Connecticut 2022 Regular Session

Connecticut Senate Bill SB00128 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00128-R01-
4		-	SB.docx
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7		-	General Assembly Substitute Bill No. 128
	4	+	LCO No. 970 1 of 14
	5	+
	6	+	General Assembly Raised Bill No. 128
8	7		February Session, 2022
	8	+	LCO No. 970
9	9
	10	+
	11	+	Referred to Committee on PLANNING AND DEVELOPMENT
	12	+
	13	+
	14	+	Introduced by:
	15	+	(PD)
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12	18
13	19
14	20		AN ACT CONCERNING FORECLOSURE, ASSIGNMENT AND OTHER
15	21		ENFORCEMENT ACTIONS FOR UNPAID SEWER ASSESSMENTS
16	22		AND OTHER FEES AND CHARGES.
17	23		Be it enacted by the Senate and House of Representatives in General
18	24		Assembly convened:
19	25
20	26		Section 1. Section 7-254 of the 2022 supplement to the general statutes 1
21	27		is repealed and the following is substituted in lieu thereof (Effective 2
22	28		October 1, 2022, and applicable to actions filed on or after October 1, 2022): 3
23	29		(a) Any assessment of benefits or any installment thereof, not paid 4
24	30		within thirty days after the due date, shall be delinquent and shall be 5
25	31		subject to interest from such due date at the interest rate and in the 6
26	32		manner provided by the general statutes for delinquent property taxes. 7
27	33		Each addition of interest shall be collectible as a part of such assessment. 8
28	34		(b) (1) Whenever any installment of an assessment becomes 9
29	35		delinquent, the interest on such delinquent installment shall be as 10
30	36		provided in subsection (a) of this section or five dollars, whichever is 11
31	37		greater. Any unpaid assessment and any interest due thereon shall 12
32	38		constitute a lien upon the real estate against which the assessment was 13
33		-	levied from the date of such levy. Each such lien may be continued, 14
	39	+	levied from the date of such levy. Each such lien may be continued, 14 Raised Bill No. 128
	40	+
	41	+
	42	+
	43	+	LCO No. 970 2 of 14
	44	+
34	45		recorded and released in the manner provided by the general statutes 15
35	46		for continuing, recording and releasing property tax liens. Each such 16
36		-	lien shall take precedence over all other liens and encumbrances except 17 Substitute Bill No. 128
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	47	+	lien shall take precedence over all other liens and encumbrances except 17
43	48		taxes and may be enforced, in accordance with subdivision (2) of this 18
44	49		subsection, in the same manner as property tax liens. The tax collector 19
45	50		of the municipality may collect such assessments in accordance with any 20
46	51		mandatory provision of the general statutes for the collection of 21
47	52		property taxes and the municipality may recover any such assessment 22
48	53		in a civil action against any person liable therefor. 23
49	54		(2) In the case of one or more liens for any unpaid assessment and 24
50	55		any interest due thereon, as described in subdivision (1) of this 25
51	56		subsection, upon any owner-occupied real estate, no such lien or liens 26
52	57		may be enforced unless the principal for all such liens upon such owner-27
53		-	occupied real estate exceeds ~~four~~ thousand dollars. 28
	58	+	occupied real estate exceeds ten thousand dollars. 28
54	59		(c) [Any] (1) Except as provided in subdivision (2) of this subsection, 29
55	60		any municipality, by resolution of its legislative body, may assign, for 30
56	61		consideration, any and all liens filed by the tax collector to secure unpaid 31
57	62		sewer assessments as provided under the provisions of this chapter. The 32
58	63		consideration received by the municipality shall be negotiated between 33
59	64		the municipality and the assignee. 34
60	65		(2) In the case of one or more liens filed by the tax collector to secure 35
61	66		unpaid assessments, as described in subdivision (1) of this subsection, 36
62	67		upon any owner-occupied real estate, no such lien or liens may be 37
63	68		assigned unless the principal for all such liens upon such owner-38
64		-	occupied real estate exceeds ~~four~~ thousand dollars. 39
	69	+	occupied real estate exceeds ten thousand dollars. 39
65	70		(d) The assignee or assignees of such liens shall have and possess the 40
66	71		same powers and rights at law or in equity as such municipality and 41
67	72		municipality's tax collector would have had if the lien had not been 42
68	73		assigned with regard to the precedence and priority of such lien, the 43
69	74		accrual of interest and the fees and expenses of collection, except that 44
70	75		any such assignee (1) shall not be insulated from liability by virtue of 45
71		-	the provisions of section 42-110c, and (2) shall be obligated to provide a 46
	76	+	the provisions of section 42-110c, and (2) shall be obligated to provide a 46 Raised Bill No. 128
	77	+
	78	+
	79	+
	80	+	LCO No. 970 3 of 14
	81	+
72	82		payoff statement, as defined in section 49-8a, in the same manner as a 47
73	83		mortgagee in accordance with the requirements of section 49-10a. The 48
74		-	assignee shall have the same rights to enforce such liens as any private 49 Substitute Bill No. 128
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	84	+	assignee shall have the same rights to enforce such liens as any private 49
81	85		party holding a lien on real property, including, but not limited to, 50
82	86		foreclosure and a suit on the debt. 51
83	87		(e) No such assignment executed on or after July 1, 2022, shall be valid 52
84	88		or enforceable unless memorialized in a contract executed by the 53
85	89		authority and the assignee that is in writing and provides: (1) The 54
86	90		manner in which the assignee will provide to the owner of the real 55
87	91		property that is the subject of the assignment one or more addresses and 56
88	92		telephone numbers that may be used for correspondence with the 57
89	93		assignee about the debt and payment thereof; (2) the earliest and latest 58
90	94		dates by which the assignee shall commence any foreclosure or suit on 59
91	95		the debt or the manner for determining such dates, except as may be 60
92	96		impacted by any payment arrangement, bankruptcy petition or other 61
93	97		circumstance, provided in no event shall the assignee commence a 62
94	98		foreclosure suit before one year has elapsed since the assignee's 63
95	99		purchase of the lien; (3) the structure and rates of attorney's fees that the 64
96	100		assignee may claim against the owner or owners of such real property 65
97	101		in any foreclosure, suit on the debt or otherwise, and a prohibition from 66
98	102		using as foreclosure counsel any attorney or law office that is owned by, 67
99	103		employs or contracts with any person having an interest in such 68
100	104		assignee; (4) confirmation that the owner of the real property for which 69
101	105		the lien has been filed shall be a third-party beneficiary entitled to 70
102	106		enforce the covenants and responsibilities of the assignee as contained 71
103	107		in the contract; (5) a prohibition on the assignee assigning the lien 72
104	108		without the municipality's prior written consent; (6) the detail and 73
105	109		frequency of reports provided to the municipality's tax collector 74
106	110		regarding the status of the assigned liens; (7) confirmation that the 75
107	111		assignee is not ineligible, pursuant to section 31-57b, to be assigned the 76
108	112		lien because of occupational safety and health law violations; (8) 77
109	113		disclosure of (A) all resolved and pending arbitrations and litigation 78
110	114		matters in which the assignee or any of its principals have been involved 79
111		-	within the last ten years, except foreclosure actions involving liens 80
	115	+	within the last ten years, except foreclosure actions involving liens 80 Raised Bill No. 128
	116	+
	117	+
	118	+
	119	+	LCO No. 970 4 of 14
	120	+
112	121		purchased from or assigned by governmental entities, (B) all criminal 81
113	122		proceedings that the assignee or any of its principals has ever been the 82
114		-	subject, (C) any interest in the subject property held by the assignee or 83 Substitute Bill No. 128
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	123	+	subject, (C) any interest in the subject property held by the assignee or 83
121	124		any of its principals, officers or agents, and (D) each instance in which 84
122	125		the assignee or any of its principals was found to have violated any state 85
123	126		or local ethics law, regulation, ordinance, code, policy or standard, or to 86
124	127		have committed any other offense arising out of the submission of 87
125	128		proposals or bids or the performance of work on public contract; and (9) 88
126	129		such additional terms to which the municipality and the assignee 89
127	130		mutually agree, consistent with applicable law. 90
128	131		(f) The assignee, or any subsequent assignee, shall provide written 91
129	132		notice of an assignment, not later than sixty days after the date of such 92
130	133		assignment, to the owner and any holder of a mortgage on the real 93
131	134		property that is the subject of the assignment, provided such owner or 94
132	135		holder is of record as of the date of such assignment. Such notice shall 95
133	136		include information sufficient to identify (1) the property that is subject 96
134	137		to the lien and in which the holder has an interest, (2) the name and 97
135	138		addresses of the assignee, and (3) the amount of unpaid taxes, interest 98
136	139		and fees being assigned relative to the subject property as of the date of 99
137	140		the assignment. 100
138	141		(g) Not less than sixty days prior to commencing an action to 101
139	142		foreclose a lien under this section, the assignee shall provide a written 102
140	143		notice, by first-class mail, to the holders of all first or second security 103
141	144		interests on the property subject to the lien that were recorded before 104
142	145		the date the assessment of the lien sought to be enforced became 105
143	146		delinquent. Such notice shall set forth: (1) The amount of unpaid debt 106
144	147		owed to the assignee as of the date of the notice; (2) the amount of any 107
145	148		attorney's fees and costs incurred by the assignee in the enforcement of 108
146	149		the lien as of the date of the notice; (3) a statement of the assignee's 109
147	150		intention to foreclose the lien if the amounts set forth pursuant to 110
148	151		subdivisions (1) and (2) of this subsection are not paid to the assignee 111
149	152		on or before sixty days after the date on which the notice is provided; 112
150	153		(4) the assignee's contact information, including, but not limited to, the 113
151		-	assignee's name, mailing address, telephone number and electronic mail 114
152		-	address, if any; and (5) instructions concerning the acceptable means of 115
153		-	making a payment on the amounts owed to the assignee as set forth 116 Substitute Bill No. 128
	154	+	assignee's name, mailing address, telephone number and electronic mail 114 Raised Bill No. 128
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	158	+	LCO No. 970 5 of 14
	159	+
	160	+	address, if any; and (5) instructions concerning the acceptable means of 115
	161	+	making a payment on the amounts owed to the assignee as set forth 116
160	162		pursuant to subdivisions (1) and (2) of this subsection. Any notice 117
161	163		required under this subsection shall be effective upon the date such 118
162	164		notice is provided. 119
163	165		(h) When providing the written notice required under subsection (g) 120
164	166		of this section, the assignee may rely on the last recorded security 121
165	167		interest of record in identifying the name and mailing address of the 122
166	168		holder of such interest, unless the holder of such interest is the plaintiff 123
167	169		in an action pending in Superior Court to enforce such interest, in which 124
168	170		case the assignee shall provide the written notice to the attorney 125
169	171		appearing on behalf of the plaintiff. 126
170	172		(i) Each aspect of a foreclosure, sale or other disposition under this 127
171	173		section, including, but not limited to, the costs, attorney fees, method, 128
172	174		advertising, time, date, place and terms, shall be commercially 129
173	175		reasonable. 130
174	176		Sec. 2. Section 7-258 of the 2022 supplement to the general statutes is 131
175	177		repealed and the following is substituted in lieu thereof (Effective October 132
176	178		1, 2022, and applicable to actions filed on or after October 1, 2022): 133
177	179		(a) (1) Any charge for connection with or for the use of a sewerage 134
178	180		system, not paid within thirty days of the due date, shall thereupon be 135
179	181		delinquent and shall bear interest from the due date at the rate and in 136
180	182		the manner provided by the general statutes for delinquent property 137
181	183		taxes. Each addition of interest shall be collectible as a part of such 138
182	184		connection or use charge. Any such unpaid connection or use charge 139
183	185		shall constitute a lien upon the real estate against which such charge was 140
184	186		levied from the date it became delinquent. Each such lien may be 141
185	187		continued, recorded and released in the manner provided by the general 142
186	188		statutes for continuing, recording and releasing property tax liens. Each 143
187	189		such lien shall take precedence over all other liens and encumbrances 144
188	190		except taxes and may be foreclosed in the same manner as a lien for 145
189		-	property taxes in accordance with subdivision (2) of this subsection. The 146
190		-	municipality may by ordinance designate the tax collector or any other 147
191		-	person as collector of sewerage system connection and use charges and 148 Substitute Bill No. 128
	191	+	property taxes in accordance with subdivision (2) of this subsection. The 146 Raised Bill No. 128
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	195	+	LCO No. 970 6 of 14
	196	+
	197	+	municipality may by ordinance designate the tax collector or any other 147
	198	+	person as collector of sewerage system connection and use charges and 148
198	199		such collector of sewerage system connection and use charges may 149
199	200		collect such charges in accordance with the provisions of the general 150
200	201		statutes for the collection of property taxes. The municipality may 151
201	202		recover any such charges in a civil action against any person liable 152
202	203		therefor. For the purpose of establishing or revising such connection or 153
203	204		use charges and for the purpose of collecting such charges any 154
204	205		municipality may enter into agreements with any water company or 155
205	206		municipal water department furnishing water in such municipality for 156
206	207		the purchase from such water company or municipal water department 157
207	208		of information or services and such agreement may designate such 158
208	209		water company or municipal water department as a billing or collecting 159
209	210		agent of the collector of sewerage system connection and use charges in 160
210	211		the municipality. Any water company or municipal water department 161
211	212		may enter into and fulfill any such agreements and may utilize for the 162
212	213		collection of such charges any of the methods utilized by it for the 163
213	214		collection of its water charges. 164
214	215		(2) In the case of one or more liens for any unpaid connection or use 165
215	216		charge, as described in subdivision (1) of this subsection, upon any 166
216	217		owner-occupied real estate, no such lien or liens may be foreclosed 167
217	218		unless the principal for all such liens upon such owner-occupied real 168
218		-	estate exceeds ~~four~~ thousand dollars. 169
	219	+	estate exceeds ten thousand dollars. 169
219	220		(b) [Any] (1) Except as provided in subdivision (2) of this subsection, 170
220	221		any municipality, by resolution of its legislative body, may assign, for 171
221	222		consideration, any and all liens filed by the tax collector or collector of 172
222	223		sewerage system connection and use charges to secure unpaid sewerage 173
223	224		connection and use charges as provided under the provisions of this 174
224	225		chapter. The consideration received by the municipality shall be 175
225	226		negotiated between the municipality and the assignee. 176
226	227		(2) In the case of one or more liens filed by the tax collector or collector 177
227	228		of sewerage system connection and use charges to secure unpaid 178
228		-	sewerage connection and use charges, as described in subdivision (1) of 179
229		-	this subsection, upon any owner-occupied real estate, no such lien or 180
230		-	liens may be assigned unless the principal for all such liens upon such 181 Substitute Bill No. 128
	229	+	sewerage connection and use charges, as described in subdivision (1) of 179 Raised Bill No. 128
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237		-	owner-occupied real estate exceeds four thousand dollars. 182
	233	+	LCO No. 970 7 of 14
	234	+
	235	+	this subsection, upon any owner-occupied real estate, no such lien or 180
	236	+	liens may be assigned unless the principal for all such liens upon such 181
	237	+	owner-occupied real estate exceeds ten thousand dollars. 182
238	238		(c) The assignee or assignees of such liens shall have and possess the 183
239	239		same powers and rights at law or in equity as such municipality and 184
240	240		municipality's tax collector would have had if the lien had not been 185
241	241		assigned with regard to the precedence and priority of such lien, the 186
242	242		accrual of interest and the fees and expenses of collection, except that 187
243	243		any such assignee (1) shall not be insulated from liability for its conduct 188
244	244		by virtue of the provisions of section 42-110c, and (2) shall be obligated 189
245	245		to provide a payoff statement, as defined in section 49-8a, in the same 190
246	246		manner as a mortgagee in accordance with the requirements of section 191
247	247		49-10a. The assignee shall have the same rights to enforce such liens as 192
248	248		any private party holding a lien on real property, including, but not 193
249	249		limited to, foreclosure and a suit on the debt. 194
250	250		(d) No such assignment executed on or after July 1, 2022, shall be 195
251	251		valid or enforceable unless memorialized in a contract executed by the 196
252	252		authority and the assignee that is in writing and provides: (1) The 197
253	253		manner in which the assignee will provide to the owner of the real 198
254	254		property that is the subject of the assignment one or more addresses and 199
255	255		telephone numbers that may be used for correspondence with the 200
256	256		assignee about the debt and payment thereof; (2) the earliest and latest 201
257	257		dates by which the assignee shall commence any foreclosure or suit on 202
258	258		the debt or the manner for determining such dates, except as may be 203
259	259		impacted by any payment arrangement, bankruptcy petition or other 204
260	260		circumstance, provided in no event shall the assignee commence a 205
261	261		foreclosure suit before one year has elapsed since the assignee's 206
262	262		purchase of the lien; (3) the structure and rates of attorney's fees that the 207
263	263		assignee may claim against the owner or owners of such real property 208
264	264		in any foreclosure, suit on the debt or otherwise, and a prohibition from 209
265	265		using as foreclosure counsel any attorney or law office that is owned by, 210
266	266		employs or contracts with any person having an interest in such 211
267	267		assignee; (4) confirmation that the owner of the real property for which 212
268		-	the lien has been filed shall be a third-party beneficiary entitled to 213
269		-	enforce the covenants and responsibilities of the assignee as contained 214 Substitute Bill No. 128
	268	+	the lien has been filed shall be a third-party beneficiary entitled to 213 Raised Bill No. 128
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	272	+	LCO No. 970 8 of 14
	273	+
	274	+	enforce the covenants and responsibilities of the assignee as contained 214
276	275		in the contract; (5) a prohibition on the assignee assigning the lien 215
277	276		without the municipality's prior written consent; (6) the detail and 216
278	277		frequency of reports provided to the municipality's tax collector 217
279	278		regarding the status of the assigned liens; (7) confirmation that the 218
280	279		assignee is not ineligible, pursuant to section 31-57b, to be assigned the 219
281	280		lien because of occupational safety and health law violations; (8) 220
282	281		disclosure of (A) all resolved and pending arbitrations and litigation 221
283	282		matters in which the assignee or any of its principals have been involved 222
284	283		within the last ten years, except foreclosure actions involving liens 223
285	284		purchased from or assigned by governmental entities, (B) all criminal 224
286	285		proceedings that the assignee or any of its principals has ever been the 225
287	286		subject, (C) any interest in the subject property held by the assignee or 226
288	287		any of its principals, officers or agents, and (D) each instance in which 227
289	288		the assignee or any of its principals was found to have violated any state 228
290	289		or local ethics law, regulation, ordinance, code, policy or standard, or to 229
291	290		have committed any other offense arising out of the submission of 230
292	291		proposals or bids or the performance of work on public contract; and (9) 231
293	292		such additional terms to which the municipality and the assignee 232
294	293		mutually agree consistent with applicable law. 233
295	294		(e) The assignee, or any subsequent assignee, shall provide written 234
296	295		notice of an assignment, not later than sixty days after the date of such 235
297	296		assignment, to the owner and any holder of a mortgage on the real 236
298	297		property that is the subject of the assignment, provided such owner or 237
299	298		holder is of record as of the date of such assignment. Such notice shall 238
300	299		include information sufficient to identify (1) the property that is subject 239
301	300		to the lien and in which the holder has an interest, (2) the name and 240
302	301		addresses of the assignee, and (3) the amount of unpaid taxes, interest 241
303	302		and fees being assigned relative to the subject property as of the date of 242
304	303		the assignment. 243
305	304		(f) Not less than sixty days prior to commencing an action to foreclose 244
306	305		a lien under this section, the assignee shall provide a written notice, by 245
307	306		first-class mail, to the holders of all first or second security interests on 246
308		-	the property subject to the lien that were recorded before the date the 247 ~~Substitute~~ Bill No. 128
	307	+	the property subject to the lien that were recorded before the date the 247 Raised Bill No. 128
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315	313		assessment of the lien sought to be enforced became delinquent. Such 248
316	314		notice shall set forth: (1) The amount of unpaid debt owed to the 249
317	315		assignee as of the date of the notice; (2) the amount of any attorney's fees 250
318	316		and costs incurred by the assignee in the enforcement of the lien as of 251
319	317		the date of the notice; (3) a statement of the assignee's intention to 252
320	318		foreclose the lien if the amounts set forth pursuant to subdivisions (1) 253
321	319		and (2) of this subsection are not paid to the assignee on or before sixty 254
322	320		days after the date the notice is provided; (4) the assignee's contact 255
323	321		information, including, but not limited to, the assignee's name, mailing 256
324	322		address, telephone number and electronic mail address, if any; and (5) 257
325	323		instructions concerning the acceptable means of making a payment on 258
326	324		the amounts owed to the assignee as set forth pursuant to subdivisions 259
327	325		(1) and (2) of this subsection. Any notice required under this subsection 260
328	326		shall be effective upon the date such notice is provided. 261
329	327		(g) When providing the written notice required under subsection (f) 262
330	328		of this section, the assignee may rely on the last recorded security 263
331	329		interest of record in identifying the name and mailing address of the 264
332	330		holder of such interest, unless the holder of such interest is the plaintiff 265
333	331		in an action pending in Superior Court to enforce such interest, in which 266
334	332		case the assignee shall provide the written notice to the attorney 267
335	333		appearing on behalf of the plaintiff. 268
336	334		(h) Each aspect of a foreclosure, sale or other disposition under this 269
337	335		section, including, but not limited to, the costs, attorney fees, method, 270
338	336		advertising, time, date, place and terms, shall be commercially 271
339	337		reasonable. 272
340	338		Sec. 3. Section 22a-506 of the general statutes is repealed and the 273
341	339		following is substituted in lieu thereof (Effective October 1, 2022, and 274
342	340		applicable to actions filed on or after October 1, 2022): 275
343	341		(a) An authority may (1) levy and collect benefit assessments upon 276
344	342		the lands and buildings within its jurisdiction that, in its judgment, are 277
345	343		especially benefited by a wastewater system; (2) establish, revise and 278
346		-	collect rates, fees, charges, penalties and assessments for the use and 279 ~~Substitute~~ Bill No. 128
	344	+	collect rates, fees, charges, penalties and assessments for the use and 279 Raised Bill No. 128
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353	350		benefits of a wastewater system; and (3) order the owner of any building 280
354	351		which is accessible to a wastewater system to connect to such system, all 281
355	352		in the manner provided in sections 7-249 to 7-257, inclusive, and sections 282
356	353		22a-416 to 22a-599, inclusive. 283
357	354		(b) (1) Any assessment of benefits, including any installment thereof, 284
358	355		and any charge, fee, fine or other amount that is not paid within thirty 285
359	356		days after the due date shall be delinquent, shall be subject to interest 286
360	357		and shall constitute a lien upon the premises served and a charge upon 287
361	358		the owner thereof all in the manner provided both by the provisions of 288
362	359		the general statutes for delinquent property taxes and by section 7-258, 289
363	360		as amended by this act. The rules and regulations of the authority may 290
364	361		provide for the discontinuance of water pollution control service for 291
365	362		nonpayment of taxes, special assessments, fees, rates, penalties or other 292
366	363		charges therefor imposed under sections 22a-500 to 22a-519, inclusive. 293
367	364		Such lien shall take precedence over all other liens or encumbrances 294
368	365		except taxes and may be foreclosed against the lot or building served, in 295
369	366		accordance with subdivision (2) of this subsection, in the same manner 296
370	367		as a lien for taxes, provided all such liens shall continue until such time 297
371	368		as they shall be discharged or foreclosed by the authority without the 298
372	369		necessity of filing certificates of continuation, but in no event for longer 299
373	370		than ten years. The authority may institute a civil action against such 300
374	371		owner to recover the amount of any such fee or charge which remains 301
375	372		due and unpaid for thirty days along with interest thereon at the same 302
376	373		rate as unpaid taxes and with reasonable attorneys' fees, provided no 303
377	374		such civil action to recover such amount may be instituted against the 304
378	375		owner of an owner-occupied premises unless the principal for such 305
379		-	amount exceeds ~~four~~ thousand dollars. 306
	376	+	amount exceeds ten thousand dollars. 306
380	377		(2) In the case of one or more liens for any assessment of benefits and 307
381	378		any charge, fee, fine or other amount that is not paid within thirty days 308
382	379		after the due date, as described in subdivision (1) of this subsection, 309
383	380		upon any owner-occupied premises served, no such lien or liens may be 310
384	381		foreclosed unless the principal for all such liens upon such owner-311
385		-	occupied premises served exceeds ~~four~~ thousand dollars. 312 ~~Substitute~~ Bill No. 128
	382	+	occupied premises served exceeds ten thousand dollars. 312 Raised Bill No. 128
386	383
387	384
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391	387
392	388		Sec. 4. Section 49-92o of the 2022 supplement to the general statutes 313
393	389		is repealed and the following is substituted in lieu thereof (Effective 314
394	390		October 1, 2022, and applicable to actions filed on or after October 1, 2022): 315
395	391		(a) [Any] (1) Except as provided in subdivision (2) of this subsection, 316
396	392		any regional sewer authority established under an act of the General 317
397	393		Assembly, may assign, for consideration, any and all liens filed by such 318
398	394		regional sewer authority to secure unpaid sewer assessments or 319
399	395		connection or use charges of the authority. The consideration received 320
400	396		by the authority shall be negotiated between the authority and the 321
401	397		assignee. 322
402	398		(2) In the case of one or more liens filed by a regional sewer authority 323
403	399		to secure unpaid sewer assessment or connection or use charges of the 324
404	400		authority, as described in subdivision (1) of this subsection, upon any 325
405	401		owner-occupied real estate, no such lien or liens may be assigned unless 326
406	402		the principal for all such liens upon such owner-occupied real estate 327
407		-	exceeds ~~four~~ thousand dollars. 328
	403	+	exceeds ten thousand dollars. 328
408	404		(b) The assignee or assignees of such liens shall have and possess the 329
409	405		same powers and rights at law or in equity as such authority would have 330
410	406		had if the lien had not been assigned with regard to the precedence and 331
411	407		priority of such lien, the accrual of interest and the fees and expenses of 332
412	408		collection, except that any such assignee (1) shall not be insulated from 333
413	409		liability by section 42-110c, and (2) shall be obligated to provide a payoff 334
414	410		statement, as defined in section 49-8a, in the same manner as a 335
415	411		mortgagee in accordance with the requirements of section 49-10a. The 336
416	412		assignee shall have the same rights to enforce such liens as any private 337
417	413		party holding a lien on real property, including, but not limited to, 338
418	414		foreclosure and a suit on the debt. 339
419	415		(c) No such assignment executed on or after July 1, 2022, shall be valid 340
420	416		or enforceable unless memorialized in a contract executed by the 341
421	417		authority and the assignee that is in writing and provides: (1) The 342
422	418		manner in which the assignee will provide to the owner of the real 343
423		-	property that is the subject of the assignment one or more addresses and 344 ~~Substitute~~ Bill No. 128
	419	+	property that is the subject of the assignment one or more addresses and 344 Raised Bill No. 128
424	420
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429	424
430	425		telephone numbers that may be used for correspondence with the 345
431	426		assignee about the debt and payment thereof; (2) the earliest and latest 346
432	427		dates by which the assignee shall commence any foreclosure or suit on 347
433	428		the debt or the manner for determining such dates, except as may be 348
434	429		impacted by any payment arrangement, bankruptcy petition or other 349
435	430		circumstance, provided in no event shall the assignee commence a 350
436	431		foreclosure suit before one year has elapsed since the assignee's 351
437	432		purchase of the lien; (3) the structure and rates of attorney's fees that the 352
438	433		assignee may claim against the owner or owners of such real property 353
439	434		in any foreclosure, suit on the debt or otherwise, and a prohibition from 354
440	435		using as foreclosure counsel any attorney or law office that is owned by, 355
441	436		employs or contracts with any person having an interest in such 356
442	437		assignee; (4) confirmation that the owner of the real property for which 357
443	438		the lien has been filed shall be a third-party beneficiary entitled to 358
444	439		enforce the covenants and responsibilities of the assignee as contained 359
445	440		in the contract; (5) a prohibition on the assignee assigning the lien 360
446	441		without the municipality's prior written consent; (6) the detail and 361
447	442		frequency of reports provided to the municipality's tax collector 362
448	443		regarding the status of the assigned liens; (7) confirmation that the 363
449	444		assignee is not ineligible, pursuant to section 31-57b, to be assigned the 364
450	445		lien because of occupational safety and health law violations; (8) 365
451	446		disclosure of (A) all resolved and pending arbitrations and litigation 366
452	447		matters in which the assignee or any of its principals have been involved 367
453	448		within the last ten years, except foreclosure actions involving liens 368
454	449		purchased from or assigned by governmental entities, (B) all criminal 369
455	450		proceedings that the assignee or any of its principals has ever been the 370
456	451		subject, (C) any interest in the subject property held by the assignee or 371
457	452		any of its principals, officers or agents, and (D) each instance in which 372
458	453		the assignee or any of its principals was found to have violated any state 373
459	454		or local ethics law, regulation, ordinance, code, policy or standard, or to 374
460	455		have committed any other offense arising out of the submission of 375
461	456		proposals or bids or the performance of work on public contract; and (9) 376
462	457		such additional terms to which the municipality and the assignee 377
463		-	mutually agree consistent with applicable law. 378 ~~Substitute~~ Bill No. 128
	458	+	mutually agree consistent with applicable law. 378 Raised Bill No. 128
464	459
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469	463
470	464		(d) The assignee, or any subsequent assignee, shall provide written 379
471	465		notice of an assignment, not later than sixty days after the date of such 380
472	466		assignment, to the owner and any holder of a mortgage on the real 381
473	467		property that is the subject of the assignment, provided such owner or 382
474	468		holder is of record as of the date of such assignment. Such notice shall 383
475	469		include information sufficient to identify (1) the property that is subject 384
476	470		to the lien and in which the holder has an interest, (2) the name and 385
477	471		addresses of the assignee, and (3) the amount of unpaid taxes, interest 386
478	472		and fees being assigned relative to the subject property as of the date of 387
479	473		the assignment. 388
480	474		(e) Not less than sixty days prior to commencing an action to foreclose 389
481	475		a lien assigned under this section, the assignee shall provide a written 390
482	476		notice, by first-class mail to the holders of all first or second security 391
483	477		interests on the property subject to the lien that were recorded before 392
484	478		the date the assessment of such lien became delinquent. Such notice 393
485	479		shall set forth: (1) The amount of unpaid debt owed to the assignee as of 394
486	480		the date of the notice; (2) the amount of any attorney's fees and costs 395
487	481		incurred by the assignee in the enforcement of the lien as of the date of 396
488	482		the notice; (3) a statement of the assignee's intention to foreclose the lien 397
489	483		if the amounts set forth pursuant to subdivisions (1) and (2) of this 398
490	484		subsection are not paid to the assignee on or before sixty days after the 399
491	485		date the notice is provided; (4) the assignee's contact information, 400
492	486		including, but not limited to, the assignee's name, mailing address, 401
493	487		telephone number and electronic mail address, if any; and (5) 402
494	488		instructions concerning the acceptable means of making a payment on 403
495	489		the amounts owed to the assignee as set forth pursuant to subdivisions 404
496	490		(1) and (2) of this subsection. Any notice required under this subsection 405
497	491		shall be effective upon the date such notice is provided. 406
498	492		(f) When providing the written notice required under subsection (e) 407
499	493		of this section, the assignee may rely on the last recorded security 408
500	494		interest of record in identifying the name and mailing address of the 409
501	495		holder of such interest, unless the holder of such interest is the plaintiff 410
502		-	in an action pending in Superior Court to enforce such interest, in which 411 Substitute Bill No. 128
	496	+	in an action pending in Superior Court to enforce such interest, in which 411
	497	+	case the assignee shall provide the written notice to the attorney 412 Raised Bill No. 128
503	498
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508	500
509		-	case the assignee shall provide the written notice to the attorney 412
	501	+	LCO No. 970 14 of 14
	502	+
510	503		appearing on behalf of the plaintiff. 413
511	504		(g) Each aspect of a foreclosure, sale or other disposition under this 414
512	505		section, including, but not limited to, the costs, attorney fees, method, 415
513	506		advertising, time, date, place and terms, shall be commercially 416
514	507		reasonable. Costs and reasonable attorneys' fees incurred by the 417
515	508		assignee as a result of any foreclosure action or other legal proceeding 418
516	509		brought pursuant to this section and directly related to the proceeding 419
517	510		shall be taxed in any such proceeding against each person having title 420
518	511		to any property subject to the proceedings. Such costs and fees may be 421
519	512		collected by the assignee at any time after demand for payment has been 422
520	513		made by the assignee. 423
521	514		This act shall take effect as follows and shall amend the following
522	515		sections:
523	516
524	517		Section 1 October 1, 2022, and
525	518		applicable to actions filed
526	519		on or after October 1, 2022
527	520		7-254
528	521		Sec. 2 October 1, 2022, and
529	522		applicable to actions filed
530	523		on or after October 1, 2022
531	524		7-258
532	525		Sec. 3 October 1, 2022, and
533	526		applicable to actions filed
534	527		on or after October 1, 2022
535	528		22a-506
536	529		Sec. 4 October 1, 2022, and
537	530		applicable to actions filed
538	531		on or after October 1, 2022
539	532		49-92o
540	533
541		-	PD Joint Favorable Subst.
	534	+	Statement of Purpose:
	535	+	To prohibit foreclosure, assignment and other enforcement actions for
	536	+	unpaid sewer assessment and other fees and charges in the case of
	537	+	owner-occupied real property for which the principal of such unpaid
	538	+	assessments, fees and charges is less than ten thousand dollars.
	539	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	540	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	541	+	underlined.]
542	542