Chapter 3 (Government Collection) of the Economic Efficiency Bill (Legislative Amendments to Achieve Budgetary Goals for the 2023 and 2024 Fiscal Years), 5783-2023

The law expands the powers of the Center for the Collection of Fines, Fees, and Expenses. The Center will be able to collect additional types of debts, including statutory fines and financial sanctions, court-ordered compensation, and expenses incurred for executing hazard removal orders or similar orders. The law allows the Center's director to delegate powers to employees with at least five years of seniority, following appropriate training, excluding certain powers such as appointing a collector or proposing debt collection measures. In the case of a debt not paid on time, the debt will be collected by a collector appointed by the Center's director. The law specifies the order of payment allocation for different types of debts, with compensation to a victim of an offense being allocated first. The law allows the Center's director to seize a debtor's vehicle parked in a public area under certain conditions, as well as to seize rights to insurance benefits in the event of a vehicle being totaled or stolen. If 60 days have passed since receiving notice of a change in the vehicle's status, the seizure will be canceled. The law stipulates that the Center will pay a victim of an offense compensation up to a ceiling of 10,000 new shekels, minus the amount paid by the debtor. Funds paid to the debt account will be credited to the State Treasury plus interest. Collection procedure expenses will be borne by the debtor and will be credited first to the expenses account and then to the debt account. Before taking debt collection measures, a payment demand will be sent to the debtor by regular mail and simultaneously by service of process. If the debtor does not pay, an additional demand will be sent. If service cannot be performed, the Center's director may request the Registrar for Center Affairs to order substituted service. In certain cases, the Center's director or their deputy may order substituted service independently. The Center's director may, under certain circumstances, apply to the Registrar for Center Affairs to approve debt collection measures before sending a payment demand if there is a concern that the debtor will hide assets or leave the country. The Center's director may, at a debtor's request, spread out or defer debt payments, or exempt the debtor from late payment surcharges if convinced there are reasonable grounds for non-payment or special personal circumstances. The Center's director or an employee on their behalf may demand information about a debtor from public bodies for the purpose of collecting a debt or locating their assets. These bodies are required to provide the information. It is also possible to demand the debtor's phone numbers from communication providers for the purpose of making contact. The Center's director may apply to the Registrar for Center Affairs to request the appointment of a receiver for a debtor's asset if the debt amount exceeds 50,000 new shekels.

Source: חומר רקע