HB-6170, As Passed House, September 25, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6170

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.

with the county clerk.

(d) For a business entity other than a partnership, a search

of business entity records filed with the department of 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.

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.

(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.

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.

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.

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