Connecticut 2015 Regular Session

Connecticut Senate Bill SB00461 Compare Versions

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1-General Assembly Committee Bill No. 461
2-January Session, 2015 LCO No. 3937
3- *03937SB00461PD_*
1+General Assembly Proposed Bill No. 461
2+January Session, 2015 LCO No. 1932
3+ *01932*
44 Referred to Committee on PLANNING AND DEVELOPMENT
55 Introduced by:
6-(PD)
6+SEN. KANE, 32nd Dist.
77
88 General Assembly
99
10-Committee Bill No. 461
10+Proposed Bill No. 461
1111
1212 January Session, 2015
1313
14-LCO No. 3937
14+LCO No. 1932
1515
16-*03937SB00461PD_*
16+*01932*
1717
1818 Referred to Committee on PLANNING AND DEVELOPMENT
1919
2020 Introduced by:
2121
22-(PD)
22+SEN. KANE, 32nd Dist.
2323
24-AN ACT PROHIBITING THE ASSIGNMENT OF CERTAIN MUNICIPAL LIENS.
24+AN ACT PROHIBITING THE TRANSFER OF CERTAIN MUNICIPAL TAX LIENS.
2525
2626 Be it enacted by the Senate and House of Representatives in General Assembly convened:
2727
28-Section 1. Section 12-195h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
29-
30-Any municipality, by resolution of its legislative body, as defined in section 1-1, may assign, for consideration, any and all liens filed by the tax collector to secure unpaid taxes in excess of two thousand five hundred dollars on real property as provided under the provisions of this chapter. The consideration received by the municipality shall be negotiated between the municipality and the assignee. The assignee or assignees of such liens shall have and possess the same powers and rights at law or in equity as such municipality and municipality's tax collector would have had if the lien had not been assigned with regard to the precedence and priority of such lien, the accrual of interest and the fees and expenses of collection and of preparing and recording the assignment. The assignee shall have the same rights to enforce such liens as any private party holding a lien on real property including, but not limited to, foreclosure and a suit on the debt. The assignee, or any subsequent assignee, shall provide written notice of an assignment, not later than thirty days after the date of such assignment, to any holder of a mortgage, on the real property that is the subject of the assignment, provided such holder is of record as of the date of such assignment. Such notice shall include information sufficient to identify (1) the property that is subject to the lien and in which the holder has an interest, (2) the name and addresses of the assignee, and (3) the amount of unpaid taxes, interest and fees being assigned relative to the subject property as of the date of the assignment.
31-
32-Sec. 2. Subsection (c) of section 7-254 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
33-
34-(c) Any municipality, by resolution of its legislative body, may assign, for consideration, any and all liens filed by the tax collector to secure unpaid sewer assessments in excess of two thousand five hundred dollars as provided under the provisions of this chapter. The consideration received by the municipality shall be negotiated between the municipality and the assignee. The assignee or assignees of such liens shall have and possess the same powers and rights at law or in equity as such municipality and municipality's tax collector would have had if the lien had not been assigned with regard to the precedence and priority of such lien, the accrual of interest and the fees and expenses of collection. The assignee shall have the same rights to enforce such liens as any private party holding a lien on real property, including, but not limited to, foreclosure and a suit on the debt. Costs and reasonable attorneys' fees incurred by the assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this section and directly related to the proceeding shall be taxed in any such proceeding against each person having title to any property subject to the proceedings. Such costs and fees may be collected by the assignee at any time after demand for payment has been made by the assignee.
35-
36-Sec. 3. Subsection (b) of section 7-258 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
37-
38-(b) Any municipality, by resolution of its legislative body, may assign, for consideration, any and all liens filed by the tax collector or collector of sewerage system connection and use charges to secure unpaid sewerage connection and use charges in excess of two thousand five hundred dollars as provided under the provisions of this chapter. The consideration received by the municipality shall be negotiated between the municipality and the assignee. The assignee or assignees of such liens shall have and possess the same powers and rights at law or in equity as such municipality and municipality's tax collector would have had if the lien had not been assigned with regard to the precedence and priority of such lien, the accrual of interest and the fees and expenses of collection. The assignee shall have the same rights to enforce such liens as any private party holding a lien on real property, including, but not limited to, foreclosure and a suit on the debt. Costs and reasonable attorneys' fees incurred by the assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this section and directly related to the proceeding shall be taxed in any such proceeding against each person having title to any property subject to the proceedings. Such costs and fees may be collected by the assignee at any time after demand for payment has been made by the assignee.
39-
40-Sec. 4. Subsection (c) of section 7-239 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
41-
42-(c) Any municipality, by resolution of its legislative body, may assign, for consideration, any and all liens filed by the superintendent of the waterworks system or tax collector to secure unpaid water charges in excess of two thousand five hundred dollars as provided under the provisions of this chapter. The consideration received by the municipality shall be negotiated between the municipality and the assignee. The assignee or assignees of such liens shall have and possess the same powers and rights at law or in equity as such municipality and municipality's tax collector would have had if the lien had not been assigned with regard to the precedence and priority of such lien, the accrual of interest and the fees and expenses of collection. The assignee shall have the same rights to enforce such liens as any private party holding a lien on real property, including, but not limited to, foreclosure and a suit on the debt. Costs and reasonable attorneys' fees incurred by the assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this section and directly related to the proceeding shall be taxed in any such proceeding against each person having title to any property subject to the proceedings. Such costs and fees may be collected by the assignee at any time after demand for payment has been made by the assignee.
43-
44-
45-
46-
47-This act shall take effect as follows and shall amend the following sections:
48-Section 1 October 1, 2015 12-195h
49-Sec. 2 October 1, 2015 7-254(c)
50-Sec. 3 October 1, 2015 7-258(b)
51-Sec. 4 October 1, 2015 7-239(c)
52-
53-This act shall take effect as follows and shall amend the following sections:
54-
55-Section 1
56-
57-October 1, 2015
58-
59-12-195h
60-
61-Sec. 2
62-
63-October 1, 2015
64-
65-7-254(c)
66-
67-Sec. 3
68-
69-October 1, 2015
70-
71-7-258(b)
72-
73-Sec. 4
74-
75-October 1, 2015
76-
77-7-239(c)
28+That chapter 205 of the general statutes be amended to prohibit municipalities from transferring municipal tax liens of less than twenty-five hundred dollars to a third party.
7829
7930 Statement of Purpose:
8031
81-To limit the assignment of tax, sewer and water liens to liens on unpaid taxes, sewer charges and assessments, and water charges in excess of two thousand five hundred dollars.
82-
83-[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]
84-
85-
86-
87-Co-Sponsors: SEN. KANE, 32nd Dist.
88-
89-Co-Sponsors:
90-
91-SEN. KANE, 32nd Dist.
92-
93-S.B. 461
32+To prevent foreclosures by limiting the sale of small tax liens.