HB 1512-S - DIGEST

(DIGEST OF PROPOSED 1ST SUBSTITUTE)

     Authorizes any governmental entity using a collection agency to add a collection fee to the outstanding debt, to be paid by the debtor.

     Declares that the amount to be paid for collection services shall be left to the agreement of the governmental entity and its collection agency or agencies, but a contingent fee of up to fifty percent of the first one hundred thousand dollars of the unpaid debt per account and up to thirty-five percent of the unpaid debt over one hundred thousand dollars per account is reasonable, and a minimum fee of the full amount of the debt up to one hundred dollars per account is reasonable.  Any fee agreement entered into by a governmental entity is presumptively reasonable.