1999 Minnesota Statutes

     16D.09 Uncollectible debts. 

    Subdivision 1.    Generally.  When a debt is determined 
 by a state agency to be uncollectible, the debt may be written 
 off by the state agency from the state agency's financial 
 accounting records and no longer recognized as an account 
 receivable for financial reporting purposes.  A debt is 
 considered to be uncollectible when (1) all reasonable 
 collection efforts have been exhausted, (2) the cost of further 
 collection action will exceed the amount recoverable, (3) the 
 debt is legally without merit or cannot be substantiated by 
 evidence, (4) the debtor cannot be located, (5) the available 
 assets or income, current or anticipated, that may be available 
 for payment of the debt are insufficient, (6) the debt has been 
 discharged in bankruptcy, (7) the applicable statute of 
 limitations for collection of the debt has expired, or (8) it is 
 not in the public interest to pursue collection of the debt.  
 The determination of the uncollectibility of a debt must be 
 reported by the state agency along with the basis for that 
 decision as part of its quarterly reports to the commissioner of 
 finance.  Determining that the debt is uncollectible does not 
 cancel the legal obligation of the debtor to pay the debt, 
 except in the case of a debt related to a tax liability that is 
 canceled by the department of revenue.  

    Subd. 2.    Notification of action by department of 
 revenue.  When the department of revenue has determined that a 
 debt is uncollectible and has written off that debt as provided 
 in subdivision 1, the commissioner of revenue must make a 
 reasonable attempt to notify the debtor of that action and of 
 the release of any liens imposed under section 270.69 related to 
 that debt, within 30 days after the determination has been 
 reported to the commissioner of finance. 

    HIST: 1994 c 632 art 3 s 43; 1996 c 390 s 22; 1999 c 243 art 2 
 s 1