Colorado § 26-2-133 - State income tax refund offset - rules.

§ 26-2-133. State income tax refund offset - rules.

(1) (a) At any time prescribed by the department of revenue, but not less frequently than annually, the state department shall certify to the department of revenue information regarding persons who are obligated to the state for overpayment of benefits pursuant to the "Colorado Human Services Code". Such information shall include certification of the amount of overpayment which has been determined by final agency action or has been ordered by a court as restitution or has been reduced to judgment.

(b) Such information shall also include the name and the social security number of the person obligated to the state for the overpayment, the amount of same, and any other identifying information required by the department of revenue.

(2) As a condition of certifying an overpayment to the department of revenue as provided in subsection (1) of this section, the state department shall ensure that the obligated person has been afforded the opportunity for a conference at the county department level pursuant to section 26-2-127 or 25.5-4-207, C.R.S., and the opportunity for an appeal to the state department pursuant to section 26-2-127 or 26-2-304. In addition, the state department, prior to final certification of the information specified in subsection (1) of this section to the department of revenue, shall notify the obligated person, in writing, at his last-known address, that the state intends to refer the person's name to the department of revenue in an attempt to offset the obligation against the person's state income tax refund. Such notification shall inform the obligated person of the opportunity for a conference with the county department pursuant to section 26-2-127 or 25.5-4-207, C.R.S., and of the opportunity for an appeal to the state department pursuant to section 26-2-127 or 26-2-304. In addition, the notice shall specify issues that may be raised at an evidentiary conference or on appeal, as provided by this subsection (2), by the obligated person in objecting to the offset and shall specify that the obligated person may not object to the fact that an overpayment occurred. A person who has received a notice pursuant to this subsection (2) shall request, within thirty days from the date such notice was mailed, an administrative review or evidentiary conference, as provided in this subsection (2).

(3) Upon notification by the department of revenue of amounts deposited with the state treasurer pursuant to section 39-21-108, the state department shall determine whether the amount deposited is related to the centralized member integrity service established in section 25.5-1-210. If the amount is not related to the centralized member integrity service, the state department shall disburse the amount to the appropriate county for processing for distribution to the federal, state, or local agency to which the person is obligated. If the amount is related to the centralized member integrity service, a county contracted to administer the centralized member integrity service pursuant to section 25.5-1-210 shall determine the federal, state, or local agency to which the person is obligated and inform the department of health care policy and financing of the agency, and the department of health care policy and financing shall distribute the money to the federal, state, or local agency to which the person is obligated.

(4) The state department shall promulgate rules and regulations, pursuant to article 4 of title 24, C.R.S., establishing procedures to implement this section.

(5) For a program that is not the centralized member integrity service, established in section 25.5-1-210, the home addresses and social security numbers of persons subject to the income tax refund offset, provided to the state department by the department of revenue, must be sent to the respective county department. For a program that is the centralized member integrity service established in section 25.5-1-210, the home addresses and social security numbers of persons subject to the income tax refund offset, provided to the state department by the department of revenue, must be sent to the county contracted to administer the centralized member integrity service pursuant to section 25.5-1-210.

Source: L. 89: Entire section added, p. 1192, § 1, effective June 7. L. 91: (2) amended, p. 1885, § 1, effective April 20. L. 93: (2) amended, p. 1788, § 71, effective June 6. L. 97: (2) amended, p. 1321, § 6, effective July 1; (5) amended, p. 1235, § 26, effective July 1. L. 2006: (2) amended, p. 2017, § 100, effective July 1. L. 2016: (1)(a) amended, (SB 16-189), ch. 210, p. 775, § 71, effective June 6. L. 2018: (5) amended, (SB 18-092), ch. 38, p. 447, § 119, effective August 8. L. 2026: (3) and (5) amended, (HB 26-1429), ch. 374, p. 2317, § 17, effective June 4.

Cross references: For the legislative declaration in SB 18-092, see section 1 of chapter 38, Session Laws of Colorado 2018. For the legislative declaration in HB 26-1429, see section 1 of chapter 374, Session Laws of Colorado 2026.