H.B. 554 State Debt Collection Amendments: transcript

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.

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.

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?

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.

Okay. Thank you. Thank you.

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.

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?

I move that we favorably recommend the bill before us.

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

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.

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

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.

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.