SF 1436

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/07/2021 09:40am

A bill for an act
relating to taxation; revenue recapture; prohibiting the Department of Revenue
from recapturing taxpayer refunds for medical debt; amending Minnesota Statutes
2020, sections 270A.03, subdivisions 2, 5; 270A.10.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 270A.03, subdivision 2, is amended to read:

Subd. 2.

Claimant agency.

"Claimant agency" means any state agency, as defined by
section 14.02, subdivision 2, the regents of the University of Minnesota, any district court
of the state, any county, any statutory or home rule charter city, including a city that is
presenting a claim for deleted text begin a municipal hospital or deleted text end a public library deleted text begin or a municipal ambulance
service, a hospital district, a private nonprofit hospital that leases its building from the county
or city in which it is located, any ambulance service licensed under chapter 144E deleted text end , any public
agency responsible for child support enforcement, any public agency responsible for the
collection of court-ordered restitution, and any public agency established by general or
special law that is responsible for the administration of a low-income housing program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 270A.03, subdivision 5, is amended to read:

Subd. 5.

Debt; debtor.

(a) "Debt" means a legal obligation of a natural person to pay a
fixed and certain amount of money, which equals or exceeds $25 and which is due and
payable to a claimant agency. The term includes criminal fines imposed under section 609.10
or 609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision
4a, and restitution. A debt may arise under a contractual or statutory obligation, a court
order, or other legal obligation, but need not have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an administrative or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of Supplemental
Nutrition Assistance Program (SNAP) benefits, transitional child care, or transitional medical
assistance.

(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization deleted text begin if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount: deleted text end new text begin .
new text end

deleted text begin (1) for an unmarried debtor, an income of $13,280 or less;
deleted text end

deleted text begin (2) for a debtor with one dependent, an income of $17,010 or less;
deleted text end

deleted text begin (3) for a debtor with two dependents, an income of $20,120 or less;
deleted text end

deleted text begin (4) for a debtor with three dependents, an income of $22,820 or less;
deleted text end

deleted text begin (5) for a debtor with four dependents, an income of $24,070 or less; and
deleted text end

deleted text begin (6) for a debtor with five or more dependents, an income of $25,100 or less.
deleted text end

deleted text begin For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
deleted text end

deleted text begin (c) The commissioner shall annually adjust the amounts in paragraph (b) as provided in
section 270C.22. The statutory year is taxable year 2019.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
the dollar amount of the premium authorized under section 256L.15, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 270A.10, is amended to read:

270A.10 PRIORITY OF CLAIMS.

If two or more debts, in a total amount exceeding the debtor's refund, are submitted for
setoff, the priority of payment shall be as follows:

(1) delinquent tax obligations of the debtor which are owed to the department;

(2) debts for child support based on the order in time in which the commissioner received
the debts;

(3) payment of restitution obligations; new text begin and
new text end

deleted text begin (4) claims brought for a hospital or an ambulance service;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end the remaining debts based on the order in time in which the commissioner received
the debts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end