Connecticut 2025 Regular Session

Connecticut Senate Bill SB01339 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 4237 1 of 25
	3	+	LCO No. 4237 1 of 26
4	4
5	5		General Assembly Raised Bill No. 1339
6	6		January Session, 2025
7	7		LCO No. 4237
8	8
9	9
10	10		Referred to Committee on BANKING
11	11
12	12
13	13		Introduced by:
14	14		(BA)
	15	+
15	16
16	17
17	18
18	19		AN ACT CONCERNING THE ASSIGNMENT OF CERTAIN LIENS.
19	20		Be it enacted by the Senate and House of Representatives in General
20	21		Assembly convened:
21	22
22	23		Section 1. Section 12-195h of the general statutes is repealed and the 1
23	24		following is substituted in lieu thereof (Effective October 1, 2025): 2
24	25		(a) Any municipality, by resolution of its legislative body, as defined 3
25	26		in section 1-1, may assign, for consideration, any and all liens filed by 4
26	27		the tax collector to secure unpaid taxes on real property as provided 5
27	28		under the provisions of this chapter. The consideration received by the 6
28	29		municipality shall be negotiated between the municipality and the 7
29	30		assignee. 8
30	31		(b) The assignee or assignees of such liens shall have and possess the 9
31	32		same powers and rights at law or in equity that such municipality and 10
32	33		municipality's tax collector would have had if the lien had not been 11
33	34		assigned with regard to the precedence and priority of such lien, the 12
34	35		accrual of interest and the fees and expenses of collection and of 13
35	36		preparing and recording the assignment, except that: (1) For 14
36		-	assignments executed on or after July 1, 2026, commencing on the date 15 Raised Bill No. 1339
	37	+	assignments executed on or after July 1, 2026, commencing on the date 15
	38	+	Raised Bill No. 1339
37	39
38	40
39		-	LCO 4237 2 of 25
	41	+
	42	+	LCO No. 4237 2 of 26
40	43
41	44		of the assignment, interest shall accrue on the delinquent portion of the 16
42	45		principal of the assigned tax obligation at the rate of twelve per cent per 17
43	46		annum; and (2) any such assignee [(1)] (A) shall not be insulated from 18
44	47		liability for its conduct by virtue of the provisions of section 42-110c, and 19
45	48		[(2)] (B) shall be obligated to provide a payoff statement, as defined in 20
46	49		section 49-8a, in the same manner as a mortgagee in accordance with the 21
47	50		requirements of section 49-10a. The assignee shall have the same rights 22
48	51		to enforce such liens as any private party holding a lien on real property 23
49	52		including, but not limited to, foreclosure and a suit on the debt. 24
50	53		(c) (1) No such assignment executed on or after July 1, 2022, shall be 25
51	54		valid or enforceable unless memorialized in a contract executed by the 26
52	55		municipality and the assignee that is in writing and provides: [(1)] (A) 27
53	56		The manner in which the assignee will provide to the owner of the real 28
54	57		property that is the subject of the assignment one or more addresses and 29
55	58		telephone numbers that may be used for correspondence with the 30
56	59		assignee about the debt and payment thereof; [(2)] (B) the earliest and 31
57	60		latest dates by which the assignee shall commence any foreclosure or 32
58	61		suit on the debt or the manner for determining such dates, except as may 33
59	62		be impacted by any payment arrangement, bankruptcy petition or other 34
60	63		circumstance, provided in no event shall the assignee commence a 35
61	64		foreclosure suit before one year has elapsed since the assignee's 36
62	65		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 37
63	66		that the assignee may claim against the owner or owners of such real 38
64	67		property in any foreclosure, suit on the debt or otherwise, and a 39
65	68		prohibition from using as foreclosure counsel any attorney or law office 40
66	69		that is owned by, employs or contracts with any person having an 41
67	70		interest in such assignee; [(4)] (D) confirmation that the owner of the real 42
68	71		property for which the lien has been filed shall be a third-party 43
69	72		beneficiary entitled to enforce the covenants and responsibilities of the 44
70	73		assignee as contained in the contract; [(5)] (E) a prohibition on the 45
71	74		assignee assigning the lien without the municipality's prior written 46
72	75		consent; [(6)] (F) the detail and frequency of reports provided to the 47
73	76		municipality's tax collector regarding the status of the assigned liens; 48
74		-	~~[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 49~~ Raised Bill No. 1339
	77	+	Raised Bill No. 1339
75	78
76	79
77		-	LCO 4237 3 of 25
78	80
	81	+	LCO No. 4237 3 of 26
	82	+
	83	+	[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 49
79	84		section 31-57b, to be assigned the lien because of occupational safety and 50
80	85		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 51
81	86		pending arbitrations and litigation matters in which the assignee or any 52
82	87		of its principals have been involved within the last ten years, except 53
83	88		foreclosure actions involving liens purchased from or assigned by 54
84	89		governmental entities, [(B)] (ii) all criminal proceedings that the 55
85	90		assignee or any of its principals has ever been the subject, [(C)] (iii) any 56
86	91		interest in the subject property held by the assignee or any of its 57
87	92		principals, officers or agents, and [(D)] (iv) each instance in which the 58
88	93		assignee or any of its principals was found to have violated any state or 59
89	94		local ethics law, regulation, ordinance, code, policy or standard, or to 60
90	95		have committed any other offense arising out of the submission of 61
91	96		proposals or bids or the performance of work on public contract; and 62
92	97		[(9)] (I) such additional terms to which the municipality and the assignee 63
93	98		mutually agree, consistent with applicable law. 64
94	99		(2) No such assignment executed on or after July 1, 2026, shall be valid 65
95	100		or enforceable unless such assignment is memorialized in a written 66
96	101		contract that: (A) Is executed by the municipality and the assignee; (B) 67
97	102		includes a requirement that no attorney's fees shall be received, claimed 68
98	103		or collected until the commencement of a foreclosure or suit on the debt; 69
99	104		and (C) includes the provisions set forth in subparagraphs (A) to (I), 70
100	105		inclusive, of subdivision (1) of this subsection. 71
101	106		(d) The assignee, or any subsequent assignee, shall provide written 72
102	107		notice of an assignment, not later than sixty days after the date of such 73
103	108		assignment, to the owner and any holder of a mortgage, on the real 74
104	109		property that is the subject of the assignment, provided such owner or 75
105	110		holder is of record as of the date of such assignment. Such notice shall 76
106	111		include information sufficient to identify: (1) [the] The property that is 77
107	112		subject to the lien and in which the holder has an interest; [,] (2) the name 78
108	113		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 79
109	114		interest and fees being assigned relative to the subject property as of the 80
110	115		date of the assignment. 81
111		-	~~(e) Not less than sixty days prior to commencing an action to foreclose 82~~ Raised Bill No. 1339
	116	+	Raised Bill No. 1339
112	117
113	118
114		-	LCO 4237 4 of 25
115	119
	120	+	LCO No. 4237 4 of 26
	121	+
	122	+	(e) Not less than sixty days prior to commencing an action to foreclose 82
116	123		a lien under this section, the assignee shall provide a written notice, by 83
117	124		first-class mail, to the holders of all first or second security interests on 84
118	125		the property subject to the lien that were recorded before the date the 85
119	126		assessment the lien sought to be enforced became delinquent. Such 86
120	127		notice shall set forth: (1) The amount of unpaid debt owed to the 87
121	128		assignee as of the date of the notice; (2) the amount of any attorney's fees 88
122	129		and costs incurred by the assignee in the enforcement of the lien as of 89
123	130		the date of the notice; (3) a statement of the assignee's intention to 90
124	131		foreclose the lien if the amounts set forth pursuant to subdivisions (1) 91
125	132		and (2) of this subsection are not paid to the assignee on or before sixty 92
126	133		days after the date the notice is provided; (4) the assignee's contact 93
127	134		information, including, but not limited to, the assignee's name, mailing 94
128	135		address, telephone number and electronic mail address, if any; and (5) 95
129	136		instructions concerning the acceptable means of making a payment on 96
130	137		the amounts owed to the assignee as set forth pursuant to subdivisions 97
131	138		(1) and (2) of this subsection. Any notice required under this subsection 98
132	139		shall be effective upon the date such notice is provided. 99
133	140		(f) When providing the written notice required under subsection (e) 100
134	141		of this section, the assignee may rely on the last recorded security 101
135	142		interest of record in identifying the name and mailing address of the 102
136	143		holder of such interest, unless the holder of such interest is the plaintiff 103
137	144		in an action pending in Superior Court to enforce such interest, in which 104
138	145		case the assignee shall provide the written notice to the attorney 105
139	146		appearing on behalf of the plaintiff. 106
140	147		(g) Each aspect of a foreclosure, sale or other disposition under this 107
141	148		section, including, but not limited to, the costs, [attorney] attorney's fees, 108
142	149		method, advertising, time, date, place and terms, shall be commercially 109
143	150		reasonable, and, for actions commenced on or after July 1, 2026, such 110
144	151		attorney's fees shall not exceed fifteen per cent of the amount of any 111
145	152		judgment that is entered. 112
146	153		Sec. 2. Section 7-254 of the general statutes is repealed and the 113
147		-	~~following is substituted in lieu thereof (Effective October 1, 2025): 114~~ Raised Bill No. 1339
	154	+	Raised Bill No. 1339
148	155
149	156
150		-	LCO 4237 5 of 25
151	157
	158	+	LCO No. 4237 5 of 26
	159	+
	160	+	following is substituted in lieu thereof (Effective October 1, 2025): 114
152	161		(a) Any assessment of benefits or any installment thereof, not paid 115
153	162		within thirty days after the due date, shall be delinquent and shall be 116
154	163		subject to interest from such due date at the interest rate and in the 117
155	164		manner provided by the general statutes for delinquent property taxes. 118
156	165		Each addition of interest shall be collectible as a part of such assessment. 119
157	166		(b) Whenever any installment of an assessment becomes delinquent, 120
158	167		the interest on such delinquent installment shall be as provided in 121
159	168		subsection (a) of this section or five dollars, whichever is greater. Any 122
160	169		unpaid assessment and any interest due thereon shall constitute a lien 123
161	170		upon the real estate against which the assessment was levied from the 124
162	171		date of such levy. Each such lien may be continued, recorded and 125
163	172		released in the manner provided by the general statutes for continuing, 126
164	173		recording and releasing property tax liens. Each such lien shall take 127
165	174		precedence over all other liens and encumbrances except taxes and may 128
166	175		be enforced in the same manner as property tax liens. The tax collector 129
167	176		of the municipality may collect such assessments in accordance with any 130
168	177		mandatory provision of the general statutes for the collection of 131
169	178		property taxes and the municipality may recover any such assessment 132
170	179		in a civil action against any person liable therefor. 133
171	180		(c) Any municipality, by resolution of its legislative body, may assign, 134
172	181		for consideration, any and all liens filed by the tax collector to secure 135
173	182		unpaid sewer assessments as provided under the provisions of this 136
174	183		chapter. The consideration received by the municipality shall be 137
175	184		negotiated between the municipality and the assignee. 138
176	185		(d) The assignee or assignees of such liens shall have and possess the 139
177	186		same powers and rights at law or in equity as such municipality and 140
178	187		municipality's tax collector would have had if the lien had not been 141
179	188		assigned with regard to the precedence and priority of such lien, the 142
180	189		accrual of interest and the fees and expenses of collection, except that 143
181	190		any such assignee: (1) [shall] Shall not be insulated from liability by 144
	191	+	Raised Bill No. 1339
	192	+
	193	+
	194	+
	195	+	LCO No. 4237 6 of 26
	196	+
182	197		virtue of the provisions of section 42-110c; [,] and (2) shall be obligated 145
183	198		to provide a payoff statement, as defined in section 49-8a, in the same 146
184		-	manner as a mortgagee in accordance with the requirements of section 147 Raised Bill No. 1339
185		-
186		-
187		-	LCO 4237 6 of 25
188		-
	199	+	manner as a mortgagee in accordance with the requirements of section 147
189	200		49-10a. The assignee shall have the same rights to enforce such liens as 148
190	201		any private party holding a lien on real property, including, but not 149
191	202		limited to, foreclosure and a suit on the debt. 150
192	203		(e) (1) No such assignment executed on or after July 1, 2022, shall be 151
193	204		valid or enforceable unless memorialized in a contract executed by the 152
194	205		authority and the assignee that is in writing and provides: [(1)] (A) The 153
195	206		manner in which the assignee will provide to the owner of the real 154
196	207		property that is the subject of the assignment one or more addresses and 155
197	208		telephone numbers that may be used for correspondence with the 156
198	209		assignee about the debt and payment thereof; [(2)] (B) the earliest and 157
199	210		latest dates by which the assignee shall commence any foreclosure or 158
200	211		suit on the debt or the manner for determining such dates, except as may 159
201	212		be impacted by any payment arrangement, bankruptcy petition or other 160
202	213		circumstance, provided in no event shall the assignee commence a 161
203	214		foreclosure suit before one year has elapsed since the assignee's 162
204	215		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 163
205	216		that the assignee may claim against the owner or owners of such real 164
206	217		property in any foreclosure, suit on the debt or otherwise, and a 165
207	218		prohibition from using as foreclosure counsel any attorney or law office 166
208	219		that is owned by, employs or contracts with any person having an 167
209	220		interest in such assignee; [(4)] (D) confirmation that the owner of the real 168
210	221		property for which the lien has been filed shall be a third-party 169
211	222		beneficiary entitled to enforce the covenants and responsibilities of the 170
212	223		assignee as contained in the contract; [(5)] (E) a prohibition on the 171
213	224		assignee assigning the lien without the municipality's prior written 172
214	225		consent; [(6)] (F) the detail and frequency of reports provided to the 173
215	226		municipality's tax collector regarding the status of the assigned liens; 174
216	227		[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 175
217	228		section 31-57b, to be assigned the lien because of occupational safety and 176
218	229		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 177
	230	+	Raised Bill No. 1339
	231	+
	232	+
	233	+
	234	+	LCO No. 4237 7 of 26
	235	+
219	236		pending arbitrations and litigation matters in which the assignee or any 178
220	237		of its principals have been involved within the last ten years, except 179
221	238		foreclosure actions involving liens purchased from or assigned by 180
222		-	governmental entities, [(B)] (ii) all criminal proceedings that the 181 Raised Bill No. 1339
223		-
224		-
225		-	LCO 4237 7 of 25
226		-
	239	+	governmental entities, [(B)] (ii) all criminal proceedings that the 181
227	240		assignee or any of its principals has ever been the subject, [(C)] (iii) any 182
228	241		interest in the subject property held by the assignee or any of its 183
229	242		principals, officers or agents, and [(D)] (iv) each instance in which the 184
230	243		assignee or any of its principals was found to have violated any state or 185
231	244		local ethics law, regulation, ordinance, code, policy or standard, or to 186
232	245		have committed any other offense arising out of the submission of 187
233	246		proposals or bids or the performance of work on public contract; and 188
234	247		[(9)] (I) such additional terms to which the municipality and the assignee 189
235	248		mutually agree, consistent with applicable law. 190
236	249		(2) No such assignment executed on or after July 1, 2026, shall be valid 191
237	250		or enforceable unless such assignment is memorialized in a written 192
238	251		contract that: (A) Is executed by the authority and the assignee; (B) 193
239	252		includes a requirement that no attorney's fees shall be received, claimed 194
240	253		or collected until the commencement of a foreclosure or suit on the debt; 195
241	254		and (C) includes the provisions set forth in subparagraphs (A) to (I), 196
242	255		inclusive, of subdivision (1) of this subsection. 197
243	256		(f) The assignee, or any subsequent assignee, shall provide written 198
244	257		notice of an assignment, not later than sixty days after the date of such 199
245	258		assignment, to the owner and any holder of a mortgage on the real 200
246	259		property that is the subject of the assignment, provided such owner or 201
247	260		holder is of record as of the date of such assignment. Such notice shall 202
248	261		include information sufficient to identify: (1) [the] The property that is 203
249	262		subject to the lien and in which the holder has an interest; [,] (2) the name 204
250	263		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 205
251	264		interest and fees being assigned relative to the subject property as of the 206
252	265		date of the assignment. 207
253	266		(g) Not less than sixty days prior to commencing an action to 208
254	267		foreclose a lien under this section, the assignee shall provide a written 209
	268	+	Raised Bill No. 1339
	269	+
	270	+
	271	+
	272	+	LCO No. 4237 8 of 26
	273	+
255	274		notice, by first-class mail, to the holders of all first or second security 210
256	275		interests on the property subject to the lien that were recorded before 211
257	276		the date the assessment of the lien sought to be enforced became 212
258	277		delinquent. Such notice shall set forth: (1) The amount of unpaid debt 213
259		-	owed to the assignee as of the date of the notice; (2) the amount of any 214 Raised Bill No. 1339
260		-
261		-
262		-	LCO 4237 8 of 25
263		-
	278	+	owed to the assignee as of the date of the notice; (2) the amount of any 214
264	279		attorney's fees and costs incurred by the assignee in the enforcement of 215
265	280		the lien as of the date of the notice; (3) a statement of the assignee's 216
266	281		intention to foreclose the lien if the amounts set forth pursuant to 217
267	282		subdivisions (1) and (2) of this subsection are not paid to the assignee 218
268	283		on or before sixty days after the date on which the notice is provided; 219
269	284		(4) the assignee's contact information, including, but not limited to, the 220
270	285		assignee's name, mailing address, telephone number and electronic mail 221
271	286		address, if any; and (5) instructions concerning the acceptable means of 222
272	287		making a payment on the amounts owed to the assignee as set forth 223
273	288		pursuant to subdivisions (1) and (2) of this subsection. Any notice 224
274	289		required under this subsection shall be effective upon the date such 225
275	290		notice is provided. 226
276	291		(h) When providing the written notice required under subsection (g) 227
277	292		of this section, the assignee may rely on the last recorded security 228
278	293		interest of record in identifying the name and mailing address of the 229
279	294		holder of such interest, unless the holder of such interest is the plaintiff 230
280	295		in an action pending in Superior Court to enforce such interest, in which 231
281	296		case the assignee shall provide the written notice to the attorney 232
282	297		appearing on behalf of the plaintiff. 233
283	298		(i) Each aspect of a foreclosure, sale or other disposition under this 234
284	299		section, including, but not limited to, the costs, [attorney] attorney's fees, 235
285	300		method, advertising, time, date, place and terms, shall be commercially 236
286	301		reasonable, and, for actions commenced on or after July 1, 2026, such 237
287	302		attorney's fees shall not exceed fifteen per cent of the amount of any 238
288	303		judgment that is entered. 239
289	304		Sec. 3. Section 7-258 of the general statutes is repealed and the 240
290	305		following is substituted in lieu thereof (Effective October 1, 2025): 241
	306	+	Raised Bill No. 1339
	307	+
	308	+
	309	+
	310	+	LCO No. 4237 9 of 26
	311	+
291	312		(a) Any charge for connection with or for the use of a sewerage 242
292	313		system, not paid within thirty days of the due date, shall thereupon be 243
293	314		delinquent and shall bear interest from the due date at the rate and in 244
294	315		the manner provided by the general statutes for delinquent property 245
295		-	taxes. Each addition of interest shall be collectible as a part of such 246 Raised Bill No. 1339
296		-
297		-
298		-	LCO 4237 9 of 25
299		-
	316	+	taxes. Each addition of interest shall be collectible as a part of such 246
300	317		connection or use charge. Any such unpaid connection or use charge 247
301	318		shall constitute a lien upon the real estate against which such charge was 248
302	319		levied from the date [it] such charge became delinquent. Each such lien 249
303	320		may be continued, recorded and released in the manner provided by the 250
304	321		general statutes for continuing, recording and releasing property tax 251
305	322		liens. Each such lien shall take precedence over all other liens and 252
306	323		encumbrances except taxes and may be foreclosed in the same manner 253
307	324		as a lien for property taxes. The municipality may by ordinance 254
308	325		designate the tax collector or any other person as collector of sewerage 255
309	326		system connection and use charges and such collector of sewerage 256
310	327		system connection and use charges may collect such charges in 257
311	328		accordance with the provisions of the general statutes for the collection 258
312	329		of property taxes. The municipality may recover any such charges in a 259
313	330		civil action against any person liable therefor. For the purpose of 260
314	331		establishing or revising such connection or use charges and for the 261
315	332		purpose of collecting such charges, any municipality may enter into 262
316	333		agreements with any water company or municipal water department 263
317	334		furnishing water in such municipality for the purchase from such water 264
318	335		company or municipal water department of information or services, and 265
319	336		such agreement may designate such water company or municipal water 266
320	337		department as a billing or collecting agent of the collector of sewerage 267
321	338		system connection and use charges in the municipality. Any water 268
322	339		company or municipal water department may enter into and fulfill any 269
323	340		such agreements and may utilize for the collection of such charges any 270
324	341		of the methods utilized by [it] such water company or municipal water 271
325	342		department for the collection of its water charges. 272
326	343		(b) Any municipality, by resolution of its legislative body, may 273
327	344		assign, for consideration, any and all liens filed by the tax collector or 274
	345	+	Raised Bill No. 1339
	346	+
	347	+
	348	+
	349	+	LCO No. 4237 10 of 26
	350	+
328	351		collector of sewerage system connection and use charges to secure 275
329	352		unpaid sewerage connection and use charges as provided under the 276
330	353		provisions of this chapter. The consideration received by the 277
331	354		municipality shall be negotiated between the municipality and the 278
332	355		assignee. 279
333		-	(c) The assignee or assignees of such liens shall have and possess the 280 Raised Bill No. 1339
334		-
335		-
336		-	LCO 4237 10 of 25
337		-
	356	+	(c) The assignee or assignees of such liens shall have and possess the 280
338	357		same powers and rights at law or in equity as such municipality and 281
339	358		municipality's tax collector would have had if the lien had not been 282
340	359		assigned with regard to the precedence and priority of such lien, the 283
341	360		accrual of interest and the fees and expenses of collection, except that 284
342	361		any such assignee: (1) [shall] Shall not be insulated from liability for its 285
343	362		conduct by virtue of the provisions of section 42-110c; [,] and (2) shall be 286
344	363		obligated to provide a payoff statement, as defined in section 49-8a, in 287
345	364		the same manner as a mortgagee in accordance with the requirements 288
346	365		of section 49-10a. The assignee shall have the same rights to enforce such 289
347	366		liens as any private party holding a lien on real property, including, but 290
348	367		not limited to, foreclosure and a suit on the debt. 291
349	368		(d) (1) No such assignment executed on or after July 1, 2022, shall be 292
350	369		valid or enforceable unless memorialized in a contract executed by the 293
351	370		authority and the assignee that is in writing and provides: [(1)] (A) The 294
352	371		manner in which the assignee will provide to the owner of the real 295
353	372		property that is the subject of the assignment one or more addresses and 296
354	373		telephone numbers that may be used for correspondence with the 297
355	374		assignee about the debt and payment thereof; [(2)] (B) the earliest and 298
356	375		latest dates by which the assignee shall commence any foreclosure or 299
357	376		suit on the debt or the manner for determining such dates, except as may 300
358	377		be impacted by any payment arrangement, bankruptcy petition or other 301
359	378		circumstance, provided in no event shall the assignee commence a 302
360	379		foreclosure suit before one year has elapsed since the assignee's 303
361	380		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 304
362	381		that the assignee may claim against the owner or owners of such real 305
363	382		property in any foreclosure, suit on the debt or otherwise, and a 306
364	383		prohibition from using as foreclosure counsel any attorney or law office 307
	384	+	Raised Bill No. 1339
	385	+
	386	+
	387	+
	388	+	LCO No. 4237 11 of 26
	389	+
365	390		that is owned by, employs or contracts with any person having an 308
366	391		interest in such assignee; [(4)] (D) confirmation that the owner of the real 309
367	392		property for which the lien has been filed shall be a third-party 310
368	393		beneficiary entitled to enforce the covenants and responsibilities of the 311
369	394		assignee as contained in the contract; [(5)] (E) a prohibition on the 312
370	395		assignee assigning the lien without the municipality's prior written 313
371		-	consent; [(6)] (F) the detail and frequency of reports provided to the 314 Raised Bill No. 1339
372		-
373		-
374		-	LCO 4237 11 of 25
375		-
	396	+	consent; [(6)] (F) the detail and frequency of reports provided to the 314
376	397		municipality's tax collector regarding the status of the assigned liens; 315
377	398		[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 316
378	399		section 31-57b, to be assigned the lien because of occupational safety and 317
379	400		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 318
380	401		pending arbitrations and litigation matters in which the assignee or any 319
381	402		of its principals have been involved within the last ten years, except 320
382	403		foreclosure actions involving liens purchased from or assigned by 321
383	404		governmental entities, [(B)] (ii) all criminal proceedings that the 322
384	405		assignee or any of its principals has ever been the subject, [(C)] (iii) any 323
385	406		interest in the subject property held by the assignee or any of its 324
386	407		principals, officers or agents, and [(D)] (iv) each instance in which the 325
387	408		assignee or any of its principals was found to have violated any state or 326
388	409		local ethics law, regulation, ordinance, code, policy or standard, or to 327
389	410		have committed any other offense arising out of the submission of 328
390	411		proposals or bids or the performance of work on public contract; and 329
391	412		[(9)] (I) such additional terms to which the municipality and the assignee 330
392	413		mutually agree consistent with applicable law. 331
393	414		(2) No such assignment executed on or after July 1, 2026, shall be valid 332
394	415		or enforceable unless such assignment is memorialized in a written 333
395	416		contract that: (A) Is executed by the authority and the assignee; (B) 334
396	417		includes a requirement that no attorney's fees shall be received, claimed 335
397	418		or collected until the commencement of a foreclosure or suit on the debt; 336
398	419		and (C) includes the provisions set forth in subparagraphs (A) to (I), 337
399	420		inclusive, of subdivision (1) of this subsection. 338
400	421		(e) The assignee, or any subsequent assignee, shall provide written 339
401	422		notice of an assignment, not later than sixty days after the date of such 340
	423	+	Raised Bill No. 1339
	424	+
	425	+
	426	+
	427	+	LCO No. 4237 12 of 26
	428	+
402	429		assignment, to the owner and any holder of a mortgage on the real 341
403	430		property that is the subject of the assignment, provided such owner or 342
404	431		holder is of record as of the date of such assignment. Such notice shall 343
405	432		include information sufficient to identify: (1) [the] The property that is 344
406	433		subject to the lien and in which the holder has an interest; [,] (2) the name 345
407	434		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 346
408	435		interest and fees being assigned relative to the subject property as of the 347
409		-	date of the assignment. 348 Raised Bill No. 1339
410		-
411		-
412		-	LCO 4237 12 of 25
413		-
	436	+	date of the assignment. 348
414	437		(f) Not less than sixty days prior to commencing an action to foreclose 349
415	438		a lien under this section, the assignee shall provide a written notice, by 350
416	439		first-class mail, to the holders of all first or second security interests on 351
417	440		the property subject to the lien that were recorded before the date the 352
418	441		assessment of the lien sought to be enforced became delinquent. Such 353
419	442		notice shall set forth: (1) The amount of unpaid debt owed to the 354
420	443		assignee as of the date of the notice; (2) the amount of any attorney's fees 355
421	444		and costs incurred by the assignee in the enforcement of the lien as of 356
422	445		the date of the notice; (3) a statement of the assignee's intention to 357
423	446		foreclose the lien if the amounts set forth pursuant to subdivisions (1) 358
424	447		and (2) of this subsection are not paid to the assignee on or before sixty 359
425	448		days after the date the notice is provided; (4) the assignee's contact 360
426	449		information, including, but not limited to, the assignee's name, mailing 361
427	450		address, telephone number and electronic mail address, if any; and (5) 362
428	451		instructions concerning the acceptable means of making a payment on 363
429	452		the amounts owed to the assignee as set forth pursuant to subdivisions 364
430	453		(1) and (2) of this subsection. Any notice required under this subsection 365
431	454		shall be effective upon the date such notice is provided. 366
432	455		(g) When providing the written notice required under subsection (f) 367
433	456		of this section, the assignee may rely on the last recorded security 368
434	457		interest of record in identifying the name and mailing address of the 369
435	458		holder of such interest, unless the holder of such interest is the plaintiff 370
436	459		in an action pending in Superior Court to enforce such interest, in which 371
437	460		case the assignee shall provide the written notice to the attorney 372
438	461		appearing on behalf of the plaintiff. 373
	462	+	Raised Bill No. 1339
	463	+
	464	+
	465	+
	466	+	LCO No. 4237 13 of 26
	467	+
439	468		(h) Each aspect of a foreclosure, sale or other disposition under this 374
440	469		section, including, but not limited to, the costs, [attorney] attorney's fees, 375
441	470		method, advertising, time, date, place and terms, shall be commercially 376
442	471		reasonable, and, for actions commenced on or after July 1, 2026, such 377
443	472		attorney's fees shall not exceed fifteen per cent of the amount of any 378
444	473		judgment that is entered. 379
445	474		Sec. 4. Section 7-239 of the general statutes is repealed and the 380
446		-	following is substituted in lieu thereof (Effective October 1, 2025): 381 Raised Bill No. 1339
447		-
448		-
449		-	LCO 4237 13 of 25
450		-
	475	+	following is substituted in lieu thereof (Effective October 1, 2025): 381
451	476		(a) The legislative body shall establish just and equitable rates or 382
452	477		charges for the use of the waterworks system authorized in this 383
453	478		subsection, to be paid by the owner of each lot or building which is 384
454	479		connected with and uses such system, and may change such rates or 385
455	480		charges from time to time. Such rates or charges shall be sufficient in 386
456	481		each year for the payment of the expense of operation, repair, 387
457	482		[replacements] replacement and maintenance of such system and for the 388
458	483		payment of the sums in this subsection required to be paid into the 389
459	484		sinking fund. In establishing such rates or charges, the legislative body 390
460	485		shall consider measures that promote water conservation and reduce 391
461	486		the demand on the state's water and energy resources. Such rates or 392
462	487		charges may include: (1) Demand projections that recognize the effects 393
463	488		of conservation; [,] (2) implementation of metering and measures to 394
464	489		provide timely price signals to consumers; [,] (3) multiyear rate plans; [,] 395
465	490		(4) measures to reduce system water losses; [,] and (5) alternative rate 396
466	491		designs that promote conservation. No such rate or charge shall be 397
467	492		established until after a public hearing at which all the users of the 398
468	493		waterworks system and the owners of property served or to be served 399
469	494		and others interested shall have an opportunity to be heard concerning 400
470	495		such proposed rate or charge. Notice of such hearing shall be given, at 401
471	496		least ten days before the date set therefor, in a newspaper having a 402
472	497		circulation in such municipality. Such notice shall set forth a schedule 403
473	498		of rates or charges, and a copy of the schedule of rates or charges 404
474	499		established shall be kept on file in the office of the legislative body and 405
475	500		in the office of the clerk of the municipality, and shall be open to 406
	501	+	Raised Bill No. 1339
	502	+
	503	+
	504	+
	505	+	LCO No. 4237 14 of 26
	506	+
476	507		inspection by the public. The rates or charges so established for any class 407
477	508		of users or property served shall be extended to cover any additional 408
478	509		premises thereafter served which are within the same class, without the 409
479	510		necessity of a hearing thereon. Any change in such rates or charges may 410
480	511		be made in the same manner in which they were established, provided, 411
481	512		if any change is made substantially pro rata as to all classes of service, 412
482	513		no hearing shall be required. The provisions of this section shall not 413
483	514		apply to the sale of bottled water. 414
484		-	(b) If any rates or charges established pursuant to this section are not 415 Raised Bill No. 1339
485		-
486		-
487		-	LCO 4237 14 of 25
488		-
	515	+	(b) If any rates or charges established pursuant to this section are not 415
489	516		paid within thirty days after the due date, demand for such rates or 416
490	517		charges may be made on the owner of the premises served in the manner 417
491	518		provided in subsection (a) of section 12-155, and thereafter an alias tax 418
492	519		warrant may be issued in the manner provided in sections 12-135 and 419
493	520		12-162. The rates or charges established pursuant to this section, if not 420
494	521		paid when due, shall constitute a lien upon the premises served and a 421
495	522		charge against the owner thereof, which lien and charge shall bear 422
496	523		interest at the same rate as would unpaid taxes. Such a lien not released 423
497	524		of record prior to October 1, 1993, shall not continue for more than two 424
498	525		years unless the superintendent of the waterworks system has filed a 425
499	526		certificate of continuation of the lien in the manner provided under 426
500	527		section 12-174 for the continuance of tax liens, and when so continued 427
501	528		shall be valid for fifteen years. A lien described in this section shall take 428
502	529		precedence over all other liens or encumbrances except taxes and may 429
503	530		be foreclosed against the lot or building served in the same manner as a 430
504	531		lien for taxes. 431
505	532		(c) Any municipality, by resolution of its legislative body, may assign, 432
506	533		for consideration, any and all liens filed by the superintendent of the 433
507	534		waterworks system or tax collector to secure unpaid water charges as 434
508	535		provided under the provisions of this chapter. The consideration 435
509	536		received by the municipality shall be negotiated between the 436
510	537		municipality and the assignee. 437
511	538		(d) The assignee or assignees of such liens shall have and possess the 438
	539	+	Raised Bill No. 1339
	540	+
	541	+
	542	+
	543	+	LCO No. 4237 15 of 26
	544	+
512	545		same powers and rights at law or in equity as such municipality and 439
513	546		municipality's tax collector would have had if the lien had not been 440
514	547		assigned with regard to the precedence and priority of such lien, the 441
515	548		accrual of interest and the fees and expenses of collection, except that 442
516	549		any such assignee: (1) [shall] Shall not be insulated from liability for its 443
517	550		conduct by virtue of the provisions of section 42-110c; [,] and (2) any 444
518	551		such assignee shall be obligated to provide a payoff statement, as 445
519	552		defined in section 49-8a, in the same manner as a mortgagee in 446
520	553		accordance with the requirements of section 49-10a. The assignee shall 447
521	554		have the same rights to enforce such liens as any private party holding 448
522		-	a lien on real property, including, but not limited to, foreclosure and a 449 Raised Bill No. 1339
523		-
524		-
525		-	LCO 4237 15 of 25
526		-
	555	+	a lien on real property, including, but not limited to, foreclosure and a 449
527	556		suit on the debt. 450
528	557		(e) (1) No such assignment executed on or after July 1, 2022, shall be 451
529	558		valid or enforceable unless memorialized in a contract executed by the 452
530	559		authority and the assignee that is in writing and provides: [(1)] (A) The 453
531	560		manner in which the assignee will provide to the owner of the real 454
532	561		property that is the subject of the assignment one or more addresses and 455
533	562		telephone numbers that may be used for correspondence with the 456
534	563		assignee about the debt and payment thereof; [(2)] (B) the earliest and 457
535	564		latest dates by which the assignee shall commence any foreclosure or 458
536	565		suit on the debt or the manner for determining such dates, except as may 459
537	566		be impacted by any payment arrangement, bankruptcy petition or other 460
538	567		circumstance, provided in no event shall the assignee commence a 461
539	568		foreclosure suit before one year has elapsed since the assignee's 462
540	569		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 463
541	570		that the assignee may claim against the owner or owners of such real 464
542	571		property in any foreclosure, suit on the debt or otherwise, and a 465
543	572		prohibition from using as foreclosure counsel any attorney or law office 466
544	573		that is owned by, employs or contracts with any person having an 467
545	574		interest in such assignee; [(4)] (D) confirmation that the owner of the real 468
546	575		property for which the lien has been filed shall be a third-party 469
547	576		beneficiary entitled to enforce the covenants and responsibilities of the 470
548	577		assignee as contained in the contract; [(5)] (E) a prohibition on the 471
	578	+	Raised Bill No. 1339
	579	+
	580	+
	581	+
	582	+	LCO No. 4237 16 of 26
	583	+
549	584		assignee assigning the lien without the municipality's prior written 472
550	585		consent; [(6)] (F) the detail and frequency of reports provided to the 473
551	586		municipality's tax collector regarding the status of the assigned liens; 474
552	587		[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 475
553	588		section 31-57b, to be assigned the lien because of occupational safety and 476
554	589		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 477
555	590		pending arbitrations and litigation matters in which the assignee or any 478
556	591		of its principals have been involved within the last ten years, except 479
557	592		foreclosure actions involving liens purchased from or assigned by 480
558	593		governmental entities, [(B)] (ii) all criminal proceedings that the 481
559	594		assignee or any of its principals has ever been the subject, [(C)] (iii) any 482
560		-	interest in the subject property held by the assignee or any of its 483 Raised Bill No. 1339
561		-
562		-
563		-	LCO 4237 16 of 25
564		-
	595	+	interest in the subject property held by the assignee or any of its 483
565	596		principals, officers or agents, and [(D)] (iv) each instance in which the 484
566	597		assignee or any of its principals was found to have violated any state or 485
567	598		local ethics law, regulation, ordinance, code, policy or standard, or to 486
568	599		have committed any other offense arising out of the submission of 487
569	600		proposals or bids or the performance of work on public contract; and 488
570	601		[(9)] (I) such additional terms to which the municipality and the assignee 489
571	602		mutually agree consistent with applicable law. 490
572	603		(2) No such assignment executed on or after July 1, 2026, shall be valid 491
573	604		or enforceable unless such assignment is memorialized in a written 492
574	605		contract that: (A) Is executed by the authority and the assignee; (B) 493
575	606		includes a requirement that no attorney's fees shall be received, claimed 494
576	607		or collected until the commencement of a foreclosure or suit on the debt; 495
577	608		and (C) includes the provisions set forth in subparagraphs (A) to (I), 496
578	609		inclusive, of subdivision (1) of this subsection. 497
579	610		(f) The assignee, or any subsequent assignee, shall provide written 498
580	611		notice of an assignment, not later than sixty days after the date of such 499
581	612		assignment, to the owner and any holder of a mortgage on the real 500
582	613		property that is the subject of the assignment, provided such owner or 501
583	614		holder is of record as of the date of such assignment. Such notice shall 502
584	615		include information sufficient to identify: (1) [the] The property that is 503
585	616		subject to the lien and in which the holder has an interest; [,] (2) the name 504
	617	+	Raised Bill No. 1339
	618	+
	619	+
	620	+
	621	+	LCO No. 4237 17 of 26
	622	+
586	623		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 505
587	624		interest and fees being assigned relative to the subject property as of the 506
588	625		date of the assignment. 507
589	626		(g) Not less than sixty days prior to commencing an action to 508
590	627		foreclose a lien under this section, the assignee shall provide a written 509
591	628		notice, by first-class mail, to the holders of all first or second security 510
592	629		interests on the property subject to the lien that were recorded before 511
593	630		the date the assessment of the lien sought to be enforced became 512
594	631		delinquent. Such notice shall set forth: (1) The amount of unpaid debt 513
595	632		owed to the assignee as of the date of the notice; (2) the amount of any 514
596	633		attorney's fees and costs incurred by the assignee in the enforcement of 515
597		-	the lien as of the date of the notice; (3) a statement of the assignee's 516 Raised Bill No. 1339
598		-
599		-
600		-	LCO 4237 17 of 25
601		-
	634	+	the lien as of the date of the notice; (3) a statement of the assignee's 516
602	635		intention to foreclose the lien if the amounts set forth pursuant to 517
603	636		subdivisions (1) and (2) of this subsection are not paid to the assignee 518
604	637		on or before sixty days after the date the notice is provided; (4) the 519
605	638		assignee's contact information, including, but not limited to, the 520
606	639		assignee's name, mailing address, telephone number and electronic mail 521
607	640		address, if any; and (5) instructions concerning the acceptable means of 522
608	641		making a payment on the amounts owed to the assignee as set forth 523
609	642		pursuant to subdivisions (1) and (2) of this subsection. Any notice 524
610	643		required under this subsection shall be effective upon the date such 525
611	644		notice is provided. 526
612	645		(h) When providing the written notice required under subsection (g) 527
613	646		of this section, the assignee may rely on the last recorded security 528
614	647		interest of record in identifying the name and mailing address of the 529
615	648		holder of such interest, unless the holder of such interest is the plaintiff 530
616	649		in an action pending in Superior Court to enforce such interest, in which 531
617	650		case the assignee shall provide the written notice to the attorney 532
618	651		appearing on behalf of the plaintiff. 533
619	652		(i) Each aspect of a foreclosure, sale or other disposition under this 534
620	653		section, including, but not limited to, the costs, [attorney] attorney's fees, 535
621	654		method, advertising, time, date, place and terms, shall be commercially 536
	655	+	Raised Bill No. 1339
	656	+
	657	+
	658	+
	659	+	LCO No. 4237 18 of 26
	660	+
622	661		reasonable, and, for actions commenced on or after July 1, 2026, such 537
623	662		attorney's fees shall not exceed fifteen per cent of the amount of any 538
624	663		judgment that is entered. Costs and reasonable [attorneys'] attorney's 539
625	664		fees incurred by the assignee as a result of any foreclosure action or 540
626	665		other legal proceeding brought pursuant to this section and directly 541
627	666		related to the proceeding shall be taxed in any such proceeding against 542
628	667		each person having title to any property subject to the proceedings. Such 543
629	668		costs and fees may be collected by the assignee at any time after demand 544
630	669		for payment has been made by the assignee. 545
631	670		(j) The amount of any such rate or charge which remains due and 546
632	671		unpaid for thirty days may, with reasonable [attorneys'] attorney's fees, 547
633	672		be recovered by the legislative body in a civil action in the name of the 548
634		-	municipality against such owners. For civil actions commenced on or 549 Raised Bill No. 1339
635		-
636		-
637		-	LCO 4237 18 of 25
638		-
	673	+	municipality against such owners. For civil actions commenced on or 549
639	674		after July 1, 2026, such attorney's fees shall not exceed fifteen per cent of 550
640	675		the amount of any judgment that is entered. The municipality shall be 551
641	676		subject to the same rates or charges under the same conditions as other 552
642	677		users of such waterworks system. 553
643	678		Sec. 5. Section 49-92o of the general statutes is repealed and the 554
644	679		following is substituted in lieu thereof (Effective October 1, 2025): 555
645	680		(a) Any regional sewer authority established under an act of the 556
646	681		General Assembly, may assign, for consideration, any and all liens filed 557
647	682		by such regional sewer authority to secure unpaid sewer assessments or 558
648	683		connection or use charges of the authority. The consideration received 559
649	684		by the authority shall be negotiated between the authority and the 560
650	685		assignee. 561
651	686		(b) The assignee or assignees of such liens shall have and possess the 562
652	687		same powers and rights at law or in equity as such authority would have 563
653	688		had if the lien had not been assigned with regard to the precedence and 564
654	689		priority of such lien, the accrual of interest and the fees and expenses of 565
655	690		collection, except that any such assignee: (1) [shall] Shall not be 566
656	691		insulated from liability by section 42-110c; [,] and (2) shall be obligated 567
	692	+	Raised Bill No. 1339
	693	+
	694	+
	695	+
	696	+	LCO No. 4237 19 of 26
	697	+
657	698		to provide a payoff statement, as defined in section 49-8a, in the same 568
658	699		manner as a mortgagee in accordance with the requirements of section 569
659	700		49-10a. The assignee shall have the same rights to enforce such liens as 570
660	701		any private party holding a lien on real property, including, but not 571
661	702		limited to, foreclosure and a suit on the debt. 572
662	703		(c) (1) No such assignment executed on or after July 1, 2022, shall be 573
663	704		valid or enforceable unless memorialized in a contract executed by the 574
664	705		authority and the assignee that is in writing and provides: [(1)] (A) The 575
665	706		manner in which the assignee will provide to the owner of the real 576
666	707		property that is the subject of the assignment one or more addresses and 577
667	708		telephone numbers that may be used for correspondence with the 578
668	709		assignee about the debt and payment thereof; [(2)] (B) the earliest and 579
669	710		latest dates by which the assignee shall commence any foreclosure or 580
670		-	suit on the debt or the manner for determining such dates, except as may 581 Raised Bill No. 1339
671		-
672		-
673		-	LCO 4237 19 of 25
674		-
	711	+	suit on the debt or the manner for determining such dates, except as may 581
675	712		be impacted by any payment arrangement, bankruptcy petition or other 582
676	713		circumstance, provided in no event shall the assignee commence a 583
677	714		foreclosure suit before one year has elapsed since the assignee's 584
678	715		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 585
679	716		that the assignee may claim against the owner or owners of such real 586
680	717		property in any foreclosure, suit on the debt or otherwise, and a 587
681	718		prohibition from using as foreclosure counsel any attorney or law office 588
682	719		that is owned by, employs or contracts with any person having an 589
683	720		interest in such assignee; [(4)] (D) confirmation that the owner of the real 590
684	721		property for which the lien has been filed shall be a third-party 591
685	722		beneficiary entitled to enforce the covenants and responsibilities of the 592
686	723		assignee as contained in the contract; [(5)] (E) a prohibition on the 593
687	724		assignee assigning the lien without the municipality's prior written 594
688	725		consent; [(6)] (F) the detail and frequency of reports provided to the 595
689	726		municipality's tax collector regarding the status of the assigned liens; 596
690	727		[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 597
691	728		section 31-57b, to be assigned the lien because of occupational safety and 598
692	729		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 599
693	730		pending arbitrations and litigation matters in which the assignee or any 600
	731	+	Raised Bill No. 1339
	732	+
	733	+
	734	+
	735	+	LCO No. 4237 20 of 26
	736	+
694	737		of its principals have been involved within the last ten years, except 601
695	738		foreclosure actions involving liens purchased from or assigned by 602
696	739		governmental entities, [(B)] (ii) all criminal proceedings that the 603
697	740		assignee or any of its principals has ever been the subject, [(C)] (iii) any 604
698	741		interest in the subject property held by the assignee or any of its 605
699	742		principals, officers or agents, and [(D)] (iv) each instance in which the 606
700	743		assignee or any of its principals was found to have violated any state or 607
701	744		local ethics law, regulation, ordinance, code, policy or standard, or to 608
702	745		have committed any other offense arising out of the submission of 609
703	746		proposals or bids or the performance of work on public contract; and 610
704	747		[(9)] (I) such additional terms to which the municipality and the assignee 611
705	748		mutually agree consistent with applicable law. 612
706	749		(2) No such assignment executed on or after July 1, 2026, shall be valid 613
707	750		or enforceable unless such assignment is memorialized in a written 614
708		-	contract that: (A) Is executed by the authority and the assignee; (B) 615 Raised Bill No. 1339
709		-
710		-
711		-	LCO 4237 20 of 25
712		-
	751	+	contract that: (A) Is executed by the authority and the assignee; (B) 615
713	752		includes a requirement that no attorney's fees shall be received, claimed 616
714	753		or collected until the commencement of a foreclosure or suit on the debt; 617
715	754		and (C) includes the provisions set forth in subparagraphs (A) to (I), 618
716	755		inclusive, of subdivision (1) of this subsection. 619
717	756		(d) The assignee, or any subsequent assignee, shall provide written 620
718	757		notice of an assignment, not later than sixty days after the date of such 621
719	758		assignment, to the owner and any holder of a mortgage on the real 622
720	759		property that is the subject of the assignment, provided such owner or 623
721	760		holder is of record as of the date of such assignment. Such notice shall 624
722	761		include information sufficient to identify: (1) [the] The property that is 625
723	762		subject to the lien and in which the holder has an interest; [,] (2) the name 626
724	763		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 627
725	764		interest and fees being assigned relative to the subject property as of the 628
726	765		date of the assignment. 629
727	766		(e) Not less than sixty days prior to commencing an action to foreclose 630
728	767		a lien assigned under this section, the assignee shall provide a written 631
729	768		notice, by first-class mail to the holders of all first or second security 632
	769	+	Raised Bill No. 1339
	770	+
	771	+
	772	+
	773	+	LCO No. 4237 21 of 26
	774	+
730	775		interests on the property subject to the lien that were recorded before 633
731	776		the date the assessment of such lien became delinquent. Such notice 634
732	777		shall set forth: (1) The amount of unpaid debt owed to the assignee as of 635
733	778		the date of the notice; (2) the amount of any attorney's fees and costs 636
734	779		incurred by the assignee in the enforcement of the lien as of the date of 637
735	780		the notice; (3) a statement of the assignee's intention to foreclose the lien 638
736	781		if the amounts set forth pursuant to subdivisions (1) and (2) of this 639
737	782		subsection are not paid to the assignee on or before sixty days after the 640
738	783		date the notice is provided; (4) the assignee's contact information, 641
739	784		including, but not limited to, the assignee's name, mailing address, 642
740	785		telephone number and electronic mail address, if any; and (5) 643
741	786		instructions concerning the acceptable means of making a payment on 644
742	787		the amounts owed to the assignee as set forth pursuant to subdivisions 645
743	788		(1) and (2) of this subsection. Any notice required under this subsection 646
744	789		shall be effective upon the date such notice is provided. 647
745		-	(f) When providing the written notice required under subsection (e) 648 Raised Bill No. 1339
746		-
747		-
748		-	LCO 4237 21 of 25
749		-
	790	+	(f) When providing the written notice required under subsection (e) 648
750	791		of this section, the assignee may rely on the last recorded security 649
751	792		interest of record in identifying the name and mailing address of the 650
752	793		holder of such interest, unless the holder of such interest is the plaintiff 651
753	794		in an action pending in Superior Court to enforce such interest, in which 652
754	795		case the assignee shall provide the written notice to the attorney 653
755	796		appearing on behalf of the plaintiff. 654
756	797		(g) Each aspect of a foreclosure, sale or other disposition under this 655
757	798		section, including, but not limited to, the costs, [attorney] attorney's fees, 656
758	799		method, advertising, time, date, place and terms, shall be commercially 657
759	800		reasonable, and, for actions commenced on or after July 1, 2026, such 658
760	801		attorney's fees shall not exceed fifteen per cent of the amount of any 659
761	802		judgment that is entered. Costs and reasonable [attorneys'] attorney's 660
762	803		fees incurred by the assignee as a result of any foreclosure action or 661
763	804		other legal proceeding brought pursuant to this section and directly 662
764	805		related to the proceeding shall be taxed in any such proceeding against 663
765	806		each person having title to any property subject to the proceedings. Such 664
766	807		costs [and fees] may be collected by the assignee at any time after 665
	808	+	Raised Bill No. 1339
	809	+
	810	+
	811	+
	812	+	LCO No. 4237 22 of 26
	813	+
767	814		demand for payment has been made by the assignee. 666
768	815		Sec. 6. Section 49-92p of the general statutes is repealed and the 667
769	816		following is substituted in lieu thereof (Effective October 1, 2025): 668
770	817		(a) Any regional water authority established under an act of the 669
771	818		General Assembly, may assign, for consideration, any and all liens filed 670
772	819		by such regional water authority to secure unpaid water assessments or 671
773	820		connection or use charges of the authority. The consideration received 672
774	821		by the authority shall be negotiated between the authority and the 673
775	822		assignee. 674
776	823		(b) The assignee or assignees of such liens shall have and possess the 675
777	824		same powers and rights at law or in equity as such authority would have 676
778	825		had if the lien had not been assigned with regard to the precedence and 677
779	826		priority of such lien, the accrual of interest and the fees and expenses of 678
780	827		collection, except that such assignee: (1) [shall] Shall not be insulated 679
781		-	from liability for its conduct by virtue of the provisions of section 42-680 Raised Bill No. 1339
782		-
783		-
784		-	LCO 4237 22 of 25
785		-
	828	+	from liability for its conduct by virtue of the provisions of section 42-680
786	829		110c; [,] and (2) shall be obligated to provide a payoff statement, as 681
787	830		defined in section 49-8a, in the same manner as a mortgagee in 682
788	831		accordance with the requirements of section 49-10a. The assignee shall 683
789	832		have the same rights to enforce such liens as any private party holding 684
790	833		a lien on real property, including, but not limited to, foreclosure and a 685
791	834		suit on the debt. 686
792	835		(c) (1) No such assignment executed on or after July 1, 2022, shall be 687
793	836		valid or enforceable unless memorialized in a contract executed by the 688
794	837		authority and the assignee that is in writing and provides: [(1)] (A) The 689
795	838		manner in which the assignee will provide to the owner of the real 690
796	839		property that is the subject of the assignment one or more addresses and 691
797	840		telephone numbers that may be used for correspondence with the 692
798	841		assignee about the debt and payment thereof; [(2)] (B) the earliest and 693
799	842		latest dates by which the assignee shall commence any foreclosure or 694
800	843		suit on the debt or the manner for determining such dates, except as may 695
801	844		be impacted by any payment arrangement, bankruptcy petition or other 696
	845	+	Raised Bill No. 1339
	846	+
	847	+
	848	+
	849	+	LCO No. 4237 23 of 26
	850	+
802	851		circumstance, provided in no event shall the assignee commence a 697
803	852		foreclosure suit before one year has elapsed since the assignee's 698
804	853		purchase of the lien; [(3)] (C) the structure and rates of attorney's fees 699
805	854		that the assignee may claim against the owner or owners of such real 700
806	855		property in any foreclosure, suit on the debt or otherwise, and a 701
807	856		prohibition from using as foreclosure counsel any attorney or law office 702
808	857		that is owned by, employs or contracts [having] with any person [with] 703
809	858		having an interest in such assignee; [(4)] (D) confirmation that the owner 704
810	859		of the real property for which the lien has been filed shall be a third-705
811	860		party beneficiary entitled to enforce the covenants and responsibilities 706
812	861		of the assignee as contained in the contract; [(5)] (E) a prohibition on the 707
813	862		assignee assigning the lien without the municipality's prior written 708
814	863		consent; [(6)] (F) the detail and frequency of reports provided to the 709
815	864		municipality's tax collector regarding the status of the assigned liens; 710
816	865		[(7)] (G) confirmation that the assignee is not ineligible, pursuant to 711
817	866		section 31-57b, to be assigned the lien because of occupational safety and 712
818	867		health law violations; [(8)] (H) disclosure of [(A)] (i) all resolved and 713
819		-	pending arbitrations and litigation matters in which the assignee or any 714 Raised Bill No. 1339
820		-
821		-
822		-	LCO 4237 23 of 25
823		-
	868	+	pending arbitrations and litigation matters in which the assignee or any 714
824	869		of its principals have been involved within the last ten years, except 715
825	870		foreclosure actions involving liens purchased from or assigned by 716
826	871		governmental entities, [(B)] (ii) all criminal proceedings that the 717
827	872		assignee or any of its principals has ever been the subject, [(C)] (iii) any 718
828	873		interest in the subject property held by the assignee or any of its 719
829	874		principals, officers or agents, and [(D)] (iv) each instance in which the 720
830	875		assignee or any of its principals was found to have violated any state or 721
831	876		local ethics law, regulation, ordinance, code, policy or standard, or to 722
832	877		have committed any other offense arising out of the submission of 723
833	878		proposals or bids or the performance of work on public contract; and 724
834	879		[(9)] (I) such additional terms to which the municipality and the assignee 725
835	880		mutually agree consistent with applicable law. 726
836	881		(2) No such assignment executed on or after July 1, 2026, shall be valid 727
837	882		or enforceable unless such assignment is memorialized in a written 728
838	883		contract that: (A) Is executed by the authority and the assignee; (B) 729
	884	+	Raised Bill No. 1339
	885	+
	886	+
	887	+
	888	+	LCO No. 4237 24 of 26
	889	+
839	890		includes a requirement that no attorney's fees shall be received, claimed 730
840	891		or collected until the commencement of a foreclosure or suit on the debt; 731
841	892		and (C) includes the provisions set forth in subparagraphs (A) to (I), 732
842	893		inclusive, of subdivision (1) of this subsection. 733
843	894		(d) The assignee, or any subsequent assignee, shall provide written 734
844	895		notice of an assignment, not later than sixty days after the date of such 735
845	896		assignment, to the owner and any holder of a mortgage on the real 736
846	897		property that is the subject of the assignment, provided such owner or 737
847	898		holder is of record as of the date of such assignment. Such notice shall 738
848	899		include information sufficient to identify: (1) [the] The property that is 739
849	900		subject to the lien and in which the holder has an interest; [,] (2) the name 740
850	901		and addresses of the assignee; [,] and (3) the amount of unpaid taxes, 741
851	902		interest and fees being assigned relative to the subject property as of the 742
852	903		date of the assignment. 743
853	904		(e) Not less than sixty days prior to commencing an action to foreclose 744
854	905		a lien under this section, the assignee shall provide a written notice, by 745
855	906		first-class mail to the holders of all first or second security interests on 746
856		-	the property subject to the lien that were recorded before the date the 747 Raised Bill No. 1339
857		-
858		-
859		-	LCO 4237 24 of 25
860		-
	907	+	the property subject to the lien that were recorded before the date the 747
861	908		assessment of the lien sought to be enforced became delinquent. Such 748
862	909		notice shall set forth: (1) The amount of unpaid debt owed to the 749
863	910		assignee as of the date of the notice; (2) the amount of any attorney's fees 750
864	911		and costs incurred by the assignee in the enforcement of the lien as of 751
865	912		the date of the notice; (3) a statement of the assignee's intention to 752
866	913		foreclose the lien if the amounts set forth pursuant to subdivisions (1) 753
867	914		and (2) of this subsection are not paid to the assignee on or before sixty 754
868	915		days after the date the notice is provided; (4) the assignee's contact 755
869	916		information, including, but not limited to, the assignee's name, mailing 756
870	917		address, telephone number and electronic mail address, if any; and (5) 757
871	918		instructions concerning the acceptable means of making a payment on 758
872	919		the amounts owed to the assignee as set forth pursuant to subdivisions 759
873	920		(1) and (2) of this subsection. Any notice required under this subsection 760
874	921		shall be effective upon the date such notice is provided. 761
	922	+	Raised Bill No. 1339
	923	+
	924	+
	925	+
	926	+	LCO No. 4237 25 of 26
	927	+
875	928		(f) When providing the written notice required under subsection (e) 762
876	929		of this section, the assignee may rely on the last recorded security 763
877	930		interest of record in identifying the name and mailing address of the 764
878	931		holder of such interest, unless the holder of such interest is the plaintiff 765
879	932		in an action pending in Superior Court to enforce such interest, in which 766
880	933		case the assignee shall provide the written notice to the attorney 767
881	934		appearing on behalf of the plaintiff. 768
882	935		(g) Each aspect of a foreclosure, sale or other disposition under this 769
883	936		section, including, but not limited to, the costs, [attorney] attorney's fees, 770
884	937		method, advertising, time, date, place and terms, shall be commercially 771
885	938		reasonable, and, for actions commenced on or after July 1, 2026, such 772
886	939		attorney's fees shall not exceed fifteen per cent of the amount of any 773
887	940		judgment that is entered. Costs and reasonable [attorneys'] attorney's 774
888	941		fees incurred by the assignee as a result of any foreclosure action or 775
889	942		other legal proceeding brought pursuant to this section and directly 776
890	943		related to the proceeding shall be taxed in any such proceeding against 777
891	944		each person having title to any property subject to the proceedings. Such 778
892	945		costs [and fees] may be collected by the assignee at any time after 779
893		-	demand for payment has been made by the assignee. 780 Raised Bill No. 1339
894		-
895		-
896		-	LCO 4237 25 of 25
897		-
	946	+	demand for payment has been made by the assignee. 780
898	947		This act shall take effect as follows and shall amend the following
899	948		sections:
900	949
901	950		Section 1 October 1, 2025 12-195h
902	951		Sec. 2 October 1, 2025 7-254
903	952		Sec. 3 October 1, 2025 7-258
904	953		Sec. 4 October 1, 2025 7-239
905	954		Sec. 5 October 1, 2025 49-92o
906	955		Sec. 6 October 1, 2025 49-92p
907	956
908		-	BA Joint Favorable
	957	+	Statement of Purpose:
	958	+	To (1) reduce the interest rate for certain municipal tax liens, and (2)
	959	+	provide that certain attorney's fees (A) may not be received, claimed or
	960	+	collected until commencement of a foreclosure action or a suit on the
	961	+	debt, and (B) shall not be more than fifteen per cent of the amount of any
	962	+	judgment.
	963	+	Raised Bill No. 1339
	964	+
	965	+
	966	+
	967	+	LCO No. 4237 26 of 26
	968	+
	969	+
	970	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	971	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	972	+	underlined.]
909	973