SB504 H GO AM 2-27

Archibald 3192

    The Committee on Government Organization moves to amend the bill on page 2, by striking out everything after the enacting section and inserting in lieu thereof the following:

“ARTICLE 1A. DEBT RESOLUTION SERVICE.

§14-1A-1. Purpose.

    The purpose of this article is to provide for a timely and efficient mechanism for the collection of outstanding delinquent debt due the state from vendors.

§14-1A-2. Definitions.

    For the purpose of this article the following words have the meanings indicated:

    (a) “Debt” means an obligation owed the state which a spending unit has not been able to collect within one hundred eighty days of the date on which the obligation was created.

    (b) “Division” means the Debt Resolution Services Division.

    (c) “Fund” means the Debt Resolution Services Fund.

    (d) “Offset” means the capture and diversion of a payment due a vendor from the state to satisfy an outstanding delinquent debt owed by the vendor to the state.

    (e) “United States Treasury Offset Program” means the reciprocal debt collection offset program between the federal government and the State of West Virginia authorized by section thirty-seven, article one, chapter fourteen of this code.

§14-1A-3. Debt Resolution Services Division.

    The Auditor is authorized to establish a Debt Resolution Services Division. The Debt Resolution Services Division is authorized to:

    (a) Identify and offset state payments due to vendors that owe debts, as defined in subsection (a), section two of this article, to the state;

    (b) Administer the United States Treasury Offset Program established pursuant to section thirty-seven, article one, chapter fourteen of this code;

    (c) Adopt procedures, forms and agreements, prescribed by the Auditor, to effectuate the provisions of this article; and

    (d) Perform any other duties as directed by the Auditor.

§14-1A-4. Auditor’s rule-making authority.

    The Auditor shall propose rules for legislative approval pursuant to the provisions of article three, chapter twenty-nine-a of this code, necessary to administer this article.

§14-1A-5. Transaction fees.

    (a) The Auditor may assess an administrative fee for the collection of an outstanding debt through offset. The administrative fee may not exceed twenty-five percent of the outstanding debt collected on behalf of the spending unit.

     (b) Notwithstanding any other provision of this code, the Auditor may assess an administrative fee for collections performed pursuant to participation in the United States Treasury Offset Program. The administrative fee may not exceed the fee assessed by the United States Treasury Bureau of the Fiscal Service for its collections under that program.

    (c) The administrative fees authorized by this section shall be added to the outstanding delinquent debt and collected in the same manner as the debt.

§14-1A-6. Requirement for state agencies; exception.

    (a) Each spending unit of the state shall refer its debts, as defined in subsection (a), section two of this article, to the Debt Resolution Services Division for consideration for offset.

    (b) The division shall review the debt and either:

    (1) Accept the transfer of the debt from a spending unit that qualifies for offset; or

    (2) Refuse the transfer of the debt from a spending unit that does not qualify for offset.

    (c) This section does not apply to the State Tax Commissioner or to any state agency exempted by law.

§14-1A-7. Debt Resolution Services Fund created.

    (a) There is hereby created a special revenue revolving fund in the State Treasury designated the Debt Resolution Services Fund. All administrative fees and money received by the Auditor for services rendered pursuant to this article, and any interest or other return earned on the money, shall be deposited in the fund.

    (b) The money from the fund shall be used by the Auditor to pay all expenses related to the operation of the Debt Resolution Services Division and may be used to pay expenses related to the general operation of the Auditor’s Office.

    (c) Expenditures from the fund shall be made in accordance with appropriations by the Legislature pursuant to the provisions of article three, chapter twelve of this code, and upon fulfillment of the provisions set forth in article two, chapter five-a of this code.”