LCO No. 52 1 of 6 General Assembly Raised Bill No. 149 February Session, 2024 LCO No. 52 Referred to Committee on PLANNING AND DEVELOPMENT Introduced by: (PD) AN ACT CONCERNING FORECLOSURE, ASSIGNMENT AND OTHER ENFORCEMENT ACTIONS FOR UNPAID SEWER ASSESSMENTS AND OTHER FEES AND CHARGES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsections (a) to (c), inclusive, of section 7-254 of the 1 general statutes are repealed and the following is substituted in lieu 2 thereof (Effective October 1, 2024, and applicable to actions filed on or after 3 October 1, 2024): 4 (a) Any assessment of benefits or any installment thereof, not paid 5 within thirty days after the due date, shall be delinquent and shall be 6 subject to interest from such due date at the interest rate and in the 7 manner provided by the general statutes for delinquent property taxes. 8 Each addition of interest shall be collectible as a part of such assessment. 9 (b) (1) Whenever any installment of an assessment becomes 10 delinquent, the interest on such delinquent installment shall be as 11 provided in subsection (a) of this section or five dollars, whichever is 12 greater. Any unpaid assessment and any interest due thereon shall 13 constitute a lien upon the real estate against which the assessment was 14 Raised Bill No. 149 LCO No. 52 2 of 6 levied from the date of such levy. Each such lien may be continued, 15 recorded and released in the manner provided by the general statutes 16 for continuing, recording and releasing property tax liens. Each such 17 lien shall take precedence over all other liens and encumbrances except 18 taxes and may be enforced, in accordance with subdivision (2) of this 19 subsection, in the same manner as property tax liens. The tax collector 20 of the municipality may collect such assessments in accordance with any 21 mandatory provision of the general statutes for the collection of 22 property taxes and the municipality may recover any such assessment 23 in a civil action against any person liable therefor. 24 (2) In the case of one or more liens for any unpaid assessment and 25 any interest due thereon, as described in subdivision (1) of this 26 subsection, upon any owner-occupied real estate, no such lien or liens 27 may be enforced unless the principal for all such liens upon such owner-28 occupied real estate exceeds four thousand dollars. 29 (c) [Any] (1) Except as provided in subdivision (2) of this subsection, 30 any municipality, by resolution of its legislative body, may assign, for 31 consideration, any and all liens filed by the tax collector to secure unpaid 32 sewer assessments as provided under the provisions of this chapter. The 33 consideration received by the municipality shall be negotiated between 34 the municipality and the assignee. 35 (2) In the case of one or more liens filed by the tax collector to secure 36 unpaid assessments, as described in subdivision (1) of this subsection, 37 upon any owner-occupied real estate, no such lien or liens may be 38 assigned unless the principal for all such liens upon such owner-39 occupied real estate exceeds four thousand dollars. 40 Sec. 2. Subsections (a) and (b) of section 7-258 of the general statutes 41 are repealed and the following is substituted in lieu thereof (Effective 42 October 1, 2024, and applicable to actions filed on or after October 1, 2024): 43 (a) (1) Any charge for connection with or for the use of a sewerage 44 system, not paid within thirty days of the due date, shall thereupon be 45 delinquent and shall bear interest from the due date at the rate and in 46 Raised Bill No. 149 LCO No. 52 3 of 6 the manner provided by the general statutes for delinquent property 47 taxes. Each addition of interest shall be collectible as a part of such 48 connection or use charge. Any such unpaid connection or use charge 49 shall constitute a lien upon the real estate against which such charge was 50 levied from the date it became delinquent. Each such lien may be 51 continued, recorded and released in the manner provided by the general 52 statutes for continuing, recording and releasing property tax liens. Each 53 such lien shall take precedence over all other liens and encumbrances 54 except taxes and may be foreclosed in the same manner as a lien for 55 property taxes in accordance with subdivision (2) of this subsection. The 56 municipality may by ordinance designate the tax collector or any other 57 person as collector of sewerage system connection and use charges and 58 such collector of sewerage system connection and use charges may 59 collect such charges in accordance with the provisions of the general 60 statutes for the collection of property taxes. The municipality may 61 recover any such charges in a civil action against any person liable 62 therefor. For the purpose of establishing or revising such connection or 63 use charges and for the purpose of collecting such charges any 64 municipality may enter into agreements with any water company or 65 municipal water department furnishing water in such municipality for 66 the purchase from such water company or municipal water department 67 of information or services and such agreement may designate such 68 water company or municipal water department as a billing or collecting 69 agent of the collector of sewerage system connection and use charges in 70 the municipality. Any water company or municipal water department 71 may enter into and fulfill any such agreements and may utilize for the 72 collection of such charges any of the methods utilized by it for the 73 collection of its water charges. 74 (2) In the case of one or more liens for any unpaid connection or use 75 charge, as described in subdivision (1) of this subsection, upon any 76 owner-occupied real estate, no such lien or liens may be foreclosed 77 unless the principal for all such liens upon such owner-occupied real 78 estate exceeds four thousand dollars. 79 (b) [Any] (1) Except as provided in subdivision (2) of this subsection, 80 Raised Bill No. 149 LCO No. 52 4 of 6 any municipality, by resolution of its legislative body, may assign, for 81 consideration, any and all liens filed by the tax collector or collector of 82 sewerage system connection and use charges to secure unpaid sewerage 83 connection and use charges as provided under the provisions of this 84 chapter. The consideration received by the municipality shall be 85 negotiated between the municipality and the assignee. 86 (2) In the case of one or more liens filed by the tax collector or collector 87 of sewerage system connection and use charges to secure unpaid 88 sewerage connection and use charges, as described in subdivision (1) of 89 this subsection, upon any owner-occupied real estate, no such lien or 90 liens may be assigned unless the principal for all such liens upon such 91 owner-occupied real estate exceeds four thousand dollars. 92 Sec. 3. Section 22a-506 of the general statutes is repealed and the 93 following is substituted in lieu thereof (Effective October 1, 2024, and 94 applicable to actions filed on or after October 1, 2024): 95 (a) An authority may (1) levy and collect benefit assessments upon 96 the lands and buildings within its jurisdiction that, in its judgment, are 97 especially benefited by a wastewater system; (2) establish, revise and 98 collect rates, fees, charges, penalties and assessments for the use and 99 benefits of a wastewater system; and (3) order the owner of any building 100 which is accessible to a wastewater system to connect to such system, all 101 in the manner provided in sections 7-249 to 7-257, inclusive, and sections 102 22a-416 to 22a-599, inclusive. 103 (b) (1) Any assessment of benefits, including any installment thereof, 104 and any charge, fee, fine or other amount that is not paid within thirty 105 days after the due date shall be delinquent, shall be subject to interest 106 and shall constitute a lien upon the premises served and a charge upon 107 the owner thereof all in the manner provided both by the provisions of 108 the general statutes for delinquent property taxes and by section 7-258, 109 as amended by this act. The rules and regulations of the authority may 110 provide for the discontinuance of water pollution control service for 111 nonpayment of taxes, special assessments, fees, rates, penalties or other 112 Raised Bill No. 149 LCO No. 52 5 of 6 charges therefor imposed under sections 22a-500 to 22a-519, inclusive. 113 Such lien shall take precedence over all other liens or encumbrances 114 except taxes and may be foreclosed against the lot or building served, in 115 accordance with subdivision (2) of this subsection, in the same manner 116 as a lien for taxes, provided all such liens shall continue until such time 117 as they shall be discharged or foreclosed by the authority without the 118 necessity of filing certificates of continuation, but in no event for longer 119 than ten years. The authority may institute a civil action against such 120 owner to recover the amount of any such fee or charge which remains 121 due and unpaid for thirty days along with interest thereon at the same 122 rate as unpaid taxes and with reasonable attorneys' fees, provided no 123 such civil action to recover such amount may be instituted against the 124 owner of an owner-occupied premises unless the principal for such 125 amount exceeds four thousand dollars. 126 (2) In the case of one or more liens for any assessment of benefits and 127 any charge, fee, fine or other amount that is not paid within thirty days 128 after the due date, as described in subdivision (1) of this subsection, 129 upon any owner-occupied premises served, no such lien or liens may be 130 foreclosed unless the principal for all such liens upon such owner-131 occupied premises served exceeds four thousand dollars. 132 Sec. 4. Subsection (a) of section 49-92o of the general statutes is 133 repealed and the following is substituted in lieu thereof (Effective October 134 1, 2024, and applicable to actions filed on or after October 1, 2024): 135 (a) [Any] (1) Except as provided in subdivision (2) of this subsection, 136 any regional sewer authority established under an act of the General 137 Assembly, may assign, for consideration, any and all liens filed by such 138 regional sewer authority to secure unpaid sewer assessments or 139 connection or use charges of the authority. The consideration received 140 by the authority shall be negotiated between the authority and the 141 assignee. 142 (2) In the case of one or more liens filed by a regional sewer authority 143 to secure unpaid sewer assessment or connection or use charges of the 144 Raised Bill No. 149 LCO No. 52 6 of 6 authority, as described in subdivision (1) of this subsection, upon any 145 owner-occupied real estate, no such lien or liens may be assigned unless 146 the principal for all such liens upon such owner-occupied real estate 147 exceeds four thousand dollars. 148 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2024, and applicable to actions filed on or after October 1, 2024 7-254(a) to (c) Sec. 2 October 1, 2024, and applicable to actions filed on or after October 1, 2024 7-258(a) and (b) Sec. 3 October 1, 2024, and applicable to actions filed on or after October 1, 2024 22a-506 Sec. 4 October 1, 2024, and applicable to actions filed on or after October 1, 2024 49-92o(a) Statement of Purpose: To prohibit foreclosure, assignment and other enforcement actions for unpaid sewer assessment and other fees and charges in the case of owner-occupied real property for which the principal of such unpaid assessments, fees and charges is less than four thousand dollars. [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.]