For the purposes of this subchapter, the term:
(1) "Central Collection Unit" means the Central Collection Unit established within the Office of Finance and Treasury of the Office of the Chief Financial Officer to implement this subchapter.
(2) "Delinquent debt" means any financial obligation owed by a person to a District agency that remains unpaid more than 90 days after it was due; provided, that the term shall not include tax debts or child-support debts.
(3) "Delinquent Debt Fund" or "Fund" means the Delinquent Debt Fund established by § 1-350.04.
(4) "District agency" means any District office, department, or agency, including independent agencies, but not including the District of Columbia Water and Sewer Authority.
(5) "Person" means any natural person, trust, corporation, limited liability corporation, partnership, limited liability partnership, or any other business organization.
(Sept. 20, 2012, D.C. Law 19-168, § 1042, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
Law 19-168, the "Fiscal Year 2013 Budget Support Act of 2012", was introduced in Council and assigned Bill No. 19-743, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 15, 2012, and June 5, 2012, respectively. Signed by the Mayor on June 22, 2012, it was assigned Act No. 19-385 and transmitted to both Houses of Congress for its review. D.C. Law 19-168 became effective on September 20, 2012.
Miscellaneous Notes
Short title: Section 1041 of D.C. Law 19-168 provided that subtitle E of title I of the act may be cited as "Delinquent Debt Recovery Act of 2012."
(a) Notwithstanding any other provision of law, regulation, or Mayor's order, each District agency shall transfer and refer delinquent debts to the Central Collection Unit within 60 days after a financial obligation owed by a person to the District becomes a delinquent debt.
(b) A transfer and referral of a delinquent debt to the Central Collection Unit shall include all documentation and information relating to the delinquent debt, including:
(1) Documents that verify the existence and amount of the delinquent debt;
(2) The name and last known address of the delinquent debtor; and
(3) Any notices issued to the delinquent debtor demanding payment.
(c) The procedure for transfer and referral of delinquent debt by each District agency to the Central Collection Unit, including the format and means of delivery of the information, shall be established by the Central Collection Unit within 120 days of September 20, 2012.
(Sept. 20, 2012, D.C. Law 19-168, § 1043, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
(a) The Central Collection Unit may prescribe, impose, and collect fees from debtors to cover actual costs or expenses associated with the collection of delinquent debt.
(b) In addition to the authority to impose and collect fees to cover actual costs or expenses associated with the collection of delinquent debt, the Central Collection Unit may prescribe and impose a fee to be paid by each person who tenders in payment of a financial obligation owed to the District, including a tax, assessment, fee, citation, or charge, a check that is subsequently dishonored or not duly paid, or whose delinquent debt is transferred and referred to the Central Collection Unit for action. The amount of the fee shall be set by regulations established by the Central Collection Unit.
(Sept. 20, 2012, D.C. Law 19-168, § 1044, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
There is established within the General Fund of the District of Columbia a special nonlapsing fund known as the Delinquent Debt Fund ("Fund"). Funds allocated to the Central Collection Unit through the District's annual Budget and Financial Plan, all delinquent debts collected by the Central Collection Unit, and all fees authorized by § 1-350.03 shall be deposited into the Fund; provided, that any funds deposited in the Fund before the then-current fiscal year, including any interest earned on such funds before the then-current fiscal year, the money remaining in the Fund after the payment of all costs and expenses accrued before the then-current fiscal year, less 10% of such remainder, which shall be retained as a reserve operating balance, shall be transferred or revert to the General Fund of the District of Columbia. All funds deposited in the Fund shall be administered and used by the Central Collection Unit, subject to appropriation by Congress, to conduct the authorized activities of the Central Collection Unit.
(Sept. 20, 2012, D.C. Law 19-168, § 1045, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
(a) If a person liable to pay a delinquent debt neglects or refuses to pay the delinquent debt after demand by the Central Collection Unit, the amount, including any interest and any fees imposed for collection of the delinquent debt that may accrue, shall be a lien in favor of the District of Columbia upon all property (including rights to property), whether real or personal, belonging to the person, and shall have the same effect as a lien created by judgment. The lien shall attach to all real or personal property (including rights to property) belonging to, or acquired by, the person at any time during the period of the lien.
(b) The lien imposed by subsection (a) of this section shall be deemed to have arisen on the 91st day after the debt became due and owing to the District and shall continue until the delinquent debt is satisfied or becomes unenforceable.
(c) The lien imposed by subsection (a) of this section shall not be valid against a bona fide purchaser for value, holder of a security interest, mechanic's lien, or judgment lien creditor until the lien has been filed with the Recorder of Deeds by the Central Collection Unit.
(d) Upon transferring a delinquent debt to the Central Collection Unit, a transferring agency's authority to file a lien for that debt shall terminate.
(Sept. 20, 2012, D.C. Law 19-168, § 1046, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
(a) Subject to subsection (b) of this section, the Central Collection Unit, in its discretion, may:
(1) Enter into payment plan agreements with persons for payment of delinquent debt; provided, that no payment plan shall exceed a term of 5 years;
(2) Discharge as uncollectible a delinquent debt that is older than 10 years;
(3) Settle a delinquent debt for less than the full amount owed;
(4) Report delinquent debts to credit agencies;
(5) Sell delinquent debt; and
(6) Refer a delinquent debt to the Office of the Attorney General for the District of Columbia for civil or administrative collection or enforcement actions.
(Sept. 20, 2012, D.C. Law 19-168, § 1047, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
(a) Each District agency that transfers and refers a delinquent debt of more than $100 to the Central Collection Unit for collection shall, within 5 days of the transfer and referral, suspend the granting or issuance of any District license or permit to the delinquent debtor. The suspension shall remain in effect until the Central Collection Unit notifies the appropriate District agency that the delinquent debt has been satisfied.
(b) Each District agency that suspends the granting or issuance of a District license or permit pursuant to this section shall provide written or electronic notice of the suspension to the Central Collection Unit within 5 days of the suspension.
(c) The Central Collection Unit shall provide to all District agencies, within 10 days of the end of the preceding month, a list of the names of all persons currently subject to suspension of the granting or issuing of a District license or permit due to delinquent debt of more than $100.
(Sept. 20, 2012, D.C. Law 19-168, § 1048, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
The Central Collection Unit may enter into reciprocal agreements for the collection of delinquent debts with any state, local, or municipal government.
(Sept. 20, 2012, D.C. Law 19-168, § 1049, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
(a)(1) The Central Collection Unit may collect delinquent debt from District employees by deducting delinquent debt from the biweekly pay of District employees, in an amount not to exceed 10% of an employee's gross biweekly pay, until the delinquent debt is fully satisfied.
(2) If a District employee's wages are subject to a preexisting attachment or attachments, the Central Collection Unit shall not exercise its authority under paragraph (1) of this subsection until the preexisting attachments have been satisfied, in order of priority.
(b)(1) The Central Collection Unit may collect delinquent debt from District contractors by deducting the delinquent debt from any amounts owed to a District contractor pursuant to a contractual obligation between the District and the contractor.
(2) For the purposes of this subsection, the term:
(A) "Contractual obligation" includes an obligation arising from a contract or a grant agreement described in subparagraph (B) of this paragraph that is entered into after September 20, 2012.
(B) "District contractor" includes any person who receives payments from the District pursuant to a contract or a grant agreement that requires the grantee to perform services in consideration for the payment of the grant amount.
(c) The Central Collection Unit may collect delinquent debts by offsetting District tax refunds and District lottery winnings against delinquent debts owed to the District.
(Sept. 20, 2012, D.C. Law 19-168, § 1050, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
The Central Collection Unit and any outside parties it engages to collect delinquent debt shall fully comply with the Fair Debt Collection Practices Act, approved September 20, 1977 (91 Stat. 874; 15 U.S.C. § 1692 et seq.), Chapter 39 of Title 28, and all other federal and District laws and rules that govern collection of delinquent debt.
(Sept. 20, 2012, D.C. Law 19-168, § 1051, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
On or before March 1 of each year, the Central Collection Unit shall issue a report to the Mayor and the Council that includes:
(1) The amount of delinquent debt collected in the preceding fiscal year;
(2) The amount of uncollected delinquent debt owed to the District; and
(3) A summary of the efforts made to collect delinquent debt owed to the District and the challenges that remain for collecting it.
(Sept. 20, 2012, D.C. Law 19-168, § 1052, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
Within 120 days of September 20, 2012, the Chief Financial Officer shall issue rules to implement the provisions of this subchapter.
(Sept. 20, 2012, D.C. Law 19-168, § 1053, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For history of Law 19-168, see notes under § 1-350.01.
