(Reprinted with amendments adopted on April 18, 2003)

 

Assembly Bill No. 457–Committee on Government Affairs

 

(On Behalf of the State Controller)

 

March 24, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes concerning collection of debts by state agencies and State Controller. (BDR 31‑102)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public financial administration; authorizing the State Controller to retain certain overpayments; requiring the State Controller to adopt certain regulations; requiring the State Controller to maintain certain reports regarding debts owed to state agencies; authorizing the State Controller to make certain information regarding debts available to the public in certain circumstances; authorizing the State Controller to enter into certain agreements allowing installment payments by a debtor; increasing the maximum amount that certain debtors may be required to pay as reimbursement for the costs and fees actually incurred to collect the debts; authorizing the State Controller to charge and collect certain fees for partial payments and defaults by a debtor with respect to certain agreements; requiring the State Controller to act as the collection agent for certain state agencies; authorizing the State Controller or the Department of Taxation to enter into a contract with a private debt collector; authorizing the State Controller to declare certain debts to be bad debts; removing the date of expiration of certain pilot programs regarding the withholding of certain licenses; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 353C of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  If a debtor overpays a debt or an installment payment on a debt

1-4  pursuant to this chapter and the amount of the overpayment does

1-5  not exceed $35, the State Controller may retain the overpayment

1-6  unless the debtor submits to the State Controller a written request

1-7  for the refund of the overpayment.

1-8  Sec. 2.  NRS 353C.110 is hereby amended to read as follows:

1-9  353C.110  The [Director of the Department of Administration

1-10  and the Attorney General may jointly] State Controller shall adopt

1-11  such regulations as the State Controller determines are necessary to

1-12  carry out the provisions of this chapter.

1-13      Sec. 3.  NRS 353C.120 is hereby amended to read as follows:

1-14      353C.120  1.  Each agency shall submit to the State Controller

1-15  periodic reports of the debts owed to the agency. The State

1-16  Controller shall [maintain] :

1-17      (a) Maintain the reports to the extent that resources are

1-18  available[. The Director of the Department of Administration and

1-19  the Attorney General shall jointly prescribe] ; and

1-20      (b) Prescribe the time, form and manner of the reports.

1-21      2.  Except as otherwise provided in subsection 3 and to the

1-22  extent that the information on the reports is declared to be

1-23  confidential by a specific statute of this state or federal law, the

1-24  State Controller shall make the reports available for public

1-25  inspection and may, without charge, make available for access on

1-26  the Internet or its successor, if any, the information contained in the

1-27  reports.

1-28      3.  If a report or a portion of a report pertains to a debt that is

1-29  proven to be owed and not in dispute, the State Controller may,

1-30  except to the extent that the report or portion thereof is declared to

1-31  be confidential by federal law:

1-32      (a) Make the report or portion thereof available for public

1-33  inspection; and

1-34      (b) Without charge, make the report or portion thereof

1-35  available for access on the Internet or its successor, if any.

1-36  The provisions of this subsection apply regardless of whether the

1-37  report in question or portion thereof is otherwise declared to be

1-38  confidential by a specific statute of this state.

1-39      Sec. 4.  NRS 353C.130 is hereby amended to read as follows:

1-40      353C.130  [An]

1-41      1.  The State Controller or an agency may enter into an

1-42  agreement with a debtor which provides for the payment of a debt

2-1  owed by the debtor to the State Controller or the agency on an

2-2  installment basis over a 12-month or lesser period.

2-3  2.  Upon good cause shown by the debtor, the State Controller

2-4  or the agency may extend the period during which installment

2-5  payments will be made for more than a 12-month period.

2-6  Sec. 5.  NRS 353C.135 is hereby amended to read as follows:

2-7  353C.135  1.  Except as otherwise provided by specific statute

2-8  [,] and subsection 2, a person who owes a debt of more than $200

2-9  pursuant to this chapter shall, in addition to the debt, pay as

2-10  reimbursement for the costs and fees actually incurred to collect the

2-11  debt an amount not to exceed 25 percent of the amount of the debt

2-12  or [$25,000,] $50,000, whichever is less. Any prejudgment or

2-13  postjudgment interest on the debt authorized by law must not be

2-14  included in the calculation of the costs and fees actually incurred to

2-15  collect the debt.

2-16      2.  If a debtor:

2-17      (a) Makes a partial payment on an agreement between the

2-18  State Controller and the debtor, contrary to the agreement; or

2-19      (b) Defaults on an installment payment for which the State

2-20  Controller extended the period of payment to more than 12 months

2-21  pursuant to subsection 2 of NRS 353C.130,

2-22  twelve months or more after the payment was due, the State

2-23  Controller may assess costs and fees for any payment made more

2-24  than 12 months after the first payment. The cumulative amount of

2-25  costs and fees paid pursuant to this subsection may exceed the

2-26  maximum amount set forth in subsection 1.

2-27      Sec. 6.  NRS 353C.195 is hereby amended to read as follows:

2-28      353C.195  1.  [The] Except as otherwise provided in

2-29  subsection 3, the State Controller [may, if requested by any state

2-30  agency,] shall act as the collection agent for [that agency.] all state

2-31  agencies.

2-32      2.  The amount of a debt owed to an agency must be

2-33  established on the date the debt is turned over to the State

2-34  Controller for collection. The State Controller may charge interest

2-35  on the debt.

2-36      3.  The State Controller may, if requested by the Department

2-37  of Taxation, act as the collection agency for the Department of

2-38  Taxation. If the State Controller acts as the collection agent for [an

2-39  agency, the agency] the Department of Taxation, the Department

2-40  of Taxation may coordinate all its debt collection efforts through

2-41  the State Controller.

2-42      Sec. 7.  NRS 353C.200 is hereby amended to read as follows:

2-43      353C.200  1.  Except as otherwise provided in subsection 2,

2-44  [an agency] the State Controller or the Department of Taxation

3-1  may enter into a contract with a private debt collector or any other

3-2  person for the assignment of the collection of a debt if [the agency:

3-3  (a) Determines the] :

3-4  (a) The assignment is likely to generate more net revenue than

3-5  equivalent efforts by the [agency] State Controller or Department

3-6  of Taxation, as applicable, to collect the debt, including collection

3-7  efforts pursuant to this chapter;

3-8  (b) [Determines the] The assignment will not compromise future

3-9  collections of state revenue; and

3-10      (c) [Notifies the] The debtor is notified in writing at his address

3-11  of record that the debt will be turned over for private collection

3-12  unless the debt is paid.

3-13      2.  [An agency shall not] Neither the State Controller nor the

3-14  Department of Taxation may enter into a contract with a private

3-15  debt collector or any other person for the assignment of the

3-16  collection of a debt if the debt has been contested by the debtor.

3-17      3.  A contract for the assignment of the collection of a debt may

3-18  provide for:

3-19      (a) Payment by the [agency] State Controller or the

3-20  Department of Taxation to the private debt collector or other person

3-21  of the costs of collection and fees for collecting the debt; or

3-22      (b) Collection by the private debt collector or other person from

3-23  the debtor of the costs of collection and fees for collecting the debt.

3-24      [4.  Any contract entered into pursuant to this section is subject

3-25  to approval by the Director of the Department of Administration and

3-26  the State Controller.]

3-27      Sec. 8.  NRS 353C.220 is hereby amended to read as follows:

3-28      353C.220  1.  [If] Except as otherwise provided in subsection

3-29  3, if an agency determines that it is impossible or impractical to

3-30  collect a debt, the agency may request that the State Board of

3-31  Examiners [to] designate the debt as a bad debt. [The] Except as

3-32  otherwise provided in subsection 3, the State Board of Examiners,

3-33  by an affirmative vote of the majority of the members of the Board,

3-34  may designate the debt as a bad debt if the Board is satisfied that the

3-35  collection of the debt is impossible or impractical.

3-36      2.  Upon the designation of a debt as a bad debt pursuant to

3-37  [this section,] subsection 1, the State Board of Examiners shall

3-38  immediately notify the State Controller [thereof.] of that

3-39  designation. Upon receiving the notification, the State Controller

3-40  shall direct the removal of the debt from the books of account of the

3-41  State of Nevada.

3-42      3.  If the State Controller determines that it is impossible or

3-43  impractical to collect a debt of $500 or less, he may designate the

3-44  debt as a bad debt.

4-1  4.  A bad debt that is removed pursuant to this section remains a

4-2  legal and binding obligation owed by the debtor to the State of

4-3  Nevada.

4-4  [3.] 5.  If resources are available, the State Controller shall

4-5  keep a master file of all debts that are designated as bad debts

4-6  pursuant to this section. If such a file is established and maintained,

4-7  for each such debt, the State Controller shall record the name of the

4-8  debtor, the amount of the debt, the date on which the debt was

4-9  incurred and the date on which it was removed from the records and

4-10  books of account of the agency or the State of Nevada, and any

4-11  other information concerning the debt that the State Controller

4-12  determines is necessary.

4-13      Sec. 9.  Section 16 of chapter 389, Statutes of Nevada 2001, at

4-14  page 1883, is hereby amended to read as follows:

4-15      Sec. 16.  [1.] This act becomes effective upon passage

4-16  and approval.

4-17      [2.  Sections 13, 14 and 15 of this act expire by limitation

4-18  on October 1, 2003.]

4-19      Sec. 10.  This act becomes effective upon passage and

4-20  approval.

 

4-21  H