History: L. 1981, ch. 342, § 1; L. 1993, ch. 232, § 2; July 1.
(a) "Debtor" means any person who:
(1) Owes a debt to the state of Kansas or any state agency or any municipality;
(2) owes support to an individual, or an agency of another state, who is receiving assistance in collecting that support under K.S.A. 39-756 and amendments thereto or under part D of title IV of the federal social security act (42 U.S.C. § 651 et seq.), as amended; or
(3) owes a debt to a foreign state agency.
(b) "Debt" means:
(1) Any liquidated sum due and owing to the state of Kansas, or any state agency, municipality or foreign state agency which has accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum. A debt shall not include special assessments except when the owner of the property assessed petitioned for the improvement and any successor in interest of such owner of property; or
(2) any amount of support due and owing an individual, or an agency of another state, who is receiving assistance in collecting that support under K.S.A. 39-756 and amendments thereto or under part D of title IV of the federal social security act (42 U.S.C. § 651 et seq.), as amended, which amount shall be considered a debt due and owing the district court trustee or the department of social and rehabilitation services for the purposes of this act.
(c) "Refund" means any amount of Kansas income tax refund due to any person as a result of an overpayment of tax, and for this purpose, a refund due to a husband and wife resulting from a joint return shall be considered to be separately owned by each individual in the proportion of each such spouse's contribution to income, as the term "contribution to income" is defined by rules and regulations of the secretary of revenue.
(d) "Net proceeds collected" means gross proceeds collected through final setoff against a debtor's earnings, refund or other payment due from the state or any state agency minus any collection assistance fee charged by the director of accounts and reports of the department of administration.
(e) "State agency" means any state office, officer, department, board, commission, institution, bureau, agency or authority or any division or unit thereof and any judicial district of this state or the clerk or clerks thereof. "State agency" also shall include any district court utilizing collection services pursuant to K.S.A. 75-719, and amendments thereto, to collect debts owed to such court.
(f) "Person" means an individual, proprietorship, partnership, limited partnership, association, trust, estate, business trust, corporation, other entity or a governmental agency, unit or subdivision.
(g) "Director" means the director of accounts and reports of the department of administration.
(h) "Municipality" means any municipality as defined by K.S.A. 75-1117, and amendments thereto.
(i) "Payor agency" means any state agency which holds money for, or owes money to, a debtor.
(j) "Foreign state or foreign state agency" means the states of Colorado, Missouri, Nebraska or Oklahoma or any agency of such states which has entered into a reciprocal agreement pursuant to K.S.A. 75-6215, and amendments thereto.
History: L. 1981, ch. 342, § 2; L. 1985, ch. 115, § 52; L. 1993, ch. 232, § 3; L. 1996, ch. 214, § 39; L. 1997, ch. 164, § 1; L. 1998, ch. 44, § 1; July 1.
History: L. 1981, ch. 342, § 2; L. 1985, ch. 115, § 52; L. 1993, ch. 232, § 3; L. 1996, ch. 195, § 4; Repealed, L. 1997, ch. 182, § 106; Repealed, L. 1997, ch. 164, § 2; July 1.
History: L. 1981, ch. 342, § 2; L. 1985, ch. 115, § 52; L. 1993, ch. 232, § 3; L. 1996, ch. 214, § 39; L. 1997, ch. 182, § 104; Repealed, L. 1998, ch. 44, § 2; July 1.
(b) Each state agency, foreign state agency and municipality, whenever possible, shall obtain the full name, social security number, address and any other information required by the director of accounts and reports from any person for whom the state agency, foreign state agency or municipality provides any service or with whom the state agency, foreign state agency or municipality transacts any business and who may become a debtor under this act.
(c) Except for debts for which a voluntary agreement for payment has been entered into and is being complied with or debts for which garnishment or other judicial proceedings are pending and except as otherwise directed by the secretary of administration, the director may require any state agency to certify all debts owed to the state agency or to certify all such debts in specified categories of debts, for setoff under K.S.A. 75-6204, and amendments thereto. Any state agency required to certify debts under this subsection shall give the director all information relating to such debts as may be requested by the director.
(d) The secretary of administration as provided in K.S.A. 75-3706 and amendments thereto may adopt rules and regulations necessary to carry out the provisions of this act.
(e) The secretary of revenue may adopt rules and regulations defining the term "contribution of income" for the purposes of this act.
History: L. 1981, ch. 342, § 3; L. 1983, ch. 289, § 3; L. 1993, ch. 232, § 4; July 1.
(b) The director may enter into an agreement with a municipality for participation in the setoff program for the purpose of assisting in the collection of a debt as defined by K.S.A. 75-6202, and amendments thereto. The director shall include in any such agreement a provision requiring the municipality to certify that the municipality has made at least three attempts to collect a debt prior to submitting such debt to setoff pursuant to this act.
History: L. 1981, ch. 342, § 4; L. 1993, ch. 232, § 5; July 1.
(b) The use of setoff against earnings of a debtor shall be subject to the same dollar limitations and dollar restrictions as are provided by law for wage garnishment. The maximum amount of the disposable earnings of an individual which will be subject to setoff to enforce any order for the support of any person shall not exceed 50% of the debtor's disposable earnings unless the state agency or municipality submits satisfactory information to the director indicating that a greater percentage is applicable and authorized by law.
History: L. 1981, ch. 342, § 5; L. 1993, ch. 232, § 6; July 1.
(1) A demand for payment of the debt and a brief explanation of the legal basis of the debt;
(2) a statement of the director's intention to setoff the debt due against the debtor's earnings, refund or other payment due to the debtor from the state of Kansas or any state agency;
(3) the right of the debtor to request in writing a hearing to contest the validity of the claim, if such request is made: (A) Within 15 days of the mailing of the notice, or (B) in cases where notice was not given by mail, within 15 days of personal delivery to the debtor;
(4) a statement that a hearing may be requested by making a written request therefor to the director of accounts and reports and the address of the director; and
(5) the fact that failure to request a hearing within the fifteen-day period will be deemed a waiver of the opportunity to contest the claim causing final setoff by default.
(b) A copy of the notice required by subsection (a) to be sent to the debtor shall be sent to each state agency, foreign state agency or municipality seeking collection through setoff from the debtor. Subject to the provisions of K.S.A. 75-6205 and amendments thereto and upon request of the director, the payor agency shall withhold from the named debtor an amount equal to that claimed as the debt owed. The state agency, foreign state agency or municipality shall notify immediately the director of accounts and reports of any payments thereafter received from the named debtor or of any arrangements thereafter made for payment of the debt. Until the director of accounts and reports gives notice to the payor agency as to the final determination to proceed or not proceed with the collection of a debt by setoff, the payor agency shall continue to hold payments subject to setoff.
History: L. 1981, ch. 342, § 6; L. 1983, ch. 289, § 4; L. 1993, ch. 232, § 7; July 1.
(b) In cases where there is only one known present or future payment due from the state to the alleged debtor, the presiding officer may limit the hearing issue to a determination of whether the debt owed the state agency, foreign state agency or municipality is at least equal to the amount of the payment owed to the debtor by the state.
(c) Pending final determination in the order of the presiding officer of the validity of the debt asserted by the state agency, foreign state agency or municipality, no action shall be taken in furtherance of collection through the setoff procedure allowed under this act.
(d) Judicial review of an order under this section shall be in accordance with the provisions of the act for judicial review and civil enforcement of agency actions. In any such review, except as provided in subsection (e), the department of administration and the secretary of administration shall not be named parties to the proceedings.
(e) Parties to an action for review of an order under this section shall be: (1) The debtor; (2) the state agency, foreign state agency or municipality which requested assistance in collecting the debt or which certified the debt; and (3) any party the district court permits to intervene in the action. Applications for a stay or other temporary remedies shall be to the district court.
History: L. 1981, ch. 342, § 7; L. 1982, ch. 376, § 1; L. 1984, ch. 338, § 30; L. 1986, ch. 318, § 140; L. 1988, ch. 356, § 307; L. 1993, ch. 232, § 8; July 1.
(a) If the debtor fails to make timely request for a hearing under K.S.A. 75-6206 and amendments thereto the setoff may be made by the director at any time after expiration of the time within which a hearing may be requested.
(b) Except as provided in subsection (c), if a hearing has been timely requested under K.S.A. 75-6206 and amendments thereto the setoff may be made by the director at any time after the presiding officer serves on the debtor an order stating the amount due under K.S.A. 75-6207 and amendments thereto.
(c) If the setoff will be applied against earnings of the debtor and the debtor, within 15 days after service of the order under K.S.A. 75-6207 and amendments thereto, files written notice with the director that the debtor is appealing the setoff to the district court, the setoff may be made at any time after 30 days from the filing of such notice, unless otherwise ordered by the district court.
History: L. 1981, ch. 342, § 8; L. 1988, ch. 356, § 308; July 1, 1989.
(b) Upon completing the setoff, the director shall notify the debtor in writing of the action taken along with an accounting of the action taken. If there is an outstanding balance after setoff, the notice under this section shall accompany the balance when refunded.
(c) When a setoff is completed against earnings of an employee for any pay period and the setoff does not fully liquidate the debt due, further setoff in subsequent pay periods may be made without further certifications or notice to the debtor, except that the director shall notify the debtor in writing of the action taken and give an accounting thereof. The debtor may request an opportunity for hearing in regard to any further setoff in subsequent pay periods by making a written request therefor to the director. Any such request shall not stay future setoffs, but such hearing shall be held within a reasonable time, not to exceed 15 days after the request, unless a longer time has been agreed to by the debtor. Hearings under this subsection shall be conducted in accordance with the provisions of the Kansas administrative procedure act. Orders resulting from hearings under this subsection shall not be subject to administrative review.
History: L. 1981, ch. 342, § 9; L. 1988, ch. 356, § 309; July 1, 1989.
(b) From the gross proceeds collected by the director through setoff, the director shall retain a reasonable collection assistance fee in an amount based on cost, as determined by generally accepted cost allocation techniques, except that in the case of transactions for collection of debts arising from the employment security law such fee shall not exceed $300 for any transaction. The director shall retain a reasonable collection assistance fee from the gross proceeds of collections through setoff on behalf of a municipality as specified in an agreement entered into pursuant to K.S.A. 75-6204, and amendments thereto, or foreign state agency in such amount as specified in the reciprocal agreement entered into pursuant to K.S.A. 75-6215, and amendments thereto. The director may credit a portion of the collection assistance fee to the appropriate account or fund of any other state agency that has incurred expenses in assisting in the collection of the debt. The amount of the collection assistance fee retained by the director shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the accounting services recovery fund.
(c) Upon receipt by the state agency, foreign state agency or municipality of the net proceeds collected, the state agency, foreign state agency or municipality shall credit the debtor's obligation in the amount of the gross proceeds collected.
(d) Except as otherwise prescribed by the director or the secretary of administration, any state agency, foreign state agency or municipality which receives any payment from a debtor after notification to the debtor under K.S.A. 75-6206, and amendments thereto, other than payments collected pursuant to K.S.A. 44-718, and amendments thereto, or collected through the federal government or judicial process, shall remit the collection assistance fee imposed under subsection (b) to the director which shall be credited to the accounting services recovery fund. If a state agency fails to remit the collection assistance fee as required by this subsection, the director may transfer an amount equal to such collection assistance fee from the appropriate account or fund of the state agency to the accounting services recovery fund. If a foreign state agency or municipality fails to remit the collection assistance fee as required by this subsection, the director may seek collection of such fee in such manner as may be allowed by law.
(e) In cases involving the collection of debts arising from the employment security law, the entire amount collected shall be credited to the employment security fund and the collection assistance fee shall be transferred from the special employment security fund to the accounting services recovery fund.
History: L. 1981, ch. 342, § 10; L. 1983, ch. 289, § 5; L. 1986, ch. 191, § 7; L. 1993, ch. 232, § 9; L. 1994, ch. 100, § 2; L. 2001, ch. 5, § 407; July 1.
(a) Collection of taxes owed to agencies of the state of Kansas;
(b) claims for collection of intrastate and interstate child support debts;
(c) claims for collection of debts which have been written off by assignment to the director;
(d) other claims according to the time of filing with the director under K.S.A. 75-6208 and amendments thereto; and
(e) notwithstanding subsection (d), claims for collection of tax liabilities of other states shall have last priority according to the time of filing with the director under K.S.A. 75-6208, and amendments thereto.
History: L. 1981, ch. 342, § 11; L. 1993, ch. 232, § 10; July 1.
(b) The information obtained by any other state agency, foreign state agency or municipality from the department of revenue in accordance with the exemption authorized by subsection (a) shall only be used by such other state agency, foreign state agency or municipality in the pursuit of its debt collection duties and practices. Any person employed by, or formerly employed by, a state agency other than the department of revenue, who is employed, or formerly employed by a foreign state agency or municipality, and who receives information subject to the provisions of K.S.A. 79-3234 and amendments thereto, or other information designated by law as confidential, shall be subject to the same duty of confidentiality with respect to such confidential information imposed by law on officers and employees of the state agency, foreign state agency or municipality from which such information was obtained and shall be subject to any civil or criminal penalties imposed by law for violations of such duty of confidentiality.
History: L. 1981, ch. 342, § 12; L. 1993, ch. 232, § 11; July 1.
History: L. 1981, ch. 342, § 13; July 1.
(1) The debtor alleges that either such debtor did not receive actual notice of the right to request a hearing thereon or that the debtor did not use the opportunity for a hearing;
(2) less than two years have elapsed since the setoff was effected; and
(3) the debtor alleges that the setoff was improper.
(b) Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act. Orders resulting from hearings under this section shall not be subject to administrative review. If it is determined that the setoff was improper, the debtor shall be entitled to a refund of the sum improperly setoff. The director of accounts and reports shall cause such refund to be paid from the fund or funds of any state agency to which the amounts which were setoff were credited. In the case of a foreign state agency or municipality, the director shall direct a refund of the amount improperly setoff. The amount of any such refund shall be in addition to and shall not be included in computing expenditures credited against any expenditure limitation imposed on any such fund.
History: L. 1981, ch. 342, § 14; L. 1988, ch. 356, § 310; L. 1993, ch. 232, § 12; July 1.
History: L. 1993, ch. 232, § 1; July 1.