Louisiana Senate Bill SB37

Louisiana 2019 Regular Session

• Introduced: 3/20/19
• Refer: 3/20/19
• Refer: 4/8/19
• Report Pass: 4/29/19
• Engrossed: 5/1/19
• Refer: 5/2/19
• Report Pass: 5/20/19
• Enrolled: 6/1/19
• Chaptered: 6/11/19
• Passed: 6/11/19

Caption

Authorizes the office of debt recovery to collect delinquent debts on behalf of local government subdivisions. (8/1/19) (EN INCREASE SG RV See Note)

Impact

The enactment of SB 37 is significant as it amends existing laws to clearly include local government entities in the definitions and processes surrounding debt collection. This change means that municipalities and parishes will gain new tools and authority to refer debts, including those related to public services, to the Office of Debt Recovery. The bill retains certain protections, however, ensuring that debt related to unpaid public school fees is exempted from this collection process. This could improve local fiscal health by enabling more timely recovery of funds owed to local authorities.

Summary

Senate Bill 37 aims to enhance the capabilities of local government subdivisions in Louisiana by authorizing them to participate in the state's income tax refund offset program for collecting delinquent debts. This bill provides a framework for local governments to refer delinquent debts to the Office of Debt Recovery, thereby streamlining the collection process for outstanding debts owed to various local agencies. The legislation seeks to empower local governments to better manage and recover unpaid debts, which could include taxes and other financial obligations owed to them.

Sentiment

The sentiment surrounding SB 37 appears largely supportive among legislators who view it as a necessary step to enhance the financial capabilities of local governments. Proponents argue that empowering local entities will pave the way for improved fiscal responsibility and contribute to the overall financial stability of local governments in Louisiana. While there were minimal formal objections noted, the sentiment reflects a consensus on the need for local governments to have more effective tools for managing financial obligations.

Contention

Some concerns may arise regarding the implications of expanding debt collection authority to local governments. While the bill aims to facilitate recovery of debts owed to local entities, critics may argue about the potential for overreach or aggressive collection practices. Furthermore, the exclusion of student fees from the debt collection processes signifies an effort to protect vulnerable populations, indicating that while the bill intends to empower local governance, it is also cognizant of the need to maintain specific protections for residents.