Bill Text: MN SF2745 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Revenue department obsolete, redundant and unnecessary laws removal
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-31 - Second reading [SF2745 Detail]
Download: Minnesota-2013-SF2745-Introduced.html
1.2relating to state government operation; state debt collection; removing obsolete,
1.3redundant, and unnecessary laws administered by the Department of Revenue;
1.4amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04,
1.5subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3; 270A.03, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
1.8 Subd. 3. Debt. "Debt" means an amount owed to the state directly, or through a
1.9state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by
1.10the state, rent, service, sale of real or personal property, overpayment, fine, assessment,
1.11penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability
1.12owed, an assignment to the state including assignments under section256.741 , the Social
1.13Security Act, or other state or federal law, recovery of costs incurred by the state, or any
1.14other source of indebtedness to the state. Debt also includes amounts owed to individuals
1.15as a result of civil, criminal, or administrative action brought by the state or a state agency
1.16pursuant to its statutory authority or for which the state or state agency acts in a fiduciary
1.17capacity in providing collection services in accordance with the regulations adopted under
1.18the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When
1.19the commissioner provides collection servicespursuant to a debt qualification plan to a
1.20referring agency, debt also includes an amount owed to the courts, local government
1.21units, Minnesota state colleges and universities governed by the Board of Trustees of the
1.22Minnesota State Colleges and Universities, or University of Minnesota.
1.23EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
2.2 Subd. 6. Referring agency. "Referring agency" means a state agency, local
2.3government unit, Minnesota state colleges and universities governed by the Board of
2.4Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a
2.5court, that has entered intoa debt qualification plan an agreement with the commissioner
2.6to refer debts to the commissioner for collection.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
2.9 Subd. 3. Services. The commissioner shall provide collection services for a state
2.10agency, and may providefor collection services for a court, in accordance with the terms and
2.11conditions of a signed debt qualification plan referring agencies other than state agencies.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
2.14 Subd. 4. Authority to contract. Thecommissioners commissioner of revenue and
2.15management and budget may contract with credit bureaus, private collection agencies, and
2.16other entities as necessary for the collection of debts. A private collection agency acting
2.17under a contract with the commissioner of revenueor management and budget is subject
2.18to sections332.31 to
332.45 , except that the private collection agency may indicate that it
2.19is acting under a contract with the state. The commissioner may not delegate the powers
2.20provided under section16D.08 to any nongovernmental entity.
2.21EFFECTIVE DATE.This section is effective the day following final enactment.
2.22 Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
2.2316D.07 NOTICE TO DEBTOR.
2.24The referring agency shall send notice to the debtor by United States mail or
2.25personal delivery at the debtor's last known address at least 20 days before the debt is
2.26referred to the commissioner. The notice must state the nature and amount of the debt,
2.27identify to whom the debt is owed, and inform the debtor of the remedies available under
2.28this chapter. The referring agency shall advise the debtor of collection costs imposed
2.29under section 16D.11 and of the debtor's right to cancellation of collection costs under
2.30section 16D.11, subdivision 3.
2.31EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
3.2 Subdivision 1. Imposition. As determined by the commissioner ofmanagement and
3.3budget revenue, collection costs shall be added to the debts referred to the commissioner
3.4or private collection agency for collection. Collection costs are collectible by the
3.5commissioner or private agency from the debtor at the same time and in the same
3.6manner as the referred debt.The referring agency shall advise the debtor of collection
3.7costs under this section and the debtor's right to cancellation of collection costs under
3.8subdivision 3 at the time the agency sends notice to the debtor under section
16D.07.
3.9 If the commissioner or private agency collects an amount less than the total due, the
3.10payment is applied proportionally to collection costs and the underlying debt unless
3.11the commissioner of management and budget has waived this requirement for certain
3.12categories of debt pursuant to the department's internal guidelines. Collection costs
3.13collected by the commissioner under this subdivision or retained under subdivision 6 shall
3.14be deposited in the general fund as nondedicated receipts.Collection costs collected by
3.15private agencies are appropriated to the referring agency to pay the collection fees charged
3.16by the private agency. Collections of collection costs in excess of collection agency fees
3.17must be deposited in the general fund as nondedicated receipts.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
3.19 Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
3.20 Subd. 3. Cancellation. Collection costs imposed under subdivision 1 shall be
3.21canceled and subtracted from the amount due if:
3.22(1) the debtor's household income as defined in section290A.03, subdivision 5 ,
3.23excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for
3.24the 12 months preceding the date of referral is less than twice the annual federal poverty
3.25guideline under United States Code, title 42, section 9902, subsection (2);
3.26(2) within 60 days after the first contact with the debtor by theenterprise
3.27 commissioner or collection agency, the debtor establishes reasonable cause for the failure
3.28to pay the debt prior to referral of the debt to theenterprise commissioner;
3.29(3) a good faith dispute as to the legitimacy or the amount of the debt is made,
3.30and payment is remitted or a payment agreement is entered into within 30 days after
3.31resolution of the dispute;
3.32(4) good faith litigation occurs and the debtor's position is substantially justified, and
3.33if the debtor does not totally prevail, the debt is paid or a payment agreement is entered
3.34into within 30 days after the judgment becomes final and nonappealable; or
4.1(5) collection costs have been added by the referring agency and are included in
4.2the amount of the referred debt.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 8. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
4.5 Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined
4.6by section14.02, subdivision 2 , the regents of the University of Minnesota, any district
4.7court of the state, any county, any statutory or home rule charter city, including a city that
4.8is presenting a claim for a municipal hospital or a public library or a municipal ambulance
4.9service, a hospital district, a private nonprofit hospital that leases its building from the
4.10county or city in which it is located, any ambulance service licensed under chapter 144E,
4.11any public agency responsible for child support enforcement, any public agency responsible
4.12for the collection of court-ordered restitution, and any public agency established by
4.13general or special law that is responsible for the administration of a low-income housing
4.14program, and the Minnesota collection enterprise as defined in section
16D.02, subdivision
4.158
, for the purpose of collecting the costs imposed under section
16D.11
4.16EFFECTIVE DATE.This section is effective the day following final enactment.
1.3redundant, and unnecessary laws administered by the Department of Revenue;
1.4amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04,
1.5subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3; 270A.03, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
1.8 Subd. 3. Debt. "Debt" means an amount owed to the state directly, or through a
1.9state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by
1.10the state, rent, service, sale of real or personal property, overpayment, fine, assessment,
1.11penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability
1.12owed, an assignment to the state including assignments under section
1.13Security Act, or other state or federal law, recovery of costs incurred by the state, or any
1.14other source of indebtedness to the state. Debt also includes amounts owed to individuals
1.15as a result of civil, criminal, or administrative action brought by the state or a state agency
1.16pursuant to its statutory authority or for which the state or state agency acts in a fiduciary
1.17capacity in providing collection services in accordance with the regulations adopted under
1.18the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When
1.19the commissioner provides collection services
1.20referring agency, debt also includes an amount owed to the courts, local government
1.21units, Minnesota state colleges and universities governed by the Board of Trustees of the
1.22Minnesota State Colleges and Universities, or University of Minnesota.
1.23EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
2.2 Subd. 6. Referring agency. "Referring agency" means a state agency, local
2.3government unit, Minnesota state colleges and universities governed by the Board of
2.4Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a
2.5court, that has entered into
2.6to refer debts to the commissioner for collection.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
2.9 Subd. 3. Services. The commissioner shall provide collection services for a state
2.10agency, and may provide
2.11
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
2.14 Subd. 4. Authority to contract. The
2.15
2.16other entities as necessary for the collection of debts. A private collection agency acting
2.17under a contract with the commissioner of revenue
2.18to sections
2.19is acting under a contract with the state. The commissioner may not delegate the powers
2.20provided under section
2.21EFFECTIVE DATE.This section is effective the day following final enactment.
2.22 Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
2.2316D.07 NOTICE TO DEBTOR.
2.24The referring agency shall send notice to the debtor by United States mail or
2.25personal delivery at the debtor's last known address at least 20 days before the debt is
2.26referred to the commissioner. The notice must state the nature and amount of the debt,
2.27identify to whom the debt is owed, and inform the debtor of the remedies available under
2.28this chapter. The referring agency shall advise the debtor of collection costs imposed
2.29under section 16D.11 and of the debtor's right to cancellation of collection costs under
2.30section 16D.11, subdivision 3.
2.31EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
3.2 Subdivision 1. Imposition. As determined by the commissioner of
3.3
3.4or private collection agency for collection. Collection costs are collectible by the
3.5commissioner or private agency from the debtor at the same time and in the same
3.6manner as the referred debt.
3.7
3.8
3.9 If the commissioner or private agency collects an amount less than the total due, the
3.10payment is applied proportionally to collection costs and the underlying debt unless
3.11the commissioner of management and budget has waived this requirement for certain
3.12categories of debt pursuant to the department's internal guidelines. Collection costs
3.13collected by the commissioner under this subdivision or retained under subdivision 6 shall
3.14be deposited in the general fund as nondedicated receipts.
3.15
3.16
3.17must be deposited in the general fund as nondedicated receipts.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
3.19 Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
3.20 Subd. 3. Cancellation. Collection costs imposed under subdivision 1 shall be
3.21canceled and subtracted from the amount due if:
3.22(1) the debtor's household income as defined in section
3.23excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for
3.24the 12 months preceding the date of referral is less than twice the annual federal poverty
3.25guideline under United States Code, title 42, section 9902, subsection (2);
3.26(2) within 60 days after the first contact with the debtor by the
3.27 commissioner or collection agency, the debtor establishes reasonable cause for the failure
3.28to pay the debt prior to referral of the debt to the
3.29(3) a good faith dispute as to the legitimacy or the amount of the debt is made,
3.30and payment is remitted or a payment agreement is entered into within 30 days after
3.31resolution of the dispute;
3.32(4) good faith litigation occurs and the debtor's position is substantially justified, and
3.33if the debtor does not totally prevail, the debt is paid or a payment agreement is entered
3.34into within 30 days after the judgment becomes final and nonappealable; or
4.1(5) collection costs have been added by the referring agency and are included in
4.2the amount of the referred debt.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 8. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
4.5 Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined
4.6by section
4.7court of the state, any county, any statutory or home rule charter city, including a city that
4.8is presenting a claim for a municipal hospital or a public library or a municipal ambulance
4.9service, a hospital district, a private nonprofit hospital that leases its building from the
4.10county or city in which it is located, any ambulance service licensed under chapter 144E,
4.11any public agency responsible for child support enforcement, any public agency responsible
4.12for the collection of court-ordered restitution, and any public agency established by
4.13general or special law that is responsible for the administration of a low-income housing
4.14program
4.15
4.16EFFECTIVE DATE.This section is effective the day following final enactment.
