S.F. 2166 Section 1. Section 445.1, Code 2018, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 3A. “Legal representative” means a parent, 3 guardian, or conservator of a person with a legal disability, a 4 person appointed by a court to act on behalf of a person with a 5 legal disability, or a person acting on behalf of a person with 6 a legal disability pursuant to a power of attorney. 7 NEW SUBSECTION . 4A. “Person with a legal disability” means 8 a minor or a person of unsound mind. 9 Sec. 2. Section 447.7, Code 2018, is amended by striking the 10 section and inserting in lieu thereof the following: 11 447.7 Redemption by minors and persons of unsound mind. 12 1. If a parcel of a person with a legal disability is sold 13 at tax sale and the county treasurer has not delivered the 14 treasurer’s deed, a legal representative of the person with the 15 legal disability may redeem the parcel under sections 447.1 and 16 447.3. 17 2. a. If a parcel of a person with a legal disability is 18 sold at tax sale and the county treasurer has delivered the 19 treasurer’s deed, the person with the legal disability or the 20 person’s legal representative may redeem the parcel at any 21 time prior to one year after the legal disability is removed 22 by bringing an equitable action for redemption in the district 23 court of the county where the parcel is located, unless the 24 action is required to be brought sooner in time by operation of 25 subsection 3 or 4. 26 b. To establish the right to redeem, the person maintaining 27 the action shall prove to the court that the owner of the 28 parcel is a person with a legal disability entitled to redeem 29 prior to the delivery of the treasurer’s deed. If the legal 30 disability has been removed, the person maintaining the action 31 shall establish the date the disability was removed and explain 32 the manner by which the legal disability was removed. 33 c. The person maintaining the action shall name as 34 defendants all persons claiming an interest in the parcel 35 -1- LSB 5207SV (1) 87 asf/rj 1/ 7

S.F. 2166 derived from the tax sale, as shown by the record. 1 d. If the court determines that the person maintaining the 2 action or the person’s legal representative is entitled to 3 redeem by virtue of legal disability or prior legal disability, 4 the court shall so order. The order shall determine the 5 rights, claims, and interests of all parties, including liens 6 for taxes and claims for improvements made on or to the parcel 7 by the person claiming under the tax title. The order shall 8 establish the amount necessary to effect redemption. The 9 redemption amount shall include the amount for redemption 10 computed in accordance with section 447.1 or 447.3, whichever 11 is applicable, including interest computed up to and including 12 the date of payment of the total redemption amount to the clerk 13 of court and the amount of all costs added to the redemption 14 amount in accordance with section 447.13. In addition, if 15 the person claiming under the tax title is determined by the 16 court to have made improvements on or to the parcel after the 17 treasurer’s deed was issued, the court shall enter judgment in 18 favor of the person claiming under the tax title for an amount 19 equal to the value of all such improvements, and such judgment 20 shall be a lien on the parcel until paid. The order shall 21 direct that the person maintaining the action shall pay to the 22 clerk of court, within thirty days after the date of the order, 23 the total redemption amount the order sets forth. 24 e. Upon timely receipt of the payment, the court shall 25 enter judgment declaring the treasurer’s deed to be void and 26 determining the resulting rights, claims, and interests of 27 all parties to the action. In its judgment, the court shall 28 direct the clerk of court to deliver the entire amount of the 29 redemption payment to the person claiming title under the 30 treasurer’s deed. 31 f. If the person maintaining the action fails to timely 32 deliver payment of the total redemption amount to the clerk of 33 court, the court shall enter judgment holding that all rights 34 of redemption of the person with a legal disability who brought 35 -2- LSB 5207SV (1) 87 asf/rj 2/ 7

S.F. 2166 the action, or on whose behalf the action was brought, are 1 terminated and that the validity of the tax title or purported 2 tax title is conclusively established as a matter of law 3 against the claims of such person with a legal disability. 4 3. If a person with a legal disability remains in possession 5 of the parcel after the recording of the treasurer’s deed, and 6 if the person claiming under the tax title properly commences 7 an action to remove the person from possession, the person 8 with a legal disability shall forfeit any rights of redemption 9 that the person may have under this section, unless either of 10 the following actions is timely filed by or on behalf of the 11 person: 12 a. A counterclaim in the removal action asserting the 13 redemption rights under subsection 2 of the person with a legal 14 disability. 15 b. A separate action under subsection 2. Such action shall 16 be filed within thirty days after the person with a legal 17 disability and the person’s legal representative were served 18 with original notice in the removal action. If an action under 19 subsection 2 is filed by or on behalf of the person with a legal 20 disability within the thirty-day period, the court may order 21 the action consolidated with the removal action. 22 4. If a person with a legal disability is not in possession 23 of the parcel at the time of the recording of the treasurer’s 24 deed, the person or the person’s legal representative is 25 forever barred and estopped from commencing an action under 26 this section if either of the following occurs: 27 a. An affidavit is filed pursuant to section 448.15 and 28 claims adverse to the tax title are barred by section 448.16. 29 b. An action under subsection 2 is not brought within three 30 years after the recording of the treasurer’s deed. 31 Sec. 3. Section 447.8, subsection 1, Code 2018, is amended 32 to read as follows: 33 1. a. After the delivery of the treasurer’s deed, a person 34 entitled to redeem a parcel sold at tax sale shall do so only by 35 -3- LSB 5207SV (1) 87 asf/rj 3/ 7

S.F. 2166 an equitable action in the district court of the county where 1 the parcel is located. The action to redeem may be maintained 2 only by a person who was entitled to redeem the parcel during 3 the ninety-day redemption period in section 447.12 , except that 4 such a person may assign the person’s right of redemption or 5 right to maintain the action to another person , or by a person 6 entitled to redeem under section 447.7 . 7 b. In order to establish the right to redeem, the person 8 maintaining the action shall be required to prove to the court 9 either that the person maintaining the action or a predecessor 10 in interest was not properly served with notice in accordance 11 with the requirements of sections 447.9 through 447.12 , or that 12 the person maintaining the action or a predecessor in interest 13 acquired an interest in or possession of the parcel during 14 the ninety-day redemption period in section 447.12 . A person 15 shall not be entitled to maintain such action by claiming that 16 a different person was not properly served with notice of 17 expiration of right of redemption, if the person seeking to 18 maintain the action, or the person’s predecessor in interest, 19 if applicable, was properly served with the notice. A After 20 the execution and delivery of the treasurer’s deed, a person 21 is not allowed to may only redeem a parcel sold for delinquent 22 taxes in any other manner after the execution and delivery of 23 the treasurer’s deed under this section or section 447.7 . 24 Sec. 4. Section 448.6, subsection 1, Code 2018, is amended 25 to read as follows: 26 1. A deed executed by the county treasurer in conformity 27 with the requirements of sections 448.2 and 448.3 shall 28 be presumed to effect a valid title conveyance, and the 29 treasurer’s deed may be challenged only by an equitable action 30 in the district court in the county in which the parcel is 31 located. If the action seeks an order of the court to allow 32 redemption after delivery of the treasurer’s deed because the 33 person seeking to redeem is a person with a legal disability 34 who was entitled to redeem prior to the delivery of the 35 -4- LSB 5207SV (1) 87 asf/rj 4/ 7

S.F. 2166 treasurer’s deed, the action shall be brought in accordance 1 with section 447.7. If the action seeks an order of the court 2 to allow redemption after delivery of the treasurer’s deed 3 based on improper service of notice of expiration of right of 4 redemption, the action shall be brought in accordance with 5 section 447.8 . If the action is not brought on that basis 6 under section 447.7 or 447.8 , the action shall be controlled by 7 the provisions of this section . 8 Sec. 5. Section 448.16, subsection 3, Code 2018, is amended 9 to read as follows: 10 3. An action to enforce a claim filed under subsection 1 11 shall be commenced within sixty days after the date of filing 12 the claim. The action may be commenced by the claimant, or 13 a person under whom the claimant claims title, under either 14 section 447.7, 447.8 , or 448.6 . If an action by the claimant, 15 or such other person, is not filed within sixty days after the 16 filing of the claim, the claim thereafter shall be forfeited 17 and canceled without any further notice or action, and the 18 claimant, or the person under whom the claimant claims title, 19 thereafter shall be forever barred and estopped from having or 20 claiming any right, title, or interest in the parcel adverse to 21 the tax title or purported tax title. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the mechanism by which minors or persons 26 of unsound mind, or their legal representatives, who own real 27 estate which was sold at a tax sale may redeem such parcels. 28 The bill defines “legal representative” as a parent, 29 guardian, or conservator of a person with a legal disability, a 30 person appointed by a court to act on behalf of a person with a 31 legal disability, or a person acting on behalf of a person with 32 a legal disability pursuant to a power of attorney. The bill 33 defines “person with a legal disability” as a minor or a person 34 of unsound mind. 35 -5- LSB 5207SV (1) 87 asf/rj 5/ 7

S.F. 2166 Under current law, if a person with a legal disability is the 1 owner of a parcel that is sold at a tax sale and the treasurer’s 2 deed has been delivered, the person with a legal disability 3 may redeem the parcel at any time within one year after the 4 disability is removed, in the manner specified in Code section 5 447.8. Code section 447.8 specifies the manner of redemption 6 by an owner who alleges a failure by the holder of the tax title 7 to serve the parcel owner with notice of the tax sale and the 8 parcel owner’s redemption rights. 9 The bill specifies the procedure by which a person with 10 a legal disability can redeem a parcel sold at a tax sale 11 after the delivery of the treasurer’s deed. Before delivery 12 of the treasurer’s deed, the bill provides that the person 13 with a legal disability or the person’s legal representative 14 may redeem under Code sections 447.1 and 447.3, which is the 15 same as current law. After delivery of the treasurer’s deed, 16 the person with a legal disability or the person’s legal 17 representative must bring an equitable action for redemption in 18 the district court of the county where the parcel is located 19 and prove to the court that prior to the delivery of the 20 treasurer’s deed, the person with a legal disability or the 21 person’s legal representative was entitled to redeem by virtue 22 of such disability. All persons claiming an interest in the 23 parcel from the tax sale must be named as defendants. If the 24 court determines that the person with a legal disability or the 25 person’s legal representative is entitled to redeem, the court 26 will determine the rights, claims, and interests of all of the 27 parties, and will establish the amount necessary to effect 28 redemption. The person with a legal disability or the person’s 29 legal representative has 30 days after the date of the order 30 to pay the redemption amount. Upon timely receipt of payment, 31 the court shall declare the treasurer’s deed to be invalid. 32 If the person with a legal disability or the person’s legal 33 representative fails to timely deliver payment, such person’s 34 redemption rights are terminated. 35 -6- LSB 5207SV (1) 87 asf/rj 6/ 7

S.F. 2166 The action may be brought until one year after the disability 1 is removed unless otherwise barred. The bill bars bringing 2 the action if the person with a legal disability remained in 3 possession of the parcel, the person claiming under the tax 4 title properly commenced an action to remove the person with 5 a legal disability, and the person with a legal disability 6 or the person’s legal representative fails to timely file 7 a counterclaim or separate action asserting the right of 8 redemption. The bill also bars the action if the person with 9 a legal disability is not in possession of the parcel and the 10 action is barred by Code section 448.16. Code section 448.16 11 bars actions where the person claiming under tax title records 12 an affidavit with the county recorder of the county where the 13 parcel is located and a person with redemption rights fails to 14 file a claim within 120 days after the filing of the affidavit. 15 Finally, the bill bars the action if it is not filed within 16 three years of the recording of the treasurer’s deed. 17 -7- LSB 5207SV (1) 87 asf/rj 7/ 7