7 LONG TITLE
8 General Description:
9 This bill modifies accounts receivable collection provisions.
10 Highlighted Provisions:
11 This bill:
12 ▸ provides and amends definitions;
13 ▸ amends notification procedures for the state or a governmental entity to execute a
14 lien for certain receivables;
15 ▸ authorizes the Office of State Debt Collection to send notification of the execution
16 of a lien for a governmental entity in certain circumstances;
17 ▸ amends procedures for the state or another governmental entity to levy a tax
18 overpayment or refund for the collection of a delinquent receivable;
19 ▸ amends hearing procedures and requirements regarding the collection of a
20 delinquent receivable;
21 ▸ amends the types of receivables that constitute a lien against a state tax overpayment
22 or refund;
23 ▸ amends procedures for seeking agency and judicial review of a hearing decision
24 regarding the collection of a delinquent receivable;
25 ▸ repeals certain bond requirements for seeking judicial review;
26 ▸ grants the Division of Finance, rather than the Board of Examiners, rulemaking
27 authority to adopt rules regarding the collection of certain account receivables; and
28 ▸ makes technical changes.
29 Money Appropriated in this Bill:
31 Other Special Clauses:
33 Utah Code Sections Affected:
35 63A-3-301, as last amended by Laws of Utah 2011, Chapter 79
36 63A-3-302, as last amended by Laws of Utah 2016, Chapters 129 and 298
37 63A-3-303, as last amended by Laws of Utah 2011, Chapter 79
38 63A-3-304, as last amended by Laws of Utah 2011, Chapter 79
39 63A-3-305, as renumbered and amended by Laws of Utah 1993, Chapter 212
40 63A-3-306, as last amended by Laws of Utah 2008, Chapter 382
41 63A-3-307, as last amended by Laws of Utah 2011, Chapter 79
42 63A-3-308, as last amended by Laws of Utah 2011, Chapter 79
43 63A-3-310, as renumbered and amended by Laws of Utah 1993, Chapter 212
45 63A-3-309, as renumbered and amended by Laws of Utah 1993, Chapter 212
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 63A-3-301 is amended to read:
49 63A-3-301. Definitions.
50 As used in this part[
51 (1) [
52 any other governmental entity within the state as a result of a [
53 administrative order, or for which materials or services have been provided but for which
54 payment has not been received by the servicing unit.
55 (2) "Debtor" means a party that owes, or is alleged to owe, an account receivable.
56 (3) "Mail" means United States Postal Service first class mail to the intended
57 recipient's last known address.
58 Section 2. Section 63A-3-302 is amended to read:
59 63A-3-302. Unpaid accounts receivable due the state.
60 If any account receivable at any point has been unpaid for [
61 any agency or other authority of [
62 defined in Section 63G-7-102, of the state responsible for collection of the account may
63 proceed under this part to collect the delinquent amount.
64 Section 3. Section 63A-3-303 is amended to read:
65 63A-3-303. Notice to debtor -- Contents -- Joint filers.
66 (1) [
68 When the state or any governmental entity executes, or intends to execute, on a lien created by
69 Section 63A-3-307, the state or entity to which the receivable is owed shall send a notice by
70 mail to the debtor at the debtor's last-known address.
71 (2) The notice required by Subsection (1) shall [
72 (a) the date and amount of the receivable;
73 (b) a demand for immediate payment of the amount;
74 (c) a statement of the right of the debtor to file a written response to the notice, to
76 hearing, and to appeal any decision of the hearing examiner;
77 (d) the time within which a written response must be [
79 (e) a statement notifying the debtor that the state may obtain an order [
80 and execute upon income tax overpayments or refunds of the debtor if:
81 (i) the debtor fails to timely respond to the notice; or
82 (ii) a hearing is held and the hearing officer decides against the debtor[
83 (f) the address to which the debtor may send a written request for a hearing.
84 (3) Notwithstanding Subsection (1), if the Office of State Debt Collection has agreed to
85 collect a receivable, the Office of State Debt Collection may send the notice required by
86 Subsection (1) instead of the entity to which the receivable is owed.
87 (4) Unless otherwise prohibited by law, the notice required by this section shall also be
88 sent to any individuals that are joint filers with a debtor of an affected tax filing, if the state
89 agency or other governmental entity attempting to levy a debtor's tax overpayment or refund is
90 aware of the joint filer.
91 Section 4. Section 63A-3-304 is amended to read:
92 63A-3-304. Effect of nonpayment or failure to respond.
93 If a written [
94 received by the state or other governmental entity within [
96 state [
97 (1) levy the debtor's income tax overpayment or refund up to the amount of the
98 receivable, plus interest, penalties, and collection costs allowed by law; and
99 (2) collect the balance, including as provided in Section 63A-3-307.
100 Section 5. Section 63A-3-305 is amended to read:
101 63A-3-305. Hearing requested -- Notice to debtor.
102 (1) If a written response is received by the state or other governmental entity within 21
103 days from the date of the notice required by Section 63A-3-303 and a hearing is requested in
104 the written response, the state or other governmental entity shall:
107 date of the hearing.
108 (2) Notwithstanding Subsection (1), the state or other governmental entity is not
109 required to set a hearing if the state or governmental entity releases its lien.
110 Section 6. Section 63A-3-306 is amended to read:
111 63A-3-306. Hearing examiner -- Procedures -- Adjudicative proceedings.
112 (1) (a) [
113 examiner designated by the state or other governmental entity setting the hearing.
114 (b) The hearing examiner may not be an officer or employee of the entity in state
115 government responsible for collecting or administering the account.
116 (2) The state or other governmental entity shall comply with the procedures and
117 requirements of Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
119 (3) If a hearing examiner determines a receivable is owed, in whole or in part:
120 (a) the state or other governmental entity may levy the debtor's income tax
121 overpayment or refund up to the amount of the receivable determined to be owed, plus interest,
122 penalties, and collection costs allowed by law and collect the balance, including as provided in
123 Section 63A-3-307; and
124 (b) the state or other governmental entity may charge the debtor reasonable, actual
125 collection costs for amounts charged by the hearing examiner for the debtor's hearing.
126 Section 7. Section 63A-3-307 is amended to read:
127 63A-3-307. Liens.
128 (1) The following shall constitute a lien in the amount of the receivable plus interest,
129 penalties, and collection costs allowed by law against any state income tax [
131 (a) [
132 agency, court, or other authority of the state, or by any political subdivision, as defined in
133 Section 63G-7-102; or
135 (b) an amount, that has at any point been unpaid for 90 days or more, due the state or
136 other governmental entity for which materials or services have been provided but for which
137 payment has not been received by the servicing unit.
138 (2) The lien created by this section shall, for the purposes of Section 59-10-529 only,
139 be considered a judgment[
142 Section 8. Section 63A-3-308 is amended to read:
143 63A-3-308. Judicial review -- Effect on lien.
144 (1) [
147 accordance with Title 63G, Chapter 4, Administrative Procedures Act.
153 (2) The state or other governmental entity may retain in its possession a debtor's tax
154 overpayment or refund while a decision from a hearing conducted under this part is being
155 reviewed by an agency, court, or other authority of the state pursuant to Title 63G, Chapter 4,
156 Administrative Procedures Act.
157 Section 9. Section 63A-3-310 is amended to read:
158 63A-3-310. Rules for implementing part.
159 The [
160 of this part, including rules for the conduct of hearings, injured spouse claims, and appointment
161 of hearing examiners.
162 Section 10. Repealer.
163 This bill repeals:
164 Section 63A-3-309, Bond required -- Terms -- Expenses of debtor.