Or. Admin. Code § 122-085-0130

Current through Register Vol. 63, No. 11, November 1, 2024

Section 122-085-0130 - Mandatory Collection Agency Transfer Accounts Exempt from Assignment

(1) A state agency may, at its discretion, choose not to offer for assignment to DOR-OAA any MCAT account that:

(a) Is secured by a consensual security interest in real or personal property;

(b) Is a court judgment that includes restitution or a payment to the Department of Justice Crime Victims Assistance Section;

(c) Is in litigation, including bankruptcy, arbitration or mediation;

(d) Is a student loan owed by a student who is attending school;

(e) Is owed to a state agency by a local or state government or by the federal government;

(f) Is owed by a debtor who is hospitalized in a state hospital as defined in ORS 162.135, or who is on public assistance as defined in ORS 411.010, or who receives medical assistance as defined in ORS 414.025;

(g) Is owed by a debtor who is imprisoned;

(h) Is less than $100 including penalties;

(i) Would, if assigned, result in a loss of federal funding or a loss of funding under a federal program;

(j) Is owed by an estate and the state agency has received notice that the estate has closed;

(k) Is eligible for suspension of collections as provided in ORS 305.155;

(l) Would constitute a hardship if assigned, and assignment would be inconsistent with a state agency goal;

(m) Is secured by a non-consensual lien against specific real or personal property identified by the state agency;

(n) Is secured by a bond;

(o) Is one of multiple accounts owed to the state agency by the same debtor, any one of which has received a payment within the preceding 90-day period, including accounts created and paid at the same time;

(p) Is within the scope of a state agency specific exemption approved as per OAR 122-085-0150;

(q) Would result in the referral of a monetary penalty, fee, or tax under ORS Chapters 825 or 826 related to a motor carrier operating authority unless the closing audit of the motor carrier operating authority is final;

(r) Is an account for which a wage garnishment has been served on the debtor's employer and no funds are available to the state agency because a wage garnishment or order to withhold earnings of higher priority currently prevents any funds from being applied to the state agency debt;

(s) Arises from an administrative or judicial support order, judgment, or decree; or

(t) Is owed by a corporation that is not and, for the foreseeable future, will not be engaged in any income-producing activity, and there are no assets from which the debt could be collected.

(2) State agencies shall evaluate each account to determine the appropriate collection actions for accounts eligible to be exempted from collection assignment. While the exemptions listed in OAR 122-085-0130(1) allow a state agency to exempt an account from assignment, it doesn't prohibit the state agency from assigning the account. State agencies must exercise reasonable effort and due diligence to collect debts owed to the state agency.

(3) When a state agency determines an MCAT account may be exempted from assignment, the state agency should document their conclusions using the applicable form provided in the OAM (or equivalent). A state agency is not required to file this form with the DAS CFO, but the form is useful to explain the reasoning for exempting accounts in the event of an inquiry or in response to an audit of the state agency's liquidated and delinquent accounts.

(4) If a state agency exercises the option to exempt an account from assignment, the state agency is responsible to continue to pursue reasonable efforts to collect the account and monitor the account exemption status. If the state agency later determines that the exemption no longer applies, the state agency must proceed with assignment of the account as per OAR 122-085-0120.

Or. Admin. Code § 122-085-0130

DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018; DCFO 2-2018, adopt filed 11/29/2018, effective 12/1/2018

Statutory/Other Authority: ORS 293.231 & 293.233

Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)