1.1 A bill for an act
1.2 relating to state government; changing the date of a certain report; amending
1.3 Minnesota Statutes 2024, section 16D.09, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 16D.09, subdivision 1, is amended to read:
1.6 Subdivision 1.Generally.(a) When a debt is determined by a state agency to be
1.7uncollectible, the debt may be written off by the state agency from the state agency's financial
1.8accounting records and no longer recognized as an account receivable for financial reporting
1.9purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts
1.10have been exhausted, (2) the cost of further collection action will exceed the amount
1.11recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence,
1.12(4) the debtor cannot be located, (5) the available assets or income, current or anticipated,
1.13that may be available for payment of the debt are insufficient, (6) the debt has been
1.14discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt
1.15has expired, or (8) it is not in the public interest to pursue collection of the debt.
1.16 (b) Uncollectible debt must be reported by the state agency as part of its quarterly reports
1.17to the commissioner of management and budget. The basis for the determination of the
1.18uncollectibility of the debt must be maintained by the state agency. If an uncollectible debt
1.19equals or exceeds $100,000, the agency shall notify the chairs and ranking minority members
1.20of the legislative committees with jurisdiction over the state agency's budget at the time the
1.21debt is determined to be uncollectible. The information reported shall contain the entity
1.22associated with the uncollected debt, the amount of the debt, the revenue type, the reason
1.23the debt is considered uncollectible, and the duration the debt has been outstanding. The
1Section 1.
REVISOR EB/BM 25-0039601/10/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1809
NINETY-FOURTH SESSION
Authored by Davis03/03/2025
The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1commissioner of management and budget shall report to the chairs and ranking minority
2.2members of the legislative committees with jurisdiction over Minnesota Management and
2.3Budget an annual summary of the number and dollar amount of debts determined to be
2.4uncollectible during the previous fiscal year by October 31 November 30 of each year.
2.5Determining that the debt is uncollectible does not cancel the legal obligation of the debtor
2.6to pay the debt.
2Section 1.
REVISOR EB/BM 25-0039601/10/25