Alabama Senate Bill SB3 Latest Draft

                            SB3INTRODUCED
Page 0
V6U6VP-1
By Senator Coleman-Madison
RFD: County and Municipal Government
First Read: 05-Feb-24
2024 Regular Session
1
2
3
4
5 V6U6VP-1 09/14/2023 SLU (L)bm 2023-2882
Page 1
2024 Regular Session
SYNOPSIS:
Under existing law, the acquisition of real
property by local land bank authorities is subject to
certain restrictions on the procedure, geographic
location, and costs.
This bill would provide a shortened redemption
period for a tax delinquent property that is not
acquired by an open market bidder at a tax sale
auction, would authorize a local government or a local
land bank authority to purchase property at public
auction by tendering the minimum bid in the absence of
open market bids, and would limit the geographical
boundaries of local land bank authority acquisitions.
This bill would provide for the creation of
multijurisdictional local land bank authorities by
intergovernmental agreements and a property tax
exemption for a property owned by a local land bank
authority; authorize local governments to allocate a
portion of local property tax revenues to local land
bank authorities; authorize a local land bank authority
to convey properties to state and local governments for
flood plain management and storm water drainage; and
authorize the Governor to create a local land bank
authority by executive order following a declaration of
a state of emergency.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 SB3 INTRODUCED
Page 2
a state of emergency.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to land bank authorities; to amend Sections
24-9-4, 24-9-5, 24-9-6, 24-9-7, 24-9-8, 24-9-10, 40-1-3,
40-10-1, 40-10-18, 40-10-29, 40-10-120, 40-10-184, 40-10-197,
and 40-10-199, Code of Alabama 1975; to add Sections 24-9-11
and 24-9-12 to the Code of Alabama 1975; to provide for the
creation of multijurisdictional local land bank authorities;
to further authorize the acquisition of tax delinquent
property and tax liens by local land bank authorities; to
further provide for the exemption of local land bank authority
property from taxes and fees; to provide for the allocation of
a portion of the ad valorem taxes on certain property conveyed
to a local land bank authority to the authority; to further
provide for the conveyance of local land bank authority
property; to authorize the Governor to create local land bank
authorities in the event of a state of emergency; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 24-9-4, 24-9-5, 24-9-6, 24-9-7,
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 SB3 INTRODUCED
Page 3
Section 1. Sections 24-9-4, 24-9-5, 24-9-6, 24-9-7,
24-9-8, and 24-9-10, Code of Alabama 1975, are amended to read
as follows:
"§24-9-4
When used in the chapter, the following words shall
have the following meanings:
(1) AGREEMENT. The intergovernmental cooperation
agreement entered into between an authority and a local 	land
bank authority by the parties pursuant to this chapter.
(2) AUTHORITY. The Alabama Land Bank Authority.
(3) BOARD. The Alabama Land Bank Authority Board.
(4) LOCAL LAND BANK AUTHORITY. A local land bank
authority created by a county or municipality as provided in
Section 24-9-10.
(5) PROPERTY. Real property, including any improvements
thereon.
(6) TAX-DELINQUENT PROPERTY. Any property on which the
taxes levied and assessed by any party remain in whole or in
part unpaid on the date due and payable." 
"§24-9-5
(a) There is created the Alabama Land Bank Authority
Board which shall govern the authority to administer and
enforce this chapter.
(b) The board shall consist of the following members:
(1) Four residents of the state appointed by the
Governor.
(2) Two representatives from nonprofit organizations
engaged in low-income housing appointed by the Governor.
(3) The Presiding Officer of the Senate or his or her
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 SB3 INTRODUCED
Page 4
(3) The Presiding Officer of the Senate or his or her
designee.
(4) The Speaker of the House of Representatives or his
or her designee.
(5) The Chair of the Senate Finance and Taxation
General Fund Committee or his or her designee.
(6) The Chair of the House Ways and Means General Fund
Committee or his or her designee.
(7) The State Revenue Commissioner or his or her
designee.
(8) The Superintendent of the State Banking Department
or his or her designee.
(9) The Director of the Alabama Department of Economic
and Community Affairs or his or her designee.
(10) The Secretary of the Alabama Department of
Commerce or his or her designee.
(11) The State Finance Director or his or her designee.
(12) The Chair of the Alabama Housing Finance Authority
or his or her designee.
(13) The Administrator of the Alabama Credit Union
Administration or his or her designee.
(c) The members of the board shall serve four year
terms. In appointing the initial members of the board under
subdivision (1) of subsection (b), the Governor shall
designate two to serve four years, one to serve three years,
and one to serve two years.
(d) Members of the board shall receive reimbursement
for expenses incurred in the performance of their duties but
no other compensation.
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 SB3 INTRODUCED
Page 5
no other compensation.
(e) The board may employ the necessary personnel for
the performance of its functions and fix their compensation.
(f) The board shall elect from its membership a chair,
vice chair, and secretary-treasurer. The board shall adopt
rules to govern its proceedings. A majority of the membership
of the board shall constitute a quorum for all meetings.
Approval by a majority of the membership shall be necessary
for any action to be taken by the authority. All meetings
shall be open to the public, except as otherwise permitted by
the Alabama Open Meetings Act, and a written record shall be
maintained of all meetings.
(g) The membership of the board shall be inclusive and
reflect the racial, gender, geographic, urban/ruralurban,
rural, and economic diversity of the state.
(h) The board, when acting in its official capacity,
its members, and the authority shall be immune from civil
liability against the claims of any individual or other entity
of any nature whatsoever arising out of its ownership or
administration of properties or related to its decisions or
actions, which decisions or actions were made in good faith,
without malice, and predicated upon information which was then
available to the board.
(i) The authority shall be a public body corporate and
politic with the power to accept and issue deeds in its name,
including, without limitation, the acceptance of real property
in accordance with this chapter, and to institute quiet title
actions as provided in Section 24-9-8, and shall have any
other powers necessary and incidental to carry out the powers
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 SB3 INTRODUCED
Page 6
other powers necessary and incidental to carry out the powers
and the purpose granted by this chapter.
(j) In addition to the tax-delinquent property acquired
by the authority as provided herein, the authority may
acquire, by purchase, donation, or exchange, other publicly
owned property from local governments, including that which
was acquired years earlier as a result of foreclosure
proceedings of that property, or property that has become
surplus. The authority may also acquire property through
voluntary donations and transfers from private owners and may
acquire by purchase or lease on the open market property from
a private owner to complete an assemblage of property for
redevelopment.
(k) No later than October 1, 2018, the State Revenue
Commissioner or his or her designee shall convene the first
meeting of the authority." 
"§24-9-6
(a) The authority, at suchthe times as it deems to be
appropriate, may submit a written request to the Land
Commissioner of the Alabama Department of Revenue for the
transfer of the state's interest in certain properties to the
authority. Upon receipt of suchthe request, the Land
Commissioner shall issue a tax deed conveying the state's
interest in the property to the authority. The authority shall
not be required to pay the amount deemed to have been bid to
cover delinquent taxes or any other amount in order to obtain
the tax deed.
(b)(1) Delinquent property that may be transferred by
the Land Commissioner to the authority shall be limited to
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 SB3 INTRODUCED
Page 7
the Land Commissioner to the authority shall be limited to
parcels located outside the geographic boundaries of a local
land bank authority that have been bid in for the state
pursuant to Chapter 10 of Title 40 for at least three years
and the state's interest in real property acquired pursuant to
Chapter 29 of Title 40 for delinquent taxes administered by
the state and held for at least three years. The three-year
period shall not apply to properties encumbered by one or more
housing, building code, or nuisance abatement liens.
(2) The Land Commissioner or his or her agents or
assistants may adopt rules necessary to transfer suchthe
properties to the authority.
(c) The authority shall administer properties acquired
by it as follows:
(1) All property acquired by the authority shall be
inventoried and the inventory shall be maintained as a public
record.
(2) The authority shall have the power to manage,
maintain, protect, rent, lease, repair, insure, alter, sell,
trade, exchange, or otherwise dispose of any property acquired
pursuant to subsection (b)(1), on terms and conditions
determined in the sole discretion of the authority.
(d) Nothing contained in Act 2013-249 shall be
construed to grant any power of eminent domain to the
authority or any local authority." 
"§24-9-7
(a) The authority shall adopt rules for the disposition
of property in which the authority holds a legal interest,
which rules shall address the conditions set forth in this
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 SB3 INTRODUCED
Page 8
which rules shall address the conditions set forth in this
section.
(b) The authority may manage, maintain, protect, rent,
repair, insure, alter, convey, sell, transfer, exchange, lease
as lessor, or otherwise dispose of property or rights or
interests in property in which the authority holds a legal
interest to any public or private person for value determined
by the authority on terms and conditions, and in a manner and
for an amount of consideration the authority considers proper,
fair, and valuable, including for no monetary consideration.
The transfer and use of property under this section and the
exercise by the authority of powers and duties under Act
2013-249 shall be considered a necessary public purpose and
for the benefit of the public.
(c) Before the authority may sell, lease, exchange,
trade, or otherwise dispose of any property, it shall either:
(1) Establish a purchase price and conditions for sale
purposes.
(2) Establish a price and conditions for rent or lease
purposes.
(3) Establish the conditions for trade, exchange, or
other disposal of the property.
The conditions made pursuant to this subsection may
include a requirement that the transferee must provide a
development plan or execute a development agreement with the
authority specifying the transferee's commitments regarding
the development of the property and the time frame within
which the development must occur, the range of permitted uses
for the property, and any restrictions on its subsequent
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224 SB3 INTRODUCED
Page 9
for the property, and any restrictions on its subsequent
resale or transfer.
(d) The disposition of property by the authority shall
not be governed by any laws or rules otherwise applicable to
the disposition of property by a state or local agency.
Provided, however, that, prior to the disposition of property,
the authority shall give notice of its intent to dispose of
any property for which notice was not previously advertised by
the Commissioner of Revenue, or his or her designee, or by a
local official in a manner as prescribed by the authority and
shall include in the notice the date, time, and place at which
persons objecting to the intended action must appear. If no
objection is made within 30 days from the date of the notice,
the authority may proceed with the disposition of the property
as noticed without a public auction.
(e) No property shall be sold, traded, exchanged, or
otherwise disposed of by the authority to any entity for
investment purposes only and with no intent to use the
property other than to transfer the property at a future date
for monetary gain.
(f) The authority shall not sell, trade, exchange, or
otherwise dispose of any property held by the authority to any
party who had an interest in the property at the time it was
tax delinquent or to any party who transferred the party's
interest in the property to the authority by sale, trade,
exchange, or otherwise, unless the person pays all the taxes,
interest, municipal liens, penalties, fees, and any other
charges due and owing under Chapter 10 and Chapter 29 of Title
40, including the amount to the Land Commissioner had the
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252 SB3 INTRODUCED
Page 10
40, including the amount to the Land Commissioner had the
property not been transferred to the authority.
(g) Except as otherwise provided in this section, the
authority shall have full discretion in determining the sale
price of the property. No purchaser from the authority shall
be responsible for the proper disposition of the proceeds paid
to the authority for the purchase of property. " 
"§24-9-8
(a) The authority may initiate a quiet title action
under this section to quiet title to real property held by the
authority or interests in tax delinquent property held by the
authority by undertaking the examination of title as required
in subsection (b) and thereafter filing the petition as
provided in subsection (c). Following the filing of the
petition, the authority shall record with the office of the
judge of probate in the county in which the property subject
to quiet title action is located a notice of pending quiet
title action. The notice shall include the name of the
taxpayer whose interest was affected by the tax sale; the name
of any other party as revealed by a search and examination of
the title to the property who may claim an interest in the
property; a legal description of the property; the street
address of the property if available; the name, address, and
telephone number of the authority; a statement that the
property is subject to the quiet title proceedings under Act
2013-249; a statement that any legal interests in the property
may be extinguished by a circuit court order vesting title to
the property in the authority; and the date, time, and place
of the hearing on the petition to quiet title. Notwithstanding
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280 SB3 INTRODUCED
Page 11
of the hearing on the petition to quiet title. Notwithstanding
anything in this chapter to the contrary, no quiet title
action and nothing in this chapter shall affect any right,
title, or interest, whether recorded or unrecorded, in the
subject property which was held at the time of the tax sale by
any person or entity engaged in the generation, transmission,
or distribution of electric power, natural gas, or
telecommunications.
(b) After the notice required under subsection (a) has
been recorded, Prior to filing the petition described in
subsection (a), the record title to the property shall be
examined and an opinion of title rendered by an attorney at
law, who is licensed to practice law in this state, or a
certificate of title shall be prepared by a title agent or
title insurer duly licensed under the Alabama Title Insurance
Act as set out in Section 27-25-1, et seq., for the benefit of
the authority in order to identify all owners of an interest
in the property.
(c) Once the authority has identified the owners of
interest in the property, the authority shall file a single
petition with the clerk of the circuit court for the judicial
district in which the property subject to foreclosure under
this section is located listing all property subject to
foreclosure by the authority and for which the authority seeks
to quiet title. No such action shall be subject to the payment
of filing fees. The list of properties shall include a legal
description of, a tax parcel identification number for, and
the street address of each parcel or property. The petition
shall seek a judgment in favor of the authority against each
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308 SB3 INTRODUCED
Page 12
shall seek a judgment in favor of the authority against each
property listed and shall include a date, within 90 days, on
which the authority requests a hearing on the petition. The
petition shall request that a judgment be entered vesting
absolute title in the authority, without right of redemption
for each parcel of property listed, as provided in this
section. At any time during the pendency of this action, the
authority may file a motion to release or dismiss a certain
parcel or parcels of land from the petition, which release
will not affect the remaining parcels of land subject to the
petition.
(d) The case shall be docketed in the circuit court by
the clerk, and shall be a preferred case therein. The circuit
court in which a petition is filed under subsection (c) shall
immediately set the date, time, and place for a hearing on the
petition for quiet title. In no event may the clerk schedule
the hearing later than 90 days after the filing of a petition
by the authority under subsection (c). The court, on the
request of a party or as needed to allow completion of service
of process on all interested persons, and to allow those
persons 30 days after service of process to file an answer or
other responsive pleadings to the petition, may extend the
90-day period for good cause shown.
(e) The authority shall serve all persons having record
title or interest in or lien upon the property with a notice
of the hearing on the petition to quiet title. SuchThe service
shall be attempted by personal service and by certified mail;
provided if service is perfected by either method, the service
will be sufficient to provide service of process upon all
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336 SB3 INTRODUCED
Page 13
will be sufficient to provide service of process upon all
persons having record title or interest in or lien upon the
property. If the persons entitled to service are located
outside the county, they may be served by certified mail.
(f) The notice required under subsection (e) shall
include:
(1) The date on which the authority recorded, under
subsection (a), the notice of the pending quiet title and
foreclosure action.
(2) A statement that a person with a property interest
in the property may lose suchthe interest, if any, as a result
of the quiet title and foreclosure hearing.
(3) A legal description, tax parcel identification
number of the property, and the street address of the
property.
(4) The date and time of the hearing on the petition
for quiet title and a statement that the judgment of the court
may result in title to the property vesting in the authority.
(5) An explanation of any rights of redemption and
notice that the judgment of the court may extinguish any
ownership interest in or right to redeem the property.
(6) The name, address, and telephone number of the
authority.
(g) In the event the sheriff is unable to perfect
service or certified mail attempts are returned unclaimed, the
authority shall conduct a search for the person with an
interest in the property conveyed to the authority.
(1) The search, at a minimum, shall include the
following:
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364 SB3 INTRODUCED
Page 14
following:
a. An examination of the addresses given on the face of
the instrument vesting interest or the addresses given to the
clerk of the probate court by the transfer declaration form.
b. A search of the current telephone
directoryelectronic telephone databases for the municipality
and the county in which the property is located.
c. A letter of inquiry to the person who sold the
property to the owner whose interest was sold in the tax sale
at the address shown in the transfer tax declaration or in 	the
telephone directory electronic telephone databases .
d. A letter of inquiry to the attorney handling the
closing prior to the tax sale if suchthe information is
provided on the deed forms.
(2) A sign being no less than four feet by four feet
shall be erected on the property and maintained by the
authority for a minimum of 30 days reading as follows:
"THIS PROPERTY HAS BEEN CONVEYED TO THE ________ LAND
BANK AUTHORITY AND IS SUBJECT TO A QUIET TITLE ACTION. PERSONS
WITH INFORMATION REGARDING THE PRIOR OWNERSHIP OF OR INTEREST
IN THE PROPERTY ARE REQUESTED TO CONTACT THE LAND BANK
AUTHORITY AT _________."
(3) Any additional parties who are identified as having
an interest in the property shall be provided notice in
accordance with this section.
(h) If the interested party is an individual, the
authority shall examine voter registration lists, available
municipal archives for records of deaths, and the probate
court records of estates opened in the county in which the
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392 SB3 INTRODUCED
Page 15
court records of estates opened in the county in which the
property is located.
(i) If the interested party is a business entity, the
authority shall search the records of the Secretary of State
for the name and address of a registered agent.
(j) If an interested party appears at the hearing and
asserts a right to redeem the property, that party may redeem
in accordance with Chapter 10 and Chapter 29 of Title 40.
(k)(1) If the authority has made the search as required
by this section and been unable to locate those persons
required to be served under subsection (e), and has located
additional addresses of those persons through the search and
attempted without success to serve those persons in either
manner provided by subsection (e), the authority shall provide
notice by publication. Prior to the hearing, a notice shall be
published once each week for three successive weeks in a
newspaper of general circulation in the county in which the
property is located. If no paper is published in that county,
publication shall be made in a newspaper of general
circulation in an adjoining county. This publication shall
substitute for notice under this subsection or subsection (g).
The published notice shall include the information required in
subsection (f). Should the identity of some or all of the
persons who may have an interest in the property be unknown,
or should suchthe persons be infants or persons of unsound
mind, the court shall appoint a guardian ad litem to represent
and defend the interests of suchthe unknown, the
infantsinfant, or incompetentthe persons of unsound mind who
are parties in the action.
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420 SB3 INTRODUCED
Page 16
are parties in the action.
(2) A person claiming an interest in a parcel of
property set forth in the quiet title action who desires to
contest that petition shall file an answer containing written
objections with the clerk of the circuit court and serve those
objections on the authority before the date of the hearing.
The circuit court may appoint and utilize as the court
considers necessary a special master for assistance with the
resolution of any objections to the quiet title action or
questions regarding the title to property subject thereto.
Within 30 days following the hearing, the circuit court shall
enter judgment on a petition to quiet title. The circuit
court's judgment shall specify all of the following:
a. The legal description, tax parcel identification
number, and, if known, the street address of the subject
property.
b. That fee simple title to the property by the
judgment is vested absolutely in the authority, except as
otherwise provided in paragraph e., without any further rights
of redemption.
c. That all liens against the property, including any
lien for unpaid taxes or special assessments, are
extinguished.
d. That, except as otherwise provided in paragraph e.,
the authority has good and marketable fee simple title to the
property.
e. That all existing recorded and unrecorded interests
in the property are extinguished, except a recorded easement
or right-of-way, restrictive covenant, prior reservation or
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448 SB3 INTRODUCED
Page 17
or right-of-way, restrictive covenant, prior reservation or
severance of all mineral, mining, oil, and gas rights within
and underlying the property, suchthe state of facts as shown
on recorded plats, or restrictions or covenants imposed under
the Alabama Land Recycling and Economic Development Act or any
other environmental law in effect in the state, severed oil,
gas, and mineral rights and mineral leases and agreements are
excepted from Act 2013-249 and any quiet title action
authorized herein.
f. A finding that all persons entitled to notice and an
opportunity to be heard have been provided that notice and
opportunity and that the authority provided notice to all
interested parties or that the authority complied with the
notice procedures in subdivision (1), which compliance shall
create a rebuttable presumption that all interested parties
received notice and an opportunity to be heard.
(l) Except as otherwise provided in paragraph (k)(2)e.,
fee simple title to property set forth in a petition for quiet
title filed under subsection (c) shall vest absolutely in the
authority upon the effective date of the judgment by the
circuit court and the authority shall have absolute title to
the property. The authority's title is not subject to any
recorded or unrecorded lien, except as provided in paragraph
(k)(2)e. and shall not be stayed except as provided in
subsection (m). A judgment entered under this section is a
final order with respect to the property affected by the
judgment.
(m) The authority or a person claiming to have an
interest in property under this section may within 42 days
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476 SB3 INTRODUCED
Page 18
interest in property under this section may within 42 days
following the effective date of the judgment under subsection
(k) appeal the circuit court's judgment quieting title to the
property to the court of appeals. An appeal under this
subsection is limited to the record of the proceedings in the
circuit court under this section. In the event of a timely
appeal, the circuit court's judgment quieting title to the
property shall be stayed until the court of appeals has
reversed, modified, or affirmed that judgment. If an appeal
under this subsection stays the circuit court's judgment, the
circuit court's judgment is stayed only as to the property
that is the subject of that appeal and the circuit court's
judgment quieting title to other property that is not the
subject of that appeal is not stayed.
(n) The authority shall record an order of judgment for
each parcel of property in the office of the judge of probate
for the county in which the subject property is located.
(o) Notwithstanding the limitation of actions,
requirements for adverse possession under, any other
provisions of Section 40-10-82, or any other law, the
authority may initiate a quiet title action under this section
at any time after acquiring an interest in the property which
is subject to the action. A final decree of an action properly
filed in compliance with this section shall extinguish all
outstanding rights of redemption." 
"§24-9-10
(a) If the number of tax delinquent properties in a
municipality exceeds 100, then the governing body of a
municipality may adopt a resolution declaring that it is wise,
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504 SB3 INTRODUCED
Page 19
municipality may adopt a resolution declaring that it is wise,
expedient, and necessary that a local land bank authority be
formed by the municipality by the filing for record of a
certificate of incorporation in accordance with the provisions
of subsection (c)(d).
(b) If the number of tax delinquent properties in a
municipalitycounty exceeds 100, then the governing body of a
county may adopt a resolution declaring that it is wise,
expedient, and necessary that a local land bank authority be
formed by the county by the filing for record of a certificate
of incorporation in accordance with the provisions of
subsection (c)(d).
(c) A county and a municipality located within that
county may create a single land bank authority by an
intergovernmental agreement, so long as both the county and
the municipality each meet the criteria of subsections (a) and
(b). The intergovernmental agreement shall comply with all
provisions of subsections (d) and (e) and Chapter 102 of Title
11.
(d) Upon the adoption of the authorizing resolution,
the municipality or county, as the case may be, shall proceed
to incorporate the local land bank authority by filing for
record in the office of the judge of probate of the county a
certificate of incorporation which shall comply in form and
substance with the requirements of this section and which
shall be in the form and executed in the manner herein
provided. The certificate of incorporation of the local land
bank authority shall state all of the following:
(1) The name of the local unit of government forming
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532 SB3 INTRODUCED
Page 20
(1) The name of the local unit of government forming
the local land bank authority.
(2) The name of the local land bank authority.
(3) The size of the initial governing body of the local
land bank authority, which shall be composed of an odd number
of members, but not less than five.
(4) The qualifications, method of selection, and terms
of office of the initial board members.
(5) A method for the adoption of bylaws by the
governing body of the local land bank authority.
(6) A method for the distribution of proceeds from the
activities of the local land bank authority.
(7) A method for the dissolution of the local land bank
authority.
(8) Any other matters considered advisable by the local
unit of government, consistent with Act 2013-249.
(d)(e) Following incorporation, a local land bank
authority may enter into an intergovernmental agreement with
the authority providing for the transfer to the local land
bank authority of any property held by the authority which is
located within the corporate limits of the municipality or the
boundary of the county which created the land bank.
(e)(f) A local land bank authority shall have all of
the powers of the authority as set forth in this chapter. In
addition, a local land bank authority shall have the following
powers:
(1) To adopt, amend, and repeal bylaws for the
regulation of its affairs and the conduct of its business.
(2) To sue and be sued in its own name and to prosecute
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560 SB3 INTRODUCED
Page 21
(2) To sue and be sued in its own name and to prosecute
and defend civil actions in any court having jurisdiction of
the subject matter and of the parties, including, but not
limited to, actions to clear title to the property of the
local land bank authority.
(3) To adopt and make use of a corporate seal and to
alter the same at its pleasure.
(4) To acquire by purchase, lease, or otherwise and to
hold, lease, and dispose of real or personal property of every
kind and character, or any interests therein, in furtherance
of the public purposes of the local land bank authority.
(5) To acquire, accept, or retain equitable interests,
security interests, or other interests in any real property,
personal property, or fixtures by loan agreement, note,
mortgage, trust deed, security agreement, assignment, pledge,
conveyance, contract, lien, or other consensual transfer in
order to secure credit extended by the local land bank
authority.
(6) To borrow from private lenders, from
municipalities, from the state, or from federal government
funds, as may be necessary, for the operation and work of the
local land bank authority.
(7) To issue negotiable revenue bonds and notes
according to the provisions of this chapter.
(8) To procure insurance or guarantees from the state
or federal government for the payments of any debts or parts
of debts incurred by the local land bank authority, and to pay
premiums in connection with the insurance or guarantees.
(9) To enter into contracts and other instruments
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588 SB3 INTRODUCED
Page 22
(9) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of its
duties and the exercise of its powers, including, but not
limited to, intergovernmental agreements under Chapter 102 of
Title 11, for the joint exercise of powers under this chapter.
(10) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of
functions by the local land bank authority on behalf of
municipalities or agencies or departments of municipalities;
or the performance by municipalities or agencies or
departments of municipalities; or of functions on behalf of
the local land bank authority.
(11) To procure insurance against losses in connection
with the real property, assets, or activities of the local
land bank authority.
(12) To invest money of the local land bank authority,
at the discretion of the board of directors, in instruments,
obligations, securities, or properties determined proper by
the board of directors, and name and use depositories for its
money.
(13) To hire and compensate employees and contractors,
to provide retirement and other forms of deferred
compensation, to provide fringe benefits, and to otherwise
contract with employees and contractors.
(1)(14) Without the approval of a local unit of
government in which property held by the local land bank
authority is located, control, hold, manage, maintain,
operate, repair, lease as lessor, secure, prevent the waste or
deterioration of, demolish, and take all other actions
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616 SB3 INTRODUCED
Page 23
deterioration of, demolish, and take all other actions
necessary to preserve the value of the property it holds or
owns. AnA local land bank authority may take or perform the
following actions with respect to property held or owned by
the local land bank authority:
a. Grant or acquire a license, easement, or option with
respect to property as the local land bank authority
determines is reasonably necessary to achieve the purposes of
this chapter.
b. Fix, charge, and collect rents, fees, and charges
for use of property under the control of the local land bank
authority or for services provided by the local land bank
authority.
c. Pay any tax or special assessment due on property
acquired or owned by the local land bank authority.
d. Take any action, provide any notice, or institute
any proceeding required to clear or quiet title to property
held by the local land bank authority in order to establish
ownership by and vest title to property in the local land bank
authority, including, but not limited to, a quiet title and
foreclosure action pursuant to Section 24-9-8.
e. Remediate environmental contamination on any
property held by the local land bank authority.
(2) Enter(15) To enter into an intergovernmental
agreement with a municipality or county , or another local land
bank authority, providing for one or more of the following:
a. The conveyance to the local land bank authority of
tax delinquent property held by the municipality or county for
title clearance, including, but not limited to, a quiet title
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
639
640
641
642
643
644 SB3 INTRODUCED
Page 24
title clearance, including, but not limited to, a quiet title
and foreclosure action under Section 24-9-8.
b. The acquisition and title clearance of property by
the local land bank authority of property to be conveyed by
the local land bank authority to the municipality or county or
another entity pursuant to the agreement between the local
land bank authority and the municipality or county.
c. The performance of operational and administrative
services to be provided to another local land bank authority.
(16) To acquire property at a sale conducted in
accordance with Section 40-10-18 by tendering a bid equal to
the minimum amount specified in the decree of sale and the
costs and expenses subsequently accruing, which shall be
accepted, and a certificate of purchase issued to the local
land bank authority. The tender of the minimum bid in
accordance with this subsection shall be for cash, with a
credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid. After
90 days from the date of sale, upon return of the certificate,
the judge of probate shall execute and deliver to the local
land bank authority a deed for each lot or parcel of property
that it purchased. The deed shall convey to, and vest in, the
grantee all right, title, interest, and estate of any and all
persons having an interest in the property as of the date of
the sale.
(17) To acquire a tax lien at an auction conducted in
accordance with Section 40-10-184 by tendering a cash bid at
an interest rate of 0.00 percent, which shall be accepted as
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
668
669
670
671
672 SB3 INTRODUCED
Page 25
an interest rate of 0.00 percent, which shall be accepted as
the successful bid. The bid shall be tendered for cash, with a
credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid.
(18) To apply for and receive funding through grants
and loans from the governmental unit or units that created the
local land bank authority, from other municipalities, from the
state, from the federal government, and from other public and
private sources.
(19) To receive and retain payments for services
rendered, for rent and leasehold payments received, for
consideration for disposition of real and personal property,
for proceeds of insurance coverage for losses incurred, for
income from investments, and for any other asset and activity
lawfully permitted to a local land bank authority under this
act.
(f)(g) A local unit of government and any agency or
department of suchthe local unit of government may do one or
more of the following:
(1) Anything necessary or convenient to aid a local
land bank authority in fulfilling its purposes under Act
2013-249.
(2) Lend, grant, transfer, appropriate, or contribute
funds to a local land bank authority in furtherance of its
purposes.
(3) Lend, grant, transfer, or convey funds to a local
land bank authority that are received from the federal
government or this state or from any nongovernmental entity in
673
674
675
676
677
678
679
680
681
682
683
684
685
686
687
688
689
690
691
692
693
694
695
696
697
698
699
700 SB3 INTRODUCED
Page 26
government or this state or from any nongovernmental entity in
aid of the purposes of Act 2013-249.
(h) A local land bank authority created by a county may
acquire real property only within the geographical boundaries
of the county and only in those portions of the county outside
of the geographical boundaries of the local land bank
authority created by a municipality located partially or
wholly within the county. A local land bank authority created
by a municipality may acquire real property in any of the
following locations:
(1) Within its own geographical boundaries.
(2) Outside of its own geographical boundaries so long
as the real property is not located within the boundaries of
any other local land bank authority.
(3) Within the geographical boundaries of another local
land bank authority pursuant to an intergovernmental agreement
between the local land bank authorities.
(g) In the event a county creates a local authority,
the local authority may acquire real property that has been
tax delinquent for three or more years only in those portions
of the county located outside of the geographical boundaries
of any other local authority created by any municipality
located partially or entirely within the county. The Land Bank
Authority may acquire real property that has been tax
delinquent for three or more years only in those portions of
the state located outside of the geographical boundaries of
any local authority created by any municipality or county.
(h)(i) Any local land bank authority formed by a
municipality or county pursuant to this section shall continue
701
702
703
704
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728 SB3 INTRODUCED
Page 27
municipality or county pursuant to this section shall continue
to exist in accordance with its articles of incorporation and
this section in the event that the number of tax delinquent
properties in the local jurisdiction forming the local land
bank authority subsequently decreases to 100 or less.
(i)(j) Any local land bank authority formed by a
municipality or county pursuant to this section shall permit
the Alabama Department of Examiners of Public Accounts to
perform an audit upon request by the department. The
department shall assess the cost of the audit against the
local land bank authority.
(k) As public property used for public purposes, the
real property of a local land bank authority, including, but
not limited to, real property held by a local land bank
authority pursuant to a long-term lease contract with
community land trusts and its income, are exempt from all
license fees, recording fees, and all other taxes imposed by
the state or by any of its political subdivisions, as well as
all stormwater fees and other municipal assessments.
(l) Up to 75 percent of the ad valorem taxes collected
on any and all real property, except any state or school
district ad valorem tax, conveyed by a local land bank
authority shall be remitted to the local land bank authority.
The specific percentage of the taxes to be remitted shall be
set forth in the local law, ordinance, resolution, or
intergovernmental contract of the local land bank authority.
The allocation of ad valorem tax revenues shall commence with
the first taxable year following the date of conveyance and
shall continue for a period of five consecutive tax years. The
729
730
731
732
733
734
735
736
737
738
739
740
741
742
743
744
745
746
747
748
749
750
751
752
753
754
755
756 SB3 INTRODUCED
Page 28
shall continue for a period of five consecutive tax years. The
funds shall be remitted to the local land bank authority in
accordance with the administrative procedures established by
the tax commissioner or tax collecting official of the county
in which the local land bank authority is located. The
allocation of ad valorem tax revenues shall not occur if the
taxes have been previously pledged to secure a tax increment
financing debt of the authorizing governmental subdivision
creating the tax increment district pursuant to Chapter 99 of
Title 11, unless the authorizing subdivision enters into an
agreement with the local land bank authority for the
remittance of the funds to the local land bank authority.	"
Section 2. Sections 24-9-11 and 24-9-12 are added to
the Code of Alabama 1975, to read as follows:
§24-9-11
(a) A local land bank authority may convey ownership
of, or interest in, real property to a state or local
governmental entity for purposes of floodplain management or
stormwater drainage in the event of all of the following:
(1) Floodplain management or stormwater retention or
drainage is the highest and best use of the real property.
(2) As a result of housing and building code
restrictions, floodplain elevations, and other local, state,
or federal law or public and private agreements, conditions,
and limitations, the real property is no longer suitable for
development or redevelopment.
(b)(1) A local land bank authority may convey ownership
of, or interest in, real property under this section by grant,
deed, lease, or other form of conveyance, and may include
757
758
759
760
761
762
763
764
765
766
767
768
769
770
771
772
773
774
775
776
777
778
779
780
781
782
783
784 SB3 INTRODUCED
Page 29
deed, lease, or other form of conveyance, and may include
additional limitations, restrictions, and conditions to be
determined by the local land bank authority.
(2) Consideration for the conveyance may be any of the
following not otherwise prohibited by law:
a. A nominal monetary payment.
b. A contractual obligation in favor of the party to
which the real property is being conveyed.
c. An exchange of real property.
d. Other consideration determined by the local land
bank authority and the party to whom the real property is to
be conveyed.
§24-9-12
(a) Upon declaring a state of emergency caused by a
natural disaster that causes widespread damage to, and
destruction of, real property and improvements and dislocation
of residents, the Governor may create a local land bank
authority in accordance with this section.
(1) The Governor may issue an executive order providing
for the immediate creation of a local land bank authority of a
local government located in whole or in part in a geographical
area that is subject to the declaration of the state of
emergency.
(2) The executive order shall provide for incorporation
and certification of the local land bank authority as required
under this chapter.
(b) Any local land bank authority created pursuant to
this section shall have all powers of a local land bank
authority created pursuant to Section 24-9-10.
785
786
787
788
789
790
791
792
793
794
795
796
797
798
799
800
801
802
803
804
805
806
807
808
809
810
811
812 SB3 INTRODUCED
Page 30
authority created pursuant to Section 24-9-10.
(c) Upon the necessary and appropriate action of the
local governments having jurisdiction over the geographical
areas subject to the declaration of the state of emergency, a
local land bank authority created pursuant to this section may
be converted into a local land bank authority created pursuant
to Section 24-9-10, at which time the local land bank
authority shall be the successor in interest and at law to the
local land bank authority created pursuant to this section.
(d) In the event that a local land bank authority
created pursuant to this section is not converted pursuant to
subsection (c), 12 months following the date of the Governor's
executive order, the local land bank authority created by the
executive order shall be dissolved in accordance with the
provisions of the Governor's executive order.
Section 3. Sections 40-1-3, 40-10-1, 40-10-18,
40-10-29, 40-10-120, 40-10-184, 40-10-197, and 40-10-199, Code
of Alabama 1975, are amended to read as follows:
"§40-1-3
From and after October 1 of each year, when property
becomes assessable the state shall have a lien upon each and
every piece or parcel of real property owned by any taxpayer
for the payment of all taxes which may be assessed against him
or her and upon each piece and parcel of property real or
personal assessed to owner unknown, which lien shall continue
until suchthe taxes are paid, and the county shall have a like
lien thereon for the payment of the taxes which may be
assessed by it; and, if suchthe real property is within the
limits of a municipal corporation, suchthe municipal
813
814
815
816
817
818
819
820
821
822
823
824
825
826
827
828
829
830
831
832
833
834
835
836
837
838
839
840 SB3 INTRODUCED
Page 31
limits of a municipal corporation, suchthe municipal
corporation shall have a like lien thereon for the payment of
the taxes which may be assessed by it. These liens shall be
superior to all other liens and shall exist in the order
named, and each of suchthe liens may be enforced and
foreclosed by sale for taxes as provided in this title, or as
other liens upon property are enforced, except as otherwise
provided by lawslaw. These taxes and liens shall include any
and all liens transmitted to the tax collecting official by
counties and municipal corporations in accordance with
Sections 11-40-35, 11-53B-16, 11-67-66, 45-37A-53, and any
other state law authorizing the transmittal of nuisance
abatement liens for weed removal and grass cutting. " 
"§40-10-1
(a) The probate court of each county may order the sale
of lands therein for the payment of taxes assessed on the
lands, or against the owners of the lands, when the tax
collector shall report to the court that he or she or the
holder of a tax lien issued pursuant to Acts 1995, No. 95-408
was unable to collect the taxes assessed against the land, or
any mineral, timber or water right or special right, or
easement therein, or the owner thereof, without a sale of the
land.
(b) For purposes of any enforcement proceedings under
this chapter, the taxes due shall include any and all liens of
a municipality for housing and building code violations and
enforcement actions and nuisance abatement assessment liens
which are transmitted to the tax collecting official in
accordance with Title 11. " 
841
842
843
844
845
846
847
848
849
850
851
852
853
854
855
856
857
858
859
860
861
862
863
864
865
866
867
868 SB3 INTRODUCED
Page 32
accordance with Title 11. " 
"§40-10-18
(a) If no person shall bidbids for any real
estateproperty offered at suchthe sale an amount sufficient to
pay the sum greater than the minimum bid specified in the
decree of sale, and the costs and expenses subsequently
accruing, and no minimum bid is tendered by a local government
or a local land bank authority, the judge of probate shall bid
in such real estate the real property for the state at a price
not exceeding the sum specified in such decree and such
subsequently accruing cost and expenses the minimum bid. In no
event shall the judge of probate bid in for the state less
than the entire amount of real estateproperty included in any
assessment.
(b) If no person bids for any real property offered at
the sale in an amount greater than the minimum bid specified
in the decree of sale, and the costs and expenses subsequently
accruing, a local government or local land bank authority in
which the real property is located may tender a bid for the
minimum amount which bid shall be accepted and a certificate
of purchase issued to the entity. The tender of the minimum
bid in accordance with this subsection shall be for cash with
a credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid. " 
"§40-10-29
(a) After the expiration of three years from the date
of the sale of any real estate for taxes, the judge of probate
then in office must execute and deliver to the purchaser,
869
870
871
872
873
874
875
876
877
878
879
880
881
882
883
884
885
886
887
888
889
890
891
892
893
894
895
896 SB3 INTRODUCED
Page 33
then in office must execute and deliver to the purchaser,
other than the state , or person to whom the certificate of
purchase has been assigned, upon the return of the
certificate, proof that all ad valorem taxes have been paid,
and payment of a fee of five dollars ($5) to the judge of
probate, a deed to each lot or parcel of real estateproperty
sold to the purchaser and remaining unredeemed, including
therein, if desired by the purchaser, any number of parcels,
or lots purchased by him or her at suchthe sale; and suchthe
deed shall convey to and vest in the grantee all the right,
title, interest, and estate of the person whose duty it was to
pay the taxes on suchthe real estateproperty and the lien and
claim of the state and county thereto, but it shall not convey
the right, title , or interest of any reversioner or
remainderman therein.
(b) After the expiration of one year from the sale for
the minimum bid to a local government or local land bank
authority, upon return of the certificate of purchase, the
judge of probate shall execute and deliver to the entity a
deed to the real property sold to the entity. The deed shall
convey to, and vest in, the grantee all of the right, title,
interest, and estate of any and all persons having an interest
in the real property as of the date of the sale. " 
"§40-10-120
(a)(1) Except as otherwise provided in this subsection,
real property Real estate which hereafter may be sold for
taxes and purchased by the state may be redeemed at any time
before the title passes out of the state or, if purchased by
any other purchaser, may be redeemed at any time within three
897
898
899
900
901
902
903
904
905
906
907
908
909
910
911
912
913
914
915
916
917
918
919
920
921
922
923
924 SB3 INTRODUCED
Page 34
any other purchaser, may be redeemed at any time within three
years from the date of the sale by the owner, his or her
heirs, or personal representatives, or by any mortgagee or
purchaser of such lands, or any part thereof all or part of the
real property, or by any person having an interest therein, or
in any part thereof in all or part of the real property , legal
or equitable, in severalty or as tenant in common, including a
judgment creditor or other creditor having a lien thereon, or
on any part thereof; and an infant or insane person of unsound
mind entitled to redeem at any time before the expiration of
three years from the sale may redeem at any time within one
year after the removal of the disability; and suchthe
redemption may be of any part of the lands so real property
sold, which includes the whole of the interest of the
redemptioner. If the mortgage or other instrument creating a
lien under which a party seeks to redeem is duly recorded at
the time of the tax sale, the party shall, in addition to the
time herein specified, have the right to redeem the real
estatereal property sold, or any portion thereof covered by
his or her mortgage or lien, at any time within one year from
the date of written notice from the purchaser of his or her
purchase of the landsreal property at tax sale served upon
suchthe party, and notice served upon either the original
mortgagees or lienholders or their transferee of record, or
their heirs, personal representatives, or assigns shall be
sufficient notice.
(2) When any real property is sold for taxes and has
also been sold in one or more prior sales for taxes without
redemption from the prior tax sales, the three-year period for
925
926
927
928
929
930
931
932
933
934
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949
950
951
952 SB3 INTRODUCED
Page 35
redemption from the prior tax sales, the three-year period for
redemption shall be measured from the date of the earliest
sale of the real property for taxes.
(3) When any real property is sold for taxes at the
minimum bid specified in the decree of sale, and the real
property is not lawfully occupied as a residence as of the
date of the sale, the period for redemption shall be one year
from the date of the sale if one or both of the following
conditions apply:
a. The minimum bid included amounts attributable to one
or more housing and building code liens or nuisance abatement
liens.
b. Housing and building code liens, or nuisance
abatement liens, had been filed of record prior to the date of
the sale.
(4) When any real property is sold to a local
government or local land bank authority in accordance with
Section 40-10-18 for the minimum bid specified in the decree
of sale and the costs and expenses subsequently accruing, the
period for redemption shall be one year from the date of the
sale.
(b) If any real property has been sold for taxes and is
subject to redemption from the sale as set forth in subsection
(a) and has also been sold in one or more subsequent sales for
taxes, then any party entitled to redeem suchthe sale for
taxes may redeem suchthe sale if the redemptioner
simultaneously redeems his or her sale and all subsequent
sales. In the event of a redemption of successive sales, the
redemption amount shall be ascertained by applying the
953
954
955
956
957
958
959
960
961
962
963
964
965
966
967
968
969
970
971
972
973
974
975
976
977
978
979
980 SB3 INTRODUCED
Page 36
redemption amount shall be ascertained by applying the
provisions of Sections 40-10-121 and 40-10-122. Redemption
amounts computed pursuant to Section 40-10-121 shall be paid
as stated thereinin that section. Redemption amounts computed
pursuant to Section 40-10-122 shall be paid as stated
thereinin that section if the purchaser had the right to
redeem pursuant to subsection (a) or was the owner of the then
current tax certificate or tax title. Otherwise, those funds
shall be disposed of as set forth in Section 40-10-28 and paid
to suchthe purchaser or his or her assignee only as set forth
in Section 40-10-28, with the time limits for suchthe
application computed utilizing the sale date when the
purchaser's interest was sold for taxes." 
"§40-10-184
(a) On the day and time designated for a tax lien
auction, the tax collecting official shall proceed to auction
all tax liens described in the tax lien auction list compiled
as provided in Section 40-10-183, except those for which the
taxes, penalties, interest, fees, and costs thereondue on the
real property have been paid. Any tax lien unsold after a tax
lien auction shall be retained by the county for future
auction or sale as provided in this article.
(b) A tax lien shall be sold at auction pursuant to
this article to the person who pays all taxes, interest,
penalties, fees, and costs due on the propertyreal property,
including an origination cost of twenty dollars ($20) as of
the date of auction and a twenty dollar ($20) auction fee, and
who, in addition, bids the lowest interest rate on the amount
required to be paid to redeem the propertyreal property from
981
982
983
984
985
986
987
988
989
990
991
992
993
994
995
996
997
998
999
1000
1001
1002
1003
1004
1005
1006
1007
1008 SB3 INTRODUCED
Page 37
required to be paid to redeem the propertyreal property from
the sale. The beginning interest rate bid shall not exceed a
rate of 12 percent and additional bids may be made at a rate
less than the immediately preceding bid. If the interest rate
bid for the propertyreal property reaches 0.00 percent and
more than one bidder remains, the tax collecting official
shall draw lots to determine the winning bidder for the
propertyreal property, unless a bid for 0.00 percent is
submitted by a local government or a local land bank
authority. If a bid for 0.00 percent is submitted by a local
government or a local land bank authority, the bid shall be
accepted as the successful bid. The tender of the bid by a
local government or local land bank authority shall be for
cash with a credit for any and all components of the minimum
bid already due and payable to the county, municipality, and
school board whose taxes and liens compose part of the minimum
bid.
(c) The sale of a tax lien does not extinguish any deed
restriction, deed covenant, or easement on or appurtenant to
the parcel. A tax lien offered for auction or sale shall be
identified by a uniform parcel number and a legal
description." 
"§40-10-197
(a)(1)Except as otherwise provided in this subsection,
at At any time not less than three years after the auction or
sale of a tax lien but not more than 10 years after the
auction or sale, if the tax lien has not been redeemed, a
holder of all of the sold tax lien certificates for a parcel
of propertyreal property may bring in the circuit court of the
1009
1010
1011
1012
1013
1014
1015
1016
1017
1018
1019
1020
1021
1022
1023
1024
1025
1026
1027
1028
1029
1030
1031
1032
1033
1034
1035
1036 SB3 INTRODUCED
Page 38
of propertyreal property may bring in the circuit court of the
county in which the propertyreal property is located an action
to foreclose the right to redeem and quiet title to the
propertyreal property in the name of the holder of the tax
lien certificate. If any applicable law or court order
prohibits bringing an action to foreclose the right to redeem
and quiet title to the propertyreal property, the limitation
provided in this section shall be extended 12 months following
the termination of the prohibition.
(2) When any tax lien is auctioned and sold for taxes
and the underlying real property has also been subject to one
or more tax lien auctions and sales which tax liens have not
been redeemed, the three-year period for redemption shall be
measured from the date of the earliest sale of the unredeemed
tax lien.
(3) When any tax lien is sold for taxes at the minimum
bid specified in the decree of sale, and the real property is
not lawfully occupied as a residence as of the date of the
sale, the period for redemption shall be one year from the
date of the sale if either of the following conditions apply:
a. The minimum bid included amounts attributable to one
or more housing and building code liens or nuisance abatement
liens.
b. Housing and building code liens, or nuisance
abatement liens, had been filed of record prior to the date of
the sale.
(4) When any tax lien is sold to a local government or
local land bank authority in accordance with Section 40-10-184
for the minimum bid specified in the decree of sale and the
1037
1038
1039
1040
1041
1042
1043
1044
1045
1046
1047
1048
1049
1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064 SB3 INTRODUCED
Page 39
for the minimum bid specified in the decree of sale and the
costs and expenses subsequently accruing, the period for
redemption shall be one year from the date of the sale.
(b)(1) At least 30 days before filing a tax lien
foreclosure action under this article, but not more than 180
days before the action is commenced, the holder of the tax
lien certificates shall send notice of intent to file the
foreclosure action by certified mail to all of the following:
a. The propertyreal property owner of record, according
to the property tax records of the county in which the
propertyreal property is located, at the owner's address shown
in the records and at the street address of the propertyreal
property if different.
b. All holders of outstanding mortgages, judgment
liens, or other liens on the propertyreal property as recorded
in the probate office of the county in which the propertyreal
property is located.
c. The tax collecting official of the county in which
the propertyreal property is located.
(2) The notice shall include the propertyreal property
owner's name, the uniform parcel number, the legal description
of the propertyreal property, the name and address of the
holder of the tax lien certificate, and a statement that the
holder proposes to file a tax lien foreclosure action as soon
as 30 but not later than 180 days after the date of mailing of
the notice. If the holder fails to send the notice required by
this subsection, the court shall dismiss any tax lien
foreclosure action filed under this article.
(c) The holder shall name as parties defendant to the
1065
1066
1067
1068
1069
1070
1071
1072
1073
1074
1075
1076
1077
1078
1079
1080
1081
1082
1083
1084
1085
1086
1087
1088
1089
1090
1091
1092 SB3 INTRODUCED
Page 40
(c) The holder shall name as parties defendant to the
tax lien foreclosure action all persons entitled to redeem
under this article. Upon filing the tax lien foreclosure
action, the holder shall record a notice as provided by
Section 35-4-131.
(d)(1) In a tax lien foreclosure action, if the court
finds that the tax lien auction or sale is valid, that proper
notice has been given, that the holder is the holder of all of
the sold tax certificates on the property, and that the tax
liens have not been redeemed, the court shall enter judgment
foreclosing the right of the defendant or defendants to redeem
and shall direct the circuit clerk to execute and deliver to
the party in whose favor judgment is entered a deed conveying
the interests of the defendants in the propertyreal property
described in the tax lien certificates.
(2) After entry of judgment, a party whose rights to
redeem the tax liens are foreclosed has no further legal or
equitable right, title, or interest in the propertyreal
property subject to the right of appeal and stay of execution
as in other civil actions.
(e) The foreclosure of the right to redeem does not
extinguish any easement or right-of-way on or appurtenant to
the propertyreal property or rights of any public utility or
governmental entity in the propertyreal property.
(f)(1) The clerk's deed executed in accordance with
subsection (d) shall include all of the following information:
a. The date of the judgment.
b. The number and style of the case.
c. The name of the plaintiff, who shall be stated as
1093
1094
1095
1096
1097
1098
1099
1100
1101
1102
1103
1104
1105
1106
1107
1108
1109
1110
1111
1112
1113
1114
1115
1116
1117
1118
1119
1120 SB3 INTRODUCED
Page 41
c. The name of the plaintiff, who shall be stated as
the grantee.
d. The legal description of the propertyreal property.
e. The uniform parcel number of the propertyreal
property.
f. The date of the conveyance.
(2) The original deed shall be delivered to the
plaintiff for recording in the probate records in the county
in which the propertyreal property is located.
(g) Any person who is entitled to redeem under this
article may redeem at any time before judgment is entered,
notwithstanding that an action to foreclose has been
commenced, by paying into the circuit court the redemption
amount that would have been paid to the tax collecting
official under Section 40-10-193 plus any other amounts
determined by the court under this section. If the person who
redeems has been served personally or by publication in the
action, or if the person became an owner after the action
began and redeems after a notice is recorded pursuant to
subsection (c), the redeeming party shall also pay into the
court with the redemption amount the costs incurred by the
plaintiff in the action, including reasonable attorney fees
actually incurred, to be determined by the court. The court
shall then order the tax lien certificates cancelledcanceled
and the tax liens void, the redemption amount be paid to the
tax collecting official, and the costs and attorney fees be
paid to the plaintiff.
(h) If a tax lien that was purchased pursuant to this
article is not redeemed and the holder of the tax lien
1121
1122
1123
1124
1125
1126
1127
1128
1129
1130
1131
1132
1133
1134
1135
1136
1137
1138
1139
1140
1141
1142
1143
1144
1145
1146
1147
1148 SB3 INTRODUCED
Page 42
article is not redeemed and the holder of the tax lien
certificate fails to commence a tax lien foreclosure action on
or before 10 years from the date of the tax lien certificate,
the tax lien certificate shall expire and the lien shall
become void.
(i) If a judicial proceeding prohibits bringing a tax
lien foreclosure action, the time of expiration under this
section shall be extended by 12 months following the
completion of the judicial proceeding." 
"§40-10-199
(a) Tax liens that are not sold at the tax lien auction
conducted by the tax collecting official shall be separated in
the tax lien auction list as prescribed by Section 40-10-183
and the county shall retain the lien pursuant to Section
40-1-3. TheExcept as otherwise provided in this subsection,
the tax collecting official, within 45 days after the tax lien
auction date, may sell at private sale an unsold tax lien for
no less than all taxes, interest, penalties, costs, and fees.
A local land bank authority may acquire the unsold tax lien
for cash with a credit for any and all components of the tax
lien aggregate amount due and payable to the county,
municipality, and school board. The purchaser at private sale
shall be entitled to interest on the amount paid at a rate
agreed to by the tax collecting official, not to exceed 12
percent. All private tax lien sales shall be entered in the
record of tax lien auctions and sales, as provided in Section
40-10-188.
(b) All tax liens that remain unsold by the tax lien
auction or sale shall be included in all future tax lien
1149
1150
1151
1152
1153
1154
1155
1156
1157
1158
1159
1160
1161
1162
1163
1164
1165
1166
1167
1168
1169
1170
1171
1172
1173
1174
1175
1176 SB3 INTRODUCED
Page 43
auction or sale shall be included in all future tax lien
auctions or sales until sold.
(c) Any tax lien that does not sell at auction shall be
reported to the county commission when seeking approval of
errors in assessments, litigationslitigation, or insolvents as
the tax collecting official will be allowed credit for taxes
due to this state upon final settlement with the state
Comptroller."
Section 4. This act shall become effective on October
1, 2024.
1177
1178
1179
1180
1181
1182
1183
1184
1185