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Debt Collection Improvement Bill Scheduled for Hearing

SB 1059, which makes county participation in the Collection Improvement Program (CIP) operated under the Office of Court Administration discretionary, has moved through the Senate and is scheduled for a hearing at 10:30 a.m., Tuesday, May 10 in House Criminal Jurisprudence.

Under current law, counties with populations of 50,000 or greater are required to participate. This includes 54 counties with programs in operation plus another eight counties that would implement a CIP during the next year due to official 2010 Census numbers.

According to data submitted by the Texas Association of Counties County Information Project, the fiscal impact of this legislation for counties would be as follows:

It is expected that each county will develop and implement a program to maximize collections regardless of whether the county is a part of the model program, and as a result, realize a positive fiscal impact. Some of the costs associated with the implementation of the model program are the requirement to implement the entire program, and because conditions vary across the state, some of the portions of the model program are not appropriate for some counties.

The bill would provide counties greater latitude in developing an appropriate collection program, which is expected to improve collections in counties resulting in a positive fiscal impact. Therefore, the positive fiscal impact is based on an expectation of greater efficiency, not greater participation.

The Legislative Budget Board has issued a fiscal note estimating a positive impact for the state of $6,836,170.

For additional information, please contact Rick Thompson at (800) 456-5974 or e-mail .