SF 1502

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to revenue recapture; providing for annual 
  1.3             notice to the debtor of collection of a debt through 
  1.4             revenue recapture; amending Minnesota Statutes 1994, 
  1.5             sections 270A.07, subdivision 1; and 270A.08. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 270A.07, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
  1.10  agency, seeking collection of a debt through setoff against a 
  1.11  refund due, shall submit to the commissioner information 
  1.12  indicating the amount of each debt and information identifying 
  1.13  the debtor, as required by section 270A.04, subdivision 3.  
  1.14     For each setoff of a debt against a refund due, the 
  1.15  commissioner shall charge a fee of $10.  The claimant agency may 
  1.16  add the fee to the amount of the debt.  
  1.17     The claimant agency shall notify the commissioner when a 
  1.18  debt has been satisfied or reduced by at least $200 within 30 
  1.19  days after satisfaction or reduction.  If the debt is based on 
  1.20  an overpayment of an assistance grant, the claimant agency shall 
  1.21  notify the commissioner when the time period allowed by law for 
  1.22  collecting the debt has expired. 
  1.23     Sec. 2.  Minnesota Statutes 1994, section 270A.08, is 
  1.24  amended to read: 
  1.25     270A.08 [NOTICE AND HEARING REQUIRED.] 
  2.1      Subdivision 1.  [NOTICE TO DEBTOR.] Not later than five 
  2.2   days after the claimant agency has sent notification to the 
  2.3   department pursuant to section 270A.07, subdivision 1, the 
  2.4   claimant agency shall send a written notification to the debtor 
  2.5   asserting the right of the claimant agency to the refund or any 
  2.6   part thereof.  If the debt is not satisfied by the debtor or 
  2.7   decertified by the claimant agency, the claimant agency shall 
  2.8   provide written notification to the debtor on an annual basis no 
  2.9   later than December 15 of the year before the refund is due.  If 
  2.10  the notice is returned to the claimant agency as undeliverable, 
  2.11  or the claimant agency has reason to believe the debtor did not 
  2.12  receive the notice, the claimant agency shall obtain the current 
  2.13  address of the debtor from the commissioner and resend the 
  2.14  corrected notice.  
  2.15     Subd. 2.  [REQUIREMENTS OF NOTICE.] (a) This written notice 
  2.16  shall clearly and with specificity set forth the basis for the 
  2.17  claim to the refund including the name of the benefit program 
  2.18  involved if the debt arises from a public assistance grant and 
  2.19  the dates on which the debt was incurred and, further, shall 
  2.20  advise the debtor of the claimant agency's intention to request 
  2.21  setoff of the refund against the debt.  If the debt is based on 
  2.22  an overpayment of an assistance grant, the notice shall advise 
  2.23  the debtor that the debt cannot be setoff if the debtor or any 
  2.24  member of the debtor's household is a current recipient of food 
  2.25  stamps or relief based on need as defined in section 571.72, 
  2.26  subdivision 8. 
  2.27     (b) The notice will also advise the debtor that the debt 
  2.28  can be setoff against a refund unless the time period allowed by 
  2.29  law for collecting the debt has expired, and will advise the 
  2.30  debtor of the right to contest the validity of the claim at a 
  2.31  hearing.  The debtor must assert this right by written request 
  2.32  to the claimant agency, which request the agency must receive 
  2.33  within 45 days of the mailing date of the original notice or of 
  2.34  the corrected notice, as required by subdivision 1.  If the 
  2.35  debtor has not received the notice, the 45 days shall not 
  2.36  commence until the debtor has received actual notice.  The 
  3.1   debtor shall have the burden of showing no notice and shall be 
  3.2   entitled to a hearing on the issue of notice as well as on the 
  3.3   merits.