Current through Register Vol. 63, No. 12, December 1, 2024
(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.
Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c),
293.233(1) & 293.233(2)
