BATON ROUGE – The Louisiana Office of Debt Recovery (ODR) is on schedule to be fully operational within three years, Secretary of Revenue Tim Barfield reported to the state Cash Management Review Board on Thursday.
ODR will be a highly automated, efficient, and centralized debt collection office that provides collection services for state agencies. It will include a suite of debt collection tools and will work with the Office of the Attorney General and outside collection agencies to perform collection services.
ODR was created by the Louisiana Legislature to assist state agencies in collecting overdue debts determined to be “final debt” after exhausting all administrative and legal due process. Housed in the Louisiana Department of Revenue, ODR will use new tools to identify and collect final debt payments on behalf of those agencies.
Implementation is progressing quickly, largely using LDR’s existing human and budgetary resources. “Looking at the states with state-of-the-art centralized collection operations, this implementation will be completed at least 25% and as much as 50% faster,” Barfield said.
“ODR has already implemented its electronic debt registry, significantly expanded use of an existing collection tool, implemented two new collection tools and has begun collecting debts,” Deputy Secretary of Revenue Jarrod Coniglio said.
Collection tools already in use by ODR include LDR’s state tax refund offset; financial institution data match (FIDM) that allows it to identify and levy final debt payments from the bank accounts of debtors who have exhausted their due process; and a federal vendor payment intercept program that allows ODR to collect final debt from payments owed to companies doing business with the federal government who have exhausted their due process.
Already, 281 of 340 (82%) financial institutions have signed up for participation in the FIDM program, which are estimated to cover over 90% of deposit accounts in the state.
A request for proposals (RFP) for the automated collection system is currently being developed. “Today, we’re working with manual processes, but will issue an RFP in mid-August to develop a fully automated case management system,” Coniglio said. “The automated system will be fully scalable, and will allow ODR to increase its workload with a minimum of additional human resources.”