Collection costs for debts owed to the state.

13LSO-0508.L1

FISCAL NOTE

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
GENERAL FUND	283,900	283,900	283,900
HIGHWAY FUND	5,265	5,265	5,265

Source of revenue increase:

Collection fees added to debts collected by collection agencies for state agencies

Assumptions:

This bill would allow state agencies to recoup fees paid for the collection of debt from the debtor (up to 25% of the unpaid debt per account). These fees are currently paid to collection agencies from the proceeds of the amount collected by the collection agency.

The Department of Transportation estimates a revenue increase of $5,265 per year to the State Highway Fund, based on an average of $178,475 of debt under collection each year, an average success rate of 11.8% on collections of debt using collection agencies, and a 25% fee added to the successful collection of debt ($178,475 x 11.8% x 25%).

The Department of Revenue’s collection fees remitted for fiscal years 2011 and 2012 averaged $283,900 annually, based on a 12% collection fee. The Department of Revenue assumes this amount will remain constant, as these fees are dependent on the collection agency’s ability to collect the fees.

Prepared by:   Dean Temte, LSO       Phone: 777-7881

(Information provided by Dan Noble, Dept. of Revenue; 777-5220:

Kevin Hibbard, WYDOT; 777-4026)