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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Good morning.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><a href="https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/SB1067/Enrolled">Senate Bill (SB) 1067</a> consists of several cost containment measures identified by members of the 2017 Legislative Assembly. Included in the
bill, was the debt collection centralization concept originally proposed by the Department of Administrative Services (DAS) via SB 89.<o:p></o:p></p>
<p class="MsoNormal">Below are highlights of the statutory changes referenced in the Debt Collection section of SB 1067:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Account assignment:<o:p></o:p></b></p>
<p class="MsoListParagraphCxSpFirst" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>All liquidated and delinquent accounts are required to be assigned to the Department of Revenue (DOR) not later than:<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>90 days from the date the account was liquidated if no payment has been received on the account within the 90- day period; or<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>90 days from the date of receipt of the most recent payment on the account.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto">
(Executive Department agencies are still subject to the 60 day assignment requirement under Executive Order 17-09 until June 30, 2019.)<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Agencies may assign liquidated and delinquent accounts to DOR prior to the 90 day time requirement.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>DOR has six months from the date the account was assigned to collect a payment. If DOR does not collect a payment within six months, or if six months have elapsed since the date of receipt of the most recent payment on the account,
DOR shall immediately assign the account to a private collection firm (PCF) and notify the state agency of the assignment.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>DOR may assign accounts to PCFs within the six month time period.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>DOR may add a fee to the amount of the liquidated and delinquent account to cover DORs cost of collections as well as PCFs costs of collection, if the debtor was provided notice in advance.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>DOR-Other Agency Accounts (OAA) has access to all data and other information available to DOR for any purpose allowed by law.<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>At the time any setoff is made, DOR shall notify the debtor of the sums due to the debtor from a state agency that are applied against the debtor’s delinquent account. The debtor may contest the setoff and request a hearing within
30 days from the date of the setoff notice.<o:p></o:p></p>
<p class="MsoNormal"><b>Social Security Numbers:<o:p></o:p></b></p>
<p class="MsoListParagraphCxSpFirst" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>State agencies may request that a person <u>voluntarily</u> supply the person’s Social Security Number (SSN) for use in collecting debts owed to the state of Oregon; the state agency must provide a disclosure notice.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>DAS shall adopt rules specifying the SSN disclosure notice format and setting procedures for sharing the SSN between state agencies and DOR and PCFs.<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>State agencies that require a person to provide their SSN under federal or state law for purposes other than collecting a debt owed to the state of Oregon may not use the SSN for debt collection purposes unless the agency also
requests the person to voluntarily provide their SSN and the agency provides notice as per rules adopted by DAS.<o:p></o:p></p>
<p class="MsoNormal"><b>Reporting:<o:p></o:p></b></p>
<p class="MsoListParagraphCxSpFirst" style="text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>State agencies with liquidated and delinquent account ending balances of $50 million or greater (as reported to the Legislative Fiscal Office) shall submit an additional report to the committees or interim committees of the Legislative
Assembly related to ways and means. The report shall include:<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>A description of major categories of liquidated and delinquent accounts held by the state agency;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>A description of circumstances under which the state agency writes off or adjusts liquidated and delinquent amounts or removes an account from liquidated and delinquent status;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>A description of actions undertaken by the state agency to reduce the amount of liquidated and delinquent debt owed to the state agency at the end of each fiscal year; and<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="margin-left:1.0in;mso-add-space:auto;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-family:"Courier New""><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>A plan for future actions that will reduce the amount of liquidated and delinquent debt owed to the state agency at the end of each fiscal year and describes any additional resources that are necessary to carry out the plan.<o:p></o:p></p>
<p class="MsoNormal"><b>Write-off:<o:p></o:p></b></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Removes requirement for accounts to be relinquished by a PCF to be eligible for write-off.<o:p></o:p></p>
<p class="MsoNormal"><b>Operative date:<o:p></o:p></b></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>All elements within the Debt Collection section of SB 1067 become operative July 1, 2018.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Please let us know if you have any questions about debt centralization in Oregon or if you would like to participate in the Centralization Workgroup. Thank you.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><b>Gerold Floyd</b> (503) 378-2709<o:p></o:p></p>
<p class="MsoNormal"><b><o:p> </o:p></b></p>
<p class="MsoNormal"><b>Stacey Chase </b>(503) 947-8567<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Statewide Accounts Receivable Management<o:p></o:p></p>
<p class="MsoNormal">Chief Financial Office<o:p></o:p></p>
<p class="MsoNormal">Department of Administrative Services<o:p></o:p></p>
<p class="MsoNormal"><a href="http://www.oregon.gov/das/Financial/Acctng/Pages/AR.aspx"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">www.oregon.gov/das/Financial/Acctng/Pages/AR.aspx</span></a><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Data Classification: Level 1 - Published</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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