2002 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 state 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 state 
 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. 

    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. 

    HIST: 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