AG 2002 01 28 (Regular) - Laserfiche WebLink

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I participating counties and cities. Five Star has managed the South Carolina Association of Counties debt setoff program since its inception five years ago. Successful match funds will be disbursed through Capital Management of the Carolinas, the agency that oversees administration of the North Carolina Capital Management Trust. Each county and city will need to have an account with Capital Management and will need to complete Capital Management's enclosed "Inter- Fund Authorization Transfer" form, designating its account number to receive the funds. Details regarding completion and transmission of this form and opening new accounts accompany the form in this packet (Addendum B). No additional charge will accrue for this service--Capital Management considers this an important service offering to its county and city clients. In order to participate in the program, each county and city must agree to comply with NCGS 10SA-1 through 105A-15. Each county and city that desires to participate should become familiar with the requirements therein. Certain appeal procedures, including notification to the debtor and debtor's right to a hearing must be followed. The county or city must send written notice to a debtor that the agency intends to submit the debt for collection by setoff. The notice must explain the debt and that the county or city intends to apply the debtor's refund against the debt. The notice must also inform the debtor that the debtor has the right to contest the matter by filing a request for a hearing with the county or city, must state the time limits and specifics of the hearing, and must state that failure to request a hearing within the required time will result in setoff of the debt. Please find enclosed a sample notification letter, a sample post hearing notification letter, and a tracking form for your use (Addendum C). A debtor who decides to contest a proposed setoff must file a written request for a hearing with the county or city within 30 days after the date the county or city mails a notice of the proposed action to the debtor. The governing body or a person designated by the governing body must hold the hearing. If the debtor disagrees with the decision rendered, the debtor may file a petition for a contested case under Article 3 of Chapter 150B of the General Statutes. The petition must be filed within 30 days after the debtor receives a copy of the county or city's decision. Please find enclosed a summary of the notification and appeals process (Addendum D). Please also note that no debt can be submitted to the clearinghouse until the entire notification and appeals process is completed for that debt. Local Government Debt Setoff Clearinghouse Program and Match Guidelines highlights include: · Only counties and cities may participate in the NC Local Government Debt Setoff Clearinghouse program. · The county or city may combine individual debts of at least $50 each by debtor name and social security number for submission to the program. Again, the individual debt to be combined must equal or exceed $50. Debts less than $50 cannot be combined to meet the $50 threshold. · No debts can be submitted until they are at least 60 full days past the local county or city's definition of delinquency. For example, if County A's policy defines a bill as delinquent after 30 days from its due date, County A must wait 90 days from the bill's due date before submitting the debt to the clearinghouse. · Debts must be submitted in the format and media required by the NC Local Government Debt Setoff Clearinghouse. · Per state law, priorities for refunds will be determined when the debt is initially submitted to the program. PLEASE NOTE THAT STATE AGENCIES HAVE PRIORITY OVER LOCAL AGENCIES FOR COLLECTION BY SETOFF. · Existing submitted debts may be adjusted i~pwards for interest, fees, penalties, etc., and will retain the original priority order, but not a later submitted new debt, even if for the same debtor. New debts will be date-stamped with the later submission date.. 2