Connecticut Seal

General Assembly

 

Raised Bill No. 472

February Session, 2016

 

LCO No. 3275

 

*03275_______JUD*

Referred to Committee on JUDICIARY

 

Introduced by:

 

(JUD)

 

AN ACT CONCERNING THE ASSIGNMENT OF LIENS FILED BY A MUNICIPAL TAX COLLECTOR.

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

Section 1. Section 12-195h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(a) Any municipality, by resolution of its legislative body, as defined in section 1-1, may assign, for consideration, any and all liens filed by the tax collector to secure unpaid taxes in excess of two thousand five hundred dollars on real property as provided under the provisions of this chapter. The consideration received by the municipality shall be negotiated between the municipality and the assignee. The assignee or assignees of such liens shall have and possess the same powers and rights at law or in equity as such municipality and municipality's tax collector would have had if the lien had not been assigned with regard to the precedence and priority of such lien, the accrual of interest and the fees and expenses of collection and of preparing and recording the assignment. The assignee shall have the same rights to enforce such liens as any private party holding a lien on real property including, but not limited to, foreclosure and a suit on the debt.

(b) The assignee, or any subsequent assignee, shall provide written notice of an assignment, not later than thirty days after the date of such assignment, to: [any]

(1) Any holder of a mortgage, on the real property that is the subject of the assignment, provided such holder is of record as of the date of such assignment. Such notice shall include information sufficient to identify [(1)] (A) the property that is subject to the lien and in which the holder has an interest, [(2)] (B) the name and addresses of the assignee, and [(3)] (C) the amount of unpaid taxes, interest and fees being assigned relative to the subject property as of the date of the assignment; and

(2) The taxpayer against whom such lien has been filed. Such notice shall contain information sufficient to identify (A) the property that is subject to the lien, (B) the name and addresses of the assignee, (C) the amount of unpaid taxes, interest and fees being assigned relative to the subject property as of the date of the assignment, and (D) the terms of any proposed payment plan offered by the assignee that delineates the amount of the unpaid taxes, the interest owing on the unpaid taxes and any fees that are to be paid by the taxpayer to the assignee. Such notice shall also inform the taxpayer that the assignee may seek to recover any costs and reasonable attorneys' fees from the taxpayer in the event that the assignee initiates a foreclosure action or other legal proceeding pursuant to this section to collect on the debt.

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

Section 1

October 1, 2016

12-195h

Statement of Purpose:

To: (1) Limit the assignment of liens on unpaid taxes to liens in excess of two thousand five hundred dollars, and (2) ensure that taxpayer notification safeguards are in place when a municipality elects to assign tax liens filed by the municipality's tax collector to a third party.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]