This document includes Senate Committee Amendments incorporated into the bill on Fri, Mar 6, 2020 at 2:31 PM by lpoole.
Senator Ralph Okerlund proposes the following substitute bill:


1     
GOVERNMENT DEBT COLLECTION AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ralph Okerlund

5     
House Sponsor: Rex P. Shipp

6     

7     LONG TITLE
8     General Description:
9          This bill addresses the collection of government entities' delinquent accounts receivable
10     by the Division of Finance.
11     Highlighted Provisions:
12          This bill:
13          ▸     expands accounts receivable subject to collection efforts of the Division of Finance
14     to include an amount due as a result of a tax;
15          ▸     authorizes a political subdivision to enter into an agreement with a local agency for
16     submitting accounts receivable for collection by the Division of Finance;
17          ▸     provides requirements for a political subdivision that enters into an agreement with
18     a local agency for the collection of accounts receivable; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:

26          63A-3-301, as last amended by Laws of Utah 2019, Chapter 84
27          63A-3-302, as last amended by Laws of Utah 2019, Chapter 84
28          63A-3-307, as last amended by Laws of Utah 2019, Chapter 84
29          63A-3-310, as last amended by Laws of Utah 2019, Chapter 84
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 63A-3-301 is amended to read:
33          63A-3-301. Definitions.
34          As used in this part:
35          (1) "Account receivable" or "receivable" means any amount due the state or any other
36     governmental entity within the state as a result of a judgment, citation, tax, or administrative
37     order, or for which materials or services have been provided but for which payment has not
38     been received by the servicing unit.
39          (2) "Debtor" means a party that owes, or is alleged to owe, an account receivable.
40          (3) "Division" means the Division of Finance, created in Section 63A-3-101.
41          (4) "Local agency" means a nonprofit entity organized by participating political
42     subdivisions to act on behalf of the participating political subdivisions with respect to the
43     office's efforts to collect accounts receivable of participating political subdivisions through
44     administrative offsets.
45          [(3)] (5) "Mail" means United States Postal Service first class mail to the intended
46     recipient's last known address.
47          (6) "Participating political subdivision" means a political subdivision that has entered
48     into an agreement with a local agency authorizing the local agency to act on behalf of the
49     political subdivision with respect to the office's efforts to collect accounts receivable of the
50     political subdivision through administrative offsets.
51          (7) "Political subdivision" means the same as that term is defined in Section
52     63G-7-102.
53          Section 2. Section 63A-3-302 is amended to read:
54          63A-3-302. Unpaid accounts receivable -- Political subdivision agreement with
55     local agency.
56          (1) If any account receivable at any point has been unpaid for 90 days or more, any

57     agency or other authority of the state, or any political subdivision[, as defined in Section
58     63G-7-102, of the state] responsible for collection of the account may proceed under this part
59     to collect the delinquent amount.
60          (2) (a) A political subdivision may enter into an agreement with a local agency under
61     which the local agency, for a reasonable fee that the political subdivision and local agency
62     agree upon, prepares and submits the political subdivision's accounts receivable for collection
63     as provided in this part.
64          (b) Notwithstanding an agreement under Subsection (2)(a), a participating political
65     subdivision shall:
66          (i) establish an agreement with the division for submitting delinquent accounts
67     receivable under this part; and
68          (ii) with respect to the accounts receivable that the participating political subdivision
69     submits through a local agency for collection under this part:
70          (A) receive and respond to an administrative hearing requested under Section
71     63A-3-305; and
72          (B) administer an adjudicative proceeding required under Section 63A-3-306.
73          Section 3. Section 63A-3-307 is amended to read:
74          63A-3-307. Liens.
75          (1) The following shall constitute a lien in the amount of the receivable plus interest,
76     penalties, and collection costs allowed by law against any state income tax overpayment or
77     refund due or to become due the debtor:
78          (a) a judgment, citation, Ŝ→ tax, ←Ŝ or administrative order issued by any agency, court, or
78a     other
79     authority of the state, or by any political subdivision[, as defined in Section 63G-7-102]; or
80          (b) an amount, that has at any point been unpaid for 90 days or more, due the state or
81     other governmental entity for which materials or services have been provided but for which
82     payment has not been received by the servicing unit.
83          (2) The lien created by this section shall, for the purposes of Section 59-10-529 only,
84     be considered a judgment.
85          Section 4. Section 63A-3-310 is amended to read:
86          63A-3-310. Rules for implementing part.
87          The [Division of Finance] division may adopt rules for the implementation of this part,
88     including rules for the conduct of hearings, injured spouse claims, and appointment of hearing
89     examiners.