HF 1172

Subdivision 1.

Duties.

The commissioner shall provide services to the state and deleted text begin itsdeleted text end
new text begin referring new text end agencies to collect debts deleted text begin owed the statedeleted text end new text begin referred for collection under this chapternew text end .
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 agencydeleted text begin may, at its option,deleted text end new text begin mustnew text end
refernew text begin , by electronic means,new text end debts to the commissioner for collection. deleted text begin The ultimatedeleted text end
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) new text begin Before a debt becomes 121 days past due, a referring agency may refer the
debt to the commissioner for collection at any time after a debt becomes delinquent and
uncontested and the debtor has no further administrative appeal of the amount of the
debt. new text end When a debt owed to a deleted text begin statedeleted text end new text begin referring new text end agency becomes 121 days past due, the deleted text begin statedeleted text end
new text begin referring new text end 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 commissionerdeleted text begin , in consultation
with the commissioner of finance,deleted text end 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 deleted text begin of financedeleted text end .

(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. 2.

Computation.

At the time a debt is referred, the amount of collection
costs is equal to deleted text begin 15deleted text end new text begin 17 new text end percent of the debtdeleted text begin , or 25 percent of the debt remaining unpaid if
the commissioner or private collection agency has to take enforced collection action
by serving a summons and complaint on or entering judgment against the debtor, or by
utilizing any of the remedies authorized under section 16D.08, subdivision 2, except for
the remedies in sections 270C.32 and 270C.65 or when referred by the commissioner for
additional collection activity by a private collection agencydeleted text end . If, after referral of a debt to
a private collection agency, the debtor requests cancellation of collection costs under
subdivision 3, the debt must be returned to the commissioner for resolution of the request.

Subd. 7.

Adjustment of rate.

By June 1 of each year, the commissioner deleted text begin of financedeleted text end
shall determine the rate of collection costs for debts referred to the enterprise during
the next fiscal year. The rate is a percentage of the debts in an amount that most nearly
equals the costs of the enterprise necessary to process and collect referred debts under this
chapter. In no event deleted text begin shall the rate of collection costs when a debt is first referred exceed
three-fifths of the maximum collection costs, and in no eventdeleted text end shall the rate of the deleted text begin maximumdeleted text end
collection costs exceed 25 percent of the debt. Determination of the rate of collection costs
under this section is not subject to the fee setting requirements of section 16A.1285.

Subdivision 1.

Liability imposed.

A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or
a person who is liable under any other law, is liable for the payment of taxes, penalties,
and interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 290.92
and 297E.02new text begin , and, for the taxes listed in this subdivision, the applicable penalties for
nonpayment under section 289A.60new text end .

Subd. 9.

Period of limitations.

The lien imposed by this section shall,
notwithstanding any other provision of law to the contrary, be enforceable from the time
the lien arises and for ten years from the date of filing the notice of lien, which must be
filed by the commissioner within five years after the date of assessment of the tax or final
administrative or judicial determination of the assessment. new text begin A notice of lien filed at the
Office of the Secretary of State may be transcribed to any county within ten years after the
date of its filing, but the transcription does not extend the period during which the lien is
enforceable. new text end A notice of lien filed in one county may be transcribed to the secretary of
state or to any other county within ten years after the date of its filing, but the transcription
shall not extend the period during which the lien is enforceable. A notice of lien may be
renewed by the commissioner before the expiration of the ten-year period for an additional
ten years. The taxpayer must receive written notice of the renewal.