The bill HB270 amends Sections 40-10-28 and 40-10-197 of the Code of Alabama 1975, focusing on the distribution of excess funds from tax sales and the foreclosure process for tax lien purchasers. Key insertions include provisions for distributing excess funds to individuals or entities that have redeemed properties, with a requirement that these funds be held for three years before claims can be made under specific conditions. The bill also clarifies the county commission's role in handling these funds and validates any prior actions regarding excess funds taken before July 2, 2017. Additionally, it modifies the timeline for tax lien purchasers to initiate foreclosure actions, requiring notice to property owners and interested parties via certified or First Class mail.

Further amendments expand the notification requirements for tax lien foreclosure actions, mandating that all parties with an interest in the property be informed and that an affidavit detailing the notification process be filed. The bill emphasizes the need for a complaint outlining the rights of individuals to redeem the property before a final judgment is entered, and it requires the appointment of a guardian ad litem for minors or incapacitated defendants. New provisions regarding the auction process for tax lien certificates are also introduced, including the determination of the minimum bid by the court and the distribution of auction proceeds. The bill establishes a ten-year expiration timeline for tax lien certificates if foreclosure actions are not initiated, and it is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 40-10-28, 40-10-197
Engrossed: 40-10-28, 40-10-197
Enrolled: 40-10-28, 40-10-197