Banks Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-1151

Title:

AN ACT CONCERNING ALIAS TAX WARRANTS AND SERVICE OF PROCESS.

Vote Date:

3/6/2007

Vote Action:

Joint Favorable Change of Reference to Judiciary

PH Date:

2/20/2007

File No.:

SPONSORS OF BILL:

Banks Committee

REASONS FOR BILL:

This bill is intended to address the administrative issues that banks must perform when served with a tax warrant and service of process. The bill will authorize the Law Revision Commission to establish a task force to consider electronic service of warrants and other forms of execution.

RESPONSE FROM ADMINISTRATION/AGENCY:

None offered

NATURE AND SOURCES OF SUPPORT:

Rheo Brouillard, CEO, Savings Institute Bank and Trust Company:

This bill modernizes the provisions of service of tax warrants. Because of the increased volume of warrants served, banks need more than 24 hours to respond. Local bank branches may not be equipped to research the requests and would need to forward the requests to a “central” office. This bill requests that the Law Revision Commission explore the 24 hour issue as well as the feasibility of electronic service of processes. This bill would limit the number of warrants served to one at a time per property owner of the delinquent taxes. If the property owner has accounts at multiple banks, the warrants will be to one bank at a time.

NATURE AND SOURCES OF OPPOSITION:

Tim Poloski, Connecticut State Marshal:

The bill's provision for an $8 service fee paid by the municipality is unnecessary – the bank charges the account holder of the delinquent taxes $100 to process the warrant. The problem with serving warrants one at a time is that municipalities are working within a tight timeframe from when taxes are delinquent to when the next tax bill is due. Firm deadlines are needed to insure prompt attention.

Reported by: Hal Smullen, Committee Clerk

Date: 3/9/2007