requires two-thirds majority vote (§§ 3, 8, 10, 11)
A.B. 314
Assembly Bill No. 314–Committee on Government Affairs
(On Behalf of State Controller)
March 9, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes concerning collection of debts owed to state. (BDR 31‑642)
FISCAL NOTE: Effect on Local Government: No.
~
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).
AN ACT relating to state financial administration; making various changes relating to the collection of debts owed to the state; increasing certain fees and charges; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 353C of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 and 3 of this act.
1-3 Sec. 2. 1. The state controller may, if requested by any state
1-4 agency, act as the collection agent for that agency.
1-5 2. If the state controller acts as the collection agent for an agency,
1-6 the agency may coordinate all its debt collection efforts through the state
1-7 controller.
1-8 Sec. 3. Except as otherwise provided by specific statute, a person
1-9 who owes a debt pursuant to this chapter shall, in addition to the debt,
1-10 pay all costs and fees relating to the collection of the debt.
1-11 Sec. 4. NRS 353C.120 is hereby amended to read as follows:
1-12 353C.120 1. Each agency shall submit to the state controller periodic
1-13 reports of the debts owed to the agency. The state controller shall maintain
1-14 the reports to the extent that resources are available. The director of the
1-15 department of administration and the attorney general shall jointly
1-16 prescribe the time, form and manner of the reports.
1-17 2. Except to the extent that the information on the reports is declared
1-18 to be confidential by a specific statute of this state or federal law, the
1-19 state controller may make the reports available for public inspection and
2-1 may, without charge, make available for access on the Internet or its
2-2 successor, if any, the information contained in the reports.
2-3 Sec. 5. NRS 353C.200 is hereby amended to read as follows:
2-4 353C.200 1. Except as otherwise provided in subsection 2, an agency
2-5 may enter into a contract with a private debt collector or any other person
2-6 for the assignment of the collection of a debt if the agency:
2-7 (a) Determines the assignment is likely to generate more net revenue
2-8 than equivalent efforts by the agency to collect the debt, including
2-9 collection efforts pursuant to this chapter;
2-10 (b) Determines the assignment will not compromise future collections
2-11 of state revenue; and
2-12 (c) Notifies the debtor in writing at his address of record that the debt
2-13 will be turned over for private collection unless the debt is paid.
2-14 2. An agency shall not enter into a contract with a private debt
2-15 collector or any other person for the assignment of the collection of a debt
2-16 if the debt has been contested by the debtor.
2-17 3. A contract for the assignment of the collection of a debt may
2-18 provide for:
2-19 (a) Payment by the agency to the private debt collector or other person
2-20 of the costs of collection and fees for collecting the debt; or
2-21 (b) Collection by the private debt collector or other person from the
2-22 debtor of the costs of collection and fees for collecting the debt.
2-23 4. Any contract entered into pursuant to this section is subject to
2-24 approval by the director of the department of administration and the state
2-25 controller.
2-26 Sec. 6. NRS 353C.210 is hereby amended to read as follows:
2-27 353C.210 1. Notwithstanding any specific statute to the contrary, an
2-28 agency to which a debt is owed may, in addition to any other remedy
2-29 provided for in this chapter, give notice of the amount of the debt and a
2-30 demand to transmit to any person, including, without limitation, any
2-31 officer, agency or political subdivision of this state, who has in his
2-32 possession or under his control any credits or other personal property
2-33 belonging to the debtor, or who owes any debts to the debtor that remain
2-34 unpaid. The notice and demand to transmit must be delivered personally or
2-35 by certified or registered mail:
2-36 (a) Not later than 4 years after the debt became due; or
2-37 (b) Not later than 5 years after the last recording of an abstract of
2-38 judgment pursuant to NRS 353C.170 or a certificate of liability pursuant to
2-39 NRS 353C.180.
2-40 2. If such notice is given to an officer or agency of this state, the notice
2-41 must be delivered before the agency which sent the notice may file a claim
2-42 with the state controller pursuant to NRS 353C.190 on behalf of the debtor.
2-43 3. An agency that receives a notice and demand to transmit pursuant to
2-44 this section may satisfy any debt owed to it by the debtor before it honors
2-45 the notice and demand to transmit. If the agency is holding a bond or other
2-46 property of the debtor as security for debts owed or that may become due
2-47 and owing by the debtor, the agency is not required to transmit the amount
2-48 of the bond or other property unless the agency determines that holding the
2-49 bond or other property of the debtor as security is no longer required.
3-1 4. Except as otherwise provided by specific statute, a person who
3-2 receives a demand to transmit pursuant to this section shall not thereafter
3-3 transfer or otherwise dispose of the credits or other personal property of, or
3-4 debts owed to, the person who is the subject of the demand to transmit
3-5 without the consent of the agency which sent the demand to transmit.
3-6 5. Except as otherwise provided by specific statute, a person who
3-7 receives from an agency a demand to transmit pursuant to this section
3-8 shall, within 10 days thereafter, inform the agency of, and transmit to the
3-9 agency within the time and in the manner requested by the agency, all
3-10 credits or other personal property in his possession or control that belong
3-11 to, and all debts that he owes to, the person who is the subject of the
3-12 demand to transmit. Except as otherwise provided in subsection 6, no
3-13 further notice is required to be served on such persons.
3-14 6. Except as otherwise provided by specific statute, if the property of
3-15 the debtor consists of a series of payments owed to him, the person who
3-16 owes or controls the payments shall transmit the payments to the agency
3-17 which sent the demand to transmit until otherwise notified by the agency.
3-18 If the debt of the debtor is not paid within 1 year after the date on which
3-19 the agency issued the original demand to transmit, the agency shall:
3-20 (a) Issue another demand to transmit to the person responsible for
3-21 making the payments that informs him to continue transmitting payments
3-22 to the agency; or
3-23 (b) Notify the person that his duty to transmit the payments to the
3-24 agency has ceased.
3-25 7. If the notice and demand to transmit is intended to prevent the
3-26 transfer or other disposition of a deposit in a bank or other depository
3-27 institution, or of any other credit or personal property in the possession or
3-28 under the control of the bank or depository institution, the notice must be
3-29 delivered or mailed to [the] any branch or office of the bank or depository
3-30 institution at which the deposit is carried or the credit or personal property
3-31 is held.
3-32 8. If any person to whom an agency delivers a notice and demand to
3-33 transmit transfers or otherwise disposes of any property or debts required
3-34 by this chapter to be transmitted to the agency, the person is, to the extent
3-35 of the value of the property or the amount of the debts so transferred or
3-36 disposed of, liable to the agency for any portion of the debt that the agency
3-37 is unable to collect from the debtor solely by reason of the transfer or other
3-38 disposition of the property or debt.
3-39 9. A debtor who owes a debt to an agency which delivers a notice and
3-40 demand to transmit concerning the debtor pursuant to this section is
3-41 entitled to an administrative hearing before that agency to challenge the
3-42 collection of the debt pursuant to the demand to transmit. Each agency may
3-43 adopt such regulations as are necessary to provide an administrative
3-44 hearing for the purposes of this subsection.
3-45 Sec. 7. NRS 353C.220 is hereby amended to read as follows:
3-46 353C.220 1. If an agency determines that it is impossible or
3-47 impractical to collect a debt, the agency may request the state board of
3-48 examiners to designate the debt as a bad debt. The state board of
3-49 examiners, by an affirmative vote of the majority of the members of the
4-1 board, may designate the debt as a bad debt if the board is satisfied that the
4-2 collection of the debt is impossible or impractical.
4-3 2. Upon the designation of a debt as a bad debt pursuant to this section,
4-4 the state board of examiners shall immediately notify the state controller
4-5 thereof. Upon receiving the notification, the state controller shall direct the
4-6 removal of the debt from the [records and books or] books of account of
4-7 the [agency to which the debt is owed or the] State of Nevada . [, as
4-8 appropriate.] A bad debt that is removed pursuant to this section remains a
4-9 legal and binding obligation owed by the debtor to the [agency or the] State
4-10 of Nevada . [, as appropriate.]
4-11 3. If resources are available, the state controller shall keep a master file
4-12 of all debts that are designated as bad debts pursuant to this section. If such
4-13 a file is established and maintained, for each such debt, the state controller
4-14 shall record the name of the debtor, the amount of the debt, the date on
4-15 which the debt was incurred and the date on which it was removed from
4-16 the records and books of account of the agency or the State of Nevada, and
4-17 any other information concerning the debt that the state controller
4-18 determines is necessary.
4-19 Sec. 8. NRS 360.238 is hereby amended to read as follows:
4-20 360.238 The department may charge a person a fee [established by
4-21 regulation] of $25 for each check returned to the department because the
4-22 person had insufficient money or credit with the drawee to pay the check or
4-23 because the person stopped payment on the check.
4-24 Sec. 9. NRS 360.510 is hereby amended to read as follows:
4-25 360.510 1. If any person is delinquent in the payment of any tax or
4-26 fee administered by the department or if a determination has been made
4-27 against him which remains unpaid, the department may:
4-28 (a) Not later than 3 years after the payment became delinquent or the
4-29 determination became final; or
4-30 (b) Not later than 5 years after the last recording of an abstract of
4-31 judgment or of a certificate constituting a lien for tax owed,
4-32 give a notice of the delinquency and a demand to transmit personally or by
4-33 registered or certified mail to any person, including, without limitation, any
4-34 officer or department of the state or any political subdivision or agency of
4-35 the state, who has in his possession or under his control any credits or other
4-36 personal property belonging to the delinquent, or owing any debts to the
4-37 delinquent or person against whom a determination has been made which
4-38 remains unpaid, or owing any debts to the delinquent or that person. In the
4-39 case of any state officer, department or agency, the notice must be given to
4-40 the officer, department or agency before it presents the claim of the
4-41 delinquent taxpayer to the state controller.
4-42 2. A state officer, department or agency which receives such a notice
4-43 may satisfy any debt owed to it by that person before it honors the
4-44 department’s notice.
4-45 3. After receiving the demand to transmit, the persons so notified may
4-46 not transfer or otherwise dispose of the credits, other personal property, or
4-47 debts in their possession or under their control at the time they received the
4-48 notice until the department consents to a transfer or other disposition.
5-1 4. All persons so notified shall, within 10 days after receipt of the
5-2 demand to transmit, inform the department of, and transmit to the
5-3 department all such credits, other personal property, or debts in their
5-4 possession, under their control or owing by them within the time and in the
5-5 manner requested by the department. Except as otherwise provided in
5-6 subsection 5, no further notice is required to be served to those persons.
5-7 5. If the property of the delinquent taxpayer consists of a series of
5-8 payments owed to him, the person who owes or controls the payments shall
5-9 transmit the payments to the department until otherwise notified by the
5-10 department. If the debt of the delinquent taxpayer is not paid within 1 year
5-11 after the department issued the original demand to transmit, it shall issue
5-12 another demand to transmit to the person responsible for making the
5-13 payments informing him to continue to transmit payments to the
5-14 department or that his duty to transmit the payments to the department has
5-15 ceased.
5-16 6. If the notice of the delinquency seeks to prevent the transfer or other
5-17 disposition of a deposit in a bank or credit union or other credits or
5-18 personal property in the possession or under the control of a bank, credit
5-19 union or other depository institution, the notice must be delivered or mailed
5-20 to [the] any branch or office of the bank, credit union or other depository
5-21 institution at which the deposit is carried or at which the credits or personal
5-22 property is held.
5-23 7. If any person so notified makes any transfer or other disposition of
5-24 the property or debts required to be withheld or transmitted, to the extent of
5-25 the value of the property or the amount of the debts thus transferred or
5-26 paid, he is liable to the state for any indebtedness due pursuant to NRS
5-27 482.313, this chapter or chapter 362, 364A, 365, 369, 370, 372, 372A, 373,
5-28 374, 377, 377A, 444A, 585, 590 or 680B of NRS from the person with
5-29 respect to whose obligation the notice was given if solely by reason of the
5-30 transfer or other disposition the state is unable to recover the indebtedness
5-31 of the person with respect to whose obligation the notice was given.
5-32 Sec. 10. NRS 481.079 is hereby amended to read as follows:
5-33 481.079 1. Except as otherwise provided by specific statute, all
5-34 taxes, license fees and money collected pursuant to NRS 481.0475 must be
5-35 deposited with the state treasurer to the credit of the motor vehicle fund.
5-36 2. If any check accepted by the department in payment of fees
5-37 pursuant to NRS 481.0475 is dishonored upon presentation for payment:
5-38 (a) The drawer is subject to a service charge of [$10,] $25, in addition to
5-39 any other penalties provided by law; and
5-40 (b) The department may require that future payments from the person
5-41 be made by cashier’s check, money order, traveler’s check or cash.
5-42 3. The department may adjust the amount of a deposit made with the
5-43 state treasurer to the credit of the motor vehicle fund for any cash shortage
5-44 or overage resulting from the collection of fees.
5-45 Sec. 11. NRS 679B.228 is hereby amended to read as follows:
5-46 679B.228 The division may charge a person a fee [adopted by
5-47 regulation by the commissioner] of $25 for each check returned to the
5-48 division because the person had insufficient money or credit with the
6-1 drawee to pay the check or because the person stopped payment on the
6-2 check.
6-3 Sec. 12. Section 50 of chapter 224, Statutes of Nevada 1999, as
6-4 amended by section 220 of chapter 354, Statutes of Nevada 1999, at page
6-5 1555, is hereby amended to read as follows:
6-6 Sec. 50. NRS 360.510 is hereby amended to read as follows:
6-7 360.510 1. If any person is delinquent in the payment of any
6-8 tax or fee administered by the department or if a determination has
6-9 been made against him which remains unpaid, the department may:
6-10 (a) Not later than 3 years after the payment became delinquent or
6-11 the determination became final; or
6-12 (b) Not later than 5 years after the last recording of an abstract of
6-13 judgment or of a certificate constituting a lien for tax owed,
6-14 give a notice of the delinquency and a demand to transmit personally
6-15 or by registered or certified mail to any person, including, without
6-16 limitation, any officer or department of [the] this state or any political
6-17 subdivision or agency of [the] this state, who has in his possession or
6-18 under his control any credits or other personal property belonging to
6-19 the delinquent, or owing any debts to the delinquent or person against
6-20 whom a determination has been made which remains unpaid, or
6-21 owing any debts to the delinquent or that person. In the case of any
6-22 state officer, department or agency, the notice must be given to the
6-23 officer, department or agency before [it] the department presents the
6-24 claim of the delinquent taxpayer to the state controller.
6-25 2. A state officer, department or agency which receives such a
6-26 notice may satisfy any debt owed to it by that person before it honors
6-27 the [department’s notice.] notice of the department.
6-28 3. After receiving the demand to transmit, the [persons so] person
6-29 notified by the demand may not transfer or otherwise dispose of the
6-30 credits, other personal property, or debts in [their] his possession or
6-31 under [their] his control at the time [they] he received the notice until
6-32 the department consents to a transfer or other disposition.
6-33 4. [All persons so] Every person notified by a demand to
6-34 transmit shall, within 10 days after receipt of the demand to transmit,
6-35 inform the department of, and transmit to the department all such
6-36 credits, other personal property, or debts in [their] his possession,
6-37 under [their] his control or owing by [them] him within the time and
6-38 in the manner requested by the department. Except as otherwise
6-39 provided in subsection 5, no further notice is required to be served to
6-40 [those persons.] that person.
6-41 5. If the property of the delinquent taxpayer consists of a series of
6-42 payments owed to him, the person who owes or controls the payments
6-43 shall transmit the payments to the department until otherwise notified
6-44 by the department. If the debt of the delinquent taxpayer is not paid
6-45 within 1 year after the department issued the original demand to
6-46 transmit, [it] the department shall issue another demand to transmit to
6-47 the person responsible for making the payments informing him to
6-48 continue to transmit payments to the department or that his duty to
6-49 transmit the payments to the department has ceased.
7-1 6. If the notice of the delinquency seeks to prevent the transfer or
7-2 other disposition of a deposit in a bank or credit union or other credits
7-3 or personal property in the possession or under the control of a bank,
7-4 credit union or other depository institution, the notice must be
7-5 delivered or mailed to any branch or office of the bank, credit union
7-6 or other depository institution at which the deposit is carried or at
7-7 which the credits or personal property is held.
7-8 7. If any person [so] notified by the notice of the delinquency
7-9 makes any transfer or other disposition of the property or debts
7-10 required to be withheld or transmitted, to the extent of the value of the
7-11 property or the amount of the debts thus transferred or paid, he is
7-12 liable to the state for any indebtedness due pursuant to [NRS
7-13 482.313,] this chapter , or chapter 362, 364A, [365,] 369, 370, 372,
7-14 372A, [373,] 374, 377, 377A[, 444A, 585, 590] or 444A of NRS,
7-15 NRS 482.313, or chapter 585 or 680B of NRS from the person with
7-16 respect to whose obligation the notice was given if solely by reason of
7-17 the transfer or other disposition the state is unable to recover the
7-18 indebtedness of the person with respect to whose obligation the notice
7-19 was given.
7-20 Sec. 13. 1. The state controller, in cooperation with the department
7-21 of motor vehicles and public safety and the division of wildlife of the state
7-22 department of conservation and natural resources, may establish a pilot
7-23 program to improve the collection of debts owed to an agency or the State
7-24 of Nevada through the suspension of vehicle registrations and certain
7-25 licenses and permits issued by the state to persons whose debts to an
7-26 agency or the State of Nevada are in default pursuant to section 2 of this
7-27 act.
7-28 2. As used in this section, “agency” has the meaning ascribed to it in
7-29 NRS 353C.020.
7-30 Sec. 14. 1. If a pilot program is established pursuant to section 13 of
7-31 this act, the department of motor vehicles and public safety, when it
7-32 receives a notice from the state controller that a person to whom the
7-33 department has issued a license or for whom the department has registered
7-34 a vehicle is in default on a debt owed to an agency or the State of Nevada,
7-35 shall send a written notice to that person that his license and vehicle
7-36 registration is subject to suspension.
7-37 2. The notice must include:
7-38 (a) The reason for the suspension of the license and vehicle registration;
7-39 (b) The text of this section; and
7-40 (c) Any other information the department deems necessary.
7-41 3. The department shall suspend the license of a person and the
7-42 registration of a vehicle owned by a person who receives a notice pursuant
7-43 to subsection 1, without providing him with an opportunity for a hearing,
7-44 unless, within 30 days after he receives the notice, the department receives
7-45 a notice from the state controller that the person has:
7-46 (a) Paid the debt, including all penalties, interest, costs and fees, if any;
7-47 (b) Entered into an agreement for the payment of the debt on an
7-48 installment basis pursuant to NRS 353C.130; or
7-49 (c) Obtained a discharge in bankruptcy of the debt.
8-1 4. The department shall reinstate such a license and vehicle
8-2 registration if it receives:
8-3 (a) A notice from the state controller that the person has:
8-4 (1) Paid the debt, including all penalties, interest, costs and fees, if
8-5 any;
8-6 (2) Entered into an agreement for the payment of the debt on an
8-7 installment basis pursuant to NRS 353C.130; or
8-8 (3) Obtained a discharge in bankruptcy of the debt; and
8-9 (b) Payment of the fee prescribed in:
8-10 (1) NRS 483.410 for reinstatement of a suspended license; or
8-11 (2) NRS 482.480 for reinstatement of a suspended vehicle
8-12 registration.
8-13 5. The department shall not require a person whose driver’s license is
8-14 suspended pursuant to this section to submit to the tests and other
8-15 requirements which are adopted by regulation pursuant to subsection 1 of
8-16 NRS 483.495 as a condition of the reinstatement of the license.
8-17 6. As used in this section, “agency” has the meaning ascribed to it in
8-18 NRS 353C.020.
8-19 Sec. 15. 1. If a pilot program is established pursuant to section 13 of
8-20 this act, the division of wildlife of the state department of conservation and
8-21 natural resources, when it receives a notice from the state controller that a
8-22 person who holds a license or permit to hunt, fish or trap or a license to
8-23 practice commercial taxidermy is in default on a debt owed to an agency or
8-24 the State of Nevada, shall send a written notice to that person that his
8-25 license or permit is subject to suspension.
8-26 2. The notice must include:
8-27 (a) The reason for the suspension of the license or permit;
8-28 (b) The text of this section; and
8-29 (c) Any other information the division deems necessary.
8-30 3. The division shall suspend the license or permit issued to that
8-31 person, without providing him with an opportunity for a hearing, unless,
8-32 within 30 days after he receives the notice, the division receives a notice
8-33 from the state controller that the person has:
8-34 (a) Paid the debt, including all penalties, interest, costs and fees, if any;
8-35 (b) Entered into an agreement for the payment of the debt on an
8-36 installment basis pursuant to NRS 353C.130; or
8-37 (c) Obtained a discharge in bankruptcy of the debt.
8-38 4. The division shall reinstate such a license or permit if it receives a
8-39 notice from the state controller that the person has:
8-40 (a) Paid the debt, including all penalties, interest, costs and fees, if any;
8-41 (b) Entered into an agreement for the payment of the debt on an
8-42 installment basis pursuant to NRS 353C.130; or
8-43 (c) Obtained a discharge in bankruptcy of the debt.
8-44 5. The division shall not issue a new license or permit to hunt, fish or
8-45 trap, or to practice commercial taxidermy to a person whose license or
8-46 permit is suspended pursuant to this section unless the division receives a
8-47 notice from the state controller that the person has:
8-48 (a) Paid the debt, including all penalties, interest, costs and fees, if any;
9-1 (b) Entered into an agreement for the payment of the debt on an
9-2 installment basis pursuant to NRS 353C.130; or
9-3 (c) Obtained a discharge in bankruptcy of the debt.
9-4 6. As used in this section, “agency” has the meaning ascribed to it in
9-5 NRS 353C.020.
9-6 Sec. 16. 1. This act becomes effective on July 1, 2001.
9-7 2. Sections 13, 14 and 15 of this act expire by limitation on October 1,
9-8 2003.
9-9 H