2004 Minnesota Statutes

     256.9792 Arrearage collection projects. 

    Subdivision 1.    Arrearage collections.  Arrearage 
 collection projects are created to increase the revenue to the 
 state and counties, reduce public assistance expenditures for 
 former public assistance cases, and increase payments of 
 arrearages to persons who are not receiving public assistance by 
 submitting cases for arrearage collection to collection 
 entities, including but not limited to, the Department of 
 Revenue and private collection agencies. 

    Subd. 2.    Definitions.  (a) The definitions in this 
 subdivision apply to this section: 

    (b) "Public assistance arrearage case" means a case where 
 current support may be due, no payment, with the exception of 
 tax offset, has been made within the last 90 days, and the 
 arrearages are assigned to the public agency according to 
 section 256.741. 

    (c) "Public authority" means the public authority 
 responsible for child support enforcement. 

    (d) "Nonpublic assistance arrearage case" means a support 
 case where arrearages have accrued that have not been assigned 
 according to section 256.741. 

    Subd. 3.    Agency participation.  (a) The collection 
 remedy under this section is in addition to and not in 
 substitution for any other remedy available by law to the public 
 authority.  The public authority remains responsible for the 
 case even after collection efforts are referred to the 
 Department of Revenue, a private agency, or other collection 
 entity. 

    (b) The Department of Revenue, a private agency, or other 
 collection entity may not claim collections made on a case 
 submitted by the public authority for a state tax offset under 
 chapter 270A as a collection for the purposes of this project. 

    Subd. 4.    Eligible cases.  (a) For a case to be 
 eligible for a collection project, the criteria in paragraphs 
 (b) and (c) must be met.  Any case from a county participating 
 in the collections project meeting the criteria under this 
 subdivision must be subcommitted for collection.  

    (b) Notice must be sent to the debtor, as defined in 
 section 270A.03, subdivision 4, at the debtor's last known 
 address at least 30 days before the date the collections effort 
 is transferred.  The notice must inform the debtor that the 
 Department of Revenue or a private collections agency will use 
 enforcement and collections remedies and may charge a fee of up 
 to 30 percent of the arrearages.  The notice must advise the 
 debtor of the right to contest the debt on grounds limited to 
 mistakes of fact.  The debtor may contest the debt by submitting 
 a written request for review to the public authority within 21 
 days of the date of the notice.  

    (c) The arrearages owed must be based on a court or 
 administrative order.  The arrearages to be collected must be at 
 least $100 and must be at least 90 days past due.  For nonpublic 
 assistance cases referred to private agencies, the arrearages 
 must be a docketed judgment under sections 548.09 and 548.091. 

    Subd. 5.    County participation.  (a) The commissioner 
 of human services shall designate the counties to participate in 
 the projects, after requesting counties to volunteer for the 
 projects. 

    (b) The commissioner of human services shall designate 
 which counties shall submit cases to the Department of Revenue, 
 a private collection agency, or other collection entity. 

    Subd. 6.    Fees.  A collection fee set by the 
 commissioner of human services shall be charged to the person 
 obligated to pay the arrearages.  The collection fee is in 
 addition to the amount owed, and must be deposited by the 
 commissioner of revenue in the state treasury and credited to 
 the general fund to cover the costs of administering the program 
 or retained by the private agency or other collection entity to 
 cover the costs of administering the collection services. 

    Subd. 7.    Contracts.  (a) The commissioner of human 
 services may contract with the commissioner of revenue, private 
 agencies, or other collection entities to implement the 
 projects, charge fees, and exchange necessary information. 

    (b) The commissioner of human services may provide an 
 advance payment to the commissioner of revenue for collection 
 services to be repaid to the Department of Human Services out of 
 subsequent collection fees. 

    (c) Summary reports of collections, fees, and other costs 
 charged shall be submitted monthly to the state office of child 
 support enforcement. 

    Subd. 8.    Remedies.  (a) The commissioner of revenue 
 is authorized to use the tax collection remedies in sections 
 270.06, clause (7), 270.69 to 270.72, and 290.92, subdivision 
 23, and tax return information to collect arrearages. 

    (b) Liens arising under paragraph (a) shall be perfected 
 under the provisions of section 270.69.  The lien may be filed 
 as long as the time period allowed by law for collecting the 
 arrearages has not expired.  The lien shall attach to all 
 property of the debtor within the state, both real and personal 
 under the provisions of section 270.69.  The lien shall be 
 enforced under the provisions in section 270.69 relating to 
 state tax liens. 

    HIST: 1993 c 340 s 14; 1997 c 203 art 6 s 13,14