REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 3, 8, 11)
(REPRINTED WITH ADOPTED AMENDMENTS)
THIRD REPRINT 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.
Effect on the State: 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, 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 of more than $200 pursuant to this chapter shall, in
1-16 addition to the debt, pay as reimbursement for the costs and fees actually
1-17 incurred to collect the debt an amount not to exceed 25 percent of the
1-18 amount of the debt or $25,000, whichever is less. Any prejudgment or
1-19 postjudgment interest on the debt authorized by law must not be included
2-1 in the calculation of the costs and fees actually incurred to collect the
2-2 debt.
2-3 Sec. 4. NRS 353C.120 is hereby amended to read as follows:
2-4 353C.120 1. Each agency shall submit to the state controller periodic
2-5 reports of the debts owed to the agency. The state controller shall maintain
2-6 the reports to the extent that resources are available. The director of the
2-7 department of administration and the attorney general shall jointly
2-8 prescribe the time, form and manner of the reports.
2-9 2. Except to the extent that the information on the reports is declared
2-10 to be confidential by a specific statute of this state or federal law, the
2-11 state controller shall make the reports available for public inspection and
2-12 may, without charge, make available for access on the Internet or its
2-13 successor, if any, the information contained in the reports.
2-14 Sec. 5. NRS 353C.200 is hereby amended to read as follows:
2-15 353C.200 1. Except as otherwise provided in subsection 2, an agency
2-16 may enter into a contract with a private debt collector or any other person
2-17 for the assignment of the collection of a debt if the agency:
2-18 (a) Determines the assignment is likely to generate more net revenue
2-19 than equivalent efforts by the agency to collect the debt, including
2-20 collection efforts pursuant to this chapter;
2-21 (b) Determines the assignment will not compromise future collections
2-22 of state revenue; and
2-23 (c) Notifies the debtor in writing at his address of record that the debt
2-24 will be turned over for private collection unless the debt is paid.
2-25 2. An agency shall not enter into a contract with a private debt
2-26 collector or any other person for the assignment of the collection of a debt
2-27 if the debt has been contested by the debtor.
2-28 3. A contract for the assignment of the collection of a debt may
2-29 provide for:
2-30 (a) Payment by the agency to the private debt collector or other person
2-31 of the costs of collection and fees for collecting the debt; or
2-32 (b) Collection by the private debt collector or other person from the
2-33 debtor of the costs of collection and fees for collecting the debt.
2-34 4. Any contract entered into pursuant to this section is subject to
2-35 approval by the director of the department of administration and the state
2-36 controller.
2-37 Sec. 6. NRS 353C.210 is hereby amended to read as follows:
2-38 353C.210 1. Notwithstanding any specific statute to the contrary, an
2-39 agency to which a debt is owed may, in addition to any other remedy
2-40 provided for in this chapter, give notice of the amount of the debt and a
2-41 demand to transmit to any person, including, without limitation, any
2-42 officer, agency or political subdivision of this state, who has in his
2-43 possession or under his control any credits or other personal property
2-44 belonging to the debtor, or who owes any debts to the debtor that remain
2-45 unpaid. The notice and demand to transmit must be delivered personally or
2-46 by certified or registered mail:
2-47 (a) Not later than 4 years after the debt became due; or
3-1 (b) Not later than [5]6 years after the last recording of an abstract of
3-2 judgment pursuant to NRS 353C.170 or a certificate of liability pursuant to
3-3 NRS 353C.180.
3-4 2. If such notice is given to an officer or agency of this state, the notice
3-5 must be delivered before the agency which sent the notice may file a claim
3-6 with the state controller pursuant to NRS 353C.190 on behalf of the debtor.
3-7 3. An agency that receives a notice and demand to transmit pursuant to
3-8 this section may satisfy any debt owed to it by the debtor before it honors
3-9 the notice and demand to transmit. If the agency is holding a bond or other
3-10 property of the debtor as security for debts owed or that may become due
3-11 and owing by the debtor, the agency is not required to transmit the amount
3-12 of the bond or other property unless the agency determines that holding the
3-13 bond or other property of the debtor as security is no longer required.
3-14 4. Except as otherwise provided by specific statute, a person who
3-15 receives a demand to transmit pursuant to this section shall not thereafter
3-16 transfer or otherwise dispose of the credits or other personal property of, or
3-17 debts owed to, the person who is the subject of the demand to transmit
3-18 without the consent of the agency which sent the demand to transmit.
3-19 5. Except as otherwise provided by specific statute, a person who
3-20 receives from an agency a demand to transmit pursuant to this section
3-21 shall, within 10 days thereafter, inform the agency of, and transmit to the
3-22 agency within the time and in the manner requested by the agency, all
3-23 credits or other personal property in his possession or control that belong
3-24 to, and all debts that he owes to, the person who is the subject of the
3-25 demand to transmit. Except as otherwise provided in subsection 6, no
3-26 further notice is required to be served on such persons.
3-27 6. Except as otherwise provided by specific statute, if the property of
3-28 the debtor consists of a series of payments owed to him, the person who
3-29 owes or controls the payments shall transmit the payments to the agency
3-30 which sent the demand to transmit until otherwise notified by the agency.
3-31 If the debt of the debtor is not paid within 1 year after the date on which
3-32 the agency issued the original demand to transmit, the agency shall:
3-33 (a) Issue another demand to transmit to the person responsible for
3-34 making the payments that informs him to continue transmitting payments
3-35 to the agency; or
3-36 (b) Notify the person that his duty to transmit the payments to the
3-37 agency has ceased.
3-38 7. If the notice and demand to transmit is intended to prevent the
3-39 transfer or other disposition of a deposit in a bank or other depository
3-40 institution, or of any other credit or personal property in the possession or
3-41 under the control of the bank or depository institution, the notice must be
3-42 delivered or mailed to [the] any branch or office of the bank or depository
3-43 institution at which the deposit is carried or the credit or personal property
3-44 is held.
3-45 8. If any person to whom an agency delivers a notice and demand to
3-46 transmit transfers or otherwise disposes of any property or debts required
3-47 by this chapter to be transmitted to the agency, the person is, to the extent
3-48 of the value of the property or the amount of the debts so transferred or
3-49 disposed of, liable to the agency for any portion of the debt that the agency
4-1 is unable to collect from the debtor solely by reason of the transfer or other
4-2 disposition of the property or debt.
4-3 9. A debtor who owes a debt to an agency which delivers a notice and
4-4 demand to transmit concerning the debtor pursuant to this section is
4-5 entitled to an administrative hearing before that agency to challenge the
4-6 collection of the debt pursuant to the demand to transmit. Each agency may
4-7 adopt such regulations as are necessary to provide an administrative
4-8 hearing for the purposes of this subsection.
4-9 Sec. 7. NRS 353C.220 is hereby amended to read as follows:
4-10 353C.220 1. If an agency determines that it is impossible or
4-11 impractical to collect a debt, the agency may request the state board of
4-12 examiners to designate the debt as a bad debt. The state board of
4-13 examiners, by an affirmative vote of the majority of the members of the
4-14 board, may designate the debt as a bad debt if the board is satisfied that the
4-15 collection of the debt is impossible or impractical.
4-16 2. Upon the designation of a debt as a bad debt pursuant to this section,
4-17 the state board of examiners shall immediately notify the state controller
4-18 thereof. Upon receiving the notification, the state controller shall direct the
4-19 removal of the debt from the [records and books or] books of account of
4-20 the [agency to which the debt is owed or the] State of Nevada . [, as
4-21 appropriate.] A bad debt that is removed pursuant to this section remains a
4-22 legal and binding obligation owed by the debtor to the [agency or the] State
4-23 of Nevada . [, as appropriate.]
4-24 3. If resources are available, the state controller shall keep a master file
4-25 of all debts that are designated as bad debts pursuant to this section. If such
4-26 a file is established and maintained, for each such debt, the state controller
4-27 shall record the name of the debtor, the amount of the debt, the date on
4-28 which the debt was incurred and the date on which it was removed from
4-29 the records and books of account of the agency or the State of Nevada, and
4-30 any other information concerning the debt that the state controller
4-31 determines is necessary.
4-32 Sec. 8. NRS 360.238 is hereby amended to read as follows:
4-33 360.238 The department may charge a person a fee [established by
4-34 regulation] of $25 for each check returned to the department because the
4-35 person had insufficient money or credit with the drawee to pay the check or
4-36 because the person stopped payment on the check.
4-37 Sec. 9. NRS 360.510 is hereby amended to read as follows:
4-38 360.510 1. If any person is delinquent in the payment of any tax or
4-39 fee administered by the department or if a determination has been made
4-40 against him which remains unpaid, the department may:
4-41 (a) Not later than 3 years after the payment became delinquent or the
4-42 determination became final; or
4-43 (b) Not later than [5] 6 years after the last recording of an abstract of
4-44 judgment or of a certificate constituting a lien for tax owed,
4-45 give a notice of the delinquency and a demand to transmit personally or by
4-46 registered or certified mail to any person, including, without limitation, any
4-47 officer or department of the state or any political subdivision or agency of
4-48 the state, who has in his possession or under his control any credits or other
4-49 personal property belonging to the delinquent, or owing any debts to the
5-1 delinquent or person against whom a determination has been made which
5-2 remains unpaid, or owing any debts to the delinquent or that person. In the
5-3 case of any state officer, department or agency, the notice must be given to
5-4 the officer, department or agency before it presents the claim of the
5-5 delinquent taxpayer to the state controller.
5-6 2. A state officer, department or agency which receives such a notice
5-7 may satisfy any debt owed to it by that person before it honors the
5-8 department’s notice.
5-9 3. After receiving the demand to transmit, the persons so notified may
5-10 not transfer or otherwise dispose of the credits, other personal property, or
5-11 debts in their possession or under their control at the time they received the
5-12 notice until the department consents to a transfer or other disposition.
5-13 4. All persons so notified shall, within 10 days after receipt of the
5-14 demand to transmit, inform the department of, and transmit to the
5-15 department all such credits, other personal property, or debts in their
5-16 possession, under their control or owing by them within the time and in the
5-17 manner requested by the department. Except as otherwise provided in
5-18 subsection 5, no further notice is required to be served to those persons.
5-19 5. If the property of the delinquent taxpayer consists of a series of
5-20 payments owed to him, the person who owes or controls the payments shall
5-21 transmit the payments to the department until otherwise notified by the
5-22 department. If the debt of the delinquent taxpayer is not paid within 1 year
5-23 after the department issued the original demand to transmit, it shall issue
5-24 another demand to transmit to the person responsible for making the
5-25 payments informing him to continue to transmit payments to the
5-26 department or that his duty to transmit the payments to the department has
5-27 ceased.
5-28 6. If the notice of the delinquency seeks to prevent the transfer or other
5-29 disposition of a deposit in a bank or credit union or other credits or
5-30 personal property in the possession or under the control of a bank, credit
5-31 union or other depository institution, the notice must be delivered or mailed
5-32 to [the] any branch or office of the bank, credit union or other depository
5-33 institution at which the deposit is carried or at which the credits or personal
5-34 property is held.
5-35 7. If any person so notified makes any transfer or other disposition of
5-36 the property or debts required to be withheld or transmitted, to the extent of
5-37 the value of the property or the amount of the debts thus transferred or
5-38 paid, he is liable to the state for any indebtedness due pursuant to NRS
5-39 482.313, this chapter or chapter 362, 364A, 365, 369, 370, 372, 372A, 373,
5-40 374, 377, 377A, 444A, 585, 590 or 680B of NRS from the person with
5-41 respect to whose obligation the notice was given if solely by reason of the
5-42 transfer or other disposition the state is unable to recover the indebtedness
5-43 of the person with respect to whose obligation the notice was given.
5-44 Sec. 10. (Deleted by amendment.)
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 6 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 or680B 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, cancellation of or refusal to renew
7-25 vehicle registrations and certain licenses and permits issued by the state
7-26 and the refusal to provide related services.
7-27 2. As used in this section, “agency” has the meaning ascribed to it in
7-28 NRS 353C.020.
7-29 Sec. 14. 1. If a pilot program is established pursuant to section 13 of
7-30 this act, the department of motor vehicles and public safety, when it
7-31 receives a notice from the state controller that a person to whom the
7-32 department has issued a license or permit or for whom the department has
7-33 registered a vehicle is in default on a debt owed to an agency or the State of
7-34 Nevada, shall send a written notice to that person advising him that his
7-35 license or permit and vehicle registration are subject to suspension,
7-36 cancellation or refusal to renew.
7-37 2. The notice must include:
7-38 (a) The reason for the suspension of, cancellation of or refusal to renew
7-39 the license or permit and vehicle registration;
7-40 (b) The text of this section; and
7-41 (c) Any other information that the department deems necessary.
7-42 3. Upon receipt of notice from the state controller pursuant to
7-43 subsection 1 that a person to whom the department has issued a license or
7-44 permit or for whom the department has registered a vehicle is in default on
7-45 a debt owed to an agency or the State of Nevada, the department may, after
7-46 sending the written notice required pursuant to that subsection, suspend,
7-47 cancel or refuse to renew the license or permit of the person and the
7-48 registration of a vehicle owned by the person.
8-1 4. The department shall reinstate such a license or permit 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 or canceled
8-11 license; or
8-12 (2) NRS 482.480 for reinstatement of a suspended vehicle
8-13 registration.
8-14 5. The department shall not require a person whose driver’s license or
8-15 permit is suspended or canceled pursuant to this section to submit to the
8-16 tests and other requirements which are adopted by regulation pursuant to
8-17 subsection 1 of NRS 483.495 as a condition of the reinstatement of the
8-18 license or permit.
8-19 6. As used in this section, “agency” has the meaning ascribed to it in
8-20 NRS 353C.020.
8-21 Sec. 15. 1. If a pilot program is established pursuant to section 13 of
8-22 this act, the division of wildlife of the state department of conservation and
8-23 natural resources, when it receives a notice from the state controller that a
8-24 person who holds a license or permit to hunt, fish or trap, or any other
8-25 license or permit issued by the division, is in default on a debt owed to an
8-26 agency or the State of Nevada, shall send a written notice to that person
8-27 advising him that:
8-28 (a) His license or permit is subject to suspension, cancellation or refusal
8-29 to renew; and
8-30 (b) He is subject to a fee of $25 for each check or draft returned to the
8-31 division because the person had insufficient money or credit with the
8-32 drawee to pay the check or draft or because the person stopped payment on
8-33 the check or draft.
8-34 2. The notice must include:
8-35 (a) The reason for the suspension of, cancellation of or refusal to renew
8-36 the license or permit;
8-37 (b) The text of this section; and
8-38 (c) Any other information that the division deems necessary.
8-39 3. Upon receipt of notice from the state controller pursuant to
8-40 subsection 1 that a person to whom the division has issued a license or
8-41 permit is in default on a debt owed to an agency or the State of Nevada, the
8-42 division may, after sending the written notice required pursuant to that
8-43 subsection, suspend, cancel or refuse to renew the license or permit of the
8-44 person.
8-45 4. The division shall reinstate such a license or permit if:
8-46 (a) The license or permit is still valid and has not expired; and
8-47 (b) The division receives a notice from the state controller that the
8-48 person has:
9-1 (1) Paid the debt, including all penalties, interest, costs and fees, if
9-2 any;
9-3 (2) Entered into an agreement for the payment of the debt on an
9-4 installment basis pursuant to NRS 353C.130; or
9-5 (3) Obtained a discharge in bankruptcy of the debt.
9-6 5. The division shall not issue a new license or permit to hunt, fish or
9-7 trap, or any other license or permit issued by the division, to a person
9-8 whose license or permit is suspended, cancelled or refused renewal
9-9 pursuant to this section unless the division receives a notice from the state
9-10 controller that the person has:
9-11 (a) Paid the debt, including all penalties, interest, costs and fees, if any;
9-12 (b) Entered into an agreement for the payment of the debt on an
9-13 installment basis pursuant to NRS 353C.130; or
9-14 (c) Obtained a discharge in bankruptcy of the debt.
9-15 6. As used in this section, “agency” has the meaning ascribed to it in
9-16 NRS 353C.020.
9-17 Sec. 16. 1. This act becomes effective upon passage and approval.
9-18 2. Sections 13, 14 and 15 of this act expire by limitation on
9-19 October 1, 2003.
9-20 H