SB-0574, As Passed House, May 14, 2014
SUBSTITUTE FOR
SENATE BILL NO. 574
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 78 (MCL 211.78), as amended by 2008 PA 512.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 78. (1) The legislature finds that there exists in this
state a continuing need to strengthen and revitalize the economy of
this state and its municipalities by encouraging the efficient and
expeditious return to productive use of property returned for
delinquent taxes. Therefore, the powers granted in this act
relating to the return of property for delinquent taxes constitute
the performance by this state or a political subdivision of this
state of essential public purposes and functions.
(2) It is the intent of the legislature that the provisions of
this act relating to the return, forfeiture, and foreclosure of
property for delinquent taxes satisfy the minimum requirements of
due process required under the constitution of this state and the
constitution of the United States but that those provisions do not
create new rights beyond those required under the state
constitution of 1963 or the constitution of the United States. The
failure of this state or a political subdivision of this state to
follow a requirement of this act relating to the return,
forfeiture, or foreclosure of property for delinquent taxes shall
not be construed to create a claim or cause of action against this
state or a political subdivision of this state unless the minimum
requirements of due process accorded under the state constitution
of 1963 or the constitution of the United States are violated.
(3) Not later than December 1, 1999, the county board of
commissioners of a county, by a resolution adopted at a meeting
held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and with the written concurrence of the county treasurer
and the county executive, if any, may elect to have this state
foreclose property under this act forfeited to the county treasurer
under section 78g. At any time during December 2004, the county
board of commissioners of a county, by a resolution adopted at a
meeting held pursuant to the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, and with the written concurrence of the county
treasurer and county executive, if any, may do either of the
following:
(a) Elect to have this state foreclose property under this act
forfeited to the county treasurer under section 78g.
(b) Rescind its prior resolution by which it elected to have
this state foreclose property under this act forfeited to the
county treasurer under section 78g.
(4) Beginning January 1, 2009 through March 1, 2009, the
county board of commissioners of a county in which is located an
eligible city, as that term is defined in section 89d, may, by a
resolution adopted at a meeting held pursuant to the open meetings
act, 1976 PA 267, MCL 15.261 to 15.275, and with the written
concurrence of the county treasurer and county executive, if any,
rescind its prior resolution by which it elected to have this state
foreclose property under this act forfeited to the county treasurer
under section 78g.
(5) The county board of commissioners of a county that has
elected to have property forfeited under section 78g foreclosed by
this state under this act may, by a resolution adopted at a meeting
held pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and with the written concurrence of the county treasurer
and county executive, if any, rescind its prior resolution by which
it elected to have this state foreclose property under this act
forfeited to the county treasurer under section 78g. A county board
of commissioners shall forward a copy of the resolution and any
concurrence to the department of treasury not later than November
30 in the year in which the resolution is adopted. A county that
rescinds its prior election under this subsection shall act as the
foreclosing governmental unit under this act for all property
forfeited to the county treasurer under section 78g after February
1 in the year immediately following the year in which the
resolution is adopted.
(6) (5)
The foreclosure of forfeited
property by a county is
voluntary and is not an activity or service required of units of
local government for purposes of section 29 of article IX of the
state constitution of 1963.
(7) (6)
A county and a local governmental
unit within that
county may enter into an agreement for the collection of property
taxes or the enforcement and consolidation of tax liens within that
local governmental unit. A local governmental unit shall not
establish a delinquent tax revolving fund under section 87b.
(8) (7)
As used in this section and
sections 78a through 155
for purposes of the collection of taxes returned as delinquent:
(a) "Foreclosing governmental unit" means 1 of the following:
(i) The treasurer of a county.
(ii) This state if the county has elected under subsection (3)
to have this state foreclose property under this act forfeited to
the county treasurer under section 78g.
(b) "Forfeited" or "forfeiture" means a foreclosing
governmental unit may seek a judgment of foreclosure under section
78k if the property is not redeemed as provided under this act, but
does not acquire a right to possession or any other interest in the
property.