§40-35.5  Assessment and collection ofservice charges for dishonored payments.  (a)  Unless otherwise provided bylaw or rules, every public accountant receiving revenue or other moneys onaccount of the State shall assess and collect a service charge in the amount of$25 for any remittance for payment that the public accountant receives that isdishonored for any reason.  A public accountant shall require payment of thefull amount of the dishonored payment, plus the service charge in cash, bycertified or cashier's check, or by bank or postal money order.  The amount ofthe service charge shall be deposited with the director of finance as arealization of the general fund.

(b)  The service charge shall be enforced asfollows:

(1)  For charges due on dishonored checks written orelectronic funds transfers made for payment of any tax administered by thedepartment of taxation under title 14, the charges shall be nonwaivablepenalties and shall be made a part of the tax for which the payment was made inthe same manner as penalties are made part of the tax under section 231-39; and

(2)  For other dishonored payments, if payment of thefull amount of the dishonored payment plus the service charge is not made, thepublic accountant shall refer the entire matter, including the service chargedue on the dishonored payment, to the department of the attorney general or acollection agency bonded under chapter 443B for collection.

(c)  All penalties for dishonored paymentsshall be debts due the State.

(d)  Penalties collected for dishonoredpayments by the department of taxation pursuant to this section shall becollected in the same manner as are taxes under chapter 231.  The penalty shallbe a realization of the general fund in the same manner as other penaltiescollected by the department of taxation.

(e)  No interest shall be charged on anypenalty. [L 1981, c 45, §1; am L 1995, c 97, §1; am L 1997, c 177, §2; am L2007, c 240, §1]