ORS 293.240¹
Writing off uncollectible debts due state agency
  • offers of compromise

(1) If a state agency has made all reasonable efforts to collect money owed to the agency and has determined that the money and any interest or penalties on the money are uncollectible, the agency may write off the debt on its accounts.

(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 (Collections Unit) or a private collection agency collecting on an account under ORS 293.231 (Collection of liquidated and delinquent accounts by Department of Revenue or private collection agency) 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]

Notes of Decisions

This sec­tion, providing that uncollectible debts may be assigned to Depart­ment of Revenue for collec­tion and that debts are not to be deemed uncollectible unless setoff has been considered, did not preclude Depart­ment of Revenue from with­hold­ing tax refunds as setoffs against debts owed state. Brown v. Lobdell, 36 Or App 397, 585 P2d 4 (1978), Sup Ct review denied

Atty. Gen. Opinions

Right of set off applied to claims against state, (1977) Vol 38, p 1438; doubtful collectibility as sole factor in determining whether to compromise, settle or adjust a receivable, (1978) Vol 38, p 2063

Notes of Decisions

Where prop­erty tax refund was intercepted by respondent to recover costs pre­vi­ously awarded in unemploy­ment compensa­tion pro­ceed­ing and peti­tioner filed peti­tion for review more than 60 days after original order but less than 60 days after amended order, amended order superseded and replaced original order so peti­tion was timely. Callahan v. Employ­ment Division, 97 Or App 234, 776 P2d 21 (1989)

Chapter 293

Atty. Gen. Opinions

Duty or authority of Secretary of State to con­duct performance audits, (1985) Vol. 44, p 381

1 Legislative Counsel Committee, CHAPTER 293—Administration of Public Funds, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors293.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 293, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano293.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information