1.1                          A bill for an act 
  1.2             relating to collection of debt; authorizing a creditor 
  1.3             who has a conciliation court judgment to refer the 
  1.4             judgment for collection to the commissioner of 
  1.5             revenue; amending Minnesota Statutes 1998, sections 
  1.6             16D.02, subdivision 3; 16D.04, by adding subdivisions; 
  1.7             and 16D.11, by adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 16D.02, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [DEBT.] "Debt" means an amount owed to the state 
  1.12  directly, or through a state agency, on account of a fee, duty, 
  1.13  lease, direct loan, loan insured or guaranteed by the state, 
  1.14  rent, service, sale of real or personal property, overpayment, 
  1.15  fine, assessment, penalty, restitution, damages, interest, tax, 
  1.16  bail bond, forfeiture, reimbursement, liability owed, an 
  1.17  assignment to the state including assignments under sections 
  1.18  256.72 to 256.87, the Social Security Act, or other state or 
  1.19  federal law, recovery of costs incurred by the state, or any 
  1.20  other source of indebtedness to the state.  Debt also includes 
  1.21  amounts owed to individuals as a result of civil, criminal, or 
  1.22  administrative action brought by the state or a state agency 
  1.23  pursuant to its statutory authority or for which the state or 
  1.24  state agency acts in a fiduciary capacity in providing 
  1.25  collection services in accordance with the regulations adopted 
  1.26  under the Social Security Act at Code of Federal Regulations, 
  2.1   title 45, section 302.33.  Debt also includes an amount owed to 
  2.2   the courts or University of Minnesota for which the commissioner 
  2.3   provides collection services pursuant to contract.  Debt also 
  2.4   includes an amount owed by a judgment debtor to a judgment 
  2.5   creditor under a conciliation court judgment. 
  2.6      Sec. 2.  Minnesota Statutes 1998, section 16D.04, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 2a.  [CONCILIATION COURT JUDGMENTS.] If a 
  2.9   conciliation judgment or a judgment of district court on removal 
  2.10  from conciliation court has been docketed in district court for 
  2.11  at least 30 days, and the judgment is not satisfied, the 
  2.12  district court in the county in which the judgment originated 
  2.13  shall, upon request of the judgment creditor, refer the 
  2.14  conciliation court judgment to the commissioner for collection 
  2.15  of the judgment.  The ultimate responsibility for the collection 
  2.16  of the judgment, including reporting the debt and the decision 
  2.17  with respect to the continuing collection and uncollectibility 
  2.18  of the debt, remains with the judgment creditor. 
  2.19     Sec. 3.  Minnesota Statutes 1998, section 16D.04, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 3a.  [CONCILIATION COURT JUDGMENT COLLECTION 
  2.22  SERVICES.] The commissioner shall provide collection services 
  2.23  for conciliation court judgment creditors who have judgments 
  2.24  docketed under chapter 491A. 
  2.25     Sec. 4.  Minnesota Statutes 1998, section 16D.04, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 5.  [FORMS.] The commissioner with assistance of the 
  2.28  state court administrator shall prepare forms to be used in the 
  2.29  collection of conciliation court judgment debts. 
  2.30     Sec. 5.  Minnesota Statutes 1998, section 16D.04, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 6.  [EXPLANATION OF DEBT COLLECTION SERVICES.] Under 
  2.33  the supervision of the conciliation court judges, the court 
  2.34  administrator shall explain to conciliation court litigants the 
  2.35  debt collection services authorized under this act and supply 
  2.36  them with the forms described in subdivision 5. 
  3.1      Sec. 6.  Minnesota Statutes 1998, section 16D.11, is 
  3.2   amended by adding a subdivision to read: 
  3.3      Subd. 2a.  [CONCILIATION COURT JUDGMENTS; COLLECTION 
  3.4   COSTS.] If the commissioner has contracted with a private 
  3.5   collection agency for the collection of conciliation court 
  3.6   judgment debts, the amount of the collection costs specified in 
  3.7   subdivision 2 may be increased by five percent of the debt.  The 
  3.8   five percent increase shall be kept by the commissioner.