2016 Kentucky Revised Statutes CHAPTER 45 - BUDGET AND FINANCIAL ADMINISTRATION .238 Powers and duties of Department of Revenue to collect referred debts -- Cost-ineffective debts -- Treatment of collected debts -- Annual report.
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45.238 Powers and duties of Department of Revenue to collect referred debts -Cost-ineffective debts -- Treatment of collected debts -- Annual report.
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Debts that are certified by an agency or by a local government as provided in KRS
45.237 shall be referred to the department for collection. The department shall be
vested with all the powers necessary to collect any referred debts.
(a) For those debts deemed unfeasible or cost ineffective to pursue, the
department shall maintain written records of the debt and the reason the debt
was deemed unfeasible or cost ineffective to pursue.
(b) In the case of agencies, these debts shall be written off in accordance with
administrative regulations promulgated under the authority of subsection (6)
of this section.
(c) In the case of local governments, these debts shall be returned to the referring
local government for further action.
(a) All certified debts of agencies received by the department after the sixty (60)
day collection period allowed in KRS 45.237(4), and all certified debts of a
local government received by the department after the ninety (90) day
collection period allowed by KRS 45.237(5), shall be subject to:
1.
Interest at the tax interest rate determined under KRS 131.183 on the
amount of the debt plus all accruals authorized by law, from the date the
debt is certified to the department until it is satisfied; and
2.
A one (1) time twenty-five percent (25%) collection fee imposed on the
amount of the debt plus all accruals authorized by law, as of the time of
referral.
(b) The department may retain the collection fee.
(c) In the case of agencies and the Court of Justice, recovered funds and interest
may, at the discretion of the secretary of the Finance and Administration
Cabinet, be returned to the agency certifying the debt or improper payment or
to the Court of Justice for allocation as otherwise provided by law. If the
recovered funds and interest are not returned to the agency or Court of Justice,
the amounts shall be deposited in the budget reserve trust fund established in
KRS 48.705, except for Medicaid benefits and funds required by law to be
remitted to a federal agency.
(d) In the case of local governments, recovered funds and interest shall be
returned to the referring local government for allocation as provided by
ordinance, resolution, or as otherwise provided by law.
The commissioner of the department may refer to the Attorney General any
unsatisfied claim, demand, account, or judgment in favor of the Commonwealth for
further civil or criminal action under KRS 15.060.
(a) The department shall report annually by October 1 to the Legislative Research
Commission on all referred certified debts, including at least a summary of the
debts by agency, fund type, and age, the latter compiled in the following four
(4) categories:
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Debts from ninety (90) to one hundred seventy-nine (179) days old;
Debts from one hundred eighty (180) to three hundred sixty-four (364)
days old;
3.
Debts over one (1) year old but less than three (3) years old; and
4.
Debts three (3) years old or older.
(b) The annual report shall also include the collection amount of the debts in
paragraph (a) of this subsection and the accounts to which the amounts are
credited.
The department shall promulgate administrative regulations in accordance with
KRS Chapter 13A to establish standards that agencies shall use in determining
when to write debts off the books.
This section shall not affect the collection of delinquent taxes by sheriffs or county
attorneys under KRS 91A.070 or 134.504.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 88, sec. 4, effective June 25, 2013. -- Amended
2008 Ky. Acts ch. 44, sec. 1, effective July 15, 2008. -- Amended 2005 Ky. Acts ch.
85, sec. 62, effective June 20, 2005. -- Created 2004 Ky. Acts ch. 192, sec. 2,
effective April 21, 2004.
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