House panel advances bill to expand state debt collection powers

The House Political Subdivisions Committee on Wednesday recommended House Bill 554, State Debt Collection Amendments, sending the bill forward after a brief sponsor presentation and no public opposition.

Representative Burton, the bill sponsor, told the committee that HB 554 "updates code to increase the efficiency of the debt collection office and codifies some standard practices." He said the measure directs the State Tax Commission to apply overpayments of corporate income tax to certain debts described in the bill, allows the Office of State Debt Collection to pursue collection activities "regardless of whether or not the amount has been reduced to a judgment," and permits the office to retain up to one year of expenses in the state debt collection fund so it can cover operating costs.

Paul Bowers, manager of the Office of State Debt Collection, explained the office’s role: agencies first attempt collection themselves and then refer delinquent accounts to his office, which pursues additional remedies. "At the point where those debts become delinquent...after a few months, they generally turned it over to my office, then we start to pursue our own collection remedies," Bowers said.

The measure drew no public comment. Representative Peterson moved to recommend the bill favorably; Representative Burton summarized the bill for the committee before the voice vote. The motion carried; Representative Hansen registered the lone opposition on the record during the voice vote.

What comes next: HB 554 will move on in the legislative process per committee rules when it is scheduled for subsequent floor or committee action.