72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 3087
 
                           C-Engrossed
 
                         House Bill 3023
                 Ordered by the Senate August 26
  Including House Amendments dated May 5 and July 25 and Senate
                   Amendments dated August 26
 
Sponsored by Representative KNOPP; Representatives ANDERSON,
  BACKLUND, BROWN, BUTLER, CLOSE, FLORES, GALLEGOS, GARRARD,
  GILMAN, JENSON, KITTS, KRIEGER, KROPF, KRUMMEL, KRUSE, MABREY,
  RICHARDSON, SCOTT, T SMITH, ZAUNER
 
 
                             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  { + other than Department of Revenue or
Employment Department + } to offer delinquent account to
Department of Revenue or private collection agency not later than
90 days after specified occurrences. Allows Oregon Department of
Administrative Services to adopt rules exempting certain
delinquent accounts for up to one year.
 
                        A BILL FOR AN ACT
Relating to collection of moneys owed to government agencies;
  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) - }   { + to (9) + } 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 - }  { +  Ninety days + } from the date the
account was liquidated if no payment has been received on the
account within
  { - that year - }  { +  the 90-day period + }; or
  (b)   { - One year - }  { +  Ninety days + } 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.
  (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 - }  { +  six months + }
from the date of
  { - liquidation - }   { + assignment + } to collect a payment.
If the department does not collect a payment within that
 { - one-year - }  { +  six-month + } period or if   { - one year
has - }  { +  six months have + } 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) The Oregon Department of Administrative Services may
adopt rules exempting specified kinds of liquidated and
delinquent accounts from the time periods established in
subsections (1), (2) and (4) of this section.
  (7) The Oregon Department of Administrative Services shall
adopt rules exempting liquidated and delinquent accounts that
originate in the Department of Revenue or the Employment
Department from the time periods established in subsections (1),
(2) and (4) of this section.
  (8) A liquidated and delinquent account that is subject to
assignment under this section shall be assigned to a private
collection agency if more than one year has elapsed without a
payment on the account. + }
    { - (6) - }   { + (9) + } 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) - }   { + (10) + } 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) - }   { + (11) + } 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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