delinquent:

 

     (a) "Foreclosing governmental unit" means 1 of the following:

 

     (i) The treasurer of a county.

 

     (ii) This state if the county has elected under subsection (3)

 

to have this state foreclose property under this act forfeited to

 

the county treasurer under section 78g.

 

     (b) "Forfeited" or "forfeiture" means a foreclosing

 

governmental unit may seek a judgment of foreclosure under section

 

78k if the property is not redeemed as provided under this act, but

 

does not acquire a right to possession or any other interest in the

 

property.

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