[Rev. 11/21/2013 4:07:48 PM--2013]

[NAC-353C Revised Date: 7-13]

CHAPTER 353C - COLLECTION OF DEBTS OWED TO STATE AGENCY

OFFSET OF DEBTS OWED TO DEBTORS

General Provisions

353C.100         Request to offset debt; payment of debtor after notification of interception.

353C.110         Action by State Controller upon receipt of request to offset debt.

353C.120         Action by State Controller upon failure of debtor to request hearing.

353C.130         Proration of amount due from debtor upon multiple requests to offset debt.

353C.140         Restrictions on offsetting of debt; debts owed by employees of State.

Hearing on Request to Offset Debt

353C.150         Definitions.

353C.160         “Hearing” defined.

353C.170         “Petitioner” defined.

353C.175         “Respondent” defined.

353C.190         Scope and construction of provisions; deviations from rules.

353C.200         Scope of hearing.

353C.210         Submission and receipt of pleadings.

353C.220         Testimony must be under oath.

353C.240         Transcripts.

353C.250         Conduct required.

353C.260         Rights of petitioner and respondent.

353C.270         Representation of parties.

353C.280         Notice and location of hearing.

353C.290         Prehearing statements.

353C.300         Continuances and recesses; failure of party to appear.

353C.310         Burden of proof; presentation of evidence.

353C.320         Rules of evidence; depositions; subpoenas.

353C.330         Official notice.

353C.340         Action by State Controller after hearing.

PAYMENTS TO STATE AGENCIES

353C.400         Fee for check or draft returned to agency for lack of payment: Imposition; waiver.

REFUSAL BY AGENCY TO CONDUCT TRANSACTION WITH, OR BY STATE CONTROLLER TO DRAW WARRANT IN FAVOR OF, CERTAIN DEBTORS

353C.450         Factual determinations required before refusal.

353C.460         Written notice to debtor of refusal required; petition for relief; no additional right conferred on debtor to administratively contest debt.

AGREEMENT WITH DEBTOR FOR PAYMENT OF DEBT IN INSTALLMENTS

353C.500         Interest on debt.

ASSIGNMENT OF DEBTS TO STATE CONTROLLER FOR COLLECTION

353C.550         Format of assignment; submission of information and documentation concerning debt.

353C.560         Debt reduced to judgment or secured by lien not assignable within 90 days after expiration.

353C.570         Waiver of requirements of NRS 353C.195.

 

OFFSET OF DEBTS OWED TO DEBTORS

General Provisions

      NAC 353C.100  Request to offset debt; payment of debtor after notification of interception. (NRS 353C.110, 353C.190, 353C.195)

     1.  If an agency requests that the State Controller place a hold on payments to a person who owes a debt to the agency, the agency may, upon receiving notification from the State Controller that such a payment has been intercepted, submit to the State Controller a request to offset any amount due the agency from the debtor against any amount due the debtor from any agency. The request to offset the amount shall be deemed an assignment of a debt to the State Controller for collection pursuant to NRS 353C.195.

     2.  The request must be submitted in the format provided by the State Controller.

     3.  The agency shall verify and certify the accuracy of the name and address of the debtor and the amount of the debt and shall immediately notify the State Controller if the agency discovers that any of the information is incorrect.

     4.  If an agency has requested that the State Controller place a hold on payments to a debtor and such a payment is intercepted, any agency that receives notification pursuant to NAC 353C.110 that the payment has been intercepted and is being held for potential offset shall not attempt to pay that debtor using a different vendor number or by any other form of payment, unless authorized by the State Controller or the agency that requested the hold on payments to the debtor.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004; R079-09, 10-15-2010)

      NAC 353C.110  Action by State Controller upon receipt of request to offset debt. (NRS 353C.110, 353C.135, 353C.190)  Except as otherwise provided in NAC 353C.140, not later than 5 working days after receiving a request to offset from an agency pursuant to NAC 353C.100, the State Controller will:

     1.  Unless the debtor is an employee of the State of Nevada, proceed with the suspension of all payments due the debtor from any agency.

     2.  Notify the requesting agency and each agency processing a payment to the debtor that the payment has been intercepted and is being held for potential offset.

     3.  Send written notice to the debtor that the agency has requested the offset and that the debtor has 10 days after the date of the notice in which to request a hearing before the State Controller to contest the offset. The notice will:

     (a) Be sent by United States mail to the last known address of the debtor provided by the agency; and

     (b) Inform the debtor:

          (1) Of the amount due from the debtor, including, without limitation, any costs and fees imposed pursuant to NRS 353C.135;

          (2) Of the method by which he or she can request the hearing; and

          (3) That the authority for the offset is set forth in NRS 353C.190 and NAC 353C.100 to 353C.140, inclusive, and that the hearing will be held in accordance with the provisions of NAC 353C.150 to 353C.340, inclusive.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004; R079-09, 10-15-2010)

      NAC 353C.120  Action by State Controller upon failure of debtor to request hearing. (NRS 353C.110, 353C.190, 353C.224)  If the debtor fails to request a hearing within 10 days after the date of the notice sent pursuant to NAC 353C.110, the State Controller will:

     1.  Process the offset; and

     2.  Except as otherwise provided in NAC 353C.140, transfer an amount equal to the amount due the debtor from an agency from the appropriate account of that agency to the appropriate accounts in accordance with NRS 353C.224.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R079-09, 10-15-2010)

      NAC 353C.130  Proration of amount due from debtor upon multiple requests to offset debt. (NRS 353C.110, 353C.190)  If two or more agencies submit requests for an offset with regard to the same debtor, the amount transferred to each agency pursuant to NAC 353C.120 will be prorated based on:

     1.  The amount of the original debt due from the debtor to each agency; and

     2.  Any additional interest and penalties due from the debtor to each agency.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.140  Restrictions on offsetting of debt; debts owed by employees of State. (NRS 353C.110, 353C.190)

     1.  The State Controller will not offset any amount due a debtor pursuant to a program of public assistance or any other program for which the Division of Welfare and Supportive Services of the Department of Health and Human Services is responsible.

     2.  The State Controller will refer all debts due from a debtor who is an employee of the State of Nevada to the payroll section of the Division of Human Resource Management of the Department of Administration for the withholding of wages from the paycheck of the employee in accordance with all applicable laws, rules and regulations.

     3.  As used in this section, “public assistance” has the meaning ascribed to it in NRS 422.050.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

Hearing on Request to Offset Debt

      NAC 353C.150  Definitions. (NRS 353C.110, 353C.190)  As used in NAC 353C.150 to 353C.340, inclusive, unless the context otherwise requires, the words and terms defined in NAC 353C.160, 353C.170 and 353C.175 have the meanings ascribed to them in those sections.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.160  “Hearing” defined. (NRS 353C.110, 353C.190)  “Hearing” means a hearing before the State Controller or a designee thereof concerning a requested offset pursuant to NAC 353C.100 to 353C.140, inclusive.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.170  “Petitioner” defined. (NRS 353C.110, 353C.190)  “Petitioner” means a person who requests a hearing.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.175  “Respondent” defined. (NRS 353C.110, 353C.190)  “Respondent” means the agency that requested an offset pursuant to NAC 353C.100 to 353C.140, inclusive.

     (Added to NAC by St. Controller by R141-04, eff. 9-22-2004)

      NAC 353C.190  Scope and construction of provisions; deviations from rules. (NRS 353C.110, 353C.190)

     1.  NAC 353C.150 to 353C.340, inclusive:

     (a) Govern the practice and procedure in a hearing.

     (b) Will be liberally construed to secure the just, speedy and economical determination of all issues presented in a hearing.

     2.  The State Controller may permit deviation from the rules set forth in NAC 353C.150 to 353C.340, inclusive, in specific cases if:

     (a) Good cause appears for the deviation;

     (b) The deviation is not contrary to a specific statute; and

     (c) The deviation is stipulated to by all parties of record.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.200  Scope of hearing. (NRS 353C.110, 353C.190)  The scope of a hearing excludes review of the final determination of the amount due an agency from the petitioner.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.210  Submission and receipt of pleadings. (NRS 353C.110, 353C.190)  All pleadings, including, without limitation, complaints, petitions, answers, briefs, motions, affidavits and applications, must be addressed to the State Controller. All pleadings shall be deemed to be officially received by the State Controller when a true copy of the paper or document, properly addressed and stamped, is deposited in the United States mail.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.220  Testimony must be under oath. (NRS 353C.110, 353C.190)  Oral evidence will be taken only upon oath or affirmation administered by the State Controller. Before testifying, a person must swear or affirm that the testimony he or she is about to give will be the truth, the whole truth and nothing but the truth.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.240  Transcripts. (NRS 353C.110, 353C.190)  If the petitioner wishes to have a transcript of the hearing, he or she must furnish the reporter, pay for the transcript and deliver a copy of the transcript to the State Controller within 20 days after requesting a rehearing or filing a petition for judicial review of the matter pursuant to chapter 233B of NRS.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.250  Conduct required. (NRS 353C.110, 353C.190)  A person appearing in a hearing shall conform to the recognized standards of ethical and courteous conduct.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.260  Rights of petitioner and respondent. (NRS 353C.110, 353C.190)  At a hearing, the petitioner and respondent may:

     1.  Call and examine witnesses.

     2.  Introduce relevant exhibits and evidence identified in their respective prehearing statements submitted pursuant to NAC 353C.290, subject to objection by the opposing party.

     3.  Cross-examine opposing witnesses on any relevant matter, even if that matter was not covered in the direct examination.

     4.  Impeach any witness regardless of which party first called him or her to testify.

     5.  Offer rebuttal evidence.

     6.  Call any person who, because of his or her relationship to any other party, may be an adverse witness and examine him or her as an adverse witness.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.270  Representation of parties. (NRS 353C.110, 353C.190)

     1.  A party may appear at a hearing:

     (a) In person;

     (b) By an attorney, accountant or other authorized representative; or

     (c) As provided in subsection 2.

     2.  If a party is not a natural person, the party may appear at a hearing:

     (a) If a partnership, by a partner.

     (b) If a corporation, by an officer or a regular employee.

     (c) If a municipal corporation, by an officer, agent or employee.

     (d) If an unincorporated association, by an officer or employee.

     3.  An attorney who is not a member of the State Bar of Nevada may represent a party at a hearing if the attorney is otherwise authorized to practice law in this State pursuant to the rules of the Supreme Court.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.280  Notice and location of hearing. (NRS 353C.110, 353C.190)

     1.  Except as otherwise provided in subsection 3, notice of the place, date and hour of a hearing will be served at least 15 days before the date set for the hearing.

     2.  A hearing will be held at the Office of the State Controller in Carson City, Nevada, or at such other place in this State as may be designated in the notice of hearing.

     3.  A hearing date may be set with less than 15 days’ notice if the petitioner and the respondent agree in writing.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.290  Prehearing statements. (NRS 353C.110, 353C.190)  The petitioner and the respondent shall each submit a prehearing statement to the State Controller at least 5 days before the date of a hearing. The prehearing statement must include a statement of the issues to be presented and a list of witnesses and evidence to be presented at the hearing.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.300  Continuances and recesses; failure of party to appear. (NRS 353C.110, 353C.190)  The State Controller or a designee thereof retains discretion:

     1.  To grant continuances or recesses, both before and during a hearing; and

     2.  If a party fails to appear at the time and place set for a hearing, to dismiss the proceeding with or without prejudice or to recess the hearing for a specified period to enable the party to attend.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.310  Burden of proof; presentation of evidence. (NRS 353C.110, 353C.190)

     1.  The petitioner has the burden of proof in a hearing.

     2.  Unless otherwise ordered by the State Controller in a specific case, evidence will be received in the following manner:

     (a) Brief opening statements by the petitioner and the respondent;

     (b) Presentation of evidence by the petitioner;

     (c) Presentation of evidence by the respondent; and

     (d) Presentation of rebuttal evidence by the petitioner.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R141-04, 9-22-2004)

      NAC 353C.320  Rules of evidence; depositions; subpoenas. (NRS 353C.110, 353C.190)

     1.  A hearing will not be conducted according to the technical rules of evidence, but pursuant to the provisions of NRS 233B.123.

     2.  The State Controller or any party to the hearing may cause the depositions of witnesses to be taken in the manner prescribed by the Nevada Rules of Civil Procedure for depositions in civil actions.

     3.  The State Controller, upon the application of a party, may issue subpoenas.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.330  Official notice. (NRS 353C.110, 353C.190)  The State Controller may take official notice of the following matters:

     1.  Rules, regulations, official reports, decisions and orders of the State Controller and any regulatory agency of this State.

     2.  Matters of common knowledge and technical or scientific facts of established character.

     3.  An official document properly introduced into the record of a hearing, if:

     (a) The document is pertinent; and

     (b) Proper and definite reference to the document is made by the party offering it.

     4.  Matters which may be judicially noticed by the courts of this State.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002)

      NAC 353C.340  Action by State Controller after hearing. (NRS 353C.110, 353C.190, 353C.224)

     1.  After the conclusion of the evidentiary portion of a hearing, the State Controller will, within 30 days, prepare findings of fact, conclusions of law and a final decision on the issues presented in the hearing.

     2.  The State Controller will serve a copy of the findings of fact, conclusions of law and decision upon all parties of record.

     3.  Upon completion of service pursuant to subsection 2, the State Controller will:

     (a) Process the offset; and

     (b) Except as otherwise provided in NAC 353C.140, transfer an amount equal to the amount due the debtor from an agency from the appropriate account of that agency to the appropriate accounts in accordance with NRS 353C.224.

     (Added to NAC by St. Controller by R117-02, eff. 12-17-2002; A by R079-09, 10-15-2010)

PAYMENTS TO STATE AGENCIES

      NAC 353C.400  Fee for check or draft returned to agency for lack of payment: Imposition; waiver. (NRS 353C.110, 353C.115)

     1.  Except as otherwise provided in subsection 2, an agency shall charge a person a fee of $25 for each check or draft returned to the agency because the person:

     (a) Had insufficient money or credit with the bank or other financial institution on which the check or draft was to be drawn to pay the check or draft; or

     (b) Stopped payment on the check or draft.

     2.  The State Controller may waive a fee charged pursuant to subsection 1 if the person to whom the fee is charged:

     (a) Submits a written application for the waiver to the State Controller within 30 days after the fee is charged; and

     (b) Includes with the application set forth in paragraph (a) evidence that the check or draft was dishonored through the fault or error of the bank or other financial institution on which the check or draft was to be drawn.

     3.  For the purposes of this section, “agency” does not include the Department of Taxation, Nevada Gaming Commission or State Gaming Control Board.

     (Added to NAC by St. Controller by R121-03, eff. 2-4-2004)

REFUSAL BY AGENCY TO CONDUCT TRANSACTION WITH, OR BY STATE CONTROLLER TO DRAW WARRANT IN FAVOR OF, CERTAIN DEBTORS

      NAC 353C.450  Factual determinations required before refusal. (NRS 353C.110, 353C.128)

     1.  Before an agency may refuse to conduct a transaction with, or the State Controller refuses to draw a warrant in favor of, a person, pursuant to NRS 353C.128, the agency must or the State Controller will, as applicable, determine that:

     (a) The person owes a debt to an agency;

     (b) The debt is unpaid; and

     (c) The person has not entered into an agreement, pursuant to NRS 353C.130, for the payment of the debt on an installment basis.

     2.  An agency may, or the State Controller will, base the determination required by subsection 1 on any information that is of a type commonly relied upon by reasonable and prudent persons in the conduct of their affairs.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)

      NAC 353C.460  Written notice to debtor of refusal required; petition for relief; no additional right conferred on debtor to administratively contest debt. (NRS 353C.110, 353C.128)

     1.  If, pursuant to NRS 353C.128, an agency refuses to conduct a transaction with, or the State Controller refuses to draw a warrant in favor of, a person, the agency shall, or the State Controller will, provide written notice of the refusal to the person. The notice must:

     (a) Be sent by United States mail to the last known address of the person; and

     (b) Inform the person:

          (1) Of the agency to which the person owes the debt;

          (2) Of the amount of the debt, including, without limitation, any penalty or interest owed and any costs and fees imposed pursuant to NRS 353C.135;

          (3) That the person may have the right to administratively contest the existence or amount of the debt in accordance with the administrative procedures prescribed by the agency to which the debt is owed; and

          (4) Of the provisions of NRS 353C.128.

     2.  A person who is aggrieved by the refusal of an agency to conduct a transaction with, or the refusal of the State Controller to draw a warrant in favor of, the person may submit a petition to the agency or State Controller, as applicable, seeking relief. The petition must set forth with specificity the legal and factual grounds upon which the claim for relief is based.

     3.  This section does not confer on a debtor any right to administratively contest the existence or amount of a debt that is in addition to the right conferred on the debtor by the administrative procedures prescribed by the agency to which the debt is owed.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)

AGREEMENT WITH DEBTOR FOR PAYMENT OF DEBT IN INSTALLMENTS

      NAC 353C.500  Interest on debt. (NRS 353C.110, 353C.130)

     1.  An agreement with a debtor, pursuant to NRS 353C.130, for the payment of a debt on an installment basis may include a provision that requires the debtor to pay interest on the debt.

     2.  The rate of interest included in such an agreement must be equal to the rate established pursuant to NRS 99.040.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)

ASSIGNMENT OF DEBTS TO STATE CONTROLLER FOR COLLECTION

      NAC 353C.550  Format of assignment; submission of information and documentation concerning debt. (NRS 353C.110, 353C.195)

     1.  An agency that assigns a debt to the State Controller for collection pursuant to NRS 353C.195 shall make the assignment electronically or in writing using the format prescribed by the State Controller. The assignment must include, without limitation, the name of the debtor and the amount of the debt.

     2.  An agency that assigns a debt to the State Controller for collection shall, at the time of the assignment or as soon thereafter as practicable, submit to the State Controller:

     (a) A statement of the agency’s efforts to collect the debt; and

     (b) All relevant information and documentation in the agency’s possession concerning the debt, including, without limitation:

          (1) Information concerning the debtor, including, without limitation, the debtor’s address, telephone number and other identifying information;

          (2) Information concerning the debtor’s ability to pay the debt, including, without limitation, the identity and location of any assets owned by the debtor;

          (3) Documentation establishing the existence and amount of the debt, including, without limitation, the record of any administrative proceedings conducted by the agency relating to the debt and any judicial review of such proceedings;

          (4) Documentation related to any judicial proceedings concerning the debt, including, without limitation, a copy of any judgment obtained by the agency against the debtor;

          (5) Documentation related to any lien obtained by the agency upon the real and personal property of the debtor; and

          (6) Any other documentation or information requested by the State Controller.

     3.  The failure of an agency to provide any information or documentation concerning a debt that is required pursuant to subsection 2 does not invalidate the assignment of the debt to the State Controller.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)

      NAC 353C.560  Debt reduced to judgment or secured by lien not assignable within 90 days after expiration. (NRS 353C.110, 353C.195)  An agency that has obtained a judgment against a debtor or a lien upon the real and personal property of a debtor shall not assign the debt to the State Controller for collection if the judgment or lien will expire within 90 days after the date of the prospective assignment.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)

      NAC 353C.570  Waiver of requirements of NRS 353C.195. (NRS 353C.110, 353C.195)

     1.  An agency that wishes to obtain a waiver of a requirement of NRS 353C.195 may submit a request for such a waiver to the State Controller.

     2.  A request submitted pursuant to subsection 1 must:

     (a) Be in the form prescribed by the State Controller;

     (b) Specify each requirement of NRS 353C.195 from which the waiver is sought; and

     (c) Include:

          (1) A description of the resources that the agency has to engage in its own debt collection efforts; or

          (2) Other evidence of good cause for granting the waiver.

     3.  A request submitted pursuant to subsection 1 may include, without limitation:

     (a) A description of the procedures that the agency uses to collect its own debts;

     (b) A statement of the success of the agency in collecting its own debts; and

     (c) A statement of the reasons why the agency contends that granting the waiver is likely to generate more net revenue for the State than if the request for the waiver is denied.

     4.  The State Controller will condition the grant of a waiver upon an agency’s agreement to certain conditions concerning methods and procedures for the collection of debts by the agency and for the assignment of the agency’s debts to the State Controller for collection.

     5.  The State Controller will notify the agency, in writing, of the grant or denial of the waiver. If the State Controller grants a waiver, the notice will set forth the terms of the waiver, including, without limitation, the conditions concerning methods and procedures for the collection of debts by the agency and for the assignment of the agency’s debts to the State Controller for collection.

     6.  The State Controller will review each waiver granted pursuant to NRS 353C.195 at least once each year and at any other time if the State Controller determines that there has been a material change in the circumstances upon which the waiver was granted.

     (Added to NAC by St. Controller by R079-09, eff. 10-15-2010)