71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1243
 
                         House Bill 2697
 
Sponsored by Representative BACKLUND; Representatives DOYLE,
  HOPSON, PATRIDGE, SCHRADER, WILLIAMS, WITT, Senators COURTNEY,
  FISHER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Allows school district to seek payment of amount owed by
student from parent or guardian of student through Collections
Unit in Department of Revenue. Requires that minimum amount be
owed for collection.
 
                        A BILL FOR AN ACT
Relating to collection of amounts owed by students; creating new
  provisions; and amending ORS 293.231 and 293.250.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) When a student graduates or becomes a
school dropout, as those terms are defined in ORS 339.505, or
otherwise leaves school in a manner described in ORS 339.505
(1)(c), and the student owes an amount to a school district, the
school district may collect the amount from the parent or
guardian of the student pursuant to ORS 293.250.
  (2) A school district that elects to collect an amount under
ORS 293.250 must first give written notice to the parent or
guardian of the student. The notice must state the reason the
former student owes money to the school district and the amount
owed, and must inform the parent or guardian that the district
intends to request the assistance of the Department of Revenue in
collecting the amount pursuant to ORS 293.250.
  (3) Following a date that is at least 30 days after the date of
the notice under subsection (2) of this section, the school
district may provide the Department of Revenue with the name and
address of the parent or guardian and the amount owed.
  (4) A school district may not collect an amount under ORS
293.250 if that amount is less than $150. + }
  SECTION 2. ORS 293.250 is amended to read:
  293.250. (1) There is hereby created a Collections Unit in the
Department of Revenue.
  (2) The Department of Revenue may render assistance in the
collection of any delinquent account owing to any state officer,
board, commission, corporation, institution, department or other
state organization { + , or to a school district, + } assigned by
the agency to which the delinquent account is owed to the
Department of Revenue for collection.
  (3)(a) Subject to rules prescribed by the Oregon Department of
Administrative Services for collection of delinquent accounts
owing to the respective officers, departments, boards and
commissions of state government,  { + and to school districts,
 + }the Department of Revenue shall render assistance in such
collection and shall charge such officers and agencies separately
for the cost of such assistance, provided that charges shall not
exceed the proceeds of collection credited to such officer or
agency for the same biennium. The Department of Revenue may
designate a single percentage to retain from the proceeds of
collection as a charge for the cost of assistance. If the
Department of Revenue finds that accounts assigned to the
Department of Revenue for collection by certain officers or
agencies lack sufficient information to properly and efficiently
identify the debtor or that the account information must be put
into a form usable by the Department of Revenue in order to
efficiently provide collection services, the Department of
Revenue may establish a separate percentage charge to be retained
from collections for the officer or agency. The charge must
reflect the average of the actual cost to provide collection
services for all accounts assigned by that officer or agency. In
providing assistance, the Department of Revenue shall utilize all
means available to collect the delinquent accounts including the
setoff of any refunds or sums due to the debtor from the
Department of Revenue or any other state agency. The Department
of Revenue may prescribe criteria for the kinds of accounts that
may be assigned under this section, including a minimum dollar
amount owed.
  (b) No setoff will be made by the Department of Revenue unless
the debt is in a liquidated amount.
  (c) When the Department of Revenue has notified the assigning
agency that a refund or other sum due to the debtor is available
for setoff, the debtor may arrange with the Department of Revenue
for payment of the debt in full before the setoff is made.
However, the assigning agency shall not enter into any agreement
with the debtor for payment of the debt before the setoff is
made.
  (d) At the time any setoff is made the debtor shall be notified
by the Department of Revenue of its intention to apply sums due
from a state agency against the debtor's delinquent account. The
notice shall provide that the debtor within 30 days may request a
hearing before the claimant agency. No issues at the hearing may
be considered that have been litigated previously, or if the
debtor after being given due notice of rights of appeal has
failed to exercise them timely.
  (e) All moneys received by the Department of Revenue in payment
of charges made under paragraph (a) of this subsection shall be
paid into the State Treasury and deposited in a miscellaneous
receipts account for the Department of Revenue.
  (f) Net proceeds of collections of delinquent accounts shall be
credited to the account or fund of the officer or agency to which
the debt was originally owing.
  (4)(a) In providing assistance in the collection of any
delinquent account under this section, the Department of Revenue
may issue a warrant for the collection of the delinquent account.
The warrant may be recorded in the County Clerk Lien Record
maintained under ORS 205.130.
  (b) A warrant shall not be issued under this subsection unless
the debt is in a liquidated amount.
  (c) The amount of any warrant issued under this subsection
shall include the principal amount of the debt, any added
penalties or interest attributable to the delinquent account and
any costs associated with recording, indexing or service of the
warrant and any satisfaction or release thereof.
  (d) A warrant shall not be issued under this subsection before
the debtor has been notified that the department intends to issue
the warrant and of the collection action that may be taken under
the warrant.
  (5) Nothing in this section shall prohibit the collection of:
  (a) A child or spousal support obligation as provided in ORS
25.610; or
  (b) Criminal judgments that impose monetary obligations,
including judgments requiring the payment of fines, costs,
assessments, compensatory fines, attorney fees, forfeitures or
restitution.
  SECTION 3. ORS 293.231 is amended to read:
  293.231. (1) Except as provided in subsections   { - (4) - }
 { +  (4)(a) + }, (5) and (6) of this section, a state agency,
unless otherwise prohibited by law, shall offer for assignment
every liquidated and delinquent account to a private collection
agency or to the Department of Revenue as provided in ORS 293.250
not later than:
  (a) One year from the date the account was liquidated if no
payment has been received on the account within that year; or
  (b) One year from the date of receipt of the most recent
payment on the account.
  (2) Nothing in subsection (1) of this section prohibits a state
agency from offering for assignment a liquidated and delinquent
account to a private collection agency at any time within the
one-year period.
  (3) If, after a reasonable time, the private collection agency
is unable to collect the account, the private collection agency
shall notify the state agency that assigned the account that it
has been unable to collect the account and shall relinquish the
account to the state agency. A private collection agency that
collects an account under this section shall be held to the same
standard of service and courtesy imposed on a state agency that
collects an account.
  (4) { + (a) + } If a state agency assigns a liquidated and
delinquent account to the Department of Revenue as provided in
ORS 293.250, the department shall have one year from the date of
liquidation to collect a payment. If the department does not
collect a payment within that one-year period or if one year has
elapsed since the date of receipt of the most recent payment on
the account, the department shall notify the state agency. The
state agency shall then immediately offer for assignment the debt
to a private collection agency.
   { +  (b) If a school district assigns a liquidated and
delinquent account to the Department of Revenue as provided in
ORS 293.250, the department may have more than one year from the
date of liquidation to collect a payment. If the department does
not collect a payment within a reasonable time that is in excess
of one year, the department shall notify the school district. The
school district may then offer for assignment the debt to a
private collection agency. + }
  (5) The provisions of subsection (1) of this section do not
apply to a liquidated and delinquent account that is prohibited
by state or federal law or regulation from assignment or
collection.
  (6) Notwithstanding subsection (1) of this section, a state
agency may, at its discretion, choose not to offer for assignment
to a private collection agency a liquidated and delinquent
account that:
  (a) Is secured by a consensual security interest in real or
personal property;
  (b) Is a court ordered judgment that includes restitution or a
payment to the Department of Justice Crime Victims' Assistance
Section;
  (c) Is in litigation, including bankruptcy, arbitration and
mediation;
  (d) Is a student loan owed by a student who is attending
school;
  (e) Is owed to a state agency by a local or state government or
by the federal government;
  (f) Is owed by a debtor who is hospitalized in a state hospital
as defined in ORS 162.135 or who is on public assistance as
defined in ORS 411.010;
  (g) Is owed by a debtor who is imprisoned;
  (h) Is less than $25, including penalties; or
  (i) Would result in loss of federal funding if assigned.
  (7) Nothing in this section prohibits a state agency from
collecting a tax offset after a liquidated and delinquent account
is assigned to a private collection agency.
  (8) For the purposes of this section, a state agency shall be
deemed to have offered for assignment an account if:
  (a) The terms of the offer are of a type generally acceptable
within the collections industry for the type of account offered
for assignment; and
  (b) The offer is made to a private collection agency that
engages in collecting on accounts of the type sought to be
assigned or is made generally available to private collection
agencies through a bid or request for proposal process.
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