Connecticut Seal

General Assembly

 

Substitute Bill No. 1151

    January Session, 2007

*_____SB01151JUD___041107____*

AN ACT CONCERNING ALIAS TAX WARRANTS AND EXECUTIONS AGAINST DEBTS DUE TO JUDGMENT DEBTORS SERVED UPON FINANCIAL INSTITUTIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-162 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) Any collector of taxes, in the execution of tax warrants, shall have the same authority as state marshals have in executing the duties of their office, and any constable or other officer authorized to serve any civil process may serve a warrant for the collection of any tax assessed, and the officer shall have the same authority as the collector concerning taxes committed to such officer for collection.

(b) Upon the nonpayment of any property tax when due, demand having been made therefor as prescribed by law for the collection of such tax, an alias tax warrant may be issued by the tax collector, which may be in the following form:

"To a state marshal of the County of ...., or any constable of the Town of .... Greeting: By authority of the state of Connecticut you are hereby commanded to collect forthwith from .... of .... the sum of .... dollars, the same being the amount of a tax with interest or penalty and charges which have accumulated thereon, which tax was levied by (insert name of town, city or municipality laying the tax) upon (insert the real estate, personal property, or both, as the case may be,) of said .... as of the .... day of ..... (In like manner insert the amount of any other property tax which may have been levied in any other year, including interest or penalty and charges which have accumulated thereon). In default of payment of said amount you are hereby commanded to levy for said tax or taxes, including interest, penalty and charges, hereinafter referred to as the amount due on such execution, upon any goods and chattels of such person and dispose of the same as the law directs, notwithstanding the provisions of subsection (j) of section 52-352b, and, after having satisfied the amount due on such execution, return the surplus, if any, to him; or you are to levy upon the real estate of such person and sell such real property pursuant to the provisions of section 12-157, to pay the amount due on such execution; or you shall, in accordance with the provisions of subsection (d) of section 12-162, make demand upon the main office of any [banking] financial institution indebted to such person, subject to the provisions of section 52-367a or 52-367b, as if judgment for the amount due on such execution had been entered, for that portion of any type of deposit to the credit of or property held for such person, not exceeding in total value the amount due on such execution; or you are to garnishee the wages due such person from any employer, in the same manner as if a wage execution therefor had been entered, in accordance with section 52-361a.

Dated at .... this .... day of .... A.D. 20.., Tax Collector."

(c) Any officer serving an alias tax warrant pursuant to this section shall make return to the collector of such officer's actions thereon within ten days of the completion of such service and shall be entitled to collect from such person the fees allowed by law for serving executions issued by any court. Any state marshal or constable, authorized as provided in this section, who executes such warrant and collects any delinquent municipal taxes as a result thereof shall receive, in addition to expenses otherwise allowed, a percentage of the taxes collected pursuant to such warrant, calculated at the rate applicable for the levy of an execution as provided in section 52-261. The minimum fee for such service shall be thirty dollars. Any officer unable to serve such warrant shall, within sixty days after the date of issuance, return such warrant to the collector and in writing state the reason it was not served.

(d) With respect to alias tax warrants served upon financial institutions by any collector of taxes or officer authorized as provided in this section:

(1) The collector or officer shall not serve more than one alias tax warrant per taxpayer at a time, including copies thereof, and, after service upon one financial institution, shall not serve the same alias tax warrant or a copy thereof upon another financial institution until having received confirmation from the preceding financial institution that the taxpayer had no funds at the preceding financial institution available for collection. If an alias tax warrant is returned by a financial institution to the collector or officer partially satisfied, the collector or officer shall not serve the alias tax warrant or a copy thereof upon another financial institution, but the collector instead may issue a replacement alias tax warrant to collect the balance due.

(2) Before the collector serves, or directs any officer to serve, more than three alias tax warrants upon a particular financial institution on the same day, the collector or officer shall serve upon such financial institution a request for information that complies with subdivision (3) of this subsection. No such alias tax warrant may be served upon a financial institution with respect to any taxpayer unless the financial institution, in a recent response to such request for information, has indicated that the financial institution is indebted to such taxpayer. For the purposes of this subdivision, a response is considered recent if the alias tax warrant is served within one hundred eighty days after the date such response is received.

(3) The request for information required by subdivision (2) of this subsection shall be served upon the financial institution in accordance with subdivision (4) of this subsection and shall include (A) the name and address of each taxpayer who is the subject of an alias tax warrant to be served by the collector or officer, provided no request for information shall include more than two hundred fifty taxpayers, (B) the address to which the response may be mailed or delivered or a facsimile number to which the response may be transmitted, (C) in the case of a request for information transmitted via facsimile by an officer, the name, address, judicial district, badge number and phone number of such officer, and (D) a statement in substantially the following form:

"To (insert name of financial institution): In accordance with section 12-162 of the general statutes, you are hereby commanded to report to (insert name of municipality or officer), at the address or facsimile number specified in this request, whether the financial institution is indebted to the taxpayer or taxpayers listed in this request."

(4) The request for information prescribed by subdivision (3) of this subsection shall be in writing and shall be: (A) Delivered to the main office of a financial institution having its main office in this state; (B) delivered to a branch office of a financial institution that does not have its main office in this state, provided such branch office has been designated by the financial institution for such purposes in accordance with regulations adopted by the Banking Commissioner, in accordance with chapter 54; or (C) transmitted via facsimile, provided the facsimile message is transmitted to a facsimile number and addressed to the attention of a recipient or department designated by the financial institution for such purposes in accordance with regulations adopted by the Banking Commissioner, in accordance with chapter 54. A request for information received, whether by facsimile or otherwise, after five o'clock p.m. on a business day, or on a day other than a business day, shall be deemed to have been received by the financial institution on the next business day.

(5) Upon receipt of a request for information that complies with subdivision (3) of this subsection, the financial institution shall respond to such request for information by reporting either that the financial institution is indebted to one or more of the taxpayers listed in the request for information, and listing the name or names of such taxpayers, or that the financial institution is not indebted to any of the taxpayers listed in the request for information. The financial institution shall mail, deliver or transmit such response: (A) In the case of a request for information listing less than one hundred taxpayers, no later than five business days following the date the request for information was received; or (B) in the case of a request for information listing one hundred or more taxpayers, but not more than two hundred fifty taxpayers, no later than ten business days following the date the request for information was received. Once a request for information has been served upon a financial institution by a collector or officer on behalf of a municipality, an additional request for information may not be served upon such financial institution by such collector or any officer on behalf of the same municipality until the financial institution has had an opportunity to respond as provided in this subdivision. For the purposes of the response required by this subdivision, the financial institution may select, with respect to each taxpayer listed on the request for information, a specific day falling within the time frame allotted by this subdivision for determining the presence or absence of indebtedness, and the financial institution shall not be responsible for reporting on the presence or absence of indebtedness on any other day.

(6) No financial institution, and no officer, director or employee of such financial institution, shall be liable to any person with respect to any act done or omitted in good faith or through the commission of a bona fide error that occurred despite reasonable procedures maintained by the financial institution to prevent such errors in complying with the provisions of this subsection.

(7) For the purposes of this subsection, "financial institution" has the same meaning as provided in subsection (a) of section 52-367a.

Sec. 2. Section 36a-42 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

A financial institution may not disclose to any person, except to the customer or the customer's duly authorized agent, any financial records relating to such customer unless the customer has authorized disclosure to such person or the financial records are disclosed in response to (1) a certificate signed by the Commissioner of Administrative Services or the Commissioner of Social Services pursuant to the provisions of section 17b-137, (2) a lawful subpoena, summons, warrant or court order as provided in section 36a-43, (3) interrogatories by a judgment creditor or a demand by a levying officer as provided in sections 52-351b and 52-356a, (4) a certificate issued by a medical provider or its attorney under subsection (b) of section 17b-124, provided nothing in this [subsection] subdivision shall require the provider or its attorney to furnish to the financial institution any application for medical assistance filed pursuant to an agreement with the IV-D agency under subsection (c) of section 17b-137, (5) a certificate signed by the Commissioner of Veterans' Affairs pursuant to section 27-117, [or] (6) the consent of an elderly person or the representative of such elderly person provided to a person, department, agency or commission pursuant to section 17b-454, provided the financial institution shall have no obligation to determine the capacity of such elderly person or the representative of such elderly person to provide such consent, or (7) a request for information served upon the financial institution pursuant to subsection (d) of section 12-162, as amended by this act.

Sec. 3. Subsection (b) of section 52-367a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(b) Execution may be granted pursuant to this section against any debts due from any financial institution to a judgment debtor which is not a natural person. If execution is desired against any such debt, the plaintiff requesting the execution shall make application to the clerk of the court. The application shall be accompanied by a fee of thirty-five dollars payable to the clerk of the court for the administrative costs of complying with the provisions of this section which fee may be recoverable by the judgment creditor as a taxable cost of the action. The clerk shall issue such execution containing a direction that the officer serving such execution shall make demand (1) upon the main office of any financial institution having its main office within the county of the serving officer, or (2) if such main office is not within the serving officer's county and such financial institution has one or more branch offices within such county, upon an employee of such a branch office, such employee and branch office having been designated by the financial institution in accordance with regulations adopted by the Banking Commissioner, in accordance with chapter 54, for the payment of any debt due to the judgment debtor, and, after having made such demand, shall serve a true and attested copy thereof, with the serving officer's actions thereon endorsed, with the financial institution officer upon whom such demand is made. The serving officer shall not serve more than one such execution per judgment debtor at a time, including copies thereof. After service of such execution upon one financial institution, the serving officer shall not serve the same execution or a copy thereof upon another financial institution until after receiving confirmation from the preceding financial institution that the judgment debtor had insufficient funds at the preceding financial institution available for collection to satisfy the execution.

Sec. 4. Subsection (b) of section 52-367b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(b) If execution is desired against any such debt, the plaintiff requesting the execution shall make application to the clerk of the court. The application shall be accompanied by a fee of thirty-five dollars payable to the clerk of the court for the administrative costs of complying with the provisions of this section which fee may be recoverable by the judgment creditor as a taxable cost of the action. In a IV-D case, the request for execution shall be accompanied by an affidavit signed by the serving officer attesting to an overdue support amount of five hundred dollars or more which accrued after the entry of an initial family support judgment. If the papers are in order, the clerk shall issue such execution containing a direction that the officer serving such execution shall, within seven days from the receipt by the serving officer of such execution, make demand (1) upon the main office of any financial institution having its main office within the county of the serving officer, or (2) if such main office is not within the serving officer's county and such financial institution has one or more branch offices within such county, upon an employee of such a branch office, such employee and branch office having been designated by the financial institution in accordance with regulations adopted by the Banking Commissioner, in accordance with chapter 54, for payment of any such nonexempt debt due to the judgment debtor and, after having made such demand, shall serve a true and attested copy of the execution, together with the affidavit and exemption claim form prescribed by subsection (k) of this section, with the serving officer's actions endorsed thereon, with the financial institution officer upon whom such demand is made. [If the officer serving such execution has made an initial demand pursuant to this subsection within such seven-day period, the serving officer may make additional demands upon the main office of other financial institutions or employees of other branch offices pursuant to subdivision (1) or (2) of this subsection, provided any such additional demand is] The serving officer shall not serve more than one such execution per judgment debtor at a time, including copies thereof. After service of such execution upon one financial institution, the serving officer shall not serve the same execution or a copy thereof upon another financial institution until after receiving confirmation from the preceding financial institution that the judgment debtor had insufficient funds at the preceding financial institution available for collection to satisfy the execution. Any such service upon another financial institution shall be made not later than forty-five days from the receipt by the serving officer of such execution.

Sec. 5. (Effective from passage) Not later than July 1, 2007, the Law Revision Commission shall commission a task force to study the feasibility of permitting the service of alias tax warrants and other forms of execution upon financial institutions by electronic means. The task force shall be composed of representatives from the banking industry, municipal governments, persons representing the interests of debtors and other interested parties.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2007

12-162

Sec. 2

October 1, 2007

36a-42

Sec. 3

October 1, 2007

52-367a(b)

Sec. 4

October 1, 2007

52-367b(b)

Sec. 5

from passage

New section

BA

Joint Favorable C/R

JUD

JUD

Joint Favorable Subst.