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Committee approves amended lien and delinquent-property bill after bankersand municipal negotiations
Summary
House Bill 16 95 was approved by the Senate committee as amended to restore original lien-perfection timelines, require notice to existing lienholders and remove a proposed land-commissioner petition process. Sponsors said the changes resolved objections from municipal and banking stakeholders.
The Senate committee passed House Bill 16 95 as amended, a measure that creates a foreclosure process for municipalities to address dilapidated or neglected properties while clarifying timelines and notice requirements for lien recording.
Senator Steve Crowell, presenting the amendment, said the updated language returns certain filing time frames to prior practice (reducing proposed extensions such as 365 days back toward original timelines) and makes explicit a requirement to notify existing lienholders before city foreclosure steps. The amendment also removed a proposed mechanism allowing municipalities to petition the commissioner of state lands to void a sale; sponsors said that provision raised procedural concerns and was taken out after stakeholder discussions.
John Wilkerson, general counsel for the Municipal League, told the committee the changes represent "no known opposition" after weekend negotiations among municipal officials, bankers and other stakeholders. Paul Calvert, a private resident who spoke against the bill, said he had personal experience with liens and appealed one he described as unlawful; he urged more oversight and better appeal remedies.
Senators asked whether the amendment changed the priority of mortgage liens; sponsors and municipal representatives said the bill does not alter lien priority: it requires notice to lienholders and clarifies procedures but does not jump ahead of mortgage lenders in the normal priority scheme. Senator Petty specifically sought that assurance and was told the amendment addressed bankers' notification concerns.
The committee adopted the amendment by voice vote and then passed the bill as amended. Sponsors said the billas revisedis intended to give cities a defined process to foreclose only after statutory prerequisites (including nuisance findings) are met, and to ensure transparency for lienholders and property owners.
