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Committee advances technical fixes to Arizona tax-lien foreclosure law
Summary
The House Ways and Means Committee voted to return HB 2780 with a due-pass recommendation after testimony that the bill clarifies when judicial tax-lien foreclosures must be conducted as public sales and standardizes distribution of excess proceeds to protect lienholders, counties and former owners.
Chairman Olsen called HB 2780 a targeted technical cleanup to Arizona’s judicial tax‑lien foreclosure statutes and the committee returned the bill to the calendar with a due‑pass recommendation.
Representative Sarah Ligori, sponsor and a member from Legislative District 5, said the bill “makes targeted technical updates to Arizona's judicial tax lien foreclosure by providing courts clear statutory guidance on public sales and the distribution of excess proceeds while preserving the rights of lienholders and the counties.” She told members she had worked with a constituent with 30 years of experience under the statutes and deferred technical questions to him.
Mark Manuel, who identified himself as the constituent and testified as a practitioner, explained that the measure resolves language left over from Senate Bill 1431 (2024) about sale dates and the credit‑bid computation. He said the change prevents tax‑lien investors from claiming unrelated state liens in computing their credit bid and ensures former property owners can receive excess equity when appropriate. Manuel described the statutory scheme including a judicial threshold (the witness said courts typically order a public sale when potential equity reaches $2,500) and the statutory “waterfall” for distributing sale proceeds.
After brief member questions, Vice Chair moved the bill and the secretary called the roll. The committee recorded 9 ayes, 0 nos and returned HB 2780 with a due‑pass recommendation.
The committee did not adopt any amendments on the floor during the hearing. Next steps: the bill will proceed according to the House calendar for further consideration.
