Utah Code 63A-3-502. Office of State Debt Collection created

63A-3-502. Office of State Debt Collection created — Duties.

(1)

The state and each state agency shall comply with:

Terms Used In Utah Code 63A-3-502

Accounts receivable: includes :

(i)	unpaid fees, licenses, taxes, loans, overpayments, fines, forfeitures, surcharges, costs, contracts, interest, penalties, third-party claims, sale of goods, sale of services, claims, and damages;

(ii)	a civil accounts receivable; and

(iii)

a civil judgment of restitution. See Utah Code 63A-3-501

Civil accounts receivable: means the same as that term is defined in Section 77-32b-102. See Utah Code 63A-3-501

Civil judgment of restitution: means the same as that term is defined in Section 77-32b-102. See Utah Code 63A-3-501

Contract: A legal written agreement that becomes binding when signed.

Criminal accounts receivable: means the same as that term is defined in Section 77-32b-102. See Utah Code 63A-3-501

Docket: A log containing brief entries of court proceedings.

Entity: means an individual, a corporation, partnership, or other organization that pays taxes to, or does business, with the state. See Utah Code 63A-3-501

Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.

Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}

Office: means the Office of State Debt Collection created in Section 63A-3-502. See Utah Code 63A-3-501

Political subdivision: means the same as that term is defined in Section 63G-7-102. See Utah Code 63A-3-501

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

receivables: means any amount due to a state agency from an entity for which payment has not been received by the state agency that is servicing the debt. See Utah Code 63A-3-501

Restitution: means the same as that term is defined in Section 77-38b-102. See Utah Code 63A-3-501

Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.

Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

State agency: includes :

(i)	an executive branch agency;

(ii)	the legislative branch of state government; and

(iii)	the judicial branches of state government, including justice courts. See Utah Code 63A-3-501 Writing: includes :Utah Code 68-3-12.5
(a)	the requirements of this chapter; and

(b)	any rules established by the Office of State Debt Collection.

(2)	There is created the Office of State Debt Collection in the Division of Finance.

(3)

The office shall:

(a)	have overall responsibility for collecting and managing state receivables;

(b)	assist the Division of Finance to develop consistent policies governing the collection and management of state receivables;

(c)

oversee and monitor state receivables to ensure that state agencies are:

(i)	implementing all appropriate collection methods;

(ii)	following established receivables guidelines; and

(iii)

accounting for and reporting receivables in the appropriate manner;

(d)	assist the Division of Finance to develop policies, procedures, and guidelines for accounting, reporting, and collecting money owed to the state;

(e)	provide information, training, and technical assistance to each state agency on various collection-related topics;

(f)	write an inclusive receivables management and collection manual for use by each state agency;

(g)	prepare quarterly and annual reports of the state’s receivables;

(h)	create or coordinate a state accounts receivable database;

(i)	develop reasonable criteria to gauge state agencies’ efforts in maintaining an effective accounts receivable program;

(j)	identify any state agency that is not making satisfactory progress toward implementing collection techniques and improving accounts receivable collections;

(k)	coordinate information, systems, and procedures between each state agency to maximize the collection of past-due accounts receivable;

(l)	establish an automated cash receipt process between each state agency;

(m)	assist the Division of Finance to establish procedures for writing off accounts receivable for accounting and collection purposes;

(n)	establish standard time limits after which an agency will delegate responsibility to collect state receivables to the office or the office’s designee;

(o)

be a real party in interest for:

(i)	an account receivable referred to the office by any state agency; and

(ii)	a civil judgment of restitution entered on a civil judgment docket by a court;

(p)	allocate money collected for a judgment entered on the civil judgment docket under Section 77-18-114 in accordance with Sections 51-9-402, 63A-3-506, and 78A-5-110;

(q)	if a criminal accounts receivable is transferred to the office under Subsection 77-32b-103(2)(a)(ii), receive, process, and distribute payments for the criminal accounts receivable;

(r)	provide a debtor online access to the debtor’s accounts receivable or criminal accounts receivable in accordance with Section 63A-3-502.5;

(s)

establish a written policy for each of the following:

(i)	the settling of an accounts receivable, including any amount of restitution owed to a victim in a civil judgment of restitution if the victim approves of the settlement;

(ii)	allowing a debtor to pay off a single debt as part of an accounts receivable even if the debtor has a balance on another debt as part of an accounts receivable or criminal accounts receivable;

(iii)

setting a payment deadline for settlement agreements and for obtaining an extension of a settlement agreement deadline; and

(iv)	reducing administrative costs when a settlement has been reached;

(t)

consult with a state agency on whether:

(i)	the office may agree to a settlement for an amount that is less than the debtor’s principal amount; and

(ii)	the state agency may retain authority to negotiate a settlement with a debtor; and

(u)

provide the terms and conditions of any payment arrangement that the debtor has made with a state agency or the office when:

(i)	the payment arrangement is created; or

(ii)	the debtor requests a copy of the terms and conditions.

(4)

The office may:

(a)	recommend to the Legislature new laws to enhance collection of past-due accounts by state agencies;

(b)	collect accounts receivables for higher education entities, if the higher education entity agrees;

(c)

prepare a request for proposal for consulting services to:

(i)	analyze the state’s receivable management and collection efforts; and

(ii)	identify improvements needed to further enhance the state’s effectiveness in collecting the state’s receivables;

(d)	contract with private or state agencies to collect past-due accounts;

(e)	perform other appropriate and cost-effective coordinating work directly related to collection of state receivables;

(f)	obtain access to records and databases of any state agency that are necessary to the duties of the office by following the procedures and requirements of Section 63G-2-206, including the financial declaration form described in Section 77-38b-204;

(g)

collect interest and fees related to the collection of receivables under this chapter, and establish, by following the procedures and requirements of Section 63J-1-504:

(i)	a fee to cover the administrative costs of collection on accounts administered by the office;

(ii)	a late penalty fee that may not be more than 10% of the account receivable on accounts administered by the office;

(iii)

an interest charge that is:

(A)	the postjudgment interest rate established by Section 15-1-4 in judgments established by the courts; or

(B)	not more than 2% above the prime rate as of July 1 of each fiscal year for accounts receivable for which no court judgment has been entered; and

(iv)	fees to collect accounts receivable for higher education;

(h)	collect reasonable attorney fees and reasonable costs of collection that are related to the collection of receivables under this chapter;

(i)	make rules that allow accounts receivable to be collected over a reasonable period of time and under certain conditions with credit cards;

(j)	for a case that is referred to the office or in which the office is a judgment creditor, file a motion or other document related to the office or the accounts receivable in that case, including a satisfaction of judgment, in accordance with the Utah Rules of Civil Procedure;

(k)	ensure that judgments for which the office is the judgment creditor are renewed, as necessary;

(l)

notwithstanding Section 63G-2-206, share records obtained under Subsection (4)(f) with private sector vendors under contract with the state to assist state agencies in collecting debts owed to the state agencies without changing the classification of any private, controlled, or protected record into a public record;

(m)	enter into written agreements with other governmental agencies to obtain and share information for the purpose of collecting state accounts receivable; and

(n)	collect accounts receivable for a political subdivision of the state if the political subdivision enters into an agreement or contract with the office under Title 11, Chapter 13, Interlocal Cooperation Act, for the office to collect the political subdivision’s accounts receivable.

(5)

The office shall ensure that:

(a)

a record obtained by the office or a private sector vendor under Subsection (4)(l):

(i)	is used only for the limited purpose of collecting accounts receivable; and

(ii)	is subject to federal, state, and local agency records restrictions; and

(b)

any individual employed by, or formerly employed by, the office or a private sector vendor as referred to in Subsection (4)(l) is subject to:

(i)	the same duty of confidentiality with respect to the record imposed by law on officers and employees of the state agency from which the record was obtained; and

(ii)	any civil or criminal penalties imposed by law for violations of lawful access to a private, controlled, or protected record.

(6)

(a)	The office shall collect a civil accounts receivable or a civil judgment of restitution ordered by a court as a result of prosecution for a criminal offense that have been transferred to the office under Subsection 77-18-114(1) or (2).

(b)

The office may not assess:

(i)	the interest charge established by the office under Subsection (4) on an account receivable subject to the postjudgment interest rate established by Section 15-1-4; and

(ii)	an interest charge on a criminal accounts receivable that is transferred to the office under Subsection 77-32b-103(2)(a)(ii).

(7)

The office shall require a state agency to:

(a)	transfer collection responsibilities to the office or the office’s designee according to time limits established by the office;

(b)	make annual progress towards implementing collection techniques and improved accounts receivable collections;

(c)	use the state’s accounts receivable system or develop systems that are adequate to properly account for and report the state’s receivables;

(d)	develop and implement internal policies and procedures that comply with the collections policies and guidelines established by the office;

(e)	provide internal accounts receivable training to staff involved in the management and collection of receivables as a supplement to statewide training;

(f)	bill for and make initial collection efforts of the state agency’s receivables up to the time the accounts must be transferred; and

(g)	submit quarterly receivable reports to the office that identify the age, collection status, and funding source of each receivable.

(8)

All interest, fees, and other amounts authorized to be collected by the office under Subsection (4)(g):

(a)	are penalties that may be charged by the office;

(b)	do not require an order from a court for the office to assess or collect;

(c)	are not compensation for actual pecuniary loss;

(d)

for a civil accounts receivable:

(i)	begin to accrue on the day on which the civil accounts receivable is entered on the civil judgment docket under Subsection 77-18-114(1) or (2); and

(ii)	may be collected as part of the civil accounts receivable;

(e)

for a civil judgment of restitution:

(i)	begin to accrue on the day on which the civil judgment of restitution is entered on the civil judgment docket under Subsection 77-18-114(1); and

(ii)	may be collected as part of the civil judgment of restitution;

(f)

for all other accounts receivable:

(i)	begin to accrue on the day on which the accounts receivable is transferred to the office, even if there is no court order on the day on which the accounts receivable is transferred; and

(ii)	may be collected as part of the accounts receivable; and

(g)

may be waived by:

(i)	the office; or

(ii)	if the interest, fee, or other amount is charged in error, the court.

Amended by Chapter 113, 2023 General Session

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Utah Code 63A-3-502. Office of State Debt Collection created — Duties

Terms Used In Utah Code 63A-3-502