1     
DEPARTMENT OF GOVERNMENT OPERATIONS REVISIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephanie Gricius

5     
Senate Sponsor: John D. Johnson

6     

7     LONG TITLE
8     Committee Note:
9          The Government Operations Interim Committee recommended this bill.
10               Legislative Vote:     12 voting for     0 voting against     4 absent
11     General Description:
12          This bill amends provisions related to the Division of Finance and the Division of
13     Purchasing and General Services.
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     removes the requirement that a state agency submit a purchase request for a copy
18     machine to the director of the Division of Purchasing and General Services;
19          ▸     modifies provisions on tax refund liens and release of liens;
20          ▸     modifies provisions related to the collection of interest and fees by the Office of
21     State Debt Collection;
22          ▸     modifies how funds from the Office of State Debt Collection may be used; and
23          ▸     amends provisions related to wage garnishments.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None

28     Utah Code Sections Affected:
29     AMENDS:
30          63A-2-105, as last amended by Laws of Utah 2015, Chapter 98
31          63A-3-203, as last amended by Laws of Utah 2022, Chapter 169
32          63A-3-301, as last amended by Laws of Utah 2020, Chapter 297
33          63A-3-303, as last amended by Laws of Utah 2019, Chapter 84
34          63A-3-304, as last amended by Laws of Utah 2019, Chapter 84
35          63A-3-305, as last amended by Laws of Utah 2019, Chapter 84
36          63A-3-306, as last amended by Laws of Utah 2019, Chapter 84
37          63A-3-307, as last amended by Laws of Utah 2020, Chapter 297
38          63A-3-308, as last amended by Laws of Utah 2019, Chapter 84
39          63A-3-502, as last amended by Laws of Utah 2023, Chapter 113
40          63A-3-505, as last amended by Laws of Utah 2021, Chapter 260
41          63A-3-507, as last amended by Laws of Utah 2021, Chapters 145, 260
42          78A-2-214, as last amended by Laws of Utah 2021, Chapter 260
43     ENACTS:
44          63A-3-202.1, Utah Code Annotated 1953
45     RENUMBERS AND AMENDS:
46          63A-3-202.5, (Renumbered from 63A-3-202, as renumbered and amended by Laws of
47     Utah 1993, Chapter 212)
48     

49     Be it enacted by the Legislature of the state of Utah:
50          Section 1. Section 63A-2-105 is amended to read:
51          63A-2-105. Director to approve certain purchases.
52          (1) A state agency that intends to purchase any mail-related equipment [or copy
53     machine] shall submit a purchase request to the purchasing director.
54          (2) The purchasing director shall review a request under Subsection (1) to ensure that:
55          (a) the authority to perform those functions has been appropriately delegated to the
56     state agency under this part;
57          (b) the equipment meets proper specifications; and
58          (c) the benefits from the state agency's purchase of the equipment outweigh the benefits

59     of having the same functions performed by the division.
60          Section 2. Section 63A-3-202.1 is enacted to read:
61          63A-3-202.1. Definitions.
62          As used in this part, "accounting system" means:
63          (1) a system that integrates into the state's general ledger accounting system;
64          (2) a system used to summarize information that is manually entered into the state's
65     general ledger accounting system;
66          (3) a system used to collect and maintain:
67          (a) detailed financial information on each individual transaction or event; or
68          (b) information used to present the funds and activities of the state;
69          (4) a system used to determine and demonstrate financial compliance with legal,
70     federal, audit, and contractual provisions; or
71          (5) a system similar to a system described in Subsections (1) through (4).
72          Section 3. Section 63A-3-202.5, which is renumbered from Section 63A-3-202 is
73     renumbered and amended to read:
74          [63A-3-202].      63A-3-202.5. Comprehensive state accounting system --
75     Approval of agency accounting systems -- Cost accounting systems required.
76          (1) The director of the Division of Finance shall establish a comprehensive state
77     accounting system.
78          (2) Officers, departments, agencies, and institutions of Utah may create and maintain
79     accounting systems only with the approval of the director.
80          (3) The director may, with the approval of the executive director, require any
81     department or institution to install and maintain a cost accounting system that will disclose the
82     unit cost of material or service produced or performed by a department.
83          Section 4. Section 63A-3-203 is amended to read:
84          63A-3-203. Accounting control over state departments and agencies --
85     Prescription and approval of financial forms and accounting systems.
86          (1) The director of the Division of Finance shall:
87          (a) exercise accounting control over all state departments and agencies except
88     institutions of higher education; and
89          (b) prescribe the manner and method of certifying that funds are available and adequate

90     to meet all contracts and obligations.
91          (2) The director shall audit all claims against the state for which an appropriation is
92     made.
93          (3) (a) The director shall prescribe:
94          (i) all forms of requisitions, receipts, vouchers, bills, or claims to be used by all state
95     departments and agencies; and
96          (ii) all forms to be used by the division.
97          (b) Before approving the forms in Subsection (3)(a), the director shall obtain approval
98     from the state auditor that the forms will adequately facilitate the post-audit of public accounts.
99          (4) Before implementation by any state agency, the director of the Division of Finance
100     shall review and approve any accounting system developed by a state agency.
101          (5) If a state agency does not obtain the approval described in Subsection (4), the
102     director may:
103          (a) require the state agency to cease all development activity related to the accounting
104     system; and
105          (b) (i) establish conditions of future development of the accounting system; or
106          (ii) deny implementation of the accounting system.
107          Section 5. Section 63A-3-301 is amended to read:
108          63A-3-301. Definitions.
109          As used in this part:
110          (1) "Account receivable" or "receivable" means any amount due the state or any other
111     governmental entity within the state as a result of a judgment, citation, tax, or administrative
112     order, or for which materials or services have been provided but for which payment has not
113     been received by the servicing unit.
114          (2) "Debtor" means a party that owes, or is alleged to owe, an account receivable.
115          (3) "Division" means the Division of Finance, created in Section 63A-3-101.
116          (4) "Lien" means the lien described in Section 63A-3-307.
117          [(4)] (5) "Local agency" means a nonprofit entity organized by participating political
118     subdivisions to act on behalf of the participating political subdivisions with respect to the
119     office's efforts to collect accounts receivable of participating political subdivisions through
120     administrative offsets.

121          [(5)] (6) "Mail" means United States Postal Service first class mail to the intended
122     recipient's last known address.
123          [(6)] (7) "Participating political subdivision" means a political subdivision that has
124     entered into an agreement with a local agency authorizing the local agency to act on behalf of
125     the political subdivision with respect to the office's efforts to collect accounts receivable of the
126     political subdivision through administrative offsets.
127          [(7)] (8) "Political subdivision" means the same as that term is defined in Section
128     63G-7-102.
129          Section 6. Section 63A-3-303 is amended to read:
130          63A-3-303. Notice to debtor -- Contents -- Joint filers.
131          (1) [When] For each instance when the state or any other governmental entity executes,
132     or intends to execute, on a lien created by Section 63A-3-307, the state or entity to which the
133     receivable is owed shall send a notice by mail to the debtor at the debtor's last-known address.
134          (2) The notice required by Subsection (1) shall contain:
135          (a) the date and amount of the receivable;
136          (b) a demand for immediate payment of the amount;
137          (c) a statement of the right of the debtor to file a written response to the notice, to
138     request a hearing within 21 days of the date of the notice, to be represented at the hearing, and
139     to appeal any decision of the hearing examiner;
140          (d) the time within which a written response must be received from the debtor;
141          (e) a statement notifying the debtor that the state may obtain an order and execute upon
142     income tax overpayments or refunds of the debtor if:
143          (i) the debtor fails to timely respond to the notice; or
144          (ii) a hearing is held and the hearing officer decides against the debtor; [and]
145          (f) the address to which the debtor may send a written request for a hearing[.]; and
146          (g) the amount of the tax overpayment, refund, or other funds subject to a lien under
147     this part, on which the state or governmental entity executes or intends to execute the lien.
148          (3) Notwithstanding Subsection (1), if the Office of State Debt Collection has agreed to
149     collect a receivable, the Office of State Debt Collection may send the notice required by
150     Subsection (1) instead of the entity to which the receivable is owed.
151          (4) Unless otherwise prohibited by law, the state or other governmental entity shall also

152     send the notice required [by] under this section [shall also be sent to any individuals that are
153     joint filers] to each individual who is a joint filer with a debtor of an affected tax filing, if the
154     state [agency] or other governmental entity attempting to levy a debtor's tax overpayment [or],
155     refund, or other funds subject to a lien under this part is aware of the joint filer.
156          Section 7. Section 63A-3-304 is amended to read:
157          63A-3-304. Effect of nonpayment or failure to respond.
158          (1) If a written request for a hearing[, or payment of delinquent receivable,] is not
159     received by the state or other governmental entity within 21 days [from] after the date of the
160     notice required by Section 63A-3-303, the debtor is in default and the state or other
161     governmental entity [may]:
162          [(1)] (a) may levy the debtor's income tax overpayment [or], refund, or other funds
163     subject to a lien under this part, that is specified in the notice, up to the amount of the
164     receivable, plus interest, penalties, and collection costs allowed by law, to apply to the
165     receivable specified in the notice; and
166          [(2)] (b) [collect the balance, including as provided in Section 63A-3-307] is not
167     required to return to the debtor the income tax overpayment, refund, or other funds subject to a
168     lien under which the state or other governmental entity levies.
169          (2) If a debtor pays a delinquent receivable in full before the state or other
170     governmental entity applies to the delinquent receivable an amount levied under this part, the
171     state or other governmental entity shall release the levied amount to the debtor, if the levied
172     amount is being held due to a lien created under Section 63A-3-307.
173          Section 8. Section 63A-3-305 is amended to read:
174          63A-3-305. Hearing requested -- Notice to debtor.
175          (1) If a written response is received by the state or other governmental entity within 21
176     days from the date of the notice required by Section 63A-3-303 and a hearing is requested in
177     the written response, the state or other governmental entity shall:
178          (a) set a hearing date within 28 days of the receipt of the response; and
179          (b) mail written notice of the hearing to the debtor at least 14 days before the date of
180     the hearing.
181          (2) (a) Notwithstanding Subsection (1), the state or other governmental entity is not
182     required to set a hearing if the state or governmental entity releases its lien.

183          (b) The state or other governmental entity may release a lien on a specific tax
184     overpayment, a specific refund, or a specific amount of funds, without the release affecting
185     subsequent or previous levies or liens under this part.
186          (c) Each instance the state or other governmental entity, in response to a written request
187     for a hearing from a debtor, releases a lien under this section, the state or other governmental
188     entity releasing the lien shall, within a reasonable amount of time, send written notice to the
189     debtor indicating that the lien has been released and to which year or years the release applies.
190          (3) A written request for hearing received under this part is a request for agency action
191     under Title 63G, Chapter 4, Administrative Procedures Act.
192          (4) This part does not prevent a debtor from challenging a debt through other lawful
193     means that may be available to a debtor.
194          (5) A written request under this part is the sole manner to dispute a levy under this part.
195          Section 9. Section 63A-3-306 is amended to read:
196          63A-3-306. Hearing examiner -- Procedures -- Adjudicative proceedings.
197          (1) (a) A hearing requested under this part shall be held before a hearing examiner
198     designated by the state or other governmental entity setting the hearing.
199          (b) The hearing examiner may not be an officer or employee of the entity in state
200     government responsible for collecting or administering the account.
201          (2) The state or other governmental entity shall comply with the procedures and
202     requirements of Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
203     proceedings.
204          (3) If a hearing examiner determines a receivable is owed, in whole or in part:
205          (a) the state or other governmental entity may levy the debtor's income tax
206     overpayment [or], refund, or other funds subject to a lien under this part, as specified in the
207     notice to the debtor, up to the amount of the receivable determined to be owed, plus interest,
208     penalties, and collection costs allowed by law and collect the balance, including as provided in
209     Section 63A-3-307; and
210          (b) the state or other governmental entity may charge the debtor reasonable, actual
211     collection costs for amounts charged by the hearing examiner for the debtor's hearing.
212          Section 10. Section 63A-3-307 is amended to read:
213          63A-3-307. Liens.

214          (1) The following shall constitute a lien in the amount of the receivable plus interest,
215     penalties, and collection costs allowed by law against any state income tax overpayment [or],
216     refund, or other funds in possession of the state or other governmental entity, that are due or to
217     become due the debtor:
218          (a) a judgment, citation, tax, or administrative order issued by any agency, court, or
219     other authority of the state, or by any political subdivision; [or]
220          (b) an amount, that has at any point been unpaid for 90 days or more, due the state or
221     other governmental entity for which materials or services have been provided but for which
222     payment has not been received by the servicing unit[.]; or
223          (c) an amount, that:
224          (i) the debtor is statutorily required to pay to the state or other governmental entity; and
225          (ii) has, at any point, been unpaid for at least 90 days.
226          (2) The lien created by this section shall, for the purposes of Section 59-10-529 only,
227     be considered a judgment.
228          (3) Nothing under Title 63G, Chapter 7, Part 6, Legal Actions Under this Chapter -
229     Procedures, Requirements, Damages, and Limitations on Judgments, prohibits the state or
230     other governmental entity from executing on a lien under this section.
231          Section 11. Section 63A-3-308 is amended to read:
232          63A-3-308. Judicial review -- Effect on lien.
233          (1) Agency and judicial review of decisions from hearings conducted under this part
234     are subject to review in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
235          (2) The state or other governmental entity may retain in its possession a debtor's tax
236     overpayment [or], refund, or other funds subject to a lien under this part, while a decision from
237     a hearing conducted under this part is being reviewed by an agency, court, or other authority of
238     the state pursuant to Title 63G, Chapter 4, Administrative Procedures Act.
239          Section 12. Section 63A-3-502 is amended to read:
240          63A-3-502. Office of State Debt Collection created -- Duties.
241          (1) The state and each state agency shall comply with:
242          (a) the requirements of this chapter; and
243          (b) any rules established by the Office of State Debt Collection.
244          (2) There is created the Office of State Debt Collection in the Division of Finance.

245          (3) The office shall:
246          (a) have overall responsibility for collecting and managing state receivables;
247          (b) assist the Division of Finance to develop consistent policies governing the
248     collection and management of state receivables;
249          (c) oversee and monitor state receivables to ensure that state agencies are:
250          (i) implementing all appropriate collection methods;
251          (ii) following established receivables guidelines; and
252          (iii) accounting for and reporting receivables in the appropriate manner;
253          (d) assist the Division of Finance to develop policies, procedures, and guidelines for
254     accounting, reporting, and collecting money owed to the state;
255          (e) provide information, training, and technical assistance to each state agency on
256     various collection-related topics;
257          (f) write an inclusive receivables management and collection manual for use by each
258     state agency;
259          (g) prepare quarterly and annual reports of the state's receivables;
260          (h) create or coordinate a state accounts receivable database;
261          (i) develop reasonable criteria to gauge state agencies' efforts in maintaining an
262     effective accounts receivable program;
263          (j) identify any state agency that is not making satisfactory progress toward
264     implementing collection techniques and improving accounts receivable collections;
265          (k) coordinate information, systems, and procedures between each state agency to
266     maximize the collection of past-due accounts receivable;
267          (l) establish an automated cash receipt process between each state agency;
268          (m) assist the Division of Finance to establish procedures for writing off accounts
269     receivable for accounting and collection purposes;
270          (n) establish standard time limits after which an agency will delegate responsibility to
271     collect state receivables to the office or the office's designee;
272          (o) be a real party in interest for:
273          (i) an account receivable referred to the office by any state agency; and
274          (ii) a civil judgment of restitution entered on a civil judgment docket by a court;
275          (p) allocate money collected for a judgment entered on the civil judgment docket under

276     Section 77-18-114 in accordance with Sections 51-9-402, 63A-3-506, and 78A-5-110;
277          (q) if a criminal accounts receivable is transferred to the office under Subsection
278     77-32b-103(2)(a)(ii), receive, process, and distribute payments for the criminal accounts
279     receivable;
280          (r) provide a debtor online access to the debtor's accounts receivable or criminal
281     accounts receivable in accordance with Section 63A-3-502.5;
282          (s) establish a written policy for each of the following:
283          (i) the settling of an accounts receivable, including any amount of restitution owed to a
284     victim in a civil judgment of restitution if the victim approves of the settlement;
285          (ii) allowing a debtor to pay off a single debt as part of an accounts receivable even if
286     the debtor has a balance on another debt as part of an accounts receivable or criminal accounts
287     receivable;
288          (iii) setting a payment deadline for settlement agreements and for obtaining an
289     extension of a settlement agreement deadline; and
290          (iv) reducing administrative costs when a settlement has been reached;
291          (t) consult with a state agency on whether:
292          (i) the office may agree to a settlement for an amount that is less than the debtor's
293     principal amount; and
294          (ii) the state agency may retain authority to negotiate a settlement with a debtor; and
295          (u) provide the terms and conditions of any payment arrangement that the debtor has
296     made with a state agency or the office when:
297          (i) the payment arrangement is created; or
298          (ii) the debtor requests a copy of the terms and conditions.
299          (4) The office may:
300          (a) recommend to the Legislature new laws to enhance collection of past-due accounts
301     by state agencies;
302          (b) collect accounts receivables for higher education entities, if the higher education
303     entity agrees;
304          (c) prepare a request for proposal for consulting services to:
305          (i) analyze the state's receivable management and collection efforts; and
306          (ii) identify improvements needed to further enhance the state's effectiveness in

307     collecting the state's receivables;
308          (d) contract with private or state agencies to collect past-due accounts;
309          (e) perform other appropriate and cost-effective coordinating work directly related to
310     collection of state receivables;
311          (f) obtain access to records and databases of any state agency that are necessary to the
312     duties of the office by following the procedures and requirements of Section 63G-2-206,
313     including the financial declaration form described in Section 77-38b-204;
314          (g) at rates authorized by the Legislature or set in statute, assess and collect the
315     following interest and fees [related to the collection of receivables under this chapter, and
316     establish, by following the procedures and requirements of Section 63J-1-504]:
317          (i) a fee to cover the administrative costs of collection on accounts administered by the
318     office;
319          (ii) a late penalty fee that may not be more than 10% of the account receivable on
320     accounts administered by the office;
321          (iii) an interest charge that is:
322          (A) the postjudgment interest rate established by Section 15-1-4 in judgments
323     established by the courts; or
324          (B) not more than 2% above the prime rate as of July 1 of each fiscal year for accounts
325     receivable for which no court judgment has been entered; and
326          (iv) fees to collect accounts receivable for higher education;
327          (h) collect reasonable attorney fees and reasonable costs of collection that are related to
328     the collection of receivables under this chapter;
329          (i) make rules that allow accounts receivable to be collected over a reasonable period
330     of time and under certain conditions with credit cards;
331          (j) for a case that is referred to the office or in which the office is a judgment creditor,
332     file a motion or other document related to the office or the accounts receivable in that case,
333     including a satisfaction of judgment, in accordance with the Utah Rules of Civil Procedure;
334          (k) ensure that judgments for which the office is the judgment creditor are renewed, as
335     necessary;
336          (l) notwithstanding Section 63G-2-206, share records obtained under Subsection (4)(f)
337     with private sector vendors under contract with the state to assist state agencies in collecting

338     debts owed to the state agencies without changing the classification of any private, controlled,
339     or protected record into a public record;
340          (m) enter into written agreements with other governmental agencies to obtain and share
341     information for the purpose of collecting state accounts receivable; and
342          (n) collect accounts receivable for a political subdivision of the state if the political
343     subdivision enters into an agreement or contract with the office under Title 11, Chapter 13,
344     Interlocal Cooperation Act, for the office to collect the political subdivision's accounts
345     receivable.
346          (5) The office shall ensure that:
347          (a) a record obtained by the office or a private sector vendor under Subsection (4)(l):
348          (i) is used only for the limited purpose of collecting accounts receivable; and
349          (ii) is subject to federal, state, and local agency records restrictions; and
350          (b) any individual employed by, or formerly employed by, the office or a private sector
351     vendor as referred to in Subsection (4)(l) is subject to:
352          (i) the same duty of confidentiality with respect to the record imposed by law on
353     officers and employees of the state agency from which the record was obtained; and
354          (ii) any civil or criminal penalties imposed by law for violations of lawful access to a
355     private, controlled, or protected record.
356          (6) (a) The office shall collect a civil accounts receivable or a civil judgment of
357     restitution ordered by a court as a result of prosecution for a criminal offense that have been
358     transferred to the office under Subsection 77-18-114(1) or (2).
359          (b) The office may not assess:
360          (i) the interest charge established by the office under Subsection (4) on an account
361     receivable subject to the postjudgment interest rate established by Section 15-1-4; and
362          (ii) an interest charge on a criminal accounts receivable that is transferred to the office
363     under Subsection 77-32b-103(2)(a)(ii).
364          (7) The office shall require a state agency to:
365          (a) transfer collection responsibilities to the office or the office's designee according to
366     time limits established by the office;
367          (b) make annual progress towards implementing collection techniques and improved
368     accounts receivable collections;

369          (c) use the state's accounts receivable system or develop systems that are adequate to
370     properly account for and report the state's receivables;
371          (d) develop and implement internal policies and procedures that comply with the
372     collections policies and guidelines established by the office;
373          (e) provide internal accounts receivable training to staff involved in the management
374     and collection of receivables as a supplement to statewide training;
375          (f) bill for and make initial collection efforts of the state agency's receivables up to the
376     time the accounts must be transferred; and
377          (g) submit quarterly receivable reports to the office that identify the age, collection
378     status, and funding source of each receivable.
379          (8) All interest, fees, and other amounts authorized to be collected by the office under
380     Subsection (4)(g):
381          (a) are penalties that may be charged by the office;
382          (b) do not require an order from a court for the office to assess or collect;
383          (c) are not compensation for actual pecuniary loss;
384          (d) for a civil accounts receivable:
385          (i) begin to accrue on the day on which the civil accounts receivable is entered on the
386     civil judgment docket under Subsection 77-18-114(1) or (2); and
387          (ii) may be collected as part of the civil accounts receivable;
388          (e) for a civil judgment of restitution:
389          (i) begin to accrue on the day on which the civil judgment of restitution is entered on
390     the civil judgment docket under Subsection 77-18-114(1); and
391          (ii) may be collected as part of the civil judgment of restitution;
392          (f) for all other accounts receivable:
393          (i) begin to accrue on the day on which the accounts receivable is transferred to the
394     office, even if there is no court order on the day on which the accounts receivable is
395     transferred; and
396          (ii) may be collected as part of the accounts receivable; and
397          (g) may be waived by:
398          (i) the office; or
399          (ii) if the interest, fee, or other amount is charged in error, the court.

400          Section 13. Section 63A-3-505 is amended to read:
401          63A-3-505. State Debt Collection Fund.
402          (1) There is created an expendable special revenue fund entitled the "State Debt
403     Collection Fund."
404          (2) The fund consists of:
405          (a) all amounts appropriated to the fund under this chapter;
406          (b) fees and interest [established by the office under] described in Subsection
407     63A-3-502(4)(g); and
408          (c) except as otherwise provided by law, all postjudgment interest collected by the
409     office or the state, except postjudgment interest on a civil judgment of restitution.
410          (3) Money in this fund shall be overseen by the office and may be used to pay for:
411          (a) the costs of the office in the performance of the office's duties [under this chapter];
412          (b) a civil judgment of restitution for which debt is owed;
413          (c) interest accrued that is associated with the debt;
414          (d) principal on the debt to the state agencies or other entities that placed the receivable
415     for collection; [and]
416          (e) other legal obligations including those ordered by a court[.]; and
417          (f) deputy court clerks who work exclusively on debt collection activities.
418          (4) (a) The fund may collect interest.
419          (b) All interest earned from the fund shall be deposited [in] into the General Fund.
420          (5) The office shall ensure that money remaining in the fund at the end of the fiscal
421     year that is not committed under the priorities established under Subsection (3) is deposited
422     into the General Fund.
423          Section 14. Section 63A-3-507 is amended to read:
424          63A-3-507. Administrative garnishment order.
425          (1) Subject to Subsection (2), if a judgment is entered against a debtor, the office may
426     issue an administrative garnishment order against the debtor's personal property, including
427     wages, in the possession of a party other than the debtor in the same manner and with the same
428     effect as if the order was a writ of garnishment issued by a court with jurisdiction.
429          (2) The office may issue the administrative garnishment order if:
430          (a) the order is signed by the director or the director's designee; and

431          (b) the underlying debt is for:
432          (i) nonpayment of a civil accounts receivable or a civil judgment of restitution; or
433          (ii) nonpayment of a judgment, or abstract of judgment or award filed with a court,
434     based on an administrative order for payment issued by an agency of the state.
435          (3) An administrative garnishment order issued in accordance with this section is
436     subject to the procedures and due process protections provided by Rule 64D, Utah Rules of
437     Civil Procedure, except as provided by Section 70C-7-103.
438          (4) An administrative garnishment order issued by the office shall:
439          (a) contain a statement that includes:
440          (i) if known:
441          (A) the nature, location, account number, and estimated value of the property; and
442          (B) the name, address, and phone number of the person holding the property;
443          (ii) whether any of the property consists of earnings;
444          (iii) the amount of the judgment and the amount due on the judgment; and
445          (iv) the name, address, and phone number of any person known to the plaintiff to claim
446     an interest in the property;
447          (b) identify the defendant, including the defendant's name and last known address;
448          (c) notify the defendant of the defendant's right to reply to answers and request a
449     hearing as provided by Rule 64D, Utah Rules of Civil Procedure; and
450          (d) state where the garnishee may deliver property.
451          (5) The office may, in the office's discretion, include in an administrative garnishment
452     order:
453          (a) the last four digits of the defendant's Social Security number;
454          (b) the last four digits of the defendant's driver license number;
455          (c) the state in which the defendant's driver license was issued;
456          (d) one or more interrogatories inquiring:
457          (i) whether the garnishee is indebted to the defendant and, if so, the nature of the
458     indebtedness;
459          (ii) whether the garnishee possesses or controls any property of the defendant and, if
460     so, the nature, location, and estimated value of the property;
461          (iii) whether the garnishee knows of any property of the defendant in the possession or

462     under the control of another and, if so:
463          (A) the nature, location, and estimated value of the property; and
464          (B) the name, address, and telephone number of the person who has possession or
465     control of the property;
466          (iv) whether the garnishee is deducting a liquidated amount in satisfaction of a claim
467     against the plaintiff or the defendant, whether the claim is against the plaintiff or the defendant,
468     and the amount deducted;
469          (v) the date and manner of the garnishee's service of papers upon the defendant and any
470     third party;
471          (vi) the dates on which any previously served writs of continuing garnishment were
472     served; and
473          (vii) any other relevant information, including the defendant's position, rate of pay,
474     method of compensation, pay period, and computation of the amount of the defendant's
475     disposable earnings.
476          (6) (a) A garnishee who acts in accordance with this section and the administrative
477     garnishment issued by the office is released from liability unless an answer to an interrogatory
478     is successfully controverted.
479          (b) Except as provided in Subsection (6)(c), if the garnishee fails to comply with an
480     administrative garnishment issued by the office without a court or final administrative order
481     directing otherwise, the garnishee is liable to the office for an amount determined by the court.
482          (c) The amount for which a garnishee is liable under Subsection (6)(b) includes:
483          (i) (A) the value of the judgment; or
484          (B) the value of the property, if the garnishee shows that the value of the property is
485     less than the value of the judgment;
486          (ii) reasonable costs; and
487          (iii) attorney fees incurred by the parties as a result of the garnishee's failure.
488          (d) If the garnishee shows that the steps taken to secure the property were reasonable,
489     the court may excuse the garnishee's liability in whole or in part.
490          (7) (a) If the office has reason to believe that a garnishee has failed to comply with the
491     requirements of this section in the garnishee's response to a garnishment order issued under this
492     section, the office may submit a motion to the court requesting the court to issue an order

493     against the garnishee requiring the garnishee to appear and show cause why the garnishee
494     should not be held liable under this section.
495          (b) The office shall attach to a motion under Subsection (7)(a) a statement that the
496     office has in good faith conferred or attempted to confer with the garnishee in an effort to settle
497     the issue without court action.
498          (8) A person is not liable as a garnishee for drawing, accepting, making, or endorsing a
499     negotiable instrument if the instrument is not in the possession or control of the garnishee at
500     the time of service of the administrative garnishment order.
501          (9) (a) A person indebted to the defendant may pay to the office the amount of the debt
502     or an amount to satisfy the administrative garnishment.
503          (b) The office's receipt of an amount described in Subsection (9)(a) discharges the
504     debtor for the amount paid.
505          (10) A garnishee may deduct from the property any liquidated claim against the
506     defendant.
507          (11) (a) If a debt to the garnishee is secured by property, the office:
508          (i) is not required to apply the property to the debt when the office issues the
509     administrative garnishment order; and
510          (ii) may obtain a court order authorizing the office to buy the debt and requiring the
511     garnishee to deliver the property.
512          (b) Notwithstanding Subsection (11)(a)(i):
513          (i) the administrative garnishment order remains in effect; and
514          (ii) the office may apply the property to the debt.
515          (c) The office or a third party may perform an obligation of the defendant and require
516     the garnishee to deliver the property upon completion of performance or, if performance is
517     refused, upon tender of performance if:
518          (i) the obligation is secured by property; and
519          (ii) (A) the obligation does not require the personal performance of the defendant; and
520          (B) a third party may perform the obligation.
521          (12) (a) The office may issue a continuing garnishment order against a nonexempt
522     periodic payment.
523          (b) This section is subject to the Utah Exemptions Act.

524          (c) A continuing garnishment order issued in accordance with this section applies to
525     payments to, or for the benefit of, the defendant from the date of service upon the garnishee
526     until the earliest of the following:
527          (i) the last periodic payment;
528          (ii) the judgment upon which the administrative garnishment order is issued is stayed,
529     vacated, or satisfied in full; or
530          (iii) the office releases the order.
531          (d) No later than seven days after the last day of each payment period, the garnishee
532     shall with respect to that period:
533          (i) answer each interrogatory;
534          (ii) serve an answer to each interrogatory on the office, the defendant, and any other
535     person who has a recorded interest in the property; and
536          (iii) deliver the property to the office.
537          (e) If the office issues a continuing garnishment order during the term of a writ of
538     continuing garnishment issued by the district court, the order issued by the office:
539          (i) is tolled when a writ of garnishment or other income withholding is already in effect
540     and is withholding greater than or equal to the maximum portion of disposable earnings
541     described in Subsection (13);
542          (ii) is collected in the amount of the difference between the maximum portion of
543     disposable earnings described in Subsection (13) and the amount being garnished by an
544     existing writ of continuing garnishment if the maximum portion of disposable earnings exceed
545     the existing writ of garnishment or other income withholding; and
546          (iii) shall take priority upon the termination of the current term of existing writs.
547          (13) The maximum portion of disposable earnings of an individual subject to seizure in
548     accordance with this section is the lesser of:
549          (a) 25% of the defendant's disposable earnings for any other judgment; or
550          (b) the amount by which the defendant's disposable earnings for a pay period exceeds
551     the number of weeks in that pay period multiplied by 30 times the federal minimum wage as
552     provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
553          (14) (a) In accordance with the requirements of this Subsection (14), the office may, at
554     its discretion, determine a dollar amount that a garnishee is to withhold from earnings and

555     deliver to the office in a continuing administrative garnishment order issued under this section.
556          (b) The office may determine the dollar amount that a garnishee is to withhold from
557     earnings under Subsection (14)(a) if the dollar amount determined by the office:
558          (i) does not exceed the maximum amount allowed under Subsection (13); and
559          (ii) is based on:
560          (A) earnings information received by the office directly from the Utah Department of
561     Workforce Services; or
562          (B) previous garnishments issued to the garnishee by the office where payments were
563     received at a consistent dollar amount.
564          (c) The earnings information or previous garnishments relied on by the office under
565     Subsection (14)(b)(ii) to calculate a dollar amount under this Subsection (14) shall be:
566          (i) for one debtor;
567          (ii) from the same employer;
568          (iii) for two or more consecutive quarters; and
569          (iv) received within the last six months.
570          (15) (a) A garnishee who provides the calculation for withholdings on a defendant's
571     wages in the garnishee's initial response to an interrogatory in an administrative garnishment
572     order under this section is not required to provide the calculation for withholdings after the
573     garnishee's initial response if:
574          (i) the garnishee's accounting system automates the amount of defendant's wages to be
575     paid under the garnishment; and
576          (ii) the defendant's wages do not vary by more than five percent from the amount
577     disclosed in the garnishee's initial response.
578          (b) Notwithstanding Subsection (15)(a), upon request by the office or the defendant, a
579     garnishee shall provide, for the last pay period or other pay period specified by the office or
580     defendant, a calculation of the defendant's wages and withholdings and the amount garnished.
581          (16) (a) A garnishee under an administrative garnishment order under this section is
582     entitled to receive a garnishee fee, as provided in this Subsection (16), in the amount of:
583          (i) $10 per garnishment order, for a noncontinuing garnishment order; and
584          (ii) $25, as a one-time fee, for a continuing garnishment order.
585          (b) A garnishee may deduct the amount of the garnishee fee from the amount to be

586     remitted to the office under the administrative garnishment order, if the amount to be remitted
587     exceeds the amount of the fee.
588          (c) If the amount to be remitted to the office under an administrative garnishment order
589     does not exceed the amount of the garnishee fee:
590          (i) the garnishee shall notify the office that the amount to be remitted does not exceed
591     the amount of the garnishee fee; and
592          (ii) (A) the garnishee under a noncontinuing garnishment order shall return the
593     administrative garnishment order to the office, and the office shall pay the garnishee the
594     garnishee fee; or
595          (B) the garnishee under a continuing garnishment order shall delay remitting to the
596     office until the amount to be remitted exceeds the garnishee fee.
597          (d) If, upon receiving the administrative garnishment order, the garnishee does not
598     possess or control any property, including money or wages, in which the defendant has an
599     interest:
600          (i) the garnishee under a continuing or noncontinuing garnishment order shall, except
601     as provided in Subsection (16)(d)(ii), return the administrative garnishment order to the office,
602     and the office shall pay the garnishee the applicable garnishee fee; or
603          (ii) if the garnishee under a continuing garnishment order believes that the garnishee
604     will, within 90 days after issuance of the continuing garnishment order, come into possession
605     or control of property in which the defendant owns an interest, the garnishee may retain the
606     garnishment order and deduct the garnishee fee for a continuing garnishment once the amount
607     to be remitted exceeds the garnishee fee.
608          (17) Section 78A-2-216 does not apply to an administrative garnishment order issued
609     under this section.
610          (18) An administrative garnishment instituted in accordance with this section shall
611     continue to operate and require that a person withhold the nonexempt portion of earnings at
612     each succeeding earning disbursement interval until the total amount due in the garnishment is
613     withheld or the garnishment is released in writing by the court or office.
614          (19) If the office issues an administrative garnishment order under this section to
615     collect an amount owed on a civil accounts receivable or a civil judgment of restitution, the
616     administrative garnishment order shall be construed as a continuation of the criminal action for

617     which the civil accounts receivable or civil judgment of restitution arises if the amount owed is
618     from a fine, fee, or restitution for the criminal action.
619          Section 15. Section 78A-2-214 is amended to read:
620          78A-2-214. Collection of accounts receivable.
621          (1) As used in this section:
622          (a) "Accounts receivable" means any amount due the state from an entity for which
623     payment has not been received by the state agency that is servicing the debt.
624          (b) "Accounts receivable" includes unpaid fees, licenses, taxes, loans, overpayments,
625     fines, forfeitures, surcharges, costs, contracts, interest, penalties, restitution to victims, third
626     party claims, sale of goods, sale of services, claims, and damages.
627          (2) If a defendant is sentenced before July 1, 2021, and the Department of Corrections,
628     or the Office of State Debt Collection, is not responsible for collecting an accounts receivable
629     for the defendant, the district court shall collect the accounts receivable for the defendant.
630          (3) (a) In the juvenile court, money collected by the court from past-due accounts
631     receivable may be used to offset system, administrative, legal, and other costs of collection.
632          (b) The juvenile court shall allocate money collected above the cost of collection on a
633     pro rata basis to the various revenue types that generated the accounts receivable.
634          (4) The interest charge [established by the Office of State Debt Collection under]
635     described in Subsection 63A-3-502(4)(g)(iii) may not be assessed on an account receivable
636     subject to the postjudgment interest rate established by Section 15-1-4.
637          Section 16. Effective date.
638          This bill takes effect on May 1, 2024.