Bill Text: OR HB3655 | 2011 | Regular Session | Introduced
Bill Title: Relating to debt collection.
Spectrum: Committee Bill
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3655 Detail]
Download: Oregon-2011-HB3655-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 4120
House Bill 3655
Sponsored by COMMITTEE ON REVENUE
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.
Deletes requirements that state agencies offer certain
liquidated and delinquent accounts for assignment to private
collection agency.
A BILL FOR AN ACT
Relating to debt collection; creating new provisions; amending
ORS 1.197, 293.229 and 293.231; and repealing ORS 293.233.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 293.229 is amended to read:
293.229. (1) Not later than October 1 of each fiscal year, each
state agency shall submit a report to the Legislative Fiscal
Office that describes the status of that agency's liquidated and
delinquent accounts and efforts made by that agency to collect
liquidated and delinquent accounts during the previous fiscal
year. The report required under this subsection shall be in a
form prescribed by the Legislative Fiscal Office and shall
include but not be limited to:
(a) Beginning balance and total number of all liquidated and
delinquent accounts;
(b) New liquidated and delinquent accounts added during the
last preceding fiscal year;
(c) Total collections of liquidated and delinquent accounts;
(d) Total amount and total number of liquidated and delinquent
accounts that have been written off;
(e) Total number and ending balance of all liquidated and
delinquent accounts; { + and + }
(f) Total amount of liquidated and delinquent accounts turned
over to private collection agencies and total amount collected by
those agencies under ORS 293.231 { - ; and - }
{ - (g) Total number and total amount of all liquidated and
delinquent accounts exempted under ORS 293.233 - } .
(2) The Legislative Fiscal Office shall produce an annual
report not later than December 31 of each fiscal year on the
status of liquidated and delinquent accounts of state agencies.
The report shall be based on the reports submitted by state
agencies as required in this section.
SECTION 2. ORS 293.231 is amended to read:
293.231. (1) Except as provided in subsections (4) to (9) of
this section, a state agency, unless otherwise prohibited by law,
shall offer for assignment every liquidated and delinquent
account to a private collection agency or to the Department of
Revenue as provided in ORS 293.250 not later than:
(a) Ninety days from the date the account was liquidated if no
payment has been received on the account within the 90-day
period; or
(b) Ninety days from the date of receipt of the most recent
payment on the account.
(2) Nothing in subsection (1) of this section prohibits a state
agency from offering for assignment a liquidated and delinquent
account to a private collection agency at any time within the
90-day period.
(3) If, after a reasonable time, the private collection agency
is unable to collect the account, the private collection agency
shall notify the state agency that assigned the account that it
has been unable to collect the account and shall relinquish the
account to the state agency. A private collection agency that
collects an account under this section shall be held to the same
standard of confidentiality, service and courtesy imposed on the
state agency that assigned the account.
(4) If a state agency assigns a liquidated and delinquent
account to the Department of Revenue as provided in ORS 293.250,
the department shall have six months from the date of assignment
to collect a payment. If the department does not collect a
payment within that six-month period or if six months have
elapsed since the date of receipt of the most recent payment on
the account, the department shall notify the state agency. The
state agency { - shall then immediately - } { + may + } offer
for assignment the debt to a private collection agency.
(5) The provisions of subsection (1) of this section do not
apply to a liquidated and delinquent account that is prohibited
by state or federal law or regulation from assignment or
collection.
(6) The Oregon Department of Administrative Services may adopt
rules exempting specified kinds of liquidated and delinquent
accounts from the time periods established in subsections (1),
(2) and (4) of this section.
(7) The Oregon Department of Administrative Services shall
adopt rules exempting liquidated and delinquent accounts that
originate in the Department of Revenue or the Employment
Department from the time periods established in subsections (1),
(2) and (4) of this section.
(8) A liquidated and delinquent account that is subject to
assignment under this section { - shall - } { + may + } be
assigned to a private collection agency if more than one year has
elapsed without a payment on the account.
(9) { - Notwithstanding subsection (1) of this section, - }
A state agency may, at its discretion, choose not to offer for
assignment to a private collection agency a liquidated and
delinquent account that:
(a) Is secured by a consensual security interest in real or
personal property;
(b) Is a court-ordered judgment that includes restitution or a
payment to the Department of Justice Crime Victims' Assistance
Section;
(c) Is in litigation, including bankruptcy, arbitration and
mediation;
(d) Is a student loan owed by a student who is attending
school;
(e) Is owed to a state agency by a local or state government or
by the federal government;
(f) 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;
(g) Is owed by a debtor who is imprisoned;
(h) Is less than $100, including penalties; or
(i) Would result in loss of federal funding if assigned.
(10) Nothing in this section prohibits a state agency from
collecting a tax offset after a liquidated and delinquent account
is assigned to a private collection agency.
(11) For the purposes of this section, a state agency shall be
deemed to have offered for assignment an account if:
(a) The terms of the offer are of a type generally acceptable
within the collections industry for the type of account offered
for assignment; and
(b) The offer is made to a private collection agency that
engages in collecting on accounts of the type sought to be
assigned or is made generally available to private collection
agencies through a bid or request for proposal process.
(12) A state agency that retains a private collection agency
under this section may add a fee to the amount of the liquidated
and delinquent account as provided in ORS 697.105. A fee may not
be added under this subsection unless the state agency has
provided notice to the debtor:
(a) Of the existence of the debt;
(b) That the debt may be assigned to a private collection
agency for collection; and
(c) Of the amount of the fee that may be added to the debt
under this subsection.
(13) Except as provided by federal law, the state agency may
not add a fee under subsection (12) of this section that exceeds
the collection fee of the private collection agency.
SECTION 3. ORS 1.197 is amended to read:
1.197. (1) Except as otherwise provided by law, all state
courts and all commissions, departments and divisions in the
judicial branch of state government shall offer to assign the
liquidated and delinquent accounts of the state court,
commission, department or division to a private collection
agency, or to the Department of Revenue under the provisions of
ORS 293.250, not later than:
(a) One year from the date the account was liquidated if no
payment has been received on the account within that year; or
(b) One year from the date of receipt of the most recent
payment on the account.
(2) Nothing in subsection (1) of this section prohibits a state
court or a commission, department or division in the judicial
branch of state government from assigning a liquidated and
delinquent account to a private collection agency at any time
within the one-year period, or from assigning a liquidated and
delinquent account to the Department of Revenue during the
one-year period, if that assignment is otherwise allowed by law.
(3) Nothing in this section prevents a state court or a
commission, department or division in the judicial branch of
state government from assigning an account to the Department of
Revenue for the purpose of seeking an offset against tax refunds
or other amounts due the debtor at the time the account is
assigned to a private collection agency. A state court and any
commission, department or division in the judicial branch of
state government that assigns the same account to both the
Department of Revenue and a private collection agency shall
ensure that both the Department of Revenue and the private
collection agency are kept informed of the status of all
collections made on the account.
(4) If a private collection agency is unable to collect on an
account assigned under this section, the private collection
agency shall notify the state court, commission, department or
division that assigned the account that the private collection
agency is unable to collect on the account and that the private
collection agency will relinquish the account. The private
collection agency shall relinquish the account within a
reasonable time or within such time as may be set by agreement. A
private collection agency that is assigned an account under this
section shall be held to the same standard of confidentiality,
service and courtesy imposed on a state court in collecting on
liquidated and delinquent accounts.
(5) If a liquidated and delinquent account is assigned to the
Department of Revenue as provided in ORS 293.250, the Department
of Revenue shall have one year from the date of liquidation, or
from the date of receipt of the most recent payment on the
account, to collect a payment. If the Department of Revenue does
not collect a payment within the one-year period or if one year
has elapsed since the date of receipt of the most recent payment
on the account, the Department of Revenue shall notify the state
court, commission, department or division that assigned the
account. The state court, commission, department or division
{ - shall then immediately - } { + may + } offer assignment
of the account to a private collection agency.
(6) For the purposes of this section, a state court or a
commission, department or division in the judicial branch of
state government shall be considered to have offered an account
for assignment to a private collection agency if:
(a) The terms of the offer are of a type generally accepted by
the collections industry for the type of account to be assigned;
and
(b) The offer is made to a private collection agency that
engages in the business of collecting the type of account to be
assigned or made generally to private collection agencies through
a bid or request for proposal process.
(7) The offer of assignment of accounts required under this
section may be made by the State Court Administrator on behalf of
some or all of the state courts and on behalf of some or all of
the commissions, departments and divisions in the judicial branch
of state government.
SECTION 4. { + ORS 293.233 is repealed. + }
SECTION 5. { + The amendments to ORS 1.197, 293.229 and
293.231 by sections 1 to 3 of this 2011 Act and the repeal of ORS
293.233 by section 4 of this 2011 Act apply to liquidated and
delinquent accounts required to be offered for assignment on or
after the effective date of this 2011 Act. + }
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