Accounts Receivable Collections Administrative Rule (Page 7 of 13) in pdf

Central Collection Services shall use all available internal State collection capabilities within 180 days

after referral of the debt to collect on the account. After 180 days, if no payments are promised or

received, Central Collection Services shall assign the debt to Private Counsel or to Private Collection

Agencies. See Section 3.20.

3.10

Debt Offset

.01

The following debts shall be referred for Offset as follows:

All Participating Entity debts shall be submitted to Central Collection Services for

collection through offset of payments to State Vendors.

All Participating Entity debts shall be submitted to the Department of Revenue for

collection through offset of payments of Tax refunds, Gaming winnings, and Lottery

winnings.

An Institution of Higher Education not participating in Central Collection Services

collection activities may submit its debts to the Central Collections Services for offset

against State Tax refund payments, Gaming winnings, and Lottery winnings for offset

against payments to State Vendors.

The fee for debt offset only programs shall be at 25% of the current Central Collection

Services commission rate.

.02

Central Collection Services and any Institution of Higher Education not participating in collection

by Central Collection Services shall make a good faith effort to notify the debtor in writing of the

State's intent to offset. Such notice shall set forth the name of the debtor, the amount of the

claimed debt, and the intention to offset any payment due the debtor to reduce or satisfy the debt.

The notice shall describe any hearing process available to the debtor regarding the offset.

.03

Taxpayers subject to offset of Tax refunds, Gaming winnings or Lottery winnings for debts due

the State may request an Administrative Hearing. Such notification shall include information on

the debtor’s right to object to the offset and to request an Administrative Hearing pursuant to the

rules of the Department of Personnel & Administration. The debtor shall be required to submit a

written request for hearing. Such written request for hearing shall be filed with Central Collection

Services within 30 days of the postmark on the notification that an offset has occurred or will

occur. If a hearing is requested by the debtor, the hearing shall be held within 30 calendar days

after Central Collection Services’ receipt of such request. Failure to request such a hearing in

writing, within the 30 day period, shall be deemed a waiver of the opportunity to contest the offset.

Upon receipt of a debtor’s request for a hearing, the Central Collections Services Administrator

.04

shall schedule a hearing to be held within 30 days from the date the request was received. This

hearing shall determine if the offset is proper.

If the State cannot schedule a hearing within 30 days from the date a request is received, Central

Collection Services shall refund any funds offset to the taxpayer. Payment to the debtor of the

offset amount shall not constitute a compromise, release, or partial or full waiver by the State of

the remaining balance of the debt.

The Central Collection Services Administrator shall have the authority as set forth in 24-4-105,

C.R.S., to schedule and hold hearings. The Hearing Officer shall ensure that hearing decisions

Accounts Receivable Collections Administrative Rule Page 7

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