74th OREGON LEGISLATIVE ASSEMBLY--2007 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 772
 
                         House Bill 2320
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Judiciary for Judicial Department)
 
 
                             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 State Court Administrator to enter into
intergovernmental agreement with United States Financial
Management Service and Internal Revenue Service for purpose of
offsetting federal tax refunds to collect liquidated and
delinquent accounts of state courts and commissions, departments
and divisions in judicial branch.
  Requires Oregon State Lottery Commission to hold lottery prize
in excess of $600 and notify State Court Administrator if lottery
prize winner is listed in database of persons having liquidated
and delinquent court accounts.
 
                        A BILL FOR AN ACT
Relating to collection of delinquent accounts; creating new
  provisions; and amending ORS 1.198, 1.202 and 461.715.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2007 Act is added to and made
a part of ORS 1.194 to 1.200. + }
  SECTION 2.  { + The State Court Administrator may enter into an
intergovernmental agreement with the United States Financial
Management Service and the Internal Revenue Service for the
purpose of offsetting federal tax refunds of debtors against
debtors' liquidated and delinquent accounts owing to state courts
or owing to commissions, departments or divisions in the judicial
branch of state government. + }
  SECTION 3. ORS 1.198 is amended to read:
  1.198. (1) ORS 1.197 does not apply to liquidated and
delinquent accounts that are { + :
  (a) + } Prohibited by state or federal law or regulation from
assignment or collection { + ; or
  (b) Subject to collection through an offset of federal tax
refunds pursuant to an agreement entered into under section 2 of
this 2007 Act + }.
  (2) Notwithstanding ORS 1.197, a state court or a commission,
department or division in the judicial branch of state
government, acting in its sole discretion, may choose not to
offer a liquidated and delinquent account to a private collection
agency or to the Department of Revenue if the account:
  (a) Is secured by a consensual security interest in real or
personal property;
  (b) Is based on that part of a judgment that requires payment
of restitution or a payment to the Crime Victims' Assistance
section of the Criminal Justice Division of the Department of
Justice;
  (c) Is in litigation, mediation or arbitration or is subject to
a stay in bankruptcy proceedings;
  (d) Is owed by a local or state government or by the federal
government;
  (e) 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;
  (f) Consists of moneys for which a district attorney has
assumed collection responsibility under ORS 8.680;
  (g) Consists of moneys owed by a person who is incarcerated;
  (h) Is an account that was previously offered to a private
collection agency and was refused, or that was previously
assigned to a private collection agency and the agency thereafter
relinquished the account;
  (i) Is less than $100, including penalties; or
  (j) Would result in loss of federal funding if assigned.
  SECTION 4. ORS 1.202 is amended to read:
  1.202. (1) All circuit courts and appellate courts of this
state, and all commissions, departments and divisions
 { - of - }   { + in + } the judicial branch of state government,
shall add a fee of not less than $25 and not more than $50 to any
judgment that includes a monetary obligation that the court or
judicial branch is charged with collecting. The fee shall
 { - be added to - }  cover the cost of establishing and
administering an account for the debtor and shall be added
without further notice to the debtor or further order of the
court. The fee shall be added only if the court gives the
defendant a period of time in which to pay the obligation after
the financial obligation is imposed. Fees under this subsection
shall be deposited in the General Fund.
  (2) All circuit courts and appellate courts of this state, and
all commissions, departments and divisions   { - of - }
 { + in + } the judicial branch of state government, that use
 { + private collection agencies, + } the Department of Revenue
 { - or private collection agencies - }   { + or an offset of
federal tax refunds pursuant to an agreement entered into under
section 2 of this 2007 Act + } shall add a fee to any judgment
referred for collection that includes a monetary obligation that
the state court or the commission, department or division is
charged with collecting.   { - The fee shall be added - }  { +  A
fee + } to cover the costs of collection charged by  { + the
private collection agency, + } the Department of Revenue { + ,
the United States Financial Management Service or the Internal
Revenue Service + }   { - or private collection agency and - }
shall be added to the monetary obligation without further notice
to the debtor or further order of the court. The fee may not
exceed the actual costs of collection charged by  { + the private
collection agency, + } the Department of Revenue { + , the United
States Financial Management Service or the Internal Revenue
Service.  + }  { - or private collection agency. - }  Fees under
this subsection shall be deposited in the Judicial Department
Collections Account established under ORS 1.204 and may be used
only for the purposes specified in ORS 1.204.
  (3) A court may not waive or suspend the fees required to be
added to judgments under the provisions of this section.
  SECTION 5. ORS 461.715 is amended to read:
  461.715. (1) The Oregon State Lottery Commission, by rule,
shall develop procedures whereby:
  (a) Before paying any portion of a lottery prize in excess of
$600, the lottery commission shall check the name and Social
Security number of the person entitled to payment  { + of the
lottery prize + } against a computer database containing the
names and Social Security numbers of obligors who are delinquent
in paying child support obligations  { + and a computer database
containing the names and identifying information of debtors who
are delinquent in paying liquidated accounts owing to a state
court or owing to a commission, department or division in the
judicial branch of state government + }.
    { - (b) When the person is listed in the database, the
lottery commission shall: - }
    { - (A) Place a 30-day hold on any payment to the person; - }
 
    { - (B) Inform the person of the hold; and - }
    { - (C) Notify the Division of Child Support of the
Department of Justice that a delinquent obligor has won a lottery
prize or is entitled to payment on a lottery prize. - }
   { +  (b) If the lottery commission finds that a person
entitled to payment of the lottery prize is listed in a computer
database described in paragraph (a) of this subsection, the
lottery commission shall place a 30-day hold on any payment to
the person and shall inform the person of the hold.
  (c) If the person entitled to payment of the lottery prize is
delinquent in paying child support obligations, the lottery
commission shall notify the Division of Child Support of the
Department of Justice that a delinquent obligor is entitled to
payment of a lottery prize.
  (d) If the person entitled to payment of the lottery prize is
delinquent in paying liquidated accounts owing to a state court
or owing to a commission, department or division in the judicial
branch of state government, the lottery commission shall notify
the State Court Administrator that a delinquent debtor is
entitled to payment of a lottery prize. + }
    { - (c) - }  { +  (e) + } If a garnishment proceeding is
initiated within the 30-day hold period { +  required under
paragraph (b) of this subsection + }, the lottery commission
shall continue to hold any payment to the person pending
disposition of the proceeding.
    { - (d) - }  { +  (f) + } If a garnishment proceeding is not
initiated within the 30-day hold period { +  required under
paragraph (b) of this subsection + }, the lottery commission
shall make payment on the prize to the person at  { + the earlier
of + } the end of the 30-day hold period or when   { - the
Division notifies the lottery commission that a garnishment
proceeding will not be initiated, whichever is sooner - }
 { + the lottery commission receives notice that a garnishment
proceeding will not be initiated from:
  (A) The Division of Child Support of the Department of Justice,
if the person entitled to payment of the lottery prize is
delinquent in paying child support obligations;
  (B) The State Court Administrator, if the person entitled to
payment of the lottery prize is delinquent in paying liquidated
accounts owing to a state court or owing to a commission,
department or division in the judicial branch of state
government; or
  (C) The Division of Child Support of the Department of Justice
and the State Court Administrator if the person entitled to
payment of the lottery prize is delinquent in paying child
support obligations and in paying liquidated accounts owing to a
state court or owing to a commission, department or division in
the judicial branch of state government + }.
  (2) The lottery commission shall establish and operate   { - a
data match system - }   { + separate data match systems + } using
automated data exchanges with the Division   { - that
identifies - }   { + of Child Support of the Department of
Justice and with the State Court Administrator to identify + }
delinquent child support obligors  { + and debtors who are
delinquent in paying liquidated accounts owing to a state court
or owing to a commission, department or division in the judicial
branch of state government + }. Any information necessary to
identify   { - delinquent obligors - }   { + such obligors or
debtors  + }and { +  to + } hold a payment on a prize shall be
 { + made + } available to the lottery commission through the
data match system.
  (3) The Department of Justice { + , the State Court
Administrator + } and the Oregon State Lottery Commission shall
enter into an agreement regarding the procedures required by
subsections (1) and (2) of this section.
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