(a) All City departments and offices, except the Department of Airports, Harbor and Water and Power, (Offices or Departments) shall process delinquent accounts receivable as provided in this section. The Offices or Departments shall refer all delinquent accounts receivable, and all obligations and claims owing to the City, in excess of $5,000 each that have not been paid in full within 45 days of delinquency to the Director of Finance who shall undertake whatever reasonable efforts, if any, the Director deems appropriate to effectuate collection of those items, including Small Claims Court actions. Thereafter, the Director may refer delinquent accounts receivable to the City Attorney for whatever action the City Attorney deems appropriate or return the accounts to the originating Offices or Departments for processing in accordance with provisions of this Code or the Los Angeles Municipal Code regarding uncollectible accounts receivable. Offices or Departments shall refer all delinquent accounts receivable and all obligations and claims owing to the City, in the amount of $5,000 or less each that have not been paid in full within 45 days of delinquency either to the Director of Finance or to a collection agency selected by the City Council for those purposes, in accord with guidelines developed by the Director for the collection of outstanding receivables. If delinquent accounts receivable are referred to the Director, the Director shall undertake whatever reasonable efforts, if any, the Director deems appropriate to effectuate collection of those items, including Small Claims Court actions. Thereafter, the Director may refer delinquent accounts receivable to the City Attorney for whatever action the City Attorney deems appropriate or return the accounts to the originating Offices or Departments for processing in accordance with provisions of this Code or the Los Angeles Municipal Code regarding uncollectible accounts receivable. If delinquent accounts receivable are referred to a collection agency, the collection agency shall undertake whatever reasonable efforts, if any, the collection agency deems appropriate, in accordance with the terms and conditions of its contract with the City, to effectuate collection of those items. Thereafter, the collection agency shall return the accounts to the originating Offices or Departments, which may refer them to the Director of Finance for handling as set forth above or process them in accordance with provisions of this Code or the Los Angeles Municipal Code regarding uncollectible accounts receivable, all in accordance with guidelines developed by the Director for the collection of outstanding receivables. Unless otherwise established by ordinance, rule, regulation or resolution, the City shall deem an account to be delinquent if not paid within 30 days of billing. In the case of City administered tax accounts, referral as set forth in this section shall occur at the time reasonable field collection efforts have failed or within 45 days following completion of administrative proceedings for accounts subject to the provisions of Section 21.16 of Chapter 2, Article 1 of the Los Angeles Municipal Code. In the case of emergency ambulance service accounts, referral as set forth in this section shall occur at the time reasonable collection efforts have failed but not later than 9 months from the date of initial billing.
(b) The provisions of this section shall not repeal, supersede or otherwise affect any other provision or procedure established by any section of this Code or by any ordinance, rule, regulation or resolution of the City or its departments, boards or commissions for the handling or collection of accounts receivable or claims by the boards, bureaus, commissions or departments of the City. However, if after the authorized Offices’ or Departments’ procedures have been exhausted, an account is still delinquent, then the account shall be referred as set forth in this section within 45 days following completion of the procedure.
(c) Persons indebted to the City of Los Angeles for delinquent accounts or any obligations owing to the City, upon referral to the Director of the Office of Finance or to a collection agency in accordance with Subsection (a) of this Section, shall be liable for the underlying obligation and all costs incurred by the City to effectuate collection of those items, including collection agency fees, to the extent allowed by State and Federal laws.
SECTION HISTORY
Added by Ord. No. 150,766, Eff. 5-20-78.
Amended by: Ord. No. 163,642, Eff. 7-1-88; Ord. No. 167,979, Eff. 7-16-92; Ord. No.169,250, Eff. 1-21-94; Ord. No. 174,618, Eff. 7-12-02; In Entirety, Ord. No. 175,396, Eff. 9-21-03; Subsec. (c) added, Ord. No. 177,469, Eff. 5-28-06; Subsec. (a), Ord. No. 179,496, Eff. 2-7-08; Title and Subsecs. (a) and (c), Ord. No. 180,644, Eff. 5-29-09; Subsec. (a), Ord. No. 180,909, Eff. 11-20-09.