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 morepersons 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 useof 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 isimposed on a person for an act of wrongdoing.
Sec. 8.
"Person" includes any political subdivision of this state orother governmental entity which is not an agency.
Sec. 9.
"Tax" means any compulsory charge levied by an agency orthe 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 theextent 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 thedebt 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 theattorney 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 periodicreports 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 debtorwhich 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 anagency, 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 thischapter, 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 theentry 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 section17 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 thischapter, 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
(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 resourcesare 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
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, anagency 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, anagency 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 orimpractical 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 areintended 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:
(b) Upon approval of the attorney general, direct the cancellation of any
accounts or money due the state.
Sec. 26. NRS 227.230 is hereby amended to read as follows:
Sec. 27. This act becomes effective on July 1, 1999.
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