House Bill #5199 (2017)

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN ENERGY PROGRAM

Allows recovery for the past due balance of any PACE assessment on a transfer of commercial property ownership at a tax sale by a PACE lien against the transferee.

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Changes since original draft

  • 2017 – H 5199
  • 2017 – H 5199 SUBSTITUTE A
  • ========
  • LC000193
  • LC000193/SUB A
  • ========
  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN
  • ENERGY PROGRAM
  • Introduced By: Representative Marvin L. Abney
  • Date Introduced: January 25, 2017
  • Referred To: House Finance
  • (by request)
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Section 39-26.5-6 of the General Laws in Chapter 39-26.5 entitled "Property Assessed Clean Energy Program" is hereby amended to read as follows:
  • 39-26.5-6. Priority of PACE lien.
  • (a) A PACE lien on a residential property shall be: subordinate to all liens on the residential property in existence at the time the residential PACE lien is filed; subordinate to a first mortgage on the residential property recorded after such PACE lien is filed; and superior to any other lien on the residential recorded after such PACE lien is filed. This subsection shall not affect the status or priority of any other municipal or statutory lien.
  • (b) At the time of a transfer of property ownership of a residential property, including by foreclosure, the past due balances of any special assessment under this chapter shall be due for payment. In the event of a foreclosure action, the past due balances shall include all payments on a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise agreed by the PACE lender, all payments on the PACE assessment that become due after the date of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.
  • (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial property in existence at the time the PACE lien is filed, subject to the consent of the senior mortgage holder on the property; senior to all liens filed or recorded after the time the PACE lien is created; but junior to a municipal tax lien.
  • (d) At the time of a transfer of property ownership of a commercial property, including by foreclosure or tax sale, the past due balances of any PACE assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE lender, all payments of PACE assessments that become due after the date of transfer by foreclosure, tax sale or otherwise shall be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.
  • SECTION 2. This act shall take effect January 1, 2017. ======== LC000193 ========
  • (d) At the time of a transfer of property ownership of a commercial property, including by tax sale, in accordance with §44-9-32, or foreclosure, the past due balances of any PACE assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE lender, all payments of PACE assessments that become due after the date of transfer by tax sale, in accordance with §44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.
  • SECTION 2. This act shall take effect on March 1, 2017. ======== LC000193/SUB A ========
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • OF
  • A N A C T
  • RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN
  • ENERGY PROGRAM
  • ***
  • This act would allow recovery for the past due balance of any PACE assessment on a transfer of commercial property ownership at a tax sale by a PACE lien against the transferee.
  • This act would take effect January 1, 2017. ======== LC000193 ========
  • ***
  • This act would include a tax sale as a transfer of property ownership that would trigger the past due balances of any PACE assessment.
  • This act would take effect on March 1, 2017. ======== LC000193/SUB A ========

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for PASSAGE

June 27, 2017 at 7:27pm
Yeas: 71 / Nays: 0 / Not voting: 4 / Recused: 0
Legislator Vote
Rep. Abney Y
Rep. Ackerman Y
Rep. Ajello Y
Rep. Almeida Y
Rep. Amore Y
Rep. Azzinaro Y
Rep. Barros Y
Rep. Bennett Y
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson Y
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale Y
Rep. Corvese Y
Rep. Costantino NV
Rep. Coughlin Y
Rep. Craven Y
Rep. Cunha Y
Rep. Diaz NV
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi Y
Rep. Fogarty Y
Rep. Giarrusso Y
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard Y
Rep. Johnston Y
Rep. Kazarian NV
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia Y
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall Y
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin Y
Rep. McNamara Y
Rep. Mendonca Y
Rep. Messier Y
Rep. Morgan Y
Rep. Morin Y
Rep. Nardolillo Y
Rep. Newberry Y
Rep. Nunes Y
Rep. O'Brien Y
Rep. O'Grady Y
Rep. Perez Y
Rep. Phillips NV
Rep. Price Y
Rep. Quattrocchi Y
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts Y
Rep. Ruggiero Y
Rep. Serpa Y
Rep. Shanley Y
Rep. Shekarchi Y
Rep. Slater Y
Rep. Solomon Y
Rep. Tanzi Y
Rep. Tobon Y
Rep. Ucci Y
Rep. Vella-Wilkinson Y
Rep. Walsh Y
Rep. Williams Y
Rep. Winfield Y