Alabama 2024 Regular Session

Alabama Senate Bill SB9 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB9ENROLLED~~
	1	+	SB9ENGROSSED
2	2		Page 0
3	3		SB9
4		-	65NR33-3
	4	+	65NR33-2
5	5		By Senator Coleman-Madison
6	6		RFD: County and Municipal Government
7	7		First Read: 06-Feb-24
8	8		PFD: 03-Jan-24
9	9		1
10	10		2
11	11		3
12	12		4
13	13		5
14		-	6 SB9 ~~Enrolled~~
	14	+	6 SB9 Engrossed
15	15		Page 1
16	16		PFD: 03-Jan-24
17		-	Enrolled, An Act,
	17	+	A BILL
	18	+	TO BE ENTITLED
	19	+	AN ACT
18	20		Relating to Class 1 municipalities; to authorize Class
19	21		1 municipalities to enforce local and state building
20	22		maintenance regulations by judicial in rem foreclosure of
21	23		municipal code enforcement and nuisance abatement liens on
22	24		certain property; and to authorize Class 1 municipalities to
23	25		recover the amount of unpaid municipal code and nuisance
24	26		abatement liens and the cost of municipal code enforcement
25	27		upon the court-ordered sale of certain property.
26	28		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
27	29		Section 1. For purposes of this act, the following
28	30		terms have the following meanings:
29	31		(1) INTERESTED PARTY. Any of the following:
30	32		a. The person who last appears as owner of a particular
31	33		real property in the office of the judge of probate's property
32	34		records.
33	35		b. The current mortgagee of record of the real property
34	36		or assignee of record of the mortgagee.
35	37		c. The current holder of a beneficial interest in a
36	38		deed of trust recorded against the real property.
37	39		d. A tax certificate holder.
38	40		e. A tax sale purchaser that holds a deed of purchase
39		-	in accordance with Section 40-10-29, Code of Alabama 1975.
40		-	f. A tax lien purchaser that holds a tax lien
41		-	certificate in accordance with Section 40-10-187, Code of
42		-	Alabama 1975.
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70		-	28 SB9 ~~Enrolled~~
	68	+	28 SB9 Engrossed
71	69		Page 2
	70	+	e. A tax sale purchaser that holds a deed of purchase
	71	+	in accordance with Section 40-10-29, Code of Alabama 1975.
	72	+	f. A tax lien purchaser that holds a tax lien
	73	+	certificate in accordance with Section 40-10-187, Code of
72	74		Alabama 1975.
73	75		g. Any party having an interest in the real property,
74	76		in whole or in part, legal or equitable, in severalty or as
75	77		tenant in common, whose identity and address is reasonably
76	78		ascertainable from the records of the Class 1 municipality or
77	79		records maintained in the county office of the judge of
78	80		probate or as revealed by a full title search, consisting of
79	81		60 years or more.
80	82		h. An interested party shall not include the holder of
81	83		the benefit of an easement that burdens the real property, the
82	84		holder of the benefit or burden of a real covenant that
83	85		burdens the real property, or the holder of the benefit of a
84	86		utility easement that burdens the real property.
85	87		(2) MINIMUM BID PRICE. The price that equals the
86	88		redemption amount.
87	89		(3) MUNICIPAL CODE LIEN. Any lien that has been levied
88	90		against real property by a Class 1 municipality due to the
89	91		nonpayment of any fine, penalty, abatement cost, assessment,
90	92		or enforcement cost incurred by a Class 1 municipality related
91	93		to the enforcement of state or local housing and building
92	94		codes or a lien arising from the abatement of nuisances by the
93	95		Class 1 municipality. The term shall apply only to those liens
94	96		that arise out of a failure to comply with any of the
95	97		following or from the failure to comply with a Class 1
96	98		municipality's ordinances enacted pursuant to the authority
97		-	granted in any of the following:
98		-	a. Article 2 of Chapter 40 of Title 11, Code of Alabama
99		-	1975.
100		-	b. Sections 11-47-117 and 11-47-118, Code of Alabama
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127	125		55
128		-	56 SB9 ~~Enrolled~~
	126	+	56 SB9 Engrossed
129	127		Page 3
	128	+	municipality's ordinances enacted pursuant to the authority
	129	+	granted in any of the following:
	130	+	a. Article 2 of Chapter 40 of Title 11, Code of Alabama
	131	+	1975.
130	132		b. Sections 11-47-117 and 11-47-118, Code of Alabama
131	133		1975.
132	134		c. Sections 11-47-130, 11-47-131, and 11-47-140, Code
133	135		of Alabama 1975.
134	136		d. Chapter 53 of Title 11, Code of Alabama 1975.
135	137		e. Chapter 53B of Title 11, Code of Alabama 1975.
136	138		f. Article 4 of Chapter 67 of Title 11, Code of Alabama
137	139		1975.
138	140		g. Section 45-37A-53, Code of Alabama 1975.
139	141		(4) MUNICIPAL CODE LIEN PAYOFF. An amount equal to the
140	142		sum of the following:
141	143		a. The principal amount of a municipal code lien.
142	144		b. Interest accrued at the rate of six percent per
143	145		annum from the date the municipal code lien was filed in the
144	146		judge of probate's office unless a different rate and date of
145	147		accrual is specified by statute.
146	148		c. Any fees or costs incurred in the collection of a
147	149		lien under this act including, without limitation, the cost of
148	150		title examinations and publication of notices.
149	151		d. Any attorney fees, filing fees, and court costs
150	152		incurred in a judicial in rem foreclosure proceeding under
151	153		this act.
152	154		e. Any other penalties authorized under state law or
153	155		pursuant to an ordinance enacted by a Class 1 municipality.
154	156		(5) OWNER-OCCUPIED. Real property that is lawfully
155		-	occupied as a principal residence of the owner of record or of
156		-	a family member of a deceased individual who was the owner of
157		-	record at the time of his or her death, and that is any of the
158		-	following:
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186		-	84 SB9 ~~Enrolled~~
	184	+	84 SB9 Engrossed
187	185		Page 4
	186	+	(5) OWNER-OCCUPIED. Real property that is lawfully
	187	+	occupied as a principal residence of the owner of record or of
	188	+	a family member of a deceased individual who was the owner of
	189	+	record at the time of his or her death, and that is any of the
188	190		following:
189	191		a. A homestead as provided in Section 40-9-19, Code of
190	192		Alabama 1975.
191	193		b. Exempt from ad valorem taxation under Sections
192	194		40-9-19.1, 40-9-20, or 40-9-21, Code of Alabama 1975.
193	195		c. Eligible for, but not yet granted, either of the
194	196		designations set forth in paragraph a. or b.
195	197		(6) REDEMPTION AMOUNT. The sum of the following:
196	198		a. The full amount of the municipal code lien payoff
197	199		for each municipal code lien on which a Class 1 municipality
198	200		is seeking to foreclose under this act.
199	201		b. Any tax payoff that may be applicable to the
200	202		property on which the Class 1 municipality is seeking to
201	203		foreclose under this act.
202	204		(7) TAX CERTIFICATE HOLDER. Any of the following:
203	205		a. A tax sale purchaser that holds a certificate of
204	206		purchase pursuant to Section 40-10-19, Code of Alabama 1975.
205	207		b. The state, in the event that it has accepted and
206	208		recorded a certificate of purchase obtained at a tax sale
207	209		pursuant to Section 40-10-20, Code of Alabama 1975.
208	210		c. A county, in the event that a tax lien not sold at a
209	211		tax lien auction of real property situated in the county is
210	212		retained by the county pursuant to Section 40-10-199, Code of
211	213		Alabama 1975.
212		-	d. Any party to which a certificate of purchase
213		-	obtained at a tax sale has been assigned pursuant to Section
214		-	40-10-21, Code of Alabama 1975.
215		-	e. The purchaser or assignee of a tax lien certificate
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243		-	112 SB9 ~~Enrolled~~
	241	+	112 SB9 Engrossed
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	243	+	Alabama 1975.
	244	+	d. Any party to which a certificate of purchase
	245	+	obtained at a tax sale has been assigned pursuant to Section
	246	+	40-10-21, Code of Alabama 1975.
245	247		e. The purchaser or assignee of a tax lien certificate
246	248		as provided in Section 40-10-187, Code of Alabama 1975.
247	249		(8) TAX PAYOFF. All amounts necessary to satisfy any
248	250		claims for delinquent taxes assessed against the real property
249	251		on which a Class 1 municipality is seeking to foreclose under
250	252		this act. These amounts shall include all of the following:
251	253		a. If the taxes associated with the property are
252	254		delinquent pursuant to Sections 40-11-4 or 11-51-2, Code of
253	255		Alabama 1975, but the property has not yet been sold for
254	256		taxes, then the full amount of delinquent taxes, costs, fees,
255	257		and charges due to the county tax collector pursuant to
256	258		Section 40-5-8, Code of Alabama 1975.
257	259		b. If the property has been sold to the state for
258	260		taxes, then those amounts required for redemption as provided
259	261		in Sections 40-10-83, 40-10-120, 40-10-121, and 40-10-122,
260	262		Code of Alabama 1975, except that when a Class 1 municipality
261	263		is the prevailing bidder, the tax payoff amount shall be the
262	264		lesser of these amounts or the amount provided by Section
263	265		40-10-132(a)(2), Code of Alabama 1975.
264	266		c. If the property has been sold for taxes to a party
265	267		other than the state, then those amounts required for
266	268		redemption as provided in Sections 40-10-83, 40-10-120,
267	269		40-10-121, and 40-10-122, Code of Alabama 1975.
268	270		d. If a tax lien has been sold by a county pursuant to
269	271		Section 40-10-182, Code of Alabama 1975, then the amount
270		-	required for redemption pursuant to Section 40-10-193, Code of
271		-	Alabama 1975.
272		-	(9) TAXES. The taxes assessed against real property by
273		-	either the state, the county, or a Class 1 municipality in
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275	273		114
276	274		115
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301		-	140 SB9 ~~Enrolled~~
	299	+	140 SB9 Engrossed
302	300		Page 6
	301	+	Section 40-10-182, Code of Alabama 1975, then the amount
	302	+	required for redemption pursuant to Section 40-10-193, Code of
	303	+	Alabama 1975.
	304	+	(9) TAXES. The taxes assessed against real property by
303	305		either the state, the county, or a Class 1 municipality in
304	306		which the real property is situated which are delinquent
305	307		pursuant to Sections 40-11-4 or 11-51-2, Code of Alabama 1975,
306	308		as of the date a proceeding under this act is commenced or at
307	309		any time before final resolution of the same and shall include
308	310		any taxes assessed against real property that are unpaid from
309	311		any previous year and any amounts required for redemption
310	312		pursuant to Sections 40-10-83, 40-10-120, 40-10-193, or
311	313		11-51-23, Code of Alabama 1975. As provided in Section
312	314		11-51-6, Code of Alabama 1975, a lien for taxes shall be
313	315		superior to all other liens, including municipal code liens.
314	316		Section 2. (a) This act applies only to Class 1
315	317		municipalities.
316	318		(b) This act shall not apply to owner-occupied
317	319		property.
318	320		Section 3. (a) Notwithstanding any law to the contrary,
319	321		any fees, penalties, and abatement costs imposed against real
320	322		property for abatement of nuisances or violations of a Class 1
321	323		municipality's housing and building codes adopted pursuant to
322	324		state law, other than owner-occupied property, may be enforced
323	325		in rem as a lien pursuant to this act.
324	326		(b) Unless otherwise specified by law, municipal code
325	327		liens may be filed in the judge of probate's office for the
326	328		county where the real property is situated.
327	329		(c) Every municipal code lien shall be superior to all
328		-	other liens except those liens for taxes pursuant to Section
329		-	11-51-6, Code of Alabama 1975.
330		-	Section 4. (a) A Class 1 municipality may proceed with
331		-	judicial in rem foreclosures of municipal code liens in
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359		-	168 SB9 ~~Enrolled~~
	357	+	168 SB9 Engrossed
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	359	+	(c) Every municipal code lien shall be superior to all
	360	+	other liens except those liens for taxes pursuant to Section
	361	+	11-51-6, Code of Alabama 1975.
	362	+	Section 4. (a) A Class 1 municipality may proceed with
361	363		judicial in rem foreclosures of municipal code liens in
362	364		accordance with this act by enacting an ordinance of the
363	365		governing body of the Class 1 municipality where the real
364	366		property is situated, which ordinance shall be sufficient
365	367		authority for use of this act by the Class 1 municipality to
366	368		enforce its municipal code liens.
367	369		(b) The ordinance of a Class 1 municipality authorizing
368	370		and approving the use of this act shall set forth all of the
369	371		following:
370	372		(1) The initial effective date for application of these
371	373		procedures.
372	374		(2) If the Class 1 municipality elects not to apply
373	375		these procedures to all real properties as of the same initial
374	376		effective date, it shall specify all of the following:
375	377		a. Which real properties are subject to these
376	378		procedures.
377	379		b. The order in which the real properties shall be
378	380		subject to these procedures.
379	381		c. The time and manner of determining paragraphs a. and
380	382		b.
381	383		(3) The explicit exclusion of owner-occupied properties
382	384		from the application of the judicial in rem foreclosure
383	385		procedures authorized under this act.
384	386		(4) Any other matters related to code enforcement that
385	387		the Class 1 municipality designates for administrative
386		-	regulation.
387		-	(c) The provisions of a Class 1 municipality ordinance
388		-	and administrative regulations issued pursuant to the
389		-	ordinance shall not conflict with Sections 5 through 8 of this
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417		-	196 SB9 ~~Enrolled~~
	415	+	196 SB9 Engrossed
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	417	+	the Class 1 municipality designates for administrative
	418	+	regulation.
	419	+	(c) The provisions of a Class 1 municipality ordinance
	420	+	and administrative regulations issued pursuant to the
419	421		ordinance shall not conflict with Sections 5 through 8 of this
420	422		act.
421	423		(d) Proceedings in accordance with this act are
422	424		intended solely to enforce the municipal code lien for real
423	425		property subject to the lien and shall not constitute an
424	426		action for personal liability of the owner or owners of the
425	427		real property to which the lien applies.
426	428		(e) The rights and remedies provided in this act are
427	429		available solely to the governmental entities authorized by
428	430		law to enforce municipal ordinances and shall not extend to
429	431		any nongovernmental transferee of municipal code liens.
430	432		(f) A Class 1 municipality that has adopted the
431	433		provisions of this act by ordinance and that seeks to enforce
432	434		a municipal code lien through the sale of real property shall
433	435		utilize the judicial in rem proceedings authorized under this
434	436		act as the sole remedy for the enforcement through the sale of
435	437		real property.
436	438		(g) The enforcement proceedings authorized under this
437	439		act may be initiated only by a Class 1 municipality.
438	440		(h) A municipal code lien shall not include any lien
439	441		that has previously been certified to the tax collector of the
440	442		county for inclusion on the property tax bill associated with
441	443		the real property, such as those liens certified pursuant to
442	444		Section 11-67-66 or Section 45-37A-53, Code of Alabama 1975,
443	445		or any other applicable local act.
444		-	Section 5. (a)(1) After a municipal code lien has been
445		-	recorded with the office of the judge of probate for the
446		-	county in which the real property is situated, the governing
447		-	body of a Class 1 municipality may identify by resolution
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475		-	224 SB9 ~~Enrolled~~
	473	+	224 SB9 Engrossed
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	475	+	or any other applicable local act.
	476	+	Section 5. (a)(1) After a municipal code lien has been
	477	+	recorded with the office of the judge of probate for the
	478	+	county in which the real property is situated, the governing
477	479		body of a Class 1 municipality may identify by resolution
478	480		those properties on which to commence a judicial in rem
479	481		foreclosure pursuant to this act, provided, however, that
480	482		those properties the Class 1 municipality identifies as
481	483		owner-occupied shall not be subject to judicial in rem
482	484		foreclosure.
483	485		(2) A Class 1 municipality shall not file a petition
484	486		for judicial in rem foreclosure pursuant to this act for a
485	487		period of six months following the date upon which the
486	488		municipal code lien is recorded in the office of the judge of
487	489		probate. A petition for judicial in rem foreclosure may
488	490		include any other municipal code lien that has been filed
489	491		against the subject property prior to the date the petition is
490	492		filed. After enforcement proceedings have commenced, the
491	493		enforcement proceedings may be amended to include any
492	494		subsequently arising municipal code liens and, if applicable,
493	495		any taxes.
494	496		(b) If the property on which a Class 1 municipality is
495	497		seeking to foreclose is subject to taxes, then at least 60
496	498		days prior to the filing of the petition the Class 1
497	499		municipality shall notify all other taxing entities within the
498	500		jurisdiction of the Class 1 municipality and the state of its
499	501		intention to file a petition for judicial in rem foreclosure
500	502		of the real property on which a municipal code lien exists.
501	503		Upon notification, the county tax collector shall provide the
502		-	tax payoff amount.
503		-	(c) A Class 1 municipality shall initiate an action to
504		-	foreclose a code enforcement lien pursuant to this act by
505		-	filing a petition with the clerk of the circuit court for the
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533		-	252 SB9 ~~Enrolled~~
	531	+	252 SB9 Engrossed
534	532		Page 10
	533	+	Upon notification, the county tax collector shall provide the
	534	+	tax payoff amount.
	535	+	(c) A Class 1 municipality shall initiate an action to
	536	+	foreclose a code enforcement lien pursuant to this act by
535	537		filing a petition with the clerk of the circuit court for the
536	538		judicial circuit in which the real property is situated. The
537	539		petition shall be substantially identical in form and content
538	540		to the form provided in subsection (j). The case shall be
539	541		docketed in the circuit court by the clerk where it shall be a
540	542		preferred case. The circuit court in which a petition is filed
541	543		under this subsection shall immediately set the date, time,
542	544		and place for a hearing on the petition.
543	545		(d) Upon filing the petition, a Class 1 municipality
544	546		shall record an appropriate lis pendens in the office of the
545	547		judge of probate of the county in which the real property is
546	548		situated. The lis pendens shall include all of the following
547	549		information pertaining to the real property:
548	550		(1) The legal description.
549	551		(2) The tax identification number of the real property.
550	552		(3) The street address if available.
551	553		(4) A statement that the property is subject to
552	554		judicial in rem foreclosure proceedings under this act.
553	555		(5) A statement that those proceedings may extinguish
554	556		any legal interests in the property.
555	557		(e) The petition shall be filed against the real
556	558		property to which the recorded municipal code lien pertains
557	559		and shall provide all of the following pertaining to the real
558	560		property:
559	561		(1) The identity of the Class 1 municipality.
560		-	(2) A legal description.
561		-	(3) The tax identification number of the property.
562		-	(4) The street address if available.
563		-	(5) A description of the municipal code lien that is
564	562		253
565	563		254
566	564		255
567	565		256
568	566		257
569	567		258
570	568		259
571	569		260
572	570		261
573	571		262
574	572		263
575	573		264
576	574		265
577	575		266
578	576		267
579	577		268
580	578		269
581	579		270
582	580		271
583	581		272
584	582		273
585	583		274
586	584		275
587	585		276
588	586		277
589	587		278
590	588		279
591		-	280 SB9 ~~Enrolled~~
	589	+	280 SB9 Engrossed
592	590		Page 11
	591	+	(1) The identity of the Class 1 municipality.
	592	+	(2) A legal description.
	593	+	(3) The tax identification number of the property.
	594	+	(4) The street address if available.
593	595		(5) A description of the municipal code lien that is
594	596		being foreclosed.
595	597		(6) The principal amount of the municipal code lien and
596	598		any applicable interest and penalties.
597	599		(7) The principal amount of any additional municipal
598	600		code liens against the property and any applicable interest
599	601		and penalties in accordance with subsection (a).
600	602		(8) The year or years for which the taxes are
601	603		delinquent, if any.
602	604		(9) The principal amount of the taxes and any interest
603	605		and penalties.
604	606		(10) The tax payoff amount.
605	607		(11) A statement that upon final sale in accordance
606	608		with this section and payment of any applicable tax payoff
607	609		amount, an interested party's rights of redemption under
608	610		Chapter 10 of Title 40, Chapter 51 of Title 11, Section
609	611		11-53B-10, or Section 11-48-54, Code of Alabama 1975, shall be
610	612		extinguished.
611	613		(12) The names and addresses of all interested parties
612	614		to whom copies of the petition shall be sent pursuant to
613	615		subsection (f).
614	616		(13) A deraignment of title for a period of at least 60
615	617		years before filing the complaint, unless the court otherwise
616	618		directs, setting forth the book and page of the records where
617	619		any instrument affecting the title may be recorded.
618		-	(f)(1) A Class 1 municipality shall mail copies of the
619		-	petition by both certified mail, return receipt requested, and
620		-	by regular mail to all interested parties whose identities and
621		-	addresses are reasonably ascertainable.
622	620		281
623	621		282
624	622		283
625	623		284
626	624		285
627	625		286
628	626		287
629	627		288
630	628		289
631	629		290
632	630		291
633	631		292
634	632		293
635	633		294
636	634		295
637	635		296
638	636		297
639	637		298
640	638		299
641	639		300
642	640		301
643	641		302
644	642		303
645	643		304
646	644		305
647	645		306
648	646		307
649		-	308 SB9 ~~Enrolled~~
	647	+	308 SB9 Engrossed
650	648		Page 12
	649	+	any instrument affecting the title may be recorded.
	650	+	(f)(1) A Class 1 municipality shall mail copies of the
	651	+	petition by both certified mail, return receipt requested, and
	652	+	by regular mail to all interested parties whose identities and
651	653		addresses are reasonably ascertainable.
652	654		(2) Copies of the petition shall also be mailed by
653	655		first-class mail to the real property address to the attention
654	656		of the occupants of the property, if any.
655	657		(3) In addition, notice shall be physically posted on
656	658		the real property and shall include the following statement:
657	659		"THIS PROPERTY IS SUBJECT TO A JUDICIAL IN REM FORECLOSURE
658	660		ACTION AND MAY BE TRANSFERRED TO [NAME OF CLASS 1
659	661		MUNICIPALITY] OR ANOTHER PARTY. PERSONS WITH INFORMATION
660	662		REGARDING THE CURRENT OWNER OF THE PROPERTY ARE REQUESTED TO
661	663		CONTACT [NAME OF CLASS 1 MUNICIPALITY]."
662	664		(g) If a Class 1 municipality finds reason to believe
663	665		that the real property is owner-occupied after the filing of
664	666		the petition, the Class 1 municipality shall immediately seek
665	667		dismissal of its petition.
666	668		(h) Within 30 days after filing the petition, a Class 1
667	669		municipality shall cause a notice of the filing to be
668	670		published once each week for three consecutive weeks in a
669	671		newspaper of general circulation in the county in which the
670	672		property is located. The notice shall specify the name and
671	673		address of the Class 1 municipality and the following
672	674		pertaining to the real property:
673	675		(1) The legal description.
674	676		(2) The tax identification number.
675	677		(3) The street address if available.
676		-	(4) A description of any applicable municipal code lien
677		-	that is being foreclosed.
678		-	(5) The principal amount of any municipal code lien and
679		-	any interest and penalties.
680	678		309
681	679		310
682	680		311
683	681		312
684	682		313
685	683		314
686	684		315
687	685		316
688	686		317
689	687		318
690	688		319
691	689		320
692	690		321
693	691		322
694	692		323
695	693		324
696	694		325
697	695		326
698	696		327
699	697		328
700	698		329
701	699		330
702	700		331
703	701		332
704	702		333
705	703		334
706	704		335
707		-	336 SB9 ~~Enrolled~~
	705	+	336 SB9 Engrossed
708	706		Page 13
	707	+	(3) The street address if available.
	708	+	(4) A description of any applicable municipal code lien
	709	+	that is being foreclosed.
	710	+	(5) The principal amount of any municipal code lien and
709	711		any interest and penalties.
710	712		(6) The applicable period of tax delinquency, if any.
711	713		(7) The principal amount of taxes, if any.
712	714		(8) Upon deposit by the court of any tax payoff amounts
713	715		with the appropriate parties, any rights of redemption
714	716		accorded to interested parties under Chapter 10 of Title 40,
715	717		Chapter 51 of Title 11, Section 11-53B-10, or Section
716	718		11-48-54, Code of Alabama 1975, are extinguished.
717	719		(9) The date and place of the filing of the petition.
718	720		(i) If the identity of some or all of the individuals
719	721		who may have an interest in the real property are unknown, or
720	722		if they are minors or individuals of unsound mind, the court
721	723		shall appoint a guardian ad litem to represent and defend the
722	724		interests of the unknown, minors, or incompetent parties in
723	725		the action.
724	726		(j) The municipality, by ordinance, may adopt forms to
725	727		implement and administer this section.
726	728		Section 6. (a)(1) A Class 1 municipality shall request
727	729		that a judicial hearing on the petition occur not earlier than
728	730		30 days nor later than 90 days following the filing of the
729	731		petition.
730	732		(2) At the judicial hearing, any interested party shall
731	733		have the right to be heard and to contest the delinquency of
732	734		the municipal code lien, the adequacy of the proceedings, the
733	735		classification of the real property as owner-occupied, and the
734		-	amount of the tax payoff.
735		-	(b) If the court determines that the information set
736		-	forth in the petition is accurate, the court shall render its
737		-	judgment and shall order all of the following:
738	736		337
739	737		338
740	738		339
741	739		340
742	740		341
743	741		342
744	742		343
745	743		344
746	744		345
747	745		346
748	746		347
749	747		348
750	748		349
751	749		350
752	750		351
753	751		352
754	752		353
755	753		354
756	754		355
757	755		356
758	756		357
759	757		358
760	758		359
761	759		360
762	760		361
763	761		362
764	762		363
765		-	364 SB9 ~~Enrolled~~
	763	+	364 SB9 Engrossed
766	764		Page 14
	765	+	classification of the real property as owner-occupied, and the
	766	+	amount of the tax payoff.
	767	+	(b) If the court determines that the information set
	768	+	forth in the petition is accurate, the court shall render its
767	769		judgment and shall order all of the following:
768	770		(1) The municipal code lien is delinquent.
769	771		(2) The amounts of any additional municipal code liens
770	772		and taxes described in the petition are delinquent.
771	773		(3) Proper notice has been given to all interested
772	774		parties.
773	775		(4) The property is not owner-occupied.
774	776		(5) The property as described in the petition be sold
775	777		in accordance with the provisions of this act.
776	778		(6) The sale shall become final and binding immediately
777	779		after the sale is conducted in accordance with Section 8.
778	780		(c) The order of the court shall provide that the real
779	781		property be sold free and clear of all liens, claims, and
780	782		encumbrances other than all of the following:
781	783		(1) Rights of redemption provided under federal law.
782	784		(2) Taxes assessed against the property that are due
783	785		but not yet delinquent as of the date of the court's order.
784	786		(3) Any easement that burdens the property, any real
785	787		covenant that burdens the property, and any utility easement
786	788		that benefits the property as of the date of the filing of the
787	789		municipal code lien on which the Class 1 municipality is
788	790		seeking to foreclose under this act.
789	791		(d) If at any point in the proceedings the court
790	792		determines that the real property is owner-occupied, then the
791	793		Class 1 municipality shall seek immediate dismissal of the
792		-	proceedings.
793		-	Section 7. (a) At any point prior to the conclusion of
794		-	the sale described in Section 8(a), any interested party may
795		-	redeem the real property from the sale by payment of the
796	794		365
797	795		366
798	796		367
799	797		368
800	798		369
801	799		370
802	800		371
803	801		372
804	802		373
805	803		374
806	804		375
807	805		376
808	806		377
809	807		378
810	808		379
811	809		380
812	810		381
813	811		382
814	812		383
815	813		384
816	814		385
817	815		386
818	816		387
819	817		388
820	818		389
821	819		390
822	820		391
823		-	392 SB9 ~~Enrolled~~
	821	+	392 SB9 Engrossed
824	822		Page 15
	823	+	Class 1 municipality shall seek immediate dismissal of the
	824	+	proceedings.
	825	+	Section 7. (a) At any point prior to the conclusion of
	826	+	the sale described in Section 8(a), any interested party may
825	827		redeem the real property from the sale by payment of the
826	828		redemption amount. Payment shall be made to the Class 1
827	829		municipality. Following receipt of the redemption payment, the
828	830		Class 1 municipality shall file for dismissal of the
829	831		proceedings.
830	832		(b) In the event that the owner of the real property
831	833		pays the redemption amount, the proceedings shall be
832	834		dismissed, and the rights and interests of all interested
833	835		parties shall remain unaffected.
834	836		(c) In the event of a redemption payment by any
835	837		interested party other than the owner, the party making the
836	838		payment shall possess a lien on the real property for the full
837	839		amount of the payment, which lien shall have the same priority
838	840		as the municipal code lien described in Section 3(c). The
839	841		lienholder shall have the right to enforce the lien as
840	842		permitted to the holder of any lien under existing law. The
841	843		lienholder shall not otherwise succeed to the rights of the
842	844		Class 1 municipality or tax certificate holder.
843	845		Section 8. (a) Following the hearing and order of the
844	846		court in accordance with Section 7, the court shall cause a
845	847		sale of the real property to be advertised and conducted by
846	848		the court in a manner similar to the procedure described in
847	849		Section 40-10-15, Code of Alabama 1975. The sale shall not
848	850		occur earlier than 45 days following the date of the order of
849	851		the court.
850		-	(b)(1) Except as otherwise authorized by law, the
851		-	minimum bid price for the sale of the real property shall be
852		-	the redemption amount.
853		-	(2)a. In the absence of any bid higher than the minimum
854	852		393
855	853		394
856	854		395
857	855		396
858	856		397
859	857		398
860	858		399
861	859		400
862	860		401
863	861		402
864	862		403
865	863		404
866	864		405
867	865		406
868	866		407
869	867		408
870	868		409
871	869		410
872	870		411
873	871		412
874	872		413
875	873		414
876	874		415
877	875		416
878	876		417
879	877		418
880	878		419
881		-	420 SB9 ~~Enrolled~~
	879	+	420 SB9 Engrossed
882	880		Page 16
	881	+	the court.
	882	+	(b)(1) Except as otherwise authorized by law, the
	883	+	minimum bid price for the sale of the real property shall be
	884	+	the redemption amount.
883	885		(2)a. In the absence of any bid higher than the minimum
884	886		bid price, the court or its designee shall bid in for the
885	887		property on behalf of the Class 1 municipality or its designee
886	888		in an amount equal to the minimum bid price, causing the Class
887	889		1 municipality to become the purchaser at the sale pursuant to
888	890		Section 7.
889	891		b. A bid in on behalf of the Class 1 municipality or
890	892		its designee shall be tendered as a credit bid for the portion
891	893		of the minimum bid price equal to the municipal code lien
892	894		payoff. If the minimum bid price bid in by the Class 1
893	895		municipality includes a tax payoff amount, the Class 1
894	896		municipality shall tender the amount of the tax payoff to the
895	897		court, which, together with the municipal code lien payoff,
896	898		shall satisfy the full amount of the minimum bid price.
897	899		(c) Payment of the winning bid shall be due immediately
898	900		after the sale is conducted. The proceeds of the foreclosure
899	901		sale shall be distributed in the following manner:
900	902		(1) If the purchaser is a party other than the Class 1
901	903		municipality, the court or its designee shall deposit with the
902	904		Class 1 municipality the amount of the proceeds equal to the
903	905		municipal code lien payoff, less any costs incurred or fees
904	906		charged by the office of the judge of probate.
905	907		(2) If the purchaser is the Class 1 municipality, then
906	908		the Class 1 municipality shall tender to the court an amount
907		-	equal to any costs incurred by the court that are included in
908		-	the amount of the municipal code lien payoff.
909		-	(3) If the minimum bid price includes a tax payoff
910		-	amount, the court shall deposit the amounts paid with the
911	909		421
912	910		422
913	911		423
914	912		424
915	913		425
916	914		426
917	915		427
918	916		428
919	917		429
920	918		430
921	919		431
922	920		432
923	921		433
924	922		434
925	923		435
926	924		436
927	925		437
928	926		438
929	927		439
930	928		440
931	929		441
932	930		442
933	931		443
934	932		444
935	933		445
936	934		446
937	935		447
938		-	448 SB9 ~~Enrolled~~
	936	+	448 SB9 Engrossed
939	937		Page 17
	938	+	the Class 1 municipality shall tender to the court an amount
	939	+	equal to any costs incurred by the court that are included in
	940	+	the amount of the municipal code lien payoff.
	941	+	(3) If the minimum bid price includes a tax payoff
940	942		amount, the court shall deposit the amounts paid with the
941	943		appropriate parties in accordance with Sections 40-5-10,
942	944		40-10-128, 40-10-129, and 40-10-193, Code of Alabama 1975, and
943	945		any applicable local laws.
944	946		(4) In the event that the foreclosure sale price
945	947		exceeds the minimum bid price, the surplus shall be
946	948		distributed by the court to the interested parties, including
947	949		the owner, as their interests appear and in the order of
948	950		priority in which their interests exist.
949	951		(d) Upon deposit by the court of any tax payoff amounts
950	952		with the appropriate parties as described in subdivision
951	953		(d)(3), any and all rights of redemption accorded to
952	954		interested parties under Chapter 10 of Title 40, Chapter 51 of
953	955		Title 11, Section 11-53B-10, or Section 11-48-54, Code of
954	956		Alabama 1975, are extinguished.
955	957		(e) From and after the moment of the sale, the sale
956	958		shall be final and binding.
957	959		(f) Within 90 days following the date of the sale, the
958	960		court shall cause to be executed a deed to the real property
959	961		identified in the petition. Upon execution, the court shall
960	962		cause the deed to be recorded with the office of the judge of
961	963		probate.
962	964		(g) Within 90 days following the date of the sale, the
963	965		Class 1 municipality shall file a report of the sale with the
964	966		clerk of the circuit court, which report shall identify
965		-	whether a sale took place, the foreclosure sale price, and the
966		-	identity of the purchaser.
967		-	(h) The municipality by ordinance, may adopt forms to
968		-	implements and administer this section.
969	967		449
970	968		450
971	969		451
972	970		452
973	971		453
974	972		454
975	973		455
976	974		456
977	975		457
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980	978		460
981	979		461
982	980		462
983	981		463
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985	983		465
986	984		466
987	985		467
988	986		468
989	987		469
990	988		470
991	989		471
992	990		472
993	991		473
994	992		474
995	993		475
996		-	476 SB9 ~~Enrolled~~
	994	+	476 SB9 Engrossed
997	995		Page 18
	996	+	clerk of the circuit court, which report shall identify
	997	+	whether a sale took place, the foreclosure sale price, and the
	998	+	identity of the purchaser.
	999	+	(h) The municipality by ordinance, may adopt forms to
998	1000		implements and administer this section.
999	1001		Section 9. This act shall become effective on October
1000	1002		1, 2024.
1001	1003		477
1002		-	478 SB9 Enrolled
1003		-	Page 19
1004		-	1, 2024.
1005		-	________________________________________________
1006		-	President and Presiding Officer of the Senate
1007		-	________________________________________________
1008		-	Speaker of the House of Representatives
1009		-	SB9
1010		-	Senate 04-Apr-24
1011		-	I hereby certify that the within Act originated in and passed
1012		-	the Senate, as amended.
1013		-	Patrick Harris,
1014		-	Secretary.
1015		-	House of Representatives
1016		-	Passed: 25-Apr-24
1017		-	By: Senator Coleman-Madison
	1004	+	478
1018	1005		479
1019	1006		480
1020	1007		481
1021		-	482
	1008	+	482 SB9 Engrossed
	1009	+	Page 19
	1010	+	1, 2024.
	1011	+	Senate
	1012	+	Read for the first time and referred
	1013	+	to the Senate committee on County
	1014	+	and Municipal Government
	1015	+	................03-Jan-24
	1016	+	Read for the second time and placed
	1017	+	on the calendar:
	1018	+	0 amendments
	1019	+	................06-Mar-24
	1020	+	Read for the third time and passed
	1021	+	as amended
	1022	+	Yeas 24
	1023	+	Nays 1
	1024	+	Abstains 2
	1025	+	................04-Apr-24
	1026	+	Patrick Harris,
	1027	+	Secretary.
1022	1028		483
1023	1029		484
1024	1030		485
1025	1031		486
1026	1032		487
1027	1033		488
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1050		-	511