SENATE BILL No. 1004

 

 

February 18, 2004, Introduced by Senators CHERRY, JACOBS, GOSCHKA and BIRKHOLZ and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1893 PA 206, entitled                                             

                                                                                

    "The general property tax act,"                                             

                                                                                

    by amending section 78 (MCL 211.78), as added by 1999 PA 123.               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   this state a continuing need to strengthen and revitalize the               

                                                                                

3   economy of this state and its municipalities by encouraging the             

                                                                                

4   efficient and expeditious return to productive use of property              

                                                                                

5   returned for delinquent taxes.  Therefore, the powers granted in            

                                                                                

6   this act relating to the return of property for delinquent taxes            

                                                                                

7   constitute the performance by this state or a political                     

                                                                                

8   subdivision of this state of essential public purposes and                  

                                                                                

9   functions.                                                                  

                                                                                

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

                                                                                

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

                                                                                


                                                                                

1   of property for delinquent taxes satisfy the minimum requirements           

                                                                                

2   of due process required under the constitution of this state and            

                                                                                

3   the constitution of the United States but that those provisions             

                                                                                

4   do not create new rights beyond those required under the state              

                                                                                

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

                                                                                

6   The failure of this state or a political subdivision of this                

                                                                                

7   state to follow a requirement of this act relating to the return,           

                                                                                

8   forfeiture, or foreclosure of property for delinquent taxes shall           

                                                                                

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

                                                                                

10  this state or a political subdivision of this state unless the              

                                                                                

11  minimum requirements of due process accorded under the state                

                                                                                

12  constitution of 1963 or the constitution of the United States are           

                                                                                

13  violated.                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  treasurer and the county executive, if any, may elect to have               

                                                                                

19  this state foreclose property under this act forfeited to the               

                                                                                

20  county treasurer under section 78g.  At any time during December            

                                                                                

21  2004, the county board of commissioners of a county, by a                   

                                                                                

22  resolution adopted at a meeting held pursuant to the open                   

                                                                                

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

                                                                                

24  written concurrence of the county treasurer and county executive,           

                                                                                

25  if any, may do either of the following:                                     

                                                                                

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

                                                                                

27  act forfeited to the county treasurer under section 78g.                    


                                                                                

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

                                                                                

2   this state foreclose property under this act forfeited to the               

                                                                                

3   county treasurer under section 78g.                                         

                                                                                

4       (4) The foreclosure of forfeited property by a county is                    

                                                                                

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

                                                                                

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

                                                                                

7   state constitution of 1963.                                                 

                                                                                

8       (5) A county and a local governmental unit within that county               

                                                                                

9   may enter into an agreement for the collection of property taxes            

                                                                                

10  or the enforcement and consolidation of tax liens within that               

                                                                                

11  local governmental unit.  A local governmental unit shall not               

                                                                                

12  establish a delinquent tax revolving fund under section 87b.                

                                                                                

13      (6) Notwithstanding any other provision of law to the                       

                                                                                

14  contrary, this state and a foreclosing governmental unit may form           

                                                                                

15  a group self-insurance pool to offer title insurance coverage for           

                                                                                

16  property subject to forfeiture, foreclosure, and sale under this            

                                                                                

17  act.                                                                        

                                                                                

18      (7)  (6)  As used in this section and sections 78a through                  

                                                                                

19  157 for purposes of the collection of taxes returned as                     

                                                                                

20  delinquent:                                                                 

                                                                                

21      (a) "Foreclosing governmental unit" means 1 of the                          

                                                                                

22  following:                                                                  

                                                                                

23                                                                               (i) The treasurer of a county.                                                      

                                                                                

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

                                                                                

25  (3) to have this state foreclose property under this act                    

                                                                                

26  forfeited to the county treasurer under section 78g.                        

                                                                                

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


                                                                                

1   governmental unit may seek a judgment of foreclosure under                  

                                                                                

2   section 78k if the property is not redeemed as provided under               

                                                                                

3   this act, but does not acquire a right to possession or any other           

                                                                                

4   interest in the property.