(1) Prior to submitting any debt to the department for collection services, the agency shall:
(a) enter into a memorandum of understanding with the department addressing debt collection services; and
(b) establish criteria for uncollectibility and provide that criteria to the department.
(2) The agency shall not submit to the department any unliquidated debts.
(3) The agency must have followed its internal policies and procedures regarding debtor notification and dispute resolution on any debts it submits to the department.
(4) To submit a debt to the department, the agency shall certify the amount of the debt and that the debt is uncollectible in accordance with the agency's criteria for uncollectibility.