OAH 58-1100-21197-2

 

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

FOR THE DEPARTMENT OF CORRECTIONS

 

 

In the Matter of Jon Ray Olson

FINDINGS OF FACT,

CONCLUSIONS AND

ORDER

 

 

          This matter came on for hearing before Administrative Law Judge Administrative Law Judge (ALJ) Linda F. Close on April 23, 2010 pursuant to a Notice and Order for Hearing dated March 18, 2010.  The matter was heard by telephone conference call.

 

          Krista Guinn Fink, Associate Legal Counsel, Minnesota Department of Corrections, appeared on behalf of the Department of Corrections (DOC).  Jon Ray Olson (the Respondent) appeared on his own behalf.  His mother, Sharon Olson, also appeared and testified.

 

STATEMENT OF THE ISSUE

 

          Is the Department authorized to collect from Respondent, through the Minnesota Revenue Recapture System, a supervision fee of $180.00 pursuant to Minn. Stat. § 241.272 ?

 

Based on the evidence in the hearing record, the Administrative Law Judge makes the following:

 

FINDINGS OF FACT

 

1.               On November 20, 2007, Respondent was placed on probation for the offense of possession of controlled substances.[1]  On November 26, 2007, Respondent reported to his Corrections Agent, David Leal, at the Buffalo Office of the Department of Corrections.  Agent Leal informed Respondent of his liability for an annual $120.00 supervision fee pursuant to Minn. Stat. § 241.272, subd. 2. [2]

 

2.               When he met with Agent Leal, Respondent signed a one-year probation agreement.  He understood that, upon completion of the terms of probation, his probation would end on November 20, 2008.[3]  Respondent’s mother accompanied him to that meeting.  She also understood Agent Leal to say that Respondent’s probation would end in November 2008 if Respondent complied with the terms of the probation.[4]

 

3.               On February 27, 2008, Respondent called the probation office to let them know that he had completed his jail time and to ask whether he should come in to meet with Agent Leal.  He was told by a support staff person to attend his group meeting on March 20th.  Respondent told the staff person that he had nine months left on his probation, but the staff person said that he was on probation until 2012.[5]

 

4.               On October 29, 2008, Respondent paid the $120.00 fee.  By that time, Respondent had completed a required chemical abuse program.  At that point, he believed he had completed all the terms of probation and that it would end the next month.[6]

 

5.               Respondent heard nothing from the probation office until December 2009.  At that time, Corrections Agent Cindy Ernhart sent a letter to Respondent telling him that he had to set up probation classes for 2010 and, apparently, assessing a $180.00 fee for supervision from November 2008 to November 2009.[7]  Respondent’s mother contacted Agent Ernhart about what the fee was for and why the Agent thought Respondent was still under supervision.  Agent Ernhart explained that Agent Leal had been reassigned in June 2008 and that Respondent’s case had been assigned to her.  Because she had 550 cases, she had not been able to get to Respondent’s case until December 2009.  She told Respondent’s mother that the $180.00 supervision fee was for supervision for the 2008-09 probation year.

 

6.               Respondent’s mother explained to Agent Ernhart that Respondent’s probation was to have ended in November 2008 in accordance with the probation agreement.  After speaking with Respondent’s mother, Agent Ernhart processed the paperwork for the dismissal of Respondent’s case.[8]

 

7.               On December 29, 2009, a Wright County District Court Judge signed an Order dismissing the charges against Respondent and discharging him from probation without an adjudication of guilt.[9]

 

8.               By a letter the Department received on February 18, 2010, from Respondent’s mother, the Respondent contested the claim for supervision fees.  This hearing process followed.

 

9.               In the letter requesting a hearing, it appears that the $180.00 fee had already been taken from Respondent through revenue recapture by the time of the hearing request.[10]  Similarly, at hearing, the Respondent’s mother indicated that a refund of the $180.00 is being requested.[11]

 

Based on the Findings of Fact, the Administrative Law Judge makes the following:

CONCLUSIONS

 

1.       The ALJ has jurisdiction in this matter pursuant to Minn. Stat. §§ 241.272, 270A.08 and 270A.09.

 

2.       The Notice of Hearing was proper and the DOC has fulfilled all procedural requirements.

 

3.       Respondent became liable for an annual supervision fee of $120.00 on November 20, 2007 as a supervision fee for 2007-08.  Respondent paid the fee in October 2008, as required.

 

4.       The Minnesota Revenue Recapture Act authorizes State agencies, including the Department of Corrections, to collect debts owed to it by filing a claim with the Minnesota Department of Revenue.  The Department of Revenue may collect amounts due to the Department of Corrections by setting off the amount of such debt from refunds due to debtors.  Refunds include individual income tax refunds, political contribution refunds, property tax credits or refunds, and lottery prizes of $600 or more.

 

5.       It is appropriate for the Department of Revenue to collect a supervision fee to defer costs of supervision only when supervision occurs and a probationer is actually required to be on probation.

 

6.       Respondent is not liable for $180.00 additional supervision fee.

 

Based on the Conclusions, the ALJ makes the following:

 

ORDER

 

IT IS ORDERED:

 

1.               The Department of Corrections may not collect the supervision fee of $180.00 from Respondent.

 

2.               If the Department has already collected the $180.00 from Respondent, it shall refund that amount within 30 days.

 

Dated:  April 27, 2010

 

                                                                      s/Linda F. Close

LINDA F. CLOSE

Administrative Law Judge

 

 

Reported:     Digitally recorded

                    No Transcript Prepared

 

 

NOTICE

 

          This Order is the final Decision in this matter pursuant to Minn. Stat. § 270A.09, subd. 3.  Any person aggrieved by this Decision may seek judicial review pursuant to Minn. Stat. §§ 14.63 to 14.68.

 

 

MEMORANDUM

 

The issue in this case is when Respondent’s probation ended.  If it ended in November 2008, as Respondent believes, then his obligation for the 2007-08 supervision fee ended when he paid the $120.00 supervision fee in October 2008.  If it ended in 2009, when the paperwork to formally end it was finally filed with the Court, the fee should not have been opposed.

 

The ALJ has concluded that the Department has not met its burden of showing that the Respondent was actually under supervision and, further, was required to be under supervision according to the terms of probation. 

 

The purpose of the supervision fee is to defray the costs of supervision.[12]  The Department has failed to show any supervision activity between the end of October 2008, when it received the supervision fee for 2007-08 from Respondent, until December 2009 when it assessed a new fee.

 

Respondent and his mother were stunned to receive the letter, in December 2009, from Agent Ernhart assessing a supervision fee.[13]  Respondent’s mother credibly testified about her conversation, in December 2009, with the agent.  Agent Ernhart admitted that her letter to Respondent was her first contact since the case had been reassigned in mid-2008.  The Department produced no log notes or other documents to show otherwise.  It seems clear that no actual supervision occurred during the time for which the Department is requesting an additional fee.

 

In addition, it also appears that Respondent had not been officially released from probation solely due to the inaction of the Department.  Significantly, the Department failed to offer at hearing the full contents of Exhibit 2, which had attached to it, among other documents, the November 2007 Probation Agreement showing a one-year period of supervision.  Both Respondent and his mother credibly testified as to their understanding of the probation’s duration based on the agreement.  Also missing was the attachment showing Respondent’s completion of the chemical use assessment in 2008, during the period the probation agreement was in effect.  When Respondent completed the terms of his probation in November 2008, it was incumbent on the Department to return to court so that the case against Respondent could be dismissed.  Based on the testimony, the ALJ concludes that the Respondent did what was required of him to be taken off probation, and it was only the Department’s failure to follow up that caused Respondent’s status to remain as a probationer.  Under these circumstances, it is patently unfair to assess or collect a supervision fee. 

 

          Because the record is unclear whether the Department has already collected the $180.00, the Order is stated in the alternative so that a refund will issue if the money has been paid to the Department through revenue recapture.

 

L. F. C.



[1]. Ex. 3.

[2]  Ex. 3.  At that time, the Department charged an annual fee of $120.00.  In 2008, it switched to a per case assessment.  A felony level fee, which is involved in this matter, is $300.00.  Ex. 3.

[3]  See Ex. 2.  Exhibit 2 is a copy of a letter written by Respondent’s mother to Corrections Agent Cindy Ernhart in February 2010.  Attached to that letter was a copy of the Wright County Services Probation Agreement setting probation at one year.  Although the Department entered the Exhibit, it did not provide a copy of the Agreement or any of the other attachments to that letter.

[4]  Test. of Respondent; Test, of Sharon Olson.

[5]  Ex. 3, Contact Detail.

[6]  Ex. 3; Test. of Respondent.

[7]  The letter assessing the fee was not offered as an exhibit by the Department.  Like the Probation Agreement referenced in footnote 3 above, the assessment letter had attached to Respondent’s mother’s letter of February 16, 2010, the Department offered as Exhibit 2.  As indicated in footnote 3, none of the attachments were offered with the letter.

[8]  Ex. 2; Test. of S. Olson.

[9]  Ex. 3.

[10]  Ex. 2.

[11]  Test. of S. Olson.

[12]  Minn. Stat. § 241.272, subd. 2.

[13]  Test. of S. Olson; Test. of Respondent.