2020 Kentucky Revised Statutes Chapter 45 - Budget and financial administration 45.241 Definitions -- State agencies and Court of Justice to develop inventory of each debt -- Liquidated debts of agency, Court of Justice, or local government submitted to Department of Revenue -- Accounting of uncollected debt -- Treatment of collected debt -- Annual reports.
Download as PDF
45.241 Definitions -- State agencies and Court of Justice to develop inventory
of each debt -- Liquidated debts of agency, Court of Justice, or local
government submitted to Department of Revenue -- Accounting of
uncollected debt -- Treatment of collected debt -- Annual reports.
(1)
(2)
As used in this section:
(a) "Debt" means:
1.
For agencies, a sum certain which has been certified by an agency
as due and owing; and
2.
For local governments, a sum certain which has been certified by a
local government as due and owing, including but not limited to any
delinquent taxes or fees other than delinquent real and personal
property taxes;
(b) "Liquidated debt" means:
1.
For agencies, a legal debt for a sum certain which has been certified
by an agency as final due and owing, all appeals and legal actions
having been exhausted;
2.
For local governments, a legal debt for a sum certain which has
been certified by a local government as final due and owing, all
appeals and legal actions having been exhausted, including but not
limited to any delinquent taxes or fees other than delinquent real and
personal property taxes; and
3.
For the Court of Justice, a legal debt including any fine, fee, court
costs, or restitution due the Commonwealth, which have been
imposed by a final sentence of a trial court of the Commonwealth
and for which the time permitted for payment pursuant to the
provisions of KRS 534.020 has expired;
(c) "Agency" means an organizational unit or administrative body in the
executive branch of state government, as defined in KRS 12.010;
(d) "Department" means the Department of Revenue;
(e) "Court of Justice" means the Administrative Office of the Courts, all
courts, and all clerks of the courts;
(f) "Forgivable loan agreement" means a loan agreement entered into
between an agency and a borrower that establishes specific conditions,
which, if satisfied by the borrower, allows the agency to forgive a portion
or all of the loan;
(g) "Improper payment" means a payment made to a vendor, provider, or
recipient due to error, fraud, or abuse; and
(h) "Local government" means any city, county, urban-county government,
consolidated local government, charter county, or unified local
government of the Commonwealth.
Each agency and the Court of Justice shall develop, maintain, and update in a
timely manner an ongoing inventory of each debt owed to it, including debts
due to improper payments, and shall make every reasonable effort to collect
each debt. Within sixty (60) days after the identification of a debt, each agency
shall begin administrative action to collect the debt.
(3)
(4)
(5)
(6)
(7)
The Auditor of Public Accounts shall review each agency's debt identification
and collection procedures as part of the annual audit of state agencies.
An agency shall not forgive any debt owed to it unless that agency has entered
into a forgivable loan agreement with a borrower, or unless otherwise provided
by statute.
For those agencies without statutory procedures for collecting debts, the
Department of Revenue shall promulgate administrative regulations in
accordance with KRS Chapter 13A to prescribe standards and procedures with
which those agencies shall comply regarding collection of debts, notices to
persons owing debt, information to be monitored concerning the debts, and an
appeals process.
(a) Each agency and the Court of Justice shall identify all liquidated debts,
including debts due to improper payments, and shall submit a list of those
liquidated debts in the form and manner prescribed by the department to
the department for review. The department shall review the information
submitted by the agencies and the Court of Justice and shall, within
ninety (90) days of receipt of the information, determine whether it would
be cost-effective for the department to further pursue collection of the
liquidated debts.
(b) A local government, after making reasonable efforts to collect its debts,
may by ordinance, resolution, or otherwise pursuant to law, submit a list
of its liquidated debts that have been due and owing for more than ninety
(90) days to the department for review to determine whether it would be
cost-effective for the department to pursue collection of the liquidated
debts. The department shall review the information submitted by a local
government and shall, within ninety (90) days of receipt of the information,
determine whether it would be cost-effective for the department to further
pursue collection of the liquidated debts.
(c) The department may, after consultation with the agency, Court of Justice,
or a local government, return the liquidated debt to the entity submitting
the liquidated debt if:
1.
The request for review contains insufficient information; or
2.
The debt is not feasible to collect.
Any return of a liquidated debt shall be in writing, and shall state why the
debt is being returned.
(d) The department shall identify in writing to the submitting agency, Court of
Justice, or local government, the liquidated debts it has determined that it
can pursue in a cost-effective manner, and the agency, Court of Justice,
or local government shall officially refer the identified liquidated debts to
the department for collection.
(e) The agency, Court of Justice, and local government shall retain a
complete record of all liquidated debts referred to the department for
collection until the debt is collected, forgiven, or returned as uncollectible.
(f) Each agency, the Court of Justice, and local government shall make
appropriate accounting of any uncollected debt as prescribed by law.
(a) If the agency recovers the debt funds prior to referral to the department,
(8)
the agency shall retain the collected funds in accordance with its statutory
authority.
(b) 1.
Upon referral of a liquidated debt to the department, the liquidated
debt shall accrue the following amounts:
a.
Interest on the total amount of the debt plus legal accruals at
the tax interest rate provided in KRS 131.183, from the time of
referral until paid; and
b.
A one (1) time twenty-five percent (25%) collection fee on the
total amount of the debt plus legal accruals, as of the time of
referral;
unless the interest and collection fee are waived by the department.
2.
The interest and collection fee shall be in addition to any other costs
accrued prior to the time of referral.
3.
The department may deduct and retain from the liquidated debt
recovered an amount equal to the lesser of the collection fee or the
actual expenses incurred in the collection of the debt.
4.
In the case of agencies and the Court of Justice, any funds
recovered by the department after the deduction of the department's
cost of collection expenses may, at the discretion of the secretary of
the Finance and Administration Cabinet, be returned to the agency
identifying the liquidated debt 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 general fund, except for Medicaid benefits funds
and funds required by law to be remitted to a federal agency, which
shall be remitted as required by law.
5.
In the case of local governments, any funds recovered by the
department after the deduction of the department's cost of collection
expenses shall be returned to the local government referring the
liquidated debt, for allocation as provided by ordinance, resolution,
or as otherwise provided by law.
(c) Nothing in this section shall prohibit the department from entering into a
memorandum of agreement with an agency pursuant to KRS
131.130(11), for collection of debts prior to liquidation. If an agency enters
into an agreement with the department, the agency shall retain funds
collected according to the provisions of the agreement.
(d) This section shall not affect any agreement between the department and
an agency entered into under KRS 131.130(11) that is in effect on July
13, 2004, that provides for the collection of liquidated debts by the
department on behalf of the agency.
(e) This section shall not affect the collection of delinquent taxes by sheriffs
or county attorneys under KRS 91A.070 or 134.504.
(f) This section shall not affect the collection of performance or reclamation
bonds.
Upon receipt of a referred liquidated debt and after its determination that the
debt is feasible and cost-effective to collect, the department shall pursue
collection of the referred debt in accordance with KRS 131.030.
(9) By administrative regulation promulgated under KRS Chapter 13A, the
department shall prescribe the electronic format and form of, and the
information required in, a referral.
(10) (a) The department shall report annually by October 1 to the Interim Joint
Committee on Appropriations and Revenue on the collection of debts,
including debts due to improper payments, referred by agencies and the
Court of Justice. The report shall include the total amount by agency and
fund type of liquidated debt that has been referred to the department; the
amount of each referring agency's liquidated debt, by fund type, that has
been collected by the department; and the total amount of each referring
agency's liquidated debt, by fund type, that the department determined to
be cost-ineffective to collect, including the reasons for the determinations.
(b) Each cabinet shall report annually by October 1 to the Interim Joint
Committee on Appropriations and Revenue on:
1.
The amount of previous fiscal year unliquidated debt by agency,
including debts due to improper payments, fund type, category, and
age, the latter to be categorized as less than one (1) year, less than
five (5) years, less than ten (10) years, and over ten (10) years; and
2.
The amount, by agency, of liquidated debt, including debts due to
improper payments, not referred to the department; a summary, by
criteria listed in subsection (6)(a) of this section, of reasons the
department provided for not requesting referral of those liquidated
debts; and a summary of the actions each agency is taking to collect
those liquidated debts.
(c) Beginning on October 1, 2005, the Court of Justice shall report annually
by October 1 of each year to the Interim Joint Committee on
Appropriations and Revenue the amount of previous fiscal year
unliquidated debt by county and whether in the Circuit Court or District
Court; and fund type and age, the latter categorized as less than one (1)
year, less than five (5) years, less than ten (10) years, and over ten (10)
years. The first year for which the Court of Justice shall be required to
report is the fiscal year beginning on July 1, 2004 and ending on June 30,
2005. The Court of Justice shall not be required to report unliquidated
debts in existence prior to July 1, 2004.
(d) The Finance and Administration Cabinet shall report annually by October
1 to the Interim Joint Committee on Appropriations and Revenue on the
amount of the General Government Cabinet's unliquidated debt by
agency, fund type, and age, the latter categorized as less than one (1)
year, less than five (5) years, less than ten (10) years, and over ten (10)
years.
(11) At the time of submission of a liquidated debt to the department for review, the
referring agency, the Court of Justice, or, where feasible, the local government
shall provide information about the debt to the State Treasurer for the
Treasurer's action under KRS 44.030(1).
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 158, sec. 8, effective June 29, 2017. --
Amended 2013 Ky. Acts ch. 88, sec. 5, effective June 25, 2013. -- Amended
2009 Ky. Acts ch. 10, sec. 54, effective January 1, 2010. -- Amended 2008 Ky.
Acts ch. 44, sec. 2, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 85,
sec. 64, effective June 20, 2005. -- Created 2004 Ky. Acts ch. 118, sec. 1,
effective July 13, 2004.
Legislative Research Commission Note (7/13/2004). 2004 Ky. Acts ch. 142, sec.
9, provides, "Notwithstanding any statutory law or administrative regulations,
any debt approved and funded by the Bluegrass State Skills Corporation or the
Kentucky Economic Development Finance Authority may be renegotiated,
amended, or forgiven with approval of their respective boards. Any debt
collected on behalf of the Kentucky Economic Development Finance Authority or
Bluegrass State Skills Corporation shall be returned to them subject to any
reasonable fees due for services rendered by other agencies or private vendors
in collecting the debt on their behalf and shall not be deemed general funds."
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.