(1) The department shall notify the debtor when it identifies funds that may be subject to offset. The notice shall:

(a) identify the debt and the funds held;

(b) state that the department will hold the funds for 30 days pending receipt of a hearing request;

(c) inform the debtor of the right to request a hearing on the potential offset of the funds held;

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

(e) identify the methods for filing an objection to the offset.

(2) To request a hearing on the potential offset of the funds held, the debtor must submit a written request to the department stating the basis of the debtor's objection within 30 days of the date on the notice of offset.

(3) If the 30 days provided for in (2) expire without the debtor requesting a hearing, the department will apply the held funds to the debt.