(1) The department under the authority of 17-4-104 , MCA may refer to the department of revenue for recovery and offset a debt owed to the department by a program recipient or by a provider of program services.

(2) The department may refer to the department of revenue any debt of a program recipient or a provider of program services including but not limited to those arising out of intentional or unintentional actions of the recipient or provider and those due to mistake upon the part of the department.

(3) The department must determine that a debt is uncollectable by the department before the debt may be referred to the department of revenue.