SB 228/FN (BR 493) - D. Thayer
AN ACT relating to debts owed to the Commonwealth and declaring an emergency.
Create new sections of KRS Chapter 45 to require each cabinet to develop and apply preaudit procedures to all expenditure transactions for the purpose of detecting errors, fraud, or abuse prior to the issuance of a check or warrant; require initial procedures to be established by October 1, 2004; set forth the actions each cabinet must take in establishing these preaudit procedures; require cabinets to attempt to collect amounts paid venders due to error, fraud, or abuse for 90 days after the improper payment is discovered; require the cabinet, after 90 days, to certify the improper payment as a debt and refer all certified debts to the Finance and Administration Cabinet (FAC) for further collection action; require funds recovered within the 90 day period to be allocated to the fund from which the improper payment was expended; require each cabinet to submit monthly summaries of debts, payments, and referrals to the LRC for its referral to the co-chairs of the Interim Joint Committee on Appropriations and Revenue; establish content of the summaries; create a special collections unit within the FAC to pursue collection of certified debts; establish collections methods; provide direction for recordkeeping, and eventual writing off, of debts deemed unfeasible or cost ineffective to pursue; impose interest and collection fee on all certified debts received by the FAC; permit the FAC to retain the collection fee and require the interest and recovered funds to be deposited in the budget reserve trust fund; exempt Medicaid benefits and funds required by law to be remitted to a federal agency; permit referral to the Attorney General of any unsatisfied claim, demand, account and judgment for further civil or criminal action; require the FAC to report annually by October 1 to the LRC; prescribe content; require the Administrative Office of the Courts (AOC) to establish a system for tracking and identifying types and amounts of fees, fines, and other payments due the state by court judgment or order; direct AOC to establish and operate a system for collecting those fees, fines, and other payments due the state by court judgment or order; require consideration of technology to assist in the accurate, timely, and efficient delivery of payments; require AOC to submit an annual report to the LRC; prescribe content; amend KRS 44.030 to require each cabinet to provide information on all certified debts due to error, fraud, or abuse to the State Treasurer for action to prevent money being paid to a person indebted to the state; amend KRS 45.240 to conform; amend KRS 15.060 to limit the Attorney General's actions, regarding collection of payments, to those requested by the Revenue Cabinet; EMERGENCY.
SB 228 - AMENDMENTS
SCS/FN - Retain the original provisions except amend language relating to the promulgation of regulations by the Finance and Administration Cabinet to instead require that a system of internal controls be developed; delete the provisions creating a special collections unit within the Finance and Administration Cabinet and provide instead that all qualified debts shall be forwarded to the Revenue Cabinet for review and possible collection; delete monthly reporting requirements; incorporate the provisions of HB 162; allow the Court of Justice until October 1, 2005 to fully implement its tracking system; delete provisions requiring the Court of Justice to report by district and circuit court.
SFA (1, R. Sanders Jr) - Add language to require the Court of Justice, Justice Cabinet, and Revenue Cabinet to collaborate in the development of a system to collect old court debts if possible; require annual reporting of debts collected from October 1, 2005, through October 1, 2009; make technical correction.
HCS/FN - Restore provisions of SB 228 as introduced in the Senate.
HFA (1, H. Moberly) - Define terms; require the Finance and Administration Cabinet to develop a system of internal controls and preaudit policies and procedures for disbursement transactions; change the time frame from reporting debts from 90 to 60 days; require annual rather than monthly reporting; require referral of debts to the Revenue Cabinet rather than a special collections unit created in the Finance and Administration Cabinet; require the Court of Justice to implement a system for tracking debts; require the Courts, Justice Cabinet, and Revenue Cabinet to collaborate on the collection of old court debts, and to report the results on an annual basis.
Feb 24-introduced in Senate
Feb 27-to Appropriations and Revenue (S)
Mar 9-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 10-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, March 11, 2004; floor amendment (1) filed to Committee Substitute
Mar 11-3rd reading, passed 35-0 with Committee Substitute, floor amendment (1) ; received in House
Mar 15-to Appropriations and Revenue (H)
Mar 22-posting waived; posted in committee
Mar 23-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 24-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, March 25, 2004
Mar 25-floor amendment (1) filed to Committee Substitute
Apr 13-3rd reading, passed 93-0 with Committee Substitute, floor amendment (1) ; received in Senate; posted for passage for concurrence in House Committee Substitute, floor amendment (1) ; Senate concurred in House Committee Substitute, floor amendment (1) ; passed 37-0; enrolled, signed by each presiding officer; delivered to Governor
Apr 22-signed by Governor (Acts ch. 192)