HF 464

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/30/2016 10:31am

A bill for an act
relating to family law; requiring notice of certain rights; modifying interest
rates on judgments in family court actions; amending Minnesota Statutes 2014,
sections 518.17, subdivision 3, by adding a subdivision; 549.09, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 518.17, subdivision 3, is amended to read:

Subd. 3.

Custody order.

(a) Upon adjudging the nullity of a marriage, or in a
dissolution or separation proceeding, or in a child custody proceeding, the court shall
make such further order as it deems just and proper concerning:

(1) the legal custody of the minor children of the parties which shall be sole or joint;

(2) their physical custody and residence; and

(3) their support. In determining custody, the court shall consider the best interests
of each child and shall not prefer one parent over the other solely on the basis of the sex
of the parent.

(b) The court shall grant the deleted text begin following deleted text end rights new text begin listed in subdivision 3a new text end to each of the
parties, new text begin regardless of custodial designation, new text end unless specific findings are made under section
518.68, subdivision 1. deleted text begin Each party has the following rights: deleted text end new text begin The court shall include in the
custody order the notice under subdivision 3a.
new text end

deleted text begin (1) right of access to, and to receive copies of, school, medical, dental, religious
training, police reports, and other important records and information about the minor
children;
deleted text end

deleted text begin (2) right of access to information regarding health or dental insurance available to
the minor children;
deleted text end

deleted text begin (3) right to be informed by the other party as to the name and address of the school
of attendance of the minor children;
deleted text end

deleted text begin (4) right to be informed by school officials about the children's welfare, educational
progress and status, and to attend school and parent-teacher conferences. The school is
not required to hold a separate conference for each party;
deleted text end

deleted text begin (5) right to be notified by the other party of an accident or serious illness of a minor
child, including the name of the health care provider and the place of treatment;
deleted text end

deleted text begin (6) right to be notified by the other party if the minor child is the victim of an alleged
crime, including the name of the investigating law enforcement officer or agency. There is
no duty to notify if the party to be notified is the alleged perpetrator; and
deleted text end

deleted text begin (7) right to reasonable access and telephone contact with the minor children.
deleted text end

(c) The court may waive any of the rights under this section if it finds it is necessary
to protect the welfare of a party or child.

(d) If a court order or law prohibits contact by a party, deleted text begin notification required deleted text end new text begin the
notifications and information required to be sent new text end under deleted text begin paragraph (b) deleted text end new text begin subdivision 3a new text end ,
clauses (1), (2), (3), (5), and (6), shall not be new text begin made new text end by direct communication of the parties.
Third-party communication shall be limited to the specific purposes delineated in this
subdivision new text begin or subdivision 3a new text end . Nothing in this subdivision new text begin or subdivision 3a new text end shall modify,
suspend, revoke, or terminate a court order or law that prohibits contact by a party.

(e) If one of the parties is a program participant under chapter 5B, the other party
shall send all information and notifications required under deleted text begin paragraph (b) deleted text end new text begin subdivision 3a new text end ,
clauses (1), (2), (3), (5), and (6), to the participant's designated address. The program
participant is exempted from the requirements of deleted text begin paragraph (b) deleted text end new text begin subdivision 3a new text end .

(f) Failure to notify or inform a party of rights under deleted text begin paragraph (b) deleted text end new text begin subdivision 3a new text end
does not form a basis for modification under section 518.18, paragraph (d), clause (iv),
unless other grounds are alleged which would support a modification.

Sec. 2.

Minnesota Statutes 2014, section 518.17, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Contents on notice. new text end

new text begin The required notice under subdivision 3 must be
substantially as follows:
new text end

new text begin "NOTICE
new text end new text begin EACH PARTY IS GRANTED THE FOLLOWING RIGHTS:
new text end

new text begin (1) right of access to, and to receive copies of, school, medical, dental, religious
training, police reports, and other important records and information about the minor
children;
new text end

new text begin (2) right of access to information regarding health or dental insurance available to
the minor children;
new text end

new text begin (3) right to be informed by the other party as to the name and address of the school
of attendance of the minor children;
new text end

new text begin (4) right to be informed by school officials about the children's welfare, educational
progress and status, and to attend school and parent-teacher conferences. The school is
not required to hold a separate conference for each party;
new text end

new text begin (5) right to be notified by the other party of an accident or serious illness of a minor
child, including the name of the health care provider and the place of treatment;
new text end

new text begin (6) right to be notified by the other party if the minor child is the victim of an alleged
crime, including the name of the investigating law enforcement officer or agency. There is
no duty to notify if the party to be notified is the alleged perpetrator; and
new text end

new text begin (7) right to reasonable access and telephone contact with the minor children."
new text end

Sec. 3.

Minnesota Statutes 2014, section 549.09, subdivision 1, is amended to read:

Subdivision 1.

When owed; rate.

(a) When a judgment or award is for the recovery
of money, including a judgment for the recovery of taxes, interest from the time of the
verdict, award, or report until judgment is finally entered shall be computed by the court
administrator or arbitrator as provided in paragraph (c) and added to the judgment or award.

(b) Except as otherwise provided by contract or allowed by law, preverdict,
preaward, or prereport interest on pecuniary damages shall be computed as provided
in paragraph (c) from the time of the commencement of the action or a demand for
arbitration, or the time of a written notice of claim, whichever occurs first, except as
provided herein. The action must be commenced within two years of a written notice of
claim for interest to begin to accrue from the time of the notice of claim. If either party
serves a written offer of settlement, the other party may serve a written acceptance or a
written counteroffer within 30 days. After that time, interest on the judgment or award
shall be calculated by the judge or arbitrator in the following manner. The prevailing
party shall receive interest on any judgment or award from the time of commencement
of the action or a demand for arbitration, or the time of a written notice of claim, or as
to special damages from the time when special damages were incurred, if later, until the
time of verdict, award, or report only if the amount of its offer is closer to the judgment or
award than the amount of the opposing party's offer. If the amount of the losing party's
offer was closer to the judgment or award than the prevailing party's offer, the prevailing
party shall receive interest only on the amount of the settlement offer or the judgment or
award, whichever is less, and only from the time of commencement of the action or a
demand for arbitration, or the time of a written notice of claim, or as to special damages
from when the special damages were incurred, if later, until the time the settlement offer
was made. Subsequent offers and counteroffers supersede the legal effect of earlier offers
and counteroffers. For the purposes of clause (2), the amount of settlement offer must
be allocated between past and future damages in the same proportion as determined by
the trier of fact. Except as otherwise provided by contract or allowed by law, preverdict,
preaward, or prereport interest shall not be awarded on the following:

(1) judgments, awards, or benefits in workers' compensation cases, but not including
third-party actions;

(2) judgments or awards for future damages;

(3) punitive damages, fines, or other damages that are noncompensatory in nature;

(4) judgments or awards not in excess of the amount specified in section 491A.01; and

(5) that portion of any verdict, award, or report which is founded upon interest, or
costs, disbursements, attorney fees, or other similar items added by the court or arbitrator.

(c)(1) new text begin (i) new text end For a judgment or award of $50,000 or less or a judgment or award for or
against the state or a political subdivision of the state, regardless of the amount, new text begin or a
judgment or award in a family court action, regardless of the amount, new text end the interest shall
be computed as simple interest per annum. The rate of interest shall be based on the
secondary market yield of one year United States Treasury bills, calculated on a bank
discount basis as provided in this section.

On or before the 20th day of December of each year the state court administrator
shall determine the rate from the one-year constant maturity treasury yield for the most
recent calendar month, reported on a monthly basis in the latest statistical release of the
board of governors of the Federal Reserve System. This yield, rounded to the nearest one
percent, or four percent, whichever is greater, shall be the annual interest rate during the
succeeding calendar year. The state court administrator shall communicate the interest
rates to the court administrators and sheriffs for use in computing the interest on verdicts
and shall make the interest rates available to arbitrators.

This deleted text begin clause deleted text end new text begin item new text end applies to any section that references section 549.09 by citation
for the purposes of computing an interest rate on any amount owed to or by the state or a
political subdivision of the state, regardless of the amount.

new text begin (ii) The court, in a family court action, may order a lower interest rate or no interest
rate if the parties agree or if the court makes findings explaining why application of a
lower interest rate or no interest rate is necessary to avoid causing an unfair hardship to
the debtor. This item does not apply to child support or spousal maintenance judgments
subject to section 548.091.
new text end

(2) For a judgment or award over $50,000, other than a judgment or award for or
against the state or a political subdivision of the state new text begin or a judgment or award in a family
court action new text end , the interest rate shall be ten percent per year until paid.

(3) When a judgment creditor, or the judgment creditor's attorney or agent, has
received a payment after entry of judgment, whether the payment is made voluntarily by
or on behalf of the judgment debtor, or is collected by legal process other than execution
levy where a proper return has been filed with the court administrator, the judgment
creditor, or the judgment creditor's attorney, before applying to the court administrator
for an execution shall file with the court administrator an affidavit of partial satisfaction.
The affidavit must state the dates and amounts of payments made upon the judgment after
the most recent affidavit of partial satisfaction filed, if any; the part of each payment that
is applied to taxable disbursements and to accrued interest and to the unpaid principal
balance of the judgment; and the accrued, but the unpaid interest owing, if any, after
application of each payment.

(d) This section does not apply to arbitrations between employers and employees
under chapter 179 or 179A. An arbitrator is neither required to nor prohibited from
awarding interest under chapter 179 or under section 179A.16 for essential employees.

(e) For purposes of this subdivision:

(1) "state" includes a department, board, agency, commission, court, or other entity
in the executive, legislative, or judicial branch of the state; and

(2) "political subdivision" includes a town, statutory or home rule charter city,
county, school district, or any other political subdivision of the state.