Establishes the office of debt recovery at the Dept. of Revenue for the collection of delinquent debts owed to certain governmental entities (EN SEE FISC NOTE GF RV See Note)
Impact
The implementation of HB 629 significantly alters how the state handles delinquent debts by centralizing the recovery process under a dedicated office. This approach aims to enhance efficiency, reduce redundancy in collecting debts across different agencies, and provide timely recovery of funds critical for state revenue. Agencies, particularly those lacking contracts with the Attorney General's office, will be mandated to refer delinquent debts to this new office, ensuring a consistent and aggressive collection strategy. The bill also facilitates the use of an electronic registry to keep comprehensive records on debtors and debts owed to the state.
Summary
House Bill 629 establishes the Office of Debt Recovery within the Louisiana Department of Revenue to focus on the collection of delinquent debts owed to the state. The bill outlines the authority of the office to collect both tax and non-tax debts, allowing for an integrated approach to managing various outstanding obligations owed to state agencies. This office will engage with financial institutions to gather information through a data match system, streamlining the process of identifying debtors and collecting owed amounts. Notably, the bill permits the imposition of fees up to 25% of the final liability on debtors as part of the collection process.
Sentiment
Sentiment regarding HB 629 varies among stakeholders. Proponents argue that creating the Office of Debt Recovery will optimize collection efforts and ensure better accountability for debts owed to the state. They express confidence that it will lead to improved financial health for the state. Conversely, some critics raise concerns about potential privacy issues related to the data collection practices outlined in the bill, particularly regarding how personal financial information may be shared or disclosed during collection efforts.
Contention
Some contention surrounding HB 629 arises from the inclusion of provisions that allow for the collection of fees from debtors, which could be perceived as punitive, especially for individuals struggling to meet their financial obligations. Additionally, there are concerns regarding the transparency and oversight of the newly established office and its collaborations with financial institutions, particularly about data privacy and the security of sensitive information. Critics fear that the aggressive collection policies may disproportionately affect vulnerable populations.
Establishes the La. Debt Recovery Program at the Dept. of Revenue for the collection of delinquent debts owed to certain governmental entities (RE INCREASE SG EX See Note)
Authorizes the office of debt recovery to utilize the offset of certain gaming winnings as a means to collect delinquent debt owed to state agencies (EN SEE FISC NOTE GF RV See Note)
Prohibits class action lawsuits from being brought against the Dept. of Revenue or the office of debt recovery within the Dept. of Revenue (EN SEE FISC NOTE GF EX See Note)
Limits the fees assessed by the office of debt recovery on delinquent debt that originates from certain criminal fines, fees, and costs (OR DECREASE SG RV See Note)
Authorizes the office of debt recovery to utilize the offset of certain gaming winnings as a means to collect delinquent debt owed to state agencies (EN SEE FISC NOTE GF RV See Note)