AG 2002 12 16 (Regular) - Laserfiche WebLink

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The county or city must submit debts of at least $50 each individually by debtor name and social security number to' the clearinghouse. Smaller debts less than $50 can 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. Please find enclosed the File Layout requirements. · The Debt Setoff Clearinghouse Program is dependent upon the use of debtor's social security number. We encourage you to discuss the procurement and use of debtor's social security numbers with your local attorney. You will also want to become familiar with N.C. Gen. Stat. 143-64.60 entitled the "State Privacy Act" which sets forth rules associated with disclosure of, and requests for, social security numbers. A discussion of these subjects is also found in Public Records Law for North Carolina Local Governments by David M. Lawrence and published by the Institute of Government. · 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 upwards 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. · Successful matches against a debtor refund will be credited to the first local county or city submitting the debt. · Should the individual debtor's refund exceed the first county or city's total debt and another county or city has submitted other debt(s) owed by the same debtor, the debtor's remaining refund will be reduced by the amount of the second county or city's debt This procedure shall continue through the priority of debtors should there be sufficient refund due the debtor. · Each delinquent debt successfully intercepted will incur the $15 collection assistance fee. If your county or city has already executed the memorandum of understanding and agreement, please complete the Local Collection Assistance Fee Rider and forward it to us for processing. Please also update the enclosed Participation Form. In order to comply with the provisions of N.C.G.S. Chapter 105A, all clearinghouse submissions made after January 1, 2003 must be accomplished in accordance with the procedures set out in the Local Collection Assistance Fee Rider. If your city or county chooses not to execute this rider, then no clearinghouse submissions may be made to the Department of Revenue after December 31, 2002. Further, since we cannot perform the agreement and comply with the new law, the memorandum of understanding and agreement is hereby terminated as of December 31, 2002. Please also note that any debtors whose debts that have been submitted to the clearinghouse but have not been matched must be notified of the collection assistance fee after January 1, 2003. This notification will re-open the appeals process, such that no debts will be processed during January. The original date of debt submission will remain and as soon as you have'completed the appeals process by resetting the debt compliance date in the file layout, the debts will be submitted for processing. Please also note that any debts in excess of $50 that were initially combined for submission to the clearinghouse must be separated and resubmitted--again, the original submission date will remain in effect. Finally, the clearinghouse program remains as originally executed until January 1, 2003~debts will continue to be processed and local agencies charged the $15 collection assistance fee if successful matches occur.