(2) An overpayment in favor of the state is created when the Department of Justice, under ORS 25.020, has transmitted moneys to any person or entity, including but not limited to an obligor, an obligee, a child support agency of another state or an agency of this state, and:

(a) The amount transmitted is attributable in whole or in part to a tax refund offset collection all or part of which has been taken back by the Internal Revenue Service or the Department of Revenue; or

(b) The Department of Justice performed an accounting adjustment that resulted in the refund, reallocation or redistribution of the amount transmitted to the state or any other person or entity.

(3)(a) The person or entity to which the moneys were transmitted owes the amount of the overpayment to the state. The Department of Justice shall:

(A) Attempt to recover the overpayment if it is cost-effective to do so;

(B) Notify the person or entity to whom the overpayment was made that the person or entity owes money to the state and specify the amount of the overpayment to be returned to the department; and

(C) Give the person or entity opportunity to object.

(b) If the person or entity does not file a timely written objection, the overpayment amount determined by the department becomes a liquidated debt and creates an account receivable owed to the department, and the provisions of subsection (4) of this section apply. If the department does not resolve an objection to the person’s or entity’s satisfaction, an administrative law judge assigned from the Office of Administrative Hearings shall hear the objection. An order by the administrative law judge becomes a liquidated debt and creates an account receivable owed to the department. The person or entity may appeal the decision of an administrative law judge to the circuit court for a hearing de novo.

(c) Notwithstanding paragraph (a) of this subsection, if an agency of this or another state owes the overpayment, the agency shall return the amount of the overpayment to the department without notice and opportunity to object.

(4)(a) The amount of the overpayment specified in subsection (3)(a) of this section is a liquidated debt owed to the state and an associated account receivable. The Department of Justice may recover the debt by obtaining from the obligee an agreement to apply all or a portion of future support payments to the account receivable or in any other way permitted by law.

(b) Accounts receivable are considered delinquent for purposes of this subsection and are subject to the provisions of ORS chapter 293 if:

(A) The person or entity fails to make full payment within 90 days of liquidation; or

(B) A period of 90 days elapses without a payment as required by a payment agreement between the department and the obligated person or entity.

(5)(a) In addition to the account receivable created under subsection (2) of this section, a debt in favor of the state and an associated account receivable are created when:

(A) The Department of Justice receives payment for support amounts due from an obligor, a withholder subject to an order to withhold under this chapter or another issuer on behalf of an obligor;

(B) The department transmits the amount to any other person or entity; and

(C) The payment is dishonored or reversed.

(b) When a debt is created under paragraph (a) of this subsection, the amount of money specified in the payment is owed to the state, and the department may collect the debt from one of the following:

(A) The obligor, regardless of who presented the check.

(B) The withholder, if the withholder presented the check.

(C) The other issuer, if another issuer presented the check.

(D) The person or entity to which the amount was transmitted by the department.

(c) The department shall:

(A) Attempt to recover the debt if it is cost-effective to do so;

(B) Notify the obligor, withholder or other issuer who made the payment that the person or entity owes the money to the state; and

(C) Specify the amount of the debt to be paid to the department.

(d) The amount of the debt specified in paragraph (c) of this subsection is a liquidated debt owed to the state and an account receivable. The department may recover the debt and collect on the account receivable in any way permitted under law.

(e) Accounts receivable are considered delinquent for purposes of this subsection and are subject to the provisions of ORS chapter 293 when:

(A) The person or entity fails to make full payment within 90 days of liquidation; or

(B) A period of 90 days elapses without a payment as required by a payment agreement between the department and the obligated person or entity.

(6) The Department of Justice shall adopt rules to carry out the provisions of this section. [1997 c.385 §2; 2001 c.961 §2; 2003 c.73 §22a; 2003 c.75 §72; 2003 c.572 §5; 2005 c.560 §3; 2015 c.72 §1; 2015 c.74 §1; 2017 c.459 §1; 2019 c.290 §3; 2019 c.291 §4]