By Sabrina Bates
Media outlets across the state, particularly local newspapers, are paying close attention to a proposed bill that would shift foreclosure notices from newspapers of general circulation to the Secretary of State’s website. Such notices already are published on a free website provided by the Tennessee Press Association (TPA).
Senate Bill 1324 amends a current law that requires parties to publish a notice of foreclosure at least three times in a newspaper in a county where a trustee sale is set to be made. Instead of posting the notice in a newspaper, the amendment would allow foreclosing parties to publish the notice on the Secretary of State’s website for at least 20 continuous days before a foreclosure sale at $200 per posting.
SB 1324 was introduced by Sen. Paul Bailey, a Republican farmer from Sparta who represents six counties in East Tennessee. The House version, HB 1355, is sponsored by Rep. Andrew Farmer, a Sevierville attorney.
On Tuesday, Feb. 21, the bill was headed to the Senate’s State and Local Government Committee and the House Civil Justice Committee of the 113th Tennessee General Assembly for consideration. On Tuesday afternoon, the Senate committee deferred action on SB1324 to March 7.
Sen. John Stevens, a Huntingdon attorney who represents Benton, Carroll, Gibson, Henry, Obion, and Weakley counties, said he plans to vote against the legislation. Stevens is a member of the Senate’s Finance, Ways, and Means Committee.
Stevens said after talking with the bankers’ association, local media representatives, and local bankers, he has decided to not vote in favor of the bill.
“While I agree with some of the reforms in the bill dealing with some technical issues surrounding foreclosures, the new website through the secretary of state’s office does not seem to make sense given the TPA’s pre-existing site for public notices. I support the idea of maximizing the reach of notices so more people will show up to buy a house in foreclosure at a sale, I’m not comfortable that the new website is going to be any more effective than our current system,” Stevens noted.
Daniel Richardson, CEO and president of Magic Valley Publishing, which operates 15 local newspapers in West Tennessee including this publication, said proposed legislation that targets publication of notices this year could ultimately turn them into online scavenger hunts.
“The bill the Bankers’ Association has lobbied for to remove foreclosure notices from newspapers, if passed, would drastically reduce the awareness of the foreclosures and therefore the participation of the sale. The bill would not save taxpayers any money because their tax bill is not going down. Any money saved by not informing the public of these events would be spent somewhere else. If East Tennessee and metro politicians have their way to keep chipping away at public notices, you may never know where all that ‘saved money’ is going,” Richardson said.
Richardson expressed the same sentiment as Stevens regarding government-managed websites. TPA offers a public notice website that mirrors all public notices in the state’s member newspapers. Public notices are uploaded to the portal, tnpublicnotice.com, which is a free website for visitors.
“Government websites rarely work the way they’re supposed to. TPA and member newspapers have addressed the issue of free access to public notices years ago with the website tnpublicnotice.com. It cost taxpayers nothing and provides free access to all Tennessee public notices to anyone with an internet connection. And for the often-forgotten portion of our population that still does not have internet access, the notices are in the local newspaper,” Richardson stressed.
House member Rep. Jay Reedy of Erin, who represents Benton County, said he needs to research the bill and talk to the sponsors before expressing an opinion.
Reedy may be reached at 1-615-741-7098 or [email protected]. Stevens can be contacted at 1-615-741-4576 or [email protected]
