SENATE BILL NO. 489 March 25, 1999, Introduced by Senators PETERS, SCHUETTE, BENNETT, JOHNSON, SHUGARS and STEIL and referred to the Committee on Economic Development, International Trade and Regulatory Affairs. A bill to amend 1893 PA 206, entitled "The general property tax act," (MCL 211.1 to 211.157) by adding sections 79, 79a, 79b, 79c, 79d, 79e, and 79f. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 79. (1) FOR TAXES LEVIED AFTER DECEMBER 31, 1998, CER- 2 TIFIED ABANDONED PROPERTY IS SUBJECT TO FORFEITURE, FORECLOSURE, 3 AND SALE FOR THE ENFORCEMENT AND COLLECTION OF THE DELINQUENT 4 TAXES AS PROVIDED IN THIS SECTION AND SECTIONS 79A TO 79F. 5 (2) CERTIFIED ABANDONED PROPERTY MAY BE REDEEMED AT ANY TIME 6 BEFORE THE ENTRY OF JUDGMENT FORECLOSING THE PROPERTY UNDER SEC- 7 TION 79B UPON PAYMENT TO THE COUNTY TREASURER OF ALL OF THE 8 FOLLOWING: 02654'99 FDD 2 1 (A) THE TOTAL AMOUNT OF UNPAID DELINQUENT TAXES, INTEREST, 2 PENALTIES, AND FEES FOR WHICH THE CERTIFIED ABANDONED PROPERTY 3 WAS FORFEITED UNDER SECTION 79A. 4 (B) ALL ADDITIONAL TAXES, INTEREST, PENALTIES, AND FEES DUE 5 AFTER THE DATE THE PROPERTY WAS FORFEITED UNDER SECTION 79A. 6 (C) A PENALTY OF 1-1/2% PER MONTH OR FRACTION OF A MONTH, 7 CALCULATED FROM THE IMMEDIATELY PRECEDING OCTOBER 1. 8 (D) ALL EXPENSES OF SERVICE OF PROCESS. 9 (3) IF CERTIFIED ABANDONED PROPERTY IS REDEEMED AS PROVIDED 10 IN SUBSECTION (2), ALL OTHER LIENS AND ENCUMBRANCES SHALL BE 11 RESTORED TO THEIR ORIGINAL STATUS. 12 (4) IF CERTIFIED ABANDONED PROPERTY IS REDEEMED AS PROVIDED 13 UNDER SUBSECTION (2), THE FORMER OWNER DOES NOT ACQUIRE A TITLE 14 OR INTEREST IN THE CERTIFIED ABANDONED PROPERTY GREATER THAN THE 15 FORMER OWNER WOULD HAVE HAD IF THE CERTIFIED ABANDONED PROPERTY 16 HAD NOT BEEN FORFEITED TO THE COUNTY TREASURER. 17 (5) AS USED IN THIS SECTION AND SECTIONS 79A TO 79F: 18 (A) "CERTIFIED ABANDONED PROPERTY" MEANS PROPERTY CERTIFIED 19 AS CERTIFIED ABANDONED PROPERTY UNDER THE CERTIFICATION OF ABAN- 20 DONED PROPERTY FOR ACCELERATED FORECLOSURE ACT. 21 (B) "TAXES" INCLUDES UNPAID SPECIAL ASSESSMENTS OR OTHER 22 ASSESSMENTS THAT ARE DUE AND PAYABLE AT ANY TIME UP TO AND 23 INCLUDING THE DATE OF THE FORECLOSURE HEARING UNDER SECTION 79B. 24 SEC. 79A. (1) ON OCTOBER 1 IN EACH TAX YEAR, ALL OF THE 25 FOLLOWING SHALL OCCUR: 26 (A) CERTIFIED ABANDONED PROPERTY THAT IS DELINQUENT FOR 27 TAXES, INTEREST, PENALTIES, AND FEES IS FORFEITED TO THE COUNTY 02654'99 3 1 TREASURER FOR THE TOTAL AMOUNT OF THE UNPAID DELINQUENT TAXES, 2 INTEREST, FEES, AND PENALTIES. 3 (B) THE COUNTY TREASURER SHALL ADD THE FOLLOWING FEES TO THE 4 FEES DUE UNDER THIS ACT AND THE CERTIFICATION OF ABANDONED PROP- 5 ERTY FOR ACCELERATED FORECLOSURE ACT ON CERTIFIED ABANDONED 6 PROPERTY: 7 (A) A $150.00 TITLE SEARCH FEE. 8 (B) A FORECLOSURE FEE OF $75.00. 9 (2) NOT LATER THAN NOVEMBER 1 IN EACH TAX YEAR, THE COUNTY 10 TREASURER SHALL ORDER AND OBTAIN A TITLE REPORT ON CERTIFIED 11 ABANDONED PROPERTY, TO DETERMINE ALL TITLE HOLDERS, MORTGAGE 12 HOLDERS, RECORDED LIEN HOLDERS, TAX LIEN HOLDERS, AND ANY OTHER 13 PERSON WITH A RECORDED INTEREST IN THE CERTIFIED ABANDONED 14 PROPERTY. 15 (3) ON DECEMBER 1 IN EACH TAX YEAR, THE COUNTY TREASURER 16 SHALL FURNISH TO THE FAMILY INDEPENDENCE AGENCY A LIST OF ANY 17 NAMES AND ADDRESSES OF THOSE PERSONS NOTIFIED PURSUANT TO SECTION 18 4 OF THE CERTIFICATION OF ABANDONED PROPERTY FOR ACCELERATED 19 FORECLOSURE ACT. THE FAMILY INDEPENDENCE AGENCY MAY PETITION THE 20 CIRCUIT COURT AT THE HEARING ON THE PETITION FOR FORECLOSURE 21 UNDER SECTION 79B TO WITHHOLD FROM THE CIRCUIT COURT'S JUDGMENT 22 CERTIFIED ABANDONED PROPERTY OWNED BY A PERSON WHO APPEARS TO THE 23 FAMILY INDEPENDENCE AGENCY TO BE INCOMPETENT OR WHO IS WITHOUT 24 MEANS OF SUPPORT. IF THE FAMILY INDEPENDENCE AGENCY FILES A 25 PETITION UNDER THIS SUBSECTION, THE FAMILY INDEPENDENCE AGENCY 26 SHALL SERVE A COPY OF THE PETITION ON THE COUNTY TREASURER. THE 27 FAMILY INDEPENDENCE AGENCY MAY REDEEM THE CERTIFIED ABANDONED 02654'99 4 1 PROPERTY ON BEHALF OF A PERSON FOR WHOM THE FAMILY INDEPENDENCE 2 AGENCY FILES A PETITION UNDER THIS SECTION. 3 (4) NOT LATER THAN JANUARY 15 IN EACH TAX YEAR, THE COUNTY 4 TREASURER SHALL FILE A PETITION WITH THE CLERK OF THE CIRCUIT 5 COURT LISTING THE CERTIFIED ABANDONED PROPERTY TO BE FORECLOSED 6 UNDER SECTION 79B FOR THE TOTAL OF THE UNPAID DELINQUENT TAXES, 7 INTEREST, PENALTIES, AND FEES. IF AVAILABLE TO THE COUNTY TREA- 8 SURER, THE PETITION SHALL INCLUDE THE ADDRESS OF EACH PARCEL OF 9 CERTIFIED ABANDONED PROPERTY SET FORTH IN THE PETITION. THE 10 PETITION SHALL SEEK A JUDGMENT IN FAVOR OF THE COUNTY TREASURER 11 FOR THE UNPAID DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES 12 LISTED AGAINST EACH PARCEL OF CERTIFIED ABANDONED PROPERTY. IN 13 DEFAULT, THE PETITION SHALL REQUEST THAT A JUDGMENT BE ENTERED 14 VESTING ABSOLUTE TITLE TO EACH PARCEL OF CERTIFIED ABANDONED 15 PROPERTY IN THE COUNTY TREASURER, WITHOUT RIGHT OF REDEMPTION. 16 BEFORE THE DATE OF THE HEARING ON THE PETITION, THE COUNTY TREA- 17 SURER SHALL FILE WITH THE CLERK OF THE CIRCUIT COURT PROOF OF ANY 18 NOTICE, SERVICE, OR PUBLICATION REQUIRED UNDER THIS ACT OR THE 19 CERTIFICATION OF ABANDONED PROPERTY FOR ACCELERATED FORECLOSURE 20 ACT. 21 (5) NOT LATER THAN JANUARY 30 IN EACH TAX YEAR, THE COUNTY 22 TREASURER SHALL SERVE NOTICE ON ALL PERSONS DETERMINED TO HAVE AN 23 INTEREST IN THE CERTIFIED ABANDONED PROPERTY PURSUANT TO SUBSEC- 24 TION (2). THE NOTICE SHALL BE MADE BY PERSONAL SERVICE OR, IF 25 THE PERSON TO BE NOTIFIED IS LOCATED OUTSIDE OF THIS STATE, BY 26 CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE NOTICE SHALL 27 INCLUDE ALL OF THE FOLLOWING: 02654'99 5 1 (A) THE DATE OF THE HEARING ON THE PETITION FOR FORECLOSURE 2 UNDER SECTION 79B. 3 (B) A STATEMENT THAT THE CERTIFIED ABANDONED PROPERTY WAS 4 CERTIFIED AS ABANDONED PROPERTY PURSUANT TO THE CERTIFICATION OF 5 ABANDONED PROPERTY FOR ACCELERATED FORECLOSURE ACT. 6 (C) THE AMOUNT OF THE UNPAID DELINQUENT TAXES, INTEREST, 7 PENALTIES, AND FEES AND ANY OTHER COSTS DUE ON THE CERTIFIED 8 ABANDONED PROPERTY. 9 (D) A STATEMENT THAT TITLE TO THE CERTIFIED ABANDONED PROP- 10 ERTY WILL VEST ABSOLUTELY IN THE COUNTY TREASURER WITHOUT FURTHER 11 RIGHT OF REDEMPTION, IF THE CERTIFIED ABANDONED PROPERTY IS NOT 12 REDEEMED AS PROVIDED IN SECTION 79B BEFORE JUDGMENT IS ENTERED 13 GRANTING THE PETITION FOR FORECLOSURE UNDER SECTION 79B. 14 (6) THE COUNTY TREASURER SHALL PUBLISH A NOTICE ONCE EACH 15 WEEK FOR 4 CONSECUTIVE WEEKS AFTER A PETITION FOR FORECLOSURE IS 16 FILED UNDER SECTION 79A. THE NOTICE SHALL BE PUBLISHED IN A 17 NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY DESIGNATED BY THE 18 COUNTY TREASURER. THE NEWSPAPER IN WHICH THE NOTICE IS PUBLISHED 19 SHALL FURNISH COPIES OF THE NOTICE TO THE COUNTY TREASURER AND 20 THE COUNTY TREASURER SHALL EXAMINE THE NOTICE FOR ACCURACY. THE 21 COUNTY TREASURER SHALL SEND A COPY OF THE NOTICE TO THE TREASURER 22 AND ASSESSOR OF THE LOCAL TAX COLLECTING UNIT IN WHICH THE CERTI- 23 FIED ABANDONED PROPERTY IS LOCATED. THE PUBLISHED NOTICE SHALL 24 INCLUDE ALL OF THE FOLLOWING: 25 (A) THE INFORMATION PROVIDED IN THE NOTICE SENT PURSUANT TO 26 SUBSECTION (5). 02654'99 6 1 (B) A LIST OF ALL CERTIFIED ABANDONED PROPERTY SUBJECT TO 2 FORECLOSURE, INCLUDING A LEGAL DESCRIPTION OF EACH PARCEL OF 3 CERTIFIED ABANDONED PROPERTY. 4 (7) IF CERTIFIED ABANDONED PROPERTY IS REDEEMED AFTER THE 5 PETITION FOR FORECLOSURE IS FILED UNDER THIS SECTION, THE COUNTY 6 TREASURER SHALL REQUEST THAT THE CIRCUIT COURT REMOVE THAT CERTI- 7 FIED ABANDONED PROPERTY FROM THE PETITION FOR FORECLOSURE FILED 8 UNDER THIS SECTION BEFORE ENTRY OF JUDGMENT FORECLOSING THE CER- 9 TIFIED ABANDONED PROPERTY UNDER SECTION 79B. 10 (8) THE COUNTY TREASURER MAY WITHHOLD FROM THE PETITION FOR 11 FORECLOSURE FILED UNDER THIS SECTION CERTIFIED ABANDONED PROPERTY 12 THE TITLE TO WHICH IS HELD BY MINOR HEIRS OR PERSONS WHO ARE 13 INCOMPETENT OR WITHOUT MEANS OF SUPPORT UNTIL A GUARDIAN IS 14 APPOINTED TO PROTECT THAT PERSON'S RIGHTS AND INTERESTS. IF A 15 COUNTY TREASURER WITHHOLDS CERTIFIED ABANDONED PROPERTY FROM THE 16 PETITION FOR FORECLOSURE UNDER THIS SUBSECTION, A TAXING UNIT'S 17 LIEN FOR TAXES DUE OR THE COUNTY TREASURER'S RIGHT TO INCLUDE THE 18 CERTIFIED ABANDONED PROPERTY IN A SUBSEQUENT PETITION FOR FORE- 19 CLOSURE IS NOT PREJUDICED. 20 SEC. 79B. (1) IF A PETITION FOR FORECLOSURE IS FILED UNDER 21 SECTION 79A, THE CLERK OF THE CIRCUIT COURT IN WHICH THE PETITION 22 IS FILED SHALL IMMEDIATELY PRESENT THAT PETITION TO THE JUDGE OF 23 THAT CIRCUIT COURT. 24 (2) THE COURT SHALL IMMEDIATELY SET THE DATE, TIME, AND 25 PLACE FOR A HEARING ON THE PETITION FOR FORECLOSURE, WHICH HEAR- 26 ING SHALL BE HELD NOT MORE THAN 30 DAYS BEFORE THE MARCH 1 27 IMMEDIATELY SUCCEEDING THE DATE THE PETITION FOR FORECLOSURE IS 02654'99 7 1 FILED. BEFORE THE DATE OF THE HEARING, THE COUNTY TREASURER 2 SHALL FILE WITH THE CLERK OF THE CIRCUIT COURT PROOF OF ANY 3 NOTICE, SERVICE, OR PUBLICATION REQUIRED UNDER THIS ACT OR THE 4 CERTIFICATION OF ABANDONED PROPERTY FOR ACCELERATED FORECLOSURE 5 ACT. 6 (3) A PERSON CLAIMING AN INTEREST IN A PARCEL OF CERTIFIED 7 ABANDONED PROPERTY SET FORTH IN THE PETITION FOR FORECLOSURE MAY 8 CONTEST THE PETITION OR THE VALIDITY OR CORRECTNESS OF THE UNPAID 9 DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES FOR 1 OR MORE OF 10 THE FOLLOWING REASONS: 11 (A) THE CERTIFIED ABANDONED PROPERTY IS NOT ABANDONED 12 PROPERTY. 13 (B) NO LAW AUTHORIZES THE TAX. 14 (C) THE PERSON APPOINTED TO DECIDE WHETHER A TAX SHALL BE 15 LEVIED UNDER A LAW OF THIS STATE ACTED WITHOUT JURISDICTION OR 16 DID NOT IMPOSE THE TAX IN QUESTION. 17 (D) THE PERSON OR CERTIFIED ABANDONED PROPERTY ASSESSED WAS 18 EXEMPT FROM THE TAX IN QUESTION OR WAS NOT LEGALLY ASSESSED. 19 (E) THE TAX HAS BEEN PAID. 20 (F) THE TAX WAS ASSESSED FRAUDULENTLY. 21 (4) A PERSON CLAIMING AN INTEREST IN A PARCEL OF CERTIFIED 22 ABANDONED PROPERTY SET FORTH IN THE PETITION FOR FORECLOSURE WHO 23 DESIRES TO CONTEST THAT PETITION SHALL FILE WRITTEN OBJECTIONS 24 WITH THE CLERK OF THE CIRCUIT COURT AND SERVE THOSE OBJECTIONS ON 25 THE COUNTY TREASURER. THE CIRCUIT COURT MAY ORDER ALL OF THE 26 FOLLOWING IN RULING ON OBJECTIONS TO A PETITION: 02654'99 8 1 (A) AWARD COSTS AGAINST A PERSON CLAIMING THE CERTIFIED 2 ABANDONED PROPERTY IS NOT ABANDONED OR CONTESTING UNPAID 3 DELINQUENT TAXES, INTEREST, PENALTIES, OR FEES IF THE COURT FINDS 4 THAT THE CERTIFIED ABANDONED PROPERTY IS ABANDONED OR THE UNPAID 5 DELINQUENT TAXES, INTEREST, PENALTIES, OR FEES ARE VALID. 6 (B) AWARD COSTS AND A PENALTY OF $100.00 AGAINST ANY PERSON 7 FALSELY CLAIMING AN INTEREST IN A PARCEL OF CERTIFIED ABANDONED 8 PROPERTY INCLUDED IN THE PETITION. 9 (5) IF THE COURT DETERMINES THAT THE OWNER OF CERTIFIED 10 ABANDONED PROPERTY SUBJECT TO FORECLOSURE IS INCOMPETENT OR IS 11 WITHOUT MEANS OF SUPPORT, THE COURT MAY WITHHOLD THAT CERTIFIED 12 ABANDONED PROPERTY FROM FORECLOSURE FOR 1 YEAR OR MAY ENTER AN 13 ORDER EXTENDING THE REDEMPTION PERIOD AS THE COURT DETERMINES TO 14 BE EQUITABLE. IF THE COURT WITHHOLDS CERTIFIED ABANDONED PROP- 15 ERTY FROM FORECLOSURE UNDER THIS SUBSECTION, A TAXING UNIT'S LIEN 16 FOR TAXES DUE IS NOT PREJUDICED AND THAT CERTIFIED ABANDONED 17 PROPERTY SHALL BE INCLUDED IN THE IMMEDIATELY SUCCEEDING YEAR'S 18 TAX FORECLOSURE PROCEEDING. 19 (6) THE CIRCUIT COURT SHALL ENTER JUDGMENT ON A PETITION FOR 20 FORECLOSURE FILED UNDER SECTION 79A NOT LESS THAN 10 DAYS AFTER 21 THE MARCH 1 IMMEDIATELY SUCCEEDING THE DATE THE PETITION FOR 22 FORECLOSURE IS FILED. IF THE CIRCUIT COURT ENTERS A DEFAULT 23 JUDGMENT AT THE HEARING ON THE PETITION FOR FORECLOSURE, THE CIR- 24 CUIT COURT SHALL FORECLOSE THE CERTIFIED ABANDONED PROPERTY AS 25 REQUESTED IN THE PETITION FOR FORECLOSURE. THE CIRCUIT COURT'S 26 JUDGMENT SHALL SPECIFY ALL OF THE FOLLOWING: 02654'99 9 1 (A) THE LEGAL DESCRIPTION AND, IF KNOWN, THE STREET ADDRESS 2 OF THE CERTIFIED ABANDONED PROPERTY FORECLOSED AND THE UNPAID 3 DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES DUE ON EACH 4 PARCEL OF CERTIFIED ABANDONED PROPERTY. 5 (B) THAT FEE SIMPLE TITLE TO CERTIFIED ABANDONED PROPERTY 6 FORECLOSED BY THE JUDGMENT IS VESTED ABSOLUTELY IN THE COUNTY 7 TREASURER, WITHOUT ANY FURTHER RIGHTS OF REDEMPTION. 8 (C) THAT ALL LIENS AND ENCUMBRANCES AGAINST THE CERTIFIED 9 ABANDONED PROPERTY OF ANY KIND, EXCEPT CURRENT TAXES AND FUTURE 10 INSTALLMENTS OF SPECIAL ASSESSMENTS DUE AFTER THE IMMEDIATELY 11 SUCCEEDING JUNE 30, ARE TERMINATED. 12 (D) THAT THE COUNTY TREASURER HAS GOOD AND MARKETABLE FEE 13 SIMPLE TITLE TO THE CERTIFIED ABANDONED PROPERTY AND ANY SUBSE- 14 QUENT TRANSFER OF TITLE TO THAT CERTIFIED ABANDONED PROPERTY 15 SHALL BE BY WARRANTY DEED EXECUTED BY THE COUNTY TREASURER. 16 (E) THAT ANY RIGHTS OR INTEREST CLAIMED BY ANY PERSON TO THE 17 CERTIFIED ABANDONED PROPERTY IS TERMINATED AND THAT PERSON IS 18 ORDERED TO RELEASE THOSE RIGHTS OR THAT INTEREST TO THE COUNTY 19 TREASURER AND THAT THE CIRCUIT COURT SHALL ISSUE A WRIT OF POS- 20 SESSION OR RESTITUTION TO THE SHERIFF OR OTHER PROPER OFFICER OF 21 THE COUNTY IN WHICH THE CERTIFIED ABANDONED PROPERTY IS LOCATED 22 IN FAVOR OF A PERSON HOLDING A WARRANTY DEED EXECUTED BY THE 23 COUNTY TREASURER. 24 (7) FEE SIMPLE TITLE TO CERTIFIED ABANDONED PROPERTY SET 25 FORTH IN A PETITION FOR FORECLOSURE FILED UNDER SECTION 79A ON 26 WHICH DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES ARE NOT 27 PAID PRIOR TO THE ENTRY OF JUDGMENT SHALL VEST ABSOLUTELY IN THE 02654'99 10 1 COUNTY TREASURER UPON ENTRY OF JUDGMENT, AND THE COUNTY TREASURER 2 SHALL HAVE ABSOLUTE TITLE TO THE CERTIFIED ABANDONED PROPERTY 3 WITH THE RIGHT TO ENFORCE THE TITLE TO THE CERTIFIED ABANDONED 4 PROPERTY AS A FREEHOLDER. THE COUNTY TREASURER'S TITLE IS NOT 5 SUBJECT TO ANY RECORDED OR UNRECORDED LIEN AND SHALL NOT BE 6 STAYED OR HELD INVALID EXCEPT AS PROVIDED IN SUBSECTION (8). 7 (8) THE COUNTY TREASURER OR A PERSON DETERMINED TO HAVE AN 8 INTEREST UNDER SECTION 79A(2) IN CERTIFIED ABANDONED PROPERTY 9 FORECLOSED UNDER THIS SECTION MAY APPEAL TO THE COURT OF APPEALS 10 THE CIRCUIT COURT'S JUDGMENT FORECLOSING CERTIFIED ABANDONED 11 PROPERTY. THE CIRCUIT COURT'S JUDGMENT FORECLOSING CERTIFIED 12 ABANDONED PROPERTY SHALL NOT BE STAYED OR HELD INVALID UNTIL THE 13 COURT OF APPEALS HAS REVERSED, MODIFIED, OR AFFIRMED THAT 14 JUDGMENT. TO APPEAL THE CIRCUIT COURT'S JUDGMENT FORECLOSING 15 CERTIFIED ABANDONED PROPERTY, A PERSON CONTESTING WHETHER THE 16 CERTIFIED ABANDONED PROPERTY IS ABANDONED PROPERTY OR THE VALID- 17 ITY OF THE DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES FOR 18 WHICH THE CERTIFIED ABANDONED PROPERTY WAS FORECLOSED SHALL PAY 19 THE AMOUNT DETERMINED TO BE DUE TO THE COUNTY TREASURER WITHIN 10 20 DAYS AFTER THE CIRCUIT COURT'S JUDGMENT IS ENTERED, TOGETHER WITH 21 A NOTICE OF APPEAL. IF THE CIRCUIT COURT'S JUDGMENT IS AFFIRMED 22 ON APPEAL, THE AMOUNT DETERMINED TO BE DUE SHALL BE RETAINED BY 23 THE COUNTY TREASURER AND CREDITED TO THE PROPER FUND OR ACCOUNT 24 IN THAT COUNTY. IF THE CIRCUIT COURT'S JUDGMENT IS REVERSED OR 25 MODIFIED ON APPEAL, THE COUNTY TREASURER SHALL REFUND THE AMOUNT 26 DETERMINED TO BE DUE TO THE PERSON WHO APPEALED THE JUDGMENT IN 27 ACCORDANCE WITH THE ORDER OF THE COURT OF APPEALS. 02654'99 11 1 (9) AS USED IN THIS SECTION, "ABANDONED PROPERTY" MEANS THAT 2 TERM AS DEFINED IN SECTION 2 OF THE CERTIFICATION OF ABANDONED 3 PROPERTY FOR ACCELERATED FORECLOSURE ACT. 4 SEC. 79C. FOR TAXES LEVIED AFTER DECEMBER 31, 1998, A 5 CHANGE IN OWNERSHIP OF CERTIFIED ABANDONED PROPERTY ON WHICH 6 TAXES HAVE BEEN RETURNED AS DELINQUENT OR THE CREATION OF ANY NEW 7 PROPERTY INTEREST IN CERTIFIED ABANDONED PROPERTY ON WHICH TAXES 8 HAVE BEEN RETURNED AS DELINQUENT, AFTER THE OCTOBER 1 IMMEDIATELY 9 PRECEDING THE COURT HEARING HELD PURSUANT TO SECTION 79B, SHALL 10 NOT CREATE ANY NEW INTEREST IN THE CERTIFIED ABANDONED PROPERTY 11 FOR WHICH NOTICE OF ANY SUBSEQUENT PROCEEDINGS UNDER THIS ACT IS 12 REQUIRED. 13 SEC. 79D. A COUNTY TREASURER IS IMMUNE FROM ANY LIABILITY 14 THAT MAY ACCRUE SOLELY FROM HOLDING TITLE TO THE CERTIFIED ABAN- 15 DONED PROPERTY FORECLOSED UNDER SECTION 79B. 16 SEC. 79E. (1) NOT LATER THAN THE FIRST TUESDAY IN JULY 17 IMMEDIATELY SUCCEEDING THE ENTRY OF JUDGMENT UNDER SECTION 79B 18 VESTING ABSOLUTE TITLE TO CERTIFIED ABANDONED PROPERTY IN THE 19 COUNTY TREASURER, A CITY, VILLAGE, OR TOWNSHIP THAT OPERATES AN 20 URBAN HOMESTEADING PROGRAM PURSUANT TO THE URBAN HOMESTEAD ACT 21 MAY PURCHASE ANY CERTIFIED ABANDONED PROPERTY LOCATED WITHIN THAT 22 CITY, VILLAGE, OR TOWNSHIP SET FORTH IN THE JUDGMENT AND SUBJECT 23 TO SALE UNDER THIS SECTION FOR USE IN THAT URBAN HOMESTEADING 24 PROGRAM BY PAYMENT TO THE COUNTY TREASURER OF THE MINIMUM BID. 25 IF CERTIFIED ABANDONED PROPERTY IS PURCHASED BY A CITY, VILLAGE, 26 OR TOWNSHIP UNDER THIS SUBSECTION, THE COUNTY TREASURER SHALL 27 CONVEY THE CERTIFIED ABANDONED PROPERTY BY WARRANTY DEED TO THE 02654'99 12 1 PURCHASING CITY, VILLAGE, OR TOWNSHIP WITHIN 30 DAYS. THE 2 WARRANTY DEED SHALL VEST FEE SIMPLE TITLE TO THE CERTIFIED ABAN- 3 DONED PROPERTY IN THE CITY, VILLAGE, OR TOWNSHIP. 4 (2) SUBJECT TO SUBSECTION (1), BEGINNING ON THE THIRD 5 TUESDAY IN JULY IMMEDIATELY SUCCEEDING THE ENTRY OF THE JUDGMENT 6 UNDER SECTION 79B VESTING ABSOLUTE TITLE TO CERTIFIED ABANDONED 7 PROPERTY IN THE COUNTY TREASURER, THE COUNTY TREASURER, OR HIS OR 8 HER AUTHORIZED REPRESENTATIVE, SHALL HOLD 1 OR MORE PROPERTY 9 SALES AT 1 OR MORE CONVENIENT LOCATIONS AT WHICH CERTIFIED ABAN- 10 DONED PROPERTY FORECLOSED BY THE JUDGMENT ENTERED UNDER SECTION 11 79B SHALL BE SOLD BY AUCTION SALE. THE SALE OR SALES SHALL BE 12 COMPLETED WITHIN 15 DAYS. CERTIFIED ABANDONED PROPERTY SHALL BE 13 SOLD TO THE PERSON BIDDING THE HIGHEST AMOUNT ABOVE THE MINIMUM 14 BID. THE COUNTY TREASURER MAY REQUIRE FULL PAYMENT BY CASH, CER- 15 TIFIED CHECK, OR MONEY ORDER AT THE CLOSE OF EACH DAY'S BIDDING. 16 NOT MORE THAN 30 DAYS AFTER THE DATE OF A SALE UNDER THIS SUBSEC- 17 TION, THE COUNTY TREASURER SHALL CONVEY THE CERTIFIED ABANDONED 18 PROPERTY BY WARRANTY DEED TO THE PERSON BIDDING THE HIGHEST 19 AMOUNT ABOVE THE MINIMUM BID. THE DEED SHALL VEST FEE SIMPLE 20 TITLE TO THE CERTIFIED ABANDONED PROPERTY IN THE PERSON BIDDING 21 THE HIGHEST AMOUNT ABOVE THE MINIMUM BID. 22 (3) AFTER THE CONCLUSION OF THE SALE HELD PURSUANT TO SUB- 23 SECTION (2) AND NOT LATER THAN THE FIRST TUESDAY IN SEPTEMBER 24 IMMEDIATELY SUCCEEDING THAT SALE, A CITY, VILLAGE, OR TOWNSHIP 25 MAY PURCHASE ANY CERTIFIED ABANDONED PROPERTY NOT PREVIOUSLY SOLD 26 UNDER SUBSECTION (1) OR (2) BY PAYING THE MINIMUM BID TO THE 27 COUNTY TREASURER. IF CERTIFIED ABANDONED PROPERTY IS PURCHASED 02654'99 13 1 BY A CITY, VILLAGE, OR TOWNSHIP UNDER THIS SUBSECTION, THE COUNTY 2 TREASURER SHALL CONVEY THE CERTIFIED ABANDONED PROPERTY BY WAR- 3 RANTY DEED TO THE PURCHASING CITY, VILLAGE, OR TOWNSHIP WITHIN 30 4 DAYS. THE WARRANTY DEED SHALL VEST FEE SIMPLE TITLE TO THE CER- 5 TIFIED ABANDONED PROPERTY IN THE CITY, VILLAGE, OR TOWNSHIP. 6 (4) BEGINNING ON THE THIRD TUESDAY IN SEPTEMBER IMMEDIATELY 7 SUCCEEDING THE SALE HELD PURSUANT TO SUBSECTION (2), ALL CERTI- 8 FIED ABANDONED PROPERTY NOT PREVIOUSLY SOLD BY THE COUNTY TREA- 9 SURER UNDER SUBSECTION (1), (2), OR (3) SHALL BE REOFFERED FOR 10 SALE, SUBJECT TO THE SAME REQUIREMENTS SET FORTH IN SUBSECTION 11 (2). 12 (5) BEGINNING ON THE THIRD TUESDAY IN NOVEMBER IMMEDIATELY 13 SUCCEEDING THE SALE HELD PURSUANT TO SUBSECTION (4), ALL CERTI- 14 FIED ABANDONED PROPERTY NOT PREVIOUSLY SOLD UNDER SUBSECTION (1), 15 (2), (3), OR (4) SHALL AGAIN BE REOFFERED FOR SALE. THE SALE IS 16 SUBJECT TO THE REQUIREMENTS SET FORTH IN SUBSECTION (2), EXCEPT 17 THAT THE MINIMUM BID SHALL NOT BE REQUIRED. 18 (6) ON DECEMBER 30 IMMEDIATELY SUCCEEDING THE DATE OF THE 19 SALE UNDER SUBSECTION (5), ALL CERTIFIED ABANDONED PROPERTY NOT 20 PREVIOUSLY SOLD BY THE COUNTY TREASURER UNDER THIS SECTION SHALL 21 BE TRANSFERRED BY WARRANTY DEED TO THE CITY, VILLAGE, OR TOWNSHIP 22 IN WHICH THE CERTIFIED ABANDONED PROPERTY IS LOCATED. THE DEED 23 SHALL VEST FEE SIMPLE TITLE TO THE CERTIFIED ABANDONED PROPERTY 24 IN THE CITY, VILLAGE, OR TOWNSHIP. THE CITY, VILLAGE, OR TOWN- 25 SHIP TO WHICH CERTIFIED ABANDONED PROPERTY IS TRANSFERRED UNDER 26 THIS SUBSECTION IS IMMUNE FROM ANY LIABILITY THAT MAY ACCRUE 27 SOLELY FROM HOLDING TITLE TO THE CERTIFIED ABANDONED PROPERTY 02654'99 14 1 TRANSFERRED. THE CITY, VILLAGE, OR TOWNSHIP SHALL DO 1 OR MORE 2 OF THE FOLLOWING WITH THE CERTIFIED ABANDONED PROPERTY: 3 (A) DEMOLISH ANY UNSAFE STRUCTURE LOCATED ON THE CERTIFIED 4 ABANDONED PROPERTY. 5 (B) REMEDIATE ANY ENVIRONMENTAL CONTAMINATION FOUND ON THE 6 CERTIFIED ABANDONED PROPERTY OR NOTIFY THE DEPARTMENT OF ENVIRON- 7 MENTAL QUALITY OR OTHER APPROPRIATE AGENCY OF THE EXISTENCE OF 8 ENVIRONMENTAL CONTAMINATION ON THE CERTIFIED ABANDONED PROPERTY. 9 (C) SELL THE CERTIFIED ABANDONED PROPERTY TO A PRIVATE PUR- 10 CHASER BY AUCTION OR DIRECT MARKETING. 11 (D) MAKE THE CERTIFIED ABANDONED PROPERTY AVAILABLE UNDER 12 THE URBAN HOMESTEAD ACT. 13 (E) TRANSFER THE CERTIFIED ABANDONED PROPERTY TO A NONPROFIT 14 ORGANIZATION FOR REHABILITATION AND REUSE. 15 (F) RETAIN THE CERTIFIED ABANDONED PROPERTY FOR A SPECIFIC 16 PUBLIC PURPOSE, INCLUDING, BUT NOT LIMITED TO, A PARK, ZOO, OR 17 UNIVERSITY, OR AS PART OF AN EXISTING PROJECT WITH AN ANTICIPATED 18 COMPLETION DATE OF NOT MORE THAN 2 YEARS AFTER THE CERTIFIED 19 ABANDONED PROPERTY IS TRANSFERRED TO THE CITY, VILLAGE, OR 20 TOWNSHIP. 21 (G) NOT MORE THAN 90 DAYS AFTER THE CERTIFIED ABANDONED 22 PROPERTY IS TRANSFERRED TO THE CITY, VILLAGE, OR TOWNSHIP, TRANS- 23 FER THE CERTIFIED ABANDONED PROPERTY TO THIS STATE. 24 (7) A COUNTY TREASURER SHALL DEPOSIT THE PROCEEDS FROM THE 25 SALE OF CERTIFIED ABANDONED PROPERTY UNDER THIS SECTION INTO A 26 RESTRICTED ACCOUNT DESIGNATED AS THE "CERTIFIED ABANDONED 27 PROPERTY SALES PROCEEDS FOR THE YEAR ________". PROCEEDS IN THAT 02654'99 15 1 ACCOUNT SHALL ONLY BE USED BY THE COUNTY TREASURER FOR THE 2 FOLLOWING PURPOSES IN THE FOLLOWING ORDER: 3 (A) FIRST, ALL COSTS OF THE SALE OF CERTIFIED ABANDONED 4 PROPERTY FOR THE YEAR SHALL BE PAID. 5 (B) SECOND, ANY COSTS OF THE FORECLOSURE PROCEEDINGS FOR THE 6 YEAR, INCLUDING, BUT NOT LIMITED TO, COSTS OF MAILING, PUBLICA- 7 TION, PERSONAL SERVICE, AND OUTSIDE CONTRACTORS, SHALL BE PAID. 8 (C) THIRD, ANY COSTS FOR THE SALE OF CERTIFIED ABANDONED 9 PROPERTY OR FORECLOSURE PROCEEDINGS FOR ANY PRIOR YEAR THAT HAVE 10 NOT BEEN PAID OR REIMBURSED FROM THAT PRIOR YEAR'S CERTIFIED 11 ABANDONED PROPERTY SALES PROCEEDS SHALL BE PAID. 12 (D) FOURTH, 5% OF THE BALANCE OF THE PROCEEDS OF THE SALE 13 AFTER THE COSTS SET FORTH IN SUBDIVISIONS (A), (B), AND (C) ARE 14 PAID SHALL BE RESERVED FOR COSTS RELATED TO FUTURE YEARS' FORE- 15 CLOSURES AND CERTIFIED ABANDONED PROPERTY SALES. 16 (E) FIFTH, THE DELINQUENT TAX REVOLVING FUND SHALL BE REIM- 17 BURSED FOR ANY AMOUNTS THAT HAVE NOT BEEN CHARGED BACK TO A LOCAL 18 UNIT OF GOVERNMENT IF THE LOCAL UNIT OF GOVERNMENT WAS PAID THE 19 DELINQUENT TAX ON CERTIFIED ABANDONED PROPERTY OFFERED FOR SALE 20 UNDER THIS SECTION FROM THE DELINQUENT TAX REVOLVING FUND, 21 WHETHER OR NOT THAT CERTIFIED ABANDONED PROPERTY WAS SOLD. 22 (F) SIXTH, ANY REMAINING BALANCE SHALL BE DISTRIBUTED ON A 23 PRO RATA BASIS TO ALL UNITS OF GOVERNMENT IN THE PROPORTION THAT 24 THEIR TOTAL AD VALOREM TAXES BEAR TO THE AMOUNT DUE ON THE CERTI- 25 FIED ABANDONED PROPERTY AS SET FORTH IN THE JUDGMENT ENTERED 26 UNDER SECTION 79B. 02654'99 16 1 (8) TWO OR MORE COUNTY TREASURERS MAY ELECT TO HOLD A JOINT 2 SALE OF CERTIFIED ABANDONED PROPERTY AS PROVIDED IN THIS 3 SECTION. IF 2 OR MORE COUNTY TREASURERS ELECT TO HOLD A JOINT 4 SALE, CERTIFIED ABANDONED PROPERTY MAY BE SOLD UNDER THIS SECTION 5 AT A LOCATION OUTSIDE OF THE COUNTY IN WHICH THE CERTIFIED ABAN- 6 DONED PROPERTY IS LOCATED. THE SALE MAY BE CONDUCTED BY ANY 7 COUNTY TREASURER PARTICIPATING IN THE JOINT SALE. THE SALE OF 8 CERTIFIED ABANDONED PROPERTY UNDER THIS SECTION MAY BE HELD IN 9 CONJUNCTION WITH A SALE HELD PURSUANT TO SECTION 78l. 10 (9) AS USED IN THIS SECTION, "MINIMUM BID" IS THE MINIMUM 11 AMOUNT ESTABLISHED BY THE COUNTY TREASURER FOR WHICH CERTIFIED 12 ABANDONED PROPERTY MAY BE SOLD UNDER THIS SECTION. THE MINIMUM 13 BID SHALL INCLUDE ALL OF THE FOLLOWING: 14 (A) ALL DELINQUENT TAXES, INTEREST, PENALTIES, AND FEES DUE 15 ON THE CERTIFIED ABANDONED PROPERTY AS OF MARCH 1 AS PROVIDED IN 16 THE JUDGMENT ENTERED UNDER SECTION 79B. 17 (B) THE EXPENSES OF ADMINISTERING THE SALE, INCLUDING ALL 18 PREPARATIONS FOR THE SALE. THE COUNTY TREASURER SHALL ESTIMATE 19 THE COST OF PREPARING FOR AND ADMINISTERING THE ANNUAL SALE FOR 20 PURPOSES OF PROPORTIONING THE COST FOR EACH PARCEL OF CERTIFIED 21 ABANDONED PROPERTY INCLUDED IN THE SALE. 22 (C) ALL TAXES, INTEREST, PENALTIES, AND FEES DUE UP TO THE 23 JUNE 30 IMMEDIATELY PRECEDING THE DATE OF SALE. 24 SEC. 79F. (1) IF A COUNTY TREASURER BELIEVES, OR HAS REASON 25 TO BELIEVE, THAT ANY CERTIFIED ABANDONED PROPERTY SUBJECT TO SALE 26 UNDER SECTION 79E CONTAINS ENVIRONMENTALLY HAZARDOUS MATERIALS 27 AND WOULD BE ELIGIBLE FOR INCLUSION IN A PROJECT AUTHORIZED BY 02654'99 17 1 THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 PA 381, MCL 2 125.2651 TO 125.2672, OR IS IN A MINING AREA AS DEFINED IN SEC- 3 TION 63101 OF THE NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION 4 ACT, 1994 PA 451, MCL 324.63101, THE COUNTY TREASURER MAY WITH- 5 HOLD THE CERTIFIED ABANDONED PROPERTY FROM THE SALE PROVIDED FOR 6 UNDER SECTION 79E. IF THE COUNTY TREASURER WITHHOLDS CERTIFIED 7 ABANDONED PROPERTY FROM THE SALE PROVIDED FOR UNDER SECTION 79E 8 AS PROVIDED IN THIS SUBSECTION, THE COUNTY TREASURER MAY TRANSFER 9 THE CERTIFIED ABANDONED PROPERTY WITHHELD TO THE DEPARTMENT OF 10 NATURAL RESOURCES. 11 (2) IF A COUNTY TREASURER TRANSFERS CERTIFIED ABANDONED 12 PROPERTY TO THE DEPARTMENT OF NATURAL RESOURCES PURSUANT TO SUB- 13 SECTION (1), THE COUNTY TREASURER SHALL FILE A CERTIFICATE IN 14 SUBSTANTIALLY THE FOLLOWING FORM WITH THE REGISTER OF DEEDS IN 15 THE COUNTY IN WHICH THE CERTIFIED ABANDONED PROPERTY IS LOCATED: 16 "CERTIFICATE OF COUNTY TREASURER 17 TRANSFERRING TITLE TO CERTIFIED ABANDONED PROPERTY TO THE 18 STATE OF MICHIGAN, DEPARTMENT OF NATURAL RESOURCES 19 THE UNDERSIGNED COUNTY TREASURER OF THE COUNTY OF 20 _________________________, HEREBY CERTIFIES AS FOLLOWS: 21 (A) THE CERTIFIED ABANDONED PROPERTY DESCRIBED BELOW WAS 22 FORECLOSED PURSUANT TO A JUDGMENT OF THE CIRCUIT COURT ENTERED ON 23 (INSERT DATE HERE) FOR NONPAYMENT OF TAXES AND THE FORMER 24 OWNER(S) HAVE LOST ALL RIGHTS, TITLE, AND INTEREST IN THAT CERTI- 25 FIED ABANDONED PROPERTY. 26 (B) BASED UPON INFORMATION AND BELIEF, EITHER THE COST OF 27 REMEDIATING THE ENVIRONMENTAL HAZARDS ON THE CERTIFIED ABANDONED 02654'99 18 1 PROPERTY EXCEEDS THE FAIR MARKET VALUE OF THE CERTIFIED ABANDONED 2 PROPERTY, INCLUDING THE AMOUNTS OWING ON THE TAX FORECLOSURE PRO- 3 CEEDING, OR THE CERTIFIED ABANDONED PROPERTY IS IN A MINING 4 AREA. 5 (C) PURSUANT TO SECTION 79F OF THE GENERAL PROPERTY TAX ACT, 6 1893 PA 206, MCL 211.79F, I HEREBY CONVEY ALL RIGHTS, TITLE, AND 7 INTEREST TO THE FOLLOWING DESCRIBED CERTIFIED ABANDONED PROPERTY 8 LOCATED IN THE __________ OF _________________________, COUNTY OF 9 _________________________: 10 (INSERT LEGAL DESCRIPTION HERE) 11 TO THE STATE OF MICHIGAN, DEPARTMENT OF NATURAL RESOURCES. 12 _________________________, COUNTY TREASURER 13 COUNTY OF ______________________________ 14 DATED: ______________________________". 15 (3) A REGISTER OF DEEDS SHALL NOT CHARGE ANY FEE FOR RECORD- 16 ING A CERTIFICATE UNDER THIS SECTION. 17 (4) A COUNTY TREASURER SHALL SEND A COPY OF A CERTIFICATE 18 FILED UNDER THIS SECTION TO THE DIRECTOR OF THE DEPARTMENT OF 19 NATURAL RESOURCES AND THE ASSESSOR OF THE LOCAL TAX COLLECTING 20 UNIT IN WHICH THE CERTIFIED ABANDONED PROPERTY IS LOCATED. 21 Enacting section 1. This amendatory act does not take 22 effect unless all of the following bills of the 90th Legislature 23 are enacted into law: 24 (a) Senate Bill No. 343. 25 (b) Senate Bill No. 487. 26 02654'99 19 1 (c) Senate Bill No. 488. 2 02654'99 Final page. FDD