72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2055
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Judiciary for Oregon Collectors Association)
CHAPTER ................
AN ACT
Relating to collection of debt; creating new provisions; amending
ORS 293.231; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) Except as provided in ORS 1.202 and
293.231, if a public body, as defined in ORS 174.109, uses a
private collection agency to collect a debt owed to the public
body, the public body 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.
(2) A fee may not be added under subsection (1) of this section
unless the public body has provided notice to the debtor:
(a) Of the existence of the debt;
(b) That the debt may be assigned to a private collection
agency for collection; and
(c) Of the amount of the fee that may be added to the debt
under subsection (1) of this section.
(3) Except as provided by federal law, the public body may not
add a fee under this section that exceeds the collection fee of
the private collection agency. + }
SECTION 2. { + (1) As used in this section, 'commercial debt '
means any obligation for payment of money or thing of value
arising out of an agreement or contract, express or implied, in
which the transaction that is the subject of the agreement or
contract is not primarily for personal, family or household
purposes.
(2) A person using a private collection agency to collect a
commercial debt owed to the person may add a reasonable fee to
the amount of the commercial debt, payable by the debtor, for the
collection agency fee incurred or to be incurred. A person may
not add a fee under this section that:
(a) Exceeds the collection fee of the private collection
agency; or
(b) Was not authorized in the agreement or contract creating
the commercial debt. + }
SECTION 3. ORS 293.231 is amended to read:
293.231. (1) Except as provided in subsections (4), (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:
Enrolled House Bill 2055 (HB 2055-B) Page 1
(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 confidentiality, service and courtesy imposed on the
state agency that assigned the account.
(4) 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.
(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 $100, 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
Enrolled House Bill 2055 (HB 2055-B) Page 2
assigned or is made generally available to private collection
agencies through a bid or request for proposal process.
{ + (9) A state agency that retains a private collection
agency under this section may add a fee to the amount of the
liquidated and delinquent account as provided in section 1 of
this 2003 Act. A fee may not be added under this subsection
unless the state agency has provided notice to the debtor:
(a) Of the existence of the debt;
(b) That the debt may be assigned to a private collection
agency for collection; and
(c) Of the amount of the fee that may be added to the debt
under this subsection.
(10) Except as provided by federal law, the state agency may
not add a fee under subsection (9) of this section that exceeds
the collection fee of the private collection agency. + }
SECTION 4. { + Sections 1 and 2 of this 2003 Act and the
amendments to ORS 293.231 by section 3 of this 2003 Act apply to
debts assigned to a private collection agency on or after the
effective date of this 2003 Act. + }
SECTION 5. This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage.
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Passed by House February 5, 2003
Repassed by House April 1, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 27, 2003
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President of Senate
Enrolled House Bill 2055 (HB 2055-B) Page 3
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
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Governor
Filed in Office of Secretary of State:
......M.,............., 2003
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Secretary of State
Enrolled House Bill 2055 (HB 2055-B) Page 4