Bill Text - HB1591 (2026)

Relative to the release of escrowed funds by the judicial branch.


Revision: Dec. 10, 2025, 10:05 a.m.

HB 1591-FN - AS INTRODUCED

 

 

2026 SESSION

26-2922

09/08

 

HOUSE BILL 1591-FN

 

AN ACT relative to the release of escrowed funds by the judicial branch.

 

SPONSORS: Rep. Potenza, Straf. 19; Rep. Bernardy, Rock. 36; Rep. Bjelobrk, Graf. 5; Rep. Cambrils, Merr. 4; Rep. Kofalt, Hills. 32; Rep. Korzen, Coos 7; Rep. Kuttab, Rock. 17

 

COMMITTEE: Judiciary

 

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ANALYSIS

 

This bill requires the release of escrowed funds by the judicial branch upon receipt of a final order, and provides for penalties for noncompliance.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

26-2922

09/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty-Six

 

AN ACT relative to the release of escrowed funds by the judicial branch.

 

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

 

1  New Chapter; Administrative Office of the Courts.  Amend RSA by inserting after chapter 490-K the following new chapter:  

CHAPTER 490-L

ADMINISTRATIVE OFFICE OF THE COURTS

490-L:1  Release of Escrowed Funds Pursuant to Final Court Orders.

I. The administrative office of the courts (AOC) shall promptly disburse any funds or property held in escrow, registry, or trust by or under the control of the judicial branch to the party or parties entitled to such funds pursuant to a final, non-appealable court order or judgment.

II. After entry of a final order and expiration of the appeal period, the AOC shall not withhold or delay disbursement except as expressly required by federal law or by a subsequent court order entered after the judgment. Internal policy or discretionary review shall not be grounds to deny or delay disbursement.

III.  The AOC shall complete disbursements within 30 days of receipt of a copy of the final court order awarding the funds.

IV.(a) If the AOC fails to disburse within the 30-day period without lawful cause, interest at the statutory judgment rate shall accrue in favor of the entitled party from the date the disbursement was due until payment is made.

?? (b) The entitled party may apply to the superior court for an order directing immediate release and awarding reasonable attorney’s fees and costs incurred to obtain compliance.

?? (c) Awards of interest and fees shall be paid from the judicial branch escrow/registry account holding the funds, or if insufficient, from other judicial branch appropriations.

V.?(a) The remedies in paragraph IV apply retroactively to instances in which, on or after the date 5 years prior to this section’s effective date, the AOC failed, without lawful cause, to disburse funds within 30 days after a final, non-appealable order.

?? (b) For such past instances, interest at the statutory judgment rate shall accrue beginning 31 days after the AOC’s receipt of the final order and continue until payment; reasonable attorney’s fees and costs are likewise available if court action is required to secure release.

?? (c) A claimant seeking retroactive remedies shall file a written claim with the AOC within 18 months of this section’s effective date, attaching the final order and proof of submission to the AOC. If not resolved within 60 days, the claimant may petition the superior court for relief under subparagraph (b). Nothing herein revives claims finally adjudicated or satisfied before the effective date.

?? (d) This paragraph establishes civil, remedial relief only and shall not be construed to impose criminal sanctions or impair any vested rights.

VI.?(a) On or before September 1 of each year, the AOC shall post on the judicial branch website and submit to the speaker of the house of representatives and the president of the senate a report listing funds or property held in escrow, registry, or trust that have been subject to a final, non-appealable order for more than 30 days without disbursement.

?? (b) The report shall include the case docket number, amount held, date of the final order.  The report shall exclude personal identifiers and confidential information beyond what is necessary to comply with this paragraph.

2  Effective Date.  This act shall take effect upon its passage.  

 

LBA

26-2922

12/4/25

 

HB 1591-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the release of escrowed funds by the judicial branch.

 

FISCAL IMPACT:   This bill does not provide funding, nor does it authorize new positions.

 

 

Estimated State Impact

 

FY 2026

FY 2027

FY 2028

FY 2029

Revenue

$0

$0

$0

$0

Revenue Fund(s)

None

Expenditures*

$0

$45,000

$45,000

$45,000

Funding Source(s)

General Fund

Appropriations*

$0

$0

$0

$0

Funding Source(s)

None

*Expenditure = Cost of bill                *Appropriation = Authorized funding to cover cost of bill

 

METHODOLOGY:

This bill establishes new requirements for the release of escrowed and registry funds by the Administrative Office of the Courts (AOC), including a 30-day deadline for disbursement after a final, non-appealable order; limited grounds for withholding; penalties for noncompliance; retroactive application for five years; and an annual public report identifying any escrowed funds not disbursed within 30 days.

The Judicial Branch states that, in practice, courts do not withhold escrowed funds without lawful cause.  The Branch assumes that failure of a recipient to file a W-9 constitutes “lawful cause” to delay disbursement, and therefore the Branch does not anticipate any expenditures associated with the bill’s penalty or interest provisions. However, the bill creates a new annual reporting obligation requiring the AOC to identify all escrowed or registry funds held for more than 30 days after a final order, investigate the reason for any withholding, and prepare a report for publication and distribution to legislative leadership.  The Branch states this work would require a review of escrowed funds across the entire statewide court system, assessment of withholding grounds in each case, and gather the data into the required report.  Because the Branch’s case-management financial services team is already working beyond capacity, the additional requirements of this bill would require at least a part-time Case Management Financial Services Technician.  The Branch estimates the cost of this part-time technician, compensated at Labor Grade 22, would be $44,481 in FY 2027, FY 2028, and FY 2029.  It is assumed if the position is authorized the costs for FY 2028 and FY 2029 would be included in the Branch's agency budget request.

AGENCIES CONTACTED:

Judicial Branch