HF 2466

as introduced - 91st Legislature (2019 - 2020) Posted on 03/13/2019 11:21am

A bill for an act
relating to children; modifying calculation of child support; amending Minnesota
Statutes 2018, sections 518A.32, subdivision 3; 518A.42, subdivision 3; 518A.53,
subdivision 11; 518A.685.

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

Section 1.

Minnesota Statutes 2018, section 518A.32, subdivision 3, is amended to read:

Subd. 3.

Parent not considered voluntarily unemployed, underemployed, or employed
on a less than full-time basis.

A parent is not considered voluntarily unemployed,
underemployed, or employed on a less than full-time basis upon a showing by the parent
that:

(1) the unemployment, underemployment, or employment on a less than full-time basis
is temporary and will ultimately lead to an increase in income;

(2) the unemployment, underemployment, or employment on a less than full-time basis
represents a bona fide career change that outweighs the adverse effect of that parent's
diminished income on the child; deleted text begin or
deleted text end

(3) the unemployment, underemployment, or employment on a less than full-time basis
is because a parent is physically or mentally incapacitated or due to incarceration deleted text begin , except
where the reason for incarceration is the parent's nonpayment of support. deleted text end new text begin ; or
new text end

new text begin (4) a governmental agency authorized to determine eligibility for general assistance or
supplemental social security income has determined that the individual is eligible to receive
general assistance or supplemental social security income; however, actual income earned
by the parent may be considered for the purpose of calculating child support.
new text end

Sec. 2.

Minnesota Statutes 2018, section 518A.42, subdivision 3, is amended to read:

Subd. 3.

Exception.

This section does not apply to an obligor who is incarcerated new text begin or is
a recipient of a temporary assistance to a needy family (TANF) cash grant new text end .

Sec. 3.

Minnesota Statutes 2018, section 518A.53, subdivision 11, is amended to read:

Subd. 11.

Lump-sum payments.

Before transmittal to the obligor of a lump-sum payment
of $500 or more including, but not limited to, severance pay, accumulated sick pay, vacation
pay, bonuses, commissions, or other pay or benefits, a payor of funds:

(1) who has been served with an order for or notice of income withholding under this
section shall:

(i) notify the public authority of the lump-sum payment that is to be paid to the obligor;

(ii) hold the lump-sum payment for 30 days after the date on which the lump-sum payment
would otherwise have been paid to the obligor, notwithstanding sections 176.221, 176.225,
176.521, 181.08, 181.101, 181.11, 181.13, and 181.145; and

(iii) upon order of the court, and after a showing of past willful nonpayment of support,
pay any specified amount of the lump-sum payment to the public authority for future support;
or

(2) shall pay the lessor of the amount of the lump-sum payment or the total amount of
the judgment and arrearages upon service by United States mail of a sworn affidavit from
the public authority or a court order that includes the following information:

(i) that a judgment entered pursuant to section 548.091, subdivision 1a, exists against
the obligor, or that other support arrearages exist;

(ii) the current balance of the judgment or arrearage; and

(iii) that a portion of the judgment or arrearage remains unpaid.

deleted text begin The Consumer Credit Protection Act, title 15 of the United States Code, section 1673(b),
does not apply to lump-sum payments.
deleted text end

Sec. 4.

Minnesota Statutes 2018, section 518A.685, is amended to read:

518A.685 CONSUMER REPORTING AGENCY; REPORTING ARREARS.

(a) If a public authority determines that an obligor has not paid the current monthly
support obligation plus any required arrearage payment for three months, the public authority
must report this information to a consumer reporting agency.

(b) Before reporting that an obligor is in arrears for court-ordered child support, the
public authority must:

(1) provide written notice to the obligor that the public authority intends to report the
arrears to a consumer reporting agency; and

(2) mail the written notice to the obligor's last known mailing address at least 30 days
before the public authority reports the arrears to a consumer reporting agency.

(c) The obligor may, within 21 days of receipt of the notice, do the following to prevent
the public authority from reporting the arrears to a consumer reporting agency:

(1) pay the arrears in full; or

(2) request an administrative review. An administrative review is limited to issues of
mistaken identity, a pending legal action involving the arrears, or an incorrect arrears balance.

deleted text begin (d) If the public authority has reported that an obligor is in arrears for court-ordered
child support and subsequently determines that the obligor has paid the court-ordered child
support arrears in full, or is paying the current monthly support obligation plus any required
arrearage payment, the public authority must report to the consumer reporting agency that
the obligor is currently paying child support as ordered by the court.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end A public authority that reports arrearage information under this section must
make monthly reports to a consumer reporting agency. The monthly report must be consistent
with credit reporting industry standards for child support.

deleted text begin (f) deleted text end new text begin (e) new text end For purposes of this section, "consumer reporting agency" has the meaning given
in section 13C.001, subdivision 4, and United States Code, title 15, section 1681a(f).