Referring of outstanding debts for collection

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  1. (a) A state agency shall diligently and actively pursue the collection of the state agency’s accounts and notes receivable.

  2. (b) Diligently and actively pursuing the collection of these accounts may include, but is not limited to:

    1. (1) Contacting a debtor by phone or letter within a reasonable time after an account is deemed delinquent;

    2. (2)

      1. (A) Referring an account to a licensed collection agency or an attorney for collection with a remuneration not exceeding fifty percent (50%) for accounts of five hundred dollars ($500) or less and not exceeding thirty-three and one-third percent (331/3%) for accounts in excess of five hundred dollars ($500).

      2. (B) If an agency is unable to procure the services of a collection agency or attorney for the collection of any account in excess of five hundred dollars ($500) for a fee of one-third (1/3) of the amount recovered as authorized in this subsection, the agency may report this fact to the Legislative Joint Auditing Committee, and the Legislative Joint Auditing Committee may authorize the agency to pay a higher fee for collecting the account, not to exceed fifty percent (50%);

    3. (3) Pursuing setoff of debt against income tax refunds as allowed by §§ 26-36-301 — 26-36-320; or

    4. (4) Pursuing all other available means of collection if deemed feasible and economically justifiable by the agency.


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