Existing law requires each agency of the Executive Department of State Government to coordinate all its debt collection efforts through the State Controller. With certain exceptions, existing law requires an agency to assign a debt to the State Controller for collection within 60 days after the debt becomes past due or such other time agreed upon by the agency and the State Controller. Existing law requires the State Controller, upon the request of an agency, to waive the requirement for the agency to coordinate its collection efforts through the State Controller: (1) if the State Controller determines that the agency has the resources to engage in its own debt collection efforts; or (2) for good cause shown. Existing law authorizes an agency that has received such a waiver from the State Controller or which has specific statutory authority to engage in its own collection efforts to exercise certain rights and remedies conferred on the State Controller to collect debts. (NRS 353C.195)
Existing law requires the State Controller to develop and operate a system for matching data with financial institutions to collect outstanding debts owed to the State. Financial institutions in this State are required by existing law to: (1) provide to the State Controller information on persons who maintain accounts at the financial institution who are identified by the State Controller as owing outstanding debts to the State; and (2) in response to the receipt of a notification of debt from the State Controller, encumber certain assets held in the financial institution by the debtors to pay their debts. (NRS 353C.240) Under existing law, agencies that engage in their own collection efforts under a waiver from the State Controller or specific statutory authority are not authorized to develop and operate such a system with financial institutions. (NRS 353C.195)
Section 1 of this bill authorizes any such agency to develop and operate a system for matching data with financial institutions to collect outstanding debts in the same manner as the State Controller.
Existing law makes the records and files of the Department of Taxation concerning the administration and collection of taxes, fees, assessments and other amounts required by law to be collected and the imposition of disciplinary action confidential and privileged, but authorizes the disclosure of such records and files under certain circumstances. (NRS 360.255) Section 2 of this bill authorizes the Department to disclose certain confidential information for the purpose of using a system for matching data with financial institutions to collect outstanding debts.

Statutes affected:
BDR: 353C.195, 360.255