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5 AN ACT RELATING TO ADMINISTRATIVE SERVICES; GIVING RESPONSIBILITIES TO
6 THE DIVISION OF FINANCE AND THE OFFICE OF DEBT COLLECTION; PROVIDING
7 DEFINITIONS; REQUIRING THE DISTRICT COURTS TO COLLECT COURT FINES,
8 FEES, AND SURCHARGES WITHIN 90 DAYS OF THE COURT'S JUDGMENT;
9 REQUIRING THE ANNUAL APPROPRIATIONS ACT TO SET THE AMOUNT
10 WITHHELD FROM THE COURTS' BUDGET AND TO SET THE MONTHLY AMOUNT
11 REQUIRED TO BE COLLECTED TO RECOVER THE WITHHELD AMOUNT;
12 PROVIDING FOR COURTS TO RECOVER PART OF THEIR COLLECTION; AND
13 TRANSFERRING OTHER COLLECTIONS TO THE DEPARTMENT OF
14 ADMINISTRATIVE SERVICES, OFFICE OF DEBT COLLECTION.
15 This act affects sections of Utah Code Annotated 1953 as follows:
17 63A-8-101, as enacted by Chapter 354, Laws of Utah 1995
18 63A-8-201, as enacted by Chapter 354, Laws of Utah 1995
20 63A-8-201.5, Utah Code Annotated 1953
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 63A-8-101 is amended to read:
23 63A-8-101. Definitions.
24 As used in this chapter:
25 (1) (a) "Accounts receivable" or "receivables" means any amount due the state from an
26 entity or an individual for which payment has not been received by the state agency that is
27 servicing the debt.
1 (b) "Accounts receivable" includes unpaid fees, licenses, taxes, loans, overpayments, fines,
2 forfeitures, claims, and damages.
3 (2) "Administrative offset" means:
4 (a) a reduction of an individual's tax refund or other payments due to the individual to
5 reduce or eliminate accounts receivable that the individual owes to the state; and
6 (b) a reduction of an entity's tax refund or other payments due to the entity to reduce or
7 eliminate accounts receivable that the entity owes to the state.
8 (3) "Board" means the advisory board created by this chapter.
9 (4) "Court collection" means any amount due to any district court as a result of a court
10 judgment, including fines, fees, and surcharges.
12 to or does business with the state.
15 payment due date.
17 board, bureau, committee, office, or other administrative subunit of Utah state government,
18 including the legislative and judicial branches of state government.
19 (b) "State agency" does not include any institution of higher education.
21 accounts receivable records but does not necessarily eliminate further collection efforts.
22 Section 2. Section 63A-8-201 is amended to read:
23 63A-8-201. Office of State Debt Collection created -- Duties.
24 (1) The state and each state agency shall comply with the requirements of this chapter and
25 any rules established by the Office of State Debt Collection.
26 (2) There is created the Office of State Debt Collection in the Department of
27 Administrative Services.
28 (3) The office shall:
29 (a) have overall responsibility for collecting and managing state receivables;
30 (b) develop consistent policies governing the collection and management of state
1 (c) oversee and monitor state receivables to ensure that state agencies are:
2 (i) implementing all appropriate collection methods;
3 (ii) following established receivables guidelines; and
4 (iii) accounting for and reporting receivables in the appropriate manner;
5 (d) develop policies, procedures, and guidelines for accounting, reporting, and collecting
6 monies owed to the state;
7 (e) provide information, training, and technical assistance to all state agencies on various
8 collection-related topics;
9 (f) write an inclusive receivables management and collection manual for use by all state
11 (g) prepare quarterly and annual reports of the state's receivables;
12 (h) create or coordinate a state accounts receivable database;
13 (i) develop reasonable criteria to gauge state agencies' efforts in maintaining an effective
14 accounts receivable program;
15 (j) identify those state agencies that are not making satisfactory progress toward
16 implementing collection techniques and improving accounts receivable collections;
17 (k) coordinate information, systems, and procedures between state agencies to maximize
18 the collection of past-due accounts receivable;
19 (l) establish an automated cash receipt process between state agencies;
20 (m) establish procedures for writing-off accounts receivable for accounting and collection
21 purposes; and
22 (n) establish standard time limits after which an agency will delegate responsibility to
23 collect state receivables to the office or its designee.
24 (4) The office may:
25 (a) recommend to the Legislature new laws to enhance collection of past-due accounts by
26 state agencies;
27 (b) collect accounts receivables for higher education entities, if the higher education entity
29 (c) prepare a request for proposal for consulting services to:
30 (i) analyze the state's receivable management and collection efforts; and
31 (ii) identify improvements needed to further enhance the state's effectiveness in collecting
1 its receivables;
2 (d) contract with private agencies to collect past-due accounts;
3 (e) perform other appropriate and cost-effective coordinating work directly related to
4 collection of state receivables;
5 (f) obtain access to records of any state agency that are necessary to the duties of the office
6 by following the procedures and requirements of Section 63-2-206;
7 (g) by following the procedures and requirements of Section 63-38-3.2 establish:
8 (i) a fee to cover the administrative costs of collection;
9 (ii) a late penalty fee that may not be more than 10% of the account receivable;
10 (iii) an interest charge that is not more than 2% above the prime rate;
11 (iv) fees to collect accounts receivable for higher education; and
12 (h) make rules that allow accounts receivable to be collected over a reasonable period of
13 time and under certain conditions with credit cards.
14 (5) The office may institute collection efforts on criminal fines, restitution, and other
15 court-ordered debts, including fines, fees, and surcharges as provided in Section 63A-8-201.5.
16 (6) The office shall require state agencies to:
17 (a) transfer collection responsibilities to the office or its designee according to time limits
18 established by the office;
19 (b) make annual progress towards implementing collection techniques and improved
20 accounts receivable collections;
21 (c) use the state's accounts receivable system or, with the consent of the board, develop
22 systems that are adequate to properly account for and report their receivables;
23 (d) develop and implement internal policies and procedures that comply with the
24 collections policies and guidelines established by the office;
25 (e) provide internal accounts receivable training to staff involved in their management and
26 collection of receivables as a supplement to statewide training;
27 (f) bill for and make initial collection efforts of its receivables up to the time the accounts
28 must be transferred; and
29 (g) submit quarterly receivable reports to the office that identify the age, collection status,
30 and funding source of each receivable.
1 additional information from the office's records to compile a one-page summary report of each
8 governor and to the Legislature.
9 Section 3. Section 63A-8-201.5 is enacted to read:
10 63A-8-201.5. Uncollected court collections.
11 (1) For fiscal year 1997-1998:
12 (a) The Division of Finance shall withhold $750,000 from the courts' budget as provided
13 in the Annual Appropriations Act to the Judiciary.
14 (b) (i) If any district court collection has been collected by the district court within 90 days
15 from the date of judgment, the district court may recover a portion of that collection not to exceed
16 $750,000 total as provided in this Subsection (1)(b)(ii).
17 (ii) If the district courts have collected in excess of $1,860,400 in any month for fiscal year
18 1997-1998, the district courts may recover 20 cents on every dollar over $1,860,400 collected for
19 that month from the Division of Finance.
20 (iii) Any funds withheld by the Division of Finance which remain unrecovered by the
21 courts in fiscal year 1997-1998 shall lapse into the General Fund.
22 (c) (i) If the district court has not collected any court collection within 90 days from the
23 date of judgment, the Office of Debt Collection may proceed under this part to collect the
24 delinquent court collection.
25 (ii) All amounts collected by the Office of Debt Collection after payment of the collection
26 costs as provided in Subsection 63A-8-201(4)(g) shall be deposited into the General Fund.
27 (2) For any fiscal year subsequent to fiscal year 1997-1998:
28 (a) The Legislature shall designate in the Annual Appropriations Act an amount of the
29 courts' budget to be withheld by the Division of Finance.
30 (b) The Legislature shall also provide in the Annual Appropriations Act the amount to be
31 collected in any month before the district courts may recover a portion of their collections as
1 provided in Subsection (2)(c).
2 (c) (i) If any district court collection over the amount designated in the Annual
3 Appropriations Act has been collected by the district court within 90 days from the date of
4 judgment, the district court may recover a portion of that collection not to exceed the total amount
5 withheld by the Division of Finance as provided in the Annual Appropriations Act for that fiscal
7 (ii) If the district courts have collected an amount in any month in excess of the amount
8 provided in the Annual Appropriations Act for that fiscal year, the district courts may recover 20
9 cents on every dollar over that amount collected for that month from the Division of Finance.
10 (iii) Any funds withheld by the Division of Finance which remain unrecovered by the
11 courts in the fiscal year shall lapse into the General Fund.
12 (d) (i) If the district court has not collected any court collection within 90 days from the
13 date of judgment, the Office of Debt Collection may proceed under this part to collect the
14 delinquent court collection.
15 (ii) All amounts collected by the Office of Debt Collection after payment of the collection
16 costs as provided in Subsection 63A-8-201(4)(g) shall be deposited into the General Fund.
Legislative Review Note
as of 2-21-97 3:05 PM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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