1. Senate Bill No. 500–Committee on Government Affairs

CHAPTER........

AN ACT relating to public financial administration; providing procedures for the collection

of certain debts owed to state agencies; requiring certain reporting by state agencies;

providing for the adoption of necessary regulations; and providing other matters

properly relating thereto.

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Title 31 of NRS is hereby amended by adding thereto a

new chapter to consist of the provisions set forth as sections 2 to 24,

inclusive, of this act.

Sec. 2. As used in this chapter, unless the context otherwise requires,

the words and terms defined in sections 3 to 9, inclusive, of this act have

the meanings ascribed to them in those sections.

Sec. 3. "Agency" means an agency, bureau, board, commission,

department or division of the executive department of state government.

Sec. 4. "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.

Sec. 5. "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.

Sec. 6. "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.

Sec. 7. "Fine" means a requirement to pay a sum of money that is

imposed on a person for an act of wrongdoing.

Sec. 8. "Person" includes any political subdivision of this state or

other governmental entity which is not an agency.

Sec. 9. "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.

Sec. 10. 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.

Sec. 10.5. (Deleted by amendment.)

Sec. 11. 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.

Sec. 12. The director of the department of administration and the

attorney general may jointly adopt such regulations as are necessary to

carry out the provisions of this chapter.

Sec. 13. Each agency shall submit to the state controller periodic

reports of the debts owed to the agency. The state controller shall

maintain the reports to the extent that resources are available. The

director of the department of administration and the attorney general

shall jointly prescribe the time, form and manner of the reports.

Sec. 14. An agency may enter into an agreement with a debtor

which provides for the payment of a debt owed by the debtor to the

agency on an installment basis over a 12-month or lesser period. Upon

good cause shown by the debtor, the agency may extend the period

during which installment payments will be made for more than a

12-month period.

Sec. 15. If a person has not paid a debt that the person owes to an

agency, the attorney general, upon the request of the agency:

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,

on behalf of this state and the agency 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 5

years after the date on which a certificate of liability was last recorded

pursuant to section 19 of this act, as appropriate.

Sec. 16. 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 with an agency relating

to the payment of the debt,

the agency 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. An agency that intends to file an application for the entry of

summary judgment pursuant to this section shall, not less than 15 days

before the date on which the agency intends to file the application, notify

the debtor of its 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, 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 agency;

(3) The basis for the determination by the agency of the amount

due; and

(4) That the agency 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.

Sec. 17. The court clerk, upon the filing of an application for the

entry of summary judgment which complies with the requirements set

forth in section 16 of this act, shall forthwith enter a judgment for the

agency against the debtor in the amount of the debt, plus any penalties

and interest, as set forth in the certificate. The agency 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 as it appears in the records of the agency.

Sec. 18. 1. An abstract of the judgment entered pursuant to section

17 of this act, 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 5 years after the date of the judgment so entered

by the court clerk unless sooner released or otherwise discharged.

3. Within 5 years after the date of the recording of the judgment or

within 5 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 5 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.

Sec. 19. 1. In addition to any other remedy provided for in this

chapter, an agency 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 agency;

(c) That the agency has complied with all procedures required by law

for determining the amount of the debt; and

(d) That the agency has notified the debtor in accordance with

subsection 2.

2. An agency that intends to file a certificate of liability pursuant to

this section shall, not less than 15 days before the date on which the

agency intends to file the certificate, notify the debtor of its 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, 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 5 years after the date of

recording unless sooner released or otherwise discharged.

4. Within 5 years after the date of the recording of the certificate or

within 5 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 5 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.

Sec. 20. 1. The state controller may, to the extent that resources

are available, 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 his claim with

the agency within a reasonable time, the head of the agency to which the

debtor owes the debt may file the claim on behalf of the debtor. If the

state controller approves 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.

Sec. 21. 1. Except as otherwise provided in subsection 2, an

agency may enter into a contract with a private debt collector or any

other person for the assignment of the collection of a debt if the agency:

(a) Determines the assignment is likely to generate more net revenue

than equivalent efforts by the agency 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 address of record that the debt

will be turned over for private collection unless the debt is paid.

2. An agency shall not enter into a contract with a private debt

collector or any other person for the assignment of the collection of a

debt if the debt has been contested by the debtor.

3. Any contract entered into pursuant to this section is subject to

approval by the director of the department of administration and the state

controller.

Sec. 22. 1. Notwithstanding any specific statute to the contrary, an

agency to which a debt is owed may, in addition to any other remedy

provided for in this chapter, give notice of the amount of the debt and a

demand to transmit to any person, including, without limitation, any

officer, agency or political subdivision of this state, who has in his

possession or under his 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 5 years after the last recording of an abstract of

judgment pursuant to section 18 of this act or a certificate of liability

pursuant to section 19 of this act.

2. If such notice is given to an officer or agency of this state, the

notice must be delivered before the agency which sent the notice may file

a claim with the state controller pursuant to section 20 of this act 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 agency which sent the demand to

transmit.

5. Except as otherwise provided by specific statute, a person who

receives from an agency a demand to transmit pursuant to this section

shall, within 10 days thereafter, inform the agency of, and transmit to the

agency within the time and in the manner requested by the agency, all

credits or other personal property in his possession or control that belong

to, and all debts that he 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 him, the person who

owes or controls the payments shall transmit the payments to the agency

which sent the demand to transmit until otherwise notified by the agency.

If the debt of the debtor is not paid within 1 year after the date on which

the agency issued the original demand to transmit, the agency shall:

(a) Issue another demand to transmit to the person responsible for

making the payments that informs him to continue transmitting

payments to the agency; or

(b) Notify the person that his duty to transmit the payments to the

agency 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 the 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 an agency 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 agency, 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 agency for any portion of the debt that the

agency 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 which 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.

Sec. 23. 1. If an agency determines that it is impossible or

impractical to collect a debt, the agency 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.

2. Upon the designation of a debt as a bad debt pursuant to this

section, the state board of examiners shall immediately notify the state

controller thereof. Upon receiving the notification, the state controller

shall direct the removal of the debt from the records and books or

account of the agency to which the debt is owed or the State of Nevada,

as appropriate. A bad debt that is removed pursuant to this section

remains a legal and binding obligation owed by the debtor to the agency

or the State of Nevada, as appropriate.

3. If resources are available, the state controller shall keep a master

file of all debts that are designated as bad debts pursuant to this section.

If such a file is established and maintained, 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 agency or the

State of Nevada, and any other information concerning the debt that the

state controller determines is necessary.

Sec. 24. 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.

Sec. 25. NRS 227.150 is hereby amended to read as follows:

  1. 227.150 1. The state controller shall:
  1. (a) Open and keep an account with each county, charging the counties
  1. with the revenue collected, as shown by the auditor’s statements, and also
  1. with their proportions of the salaries of the district judges, and crediting
  1. them with the amounts paid to the state treasurer.
  1. (b) Keep and state all accounts between the State of Nevada and the
  1. United States, or any state or territory, or any person or public officer of
  1. this state, indebted to the state or entrusted with the collection,
  1. disbursement or management of any money, funds or interests arising
  1. therefrom, belonging to the state, of every character and description, if the
  1. accounts are derivable from or payable into the state treasury.
  1. (c) Settle the accounts of all county treasurers, and other collectors and
  1. receivers of all state revenues, taxes, tolls and incomes, levied or collected
  1. by any act of the legislature and payable into the state treasury.
  1. (d) Keep fair, clear, distinct and separate accounts of all the revenues
  1. and incomes of the state, and also all the expenditures, disbursements and
  1. investments thereof, showing the particulars of every expenditure,
  1. disbursement and investment.
  2. 2. The state controller may:
  1. (a) Direct the collection of all accounts or money due the state, except
  1. as otherwise provided in sections 2 to 24, inclusive, of this act, and if there
  1. is no time fixed or stipulated by law for the payment of any such accounts
  1. or money, they are payable at the time set by the state controller.

(b) Upon approval of the attorney general, direct the cancellation of any

accounts or money due the state.

  1. (c) Except as otherwise provided in subsection 3, withhold from the
  1. compensation of an employee of the state any amount due the state for the
  1. overpayment of the salary of the employee.
  1. 3. Before any amounts may be withheld from the compensation of an
  1. employee pursuant to paragraph (c) of subsection 2, the state controller
  1. shall:
  1. (a) Give written notice to the employee of the state controller’s intent to
  1. withhold such amounts from the compensation of the employee; and
  1. (b) If requested by the employee within 10 working days after receipt of
  1. the notice, conduct a hearing and allow the employee the opportunity to
  1. contest the state controller’s determination to withhold such amounts from
  1. the compensation of the employee.
  1. If the overpayment was not obtained by the employee’s fraud or willful
  1. misrepresentation, any withholding from the compensation of the employee
  1. must be made in a reasonable manner so as not to create an undue hardship
  1. to the employee.
  1. 4. The state controller may adopt such regulations as are necessary to
  1. carry out the provisions of this section.

Sec. 26. NRS 227.230 is hereby amended to read as follows:

  1. 227.230 [The] Except as otherwise provided in sections 2 to 24,
  1. inclusive, of this act, the state controller shall:
  1. 1. Direct the attorney general to institute and prosecute, in the name of
  1. the state, all proper suits for the recovery of any debts, [moneys] money or
  1. property of the state, or for the ascertainment of any right or liability
  1. concerning the same.
  1. 2. Direct and superintend the collection of all [moneys due to] money
  1. due the state.

Sec. 27. This act becomes effective on July 1, 1999.

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