The bill amends Sections 40-10-132 and 40-10-134 of the Code of Alabama 1975, enhancing the Land Commissioner's authority to sell state-owned bid-in land. It mandates that the Land Commissioner maintain a listing of all such lands, including details like legal description, taxes due, and bid-in date. After three years, unredeemed properties may be sold by the state through various methods, including private sale or to certain entities, with the sale price covering all claims or at the best price offered. Additionally, the bill introduces a new provision allowing the Land Commissioner to sell unredeemed properties through an online public auction if they have not been sold within five years from the date of sale, starting January 1, 2025. The auction will be managed by a contracted auction company, subject to a contingency fee, and the company will handle all expenses.

HB196 Enrolled requires that before the state's tax lien interest on a property is auctioned, interested parties must be notified via the Department of Revenue's website at least 30 days prior to the auction. The bill details the auction company's responsibilities, including advertising and clarifying that purchasers are bidding on the tax lien interest, not clear title. It also outlines the distribution of auction funds: for properties with state, county, and municipal taxes, the proceeds are divided equally among the State General Fund, county general fund, and municipality; for properties with only state and county taxes, the proceeds are split between the State General Fund and the county general fund. The act will take effect on October 1, 2024.