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 2274
A-Engrossed
House Bill 2856
Ordered by the House March 12
Including House Amendments dated March 12
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND CONSUMER AFFAIRS
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.
Requires state agency to turn over delinquent and liquidated
accounts to private collection agency or Department of Revenue
within 90 days. { + Allows Oregon Department of Administrative
Services to extend period during which state agency need not turn
over delinquent and liquidated account not to exceed one year
from date account was liquidated or from most recent payment. + }
Adds cost of collection to amount of debt. { - Determines
reasonable cost of collection to be up to 50 percent of first
$100,000 of unpaid debt and up to 35 percent of unpaid debt over
$100,000. - }
A BILL FOR AN ACT
Relating to state collection of debt; amending ORS 293.231.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 293.231 is amended to read:
293.231. (1) Except as provided in subsections { - (4), (5)
and (6) - } { + (5), (6) and (7) + } of this section, a state
agency, unless otherwise prohibited by law { + or authorized by
the Oregon Department of Administrative Services + }, 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 { + 90 days from the date
the account was liquidated if no payment has been received on the
account within 90 days or 90 days from the date of receipt of the
most recent payment on the account. The Oregon Department of
Administrative Services may not authorize an agency to keep a
liquidated and delinquent account longer 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 - } { + 90-day + } period { + or the period
authorized by the Oregon Department of Administrative
Services + }.
{ + (3)(a) A state agency may retain, through a written
contract administered by the Oregon Department of Administrative
Services, a private collection agency for the purpose of
collecting a liquidated and delinquent account.
(b) A state agency using a private collection agency pursuant
to subsection (1) of this section may add a reasonable fee to the
amount of the debt, payable by the debtor, for the collection
agency fee incurred or to be incurred. A state agency may not add
a fee under this paragraph that exceeds the collection fee of the
private collection agency, as determined by the private
collection agency's contract with the state under paragraph (a)
of this subsection. + }
{ - (3) - } { + (4) + } 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) - } { + (5) + } 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 { + or the date of receipt of the most
recent payment on the account + } 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.
{ - (5) - } { + (6) + } 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) - } { + (7) + } 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) - } { + (8) + } 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) - } { + (9) + } 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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