AG 2002 12 16 (Regular) - Laserfiche WebLink

Home Browse Search

information, N.C.G.S. Chapter 10SA stipulates that delinquent debt is a sum totaling at least $$0 owed to a county or city (claimant agency) that has accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is. an .outstanding judgment for the sum. As a reminder, we also require that a full 60 days must lapse after.a local government labels the debt as delinquent before the debt can be submitted to the clearinghouse. The county or city must furnish the full name and social security number of each debtor. Beginning January 1, 2003, counties and cities will no longer be charged $15 for each successful match of delinquent debt against an individual debtor's tax refund. Instead, each delinquent debt that is successfully matched will incur the $15 collection assistance fee. This applies to individUal debts of $50 or more, and to those combined debts to meet the $50 minimum. No charges will accrue unless a successful tax refund setoff is made. Again, the clearinghouse will add the $15 to the amount of debt submitted by the participating county or city. As you know, NCACC and NCLM have contracted with Five Star Computing, Inc., Columbia, SC to administer the program. Five Star Computing receives, processes and submits the consolidated debts to the North Carolina Department of Revenue, and has established a call center to handle telephone calls from taxpayers who have had their refunds withheld, in whole or in part. Five Star will also be submitting successful match information back to the participatin, g'counties and cities. Five Star has managed the South Carolina Association of Counties debt setoff program since its inception five years ago. Five Star has put online a website to facilitate local government participation, http:#www.ncsetoff, org/. Successful match funds will continue to be disbursed through Capital Management of the Carolinas, the agency that oversees administration of the North Carolina Capital Management Trust. As a participating county or city, you will need to maintain your account with Capital Management. · In order to continue to participate in the program, each county and city must comply with N.C.G.S. Chapter 10SA, and the appeal procedures set forth, including notification to the debtor and debtor's right to a hearing. The county or city must send written notice to a debtor that the agency intends to submit the debt for collection by setoff, and that a collection assistance fee of $15 will be' added to the debt if it is submitted for setoff. The notice must explain the debt and that the county or city intends to apply the debtor's refund against the debt. Again, since this change does not become effective until January 1, 2003, the written notice must be sent after January 1, 2003, and notice must be given again to those debtors whose debts have been previously submitted for processing. The notice must inform the debtor that the debtor has the tight to contest the matter by filing a request for a heating with the county or city, must state the time limits and specifics of the heating, and must state that failure to request a heating within the required time will result in setoff of the debt. Please find enclosed a -Summary of Notification and Appeals Process, along with a sample notification letter, a sample post hearing notification letter, and a tracking form for your use. 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 heating. 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 alsonote that no debt can be submitted to the clearinghouse until the entire notification and appeals process is completed for that debt. For those debts previously submitted, no processing will occur until the second notice and appeals process is completed. 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. 2