FORECLOSING GOVERNMENTAL UNIT                                                               S.B. 574:

                                                                                               COMMITTEE SUMMARY

Senate Bill 574 (as introduced 10-2-13)

Sponsor:  Senator Rick Jones

Committee:  Local Government and Elections

Date Completed:  12-4-13

CONTENT

The bill would amend the General Property Tax Act to allow a county board of commissioners between December 1, 2013, and November 30, 2014, to rescind a previous election to have the State foreclose forfeited property in the county.

Under the Act, on March 1 in each tax year, certified abandoned property and property that is delinquent for taxes, interest, penalties, and fees for the immediately preceding 12 months or more is forfeited to the county treasurer.

In the past, the Act allowed the board of commissioners of a county, by resolution and with the written concurrence of the county treasurer and county executive, to elect to have the State foreclose forfeited property.  Under the bill, beginning December 1, 2013, through November 30, 2014, by a resolution adopted at a meeting held pursuant to the Open Meetings Act and with the written concurrence of the county treasurer and county executive, if any, the board of commissioners of a county that had elected to have the State foreclose property could rescind its prior resolution.  The board of commissioners would have to forward a copy of the rescinding resolution and any concurrence to the Department of Treasury by November 30, 2014.

A county that rescinded its prior election by January 30, 2014, would have to act as the foreclosing governmental unit for all property forfeited to the county treasurer after February 1, 2014.  A county that rescinded its prior election between January 31, 2014, and November 30, 2014, would have to act as the foreclosing governmental unit for all property forfeited after February 1, 2015.

MCL 211.78                                                                 Legislative Analyst:  Julie Cassidy

FISCAL IMPACT

The bill would likely have an indeterminate and negligible impact on State and local unit revenue, but could change the distribution of expenses and revenue associated with foreclosures in affected counties.

                                                                                           Fiscal Analyst:  David Zin

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.