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Senate clarifies state debt-collection authority after question on property seizures
Summary
Senators approved a bill that clarifies state debt-collection authority including rare instances when the state may take title to real property for restitution, following floor questions about current practice.
The Utah Senate passed Senate Bill 2 78, State Debt Collection Amendments, after a floor exchange about whether the State Debt Collection Office can hold title to real property in execution or collection proceedings.
Sponsor Senator Weiler said the bill modernizes state debt collection practices and “provides clear guidelines on how state agencies handle delinquent accounts,” improving efficiency while balancing individual rights. When Senator McKay asked for clarification about language that would allow the office to hold title to property “incidental to execution or collection proceedings,” Weiler said the practice is rare but had occurred: the office had recently seized a house to satisfy victim restitution and, lacking clear statutory authority, transferred title to another agency. The bill codifies that limited authority instead of requiring transfer to a different agency.
Weiler said the department would use that authority only in limited circumstances — for example, where victim restitution is owed and the debtor has not made an effort to pay. After discussion, the Senate circled the bill (temporarily held) and then later voted to pass it.
Senate Bill 2 78 passed on a roll-call vote of 26 yeas, 0 nays, 3 absent and will be transmitted to the House.
