2018 Indiana Code
TITLE 6. Taxation
ARTICLE 8.1. DEPARTMENT OF STATE REVENUE; TAX ADMINISTRATION
CHAPTER 9. Refunds
6-8.1-9-14. Centralized debt collection program

     Note: This version of section effective until 7-1-2018. See also following repeal of this section effective 7-1-2018.

     Sec. 14. (a) Except as provided in subsection (n), the department shall establish, administer, and make available a centralized debt collection program for use by state agencies to collect delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by state agencies. The department's collection facilities shall be available for use by other state agencies only when resources are available to the department.

     (b) The commissioner shall prescribe the appropriate form and manner in which collection information is to be submitted to the department.

     (c) The debt must be delinquent and not subject to litigation, claim, appeal, or review under the appropriate remedies of a state agency.

     (d) The department has the authority to collect for the state or claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts, charges, fees, loans, taxes, or other indebtedness due:

(1) the state;

(2) a claimant agency that has a formal agreement with the department for central debt collection; or

(3) a claimant agency described in IC 6-8.1-9.5-1(1)(B) that has an agreement with a clearinghouse that:

(A) is established under IC 6-8.1-9.5-3.5; and

(B) has a formal agreement with the department for central debt collection.

     (e) The formal agreement must provide that the information provided to the department be sufficient to establish the obligation in court and to render the agreement as a legal judgment on behalf of the state. After transferring a file for collection to the department for collection, the claimant agency shall terminate all collection procedures and be available to provide assistance to the department. Upon receipt of a file for collection, the department shall comply with all applicable state and federal laws governing collection of the debt.

     (f) The department may use a claimant agency's statutory authority to collect the claimant agency's delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to the claimant agency.

     (g) The department's right to credit against taxes due may not be impaired by any right granted the department or other state agency under this section.

     (h) The department of state revenue may charge a debtor a fee not to exceed fifteen percent (15%) of any funds the department collects for a claimant agency. Notwithstanding any law concerning delinquent accounts, charges, fees, loans, taxes, or other indebtedness, the fifteen percent (15%) fee shall be added to the amount due to the state or claimant agency when the collection is made.

     (i) Fees collected under subsection (h) shall be retained by the department after the debt is collected for the claimant agency and are appropriated to the department for use by the department in administering this section.

     (j) The department shall transfer any funds collected from a debtor to the claimant agency or clearinghouse, as applicable, within thirty (30) days after the end of the month in which the funds were collected.

     (k) When a claimant agency requests collection by the department, the claimant agency shall provide the department with:

(1) the full name;

(2) the Social Security number or federal identification number, or both;

(3) the last known mailing address; and

(4) additional information that the department may request;

concerning the debtor.

     (l) The department shall establish a minimum amount that the department will attempt to collect for the claimant agency.

     (m) The commissioner shall report, not later than March 1 for the previous calendar year, to the governor, the budget director, and the legislative council concerning the implementation of the centralized debt collection program, the number of debts, the dollar amounts of debts collected, and an estimate of the future costs and benefits that may be associated with the collection program. A report to the legislative council under this subsection must be in an electronic format under IC 5-14-6.

     (n) The department may not assess a fee to a state agency or a custodial parent for seeking a set off to a state or federal income tax refund for past due child support.

As added by P.L.178-2002, SEC.73. Amended by P.L.28-2004, SEC.67; P.L.103-2007, SEC.3; P.L.239-2017, SEC.23; P.L.117-2018, SEC.4.

     Note: This repeal of section effective 7-1-2018. See also preceding version of this section effective until 7-1-2018.

As added by P.L.178-2002, SEC.73. Amended by P.L.28-2004, SEC.67; P.L.103-2007, SEC.3; P.L.239-2017, SEC.23. Repealed by P.L.146-2018, SEC.21.