AB314_EN

Assembly Bill No. 314–Committee on Government Affairs

CHAPTER..........

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:

Section 1. Chapter 353C of NRS is hereby amended by adding thereto

the provisions set forth as sections 2, 2.5 and 3 of this act.

Sec. 2. 1. The state controller may, if requested by any state

agency, act as the collection agent for that agency.

2. If the state controller acts as the collection agent for an agency,

the agency may coordinate all its debt collection efforts through the state

controller.

Sec. 2.5. If, in a previous transaction between an agency and a

person, a check or draft was returned to the agency because the person

had insufficient money or credit with the drawee to pay the check or

draft or because the person had stopped payment on the check or draft,

the agency may refuse to conduct an additional transaction with the

person until the debt owed in the previous transaction is paid.

Sec. 3. Except as otherwise provided by specific statute, a person

who owes a debt of more than $200 pursuant to this chapter shall, in

addition to the debt, pay as reimbursement for the costs and fees actually

incurred to collect the debt an amount not to exceed 25 percent of the

amount of the debt or $25,000, 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.

Sec. 4. NRS 353C.120 is hereby amended to read as follows:

353C.120 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 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.

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.

Sec. 5. NRS 353C.200 is hereby amended to read as follows:

353C.200 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

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. A contract for the assignment of the collection of a debt may

provide for:

(a) Payment by the agency 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.

4. 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. 6. NRS 353C.210 is hereby amended to read as follows:

353C.210 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]6 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 agency which sent the notice may file a claim

with the state controller 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 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] 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 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. 7. NRS 353C.220 is hereby amended to read as follows:

353C.220 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] books of 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. 8. NRS 360.238 is hereby amended to read as follows:

360.238 The department may charge a person a fee [established by

regulation] of $25 for each check returned to the department because the

person had insufficient money or credit with the drawee to pay the check

or because the person stopped payment on the check.

Sec. 9. NRS 360.510 is hereby amended to read as follows:

360.510 1. If any person is delinquent in the payment of any tax or

fee administered by the department or if a determination has been made

against him which remains unpaid, the department may:

(a) Not later than 3 years after the payment became delinquent or the

determination became final; or

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

judgment or of a certificate constituting a lien for tax owed,

give a notice of the delinquency and a demand to transmit personally or by

registered or certified mail to any person, including, without limitation,

any officer or department of the state or any political subdivision or

agency of the state, who has in his possession or under his control any

credits or other personal property belonging to the delinquent, or owing

any debts to the delinquent or person against whom a determination has

been made which remains unpaid, or owing any debts to the delinquent or

that person. In the case of any state officer, department or agency, the

notice must be given to the officer, department or agency before it presents

the claim of the delinquent taxpayer to the state controller.

2. A state officer, department or agency which receives such a notice

may satisfy any debt owed to it by that person before it honors the

department’s notice.

3. After receiving the demand to transmit, the persons so notified may

not transfer or otherwise dispose of the credits, other personal property, or

debts in their possession or under their control at the time they received

the notice until the department consents to a transfer or other disposition.

4. All persons so notified shall, within 10 days after receipt of the

demand to transmit, inform the department of, and transmit to the

department all such credits, other personal property, or debts in their

possession, under their control or owing by them within the time and in

the manner requested by the department. Except as otherwise provided in

subsection 5, no further notice is required to be served to those persons.

5. If the property of the delinquent taxpayer consists of a series of

payments owed to him, the person who owes or controls the payments

shall transmit the payments to the department until otherwise notified by

the department. If the debt of the delinquent taxpayer is not paid within 1

year after the department issued the original demand to transmit, it shall

issue another demand to transmit to the person responsible for making the

payments informing him to continue to transmit payments to the

department or that his duty to transmit the payments to the department has

ceased.

6. If the notice of the delinquency seeks to prevent the transfer or other

disposition of a deposit in a bank or credit union or other credits or

personal property in the possession or under the control of a bank, credit

union or other depository institution, the notice must be delivered or

mailed to [the] any branch or office of the bank, credit union or other

depository institution at which the deposit is carried or at which the credits

or personal property is held.

7. If any person so notified makes any transfer or other disposition of

the property or debts required to be withheld or transmitted, to the extent

of the value of the property or the amount of the debts thus transferred or

paid, he is liable to the state for any indebtedness due pursuant to NRS

482.313, this chapter or chapter 362, 364A, 365, 369, 370, 372, 372A,

373, 374, 377, 377A, 444A, 585, 590 or 680B of NRS from the person

with respect to whose obligation the notice was given if solely by reason

of the transfer or other disposition the state is unable to recover the

indebtedness of the person with respect to whose obligation the notice was

given.

Sec. 10. (Deleted by amendment.)

Sec. 11. NRS 679B.228 is hereby amended to read as follows:

679B.228 The division may charge a person a fee [adopted by

regulation by the commissioner] of $25 for each check returned to the

division because the person had insufficient money or credit with the

drawee to pay the check or because the person stopped payment on the

check.

Sec. 12. Section 50 of chapter 224, Statutes of Nevada 1999, as

amended by section 220 of chapter 354, Statutes of Nevada 1999, at page

1555, is hereby amended to read as follows:

Sec. 50. NRS 360.510 is hereby amended to read as follows:

360.510 1. If any person is delinquent in the payment of any

tax or fee administered by the department or if a determination has

been made against him which remains unpaid, the department may:

(a) Not later than 3 years after the payment became delinquent or

the determination became final; or

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

judgment or of a certificate constituting a lien for tax owed,

give a notice of the delinquency and a demand to transmit personally

or by registered or certified mail to any person, including, without

limitation, any officer or department of [the] this state or any political

subdivision or agency of [the] this state, who has in his possession or

under his control any credits or other personal property belonging to

the delinquent, or owing any debts to the delinquent or person against

whom a determination has been made which remains unpaid, or

owing any debts to the delinquent or that person. In the case of any

state officer, department or agency, the notice must be given to the

officer, department or agency before [it] the department presents the

claim of the delinquent taxpayer to the state controller.

2. A state officer, department or agency which receives such a

notice may satisfy any debt owed to it by that person before it honors

the [department’s notice.] notice of the department.

3. After receiving the demand to transmit, the [persons so] person

notified by the demand may not transfer or otherwise dispose of the

credits, other personal property, or debts in [their] his possession or

under [their] his control at the time [they] he received the notice until

the department consents to a transfer or other disposition.

4. [All persons so] Every person notified by a demand to

transmit shall, within 10 days after receipt of the demand to transmit,

inform the department of, and transmit to the department all such

credits, other personal property, or debts in [their] his possession,

under [their] his control or owing by [them] him within the time and

in the manner requested by the department. Except as otherwise

provided in subsection 5, no further notice is required to be served to

[those persons.] that person.

5. If the property of the delinquent taxpayer consists of a series of

payments owed to him, the person who owes or controls the

payments shall transmit the payments to the department until

otherwise notified by the department. If the debt of the delinquent

taxpayer is not paid within 1 year after the department issued the

original demand to transmit, [it] the department shall issue another

demand to transmit to the person responsible for making the

payments informing him to continue to transmit payments to the

department or that his duty to transmit the payments to the

department has ceased.

6. If the notice of the delinquency seeks to prevent the transfer or

other disposition of a deposit in a bank or credit union or other credits

or personal property in the possession or under the control of a bank,

credit union or other depository institution, the notice must be

delivered or mailed to any branch or office of the bank, credit union

or other depository institution at which the deposit is carried or at

which the credits or personal property is held.

7. If any person [so] notified by the notice of the delinquency

makes any transfer or other disposition of the property or debts

required to be withheld or transmitted, to the extent of the value of

the property or the amount of the debts thus transferred or paid, he is

liable to the state for any indebtedness due pursuant to [NRS

482.313,] this chapter , or chapter 362, 364A, [365,] 369, 370, 372,

372A, [373,] 374, 377, 377A[, 444A, 585, 590] or 444A of NRS,

NRS 482.313, or chapter 585 or680B of NRS from the person with

respect to whose obligation the notice was given if solely by reason

of the transfer or other disposition the state is unable to recover the

indebtedness of the person with respect to whose obligation the

notice was given.

Sec. 13. 1. The state controller, in cooperation with the department

of motor vehicles and public safety and the division of wildlife of the state

department of conservation and natural resources, may establish a pilot

program to improve the collection of debts owed to an agency or the State

of Nevada through the suspension of, cancellation of or refusal to renew

vehicle registrations and certain licenses and permits issued by the state

and the refusal to provide related services.

2. As used in this section, “agency” has the meaning ascribed to it in

NRS 353C.020.

Sec. 14. 1. If a pilot program is established pursuant to section 13 of

this act, the department of motor vehicles and public safety, when it

receives a notice from the state controller that a person to whom the

department has issued a license or permit or for whom the department has

registered a vehicle is in default on a debt owed to an agency or the State

of Nevada, shall send a written notice to that person advising him that his

license or permit and vehicle registration are subject to suspension,

cancellation or refusal to renew.

2. The notice must include:

(a) The reason for the suspension of, cancellation of or refusal to renew

the license or permit and vehicle registration;

(b) The text of this section; and

3. Upon receipt of notice from the state controller pursuant to

subsection 1 that a person to whom the department has issued a license or

permit or for whom the department has registered a vehicle is in default on

a debt owed to an agency or the State of Nevada, the department may,

after sending the written notice required pursuant to that subsection,

suspend, cancel or refuse to renew the license or permit of the person and

the registration of a vehicle owned by the person.

4. The department shall reinstate such a license or permit and vehicle

registration if it receives:

(a) A notice from the state controller that the person has:

(1) Paid the debt, including all penalties, interest, costs and fees, if

any;

(2) Entered into an agreement for the payment of the debt on an

installment basis pursuant to NRS 353C.130; or

(3) Obtained a discharge in bankruptcy of the debt; and

(b) Payment of the fee prescribed in:

(1) NRS 483.410 for reinstatement of a suspended or canceled

license; or

(2) NRS 482.480 for reinstatement of a suspended vehicle

registration.

5. The department shall not require a person whose driver’s license or

permit is suspended or canceled pursuant to this section to submit to the

tests and other requirements which are adopted by regulation pursuant to

subsection 1 of NRS 483.495 as a condition of the reinstatement of the

license or permit.

6. As used in this section, “agency” has the meaning ascribed to it in

NRS 353C.020.

Sec. 15. 1. If a pilot program is established pursuant to section 13 of

this act, the division of wildlife of the state department of conservation and

natural resources, when it receives a notice from the state controller that a

person who holds a license or permit to hunt, fish or trap, or any other

license or permit issued by the division, is in default on a debt owed to an

agency or the State of Nevada, shall send a written notice to that person

advising him that:

(a) His license or permit is subject to suspension, cancellation or refusal

to renew; and

(b) He is subject to a fee of $25 for each check or draft returned to the

division because the person had insufficient money or credit with the

drawee to pay the check or draft or because the person stopped payment

on the check or draft.

2. The notice must include:

(a) The reason for the suspension of, cancellation of or refusal to renew

the license or permit;

(b) The text of this section; and

3. Upon receipt of notice from the state controller pursuant to

subsection 1 that a person to whom the division has issued a license or

permit is in default on a debt owed to an agency or the State of Nevada,

the division may, after sending the written notice required pursuant to that

subsection, suspend, cancel or refuse to renew the license or permit of the

person.

4. The division shall reinstate such a license or permit if:

(a) The license or permit is still valid and has not expired; and

(b) The division receives a notice from the state controller that the

person has:

(1) Paid the debt, including all penalties, interest, costs and fees, if

any;

(2) Entered into an agreement for the payment of the debt on an

installment basis pursuant to NRS 353C.130; or

(3) Obtained a discharge in bankruptcy of the debt.

5. The division shall not issue a new license or permit to hunt, fish or

trap, or any other license or permit issued by the division, to a person

whose license or permit is suspended, cancelled or refused renewal

pursuant to this section unless the division receives a notice from the state

controller that the person has:

(a) Paid the debt, including all penalties, interest, costs and fees, if any;

(b) Entered into an agreement for the payment of the debt on an

installment basis pursuant to NRS 353C.130; or

6. As used in this section, “agency” has the meaning ascribed to it in

NRS 353C.020.

Sec. 16. 1. This act becomes effective upon passage and approval.

2. Sections 13, 14 and 15 of this act expire by limitation on

October 1, 2003.

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