Fiscal Note & Local Impact Statement

124 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 ² Phone: (614) 466-3615

² Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Sub. H.B. 520

DATE:

December 3, 2002

STATUS:

As Reported by Senate Ways & Means

SPONSOR:

Rep. Hoops

LOCAL IMPACT STATEMENT REQUIRED:

No —

Permissive

 


CONTENTS:

Revises the forcible entry and detainer law relative to writs of execution issued in connection with manufactured home park residential premises

 

State Fiscal Highlights

 

STATE FUND

FY 2003

FY 2004

FUTURE YEARS

General Revenue Fund

     Revenues

Potential minimal gain

Potential minimal gain

Potential minimal gain

     Expenditures

- 0 -

- 0 -

- 0 -

Unclaimed Funds (Fund 543)

     Revenues

Potential minimal gain

Potential minimal gain

Potential minimal gain

     Expenditures

- 0 -

- 0 -

- 0 -

 

·        Potential minimal gain in revenues to the General Revenue Fund received from the sale of personal property abandoned at a rented campsite that is stored and sold by the State Highway Patrol.

·        Potential minimal increase in unclaimed funds may be received from the sale of manufactured homes and vehicles.

Local Fiscal Highlights

 

LOCAL GOVERNMENT

FY 2003

FY 2004

FUTURE YEARS

Counties and municipalities

     Revenues

Potential minimal gain

Potential minimal gain

Potential minimal gain

     Expenditures

Potential increase

Potential increase

Potential increase

Townships

     Revenues

Potential minimal gain

Potential minimal gain

Potential minimal gain

     Expenditures

Potential increase

Potential increase

Potential increase

Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.

 

·        Potential minimal gain in court filing fee revenues for counties and municipalities due to an increased number of forcible entry and detainer judgments, writs of execution judgments, and actions for seizures of property at campsites.

·        Potential increase in local government expenditures for law enforcement if either a significant number of cases require additional officers to be hired to enforce the writs of execution, or if local law enforcement move or store manufactured homes or vehicles under writ of execution orders.  The action by local law enforcement to move or store the property is permissive, and if undertaken, these costs become a first lien on the property and are reimbursed upon the sale of the property.  A potential minimal increase in expenditures for storage of property abandoned at campsites that is seized by local law enforcement and sold or disposed.

·        Potential minimal gain in GRF revenues received from the sale of personal property abandoned at a rented campsite that is stored and sold by the local law enforcement.

 


 


 

 

Detailed Fiscal Analysis

 

H.B. 520 revises the forcible entry and detainer (FE&D) law relative to writs of execution issued in connection with manufactured home park residential premises.  Current law does not address the abandonment of manufactured homes, mobile homes or recreational vehicles in residential parks.  The bill also addresses property left abandoned at campsites.

 

I.  Manufactured Homes, Mobile Homes and Recreational Vehicles

 

Forcible Entry and Detainer Judgment

 

If a manufactured home, mobile home or residential vehicle is left unoccupied for thirty days without notice to the landlord and without payment of rent on the property, a park operator can bring an action against the home or vehicle owner to seek judgment for eviction.  A court filing fee ($225 for Franklin County), which is paid to the county court, municipal court or court of common pleas, accompanies the initial request for judgment.

 

If ruling in favor of the plaintiff (park operator), the judge in the FE&D action is required to permit the removal and potential sale, destruction, or transfer of ownership of the defendant’s home or vehicle.  If it remains on the property for three days following the eviction judgment, the plaintiff must provide to the owner a written notice to remove the home or vehicle from the park within fourteen days from the delivery of the notice.  If it is not removed within fourteen days, the plaintiff may request a writ of execution for judgment.

 

Writ of Execution

 

When requesting a writ of execution, the plaintiff is required to conduct a public records search to identify any persons with an outstanding right, title or interest on the property and to include this information on the request for the writ of execution, giving those individuals notification of the impending action.  Upon filing the request for a writ of execution, the plaintiff must pay a second filing fee ($90 for Franklin County), which is also paid to the county court, municipal court or court of common pleas.

 

The writ judgment commands local law enforcement to cause the defendant to be removed from the plaintiff’s premises; it also gives the sheriff, police officer, constable, bailiff, or an agent of law enforcement the option to move or store the home or vehicle off the premises.  There is a potential increase in expenditures by local law enforcement if they choose to exercise the option of removing the home or vehicle from the park.  This provision is permissive, however, and if exercised, could cause a potentially large increase in expenditures.  For example, a transport company charges $450 in moving fees to transport a 14’x70’or smaller manufactured home to a location within a 25-mile range.  Accompanying this moving fee is a $150 labor fee to unblock the home at the residential park and a $250 labor fee to re-block the home at its new location.  Expenditures would amount to at least $850 for the transport of a single home; moving and labor costs increase with the size of the home.  The bill permits local law enforcement or their agents to incur all of the expenses relating to the removal, sale, destruction or transfer of the title of the property.  The bill also states that a local law enforcement officer is immune from civil liability and the park operator is not liable for any damage to the home or vehicle during movement or storage of it unless performed in a malicious or reckless manner.

 

Prior to the issuance of the writ, the titled owner of the home or vehicle, or the subject of the writ, can remove the home or vehicle from the property upon payment of all outstanding tax liens to the county auditor and, unless indigent, upon payment of any unpaid court costs; after the issuance of the writ, the titled owner can remove the home or vehicle at any time up to the day before the scheduled sale, destruction or transfer of the home or vehicle upon payment of the following:  (a) all costs of moving or storage of the home or vehicle incurred by the law enforcement or agent; (b) all outstanding tax liens; and (c) unless indigent, all unpaid court costs assessed against the defendant in the underlying action.

 

This bill requires that within sixty days of receiving a writ of execution, the law enforcement must begin proceedings for the sale of the home or vehicle.

 

Proceeds from Sale of Property:

 

Proceeds from the sale of the home or vehicle must be distributed in the following order:

 

(1)    To pay the costs of moving and storage outside the manufactured home park, costs of sale, and any unpaid court costs assessed against the defendant;

 

(2)    To pay all outstanding tax liens on the home or vehicle;

 

(3)    To pay all other outstanding security interests, liens, or encumbrances on the property;

 

(4)    To pay any outstanding monetary judgment rendered in favor of the plaintiff and any costs associated with retaining the home or vehicle prior to the sale at its location on the residential premises; and

 

(5)    Finally, for the sheriff or law enforcement officer to report any remaining money as unclaimed funds.

 

If a home or vehicle has not been successfully sold after two attempts, then the title of the property can be transferred to the plaintiff free of any liens and delinquent taxes.

 

If the value of the home or vehicle is under $3,000, the plaintiff can sell or destroy the property, or upon presentation of the writ, the clerk of courts can issue a certificate transferring the title of the home or vehicle to the plaintiff, free and clear of all security interests, liens and encumbrances.  Any delinquent taxes due on the property are forgiven.

 

Relocation Fee

 

To move a manufactured or mobile home on public roads from one address within the state to another, a relocation notice must be obtained from the county auditor’s office of the county in which the home is located provided that the home is subject to taxation pursuant to laws regarding manufactured and mobile home taxes.  The relocation fee is $5.

 

Additional Law Enforcement Employees

 

If a significant number of cases were to occur within a political subdivision, the local law enforcement entity may need to hire additional employees to handle the larger caseload.  The Manufactured Homes Association estimates 2,500-3,000 incidents of home or vehicle abandonment across the state, with a large percentage of these occurring in southern Ohio.

           

II.  Property Abandoned at Campsites

 

Action to Seize Property

 

A campsite user who enters into an agreement with a camp operator for the use of a campsite at a recreational vehicle park, recreation camp, combined park-camp, or temporary park-camp, is required to remove all personal property at the expiration of the campsite use period.  If any of the user’s property is left unoccupied for five days, the camp operator must perform an inventory of the items left on the property and can alert the user by letter that the belongings must be removed within ten days of the mailing.  If not removed within ten days, the camp operator may file an action to seize in the appropriate jurisdictional court.  A court filing fee (in most cases $225 for Franklin County), which is paid to the court accompanies the request for judgment.

 

After the filing of an action for seizure, the clerk of the court issues a summons and a copy of the complaint to the campsite user.  The complaint requires that the property be removed from the site within seven days of the filing, and includes a description of the procedure if the property is not removed as well as a requirement that the campsite user must pay the clerk of court the amount of the filing fees for the complaint.  If the campsite user fails to pay the fees, the property can be sold to pay for these fees.  The campsite user has seven days to respond to the complaint.  If no response is provided, the court can order law enforcement to remove and store the property or issue a new title certificate to the camp operator if the property is a titled vehicle.  Upon the removal and storage of the property, a public records search must be conducted to determine if any individual has an outstanding right, title or lien on the property, and they must subsequently be notified. 

 

Proceeds from Sale of Property:

 

Proceeds from the sale of the home or vehicle must be distributed in the following order:

 

(1)   To pay the costs of moving and storage, costs of sale, and any unpaid court costs assessed against the campsite user;

 

(2)   To pay all other outstanding security interests, liens, or encumbrances on the property; and

 

(3)   Finally, any remaining money is transferred to the owner of the property.

 

 

 

 

Property Not Sold

 

If the property is not sold, the law enforcement officer or camp operator will dispose of the property accordingly:

 

(a)                First if the property is a motor vehicle or recreational vehicle, it must disposed of under the procedure in section 4513.61 or 4513.63 of the Revised Code, which guides law enforcement on the sale or disposal of vehicles by public auction or to a motor vehicle salvage dealer.

 

(b)               If the property is personal property, is must be disposed of under the procedure listed in section 2933.41 of the Revised Code, which allows law enforcement to sell unclaimed property at public auction with the proceeds being deposited into the general fund of the state, county, township or municipal corporation of with the law enforcement agency involved is an agency.  The state General Revenue Fund could receive proceeds from the sale of abandoned personal property; this could also minimally increase the revenues of county, township and municipal corporation general funds. 

 

While the State Highway Patrol does have a limited number of facilities at which to store vehicles or property, they may not be readily available for these cases.  In cases where outside storage is necessary, current practice by the State Highway Patrol does not pay for these expenses, but rather the owner of the property in question is directly billed for these expenses. 

 

 

LSC fiscal staff:  Allison Thomas, Economist

 

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