2005 Nevada Revised Statutes - Chapter 353C — Collection of Debts Owed to State Agency

CHAPTER 353C - COLLECTION OF DEBTS OWED TOSTATE AGENCY

NRS 353C.010 Definitions.

NRS 353C.020 Agencydefined.

NRS 353C.030 Agreementdefined.

NRS 353C.040 Debtdefined.

NRS 353C.050 Feedefined.

NRS 353C.060 Finedefined.

NRS 353C.070 Persondefined.

NRS 353C.080 Taxdefined.

NRS 353C.090 Applicability.

NRS 353C.100 Determinationof debt to be past due.

NRS 353C.110 Regulationsof Director of Department of Administration and Attorney General.

NRS 353C.115 Regulationsof State Controller establishing fee for returned or dishonored check or othermethod of payment.

NRS 353C.120 Periodicreports by agency of debts owed to agency; availability of reports for publicinspection.

NRS 353C.125 Agencyauthorized to refuse to conduct additional transaction with certain debtorsuntil payment of prior debts.

NRS 353C.130 Agreementwith debtor for payment in installments; extension.

NRS 353C.135 Reimbursementof costs and fees for collection of certain debts.

NRS 353C.140 Actionby Attorney General to collect debt; limitation of action.

NRS 353C.150 Applicationfor entry of summary judgment: Conditions; notice to debtor; filingrequirements.

NRS 353C.160 Entryof judgment for agency; service of judgment upon debtor.

NRS 353C.170 Recordationof judgment; lien upon property of debtor; extension of lien.

NRS 353C.180 Certificateof liability: Contents; recording; notification to debtor; lien on property;extension of lien.

NRS 353C.190 StateController may offset debt with amount owed to debtor by state agency; filingof claim on behalf of debtor; regulations.

NRS 353C.195 StateController authorized to act as collection agent for agency upon request;coordination of agencys debt collection efforts.

NRS 353C.200 Contractwith private debt collector: Conditions; prohibitions; provisions regardingcosts of and fees for collecting debt; approval.

NRS 353C.210 Noticeof debt and demand to transmit to persons possessing or controlling credits orother personal property of, or owing debts to, debtor; limitations on andliability for transfer or disposition of property; hearing.

NRS 353C.220 Baddebts: Designation; removal from books of account of State; effect of removal;master file.

NRS 353C.230 Remediesof state are supplemental; additional remedies unimpaired.

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NRS 353C.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS353C.020 to 353C.080, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1999, 3442)

NRS 353C.020 Agencydefined. Agency means an agency, bureau,board, commission, department or division of the Executive Department of StateGovernment.

(Added to NRS by 1999, 3442)

NRS 353C.030 Agreementdefined. Agreement means a transactionbetween one or more persons and an agency or the State of Nevada whereby eachparty to the transaction becomes obligated to the other with reciprocal rightsto demand performance of what is promised by the other.

(Added to NRS by 1999, 3442)

NRS 353C.040 Debt defined. Debt means a tax, fee, fine or other obligation:

1. That isowed to an agency or the State of Nevada; and

2. The payment of which is past due.

(Added to NRS by 1999, 3442)

NRS 353C.050 Feedefined. Fee means a charge fixed by law forservices or for the use of a privilege within the control of an agency or theState of Nevada.

(Added to NRS by 1999, 3442)

NRS 353C.060 Finedefined. Fine means a requirement to pay asum of money that is imposed on a person for an act of wrongdoing.

(Added to NRS by 1999, 3442)

NRS 353C.070 Persondefined. Person includes any politicalsubdivision of this state or other governmental entity which is not an agency.

(Added to NRS by 1999, 3442)

NRS 353C.080 Taxdefined. Tax means any compulsory chargelevied by an agency or the State of Nevada against the wealth of a person forthe common benefit of the general public.

(Added to NRS by 1999, 3442)

NRS 353C.090 Applicability. The provisions of this chapter apply to an agency only tothe extent that no other specific statute exists which provides for thecollection of debts due the agency. To the extent that the provisions of thischapter conflict with such a specific statute, the provisions of the specificstatute control.

(Added to NRS by 1999, 3442)

NRS 353C.100 Determinationof debt to be past due. For the purposes ofthis chapter, a debt is past due if the debt has not been remitted and paid toan agency or the State of Nevada as required by law, or as agreed upon by thedebtor and the agency or the State of Nevada, as appropriate.

(Added to NRS by 1999, 3442)

NRS 353C.110 Regulationsof Director of Department of Administration and Attorney General. The Director of the Department of Administration and theAttorney General may jointly adopt such regulations as are necessary to carryout the provisions of this chapter.

(Added to NRS by 1999, 3442)

NRS 353C.115 Regulationsof State Controller establishing fee for returned or dishonored check or othermethod of payment.

1. The State Controller shall adopt regulationsestablishing a fee of $25 that an agency shall charge a person for each checkor other method of payment that is returned to the agency or otherwisedishonored upon presentation for payment because the person had insufficientmoney or credit with the drawee or financial institution to pay the check orother method of payment, or because the person stopped payment on the check orother method of payment.

2. Notwithstanding any specific statute or regulationto the contrary, an agency may only charge and collect a fee for a check orother method of payment returned to the agency or otherwise dishonored uponpresentation for payment because the person has insufficient money or credit,or because the person stopped payment on the check or other method of payment,in accordance with the regulations adopted by the State Controller pursuant tothis section.

3. For the purposes of this section, agency does notinclude the Department of Taxation, Nevada Gaming Commission or State GamingControl Board.

(Added to NRS by 2003, 20thSpecial Session, 201; A 2005, 589)

NRS 353C.120 Periodicreports by agency of debts owed to agency; availability of reports for publicinspection.

1. Each agency shall submit to the State Controllerperiodic reports of the debts owed to the agency. The State Controller shallmaintain the reports to the extent that resources are available. The Directorof the Department of Administration and the Attorney General shall jointlyprescribe the time, form and manner of the reports.

2. Except to the extent that the information on thereports is declared to be confidential by a specific statute of this state orfederal law, the State Controller shall make the reports available for publicinspection and may, without charge, make available for access on the Internetor its successor, if any, the information contained in the reports.

(Added to NRS by 1999, 3443; A 2001, 1876)

NRS 353C.125 Agencyauthorized to refuse to conduct additional transaction with certain debtorsuntil payment of prior debts. If, in aprevious transaction between an agency and a person, a check or other method ofpayment was returned to the agency or otherwise dishonored upon presentationfor payment because the person had insufficient money or credit with the draweeor financial institution to pay the check or other method of payment or becausethe person had stopped payment on the check or other method of payment, theagency may refuse to conduct an additional transaction with the person untilthe debt owed in the previous transaction is paid.

(Added to NRS by 2001, 1876; A 2005, 590)

NRS 353C.130 Agreementwith debtor for payment in installments; extension. Anagency may enter into an agreement with a debtor which provides for the paymentof a debt owed by the debtor to the agency on an installment basis over a12-month or lesser period. Upon good cause shown by the debtor, the agency mayextend the period during which installment payments will be made for more thana 12-month period.

(Added to NRS by 1999, 3443)

NRS 353C.135 Reimbursementof costs and fees for collection of certain debts. Exceptas otherwise provided by specific statute, a person who owes a debt of morethan $200 pursuant to this chapter shall, in addition to the debt, pay as reimbursementfor the costs and fees actually incurred to collect the debt an amount not toexceed 25 percent of the amount of the debt or $25,000, whichever is less. Anyprejudgment or postjudgment interest on the debt authorized by law must not beincluded in the calculation of the costs and fees actually incurred to collectthe debt.

(Added to NRS by 2001, 1876)

NRS 353C.140 Action by Attorney General to collectdebt; limitation of action. If a person hasnot paid a debt that the person owes to an agency, the Attorney General, uponthe request of the agency:

1. Except asotherwise provided in this section, shall bring an action in a court ofcompetent jurisdiction; or

2. If theaction is a small claim subject to chapter 73of NRS, may bring an action in a court of competent jurisdiction,

on behalf ofthis state and the agency to collect the debt, plus any applicable penaltiesand interest. The action must be brought not later than 4 years after the dateon which the debt became due or within 5 years after the date on which acertificate of liability was last recorded pursuant to NRS 353C.180, as appropriate.

(Added to NRS by 1999, 3443)

NRS 353C.150 Applicationfor entry of summary judgment: Conditions; notice to debtor; filingrequirements.

1. In additionto any other remedy provided for in this chapter, if a person who owes a debtto an agency:

(a) Fails topay the debt when it is due, or fails to pay an agreed upon amount insatisfaction of the debt; or

(b) Defaults ona written or other agreement with an agency relating to the payment of thedebt,

the agency may, within 4 years afterthe date on which the debt became due or the date on which the debtordefaulted, as appropriate, file with the office of the clerk of a court ofcompetent jurisdiction an application for the entry of summary judgment againstthe debtor for the amount due.

2. An agencythat intends to file an application for the entry of summary judgment pursuantto this section shall, not less than 15 days before the date on which theagency intends to file the application, notify the debtor of its intention tofile the application. The notification must be sent by certified mail to thelast known address of the debtor and must include the name of the agency, theamount sought to be recovered and the date on which the application will befiled with the court.

3. Anapplication for the entry of summary judgment must:

(a) Beaccompanied by a certificate that specifies:

(1) Theamount of the debt, including any interest and penalties due;

(2) Thename and address of the debtor, as the name and address of the debtor appear onthe records of the agency;

(3) Thebasis for the determination by the agency of the amount due; and

(4) Thatthe agency has complied with the applicable provisions of law relating to thedetermination of the amount required to be paid; and

(b) Include:

(1) Arequest that judgment be entered against the debtor for the amount specified inthe certificate; and

(2) Evidence that the debtor was notified of theapplication for the entry of summary judgment in accordance with subsection 2.

(Added to NRS by 1999, 3443)

NRS 353C.160 Entryof judgment for agency; service of judgment upon debtor. The court clerk, upon the filing of an application for theentry of summary judgment which complies with the requirements set forth in NRS 353C.150, shall forthwith enter ajudgment for the agency against the debtor in the amount of the debt, plus any penaltiesand interest, as set forth in the certificate. The agency shall serve a copy ofthe judgment, together with a copy of the application and the certificate, uponthe debtor against whom the judgment is entered, either by personal service orby mailing a copy to the last known address of the debtor as it appears in therecords of the agency.

(Added to NRS by 1999, 3444)

NRS 353C.170 Recordationof judgment; lien upon property of debtor; extension of lien.

1. An abstractof the judgment entered pursuant to NRS353C.160, or a copy thereof, may be recorded in the office of the countyrecorder of any county.

2. From thetime of its recordation, the judgment becomes a lien upon all real and personalproperty situated in the county that is owned by the judgment debtor, or whichthe debtor may afterward acquire, until the lien expires. The lien has the force,effect and priority of a judgment lien and continues for 5 years after the dateof the judgment so entered by the court clerk unless sooner released orotherwise discharged.

3. Within 5 years after the date of the recording ofthe judgment or within 5 years after the date of the last extension of the lienpursuant to this subsection, the lien may be extended by recording an affidavitof renewal in the office of the county recorder. From the date of recording,the lien is extended for 5 years to all real and personal property situated inthe county that is owned by the judgment debtor or acquired by the judgmentdebtor afterwards, unless the lien is sooner released or otherwise discharged.

(Added to NRS by 1999, 3444)

NRS 353C.180 Certificateof liability: Contents; recording; notification to debtor; lien on property;extension of lien.

1. In additionto any other remedy provided for in this chapter, an agency may, within 4 yearsafter the date that a debt becomes due, record a certificate of liability inthe office of a county recorder which states:

(a) The amountof the debt, together with any interest or penalties due thereon;

(b) The nameand address of the debtor as the name and address of the debtor appear on therecords of the agency;

(c) That theagency has complied with all procedures required by law for determining theamount of the debt; and

(d) That theagency has notified the debtor in accordance with subsection 2.

2. An agencythat intends to file a certificate of liability pursuant to this section shall,not less than 15 days before the date on which the agency intends to file thecertificate, notify the debtor of its intention to file the certificate. Thenotification must be sent by certified mail to the last known address of thedebtor and must include the name of the agency, the amount sought to berecovered and the date on which the certificate will be filed with the countyrecorder.

3. From thetime of the recording of the certificate, the amount of the debt, includinginterest which accrues on the debt after the recording of the certificate, constitutesa lien upon all real and personal property situated in the county in which thecertificate was recorded that is owned by the debtor or acquired by the debtorafterwards and before the lien expires. The lien has the force, effect andpriority of a judgment lien on all real and personal property situated in thecounty in which the certificate was recorded and continues for 5 years afterthe date of recording unless sooner released or otherwise discharged.

4. Within 5 years after the date of the recording ofthe certificate or within 5 years after the date of the last extension of thelien pursuant to this subsection, the lien may be extended by recording a newcertificate in the office of the county recorder. From the date of recording,the lien is extended for 5 years to all real and personal property situated inthe county that is owned by the debtor or acquired by the debtor afterwards,unless the lien is sooner released or otherwise discharged.

(Added to NRS by 1999, 3444)

NRS 353C.190 StateController may offset debt with amount owed to debtor by state agency; filingof claim on behalf of debtor; regulations.

1. The StateController may, to the extent that resources are available, offset any amountdue an agency from a debtor against any amount owing to that debtor by anyagency, regardless of whether the agency which owes the amount is the sameagency to which the debtor owes the debt. Whenever the combined amount owing toa debtor by all agencies is insufficient to offset all the amounts due theagencies from the debtor, the State Controller shall allocate the amountavailable from the debtor among the agencies in such a manner as the StateController determines is appropriate.

2. If a debtorwho owes a debt to an agency has a claim against that agency or another agencyand refuses or neglects to file his claim with the agency within a reasonabletime, the head of the agency to which the debtor owes the debt may file theclaim on behalf of the debtor. If the State Controller approves the claim, ithas the same force and effect as though filed by the debtor. The amount due thedebtor from the agency is the net amount otherwise owing to the debtor afterany offset as provided in this section.

3. The State Controller shall adopt such regulationsas are necessary to carry out the provisions of this section, including,without limitation, the manner in which offsets will be allocated amongagencies.

(Added to NRS by 1999, 3445)

NRS 353C.195 StateController authorized to act as collection agent for agency upon request;coordination of agencys debt collection efforts.

1. The State Controller may, if requested by any stateagency, act as the collection agent for that agency.

2. If the State Controller acts as the collectionagent for an agency, the agency may coordinate all its debt collection effortsthrough the State Controller.

(Added to NRS by 2001, 1876)

NRS 353C.200 Contractwith private debt collector: Conditions; prohibitions; provisions regardingcosts of and fees for collecting debt; approval.

1. Except as otherwiseprovided in subsection 2, an agency may enter into a contract with a privatedebt collector or any other person for the assignment of the collection of adebt if the agency:

(a) Determinesthe assignment is likely to generate more net revenue than equivalent effortsby the agency to collect the debt, including collection efforts pursuant tothis chapter;

(b) Determinesthe assignment will not compromise future collections of state revenue; and

(c) Notifiesthe debtor in writing at his address of record that the debt will be turnedover for private collection unless the debt is paid.

2. Anagency shall not enter into a contract with a private debt collector or anyother person for the assignment of the collection of a debt if the debt hasbeen contested by the debtor.

3. Acontract for the assignment of the collection of a debt may provide for:

(a) Paymentby the agency to the private debt collector or other person of the costs ofcollection and fees for collecting the debt; or

(b) Collectionby the private debt collector or other person from the debtor of the costs ofcollection and fees for collecting the debt.

4. Any contract entered into pursuant tothis section is subject to approval by the Director of the Department ofAdministration and the State Controller.

(Added to NRS by 1999, 3445; A 2001, 1877)

NRS 353C.210 Noticeof debt and demand to transmit to persons possessing or controlling credits orother personal property of, or owing debts to, debtor; limitations on andliability for transfer or disposition of property; hearing.

1. Notwithstandingany specific statute to the contrary, an agency to which a debt is owed may, inaddition to any other remedy provided for in this chapter, give notice of theamount of the debt and a demand to transmit to any person, including, withoutlimitation, any officer, agency or political subdivision of this state, who hasin his possession or under his control any credits or other personal propertybelonging to the debtor, or who owes any debts to the debtor that remainunpaid. The notice and demand to transmit must be delivered personally or bycertified or registered mail:

(a) Not laterthan 4 years after the debt became due; or

(b) Not laterthan 6 years after the last recording of an abstract of judgment pursuant to NRS 353C.170 or a certificate ofliability pursuant to NRS 353C.180.

2. If suchnotice is given to an officer or agency of this state, the notice must bedelivered before the agency which sent the notice may file a claim with theState Controller pursuant to NRS 353C.190on behalf of the debtor.

3. An agencythat receives a notice and demand to transmit pursuant to this section maysatisfy any debt owed to it by the debtor before it honors the notice anddemand to transmit. If the agency is holding a bond or other property of thedebtor as security for debts owed or that may become due and owing by thedebtor, the agency is not required to transmit the amount of the bond or otherproperty unless the agency determines that holding the bond or other propertyof the debtor as security is no longer required.

4. Except asotherwise provided by specific statute, a person who receives a demand totransmit pursuant to this section shall not thereafter transfer or otherwisedispose of the credits or other personal property of, or debts owed to, theperson who is the subject of the demand to transmit without the consent of theagency which sent the demand to transmit.

5. Except asotherwise provided by specific statute, a person who receives from an agency ademand to transmit pursuant to this section shall, within 10 days thereafter,inform the agency of, and transmit to the agency within the time and in the mannerrequested by the agency, all credits or other personal property in hispossession or control that belong to, and all debts that he owes to, the personwho is the subject of the demand to transmit. Except as otherwise provided insubsection 6, no further notice is required to be served on such persons.

6. Except asotherwise provided by specific statute, if the property of the debtor consistsof a series of payments owed to him, the person who owes or controls the paymentsshall transmit the payments to the agency which sent the demand to transmituntil otherwise notified by the agency. If the debt of the debtor is not paidwithin 1 year after the date on which the agency issued the original demand totransmit, the agency shall:

(a) Issueanother demand to transmit to the person responsible for making the paymentsthat informs him to continue transmitting payments to the agency; or

(b) Notify theperson that his duty to transmit the payments to the agency has ceased.

7. If thenotice and demand to transmit is intended to prevent the transfer or otherdisposition of a deposit in a bank or other depository institution, or of anyother credit or personal property in the possession or under the control of thebank or depository institution, the notice must be delivered or mailed to anybranch or office of the bank or depository institution at which the deposit iscarried or the credit or personal property is held.

8. If anyperson to whom an agency delivers a notice and demand to transmit transfers orotherwise disposes of any property or debts required by this chapter to betransmitted to the agency, the person is, to the extent of the value of theproperty or the amount of the debts so transferred or disposed of, liable tothe agency for any portion of the debt that the agency is unable to collectfrom the debtor solely by reason of the transfer or other disposition of theproperty or debt.

9. A debtor who owes a debt to an agency whichdelivers a notice and demand to transmit concerning the debtor pursuant to thissection is entitled to an administrative hearing before that agency tochallenge the collection of the debt pursuant to the demand to transmit. Eachagency may adopt such regulations as are necessary to provide an administrativehearing for the purposes of this subsection.

(Added to NRS by 1999, 3446; A 2001, 1877)

NRS 353C.220 Baddebts: Designation; removal from books of account of State; effect of removal;master file.

1. If anagency determines that it is impossible or impractical to collect a debt, theagency may request the State Board of Examiners to designate the debt as a baddebt. The State Board of Examiners, by an affirmative vote of the majority ofthe members of the Board, may designate the debt as a bad debt if the Board issatisfied that the collection of the debt is impossible or impractical. TheState Board of Examiners may delegate to its Clerk the authority to designatean overpayment of salary to a current or former state employee of not more than$50 as a bad debt. An agency that is aggrieved by a denial of a request to designatesuch an overpayment as a bad debt by the Clerk may appeal that denial to theState Board of Examiners.

2. Upon thedesignation of a debt as a bad debt pursuant to this section, the State Boardof Examiners or its Clerk shall immediately notify the State Controllerthereof. Upon receiving the notification, the State Controller shall direct theremoval of the debt from the books of account of the State of Nevada. A baddebt that is removed pursuant to this section remains a legal and bindingobligation owed by the debtor to the State of Nevada.

3. If resources are available, the State Controllershall keep a master file of all debts that are designated as bad debts pursuantto this section. If such a file is established and maintained, for each suchdebt, the State Controller shall record the name of the debtor, the amount ofthe debt, the date on which the debt was incurred and the date on which it wasremoved from the records and books of account of the agency or the State ofNevada, and any other information concerning the debt that the State Controllerdetermines is necessary.

(Added to NRS by 1999, 3447; A 2001, 1878; 2003, 1452)

NRS 353C.230 Remediesof state are supplemental; additional remedies unimpaired. The remedies of this state provided for in this chapterare intended to supplement existing remedies applicable to the collection ofdebts. Nothing contained in this chapter shall be construed to limit or repealadditional remedies agreed to by any person or an agency in any writtenagreement or contract with this state.

(Added to NRS by 1999, 3447)