Nevada Administrative Code Chapter 353C - Collection of Debts Owed to State Agency
Nevada Administrative Code — Chapter 353C: Collection of Debts Owed to State Agency
Overview
NAC Chapter 353C governs the procedures and rules for the collection of debts owed to state agencies in Nevada. This includes debts arising from overpayments, fees, fines, penalties, or any other sums due to state entities. The chapter provides administrative mechanisms to recover such debts efficiently and fairly while protecting debtor rights.
Purpose and Scope
Debt recovery: Ensures timely and effective collection of amounts owed to the state to maintain fiscal responsibility.
Uniform procedures: Establishes consistent collection practices across various state agencies.
Protection of rights: Incorporates due process safeguards to ensure fairness for debtors.
Key Provisions of NAC Chapter 353C
Definitions:
Defines important terms such as “debt,” “debtor,” “state agency,” “collection agency,” and “offset.”
Clarifies which debts are subject to collection under these rules.
Notification and Demand for Payment:
Agencies must provide written notice to the debtor detailing the amount owed, basis for the debt, and payment instructions.
The notice includes information about the debtor’s rights to dispute or seek a hearing.
Payment Arrangements:
The rules allow agencies to enter into installment agreements or other payment plans with debtors when appropriate.
Terms of payment plans, including duration and amount, are specified.
Use of Collection Agencies:
Agencies may contract with third-party collection agencies to recover debts.
Guidelines for such contracts and oversight of collection agency activities are provided.
Administrative Hearings:
Debtors can request a hearing to dispute the debt or seek reconsideration.
Hearings are conducted in accordance with Nevada’s Administrative Procedure Act.
Procedures for filing requests, presenting evidence, and appealing decisions are included.
Offset Procedures:
Agencies may offset debts against payments owed to the debtor from the state, such as tax refunds or other benefits.
The chapter outlines the conditions and process for applying offsets.
Reporting and Recordkeeping:
Agencies must keep records of debts, collection efforts, payments, and communications with debtors.
Reporting requirements to state oversight bodies are specified.
Penalties and Interest:
Provisions for interest on unpaid debts and penalties for late payment are included, subject to statutory authority.
Relevant Case Law Principles
Although specific Nevada case law directly interpreting NAC Chapter 353C may be limited, important general legal principles about administrative debt collection apply:
Due Process Requirements:
Courts require that debtors receive proper notice and an opportunity to be heard before enforcement actions like wage garnishments or offsets are undertaken.
See Mathews v. Eldridge, 424 U.S. 319 (1976) for foundational principles on procedural due process in administrative actions.
Right to Administrative Hearing:
The Nevada Administrative Procedure Act guarantees a hearing before adverse actions affecting a person’s rights.
Debt collection enforcement actions are considered quasi-adjudicative, requiring procedural safeguards.
Agency Discretion and Judicial Review:
Courts generally defer to an agency’s expertise and decisions unless they are arbitrary, capricious, or not supported by substantial evidence.
Agencies must follow their own rules and statutory authority strictly.
Collection and Offsets:
Courts have upheld state agencies’ rights to offset debts against state payments, provided proper notice and opportunity to contest are given.
General Nevada Case Law Principles Applicable to NAC 353C
State ex rel. Department of Taxation v. District Court, 110 Nev. 1014 (1994):
Affirmed the authority of state agencies to collect debts through administrative processes and the importance of procedural safeguards.
In re Appeal of Doe, 125 Nev. 100 (2009):
Highlighted the necessity for agencies to comply with statutory and administrative procedures when collecting debts and conducting hearings.
Administrative Procedure Act Cases:
Cases interpreting Nevada’s Administrative Procedure Act reinforce the right of debtors to notice, hearing, and appeal, applicable in debt collection enforcement.
Summary
NAC Chapter 353C provides a comprehensive framework for state agencies in Nevada to collect debts owed to them, balancing effective recovery with debtor protections. It mandates clear notification, payment options, hearings, and oversight of collection activities, including third-party involvement and offsetting.
Nevada courts generally support agencies’ collection authority under these rules but require adherence to due process and fair administrative procedures. Debtors have rights to dispute debts and obtain hearings before enforcement actions proceed.
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