Section R21-1-7 - Costs of CollectionThe fee calculation and payment priority for accounts receivable collected by OSDC shall be applied according to the following methodology.
(1) Except as specified in Section R21-1-10, pursuant to Subsection 63A-3-502(4)(g)(i): (a) the costs of collection shall be charged on all accounts referred for collection; (b) the cost shall be calculated based on the dollars collected times the rate authorized by the legislature; and(c) the cost of collection shall be paid first from each payment.(2) The Penalty shall be calculated as a percent of the receivable balance referred for collection. (a) Two percent of each payment shall be applied to the outstanding penalty until the penalty is paid in full.(b) The penalty payment shall be calculated up to the authorized penalty percent set annually by the legislature, times the received payment amount.(c) The calculated penalty amount shall be paid after the costs of collection are determined and paid.(3) Two types of interest shall be charged on accounts referred to OSDC. (a) Postjudgment interest as established by Section 15-1-4 applies to receivables with judgments established by the courts with a sentencing date subsequent to May 5, 1999. (i) Postjudgment interest accrues on the unpaid judgment balance of the receivable.(ii) Postjudgment interest that accrues on a trust, or the trust portion of a receivable, shall be paid subsequent to the state's outstanding receivable.(b) Other receivables referred to OSDC are charged an interest rate pursuant to Subsection 63A-3-502 (4) (g)(iii)(B), referred to as OSDC interest. (i) OSDC accrued interest shall be paid from each payment up to 5% of the payment after the payment of the costs of collection and 2% penalty.(ii) OSDC accrued interest shall be paid pursuant to Subsection R21-1-7(4) on trust receivables or receivables including a trust account.(4) Each payment received on trust receivables shall be applied to the following items in the priority listed until the payment is fully disbursed:(a) First, cost of collection;(c) Third, the trust receivable balance up to the total amount of the receivable; and(d) Fourth, the accrued postjudgment interest.(5) Each payment received on receivables that include trust and state receivable balances shall be applied to the following items in the priority listed until the payment is fully disbursed: (a) First, cost of collection;(c) Third, the trust(s) receivable balance until paid in full;(d) Fourth, accrued post-judgment or OSDC interest on the state receivable balance;(e) Fifth, the state receivable balance; and(f) Sixth, the accrued trust post-judgment interest.(6) Each payment received on receivables owed only to the state shall be applied to the following items in the priority listed until the payment is fully disbursed: (a) First, cost of collection;(b) Second, 2% penalty payment;(c) Third, 5% accrued post-judgment or OSDC interest; and(d) Fourth, the receivable balance.(7)(a) Trust Payments sent to victims of crimes that are returned to OSDC because of bad addresses, shall be retained by OSDC, until the victim is located or statute requires transfer to another agency.(b) Payments shall continue to be applied to the trust balance until liquidated, and there after applied to other applicable debts.Amended by Utah State Bulletin Number 2019-17, effective 8/7/2019Amended by Utah State Bulletin Number 2021-07, effective 3/25/2021