SF1737

This bill (Minnesota Senate File No. 1737) proposes an amendment to Minnesota Statutes 2024, section 16D.09, subdivision 1, which governs how state agencies handle uncollectible debt. The key change in the bill is to extend the deadline for reporting uncollectible debts to the legislature. Currently, the commissioner of management and budget must submit an annual summary of uncollectible debt by October 31 each year. The bill proposes to change this deadline to November 30.

Additionally, the bill maintains existing provisions that allow state agencies to write off debts deemed uncollectible under specific conditions, such as unsuccessful collection efforts, expiration of the statute of limitations, or bankruptcy discharge. However, this does not eliminate the debtor's legal obligation to pay. The bill also requires agencies to report uncollectible debts quarterly and notify legislative committees when debts of $100,000 or more are deemed uncollectible.

Main Change in the Bill:

• Current deadline for the commissioner’s annual report: October 31
• Proposed new deadline: November 30