Board of Examiners designates $2.89 million as bad debt for Division of Industrial Relations

The State of Nevada Board of Examiners voted April 8 to designate $2,888,777.19 as bad debt for the Department of Business and Industry, Division of Industrial Relations under NRS 232.605.

The designation moves the balances the division and the Comptroller’s Office determined to be uncollectible off the state’s active receivables. Victoria Carreon, identified in the meeting as Administrator of the Division of Industrial Relations, told the board the division initially attempts collection and then refers delinquent accounts to the Comptroller’s Office, which “utilize[s] a collections agency” to pursue recovery and has determined the listed debts are not collectible.

Secretary of State Cisco Aguilar pressed staff for additional detail on collection efforts and whether liens or legal actions are pursued, saying, “Just wondering what efforts were made to collect this revenue or this money?” Carreon replied that the division sends demand letters and follows up by phone before referral to the Comptroller. Board staff said the division itself does not initiate legal action but deferred to the Comptroller’s Office for the full scope of collection procedures.

General counsel and other board members said similar questions had been raised previously and noted many accounts involve businesses that have gone out of business, which limits recovery options. A board member offered to follow up with the Comptroller’s Office for a written explanation of collection practices.

A motion to approve the designation was called and passed; members voting orally signified “aye.” The board did not provide a detailed itemized list of the individual accounts during the public meeting.

The action was recorded as requested by the Division of Industrial Relations pursuant to NRS 232.605.