Senate Bill No. 1339 seeks to amend existing laws concerning the assignment of liens for unpaid taxes, sewer assessments, and water charges by municipalities. The bill allows municipalities to assign these liens for consideration, with the terms negotiated between the municipality and the assignee. Notably, it introduces a new interest rate of twelve percent per annum on delinquent tax obligations for assignments executed on or after July 1, 2026, down from the previous rate of eighteen percent. Additionally, the bill mandates that all assignments executed on or after July 1, 2022, must be documented in a written contract that outlines various obligations, including communication methods with property owners, attorney's fees capped at fifteen percent of any judgment for actions initiated after July 1, 2026, and the requirement for assignees to provide written notice of the assignment to property owners and mortgage holders within sixty days.

The bill also repeals and replaces certain sections of the general statutes to clarify the assignment process for unpaid sewerage and water charges, ensuring that municipalities can designate collectors for these charges and that assignees have similar rights as municipalities regarding lien enforcement. It emphasizes the need for transparency and accountability in the assignment process, including prohibitions on using certain attorneys for foreclosure actions and requiring regular reports to the municipality's tax collector. Overall, SB 1339 aims to enhance the clarity and enforceability of lien assignments while providing protections for property owners and ensuring that the assignment process is conducted in a commercially reasonable manner.

Statutes affected:
Raised Bill: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
BA Joint Favorable: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p
File No. 183: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p