New Jersey – Bill Authorizes Use of Fraud Prevention Contractors

2/13/2013

SALT Report 2145 – The New Jersey State Legislature passed a bill that allows the Division of Taxation to enter into an agreement with fraud prevention contractors to assist the Department with the collection of unpaid taxes. The language of A3027 follows:

Section 1 of P.L.1992, c.172 is amended to read:

1. a. Notwithstanding any other provision of law, the director may enter into agreements with one or more private persons, companies, associations or corporations providing debt collection services for the purpose of collecting past due taxes, interest, additions to tax and penalties.  Any such agreement shall contain provisions prohibiting the use of unfair debt collection practices by the provider of debt collection services, which provisions shall include, without limitation, restrictions upon the conduct of the provider of debt collection services substantially similar to those contained in the “Fair Debt Collection Practices Act.”

b. Notwithstanding any other provision of law, the director may enter into agreements with one or more private persons, companies, associations or corporations providing fraud prevention services.

This Bill was approved by both the Assembly and the Senate on January 25, 2013 and is effective immediately.

For Further Information

New Jersey State Legislature – A 3027, Laws 2013