SB204: relative to collection of debts owed the state.

CHAPTER 346

SB 204-FN-A – FINAL VERSION

16May2007… 1485h

06/27/07 2211CofC

06/27/07 2378eba

2007 SESSION

07-1224

08/04

SENATE BILL 204-FN-A

AN ACT relative to collection of debts owed the state.

SPONSORS: Sen. Gottesman, Dist 12; Sen. Foster, Dist 13; Sen. DeVries, Dist 18; Rep. Lasky, Hills 26; Rep. Dokmo, Hills 6

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows state agencies and departments to refer to the attorney general any uncollected debt owed to the state for collection.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16May2007… 1485h

06/27/07 2211CofC

06/27/07 2378eba

07-1224

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to collection of debts owed the state.

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

346:1 New Section; Collection of Debts Owed The State. Amend RSA 7 by inserting after section 15 the following new section:

7:15-a Collection of Debts Owed to the State.

I. State agencies and departments may refer any uncollected debt owed to the state to the attorney general for collection after determining that a debt owed to the state cannot be collected through means other than an action in court. All debts collected pursuant to this section shall be credited to the debt recovery fund established in paragraph IV.

II. No debt may be referred to the attorney general unless:

(a) There have been at least 2 documented attempts in writing to notify the debtor of the existence of the debt and of the fact that the debt may be assigned to the attorney general for collection if it is not paid;

(b) At least 30 days have elapsed from the last notice attempt; and

(c) All applicable administrative remedies have been exhausted.

III. The attorney general may:

(a) Compromise the claim.

(b) Extend for a reasonable period the time for payment of the debt by agreeing to accept monthly or other periodic payments.

(c) Cancel the debt or cause it to be cancelled if the attorney general finds, after investigation, that any debt due and owing to the state cannot be reasonably collected.

IV.(a) There is established in the office of the state treasurer a nonlapsing fund to be known as the debt recovery fund which shall be kept distinct and separate from all other funds. The debt recovery fund is established to receive all recoveries of debts paid to the state under this section.

(b) A percentage of each amount collected under this section shall be retained in the debt recovery fund for the purpose of funding the costs of all debt collection. The percentage shall be set annually by the attorney general in consultation with the commissioner of the department of administrative services at 150 percent of the total costs and expenses of the debt collection during the prior fiscal year divided by the total debt collected. Any amount remaining in the fund at the end of a fiscal year in excess of 200 percent of the costs and expenses of debt collection during the fiscal year shall be paid in a proportional amount to the accounts for which they were collected.

(c) The treasurer shall deposit in the debt recovery fund all amounts collected by the department of justice under this section. The attorney general is authorized to accept, budget, and expend moneys in the debt recovery fund received from any party without the approval of the governor and council for the purposes of:

(1) After deducting the amounts authorized in subparagraph IV(b), transferring on a quarterly basis a proportional amount recovered to the accounts for which they were collected; and

(2) Recruitment, training, administration, overhead, and supervision of such assistant attorneys general and support staff as necessary for the purposes of this section.

(d) All moneys in the debt recovery fund shall be continually appropriated to the department of justice and shall not lapse.

(e) The state treasurer, upon approval of the attorney general, shall pay the expenses of recruitment, training, administration, and supervision of assistant attorneys general and support staff as necessary for the purposes of this section, and transfer a proportional amount of unretained funds recovered to the accounts for which they were collected.

V. For purposes of this section, the term “debt” shall include fines and other debts or amounts owed to the state.

VI. Notwithstanding any other provision of this section, and subject to the supervision of the attorney general as to matters of law, state agencies and departments may seek collection of debts in small claims court without referring the debt to the attorney general. The authorization granted to seek collection of debts in small claims court under this paragraph shall not be construed to constitute a waiver of the sovereign immunity of the state, or any other defense, right, immunity, or other protection under law, including any statutory provision.

346:2 Attorney General; Duties. Amend RSA 7:6 to read as follows:

7:6 Powers and Duties as State's Attorney. The attorney general shall act as attorney for the state in all criminal and civil cases in the supreme court in which the state is interested, and in the prosecution of persons accused of crimes punishable with death or imprisonment for life. The attorney general shall have and exercise general supervision of the criminal cases pending before the supreme and superior courts of the state, and with the aid of the county attorneys, the attorney general shall enforce the criminal laws of the state. The attorney general shall have the power to collect uncollected debts owed to the state as set forth in RSA 7:15-a.

346:3 New Subparagraph; Debt Recovery Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (252) the following new subparagraph:

(253) Moneys deposited in the debt recovery fund by the treasurer under RSA 7:15-a, IV.

346:4 New Section; Position Established. Amend RSA 7 by inserting after section 15-a the following new section:

7:15-b Debt Collection Attorney. The department of justice shall have the authority to hire a full-time support attorney and such staff as may be necessary, who shall be responsible solely for all duties associated with the collection of debt owed to the state. The position shall be funded through the debt recovery fund established in RSA 7:15-a, IV.

346:5 Appropriation. The amount of $100,000 for the fiscal year ending June 30, 2008 is hereby appropriated to the debt recovery fund established by RSA 7:15-a, IV for the purpose of start-up costs, provided that 25 percent of the recoveries collected each quarter shall be paid into the general fund until $100,000 has been paid into the fund. The appropriation in this section shall be in addition to any other sums appropriated to the department for such purpose. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

346:6 Effective Date. This act shall take effect July 1, 2007.

Approved: July 16, 2007

Effective: July 1, 2007