HB 162/FN (BR 348) - H. Moberly
AN ACT relating to debts owed to the Commonwealth.
Create a new section of KRS Chapter 45 to define terms; require executive branch agencies and the Administrative Office of the Courts to develop, maintain, and update an ongoing inventory of each debt owed to it; require each agency and the Administrative Office of the Courts to make every effort to collect the debt; direct the Auditor of Public Accounts to review each agency's debt identification and collection procedures as part of the annual audit of state agencies; prohibit an agency, unless otherwise provided by statute, to forgive any debt owed to it; direct the Revenue Cabinet to promulgate administrative regulations prescribing standards and procedures for agencies without statutory procedures for collecting debts to follow; require each agency and the Administrative Office of the Courts to identify all liquidated debts (legal debts for which all appeals and legal actions have been exhausted) and submit them to the Revenue Cabinet for review; direct the Revenue Cabinet to determine the cost-effectiveness for the cabinet to further pursue collections of those liquidated debts; permit the cabinet to return a liquidated debt to the submitting agency or the Administrative Office of the Courts under certain criteria, stating the reason in writing; require the cabinet to identify the liquidated debts it determined cost-effective to pursue and request official referral to the cabinet; require submitting agency or the Administrative Office of the Courts to retain a complete record of all referrals to the cabinet until the debt is collected or forgiven; require each agency and the Administrative Office of the Courts to make appropriate accounting of any uncollected debt as prescribed by law; direct that debt funds collected by an agency prior to referral be retained by the agency according to statutory authority; direct that liquidated debts referred to the Revenue Cabinet be subject to interest and a 25% collection fee, unless waived by the cabinet; require any debts recovered by the cabinet, plus the interest and collection fee, to be deposited in the general fund, except for Medicaid benefits and funds required by law to be remitted to a federal agency; permit the cabinet to deduct and retain from the liquidated debt, recovered an amount equal to the lesser of the cost of collection fee or the actual expense incurred in the collection of the debt; direct that the Revenue Cabinet is not prohibited from entering into an agreement with an agency for collection of debts prior to liquidation; direct that the agency entering into the agreement retain collection funds in accordance with the provisions of the agreement; direct the cabinet to prescribe, by administrative regulation, the format and form of a referral and the information to be included in it; require the Revenue Cabinet, each of the remaining cabinets, and the Administrative Office of the Courts to report annually to the Interim Joint Committee on Appropriations and Revenue; require the General Government Cabinet's report to be done by the Finance and Administration Cabinet; prescribe contents of the reports; require information about liquidated debts to the Revenue Cabinet to be provided by the referring agency and the Administrative Office of the Courts to the State Treasurer for the Treasurer's action under existing law regarding payments of claims against the state when the person is indebted to the state; amend KRS 44.030 to conform; amend KRS 131.030 to direct that the Revenue Cabinet have all powers and duties necessary to collect any debts owed to the Commonwealth that are referred under the process established; amend KRS 131.565, relating to state agencies' establishment of claim against Kentucky individual income tax refunds, to include the Administrative Office of the Courts in the meaning of "state agency" for purposes of this section; require state agencies with provisions in statutes or administrative regulation for debtor appeal and hearing rights, rather than state agencies that desire to do so, to establish claims against tax refunds; require a state agency to furnish its list of all liquidated debts for which withholding of tax refunds is required to the Revenue Cabinet by dates agreed to by the Revenue Cabinet and each state agency, rather than by the date of the following December 31; permit the Revenue Cabinet, to decline the withholding of individual income tax refunds from agencies if the request would adversely impact the operation of the Revenue Cabinet; amend KRS 131.585 to conform.
HB 162 - AMENDMENTS
HCS/FN - Retain provisions of original bill; define "court of justice"; provide exception from the liquidated debt collection provisions for contracts in existence on the effective date of the act, and for the collection of delinquent taxes by county attorneys; amend KRS 131.130 to conform.
HFA (1, H. Moberly) - Amend to define "liquidated debts" for the Court of Justice; provide that the Court of Justice shall be required to file reports beginning on October 1, 2005, and that the reports will include the fiscal year beginning July 1, 2004 and beyond.
HFA (2, H. Moberly) - Amend Section 1 of the Act to define "forgivable loan agreement" and to provide that debts relating to forgivable loan agreements can be forgiven by state agencies.
SFA (1, R. Sanders Jr) - Add improper payments to the items covered by the legislation; require the Court of Justice to implement a system for tracking and identifying debts; require the Court, Justice Cabinet, and Revenue Cabinet to collaborate on the collection of old court debts; require that the results of the collections efforts be reported to the Legislative Research Commission.
SFA (2, R. Sanders Jr) - Add improper payments to the items covered by the legislation, exclude the collection of performance or reclamation bonds from the provisions of the Act; require the Court of Justice to implement a system for tracking and identifying debts; require the Court, Justice Cabinet, and Revenue Cabinet to collaborate on the collection of old court debts; require that the results of the collections efforts be reported to the Legislative Research Commission.
Jan 6-introduced in House
Jan 7-to Appropriations and Revenue (H)
Jan 30-posted in committee
Feb 3-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 4-2nd reading, to Rules
Feb 5-posted for passage in the Regular Orders of the Day for Friday, February 6, 2004; floor amendment (1) filed to Committee Substitute
Feb 9-floor amendment (2) filed to Committee Substitute
Feb 12-3rd reading, passed 92-0 with Committee Substitute, floor amendments (1) and (2)
Feb 13-received in Senate
Feb 19-to Appropriations and Revenue (S)
Mar 24-reported favorably, 1st reading, to Calendar
Mar 25-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, March 26, 2004; floor amendments (1) and (2) filed
Mar 26-3rd reading; floor amendment (1) withdrawn ; passed 34-0 with floor amendment (2)
Mar 29-received in House; to Rules (H); placed in the Orders of the Day; House concurred in Senate floor amendment (2) ; passed 90-0; enrolled, signed by each presiding officer; delivered to Governor
Apr 9-signed by Governor (Acts ch. 118)