SB 142-FN - AS AMENDED BY THE SENATE
4/19/01 0927s
2001 SESSION
05/01
SENATE BILL 142-FN
AN ACT relative to the collection of debts owed to the state.
SPONSORS: Sen. Roberge, Dist 9; Sen. D'Allesandro, Dist 20; Rep. C. Hall, Hills 18; Rep. C. Christensen, Hills 18; Rep. Fields, Hills 18; Rep. R. L'Heureux, Hills 18; Rep. Gonzales, Hills 48
This bill permits various branches of state government to retain private collection agencies or law firms to collect debts owed to the state.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
4/19/01 0927s
01-0160
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand One
AN ACT relative to the collection of debts owed to the state.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; The State and its Government; Treasurer and Accounts; Collection of Debts Due the State. Amend RSA 6 by inserting after section 43 the following new subdivision:
Collection of Debts Due the State
6:44 Collection of Public Debts by Collection Agencies or Law Firms.
I.(a) Agencies, departments, taxing districts, political subdivisions of the state, counties, and cities may retain, by written contract, private collection agencies or law firms for the purpose of collecting debts owed by any person, including any restitution that is being collected on behalf of a crime victim.
(b) The amount of the collection fee as negotiated between the governmental entity and the private collection agency or law firm shall be added to the bill of costs to be paid by the debtor and shall not exceed 35 percent of the amount collected.
II. No debt may be assigned to a collection agency or law firm unless:
(a) There have been at least 3 documented attempts to notify the debtor of the existence of the debt and of the fact that the debt may be assigned to a collection agency or law firm for collection if it is not paid; and
(b) At least 30 days have elapsed from the last notice attempt.
III. Collection agencies or law firms assigned debts under this section shall have only those remedies and powers which would be available to them as assignees of private creditors. The collection agencies or law firms are likewise bound by the provisions of RSA 358-C, governing unfair collection practices.
IV. For purposes of this section, a private collection agency or law firm shall cease its efforts designed to collect the debt and so inform the governmental entity upon the occurrence of any of the following:
(a) The private collection agency or law firm considers the debt noncollectible.
(b) A period of 180 days has elapsed since referral of the debt to the private collection agency or law firm and there has been no response by the debtor or collection of moneys.
(c) Upon demand of a judge having jurisdiction over the debtor in a criminal or civil matter.
V. For purposes of this section, the term "debt" shall include fines and other debts, including the fee required under subparagraph I(b) of this section.
2 Effective Date. This act shall take effect January 1, 2002.
LBAO
01-0160
Amended 4/20/01
SB 142 FISCAL NOTE
AN ACT relative to the collection of debts owed to the state.
FISCAL IMPACT:
The Department of Revenue Administration and the Treasury Department state this bill, as amended by the Senate, may increase state revenue by an indeterminable amount in FY 2002 and each year thereafter. There will be no fiscal impact on county or local revenue or state, county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states it is likely that some of the currently uncollectible tax notices may become revenue to the state if agencies have permission to retain services of private collection agencies or law firms, but that the amount is indeterminable.
The Treasury Department estimates revenues would increase by an indeterminable amount, as costs would be in addition to amounts owed.
The Department of Administrative Services, Office of Cost Containment states it is unable to determine the fiscal impact of this bill. The Office states restitution is collected by the Department of Corrections and court fines are generally collected by the Judicial Branch. There would be no savings or increased recoveries from indigent defendants or indigent recipients of guardian ad litem services, as the agency would continue to provide collection activity up to the time called for placing with a collection agency. A collection agency could add 180 days to the time any debt is outstanding. The Office of Cost Containment currently has the authority under RSA 604-A:9,VII to retain the services of a collection agency if the Commissioner of Administrative Services deems it appropriate.
The New Hampshire Municipal Association states this bill is enabling and does not require any municipality to expend money unless it specifically votes to do so.