Connecticut 2025 Regular Session

Connecticut Senate Bill SB01316 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 4
	3	+	LCO No. 4465 1 of 5
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1316
	5	+	General Assembly Raised Bill No. 1316
6	6		January Session, 2025
	7	+	LCO No. 4465
	8	+
	9	+
	10	+	Referred to Committee on PLANNING AND DEVELOPMENT
	11	+
	12	+
	13	+	Introduced by:
	14	+	(PD)
	15	+
7	16
8	17
9	18
10	19		AN ACT REDUCING INTEREST DUE ON CERTAIN DELINQUENT
11	20		MUNICIPAL PROPERTY TAXES.
12	21		Be it enacted by the Senate and House of Representatives in General
13	22		Assembly convened:
14	23
15	24		Section 1. Section 12-195h of the general statutes is repealed and the 1
16	25		following is substituted in lieu thereof (Effective October 1, 2025): 2
17	26		(a) Any municipality, by resolution of its legislative body, as defined 3
18	27		in section 1-1, may assign, for consideration, any and all liens filed by 4
19	28		the tax collector to secure unpaid taxes on real property as provided 5
20	29		under the provisions of this chapter. The consideration received by the 6
21	30		municipality shall be negotiated between the municipality and the 7
22	31		assignee. 8
23	32		(b) The assignee or assignees of such liens shall have and possess the 9
24	33		same powers and rights at law or in equity that such municipality and 10
25	34		municipality's tax collector would have had if the lien had not been 11
26	35		assigned with regard to the precedence and priority of such lien, the 12
27	36		accrual of interest and the fees and expenses of collection and of 13
28	37		preparing and recording the assignment, except that (1) 14
29		-	notwithstanding the provisions of sections 12-145 and 12-146, for 15
30		-	assignments executed on and after July 1, 2026, commencing on the date 16
31		-	of assignment, interest shall accrue on the delinquent portion of the 17
32		-	principal of the assigned tax obligation at the rate of twelve per cent per 18
33		-	annum, and (2) any such assignee [(1)] (A) shall not be insulated from 19 Substitute Bill No. 1316
	38	+	notwithstanding the provisions of section 12-146, for assignments 15
	39	+	Raised Bill No. 1316
34	40
35	41
36		-	LCO 2 of 4
37	42
	43	+	LCO No. 4465 2 of 5
	44	+
	45	+	executed on and after July 1, 2026, commencing on the date of 16
	46	+	assignment, interest shall accrue on the delinquent portion of the 17
	47	+	principal of the assigned tax obligation at the rate of twelve per cent per 18
	48	+	annum, and (2) any such assignee [(1)] (A) shall not be insulated from 19
38	49		liability for its conduct by virtue of the provisions of section 42-110c, and 20
39	50		[(2)] (B) shall be obligated to provide a payoff statement, as defined in 21
40	51		section 49-8a, in the same manner as a mortgagee in accordance with the 22
41	52		requirements of section 49-10a. The assignee shall have the same rights 23
42	53		to enforce such liens as any private party holding a lien on real property 24
43	54		including, but not limited to, foreclosure and a suit on the debt. 25
44	55		(c) No such assignment executed on or after July 1, 2022, shall be valid 26
45	56		or enforceable unless memorialized in a contract executed by the 27
46	57		municipality and the assignee that is in writing and provides: (1) The 28
47	58		manner in which the assignee will provide to the owner of the real 29
48	59		property that is the subject of the assignment one or more addresses and 30
49	60		telephone numbers that may be used for correspondence with the 31
50	61		assignee about the debt and payment thereof; (2) the earliest and latest 32
51	62		dates by which the assignee shall commence any foreclosure or suit on 33
52	63		the debt or the manner for determining such dates, except as may be 34
53	64		impacted by any payment arrangement, bankruptcy petition or other 35
54	65		circumstance, provided in no event shall the assignee commence a 36
55	66		foreclosure suit before one year has elapsed since the assignee's 37
56	67		purchase of the lien; (3) the structure and rates of attorney's fees that the 38
57	68		assignee may claim against the owner or owners of such real property 39
58	69		in any foreclosure, suit on the debt or otherwise, and a prohibition from 40
59	70		using as foreclosure counsel any attorney or law office that is owned by, 41
60	71		employs or contracts with any person having an interest in such 42
61	72		assignee; (4) confirmation that the owner of the real property for which 43
62	73		the lien has been filed shall be a third-party beneficiary entitled to 44
63	74		enforce the covenants and responsibilities of the assignee as contained 45
64	75		in the contract; (5) a prohibition on the assignee assigning the lien 46
65	76		without the municipality's prior written consent; (6) the detail and 47
66	77		frequency of reports provided to the municipality's tax collector 48
	78	+	Raised Bill No. 1316
	79	+
	80	+
	81	+
	82	+	LCO No. 4465 3 of 5
	83	+
67	84		regarding the status of the assigned liens; (7) confirmation that the 49
68	85		assignee is not ineligible, pursuant to section 31-57b, to be assigned the 50
69	86		lien because of occupational safety and health law violations; (8) 51
70	87		disclosure of (A) all resolved and pending arbitrations and litigation 52
71		-	matters in which the assignee or any of its principals have been involved 53 Substitute Bill No. 1316
72		-
73		-
74		-	LCO 3 of 4
75		-
	88	+	matters in which the assignee or any of its principals have been involved 53
76	89		within the last ten years, except foreclosure actions involving liens 54
77	90		purchased from or assigned by governmental entities, (B) all criminal 55
78	91		proceedings that the assignee or any of its principals has ever been the 56
79	92		subject, (C) any interest in the subject property held by the assignee or 57
80	93		any of its principals, officers or agents, and (D) each instance in which 58
81	94		the assignee or any of its principals was found to have violated any state 59
82	95		or local ethics law, regulation, ordinance, code, policy or standard, or to 60
83	96		have committed any other offense arising out of the submission of 61
84	97		proposals or bids or the performance of work on public contract; and (9) 62
85	98		such additional terms to which the municipality and the assignee 63
86	99		mutually agree, consistent with applicable law. 64
87	100		(d) The assignee, or any subsequent assignee, shall provide written 65
88	101		notice of an assignment, not later than sixty days after the date of such 66
89	102		assignment, to the owner and any holder of a mortgage, on the real 67
90	103		property that is the subject of the assignment, provided such owner or 68
91	104		holder is of record as of the date of such assignment. Such notice shall 69
92	105		include information sufficient to identify (1) the property that is subject 70
93	106		to the lien and in which the holder has an interest, (2) the name and 71
94	107		addresses of the assignee, and (3) the amount of unpaid taxes, interest 72
95	108		and fees being assigned relative to the subject property as of the date of 73
96	109		the assignment. 74
97	110		(e) Not less than sixty days prior to commencing an action to foreclose 75
98	111		a lien under this section, the assignee shall provide a written notice, by 76
99	112		first-class mail, to the holders of all first or second security interests on 77
100	113		the property subject to the lien that were recorded before the date the 78
101	114		assessment the lien sought to be enforced became delinquent. Such 79
102	115		notice shall set forth: (1) The amount of unpaid debt owed to the 80
103	116		assignee as of the date of the notice; (2) the amount of any attorney's fees 81
	117	+	Raised Bill No. 1316
	118	+
	119	+
	120	+
	121	+	LCO No. 4465 4 of 5
	122	+
104	123		and costs incurred by the assignee in the enforcement of the lien as of 82
105	124		the date of the notice; (3) a statement of the assignee's intention to 83
106	125		foreclose the lien if the amounts set forth pursuant to subdivisions (1) 84
107	126		and (2) of this subsection are not paid to the assignee on or before sixty 85
108	127		days after the date the notice is provided; (4) the assignee's contact 86
109		-	information, including, but not limited to, the assignee's name, mailing 87 Substitute Bill No. 1316
110		-
111		-
112		-	LCO 4 of 4
113		-
	128	+	information, including, but not limited to, the assignee's name, mailing 87
114	129		address, telephone number and electronic mail address, if any; and (5) 88
115	130		instructions concerning the acceptable means of making a payment on 89
116	131		the amounts owed to the assignee as set forth pursuant to subdivisions 90
117	132		(1) and (2) of this subsection. Any notice required under this subsection 91
118	133		shall be effective upon the date such notice is provided. 92
119	134		(f) When providing the written notice required under subsection (e) 93
120	135		of this section, the assignee may rely on the last recorded security 94
121	136		interest of record in identifying the name and mailing address of the 95
122	137		holder of such interest, unless the holder of such interest is the plaintiff 96
123	138		in an action pending in Superior Court to enforce such interest, in which 97
124	139		case the assignee shall provide the written notice to the attorney 98
125	140		appearing on behalf of the plaintiff. 99
126	141		(g) Each aspect of a foreclosure, sale or other disposition under this 100
127	142		section, including, but not limited to, the costs, attorney fees, method, 101
128	143		advertising, time, date, place and terms, shall be commercially 102
129	144		reasonable. 103
130	145		This act shall take effect as follows and shall amend the following
131	146		sections:
132	147
133	148		Section 1 October 1, 2025 12-195h
134	149
135		-	Statement of Legislative Commissioners:
136		-	In Subsec. (b), a reference to section 12-145 of the general statutes was
137		-	added for consistency.
	150	+	Statement of Purpose:
	151	+	To reduce from eighteen per cent to twelve per cent the interest due on
	152	+	unpaid taxes on real property if a lien placed on such property by a
	153	+	municipal tax collector to secure payment of such lien is assigned to a
	154	+	third party.
138	155
139		-	PD Joint Favorable Subst. -LCO
	156	+	Raised Bill No. 1316
	157	+
	158	+
	159	+
	160	+	LCO No. 4465 5 of 5
	161	+
	162	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	163	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	164	+	underlined.]
140	165