NRS: CHAPTER 353C - COLLECTION OF DEBTS OWED TO STATE AGENCY

[Rev. 6/29/2024 3:43:56 PM--2023]

CHAPTER 353C - COLLECTION OF DEBTS OWED TO STATE AGENCY

NRS 353C.010 Definitions.

NRS 353C.020 “Agency” defined.

NRS 353C.030 “Agreement” defined.

NRS 353C.040 “Debt” defined.

NRS 353C.050 “Fee” defined.

NRS 353C.060 “Fine” defined.

NRS 353C.070 “Person” defined.

NRS 353C.080 “Tax” defined.

NRS 353C.090 Applicability.

NRS 353C.100 Determination of debt to be past due.

NRS 353C.110 Regulations of State Controller: Generally.

NRS 353C.115 Regulations of State Controller: Establishing fee for returned or dishonored check or other method of payment.

NRS 353C.120 Periodic reports by agency of debts owed to agency; availability of reports for public inspection.

NRS 353C.125 Agency authorized to refuse to conduct additional transaction with certain debtors until payment of prior debts.

NRS 353C.128 Agency authorized to refuse to conduct transaction with, and State Controller authorized to refuse to draw warrant in favor of, certain debtors until payment of prior debts or debtor enters into agreement for payment of debts.

NRS 353C.130 Agreement with debtor for payment in installments; extension.

NRS 353C.133 Agreement with debtor to accept payment of portion of debt in full satisfaction of debt.

NRS 353C.135 Payment of costs and fees for collection of certain debts.

NRS 353C.140 Action by Attorney General to collect debt; limitation of action.

NRS 353C.150 Application for entry of summary judgment: Conditions; notice to debtor; filing requirements.

NRS 353C.160 Entry of judgment against debtor; service of judgment upon debtor.

NRS 353C.170 Recordation of judgment; lien upon property of debtor; extension of lien.

NRS 353C.171 Withholding of income: State Controller authorized to require employer to withhold income to satisfy judgment; notice to person against whom judgment was entered explaining options to preclude withholding; effect of compliance with options.

NRS 353C.172 Withholding of income: Notice to person who is subject to withholding.

NRS 353C.173 Withholding of income: Filing of contest; duties of State Controller relating to contest; notice of determination on contest.

NRS 353C.174 Withholding of income: Notice to employer.

NRS 353C.175 Withholding of income: Duties of employer upon receipt of notice to withhold.

NRS 353C.176 Withholding of income: Notice to withhold binding on employer; employer may deduct amount for reimbursement of costs; delivery of withheld money by employer by check or electronic transfer.

NRS 353C.177 Withholding of income: Unlawful for employer to use withholding as basis for refusing to hire, discharging or taking disciplinary action against employee; liability; penalty.

NRS 353C.178 Withholding of income: Enforcement proceedings against employer for refusal to withhold or misrepresentation of employee’s income; remedies and penalties.

NRS 353C.179 Withholding of income: Immunity of employer and State Controller.

NRS 353C.180 Certificate of liability: Contents; recording; notification to debtor; lien on property; extension of lien.

NRS 353C.190 State Controller may offset debt with amount owed to debtor by state agency; filing of claim on behalf of debtor; regulations.

NRS 353C.195 State Controller required to act as collection agent for state agencies; coordination of debt collection efforts; assignment of debt to State Controller; waiver of requirements; exercise of rights and remedies by state agencies.

NRS 353C.1955 Date for accrual of interest; rate of interest.

NRS 353C.196 Limitation on refund for overpayment of debt; exception.

NRS 353C.1965 State Controller required to establish and maintain list of persons who owe debt assigned for collection; licensing agency required to provide certain information to State Controller; notification; information shared between State Controller and licensing agency not public record; immunity from liability for licensing agency; regulations.

NRS 353C.198 Appointment of agent to file application for summary judgment or record certificate of liability against debtor.

NRS 353C.200 Contract with private debt collector: Conditions; provisions regarding costs of and fees for collecting debt.

NRS 353C.210 Notice of debt and demand to transmit to persons possessing or controlling credits or other personal property of, or owing debts to, debtor; limitations on and liability for transfer or disposition of property; hearing required; regulations governing hearings.

NRS 353C.220 Bad debts: Designation; removal from books of account of State; effect of removal; master file.

NRS 353C.222 Selling certain debt in lieu of requesting designation of debt as bad debt; deposit of money received from sale of debt.

NRS 353C.224 Distribution of money collected from debtor.

NRS 353C.226 Debt Recovery Account: Creation; use; expenditure of money in Account.

NRS 353C.230 Remedies of state are supplemental; additional remedies unimpaired.

NRS 353C.240 Development and operation of system for matching data to collect debts: Duties and liability of State Controller and financial institutions; use of system; confidentiality.

_________

NRS 353C.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 353C.020 to 353C.080, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1999, 3442)

NRS 353C.020 “Agency” defined. “Agency” means an agency, bureau, board, commission, department or division of the Executive Department of State Government.

(Added to NRS by 1999, 3442)

NRS 353C.030 “Agreement” defined. “Agreement” means a transaction between one or more persons and an agency or the State of Nevada whereby each party to the transaction becomes obligated to the other with reciprocal rights to demand performance of what is promised by the other.

(Added to NRS by 1999, 3442)

NRS 353C.040 “Debt” defined. “Debt” means a tax, fee, fine or other obligation:

1. That is owed to an agency or the State of Nevada; and

2. The payment of which is past due.

(Added to NRS by 1999, 3442)

NRS 353C.050 “Fee” defined. “Fee” means a charge fixed by law for services or for the use of a privilege within the control of an agency or the State of Nevada.

(Added to NRS by 1999, 3442)

NRS 353C.060 “Fine” defined. “Fine” means a requirement to pay a sum of money that is imposed on a person for an act of wrongdoing.

(Added to NRS by 1999, 3442)

NRS 353C.070 “Person” defined. “Person” includes any political subdivision of this state or other governmental entity which is not an agency.

(Added to NRS by 1999, 3442)

NRS 353C.080 “Tax” defined. “Tax” means any compulsory charge levied by an agency or the State of Nevada against the wealth of a person for the common benefit of the general public.

(Added to NRS by 1999, 3442)

NRS 353C.090 Applicability. Except as otherwise provided in NRS 353C.195, the provisions of this chapter apply to an agency only to the extent that no other specific statute exists which provides for the collection of debts due the agency. To the extent that the provisions of this chapter conflict with such a specific statute, the provisions of the specific statute control until a debt is assigned to the State Controller for collection.

(Added to NRS by 1999, 3442; A 2009, 1176)

NRS 353C.100 Determination of debt to be past due. For the purposes of this chapter, a debt is past due if the debt has not been remitted and paid to an agency or the State of Nevada as required by law, or as agreed upon by the debtor and the agency or the State of Nevada, as appropriate.

(Added to NRS by 1999, 3442)

NRS 353C.110 Regulations of State Controller: Generally. The State Controller may adopt such regulations as are necessary to carry out the provisions of this chapter.

(Added to NRS by 1999, 3442; A 2009, 1176)

NRS 353C.115 Regulations of State Controller: Establishing fee for returned or dishonored check or other method of payment.

1. The State Controller shall adopt regulations establishing a fee of $25 that an agency shall charge a person for each check or other method of payment that is returned to the agency or otherwise dishonored upon presentation for payment because the person had insufficient money or credit with the drawee or financial institution to pay the check or other method of payment, or because the person stopped payment on the check or other method of payment.

2. Notwithstanding any specific statute or regulation to the contrary, an agency may only charge and collect a fee for a check or other method of payment returned to the agency or otherwise dishonored upon presentation for payment because the person has insufficient money or credit, or because the person stopped payment on the check or other method of payment, in accordance with the regulations adopted by the State Controller pursuant to this section.

3. For the purposes of this section, “agency” does not include the Department of Taxation, Nevada Gaming Commission or Nevada Gaming Control Board.

(Added to NRS by 2003, 20th Special Session, 201; A 2005, 589)

NRS 353C.120 Periodic reports by agency of debts owed to agency; availability of reports for public inspection.

1. Each agency shall submit to the State Controller periodic reports of the debts owed to the agency. The State Controller shall maintain the reports. The State Controller and the Attorney General shall jointly prescribe the time, form and manner of the reports.

2. Except to the extent that the information on the reports is declared to be confidential by a specific statute of this State or federal law, the State Controller shall make the reports available for public inspection and may, without charge, make available for access on the Internet or its successor, if any, the information contained in the reports.

(Added to NRS by 1999, 3443; A 2001, 1876; 2009, 1176)

NRS 353C.125 Agency authorized to refuse to conduct additional transaction with certain debtors until payment of prior debts. If, in a previous transaction between an agency and a person, a check or other method of payment was returned to the agency or otherwise dishonored upon presentation for payment because the person had insufficient money or credit with the drawee or financial institution to pay the check or other method of payment or because the person had stopped payment on the check or other method of payment, the agency may refuse to conduct an additional transaction with the person until the debt owed in the previous transaction is paid.

(Added to NRS by 2001, 1876; A 2005, 590)

1. Except as otherwise provided in this section, an agency may refuse to conduct a transaction with, and the State Controller may refuse to draw his or her warrant in favor of, a person who owes a debt to an agency until the debt is paid or the debtor enters into an agreement, pursuant to NRS 353C.130, for the payment of the debt on an installment basis.

2. An agency may not refuse to conduct a transaction with, and the State Controller may not refuse to draw his or her warrant in favor of, a debtor if:

(a) The refusal violates or is prohibited by a state or federal law or court order;

(b) The refusal violates a term or condition of a grant, contract or other agreement that the agency administers or to which the agency is a party; or

(Added to NRS by 2009, 1174)

NRS 353C.130 Agreement with debtor for payment in installments; extension. The State Controller may enter into an agreement with a debtor which provides for the payment of a debt owed by the debtor to an agency on an installment basis over a 12-month or lesser period. Upon good cause shown by the debtor, the State Controller may extend the period during which installment payments will be made for more than a 12-month period.

(Added to NRS by 1999, 3443; A 2009, 1176)

NRS 353C.133 Agreement with debtor to accept payment of portion of debt in full satisfaction of debt. Notwithstanding any specific statute to the contrary, the State Controller may enter into an agreement with a debtor to accept the payment of a portion of the debt in full satisfaction of the debt, including any penalty and interest, if:

1. The State Controller determines that accepting the agreed upon amount is likely to generate more net revenue for the State than continuing efforts to collect the full amount of the debt; and

2. The agency to which the debt is owed approves.

(Added to NRS by 2009, 1175)

NRS 353C.135 Payment of costs and fees for collection of certain debts.

1. Except as otherwise provided in subsection 2 or by a specific statute, a person who owes a debt of more than $300 pursuant to this chapter shall, in addition to the debt, pay:

(a) If the State Controller has entered into a contract pursuant to NRS 353C.200 with a private debt collector or any other person for the assignment of the collection of the debt:

(1) A fee payable to the State Controller in the amount of 2 percent of the amount of the debt assigned to the State Controller for collection pursuant to NRS 353C.195;

(2) The amount of the costs and fees established in the contract; and

(3) Any additional costs and fees actually incurred to collect the debt; or

(b) If the State Controller has not assigned the collection of the debt pursuant to NRS 353C.200:

(1) A fee payable to the State Controller in the amount of 2 percent of the amount of the debt assigned to the State Controller for collection pursuant to NRS 353C.195.

(2) An amount payable to the State Controller for costs and fees which is equal to a percentage of the amount of the debt recovered. The State Controller shall calculate the appropriate percentage pursuant to this subparagraph that is applicable to the debt by reducing by 5 percentage points the lowest such percentage established in any contract entered into by the State Controller pursuant to NRS 353C.200 that was effective at the time the debt was incurred.

(3) Any additional costs and fees actually incurred to collect the debt.

2. The total amount of costs and fees required pursuant to subsection 1 must not exceed 35 percent of the amount of the debt or $50,000, whichever is less. Any prejudgment or postjudgment interest on the debt authorized by law must not be included in the calculation of the costs and fees actually incurred to collect the debt.

(Added to NRS by 2001, 1876; A 2009, 1176; 2013, 2719)

NRS 353C.140 Action by Attorney General to collect debt; limitation of action. If a person has not paid a debt that the person owes to an agency, the Attorney General, upon the request of the State Controller:

1. Except as otherwise provided in this section, shall bring an action in a court of competent jurisdiction; or

2. If the action is a small claim subject to chapter 73 of NRS, may bring an action in a court of competent jurisdiction,

Ê on behalf of this state to collect the debt, plus any applicable penalties and interest. The action must be brought not later than 4 years after the date on which the debt became due or within 4 years after the date on which a certificate of liability was last recorded pursuant to NRS 353C.180, as appropriate.

(Added to NRS by 1999, 3443; A 2009, 1176; 2011, 453)

NRS 353C.150 Application for entry of summary judgment: Conditions; notice to debtor; filing requirements.

1. In addition to any other remedy provided for in this chapter, if a person who owes a debt to an agency:

(a) Fails to pay the debt when it is due, or fails to pay an agreed upon amount in satisfaction of the debt; or

(b) Defaults on a written or other agreement relating to the payment of the debt,

Ê the State Controller may, within 4 years after the date on which the debt became due or the date on which the debtor defaulted, as appropriate, file with the office of the clerk of a court of competent jurisdiction an application for the entry of summary judgment against the debtor for the amount due.

2. The State Controller shall, not less than 15 days before the date on which he or she intends to file the application, notify the debtor of the State Controller’s intention to file the application. The notification must be sent by certified mail to the last known address of the debtor and must include the name of the agency to which the debt is owed, the amount sought to be recovered and the date on which the application will be filed with the court.

3. An application for the entry of summary judgment must:

(a) Be accompanied by a certificate that specifies:

(1) The amount of the debt, including any interest and penalties due;

(2) The name and address of the debtor, as the name and address of the debtor appear on the records of the State Controller;

(3) The basis for the determination of the amount due; and

(4) That the State Controller has complied with the applicable provisions of law relating to the determination of the amount required to be paid; and

(b) Include:

(1) A request that judgment be entered against the debtor for the amount specified in the certificate; and

(2) Evidence that the debtor was notified of the application for the entry of summary judgment in accordance with subsection 2.

(Added to NRS by 1999, 3443; A 2009, 1177)

NRS 353C.160 Entry of judgment against debtor; service of judgment upon debtor. The court clerk, upon the filing of an application for the entry of summary judgment which complies with the requirements set forth in NRS 353C.150, shall forthwith enter a judgment against the debtor in the amount of the debt, plus any penalties and interest, as set forth in the certificate. The State Controller shall serve a copy of the judgment, together with a copy of the application and the certificate, upon the debtor against whom the judgment is entered, either by personal service or by mailing a copy to the last known address of the debtor.

(Added to NRS by 1999, 3444; A 2009, 1177)

NRS 353C.170 Recordation of judgment; lien upon property of debtor; extension of lien.

1. An abstract of the judgment entered pursuant to NRS 353C.160, or a copy thereof, may be recorded in the office of the county recorder of any county.

2. From the time of its recordation, the judgment becomes a lien upon all real and personal property situated in the county that is owned by the judgment debtor, or which the debtor may afterward acquire, until the lien expires. The lien has the force, effect and priority of a judgment lien and continues for 4 years after the date of the judgment so entered by the court clerk unless sooner released or otherwise discharged.

3. Within 4 years after the date of the recording of the judgment or within 4 years after the date of the last extension of the lien pursuant to this subsection, the lien may be extended by recording an affidavit of renewal in the office of the county recorder. From the date of recording, the lien is extended for 4 years to all real and personal property situated in the county that is owned by the judgment debtor or acquired by the judgment debtor afterwards, unless the lien is sooner released or otherwise discharged.

(Added to NRS by 1999, 3444; A 2011, 454)

1. If an agency or the State Controller obtains a judgment against a person for a debt owed to an agency that has been assigned to the State Controller for collection pursuant to NRS 353C.195, the State Controller may, in addition to any other manner of executing the judgment provided by law, require each employer of the person to withhold income from the person’s wages and pay it over to the State Controller in accordance with the provisions of NRS 353C.171 to 353C.179, inclusive.

2. Before the State Controller may require an employer of a person to withhold income from the person’s wages and pay it over to the State Controller, the State Controller shall provide to the person a notice, sent by certified mail to the person’s last known address, explaining that if the person does not:

(a) Enter into an agreement with the State Controller pursuant to NRS 353C.130 to provide for the payment of the debt, and any penalty and interest, on an installment basis; or

(b) Pay the debt in full, including, without limitation, any penalty and interest,

Ê within 15 days after the date on which the notice is postmarked, the State Controller will require each employer of the person to withhold income from the person’s wages and turn it over to the State Controller in accordance with NRS 353C.171 to 353C.179, inclusive.

3. If, within 15 days after the date on which the notice required pursuant to subsection 2 is postmarked, a person complies with the provisions of paragraph (a) or (b) of subsection 2, the State Controller may not require any employer of the person to withhold income from the person’s wages.

(Added to NRS by 2015, 130)

NRS 353C.172 Withholding of income: Notice to person who is subject to withholding. Not earlier than 15 days after sending the notice required pursuant to subsection 2 of NRS 353C.171, if the State Controller intends to require each employer of a person to withhold income from the person’s wages and pay it over to the State Controller in accordance with the provisions of NRS 353C.171 to 353C.179, inclusive, the State Controller must provide to the person who is subject to the withholding of income a notice, sent by certified mail to the person’s last known address:

1. That his or her income is going to be withheld not earlier than 15 days after the postmark of the notice sent pursuant to this section;

2. That a notice to withhold income applies to any current or subsequent employer;

3. That a notice to withhold income has been mailed to his or her employer;

4. Of the information provided to his or her employer pursuant to NRS 353C.174;

5. That he or she may contest the withholding pursuant to NRS 353C.173; and

6. Of the grounds and procedures for contesting the withholding.

(Added to NRS by 2015, 130)

NRS 353C.173 Withholding of income: Filing of contest; duties of State Controller relating to contest; notice of determination on contest.

1. At any time after receiving the notice required pursuant to NRS 353C.172, a person may file with the State Controller a contest to the withholding of income. If a person files a contest pursuant to this section, the State Controller must notify each employer of the person to which a notice was sent pursuant to NRS 353C.174 to discontinue the withholding pending the outcome of the contest.

2. The contest must be in writing, in the form prescribed by the State Controller, and include, without limitation:

(a) The grounds for contesting the withholding; and

(b) If the person is contesting the withholding on the grounds of financial hardship, evidence of how the withholding will cause a financial hardship to the person.

3. Upon receipt of a contest to the withholding of income, the State Controller:

(a) Shall:

(1) Consider the grounds for the contest stated by the person and any evidence submitted by the person, including, without limitation, any evidence submitted by the person that the withholding of income will cause a financial hardship to the person; and

(2) Meet with the person to discuss the person’s contest of withholding. The meeting may take place in person, by telephone or by videoconference.

(b) May request additional information from the person related to whether the withholding of income will be a financial hardship to the person.

4. At a meeting held pursuant paragraph (b) of subsection 3, the State Controller shall offer the person an opportunity to:

(a) Enter into an agreement with the State Controller pursuant to NRS 353C.130 to provide for the payment of the debt, and any penalty and interest, on an installment basis.

(b) Pay the debt in full, including, without limitation, any penalty and interest.

(c) Prove to the satisfaction of the State Controller that the withholding of income of the person will cause a financial hardship to the person.

5. If a person contests the withholding of income on the grounds that the withholding will be a financial hardship, after the meeting held pursuant to paragraph (b) of subsection 3, the State Controller shall make a determination whether the withholding of income will cause a financial hardship to the person. If the State Controller determines that the withholding of income will cause a financial hardship to the person, the State Controller must reduce the withholding to an amount that will not cause a financial hardship to the person.

6. The State Controller shall send a notice, by certified mail, of the determination made by the State Controller related to the contest of withholding to:

(a) The person’s last known address; and

(b) Each employer of the person.

(Added to NRS by 2015, 131)

NRS 353C.174 Withholding of income: Notice to employer.

1. The State Controller shall send, by certified mail, a notice to withhold income pursuant to NRS 353C.171 to each employer of the person who is subject to the withholding.

2. If an employer does not begin to withhold income from the person in accordance with NRS 353C.175 after receiving the notice to withhold income that was mailed pursuant to subsection 1, the State Controller shall send to the employer, by certified mail, return receipt requested, another notice to withhold income. The provisions of this subsection do not apply if the employer requests that the State Controller calculate the amount of the withholding pursuant to NRS 353C.175.

3. A notice to withhold income pursuant to NRS 353C.171 must:

(a) Contain the social security number of the person who is subject to the withholding;

(b) Specify the total amount to be withheld from the income of the person, including any interest, penalties or assessments provided by law or costs incurred by the agency or State Controller in collecting the debt;

(d) Describe the prohibition against terminating the employment of a person because of withholding and the penalties for wrongfully refusing to withhold in accordance with the notice to withhold income;

(e) Explain the duties of an employer upon the receipt of the notice to withhold income; and

(f) Explain that the employer may request that the State Controller calculate the amount of wages to be withheld from the person, subject to the limitation for withholding income prescribed in NRS 31.295, if the employer submits to the State Controller all information necessary for the State Controller to make the calculation.

(Added to NRS by 2015, 131)

NRS 353C.175 Withholding of income: Duties of employer upon receipt of notice to withhold. An employer who receives a notice to withhold income pursuant to NRS 353C.171:

1. Shall:

(a) Calculate the amount of income to be withheld from a person’s wages during each pay period in accordance with the provisions of NRS 31.295 and subject to the limitation on withholding prescribed in that section; or

(b) Request that the State Controller calculate the amount of income to be withheld from a person’s wages during each pay period in accordance with the provisions of NRS 31.295 and subject to the limitation on withholding prescribed in that section.

Ê For the purposes of this subsection, a withholding of income shall be deemed a garnishment of earnings.

2. Shall withhold the amount calculated pursuant to:

(a) Paragraph (a) of subsection 1, beginning with the first pay period that occurs within 14 days after the date the notice was mailed to the employer; or

(b) Paragraph (b) of subsection 1, beginning with the first pay period that occurs within 14 days after the State Controller notifies the employer of the amount to be withheld,

Ê as applicable.

3. Shall continue to withhold the amount calculated pursuant to subsection 1 until:

(a) The State Controller notifies the employer to discontinue the withholding; or

(b) The full amount required to be paid to the State Controller has been paid, as indicated by a written statement to the employer from the State Controller.

4. Shall deliver the money withheld to the State Controller within 7 days after the date of each payment of the regularly scheduled payroll of the employer.

5. Shall notify the State Controller when the person subject to withholding terminates his or her employment and provide the last known address of the person and the name of any new employer of the person, if known.

(Added to NRS by 2015, 132)

1. A notice to withhold income pursuant to NRS 353C.171 is binding upon any employer of the person to whom it is mailed. To reimburse the employer for his or her costs in making the withholding, the employer may deduct $3 from the amount paid to the person each time the employer makes a withholding.

2. Except as otherwise provided in subsection 3:

(a) An employer may deliver money withheld to the State Controller by check or electronic transfer of money.

(b) If an employer receives notices to withhold income pursuant to NRS 353C.171 for more than one employee, the employer may consolidate the amounts of money that are payable to the State Controller and pay those amounts with one check, but the employer shall attach to each check a statement identifying by name and social security number each person for whom payment is made and the amount transmitted for that person.

3. If the provisions of NRS 353.1467 apply, the employer shall make payment to the State Controller by any method of electronic transfer of money allowed by the State Controller. If an employer makes such payment by electronic transfer of money, the employer shall transmit separately the name and appropriate identification number, if any, of each person for whom payment is made and the amount transmitted for that person.

4. As used in this section, “electronic transfer of money” has the meaning ascribed to it in NRS 353.1467.

(Added to NRS by 2015, 133)

NRS 353C.177 Withholding of income: Unlawful for employer to use withholding as basis for refusing to hire, discharging or taking disciplinary action against employee; liability; penalty.

1. It is unlawful for an employer to use the withholding of income to collect an obligation to pay money to the State Controller as a basis for refusing to hire a potential employee, discharging an employee or taking disciplinary action against an employee. Any employer who violates this section shall hire or reinstate any such employee with no loss of pay or benefits, is liable for any amounts not withheld and must be fined $1,000. If an employee prevails in an action based on this section, the employer is liable, in an amount not less than $2,500, for payment of the employee’s costs and attorney’s fees incurred in that action.

2. If an employer wrongfully refuses to withhold income as required pursuant to NRS 353C.171 to 353C.179, inclusive, or knowingly misrepresents the income of an employee, the employer shall pay the amount the employer refused to withhold to the State Controller and may be ordered to pay punitive damages to the State Controller in an amount not to exceed $1,000 for each pay period the employer failed to withhold income as required or knowingly misrepresented the income of the employee.

(Added to NRS by 2015, 133)

NRS 353C.178 Withholding of income: Enforcement proceedings against employer for refusal to withhold or misrepresentation of employee’s income; remedies and penalties.

1. If an employer wrongfully refuses to withhold income as required pursuant to NRS 353C.171 to 353C.179, inclusive, after receiving a notice to withhold income that was sent by certified mail pursuant to NRS 353C.173 or 353C.174, or knowingly misrepresents the income of an employee, the State Controller may apply for and the court may issue an order directing the employer to appear and show cause why he or she should not be subject to the penalties prescribed in subsection 2 of NRS 353C.177.

2. At the hearing on the order to show cause, the court, upon a finding that the employer wrongfully refused to withhold income as required or knowingly misrepresented an employee’s income:

(a) May order the employer to comply with the requirements of NRS 353C.171 to 353C.179, inclusive;

(b) May order the employer to provide accurate information concerning the employee’s income;

(d) Shall require the employer to pay the amount the employer failed or refused to withhold from the employee’s income.

(Added to NRS by 2015, 133)

NRS 353C.179 Withholding of income: Immunity of employer and State Controller.

1. An employer who complies with a notice to withhold income pursuant to NRS 353C.171 that is regular on its face may not be held liable in any civil action for any conduct taken in compliance with the notice.

2. Compliance by an employer with a notice to withhold income pursuant to NRS 353C.171 is a discharge of the employer’s liability to the person as to that portion of the income affected.

3. If a court issues an order to stay a withholding of income, the State Controller may not be held liable in any civil action to the person who is the subject of the withholding of income for any money withheld before the stay becomes effective.

(Added to NRS by 2015, 134)

NRS 353C.180 Certificate of liability: Contents; recording; notification to debtor; lien on property; extension of lien.

1. In addition to any other remedy provided for in this chapter, the State Controller may, within 4 years after the date that a debt becomes due, record a certificate of liability in the office of a county recorder which states:

(a) The amount of the debt, together with any interest or penalties due thereon;

(b) The name and address of the debtor, as the name and address of the debtor appear on the records of the State Controller;

(c) That the State Controller has complied with all procedures required by law for determining the amount of the debt; and

(d) That the State Controller has notified the debtor in accordance with subsection 2.

2. The State Controller shall, not less than 15 days before the date on which he or she intends to file the certificate, notify the debtor of the State Controller’s intention to file the certificate. The notification must be sent by certified mail to the last known address of the debtor and must include the name of the agency to which the debt is owed, the amount sought to be recovered and the date on which the certificate will be filed with the county recorder.

3. From the time of the recording of the certificate, the amount of the debt, including interest which accrues on the debt after the recording of the certificate, constitutes a lien upon all real and personal property situated in the county in which the certificate was recorded that is owned by the debtor or acquired by the debtor afterwards and before the lien expires. The lien has the force, effect and priority of a judgment lien on all real and personal property situated in the county in which the certificate was recorded and continues for 4 years after the date of recording unless sooner released or otherwise discharged.

4. Within 4 years after the date of the recording of the certificate or within 4 years after the date of the last extension of the lien pursuant to this subsection, the lien may be extended by recording a new certificate in the office of the county recorder. From the date of recording, the lien is extended for 4 years to all real and personal property situated in the county that is owned by the debtor or acquired by the debtor afterwards, unless the lien is sooner released or otherwise discharged.

(Added to NRS by 1999, 3444; A 2009, 1178; 2011, 454)

NRS 353C.190 State Controller may offset debt with amount owed to debtor by state agency; filing of claim on behalf of debtor; regulations.

1. The State Controller may offset any amount due an agency from a debtor against any amount owing to that debtor by any agency, regardless of whether the agency which owes the amount is the same agency to which the debtor owes the debt. Whenever the combined amount owing to a debtor by all agencies is insufficient to offset all the amounts due the agencies from the debtor, the State Controller shall allocate the amount available from the debtor among the agencies in such a manner as the State Controller determines is appropriate.

2. If a debtor who owes a debt to an agency has a claim against that agency or another agency and refuses or neglects to file the claim with the agency within a reasonable time, the State Controller may file the claim on behalf of the debtor. If the State Controller files the claim, it has the same force and effect as though filed by the debtor. The amount due the debtor from the agency is the net amount otherwise owing to the debtor after any offset as provided in this section.

3. The State Controller shall adopt such regulations as are necessary to carry out the provisions of this section, including, without limitation, the manner in which offsets will be allocated among agencies.

(Added to NRS by 1999, 3445; A 2009, 1178)

1. The State Controller shall act as the collection agent for each agency.

2. An agency shall coordinate all its debt collection efforts through the State Controller.

3. Unless an agency and the State Controller agree on a different time, an agency shall assign a debt to the State Controller for collection not later than 60 days after the debt becomes past due.

4. An agency shall not assign a debt to the State Controller for collection if the debt is administratively contested by the debtor. For the purposes of this subsection, a debt is not administratively contested if:

(a) The debtor and the agency have agreed on the existence and amount of the debt;

(b) The debtor has failed to contest timely the existence or amount of the debt in accordance with the administrative procedures prescribed by the agency; or

(c) The debtor has timely contested the debt in accordance with the administrative procedures prescribed by the agency and the agency has issued a final decision concerning the existence and amount of the debt.

5. Upon the request of an agency, the State Controller shall waive a requirement of this section:

(a) If the State Controller determines that the agency has the resources to engage in its own debt collection efforts; or

(b) For good cause shown.

6. If the State Controller waives the requirements of subsection 1 or 2 for an agency, the agency may exercise any right or remedy conferred on the State Controller pursuant to the provisions of NRS 353C.130 to 353C.180, inclusive, and 353C.200 to 353C.230, inclusive, to collect a debt.

7. An agency that is authorized by specific statute to collect a debt on behalf of or in trust for a particular person or entity may assign the debt to the State Controller for collection pursuant to this section. If such an agency does not assign a debt to the State Controller pursuant to this section, the agency may, in addition to any right or remedy conferred on the agency by specific statute to collect a debt, exercise any right or remedy conferred on the State Controller pursuant to the provisions of NRS 353C.130 to 353C.180, inclusive, and 353C.200 to 353C.230, inclusive, to collect the debt.

(Added to NRS by 2001, 1876; A 2009, 1179; 2015, 134)

NRS 353C.1955 Date for accrual of interest; rate of interest. If an agency assigns a debt to the State Controller for collection pursuant to NRS 353C.195 and the debt is subject to the payment of interest pursuant to a specific statute or regulation, interest must accrue on the debt at the rate most recently established pursuant to NRS 99.040 beginning on the date of the assignment of the debt to the State Controller, notwithstanding any other rate of interest set forth in the specific statute or regulation.

(Added to NRS by 2013, 2718)

NRS 353C.196 Limitation on refund for overpayment of debt; exception. The State Controller is not required to draw a warrant to refund an overpayment of a debt which is paid to the State Controller if the amount of the overpayment is less than $10, unless the debtor, not later than 1 year after the date of the overpayment, submits a written request to the State Controller for payment of the refund.

(Added to NRS by 2013, 2718)

1. The State Controller shall establish and maintain a list of persons who owe a debt to an agency that has been assigned to the State Controller for collection pursuant to NRS 353C.195.

2. A licensing agency shall provide to the State Controller:

(a) The name, address and social security number or employer identification number, as applicable, of each licensee; and

(b) The business identification number of the licensee, if the licensee has a state business license.

3. A licensing agency shall provide the information described in subsection 2:

(a) On or before February 1 of each year for licensees who renewed licenses from July 1 through December 31 of the previous calendar year; or

(b) On or before August 1 of each year for licensees who renewed licenses from January 1 through June 30 of the current calendar year.

4. If the State Controller determines that the name of any licensee appears on the list established by the State Controller pursuant to subsection 1, the State Controller shall send a written notice to the licensee, which includes, without limitation:

(a) The amount of the debt;

(b) A request for payment of the debt;

(c) Notification that the licensee may enter into an agreement with the State Controller pursuant to NRS 353C.130 for the payment of the debt;

(d) Notification that the licensee must respond to the notice within 30 days after the date on which the notice was sent;

(e) Notification that the licensee may request a hearing to determine the validity of the debt not later than 30 days after the date on which the notice was sent; and

(f) Notification that the licensing agency is prohibited from renewing the license of the licensee unless the licensee pays the debt, enters into an agreement for the payment of the debt pursuant to NRS 353C.130 or demonstrates to the State Controller that the debt is not valid.

5. The State Controller shall notify the licensing agency if the licensee does not pay the debt that has been assigned to the State Controller for collection, enter into an agreement for the payment of the debt pursuant to NRS 353C.130 or demonstrate that the debt is not valid. A licensing agency shall not renew the license of the licensee who is the subject of the notification until the State Controller notifies the licensing agency that the licensee has:

(a) Satisfied the debt;

(b) Entered into an agreement for the payment of the debt pursuant to NRS 353C.130; or

6. Information shared between the State Controller and a licensing agency to carry out the provisions of this section is not a public record.

7. A licensing agency may not be held liable in any civil action for any action taken by the licensing agency in good faith to comply with the provisions of this section.

8. The State Controller shall verify with the Secretary of State the information related to the state business license of each licensee.

9. The State Controller shall adopt such regulations as the State Controller determines necessary or advisable to carry out the provisions of this section.

10. As used in this section:

(a) “License” means a state business license or any license, certification, registration, permit or other authorization that grants a person the authority to engage in a profession or occupation in this State.

(b) “Licensee” means a person to whom a license has been issued.

(c) “Licensing agency” means the Secretary of State or any agency, board or commission that regulates an occupation or profession except for the Department of Motor Vehicles, the Division of Insurance of the Department of Business and Industry, the Commissioner of Insurance or any local government.

(d) “State business license” has the meaning ascribed to it in NRS 76.030.

(Added to NRS by 2013, 2718; A 2021, 2273)

NRS 353C.198 Appointment of agent to file application for summary judgment or record certificate of liability against debtor.

1. Notwithstanding any specific statute to the contrary, if an agency has assigned a debt to the State Controller for collection pursuant to NRS 353C.195, the State Controller may:

(a) Appoint a private debt collector or any other person as his or her agent to:

(1) File an application for the entry of summary judgment against the debtor pursuant to NRS 353C.150; or

(2) Record a certificate of liability against the debtor in the office of a county recorder pursuant to NRS 353C.180; and

(b) Authorize his or her agent to incur any reasonable costs, including, without limitation, attorney’s fees, that are necessary to carry out his or her duties pursuant to the appointment.

2. The State Controller must, before appointing an agent pursuant to this section, determine that making the appointment is likely to generate more net revenue for the State than other methods available to the State Controller to collect the debt.

(Added to NRS by 2009, 1174)

NRS 353C.200 Contract with private debt collector: Conditions; provisions regarding costs of and fees for collecting debt.

1. Except as otherwise provided in subsection 2, if an agency has assigned a debt to the State Controller for collection pursuant to NRS 353C.195, the State Controller may enter into a contract with a private debt collector or any other person for the assignment of the collection of the debt if the State Controller:

(a) Determines the assignment is likely to generate more net revenue than equivalent efforts by the State Controller to collect the debt, including collection efforts pursuant to this chapter;

(b) Determines the assignment will not compromise future collections of state revenue; and

(c) Notifies the debtor in writing at his or her address of record that the debt will be turned over for private collection unless the debtor:

(1) Pays the debt in full; or

(2) Enters into an agreement, pursuant to NRS 353C.130, for the payment of the debt on an installment basis.

2. A contract for the assignment of the collection of a debt may provide for:

(a) Payment by the State Controller to the private debt collector or other person of the costs of collection and fees for collecting the debt; or

(b) Collection by the private debt collector or other person from the debtor of the costs of collection and fees for collecting the debt.

(Added to NRS by 1999, 3445; A 2001, 1877; 2009, 1179)

1. Notwithstanding any specific statute to the contrary, the State Controller may, in addition to any other remedy provided for in this chapter, give notice of the amount of a debt owed to this State and a demand to transmit to any person, including, without limitation, any officer, agency or political subdivision of this state, who has in his or her possession or under his or her control any credits or other personal property belonging to the debtor or who owes any debts to the debtor that remain unpaid. The notice and demand to transmit must be delivered personally or by certified or registered mail:

(a) Not later than 4 years after the debt became due; or

(b) Not later than 4 years after the last recording of an abstract of judgment pursuant to NRS 353C.170 or a certificate of liability pursuant to NRS 353C.180.

2. If such notice is given to an officer or agency of this state, the notice must be delivered before the State Controller may file a claim pursuant to NRS 353C.190 on behalf of the debtor.

3. An agency that receives a notice and demand to transmit pursuant to this section may satisfy any debt owed to it by the debtor before it honors the notice and demand to transmit. If the agency is holding a bond or other property of the debtor as security for debts owed or that may become due and owing by the debtor, the agency is not required to transmit the amount of the bond or other property unless the agency determines that holding the bond or other property of the debtor as security is no longer required.

4. Except as otherwise provided by specific statute, a person who receives a demand to transmit pursuant to this section shall not thereafter transfer or otherwise dispose of the credits or other personal property of, or debts owed to, the person who is the subject of the demand to transmit without the consent of the State Controller.

5. Except as otherwise provided by specific statute, a person who receives a demand to transmit pursuant to this section shall, within 10 days thereafter, inform the State Controller of, and transmit to the State Controller within the time and in the manner requested by the State Controller, all credits or other personal property in his or her possession or control that belong to, and all debts that he or she owes to, the person who is the subject of the demand to transmit. Except as otherwise provided in subsection 6, no further notice is required to be served on such persons.

6. Except as otherwise provided by specific statute, if the property of the debtor consists of a series of payments owed to the debtor, the person who owes or controls the payments shall transmit the payments to the State Controller until otherwise notified by the State Controller. If the debt of the debtor is not paid within 1 year after the date on which the State Controller issued the original demand to transmit, the State Controller shall:

(a) Issue another demand to transmit to the person responsible for making the payments that informs the person to continue transmitting payments to the State Controller; or

(b) Notify the person that his or her duty to transmit the payments to the State Controller has ceased.

7. If the notice and demand to transmit is intended to prevent the transfer or other disposition of a deposit in a bank or other depository institution, or of any other credit or personal property in the possession or under the control of the bank or depository institution, the notice must be delivered or mailed to any branch or office of the bank or depository institution at which the deposit is carried or the credit or personal property is held.

8. If any person to whom the State Controller delivers a notice and demand to transmit transfers or otherwise disposes of any property or debts required by this chapter to be transmitted to the State Controller, the person is, to the extent of the value of the property or the amount of the debts so transferred or disposed of, liable to the State Controller for any portion of the debt that the State Controller is unable to collect from the debtor solely by reason of the transfer or other disposition of the property or debt.

9. A debtor who owes a debt to an agency for which the State Controller delivers a notice and demand to transmit concerning the debtor pursuant to this section is entitled to an administrative hearing before that agency to challenge the collection of the debt pursuant to the demand to transmit. Each agency may adopt such regulations as are necessary to provide an administrative hearing for the purposes of this subsection.

(Added to NRS by 1999, 3446; A 2001, 1877; 2009, 1180; 2011, 455)

NRS 353C.220 Bad debts: Designation; removal from books of account of State; effect of removal; master file.

1. Except as otherwise provided in NRS 463.123, if the State Controller determines that it is impossible or impractical to collect a debt, the State Controller may request the State Board of Examiners to designate the debt as a bad debt. The State Board of Examiners, by an affirmative vote of the majority of the members of the Board, may designate the debt as a bad debt if the Board is satisfied that the collection of the debt is impossible or impractical. If the debt is not more than $50, the State Board of Examiners may delegate to its Clerk the authority to designate the debt as a bad debt. The State Controller may appeal a denial of a request to designate the debt as a bad debt by the Clerk to the State Board of Examiners.

2. Upon the designation of a debt as a bad debt pursuant to this section, the State Board of Examiners or its Clerk shall immediately notify the State Controller thereof. Upon receiving the notification, the State Controller shall direct the removal of the debt from the books of account of the State of Nevada. A bad debt that is removed pursuant to this section remains a legal and binding obligation owed by the debtor to the State of Nevada.

3. The State Controller shall keep a master file of all debts that are designated as bad debts pursuant to this section. For each such debt, the State Controller shall record the name of the debtor, the amount of the debt, the date on which the debt was incurred and the date on which it was removed from the records and books of account of the State of Nevada, and any other information concerning the debt that the State Controller determines is necessary.

(Added to NRS by 1999, 3447; A 2001, 1878; 2003, 1452; 2007, 239; 2009, 1181; 2023, 1508)

NRS 353C.222 Selling certain debt in lieu of requesting designation of debt as bad debt; deposit of money received from sale of debt.

1. If the period of limitation for the collection of a debt set forth in NRS 353C.140 has expired, the State Controller may, in lieu of requesting the State Board of Examiners to designate the debt as a bad debt pursuant to NRS 353C.220, sell the debt to any person.

2. All money received by the State Controller from the sale of a debt pursuant to subsection 1 must be deposited in the Debt Recovery Account created by NRS 353C.226.

(Added to NRS by 2009, 1175; A 2013, 2720)

NRS 353C.224 Distribution of money collected from debtor.

1. If the State Controller collects any money owed to an agency from a debtor or receives any money from the employer of a debtor or a private debt collector or other person to whom the State Controller has assigned the collection of a debt owed to an agency, the State Controller shall, unless prohibited by federal law, transfer the net amount of money owed to the agency:

(a) Except as otherwise provided in paragraph (c), to the Debt Recovery Account created by NRS 353C.226 if the debt is owed to an agency whose budget is supported exclusively or in part from the State General Fund.

(b) Except as otherwise provided in paragraph (c), to an account specified by the agency if the debt is owed to an agency whose budget is supported exclusively from sources other than the State General Fund.

(c) If a specific statute requires the money to be deposited in a specific account or used for a specific purpose, to the specific account required by statute or to the account from which money is expended for the purpose specified.

2. If the State Controller is unable to determine where to transfer the net amount of money collected pursuant to subsection 1, the money must be deposited in the Debt Recovery Account. If an agency disputes the decision to deposit the money in the Debt Recovery Account pursuant to this subsection, the agency may, not later than 60 days after the money is deposited in the Debt Recovery Account, submit a written request to the Interim Finance Committee seeking its determination of where the money collected pursuant to subsection 1 should be deposited. If an agency fails to submit such a written request timely, the money must remain in the Debt Recovery Account and be used in accordance with NRS 353C.226.

3. As used in this section, “net amount of money owed to the agency” means the money owed to an agency by a debtor that is collected or received by the State Controller minus:

(a) Any fees owed pursuant to a specific statute to the State Controller for collection of the debt;

(b) Any costs incurred or fees paid by the State Controller to collect any debt assigned to the State Controller for collection by the agency; and

(c) Any interest on the debt collected by the State Controller under the terms of an agreement with the debtor, pursuant to NRS 353C.130, for the payment of the debt on an installment basis.

(Added to NRS by 2009, 1175; A 2013, 2720; 2015, 135)

NRS 353C.226 Debt Recovery Account: Creation; use; expenditure of money in Account.

1. The Debt Recovery Account is hereby created in the State General Fund.

2. Money in the Account may only be used for support of the debt collection efforts of the State Controller pursuant to this chapter.

3. Money transferred to the Account is a continuing appropriation solely for the purpose of authorizing the expenditure of the transferred money for the purpose set forth in subsection 2.

4. Upon the approval of the Interim Finance Committee, the State Controller may expend money in the Account.

(Added to NRS by 2009, 1175)

NRS 353C.230 Remedies of state are supplemental; additional remedies unimpaired. The remedies of this state provided for in this chapter are intended to supplement existing remedies applicable to the collection of debts. Nothing contained in this chapter shall be construed to limit or repeal additional remedies agreed to by any person or an agency in any written agreement or contract with this state.

(Added to NRS by 1999, 3447)

NRS 353C.240 Development and operation of system for matching data to collect debts: Duties and liability of State Controller and financial institutions; use of system; confidentiality.

1. The State Controller shall enter into agreements with financial institutions doing business in this State to coordinate the development and operation of a system for matching data, using automated exchanges of data to the maximum extent feasible.

2. In addition to any other remedy provided for in this chapter, the State Controller may use the system for matching data developed and operated pursuant to subsection 1 to collect a debt, plus any applicable penalties and interest.

3. A financial institution in this State shall:

(a) Cooperate with the State Controller in carrying out the provisions of subsection 1.

(b) Use the system to provide to the State Controller for each calendar quarter the name, address of record, social security number or other number assigned for taxpayer identification of each person who maintains an account at the financial institution, as identified by the State Controller by name and social security number or other number assigned for taxpayer identification.

(c) In response to the receipt from the State Controller of notification of debt that a person owes the State, encumber on behalf of the State Controller a portion of the assets of the person held by the financial institution sufficient to cover the debt and surrender those assets to the State Controller. A financial institution is not required to encumber or surrender any assets received by the financial institution on behalf of the person after the financial institution received the notice of the debt from the State Controller.

4. A financial institution may not be held liable in any civil or criminal action for:

(a) Any disclosure of information to the State Controller pursuant to this section.

(b) Encumbering or surrendering any assets held by the financial institution pursuant to this section.

5. If a court issues an order to return to a person any assets surrendered by a financial institution pursuant to subsection 3, the State Controller is not liable to the person for any of those assets that have been provided to the State Controller in accordance with the order for the payment of a debt.

6. All information provided to the State Controller by a financial institution pursuant to this section is confidential and may only be used by the State Controller for use in the collection of a debt owed to the State.

7. As used in this section, “financial institution” has the meaning ascribed to it in NRS 239A.030.

(Added to NRS by 2011, 2598)