sb585_As_introduced_LC_21_8797

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06 LC 21 8797

Senate Bill 585

By: Senators Shafer of the 48th, Moody of the 56th and Balfour of the 9th

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 13 of Title 9 of the Official Code of Georgia Annotated, relating to parties in execution, so as to provide that executions for ad valorem property taxes or assessments shall be governed exclusively by Title 48; to amend Chapter 3 of Title 48 of the Official Code of Georgia Annotated, relating to tax executions, so as to define certain terms; to provide for the purchase of tax executions and the transfer of rights; to provide for the termination of such right; to provide for collection; to provide for notice; to provide for a right of satisfaction; to provide for interest and fees; to provide for notice in the event certain information is unavailable; to provide that certain officials and their employees shall not have the right to purchase tax executions; to provide a penalty; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 13 of Title 9 of the Official Code of Georgia Annotated, relating to parties in execution, is amended by striking in its entirety Code Section 9-13-36, relating to the transfer of execution upon payment, status of transferee, and recording necessary to preserve lien, and inserting in lieu thereof the following:

"9-13-36.

(a) Except as provided in subsection (b) of this Code section, whenever Whenever any person other than the person against whom the same has issued pays any execution issued without the judgment of a court, under any law, the officer whose duty it is to enforce the execution, upon the request of the party paying the same, shall transfer the execution to the party. The transferee shall have the same rights as to enforcing the execution and priority of payment as might have been exercised or claimed before the transfer, provided that the transferee shall have the execution entered on the general execution docket of the superior court of the county in which the same was issued and, if the person against whom the same was issued resides in a different county, also in the county of such persońs residence within 30 days from the transfer; in default thereof the execution shall lose its lien upon any property which has been transferred bona fide and for a valuable consideration before the recordation and without notice of the existence of the execution.

(b) The provisions of this Code section shall not apply to executions for ad valorem property taxes or assessments, which shall be governed exclusively by Chapters 2, 3, and 4 of Title 48."

SECTION 2.

Chapter 3 of Title 48 of the Official Code of Georgia Annotated, relating to tax executions, is amended by striking Code Section 48-3-19, which is reserved, and inserting in lieu thereof the following:

"48-3-19.

Reserved.

(a) As used in this Code section, the term:

(1) 'Delinquent taxpayer' means the person against whom an execution has been issued.

(2) 'Execution' means an execution issued for the collection of any ad valorem taxes or assessments, fees, penalties, interest, or collection costs due the state, any political subdivision thereof, or any municipality.

(3) 'Tax official' means the official who issued the execution.

(4) 'Transferee' means a person to whom an execution is transferred.

(b) Except as provided in subsection (c) of this Code section, upon request of any person other than the delinquent taxpayer who pays the amount then owing on an execution, the tax official shall transfer the execution to the person making the payment who shall then be a transferee. The transferee shall have the same rights as to enforcing the execution and priority of payment as might have been exercised or claimed by the tax official. The transferee may record the transfer with the clerk of the superior court of the county where the property giving rise to the execution is located.

(c) Upon the written recommendation of a tax official and upon the adoption of appropriate joint resolutions by the governing authorities of all governmental bodies, including, without limitation, school districts, which have an interest in the proceeds of executions, the right to obtain transfers of executions may be limited or terminated as provided in such recommendation and resolutions.

(d) The transferee shall not be authorized to exercise any right to enforce collection of an execution until 12 months after the date of transfer or 24 months after the tax giving rise to the execution was originally due, whichever is earlier. A transferee with multiple outstanding executions against the same delinquent taxpayer or the same property shall not be subject to the time period requirements of this provision with respect to any of such executions if at least one of the executions meets such requirements.

(e) Within 30 days from the date of the transfer, the tax official shall send notice of the transfer of the execution to the delinquent taxpayer at the last known address therefor by first class mail and may charge the transferee a reasonable fee therefor, which fee shall be added to the amount due under the execution. The notice shall contain the following:

(1) The name and mailing address for the transferee;

(2) The amount paid by the transferee for the execution, the amount added as a fee for mailing of the notice, and a statement of the interest rate applicable to the execution; and

(3) Such other information as the tax official desires to include.

(f) Until the execution is paid or satisfied, on or before October 1 of each year after the calendar year in which the transfer occurred, the transferee shall send an updated notice by first class mail to the same person or entity at the same address to whom notice was given under subsection (d) of this Code section providing the amount then necessary to satisfy such execution and any updated name or address of the transferee. If a transferee fails to provide such notice, the transferee shall not be entitled to collect interest which has accrued since the date such notice was to have been given unless and until such failure is cured by providing proper notice and allowing the person or entity a period of 30 days to pay such execution.

(g) A transferred execution shall bear interest as specified in Code Section 48-2-40 on the amount paid for such execution from the date of the transfer plus any fee added under subsection (e) of this Code section plus recording fees actually expended in recording the transfer and cancellation of the execution and such other penalties as are provided for in this title. This limitation on the amount charged for release or satisfaction of an execution shall be absolute, and it shall be unlawful to charge any other fees or charges of any kind for such a release or satisfaction.

(h) The transferee shall provide to the tax official the transfereés mailing address, together with any additional contact information the tax official may require. In the event any person desires to pay and satisfy an execution but is unable to locate the transferee, such person may send notice of intent to deliver payment for the execution to the tax official by mailing such notice by certified mail or statutory overnight delivery, return receipt requested, to the transfereés last address of record as maintained with the tax official. Upon delivering proof of said notice to the tax official, no sooner than ten days and no later than 60 days after sending the same, the person desiring to pay the execution may tender to the tax official payment in full of the execution in an amount calculated by the tax official as sufficient to satisfy the execution, as calculated under subsection (f) of this Code section. Upon such payment, the tax official shall satisfy the execution and shall remit the funds received to the transferee on demand."

SECTION 3.

Said chapter is further amended by striking in its entirety Code Section 48-3-20, relating to interest on transferred executions, and inserting in lieu thereof the following:

"48-3-20.

All tax executions, when recorded as prescribed by law and which have been transferred to third persons, shall bear interest at the rate specified in Code Section 48-2-40 from the date of transfer.

(a) It shall be unlawful for any of the following persons or any employee of any such person to pay a tax execution in order to obtain a transfer of such tax execution:

(1) County tax receivers, tax collectors, and tax commissioners;

(2) Members of county boards of tax assessors;

(3) Members of county boards of equalization; and

(4) County tax appraisers.

(b) Any execution transferred in violation of this Code section shall be void and unenforceable by the person obtaining the execution and such persońs successors in interest.

SECTION 4.

The provisions of this Act shall apply to all executions transferred on or after July 1, 2006. Executions transferred prior to July 1, 2006, shall not be affected by this Act.

SECTION 5.

All laws and parts of laws in conflict with this Act are repealed.