§ 42-142-8. Central collections unit.
(a) The director of the department of revenue is authorized to establish within the department of revenue a central collections unit (the “CCU”) for the purpose of assisting state agencies, departments, boards, commissions, corporations, authorities, quasi-state agencies, councils, the judicial branch, and other political subdivisions (referred to herein individually as a “state agency” and collectively as “state agencies”) in the collection of debts owed to the state. The director of the department of revenue may enter into an agreement or memorandum of understanding with any state agency to collect any delinquent debt owed to the state.
(b) [Deleted by P.L. 2023, ch. 199, § 1 and P.L. 2023, ch. 200, § 1.]
(c) State agencies that enter into an agreement or memorandum of understanding with the CCU shall refer debts owed by delinquent debtors where the nature and amount of the debt owed has been determined and reconciled by the state agency and the debt is: (i) The subject of a written settlement agreement and/or written waiver agreement and the delinquent debtor has failed to timely make payments under the agreement and/or waiver and is therefore in violation of the terms of the agreement and/or waiver; (ii) The subject of a final administrative order, decision, invoice, or statement and the debtor has exhausted or waived any available administrative hearing process and has not timely appealed the order, decision, invoice, or statement; (iii) The subject of a final order, judgment, or decision of a court of competent jurisdiction and the debtor has not timely appealed the order, judgment, or decision. The CCU shall not accept a referral of any delinquent debt unless it satisfies subsection (c)(i), (ii), or (iii) of this section.
(d) Any state agency entering into an agreement with the department of revenue to allow the CCU to collect a delinquent debt owed to the state shall indemnify the department of revenue against injuries, actions, liabilities, or proceedings arising from the collection, or attempted collection, by the CCU of the debt owed to the state.
(e) Before referring a delinquent debt to the CCU, the state agency must notify the debtor of its intention to refer the debt to the CCU for collection not less than twenty (20) days before the debt is formally referred to the CCU.
(f) At such time as the state agency refers a delinquent debt to the CCU, the state agency shall: (i) Represent in writing to the CCU, upon the referral form prescribed by the CCU, that it has complied with all applicable state and federal laws and regulations relating to the collection of the debt, including, but not limited to, the requirement to provide the debtor with the notice of referral to the CCU under subsection (e) of this section; and (ii) Provide the CCU personnel with all relevant supporting documentation including, but not limited to, notices, invoices, ledgers, correspondence, emails, agreements, waivers, decisions, orders, and judgments necessary for the CCU to attempt to collect the delinquent debt.
(g) The referring state agency shall assist the CCU by providing any and all information, expertise, and resources deemed necessary by the CCU to collect the delinquent debts referred to the CCU.
(h) Upon receipt of a referral of a delinquent debt from a state agency, the amount of the delinquent debt shall accrue interest at the annual rate of interest established by law for the referring state agency or at an annual rate of 13%, whichever percentage rate is greater.
(i) Upon receipt of a referral of a delinquent debt from a state agency, the CCU shall provide the delinquent debtor with a “Notice of Referral” advising the debtor that:
(1) The delinquent debt has been referred to the CCU for collection; and
(2) The CCU has the authority to initiate, in its name, any action that is available under state law for the collection of the delinquent debt, including, but not limited to, referring the debt to a third party to initiate said action.
(j) Upon receipt of a referral of a delinquent debt from a state agency, the director of the department of revenue, or designee, within the CCU shall have the authority to institute, in its name, any action(s) that are available under state law for collection of the delinquent debt and interest, penalties, and/or fees thereon and to, with or without suit, settle the delinquent debt.
(k) In exercising its authority under this section, the CCU shall comply with all state and federal laws and regulations related to the collection of debts to the extent that they are applicable and the CCU is not otherwise exempt from their application.
(l) Upon the receipt of payment from a delinquent debtor, whether a full or partial payment, the CCU shall disburse/deposit the proceeds of the payment in the following order:
(1) To the appropriate federal account to reimburse the federal government funds owed to them by the state from funds recovered; and
(2) The balance of the amount collected to the referring state agency.
(m) Notwithstanding the above, the establishment of the CCU shall be contingent upon an annual appropriation by the general assembly of amounts necessary and sufficient to cover the costs and expenses to establish, maintain, and operate the CCU including, but not limited to, computer hardware and software, maintenance of the computer system to manage the system, and personnel to perform work within the CCU.
(n) The CCU shall comply with the provisions of this section in the collection of all delinquent debts under this section.
(o) The department of revenue is authorized to promulgate rules and regulations as it deems appropriate with respect to the CCU.
(p) By September 1, 2020, and each year thereafter, the department of revenue shall specifically assess the performance, effectiveness, and revenue impact of the collections associated with this section, including, but not limited to, the total amounts referred and collected by each referring state agency during the previous state fiscal year to the governor, the speaker of the house of representatives, the president of the senate, the chairpersons of the house and senate finance committees, and the house and senate fiscal advisors. The report shall include the net revenue impact to the state of the CCU.
(q) No operations of a CCU pursuant to this chapter shall be authorized after June 30, 2033.
History of Section.
P.L. 2018, ch. 47, art. 4, § 9; P.L. 2019, ch. 88, art. 5, § 6; P.L. 2021, ch. 162,
art. 3, § 12, effective July 6, 2021; P.L. 2022, ch. 231, art. 3, § 16, effective
June 27, 2022; P.L. 2023, ch. 199, § 1, effective June 21, 2023; P.L. 2023, ch. 200,
§ 1, effective June 21, 2023.