HB1800 (2018) Detail

Relative to usury.


HB 1800-FN-LOCAL - AS INTRODUCED

 

 

2018 SESSION

18-2338

06/08

 

HOUSE BILL 1800-FN-LOCAL

 

AN ACT relative to usury.

 

SPONSORS: Rep. Marple, Merr. 24; Rep. Comeau, Carr. 5

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill states that the maximum rate of interest is 4 percent.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2338

06/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to usury.

 

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

 

1  Findings.  The general court finds that a survey comparing the maximum interest permitted by statute for any accounts that are overdue is notably much lower that what is currently shown in the New Hampshire statutes and is deemed unjust enrichment.  

2  Trade and Commerce; Rate of Interest.  Amend RSA 336:1, I to read as follows:

336:1  Rate of Interest.

I.  The annual rate of interest in all business transactions in which interest is paid or secured[, unless otherwise agreed upon in writing,] shall equal [10] a simple interest rate of 4 percent.  [No consumer credit transaction, as defined in RSA 358-K:1, V, shall be subject to this paragraph.  If agreed upon in writing, interest on business transactions may include charging other than simple interest.]  Any interest more than such rate is ipso facto usury.  Violation of this section automatically establishes a penalty of $10,000 payable to the state treasury by the violator.

3  Effective Date.  This act shall take effect April 1, 2018.

 

LBAO

18-2338

12/11/17

 

HB 1800-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to usury.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Assessments, Fees and Fines

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

 

METHODOLOGY:

This bill sets the maximum interest for business transactions in which interest is paid at 4 percent.  The bill makes an interest rate higher than 4 percent usury and subject to a penalty of $10,000.  

 

The New Hampshire Banking Department indicated it does not have enforcement authority over RSA 336, but many entities chartered and licensed by the Banking Department would have to comply with the proposed legislation.  The Department would not require additional personnel or resources as result of this bill.  Many entities chartered and licensed by the Banking Department will have to comply with the law and most of those entities are not currently subject to an interest rate cap.  The Department assumes if these entities become subject to a rate cap, it would impact their financial viability and some may choose to stop offering credit products in New Hampshire.  The Banking Department’s budget is funded from assessments, fees and fines paid by licensed and chartered entities.  If the entities are impacted by the bill it would also affect the revenue collected by the Department, however the impact cannot be determined.

 

The New Hampshire Municipal Association indicates this bill would have no impact on municipal revenue because the statute is not applicable to interest charged by municipalities.  The Association assumes the bill may lower the interest rate that municipalities are required to pay vendor thereby reducing expenditures.  The potential impact on expenditures is indeterminable.

 

The Department of Administrative Services, Division of Accounting Services is not aware of any charges currently billed to or collected by the Department.  If there were instances of interest charged on overdue accounts by the Department, it would not be of a material amount to state revenue.

 

The New Hampshire Association of Counties indicates this bill would have no impact on county revenues or expenditures.

 

AGENCIES CONTACTED:

New Hampshire Banking Department, New Hampshire Municipal Association, Department of Administrative Services and New Hampshire Association of Counties

 

Links

HB1800 at GenCourtMobile

Action Dates

Date Body Type
Feb. 7, 2018 House Hearing
Feb. 14, 2018 House Hearing
Feb. 21, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote

Bill Text Revisions

HB1800 Revision: 2551 Date: Dec. 12, 2017, 11:58 a.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Commerce and Consumer Affairs HJ 1 P. 24
Feb. 7, 2018 ==CANCELLED== Public Hearing: 02/07/2018 09:30 AM LOB 302
Feb. 14, 2018 ==RESCHEDULED== Public Hearing: 02/14/2018 09:30 AM LOB 302
Feb. 20, 2018 Subcommittee Work Session: 02/20/2018 09:00 AM LOB 305
Feb. 21, 2018 Executive Session: 02/21/2018 LOB 302
March 6, 2018 Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 17-0; CC) HC 9 P. 11
Committee Report: Inexpedient to Legislate (Vote 17-0; CC)
March 6, 2018 Inexpedient to Legislate: MA VV 03/06/2018 HJ 6 P. 21