HOUSE BILL No. 6170

May 22, 2008, Introduced by Reps. Ball, Byrnes, Tobocman, Hopgood, Scott, Accavitti, Melton, Meisner, Johnson, Miller, Polidori, Leland, Robert Jones, Sak, Jackson, Kathleen Law, Alma Smith, Condino, Bauer, Bennett, Gonzales, Bieda, Farrah, Dean, Meadows and Clemente and referred to the Committee on Intergovernmental, Urban and Regional Affairs.

 

     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 the property, to those owners of the property identified under

 

subsection (1), and to a person entitled to notice of the return of

 

delinquent taxes under section 78a(4). 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 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.