Existing law sets forth general provisions governing the collection of debts owed to an agency of the Executive Department of State Government. (Chapter 353C of NRS) Under existing law, a debt is a tax, fee, fine or other obligation that is owed to an agency of the Executive Department or the State of Nevada that has not been remitted and paid to the agency or the State as required by law or pursuant to an agreement. (NRS 353C.040, 353C.100) With certain exceptions, existing law requires: (1) the State Controller to act as the collection agent for all agencies of the Executive Department; and (2) such agencies to assign their debts to the State Controller for collection not later than 60 days after the debt becomes past due or at such other time agreed upon by the agency and the State Controller. (NRS 353C.195) Existing law requires that interest accrue at a prescribed rate on debts assigned to the State Controller for collection if the debt was subject to the payment of interest pursuant to a specific statute or regulation before assignment. (NRS 353C.1955) Section 1 of this bill authorizes an agency, unless otherwise provided by a specific statute or regulation, to charge a debtor who owes a debt to the agency that is more than $50 and more than 10 days past due: (1) a late payment fee of $10; and (2) interest that accrues on the debt at the rate of 18 percent for each month, or portion of a month, thereafter until the debt is received by the agency or assigned to the State Controller for collection.
Existing law creates the Debt Recovery Account in the State General Fund to be used solely to support the debt collection efforts of the State Controller. (NRS 353C.226) Section 1 requires that any late payment fee or interest charged pursuant to section 1 that is received by the State Controller for a debt assigned to the State Controller for collection be deposited in the Debt Recovery Account.