CO HB1057

Adds new section 5-16-111.5 allowing private collection agencies and privately retained attorneys to add fees, costs, and collection costs to debts owed to the state or political subdivisions, with an 18 percent aggregate cap (exclusive of interest and court costs).

Reduces the aggregate fee limit for the state controller or private collection agencies from 21 percent to 18 percent under section 24-30-202.4(8)(a), while maintaining a 25 percent cap for private counsel.

Exempts debts sold to third parties from the fee limitations in the new section.

Requires the state auditor to review the 18 percent rate and related aggregate fees on or before January 1, 2023, and every five years thereafter, with authority to recommend rate adjustments to legislative finance committees.

Takes effect July 1, 2019, subject to approval by voters at the November 2018 general election.