SB369 JUD AM SABSTRACT JUD

SENATE COMMITTEE ON THE JUDICIARY

COUNSEL: ANDREW ROBEY

ABSTRACT

STRIKE AND INSERT AMENDMENT FOR COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 369

BY: Senator Sypolt, Senator Miller, Senator Boso, Senator Maroney, Senator Smith

SHORT TITLE: Permitting surface owners purchase mineral interests when interest becomes tax lien

DATE INTRODUCED: February 21, 2017

CODE REFERENCE:

§11A-3-19 (Amend)

§11A-3-21 (Amend)

§11A-3-23a (New)

§11A-3-23b (New)

§11A-3-52 (Amend)

§11A-3-54 (Amend)

§11A-3-56 (Amend)

§11A-3-58a (New)

§11A-3-58b (New)

PROPOSED LAW PRESENTED TO THE COMMITTEE:

The bill permits surface owners to purchase the underlying mineral property if the mineral property is returned delinquent and purchased at a tax sale. Also, permits mineral owners to purchase the overlying surface property if the surface property is returned delinquent and purchased at a tax sale.

When a party purchases a delinquent piece of property at tax sale, notice must be provided to the surface and mineral owners before the sheriff may issue the purchaser a deed for the delinquent property. Prior to issuance of a deed, the surface owner or mineral owner, whichever applicable, may pay the clerk the redemption amount, plus an amount equal to the lesser of the redemption amount or $3000, plus a $20 administrative. Upon payment, the clerk will issue a certificate of substitution and the surface owner or mineral owner, whichever applicable, will be substituted for the purchaser of the delinquent property. The original purchaser will receive the moneys paid by the substituted surface or mineral owner. However, if the owner of the delinquent property redeems, the property, the moneys paid by the purchaser or substituted purchaser will be refunded.

TITLE: OK

FISCAL NOTE: Yes, see comments.

GOVERNMENT AGENCIES AFFECTED: Auditor, Real Estate Commission, and Tax & Revenue Department

EFFECTIVE DATE: 90 days

OTHER COMMITTEE REFERENCE AND/OR ACTION: On second reference from Energy, Industry and Mining.

COMMENTS:

Summary of Fiscal Notes:

            State Auditor- $170,000 in estimated additional costs. Will require Auditor to hire two additional employees to administer sales and will require additional software tracking and reporting programs. Will result in increased revenues as a result of additional tax sales, administrative fees, and additional title work required.

            WV Real Estate Commission- The Commission is not in a position to provide any fiscal information on the bill.

            Tax Department- No additional costs to the Tax Department.

Remember to delete this checklist before filing to Central Files.

ATTORNEY CHECKLIST

1. Are there Constitutional, statutory, regulatory or case law conflicts?  (Federal?  State?)

2. Has the bill been proofed against the Code?  Is the bill placed in the proper section of the code?

3. Is a title amendment needed?  Does the short title need amending?

4. Did you file the abstract to Central Files?  The Com Sub?  The amendments?