16D.01 CITATION AND SCOPE.
    Subdivision 1. Citation. This chapter may be cited as the "Debt Collection Act."
    Subd. 2. Scope. The collection procedures and remedies under this chapter are in addition
to any other procedure or remedy available by law. If the referring agency's applicable state or
federal law provides for the use of a particular remedy or procedure for the collection of a debt,
that particular remedy or procedure governs the collection of that debt to the extent the procedure
or remedy is inconsistent with this chapter.
History: 1994 c 632 art 3 s 35

16D.02 DEFINITIONS.
    Subdivision 1. Application. The definitions in this section apply to this chapter.
    Subd. 2. Commissioner. "Commissioner" means the commissioner of revenue.
    Subd. 3. Debt. "Debt" means an amount owed to the state directly, or through a state agency,
on account of a fee, duty, lease, direct loan, loan insured or guaranteed by the state, rent, service,
sale of real or personal property, overpayment, fine, assessment, penalty, restitution, damages,
interest, tax, bail bond, forfeiture, reimbursement, liability owed, an assignment to the state
including assignments under section 256.741, the Social Security Act, or other state or federal
law, recovery of costs incurred by the state, or any other source of indebtedness to the state. Debt
also includes amounts owed to individuals as a result of civil, criminal, or administrative action
brought by the state or a state agency pursuant to its statutory authority or for which the state or
state agency acts in a fiduciary capacity in providing collection services in accordance with the
regulations adopted under the Social Security Act at Code of Federal Regulations, title 45, section
302.33. Debt also includes an amount owed to the courts or University of Minnesota for which
the commissioner provides collection services pursuant to contract.
    Subd. 4. Debtor. "Debtor" means an individual, corporation, partnership, an unincorporated
association, a limited liability company, a trust, an estate, or any other public or private entity,
including a state, local, or federal government, or an Indian tribe, that is liable for a debt or against
whom there is a claim for a debt.
    Subd. 5. Debt qualification plan. "Debt qualification plan" means an agreement entered into
between a referring agency and the commissioner that defines the terms and conditions by which
the commissioner will provide collection services to the referring agency.
    Subd. 6. Referring agency. "Referring agency" means a state agency or a court that has
entered into a debt qualification plan with the commissioner to refer debts to the commissioner
for collection.
    Subd. 7. State agency. "State agency" means a state office, officer, board, commission,
bureau, division, department, authority, agency, public corporation, or other unit of state
government.
    Subd. 8. Enterprise. "Enterprise" means the Minnesota collection enterprise, a separate unit
established by the commissioner to carry out the provisions of this chapter.
History: 1994 c 632 art 3 s 36; 1995 c 254 art 5 s 3,4; 1996 c 390 s 14,15; 1998 c 366
s 29; 1999 c 159 s 3

16D.03 SUPERVISION OF STATE DEBT COLLECTION.
    Subdivision 1. Responsibility. The commissioner of finance shall supervise and report on
state debt collection.
    Subd. 2. State agency reports. State agencies shall report quarterly to the commissioner
of finance the debts owed to them. The commissioner of finance, in consultation with the
commissioners of revenue and human services, and the attorney general, shall establish internal
guidelines for the recognition, tracking, reporting, and collection of debts owed the state. The
internal guidelines must include accounting standards, performance measurements, and uniform
reporting requirements applicable to all state agencies. The commissioner of finance shall require
a state agency to recognize, track, report, and attempt to collect debts according to the internal
guidelines.
    Subd. 3.[Repealed, 2003 c 112 art 1 s 19]
History: 1994 c 632 art 3 s 37; 1996 c 390 s 16,17

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

16D.045 STAFF.
If there is an increase in the complement of collectors employed by the commissioner of
revenue to work for the Minnesota collection enterprise above the complement employed on June
30, 1998, the new complement of collectors must be located in the Ely office.
History: 1998 c 366 s 32; 1998 c 408 s 8

16D.05 PRIORITY OF SATISFACTION OF DEBTS.
    Subdivision 1. Multiple debts. If two or more debts owed by the same debtor are submitted to
the commissioner, amounts collected on those debts must be applied as prescribed in this section.
    Subd. 2. Enforcement of liens. If the money received is collected on a judgment lien under
chapter 550, a lien provided by chapter 514, a consensual lien or security interest, protection of an
interest in property through chapter 570, by collection process provided by chapters 551 and 571,
or by any other process by which the commissioner is enforcing rights in a particular debt, the
money must be applied to that particular debt.
    Subd. 3. Other methods of collection. If the money is collected in any manner not specified
in subdivision 2, the money collected must apply first to the satisfaction of any debts for child
support. Any debts other than child support must be satisfied in the order in time in which the
commissioner received the debts from the referring agency.
History: 1994 c 632 art 3 s 39

16D.06 DEBTOR INFORMATION.
    Subdivision 1. Access to government data not public. Notwithstanding chapter 13 or
any other state law classifying or restricting access to government data, upon request from the
commissioner or the attorney general, state agencies, political subdivisions, and statewide systems
shall disseminate not public data to the commissioner or the attorney general for the sole purpose
of collecting debt. Not public data disseminated under this subdivision is limited to financial data
of the debtor or data related to the location of the debtor or the assets of the debtor.
    Subd. 2. Disclosure of data. Data received, collected, created, or maintained by the
commissioner or the attorney general to collect debts are classified as private data on individuals
under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9. The
commissioner or the attorney general may disclose not public data:
(1) under section 13.05;
(2) under court order;
(3) under a statute specifically authorizing access to the not public data;
(4) to provide notices required or permitted by statute;
(5) to an agent of the commissioner or the attorney general, including a law enforcement
person, attorney, or investigator acting for the commissioner or the attorney general in the
investigation or prosecution of a criminal or civil proceeding relating to collection of a debt;
(6) to report names of debtors, amount of debt, date of debt, and the agency to whom debt
is owed to credit bureaus;
(7) to locate the debtor, locate the assets of the debtor, or to enforce or implement the
collection of a debt, provided that the commissioner or the attorney general may disclose only the
data that are necessary to enforce or implement collection of the debt; and
(8) to the commissioner of revenue for tax administration purposes.
The commissioner and the attorney general may not disclose data that is not public to a
private collection agency or other entity with whom the commissioner has contracted under
section 16D.04, subdivision 4, unless disclosure is otherwise authorized by law.
History: 1994 c 632 art 3 s 40; 1995 c 254 art 5 s 7; 1996 c 390 s 20; 1998 c 366 s 33

16D.07 NOTICE TO DEBTOR.
The referring agency shall send notice to the debtor by United States mail or personal
delivery at the debtor's last known address at least 20 days before the debt is referred to the
commissioner. The notice must state the nature and amount of the debt, identify to whom the debt
is owed, and inform the debtor of the remedies available under this chapter.
History: 1994 c 632 art 3 s 41

16D.08 COLLECTION DUTIES AND POWERS.
    Subdivision 1. Duties. The commissioner shall take all reasonable and cost-effective actions
to collect debts referred to the commissioner.
    Subd. 2. Powers. (a) In addition to the collection remedies available to private collection
agencies in this state, the commissioner, with legal assistance from the attorney general, may
utilize any statutory authority granted to a referring agency for purposes of collecting debt owed
to that referring agency. The commissioner may also use the tax collection remedies in sections
270C.03, subdivision 1, clause (8), 270C.31, 270C.32, 270C.52, subdivisions 2 and 3, 270C.63,
270C.65, and 270C.67 to 270C.72. A debtor may take advantage of any administrative or appeal
rights contained in the listed sections. For administrative and appeal rights for nontax debts,
references to administrative appeals or to the taxpayer rights advocate shall be construed to be
references to the case reviewer, references to Tax Court shall be construed to mean district court,
and offers in compromise shall be submitted to the referring agency. A debtor who qualifies for
cancellation of collection costs under section 16D.11, subdivision 3, clause (1), can apply to the
commissioner for reduction or release of a continuous wage levy, if the debtor establishes that the
debtor needs all or a portion of the wages being levied upon to pay for essential living expenses,
such as food, clothing, shelter, medical care, or expenses necessary for maintaining employment.
The commissioner's determination not to reduce or release a continuous wage levy is appealable
to district court. The word "tax" or "taxes" when used in the tax collection statutes listed in this
subdivision also means debts referred under this chapter.
(b) Before using the tax collection remedies listed in this subdivision, notice and demand for
payment of the amount due must be given to the person liable for the payment or collection of
the debt at least 30 days prior to the use of the remedies. The notice must be sent to the person's
last known address and must include a brief statement that sets forth in simple and nontechnical
terms the amount and source of the debt, the nature of the available collection remedies, and
remedies available to the debtor.
History: 1994 c 632 art 3 s 42; 1995 c 254 art 5 s 8; 1996 c 390 s 21; 1998 c 366 s 34;
1Sp2001 c 5 art 7 s 1; 1Sp2003 c 1 art 2 s 57; 2005 c 151 art 2 s 1

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.
    Subd. 2.[Repealed, 2003 c 112 art 1 s 19]
History: 1994 c 632 art 3 s 43; 1996 c 390 s 22; 1999 c 243 art 2 s 1; 2000 c 490 art 13
s 3; 2003 c 112 art 1 s 14

16D.10 CASE REVIEWER.
    Subdivision 1. Duties. The commissioner shall make a case reviewer available to debtors.
The reviewer must be available to answer a debtor's questions concerning the collection process
and to review the collection activity taken. If the reviewer reasonably believes that the particular
action being taken is unreasonable or unfair, the reviewer may make recommendations to the
commissioner in regard to the collection action.
    Subd. 2. Authority to issue debtor assistance order. On application filed by a debtor
with the case reviewer, in the form, manner, and in the time prescribed by the commissioner,
and after thorough investigation, the case reviewer may issue a debtor assistance order if, in
the determination of the case reviewer, the manner in which the state debt collection laws are
being administered is creating or will create an unjust and inequitable result for the debtor.
Debtor assistance orders are governed by the provisions relating to taxpayer assistance orders
under section 270C.37.
    Subd. 3. Transfer of duties to taxpayer rights advocate. All duties and authority of the
case reviewer under subdivisions 1 and 2 are transferred to the taxpayer rights advocate.
History: 1994 c 632 art 3 s 44; 2005 c 151 art 1 s 116; art 9 s 1

16D.11 COLLECTION COSTS.
    Subdivision 1. Imposition. As determined by the commissioner of finance, collection
costs shall be added to the debts referred to the commissioner or private collection agency for
collection. Collection costs are collectible by the commissioner or private agency from the debtor
at the same time and in the same manner as the referred debt. The referring agency shall advise
the debtor of collection costs under this section and the debtor's right to cancellation of collection
costs under subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
If the commissioner or private agency collects an amount less than the total due, the payment is
applied proportionally to collection costs and the underlying debt unless the commissioner of
finance has waived this requirement for certain categories of debt pursuant to the department's
internal guidelines. Collection costs collected by the commissioner under this subdivision or
retained under subdivision 6 shall be deposited in the general fund as nondedicated receipts.
Collection costs collected by private agencies are appropriated to the referring agency to pay
the collection fees charged by the private agency. Collections of collection costs in excess of
collection agency fees must be deposited in the general fund as nondedicated receipts.
    Subd. 2. Computation. At the time a debt is referred, the amount of collection costs is equal
to 15 percent of the debt, 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 agency. 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. 3. Cancellation. Collection costs imposed under subdivision 1 shall be canceled and
subtracted from the amount due if:
(1) the debtor's household income as defined in section 290A.03, subdivision 5, excluding
the exemption subtractions in subdivision 3, paragraph (3) of that section, for the 12 months
preceding the date of referral is less than twice the annual federal poverty guideline under United
States Code, title 42, section 9902, subsection (2);
(2) within 60 days after the first contact with the debtor by the enterprise or collection
agency, the debtor establishes reasonable cause for the failure to pay the debt prior to referral of
the debt to the enterprise;
(3) a good faith dispute as to the legitimacy or the amount of the debt is made, and payment
is remitted or a payment agreement is entered into within 30 days after resolution of the dispute;
(4) good faith litigation occurs and the debtor's position is substantially justified, and if the
debtor does not totally prevail, the debt is paid or a payment agreement is entered into within 30
days after the judgment becomes final and nonappealable; or
(5) collection costs have been added by the referring agency and are included in the amount
of the referred debt.
    Subd. 4. Appeal. Decisions of the commissioner denying an application to cancel collection
costs under subdivision 3 are subject to the contested case procedure under chapter 14.
    Subd. 5. Refund. If collection costs are collected and then canceled, the amount of the
collection costs shall be refunded to the debtor within 30 days. The amount necessary to pay the
refunds is annually appropriated to the commissioner.
    Subd. 6. Charge to referring agency. If collection costs are canceled under subdivision
3, an amount equal to the costs is retained by the commissioner from the debt collected, and is
accounted for and subject to the same provisions of this chapter as if the costs had been collected
from the debtor.
    Subd. 7. Adjustment of rate. By June 1 of each year, the commissioner of finance 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 shall
the rate of collection costs when a debt is first referred exceed three-fifths of the maximum
collection costs, and in no event shall the rate of the maximum 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.
History: 1995 c 254 art 5 s 9; 1996 c 390 s 23,24; 1997 c 187 art 3 s 3; 1998 c 366 s 35;
2002 c 379 art 1 s 9; 2005 c 151 art 2 s 17

16D.12 PAYMENT OF COLLECTION AGENCY FEES.
Unless otherwise expressly prohibited by law, a state agency may pay for the services of the
commissioner or a private collection agency from the money collected. The portion of the money
collected which must be paid to the commissioner or the collection agency as its collection fee is
appropriated from the fund to which the collected money is due.
History: 1995 c 254 art 5 s 10; 1996 c 390 s 25

16D.13 INTEREST.
    Subdivision 1. Authority. Unless otherwise provided by a contract out of which the debt
arises, by state or federal law, or by a written justification from an agency and approved by the
Department of Finance showing the costs of charging interest exceed the benefit, a state agency
shall charge simple interest on debts owed to the state at the rate provided in subdivision 2 if
notice has been given in accordance with this subdivision. Interest charged under this section
begins to accrue on the 30th calendar day following the state agency's first written demand for
payment that includes notification to the debtor that interest will begin to accrue on the debt in
accordance with this section.
    Subd. 2. Computation. Notwithstanding chapter 334, the rate of interest is the rate
established by the Department of Revenue under section 270C.40.
    Subd. 3. Exclusion. A state agency may not charge interest under this section on
overpayments of assistance benefits under the programs formerly codified in sections 256.031
to 256.0361, 256.72 to 256.87, and under chapters 256D and 256I, or the federal food stamp
program. Notwithstanding this prohibition, any debts that have been reduced to judgment under
these programs are subject to the interest charges provided under section 549.09.
History: 1995 c 254 art 5 s 11; 1999 c 159 s 4; 2003 c 112 art 1 s 15,16; 2005 c 151 art 2 s 17

16D.14 VENUE.
    Subdivision 1. Authorization. The commissioner or the attorney general may bring an
action to recover debts owed to the state in Ramsey County District Court or Ramsey County
Conciliation Court at the discretion of the state. In order to bring a cause of action under this
section in any county other than the county where the debtor resides or where the cause of action
arose, the commissioner or the attorney general must notify the debtor as provided in subdivisions
2 to 4, unless that venue is authorized by other law.
    Subd. 2. Conciliation court; claims for $2,500 or less. (a) The commissioner or the
attorney general may bring a conciliation court action where the cause of action arose or where
the debtor resides. Before bringing a conciliation court action for a claim for $2,500 or less under
this section in any county other than where the debtor resides or where the cause of action arose,
the commissioner or the attorney general shall send a form by first class mail to the debtor's
last known address notifying the debtor of the intent to bring an action in Ramsey County. The
commissioner or attorney general must enclose a form for the debtor to use to request that the
action not be brought in Ramsey County and a self-addressed, postage paid envelope. The form
must advise the debtor of the right to request that the action not be brought in Ramsey County and
that the debtor has 30 days from the date of the form to make this request.
(b) If the debtor timely returns the form requesting the action not be brought in Ramsey
County, the commissioner or attorney general may only file the action in the county of the
debtor's residence, the county where the cause of action arose, or as provided by other law.
The commissioner or attorney general shall notify the debtor of the action taken. If the debtor
does not timely return the form, venue is as chosen by the commissioner or attorney general as
authorized under this section.
(c) If a judgment is obtained in Ramsey County Conciliation Court when the form was
sent by first class mail under this subdivision and the debtor reasonably demonstrates that the
debtor did not reside at the address where the form was sent or that the debtor did not receive the
form, the commissioner or the attorney general shall vacate the judgment without prejudice and
return any funds collected as a result of enforcement of the judgment. Evidence of the debtor's
correct address include, but are not limited to, a driver's license, homestead declaration, school
registration, utility bills, or a lease or rental agreement.
    Subd. 3. Conciliation court claims exceeding $2,500. (a) The commissioner or the attorney
general may bring a conciliation court action where the cause of action arose or where the debtor
resides. In order to bring a conciliation court claim that exceeds $2,500 under this section in a
county other than where the debtor resides or where the cause of action arose, the commissioner
or the attorney general shall serve with the conciliation court claim a change of venue form for the
debtor to use to request that venue be changed and a self-addressed, postage paid return envelope.
This form must advise the debtor that the form must be returned within 30 days of the date of
service or venue will remain in Ramsey County.
(b) If the debtor timely returns the change of venue form requesting a change of venue, the
commissioner or attorney general shall change the venue of the action to the county of the debtor's
residence, the county where the cause of action arose, as provided by other law, or dismiss the
action. The commissioner or attorney general must notify the debtor of the action taken. If the
debtor does not timely return the form, venue is as chosen by the commissioner or attorney
general as authorized under this section. The commissioner or the attorney general shall file the
signed return receipt card or the proof of service with the court.
    Subd. 4. District court. (a) In order to bring a district court action under this section in any
county other than where the debtor resides or where the cause of action arose, the commissioner
or attorney general shall serve the change of venue form with the summons and complaint or
petition commencing the collection action. Two copies of the form must be served along with a
self-addressed, postage paid return envelope. The form must advise the debtor that the form must
be returned within 20 days of the date of service or venue will remain in Ramsey County. If the
debtor timely returns the change of venue form, the time to answer the summons and complaint or
petition runs from the date of debtor's request for change of venue.
(b) If the debtor timely returns the change of venue form requesting that the action not be
brought in Ramsey County, the commissioner or attorney general shall change the venue of the
action to the county of the debtor's residence, the county where the cause of action arose, as
provided by other law, or dismiss the action. The commissioner or attorney general shall notify
the debtor of the action taken. If the debtor is served the form to change venue along with the
district court summons and complaint or petition, in accordance with court rules, but does not
return the form within the statutory timelines, venue is as chosen by the commissioner or attorney
general as authorized under this section. The commissioner or attorney general shall file the proof
of service along with the summons and complaint or petition commencing the lawsuit.
    Subd. 5. Fees. No court filing fees, docketing fees, release of judgment fees, or any other
fees or costs for court services may be assessed against the state for actions filed by the state or a
state agency seeking monetary relief in favor of the state.
History: 1995 c 254 art 5 s 12; 1998 c 366 s 36-38

16D.15 COMPROMISE OF DEBT.
Unless expressly prohibited by other federal or state law, a state agency may compromise
debts owed to the state, whether reduced to judgment or not, where the state agency determines
that it is in the best interests of the state to do so.
History: 1995 c 254 art 5 s 13

16D.16 SETOFFS.
    Subdivision 1. Authorization. Unless prohibited by other law, the state agency utilizes a
more specific setoff statute, or the state payments are subject to a more specific setoff statute,
the commissioner or a state agency may automatically deduct the amount of a debt owed to the
state from any state payment due to the debtor. Tax refunds, earned income tax credit, child care
credit, funds exempt under section 550.37, or funds owed to an individual who is receiving
assistance under the provisions of chapter 256 are not subject to setoff under this section. If a
debtor has entered into a written payment plan with respect to payment of a specified debt, the
right of setoff may not be used to satisfy that debt. Notwithstanding section 181.79, the state
may deduct from the wages due or earned by a state employee to collect a debt, subject to the
limitations in section 571.922.
    Subd. 2. Notice and hearing. Before setoff, the commissioner or state agency shall mail
written notice by certified mail to the debtor, addressed to the debtor's last known address, that
the commissioner or state agency intends to set off a debt owed to the state by the debtor against
future payments due the debtor from the state. For debts owed to the state that have not been
reduced to judgment, if no administrative appeal process or a hearing by an impartial decision
maker on the validity or accuracy of the debt has yet been made available to the debtor, before
setoff for a prejudgment debt, the notice to the debtor must advise that the debtor has a right to
make a written request for a contested case hearing on the validity of the debt or the right to setoff.
The debtor has 30 days from the date of that notice to make a written request for a contested case
hearing to contest the validity of the debt or the right to setoff. The debtor's request must state the
debtor's reasons for contesting the debt or the right to setoff. If the commissioner or state agency
desires to pursue the right to setoff following receipt of the debtor's request for a hearing, the
commissioner or state agency shall schedule a contested case hearing within 30 days of the receipt
of the request for the hearing. If the commissioner or state agency decides not to pursue the right
to setoff, the debtor must be notified of that decision.
History: 1995 c 254 art 5 s 14; 1998 c 366 s 39

16D.17 ENFORCEMENT OF STATUTORY PENALTIES.
A state agency may enforce a final penalty order imposed for violations of state law in the
same manner as a district court judgment if:
(1) notice and opportunity for a hearing on the penalty has been provided and the notice gives
at least 30 days to request a hearing, unless the agency statute provides for a different timeline; and
(2) the notice or order of the penalty states that when the order becomes final, the agency
may file and enforce the penalty as a judgment without further notice or additional proceedings.
The administrative order may be filed with a district court administrator along with an
affidavit of identification and amount owed, and the court administrator shall enter and docket
the administrative order as a civil judgment.
History: 1998 c 366 s 40