SF 1535

Introduction - 81st Legislature (1999 - 2000)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to taxation; modifying the hearing 
  1.3             requirement applicable to revenue recapture 
  1.4             proceedings; amending Minnesota Statutes 1998, 
  1.5             sections 270A.07, subdivision 2; and 270A.08, 
  1.6             subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 270A.07, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [SETOFF PROCEDURES.] (a) The commissioner, upon 
  1.11  receipt of notification, shall initiate procedures to detect any 
  1.12  refunds otherwise payable to the debtor.  When the commissioner 
  1.13  determines that a refund is due to a debtor whose debt was 
  1.14  submitted by a claimant agency, the commissioner shall first 
  1.15  deduct the fee in subdivision 1 and then remit the refund or the 
  1.16  amount claimed, whichever is less, to the agency.  In 
  1.17  transferring or remitting moneys to the claimant agency, the 
  1.18  commissioner shall provide information indicating the amount 
  1.19  applied against each debtor's obligation and the debtor's 
  1.20  address listed on the tax return.  
  1.21     (b) The commissioner shall remit to the debtor the amount 
  1.22  of any refund due in excess of the debt submitted for setoff by 
  1.23  the claimant agency.  Notice of the amount setoff and address of 
  1.24  the claimant agency shall accompany any disbursement to the 
  1.25  debtor of the balance of a refund.  The notice shall also advise 
  1.26  the debtor of the right to contest the validity of the claim, 
  2.1   other than a claim based upon child support under section 
  2.2   518.171, 518.54, 518.551, or chapter 518C at a hearing, subject 
  2.3   to the restrictions in this paragraph.  The debtor must assert 
  2.4   this right by written request to the claimant agency, which 
  2.5   request the claimant agency must receive within 45 days of the 
  2.6   date of the notice.  This right does not apply to (1) issues 
  2.7   relating to the validity of the claim that have been previously 
  2.8   raised at a hearing under this section or section 270A.09; (2) 
  2.9   issues relating to the validity of the claim that were not 
  2.10  timely raised by the debtor under section 270A.08, subdivision 
  2.11  2; or (3) issues relating to the validity of the claim that have 
  2.12  been previously raised at a hearing conducted under rules 
  2.13  promulgated by the United States Department of Housing and Urban 
  2.14  Development or any public agency that is responsible for the 
  2.15  administration of a low-income housing program, or that were not 
  2.16  timely raised by the debtor under those rules; or (4) issues 
  2.17  relating to the validity of the claim for which a hearing is 
  2.18  discretionary under section 270A.09. 
  2.19     Sec. 2.  Minnesota Statutes 1998, section 270A.08, 
  2.20  subdivision 2, is amended to read: 
  2.21     Subd. 2.  [REQUIREMENTS OF NOTICE.] (a) This written notice 
  2.22  shall clearly and with specificity set forth the basis for the 
  2.23  claim to the refund including the name of the benefit program 
  2.24  involved if the debt arises from a public assistance grant and 
  2.25  the dates on which the debt was incurred and, further, shall 
  2.26  advise the debtor of the claimant agency's intention to request 
  2.27  setoff of the refund against the debt.  
  2.28     (b) Except as provided in paragraph (c), the notice will 
  2.29  also advise the debtor that the debt can be setoff against a 
  2.30  refund unless the time period allowed by law for collecting the 
  2.31  debt has expired, and will advise the debtor of the right to 
  2.32  contest the validity of the claim at a hearing.  The debtor must 
  2.33  assert this right by written request to the claimant agency, 
  2.34  which request the agency must receive within 45 days of the 
  2.35  mailing date of the original notice or of the corrected notice, 
  2.36  as required by subdivision 1.  If the debtor has not received 
  3.1   the notice, the 45 days shall not commence until the debtor has 
  3.2   received actual notice.  The debtor shall have the burden of 
  3.3   showing no notice and shall be entitled to a hearing on the 
  3.4   issue of notice as well as on the merits. 
  3.5      (c) If the claimant agency is a public agency that is 
  3.6   responsible for the administration of a low-income housing 
  3.7   program, the notice will also advise the debtor that the debt 
  3.8   can be set off against a refund unless the time period allowed 
  3.9   by law for collecting the debt has expired.  If the public 
  3.10  agency has provided the debtor with the opportunity to contest 
  3.11  the issues relating to the validity of the claim at a hearing 
  3.12  under rules promulgated by the United States Department of 
  3.13  Housing and Urban Development or the public agency, the notice 
  3.14  will advise the debtor of that fact and advise the debtor that 
  3.15  no further hearing may be requested by the debtor to contest the 
  3.16  validity of the claim. 
  3.17     Sec. 3.  [EFFECTIVE DATE.] 
  3.18     Sections 1 and 2 are effective for claims for setoff 
  3.19  submitted to the commissioner of revenue by claimant agencies 
  3.20  after June 30, 1999.