The Senate Government Organization Committee voted to report the committee substitute for Senate Bill 538 to the full Senate with a recommendation that it do pass, adopting an amendment that broadens the criteria used to bar certain buyers from acquiring tax‑delinquent properties.
The committee substitute keeps in place the bill’s core change — removing a sunset and notice provision so the right of first refusal remains permanent — and incorporates an amendment offered by Senators Helton and Jeffreys to expand the definition of a disqualifying “bad actor.”
The amendment cites two code sections by number and broadens the set of factors that can lead an auditor conducting a public auction to refuse to sell to a bidder. Counsel told the committee those provisions (11A‑3‑45 and 11A‑3‑48) now include examples such as failure to make required payments at a prior auction, delinquency in payment of real property tax to any county, a history of noncompliance with county or municipal code‑enforcement orders, and failure to comply with valid repair or abatement orders within five years prior to registration for an auction.
Committee members said the bill had been laid over at a prior meeting to give time to draft that clarifying amendment; the substitute adopted at this hearing incorporates the revised language. During discussion, a senator asked where proceeds above the delinquent taxes go; counsel said the understanding presented at the prior hearing was that surplus proceeds are retained by the county.
The motion to report the committee substitute to the full Senate was made by the vice chair and carried by voice vote; the chair declared the motion adopted.
Ending: The committee’s recommendation sends the committee substitute to the full Senate for consideration. The transcript does not record a roll‑call tally; the committee adopted the motion by voice vote.