(1) The department shall notify the debtor that another agency has transferred the debt to the department for collection services. The notice of transfer shall identify the debt and provide:

(a) a statement that the department intends to undertake collection activities;

(b) payment information;

(c) the department's contact information, including phone number and mailing address; and

(d) the debtor's appeal rights as set forth in (2).

(2) To request a hearing before the department on whether the transfer of the debt from the agency to the department was valid, the debtor must submit a written request stating the basis of the debtor's objection within 30 days of the date on the notice of transfer. Failure to timely submit a written request shall be deemed an admission that the debtor agrees that the debt stated in the notice of transfer is due and owing.

(3) The department shall not make any determination regarding the validity of the underlying debt. If the debtor's objection to the debt transfer includes a challenge to the validity of the underlying debt, the department may return the debt to the submitting agency. The debtor is not entitled to a hearing on the validity of the debt if the debt has been the subject matter of any proceeding to determine the validity of the debt and a decision made as a result of that proceeding has become final.