REQUIRES TWO THIRDS MAJORITY VOTE (§§ 3, 8, 10, 11)                                  

                                            (REPRINTED WITH ADOPTED AMENDMENTS)

 

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.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

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

1-9  person, a check or draft was returned to the agency because the person

1-10  had insufficient money or credit with the drawee to pay the check or draft

1-11  or because the person had stopped payment on the check or draft, the

1-12  agency may refuse to conduct an additional transaction with the person

1-13  until the debt owed in the previous transaction is paid.

1-14    Sec. 3.  Except as otherwise provided by specific statute, a person

1-15  who owes a debt pursuant to this chapter shall, in addition to the debt,

1-16  pay all costs and fees relating to the collection of the debt.

1-17    Sec. 4.  NRS 353C.120 is hereby amended to read as follows:

1-18    353C.120  1.  Each agency shall submit to the state controller periodic

1-19  reports of the debts owed to the agency. The state controller shall maintain

1-20  the reports to the extent that resources are available. The director of the

2-1  department of administration and the attorney general shall jointly

2-2  prescribe the time, form and manner of the reports.

2-3    2.  Except to the extent that the information on the reports is declared

2-4  to be confidential by a specific statute of this state or federal law, the

2-5  state controller shall make the reports available for public inspection and

2-6  may, without charge, make available for access on the Internet or its

2-7  successor, if any, the information contained in the reports.

2-8    Sec. 5.  NRS 353C.200 is hereby amended to read as follows:

2-9    353C.200  1.  Except as otherwise provided in subsection 2, an agency

2-10  may enter into a contract with a private debt collector or any other person

2-11  for the assignment of the collection of a debt if the agency:

2-12    (a) Determines the assignment is likely to generate more net revenue

2-13  than equivalent efforts by the agency to collect the debt, including

2-14  collection efforts pursuant to this chapter;

2-15    (b) Determines the assignment will not compromise future collections

2-16  of state revenue; and

2-17    (c) Notifies the debtor in writing at his address of record that the debt

2-18  will be turned over for private collection unless the debt is paid.

2-19    2.  An agency shall not enter into a contract with a private debt

2-20  collector or any other person for the assignment of the collection of a debt

2-21  if the debt has been contested by the debtor.

2-22    3.  A contract for the assignment of the collection of a debt may

2-23  provide for:

2-24    (a) Payment by the agency to the private debt collector or other person

2-25  of the costs of collection and fees for collecting the debt; or

2-26    (b) Collection by the private debt collector or other person from the

2-27  debtor of the costs of collection and fees for collecting the debt.

2-28    4.  Any contract entered into pursuant to this section is subject to

2-29  approval by the director of the department of administration and the state

2-30  controller.

2-31    Sec. 6.  NRS 353C.210 is hereby amended to read as follows:

2-32    353C.210  1.  Notwithstanding any specific statute to the contrary, an

2-33  agency to which a debt is owed may, in addition to any other remedy

2-34  provided for in this chapter, give notice of the amount of the debt and a

2-35  demand to transmit to any person, including, without limitation, any

2-36  officer, agency or political subdivision of this state, who has in his

2-37  possession or under his control any credits or other personal property

2-38  belonging to the debtor, or who owes any debts to the debtor that remain

2-39  unpaid. The notice and demand to transmit must be delivered personally or

2-40  by certified or registered mail:

2-41    (a) Not later than 4 years after the debt became due; or

2-42    (b) Not later than [5]6 years after the last recording of an abstract of

2-43  judgment pursuant to NRS 353C.170 or a certificate of liability pursuant to

2-44  NRS 353C.180.

2-45    2.  If such notice is given to an officer or agency of this state, the notice

2-46  must be delivered before the agency which sent the notice may file a claim

2-47  with the state controller pursuant to NRS 353C.190 on behalf of the debtor.

2-48    3.  An agency that receives a notice and demand to transmit pursuant to

2-49  this section may satisfy any debt owed to it by the debtor before it honors

3-1  the notice and demand to transmit. If the agency is holding a bond or other

3-2  property of the debtor as security for debts owed or that may become due

3-3  and owing by the debtor, the agency is not required to transmit the amount

3-4  of the bond or other property unless the agency determines that holding the

3-5  bond or other property of the debtor as security is no longer required.

3-6    4.  Except as otherwise provided by specific statute, a person who

3-7  receives a demand to transmit pursuant to this section shall not thereafter

3-8  transfer or otherwise dispose of the credits or other personal property of, or

3-9  debts owed to, the person who is the subject of the demand to transmit

3-10  without the consent of the agency which sent the demand to transmit.

3-11    5.  Except as otherwise provided by specific statute, a person who

3-12  receives from an agency a demand to transmit pursuant to this section

3-13  shall, within 10 days thereafter, inform the agency of, and transmit to the

3-14  agency within the time and in the manner requested by the agency, all

3-15  credits or other personal property in his possession or control that belong

3-16  to, and all debts that he owes to, the person who is the subject of the

3-17  demand to transmit. Except as otherwise provided in subsection 6, no

3-18  further notice is required to be served on such persons.

3-19    6.  Except as otherwise provided by specific statute, if the property of

3-20  the debtor consists of a series of payments owed to him, the person who

3-21  owes or controls the payments shall transmit the payments to the agency

3-22  which sent the demand to transmit until otherwise notified by the agency.

3-23  If the debt of the debtor is not paid within 1 year after the date on which

3-24  the agency issued the original demand to transmit, the agency shall:

3-25    (a) Issue another demand to transmit to the person responsible for

3-26  making the payments that informs him to continue transmitting payments

3-27  to the agency; or

3-28    (b) Notify the person that his duty to transmit the payments to the

3-29  agency has ceased.

3-30    7.  If the notice and demand to transmit is intended to prevent the

3-31  transfer or other disposition of a deposit in a bank or other depository

3-32  institution, or of any other credit or personal property in the possession or

3-33  under the control of the bank or depository institution, the notice must be

3-34  delivered or mailed to [the] any branch or office of the bank or depository

3-35  institution at which the deposit is carried or the credit or personal property

3-36  is held.

3-37    8.  If any person to whom an agency delivers a notice and demand to

3-38  transmit transfers or otherwise disposes of any property or debts required

3-39  by this chapter to be transmitted to the agency, the person is, to the extent

3-40  of the value of the property or the amount of the debts so transferred or

3-41  disposed of, liable to the agency for any portion of the debt that the agency

3-42  is unable to collect from the debtor solely by reason of the transfer or other

3-43  disposition of the property or debt.

3-44    9.  A debtor who owes a debt to an agency which delivers a notice and

3-45  demand to transmit concerning the debtor pursuant to this section is

3-46  entitled to an administrative hearing before that agency to challenge the

3-47  collection of the debt pursuant to the demand to transmit. Each agency may

3-48  adopt such regulations as are necessary to provide an administrative

3-49  hearing for the purposes of this subsection.

4-1    Sec. 7.  NRS 353C.220 is hereby amended to read as follows:

4-2    353C.220  1.  If an agency determines that it is impossible or

4-3  impractical to collect a debt, the agency may request the state board of

4-4  examiners to designate the debt as a bad debt. The state board of

4-5  examiners, by an affirmative vote of the majority of the members of the

4-6  board, may designate the debt as a bad debt if the board is satisfied that the

4-7  collection of the debt is impossible or impractical.

4-8    2.  Upon the designation of a debt as a bad debt pursuant to this section,

4-9  the state board of examiners shall immediately notify the state controller

4-10  thereof. Upon receiving the notification, the state controller shall direct the

4-11  removal of the debt from the [records and books or] books of account of

4-12  the [agency to which the debt is owed or the] State of Nevada . [, as

4-13  appropriate.] A bad debt that is removed pursuant to this section remains a

4-14  legal and binding obligation owed by the debtor to the [agency or the] State

4-15  of Nevada . [, as appropriate.]

4-16    3.  If resources are available, the state controller shall keep a master file

4-17  of all debts that are designated as bad debts pursuant to this section. If such

4-18  a file is established and maintained, for each such debt, the state controller

4-19  shall record the name of the debtor, the amount of the debt, the date on

4-20  which the debt was incurred and the date on which it was removed from

4-21  the records and books of account of the agency or the State of Nevada, and

4-22  any other information concerning the debt that the state controller

4-23  determines is necessary.

4-24    Sec. 8.  NRS 360.238 is hereby amended to read as follows:

4-25    360.238  The department may charge a person a fee [established by

4-26  regulation] of $25 for each check returned to the department because the

4-27  person had insufficient money or credit with the drawee to pay the check or

4-28  because the person stopped payment on the check.

4-29    Sec. 9.  NRS 360.510 is hereby amended to read as follows:

4-30    360.510  1.  If any person is delinquent in the payment of any tax or

4-31  fee administered by the department or if a determination has been made

4-32  against him which remains unpaid, the department may:

4-33    (a) Not later than 3 years after the payment became delinquent or the

4-34  determination became final; or

4-35    (b) Not later than [5] 6 years after the last recording of an abstract of

4-36  judgment or of a certificate constituting a lien for tax owed,

4-37  give a notice of the delinquency and a demand to transmit personally or by

4-38  registered or certified mail to any person, including, without limitation, any

4-39  officer or department of the state or any political subdivision or agency of

4-40  the state, who has in his possession or under his control any credits or other

4-41  personal property belonging to the delinquent, or owing any debts to the

4-42  delinquent or person against whom a determination has been made which

4-43  remains unpaid, or owing any debts to the delinquent or that person. In the

4-44  case of any state officer, department or agency, the notice must be given to

4-45  the officer, department or agency before it presents the claim of the

4-46  delinquent taxpayer to the state controller.

4-47    2.  A state officer, department or agency which receives such a notice

4-48  may satisfy any debt owed to it by that person before it honors the

4-49  department’s notice.

5-1    3.  After receiving the demand to transmit, the persons so notified may

5-2  not transfer or otherwise dispose of the credits, other personal property, or

5-3  debts in their possession or under their control at the time they received the

5-4  notice until the department consents to a transfer or other disposition.

5-5    4.  All persons so notified shall, within 10 days after receipt of the

5-6  demand to transmit, inform the department of, and transmit to the

5-7  department all such credits, other personal property, or debts in their

5-8  possession, under their control or owing by them within the time and in the

5-9  manner requested by the department. Except as otherwise provided in

5-10  subsection 5, no further notice is required to be served to those persons.

5-11    5.  If the property of the delinquent taxpayer consists of a series of

5-12  payments owed to him, the person who owes or controls the payments shall

5-13  transmit the payments to the department until otherwise notified by the

5-14  department. If the debt of the delinquent taxpayer is not paid within 1 year

5-15  after the department issued the original demand to transmit, it shall issue

5-16  another demand to transmit to the person responsible for making the

5-17  payments informing him to continue to transmit payments to the

5-18  department or that his duty to transmit the payments to the department has

5-19  ceased.

5-20    6.  If the notice of the delinquency seeks to prevent the transfer or other

5-21  disposition of a deposit in a bank or credit union or other credits or

5-22  personal property in the possession or under the control of a bank, credit

5-23  union or other depository institution, the notice must be delivered or mailed

5-24  to [the] any branch or office of the bank, credit union or other depository

5-25  institution at which the deposit is carried or at which the credits or personal

5-26  property is held.

5-27    7.  If any person so notified makes any transfer or other disposition of

5-28  the property or debts required to be withheld or transmitted, to the extent of

5-29  the value of the property or the amount of the debts thus transferred or

5-30  paid, he is liable to the state for any indebtedness due pursuant to NRS

5-31  482.313, this chapter or chapter 362, 364A, 365, 369, 370, 372, 372A, 373,

5-32  374, 377, 377A, 444A, 585, 590 or 680B of NRS from the person with

5-33  respect to whose obligation the notice was given if solely by reason of the

5-34  transfer or other disposition the state is unable to recover the indebtedness

5-35  of the person with respect to whose obligation the notice was given.

5-36    Sec. 10.  NRS 481.079 is hereby amended to read as follows:

5-37    481.079  1.  Except as otherwise provided by specific statute, all

5-38  taxes, license fees and money collected pursuant to NRS 481.0475 must be

5-39  deposited with the state treasurer to the credit of the motor vehicle fund.

5-40    2.  If any check accepted by the department in payment of fees

5-41  pursuant to NRS 481.0475 is dishonored upon presentation for payment:

5-42    (a) The drawer is subject to a service charge of [$10,] $25, in addition to

5-43  any other penalties provided by law; and

5-44    (b) The department may require that future payments from the person

5-45  be made by cashier’s check, money order, traveler’s check or cash.

5-46    3.  The department may adjust the amount of a deposit made with the

5-47  state treasurer to the credit of the motor vehicle fund for any cash shortage

5-48  or overage resulting from the collection of fees.

 

6-1    Sec. 11.  NRS 679B.228 is hereby amended to read as follows:

6-2    679B.228  The division may charge a person a fee [adopted by

6-3  regulation by the commissioner] of $25 for each check returned to the

6-4  division because the person had insufficient money or credit with the

6-5  drawee to pay the check or because the person stopped payment on the

6-6  check.

6-7    Sec. 12.  Section 50 of chapter 224, Statutes of Nevada 1999, as

6-8  amended by section 220 of chapter 354, Statutes of Nevada 1999, at page

6-9  1555, is hereby amended to read as follows:

6-10  Sec. 50.  NRS 360.510 is hereby amended to read as follows:

6-11  360.510 1.  If any person is delinquent in the payment of any

6-12  tax or fee administered by the department or if a determination has

6-13  been made against him which remains unpaid, the department may:

6-14  (a) Not later than 3 years after the payment became delinquent or

6-15  the determination became final; or

6-16  (b) Not later than 6 years after the last recording of an abstract of

6-17  judgment or of a certificate constituting a lien for tax owed,

6-18  give a notice of the delinquency and a demand to transmit personally

6-19  or by registered or certified mail to any person, including, without

6-20  limitation, any officer or department of [the] this state or any political

6-21  subdivision or agency of [the] this state, who has in his possession or

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

6-23  the delinquent, or owing any debts to the delinquent or person against

6-24  whom a determination has been made which remains unpaid, or

6-25  owing any debts to the delinquent or that person. In the case of any

6-26  state officer, department or agency, the notice must be given to the

6-27  officer, department or agency before [it] the department presents the

6-28  claim of the delinquent taxpayer to the state controller.

6-29  2.  A state officer, department or agency which receives such a

6-30  notice may satisfy any debt owed to it by that person before it honors

6-31  the [department’s notice.] notice of the department.

6-32  3.  After receiving the demand to transmit, the [persons so] person

6-33  notified by the demand may not transfer or otherwise dispose of the

6-34  credits, other personal property, or debts in [their] his possession or

6-35  under [their] his control at the time [they] he received the notice until

6-36  the department consents to a transfer or other disposition.

6-37  4.  [All persons so] Every person notified by a demand to

6-38  transmit shall, within 10 days after receipt of the demand to transmit,

6-39  inform the department of, and transmit to the department all such

6-40  credits, other personal property, or debts in [their] his possession,

6-41  under [their] his control or owing by [them] him within the time and

6-42  in the manner requested by the department. Except as otherwise

6-43  provided in subsection 5, no further notice is required to be served to

6-44  [those persons.] that person.

6-45  5.  If the property of the delinquent taxpayer consists of a series of

6-46  payments owed to him, the person who owes or controls the payments

6-47  shall transmit the payments to the department until otherwise notified

6-48  by the department. If the debt of the delinquent taxpayer is not paid

6-49  within 1 year after the department issued the original demand to

7-1  transmit, [it] the department shall issue another demand to transmit to

7-2  the person responsible for making the payments informing him to

7-3  continue to transmit payments to the department or that his duty to

7-4  transmit the payments to the department has ceased.

7-5  6.  If the notice of the delinquency seeks to prevent the transfer or

7-6  other disposition of a deposit in a bank or credit union or other credits

7-7  or personal property in the possession or under the control of a bank,

7-8  credit union or other depository institution, the notice must be

7-9  delivered or mailed to any branch or office of the bank, credit union

7-10  or other depository institution at which the deposit is carried or at

7-11  which the credits or personal property is held.

7-12  7.  If any person [so] notified by the notice of the delinquency

7-13  makes any transfer or other disposition of the property or debts

7-14  required to be withheld or transmitted, to the extent of the value of the

7-15  property or the amount of the debts thus transferred or paid, he is

7-16  liable to the state for any indebtedness due pursuant to [NRS

7-17  482.313,] this chapter , or chapter 362, 364A, [365,] 369, 370, 372,

7-18  372A, [373,] 374, 377, 377A[, 444A, 585, 590] or 444A of NRS,

7-19  NRS 482.313, or chapter 585 or 680B of NRS from the person with

7-20  respect to whose obligation the notice was given if solely by reason of

7-21  the transfer or other disposition the state is unable to recover the

7-22  indebtedness of the person with respect to whose obligation the notice

7-23  was given.

7-24    Sec. 13.  1.  The state controller, in cooperation with the department

7-25  of motor vehicles and public safety and the division of wildlife of the state

7-26  department of conservation and natural resources, may establish a pilot

7-27  program to improve the collection of debts owed to an agency or the State

7-28  of Nevada through the suspension of, cancellation of or refusal to renew

7-29  vehicle registrations and certain licenses and permits issued by the state

7-30  and the refusal to provide related services.

7-31    2.  As used in this section, “agency” has the meaning ascribed to it in

7-32  NRS 353C.020.

7-33    Sec. 14. 1.  If a pilot program is established pursuant to section 13 of

7-34  this act, the department of motor vehicles and public safety, when it

7-35  receives a notice from the state controller that a person to whom the

7-36  department has issued a license or permit or for whom the department has

7-37  registered a vehicle is in default on a debt owed to an agency or the State of

7-38  Nevada, shall send a written notice to that person advising him that his

7-39  license or permit and vehicle registration are subject to suspension,

7-40  cancellation or refusal to renew.

7-41    2.  The notice must include:

7-42    (a) The reason for the suspension of, cancellation of or refusal to renew

7-43  the license or permit and vehicle registration;

7-44    (b) The text of this section; and

7-45    (c) Any other information that the department deems necessary.

7-46    3.  Upon receipt of notice from the state controller pursuant to

7-47  subsection 1 that a person to whom the department has issued a license or

7-48  permit or for whom the department has registered a vehicle is in default on

7-49  a debt owed to an agency or the State of Nevada, the department may, after

8-1  sending the written notice required pursuant to that subsection, suspend,

8-2  cancel or refuse to renew the license or permit of the person and the

8-3  registration of a vehicle owned by the person.

8-4    4.  The department shall reinstate such a license or permit and vehicle

8-5  registration if it receives:

8-6    (a) A notice from the state controller that the person has:

8-7       (1) Paid the debt, including all penalties, interest, costs and fees, if

8-8  any;

8-9       (2) Entered into an agreement for the payment of the debt on an

8-10  installment basis pursuant to NRS 353C.130; or

8-11      (3) Obtained a discharge in bankruptcy of the debt; and

8-12    (b) Payment of the fee prescribed in:

8-13      (1) NRS 483.410 for reinstatement of a suspended or canceled

8-14  license; or

8-15      (2) NRS 482.480 for reinstatement of a suspended vehicle

8-16  registration.

8-17    5.  The department shall not require a person whose driver’s license or

8-18  permit is suspended or canceled pursuant to this section to submit to the

8-19  tests and other requirements which are adopted by regulation pursuant to

8-20  subsection 1 of NRS 483.495 as a condition of the reinstatement of the

8-21  license or permit.

8-22    6.  As used in this section, “agency” has the meaning ascribed to it in

8-23  NRS 353C.020.

8-24    Sec. 15.  1.  If a pilot program is established pursuant to section 13 of

8-25  this act, the division of wildlife of the state department of conservation and

8-26  natural resources, when it receives a notice from the state controller that a

8-27  person who holds a license or permit to hunt, fish or trap, or any other

8-28  license or permit issued by the division, is in default on a debt owed to an

8-29  agency or the State of Nevada, shall send a written notice to that person

8-30  advising him that:

8-31    (a) His license or permit is subject to suspension, cancellation or refusal

8-32  to renew; and

8-33    (b) He is subject to a fee of $25 for each check or draft returned to the

8-34  division because the person had insufficient money or credit with the

8-35  drawee to pay the check or draft or because the person stopped payment on

8-36  the check or draft.

8-37    2.  The notice must include:

8-38    (a) The reason for the suspension of, cancellation of or refusal to renew

8-39  the license or permit;

8-40    (b) The text of this section; and

8-41    (c) Any other information that the division deems necessary.

8-42    3.  Upon receipt of notice from the state controller pursuant to

8-43  subsection 1 that a person to whom the division has issued a license or

8-44  permit is in default on a debt owed to an agency or the State of Nevada, the

8-45  division may, after sending the written notice required pursuant to that

8-46  subsection, suspend, cancel or refuse to renew the license or permit of the

8-47  person.

8-48    4.  The division shall reinstate such a license or permit if:

8-49    (a) The license or permit is still valid and has not expired; and

9-1    (b) The division receives a notice from the state controller that the

9-2  person has:

9-3       (1) Paid the debt, including all penalties, interest, costs and fees, if

9-4  any;

9-5       (2) Entered into an agreement for the payment of the debt on an

9-6  installment basis pursuant to NRS 353C.130; or

9-7       (3) Obtained a discharge in bankruptcy of the debt.

9-8    5.  The division shall not issue a new license or permit to hunt, fish or

9-9  trap, or any other license or permit issued by the division, to a person

9-10  whose license or permit is suspended, cancelled or refused renewal

9-11  pursuant to this section unless the division receives a notice from the state

9-12  controller that the person has:

9-13    (a) Paid the debt, including all penalties, interest, costs and fees, if any;

9-14    (b) Entered into an agreement for the payment of the debt on an

9-15  installment basis pursuant to NRS 353C.130; or

9-16    (c) Obtained a discharge in bankruptcy of the debt.

9-17    6.  As used in this section, “agency” has the meaning ascribed to it in

9-18  NRS 353C.020.

9-19    Sec. 16.  1.  This act becomes effective upon passage and approval.

9-20    2.  Sections 13, 14 and 15 of this act expire by limitation on October 1,

9-21  2003.

 

9-22  H