Connecticut Seal

General Assembly

 

Substitute Bill No. 472

    February Session, 2016

 

*_____SB00472JUD___033016____*

AN ACT CONCERNING THE ASSIGNMENT OF LIENS FILED BY A MUNICIPAL TAX COLLECTOR AND A STUDY OF THE MUNICIPAL TAX LIEN FORECLOSURE PROCESS BY THE CONNECTICUT LAW REVISION COMMISSION.

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 Section 12-195h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):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 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 include information sufficient to identify (A) the property that is subject to the lien, (B) the name and address 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.

Sec. 2. (Effective from passage) The Connecticut Law Revision Commission shall study the adequacy of state processes governing the foreclosure of tax liens by a municipality. Such study shall include, but not be limited to: (1) The feasibility of establishing an expedited process for tax foreclosures on small parcels of land on which taxes have not been paid for ten years or more; (2) an examination of the constraints that municipalities encounter when foreclosing on such tax liens; and (3) an examination of the due process issues which affect municipalities and interested parties when foreclosing on such tax liens. On or before January 1, 2017, the commission shall present its recommendations, including recommendations for proposed statutory revisions, if any, to the joint standing committees of the General Assembly having cognizance of matters relating to municipalities and the judiciary and to the Chief Court Administrator.

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

Section 1

October 1, 2016

12-195h

Sec. 2

from passage

New section

JUD

Joint Favorable Subst.