TO: Mayor and Members of City Council
THRU: Karen M. McDonald, City Attorney
FROM: Lachelle H. Pulliam, Assistant City Attorney
DATE: June 12, 2023
RE:
Title
Adoption of Resolution Designating Hearing Officers to Conduct Hearings under the NC Setoff Debt Collection Act
end
COUNCIL DISTRICT(S):
Council District(s)
All Districts
b
Relationship To Strategic Plan:
Goal V: Financially Sound City Providing Exemplary City Services
Executive Summary:
The City participates in the North Carolina Setoff Debt Collection Act (SDCA) program under N.C.G.S. Chapter 105A which allows the City to use a debtor’s NC income tax refund to setoff debts owed to the City, after notice and an elective hearing. Council previously authorized Safelight (Red-Light Safety Camera) program hearing officers to preside over the setoff debt hearings. The City’s Safelight program ended August 2022 and therefore there are no hearing officers currently authorized to conduct hearings under the SDCA. To resume participation in the SDCA, Council must designate hearing officers to conduct hearings required under the SDCA.
Background:
The City participates in the NC Setoff Debt Collection which allows the City to use a debtor’s NC income tax refund to setoff debts owed to the City, after notice and an opportunity to be heard. The required notices are issued by the Finance Department. If a debtor requests a hearing, the hearings are scheduled and administered by the City Attorney’s Office.
Pursuant to the SDCA, the City Council adopted Resolution Number R2001-080 on December 17, 2001, designating the hearing officers for the City’s former Safelight program as hearing officers for hearings required under the SDCA. Given that the City’s Safelight program has ended, the City no longer has hearing officers to conduct SDCA hearings as previously designated in the resolution.
The City Attorney’s Office maintains a list of hearing officers to act as independent hearing officers (local attorneys) for various types of appeal hearings. These hearing officers could conduct the hearings required under the SDCA.
Issues/Analysis:
There are no hearing officers designated to conduct hearings required under the SDCA.
Budget Impact:
Hearing officers contract with the City and are currently compensated $100.00 per hearing. This fee can be passed on to the appealing party. The City will be able to recover revenue owed to it due to unpaid debts by participating in the SDCA program.
Options:
1. Adopt a resolution designating the hearing officers on the list maintained by the City Attorney’s Office as hearing officers for required hearings under the SDCA and resume participation in the SDCA program.
2. Take no action. Do not resume participation in the SDCA program at this time.
Recommended Action:
Staff recommends that City Council move to adopt a resolution designating the hearing officers on the list maintained by the City Attorney’s Office as the hearing officers for required hearings under the SDCA and resume participation in the SDCA program.
Attachments:
NC Setoff Debt Collection Act (N.C.G.S. Chapter 105A)
City Council Resolution Number R2001-080
Proposed Resolution