H.B. 554 State Debt Collection Amendments

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Every vote

• 8 yes, 1 no, 3 absentHouse Political Subdivisions Committee: vote to approve it · Feb 19, 2026Who voted how
• 68 yes, 0 no, 7 absentFinal House vote · Feb 25, 2026Who voted how
• 5 yes, 0 no, 2 absentSenate Government Operations and Political Subdivisions Committee: vote to approve it · Mar 2, 2026Who voted how

Hearings and debates

• Feb 19, 2026 House Political Subdivisions Committee▶ Watch
  Transcript (13 turns)

  1. Committee chair (presiding)40:46

     The minutes are approved. First we'll go to item number one, house bill 5 54. Representative Burton State Debt Collection Amendments. Welcome representative. Go ahead

  2. Rep. Jefferson S. Burton40:58

     Th Thank you, Mr. Chair and Committee for hearing this bill. Um, I have with me Mr. Paul Bauer, the manager of the State Office of Debt Collection. Uh, this bill simply updates code to increase the efficiency of the debt collection, uh, office and codifies some standard practices. Um, in the bill provisions, a highlight, you see that it directs the State Tax Commission to apply overpayment of corporate income tax that, uh, is owed, uh, under the Crime Victims Act. Uh, it also, um, provides a government entity may engage in collection, uh, activities regardless of whether or not the amount has been reduced to a judgment. Essentially what that means is the debt collection office can, uh, seek redress for, uh, late, uh, payments, uh, even if, uh, that hasn't been established in a court. So, if a, if a, a person, uh, is debt is 60 days to 90 days, I think you generally collect it 90 days. Uh, but, and then finally it allows the Office of Debt Collection to maintain up to one year of expenses in the State Debt Collection Fund. Uh, so, so that they have operating costs as they're pretty much self, uh, funded in that role. And, and with that, I'll, I'll stop and, and take any questions.

  3. Committee chair (presiding)42:21

     Thank you Representative Burton to the committee for clarifying questions. I don't see any, let's go to the public. Who would like to speak to this? Raise your hand please. I see none will close up public comment, period. And come back to the Committee for Action. Representative Peterson.

  4. Rep. Karen M. Peterson42:44

     Thank you. I'd like to make a motion to pass out house bill 5 5 4 with a favorable recommendation. The motion is to recommend Favorably House Bill 5 54.

  5. Committee chair (presiding)42:51

     Is there a discussion to the motion Representative Hansen?

  6. Rep. Leah Hansen42:57

     Sorry, Mr. Chair. I did have a question. I just didn't get to my button in time. I'm sorry. Okay, Go. We have a motion, but go ahead, ask your question. Um, I just wanted to understand the, the, um, that part where it's talking about when you're giving the money that, that the debt collection, is it the Debt Collection commission that's allowed to keep the money? Um, I mean, just like if there is a late payment to, to have the authority to do that?

  7. Paul Bowers, Manager, State Office of Debt Collection43:26

     Uh, yes. Generally, how we Go ahead and introduce yourself. Oh, yes, I apologize. Paul Bowers, manager of the Office of State Debt Collection. Um, yeah, generally how we operate is, uh, we collect debts on behalf of, uh, pretty much all state government agencies and some local government agencies as well, uh, at the point where those debts become delinquent. So those, those agencies will first try to, to collect the debts themselves by contacting the debtors. And, uh, if they're unsuccessful, uh, after a few months, they generally turn it over to my office. Then we start to pursue our own collection remedies. So.

  8. Rep. Leah Hansen44:02speaker not certain

     Okay. Thank you. Thank you.

  9. Committee chair (presiding)44:05

     Further discussion to the motion. I see none Representative Burton for summation.

  10. Rep. Jefferson S. Burton44:12

      Yeah. Thank you, committee. Thank you, Mr. Chair. Um, again, this, this just, uh, is, is designed to increase efficiencies in the debt collection, uh, office. And appreciate your vote.

  11. Committee chair (presiding)44:22

      Thank you. Representative Peterson, I'll waive the motion is to recommend Favorably House Bill 5 54 state debt collection amendments. All in favor say aye. Aye. Aye. Opposed? Say no. No. Motion carries the Representative Hansen. The motion passes with Representative Hansen in opposition.

  12. Committee chair (presiding)44:41

      Representative Arthur, I apologize. Okay, thank you. Representative Peterson, or Representative Burton.

  13. Unknown speaker44:48speaker not certain

      Thank you. And you representative. Thank you, Representative Peterson As well.

• Feb 25, 2026 House floor debate▶ Watch
  Transcript (10 turns)

  1. Reading Clerk52:28

     House Bill 5 54 State debt collection amendments by Representative Burton. This bill was heard in political subdivisions with the vote of 8 1 3

  2. Speaker (presiding)52:38

     Representative Burton.

  3. Rep. Jefferson S. Burton52:40

     Thank you Mr. Speaker. Uh, this bill simply increases the efficiency of the state debt collection office and adds some technical language. Uh, specifically it allows the office, uh, with overpayment of corporate income tax, if that, uh, client owes money to the crime victim's restitution act, it allows that money to be moved into that account to pay to pay that, uh, pardon me, that bill. It also, um, stipulates that if, even if a judgment, a reduction judgment has been made, that the office can pursue debt collection on a, on a valid debt. And finally, it allows the office to, uh, keep a one year operating budget, uh, to maintain the functionality of the office year to year. And with that, I'll pause to answer any questions.

  4. Speaker (presiding)53:33

     Thank you Representative Burton discussion to the bill Representative Hansen.

  5. Rep. Leah Hansen53:41

     Thank you Mr. Speaker Pro. Tom, will the, um, sponsor yield to a question? Please

  6. Speaker (presiding)53:46

     Sponsor yield? No Sponsor declines.

  7. Rep. Leah Hansen53:50

     That's just fine. I, um, I, I just wonder if this could cause problems for those who don't have control over their own funds, um, when they're trying to get their money back. I would hope that there would be some leeway for people to be able to pay their debts, but not to have it be controlled by government. Thank you.

  8. Speaker (presiding)54:14

     Thank you Representative Hansen. Further discussion to the bill seeing non Representative Burton for summation.

  9. Rep. Jefferson S. Burton54:20

     Thank you, Mr. Speaker. This bill does allow people who are honestly trying to pay their debts to enter into a, uh, an agreement, um, a monthly payment type agreement so they can honor the debts that they owe. Uh, this just, uh, bill is simply designed to give the debt collection agency, uh, a little more organization and the ability to operate year, year by year. And so with that, I'd appreciate your vote.

  10. Speaker (presiding)54:44

      Thank you. Representative Burton voting is open on voting is open on house Bill 5 54. State collection debt collection amendments, seeing all present, having voted voting will be closed. House bill 5 54, having received 68 yay votes, zero nay votes passes the house will be transmitted to the Senate for further consideration matter. Meeting clerk

• Mar 2, 2026 Senate Government Operations and Political Subdivisions Committee▶ Watch
  Transcript (9 turns)

  1. Committee chair1:24:39

     five five four state debt collection amendments.

  2. Rep. Jefferson S. Burton1:24:45

     Thanks, Mr. Chair. Thanks. Committee. Um, this bill is fairly simple. It just seeks to increase the efficiency of the debt collection office of the state and codify standard practices. I have with me, uh, Paul Bauer, manager of the debt collection office. Um, and, uh, in the, uh, highlight provisions is, is pretty simple. Uh, just, uh, working with the tax commission if there's an overpayment in a corporate income tax and that, that, uh, entity has, uh, a debit to the Crime Restitution Act, it allows, uh, the office to take that and apply it to that. It, it also states that, that the government entity, in this case, the collections office, may engage in collection activity regardless of what the amount due has been reduced to a judgment. And it allows the collection office finally to maintain a years of expenses, uh, in the date debt or state debt collection fund. Uh, and with that open, any questions?

  3. Committee chair1:25:47

     Have 30 questions? Yes, sir. Alright. Just questions for the sponsor. Seeing none, let's go to the public for public comment on this one. Alright, we'll close public comment and come back for further consideration from the committee. Senator Mikel, thank you.

  4. Sen. Michael K. McKell1:26:19

     I move that we favorably recommend the bill before us.

  5. Committee chair1:26:21

     Okay. The bill before us is house Bill 5, 5 4. I'll, uh, let's go to back to the sponsor. I'll waive.

  6. Unknown speaker1:26:29speaker not certain

     Thank you. Waive, waive. Okay.

  7. Committee chair1:26:32

     All those in favor of house Bill 5 54. Uh, state debt collections out favorably say aye. Aye. Aye. Any opposed? That is Senator Plumb.

  8. Unknown speaker1:26:51speaker not certain

     Nothing yet. All right.

  9. Committee chair1:26:55

     Rule that passes unanimously. Alright. Thank you Mr. Chair. Thank you Representative.