AN ACT RELATING TO PROPERTY -- PUBLIC AUCTIONS BY ELECTRONIC OR REMOTE PROCEDURES

2025 Regular Session Introduced by Cherie Cruz and 1 co-sponsor

Requires in-person municipal real estate auctions; remote/online sales allowed only if Superior Court orders after a hearing showing in-person is not feasible.

03/11/2025 Committee recommended measure be held for further study

Summary — HB 5959 / LC002114: "Public Auctions by Electronic or Remote Procedures" (Rhode Island)

Status: Introduced Feb 28, 2025; referred to House Municipal Government & Housing. Hearing scheduled Mar 7, 2025; committee recommended measure be held for further study on Mar 11, 2025. Effective date: upon passage.

Note: The materials provided also include unrelated text from a Michigan bill with the number 5959. This summary addresses the Rhode Island bill (LC002114) titled “Public Auctions by Electronic or Remote Procedures.”

Main purpose

To require that municipal public auctions of real estate (including tax-sale auctions) be conducted in person, and to prohibit electronic or remote auctions unless a Rhode Island Superior Court authorizes them after a hearing that finds an in-person auction is not feasible for the specific case. The stated objective is to increase public scrutiny of municipal real estate auction sales.

Key provisions

Adds Chapter 50 to Title 34 of the Rhode Island General Laws (34-50-1).

34-50-1(a): Public auctions of real estate by any city or town must be conducted in person at the time and place specified in the legal advertisement and must follow applicable Rhode Island statutes governing such sales.

34-50-1(b): Electronic or remote procedures are prohibited for public real estate auctions unless the Rhode Island Superior Court, after a hearing, issues an order authorizing remote procedures and finds that an in-person auction is not feasible under the particular circumstances.

34-50-1(c): Declares the purpose to bring greater public scrutiny to municipal public auction sales.

Section 2: Bill takes effect upon passage.

Who would be affected

Municipalities (cities and towns) that conduct public auctions of real estate, including tax-sale processes.

Property owners subject to municipal auctions and potential bidders.

Court system (Superior Court) required to hold hearings and issue case‑specific orders when remote auctions are requested.

Auction service providers and electronic/online auction platforms; these services would be restricted unless court-authorized.

Potentially county/town clerks, treasurers, and municipal staff who administer and advertise auctions.

Potential impacts and considerations

Limits municipalities’ ability to shift auctions to fully online formats, preserving in-person access and local transparency.

Could reduce bidder participation from remote buyers and may affect sale outcomes or bidding prices.

May increase logistical burdens and costs for in-person events (security, venue, staffing).

The court‑authorization pathway creates a case‑by‑case exception but adds procedural steps and potential delays.

In emergencies or where in‑person gatherings are impractical (e.g., pandemics, severe weather), reliance on court orders could complicate timely sales.

For further tracking: monitor House Municipal Government & Housing committee actions and any amendments or explanatory reports that clarify definitions (e.g., scope of “public auctions”) or procedure for petitioning the Superior Court for authorization.