HB 7009 Summary: Local Government Capital Recovery

• Creates new statutes (125.575 for counties and 166.30 for municipalities) requiring issuance of procurement requests to collect delinquent designated revenues when thresholds are met: $10 million more than 90 days delinquent, $5 million more than 180 days delinquent, or $1 million more than 270 days delinquent, beginning October 1, 2016.

• Procurement requests must be issued within 30 days of meeting thresholds and sent to registered consumer collection agencies, requiring upfront cash payments with possible contingency fee components, but bids based solely on contingency fees are not acceptable.

• Counties and municipalities are not required to enter into contracts with responding agencies; however, county executives, county clerks of court, or municipal mayors may enter into contracts if the governing body does not begin negotiations within 60 days of receiving bids.

• Requires counties and municipalities to submit copies of all bids received to the Department of Financial Services, which must retain them for at least 5 years; delinquent revenues under collection contracts are excluded from future threshold calculations.

• Amends section 218.39 to require management letters accompanying county and municipal annual financial audit reports to include discussion of delinquent designated revenues and collection efforts undertaken.