(2) Before determining that money is uncollectible under subsection (1) of this section, a state agency must adopt criteria for determining when money is uncollectible. The criteria must include the right of offset and must be approved by the Attorney General.

(3)(a) A state agency, the Department of Revenue collecting on an account under ORS 293.250 or a private collection agency collecting on an account under ORS 293.231 may propose and accept offers of compromise for settlement of a debt owed to a state agency. Before proposing or accepting an offer of compromise, a state agency must adopt criteria for determining when offers of compromise may be made. The criteria must be approved by:

(A) The Attorney General in the case of the Secretary of State and State Treasurer;

(B) The Chief Justice in the case of all state courts and all commissions, departments and divisions in the judicial branch of state government; or

(C) The Oregon Department of Administrative Services and the Attorney General in the case of other state agencies.

(b) A private collection agency or the Department of Revenue shall accept an offer of compromise for settlement of a debt owed to a state agency:

(A) In accordance with the criteria adopted by the state agency to which the debt is owed; and

(B) With the authorization of the state agency to which the debt is owed.

(c) This subsection does not allow the compromise of a criminal money judgment that requires a defendant to pay restitution or a compensatory fine.

(4) This section does not apply to debts owed to a state agency for which a procedure for compromise, release, discharge, waiver, cancellation or other form of settlement for the debt for reasons other than uncollectibility is by law made specially applicable to the state agency. [1965 c.448 §2; 1971 c.604 §3; 1991 c.567 §3; 1999 c.1092 §5; 2011 c.223 §1; 2015 c.766 §4; 2017 c.746 §20]