LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 23, 2013 TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Urban Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2021 by Rodriguez, Eddie (Relating to the authority of a municipality or county to contract for the collection of certain debts; authorizing a fee.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 140 of the Local Government Code to authorize the governing body of a municipality or the commissioners court of a county to contract with a private attorney or public or private vendor to collect debt more than 60 days overdue from a civil case, unpaid fine, fee or court cost. The municipality or county may authorize a collection fee of not more than 30 percent of the amount of debt collected to compensate the attorney or vendor collecting the debt. The Office of Court Administration (OCA) indicated no significant fiscal impact to the state is anticipated. Local Government Impact There could be a positive fiscal impact as a result of the collection of debt owed to a municipality or a county that would offset costs incurred to contract with a private attorney, or a public or private vendor to collect the overdue debt; however, those amounts would vary depending on the amount of debt owed and the amount paid to contract for debt collection. OCA indicated that the instances in which fees in a civil case are unpaid is infrequent and any increased revenue collected under the terms of the bill would be very small; therefore, no significant fiscal impact is anticipated. The City of DeSoto indicated to the Comptroller of Public Accounts that the city has not had any unpaid debts from the types of civil cases specified in the provisions of the bill in 14 years; therefore, DeSoto estimates no significant fiscal impact. Source Agencies:212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts LBB Staff: UP, KKR, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 23, 2013
TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Urban Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2021 by Rodriguez, Eddie (Relating to the authority of a municipality or county to contract for the collection of certain debts; authorizing a fee.), As Introduced
TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Urban Affairs
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2021 by Rodriguez, Eddie (Relating to the authority of a municipality or county to contract for the collection of certain debts; authorizing a fee.), As Introduced
Honorable Harold V. Dutton, Jr., Chair, House Committee on Urban Affairs
Honorable Harold V. Dutton, Jr., Chair, House Committee on Urban Affairs
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2021 by Rodriguez, Eddie (Relating to the authority of a municipality or county to contract for the collection of certain debts; authorizing a fee.), As Introduced
HB2021 by Rodriguez, Eddie (Relating to the authority of a municipality or county to contract for the collection of certain debts; authorizing a fee.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 140 of the Local Government Code to authorize the governing body of a municipality or the commissioners court of a county to contract with a private attorney or public or private vendor to collect debt more than 60 days overdue from a civil case, unpaid fine, fee or court cost. The municipality or county may authorize a collection fee of not more than 30 percent of the amount of debt collected to compensate the attorney or vendor collecting the debt. The Office of Court Administration (OCA) indicated no significant fiscal impact to the state is anticipated.
Local Government Impact
There could be a positive fiscal impact as a result of the collection of debt owed to a municipality or a county that would offset costs incurred to contract with a private attorney, or a public or private vendor to collect the overdue debt; however, those amounts would vary depending on the amount of debt owed and the amount paid to contract for debt collection. OCA indicated that the instances in which fees in a civil case are unpaid is infrequent and any increased revenue collected under the terms of the bill would be very small; therefore, no significant fiscal impact is anticipated. The City of DeSoto indicated to the Comptroller of Public Accounts that the city has not had any unpaid debts from the types of civil cases specified in the provisions of the bill in 14 years; therefore, DeSoto estimates no significant fiscal impact.
Source Agencies: 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
LBB Staff: UP, KKR, TP
UP, KKR, TP