1 Colo. Code Regs. § 101-1-10-1

Current through Register Vol. 47, No. 24, December 25, 2024

Rule 1 CCR 101-1-10-1 - COLLECTION OF DEBTS DUE TO THE STATE

1.AUTHORITY

§5-16-105, et.seq, C.R.S. (Colorado Fair Debt Collections Practices Act)

§24-30-202, C.R.S (Collection of State Moneys)

§ 24-30-202.4 (Collection of Debts Due the State)

2.DEFINITIONS

2.1. Class of Debt - Debt with similar characteristics; classification varies by State Agency.

2.2. Commission - A percentage of the debt balance owed or set amount that may be paid to a Private Collection Agency upon collecting the debt.

2.3. Debt - Any amount of money owed to the state that is past due.

2.4. Fees, Fines and Charges - Amounts that may be added to principal as authorized by statute.

2.5. Interest - Interest may be added as authorized by statute.

2.6. Price Agreement - See Fiscal Rule 3-3 (State Contracts)

2.7. Private Collection Agency (PCA) - A licensed 3rd party contractor authorized to collect on State debt in accordance with the Colorado Fair Debt Collections Practices Act.

2.8. Private Counsel - A licensed 3rd party attorney that is authorized to negotiate and commence legal action for the collection of debt.

2.9. Vendor Offset (See §24-30-202.4, C.R.S.)

3.RULE

3.1. State Agencies shall follow this Fiscal Rule when collecting debts due to the State.

4.STATE AGENCY ACCOUNTS RECEIVABLE COLLECTIONS PLAN

State Agencies shall submit the following to the Office of the State Controller by November 1 of each year:

4.1. Collections Plan including significant classes of debt with a description of the characteristics of the debt along with the collection method for each class, notifications procedures for each class, and rationale for that determination; and

4.2. Report, by class of debt, the receivable balance of individual debts, past due balance, and the change in the past due debt balances for the chosen collection method for the preceding fiscal year.

5.METHODS OF COLLECTING DEBT DUE TO THE STATE

5.1. Debt may be collected by the following processes:

5.1.1. Internally (by the State Agency)

5.1.2. Utilizing a PCA

5.1.2.1. State Agencies may use one or more licensed PCAs to collect debt that are included in the State Price Agreements.

5.1.2.2. State Agencies shall add the PCA's commission to the debt collected by the PCA. The commission shall not exceed 18% of the debt collected, or 25% when a Private Counsel is utilized. The PCA shall retain the commission and remit the balance to the State Agency. The remittance shall be the net amount of the debt collected, not the gross amount.

5.1.2.3. State Agencies shall refer to the Fiscal Procedures Manual for accounting for collections using PCAs; and

5.1.2.4. State Agencies shall send debt to PCAs that has been outstanding for 6 years or less, and not debt that has been outstanding for more than 6 years so the PCAs will be in compliance with the Colorado Fair Debt Collections Practices Act.

5.1.3. State tax offset through the Colorado Department of Revenue;

5.1.4. Federal tax offset using the Bureau of the Fiscal Service, Treasury Offset Program (TOP);

5.1.5. Vendor Offset using the OSC's Central Accounting and Vendor Operations Unit; and

5.1.6. Other means of collection approved by the State Controller.

6.RULE

6.1. State Agencies shall collect debt owed to them in accordance with this Fiscal Rule.

7.DEBT ALLOWANCE

7.1. State Agencies shall follow the Fiscal Procedures Manual regarding debt allowance.

8.DEBT FORGIVENESS

8.1. Debt may be forgiven by a written request to the Office of the State Controller.

8.1.1. Certain debt is not eligible for forgiveness such as bankruptcy, deceased debtors, and certain student loans.

8.1.2. The State Controller shall approve the request, notify the Agency that more information is needed, or disapprove the request. If the State Controller approves the request, the State Controller shall submit the request to the State Treasurer for review.

8.2. Considerations for Forgiveness - The State Controller and the State Treasurer shall use the following considerations when evaluating a debt forgiveness request:

8.2.1. The amount of the debt;

8.2.2. The age and activity of the debt. Forgiveness consideration if the debt is 6 years or greater in age and there has been no (payment) activity, offset or any legal action on the account for 3 years;

8.2.3. The information available on the debt. Forgiveness consideration if information on the debtor is not available, such as full name, social security number, and address; and

8.2.4. The level of effort to collect within available resources. Forgiveness consideration if the State Agency has demonstrated an attempt to collect the debt without success and the estimated cost of collection exceeds the amount of the debt.

9.EXCEPTIONS TO RULE

This Fiscal Rule does not apply to Institutions of Higher Education and any statutorily exempted collection activities.

1 CCR 101-1-10-1

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024