SB21-055: Collection of Debts Owed to the State

• Establishes that each state agency is responsible for collecting debts owed to it, with the state controller providing assistance and establishing fiscal rules for debt collection.

• Requires state agencies to refer uncollected debts to the controller within 30 days of becoming past due, and mandates the controller assign debts to private collection agencies within 180 days if not collected.

• Allows state agencies to certify debts directly to the Department of Revenue for lottery offsets, tax refund offsets, and limited gaming offsets without requiring referral through the central collection services first.

• Sets collection fee caps at 18% for private collection agencies and 25% for private counsel, with fees collected by private entities not subject to state appropriations rules.

• Eliminates the Debt Collection Fund effective July 1, 2021, transferring its balance to the general fund, and appropriates $50,625 to the Department of Revenue for GenTax system support.