HB-4039, As Passed Senate, November 5, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4039

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 78f and 78i (MCL 211.78f and 211.78i), section

78f as amended by 2003 PA 263 and section 78i as amended by 2006 PA

611, and by adding section 78s.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 78f. (1) Except as otherwise provided in section 79 for

certified abandoned property, not later than the February 1

immediately succeeding the date that unpaid taxes were returned to

the county treasurer for forfeiture, foreclosure, and sale under

section 60a(1) or (2) or returned to the county treasurer as

delinquent under section 78a, the county treasurer shall send a

notice by certified mail, return receipt requested, to the person

to whom a tax bill for property returned for delinquent taxes was

last sent and, if different, to the person identified as the owner

of property returned for delinquent taxes as shown on the current

records of the county treasurer and to those persons identified

under section 78e(2). The notice required under this subsection

shall include all of the following:

(a) The date property on which those unpaid taxes were

returned as delinquent will be forfeited to the county treasurer

for the unpaid delinquent taxes, interest, penalties, and fees.

(b) A statement that a person who holds a legal interest in

the property may lose that interest as a result of the forfeiture

and subsequent foreclosure proceeding.

the street address of the property, if available.

(d) The person to whom the notice is addressed.

(e) The unpaid delinquent taxes, interest, penalties, and fees

due on the property.

(f) A schedule of the additional interest, penalties, and fees

that will accrue on the immediately succeeding March 1 pursuant to

section 78g if those unpaid delinquent taxes, interest, penalties,

and fees due on the property are not paid.

(g) A statement that unless those unpaid delinquent taxes,

interest, penalties, and fees are paid on or before the March 31

immediately succeeding the entry in an uncontested case of a

judgment foreclosing the property under section 78k, absolute title

to the property shall vest in the foreclosing governmental unit.

(h) A statement of the person's rights of redemption and

notice that the rights of redemption will expire on the March 31

immediately succeeding the entry in an uncontested case of a

judgment foreclosing the property under section 78k.

(2) The notice required under subsection (1) shall also be

mailed to the property by first-class mail, addressed to

"occupant", if the notice was not sent to the occupant of the

property pursuant to subsection (1).

(3) A county treasurer may insert 1 or more additional notices

in a ~~newspaper published and~~ notice publication circulated in the

county in which the property is located. ~~, if there is one. If no~~

~~newspaper is published in that county, publication may be made in a~~

~~newspaper published and circulated in an adjoining county.~~If no

notice publication is circulated in the county in which the

property is located, the county treasurer may insert 1 or more

additional notices in a notice publication circulated in an

adjoining county. Additionally, a county treasurer may post 1 or

more additional notices on a website, including, but not limited

to, a website maintained by the county treasurer.

(4) The county treasurer may ~~publish~~ insert in a notice

publication circulated in the county in which the property is

located, notice of the street address, if available, of property

subject to forfeiture under section 78g on the immediately

succeeding March 1 for delinquent taxes or the street address, if

available, of property subject to forfeiture under section 78g on

the immediately succeeding March 1 for delinquent taxes and the

name of the person to whom a tax bill for property returned for

delinquent taxes was last sent and, if different, the name of the

person identified as the owner of the property returned for

delinquent taxes as shown on the current records of the county

treasurer. ~~in a newspaper published and circulated in the county in~~

~~which the property is located, if there is one. If no newspaper is~~

~~published in that county, publication may be made in a newspaper~~

~~published and circulated in an adjoining county.~~If no notice

publication is circulated in the county in which the property is

located, the county treasurer may insert a notice under this

subsection in a notice publication circulated in an adjoining

county. Additionally, a county treasurer may post on a website,

including, but not limited to, a website maintained by the county

treasurer.

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. 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 as provided in this subsection and section 78s. A

notice shall be ~~published~~ inserted for 3 2 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~~ notice publication

circulated in the county in which the property is located. This

~~publication~~ notice shall be instead of notice under subsection (2).

If a notice publication is not circulated in the county in which

the property is located, the foreclosing governmental unit shall

insert the notice in a notice publication circulated in an

adjoining county. In addition to provision of notice in a notice

publication, the foreclosing governmental unit may also post the

notice under this subsection for not less than 14 days on a

website, including, but not limited to, a website maintained by the

foreclosing governmental unit.

(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

House Bill No. 4039 as amended June 16, 2015

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

legal requirement are not applicable to notice and proof of service

under this section.

Sec. 78s. (1) For insertion of a notice in a notice

publication under sections 78a to [78r,] this section and sections

78a to [78r] apply, notwithstanding any other law to the contrary.

(2) A requirement for insertion of a notice publication under

sections 78a to [78r] is satisfied by including the notice in a

separate insert within the notice publication. A foreclosing

House Bill No. 4039 as amended June 16, 2015

governmental unit may exercise its discretion in selecting the

notice publication in which the notice shall be inserted based on

the notice publication's cost and circulation.

(3) As used in this section and sections 78a to [78r:]

(a) "Internet" means that term as defined in 47 USC 230.

(b) "Notice publication" includes a newspaper, as that term is

defined under section 1 of 1963 PA 247, MCL 691.1051, a legal

newspaper, or other print publication for the dissemination of

news, editorial content, and other information of a public

character or nature, including, but not limited to, a print

publication to which all of the following apply:

(i) The print publication is published and distributed in not

less than weekly intervals.

(ii) Not less than 50% of the words in the print publication

are in the English language.

(iii) The print publication has a bona fide list of

subscribers in 1 or more counties in this state or is available to

the public at newsstands or other retail locations in 1 or more

counties in this state, or both.

(iv) The print publication accepts and publishes official and

other notices.

(v) The print publication annually averages not less than 25%

news and editorial content per issue. As used in this subparagraph,

"news and editorial content" means any printed matter other than

advertising.

(vi) The print publication has been published or distributed

for not less than 1 year.

usually in HTML format, with clickable or hypertext links to enable

navigation from 1 page or section to another, that often uses

associated graphics files to provide illustration and may contain