Collection costs for debts owed to the state.

2017
STATE OF WYOMING
17LSO-0252
Introduced
1.2

HOUSE BILL

NO.
HB0177

Collection costs for debts owed to the state.

Sponsored by:
Representative(s) Burkhart and Madden and Senator(s) Peterson

A BILL

for

AN ACT relating to the collection of debts due the state or other governmental entities; providing a fee for collection costs when the state or governmental entity employs a collection agency to recover debts; conforming related provisions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 2
‑
10
‑
104(c), 9
‑
1
‑
415(a), 16
‑
4
‑
502(a), 16
‑
6
‑
112(a)(i) and (ii),
27
‑
11
‑
107(h),

29
‑
9
‑
101, 31
‑
18
‑
707, 39
‑
13
‑
108(b)(iv), 39
‑
15
‑
103(c)(iv), 39
‑
15
‑
106(g)(ii), 39
‑
15
‑
107(b)(x), 39
‑
15
‑
108(c)(viii)(B) and (xii), 39
‑
16
‑
103(c)(vii), 39
‑
16
‑
107(b)(v), 39
‑
16
‑
108(c)(v), (vi)
and (e), 39
‑
17
‑
106(e)(iii)(C), 39
‑
17
‑
206(k)(iii)(C) and 39
‑
22
‑
108(c)(iii) are amended to read:

2
‑
10
‑
104
.

Probate court to determine; discretion allowed; presumption of correctness.

(c)

If the probate court finds that the assessment of penalties
,

and
interest
and collection fees
assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties
,

and
interest
and collection fees
.

9
‑
1
‑
415
.

Collection of debts due the state; discharge of uncollectible debts.

(a)

Except as provided in subsections (e) and (f) of this section, any office or agency of the state may use the services of a collection agency licensed in Wyoming to assist in the collection of debts due the state or any state office or agency.
Any office or agency of the state using a collection agency as provided in this section may
add a reasonable fee, payable by the debtor, to the outstanding debt for the collection agency fee incurred or to be incurred. The amount to be paid for collection services shall be left to the agreement of the office or agency and its collection agency or agencies, but in no case shall the fee exceed twenty percent (20%) of the unpaid debt per account.

16
‑
4
‑
502
.

Collection of debts due a governmental entity; discharge of uncollectible debts.

(a)

The governing body of any governmental entity may authorize the use of the services of a collection agency licensed in Wyoming to assist in the collection of debts due the governmental entity.
The governing body using a collection agency as provided in this section may add a reasonable fee, payable by the debtor, to the outstanding debt for the collection agency fee incurred or to be incurred. The amount to be paid for collection services shall be left to the agreement of the governing body and its collection agency or agencies, but in no case shall the
fee exceed twenty percent (20%) of the unpaid debt per account.

16
‑
6
‑
112
.

Contractor's bond or other guarantee; when required; conditions; amount; approval; filing; enforcement upon default.

(a)

Except as provided under W.S. 9
‑
2
‑
1016(b)(xviii), any contract entered into with the state, any county, city, town, school district or other political subdivision of the state for the construction, major maintenance or renovation of any public building or other public structure or for any public work or improvement and the contract price exceeds seven thousand five hundred dollars ($7,500.00), shall require any contractor before beginning work under the contract to furnish the state or any political subdivision, as appropriate, a bond or if the contract price is one hundred fifty thousand dollars ($150,000.00) or less, any other form of guarantee approved by the state or the political subdivision. The bond or other form of guarantee shall be:

(i)

Conditioned for the payment of all taxes, excises, licenses, assessments, contributions, penalties
, collection fees
and interest lawfully due the state or any political subdivision;

(ii)

For the use and benefit of any person performing any work or labor or furnishing any material or goods of any kind which were used in the execution of the contract, conditioned for the performance and completion of the contract according to its terms, compliance with all the requirements of law and payment as due of all just claims for work or labor performed, material furnished and taxes, excises, licenses, assessments, contributions, penalties
, collection fees
and interest accrued in the execution of the contract;

27
‑
11
‑
107
.

Penalty.

(h)

Payment of all fines and penalties imposed under this section
and any collection fees otherwise authorized by law
shall be made to the county treasurer of the county in which the violation occurs to be credited to the county
school fund.
Unpaid fines and penalties become delinquent if not paid within sixty (60) days after the fines or penalties are imposed and may be collected by the department as otherwise provided by law and as provided in W.S. 9
‑
1
‑
415(a).

29
‑
9
‑
101
.

Lien of state on realty of debtor.

The amount of every account audited, adjusted and found due to the state including penalties
, collection fees
and interest is a lien upon the real property of the person charged with the debt. The lien shall be in effect from the time suit commences for the recovery of the debt.

31
‑
18
‑
707
.

Nonpayment of fees, taxes, penalties or interest.

All fees under chapter 18 of title 31, diesel fuel taxes, penalty or interest under title 39 or commercial vehicle registration fees under title 31 become delinquent if not paid as provided for by law from the date due. Delinquent diesel fuel taxes, penalties, interest
, collection fees
or
commercial vehicle registration fees are a lien on all motor vehicles owned or operated in this state by the person liable for payment of the taxes, penalties, interest or fees. If any such taxes, penalties, interest or fees remain delinquent for thirty (30) days or if any vehicle subject to the lien is about to be removed from the state, the department or its authorized enforcement agent may seize and sell the vehicle subject to all existing liens and security interests held by others, at public auction upon notice to the owner and lienholder of record as provided by Rule 4 of the Wyoming Rules of Civil Procedure, and upon four (4) weeks notice of the sale in a newspaper published in the counties in which the vehicle is titled and registered. The department may bring suit in any court of competent jurisdiction to collect any delinquent fees or taxes, penalties
, collection fees
and interest under this section.

39
‑
13
‑
108
.

Enforcement.

(b)

Interest. The following shall apply:

(iv)

Rail car companies. If the taxes levied and payable to the department under W.S. 39
‑
13
‑
104(g) are not paid on December 31 of the year levied, they shall become delinquent and shall bear interest at the rate of eleven percent (11%) per annum. If the taxes and interest due are not paid before February 1 following the levy, the department may collect them by distress and sale of any property belonging to the delinquent owner in the manner required of county treasurers, and the order of the department shall be sufficient authority therefor. The department may use any other remedy available for the collection of monies due
and may recover collection fees as provided in W.S. 9
‑
1
‑
415(a)
.

39
‑
15
‑
103
.

Imposition.

(c)

Taxpayer. The following shall apply:

(iv)

The vendor shall file a return within thirty (30) days after discontinuing or selling his business. His successor in business shall withhold from the purchase price enough money to pay the taxes, penalties and
interest due on the outstanding amount of all credit, installment and conditional sales upon which the tax has not been paid until the time the former owner produces a receipt from the department showing that all taxes have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due and the taxes, penalty and interest are unpaid the original vendor and successor vendor are liable for the payment of the unpaid taxes, penalties
, collection fees
and interest.

39
‑
15
‑
106
.

Licenses; permits.

(g)

The department may, after providing notice and an opportunity for a hearing, revoke the license of any vendor violating any provision of this article and no license shall thereafter be issued to that person until the applicant has:

(ii)

Filed with the department all past due returns and has remitted in full all taxes, penalties
, collection fees
and interest due.

39
‑
15
‑
107
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(x)

The department may enter into contracts with collection agencies for required collection services on deficiencies of sales tax occurring under W.S. 39
‑
15
‑
101 through 39
‑
15
‑
111 from and after the reporting period of January, 1989. Any taxes collected by the collection agencies shall be distributed in accordance with W.S. 39
‑
15
‑
111(b).
There is continuously appropriated from the general fund, to the department, an amount equal to the cost of collection under each contract but not to exceed fifty percent (50%) of the amounts collected by collection agencies, under a contract. The department shall expend those funds appropriated solely for collection agency services and may authorize in the contracts for those services that collection agency costs be deducted from funds collected and remitted to the department
A reasonable fee for the collection fees incurred or to be incurred, in accordance with W.S. 9
‑
1
‑
415(a), may be authorized in the
contracts
. The contracts entered into under this paragraph shall not be for a term of more than two (2) years and shall be awarded only after competition;

39
‑
15
‑
108
.

Enforcement.

(c)

Penalties. The following shall apply:

(viii)

The department may, after providing notice and an opportunity for a hearing, revoke the license of any vendor violating any provision of this article and no license shall thereafter be issued to that person until the applicant has:

(B)

Filed with the department all past due returns and has remitted in full all taxes, penalties
, collection fees
and interest due.

(xii)

If a vendor fails to file a return as required by this article, the department shall give written notice by mail to the vendor to file a return on or before the last day of the month following the notice of
delinquency. If a vendor then fails to file a return the department shall make a return from the best information available which will be prima facie correct and the tax due therein is a deficiency and subject to penalties and

interest as provided by this article
and any collection fees otherwise authorized by law
;

39
‑
16
‑
103
.

Imposition.

(c)

Taxpayer. The following shall apply:

(vii)

If any vendor discontinues his business or sells his stock of goods he shall make a final return and payment within thirty (30) days thereafter. His successor in business shall withhold from the purchase price an amount equal to any taxes, penalty
, collection fees
or interest due until the time the former owner produces a receipt from the department showing that all amounts due have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due he is liable for same;

39
‑
16
‑
107
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(v)

If any vendor discontinues his business or sells his stock of goods he shall make a final return and payment within thirty (30) days thereafter. His successor in business shall withhold from the purchase price an amount equal to any taxes, penalty
, collection fees
or interest due until the time the former owner produces a receipt from the department showing that all amounts due have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due he is liable for same;

39
‑
16
‑
108
.

Enforcement.

(c)

Penalties. The following shall apply:

(v)

If the taxes, penalty and interest due under this section
and any collection fees otherwise authorized by law
are
unpaid
not paid
within ten (10) days following
service of notice an additional penalty of ten percent (10%) and interest as provided by paragraph (i) of this subsection shall be added by the department;

(vi)

The department shall promptly give written notice of all taxes, penalty
, collection fees
and interest due under this section by personal service or mail to the address as shown in the department records;

(e)

Tax sales. At any time following a delinquency the department with board approval may seize and sell at public auction any property owned by the delinquent taxpayer to pay all taxes, penalty
, collection fees
and interest due plus the cost involved in seizing and selling the property. Notice of the sale showing its time and place shall be mailed to the delinquent taxpayer at least ten (10) days prior to the sale. The notice shall also be printed in a newspaper of general circulation published in the county wherein the seized property is to be sold at least ten (10) days prior to the sale. If no newspaper is published in the county the notice shall be posted in three (3) public places ten (10) days prior to the sale. The
notice shall contain a description of the property to be sold, a statement of the entire amount due, the name of the delinquent taxpayer and a statement that unless the amount due is paid on or before the time of sale, the property or so much thereof as necessary shall be sold. The department, with board approval, shall give the purchaser a bill of sale for personal property or a deed for real property purchased at the sale. Any unsold property seized may be left at the sale at the risk of the delinquent taxpayer. If the monies received at the sale are in excess of the amount due the excess shall be given to the delinquent taxpayer upon his receipt therefor. If a receipt by the delinquent taxpayer is not given the department shall deposit the excess with the state treasurer as trustee for the delinquent taxpayer.

39
‑
17
‑
106
.

Licenses; permits.

(e)

The department may require bonds, or accept in lieu of a bond a certificate of deposit meeting the requirements of paragraph (vi) of this subsection, under this article as follows:

(iii)

The bond shall be executed with a corporate surety duly licensed to do business in this state. In lieu of a corporate surety bond, the department may accept a cash bond made payable to the department. Any interest earned on a cash bond shall accrue to the licensee. The bond shall be:

(C)

Guarantee payment of delinquent taxes, penalties and interest due under this article
, any collection fees otherwise authorized by law
and the return of the license issued under this article;

39
‑
17
‑
206
.

Licenses; permits.

(k)

The department may require bonds, or accept in lieu of a bond a certificate of deposit meeting the requirements of paragraph (vi) of this subsection, under this article as follows:

(iii)

The bond shall be executed with a corporate surety duly licensed to do business in this
state. In lieu of a corporate surety bond, the department may accept a cash bond made payable to the department. Any interest earned on a cash bond shall accrue to the licensee. The bond shall be:

(C)

Guarantee payment of delinquent taxes, penalties and interest due under this article
, any collection fees otherwise authorized by law
and the return of the license issued under this article;

39
‑
22
‑
108
.

Enforcement.

(c)

Penalties. The following shall apply:

(iii)

Taxes due together with interest, penalties
, collection fees
and costs shall be collectible by the department by appropriate judicial proceedings;

Section 2
.

This act is effective July 1, 201
7
.

(END)

1
HB0177