OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5571

AN ACT CONCERNING CONSUMER COLLECTION AGENCIES AND DEBT COLLECTION ACTIONS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Banking Dept.

BF - Potential Revenue Gain

Less than $1,000

Less than $1,000

Note: BF=Banking Fund

Municipal Impact: None

Explanation

The bill clarifies that consumer collection agencies are subject to state licensure if they collect federal income tax debt on behalf of the U.S. Department of Treasury from debtors who reside in Connecticut. To the extent that this results in additional collection agencies being licensed, it could result in increased revenue to the Banking Fund. The initial license cost is $500 ($400 licensing fee and $100 investigation fee) and the annual license fee is $400.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject the number of licenses.

Sources:

CT's Business Repsonse Center

http://www.ct-clic.com/Agency/agencyLicense.asp?agID=10&catID=2