1.1                          A bill for an act 
  1.2             relating to family law; regulating reductions in 
  1.3             monthly payments for overpayment of support or 
  1.4             maintenance; amending Minnesota Statutes 1995 
  1.5             Supplement, section 518.611, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.8   518.611, subdivision 2, is amended to read: 
  1.9      Subd. 2.  [CONDITIONS OF INCOME WITHHOLDING.] (a) 
  1.10  Withholding shall result when:  
  1.11     (1) the obligor requests it in writing to the public 
  1.12  authority; 
  1.13     (2) the custodial parent requests it by making a motion to 
  1.14  the court and the court finds that previous support has not been 
  1.15  paid on a timely or consistent basis or that the obligor has 
  1.16  threatened expressly or otherwise to stop or reduce payments; or 
  1.17     (3) the obligor fails to make the maintenance or support 
  1.18  payments, and the following conditions are met:  
  1.19     (i) the obligor is at least 30 days in arrears; 
  1.20     (ii) the obligee or the public authority serves written 
  1.21  notice of income withholding, showing arrearage, on the obligor 
  1.22  at least 15 days before service of the notice of income 
  1.23  withholding and a copy of the court's order on the payor of 
  1.24  funds; 
  1.25     (iii) within the 15-day period, the obligor fails to move 
  2.1   the court to deny withholding on the grounds that an arrearage 
  2.2   of at least 30 days does not exist as of the date of the notice 
  2.3   of income withholding, or on other grounds limited to mistakes 
  2.4   of fact, and, ex parte, to stay service on the payor of funds 
  2.5   until the motion to deny withholding is heard; 
  2.6      (iv) the obligee or the public authority sends the payor of 
  2.7   funds a notice of the withholding requirements and the 
  2.8   provisions of this section; and 
  2.9      (v) the obligee serves on the public authority a copy of 
  2.10  the notice of income withholding, a copy of the court's order, 
  2.11  an application, and the fee to use the public authority's 
  2.12  collection services.  
  2.13  For those persons not applying for the public authority's IV-D 
  2.14  services, a monthly service fee of $15 must be charged to the 
  2.15  obligor in addition to the amount of child support ordered by 
  2.16  the court and withheld through automatic income withholding, or 
  2.17  for persons applying for the public authority's IV-D services, 
  2.18  the service fee under section 518.551, subdivision 7, applies.  
  2.19  The county agency shall explain to affected persons the services 
  2.20  available and encourage the applicant to apply for IV-D services.
  2.21     (b) The employer or payor of funds shall withhold from the 
  2.22  obligor's income an additional amount equal to 20 percent of the 
  2.23  monthly child support or maintenance obligation until the 
  2.24  arrearage is paid.  
  2.25     (c) In cases where child support or maintenance is not 
  2.26  assigned under section 256.74, if an obligor has overpaid a 
  2.27  child support or maintenance obligation because of a 
  2.28  modification of or error in the amount owed, the public 
  2.29  authority shall: 
  2.30     (1) apply the amount of the overpayment to reduce the 
  2.31  amount of any child support or maintenance related arrearages or 
  2.32  debts owed to the obligee; and 
  2.33     (2) if an overpayment amount remains after the reduction of 
  2.34  any arrearage or debt, reduce the amount of the child support 
  2.35  remitted to the obligee by an amount equal to no more than 20 
  2.36  percent of the current monthly support or maintenance obligation 
  3.1   and remit this amount to the obligor until the overpayment is 
  3.2   reduced to zero. 
  3.3      (d) The obligor may move the court, under section 518.64, 
  3.4   to modify the order respecting the amount of maintenance or 
  3.5   support. 
  3.6      (d) (e) Every order for support or maintenance shall 
  3.7   provide for a conspicuous notice of the provisions of this 
  3.8   subdivision that complies with section 518.68, subdivision 2.  
  3.9   An order without this notice remains subject to this subdivision.
  3.10     (e) (f) Absent a court order to the contrary, if an 
  3.11  arrearage exists at the time an order for ongoing support or 
  3.12  maintenance would otherwise terminate, income withholding shall 
  3.13  continue in effect in an amount equal to the former support or 
  3.14  maintenance obligation plus an additional amount equal to 20 
  3.15  percent of the monthly child support obligation, until all 
  3.16  arrears have been paid in full.