Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 216 (2022GS)

Sponsor

Rep. Ward, R.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires the Office of State Debt Collection (office) to:
• create and maintain a website that provides a debtor certain information regarding the debtor's debts; and
• create policies regarding settlement practices;
• eliminates a report from the office to the courts;
• requires the office to apply a payment to a debt as directed by a debtor if the payment would eliminate the debt's balance; and
• makes technical changes.

Every vote on this bill

Bill text

OFFICE OF STATE DEBT COLLECTION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Raymond P. Ward
Senate Sponsor: 
Todd D. Weiler
LONG TITLE
General Description:
This bill amends provisions relating to the collection procedures of the Office of State
Debt Collection.
Highlighted Provisions:
This bill:
▸ requires the Office of State Debt Collection (office) to:
• create and maintain a website that provides a debtor certain information
regarding the debtor's debts; and
• create policies regarding settlement practices;
▸ eliminates a report from the office to the courts;
▸ requires the office to apply a payment to a debt as directed by a debtor if the
payment would eliminate the debt's balance; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-3-502
, as last amended by Laws of Utah 2021, Chapter 260
77-18-114
, as enacted by Laws of Utah 2021, Chapter 260
77-38b-304
, as renumbered and amended by Laws of Utah 2021, Chapter 260
ENACTS:
63A-3-502.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-3-502
 is amended to read:
63A-3-502.
Office of State Debt Collection created -- Duties.
(1) The state and each state agency shall comply with:
(a) the requirements of this chapter; and
(b) any rules established by the Office of State Debt Collection.
(2) There is created the Office of State Debt Collection in the Division of Finance.
(3) The office shall:
(a) have overall responsibility for collecting and managing state receivables;
(b) assist the Division of Finance to develop consistent policies governing the
collection and management of state receivables;
(c) oversee and monitor state receivables to ensure that state agencies are:
(i) implementing all appropriate collection methods;
(ii) following established receivables guidelines; and
(iii) accounting for and reporting receivables in the appropriate manner;
(d) assist the Division of Finance to develop policies, procedures, and guidelines for
accounting, reporting, and collecting money owed to the state;
(e) provide information, training, and technical assistance to each state agency on
various collection-related topics;
(f) write an inclusive receivables management and collection manual for use by each
state agency;
(g) prepare quarterly and annual reports of the state's receivables;
(h) create or coordinate a state accounts receivable database;
(i) develop reasonable criteria to gauge state agencies' efforts in maintaining an
effective accounts receivable program;
(j) identify any state agency that is not making satisfactory progress toward
implementing collection techniques and improving accounts receivable collections;
(k) coordinate information, systems, and procedures between each state agency to
maximize the collection of past-due accounts receivable;
(l) establish an automated cash receipt process between each state agency;
(m) assist the Division of Finance to establish procedures for writing off accounts
receivable for accounting and collection purposes;
(n) establish standard time limits after which an agency will delegate responsibility to
collect state receivables to the office or the office's designee;
(o) be a real party in interest for:
(i) an account receivable referred to the office by any state agency; and
(ii) a civil judgment of restitution entered on a civil judgment docket by a court;
(p) allocate money collected for a judgment entered on the civil judgment docket under
Section 
77-18-114
 in accordance with Sections 
51-9-402
, 
63A-3-506
, and 
78A-5-110
; [
and
]
(q) if a criminal accounts receivable is transferred to the office under Subsection
77-32b-103
(2)(a)(ii), receive, process, and distribute payments for the criminal accounts
receivable[
.
]
;
(r) provide a debtor online access to the debtor's accounts receivable or criminal
accounts receivable in accordance with Section 
63A-3-502.5
;
(s) establish a written policy for each of the following:
(i) the settling of an accounts receivable, including that a restitution amount may be
settled if the victim approves of the settlement;
(ii) allowing a debtor to pay off a single debt as part of an accounts receivable even if
the debtor has a balance on another debt as part of an accounts receivable or criminal accounts
receivable;
(iii) setting a payment deadline for settlement agreements and for obtaining an
extension of a settlement agreement deadline; and
(iv) reducing administrative costs when a settlement has been reached;
(t) consult with a state agency on whether:
(i) the office may agree to a settlement for an amount that is less than the debtor's
principal amount; and
(ii) the state agency may retain authority to negotiate a settlement with a debtor; and
(u) provide the terms and conditions of any payment arrangement that the debtor has
made with a state agency or the office when:
(i) the payment arrangement is created; or
(ii) the debtor requests a copy of the terms and conditions.
(4) The office may:
(a) recommend to the Legislature new laws to enhance collection of past-due accounts
by state agencies;
(b) collect accounts receivables for higher education entities, if the higher education
entity agrees;
(c) prepare a request for proposal for consulting services to:
(i) analyze the state's receivable management and collection efforts; and
(ii) identify improvements needed to further enhance the state's effectiveness in
collecting [
its
] 
the state's
 receivables;
(d) contract with private or state agencies to collect past-due accounts;
(e) perform other appropriate and cost-effective coordinating work directly related to
collection of state receivables;
(f) obtain access to records and databases of any state agency that are necessary to the
duties of the office by following the procedures and requirements of Section 
63G-2-206
,
including the financial declaration form described in Section 
77-38b-204
;
(g) collect interest and fees related to the collection of receivables under this chapter,
and establish, by following the procedures and requirements of Section 
63J-1-504
:
(i) a fee to cover the administrative costs of collection on accounts administered by the
office;
(ii) a late penalty fee that may not be more than 10% of the account receivable on
accounts administered by the office;
(iii) an interest charge that is:
(A) the postjudgment interest rate established by Section 
15-1-4
 in judgments
established by the courts; or
(B) not more than 2% above the prime rate as of July 1 of each fiscal year for accounts
receivable for which no court judgment has been entered; and
(iv) fees to collect accounts receivable for higher education;
(h) collect reasonable attorney fees and reasonable costs of collection that are related to
the collection of receivables under this chapter;
(i) make rules that allow accounts receivable to be collected over a reasonable period
of time and under certain conditions with credit cards;
(j) for a case that is referred to the office or in which the office is a judgment creditor,
file a motion or other document related to the office or the accounts receivable in that case,
including a satisfaction of judgment, in accordance with the Utah Rules of Civil Procedure;
(k) ensure that judgments for which the office is the judgment creditor are renewed, as
necessary;
(l) notwithstanding Section 
63G-2-206
, share records obtained under Subsection (4)(f)
with private sector vendors under contract with the state to assist state agencies in collecting
debts owed to the state agencies without changing the classification of any private, controlled,
or protected record into a public record;
(m) enter into written agreements with other governmental agencies to obtain and share
information for the purpose of collecting state accounts receivable; and
(n) collect accounts receivable for a political subdivision of the state if the political
subdivision enters into an agreement or contract with the office under Title 11, Chapter 13,
Interlocal Cooperation Act, for the office to collect the political subdivision's accounts
receivable.
(5) The office shall ensure that:
(a) a record obtained by the office or a private sector vendor under Subsection (4)(l):
(i) is used only for the limited purpose of collecting accounts receivable; and
(ii) is subject to federal, state, and local agency records restrictions; and
(b) any [
person
] 
individual
 employed by, or formerly employed by, the office or a
private sector vendor as referred to in Subsection (4)(l) is subject to:
(i) the same duty of confidentiality with respect to the record imposed by law on
officers and employees of the state agency from which the record was obtained; and
(ii) any civil or criminal penalties imposed by law for violations of lawful access to a
private, controlled, or protected record.
(6) (a) The office shall collect a civil accounts receivable or a civil judgment of
restitution ordered by a court as a result of prosecution for a criminal offense that have been
transferred to the office under Subsection 
77-18-114
(1) or (2).
(b) The office may not assess:
(i) the interest charge established by the office under Subsection (4) on an account
receivable subject to the postjudgment interest rate established by Section 
15-1-4
; and
(ii) an interest charge on a criminal accounts receivable that is transferred to the office
under Subsection 
77-32b-103
(2)(a)(ii).
(7) The office shall require a state agency to:
(a) transfer collection responsibilities to the office or the office's designee according to
time limits established by the office;
(b) make annual progress towards implementing collection techniques and improved
accounts receivable collections;
(c) use the state's accounts receivable system or develop systems that are adequate to
properly account for and report the state's receivables;
(d) develop and implement internal policies and procedures that comply with the
collections policies and guidelines established by the office;
(e) provide internal accounts receivable training to staff involved in the management
and collection of receivables as a supplement to statewide training;
(f) bill for and make initial collection efforts of [
its
] 
the state agency's
 receivables up to
the time the accounts must be transferred; and
(g) submit quarterly receivable reports to the office that identify the age, collection
status, and funding source of each receivable.
(8) All interest, fees, and other amounts authorized to be collected by the office under
Subsection (4)(g):
(a) are penalties that may be charged by the office;
(b) do not require an order from a court for the office to assess or collect;
(c) are not compensation for actual pecuniary loss;
(d) for a civil accounts receivable:
(i) begin to accrue on the day on which the civil accounts receivable is entered on the
civil judgment docket under Subsection 
77-18-114
(1) or (2); and
(ii) may be collected as part of the civil accounts receivable;
(e) for a civil judgment of restitution:
(i) begin to accrue on the day on which the civil judgment of restitution is entered on
the civil judgment docket under Subsection 
77-18-114
(1); and
(ii) may be collected as part of the civil judgment of restitution;
(f) for all other accounts receivable:
(i) begin to accrue on the day on which the accounts receivable is transferred to the
office, even if there is no court order on the day on which the accounts receivable is
transferred; and
(ii) may be collected as part of the accounts receivable; and
(g) may be waived by:
(i) the office; or
(ii) if the interest, fee, or other amount is charged in error, the court.
Section 2. Section 
63A-3-502.5
 is enacted to read:
 63A-3-502.5.
Debtor's online access to debt amount.
(1) As used in this section, "debt" means:
(a) an accounts receivable; or
(b) a criminal accounts receivable.
(2) On or before December 31, 2022, the office shall provide a debtor who has a debt
transferred to the office online access to the debtor's account that identifies:
(a) the total balance the debtor owes for a debt;
(b) (i) each person to whom the debtor owes a debt; or
(ii) if the person's name is redacted by a court or a state agency with authority to redact,
another identifier for the debt in place of the person's name;
(c) for each person the debtor owes:
(i) the debtor's original balance for a debt; and
(ii) the debtor's current balance for a debt;
(d) the current interest rate for a debt; and
(e) the history of:
(i) any additional charge added to a debt including:
(A) the reason for the charge;
(B) the total amount of the charge; and
(C) the date the charge was added; and
(ii) any payment made by the debtor including:
(A) the debt to which a payment was applied; and
(B) whether the payment was applied to an administrative cost, accrued interest, the
principal, or other fee.
Section 3. Section 
77-18-114
 is amended to read:
77-18-114.
Unpaid balance at termination of sentence -- Past due account --
Notice -- Account or judgment paid in full -- Effect of civil accounts receivable and civil
judgment of restitution.
(1) When a defendant's sentence is terminated by law or by the decision of the court or
the board:
(a) the board shall provide an accounting of the unpaid balance of the defendant's
criminal accounts receivable to the court if the defendant was on parole or incarcerated at the
time of termination; and
(b) within 90 days after the day on which a defendant's sentence is terminated, the
court shall:
(i) enter an order for a civil accounts receivable and a civil judgment of restitution for a
defendant on the civil judgment docket;
(ii) transfer the responsibility of collecting the civil accounts receivable and the civil
judgment of restitution to the Office of State Debt Collection; and
(iii) identify in the order under this Subsection (1):
(A) the Office of State Debt Collection as a judgment creditor for the civil accounts
receivable and the civil judgment of restitution; and
(B) the victim as a judgment creditor for the civil judgment of restitution.
(2) If a criminal accounts receivable for the defendant is more than 90 days past due
and the court has ordered that a defendant does not owe restitution to any victim, or the time
period in Subsection 
77-38b-205
(5) has passed and the court has not ordered restitution, the
court may:
(a) enter an order for a civil accounts receivable for the defendant on the civil judgment
docket;
(b) identify, in the order under Subsection (2)(a), the Office of State Debt Collection as
a judgment creditor for the civil accounts receivable; and
(c) transfer the responsibility of collecting the civil accounts receivable to the Office of
State Debt Collection.
(3) An order for a criminal accounts receivable is no longer in effect after the court
enters an order for a civil accounts receivable or a civil judgment of restitution under
Subsection (1) or (2).
(4) The court shall provide notice to the Office of State Debt Collection and the
prosecuting attorney of any hearing that affects an order for the civil accounts receivable or the
civil judgment of restitution.
(5) The Office of State Debt Collection shall[
: (a)
] notify the court when a civil
judgment of restitution or a civil accounts receivable is satisfied[
; and
]
.
[
(b) provide the court with an accounting of any distribution made by the Office of
State Debt Collection for the civil accounts receivable and the civil judgment of restitution.
]
(6) When a fine, forfeiture, surcharge, cost, or fee is recorded in an order for a civil
accounts receivable on the civil judgment docket, or when restitution is recorded as an order
for a civil judgment of restitution on the civil judgment docket, the order:
(a) constitutes a lien on the defendant's real property until the judgment is satisfied; and
(b) may be collected by any means authorized by law for the collection of a civil
judgment.
(7) A criminal accounts receivable, a civil accounts receivable, and a civil judgment of
restitution are not subject to the civil statutes of limitation and expire only upon payment in
full.
(8) (a) If a defendant asserts that a payment was made to a victim or third party for a
civil judgment of restitution, or enters into any other transaction that does not involve the
Office of State Debt Collection, and the defendant asserts that the payment results in a credit
towards the civil judgment of restitution for the defendant:
(i) the defendant shall provide notice to the Office of State Debt Collection and the
prosecuting attorney within 30 days after the day on which the payment or other transaction is
made; and
(ii) the payment may only be credited towards the principal of the civil judgment of
restitution and does not affect any other amount owed to the Office of State Debt Collection
under Section 
63A-3-502
.
(b) Nothing in this Subsection (8) shall be construed to prevent a victim or a third party
from providing notice of a payment towards a civil judgment of restitution to the Office of
State Debt Collection.
Section 4. Section 
77-38b-304
 is amended to read:
77-38b-304.
Priority.
(1) The court, or the office, shall disburse a payment for restitution within 60 days after
the day on which the payment is received from the defendant if:
(a) the victim has complied with Subsection 
77-38b-203
(2);
(b) if the defendant has tendered a negotiable instrument, funds from the financial
institution are actually received; and
(c) the payment to the victim is at least $5, unless the payment is the final payment.
(2) The court, or the office, shall disburse money collected from a defendant for a
criminal accounts receivable in the following order of priority:
(a) first, and except as provided in Subsection (4)(b), to restitution owed by the
defendant in accordance with Subsection (4);
(b) second, to the cost of obtaining a DNA specimen from the defendant as described
in Subsection (4)(b);
(c) third, to any criminal fine or surcharge owed by the defendant;
(d) fourth, to the cost owed by the defendant for a reward described in Section
77-32b-104
;
(e) fifth, to the cost owed by the defendant for medical care, treatment, hospitalization,
and related transportation paid by a county correctional facility under Section 
17-50-319
; and
(f) sixth, to any other cost owed by the defendant.
(3) [
The
] 
Subject to Subsection (5), the
 office shall disburse money collected from a
defendant for a civil accounts receivable and civil judgment of restitution in the following
order of priority:
(a) first, to any past due amount owed to the department for the monthly supervision
fee under Subsection 
64-13-21
(6)(a);
(b) second, and except as provided in Subsection (4)(b), to restitution owed by the
defendant in accordance with Subsection (4);
(c) third, to the cost of obtaining a DNA specimen from the defendant in accordance
with Subsection (4)(b);
(d) fourth, to any criminal fine or surcharge owed by the defendant;
(e) fifth, to the cost owed by the defendant for a reward described in Section
77-32b-104
;
(f) sixth, to the cost owed by the defendant for medical care, treatment, hospitalization
and related transportation paid by a county correctional facility under Section 
17-50-319
; and
(g) seventh, to any other cost owed by the defendant.
(4) (a) [
If
] 
Subject to Subsection (5), if
 a defendant owes restitution to more than one
person or government agency at the same time, the court, or the office, shall disburse a
payment for restitution in the following order of priority:
(i) first, to the victim of the offense;
(ii) second, to the Utah Office for Victims of Crime;
(iii) third, any other government agency that has provided reimbursement to the victim
as a result of the defendant's criminal conduct; and
(iv) fourth, any insurance company that has provided reimbursement to the victim as a
result of the defendant's criminal conduct.
(b) [
If
] 
Subject to Subsection (5), if
 a defendant is required under Section 
53-10-404
 to
reimburse the department for the cost of obtaining the defendant's DNA specimen, the
reimbursement for the cost of obtaining the defendant's DNA specimen is the next priority after
restitution to the victim of the offense under Subsection (4)(a)(i).
(c) [
If
] 
Subject to Subsection (5), if
 the defendant is required to pay restitution to more
than one victim, restitution shall be disbursed to each victim according to the percentage of
each victim's share of the total order for restitution.
(5) The office shall disburse money collected from a defendant to a debt that is a part
of a civil accounts receivable or civil judgment of restitution if:
(a) a defendant has provided a written request to the office to apply the payment to the
debt; and
(b) (i) the payment will eliminate the entire balance of the debt, including any interest;
or
(ii) after reaching a settlement, the payment amount will eliminate the entire agreed
upon balance of the debt, including any interest.
[
(5)
] 
(6)
 For a criminal accounts receivable, the department shall collect the current and
past due amount owed by a defendant for the monthly supervision fee under Subsection
64-13-21
(6)(a) until the court enters a civil accounts receivable on the civil judgment docket
under Section 
77-18-114
.