2022 -- H 7864 | |
======== | |
LC005228 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
____________ | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF REVENUE | |
| |
Introduced By: Representative Jacquelyn M. Baginski | |
Date Introduced: March 04, 2022 | |
Referred To: House Finance | |
(Dept. of Revenue) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 42-142-8 of the General Laws in Chapter 42-142 entitled |
2 | "Department of Revenue" is hereby amended to read as follows: |
3 | 42-142-8. Collection unit. |
4 | (a) The director of the department of revenue is authorized to establish within the |
5 | department of revenue a collection unit for the purpose of assisting state agencies in the collection |
6 | of debts owed to the state. The director of the department of revenue may enter into an agreement |
7 | with any state agency(ies) to collect any delinquent debt owed to the state. |
8 | (b) The director of the department of revenue shall initially implement a pilot program to |
9 | assist the agency(ies) with the collection of delinquent debts owed to the state. |
10 | (c) The agency(ies) participating in the pilot program shall refer to the collection unit |
11 | within the department of revenue, debts owed by delinquent debtors where the nature and amount |
12 | of the debt owed has been determined and reconciled by the agency and the debt is: (i) The subject |
13 | of a written settlement agreement and/or written waiver agreement and the delinquent debtor has |
14 | failed to timely make payments under the agreement and/or waiver and is therefore in violation of |
15 | the terms of the agreement and/or waiver; (ii) The subject of a final administrative order or decision |
16 | and the debtor has not timely appealed the order or decision; (iii) The subject of final order, |
17 | judgment, or decision of a court of competent jurisdiction and the debtor has not timely appealed |
18 | the order, judgment, or decision. The collection unit shall not accept a referral of any delinquent |
19 | debt unless it satisfies subsection (c)(i), (ii) or (iii) of this section. |
| |
1 | (d) Any agency(ies) entering into an agreement with the department of revenue to allow |
2 | the collection unit of the department to collect a delinquent debt owed to the state shall indemnify |
3 | the department of revenue against injuries, actions, liabilities, or proceedings arising from the |
4 | collection, or attempted collection, by the collection unit of the debt owed to the state. |
5 | (e) Before referring a delinquent debt to the collection unit, the agency(ies) must notify the |
6 | debtor of its intention to submit the debt to the collection unit for collection and of the debtor's right |
7 | to appeal that decision not less than thirty (30) days before the debt is submitted to the collection |
8 | unit. |
9 | (f) At such time as the agency(ies) refers a delinquent debt to the collection unit, the agency |
10 | shall: (i) Represent in writing to the collection unit that it has complied with all applicable state and |
11 | federal laws and regulations relating to the collection of the debt, including, but not limited to, the |
12 | requirement to provide the debtor with the notice of referral to the collection unit under subsection |
13 | (e) of this section; and (ii) Provide the collection unit personnel with all relevant supporting |
14 | documentation including, but not limited to, notices, invoices, ledgers, correspondence, |
15 | agreements, waivers, decisions, orders, and judgments necessary for the collection unit to attempt |
16 | to collect the delinquent debt. |
17 | (g) The referring agency(ies) shall assist the collection unit by providing any and all |
18 | information, expertise, and resources deemed necessary by the collection unit to collect the |
19 | delinquent debts referred to the collection unit. |
20 | (h) Upon receipt of a referral of a delinquent debt from an agency(ies), the amount of the |
21 | delinquent debt shall accrue interest at the annual rate of interest established by law for the referring |
22 | agency or at an annual rate of 13%, whichever percentage rate is greater. |
23 | (i) Upon receipt of a referral of a delinquent debt from the agency(ies), the collection unit |
24 | shall provide the delinquent debtor with a "Notice of Referral" advising the debtor that: |
25 | (1) The delinquent debt has been referred to the collection unit for collection; and |
26 | (2) The collection unit will initiate, in its names, any action that is available under state law |
27 | for the collection of the delinquent debt, including, but not limited to, referring the debt to a third |
28 | party to initiate said action. |
29 | (j) Upon receipt of a referral of a delinquent debt from an agency(ies), the director of the |
30 | department of revenue shall have the authority to institute, in its name, any action(s) that are |
31 | available under state law for collection of the delinquent debt and interest, penalties, and/or fees |
32 | thereon and to, with or without suit, settle the delinquent debt. |
33 | (k) In exercising its authority under this section, the collection unit shall comply with all |
34 | state and federal laws and regulations related to the collection of debts. |
| LC005228 - Page 2 of 4 |
1 | (l) Upon the receipt of payment from a delinquent debtor, whether a full or partial payment, |
2 | the collection unit shall disburse/deposit the proceeds of the payment in the following order: |
3 | (1) To the appropriate federal account to reimburse the federal government funds owed to |
4 | them by the state from funds recovered; and |
5 | (2) The balance of the amount collected to the referring agency. |
6 | (m) Notwithstanding the above, the establishment of a collection unit within the department |
7 | of revenue shall be contingent upon an annual appropriation by the general assembly of amounts |
8 | necessary and sufficient to cover the costs and expenses to establish, maintain, and operate the |
9 | collection unit including, but not limited to, computer hardware and software, maintenance of the |
10 | computer system to manage the system, and personnel to perform work within the collection unit. |
11 | (n) In addition to the implementation of any pilot program, the collection unit shall comply |
12 | with the provisions of this section in the collection of all delinquent debts under this section. |
13 | (o) The department of revenue is authorized to promulgate rules and regulations as it deems |
14 | appropriate with respect to the collection unit. |
15 | (p) By September 1, 2020, and each year thereafter, the department of revenue shall |
16 | specifically assess the performance, effectiveness, and revenue impact of the collections associated |
17 | with this section, including, but not limited to, the total amounts referred and collected by each |
18 | referring agency during the previous state fiscal year to the governor, the speaker of the house of |
19 | representatives, the president of the senate, the chairpersons of the house and senate finance |
20 | committees, and the house and senate fiscal advisors. The report shall include the net revenue |
21 | impact to the state of the collection unit. |
22 | (q) No operations of a collection unit pursuant to this chapter shall be authorized after June |
23 | 30, 2023. |
24 | SECTION 2. This act shall take effect upon passage. |
======== | |
LC005228 | |
======== | |
| LC005228 - Page 3 of 4 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF REVENUE | |
*** | |
1 | This act would remove the collection unit sunset provision of June 30, 2023. |
2 | This act would take effect upon passage. |
======== | |
LC005228 | |
======== | |
| LC005228 - Page 4 of 4 |