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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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
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.
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
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| 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 | |||
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LOCAL: |
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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
| 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 |
March 6, 2018: Inexpedient to Legislate: MA VV 03/06/2018 HJ 6 P. 21
: Committee Report: Inexpedient to Legislate (Vote 17-0; CC)
March 6, 2018: Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 17-0; CC) HC 9 P. 11
Feb. 21, 2018: Executive Session: 02/21/2018 LOB 302
Feb. 20, 2018: Subcommittee Work Session: 02/20/2018 09:00 AM LOB 305
Feb. 14, 2018: ==RESCHEDULED== Public Hearing: 02/14/2018 09:30 AM LOB 302
Feb. 7, 2018: ==CANCELLED== Public Hearing: 02/07/2018 09:30 AM LOB 302
Jan. 3, 2018: Introduced 01/03/2018 and referred to Commerce and Consumer Affairs HJ 1 P. 24