HB 1631-FN – VERSION ADOPTED BY BOTH BODIES
19Mar2014… 0428h
04/24/14 1404s
2014 SESSION
08/10
HOUSE BILL 1631-FN
AN ACT relative to debt collection and small claims.
SPONSORS: Rep. C. Rice, Merr 27; Rep. Butler, Carr 7
This bill restricts income which is available for periodic payment of judgments or for collection of debts. This bill also increases the maximum amount for small claims actions.
This bill is a request of the debt collection study committee established by 2013, 28:1.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19Mar2014… 0428h
04/24/14 1404s
14-2848
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fourteen
AN ACT relative to debt collection and small claims.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Periodic Payment of Judgments. Amend RSA 524:6-a to read as follows:
524:6-a Periodic Payment of Judgments.
I. Whenever judgment is rendered against any person in this state, the court in which the judgment is rendered shall either at the time of rendition of the judgment inquire of the defendant as to the defendant's ability to pay the judgment in full or, upon petition of the plaintiff after judgment, order the defendant to appear in court for such inquiry. The court may at either time order the defendant to make such periodic payments as the court in its discretion deems appropriate. If the court orders the defendant to make periodic payments at the time of rendition of judgment, the order shall not provide for payments to begin until after the appeal period has expired. Failure to make such periodic payments shall constitute civil contempt of court unless the judge, upon inquiry, finds that the failure was the result of a change in circumstances, or the failure was not intentional or in bad faith, or for other good cause. The court may order the appropriate agencies to make an investigation and recommendation as to the defendant's ability to pay the judgment. The judgment may be enforced against any property of any kind of the debtor, except such income and property as is now exempt from attachment or execution. Unless the parties otherwise agree, after an order for periodic payments has been issued by the court, no writ of execution shall be issued by the court without prior notice to the defendant.
II. Any income from a retirement plan or arrangement qualified for tax exemption purposes, as defined by RSA 511:2, XIX, shall be exempt from periodic payments up to the amount of 50 times the minimum hourly wage as established by the Fair Labor Standards Act, per week. If the defendant shares income and expenses with another person with whom he or she lives, and both people receive income from such a retirement plan or arrangement, any income from such a retirement plan or arrangement and belonging to either person shall be exempt from periodic payments up to the amount of 100 times the minimum hourly wage as established by the Fair Labor Standards Act, in total, per week.
2 Assignability of Assistance. Amend RSA 167:25 to read as follows:
167:25 Assignability of Assistance. All assistance given hereunder shall be inalienable by any assignment or transfer and shall be exempt from levy or execution under the laws of this state including periodic payments on any judgment of any kind under RSA 524:6-a.
3 Assignment or Attachment of Benefits. Amend RSA 282-A:159, I to read as follows:
I. Any assignment, pledge, or encumbrance of any right to benefits which are or may become due or payable under this chapter shall be void. Such rights to benefits shall be exempt from levy, execution, attachment, or any other remedy whatsoever provided for the collection of debt or taxes. Benefits received by any individual[, so long as they are not mingled with other funds of the recipient,] shall be exempt from any remedy whatsoever for the collection of all debts except debts incurred for necessaries furnished to such individual or such individual's spouse or dependents during the time when such individual was unemployed. Any waiver of any exemption provided for in this section shall be void except for child support obligations and food stamp overissuances as provided in RSA 282-A:31 and this section and, if the individual so elects, withholding of federal income tax under rules adopted by the commissioner.
4 New Paragraph; Exemptions from Attachment and Execution. Amend RSA 511:2 by inserting after paragraph XIX the following new paragraph:
XX. One computer.
5 Small Claim Defined. Amend RSA 503:1, I to read as follows:
I. A small claim is any right of action not involving the title to real estate in which the debt or damages, exclusive of interest and costs, does not exceed [$7,500] $10,000.
6 Effective Date.
I. Section 5 of this act shall take effect July 1, 2015.
II. The remainder of this act shall take effect January 1, 2015.
LBAO
14-2848
Amended 04/28/14
HB 1631-FN FISCAL NOTE
AN ACT relative to debt collection and small claims.
FISCAL IMPACT:
The Judicial Branch states this bill, as amended by the Senate (Amendment #2014-1404s), may decrease state expenditures by an indeterminable amount in FY 2015 and each year thereafter. There is no impact on state, county and local revenue, or county and local expenditures.
METHODOLOGY:
The Judicial Branch state this bill amends law relating to debt collection and small claims. The Branch states the increasing of the maximum amount of a small claim from $7,500 to $10,000 may reduce costs because less time is needed to process a small claim that a civil writ in the district division of the circuit court. The Branch states if this bill results in a civil writ now being filed as a small claim, case costs will be reduced by $30.09 in FY 2016 and each year thereafter. The Branch does not have sufficient information to state there will be a decrease in excess of $10,000, but states with the volume of civil writs (3,636 in FY 2012 and 3,072 in FY 2013) the possibility does exist that enough claims between the $7,500 and $10,000 will be shifted from a civil writ to a small claim. All costs are estimated based on case weight information from the last needs assessment completed in 2005. Since that timeframe there have been various changes that may impact the costs, such as the creation of the circuit court and the increase in self-represented litigants.
The Judicial Council states this bill will have no impact on the indigent defense delivery system. The Council states the proposed bill deals with civil issues not criminal issues that involve a right to counsel, therefore there is no impact on state expenditures.