Louisiana Senate Bill SCSR3

Louisiana 2010 Regular Session

Caption

Requests a study of centralizing the collection of all or a portion of non-tax government debt receivables in the Department of Revenue, and whether such action is likely to result in a timely increase in revenues from delinquent non-tax debts, as well as a significant improvement in the return on total investment for Louisiana.

Impact

If implemented, the centralization could mean a shift in how state agencies handle debt receivables, with the Department of Revenue being better positioned to manage these collections. This move could alleviate some of the burdens on individual state agencies, which may currently lack the resources and experience to optimize their collection processes effectively. Furthermore, the bill suggests that once centralized, the collection mechanism could be extended to local municipalities and special districts, creating a potential state-wide impact.

Summary

SCSR3 is a study request that aims to investigate the feasibility of centralizing the collection of non-tax government debts under the Louisiana Department of Revenue. The bill emphasizes the current budget challenges faced by the state and proposes a systematic approach to enhance revenue collection efficiency. It seeks to understand how consolidating debt collection could potentially increase revenue from delinquent non-tax debts and improve the return on investment for the state government.

Sentiment

The general sentiment towards SCSR3 revolves around the necessity for improving the state's financial situation through better management of debts. Many stakeholders view this approach as a strategic enhancement of operational efficiencies and are optimistic that it will yield positive financial outcomes. However, thorough analyses and consultations would be required to comprehensively assess the potential drawbacks or limitations of such centralization.

Contention

Some points of contention may arise regarding the methods and practices that will be employed in the centralization process. There are concerns about whether the state should develop its own infrastructure for collections or rely on private collection agencies, as mentioned in the bill. The bill's discussions also underscore the necessity to review existing statutes and regulations to ensure that the Department of Revenue has the appropriate authority to undertake this expanded role.