Louisiana House Bill HB422

Louisiana 2023 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23
• Refer: 4/10/23

Caption

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)

Impact

By capping the collection fees at a lower percentage, HB 422 aims to alleviate some financial pressure on debtors, particularly those facing fines and costs arising from criminal proceedings. This change could positively impact many individuals who find themselves struggling to pay such debts, potentially reducing the overall amount of debt owed and preventing further financial distress. The bill is set to apply to final delinquent debts referred to the office of debt recovery after January 1, 2023, which have not yet been fully collected.

Summary

House Bill 422 seeks to amend existing legislation governing the office of debt recovery within the Louisiana Department of Revenue. The proposed bill limits the additional collection fee that can be assessed on delinquent debts that originate from certain criminal fines, fees, or costs to no more than 15% of the total liability of the final debt. This is a significant reduction from the previous maximum of 25%, which could place a heavier financial burden on individuals who fail to pay these debts in a timely manner.

Sentiment

The general sentiment around HB 422 has been cautiously supportive among some lawmakers and advocacy groups who recognize the need for fairer practices in debt collection, especially for debts resulting from criminal justice fees. However, there are differing opinions on whether this reduction in fees is sufficient to meaningfully address the broader issues of financial equity and access to justice for those with delinquent debts.

Contention

Notable points of contention surrounding HB 422 include concerns from certain state agencies about the potential decrease in revenue that could result from lower collection fees. While proponents argue that the bill creates a more equitable system for debtors, some agency representatives express fears that the bill could hinder their ability to recover adequate amounts from delinquent debts. This debate highlights the tension between fiscal responsibility for state agencies and the need for compassion and understanding for individuals facing financial hardship.