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
B-Engrossed
House Bill 2856
Ordered by the Senate May 16
Including House Amendments dated March 12 and Senate Amendments
dated May 16
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. { +
Declares emergency, effective July 1, 2001. + }
A BILL FOR AN ACT
Relating to state collection of debt; amending ORS 293.231 and
293.250; and declaring an emergency.
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.
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) As used in this section, 'state agency' has the meaning
given that term in ORS 293.235. + }
{ - (2) - } { + (3) + } 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 - } { + agency + }
assigned by the agency to which the delinquent account is owed to
the Department of Revenue for collection.
{ - (3) - } { + (4) + }(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 - } { +
state agencies + }, the Department of Revenue shall render
assistance in such collection and shall charge { - such
officers and - } { + the + } agencies separately for the cost
of such assistance, provided that charges shall not exceed the
proceeds of collection credited to { - such officer or - }
{ + the + } 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 - } { + state + } 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 - } { + state + } 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) A state agency authorized to use the services of the
Collections Unit may add a reasonable fee to the amount of the
debt, payable by the debtor, for the Collections Unit fee
incurred or to be incurred. The state agency may not add a fee
under this paragraph that exceeds the collection fee established
by the Collections Unit. + }
{ - (b) - } { + (c) + } No setoff will be made by the
Department of Revenue unless the debt is in a liquidated amount.
{ - (c) - } { + (d) + } When the Department of Revenue has
notified the assigning { + state + } 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
{ + state + } agency shall not enter into any agreement with the
debtor for payment of the debt before the setoff is made.
{ - (d) - } { + (e) + } 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) - } { + (f) + } 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) - } { + (g) + } Net proceeds of collections of
delinquent accounts shall be credited to the account or fund of
the { - officer or - } { + state + } agency to which the debt
was originally owing.
{ - (4) - } { + (5) + }(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
{ + fees, + } 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) - } { + (6) + } 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. { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect July 1,
2001. + }
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