Bill Details - HB1728 (2018)

HB 1728-FN-LOCAL - AS INTRODUCED

 

 

2018 SESSION

18-2143

05/04

 

HOUSE BILL 1728-FN-LOCAL

 

AN ACT removing the homestead exemption.

 

SPONSORS: Rep. Marple, Merr. 24; Rep. Itse, Rock. 10; Rep. Hoell, Merr. 23

 

COMMITTEE: Municipal and County Government

 

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ANALYSIS

 

This bill removes exemptions to the homestead right under RSA 480.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2143

05/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT removing the homestead exemption.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Statement of Intent.  The general court finds RSA 480:4 to be vague in its failure to express the controlling mandates of Articles 12 and 20 of the Bill of Rights of the New Hampshire Constitution.

2  The Homestead Right; Amount.  Amend RSA 480:1 to read as follows:

480:1  Amount.  Every [person] inhabitant of this Republic is entitled to $120,000 worth of his or her homestead, or of his or her interest therein, as a homestead.  The homestead right created by this chapter shall exist in manufactured housing, as defined by RSA 674:31, which is owned and occupied as a dwelling by the same person but shall not exist in the land upon which the manufactured housing is situated if that land is not also owned by the owner of the manufactured housing.

3  Homestead Right; Exemption from Attachment.  RSA 480:4 is repealed and reenacted to read as follows:

480:4  Exempt from Attachment.  The automatic homestead right is exempt from any and all attachment, levy, or sale on execution and from any liability whatsoever, except by adherence to Part I, Article 20 of the New Hampshire constitution, relative to the right to a jury trial, and the Fifth Amendment to the United States Constitution, which prohibits the taking of private property without due process of law and prohibits the taking of private property for public use, without just compensation.

4  Repeal.  RSA 480:7, relative to the levy of execution against property subject to a homestead right, is repealed.

5  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

18-2143

11/16/17

 

HB 1728-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT removing the homestead exemption.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable

Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill makes changes to the homestead right by removing the exception for the collection of taxes, liens, mortgages and executions and allows for jury trials to enforce any attachment, levy or sale.   

 

The New Hampshire Municipal Association states requiring a jury trial for every tax lien and sale would result in significant increase in municipal expenditures.  The amount is indeterminable due to the circumstances of each possible case.  

 

The Department of Revenue Administration states the number of the existing exceptions to the homestead exemption could apply to debts owed to state, county and local governments, but is most applicable to the collection of taxes.  The proposed legislation would protect up to $120,000 in homestead value from the collection of taxes, including state and local taxes, and therefore could result in a decrease in revenues to the extent the recovery of taxes owed would now be more difficult.  The fiscal impact is indeterminable as the Department has insufficient information to calculate an exact amount.

 

The Department of Health and Human Services (DHHS) indicates the bill will change the process by which the DHHS Estate Recovery Unit (ERU) places liens on real property owned by Medicaid beneficiaries in order to secure repayment of Medicaid costs for long term care services provided to the beneficiaries under RSA 167:14 and RSA 167:16-a.  Additional staff resources of an indeterminate amount will be necessary to participate in jury trials or other proceedings in addition to those currently required.  There are approximately 100 new liens placed per year by the ERU.  The impact on state revenues from estate recoveries from the additional requirement is also indeterminable.

 

The Judicial Branch has provided information that the cost for a full day jury trial in the superior court is estimated to be $2,142 in FY 2019 and $2,157 in FY 2020.  Adding the cost of preliminary hearings, time to write a charge to the jury, and for clerical processing related to the jury would make the cost of a jury trial well in excess of $2,000 per day.  Moreover, should a decision be appealed, several thousand dollars of additional costs would be incurred in judge, law clerk, and staff time at the supreme court.  Thus, even one jury trial brought as a result of this proposed bill could result in a fiscal impact to the judicial branch in excess of $10,000.

 

AGENCIES CONTACTED:

New Hampshire Municipal Association, Department of Revenue Administration, Department of Health and Human Services, Banking Department, and Judicial Branch

 

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Municipal and County Government HJ 1 P. 21
Feb. 13, 2018 Public Hearing: 02/13/2018 02:00 PM LOB 301
Feb. 20, 2018 Executive Session: 02/20/2018 01:00 PM LOB 301
Committee Report: Inexpedient to Legislate (Vote 14-0; CC)
March 6, 2018 Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 14-0; CC) HC 9 P. 29
March 6, 2018 Removed from Consent (Rep. Marple) 03/06/2018 HJ 6 P. 4
March 6, 2018 Suspend House Rule 65 (Reps. Hinch, Shurtleff): MA VV by necessary two-thirds vote 03/06/2018 HJ 6 P. 125
Special Order to 3/15/2018 Without Objection HJ 7 P. 49
March 15, 2018 Suspend House Rule 65; extending deadline for action to 3/22/2018 (Reps. Hinch, Shurtleff): MA VV by necessary two-thirds vote 03/15/2018 HJ 8 P. 69
March 22, 2018 Lay HB 1728 on Table (Rep. J. Belanger): MA RC 274-49 03/22/2018 HJ 10 P. 19

Action Dates

Date Body Type
Feb. 13, 2018 House Hearing
Feb. 20, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
March 15, 2018 House Floor Vote

Bill Text Revisions

HB1728 Revision: 2241 Date: Nov. 17, 2017, 9:01 a.m.