SB1067 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-268, Arizona Revised Statutes, is amended to read:

START_STATUTE11-268. Removal of rubbish, trash, weeds, filth, debris and dilapidated buildings; violation; classification; removal by county; costs assessed; collection; priority of lien; definitions

A. The board of supervisors, by ordinance, shall compel the owner, lessee or occupant of buildings, grounds or lots located in the unincorporated areas of the county to remove rubbish, trash, weeds, filth, debris or dilapidated buildings that constitute a hazard to public health and safety from buildings, grounds, lots, contiguous sidewalks, streets and alleys. Any such ordinance shall require and include:

1. Reasonable written notice to the owner, any lienholder, the occupant or the lessee. The notice shall be given at least thirty days before the day set for compliance and shall include the estimated cost to the county for the removal if the owner, occupant or lessee does not comply. The notice shall be either personally served or mailed by certified mail to the owner, occupant or lessee at his the owner's, occupant's or lessee's last known address, or the address to which the tax bill for the property was last mailed. If the owner does not reside on the property, a duplicate notice shall also be sent to the owner at the owner's last known address.

2. Provisions for appeal on both the notice and the assessments.

3. That any person, firm or corporation that recklessly places any rubbish, trash, filth or debris on any private or public property located in the unincorporated areas of the county not owned or under the control of the person, firm or corporation:

(a) Is guilty of a class 1 misdemeanor unless that person, firm or corporation immediately removes or causes to be removed the rubbish, trash, filth or debris from that property. One hundred per cent percent of any assessed fine shall be deposited in the general fund of the county in which the fine was assessed. At least fifty per cent percent of the fine shall be used by the county for the purposes of illegal dumping cleanup.

(b) In addition to the fine that is imposed for a violation of this section, is liable for all costs that may be assessed pursuant to this section for the removal of the rubbish, trash, filth or debris.

4. at the option of the board of supervisors, the county treasurer to include on the property tax bill and property tax statement for the property the amount of the assessment.

B. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant of the buildings, grounds or lots, after notice as required by subsection A, paragraph 1 of this section, does not remove the rubbish, trash, weeds, filth, debris or dilapidated buildings and abate the condition that constitutes a hazard to public health and safety, the county, at the expense of the owner, lessee or occupant, may remove, abate, enjoin or cause the removal of the rubbish, trash, weeds, filth, debris or dilapidated buildings.

C. The board of supervisors may prescribe by the ordinance a procedure for such removal or abatement and for making the actual cost of the removal or abatement, including the actual costs of any additional inspection and other incidental costs in connection with the removal or abatement, an assessment on the lots and tracts of land from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed.

D. The ordinance may provide that the cost of removal, abatement or injunction of the rubbish, trash, weeds, filth, debris or dilapidated buildings from any lot or tract of land located in the unincorporated areas of the county and associated legal costs be assessed in the manner and form prescribed by ordinance of the county on the property from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed, abated or enjoined. The county shall record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment and the legal description of the property. Any assessment recorded after August 6, 1999 is prior and superior to all other liens, obligations or other encumbrances, except liens for general taxes and prior recorded mortgages. A sale of the property to satisfy an assessment obtained under this section shall be made on judgment of foreclosure and order of sale. The county may bring an action to enforce the lien in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the lien by such action does not affect its validity. The recorded assessment is prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings before the recording of the assessment. The assessment provided for in this subsection shall not be levied against state or federal property.

E. Assessments that are imposed under subsection D of this section run against the property until they the assessments are paid and are due and payable in equal annual installments as follows:

1. Assessments of less than five hundred dollars $500 shall be paid within one year after the assessment is recorded.

2. Assessments of five hundred dollars $500 or more but less than one thousand dollars $1,000 shall be paid within two years after the assessment is recorded.

3. Assessments of one thousand dollars $1,000 or more but less than five thousand dollars $5,000 shall be paid within three years after the assessment is recorded.

4. Assessments of five thousand dollars $5,000 or more but less than ten thousand dollars $10,000 shall be paid within six years after the assessment is recorded.

5. Assessments of ten thousand dollars $10,000 or more shall be paid within ten years after the assessment is recorded.

F. A prior assessment for the purposes provided in this section is not a bar to a subsequent assessment or assessments for such purposes, and any number of liens on the same lot or tract of land may be enforced in the same action.

G. Before the removal of a dilapidated building, the board of supervisors shall consult with the state historic preservation officer to determine if the building is of historical value.

H. If a county removes a dilapidated building pursuant to this section, the county assessor shall adjust the valuation of the property on the property assessment tax rolls from the date of removal.

I. If a person, firm or corporation is required to remove any rubbish, trash, filth or debris pursuant to subsection A, paragraph 3 of this section, the person, firm or corporation shall provide the county with a receipt from a disposal facility to indicate that the rubbish, trash, filth or debris has been disposed of as required by law.

J. For the purposes of this section:

1. "Dilapidated building" means any real property structure that is likely to burn or collapse and its condition endangers the life, health, safety or property of the public.

2. Occupant does not include any corporation or association operating or maintaining rights-of-way for and on behalf of the United States government, either under contract or under federal law.

3. Owner does not include a state or federal landowner. END_STATUTE

Sec. 2. Section 42-18115, Arizona Revised Statutes, is amended to read:

START_STATUTE42-18115. Easements and liens not extinguished by sale

A. The sale of a real property tax lien does not extinguish any easement on or appurtenant to the property.

B. The sale of a real property tax lien does not extinguish any lien for an assessment levied pursuant to title 48, chapter 4, 6 or 14, or section 9-276 or 11-268.END_STATUTE

Sec. 3. Section 42-18204, Arizona Revised Statutes, is amended to read:

START_STATUTE42-18204. Judgment foreclosing right to redeem; effect

A. In an action to foreclose the right to redeem:

1. If the court finds that the tax lien sale is valid, the tax lien has not been redeemed and the defendant's request for an excess proceeds sale is unreasonable or the defendant did not request an excess proceeds sale, the court shall enter judgment:

(a) Foreclosing the right of the defendant to redeem.

(b) Directing the county treasurer to expeditiously execute and deliver to the party in whose favor judgment is entered, including the state, a deed conveying the property described in the certificate of purchase.

2. If the court finds that the tax lien sale is valid, the tax lien has not been redeemed and the defendant's request for an excess proceeds sale is reasonable, the court shall enter judgment:

(a) Foreclosing the right of the defendant to redeem.

(b) Directing the sale of the property pursuant to article 6 of this chapter.

(c) Setting the opening bid for the property as the total of the amounts described in subsection B, paragraph 1, subdivisions (a), (b), (c) and (e) of this section and any other reasonable fees as determined by the court.

B. A property owner whose right to redeem is being foreclosed may request the court to determine if the sale of the property to recover excess proceeds is reasonable. The court shall determine that the sale of the property for excess proceeds is reasonable if the sale price of the property is likely to be more than $2,500 above the total of the amounts described in paragraph 1 of this subsection. If a request is made for an excess proceeds sale, the following information shall be provided to the court for the purposes of determining if an excess proceeds sale is reasonable:

1. The certificate of purchase holder shall provide all of the following:

(a) The costs related to filing the claim to foreclose the right to redeem, including estimated attorney fees and costs to be incurred through the date of the excess proceeds sale, if ordered.

(b) The amount for which the real property tax lien was sold, with interest at a rate of sixteen percent per annum from the date of the tax lien sale through the date of the excess proceeds sale, if ordered.

(c) The amount of any statutory fees the certificate of purchase holder paid in connection with the certificate of purchase, except the processing fee imposed by section 42-18116, subsection C, with interest at a rate of sixteen percent per annum from the date of the tax lien sale through the date of the excess proceeds sale, if ordered.

(d) The amount of all other recorded state liens or encumbrances on the state property as indicated on a title report provided by the certificate of purchase holder, including other years in which taxes are delinquent. For the purposes of this subdivision, the certificate of purchase holder does not have to determine the actual balance owed on any lien or encumbrance on the property, except for property taxes owed.

(e) The estimated cost of the sale of property pursuant to article 6 of this chapter.

(f) Any other evidence relating to the value of the property or objecting to the excess proceeds sale that the certificate of purchase holder deems necessary.

2. The property owner whose right to redeem is being foreclosed shall provide a reasonable estimate of the market value of the property.

C. After entering judgment the parties whose rights to redeem the tax lien are thereby foreclosed have no further legal or equitable right, title or interest in the property subject to the right of appeal and stay of execution as in other civil actions.

D. The foreclosure of the right to redeem does not extinguish any of the following:

1. An easement on or appurtenant to the property.

2. A lien for an assessment levied pursuant to title 48, chapter 4, 6, 14 or 18 or section 9-276 or 11-268. For the purposes of this paragraph, assessment does not include an abatement lien imposed under section 9-499.

3. If the court finds that the request for an excess proceeds sale is reasonable, the property owner's interest in the excess proceeds from the sale of the property pursuant to article 6 of this chapter. END_STATUTE