Establishes the Property Equity Protection Act to protect property owners from losing their equity when their property is seized to pay a debt to the government by allowing ample time to pay off the debt and adequate notice of due process.

Rhode Island Property Equity Protection Act – Plain English Summary

This bill creates a new law in Rhode Island called the "Property Equity Protection Act," which is designed to protect homeowners and property owners from losing the full value of their property when the government seizes it to collect an unpaid debt, such as overdue taxes. Under current law, if a property owner falls behind on a government debt, they can lose their entire property — including any value built up over time (called "equity") — even if the debt owed is much smaller than what the property is worth. This bill aims to address that situation.

The bill would give property owners more time to pay off what they owe before the government can take their property, and it would require the government to give property owners clearer, more formal notice of their rights throughout the process. The goal is to ensure that people understand what is happening and have a fair chance to settle their debts before losing their home or land entirely.

This legislation would affect any Rhode Island property owner who owes a debt to a government agency — most commonly in cases involving unpaid property taxes. It would also affect local governments and tax authorities, who would need to follow new procedures before seizing property. The bill has been introduced in the Rhode Island Senate and referred to the Senate Judiciary Committee, where it will be reviewed before any further action is taken.