Administrative Services, Debt Collection

Rule R21-1

Transfer of Collection Responsibility of State Agencies

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 36420
Filed: 06/28/2012 12:02:14 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

This rule is established pursuant to Subsections 63A-3-502(3)(m), 63A-3-502(7)(f), 63A-3-502(4)(g), 63A-3-502(6)(b), and Section 15-1-4, and the office intent language and fees authorized by the Legislature in applicable laws. Subsection 63A-3-502(3)(m) authorizes the office to establish procedures for writing off accounts receivable for accounting and collection purposes. Subsection 63A-3-502(7)(f) authorizes the office to require state agencies to bill and make initial collection efforts of its receivables up to the time the accounts must be transferred. Subsection 63A-3-502(7)(a) authorizes the office to require state agencies to transfer collection responsibility to the office or its designee according to time limits specified by the office. Subsection 63A-3-502(4)(g) authorizes the office to establish: 1) a fee to cover administrative costs of collection; 2) a late penalty fee; 3) an interest charge; and 4) fees to collect accounts receivable for higher education by following the procedures and requirements of Section 63J-1-504. Subsection 63A-3-502(6)(b) prohibits the office from assessing the interest charge established by the office under Subsection 63A-3-502(4)(g) on an account receivable subject to the postjudgment interest rate established by Section 15-1-4. Section 15-1-4 requires civil and criminal judgments of the district court and justice court to bear interest at the federal postjudgment interest rate and sets forth the procedures to be followed. The annual appropriation act authorizes the fees charged by the office to collect accounts and provides legislative intent language allowing the costs of collection to be collected from the debtor.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule is to establish the procedures by which agencies shall bill and make initial collection efforts according to a coordinated schedule, the method to be used by agencies to transfer their delinquent accounts receivable to the Office of State Debt Collection or its designee for additional collection action, write-off of receivables, and the procedures and allocation of costs of collection established pursuant to Subsections 63A-3-502(4)(g), 63A-3-502(6)(b), and Section R15-1-4, and by the Legislature in applicable laws. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

• Richard Beckstead at the above address, by phone at 801-538-3100, by FAX at 801-538-3562, or by Internet E-mail at rbeckstead@utah.gov

Authorized by:

John Reidhead, Director

Effective:

06/28/2012