Texas House Bill HB2076

Texas 2011 - 82nd Regular

• Out of House Committee: 5/5/11
• Introduced: 3/2/11
• Refer: 3/8/11

Caption

Relating to the authority of a municipality or county to contract with a vendor for the collection of certain debts.

Impact

The passage of HB 2076 is likely to streamline the debt collection process for municipalities and counties by enabling them to leverage external resources. By allowing local governments to contract vendors, the bill seeks to enhance their capacity to recover debts, which can directly benefit city and county revenues. Additionally, the measure sets a cap on contractor fees, permitting a maximum of 30% collection fee based on the amount collected. This could incentivize private vendors to pursue debts more aggressively while ensuring local governments do not pass excessive fees onto debtors.

Summary

House Bill 2076 focuses on the authority of municipalities and counties in Texas to contract with vendors for the collection of specific debts. As outlined in the bill, local governments can hire public or private vendors to help collect debts associated with civil cases, which include unpaid fines, fees, and court costs, provided these debts are more than 60 days past due. The legislation introduces clear guidelines to facilitate effective debt recovery while allowing local authorities some flexibility in managing overdue payments.

Contention

Despite its potential benefits, there may be points of contention surrounding the implementation of HB 2076, particularly regarding the ethical implications of outsourcing public debt collection. Critics may raise concerns about the practices employed by vendors, especially regarding the treatment of individuals who have fallen behind on payments. Questions regarding accountability and transparency in the collection process may emerge, as local governments shift the responsibility of collection to external entities. Moreover, there may be apprehension about the burden on individuals facing collection actions, especially those with limited financial means.