2006 Minnesota Statutes

16D.04 COLLECTION ACTIVITIES.
    Subdivision 1. Duties. The commissioner shall provide services to the state and its agencies
to collect debts owed the state. The commissioner is not a collection agency as defined by section
332.31, subdivision 3, and is not licensed, bonded, or regulated by the commissioner of commerce
under sections 332.31 to 332.35 or 332.38 to 332.45. The commissioner is subject to section
332.37, except clause (9), (10), (12), or (19). Debts referred to the commissioner for collection
under section 256.9792 may in turn be referred by the commissioner to the enterprise. An audited
financial statement may not be required as a condition of debt placement with a private agency if
the private agency: (1) has errors and omissions coverage under a professional liability policy in
an amount of at least $1,000,000; or (2) has a fidelity bond to cover actions of its employees, in an
amount of at least $100,000. In cases of debts referred under section 256.9792, the provisions
of this chapter and section 256.9792 apply to the extent they are not in conflict. If they are in
conflict, the provisions of section 256.9792 control. For purposes of this chapter, the referring
agency for such debts remains the Department of Human Services.
    Subd. 2. Agency participation. (a) A referring agency may, at its option, refer debts to the
commissioner for collection. The ultimate responsibility for the debt, including the reporting of
the debt to the commissioner of finance and the decision with regard to the continuing collection
and uncollectibility of the debt, remains with the referring agency.
(b) When a debt owed to a state agency becomes 121 days past due, the state agency must
refer the debt to the commissioner for collection. This requirement does not apply if there is
a dispute over the amount or validity of the debt, if the debt is the subject of legal action or
administrative proceedings, or the agency determines that the debtor is adhering to acceptable
payment arrangements. The commissioner, in consultation with the commissioner of finance, may
provide that certain types of debt need not be referred to the commissioner for collection under
this paragraph. Methods and procedures for referral must follow internal guidelines prepared by
the commissioner of finance.
(c) If the referring agency is a court, the court must furnish a debtor's Social Security number
to the commissioner when the court refers the debt.
    Subd. 3. Services. The commissioner shall provide collection services for a state agency,
and may provide for collection services for a court, in accordance with the terms and conditions
of a signed debt qualification plan.
    Subd. 4. Authority to contract. The commissioners of revenue and finance may contract
with credit bureaus, private collection agencies, and other entities as necessary for the collection
of debts. A private collection agency acting under a contract with the commissioner of revenue
or finance is subject to sections 332.31 to 332.45, except that the private collection agency may
indicate that it is acting under a contract with the state. The commissioner may not delegate the
powers provided under section 16D.08 to any nongovernmental entity.
History: 1994 c 632 art 3 s 38; 1995 c 254 art 5 s 5,6; 1996 c 390 s 18,19; 1998 c 366 s
30,31; 1999 c 250 art 1 s 67; 2006 c 260 art 5 s 3