§ 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 thirteen percent (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.