HF 490

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 01:58pm

A bill for an act
relating to child support; modifying certain fees for IV-D services; amending
Minnesota Statutes 2018, section 518A.51.

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

Section 1.

Minnesota Statutes 2018, section 518A.51, is amended to read:

518A.51 FEES FOR IV-D SERVICES.

(a) When a recipient of IV-D services is no longer receiving assistance under the state's
title IV-A, IV-E foster care, or medical assistance programs, the public authority responsible
for child support enforcement must notify the recipient, within five working days of the
notification of ineligibility, that IV-D services will be continued unless the public authority
is notified to the contrary by the recipient. The notice must include the implications of
continuing to receive IV-D services, including the available services and fees, cost recovery
fees, and distribution policies relating to fees.

(b) In the case of an individual who has never received assistance under a state program
funded under title IV-A of the Social Security Act and for whom the public authority has
collected at least deleted text begin $500 deleted text end new text begin $550 new text end of support, the public authority must impose an annual federal
collections fee of deleted text begin $25 deleted text end new text begin $35 new text end for each case in which services are furnished. This fee must be
retained by the public authority from support collected on behalf of the individual, but not
from the first deleted text begin $500 deleted text end new text begin $550 new text end collected.

(c) When the public authority provides full IV-D services to an obligee who has applied
for those services, upon written notice to the obligee, the public authority must charge a
cost recovery fee of two percent of the amount collected. This fee must be deducted from
the amount of the child support and maintenance collected and not assigned under section
256.741 before disbursement to the obligee. This fee does not apply to an obligee who:

(1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or
medical assistance programs; or

(2) has received assistance under the state's title IV-A or IV-E foster care programs,
until the person has not received this assistance for 24 consecutive months.

(d) When the public authority provides full IV-D services to an obligor who has applied
for such services, upon written notice to the obligor, the public authority must charge a cost
recovery fee of two percent of the monthly court-ordered child support and maintenance
obligation. The fee may be collected through income withholding, as well as by any other
enforcement remedy available to the public authority responsible for child support
enforcement.

(e) Fees assessed by state and federal tax agencies for collection of overdue support
owed to or on behalf of a person not receiving public assistance must be imposed on the
person for whom these services are provided. The public authority upon written notice to
the obligee shall assess a fee of $25 to the person not receiving public assistance for each
successful federal tax interception. The fee must be withheld prior to the release of the funds
received from each interception and deposited in the general fund.

(f) Federal collections fees collected under paragraph (b) and cost recovery fees collected
under paragraphs (c) and (d) retained by the commissioner of human services shall be
considered child support program income according to Code of Federal Regulations, title
45, section 304.50, and shall be deposited in the special revenue fund account established
under paragraph (h). The commissioner of human services must elect to recover costs based
on either actual or standardized costs.

(g) The limitations of this section on the assessment of fees shall not apply to the extent
inconsistent with the requirements of federal law for receiving funds for the programs under
title IV-A and title IV-D of the Social Security Act, United States Code, title 42, sections
601 to 613 and United States Code, title 42, sections 651 to 662.

(h) The commissioner of human services is authorized to establish a special revenue
fund account to receive the federal collections fees collected under paragraph (b) and cost
recovery fees collected under paragraphs (c) and (d).

(i) The nonfederal share of the cost recovery fee revenue must be retained by the
commissioner and distributed as follows:

(1) one-half of the revenue must be transferred to the child support system special revenue
account to support the state's administration of the child support enforcement program and
its federally mandated automated system;

(2) an additional portion of the revenue must be transferred to the child support system
special revenue account for expenditures necessary to administer the fees; and

(3) the remaining portion of the revenue must be distributed to the counties to aid the
counties in funding their child support enforcement programs.

(j) The nonfederal share of the federal collections fees must be distributed to the counties
to aid them in funding their child support enforcement programs.

(k) The commissioner of human services shall distribute quarterly any of the funds
dedicated to the counties under paragraphs (i) and (j) using the methodology specified in
section 256.979, subdivision 11. The funds received by the counties must be reinvested in
the child support enforcement program and the counties must not reduce the funding of
their child support programs by the amount of the funding distributed.