EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

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

1-2 new chapter to consist of the provisions set forth as sections 2 to 24,

1-3 inclusive, of this act.

1-4 Sec. 2. As used in this chapter, unless the context otherwise requires,

1-5 the words and terms defined in sections 3 to 9, inclusive, of this act have

1-6 the meanings ascribed to them in those sections.

1-7 Sec. 3. "Agency" means an agency, bureau, board, commission,

1-8 department or division of the executive department of state government.

1-9 Sec. 4. "Agreement" means a transaction between one or more

1-10 persons and an agency or the State of Nevada whereby each party to the

1-11 transaction becomes obligated to the other with reciprocal rights to

1-12 demand performance of what is promised by the other.

1-13 Sec. 5. "Debt" means a tax, fee, fine or other obligation:

1-14 1. That is owed to an agency or the State of Nevada; and

1-15 2. The payment of which is past due.

2-1 Sec. 6. "Fee" means a charge fixed by law for services or for the use

2-2 of a privilege within the control of an agency or the State of Nevada.

2-3 Sec. 7. "Fine" means a requirement to pay a sum of money that is

2-4 imposed on a person for an act of wrongdoing.

2-5 Sec. 8. "Person" includes any political subdivision of this state or

2-6 other governmental entity which is not an agency.

2-7 Sec. 9. "Tax" means any compulsory charge levied by an agency or

2-8 the State of Nevada against the wealth of a person for the common

2-9 benefit of the general public.

2-10 Sec. 10. The provisions of this chapter apply to an agency only to the

2-11 extent that no other specific statute exists which provides for the

2-12 collection of debts due the agency. To the extent that the provisions of

2-13 this chapter conflict with such a specific statute, the provisions of the

2-14 specific statute control.

2-15 Sec. 10.5. 1. Except as otherwise provided in subsection 2, an

2-16 agency may request the state controller, in writing, to act as the collection

2-17 agent for the agency. Such a request must include the circumstances in

2-18 which the state controller may act as the collection agent for the agency.

2-19 2. The provisions of this section do not apply to:

2-20 (a) The department of taxation;

2-21 (b) The employment security division of the department of

2-22 employment, training and rehabilitation;

2-23 (c) The Nevada gaming commission;

2-24 (d) The division of industrial relations of the department of business

2-25 and industry;

2-26 (e) The department of motor vehicles and public safety; and

2-27 (f) The state industrial insurance system.

2-28 Sec. 11. For the purposes of this chapter, a debt is past due if the

2-29 debt has not been remitted and paid to an agency or the State of Nevada

2-30 as required by law, or as agreed upon by the debtor and the agency or the

2-31 State of Nevada, as appropriate.

2-32 Sec. 12. The state controller and the attorney general may jointly

2-33 adopt such regulations as are necessary to carry out the provisions of this

2-34 chapter.

2-35 Sec. 13. Each agency shall submit to the state controller periodic

2-36 reports of the debts owed to the agency. The state controller shall

2-37 maintain the reports to the extent that resources are available. The state

2-38 controller and the attorney general shall jointly prescribe the time, form

2-39 and manner of the reports.

2-40 Sec. 14. An agency may enter into an agreement with a debtor

2-41 which provides for the payment of a debt owed by the debtor to the

2-42 agency on an installment basis over a 12-month or lesser period. Upon

2-43 good cause shown by the debtor, the agency may extend the period

3-1 during which installment payments will be made for more than a

3-2 12-month period.

3-3 Sec. 15. If a person has not paid a debt that the person owes to an

3-4 agency, the attorney general, upon the request of the agency:

3-5 1. Except as otherwise provided in this section, shall bring an action

3-6 in a court of competent jurisdiction; or

3-7 2. If the action is a small claim subject to chapter 73 of NRS, may

3-8 bring an action in a court of competent jurisdiction,

3-9 on behalf of this state and the agency to collect the debt, plus any

3-10 applicable penalties and interest. The action must be brought not later

3-11 than 4 years after the date on which the debt became due or within 5

3-12 years after the date on which a certificate of liability was last recorded

3-13 pursuant to section 19 of this act, as appropriate.

3-14 Sec. 16. 1. In addition to any other remedy provided for in this

3-15 chapter, if a person who owes a debt to an agency:

3-16 (a) Fails to pay the debt when it is due, or fails to pay an agreed upon

3-17 amount in satisfaction of the debt; or

3-18 (b) Defaults on a written or other agreement with an agency relating

3-19 to the payment of the debt,

3-20 the agency may, within 4 years after the date on which the debt became

3-21 due or the date on which the debtor defaulted, as appropriate, file with

3-22 the office of the clerk of a court of competent jurisdiction an application

3-23 for the entry of summary judgment against the debtor for the amount

3-24 due.

3-25 2. An agency that intends to file an application for the entry of

3-26 summary judgment pursuant to this section shall, not less than 15 days

3-27 before the date on which the agency intends to file the application, notify

3-28 the debtor of its intention to file the application. The notification must be

3-29 sent by certified mail to the last known address of the debtor and must

3-30 include the name of the agency, the amount sought to be recovered and

3-31 the date on which the application will be filed with the court.

3-32 3. An application for the entry of summary judgment must:

3-33 (a) Be accompanied by a certificate that specifies:

3-34 (1) The amount of the debt, including any interest and penalties

3-35 due;

3-36 (2) The name and address of the debtor, as the name and address of

3-37 the debtor appear on the records of the agency;

3-38 (3) The basis for the determination by the agency of the amount

3-39 due; and

3-40 (4) That the agency has complied with the applicable provisions of

3-41 law relating to the determination of the amount required to be paid; and

3-42 (b) Include:

4-1 (1) A request that judgment be entered against the debtor for the

4-2 amount specified in the certificate; and

4-3 (2) Evidence that the debtor was notified of the application for the

4-4 entry of summary judgment in accordance with subsection 2.

4-5 Sec. 17. The court clerk, upon the filing of an application for the

4-6 entry of summary judgment which complies with the requirements set

4-7 forth in section 16 of this act, shall forthwith enter a judgment for the

4-8 agency against the debtor in the amount of the debt, plus any penalties

4-9 and interest, as set forth in the certificate. The agency shall serve a copy

4-10 of the judgment, together with a copy of the application and the

4-11 certificate, upon the debtor against whom the judgment is entered, either

4-12 by personal service or by mailing a copy to the last known address of the

4-13 debtor as it appears in the records of the agency.

4-14 Sec. 18. 1. An abstract of the judgment entered pursuant to section

4-15 17 of this act, or a copy thereof, may be recorded in the office of the

4-16 county recorder of any county.

4-17 2. From the time of its recordation, the judgment becomes a lien

4-18 upon all real and personal property situated in the county that is owned

4-19 by the judgment debtor, or which the debtor may afterward acquire, until

4-20 the lien expires. The lien has the force, effect and priority of a judgment

4-21 lien and continues for 5 years after the date of the judgment so entered

4-22 by the court clerk unless sooner released or otherwise discharged.

4-23 3. Within 5 years after the date of the recording of the judgment or

4-24 within 5 years after the date of the last extension of the lien pursuant to

4-25 this subsection, the lien may be extended by recording an affidavit of

4-26 renewal in the office of the county recorder. From the date of recording,

4-27 the lien is extended for 5 years to all real and personal property situated

4-28 in the county that is owned by the judgment debtor or acquired by the

4-29 judgment debtor afterwards, unless the lien is sooner released or

4-30 otherwise discharged.

4-31 Sec. 19. 1. In addition to any other remedy provided for in this

4-32 chapter, an agency may, within 4 years after the date that a debt becomes

4-33 due, record a certificate of liability in the office of a county recorder

4-34 which states:

4-35 (a) The amount of the debt, together with any interest or penalties due

4-36 thereon;

4-37 (b) The name and address of the debtor as the name and address of

4-38 the debtor appear on the records of the agency;

4-39 (c) That the agency has complied with all procedures required by law

4-40 for determining the amount of the debt; and

4-41 (d) That the agency has notified the debtor in accordance with

4-42 subsection 2.

5-1 2. An agency that intends to file a certificate of liability pursuant to

5-2 this section shall, not less than 15 days before the date on which the

5-3 agency intends to file the certificate, notify the debtor of its intention to

5-4 file the certificate. The notification must be sent by certified mail to the

5-5 last known address of the debtor and must include the name of the

5-6 agency, the amount sought to be recovered and the date on which the

5-7 certificate will be filed with the county recorder.

5-8 3. From the time of the recording of the certificate, the amount of

5-9 the debt, including interest which accrues on the debt after the recording

5-10 of the certificate, constitutes a lien upon all real and personal property

5-11 situated in the county in which the certificate was recorded that is owned

5-12 by the debtor or acquired by the debtor afterwards and before the lien

5-13 expires. The lien has the force, effect and priority of a judgment lien on

5-14 all real and personal property situated in the county in which the

5-15 certificate was recorded and continues for 5 years after the date of

5-16 recording unless sooner released or otherwise discharged.

5-17 4. Within 5 years after the date of the recording of the certificate or

5-18 within 5 years after the date of the last extension of the lien pursuant to

5-19 this subsection, the lien may be extended by recording a new certificate

5-20 in the office of the county recorder. From the date of recording, the lien

5-21 is extended for 5 years to all real and personal property situated in the

5-22 county that is owned by the debtor or acquired by the debtor afterwards,

5-23 unless the lien is sooner released or otherwise discharged.

5-24 Sec. 20. 1. The state controller may, to the extent that resources

5-25 are available, offset any amount due an agency from a debtor against

5-26 any amount owing to that debtor by any agency, regardless of whether

5-27 the agency which owes the amount is the same agency to which the

5-28 debtor owes the debt. Whenever the combined amount owing to a debtor

5-29 by all agencies is insufficient to offset all the amounts due the agencies

5-30 from the debtor, the state controller shall allocate the amount available

5-31 from the debtor among the agencies in such a manner as the state

5-32 controller determines is appropriate.

5-33 2. If a debtor who owes a debt to an agency has a claim against that

5-34 agency or another agency and refuses or neglects to file his claim with

5-35 the agency within a reasonable time, the head of the agency to which the

5-36 debtor owes the debt may file the claim on behalf of the debtor. If the

5-37 state controller approves the claim, it has the same force and effect as

5-38 though filed by the debtor. The amount due the debtor from the agency is

5-39 the net amount otherwise owing to the debtor after any offset as provided

5-40 in this section.

5-41 3. The state controller shall adopt such regulations as are necessary

5-42 to carry out the provisions of this section, including, without limitation,

5-43 the manner in which offsets will be allocated among agencies.

6-1 Sec. 21. 1. Except as otherwise provided in subsection 2, an

6-2 agency may enter into a contract with a private debt collector or any

6-3 other person for the assignment of the collection of a debt if the agency:

6-4 (a) Determines the assignment is likely to generate more net revenue

6-5 than equivalent efforts by the agency to collect the debt, including

6-6 collection efforts pursuant to this chapter;

6-7 (b) Determines the assignment will not compromise future collections

6-8 of state revenue; and

6-9 (c) Notifies the debtor in writing at his address of record that the debt

6-10 will be turned over for private collection unless the debt is paid.

6-11 2. An agency shall not enter into a contract with a private debt

6-12 collector or any other person for the assignment of the collection of a

6-13 debt if the debt has been contested by the debtor.

6-14 3. Any contract entered into pursuant to this section is subject to

6-15 approval by the director of the department of administration and the state

6-16 controller.

6-17 Sec. 22. 1. Notwithstanding any specific statute to the contrary, an

6-18 agency to which a debt is owed may, in addition to any other remedy

6-19 provided for in this chapter, give notice of the amount of the debt and a

6-20 demand to transmit to any person, including, without limitation, any

6-21 officer, agency or political subdivision of this state, who has in his

6-22 possession or under his control any credits or other personal property

6-23 belonging to the debtor, or who owes any debts to the debtor that remain

6-24 unpaid. The notice and demand to transmit must be delivered personally

6-25 or by certified or registered mail:

6-26 (a) Not later than 4 years after the debt became due; or

6-27 (b) Not later than 5 years after the last recording of an abstract of

6-28 judgment pursuant to section 18 of this act or a certificate of liability

6-29 pursuant to section 19 of this act.

6-30 2. If such notice is given to an officer or agency of this state, the

6-31 notice must be delivered before the agency which sent the notice may file

6-32 a claim with the state controller pursuant to section 20 of this act on

6-33 behalf of the debtor.

6-34 3. An agency that receives a notice and demand to transmit pursuant

6-35 to this section may satisfy any debt owed to it by the debtor before it

6-36 honors the notice and demand to transmit. If the agency is holding a

6-37 bond or other property of the debtor as security for debts owed or that

6-38 may become due and owing by the debtor, the agency is not required to

6-39 transmit the amount of the bond or other property unless the agency

6-40 determines that holding the bond or other property of the debtor as

6-41 security is no longer required.

6-42 4. Except as otherwise provided by specific statute, a person who

6-43 receives a demand to transmit pursuant to this section shall not

7-1 thereafter transfer or otherwise dispose of the credits or other personal

7-2 property of, or debts owed to, the person who is the subject of the demand

7-3 to transmit without the consent of the agency which sent the demand to

7-4 transmit.

7-5 5. Except as otherwise provided by specific statute, a person who

7-6 receives from an agency a demand to transmit pursuant to this section

7-7 shall, within 10 days thereafter, inform the agency of, and transmit to the

7-8 agency within the time and in the manner requested by the agency, all

7-9 credits or other personal property in his possession or control that belong

7-10 to, and all debts that he owes to, the person who is the subject of the

7-11 demand to transmit. Except as otherwise provided in subsection 6, no

7-12 further notice is required to be served on such persons.

7-13 6. Except as otherwise provided by specific statute, if the property of

7-14 the debtor consists of a series of payments owed to him, the person who

7-15 owes or controls the payments shall transmit the payments to the agency

7-16 which sent the demand to transmit until otherwise notified by the agency.

7-17 If the debt of the debtor is not paid within 1 year after the date on which

7-18 the agency issued the original demand to transmit, the agency shall:

7-19 (a) Issue another demand to transmit to the person responsible for

7-20 making the payments that informs him to continue transmitting

7-21 payments to the agency; or

7-22 (b) Notify the person that his duty to transmit the payments to the

7-23 agency has ceased.

7-24 7. If the notice and demand to transmit is intended to prevent the

7-25 transfer or other disposition of a deposit in a bank or other depository

7-26 institution, or of any other credit or personal property in the possession

7-27 or under the control of the bank or depository institution, the notice must

7-28 be delivered or mailed to the branch or office of the bank or depository

7-29 institution at which the deposit is carried or the credit or personal

7-30 property is held.

7-31 8. If any person to whom an agency delivers a notice and demand to

7-32 transmit transfers or otherwise disposes of any property or debts required

7-33 by this chapter to be transmitted to the agency, the person is, to the extent

7-34 of the value of the property or the amount of the debts so transferred or

7-35 disposed of, liable to the agency for any portion of the debt that the

7-36 agency is unable to collect from the debtor solely by reason of the

7-37 transfer or other disposition of the property or debt.

7-38 9. A debtor who owes a debt to an agency which delivers a notice and

7-39 demand to transmit concerning the debtor pursuant to this section is

7-40 entitled to an administrative hearing before that agency to challenge the

7-41 collection of the debt pursuant to the demand to transmit. Each agency

7-42 may adopt such regulations as are necessary to provide an administrative

7-43 hearing for the purposes of this subsection.

8-1 Sec. 23. 1. If the state controller and attorney general determine

8-2 that it is impractical to collect a debt, the state controller shall designate

8-3 the debt as a bad debt. A debt that has been designated as a bad debt

8-4 pursuant to this subsection may be removed from the records and books

8-5 of account of the agency to which the debt is owed or the State of

8-6 Nevada, as appropriate, except that a bad debt that is so removed

8-7 remains a legal and binding obligation owed by the debtor to the agency

8-8 or the State of Nevada, as appropriate.

8-9 2. If resources are available, the state controller shall keep a master

8-10 file of all debts that are designated as bad debts pursuant to this section.

8-11 If such a file is established and maintained, for each such debt, the state

8-12 controller shall record the name of the debtor, the amount of the debt,

8-13 the date on which the debt was incurred and the date on which it was

8-14 removed from the records and books of account of the agency or the

8-15 State of Nevada, and any other information concerning the debt that the

8-16 state controller determines is necessary.

8-17 Sec. 24. The remedies of this state provided for in this chapter are

8-18 intended to supplement existing remedies applicable to the collection of

8-19 debts. Nothing contained in this chapter shall be construed to limit or

8-20 repeal additional remedies agreed to by any person or an agency in any

8-21 written agreement or contract with this state.

8-22 Sec. 25. NRS 227.150 is hereby amended to read as follows:

8-23 227.150 1. The state controller shall:

8-43 as otherwise provided in sections 2 to 24, inclusive, of this act, and if there

9-1 is no time fixed or stipulated by law for the payment of any such accounts

9-2 or money, they are payable at the time set by the state controller.

9-3 (b) [Upon approval of the attorney general, direct the cancellation of any

9-4 accounts or money due the state.

9-5 (c)] Except as otherwise provided in subsection 3, withhold from the

9-6 compensation of an employee of the state any amount due the state for the

9-7 overpayment of the salary of the employee.

9-8 3. Before any amounts may be withheld from the compensation of an

9-9 employee pursuant to paragraph [(c)] (b) of subsection 2, the state

9-10 controller shall:

9-11 (a) Give written notice to the employee of the state controller’s intent to

9-12 withhold such amounts from the compensation of the employee; and

9-13 (b) If requested by the employee within 10 working days after receipt of

9-14 the notice, conduct a hearing and allow the employee the opportunity to

9-15 contest the state controller’s determination to withhold such amounts from

9-16 the compensation of the employee.

9-17 If the overpayment was not obtained by the employee’s fraud or willful

9-18 misrepresentation, any withholding from the compensation of the employee

9-19 must be made in a reasonable manner so as not to create an undue hardship

9-20 to the employee.

9-21 4. The state controller may adopt such regulations as are necessary to

9-22 carry out the provisions of this section.

9-23 Sec. 26. NRS 227.230 is hereby amended to read as follows:

9-24 227.230 [The] Except as otherwise provided in sections 2 to 24,

9-31 due the state.

9-32 Sec. 27. This act becomes effective on July 1, 1999.