Section 24-30-202.4 - Collection of debts due the state - state agency options - controller's duties - offsetting disbursements - definitions(1) A state agency is responsible for the collection of any debt owed to it. The controller shall advise the various state agencies concerning the collection of debts due the state through the agencies, in accordance with the fiscal rules promulgated by the controller in accordance with subsection (2) of this section, to achieve the prompt collection of debts due the agencies.(2)(a) The controller shall promulgate fiscal rules for collection of debts due to a state agency; except that the fiscal rules do not apply to those debts under the jurisdiction of the department of revenue referred to in section 24-35-108 (1)(a). The controller shall include in the fiscal rules any requirements for a state agency to refer a debt to private counsel or a private collection agency under subsection (2)(b) of this section or to certify a debt to the department of revenue under subsection (2.5) of this section.(b) A state agency may refer the debt to a private counsel or private collection agency. The controller shall establish a list of private counsel or private collection agencies that a state agency may contract with for debt collection services. The controller must select the private counsel or private collection agencies included in the list of private counsel or private collection agencies through competition pursuant to the "Procurement Code", articles 101 to 112 of this title 24.(2.5) A state agency may certify the amount of a debt due to the state to the department of revenue in order for the department to provide lottery offsets in accordance with section 24-30-202.7, and an offset of a state tax refund due the debtor under section 39-21-108 (3), and to the registry operator in order for the registry operator to provide limited gaming offsets in accordance with the "Gambling Payment Intercept Act", part 6 of article 35 of this title 24.(3)(a) (Deleted by amendment, L. 2021.)(b) (Deleted by amendment, L. 91, p. 839, § 1, effective January 1, 1992.)(c) The controller, with the consent of the state treasurer, is authorized to release or compromise any debt due the state, but only in accordance with the rules applicable thereto. Such rules may provide delegated authority and criteria for release and compromise of debts and may include provisions to prohibit the referral of debts for tax offset based on the age or amounts of debts.(d) Proceeds of debts collected by a state agency or by a private counsel or private collection agency are accounted for and paid into the fund from which the receivable was derived, and if the fund is no longer in existence, it is paid into the general fund.(f) and (g) (Deleted by amendment, L. 2021.)(3.5)(a)(I) The controller shall approve disbursements from state funds from the state's central accounting system in accordance with section 24-30-202 (2). If there is an unpaid balance or debt owed, a state agency may direct the controller to withhold the amount of the disbursement that does not exceed the amount of: (A) Any unpaid child support debt as set forth in section 14-14-104, or child support arrearages that are the subject of enforcement services provided pursuant to section 26-13-106, as certified by the department of human services;(B) Any unpaid balance of tax, accrued interest, or other charges specified in article 21 of title 39, that is subject to offset under section 39-21-108 (3), and owing by the payee according to the records of the controller;(C) Any unpaid debt owing to the state or any agency thereof by a payee, the amount of which is found to be owing as a result of a final agency determination or the amount of which has been reduced to judgment;(D) Any unpaid loan due to the student loan division of the department of higher education as set forth in section 23-3.1-104 (1)(p), found to be owing to the division by a payee as a result of final agency determination; or(E) Any amount required to be paid to the unemployment compensation fund pursuant to articles 70 to 82 of title 8, the amount of which has been determined to be owing as a result of a final agency determination or judicial decision or that has been reduced to judgment by the division of unemployment insurance in the department of labor and employment.(II) Any money withheld for payment of child support debt or child support arrearages pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer for disbursement by the department of human services. For all names and amounts certified by the department of human services pursuant to section 26-13-111, the controller shall provide to the department of human services the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(II) and any other identifying information as required by the department of human services.(III) Any money withheld for payment of an unpaid balance of tax, interest, or other charges specified in subsection (3.5)(a)(I) of this section and subject to offset under section 39-21-108 (3), is deposited with the state treasurer. For all names and amounts submitted by the executive director of the department of revenue pursuant to section 39-21-114 (10), the controller shall provide to the department the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(III).(IV) Any money withheld for payment of an unpaid debt owing to the state pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer. For all names and amounts certified by a state agency pursuant to subsection (3.5)(a) of this section, the controller shall provide to the state agency the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(IV).(V) All money withheld for payment of a student loan division debt pursuant to subsection (3.5)(a)(I) of this section is deposited with the state treasurer for disbursement by the state treasurer to the division. For all names and amounts certified by the division pursuant to section 23-3.1-104 (1)(q), the controller shall provide to the division the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(V).(VI) The controller shall deposit with the state treasurer any money withheld for payment of unemployment compensation debt pursuant to subsection (3.5)(a)(I) of this section, and the state treasurer shall credit the money to the unemployment compensation fund. For all names and amounts certified by the division of unemployment insurance, the controller shall provide to the division the payees' names and associated amounts deposited with the state treasurer pursuant to this subsection (3.5)(a)(VI).(VII) The controller shall pay any approved disbursement in excess of the unpaid balance or debt to the approved payee.(b) In the event that there are debts for unpaid child support, as set forth in section 26-13-111, debts for an unpaid balance of tax, interest, or other charges pursuant to article 21 of title 39, and other debts owing to the state or any agency thereof as set forth in subsection (3.5)(a)(I) of this section, the amount withheld pursuant to subsection (3.5)(a)(I) of this section is credited to the unpaid debts and is applied first to those unpaid debts in the order they appear in this subsection (3.5)(b), and any remaining amounts withheld pursuant to subsection (3.5)(a)(I) of this section is applied based on the priority determined by the controller.(c) (Deleted by amendment, L. 2021.)(4) (Deleted by amendment, L. 99, p. 689, § 9, effective August 4, 1999.)(5) (Deleted by amendment, L. 2021.)(6) Any contract awarded to private counsel or private collection agency shall require that the contractor remain licensed under the contractor's respective occupational licensing statutes or rules during the term of the contract. The contract shall require that a private counsel or private collection agency shall at all times act in compliance with the provisions of the "Colorado Fair Debt Collection Practices Act", article 16 of title 5, and in compliance with any rules promulgated by the controller.(7) (Deleted by amendment, L. 2021.)(8)(a) A collection fee for a private collection agency shall not exceed eighteen percent of the debt, and the fee for private counsel shall not exceed twenty-five percent of the debt. All fees collected and retained by a private collection agency or private counsel as payment for services collecting a debt that are not deposited in the state treasury are not subject to article 36 of title 24 or section 20 of article X of the state constitution.(b) The debtor is liable for repayment of the total amount of a debt due to the state, including collection fee charged by the private collection agency or private counsel, plus allowable fees and costs pursuant to subsection (8)(c) of this section and the delinquency charge pursuant to section 24-79.5-102.(c) If a debt due to the state is litigated and the state prevails, in addition to the collection fee, the debtor shall also be liable for the following:(I) Reasonable attorney fees as may be determined by the court;(II) Court costs as described in section 13-16-122; and(III) Fees incurred by the state's attorney in processing the litigation and collection of any judgment.(d) If a debt due to the state is in the form of a check, draft, or order not paid upon presentment, the state agency is entitled, in addition to a collection fee, if applicable, to collect damages as specified in section 13-21-109 (1)(b)(II) and (2)(a).(9) and (10) (Deleted by amendment, L. 2021.)Amended by 2021 Ch. 12, § 1, eff. 3/21/2021.Amended by 2018 Ch. 314, § 2, eff. 7/1/2019.Amended by 2018 Ch. 155, § 9, eff. 4/23/2018.Amended by 2017 Ch. 260, § 20, eff. 8/9/2017.Amended by 2013 Ch. 296, § 1, eff. 8/7/2013.L. 75: Entire section added, p. 798, § 2, effective July 1. L. 83: (2) amended, p. 793, § 3, effective June 3. L. 84: (3)(a) and (3)(d) amended and (3)(e) added, p. 1013, § 2, effective April 27. L. 91: (3)(a) amended and (7) added, p. 802, § 1, effective May 24; (2), (3)(a)(I), (3)(b), (3)(d), (3)(e), and (4) amended and (5) and (6) added, p. 839, § 1, effective 1/1/1992. L. 95: (1), (2), and (3)(a) amended, p. 642, § 36, effective July 1. L. 97: (3.5) added, p. 941, § 2, effective July 1. L. 99: (3)(d), (4), and (7) amended, p. 689, § 9, effective August 4. L. 2002: (3)(a)(II) amended, p. 101, § 4, effective August 7. L. 2006: (1), (2), (3)(c), (3)(d), and (5) amended and (2.5), (8), and (9) added, p. 1159, § 2, effective May 25. L. 2010: (2), (8)(a), and (8)(b) amended, (HB 10-1181), ch. 1619, p. 1619, § 2, effective June 7; (2) and (3)(a)(II) amended, (SB 10-003), ch. 1850, p. 1850, § 28, effective June 9. L. 2011: (3)(f) added, (SB 11-226), ch. 733, p. 733, § 3, effective May 19; (3)(g) added, (SB 11-051), ch. 1331, p. 1331, § 1, effective August 10. L. 2012: IP(3.5)(a)(I), (3.5)(a)(I)(E), and (3.5)(a)(VI) amended, (HB 12 -1120), ch. 107, p. 107, § 22, effective June 1. L. 2013: (2.5) amended and (10) added, (SB 13-247), ch. 1581, p. 1581, § 1, effective August 7. L. 2017: (6) and IP(9) amended, (HB 17-1238), ch. 1173, p. 1173, § 20, effective August 9. L. 2018: (2) amended, (HB 18-1047), ch. 1096, p. 1096, § 9, effective April 23; (8)(a) amended, (HB 18-1057), ch. 1896, p. 1896, § 2, effective 7/1/2019. (1) Amendments to subsection (3)(a) by Senate Bill 91-15 and Senate Bill 91-140 were harmonized.
(2) Amendments to subsection (2) by Senate Bill 10-003 and House Bill 10-1181 were harmonized.
(3) The effective date for amendments to this section by House Bill 12-1120 (chapter 27, Session Laws of Colorado 2012) was changed from August 8, 2012, to June 1, 2012, by House Bill 12S-1002 (First Extraordinary Session, chapter 2, p. 2432, Session Laws of Colorado 2012.)
(4) Subsection (3)(e)(II) provided for the repeal of subsection (3)(e), effective July 1, 2021. (See L. 2021, p. 67 .)
(1) For the legislative declaration contained in the 1995 act amending subsections (1), (2), and (3)(a), see section 112 of chapter 167, Session Laws of Colorado 1995. (2) For the legislative declaration in the 2010 act amending subsections (2) and (3)(a)(II), see section 1 of chapter 391, Session Laws of Colorado 2010.