H. B. 4339
(By Delegates H. White and Campbell)
[By Request of the State Tax Division]
[Introduced February 4, 2010
; referred to the
Committee on Government Organization then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §14-1-37, relating to
collecting debts through the United States Treasury Offset
Program; authorizing the State Auditor to enter into
agreements with the United States Treasury's Financial
Management Service; specifying reduction and offset of
payments for collection of debt; authorizing rules; specifying
cost-effective actions to aggressively collect; and
authorizing interagency agreements.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §14-1-37, to read as
ARTICLE 1. CLAIMS DUE THE STATE.
§14-1-37. United States Treasury offset program authorized; setoff
of federal debts.
(a) The Auditor is authorized to enter into an agreement with
the United States Treasury's Financial Management Service to
participate in the Treasury Offset Program pursuant to 31 U.S.C.
§3716 for the collection of any debts owed to the state or to state
agencies. The agreement may provide for the United States to
submit debts owed to federal agencies for offset against state
payments similar to the procedures for offsetting debts owed to
(b) The Auditor shall reduce any state payment by the amount
of any federal debt submitted in accordance with the agreement
authorized by this section, and pay such amount to the appropriate
federal official in accordance with the procedures specified in the
(c) The amount of the offset fee as set forth in the agreement
shall be added to the debt liability, fees, or penalties. The fee
may be deducted from amounts remitted to the state by the federal
government pursuant to an intergovernmental agreement or from
refunds or credits due an individual or entity.
(d) The Auditor may, by rule, establish a fee to be charged to the federal government for the provision of state offset services.
(e) Each state agency and institution shall take all
appropriate and cost-effective actions to aggressively collect its
accounts receivable. Each agency and institution may participate
in the Treasury Offset Program of the United States under 31 U.S.C.
(f) The Auditor may promulgate rules to implement this section
and the agreement pursuant to article three, chapter twenty-nine-a
of this code.
(g) The Auditor and the chief administrators of the agencies
are authorized by this section to enter into interagency agreements
for the purpose of collecting debts, fees and penalties due to the
NOTE: The purpose of this bill is to facilitate the collection
of debt owed to the state and state agencies. The bill authorizes
the Auditor to enter into a reciprocal agreement with U.S. Treasury
Financial Management Service in order to satisfy debt to the state
by offsetting federal nontax payments to the person or entity with
state debt. The offset fee is an additional debt which the Auditor
may pay from money otherwise due and owing to the individual or
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would