Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since January 1, 2020, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R21. Administrative Services, Debt Collection.
Rule R21-1. Transfer of Collection Responsibility of State Agencies.
As in effect on January 1, 2020
Table of Contents
- R21-1-1. Purpose.
- R21-1-2. Authority.
- R21-1-3. Definitions.
- R21-1-4. Agency Billing and Collection Responsibility.
- R21-1-5. Transfer of Collection Responsibility.
- R21-1-6. Format for Transfer of Accounts Receivable Data.
- R21-1-7. Costs of Collection.
- R21-1-8. Write Off of Accounts Receivable.
- R21-1-9. Original Signature Required on Certain Office of State Debt Collection (OSDC) Documents.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
The purpose of 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 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), Section 15-1-4,Utah Code, and by the Legislature in applicable laws.
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), Section 15-1-4, 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 Office to establish a fee to cover the administrative costs of collection, a late penalty fee and an interest charge 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 plus 2% and sets forth the procedures to be followed. The annual Appropriation Act authorizes the fees charged by the Office to collect accounts and allows the costs of collection to be collected from the debtor.
In addition to terms defined in Section 63A-3-501, the following terms are defined below as follows:
(1) "Delinquent" means any account receivable for which the state has not received payment in full by the payment demand date.
(2) "Designee" means a Private Sector Collector or State Agency that the Office of State Debt Collection has contracted with to provide accounts receivable collection services.
(3) "Payment demand date" is the date by which the agency requires payment for the account receivable that an entity has incurred.
(4) "Skipped" means that the entity formerly transacting business with the state is not known at the address or telephone number previously used nor is any new address or telephone number known of the entity.
(5) "Event" is the day the goods are purchased, services completed, fines, fees, and assessments are due, etc.
(6) "Trust" means a receivable that is owed to a victim of a crime.
Pursuant to Subsection 63A-3-502(3)(b), (d), and (f) as provided by Subsection 63G-3-201, state agencies shall document and track agency receivables on the State's central accounting system (FINET) unless the state agency has received an exemption from the Division of Finance and Office of State Debt Collection. If a state agency receives such an exemption, the state agency shall track their receivables on the agency system and provide the Office with quarterly receivable reports pursuant to 63A-3-502(7)(g). The receivable reports are due to Office no later than 45 days after the end of the quarter.
State agency customers shall be billed within 10 days from the event creating the receivable or the next billing cycle, if reoccurring. The payment demand date shall be no later than 30 days from the event date unless the state agency can demonstrate the 30 day demand date is not appropriate for the agency's business processes. State agencies shall contact customers for payment by phone or written notice when payment is not received within 10 days after the payment demand date.
The Office has published guidelines for billing receivables and collecting delinquent accounts. These guidelines include this rule and the statewide accounting FIACCT 06 policies available on the Division of Finance website, finance.utah.gov.
Each state agency with delinquent accounts shall comply with the provisions of Section 63A-3-502, et seq. unless prohibited by current state or federal statute or regulation. A state agency or user of the Office of State Debt Collection services shall transfer collection responsibility to the Office, or its designee, when the account receivable is not paid within 90 days of the initial billing or is delinquent 61 days. A state agency can negotiate a different receivable transfer date with the Office by demonstrating how the state benefits from the negotiated transfer date.
(a) State agencies shall transfer delinquent accounts to the Office or its designee electronically through FINET. State agencies exempted from using FINET for individual receivables shall work with the Office to generate an electronic placement file for placing accounts.
(b) Debts owed by business entities must be transferred by State agencies with:
(1) a list of positively identified liable parties.
(2) Federal tax identification numbers for each liable party.
Pursuant to Subsections 63A-3-502(4) (g), Section 15-1-4, Utah Code, and by the legislature in applicable laws, the Office shall charge penalty, interest, and administrative costs of collection and shall collect these costs in addition to the receivable balance from the debtor. The fee calculation and payment priority shall be applied according to the following methodology.
(a) Pursuant to 63A-3-502(4)(g)(i), the costs of collection shall be charged on all accounts referred for collection and the cost shall be calculated based on the dollars collected times the rate authorized by the legislature. The cost of collection shall be paid first from each payment.
(b) The Penalty shall be calculated as a percent of the receivable balance referred for collection. Two percent of each payment shall be applied to the outstanding penalty until the penalty is paid in full. The penalty payment shall be calculated up to the authorized penalty percent set annually by the legislature, times the received payment amount. The calculated penalty amount shall be paid after the costs of collection are determined and paid.
(c) Two types of interest shall be charged on accounts referred to the Office. Postjudgment interest as established by Section 15-1-4, Utah Code, applies to receivables with judgments established by the courts with a sentencing date subsequent to May 5, 1999. Postjudgment interest accrues on the unpaid judgment balance of the receivable. Postjudgment interest that accrues on a trust or the trust portion of a receivable, shall be paid subsequent to the state's outstanding receivable. All other state receivables referred to the Office are charged an interest charge pursuant to 63A-3-502 (4) (g)(iii)(B), Utah Code. This interest is referred to as OSDC interest. OSDC accrued interest shall be paid from each payment up to 5% of the payment after the payment of the costs of collection and 2% penalty except on trust receivables or receivables including a trust account.
(d) Each payment received on trust receivables shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd - 2% penalty, 3rd - the trust receivable balance up to the total amount of the receivable, and 4th - the accrued postjudgment interest.
(e) Each payment received on receivables that include trust(s) and state receivable balances shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd 2% - penalty, 3rd - the trust(s) receivable balance until paid in full, 4th - accrued post-judgment or OSDC interest on the state receivable balance, 5th - the state receivable balance, and 6th - the accrued trust post-judgment interest.
(f) Each payment received on receivables owed only to the state shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd 2% - penalty payment, 3rd - 5% accrued post-judgment or OSDC interest, and 4th - the receivable balance.
(g) Trust Payments sent to victims of crimes that are returned to the Office because of bad addresses, shall be retained by the Office, until the victim is located or statute requires transfer to another State agency. Regardless, payments shall continue to be applied to the trust balance(s) until liquidated, and there after applied to State debt.
State agencies shall follow the statewide Accounting Policies and Procedures outlined in FIACCT 06-01.14 and 06-02.04, available from the state Division of Finance at finance.utah.gov.
An Original Signature is Required by the Office of State Debt Collection (OSDC) on the following documents:
(1) Victim Settlement Agreement
(2) OSDC Debt Repayment Contract Agreement
(3) Wage Assignments to pay debts
(4) Authority for the automatic transfer of funds (EFT) to pay debts
(5) Authority for the automatic Credit/Debit Card charge to pay debts
accounts receivable, collection transfer
August 7, 2019
June 7, 2017
63A-3-502(3)(m); 63A-3-502(4)(g); 63A-3-502(6)(a); 63A-3-502(6)(b); 63A-3-502(7)(f); 15-1-4
For questions regarding the content or application of rules under Title R21, please contact the promulgating agency (Administrative Services, Debt Collection). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.