7 CCR 1103-7-8 - Administrative Liens and Levies
8.1 The Division
may issue a notice of administrative lien and levy if an employer or other
Division debtor fails to pay wages, fines, or penalties determined to be due in
an order that is not the subject of an order staying the enforceability of the
order, that has not been superseded on appeal, or that is not subject to any
order barring such action.
(A) Notice shall
be provided to the Division debtor, as well as to any other known co-owner or
any person or entity with possession, custody, or control of any of the assets
at issue, including a financial institution as applicable.
(B) Upon an employee's written request, the
Division will inform the employee within 60 calendar days whether it will issue
such notice, subject to the Division's discretion to issue such notices on its
own initiative at any later time.
(C) An administrative lien placed on any and
all types of jointly owned or shared account(s), including multiple-party
accounts as defined in C.R.S. §
15-15-201 (collectively, "joint
account(s)") shall require the financial institution to freeze 100% of the
assets on deposit as of the date of the notice of the administrative lien and
levy.
8.2 A notice of
administrative lien and levy may be opposed in whole or in part, for the
reasons detailed in this Rule 8.2, and under the procedures detailed in Rule
8.3 below.
8.2.1 An exemption shall be granted
for any of the following reasons:
(A) the
notice contained a misidentification of the owner of some or all of the assets,
and these assets are wholly owned by some person other than the employer or
other Division debtor;
(B) the
notice identified assets within a custodial account created pursuant to the
"Colorado Uniform Transfers to Minors Act", Article
50 of Title
11, C.R.S., or a trust account of moneys
held in trust for a third party;
(C) the notice would apply to assets in an
amount of "disposal earnings," as defined in C.R.S. §
13-54-104(1)(a),
that would exceed the maximum allowable percentage amount of "disposable
earnings" that can be seized to enforce an order under C.R.S. §
13-54-104(3)
based upon the documentation provided by the employer or some other Division
debtor; or
(D) the notice
identified assets that are exempted by law from execution, levy, attachment,
garnishment, or other legal process.
8.2.2 A notice of administrative lien and
levy shall be rescinded if:
(A) the Division
has failed to follow the procedures in C.R.S. §
8-4-113(4) or
these Rules for issuance of a notice of administrative lien and levy;
and
(B) the failure either deprived
a party of notice or opportunity to be heard, or otherwise had a prejudicial
effect upon a party.
8.2.3 An exception may be granted to a
Division debtor when the Division debtor is a natural person who is terminally
ill. For purposes of this rule, "natural person" means a human, and does not
include any kind of corporation, company, limited liability company,
partnership, form, association, organization, agency, or any other kind of
entity.
8.2.4 An appeal may be
granted on the basis that there is proof that the notice would apply to assets
in a joint account and some or all of those assets include up to 100% of a
non-debtor account holder's net contribution of the funds on deposit, as
governed by C.R.S. §
15-15-211, as of the date the
person served with the notice was in receipt of the notice.
8.3 Within 21 calendar days from
the date of the notice of administrative lien and levy, a Division debtor, any
other person or entity claiming ownership or joint ownership of any of the
asset(s), or any other person or entity with possession, custody or control any
of the asset(s) (collectively, "Filer(s)"), may file any applicable opposition
to the notice of administrative lien and levy for the reasons detailed in Rule
8.2 and in accordance with the procedures detailed in this Rule 8.3 and/or
described in orders and instructions provided by the Division and/or published
by the Division on its website.
8.3.1 The
Filer has the burden, pursuant to any policies or instructions included with
any notice of administrative lien and levy, of claiming with specificity,
producing evidence to support, and proving entitlement to, any exceptions or
exemptions, or in the case of a non-debtor joint account holder, of making such
showing as to their contribution of an identifiable portion of the
funds.
8.3.2 A Division hearing
officer shall review the claim and document the decision whether to approve or
deny the requested relief. The Division shall provide an initial decision
within seven calendar days of receipt, or the next business day thereafter.
(A) An initial grant may be subject to
further review by the Division, based on information from the Filer or other
information obtained by the Division.
(B) An initial denial may include permission
or a request to submit further information, based on which the claim for
exception or exemption may be re-reviewed by the Division.
(C) An initial denial will be deemed an
appealable final administrative lien and levy order (1) if the Filer chooses
not to provide further information within seven calendar days, on the eighth
calendar day; or (2) if the Division does not issue a new decision within seven
calendar days of any new information provided by the Filer, on the eighth
calendar day after the new information is provided.
8.3.3 Notice of an order on a filing opposing
a notice of administrative lien and levy.
(A)
If the claim is approved, in whole or in part, the decision shall indicate the
scope of asset(s) released, and the extent to which a notice of administrative
lien and levy may be re-issued; and the Division shall notify, and issue a
release of the administrative lien and levy to:
(1) the Filer and (to the extent different)
the Division debtor and any other applicable owner of any of the assets(s);
and
(2) any other applicable
persons or entity (including but not limited to a financial institution) with
possession, custody or control of the asset(s).
(B) If the claim is denied, the
Division:
(1) shall notify the Filer and (to
the extent different) the employer or other Division debtor and any other
applicable owner of any of the assets(s); and
(2) may, where appropriate and applicable,
notify any person or entity (including, but not limited to, a financial
institution) with possession, custody or control of the asset(s).
8.3.4 A hearing
officer's appealable, final administrative lien and levy order pursuant to Rule
8.3.2 and 8.3.3 constitutes a final agency action pursuant to C.R.S. §
24-4-106. The Division shall
promptly provide all parties with a copy of the hearing officer's decision via
U.S. postal mail, electronic means, or personal delivery. The Division shall
notify the parties of their appeal rights pursuant to C.R.S. §
8-4-111.5(5).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
8.1 The Division may issue a notice of administrative lien and levy if an employer or other Division debtor fails to pay wages, fines, or penalties determined to be due in an order that is not the subject of a pending appeal, that has not been superseded on appeal, and that is not subject to any order barring such action.
(A) Notice shall be provided to the Division debtor, as well as to any other known co-owner or any person or entity with possession, custody, or control of any of the assets at issue, including a financial institution as applicable.
(B) Upon an employee's written request, the Division will inform the employee within 60 calendar days whether it will issue such notice, subject to the Division's discretion to issue such notices on its own initiative at any later time.
(C) A lien placed on any and all types of jointly owned or shared account(s), including multiple-party accounts as defined in C.R.S. § 15-15-201 (collectively, "joint account(s)") shall require the financial institution to freeze 100% of the assets on deposit as of the date of the notice of lien and levy.
8.2 A notice of lien and levy may be opposed in whole or in part, for the reasons detailed in this Rule 8.2, and under the procedures detailed in Rule 8.3 below.
8.2.1 An exemption shall be granted for any of the following reasons:
(A) misidentification of the owner of the assets;
(B) a custodial account created pursuant to the "Colorado Uniform Transfers to Minors Act", Article 50 of Title 11, C.R.S., or a trust account of moneys held in trust for a third party;
(C) "earnings" as defined in C.R.S. § 13-54-104(3), from which the maximum percentage amount that can be seized will be determined based upon the documentation provided by the Division debtor; or
(D) other funds to the extent exempted by law from execution, levy, attachment, garnishment, or other legal process.
8.2.2 A notice of lien and levy shall be rescinded if:
(A) the Division has failed to follow the procedures in C.R.S. § 8-4-113(4) or these Rules for issuance of a notice of administrative lien and levy; and
(B) the failure either deprived a party of notice or opportunity to be heard, or otherwise had a prejudicial effect upon a party.
8.2.3 An exception may be granted to a Division debtor when the Division debtor is a natural person who is terminally ill.
8.2.4 An appeal may be granted on the basis that there is proof of a non-debtor account holders' contribution of the funds on deposit up to 100% as of the date of the lien as governed by C.R.S. § 15-15-211, to the extent of the contribution.
8.3 Within 21 calendar days from the date of the notice of lien and levy, a Division debtor, any other person or entity claiming ownership or joint ownership of any of the asset(s), or any other person or entity with possession, custody or control any of the asset(s) (collectively, "Filer(s)"), may file any applicable opposition to the notice of lien and levy for the reasons detailed in Rule 8.2 and under the procedures detailed in this Rule 8.3 and also pursuant to orders and instructions provided by the Division and/or published by the Division on its website.
8.3.1 The Filer has the burden, pursuant to any policies or instructions included with any notice of lien and levy, of claiming with specificity, producing evidence to support, and proving entitlement to, any exceptions or exemptions, or in the case of a non-debtor joint account holder, of making such showing as to their contribution of an identifiable portion of the funds.
8.3.2 A Division hearing officer shall review the claim and document the decision whether to approve or deny the requested relief. The Division shall provide an initial decision within seven calendar days of receipt, or the next business day thereafter.
(A) An initial grant may be subject to further review by the Division, based on information from the Filer or other information obtained by the Division.
(B) An initial denial may include permission or a request to submit further information, based on which the claim for exception or exemption may be re-reviewed by the Division.
(C) An initial denial will be deemed an appealable final lien and levy order (1) if the Filer chooses not to provide further information within seven calendar days, on the eighth calendar day; or (2) if the Division does not issue a new decision within seven calendar days of any new information provided by the Filer, on the eighth calendar day after the new information is provided.
8.3.3 Notice of an order on a filing opposing a notice of lien and levy.
(A) If the claim is approved, in whole or in part, the decision shall indicate the scope of asset(s) released, and the extent to which a notice of lien and levy may be reissued; and the Division shall notify, and issue a release of the lien and levy to:
(1) the Filer and (to the extent different) the Division debtor and any other applicable owner of any of the assets(s), and
(2) any other applicable persons or entity (including but not limited to a financial institution) with possession, custody or control of the asset(s).
(B) If the claim is denied, the Division:
(1) shall notify the Filer and (to the extent different) the Division debtor and any other applicable owner of any of the assets(s); and
(2) may, where appropriate and applicable, notify any person or entity (including, but not limited to, a financial institution) with possession, custody or control of the asset(s).
8.3.4 A hearing officer's appealable, final lien and levy order pursuant to Rule 8.2.5 and 8.2.6 constitutes a final agency action pursuant to C.R.S. § 24-4-106. The Division shall promptly provide all parties with a copy of the hearing officer's decision via U.S. postal mail, electronic means, or personal delivery. The Division shall notify the parties of their appeal rights pursuant to C.R.S. § 8-4-111.5(5).