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Minutes for HB2402 - Committee on Appropriations
Short Title
Debt set off; allowing the director of accounts and reports to enter into an agreement with third party vendors to assist in collecting debts against the state.
Minutes Content for Wed, Jan 31, 2018
Chairman Waymaster opened the hearing on HB 2402.
Jill Wolters, Office of the Revisor of Statutes, presented the bill brief (Attachment 3). The bill would allow the Director of Accounts and Reports to enter into an agreement with third party vendors to assist in collecting debts against the state.
Jill Wolters responded to questions from committee members. She described scenarios whereas a third party vendor would assist with debt collections. The vendor would be allowed a reasonable fee, which would be negotiated in the agreement, and have access to personal information for the purpose of debt collection. In regards to other vendors, she stated that this would include someone who held money for a debtor, however, she would review this further and provide any additional information to the committee.
Representative Landwehr addressed the committee with background information on the bill. She stated that the purpose of the bill was to include a memorandum of understanding with state casinos, which would include the same language in regards to lottery winnings, and go towards collection of debts owed to state agencies or other authorized entities.
John Milburn, Director of Legislative and Public Affairs, Department of Administration, presented testimony in opposition of the bill (Attachment 4). Concern was expressed regarding the broad use of language, definition of third party vendors, the amount of work involved, and the road blocks beyond the intended purpose of the bill. The preferred language would be what was included in the lottery vending machines bill. Representative Landwehr stated that should the bill be worked in committee, she would recommend that the existing language be removed and include the language that passed through both chambers and signed in to law by the Governor. This would be supported by the Department of Administration, Mr. Milburn stated. In regards to the process Chairman Waymaster stated the preferred language could be presented in the form of an amendment, or the introduction of a bill with the language included in the bill.
Trisha Thomas, Director of Child Support Services, Kansas Department for Children and Families, presented testimony as an opponent of the bill (Attachment 5). She stated that the preferred language is contained in HB 2545, which would collect the money from the casinos to the families. Concern that third party vendors would have access to personal information and the risk of losing federal funding, and debt set-off from the Department of Administration would not be available. Approximately $3.78 million is collected each year for families through the debt set-off program, she noted.
Chairman Waymaster closed the hearing on the bill.
Chairman Waymaster reviewed the agenda for next week's committee meetings.
Meeting adjourned at: 9:38 a.m.
