HB 1930 Summary

• Creates the Bad Debt Collection Pilot Program allowing the Director of the Department of Finance and Administration to contract with a single third-party collector for the 2020 calendar year to collect uncollectible tax debts with certificates of indebtedness issued.

• Establishes the Bad Debt Collection Pilot Program Fund to receive all collected revenues, with contractor compensation ranging from 8% on the first $250,000 collected down to 2% on amounts exceeding $25,000,000.

• Requires contractors to file a $1,000,000 surety bond and prohibits harassing, deceptive, or fraudulent collection practices including false representations about authority, threats of arrest or property seizure, and abusive communications.

• Mandates contractors disclose they are debt collectors in initial written communication and wait 7 calendar days before initiating oral contact; authorizes contractors to levy property and request receiver appointment with director approval only.

• Declares an emergency effective upon Governor approval, finding that uncollectible tax assessments reduce state revenues necessary for public peace, health, and safety, with a March 1, 2021 reporting deadline to the House and Senate Revenue and Taxation committees.