1.1                          A bill for an act 
  1.2             relating to child support enforcement; modifying 
  1.3             provisions governing the establishment and enforcement 
  1.4             of child support and maintenance; authorizing 
  1.5             disclosure of certain data to the attorney general; 
  1.6             providing for certain financial data matches; changing 
  1.7             provisions for driver's license suspension, motor 
  1.8             vehicle liens, payment agreements, and child support 
  1.9             judgments; modifying provisions governing publication 
  1.10            of names of delinquent obligors; providing for case 
  1.11            reviewers; providing for a child support lien; 
  1.12            regulating work release and probation violation for 
  1.13            criminal nonsupport for certain offenders; requiring a 
  1.14            study; specifying penalties; amending Minnesota 
  1.15            Statutes 1996, sections 8.35; 13.46, subdivision 2; 
  1.16            13.99, by adding a subdivision; 168A.05, subdivision 
  1.17            8; 171.19; 256.87, subdivisions 1, 1a, 3, 5, and by 
  1.18            adding a subdivision; 256.978, subdivisions 1 and 2; 
  1.19            256.979, subdivisions 5, 6, 7, 8, and by adding a 
  1.20            subdivision; 256.9791, subdivision 1; 256.9792, 
  1.21            subdivisions 1 and 2; 256.998, subdivisions 1, 6, 7, 
  1.22            and 9; 257.62, subdivisions 1 and 2; 257.66, 
  1.23            subdivision 3, and by adding a subdivision; 257.70; 
  1.24            257.75, subdivisions 1a, 2, 3, 4, 5, and 7; 299C.46, 
  1.25            subdivision 3; 508.63; 508A.63; 518.005, by adding a 
  1.26            subdivision; 518.10; 518.148, subdivision 2; 518.171, 
  1.27            subdivisions 1 and 4; 518.54, subdivision 6, and by 
  1.28            adding a subdivision; 518.551, subdivisions 5, 5b, 7, 
  1.29            12, 13, 14, and by adding a subdivision; 518.5511, 
  1.30            subdivisions 1, 2, 3, 4, and by adding a subdivision; 
  1.31            518.5512, subdivisions 2, 3, and by adding 
  1.32            subdivisions; 518.553; 518.575; 518.616, by adding a 
  1.33            subdivision; 518.64, subdivision 2; 518.641, 
  1.34            subdivision 2; 518.68, subdivision 2; 548.091, 
  1.35            subdivisions 1a, 2a, 3a, and by adding subdivisions; 
  1.36            550.37, subdivision 24; and 609.375, by adding a 
  1.37            subdivision; proposing coding for new law in Minnesota 
  1.38            Statutes, chapters 13B; 256; and 518; proposing coding 
  1.39            for new law as Minnesota Statutes, chapter 552; 
  1.40            repealing Minnesota Statutes 1996, sections 256.74; 
  1.41            256.979, subdivision 9; 518.5511, subdivisions 5, 6, 
  1.42            7, 8, and 9; 518.611; 518.613; 518.645; 518C.502; 
  1.43            518C.9011; and 609.375, subdivisions 3, 4, and 6. 
  1.44  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.1                              ARTICLE 1
  2.2      Section 1.  Minnesota Statutes 1996, section 8.35, is 
  2.3   amended to read: 
  2.4      8.35 [PUBLIC EDUCATION CAMPAIGN.] 
  2.5      The attorney general, in consultation with the commissioner 
  2.6   of human services, may establish a public service campaign 
  2.7   designed to educate the public about the necessity of the 
  2.8   payment of child support to the well-being of the state's 
  2.9   children and taxpayers.  The commissioner shall enter into a 
  2.10  contract with the attorney general pursuant to Laws 1994, 
  2.11  chapter 630, article 11, section 24, subdivision 2, for 
  2.12  implementation of the campaign.  The campaign may include public 
  2.13  service announcements for broadcast through television, radio, 
  2.14  and billboard media.  The name of the office of the attorney 
  2.15  general, or the person holding the office, shall not appear in 
  2.16  any of the campaign materials. 
  2.17     Sec. 2.  Minnesota Statutes 1996, section 13.99, is amended 
  2.18  by adding a subdivision to read: 
  2.19     Subd. 101d.  [CHILD SUPPORT PARTIES.] Certain data 
  2.20  regarding the location of parties in connection with child 
  2.21  support proceedings are governed by sections 256.87, subdivision 
  2.22  8; 257.70; and 518.005, subdivision 5.  Certain data regarding 
  2.23  the suspension of licenses of persons owing child support are 
  2.24  governed by section 518.551, subdivision 13a. 
  2.25     Sec. 3.  [256.741] [CHILD SUPPORT AND MAINTENANCE.] 
  2.26     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "public 
  2.27  assistance" as used in this chapter and chapters 257, 518, and 
  2.28  518C, includes any form of cash assistance provided under Title 
  2.29  IV-A of the Social Security Act; child care assistance provided 
  2.30  through the child care fund pursuant to chapter 119B; any form 
  2.31  of medical assistance as defined under Title XIX of the United 
  2.32  States Code, including MinnesotaCare; and foster care as 
  2.33  provided under Title IV-E of the Social Security Act. 
  2.34     (b) The term "child support agency" as used in this section 
  2.35  refers to the public authority responsible for child support 
  2.36  enforcement. 
  3.1      (c) The term "public assistance agency" as used in this 
  3.2   section refers to a public authority providing public assistance 
  3.3   to an individual. 
  3.4      Subd. 2.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE 
  3.5   RIGHTS.] (a) An individual receiving public assistance in the 
  3.6   form of cash assistance is considered to have assigned to the 
  3.7   state at the time of application all rights to child support and 
  3.8   maintenance from any other person the applicant or recipient may 
  3.9   have in the individual's own behalf or in the behalf of any 
  3.10  other family member for whom application for public assistance 
  3.11  is made.  An assistance unit is ineligible for aid to families 
  3.12  with dependent children or its successor program unless the 
  3.13  caregiver assigns all rights to child support and spousal 
  3.14  maintenance benefits according to this section. 
  3.15     (1) An assignment made according to this section is 
  3.16  effective as to: 
  3.17     (i) any current child support and current spousal 
  3.18  maintenance; and 
  3.19     (ii) any accrued child support and spousal maintenance 
  3.20  arrears. 
  3.21     (2) An assignment made after September 30, 1997, is 
  3.22  effective as to: 
  3.23     (i) any current child support and current spousal 
  3.24  maintenance; 
  3.25     (ii) any accrued child support and spousal maintenance 
  3.26  arrears collected before October 1, 2000, or the date the 
  3.27  individual terminates assistance, whichever is later; and 
  3.28     (iii) any accrued child support and spousal maintenance 
  3.29  arrears collected under federal tax intercept. 
  3.30     (b) An individual receiving public assistance in the form 
  3.31  of medical assistance, including MinnesotaCare, is considered to 
  3.32  have assigned to the state at the time of application all rights 
  3.33  to medical support from any other person the individual may have 
  3.34  in the individual's own behalf or in the behalf of any other 
  3.35  family member for whom medical assistance is provided. 
  3.36     An assignment made after September 30, 1997, is effective 
  4.1   as to any medical support accruing after the date of medical 
  4.2   assistance or MinnesotaCare eligibility. 
  4.3      (c) An individual receiving public assistance in the form 
  4.4   of child care assistance under the child care fund pursuant to 
  4.5   chapter 119B is considered to have assigned to the state at the 
  4.6   time of application all rights to child care support from any 
  4.7   other person the individual may have in the individual's own 
  4.8   behalf or in the behalf of any other family member for whom 
  4.9   child care assistance is provided. 
  4.10     An assignment made according to this paragraph is effective 
  4.11  as to: 
  4.12     (1) any current child care support and any child care 
  4.13  support arrears assigned and accruing after the effective date 
  4.14  of this section that are collected before October 1, 2000; and 
  4.15     (2) any accrued child care support arrears collected under 
  4.16  federal tax intercept. 
  4.17     Subd. 3.  [EXISTING ASSIGNMENTS.] Assignments based on the 
  4.18  receipt of public assistance in existence prior to the effective 
  4.19  date of this section are permanently assigned to the state. 
  4.20     Subd. 4.  [EFFECT OF ASSIGNMENT.] Assignments in this 
  4.21  section take effect upon a determination that the applicant is 
  4.22  eligible for public assistance.  The amount of support assigned 
  4.23  under this subdivision may not exceed the total amount of public 
  4.24  assistance issued or the total support obligation, whichever is 
  4.25  less. 
  4.26     Subd. 5.  [COOPERATION WITH CHILD SUPPORT 
  4.27  ENFORCEMENT.] After notification from a public assistance agency 
  4.28  that an individual has applied for or is receiving any form of 
  4.29  public assistance, the child support agency shall determine 
  4.30  whether the party is cooperating with the agency in establishing 
  4.31  paternity, child support, modification of an existing child 
  4.32  support order, or enforcement of an existing child support 
  4.33  order.  The public assistance agency shall notify each applicant 
  4.34  or recipient in writing of the right to claim a good cause 
  4.35  exemption from cooperating with the requirements in this 
  4.36  section.  A copy of the notice must be furnished to the 
  5.1   applicant or recipient, and the applicant or recipient and a 
  5.2   representative from the public authority shall acknowledge 
  5.3   receipt of the notice by signing and dating a copy of the 
  5.4   notice.  The individual shall cooperate with the child support 
  5.5   agency by: 
  5.6      (1) providing all known information regarding the alleged 
  5.7   father or obligor, including name, address, social security 
  5.8   number, telephone number, place of employment or school, and the 
  5.9   names and addresses of any relatives; 
  5.10     (2) appearing at interviews, hearings and legal 
  5.11  proceedings; 
  5.12     (3) submitting to genetic tests including genetic testing 
  5.13  of the child, under a judicial or administrative order; and 
  5.14     (4) providing additional information known by the 
  5.15  individual as necessary for cooperating in good faith with the 
  5.16  child support agency. 
  5.17     The caregiver of a minor child must cooperate with the 
  5.18  efforts of the public authority to collect support according to 
  5.19  this subdivision.  A caregiver must forward to the public 
  5.20  authority all support the caregiver receives during the period 
  5.21  the assignment of support required under subdivision 1 is in 
  5.22  effect.  Support received by a caregiver and not forwarded to 
  5.23  the public authority must be repaid to the child support 
  5.24  enforcement unit for any month following the date on which 
  5.25  initial eligibility is determined, except as provided under 
  5.26  subdivision 8, paragraph (b), clause (4). 
  5.27     Subd. 6.  [DETERMINATION.] If the individual cannot provide 
  5.28  the information required in subdivision 5, before making a 
  5.29  determination that the individual is cooperating, the child 
  5.30  support agency shall make a finding that the individual could 
  5.31  not reasonably be expected to provide the information.  In 
  5.32  making this finding, the child support agency shall consider: 
  5.33     (1) the age of the child for whom support is being sought; 
  5.34     (2) the circumstances surrounding the conception of the 
  5.35  child; 
  5.36     (3) the age and mental capacity of the parent or caregiver 
  6.1   of the child for whom support is being sought; 
  6.2      (4) the time period that has expired since the parent or 
  6.3   caregiver of the child for whom support is sought last had 
  6.4   contact with the alleged father or obligor, or the person's 
  6.5   relatives; and 
  6.6      (5) statements from the applicant or recipient or other 
  6.7   individuals that show evidence of an inability to provide 
  6.8   correct information about the alleged father or obligor because 
  6.9   of deception by the alleged father or obligor. 
  6.10     Subd. 7.  [NONCOOPERATION.] Unless good cause is found to 
  6.11  exist under subdivision 10, upon a determination of 
  6.12  noncooperation by the child support agency, the agency shall 
  6.13  promptly notify the individual and each public assistance agency 
  6.14  providing public assistance to the individual that the 
  6.15  individual is not cooperating with the child support agency.  
  6.16  Upon notice of noncooperation, the individual shall be 
  6.17  sanctioned in the amount determined according to the public 
  6.18  assistance agency responsible for enforcing the sanction.  
  6.19     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT 
  6.20  REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 
  6.21  requirements of subdivision 2 constitutes refusal to cooperate, 
  6.22  and the sanctions under paragraph (b) apply.  The IV-D agency 
  6.23  must determine whether a caregiver has refused to cooperate 
  6.24  according to subdivision 5. 
  6.25     (b) Determination by the IV-D agency that a caregiver has 
  6.26  refused to cooperate has the following effects: 
  6.27     (1) after adequate notice, the grant of a caregiver who 
  6.28  refuses to cooperate must be reduced by 25 percent if no other 
  6.29  sanction is in effect, or by an additional ten percent if one 
  6.30  other sanction is already in effect; 
  6.31     (2) a caregiver who is not a parent of a minor child in an 
  6.32  assistance unit may choose to remove the child from the 
  6.33  assistance unit unless the child is required to be in the 
  6.34  assistance unit; 
  6.35     (3) a parental caregiver who refuses to cooperate is 
  6.36  ineligible for medical assistance; and 
  7.1      (4) direct support retained by a caregiver must be counted 
  7.2   as unearned income when determining the amount of the assistance 
  7.3   payment. 
  7.4      This paragraph only applies to the cash portion of any 
  7.5   public assistance received by the caregiver. 
  7.6      Subd. 9.  [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 
  7.7   SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 
  7.8   caregiver that the caregiver may claim a good cause exemption 
  7.9   from cooperating with the requirements in subdivision 5.  Good 
  7.10  cause may be claimed and exemptions determined according to 
  7.11  subdivisions 10 to 13. 
  7.12     Subd. 10.  [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 
  7.13  child support agency under subdivision 5 is not necessary if the 
  7.14  individual asserts, and both the child support agency and the 
  7.15  public assistance agency find, good cause exists under this 
  7.16  subdivision for failing to cooperate.  An individual may request 
  7.17  a good cause exemption by filing a written claim with the public 
  7.18  assistance agency on a form provided by the commissioner of 
  7.19  human services.  Upon notification of a claim for good cause 
  7.20  exemption, the child support agency shall cease all child 
  7.21  support enforcement efforts until the claim for good cause 
  7.22  exemption is reviewed and the validity of the claim is 
  7.23  determined.  Designated representatives from public assistance 
  7.24  agencies and at least one representative from the child support 
  7.25  enforcement agency shall review each claim for a good cause 
  7.26  exemption and determine its validity. 
  7.27     (b) Good cause exists when an individual documents that 
  7.28  pursuit of child support enforcement services could reasonably 
  7.29  result in: 
  7.30     (1) physical or emotional harm to the child for whom 
  7.31  support is sought; 
  7.32     (2) physical harm to the parent or caregiver with whom the 
  7.33  child is living that would reduce the ability to adequately care 
  7.34  for the child; or 
  7.35     (3) emotional harm to the parent or caregiver with whom the 
  7.36  child is living, of such nature or degree that it would reduce 
  8.1   the person's ability to adequately care for the child. 
  8.2      Physical and emotional harm under this paragraph must be of 
  8.3   a serious nature in order to justify a finding of good cause 
  8.4   exemption.  A finding of good cause exemption based on emotional 
  8.5   harm may only be based upon a demonstration of emotional 
  8.6   impairment that substantially affects the individual's ability 
  8.7   to function. 
  8.8      (c) Good cause also exists when the designated 
  8.9   representatives in this subdivision believe that pursuing child 
  8.10  support enforcement would be detrimental to the child for whom 
  8.11  support is sought and the individual applicant or recipient 
  8.12  documents any of the following: 
  8.13     (1) the child for whom child support enforcement is sought 
  8.14  was conceived as a result of incest or rape; 
  8.15     (2) legal proceedings for the adoption of the child are 
  8.16  pending before a court of competent jurisdiction; or 
  8.17     (3) the parent or caregiver of the child is currently being 
  8.18  assisted by a public or licensed private social service agency 
  8.19  to resolve the issues of whether to keep the child or place the 
  8.20  child for adoption. 
  8.21     The parent or caregiver's right to claim a good cause 
  8.22  exemption based solely on this paragraph expires if the 
  8.23  assistance lasts more than 90 days. 
  8.24     (d) The public authority shall consider the best interests 
  8.25  of the child in determining good cause. 
  8.26     Subd. 11.  [PROOF OF GOOD CAUSE.] (a) An individual seeking 
  8.27  a good cause exemption has 20 days from the date the good cause 
  8.28  claim was provided to the public assistance agency to supply 
  8.29  evidence supporting the claim.  The public assistance agency may 
  8.30  extend the time period in this section if it believes the 
  8.31  individual is cooperating and needs additional time to submit 
  8.32  the evidence required by this section.  Failure to provide this 
  8.33  evidence shall result in the child support agency resuming child 
  8.34  support enforcement efforts. 
  8.35     (b) Evidence supporting a good cause claim includes, but is 
  8.36  not limited to: 
  9.1      (1) a birth certificate or medical or law enforcement 
  9.2   records indicating that the child was conceived as the result of 
  9.3   incest or rape; 
  9.4      (2) court documents or other records indicating that legal 
  9.5   proceedings for adoption are pending before a court of competent 
  9.6   jurisdiction; 
  9.7      (3) court, medical, criminal, child protective services, 
  9.8   social services, domestic violence advocate services, 
  9.9   psychological, or law enforcement records indicating that the 
  9.10  alleged father or obligor might inflict physical or emotional 
  9.11  harm on the child, parent, or caregiver; 
  9.12     (4) medical records or written statements from a licensed 
  9.13  medical professional indicating the emotional health history or 
  9.14  status of the custodial parent, child, or caregiver, or 
  9.15  indicating a diagnosis or prognosis concerning their emotional 
  9.16  health; 
  9.17     (5) a written statement from a public or licensed private 
  9.18  social services agency that the individual is deciding whether 
  9.19  to keep the child or place the child for adoption; or 
  9.20     (6) sworn statements from individuals other than the 
  9.21  applicant or recipient that provide evidence supporting the good 
  9.22  cause claim. 
  9.23     (c) The child support agency and the public assistance 
  9.24  agency shall assist an individual in obtaining the evidence in 
  9.25  this section upon request of the individual. 
  9.26     Subd. 12.  [DECISION.] A good cause exemption must be 
  9.27  granted if the individual's claim and the investigation of the 
  9.28  supporting evidence satisfy the investigating agencies that the 
  9.29  individual has good cause for refusing to cooperate. 
  9.30     Subd. 13.  [DURATION.] (a) A good cause exemption may not 
  9.31  continue for more than one year without redetermination of 
  9.32  cooperation and good cause pursuant to this section.  The child 
  9.33  support agency may redetermine cooperation and the designated 
  9.34  representatives in subdivision 7 may redetermine the granting of 
  9.35  a good cause exemption before the one year expiration in this 
  9.36  subdivision. 
 10.1      (b) A good cause exemption must be allowed under subsequent 
 10.2   applications and redeterminations without additional evidence 
 10.3   when the factors that led to the exemption continue to exist.  A 
 10.4   good cause exemption must end when the factors that led to the 
 10.5   exemption have changed. 
 10.6      Subd. 14.  [TRAINING.] The commissioner shall establish 
 10.7   domestic violence and sexual abuse training programs for child 
 10.8   support agency employees.  The training programs must be 
 10.9   developed in consultation with experts on domestic violence and 
 10.10  sexual assault.  To the extent possible, representatives of the 
 10.11  child support agency involved in making a determination of 
 10.12  cooperation under subdivision 6 or reviewing a claim for good 
 10.13  cause exemption under subdivision 8 shall receive training in 
 10.14  accordance with this subdivision. 
 10.15     Sec. 4.  Minnesota Statutes 1996, section 256.87, 
 10.16  subdivision 1, is amended to read: 
 10.17     Subdivision 1.  [ACTIONS AGAINST PARENTS FOR ASSISTANCE 
 10.18  FURNISHED.] A parent of a child is liable for the amount 
 10.19  of public assistance, as defined in section 256.741, furnished 
 10.20  under sections 256.031 to 256.0361, 256.72 to 256.87, or under 
 10.21  Title IV-E of the Social Security Act or medical assistance 
 10.22  under chapter 256, 256B, or 256D to and for the benefit of the 
 10.23  child, including any assistance furnished for the benefit of the 
 10.24  caretaker of the child, which the parent has had the ability to 
 10.25  pay.  Ability to pay must be determined according to chapter 
 10.26  518.  The parent's liability is limited to the two years 
 10.27  immediately preceding the commencement of the action, except 
 10.28  that where child support has been previously ordered, the state 
 10.29  or county agency providing the assistance, as assignee of the 
 10.30  obligee, shall be entitled to judgments for child support 
 10.31  payments accruing within ten years preceding the date of the 
 10.32  commencement of the action up to the full amount of assistance 
 10.33  furnished.  The action may be ordered by the state agency or 
 10.34  county agency and shall be brought in the name of the county by 
 10.35  the county attorney of the county in which the assistance was 
 10.36  granted, or by in the name of the state agency against the 
 11.1   parent for the recovery of the amount of assistance granted, 
 11.2   together with the costs and disbursements of the action. 
 11.3      Sec. 5.  Minnesota Statutes 1996, section 256.87, 
 11.4   subdivision 1a, is amended to read: 
 11.5      Subd. 1a.  [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 
 11.6   to granting the county or state agency a money judgment, the 
 11.7   court may, upon a motion or order to show cause, order 
 11.8   continuing support contributions by a parent found able to 
 11.9   reimburse the county or state agency.  The order shall be 
 11.10  effective for the period of time during which the recipient 
 11.11  receives public assistance from any county or state agency and 
 11.12  thereafter.  The order shall require support according to 
 11.13  chapter 518.  An order for continuing contributions is 
 11.14  reinstated without further hearing upon notice to the parent by 
 11.15  any county or state agency that public assistance, as defined in 
 11.16  section 256.741, is again being provided for the child of the 
 11.17  parent under sections 256.031 to 256.0361, 256.72 to 256.87, or 
 11.18  under Title IV-E of the Social Security Act or medical 
 11.19  assistance under chapter 256, 256B, or 256D.  The notice shall 
 11.20  be in writing and shall indicate that the parent may request a 
 11.21  hearing for modification of the amount of support or maintenance.
 11.22     Sec. 6.  Minnesota Statutes 1996, section 256.87, 
 11.23  subdivision 3, is amended to read: 
 11.24     Subd. 3.  [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 
 11.25  The order for continuing support contributions shall remain in 
 11.26  effect following the period after public assistance, as defined 
 11.27  in section 256.741, granted under sections 256.72 to 256.87 is 
 11.28  terminated unless the former recipient files an affidavit with 
 11.29  the court requesting termination of the order.  
 11.30     Sec. 7.  Minnesota Statutes 1996, section 256.87, 
 11.31  subdivision 5, is amended to read: 
 11.32     Subd. 5.  [CHILD NOT RECEIVING ASSISTANCE.] A person or 
 11.33  entity having physical custody of a dependent child not 
 11.34  receiving public assistance under sections 256.031 to 256.0361, 
 11.35  or 256.72 to 256.87 as defined in section 256.741 has a cause of 
 11.36  action for child support against the child's absent noncustodial 
 12.1   parents.  Upon a motion served on the absent noncustodial 
 12.2   parent, the court shall order child support payments, including 
 12.3   medical support and child care support, from the 
 12.4   absent noncustodial parent under chapter 518.  The absent A 
 12.5   noncustodial parent's liability may include up to the two years 
 12.6   immediately preceding the commencement of the action.  This 
 12.7   subdivision applies only if the person or entity has physical 
 12.8   custody with the consent of a custodial parent or approval of 
 12.9   the court.  
 12.10     Sec. 8.  Minnesota Statutes 1996, section 256.87, is 
 12.11  amended by adding a subdivision to read: 
 12.12     Subd. 8.  [DISCLOSURE PROHIBITED.] Notwithstanding 
 12.13  statutory or other authorization for the public authority to 
 12.14  release private data on the location of a party to the action, 
 12.15  information on the location of one party may not be released to 
 12.16  the other party by the public authority if: 
 12.17     (1) the public authority has knowledge that a protective 
 12.18  order with respect to the other party has been entered; or 
 12.19     (2) the public authority has reason to believe that the 
 12.20  release of the information may result in physical or emotional 
 12.21  harm to the other party. 
 12.22     Sec. 9.  Minnesota Statutes 1996, section 256.978, 
 12.23  subdivision 1, is amended to read: 
 12.24     Subdivision 1.  [REQUEST FOR INFORMATION.] (a) The 
 12.25  commissioner of human services public authority responsible for 
 12.26  child support in this state or any other state, in order to 
 12.27  locate a person to establish paternity, and child support or to 
 12.28  modify or enforce child support, or to enforce a child support 
 12.29  obligation in arrears, may request information reasonably 
 12.30  necessary to the inquiry from the records of all departments, 
 12.31  boards, bureaus, or other agencies of this state, which shall, 
 12.32  notwithstanding the provisions of section 268.12, subdivision 
 12.33  12, or any other law to the contrary, provide the information 
 12.34  necessary for this purpose.  Employers, utility companies, 
 12.35  insurance companies, financial institutions, and labor 
 12.36  associations doing business in this state shall provide 
 13.1   information as provided under subdivision 2 upon written or 
 13.2   electronic request by an agency responsible for child support 
 13.3   enforcement regarding individuals owing or allegedly owing a 
 13.4   duty to support within 30 days of the receipt service of the 
 13.5   written request made by the public authority.  Information 
 13.6   requested and used or transmitted by the commissioner pursuant 
 13.7   according to the authority conferred by this section may be made 
 13.8   available only to public officials and agencies of this state 
 13.9   and its political subdivisions and other states of the union and 
 13.10  their political subdivisions who are seeking to enforce the 
 13.11  support liability of parents or to locate parents.  The 
 13.12  commissioner may not release the information to an agency or 
 13.13  political subdivision of another state unless the agency or 
 13.14  political subdivision is directed to maintain the data 
 13.15  consistent with its classification in this state.  Information 
 13.16  obtained under this section may not be released except to the 
 13.17  extent necessary for the administration of the child support 
 13.18  enforcement program or when otherwise authorized by law. to 
 13.19  other agencies, statewide systems, and political subdivisions of 
 13.20  this state, and agencies of other states, interstate information 
 13.21  networks, federal agencies, and other entities as required by 
 13.22  federal regulation or law for the administration of the child 
 13.23  support enforcement program.  
 13.24     (b) For purposes of this section, "state" includes the 
 13.25  District of Columbia, Puerto Rico, the United States Virgin 
 13.26  Islands, and any territory or insular possession subject to the 
 13.27  jurisdiction of the United States. 
 13.28     Sec. 10.  Minnesota Statutes 1996, section 256.978, 
 13.29  subdivision 2, is amended to read: 
 13.30     Subd. 2.  [ACCESS TO INFORMATION.] (a) A written request 
 13.31  for information by the public authority responsible for child 
 13.32  support of this state or any other state may be made to: 
 13.33     (1) employers when there is reasonable cause to believe 
 13.34  that the subject of the inquiry is or was an employee or 
 13.35  independent contractor of the employer.  Information to be 
 13.36  released by employers is limited to place of residence, 
 14.1   employment status, wage or payment information, benefit 
 14.2   information, and social security number; 
 14.3      (2) utility companies when there is reasonable cause to 
 14.4   believe that the subject of the inquiry is or was a retail 
 14.5   customer of the utility company.  Customer information to be 
 14.6   released by utility companies is limited to place of residence, 
 14.7   home telephone, work telephone, source of income, employer and 
 14.8   place of employment, and social security number; 
 14.9      (3) insurance companies when there is an arrearage of child 
 14.10  support and there is reasonable cause to believe that the 
 14.11  subject of the inquiry is or was receiving funds either in the 
 14.12  form of a lump sum or periodic payments.  Information to be 
 14.13  released by insurance companies is limited to place of 
 14.14  residence, home telephone, work telephone, employer, social 
 14.15  security number, and amounts and type of payments made to the 
 14.16  subject of the inquiry; 
 14.17     (4) labor organizations when there is reasonable cause to 
 14.18  believe that the subject of the inquiry is or was a member of 
 14.19  the labor association.  Information to be released by labor 
 14.20  associations is limited to place of residence, home telephone, 
 14.21  work telephone, social security number, and current and past 
 14.22  employment information; and 
 14.23     (5) financial institutions when there is an arrearage of 
 14.24  child support and there is reasonable cause to believe that the 
 14.25  subject of the inquiry has or has had accounts, stocks, loans, 
 14.26  certificates of deposits, treasury bills, life insurance 
 14.27  policies, or other forms of financial dealings with the 
 14.28  institution.  Information to be released by the financial 
 14.29  institution is limited to place of residence, home telephone, 
 14.30  work telephone, identifying information on the type of financial 
 14.31  relationships, social security number, current value of 
 14.32  financial relationships, and current indebtedness of the subject 
 14.33  with the financial institution. 
 14.34     (b) For purposes of this subdivision, utility companies 
 14.35  include telephone companies, radio common carriers, and 
 14.36  telecommunications carriers as defined in section 237.01, and 
 15.1   companies that provide electrical, telephone, natural gas, 
 15.2   propane gas, oil, coal, or cable television services to retail 
 15.3   customers.  The term financial institution includes banks, 
 15.4   savings and loans, credit unions, brokerage firms, mortgage 
 15.5   companies, and insurance companies., benefit associations, safe 
 15.6   deposit companies, money market mutual funds, or similar 
 15.7   entities authorized to do business in the state. 
 15.8      Sec. 11.  Minnesota Statutes 1996, section 256.979, 
 15.9   subdivision 5, is amended to read: 
 15.10     Subd. 5.  [PATERNITY ESTABLISHMENT AND CHILD SUPPORT 
 15.11  ORDER ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A 
 15.12  bonus incentive program is created to increase the number of 
 15.13  paternity establishments and establishment and modifications of 
 15.14  child support orders done by county child support enforcement 
 15.15  agencies. 
 15.16     (b) A bonus must be awarded to a county child support 
 15.17  agency for each child case for which the agency completes a 
 15.18  paternity or child support order establishment or modification 
 15.19  through judicial, or administrative, or expedited processes and 
 15.20  for each instance in which the agency reviews a case for a 
 15.21  modification of the child support order. 
 15.22     (c) The rate of bonus incentive is $100 for each 
 15.23  paternity or child support order establishment and $50 for each 
 15.24  review for modification of a child support order modification 
 15.25  set in a specific dollar amount. 
 15.26     (d) A bonus may not be paid for a modification that is a 
 15.27  result of a termination of child care costs according to section 
 15.28  518.551, subdivision 5, or due solely to a reduction of child 
 15.29  care expenses. 
 15.30     Sec. 12.  Minnesota Statutes 1996, section 256.979, 
 15.31  subdivision 6, is amended to read: 
 15.32     Subd. 6.  [CLAIMS FOR BONUS INCENTIVE.] (a) The 
 15.33  commissioner of human services and the county agency shall 
 15.34  develop procedures for the claims process and criteria using 
 15.35  automated systems where possible. 
 15.36     (b) Only one county agency may receive a bonus per 
 16.1   paternity establishment or child support order establishment or 
 16.2   modification for each case.  The county agency making the 
 16.3   initial preparations for the case resulting in the establishment 
 16.4   of paternity or modification of an order is the county agency 
 16.5   entitled to claim the bonus incentive, even if the case is 
 16.6   transferred to another county agency prior to the time the order 
 16.7   is established or modified.  The county agency completing the 
 16.8   action or procedure needed to establish paternity or a child 
 16.9   support order or modify an order is the county agency entitled 
 16.10  to claim the bonus incentive. 
 16.11     (c) Disputed claims must be submitted to the commissioner 
 16.12  of human services and the commissioner's decision is final. 
 16.13     (d) For purposes of this section, "case" means a family 
 16.14  unit for whom the county agency is providing child support 
 16.15  enforcement services.  
 16.16     Sec. 13.  Minnesota Statutes 1996, section 256.979, 
 16.17  subdivision 7, is amended to read: 
 16.18     Subd. 7.  [DISTRIBUTION.] (a) Bonus incentives must be 
 16.19  issued to the county agency quarterly, within 45 days after the 
 16.20  last day of each quarter for which a bonus incentive is being 
 16.21  claimed, and must be paid in the order in which claims are 
 16.22  received. 
 16.23     (b) Bonus incentive funds under this section must be 
 16.24  reinvested in the county child support enforcement program and a 
 16.25  county may not reduce funding of the child support enforcement 
 16.26  program by the amount of the bonus earned. 
 16.27     (c) The county agency shall repay any bonus erroneously 
 16.28  issued. 
 16.29     (d) A county agency shall maintain a record of bonus 
 16.30  incentives claimed and received for each quarter. 
 16.31     (e) Payment of bonus incentives is limited by the amount of 
 16.32  the appropriation for this purpose.  If the appropriation is 
 16.33  insufficient to cover all claims, the commissioner of human 
 16.34  services may prorate payments among the county agencies. 
 16.35     Sec. 14.  Minnesota Statutes 1996, section 256.979, 
 16.36  subdivision 8, is amended to read: 
 17.1      Subd. 8.  [MEDICAL PROVIDER REIMBURSEMENT.] (a) A fee to 
 17.2   the providers of medical services is created for the purpose of 
 17.3   increasing the numbers of signed and notarized recognition of 
 17.4   parentage forms completed in the medical setting. 
 17.5      (b) A fee of $25 shall be paid to each medical provider for 
 17.6   each properly completed recognition of parentage form sent to 
 17.7   the department of vital statistics. 
 17.8      (c) The office of vital statistics shall notify the 
 17.9   department of human services quarterly of the numbers of 
 17.10  completed forms received and the amounts paid. 
 17.11     (d) The department of human services shall remit quarterly 
 17.12  to each medical provider a payment for the number of signed 
 17.13  recognition of parentage forms completed by that medical 
 17.14  provider and sent to the office of vital statistics. 
 17.15     (e) The commissioners of the department of human services 
 17.16  and the department of health shall develop procedures for the 
 17.17  implementation of this provision. 
 17.18     (f) Payments will be made to the medical provider within 
 17.19  the limit of available appropriations. 
 17.20     (g) Federal matching funds received as reimbursement for 
 17.21  the costs of the medical provider reimbursement shall be 
 17.22  retained by the commissioner of human services for educational 
 17.23  programs dedicated to the benefits of paternity establishment. 
 17.24     Sec. 15.  Minnesota Statutes 1996, section 256.979, is 
 17.25  amended by adding a subdivision to read: 
 17.26     Subd. 10.  [TRANSFERABILITY BETWEEN BONUS INCENTIVE 
 17.27  ACCOUNTS AND GRANTS TO COUNTY AGENCIES.] The commissioner of 
 17.28  human services may transfer money appropriated for child support 
 17.29  enforcement county performance incentives under this section and 
 17.30  section 256.9791 among county performance incentive accounts.  
 17.31  Incentive funds to counties transferred under this section must 
 17.32  be reinvested in the child support enforcement program and may 
 17.33  not be used to supplant money now spent by counties for child 
 17.34  support enforcement. 
 17.35     Sec. 16.  Minnesota Statutes 1996, section 256.9791, 
 17.36  subdivision 1, is amended to read: 
 18.1      Subdivision 1.  [BONUS INCENTIVE.] (a) A bonus incentive 
 18.2   program is created to increase the identification and 
 18.3   enforcement by county agencies of dependent health insurance 
 18.4   coverage for persons who are receiving medical assistance under 
 18.5   section 256B.055 and for whom the county agency is providing 
 18.6   child support enforcement services.  
 18.7      (b) The bonus shall be awarded to a county child support 
 18.8   agency for each person for whom coverage is identified and 
 18.9   enforced by the child support enforcement program when the 
 18.10  obligor is under a court order to provide dependent health 
 18.11  insurance coverage.  
 18.12     (c) Bonus incentive funds under this section must be 
 18.13  reinvested in the county child support enforcement program and a 
 18.14  county may not reduce funding of the child support enforcement 
 18.15  program by the amount of the bonus earned. 
 18.16     Sec. 17.  Minnesota Statutes 1996, section 256.9792, 
 18.17  subdivision 1, is amended to read: 
 18.18     Subdivision 1.  [ARREARAGE COLLECTIONS.] Arrearage 
 18.19  collection projects are created to increase the revenue to the 
 18.20  state and counties, reduce AFDC public assistance expenditures 
 18.21  for former public assistance cases, and increase payments of 
 18.22  arrearages to persons who are not receiving public assistance by 
 18.23  submitting cases for arrearage collection to collection 
 18.24  entities, including but not limited to, the department of 
 18.25  revenue and private collection agencies. 
 18.26     Sec. 18.  Minnesota Statutes 1996, section 256.9792, 
 18.27  subdivision 2, is amended to read: 
 18.28     Subd. 2.  [DEFINITIONS.] (a) The definitions in this 
 18.29  subdivision apply to this section: 
 18.30     (b) "Public assistance arrearage case" means a case where 
 18.31  current support may be due, no payment, with the exception of 
 18.32  tax offset, has been made within the last 90 days, and the 
 18.33  arrearages are assigned to the public agency pursuant according 
 18.34  to section 256.74, subdivision 5 256.741. 
 18.35     (c) "Public authority" means the public authority 
 18.36  responsible for child support enforcement. 
 19.1      (d) "Nonpublic assistance arrearage case" means a support 
 19.2   case where arrearages have accrued that have not been assigned 
 19.3   pursuant according to section 256.74, subdivision 5 256.741. 
 19.4      Sec. 19.  Minnesota Statutes 1996, section 256.998, 
 19.5   subdivision 1, is amended to read: 
 19.6      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 19.7   subdivision apply to this section. 
 19.8      (b) "Date of hiring" means the earlier of:  (1) the first 
 19.9   day for which an employee is owed compensation by an employer; 
 19.10  or (2) the first day that an employee reports to work or 
 19.11  performs labor or services for an employer. 
 19.12     (c) "Earnings" means payment owed by an employer for labor 
 19.13  or services rendered by an employee. 
 19.14     (d) "Employee" means a person who resides or works in 
 19.15  Minnesota and, performs services for compensation, in whatever 
 19.16  form, for an employer and satisfies the criteria of an employee 
 19.17  under chapter 24 of the Internal Revenue Code.  Employee does 
 19.18  not include:  
 19.19     (1) persons hired for domestic service in the private home 
 19.20  of the employer, as defined in the Federal Tax Code.; or 
 19.21     (2) an employee of the federal or state agency performing 
 19.22  intelligence or counterintelligence functions, if the head of 
 19.23  such agency has determined that reporting according to this law 
 19.24  would endanger the safety of the employee or compromise an 
 19.25  ongoing investigation or intelligence mission. 
 19.26     (e) "Employer" means a person or entity located or doing 
 19.27  business in this state that employs one or more employees for 
 19.28  payment, and satisfies the criteria of an employer under chapter 
 19.29  24 of the Internal Revenue Code.  Employer includes a labor 
 19.30  organization as defined in paragraph (g).  Employer also 
 19.31  includes the state, political or other governmental subdivisions 
 19.32  of the state, and the federal government. 
 19.33     (f) "Hiring" means engaging a person to perform services 
 19.34  for compensation and includes the reemploying or return to work 
 19.35  of any previous employee who was laid off, furloughed, 
 19.36  separated, granted a leave without pay, or terminated from 
 20.1   employment when a period of 90 days elapses from the date of 
 20.2   layoff, furlough, separation, leave, or termination to the date 
 20.3   of the person's return to work. 
 20.4      (g) "Labor organization" means entities located or doing 
 20.5   business in this state that meet the criteria of labor 
 20.6   organization under section 2(5) of the National Labor Relations 
 20.7   Act.  This includes any entity, that may also be known as a 
 20.8   hiring hall, used to carry out requirements described in chapter 
 20.9   7 of the National Labor Relations Act. 
 20.10     (h) "Payor" means a person or entity located or doing 
 20.11  business in Minnesota who pays money to an independent 
 20.12  contractor according to an agreement for the performance of 
 20.13  services. 
 20.14     Sec. 20.  Minnesota Statutes 1996, section 256.998, 
 20.15  subdivision 6, is amended to read: 
 20.16     Subd. 6.  [SANCTIONS.] If an employer fails to report under 
 20.17  this section, the commissioner of human services, by certified 
 20.18  mail, shall send the employer a written notice of noncompliance 
 20.19  requesting that the employer comply with the reporting 
 20.20  requirements of this section.  The notice of noncompliance must 
 20.21  explain the reporting procedure under this section and advise 
 20.22  the employer of the penalty for noncompliance.  An employer who 
 20.23  has received a notice of noncompliance and later incurs a second 
 20.24  violation is subject to a civil penalty of $50 $25 for each 
 20.25  intentionally unreported employee.  An employer who has received 
 20.26  a notice of noncompliance and later incurs a third or subsequent 
 20.27  violation is subject to a civil penalty of $500 for each 
 20.28  intentionally unreported employee, if noncompliance is the 
 20.29  result of a conspiracy between an employer and an employee not 
 20.30  to supply the required report or to supply a false or incomplete 
 20.31  report.  These penalties may be imposed and collected by the 
 20.32  commissioner of human services.  An employer who has been served 
 20.33  with a notice of noncompliance and incurs a second or subsequent 
 20.34  violation resulting in a civil penalty, has the right to a 
 20.35  contested case hearing under chapter 14.  An employer has 20 
 20.36  days from the date of service of the notice, to file a request 
 21.1   for a contested case hearing with the commissioner.  The order 
 21.2   of the administrative law judge constitutes the final decision 
 21.3   in the case. 
 21.4      Sec. 21.  Minnesota Statutes 1996, section 256.998, 
 21.5   subdivision 7, is amended to read: 
 21.6      Subd. 7.  [ACCESS TO DATA.] The commissioner of human 
 21.7   services shall retain the information reported to the work 
 21.8   reporting system for a period of six months.  Data in the work 
 21.9   reporting system may be disclosed to the public authority 
 21.10  responsible for child support enforcement, federal agencies, and 
 21.11  state and local agencies of other states for the purposes of 
 21.12  enforcing state and federal laws governing child support, and 
 21.13  agencies responsible for the administration of programs under 
 21.14  Title IV-A of the Social Security Act, the department of 
 21.15  economic security, and the department of labor and industry. 
 21.16     Sec. 22.  Minnesota Statutes 1996, section 256.998, 
 21.17  subdivision 9, is amended to read: 
 21.18     Subd. 9.  [INDEPENDENT CONTRACTORS.] The state and all 
 21.19  political subdivisions of the state, when acting in the capacity 
 21.20  of an employer, shall report the hiring of any person as an 
 21.21  independent contractor to the centralized work reporting system 
 21.22  in the same manner as the hiring of an employee is reported. 
 21.23     The attorney general and the commissioner of human services 
 21.24  shall work with representatives of the employment community and 
 21.25  industries that utilize independent contractors in the regular 
 21.26  course of business to develop a plan to include the reporting of 
 21.27  independent contractors by all employers to the centralized work 
 21.28  reporting system by July 1, 1996.  The attorney general and the 
 21.29  commissioner of human services shall present the resulting plan 
 21.30  in the form of proposed legislation to the legislature by 
 21.31  February 1, 1996. Other payors may report independent 
 21.32  contractors to whom they make payments that require the filing 
 21.33  of a 1099-MISC report.  Payors reporting independent contractors 
 21.34  shall report by use of the same means and provide the same 
 21.35  information required under subdivisions 4 and 5.  The 
 21.36  commissioner of human services shall establish procedures for 
 22.1   payors reporting under this section. 
 22.2      Sec. 23.  Minnesota Statutes 1996, section 257.62, 
 22.3   subdivision 1, is amended to read: 
 22.4      Subdivision 1.  [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 
 22.5   court or public authority may, and upon request of a party 
 22.6   shall, require the child, mother, or alleged father to submit to 
 22.7   blood or genetic tests.  A mother or alleged father requesting 
 22.8   the tests shall file with the court an affidavit either alleging 
 22.9   or denying paternity and setting forth facts that establish the 
 22.10  reasonable possibility that there was, or was not, the requisite 
 22.11  sexual contact between the parties. 
 22.12     (b) A copy of the test results must be served on the 
 22.13  parties as provided in section 543.20 each party by first class 
 22.14  mail to the party's last known address.  Any objection to the 
 22.15  results of blood or genetic tests must be made in writing no 
 22.16  later than 15 days prior to a hearing at which time those test 
 22.17  results may be introduced into evidence 30 days after service of 
 22.18  the results.  Test results served upon a party must include 
 22.19  notice of this right to object.  
 22.20     (c) If the alleged father is dead, the court may, and upon 
 22.21  request of a party shall, require the decedent's parents or 
 22.22  brothers and sisters or both to submit to blood or genetic 
 22.23  tests.  However, in a case involving these relatives of an 
 22.24  alleged father, who is deceased, the court may refuse to order 
 22.25  blood or genetic tests if the court makes an express finding 
 22.26  that submitting to the tests presents a danger to the health of 
 22.27  one or more of these relatives that outweighs the child's 
 22.28  interest in having the tests performed.  Unless the person gives 
 22.29  consent to the use, the results of any blood or genetic tests of 
 22.30  the decedent's parents, brothers, or sisters may be used only to 
 22.31  establish the right of the child to public assistance including 
 22.32  but not limited to social security and veterans' benefits.  The 
 22.33  tests shall be performed by a qualified expert appointed by the 
 22.34  court. 
 22.35     Sec. 24.  Minnesota Statutes 1996, section 257.62, 
 22.36  subdivision 2, is amended to read: 
 23.1      Subd. 2.  The court, upon reasonable request by a party, 
 23.2   shall order that independent tests be performed by other 
 23.3   qualified experts. Unless otherwise agreed by the parties, a 
 23.4   party wanting additional testing must first contest the original 
 23.5   tests in subdivision 1, paragraph (b), and must pay in advance 
 23.6   for the additional testing.  The additional testing must be 
 23.7   performed by another qualified expert. 
 23.8      Sec. 25.  Minnesota Statutes 1996, section 257.66, 
 23.9   subdivision 3, is amended to read: 
 23.10     Subd. 3.  [JUDGMENT; ORDER.] The judgment or order shall 
 23.11  contain provisions concerning the duty of support, the custody 
 23.12  of the child, the name of the child, the social security number 
 23.13  of the mother, father, and child, if known at the time of 
 23.14  adjudication, visitation privileges with the child, the 
 23.15  furnishing of bond or other security for the payment of the 
 23.16  judgment, or any other matter in the best interest of the 
 23.17  child.  Custody and visitation and all subsequent motions 
 23.18  related to them shall proceed and be determined under section 
 23.19  257.541.  The remaining matters and all subsequent motions 
 23.20  related to them shall proceed and be determined in accordance 
 23.21  with chapter 518.  The judgment or order may direct the 
 23.22  appropriate party to pay all or a proportion of the reasonable 
 23.23  expenses of the mother's pregnancy and confinement, after 
 23.24  consideration of the relevant facts, including the relative 
 23.25  financial means of the parents; the earning ability of each 
 23.26  parent; and any health insurance policies held by either parent, 
 23.27  or by a spouse or parent of the parent, which would provide 
 23.28  benefits for the expenses incurred by the mother during her 
 23.29  pregnancy and confinement.  Pregnancy and confinement expenses 
 23.30  and genetic testing costs, submitted by the public authority, 
 23.31  are admissible as evidence without third-party foundation 
 23.32  testimony and constitute prima facie evidence of the amounts 
 23.33  incurred for those services or for the genetic testing.  
 23.34  Remedies available for the collection and enforcement of child 
 23.35  support apply to confinement costs and are considered additional 
 23.36  child support. 
 24.1      Sec. 26.  Minnesota Statutes 1996, section 257.66, is 
 24.2   amended by adding a subdivision to read: 
 24.3      Subd. 6.  [REQUIRED INFORMATION.] Upon entry of judgment or 
 24.4   order, each parent who is a party in a paternity proceeding 
 24.5   shall: 
 24.6      (1) file with the public authority responsible for child 
 24.7   support enforcement the party's social security number, 
 24.8   residential and mailing address, telephone number, driver's 
 24.9   license number, and name, address, and telephone number of any 
 24.10  employer if the party is receiving services from the public 
 24.11  authority or begins receiving services from the public 
 24.12  authority; 
 24.13     (2) file the information in clause (1) with the district 
 24.14  court; and 
 24.15     (3) notify the court and, if applicable, the public 
 24.16  authority responsible for child support enforcement of any 
 24.17  change in the information required under this section within ten 
 24.18  days of the change. 
 24.19     Sec. 27.  Minnesota Statutes 1996, section 257.70, is 
 24.20  amended to read: 
 24.21     257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 
 24.22     (a) Notwithstanding any other law concerning public 
 24.23  hearings and records, any hearing or trial held under sections 
 24.24  257.51 to 257.74 shall be held in closed court without 
 24.25  admittance of any person other than those necessary to the 
 24.26  action or proceeding.  All papers and records, other than the 
 24.27  final judgment, pertaining to the action or proceeding, whether 
 24.28  part of the permanent record of the court or of a file in the 
 24.29  state department of human services or elsewhere, are subject to 
 24.30  inspection only upon consent of the court and all interested 
 24.31  persons, or in exceptional cases only upon an order of the court 
 24.32  for good cause shown.  
 24.33     (b) In all actions under this chapter in which public 
 24.34  assistance is assigned under section 256.741 or the public 
 24.35  authority provides services to a party or parties to the action, 
 24.36  notwithstanding statutory or other authorization for the public 
 25.1   authority to release private data on the location of a party to 
 25.2   the action, information on the location of one party may not be 
 25.3   released by the public authority to the other party if:  
 25.4      (1) the public authority has knowledge that a protective 
 25.5   order with respect to the other party has been entered; or 
 25.6      (2) the public authority has reason to believe that the 
 25.7   release of the information may result in physical or emotional 
 25.8   harm to the other party. 
 25.9      Sec. 28.  Minnesota Statutes 1996, section 257.75, 
 25.10  subdivision 1a, is amended to read: 
 25.11     Subd. 1a.  [JOINDER IN RECOGNITION BY HUSBAND.] A man who 
 25.12  is a presumed father under section 257.55, subdivision 1, 
 25.13  paragraph (a), may join in a recognition of parentage that 
 25.14  recognizes that another man is the child's biological father.  
 25.15  The man who is the presumed father under section 257.55, 
 25.16  subdivision 1, paragraph (a), must sign an acknowledgment under 
 25.17  oath before a notary public that he is renouncing the 
 25.18  presumption under section 257.55, subdivision 1, paragraph (a), 
 25.19  and recognizing that the father who is executing the recognition 
 25.20  under subdivision 1 is the biological father of the child.  A 
 25.21  joinder in a recognition under this subdivision must be executed 
 25.22  within one year after the child's birth and at the same time as 
 25.23  the recognition under subdivision 1 or within ten days following 
 25.24  execution of the recognition. the joinder must be included in 
 25.25  the recognition form or incorporated by reference within the 
 25.26  recognition and attached to the form when it is filed with the 
 25.27  state registrar of vital statistics.  The joinder must be on a 
 25.28  form prepared by the commissioner of human services.  Failure to 
 25.29  properly execute a joinder in a recognition does not affect the 
 25.30  validity of the recognition under subdivision 1.  A joinder 
 25.31  without a corresponding recognition of parentage has no legal 
 25.32  effect. 
 25.33     Sec. 29.  Minnesota Statutes 1996, section 257.75, 
 25.34  subdivision 2, is amended to read: 
 25.35     Subd. 2.  [REVOCATION OF RECOGNITION.] A recognition may be 
 25.36  revoked in a writing signed by the mother or father before a 
 26.1   notary public and filed with the state registrar of vital 
 26.2   statistics within the earlier of 30 days after the recognition 
 26.3   is executed or the date of an administrative or judicial hearing 
 26.4   relating to the child in which the revoking party is a party to 
 26.5   the related action.  A joinder in a recognition may be revoked 
 26.6   in a writing signed by the man who executed the joinder and 
 26.7   filed with the state registrar of vital statistics within 30 
 26.8   days after the joinder is executed.  Upon receipt of a 
 26.9   revocation of the recognition of parentage or joinder in a 
 26.10  recognition, the state registrar of vital statistics shall 
 26.11  forward a copy of the revocation to the nonrevoking parent, or, 
 26.12  in the case of a joinder in a recognition, to the mother and 
 26.13  father who executed the recognition.  
 26.14     Sec. 30.  Minnesota Statutes 1996, section 257.75, 
 26.15  subdivision 3, is amended to read: 
 26.16     Subd. 3.  [EFFECT OF RECOGNITION.] Subject to subdivision 2 
 26.17  and section 257.55, subdivision 1, paragraph (g) or (h), the 
 26.18  recognition has the force and effect of a judgment or order 
 26.19  determining the existence of the parent and child relationship 
 26.20  under section 257.66.  If the conditions in section 257.55, 
 26.21  subdivision 1, paragraph (g) or (h), exist, the recognition 
 26.22  creates only a presumption of paternity for purposes of sections 
 26.23  257.51 to 257.74.  Once a recognition has been properly executed 
 26.24  and filed with the state registrar of vital statistics, if there 
 26.25  are no competing presumptions of paternity, a judicial or 
 26.26  administrative court may not allow further action to determine 
 26.27  parentage regarding the signator of the recognition.  Until an 
 26.28  order is entered granting custody to another, the mother has 
 26.29  sole custody.  The recognition is: 
 26.30     (1) a basis for bringing an action to award custody or 
 26.31  visitation rights to either parent, establishing a child support 
 26.32  obligation which may include up to the two years immediately 
 26.33  preceding the commencement of the action, ordering a 
 26.34  contribution by a parent under section 256.87, or ordering a 
 26.35  contribution to the reasonable expenses of the mother's 
 26.36  pregnancy and confinement, as provided under section 257.66, 
 27.1   subdivision 3, or ordering reimbursement for the costs of blood 
 27.2   or genetic testing, as provided under section 257.69, 
 27.3   subdivision 2; 
 27.4      (2) determinative for all other purposes related to the 
 27.5   existence of the parent and child relationship; and 
 27.6      (3) entitled to full faith and credit in other 
 27.7   jurisdictions.  
 27.8      Sec. 31.  Minnesota Statutes 1996, section 257.75, 
 27.9   subdivision 4, is amended to read: 
 27.10     Subd. 4.  [ACTION TO VACATE RECOGNITION.] (a) An action to 
 27.11  vacate a recognition of paternity may be brought by the mother, 
 27.12  father, husband or former husband who executed a joinder, or the 
 27.13  child.  An action to vacate a recognition of parentage may be 
 27.14  brought by the public authority if it is combined with an action 
 27.15  to establish parentage of another man.  A mother, father, or 
 27.16  husband or former husband who executed a joinder must bring the 
 27.17  action within one year of the execution of the recognition or 
 27.18  within six months after the person bringing the action obtains 
 27.19  the results of blood or genetic tests that indicate that the man 
 27.20  who executed the recognition is not the father of the child.  A 
 27.21  child must bring an action to vacate within six months after the 
 27.22  child obtains the result of blood or genetic tests that indicate 
 27.23  that the man who executed the recognition is not the father of 
 27.24  the child, or within one year of reaching the age of majority, 
 27.25  whichever is later.  If the court finds a prima facie basis for 
 27.26  vacating the recognition, the court shall order the child, 
 27.27  mother, father, and husband or former husband who executed a 
 27.28  joinder to submit to blood tests.  If the court issues an order 
 27.29  for the taking of blood tests, the court shall require the party 
 27.30  seeking to vacate the recognition to make advance payment for 
 27.31  the costs of the blood tests.  If the party fails to pay for the 
 27.32  costs of the blood tests, the court shall dismiss the action to 
 27.33  vacate with prejudice.  The court may also order the party 
 27.34  seeking to vacate the recognition to pay the other party's 
 27.35  reasonable attorney fees, costs, and disbursements.  If the 
 27.36  results of the blood tests establish that the man who executed 
 28.1   the recognition is not the father, the court shall vacate the 
 28.2   recognition.  If a recognition is vacated, any joinder in the 
 28.3   recognition under subdivision 1a is also vacated.  The court 
 28.4   shall terminate the obligation of a party to pay ongoing child 
 28.5   support based on the recognition.  A modification of child 
 28.6   support based on a recognition may be made retroactive with 
 28.7   respect to any period during which the moving party has pending 
 28.8   a motion to vacate the recognition but only from the date of 
 28.9   service of notice of the motion on the responding party. 
 28.10     (b) The burden of proof in an action to vacate the 
 28.11  recognition is on the moving party.  The moving party must 
 28.12  request the vacation on the basis of fraud, duress, or material 
 28.13  mistake of fact.  The legal responsibilities in existence at the 
 28.14  time of an action to vacate, including child support 
 28.15  obligations, may not be suspended during the proceeding, except 
 28.16  for good cause shown. 
 28.17     Sec. 32.  Minnesota Statutes 1996, section 257.75, 
 28.18  subdivision 5, is amended to read: 
 28.19     Subd. 5.  [RECOGNITION FORM.] The commissioner of human 
 28.20  services shall prepare a form for the recognition of parentage 
 28.21  under this section.  In preparing the form, the commissioner 
 28.22  shall consult with the individuals specified in subdivision 6.  
 28.23  The recognition form must be drafted so that the force and 
 28.24  effect of the recognition, the alternatives to executing a 
 28.25  recognition, and the benefits and responsibilities of 
 28.26  establishing paternity are clear and understandable.  The form 
 28.27  must include a notice regarding the finality of a recognition 
 28.28  and the revocation procedure under subdivision 2.  The form must 
 28.29  include a provision for each parent to verify that the parent 
 28.30  has read or viewed the educational materials prepared by the 
 28.31  commissioner of human services describing the recognition of 
 28.32  paternity.  If feasible, the individual providing the form to 
 28.33  the parents for execution shall provide oral notice of the 
 28.34  rights, responsibilities, and alternatives to executing the 
 28.35  recognition.  Notice may be provided by audiotape, videotape, or 
 28.36  similar means.  Each parent must receive a copy of the 
 29.1   recognition. 
 29.2      Sec. 33.  Minnesota Statutes 1996, section 257.75, 
 29.3   subdivision 7, is amended to read: 
 29.4      Subd. 7.  [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 
 29.5   OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 
 29.6   provide obstetric services and the state registrar of vital 
 29.7   statistics shall distribute the educational materials and 
 29.8   recognition of parentage forms prepared by the commissioner of 
 29.9   human services to new parents and shall assist parents in 
 29.10  understanding the recognition of parentage form, including 
 29.11  following the provisions for notice under subdivision 5.  On and 
 29.12  after January 1, 1994, hospitals may not distribute the 
 29.13  declaration of parentage forms. 
 29.14     Sec. 34.  Minnesota Statutes 1996, section 299C.46, 
 29.15  subdivision 3, is amended to read: 
 29.16     Subd. 3.  [AUTHORIZED USE, FEE.] (a) The data 
 29.17  communications network shall be used exclusively by:  
 29.18     (1) criminal justice agencies in connection with the 
 29.19  performance of duties required by law; 
 29.20     (2) agencies investigating federal security clearances of 
 29.21  individuals for assignment or retention in federal employment 
 29.22  with duties related to national security, as required by Public 
 29.23  Law Number 99-1691; and 
 29.24     (3) other agencies to the extent necessary to provide for 
 29.25  protection of the public or property in an emergency or disaster 
 29.26  situation; and 
 29.27     (4) the public authority responsible for child support 
 29.28  enforcement in connection with the performance of its duties.  
 29.29     (b) The commissioner of public safety shall establish a 
 29.30  monthly network access charge to be paid by each participating 
 29.31  criminal justice agency.  The network access charge shall be a 
 29.32  standard fee established for each terminal, computer, or other 
 29.33  equipment directly addressable by the criminal justice data 
 29.34  communications network, as follows:  January 1, 1984 to December 
 29.35  31, 1984, $40 connect fee per month; January 1, 1985 and 
 29.36  thereafter, $50 connect fee per month.  
 30.1      (c) The commissioner of public safety is authorized to 
 30.2   arrange for the connection of the data communications network 
 30.3   with the criminal justice information system of the federal 
 30.4   government, any adjacent state, or Canada. 
 30.5      Sec. 35.  Minnesota Statutes 1996, section 518.005, is 
 30.6   amended by adding a subdivision to read: 
 30.7      Subd. 5.  [PROHIBITED DISCLOSURE.] In all proceedings under 
 30.8   this chapter in which public assistance is assigned under 
 30.9   section 256.741 or the public authority provides services to a 
 30.10  party or parties to the proceedings, notwithstanding statutory 
 30.11  or other authorization for the public authority to release 
 30.12  private data on the location of a party to the action, 
 30.13  information on the location of one party may not be released by 
 30.14  the public authority to the other party if: 
 30.15     (1) the public authority has knowledge that a protective 
 30.16  order with respect to the other party has been entered; or 
 30.17     (2) the public authority has reason to believe that the 
 30.18  release of the information may result in physical or emotional 
 30.19  harm to the other party. 
 30.20     Sec. 36.  Minnesota Statutes 1996, section 518.10, is 
 30.21  amended to read: 
 30.22     518.10 [REQUISITES OF PETITION.] 
 30.23     The petition for dissolution of marriage or legal 
 30.24  separation shall state and allege: 
 30.25     (a) The name and, address, and, in circumstances in which 
 30.26  child support or spousal maintenance will be addressed, social 
 30.27  security number of the petitioner and any prior or other name 
 30.28  used by the petitioner; 
 30.29     (b) The name and, if known, the address and, in 
 30.30  circumstances in which child support or spousal maintenance will 
 30.31  be addressed, social security number of the respondent and any 
 30.32  prior or other name used by the respondent and known to the 
 30.33  petitioner; 
 30.34     (c) The place and date of the marriage of the parties; 
 30.35     (d) In the case of a petition for dissolution, that either 
 30.36  the petitioner or the respondent or both:  
 31.1      (1) Has resided in this state for not less than 180 days 
 31.2   immediately preceding the commencement of the proceeding, or 
 31.3      (2) Has been a member of the armed services and has been 
 31.4   stationed in this state for not less than 180 days immediately 
 31.5   preceding the commencement of the proceeding, or 
 31.6      (3) Has been a domiciliary of this state for not less than 
 31.7   180 days immediately preceding the commencement of the 
 31.8   proceeding; 
 31.9      (e) The name at the time of the petition and any prior or 
 31.10  other name, age and date of birth of each living minor or 
 31.11  dependent child of the parties born before the marriage or born 
 31.12  or adopted during the marriage and a reference to, and the 
 31.13  expected date of birth of, a child of the parties conceived 
 31.14  during the marriage but not born; 
 31.15     (f) Whether or not a separate proceeding for dissolution, 
 31.16  legal separation, or custody is pending in a court in this state 
 31.17  or elsewhere; 
 31.18     (g) In the case of a petition for dissolution, that there 
 31.19  has been an irretrievable breakdown of the marriage 
 31.20  relationship; 
 31.21     (h) In the case of a petition for legal separation, that 
 31.22  there is a need for a decree of legal separation; and 
 31.23     (i) Any temporary or permanent maintenance, child support, 
 31.24  child custody, disposition of property, attorneys' fees, costs 
 31.25  and disbursements applied for without setting forth the amounts. 
 31.26     The petition shall be verified by the petitioner or 
 31.27  petitioners, and its allegations established by competent 
 31.28  evidence.  
 31.29     Sec. 37.  [518.111] [SUFFICIENCY OF NOTICE.] 
 31.30     (a) Automated child support notices sent by the public 
 31.31  authority that do not require service are sufficient notice when 
 31.32  issued and mailed by first class mail to the person's last known 
 31.33  address. 
 31.34     (b) It is not a defense that a person failed to notify the 
 31.35  public authority of a change of address as required by state law.
 31.36     Sec. 38.  Minnesota Statutes 1996, section 518.148, 
 32.1   subdivision 2, is amended to read: 
 32.2      Subd. 2.  [REQUIRED INFORMATION.] The certificate shall 
 32.3   include the following information: 
 32.4      (1) the full caption and file number of the case and the 
 32.5   title "Certificate of Dissolution"; 
 32.6      (2) the names and any prior or other names of the parties 
 32.7   to the dissolution; 
 32.8      (3) the names of any living minor or dependent children as 
 32.9   identified in the judgment and decree; 
 32.10     (4) that the marriage of the parties is dissolved; and 
 32.11     (5) the date of the judgment and decree; and 
 32.12     (6) the social security number of the parties to the 
 32.13  dissolution and the social security number of any living minor 
 32.14  or dependent children identified in the judgment and decree. 
 32.15     Sec. 39.  Minnesota Statutes 1996, section 518.171, 
 32.16  subdivision 1, is amended to read: 
 32.17     Subdivision 1.  [ORDER.] Compliance with this section 
 32.18  constitutes compliance with a qualified medical child support 
 32.19  order as described in the federal Employee Retirement Income 
 32.20  Security Act of 1974 (ERISA) as amended by the federal Omnibus 
 32.21  Budget Reconciliation Act of 1993 (OBRA).  
 32.22     (a) Every child support order must: 
 32.23     (1) expressly assign or reserve the responsibility for 
 32.24  maintaining medical insurance for the minor children and the 
 32.25  division of uninsured medical and dental costs; and 
 32.26     (2) contain the names and, last known addresses, if any and 
 32.27  social security number of the custodial parent and noncustodial 
 32.28  parent, of the dependents unless the court prohibits the 
 32.29  inclusion of an address or social security number and orders the 
 32.30  custodial parent to provide the address and social security 
 32.31  number to the administrator of the health plan.  The court shall 
 32.32  order the party with the better group dependent health and 
 32.33  dental insurance coverage or health insurance plan to name the 
 32.34  minor child as beneficiary on any health and dental insurance 
 32.35  plan that is available to the party on: 
 32.36     (i) a group basis; 
 33.1      (ii) through an employer or union; or 
 33.2      (iii) through a group health plan governed under the ERISA 
 33.3   and included within the definitions relating to health plans 
 33.4   found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
 33.5   "Health insurance" or "health insurance coverage" as used in 
 33.6   this section means coverage that is comparable to or better than 
 33.7   a number two qualified plan as defined in section 62E.06, 
 33.8   subdivision 2.  "Health insurance" or "health insurance 
 33.9   coverage" as used in this section does not include medical 
 33.10  assistance provided under chapter 256, 256B, or 256D. 
 33.11     (b) If the court finds that dependent health or dental 
 33.12  insurance is not available to the obligor or obligee on a group 
 33.13  basis or through an employer or union, or that group insurance 
 33.14  is not accessible to the obligee, the court may require the 
 33.15  obligor (1) to obtain other dependent health or dental 
 33.16  insurance, (2) to be liable for reasonable and necessary medical 
 33.17  or dental expenses of the child, or (3) to pay no less than $50 
 33.18  per month to be applied to the medical and dental expenses of 
 33.19  the children or to the cost of health insurance dependent 
 33.20  coverage. 
 33.21     (c) If the court finds that the available dependent health 
 33.22  or dental insurance does not pay all the reasonable and 
 33.23  necessary medical or dental expenses of the child, including any 
 33.24  existing or anticipated extraordinary medical expenses, and the 
 33.25  court finds that the obligor has the financial ability to 
 33.26  contribute to the payment of these medical or dental expenses, 
 33.27  the court shall require the obligor to be liable for all or a 
 33.28  portion of the medical or dental expenses of the child not 
 33.29  covered by the required health or dental plan.  Medical and 
 33.30  dental expenses include, but are not limited to, necessary 
 33.31  orthodontia and eye care, including prescription lenses. 
 33.32     (d) Unless otherwise agreed by the parties and approved by 
 33.33  the court, if the court finds that the obligee is not receiving 
 33.34  public assistance for the child and has the financial ability to 
 33.35  contribute to the cost of medical and dental expenses for the 
 33.36  child, including the cost of insurance, the court shall order 
 34.1   the obligee and obligor to each assume a portion of these 
 34.2   expenses based on their proportionate share of their total net 
 34.3   income as defined in section 518.54, subdivision 6. 
 34.4      (e) Payments ordered under this section are subject to 
 34.5   section 518.611.  An obligee who fails to apply payments 
 34.6   received to the medical expenses of the dependents may be found 
 34.7   in contempt of this order. 
 34.8      Sec. 40.  Minnesota Statutes 1996, section 518.171, 
 34.9   subdivision 4, is amended to read: 
 34.10     Subd. 4.  [EFFECT OF ORDER.] (a) The order is binding on 
 34.11  the employer or union and the health and dental insurance plan 
 34.12  when service under subdivision 3 has been made.  In the case of 
 34.13  an obligor who changes employment and is required to provide 
 34.14  health coverage for the child, a new employer that provides 
 34.15  health care coverage shall enroll the child in the obligor's 
 34.16  health plan upon receipt of an order or notice for health 
 34.17  insurance, unless the obligor contests the enrollment.  The 
 34.18  obligor may contest the enrollment on the limited grounds that 
 34.19  the enrollment is improper due to mistake of fact or that the 
 34.20  enrollment meets the requirements of section 518.64, subdivision 
 34.21  2.  If the obligor chooses to contest the enrollment, the 
 34.22  obligor must do so no later than 15 days after the employer 
 34.23  notifies the obligor of the enrollment, by doing all of the 
 34.24  following: 
 34.25     (1) filing a request for contested hearing according to 
 34.26  section 518.5511, subdivision 3a; 
 34.27     (2) serving a copy of the request for contested hearing 
 34.28  upon the public authority and the obligee; and 
 34.29     (3) securing a date for the contested hearing no later than 
 34.30  45 days after the notice of enrollment. 
 34.31     (b) The enrollment must remain in place during the time 
 34.32  period in which the obligor contests the withholding. 
 34.33  An employer or union that is included under ERISA may not deny 
 34.34  enrollment based on exclusionary clauses described in section 
 34.35  62A.048.  Upon receipt of the order, or upon application of the 
 34.36  obligor pursuant according to the order or notice, the employer 
 35.1   or union and its health and dental insurance plan shall enroll 
 35.2   the minor child as a beneficiary in the group insurance plan and 
 35.3   withhold any required premium from the obligor's income or 
 35.4   wages.  If more than one plan is offered by the employer or 
 35.5   union, the child shall be enrolled in the least costly health 
 35.6   insurance plan otherwise available to the obligor that is 
 35.7   comparable to a number two qualified plan.  If the obligor is 
 35.8   not enrolled in a health insurance plan, the employer or union 
 35.9   shall also enroll the obligor in the chosen plan if enrollment 
 35.10  of the obligor is necessary in order to obtain dependent 
 35.11  coverage under the plan.  Enrollment of dependents and the 
 35.12  obligor shall be immediate and not dependent upon open 
 35.13  enrollment periods.  Enrollment is not subject to the 
 35.14  underwriting policies described in section 62A.048.  
 35.15     (b) (c) An employer or union that willfully fails to comply 
 35.16  with the order is liable for any health or dental expenses 
 35.17  incurred by the dependents during the period of time the 
 35.18  dependents were eligible to be enrolled in the insurance 
 35.19  program, and for any other premium costs incurred because the 
 35.20  employer or union willfully failed to comply with the order.  An 
 35.21  employer or union that fails to comply with the order is subject 
 35.22  to contempt under section 518.615 and is also subject to a fine 
 35.23  of $500 to be paid to the obligee or public authority.  Fines 
 35.24  paid to the public authority are designated for child support 
 35.25  enforcement services. 
 35.26     (c) (d) Failure of the obligor to execute any documents 
 35.27  necessary to enroll the dependent in the group health and dental 
 35.28  insurance plan will not affect the obligation of the employer or 
 35.29  union and group health and dental insurance plan to enroll the 
 35.30  dependent in a plan.  Information and authorization provided by 
 35.31  the public authority responsible for child support enforcement, 
 35.32  or by the custodial parent or guardian, is valid for the 
 35.33  purposes of meeting enrollment requirements of the health plan.  
 35.34  The insurance coverage for a child eligible under subdivision 5 
 35.35  shall not be terminated except as authorized in subdivision 5. 
 35.36     Sec. 41.  Minnesota Statutes 1996, section 518.54, is 
 36.1   amended by adding a subdivision to read: 
 36.2      Subd. 4a.  [SUPPORT ORDER.] "Support order" means a 
 36.3   judgment, decree, or order, whether temporary, final, or subject 
 36.4   to modification, issued by a court or administrative agency of 
 36.5   competent jurisdiction, for the support and maintenance of a 
 36.6   child, including a child who has attained the age of majority 
 36.7   under the law of the issuing state, or a child and the parent 
 36.8   with whom the child is living, that provides for monetary 
 36.9   support, child care, medical support including expenses for 
 36.10  confinement and pregnancy, arrearages, or reimbursement, and 
 36.11  that may include related costs and fees, interest and penalties, 
 36.12  income withholding, and other relief. This definition applies to 
 36.13  orders issued under this chapter and chapters 256, 257, and 518C.
 36.14     Sec. 42.  Minnesota Statutes 1996, section 518.54, 
 36.15  subdivision 6, is amended to read: 
 36.16     Subd. 6.  [INCOME.] (a) "Income" means any form of periodic 
 36.17  payment to an individual including, but not limited to, wages, 
 36.18  salaries, payments to an independent contractor, workers' 
 36.19  compensation, reemployment insurance, annuity, military and 
 36.20  naval retirement, pension and disability payments.  Benefits 
 36.21  received under sections 256.72 to 256.87 and chapter 256D Title 
 36.22  IV-A of the Social Security Act are not income under this 
 36.23  section. 
 36.24     (b) Income also includes nonperiodic distributions of 
 36.25  workers' compensation claims, reemployment claims, personal 
 36.26  injury recoveries for lost wages or salary, proceeds from a 
 36.27  lawsuit for lost wages or salary, severance pay, and bonuses. 
 36.28     Sec. 43.  Minnesota Statutes 1996, section 518.551, 
 36.29  subdivision 5, is amended to read: 
 36.30     Subd. 5.  [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 
 36.31  petitioner shall notify the public authority of all proceedings 
 36.32  for dissolution, legal separation, determination of parentage or 
 36.33  for the custody of a child, if either party is receiving aid to 
 36.34  families with dependent children or applies for it subsequent to 
 36.35  the commencement of the proceeding.  The notice must contain the 
 36.36  full names of the parties to the proceeding, their social 
 37.1   security account numbers, and their birth dates.  After receipt 
 37.2   of the notice, the court shall set child support as provided in 
 37.3   this subdivision.  The court may order either or both parents 
 37.4   owing a duty of support to a child of the marriage to pay an 
 37.5   amount reasonable or necessary for the child's support, without 
 37.6   regard to marital misconduct.  The court shall approve a child 
 37.7   support stipulation of the parties if each party is represented 
 37.8   by independent counsel, unless the stipulation does not meet the 
 37.9   conditions of paragraph (i).  In other cases the court shall 
 37.10  determine and order child support in a specific dollar amount in 
 37.11  accordance with the guidelines and the other factors set forth 
 37.12  in paragraph (c) and any departure therefrom.  The court may 
 37.13  also order the obligor to pay child support in the form of a 
 37.14  percentage share of the obligor's net bonuses, commissions, or 
 37.15  other forms of compensation, in addition to, or if the obligor 
 37.16  receives no base pay, in lieu of, an order for a specific dollar 
 37.17  amount. 
 37.18     (b) The court shall derive a specific dollar amount for 
 37.19  child support by multiplying the obligor's net income by the 
 37.20  percentage indicated by the following guidelines:  
 37.21  Net Income Per            Number of Children 
 37.22  Month of Obligor 
 37.23                1     2     3     4     5     6    7 or 
 37.24                                                   more 
 37.25  $550 and Below     Order based on the ability of the 
 37.26                     obligor to provide support  
 37.27                     at these income levels, or at higher  
 37.28                     levels, if the obligor has 
 37.29                     the earning ability. 
 37.30  $551 - 600   16%   19%   22%   25%   28%   30%   32% 
 37.31  $601 - 650   17%   21%   24%   27%   29%   32%   34% 
 37.32  $651 - 700   18%   22%   25%   28%   31%   34%   36% 
 37.33  $701 - 750   19%   23%   27%   30%   33%   36%   38% 
 37.34  $751 - 800   20%   24%   28%   31%   35%   38%   40% 
 37.35  $801 - 850   21%   25%   29%   33%   36%   40%   42% 
 37.36  $851 - 900   22%   27%   31%   34%   38%   41%   44% 
 38.1   $901 - 950   23%   28%   32%   36%   40%   43%   46% 
 38.2   $951 - 1000  24%   29%   34%   38%   41%   45%   48% 
 38.3   $1001- 5000  25%   30%   35%   39%   43%   47%   50% 
 38.4   or the amount 
 38.5   in effect under
 38.6   paragraph (k)
 38.7      Guidelines for support for an obligor with a monthly income 
 38.8   in excess of the income limit currently in effect under 
 38.9   paragraph (k) shall be the same dollar amounts as provided for 
 38.10  in the guidelines for an obligor with a monthly income equal to 
 38.11  the limit in effect. 
 38.12  Net Income defined as: 
 38.13           
 38.14           Total monthly 
 38.15           income less           *(i) Federal Income Tax 
 38.16                                *(ii) State Income Tax 
 38.17                                (iii) Social Security
 38.18                                       Deductions 
 38.19                                 (iv) Reasonable
 38.20                                       Pension Deductions
 38.21           *Standard 
 38.22           Deductions apply for   (v) Union Dues 
 38.23           single person with     (vi) Cost of Dependent Health
 38.24           one exemption-use of        Insurance Coverage
 38.25           tax tables 
 38.26           recommended                                     
 38.27                                (vii) Cost of Individual or Group
 38.28                                       Health/Hospitalization
 38.29                                       Coverage or an        
 38.30                                       Amount for Actual 
 38.31                                       Medical Expenses   
 38.32                               (viii) A Child Support or  
 38.33                                       Maintenance Order that is
 38.34                                       Currently Being Paid. 
 38.35     "Net income" does not include: 
 38.36     (1) the income of the obligor's spouse, but does include 
 39.1   in-kind payments received by the obligor in the course of 
 39.2   employment, self-employment, or operation of a business if the 
 39.3   payments reduce the obligor's living expenses; or 
 39.4      (2) compensation received by a party for employment in 
 39.5   excess of a 40-hour work week, provided that: 
 39.6      (i) support is nonetheless ordered in an amount at least 
 39.7   equal to the guidelines amount based on income not excluded 
 39.8   under this clause; and 
 39.9      (ii) the party demonstrates, and the court finds, that: 
 39.10     (A) the excess employment began after the filing of the 
 39.11  petition for dissolution; 
 39.12     (B) the excess employment reflects an increase in the work 
 39.13  schedule or hours worked over that of the two years immediately 
 39.14  preceding the filing of the petition; 
 39.15     (C) the excess employment is voluntary and not a condition 
 39.16  of employment; 
 39.17     (D) the excess employment is in the nature of additional, 
 39.18  part-time or overtime employment compensable by the hour or 
 39.19  fraction of an hour; and 
 39.20     (E) the party's compensation structure has not been changed 
 39.21  for the purpose of affecting a support or maintenance obligation.
 39.22     The court shall review the work-related and 
 39.23  education-related child care costs paid and shall allocate the 
 39.24  costs to each parent in proportion to each parent's net income, 
 39.25  as determined under this subdivision, after the transfer of 
 39.26  child support and spousal maintenance, unless the allocation 
 39.27  would be substantially unfair to either parent.  There is a 
 39.28  presumption of substantial unfairness if after the sum total of 
 39.29  child support, spousal maintenance, and child care costs is 
 39.30  subtracted from the noncustodial parent's income, the income is 
 39.31  at or below 100 percent of the federal poverty guidelines.  The 
 39.32  cost of child care for purposes of this paragraph is 75 percent 
 39.33  of the actual cost paid for child care, to reflect the 
 39.34  approximate value of state and federal tax credits available to 
 39.35  the custodial parent.  The actual cost paid for child care is 
 39.36  the total amount received by the child care provider for the 
 40.1   child or children of the obligor from the obligee or any public 
 40.2   agency.  The court shall require verification of employment or 
 40.3   school attendance and documentation of child care expenses from 
 40.4   the obligee and the public agency, if applicable.  If child care 
 40.5   expenses fluctuate during the year because of seasonal 
 40.6   employment or school attendance of the obligee or extended 
 40.7   periods of visitation with the obligor, the court shall 
 40.8   determine child care expenses based on an average monthly cost.  
 40.9   The amount allocated for child care expenses is considered child 
 40.10  support but is not subject to a cost-of-living adjustment under 
 40.11  section 518.641.  The amount allocated for child care expenses 
 40.12  terminates when either party notifies the public authority that 
 40.13  the child care costs have ended and without any legal action on 
 40.14  the part of either party.  The public authority shall verify the 
 40.15  information received under this provision before authorizing 
 40.16  termination.  The termination is effective as of the date of the 
 40.17  notification.  In other cases where there is a substantial 
 40.18  increase or decrease in child care expenses, the parties may 
 40.19  modify the order under section 518.64. 
 40.20     The court may allow the noncustodial parent to care for the 
 40.21  child while the custodial parent is working, as provided in 
 40.22  section 518.175, subdivision 8.  Allowing the noncustodial 
 40.23  parent to care for the child under section 518.175, subdivision 
 40.24  8, is not a reason to deviate from the guidelines. 
 40.25     (c) In addition to the child support guidelines, the court 
 40.26  shall take into consideration the following factors in setting 
 40.27  or modifying child support or in determining whether to deviate 
 40.28  from the guidelines: 
 40.29     (1) all earnings, income, and resources of the parents, 
 40.30  including real and personal property, but excluding income from 
 40.31  excess employment of the obligor or obligee that meets the 
 40.32  criteria of paragraph (b), clause (2)(ii); 
 40.33     (2) the financial needs and resources, physical and 
 40.34  emotional condition, and educational needs of the child or 
 40.35  children to be supported; 
 40.36     (3) the standard of living the child would have enjoyed had 
 41.1   the marriage not been dissolved, but recognizing that the 
 41.2   parents now have separate households; 
 41.3      (4) which parent receives the income taxation dependency 
 41.4   exemption and what financial benefit the parent receives from 
 41.5   it; 
 41.6      (5) the parents' debts as provided in paragraph (d); and 
 41.7      (6) the obligor's receipt of assistance under sections 
 41.8   256.72 to 256.87 or 256B.01 to 256B.40 section 256.741.  
 41.9      (d) In establishing or modifying a support obligation, the 
 41.10  court may consider debts owed to private creditors, but only if: 
 41.11     (1) the right to support has not been assigned under 
 41.12  section 256.74 256.741; 
 41.13     (2) the court determines that the debt was reasonably 
 41.14  incurred for necessary support of the child or parent or for the 
 41.15  necessary generation of income.  If the debt was incurred for 
 41.16  the necessary generation of income, the court shall consider 
 41.17  only the amount of debt that is essential to the continuing 
 41.18  generation of income; and 
 41.19     (3) the party requesting a departure produces a sworn 
 41.20  schedule of the debts, with supporting documentation, showing 
 41.21  goods or services purchased, the recipient of them, the amount 
 41.22  of the original debt, the outstanding balance, the monthly 
 41.23  payment, and the number of months until the debt will be fully 
 41.24  paid. 
 41.25     (e) Any schedule prepared under paragraph (d), clause (3), 
 41.26  shall contain a statement that the debt will be fully paid after 
 41.27  the number of months shown in the schedule, barring emergencies 
 41.28  beyond the party's control.  
 41.29     (f) Any further departure below the guidelines that is 
 41.30  based on a consideration of debts owed to private creditors 
 41.31  shall not exceed 18 months in duration, after which the support 
 41.32  shall increase automatically to the level ordered by the court.  
 41.33  Nothing in this section shall be construed to prohibit one or 
 41.34  more step increases in support to reflect debt retirement during 
 41.35  the 18-month period.  
 41.36     (g) If payment of debt is ordered pursuant to this section, 
 42.1   the payment shall be ordered to be in the nature of child 
 42.2   support.  
 42.3      (h) Nothing shall preclude the court from receiving 
 42.4   evidence on the above factors to determine if the guidelines 
 42.5   should be exceeded or modified in a particular case.  
 42.6      (i) The guidelines in this subdivision are a rebuttable 
 42.7   presumption and shall be used in all cases when establishing or 
 42.8   modifying child support.  If the court does not deviate from the 
 42.9   guidelines, the court shall make written findings concerning the 
 42.10  amount of the obligor's income used as the basis for the 
 42.11  guidelines calculation and any other significant evidentiary 
 42.12  factors affecting the determination of child support.  If the 
 42.13  court deviates from the guidelines, the court shall make written 
 42.14  findings giving the amount of support calculated under the 
 42.15  guidelines, the reasons for the deviation, and shall 
 42.16  specifically address the criteria in paragraph (c) and how the 
 42.17  deviation serves the best interest of the child.  The court may 
 42.18  deviate from the guidelines if both parties agree and the court 
 42.19  makes written findings that it is in the best interests of the 
 42.20  child, except that in cases where child support payments are 
 42.21  assigned to the public agency under section 256.74 256.741, the 
 42.22  court may deviate downward only as provided in paragraph (j).  
 42.23  Nothing in this paragraph prohibits the court from deviating in 
 42.24  other cases.  The provisions of this paragraph apply whether or 
 42.25  not the parties are each represented by independent counsel and 
 42.26  have entered into a written agreement.  The court shall review 
 42.27  stipulations presented to it for conformity to the guidelines 
 42.28  and the court is not required to conduct a hearing, but the 
 42.29  parties shall provide the documentation of earnings required 
 42.30  under subdivision 5b. 
 42.31     (j) If the child support payments are assigned to the 
 42.32  public agency under section 256.74 256.741, the court may not 
 42.33  deviate downward from the child support guidelines unless the 
 42.34  court specifically finds that the failure to deviate downward 
 42.35  would impose an extreme hardship on the obligor. 
 42.36     (k) The dollar amount of the income limit for application 
 43.1   of the guidelines must be adjusted on July 1 of every 
 43.2   even-numbered year to reflect cost-of-living changes.  The 
 43.3   supreme court shall select the index for the adjustment from the 
 43.4   indices listed in section 518.641.  The state court 
 43.5   administrator shall make the changes in the dollar amount 
 43.6   required by this paragraph available to courts and the public on 
 43.7   or before April 30 of the year in which the amount is to change. 
 43.8      Sec. 44.  Minnesota Statutes 1996, section 518.551, 
 43.9   subdivision 5b, is amended to read: 
 43.10     Subd. 5b.  [DETERMINATION OF INCOME.] (a) The parties shall 
 43.11  timely serve and file documentation of earnings and income. When 
 43.12  there is a prehearing conference, the court must receive the 
 43.13  documentation of income at least ten days prior to the 
 43.14  prehearing conference.  Documentation of earnings and income 
 43.15  also includes, but is not limited to, pay stubs for the most 
 43.16  recent three months, employer statements, or statement of 
 43.17  receipts and expenses if self-employed.  Documentation of 
 43.18  earnings and income also includes copies of each parent's most 
 43.19  recent federal tax returns, including W-2 forms, 1099 forms, 
 43.20  reemployment insurance statements, workers' compensation 
 43.21  statements, and all other documents evidencing income as 
 43.22  received that provide verification of income over a longer 
 43.23  period. 
 43.24     (b) In addition to the requirements of paragraph (a), at 
 43.25  any time after an action seeking child support has been 
 43.26  commenced or when a child support order is in effect, a party or 
 43.27  the public authority may require the other party to give them a 
 43.28  copy of the party's most recent federal tax returns that were 
 43.29  filed with the Internal Revenue Service.  The party shall 
 43.30  provide a copy of the tax returns within 30 days of receipt of 
 43.31  the request unless the request is not made in good faith.  A 
 43.32  request under this paragraph may not be made more than once 
 43.33  every two years, in the absence of good cause. 
 43.34     (c) If a parent under the jurisdiction of the court does 
 43.35  not appear at a court hearing after proper notice of the time 
 43.36  and place of the hearing, the court shall set income for that 
 44.1   parent based on credible evidence before the court or in 
 44.2   accordance with paragraph (d).  Credible evidence may include 
 44.3   documentation of current or recent income, testimony of the 
 44.4   other parent concerning recent earnings and income levels, and 
 44.5   the parent's wage reports filed with the Minnesota department of 
 44.6   economic security under section 268.121.  
 44.7      (d) If the court finds that a parent is voluntarily 
 44.8   unemployed or underemployed, child support shall be calculated 
 44.9   based on a determination of imputed income.  A parent is not 
 44.10  considered voluntarily unemployed or underemployed upon a 
 44.11  showing by the parent that the unemployment or underemployment:  
 44.12  (1) is temporary and will ultimately lead to an increase in 
 44.13  income; or (2) represents a bona fide career change that 
 44.14  outweighs the adverse effect of that parent's diminished income 
 44.15  on the child.  Imputed income means the estimated earning 
 44.16  ability of a parent based on the parent's prior earnings 
 44.17  history, education, and job skills, and on availability of jobs 
 44.18  within the community for an individual with the parent's 
 44.19  qualifications.  If the court is unable to determine or estimate 
 44.20  the earning ability of a parent, the court may calculate child 
 44.21  support based on full-time employment of 40 hours per week 
 44.22  at 150 percent of the federal minimum wage or the Minnesota 
 44.23  minimum wage, whichever is higher.  Any medical support or child 
 44.24  care contribution must be calculated based upon the obligor's 
 44.25  proportionate share of the child care expenses using 40 hours 
 44.26  per week at 150 percent of the federal minimum wage or the 
 44.27  Minnesota minimum wage, whichever is higher.  If a parent is a 
 44.28  recipient of public cash or medical assistance under sections 
 44.29  256.72 to 256.87 or chapter 256D section 256.741, or is 
 44.30  physically or mentally incapacitated, it shall be presumed that 
 44.31  the parent is not voluntarily unemployed or underemployed.  
 44.32     (e) Income from self employment is equal to gross receipts 
 44.33  minus ordinary and necessary expenses.  Ordinary and necessary 
 44.34  expenses do not include amounts allowed by the Internal Revenue 
 44.35  Service for accelerated depreciation expenses or investment tax 
 44.36  credits or any other business expenses determined by the court 
 45.1   to be inappropriate for determining income for purposes of child 
 45.2   support.  A person seeking to deduct an expense, including 
 45.3   depreciation, has the burden of proving, if challenged, that the 
 45.4   expense is ordinary and necessary.  Net income under this 
 45.5   section may be different from taxable income. 
 45.6      Sec. 45.  Minnesota Statutes 1996, section 518.551, 
 45.7   subdivision 7, is amended to read: 
 45.8      Subd. 7.  [SERVICE FEE.] When the public agency responsible 
 45.9   for child support enforcement provides child support collection 
 45.10  services either to a public assistance recipient or to a party 
 45.11  who does not receive public assistance, the public agency may 
 45.12  upon written notice to the obligor charge a monthly collection 
 45.13  fee equivalent to the full monthly cost to the county of 
 45.14  providing collection services, in addition to the amount of the 
 45.15  child support which was ordered by the court.  The fee shall be 
 45.16  deposited in the county general fund.  The service fee assessed 
 45.17  is limited to ten percent of the monthly court ordered child 
 45.18  support and shall not be assessed to obligors who are current in 
 45.19  payment of the monthly court ordered child support. 
 45.20     An application fee of $25 shall be paid by the person who 
 45.21  applies for child support and maintenance collection services, 
 45.22  except persons who are receiving public assistance as defined in 
 45.23  section 256.741 and persons who transfer from public assistance 
 45.24  to nonpublic assistance status.  Fees assessed by state and 
 45.25  federal tax agencies for collection of overdue support owed to 
 45.26  or on behalf of a person not receiving public assistance must be 
 45.27  imposed on the person for whom these services are provided.  The 
 45.28  public authority upon written notice to the obligee shall assess 
 45.29  a fee of $25 to the person not receiving public assistance for 
 45.30  each successful federal tax interception.  The fee must be 
 45.31  withheld prior to the release of the funds received from each 
 45.32  interception and deposited in the general fund. 
 45.33     However, the limitations of this subdivision on the 
 45.34  assessment of fees shall not apply to the extent inconsistent 
 45.35  with the requirements of federal law for receiving funds for the 
 45.36  programs under Title IV-A and Title IV-D of the Social Security 
 46.1   Act, United States Code, title 42, sections 601 to 613 and 
 46.2   United States Code, title 42, sections 651 to 662.  
 46.3      Sec. 46.  Minnesota Statutes 1996, section 518.551, 
 46.4   subdivision 12, is amended to read: 
 46.5      Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
 46.6   motion of an obligee, if the court finds that the obligor is or 
 46.7   may be licensed by a licensing board listed in section 214.01 or 
 46.8   other state, county, or municipal agency or board that issues an 
 46.9   occupational license and the obligor is in arrears in 
 46.10  court-ordered child support or maintenance payments or both in 
 46.11  an amount equal to or greater than three times the obligor's 
 46.12  total monthly support and maintenance payments and is not in 
 46.13  compliance with a written payment agreement regarding both 
 46.14  current support and arrearages approved by the court, an 
 46.15  administrative law judge, or the public authority, the 
 46.16  administrative law judge, or the court shall direct the 
 46.17  licensing board or other licensing agency to suspend the license 
 46.18  under section 214.101.  The court's order must be stayed for 90 
 46.19  days in order to allow the obligor to execute a written payment 
 46.20  agreement regarding both current support and arrearages.  The 
 46.21  payment agreement must be approved by either the court or the 
 46.22  public authority responsible for child support enforcement.  If 
 46.23  the obligor has not executed or is not in compliance with a 
 46.24  written payment agreement regarding both current support and 
 46.25  arrearages after the 90 days expires, the court's order becomes 
 46.26  effective.  If the obligor is a licensed attorney, the court 
 46.27  shall report the matter to the lawyers professional 
 46.28  responsibility board for appropriate action in accordance with 
 46.29  the rules of professional conduct.  The remedy under this 
 46.30  subdivision is in addition to any other enforcement remedy 
 46.31  available to the court. 
 46.32     (b) If a public authority responsible for child support 
 46.33  enforcement finds that the obligor is or may be licensed by a 
 46.34  licensing board listed in section 214.01 or other state, county, 
 46.35  or municipal agency or board that issues an occupational license 
 46.36  and the obligor is in arrears in court-ordered child support or 
 47.1   maintenance payments or both in an amount equal to or greater 
 47.2   than three times the obligor's total monthly support and 
 47.3   maintenance payments and is not in compliance with a written 
 47.4   payment agreement regarding both current support and arrearages 
 47.5   approved by the court, an administrative law judge, or the 
 47.6   public authority, the court, an administrative law judge, or the 
 47.7   public authority shall direct the licensing board or other 
 47.8   licensing agency to suspend the license under section 214.101.  
 47.9   If the obligor is a licensed attorney, the public authority may 
 47.10  report the matter to the lawyers professional responsibility 
 47.11  board for appropriate action in accordance with the rules of 
 47.12  professional conduct.  The remedy under this subdivision is in 
 47.13  addition to any other enforcement remedy available to the public 
 47.14  authority. 
 47.15     (c) At least 90 days before notifying a licensing authority 
 47.16  or the lawyers professional responsibility board under paragraph 
 47.17  (b), the public authority shall mail a written notice to the 
 47.18  license holder addressed to the license holder's last known 
 47.19  address that the public authority intends to seek license 
 47.20  suspension under this subdivision and that the license holder 
 47.21  must request a hearing within 30 days in order to contest the 
 47.22  suspension.  If the license holder makes a written request for a 
 47.23  hearing within 30 days of the date of the notice, either a court 
 47.24  hearing or a contested administrative proceeding must be held 
 47.25  under section 518.5511, subdivision 4.  Notwithstanding any law 
 47.26  to the contrary, the license holder must be served with 14 days' 
 47.27  notice in writing specifying the time and place of the hearing 
 47.28  and the allegations against the license holder.  The notice may 
 47.29  be served personally or by mail.  If the public authority does 
 47.30  not receive a request for a hearing within 30 days of the date 
 47.31  of the notice, and the obligor does not execute a written 
 47.32  payment agreement regarding both current support and arrearages 
 47.33  approved by the court, an administrative law judge or the public 
 47.34  authority within 90 days of the date of the notice, the public 
 47.35  authority shall direct the licensing board or other licensing 
 47.36  agency to suspend the obligor's license under paragraph (b), or 
 48.1   shall report the matter to the lawyers professional 
 48.2   responsibility board. 
 48.3      (d) The administrative law judge, on behalf of the public 
 48.4   authority, or the court shall notify the lawyers professional 
 48.5   responsibility board for appropriate action in accordance with 
 48.6   the rules of professional responsibility conduct or order the 
 48.7   licensing board or licensing agency to suspend the license if 
 48.8   the judge finds that: 
 48.9      (1) the person is licensed by a licensing board or other 
 48.10  state agency that issues an occupational license; 
 48.11     (2) the person has not made full payment of arrearages 
 48.12  found to be due by the public authority; and 
 48.13     (3) the person has not executed or is not in compliance 
 48.14  with a payment plan approved by the court, an administrative law 
 48.15  judge, or the public authority. 
 48.16     (e) Within 15 days of the date on which the obligor either 
 48.17  makes full payment of arrearages found to be due by the court or 
 48.18  public authority or executes and initiates good faith compliance 
 48.19  with a written payment plan approved by the court, an 
 48.20  administrative law judge, or the public authority, the court, an 
 48.21  administrative law judge, or the public authority responsible 
 48.22  for child support enforcement shall notify the licensing board 
 48.23  or licensing agency or the lawyers professional responsibility 
 48.24  board that the obligor is no longer ineligible for license 
 48.25  issuance, reinstatement, or renewal under this subdivision. 
 48.26     (f) In addition to the criteria established under this 
 48.27  section for the suspension of an obligor's occupational license, 
 48.28  a court, an administrative law judge, or the public authority 
 48.29  may direct the licensing board or other licensing agency to 
 48.30  suspend the license of a party who has failed, after receiving 
 48.31  notice, to comply with a subpoena relating to a paternity or 
 48.32  child support proceeding. 
 48.33     (g) The license of an obligor who fails to remain in 
 48.34  compliance with an approved payment agreement may be suspended.  
 48.35  Notice to the obligor of an intent to suspend under this 
 48.36  paragraph must be served by first class mail at the obligor's 
 49.1   last known address and must include a notice of hearing.  The 
 49.2   notice must be served upon the obligor not less than ten days 
 49.3   before the date of the hearing.  If the obligor appears at the 
 49.4   hearing and the judge determines that the obligor has failed to 
 49.5   comply with an approved payment agreement, the judge shall 
 49.6   notify the occupational licensing board or agency to suspend the 
 49.7   obligor's license under paragraph (c).  If the obligor fails to 
 49.8   appear at the hearing, the public authority may notify the 
 49.9   occupational or licensing board to suspend the obligor's license 
 49.10  under paragraph (c). 
 49.11     Sec. 47.  Minnesota Statutes 1996, section 518.551, 
 49.12  subdivision 13, is amended to read: 
 49.13     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
 49.14  of an obligee, which has been properly served on the obligor and 
 49.15  upon which there has been an opportunity for hearing, if a court 
 49.16  finds that the obligor has been or may be issued a driver's 
 49.17  license by the commissioner of public safety and the obligor is 
 49.18  in arrears in court-ordered child support or maintenance 
 49.19  payments, or both, in an amount equal to or greater than three 
 49.20  times the obligor's total monthly support and maintenance 
 49.21  payments and is not in compliance with a written payment 
 49.22  agreement regarding both current support and arrearages approved 
 49.23  by the court, an administrative law judge, or the public 
 49.24  authority, the court shall order the commissioner of public 
 49.25  safety to suspend the obligor's driver's license.  The court's 
 49.26  order must be stayed for 90 days in order to allow the obligor 
 49.27  to execute a written payment agreement regarding both current 
 49.28  support and arrearages, which payment agreement must be approved 
 49.29  by either the court or the public authority responsible for 
 49.30  child support enforcement.  If the obligor has not executed or 
 49.31  is not in compliance with a written payment agreement regarding 
 49.32  both current support and arrearages after the 90 days expires, 
 49.33  the court's order becomes effective and the commissioner of 
 49.34  public safety shall suspend the obligor's driver's license.  The 
 49.35  remedy under this subdivision is in addition to any other 
 49.36  enforcement remedy available to the court.  An obligee may not 
 50.1   bring a motion under this paragraph within 12 months of a denial 
 50.2   of a previous motion under this paragraph. 
 50.3      (b) If a public authority responsible for child support 
 50.4   enforcement determines that the obligor has been or may be 
 50.5   issued a driver's license by the commissioner of public safety 
 50.6   and the obligor is in arrears in court-ordered child support or 
 50.7   maintenance payments or both in an amount equal to or greater 
 50.8   than three times the obligor's total monthly support and 
 50.9   maintenance payments and not in compliance with a written 
 50.10  payment agreement regarding both current support and arrearages 
 50.11  approved by the court, an administrative law judge, or the 
 50.12  public authority, the public authority shall direct the 
 50.13  commissioner of public safety to suspend the obligor's driver's 
 50.14  license.  The remedy under this subdivision is in addition to 
 50.15  any other enforcement remedy available to the public authority. 
 50.16     (c) At least 90 days prior to notifying the commissioner of 
 50.17  public safety pursuant according to paragraph (b), the public 
 50.18  authority must mail a written notice to the obligor at the 
 50.19  obligor's last known address, that it intends to seek suspension 
 50.20  of the obligor's driver's license and that the obligor must 
 50.21  request a hearing within 30 days in order to contest the 
 50.22  suspension.  If the obligor makes a written request for a 
 50.23  hearing within 30 days of the date of the notice, either a court 
 50.24  hearing or a contested administrative proceeding must be held 
 50.25  under section 518.5511, subdivision 4.  Notwithstanding any law 
 50.26  to the contrary, the obligor must be served with 14 days' notice 
 50.27  in writing specifying the time and place of the hearing and the 
 50.28  allegations against the obligor.  The notice may be served 
 50.29  personally or by mail.  If the public authority does not receive 
 50.30  a request for a hearing within 30 days of the date of the 
 50.31  notice, and the obligor does not execute a written payment 
 50.32  agreement regarding both current support and arrearages approved 
 50.33  by the court, an administrative law judge, or the public 
 50.34  authority within 90 days of the date of the notice, the public 
 50.35  authority shall direct the commissioner of public safety to 
 50.36  suspend the obligor's driver's license under paragraph (b). 
 51.1      (d) At a hearing requested by the obligor under paragraph 
 51.2   (c), and on finding that the obligor is in arrears in 
 51.3   court-ordered child support or maintenance payments or both in 
 51.4   an amount equal to or greater than three times the obligor's 
 51.5   total monthly support and maintenance payments, the district 
 51.6   court or the administrative law judge shall order the 
 51.7   commissioner of public safety to suspend the obligor's driver's 
 51.8   license or operating privileges unless the court or 
 51.9   administrative law judge determines that the obligor has 
 51.10  executed and is in compliance with a written payment agreement 
 51.11  regarding both current support and arrearages approved by the 
 51.12  court, an administrative law judge, or the public authority. 
 51.13     (e) An obligor whose driver's license or operating 
 51.14  privileges are suspended may provide proof to the court or the 
 51.15  public authority responsible for child support enforcement that 
 51.16  the obligor is in compliance with all written payment agreements 
 51.17  regarding both current support and arrearages.  Within 15 days 
 51.18  of the receipt of that proof, the court or public authority 
 51.19  shall inform the commissioner of public safety that the 
 51.20  obligor's driver's license or operating privileges should no 
 51.21  longer be suspended. 
 51.22     (f) On January 15, 1997, and every two years after that, 
 51.23  the commissioner of human services shall submit a report to the 
 51.24  legislature that identifies the following information relevant 
 51.25  to the implementation of this section: 
 51.26     (1) the number of child support obligors notified of an 
 51.27  intent to suspend a driver's license; 
 51.28     (2) the amount collected in payments from the child support 
 51.29  obligors notified of an intent to suspend a driver's license; 
 51.30     (3) the number of cases paid in full and payment agreements 
 51.31  executed in response to notification of an intent to suspend a 
 51.32  driver's license; 
 51.33     (4) the number of cases in which there has been 
 51.34  notification and no payments or payment agreements; 
 51.35     (5) the number of driver's licenses suspended; and 
 51.36     (6) the cost of implementation and operation of the 
 52.1   requirements of this section. 
 52.2      (g) In addition to the criteria established under this 
 52.3   section for the suspension of an obligor's driver's license, a 
 52.4   court, an administrative law judge, or the public authority may 
 52.5   direct the commissioner of public safety to suspend the license 
 52.6   of a party who has failed, after receiving notice, to comply 
 52.7   with a subpoena relating to a paternity or child support 
 52.8   proceeding.  Notice to an obligor of intent to suspend must be 
 52.9   served by first class mail at the obligor's last known address.  
 52.10  The notice must inform the obligor of the right to request a 
 52.11  hearing.  If the obligor makes a written request within ten days 
 52.12  of the date of the hearing, a contested administrative 
 52.13  proceeding must be held under section 518.5511, subdivision 4.  
 52.14  At the hearing, the only issues to be considered are mistake of 
 52.15  fact and whether the obligor received the subpoena. 
 52.16     (h) The license of an obligor who fails to remain in 
 52.17  compliance with an approved payment agreement may be suspended.  
 52.18  Notice to the obligor of an intent to suspend under this 
 52.19  paragraph must be served by first class mail at the obligor's 
 52.20  last known address and must include a notice of hearing.  The 
 52.21  notice must be served upon the obligor not less than ten days 
 52.22  before the date of the hearing.  If the obligor appears at the 
 52.23  hearing and the judge determines that the obligor has failed to 
 52.24  comply with an approved payment agreement, the judge shall 
 52.25  notify the department of public safety to suspend the obligor's 
 52.26  license under paragraph (c).  If the obligor fails to appear at 
 52.27  the hearing, the public authority may notify the department of 
 52.28  public safety to suspend the obligor's license under paragraph 
 52.29  (c). 
 52.30     Sec. 48.  Minnesota Statutes 1996, section 518.551, is 
 52.31  amended by adding a subdivision to read: 
 52.32     Subd. 13a.  [DATA ON SUSPENSIONS FOR SUPPORT 
 52.33  ARREARS.] Notwithstanding section 13.03, subdivision 4, 
 52.34  paragraph (c), data on an occupational license suspension under 
 52.35  subdivision 12 or a driver license suspension under subdivision 
 52.36  13 that are transferred by the department of human services to 
 53.1   respectively the department of public safety or any state, 
 53.2   county or municipal occupational licensing agency must have the 
 53.3   same classification at the department of public safety or other 
 53.4   receiving agency under section 13.02 as other license suspension 
 53.5   data held by the receiving agency.  The transfer of the data 
 53.6   does not affect the classification of the data in the hands of 
 53.7   the department of human services. 
 53.8      Sec. 49.  Minnesota Statutes 1996, section 518.5511, 
 53.9   subdivision 1, is amended to read: 
 53.10     Subdivision 1.  [GENERAL.] (a) An administrative process is 
 53.11  established to obtain, modify, and enforce child and medical 
 53.12  support orders and parentage orders and modify enforce 
 53.13  maintenance if combined with a child support proceeding.  All 
 53.14  laws governing these actions apply insofar as they are not 
 53.15  inconsistent with the provisions of this section and section 
 53.16  518.5512.  Wherever other laws or rules are inconsistent with 
 53.17  this section and section 518.5512, the provisions in this 
 53.18  section and section 518.5512 shall apply. 
 53.19     (b) All proceedings for obtaining, modifying, or enforcing 
 53.20  child and medical support orders and modifying enforcing 
 53.21  maintenance orders if combined with a child support proceeding, 
 53.22  are required to be conducted in the administrative process when 
 53.23  the public authority is a party or provides services to a party 
 53.24  or parties to the proceedings.  Cases in which there is no 
 53.25  assignment of support or in which the public authority is not 
 53.26  providing services may not be conducted in the administrative 
 53.27  process.  At county option, the administrative process may 
 53.28  include contempt motions or actions to establish parentage.  
 53.29  Nothing contained herein shall prevent a party, upon timely 
 53.30  notice to the public authority, from commencing an action or 
 53.31  bringing a motion for the establishment, modification, or 
 53.32  enforcement of child support or modification enforcement of 
 53.33  maintenance orders if combined with a child support proceeding 
 53.34  in district court, if additional issues involving domestic 
 53.35  abuse, establishment or modification of custody or visitation, 
 53.36  property issues, or other issues outside the jurisdiction of the 
 54.1   administrative process, are part of the motion or action, or 
 54.2   from proceeding with a motion or action brought by another party 
 54.3   containing one or more of these issues if it is pending in 
 54.4   district court. 
 54.5      (c) A party may make a written request to the public 
 54.6   authority to initiate an uncontested administrative proceeding.  
 54.7   If the public authority denies the request, the public authority 
 54.8   shall issue a summary notice of denial within 30 days of the 
 54.9   request which denies the request for relief within 30 days of 
 54.10  receiving the written request, states the reasons for the 
 54.11  denial, and notifies the party of the right to commence an 
 54.12  action for relief proceed directly to a contested administrative 
 54.13  proceeding according to subdivision 3a, paragraph (a).  If the 
 54.14  party commences an action or serves and files a motion proceeds 
 54.15  directly to a contested hearing and files the requisite 
 54.16  documents, as provided by the commissioner, with the court 
 54.17  administrator within 30 days after the public authority's denial 
 54.18  and the party's action results in a modification of a child 
 54.19  support order, the modification may be retroactive to the date 
 54.20  the written request was received by the public authority.  If 
 54.21  the public authority accepts the request and proceeds with the 
 54.22  uncontested administrative process, any order or modification 
 54.23  may be retroactive to the date the written request was received 
 54.24  by the public authority. 
 54.25     (d) After August 1, 1994, all counties shall participate in 
 54.26  the administrative process established in this section in 
 54.27  accordance with a statewide implementation plan to be set forth 
 54.28  by the commissioner of human services.  No county shall be 
 54.29  required to participate in the administrative process until 
 54.30  after the county has been trained.  The implementation plan 
 54.31  shall include provisions for training the counties by region no 
 54.32  later than July 1, 1995.  The public authority may initiate 
 54.33  actions in the administrative process.  
 54.34     (e) For the purpose of the administrative process, all 
 54.35  powers, duties, and responsibilities conferred on judges of 
 54.36  district court to obtain and enforce child and medical support 
 55.1   and parentage and maintenance obligations, subject to the 
 55.2   limitations of this section are conferred on administrative law 
 55.3   judges, including the power to determine controlling interstate 
 55.4   orders, and to issue subpoenas, orders to show cause, and bench 
 55.5   warrants for failure to appear. 
 55.6      The administrative law judge has the authority to enter 
 55.7   parentage orders in which the custody and visitation provisions 
 55.8   are uncontested. 
 55.9      (f) Nonattorney employees of the public authority 
 55.10  responsible for child support may prepare, sign, serve, and file 
 55.11  notices, summary notices, proposed orders, default orders, 
 55.12  consent orders, orders for blood or genetic tests, and other 
 55.13  documents related to the administrative process for obtaining, 
 55.14  modifying, or enforcing child and medical support orders, orders 
 55.15  establishing paternity, and related documents, and orders to 
 55.16  enforce maintenance if combined with a child support order.  The 
 55.17  nonattorney employee may issue administrative subpoenas, conduct 
 55.18  prehearing conferences, and participate in proceedings before an 
 55.19  administrative law judge.  This activity is not considered the 
 55.20  unauthorized practice of law.  Nonattorney employees may not 
 55.21  represent the interests of any party other than the public 
 55.22  authority, and may not give legal advice.  The nonattorney 
 55.23  employees may act subject to the limitations of section 
 55.24  518.5512.  In performing their duties under this paragraph, the 
 55.25  nonattorney employees shall consult with the county attorney and 
 55.26  act consistently with the county attorney's legal advice but 
 55.27  they are not under the direction or control of the county 
 55.28  attorney. 
 55.29     (g) After the commencement of the administrative process, 
 55.30  any party may make a written request to the office of 
 55.31  administrative hearings for a subpoena compelling the attendance 
 55.32  of a witness or the production of books, papers, records, or 
 55.33  other documents relevant to the administrative process.  
 55.34  Subpoenas shall be enforceable through the district court.  The 
 55.35  public authority may also request a subpoena from the office of 
 55.36  administrative hearings for the production of a witness or 
 56.1   documents.  The nonattorney employee of the public authority may 
 56.2   issue subpoenas subject to the limitations in section 518.5512, 
 56.3   subdivision 6, paragraph (a), clause (2).  
 56.4      (h) At all stages of the administrative process, the county 
 56.5   attorney, or other attorney under contract, shall act as the 
 56.6   legal adviser for the public authority. 
 56.7      (i) The commissioner of human services shall:  
 56.8      (1) provide training to child support officers and other 
 56.9   persons involved in the administrative process; 
 56.10     (2) timely prepare simple and easy to understand forms, in 
 56.11  consultation with the office of administrative hearings, for all 
 56.12  notices and orders prescribed in this section, including a 
 56.13  support order worksheet form, with the exception of orders 
 56.14  issued by the district court or the office of administrative 
 56.15  hearings under subdivision 4; and 
 56.16     (3) distribute money to cover the costs of the 
 56.17  administrative process, including the salaries of administrative 
 56.18  law judges.  If available appropriations are insufficient to 
 56.19  cover the costs, the commissioner shall prorate the amount among 
 56.20  the counties. 
 56.21     (j) The commissioner of human services, in consultation 
 56.22  with the office of administrative hearings, is responsible for 
 56.23  the supervision of the administrative process.  
 56.24     (k) The public authority, the office of administrative 
 56.25  hearings, court administrators, and other entities involved in 
 56.26  the administrative process shall use the forms prepared by the 
 56.27  commissioner.  
 56.28     (l) The office of administrative hearings may reject orders 
 56.29  that have not been prepared using the commissioner's forms or on 
 56.30  forms that have not been approved by the commissioner. 
 56.31     (m) The office of administrative hearings is responsible 
 56.32  for training and monitoring the performance of administrative 
 56.33  law judges, maintaining records of proceedings, providing 
 56.34  transcripts upon request, and maintaining the integrity of the 
 56.35  district court file.  
 56.36     Sec. 50.  Minnesota Statutes 1996, section 518.5511, 
 57.1   subdivision 2, is amended to read: 
 57.2      Subd. 2.  [UNCONTESTED ADMINISTRATIVE PROCEEDING.] (a) A 
 57.3   party may petition the chief administrative law judge, the chief 
 57.4   district court judge, or the chief family court referee to 
 57.5   proceed immediately to a contested hearing upon good cause shown.
 57.6      (b) The public authority shall give the parties written 
 57.7   notice requesting the submission of information necessary for 
 57.8   the public authority to prepare a proposed order.  The written 
 57.9   notice shall be sent by first class mail to the parties' last 
 57.10  known addresses.  The written notice shall describe the 
 57.11  information requested, state the purpose of the request, state 
 57.12  the date by which the information must be postmarked or received 
 57.13  (which shall be at least 30 days from the date of the mailing of 
 57.14  the written notice), state that if the information is not 
 57.15  postmarked or received by that date, the public authority will 
 57.16  prepare a proposed order on the basis of the information 
 57.17  available, and identify the type of information which will be 
 57.18  considered.  
 57.19     (c) Following the submission of information or following 
 57.20  the date when the information was due the initiation of the 
 57.21  administrative process under subdivision 1, paragraph (c) or 
 57.22  (d), the public authority shall, on the basis of all information 
 57.23  available, complete and sign a proposed order and notice.  The 
 57.24  public authority shall attach a support order worksheet.  In 
 57.25  preparing the proposed order, the public authority will 
 57.26  establish child support in the highest amount permitted under 
 57.27  section 518.551, subdivision 5.  The proposed order shall 
 57.28  include written findings in accordance with section 518.551, 
 57.29  subdivision 5, clauses (i) and (j).  If the public authority has 
 57.30  incomplete or insufficient information upon which to prepare a 
 57.31  proposed order, the public authority shall use the default 
 57.32  standard established in section 518.551, subdivision 5b, 
 57.33  paragraph (d), to prepare the proposed order.  The notice shall 
 57.34  state that the proposed order will be entered as a final and 
 57.35  binding default order unless one of the parties requests a 
 57.36  conference under subdivision 3 contacts the public authority 
 58.1   regarding the proposed order within 21 30 days following the 
 58.2   date of service of the proposed order.  The method for 
 58.3   requesting the conference shall be stated in the notice.  The 
 58.4   notice and proposed order shall be served under the rules of 
 58.5   civil procedure on the noninitiating party and by first class 
 58.6   mail on the initiating party.  If the action was initiated by 
 58.7   the public authority, the notice and proposed order shall be 
 58.8   served under the rules of civil procedure.  After receipt of the 
 58.9   notice and proposed order, the court administrator shall file 
 58.10  the documents. 
 58.11     For the purposes of the contested hearing administrative 
 58.12  process, and notwithstanding any law or rule to the contrary, 
 58.13  the service of the proposed order pursuant to under this 
 58.14  paragraph shall be deemed to have commenced a proceeding and the 
 58.15  judge, including an administrative law judge or a referee, shall 
 58.16  have jurisdiction over the a contested hearing administrative 
 58.17  proceeding.  
 58.18     (d) (b) If a conference under subdivision 3 is not 
 58.19  requested the public authority is not contacted by a party 
 58.20  within 21 30 days after the date of service of the proposed 
 58.21  order, the public authority may submit the proposed order as the 
 58.22  default order.  The default order becomes enforceable upon 
 58.23  signature by an administrative law judge, district court judge, 
 58.24  or referee.  The public authority may also prepare and serve a 
 58.25  new notice and proposed order if new information is subsequently 
 58.26  obtained.  The default order shall be a final order, and shall 
 58.27  be served under the rules of civil procedure. 
 58.28     (c) If the public authority obtains new information after 
 58.29  service of the proposed order, the public authority may prepare 
 58.30  one notice and revised proposed order.  The revised order must 
 58.31  be served by first class mail on the parties.  If the public 
 58.32  authority is not contacted within seven days after the date of 
 58.33  service of the revised order, the public authority may submit 
 58.34  the revised order as a default order but in no event sooner than 
 58.35  30 days after the service of the original proposed order. 
 58.36     (e) (d) The public authority shall file in the district 
 59.1   court copies of all notices served on the parties, proof of 
 59.2   service, the support order worksheet, and all orders.  
 59.3      Sec. 51.  Minnesota Statutes 1996, section 518.5511, 
 59.4   subdivision 3, is amended to read: 
 59.5      Subd. 3.  [ADMINISTRATIVE CONFERENCE.] (a) If a party 
 59.6   requests a conference contacts the public authority within 21 30 
 59.7   days of the date of service of the proposed order, and the 
 59.8   public authority does not choose to proceed directly to a 
 59.9   contested administrative proceeding, the public authority shall 
 59.10  schedule a conference, and shall serve written notice of the 
 59.11  date, time, and place of the conference and the date, time, and 
 59.12  place of a contested administrative proceeding in the event the 
 59.13  administrative conference fails to resolve all of the issues on 
 59.14  the parties.  The public authority may request any additional 
 59.15  information necessary to establish child support.  The public 
 59.16  authority may choose to go directly to a contested 
 59.17  administrative proceeding and is not required to conduct an 
 59.18  administrative conference.  The date of the contested 
 59.19  administrative proceeding must be set within 31 days of the 
 59.20  administrative conference or not more than 60 days from the date 
 59.21  of the notice of the administrative conference.  
 59.22     (b) The purpose of the conference is to review all 
 59.23  available information and seek an agreement to enter a consent 
 59.24  order.  The notice shall state the purpose of the conference, 
 59.25  and that the proposed order will be entered as a final and 
 59.26  binding default order if the requesting party fails both parties 
 59.27  fail to appear at the conference.  The notice must also state 
 59.28  that if only one party appears at the conference and agrees with 
 59.29  the proposed order and there is no new information provided, the 
 59.30  matter will proceed by default.  The notice shall be served on 
 59.31  the parties by first class mail at their last known addresses, 
 59.32  and the method of service shall be documented in the public 
 59.33  authority file.  All available and relevant information must be 
 59.34  shared with the parties at the conference, subject to the 
 59.35  limitations of sections 256.87, subdivision 8, 257.70, and 
 59.36  518.005, subdivision 5.  If a conference is not held, 
 60.1   information that would have been shared at the conference by the 
 60.2   public authority must be provided to a party or the party's 
 60.3   attorney within 15 days of receipt of a written request. 
 60.4      (c) A party alleging domestic abuse by the other party 
 60.5   shall not be required to participate in a conference.  In such a 
 60.6   case, the public authority shall meet separately with the 
 60.7   parties in order to determine whether an agreement can be 
 60.8   reached. 
 60.9      (d) If all parties appear at the conference and agree to 
 60.10  all issues, and the public authority approves the agreement, the 
 60.11  public authority shall prepare a consent order for the parties 
 60.12  and the public authority to sign.  The public authority shall 
 60.13  submit the consent order to the administrative law judge.  Upon 
 60.14  signature, the order is a final order and must be served on the 
 60.15  parties by first class mail.  
 60.16     (d) If the party requesting the conference does not appear 
 60.17  and fails to provide a written excuse (with supporting 
 60.18  documentation if relevant) to the public authority within seven 
 60.19  days after the date of the conference which constitutes good 
 60.20  cause (e) If only one party appears at the conference and agrees 
 60.21  with the proposed order and there is no new information 
 60.22  available, or if both of the parties fail to appear at the 
 60.23  conference and there is no new information available, the public 
 60.24  authority may enter shall submit a default order through the 
 60.25  uncontested administrative process.  The public authority shall 
 60.26  not enter the default order until at least seven days after the 
 60.27  date of the conference.  
 60.28     For purposes of this section, misrepresentation, excusable 
 60.29  neglect, or circumstances beyond the control of the person who 
 60.30  requested the conference which prevented the person's appearance 
 60.31  at the conference constitutes good cause for failure to appear.  
 60.32  If the public authority finds good cause, the conference shall 
 60.33  be rescheduled by the public authority and the public authority 
 60.34  shall send notice as required under this subdivision.  
 60.35     (e) (f) If the parties appear at the conference, the public 
 60.36  authority shall seek and do not reach agreement of the parties 
 61.1   to the entry of a consent order which establishes child support 
 61.2   in accordance with applicable law., the public authority shall 
 61.3   advise the parties that if a consent order is not entered, the 
 61.4   matter will be remains scheduled for a hearing before an 
 61.5   administrative law judge, or a district court judge or 
 61.6   referee contested administrative proceeding, and that the public 
 61.7   authority will seek the establishment of child support at 
 61.8   the hearing proceeding in accordance with the highest amount 
 61.9   permitted under section 518.551, subdivision 5.  If an agreement 
 61.10  to enter the consent order is not reached at the conference, the 
 61.11  public authority shall schedule the matter for a contested 
 61.12  hearing or 5b. 
 61.13     (f) If an agreement is reached by the parties at the 
 61.14  conference, a consent order shall be prepared by the public 
 61.15  authority, and shall be signed by the parties.  All consent and 
 61.16  default orders shall be signed by the nonattorney employee of 
 61.17  the public authority and shall be submitted to an administrative 
 61.18  law judge or the district court for approval and signature.  The 
 61.19  order is enforceable upon the signature by the administrative 
 61.20  law judge or the district court.  The consent order shall be 
 61.21  served on the parties under the rules of civil procedure. 
 61.22     (g) If one or both of the parties appear at the 
 61.23  administrative conference and there is new information that 
 61.24  makes the proposed order unreasonable or inappropriate, the 
 61.25  public authority may issue a revised proposed order or proceed 
 61.26  directly to a contested administrative proceeding. 
 61.27     Sec. 52.  Minnesota Statutes 1996, section 518.5511, is 
 61.28  amended by adding a subdivision to read: 
 61.29     Subd. 3a.  [ALTERNATIVE ADMINISTRATIVE RESOLUTIONS.] (a)(1) 
 61.30  Any party may proceed directly to a contested administrative 
 61.31  proceeding under subdivision 4 by making a written request to 
 61.32  the public authority.  After the public authority receives a 
 61.33  written request, the public authority shall request or schedule 
 61.34  a contested administrative proceeding and inform the requester 
 61.35  of the date, time, and place of the hearing.  The public 
 61.36  authority shall also provide the requester with the contested 
 62.1   administrative documents necessary for the proceeding.  These 
 62.2   documents must be completed by the requester, served on the 
 62.3   other party and the public authority and filed with the court 
 62.4   administrator at least 21 days before the hearing.  If the 
 62.5   documents are not filed with the court administrator, the 
 62.6   contested administrative proceeding shall be canceled. 
 62.7      (2) The public authority may also proceed directly to a 
 62.8   contested administrative proceeding.  
 62.9      (b) At any time in the administrative process, including 
 62.10  prior to the issuance of the proposed order, if the parties and 
 62.11  the public authority are in agreement, the public authority 
 62.12  shall prepare a consent order to be signed by the public 
 62.13  authority and the parties.  The parties must waive any of their 
 62.14  rights to the notices and time frames required by this section.  
 62.15  The public authority shall submit the order to the 
 62.16  administrative law judge.  Upon signature by the court, the 
 62.17  order is a final order and must be filed with the court 
 62.18  administrator and served by first class mail on the parties. 
 62.19     Sec. 53.  Minnesota Statutes 1996, section 518.5511, 
 62.20  subdivision 4, is amended to read: 
 62.21     Subd. 4.  [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) All 
 62.22  counties shall participate in the contested administrative 
 62.23  process established in this section as designated in a statewide 
 62.24  implementation plan to be set forth by the commissioner of human 
 62.25  services.  No county shall be required to participate in the 
 62.26  contested administrative process until after the county has been 
 62.27  trained.  The contested administrative process shall be in 
 62.28  operation in all counties no later than July 1, 1998, with the 
 62.29  exception of Hennepin county which shall have a pilot program in 
 62.30  operation no later than July 1, 1996.  
 62.31     The Hennepin county pilot program shall be jointly planned, 
 62.32  implemented, and evaluated by the department of human services, 
 62.33  the office of administrative hearings, the fourth judicial 
 62.34  district court, and Hennepin county.  The pilot program shall 
 62.35  provide that one-half of the case load use the contested 
 62.36  administrative process.  The pilot program shall include an 
 63.1   evaluation which shall be conducted after one year of program 
 63.2   operation.  A preliminary evaluation report shall be submitted 
 63.3   by the commissioner to the legislature by March 1, 1997.  A 
 63.4   final evaluation report shall be submitted by the commissioner 
 63.5   to the legislature by January 15, 1998.  The pilot program shall 
 63.6   continue pending final decision by the legislature, or until the 
 63.7   commissioner determines that the pilot program shall discontinue 
 63.8   and that Hennepin county shall not participate in the contested 
 63.9   administrative process. 
 63.10     In counties designated by the commissioner, contested 
 63.11  hearings administrative proceedings required under this section 
 63.12  shall be scheduled before administrative law judges, and shall 
 63.13  be conducted in accordance with the provisions under this 
 63.14  section.  In counties not designated by the commissioner, 
 63.15  contested hearings administrative proceedings shall be conducted 
 63.16  in district court in accordance with the rules of civil 
 63.17  procedure and the rules of family court.  
 63.18     (b) An administrative law judge may conduct hearings 
 63.19  administrative proceedings and approve a stipulation reached on 
 63.20  a contempt motion brought by the public authority.  Any 
 63.21  stipulation that involves a finding of contempt and a jail 
 63.22  sentence, whether stayed or imposed, shall require the review 
 63.23  and signature of a district court judge. 
 63.24     (c) A party, witness, or attorney may appear or testify by 
 63.25  telephone, audiovisual means, or other electronic means, at the 
 63.26  discretion of the administrative law judge. 
 63.27     (d) Before implementing the process in a county, the chief 
 63.28  administrative law judge, the commissioner of human services, 
 63.29  the director of the county human services agency, the county 
 63.30  attorney, the county court administrator, and the county sheriff 
 63.31  shall jointly establish procedures, and the county shall provide 
 63.32  hearing facilities for implementing this process in the county.  
 63.33  A contested administrative hearing proceeding shall be conducted 
 63.34  in a courtroom, if one is available, or a conference or meeting 
 63.35  room with at least two exits and of sufficient size to permit 
 63.36  adequate physical separation of the parties.  The court 
 64.1   administrator shall, to the extent practical, provide 
 64.2   administrative support for the contested hearing administrative 
 64.3   proceeding.  Security personnel shall either be present during 
 64.4   the administrative hearings proceedings, or be available to 
 64.5   respond to a request for emergency assistance.  
 64.6      (e) The contested administrative hearings shall be 
 64.7   conducted under the rules of the office of administrative 
 64.8   hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 
 64.9   to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 
 64.10  1400.7700, 1400.7800, and 1400.8100, as adopted by the chief 
 64.11  administrative law judge.  For matters not initiated under 
 64.12  subdivision 2, documents from the moving party shall be served 
 64.13  and filed at least 21 14 days prior to the hearing and the 
 64.14  opposing party shall serve and file documents raising new issues 
 64.15  at least ten days prior to the hearing.  In all contested 
 64.16  administrative proceedings, the administrative law judge may 
 64.17  limit the extent and timing of discovery.  Except as provided 
 64.18  under this section, other aspects of the case, including, but 
 64.19  not limited to, discovery, shall be conducted under the rules of 
 64.20  family court, the rules of civil procedure, and chapter 518.  
 64.21     (f) Pursuant to Following a contested administrative 
 64.22  hearing, the administrative law judge shall make findings of 
 64.23  fact, conclusions, and a final decision and issue an order.  
 64.24  Orders issued by an administrative law judge may be enforceable 
 64.25  by the contempt powers of the district courts.  
 64.26     (g) At the time the matter is scheduled for a contested 
 64.27  hearing administrative proceeding, the public authority shall 
 64.28  file in the district court copies of all relevant documents sent 
 64.29  to or received from the parties that have been provided to all 
 64.30  parties, in addition to the any documents filed under 
 64.31  subdivision 2, paragraph (e) (d).  These documents may be used 
 64.32  as evidence by the judge in deciding the case without need for 
 64.33  further foundation testimony.  For matters scheduled for a 
 64.34  contested hearing administrative proceeding which were not 
 64.35  initiated under subdivision 2, the public authority shall obtain 
 64.36  any income information available to the public authority through 
 65.1   the department of economic security and serve this information 
 65.2   on all parties and file the information with the court at least 
 65.3   five days prior to the hearing. 
 65.4      (h) When only one party appears at the contested 
 65.5   administrative proceeding, a hearing must be conducted.  The 
 65.6   administrative law judge shall prepare an order and file it with 
 65.7   the district court.  The court shall serve the order on the 
 65.8   parties by first class mail at the last known address and shall 
 65.9   provide a copy of the order to the public authority. 
 65.10     (i) If neither party appears at the contested 
 65.11  administrative proceeding and no new information has been 
 65.12  submitted or made available to the court or public authority, 
 65.13  the public authority shall submit the default order to the 
 65.14  administrative law judge, district court judge, or referee for 
 65.15  signature.  If neither party appears and new information is 
 65.16  available to the court or public authority, the administrative 
 65.17  law judge or district court judge shall prepare an order based 
 65.18  on the new information.  The court shall serve the order on the 
 65.19  parties by first class mail at the last known address and shall 
 65.20  provide a copy of the order to the public authority. 
 65.21     (j) The decision and order of the administrative law judge 
 65.22  is appealable to the court of appeals in the same manner as a 
 65.23  decision of the district court.  
 65.24     Sec. 54.  Minnesota Statutes 1996, section 518.5512, 
 65.25  subdivision 2, is amended to read: 
 65.26     Subd. 2.  [PATERNITY.] (a) After service of the notice and 
 65.27  proposed order, a nonattorney employee of the public authority 
 65.28  may request an administrative law judge or the district court to 
 65.29  order the child, mother, or alleged father to submit to blood or 
 65.30  genetic tests.  The order is effective when signed by an 
 65.31  administrative law judge or the district court.  Failure to 
 65.32  comply with the order for blood or genetic tests may result in a 
 65.33  default determination of parentage.  
 65.34     (b) If parentage is contested at the administrative hearing 
 65.35  proceeding, the administrative law judge may order temporary 
 65.36  child support under section 257.62, subdivision 5, and shall 
 66.1   refer the case to the district court.  The district court shall 
 66.2   have the authority to decide the case based on the 
 66.3   administrative process documents and shall not require the 
 66.4   issuance of any alternate pleadings. 
 66.5      (c) The district court may appoint counsel for an indigent 
 66.6   alleged father only after the return of the blood or genetic 
 66.7   test results from the testing laboratory. 
 66.8      Sec. 55.  Minnesota Statutes 1996, section 518.5512, 
 66.9   subdivision 3, is amended to read: 
 66.10     Subd. 3.  [COST-OF-LIVING ADJUSTMENT.] The notice of 
 66.11  application for adjustment shall be treated as a proposed order 
 66.12  under section 518.5511, subdivision 2, paragraph (c).  The 
 66.13  public authority shall send notice of its application for a 
 66.14  cost-of-living adjustment on the obligor in accord with section 
 66.15  518.641.  The public authority shall stay the adjustment of 
 66.16  support upon receipt by the public authority of a request for an 
 66.17  administrative conference by the obligor to proceed directly to 
 66.18  a contested administrative proceeding under section 518.5511, 
 66.19  subdivision 4.  An obligor requesting an administrative 
 66.20  conference shall provide all relevant information that 
 66.21  establishes an insufficient increase in income to justify the 
 66.22  adjustment of the support obligation.  If the obligor fails to 
 66.23  submit any evidence at the administrative conference, the 
 66.24  cost-of-living adjustment will immediately go into effect. 
 66.25     Sec. 56.  Minnesota Statutes 1996, section 518.5512, is 
 66.26  amended by adding a subdivision to read: 
 66.27     Subd. 3a.  [FORM.] The public authority shall prepare and 
 66.28  make available to the court and obligors a form, to be submitted 
 66.29  to the public authority by the obligor, to request to proceed 
 66.30  directly to a contested administrative proceeding regarding a 
 66.31  cost-of-living adjustment.  The rulemaking provisions of chapter 
 66.32  14 do not apply to the preparation of the form. 
 66.33     Sec. 57.  Minnesota Statutes 1996, section 518.5512, is 
 66.34  amended by adding a subdivision to read: 
 66.35     Subd. 6.  [ADMINISTRATIVE AUTHORITY.] (a) In each case in 
 66.36  which support rights are assigned under section 256.741, 
 67.1   subdivision 2, or where the public authority is providing 
 67.2   services under an application for child support services, a 
 67.3   nonattorney employee of the public authority may, without 
 67.4   requirement of a court order: 
 67.5      (1) recognize and enforce orders of child support agencies 
 67.6   of other states; 
 67.7      (2) compel by subpoena the production of all papers, books, 
 67.8   records, documents, or other evidentiary material needed to 
 67.9   establish a parentage or child support order or to modify or 
 67.10  enforce a child support order; 
 67.11     (3) change the payee to the appropriate person, 
 67.12  organization, or agency authorized to receive or collect child 
 67.13  support or any other person or agency designated as the 
 67.14  caretaker of the child by agreement of the legal custodian or by 
 67.15  court order; 
 67.16     (4) order income withholding of child support under section 
 67.17  518.6111; 
 67.18     (5) secure assets to satisfy the debt or arrearage in cases 
 67.19  in which there is a support debt or arrearage by:  (i) 
 67.20  intercepting or seizing periodic or lump sum payments from state 
 67.21  or local agencies, including reemployment insurance, workers' 
 67.22  compensation payments, judgments, settlements, and lotteries; 
 67.23  (ii) attaching and seizing assets of the obligor held in 
 67.24  financial institutions or public or private retirement funds; 
 67.25  and (iii) imposing liens and, in appropriate cases, forcing the 
 67.26  sale of property and the distribution of proceeds; and 
 67.27     (6) increase the amount of the monthly support payments to 
 67.28  include amounts for debts or arrearages for the purpose of 
 67.29  securing overdue support.  
 67.30     In performing their duties under this paragraph, the 
 67.31  nonattorney employees shall consult with the county attorney and 
 67.32  act consistently with the county attorney's legal advice but 
 67.33  they are not under the direction or control of the county 
 67.34  attorney. 
 67.35     (b) Subpoenas may be served anywhere within the state and 
 67.36  served outside the state in the same manner as prescribed by law 
 68.1   for service of process of subpoenas issued by the district court 
 68.2   of this state.  When a subpoena under this subdivision is served 
 68.3   on a third-party recordkeeper, written notice of the subpoena 
 68.4   shall be mailed to the person who is the subject of the 
 68.5   subpoenaed material at the person's last known address within 
 68.6   three days of the day the subpoena is served.  This notice 
 68.7   provision does not apply if there is reasonable cause to believe 
 68.8   the giving of the notice may lead to interference with the 
 68.9   production of the subpoenaed documents. 
 68.10     (c) A person served with a subpoena may make a written 
 68.11  objection to the public authority or court before the time 
 68.12  specified in the subpoena for compliance.  The public authority 
 68.13  or the court shall cancel or modify the subpoena, if 
 68.14  appropriate.  The public authority shall pay the reasonable 
 68.15  costs of producing the documents, if requested. 
 68.16     (d) Subpoenas shall be enforceable in the same manner as 
 68.17  subpoenas of the district court, in proceedings initiated by 
 68.18  complaint of the public authority in the district court. 
 68.19     Sec. 58.  Minnesota Statutes 1996, section 518.5512, is 
 68.20  amended by adding a subdivision to read: 
 68.21     Subd. 7.  [CONTROLLING ORDER DETERMINATION.] The public 
 68.22  authority or a party may request the office of administrative 
 68.23  hearings to determine a controlling order according to section 
 68.24  518C.207, paragraph (c). 
 68.25     Sec. 59.  Minnesota Statutes 1996, section 518.575, is 
 68.26  amended to read: 
 68.27     518.575 [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT 
 68.28  OBLIGORS.] 
 68.29     Subdivision 1.  [PUBLICATION OF MAKING NAMES PUBLIC.] Twice 
 68.30  each year, At least once each year, the commissioner of human 
 68.31  services, in consultation with the attorney general, shall 
 68.32  publish a list of the names and last known addresses of each 
 68.33  person and other identifying information of no more than 25 
 68.34  persons who (1) is a are child support obligor obligors, 
 68.35  (2) is are at least $3,000 $10,000 in arrears, and (3) is 
 68.36  not in compliance with a written payment agreement regarding 
 69.1   both current support and arrearages approved by the court, an 
 69.2   administrative law judge, or the public authority.  The 
 69.3   commissioner of human services shall publish the name of each 
 69.4   obligor in the newspaper or newspapers of widest circulation in 
 69.5   the area where the obligor is most likely to be residing.  For 
 69.6   each publication, the commissioner shall release the list of all 
 69.7   names being published not earlier than the first day on which 
 69.8   names appear in any newspaper.  An obligor's name may not be 
 69.9   published if the obligor claims in writing, and the commissioner 
 69.10  of human services determines, there is good cause for the 
 69.11  nonpayment of child support.  Good cause includes the 
 69.12  following:  (i) there is a mistake in the obligor's identity or 
 69.13  the amount of the obligor's arrears; (ii) arrears are reserved 
 69.14  by the court or there is a pending legal action concerning the 
 69.15  unpaid child support; or (iii) other circumstances as determined 
 69.16  by the commissioner.  The list must be based on the best 
 69.17  information available to the state at the time of 
 69.18  publication are not in compliance with a written payment 
 69.19  agreement regarding both current support and arrearages approved 
 69.20  by the court, an administrative law judge, or the public 
 69.21  authority, (4) cannot currently be located by the public 
 69.22  authority for the purposes of enforcing a support order, and (5) 
 69.23  have not made a support payment except tax intercept payments, 
 69.24  in the preceding 12 months. 
 69.25     Identifying information may include the obligor's name, 
 69.26  last known address, amount owed, date of birth, photograph, the 
 69.27  number of children for whom support is owed, and any additional 
 69.28  information about the obligor that would assist in identifying 
 69.29  or locating the obligor.  The commissioner and attorney general 
 69.30  may use posters, media presentations, electronic technology, and 
 69.31  other means that the commissioner and attorney general determine 
 69.32  are appropriate for dissemination of the information, including 
 69.33  publication on the Internet.  The commissioner and attorney 
 69.34  general may make any or all of the identifying information 
 69.35  regarding these persons public.  Information regarding an 
 69.36  obligor who meets the criteria in this subdivision will only be 
 70.1   made public subsequent to that person's selection by the 
 70.2   commissioner and attorney general. 
 70.3      Before publishing making public the name of the obligor, 
 70.4   the department of human services shall send a notice to the 
 70.5   obligor's last known address which states the department's 
 70.6   intention to publish the obligor's name and the amount of child 
 70.7   support the obligor owes make public information on the 
 70.8   obligor.  The notice must also provide an opportunity to have 
 70.9   the obligor's name removed from the list by paying the arrearage 
 70.10  or by entering into an agreement to pay the arrearage, and or by 
 70.11  providing information to the public authority that there is good 
 70.12  cause not to make the information public.  The notice must 
 70.13  include the final date when the payment or agreement can be 
 70.14  accepted. 
 70.15     The department of human services shall insert with the 
 70.16  notices sent to the obligee, a notice stating the intent to 
 70.17  publish the obligor's name, and the criteria used to determine 
 70.18  the publication of the obligor's name obtain the written consent 
 70.19  of the obligee to make the name of the obligor public. 
 70.20     Subd. 2.  [NAMES PUBLISHED IN ERROR.] If the 
 70.21  commissioner publishes makes public a name under subdivision 1 
 70.22  which is in error, the commissioner must also offer to publish a 
 70.23  printed retraction and a public apology acknowledging that the 
 70.24  name was published made public in error.  If the person whose 
 70.25  name was made public in error elects the public retraction and 
 70.26  apology, the retraction and apology must appear in each 
 70.27  publication that included the same medium and the same format as 
 70.28  the original notice with the name listed in error, and it must 
 70.29  appear in the same type size and appear the same number of times 
 70.30  as the original notice.  In addition to the right of a public 
 70.31  retraction and apology, a person whose name was made public in 
 70.32  error has a civil action for damages caused by the error. 
 70.33     Sec. 60.  [518.6111] [INCOME WITHHOLDING.] 
 70.34     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
 70.35  section, the following terms have the meanings provided in this 
 70.36  subdivision unless otherwise stated. 
 71.1      (b) "Payor of funds" means any person or entity that 
 71.2   provides funds to an obligor, including an employer as defined 
 71.3   under chapter 24 of the Internal Revenue Code, section 3401(d), 
 71.4   an independent contractor, payor of worker's compensation 
 71.5   benefits or reemployment insurance, or a financial institution 
 71.6   as defined in section 13B.06. 
 71.7      (c) "Business day" means a day on which state offices are 
 71.8   open for regular business. 
 71.9      (d) "Arrears" means amounts owed under a support order that 
 71.10  are past due. 
 71.11     Subd. 2.  [APPLICATION.] This section applies to all 
 71.12  support orders issued by a court or an administrative tribunal 
 71.13  and orders for or notices of withholding issued by the public 
 71.14  authority according to section 518.5512, subdivision 6, 
 71.15  paragraph (a), clause (4). 
 71.16     Subd. 3.  [ORDER.] Every support order must address income 
 71.17  withholding.  Whenever a support order is initially entered or 
 71.18  modified, the full amount of the support order must be withheld 
 71.19  from the income of the obligor and forwarded to the public 
 71.20  authority.  Every order for support or maintenance shall provide 
 71.21  for a conspicuous notice of the provisions of this section that 
 71.22  complies with section 518.68, subdivision 2.  An order without 
 71.23  this notice remains subject to this section.  This section 
 71.24  applies regardless of the source of income of the person 
 71.25  obligated to pay the support or maintenance. 
 71.26     A payor of funds shall implement income withholding 
 71.27  according to this section upon receipt of an order for or notice 
 71.28  of withholding.  The notice of withholding shall be on a form 
 71.29  provided by the commissioner of human services. 
 71.30     Subd. 4.  [COLLECTION SERVICES.] The commissioner of human 
 71.31  services shall prepare and make available to the courts a notice 
 71.32  of services that explains child support and maintenance 
 71.33  collection services available through the public authority, 
 71.34  including income withholding.  Upon receiving a petition for 
 71.35  dissolution of marriage or legal separation, the court 
 71.36  administrator shall promptly send the notice of services to the 
 72.1   petitioner and respondent at the addresses stated in the 
 72.2   petition. 
 72.3      Upon receipt of a support order requiring income 
 72.4   withholding, a petitioner or respondent, who is not a recipient 
 72.5   of public assistance and does not receive child support services 
 72.6   from the public authority, shall apply to the public authority 
 72.7   for either full child support collection services or for income 
 72.8   withholding only services. 
 72.9      For those persons applying for income withholding only 
 72.10  services, a monthly service fee of $15 must be charged to the 
 72.11  obligor.  This fee is in addition to the amount of the support 
 72.12  order and shall be withheld through income withholding.  The 
 72.13  public authority shall explain the service options in this 
 72.14  section to the affected parties and encourage the application 
 72.15  for full child support collection services. 
 72.16     Subd. 5.  [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 
 72.17  for or notice of withholding is binding on a payor of funds upon 
 72.18  receipt.  Withholding must begin no later than the first pay 
 72.19  period that occurs after 14 days following the date of receipt 
 72.20  of the order for or notice of withholding.  In the case of a 
 72.21  financial institution, preauthorized transfers must occur in 
 72.22  accordance with a court-ordered payment schedule. 
 72.23     (b) A payor of funds shall withhold from the income payable 
 72.24  to the obligor the amount specified in the order or notice of 
 72.25  withholding and amounts specified under subdivisions 6 and 9 and 
 72.26  shall remit the amounts withheld to the public authority within 
 72.27  seven business days of the date the obligor is paid the 
 72.28  remainder of the income.  The payor of funds shall include with 
 72.29  the remittance the social security number of the obligor, the 
 72.30  case type indicator as provided by the public authority and the 
 72.31  date the obligor is paid the remainder of the income.  The 
 72.32  obligor is considered to have paid the amount withheld as of the 
 72.33  date the obligor received the remainder of the income.  A payor 
 72.34  of funds may combine all amounts withheld from one pay period 
 72.35  into one payment to each public authority, but shall separately 
 72.36  identify each obligor making payment. 
 73.1      (c) A payor of funds shall not discharge, or refuse to 
 73.2   hire, or otherwise discipline an employee as a result of wage or 
 73.3   salary withholding authorized by this section.  A payor of funds 
 73.4   shall be liable to the obligee for any amounts required to be 
 73.5   withheld.  A payor of funds that fails to withhold or transfer 
 73.6   funds in accordance with this section is also liable to the 
 73.7   obligee for interest on the funds at the rate applicable to 
 73.8   judgments under section 549.09, computed from the date the funds 
 73.9   were required to be withheld or transferred.  A payor of funds 
 73.10  is liable for reasonable attorney fees of the obligee or public 
 73.11  authority incurred in enforcing the liability under this 
 73.12  paragraph.  A payor of funds that has failed to comply with the 
 73.13  requirements of this section is subject to contempt sanctions 
 73.14  under section 518.615.  If the payor of funds is an employer or 
 73.15  independent contractor and violates this subdivision, a court 
 73.16  may award the obligor twice the wages lost as a result of this 
 73.17  violation.  If a court finds a payor of funds violated this 
 73.18  subdivision, the court shall impose a civil fine of not less 
 73.19  than $500. 
 73.20     (d) If a single employee is subject to multiple withholding 
 73.21  orders or multiple notices of withholding for the support of 
 73.22  more than one child, the payor of funds shall comply with all of 
 73.23  the orders or notices to the extent that the total amount 
 73.24  withheld from the obligor's income does not exceed the limits 
 73.25  imposed under the Consumer Credit Protection Act, Chapter 15 of 
 73.26  the United States Code section 1637(b), giving priority to 
 73.27  amounts designated in each order or notice as current support as 
 73.28  follows: 
 73.29     (1) if the total of the amounts designated in the orders 
 73.30  for or notices of withholding as current support exceeds the 
 73.31  amount available for income withholding, the payor of funds 
 73.32  shall allocate to each order or notice an amount for current 
 73.33  support equal to the amount designated in that order or notice 
 73.34  as current support, divided by the total of the amounts 
 73.35  designated in the orders or notices as current support, 
 73.36  multiplied by the amount of the income available for income 
 74.1   withholding; and 
 74.2      (2) if the total of the amounts designated in the orders 
 74.3   for or notices of withholding as current support does not exceed 
 74.4   the amount available for income withholding, the payor of funds 
 74.5   shall pay the amounts designated as current support, and shall 
 74.6   allocate to each order or notice an amount for past due support, 
 74.7   equal to the amount designated in that order or notice as past 
 74.8   due support, divided by the total of the amounts designated in 
 74.9   the orders or notices as past due support, multiplied by the 
 74.10  amount of income remaining available for income withholding 
 74.11  after the payment of current support. 
 74.12     (e) When an order for or notice of withholding is in effect 
 74.13  and the obligor's employment is terminated, the obligor and the 
 74.14  payor of funds shall notify the public authority of the 
 74.15  termination within ten days of the termination date.  The 
 74.16  termination notice shall include the obligor's home address and 
 74.17  the name and address of the obligor's new payor of funds, if 
 74.18  known. 
 74.19     (f) A payor of funds may deduct one dollar from the 
 74.20  obligor's remaining salary for each payment made pursuant to an 
 74.21  order for or notice of withholding under this section to cover 
 74.22  the expenses of withholding.  
 74.23     Subd. 6.  [FINANCIAL INSTITUTIONS.] (a) If income 
 74.24  withholding is ineffective due to the obligor's method of 
 74.25  obtaining income, the court shall order the obligor to identify 
 74.26  a child support deposit account owned solely by the obligor, or 
 74.27  to establish an account, in a financial institution located in 
 74.28  this state for the purpose of depositing court-ordered child 
 74.29  support payments.  The court shall order the obligor to execute 
 74.30  an agreement with the appropriate public authority for 
 74.31  preauthorized transfers from the obligor's child support account 
 74.32  payable to an account of the public authority.  The court shall 
 74.33  order the obligor to disclose to the court all deposit accounts 
 74.34  owned by the obligor in whole or in part in any financial 
 74.35  institution.  The court may order the obligor to disclose to the 
 74.36  court the opening or closing of any deposit account owned in 
 75.1   whole or in part by the obligor within 30 days of the opening or 
 75.2   closing.  The court may order the obligor to execute an 
 75.3   agreement with the appropriate public authority for 
 75.4   preauthorized transfers from any deposit account owned in whole 
 75.5   or in part by the obligor to the obligor's child support deposit 
 75.6   account if necessary to satisfy court-ordered child support 
 75.7   payments.  The court may order a financial institution to 
 75.8   disclose to the court the account number and any other 
 75.9   information regarding accounts owned in whole or in part by the 
 75.10  obligor.  An obligor who fails to comply with this subdivision, 
 75.11  fails to deposit funds in at least one deposit account 
 75.12  sufficient to pay court-ordered child support, or stops payment 
 75.13  or revokes authorization of any preauthorized transfer is 
 75.14  subject to contempt of court procedures under chapter 588. 
 75.15     (b) A financial institution shall execute preauthorized 
 75.16  transfers for the deposit accounts of the obligor in the amount 
 75.17  specified in the order and amounts required under this section 
 75.18  as directed by the public authority.  A financial institution is 
 75.19  liable to the obligee if funds in any of the obligor's deposit 
 75.20  accounts identified in the court order equal the amount stated 
 75.21  in the preauthorization agreement but are not transferred by the 
 75.22  financial institution in accordance with the agreement. 
 75.23     Subd. 7.  [SUBSEQUENT INCOME WITHHOLDING.] (a) This 
 75.24  subdivision applies to support orders that do not contain 
 75.25  provisions for income withholding. 
 75.26     (b) For cases in which the public authority is providing 
 75.27  child support enforcement services to the parties, the income 
 75.28  withholding under this subdivision shall take effect without 
 75.29  prior judicial notice to the obligor and without the need for 
 75.30  judicial or administrative hearing.  Withholding shall result 
 75.31  when: 
 75.32     (1) the obligor requests it in writing to the public 
 75.33  authority; 
 75.34     (2) the obligee or obligor serves on the public authority a 
 75.35  copy of the notice of income withholding, a copy of the court's 
 75.36  order, an application, and the fee to use the public authority's 
 76.1   collection services; or 
 76.2      (3) the public authority commences withholding according to 
 76.3   section 518.5512, subdivision 6, paragraph (a), clause (4).  
 76.4      (c) For cases in which the public authority is not 
 76.5   providing child support services to the parties, income 
 76.6   withholding under this subdivision shall take effect when an 
 76.7   obligee requests it by making a written motion to the court and 
 76.8   the court finds that previous support has not been paid on a 
 76.9   timely consistent basis or that the obligor has threatened 
 76.10  expressly or otherwise to stop or reduce payments; 
 76.11     (d) Within two days after the public authority commences 
 76.12  withholding under this subdivision, the public authority shall 
 76.13  send to the obligor at the obligor's last known address, notice 
 76.14  that withholding has commenced.  The notice shall include the 
 76.15  information provided to the payor of funds in the notice of 
 76.16  withholding. 
 76.17     Subd. 8.  [CONTEST.] (a) The obligor may contest 
 76.18  withholding under subdivision 7 on the limited grounds that the 
 76.19  withholding or the amount withheld is improper due to mistake of 
 76.20  fact.  If the obligor chooses to contest the withholding, the 
 76.21  obligor must do so no later than 15 days after the employer 
 76.22  commences withholding, by doing all of the following: 
 76.23     (1) file a request for contested hearing according to 
 76.24  section 518.5511, subdivision 4, and include in the request the 
 76.25  alleged mistake of fact; 
 76.26     (2) serve a copy of the request for contested hearing upon 
 76.27  the public authority and the obligee; and 
 76.28     (3) secure a date for the contested hearing no later than 
 76.29  45 days after receiving notice that withholding has commenced. 
 76.30     (b) The income withholding must remain in place while the 
 76.31  obligor contests the withholding. 
 76.32     (c) If the court finds a mistake in the amount of the 
 76.33  arrearage to be withheld, the court shall continue the income 
 76.34  withholding, but it shall correct the amount of the arrearage to 
 76.35  be withheld. 
 76.36     Subd. 9.  [PRIORITY.] (a) An order for or notice of 
 77.1   withholding under this section or execution or garnishment upon 
 77.2   a judgment for child support arrearage or preadjudicated 
 77.3   expenses shall have priority over an attachment, execution, 
 77.4   garnishment, or wage assignment and shall not be subject to the 
 77.5   statutory limitations on amounts levied against the income of 
 77.6   the obligor.  Amounts withheld from an employee's income must 
 77.7   not exceed the maximum permitted under the Consumer Credit 
 77.8   Protection Act, title 15 of the United States Code, section 
 77.9   1673(b). 
 77.10     (b) If more than one order for or notice of withholding 
 77.11  exists involving the same obligor and child, the public 
 77.12  authority shall enforce the most current order or notice.  An 
 77.13  order for or notice of withholding that was previously 
 77.14  implemented according to this section shall end as of the date 
 77.15  of the most current order.  The public authority shall notify 
 77.16  the payor of funds to withhold under the most current 
 77.17  withholding order or notice. 
 77.18     Subd. 10.  [ARREARAGE ORDER.] (a) This section does not 
 77.19  prevent the court from ordering the payor of funds to withhold 
 77.20  amounts to satisfy the obligor's previous arrearage in support 
 77.21  order payments.  This remedy shall not operate to exclude 
 77.22  availability of other remedies to enforce judgments.  The 
 77.23  employer or payor of funds shall withhold from the obligor's 
 77.24  income an additional amount equal to 20 percent of the monthly 
 77.25  child support or maintenance obligation until the arrearage is 
 77.26  paid.  
 77.27     (b) Notwithstanding any law to the contrary, funds from 
 77.28  income sources included in section 518.54, subdivision 6, 
 77.29  whether periodic or lump sum, are not exempt from attachment or 
 77.30  execution upon a judgment for child support arrearage. 
 77.31     (c) Absent an order to the contrary, if an arrearage exists 
 77.32  at the time a support order would otherwise terminate, income 
 77.33  withholding shall continue in effect or may be implemented in an 
 77.34  amount equal to the support order plus an additional 20 percent 
 77.35  of the monthly child support obligation, until all arrears have 
 77.36  been paid in full. 
 78.1      Subd. 11.  [LUMP-SUM PAYMENTS.] Before transmittal to the 
 78.2   obligor of a lump-sum payment of $500 or more including, but not 
 78.3   limited to, severance pay, accumulated sick pay, vacation pay, 
 78.4   bonuses, commissions, or other pay or benefits, a payor of funds:
 78.5      (1) who has been served with an order for or notice of 
 78.6   income withholding under this section shall: 
 78.7      (i) notify the public authority of the lump-sum payment 
 78.8   that is to be paid to the obligor; 
 78.9      (ii) hold the lump-sum payment for 30 days after the date 
 78.10  on which the lump-sum payment would otherwise have been paid to 
 78.11  the obligor, notwithstanding sections 176.221, 176.225, 176.521, 
 78.12  181.08, 181.101, 181.11, 181.13, and 181.145, and Minnesota 
 78.13  Rules, part 1415.2000, subpart 10; and 
 78.14     (iii) upon order of the court, and after a showing of past 
 78.15  willful nonpayment of support, pay any specified amount of the 
 78.16  lump-sum payment to the public authority for future support; or 
 78.17     (2) shall pay the lessor of the amount of the lump-sum 
 78.18  payment or the total amount of the judgment and arrearages upon 
 78.19  service by United States mail of a sworn affidavit from the 
 78.20  public authority or a court order that includes the following 
 78.21  information: 
 78.22     (i) that a judgment entered pursuant to section 548.091, 
 78.23  subdivision 1a, exists against the obligor, or that other 
 78.24  support arrearages exist; 
 78.25     (ii) the current balance of the judgment or arrearage; and 
 78.26     (iii) that a portion of the judgment or arrearage remains 
 78.27  unpaid. 
 78.28     The Consumer Credit Protection Act, title 15 of the United 
 78.29  States Code, section 1673(b), does not apply to lump-sum 
 78.30  payments. 
 78.31     Subd. 12.  [INTERSTATE INCOME WITHHOLDING.] (a) Upon 
 78.32  receipt of an order for support entered in another state and the 
 78.33  specified documentation from an authorized agency, the public 
 78.34  authority shall implement income withholding.  A payor of funds 
 78.35  in this state shall withhold income under court orders for 
 78.36  withholding issued by other states or territories. 
 79.1      (b) An employer receiving an income withholding notice from 
 79.2   another state shall withhold and distribute the funds as 
 79.3   directed in the withholding notice and shall apply the law of 
 79.4   the obligor's principal place of employment when determining: 
 79.5      (1) the employer's fee for processing an income withholding 
 79.6   notice; 
 79.7      (2) the maximum amount permitted to be withheld from the 
 79.8   obligor's income; and 
 79.9      (3) deadlines for implementing and forwarding the child 
 79.10  support payment. 
 79.11     (c) An obligor may contest withholding under this 
 79.12  subdivision pursuant to section 518C.506. 
 79.13     Subd. 13.  [ORDER TERMINATING INCOME WITHHOLDING.] (a) An 
 79.14  order terminating income withholding must specify the effective 
 79.15  date of the order and reference the initial order or decree that 
 79.16  establishes the support obligation and shall be entered once the 
 79.17  following conditions have been met: 
 79.18     (1) the obligor serves written notice of the application 
 79.19  for termination of income withholding by mail upon the obligee 
 79.20  at the obligee's last known mailing address, and a duplicate 
 79.21  copy of the application is served on the public authority; 
 79.22     (2) the application for termination of income withholding 
 79.23  specifies the event that terminates the support obligation, the 
 79.24  effective date of the termination of the support obligation, and 
 79.25  the applicable provisions of the order or decree that 
 79.26  established the support obligation; and 
 79.27     (3) the application includes the complete name of the 
 79.28  obligor's payor of funds, the business mailing address, the 
 79.29  court action and court file number, and the support and 
 79.30  collections file number, if known. 
 79.31     (b) After receipt of the application for termination of 
 79.32  income withholding, the obligee or the public authority fails 
 79.33  within 20 days to request a contested hearing on the issue of 
 79.34  whether income withholding of support should continue clearly 
 79.35  specifying the basis for the continued support obligation and, 
 79.36  ex parte, to stay the service of the order terminating income 
 80.1   withholding upon the obligor's payor of funds, pending the 
 80.2   outcome of the contest hearing. 
 80.3      Subd. 14.  [TERMINATION BY THE PUBLIC AUTHORITY.] If the 
 80.4   public authority determines that income withholding is no longer 
 80.5   applicable, the public authority shall notify the obligee and 
 80.6   the obligor of intent to terminate income withholding. 
 80.7      Five days following notification to the obligee and 
 80.8   obligor, the public authority shall issue a notice to the payor 
 80.9   of funds terminating income withholding, without a requirement 
 80.10  for a court order unless the obligee has requested a contested 
 80.11  hearing under section 518.5511, subdivision 4. 
 80.12     Subd. 15.  [CONTRACT FOR SERVICE.] To carry out the 
 80.13  provisions of this section, the public authority responsible for 
 80.14  child support enforcement may contract for services, including 
 80.15  the use of electronic funds transfer. 
 80.16     Subd. 16.  [WAIVER.] (a) If child support or maintenance is 
 80.17  not assigned under section 256.741, the court may waive the 
 80.18  requirements of this section if the court finds there is no 
 80.19  arrearage in child support and maintenance as of the date of the 
 80.20  hearing and: 
 80.21     (1) one party demonstrates and the court finds there is 
 80.22  good cause to waive the requirements of this section or to 
 80.23  terminate an order for or notice of income withholding 
 80.24  previously entered under this section; or 
 80.25     (2) all parties reach an agreement and the agreement is 
 80.26  approved by the court after a finding that the agreement is 
 80.27  likely to result in regular and timely payments.  The court's 
 80.28  findings waiving the requirements of this paragraph shall 
 80.29  include a written explanation of the reasons why income 
 80.30  withholding would not be in the best interests of the child. 
 80.31     In addition to the other requirements in this subdivision, 
 80.32  if the case involves a modification of support, the court shall 
 80.33  make a finding that support has been timely made. 
 80.34     (b) If the court waives income withholding, the obligee or 
 80.35  obligor may at any time request income withholding under 
 80.36  subdivision 7. 
 81.1      Subd. 17.  [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 
 81.2   who complies with an income withholding order or notice of 
 81.3   withholding according to this chapter or chapter 518C, that 
 81.4   appears regular on its face shall not be subject to civil 
 81.5   liability to any individual or agency for taking action in 
 81.6   compliance with the order or notice. 
 81.7      Subd. 18.  [ELECTRONIC TRANSMISSION.] Orders or notices for 
 81.8   withholding under this section may be transmitted for 
 81.9   enforcement purposes by electronic means. 
 81.10     Sec. 61.  Minnesota Statutes 1996, section 518.616, is 
 81.11  amended by adding a subdivision to read: 
 81.12     Subd. 1a.  [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 
 81.13  ASSISTANCE.] For any order enforced by the public authority for 
 81.14  children receiving assistance under any of the programs referred 
 81.15  to in section 256.741, subdivision 1, the public authority may 
 81.16  seek a court order requiring the obligor to participate in work 
 81.17  activities if the obligor is in arrears in child support.  Work 
 81.18  activities include the following: 
 81.19     (1) unsubsidized employment; 
 81.20     (2) subsidized private sector employment; 
 81.21     (3) subsidized public sector employment or work experience 
 81.22  only if sufficient private sector employment is unavailable; 
 81.23     (4) on-the-job training; 
 81.24     (5) job search and job readiness; 
 81.25     (6) education directly related to employment, in the case 
 81.26  of an obligor who: 
 81.27     (i) has not attained 20 years of age; and 
 81.28     (ii) has not received a high school diploma or certificate 
 81.29  of high school equivalency; 
 81.30     (7) job skills training directly related to employment; 
 81.31     (8) satisfactory attendance at a secondary school in the 
 81.32  case of an obligor who: 
 81.33     (i) has not completed secondary school; and 
 81.34     (ii) is a dependent child, or a head of a household and who 
 81.35  has not attained 20 years of age; and 
 81.36     (9) vocational educational training, not to exceed 12 
 82.1   months with respect to any individual. 
 82.2      Sec. 62.  [518.618] [COLLECTION; ARREARS ONLY.] 
 82.3      (a) Remedies available for the collection and enforcement 
 82.4   of support in this chapter and chapters 256, 257, and 518C also 
 82.5   apply to cases in which the child or children for whom support 
 82.6   is owed are emancipated and the obligor owes past support or has 
 82.7   an accumulated arrearage as of the date of the youngest child's 
 82.8   emancipation.  
 82.9      (b) This section applies retroactively to any support 
 82.10  arrearage that accrued on or before the date of enactment and to 
 82.11  all arrearages accruing after the date of enactment. 
 82.12     Sec. 63.  Minnesota Statutes 1996, section 518.64, 
 82.13  subdivision 2, is amended to read: 
 82.14     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
 82.15  respecting maintenance or support may be modified upon a showing 
 82.16  of one or more of the following:  (1) substantially increased or 
 82.17  decreased earnings of a party; (2) substantially increased or 
 82.18  decreased need of a party or the child or children that are the 
 82.19  subject of these proceedings; (3) receipt of assistance under 
 82.20  sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in 
 82.21  the cost of living for either party as measured by the federal 
 82.22  bureau of statistics, any of which makes the terms unreasonable 
 82.23  and unfair; (5) extraordinary medical expenses of the child not 
 82.24  provided for under section 518.171; or (6) the addition of 
 82.25  work-related or education-related child care expenses of the 
 82.26  obligee or a substantial increase or decrease in existing 
 82.27  work-related or education-related child care expenses.  
 82.28     (b) It is presumed that there has been a substantial change 
 82.29  in circumstances under clause (1), (2), or (4) paragraph (a) and 
 82.30  the terms of a current support order shall be rebuttably 
 82.31  presumed to be unreasonable and unfair if: 
 82.32     (1) the application of the child support guidelines in 
 82.33  section 518.551, subdivision 5, to the current circumstances of 
 82.34  the parties results in a calculated court order that is at least 
 82.35  20 percent and at least $50 per month higher or lower than the 
 82.36  current support order.; 
 83.1      (2) the medical support provisions of the order established 
 83.2   under section 518.171 are not enforceable by the public 
 83.3   authority or the custodial parent; 
 83.4      (3) health coverage ordered under section 518.171 is not 
 83.5   available to the child for whom the order is established by the 
 83.6   parent ordered to provide; or 
 83.7      (4) the existing support obligation is in the form of a 
 83.8   statement of percentage and not a specific dollar amount.  
 83.9      (b) (c) On a motion for modification of maintenance, 
 83.10  including a motion for the extension of the duration of a 
 83.11  maintenance award, the court shall apply, in addition to all 
 83.12  other relevant factors, the factors for an award of maintenance 
 83.13  under section 518.552 that exist at the time of the motion.  On 
 83.14  a motion for modification of support, the court:  
 83.15     (1) shall apply section 518.551, subdivision 5, and shall 
 83.16  not consider the financial circumstances of each party's spouse, 
 83.17  if any; and 
 83.18     (2) shall not consider compensation received by a party for 
 83.19  employment in excess of a 40-hour work week, provided that the 
 83.20  party demonstrates, and the court finds, that: 
 83.21     (i) the excess employment began after entry of the existing 
 83.22  support order; 
 83.23     (ii) the excess employment is voluntary and not a condition 
 83.24  of employment; 
 83.25     (iii) the excess employment is in the nature of additional, 
 83.26  part-time employment, or overtime employment compensable by the 
 83.27  hour or fractions of an hour; 
 83.28     (iv) the party's compensation structure has not been 
 83.29  changed for the purpose of affecting a support or maintenance 
 83.30  obligation; 
 83.31     (v) in the case of an obligor, current child support 
 83.32  payments are at least equal to the guidelines amount based on 
 83.33  income not excluded under this clause; and 
 83.34     (vi) in the case of an obligor who is in arrears in child 
 83.35  support payments to the obligee, any net income from excess 
 83.36  employment must be used to pay the arrearages until the 
 84.1   arrearages are paid in full. 
 84.2      (c) (d) A modification of support or maintenance may be 
 84.3   made retroactive only with respect to any period during which 
 84.4   the petitioning party has pending a motion for modification but 
 84.5   only from the date of service of notice of the motion on the 
 84.6   responding party and on the public authority if public 
 84.7   assistance is being furnished or the county attorney is the 
 84.8   attorney of record.  However, modification may be applied to an 
 84.9   earlier period if the court makes express findings that the 
 84.10  party seeking modification was precluded from serving a motion 
 84.11  by reason of a significant physical or mental disability, a 
 84.12  material misrepresentation of another party, or fraud upon the 
 84.13  court and that the party seeking modification, when no longer 
 84.14  precluded, promptly served a motion.  The court may provide that 
 84.15  a reduction in the amount allocated for child care expenses 
 84.16  based on a substantial decrease in the expenses is effective as 
 84.17  of the date the expenses decreased. 
 84.18     (d) (e) Except for an award of the right of occupancy of 
 84.19  the homestead, provided in section 518.63, all divisions of real 
 84.20  and personal property provided by section 518.58 shall be final, 
 84.21  and may be revoked or modified only where the court finds the 
 84.22  existence of conditions that justify reopening a judgment under 
 84.23  the laws of this state, including motions under section 518.145, 
 84.24  subdivision 2.  The court may impose a lien or charge on the 
 84.25  divided property at any time while the property, or subsequently 
 84.26  acquired property, is owned by the parties or either of them, 
 84.27  for the payment of maintenance or support money, or may 
 84.28  sequester the property as is provided by section 518.24. 
 84.29     (e) (f) The court need not hold an evidentiary hearing on a 
 84.30  motion for modification of maintenance or support. 
 84.31     (f) (g) Section 518.14 shall govern the award of attorney 
 84.32  fees for motions brought under this subdivision. 
 84.33     Sec. 64.  Minnesota Statutes 1996, section 518.641, 
 84.34  subdivision 2, is amended to read: 
 84.35     Subd. 2.  [CONDITIONS.] No adjustment under this section 
 84.36  may be made unless the order provides for it and until the 
 85.1   following conditions are met:  
 85.2      (a) the obligee or public authority serves notice of its 
 85.3   the application for adjustment by mail on the obligor at the 
 85.4   obligor's last known address at least 20 days before the 
 85.5   effective date of the adjustment; 
 85.6      (b) the notice to the obligor informs the obligor of the 
 85.7   date on which the adjustment in payments will become effective; 
 85.8   and 
 85.9      (c) after receipt of notice and before the effective day of 
 85.10  the adjustment, the obligor fails to request a hearing on the 
 85.11  issue of whether the adjustment should take effect, and ex 
 85.12  parte, to stay imposition of the adjustment pending outcome of 
 85.13  the hearing; or 
 85.14     (d) the public authority sends notice of its application 
 85.15  for adjustment to the obligor at the obligor's last known 
 85.16  address at least 20 days before the effective date of the 
 85.17  adjustment, and the notice informs the obligor of the date on 
 85.18  which the adjustment will become effective and the procedures 
 85.19  for contesting the adjustment according to section 518.5512. 
 85.20     Sec. 65.  Minnesota Statutes 1996, section 518.68, 
 85.21  subdivision 2, is amended to read: 
 85.22     Subd. 2.  [CONTENTS.] The required notices must be 
 85.23  substantially as follows: 
 85.24                          IMPORTANT NOTICE 
 85.25  1.  PAYMENTS TO PUBLIC AGENCY 
 85.26     Pursuant According to Minnesota Statutes, section 518.551, 
 85.27     subdivision 1, payments ordered for maintenance and support 
 85.28     must be paid to the public agency responsible for child 
 85.29     support enforcement as long as the person entitled to 
 85.30     receive the payments is receiving or has applied for public 
 85.31     assistance or has applied for support and maintenance 
 85.32     collection services.  MAIL PAYMENTS TO: 
 85.33  2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
 85.34  FELONY 
 85.35     A person may be charged with a felony who conceals a minor 
 85.36     child or takes, obtains, retains, or fails to return a 
 86.1      minor child from or to the child's parent (or person with 
 86.2      custodial or visitation rights), pursuant according to 
 86.3      Minnesota Statutes, section 609.26.  A copy of that section 
 86.4      is available from any district court clerk. 
 86.5   3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
 86.6      (a) Payment of support or spousal maintenance is to be as 
 86.7      ordered, and the giving of gifts or making purchases of 
 86.8      food, clothing, and the like will not fulfill the 
 86.9      obligation. 
 86.10     (b) Payment of support must be made as it becomes due, and 
 86.11     failure to secure or denial of rights of visitation is NOT 
 86.12     an excuse for nonpayment, but the aggrieved party must seek 
 86.13     relief through a proper motion filed with the court. 
 86.14     (c) Nonpayment of support is not grounds to deny 
 86.15     visitation.  The party entitled to receive support may 
 86.16     apply for support and collection services, file a contempt 
 86.17     motion, or obtain a judgment as provided in Minnesota 
 86.18     Statutes, section 548.091.  
 86.19     (d) The payment of support or spousal maintenance takes 
 86.20     priority over payment of debts and other obligations. 
 86.21     (e) A party who accepts additional obligations of support 
 86.22     does so with the full knowledge of the party's prior 
 86.23     obligation under this proceeding. 
 86.24     (f) Child support or maintenance is based on annual income, 
 86.25     and it is the responsibility of a person with seasonal 
 86.26     employment to budget income so that payments are made 
 86.27     throughout the year as ordered. 
 86.28     (g) If there is a layoff or a pay reduction, support may be 
 86.29     reduced as of the time of the layoff or pay reduction if a 
 86.30     motion to reduce the support is served and filed with the 
 86.31     court at that time, but any such reduction must be ordered 
 86.32     by the court.  The court is not permitted to reduce support 
 86.33     retroactively, except as provided in Minnesota Statutes, 
 86.34     section 518.64, subdivision 2, paragraph (c).  
 86.35  4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
 86.36  SUBDIVISION 3 
 87.1      Unless otherwise provided by the Court: 
 87.2      (a) Each party has the right of access to, and to receive 
 87.3      copies of, school, medical, dental, religious training, and 
 87.4      other important records and information about the minor 
 87.5      children.  Each party has the right of access to 
 87.6      information regarding health or dental insurance available 
 87.7      to the minor children.  Presentation of a copy of this 
 87.8      order to the custodian of a record or other information 
 87.9      about the minor children constitutes sufficient 
 87.10     authorization for the release of the record or information 
 87.11     to the requesting party. 
 87.12     (b) Each party shall keep the other informed as to the name 
 87.13     and address of the school of attendance of the minor 
 87.14     children.  Each party has the right to be informed by 
 87.15     school officials about the children's welfare, educational 
 87.16     progress and status, and to attend school and parent 
 87.17     teacher conferences.  The school is not required to hold a 
 87.18     separate conference for each party. 
 87.19     (c) In case of an accident or serious illness of a minor 
 87.20     child, each party shall notify the other party of the 
 87.21     accident or illness, and the name of the health care 
 87.22     provider and the place of treatment. 
 87.23     (d) Each party has the right of reasonable access and 
 87.24     telephone contact with the minor children. 
 87.25  5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
 87.26     Child support and/or spousal maintenance may be withheld 
 87.27     from income, with or without notice to the person obligated 
 87.28     to pay, when the conditions of Minnesota Statutes, sections 
 87.29     518.611 and 518.613, have been met.  A copy of those 
 87.30     sections is available from any district court clerk. 
 87.31  6.  CHANGE OF ADDRESS OR RESIDENCE 
 87.32     Unless otherwise ordered, the person responsible to make 
 87.33     support or maintenance payments each party shall notify the 
 87.34     person entitled to receive the payment other party, the 
 87.35     court, and the public authority responsible for collection, 
 87.36     if applicable, of a change of address or residence the 
 88.1      following information within 60 ten days of the address or 
 88.2      residence change any change:  the residential and mailing 
 88.3      address, telephone number, driver's license number, social 
 88.4      security number, and name, address, and telephone number of 
 88.5      the employer. 
 88.6   7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
 88.7      Child support and/or spousal maintenance may be adjusted 
 88.8      every two years based upon a change in the cost of living 
 88.9      (using Department of Labor Consumer Price Index .........., 
 88.10     unless otherwise specified in this order) when the 
 88.11     conditions of Minnesota Statutes, section 518.641, are met. 
 88.12     Cost of living increases are compounded.  A copy of 
 88.13     Minnesota Statutes, section 518.641, and forms necessary to 
 88.14     request or contest a cost of living increase are available 
 88.15     from any district court clerk. 
 88.16  8.  JUDGMENTS FOR UNPAID SUPPORT 
 88.17     If a person fails to make a child support payment, the 
 88.18     payment owed becomes a judgment against the person 
 88.19     responsible to make the payment by operation of law on or 
 88.20     after the date the payment is due, and the person entitled 
 88.21     to receive the payment or the public agency may obtain 
 88.22     entry and docketing of the judgment WITHOUT NOTICE to the 
 88.23     person responsible to make the payment under Minnesota 
 88.24     Statutes, section 548.091.  Interest begins to accrue on a 
 88.25     payment or installment of child support whenever the unpaid 
 88.26     amount due is greater than the current support due, 
 88.27     pursuant according to Minnesota Statutes, section 548.091, 
 88.28     subdivision 1a.  
 88.29  9.  JUDGMENTS FOR UNPAID MAINTENANCE 
 88.30     A judgment for unpaid spousal maintenance may be entered 
 88.31     when the conditions of Minnesota Statutes, section 548.091, 
 88.32     are met.  A copy of that section is available from any 
 88.33     district court clerk. 
 88.34  10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
 88.35  SUPPORT 
 88.36     A judgment for attorney fees and other collection costs 
 89.1      incurred in enforcing a child support order will be entered 
 89.2      against the person responsible to pay support when the 
 89.3      conditions of section 518.14, subdivision 2, are met.  A 
 89.4      copy of section 518.14 and forms necessary to request or 
 89.5      contest these attorney fees and collection costs are 
 89.6      available from any district court clerk. 
 89.7   11.  VISITATION EXPEDITOR PROCESS 
 89.8      On request of either party or on its own motion, the court 
 89.9      may appoint a visitation expeditor to resolve visitation 
 89.10     disputes under Minnesota Statutes, section 518.1751.  A 
 89.11     copy of that section and a description of the expeditor 
 89.12     process is available from any district court clerk. 
 89.13  12.  VISITATION REMEDIES AND PENALTIES 
 89.14     Remedies and penalties for the wrongful denial of 
 89.15     visitation rights are available under Minnesota Statutes, 
 89.16     section 518.175, subdivision 6.  These include compensatory 
 89.17     visitation; civil penalties; bond requirements; contempt; 
 89.18     and reversal of custody.  A copy of that subdivision and 
 89.19     forms for requesting relief are available from any district 
 89.20     court clerk. 
 89.21     Sec. 66.  Minnesota Statutes 1996, section 550.37, 
 89.22  subdivision 24, is amended to read: 
 89.23     Subd. 24.  [EMPLOYEE BENEFITS.] The debtor's right to 
 89.24  receive present or future payments, or payments received by the 
 89.25  debtor, under a stock bonus, pension, profit sharing, annuity, 
 89.26  individual retirement account, individual retirement annuity, 
 89.27  simplified employee pension, or similar plan or contract on 
 89.28  account of illness, disability, death, age, or length of service:
 89.29     (1) to the extent the plan or contract is described in 
 89.30  section 401(a), 403, 408, or 457 of the Internal Revenue Code of 
 89.31  1986, as amended, or payments under the plan or contract are or 
 89.32  will be rolled over as provided in section 402(a)(5), 403(b)(8), 
 89.33  or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 
 89.34  or 
 89.35     (2) to the extent of the debtor's aggregate interest under 
 89.36  all plans and contracts up to a present value of $30,000 and 
 90.1   additional amounts under all the plans and contracts to the 
 90.2   extent reasonably necessary for the support of the debtor and 
 90.3   any spouse or dependent of the debtor.  
 90.4      The exemptions in this subdivision do not apply when the 
 90.5   debt is owed pursuant to a support order as defined in section 
 90.6   518.54, subdivision 4a. 
 90.7      Sec. 67.  [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 
 90.8   DELIVERY STUDY.] 
 90.9      The commissioner of human services, in consultation with 
 90.10  the commissioner's advisory committee, shall conduct a study of 
 90.11  the overall state child support enforcement delivery system and 
 90.12  shall recommend to the legislature a program design that will 
 90.13  best meet the following goals: 
 90.14     (1) comply with all state and federal laws and regulations; 
 90.15     (2) deliver child support and paternity services in a 
 90.16  timely manner; 
 90.17     (3) meet federal performance criteria; 
 90.18     (4) provide respectful and efficient service to custodial 
 90.19  and noncustodial parents; 
 90.20     (5) make efficient use of public money funding the program; 
 90.21  and 
 90.22     (6) provide a consistent level of services throughout the 
 90.23  state. 
 90.24     The study may make specific recommendations regarding 
 90.25  staffing, training, program administration, customer access to 
 90.26  services, use of technology, and other features of a successful 
 90.27  child support program.  The commissioner may contract with a 
 90.28  private vendor to complete the study.  The commissioner shall 
 90.29  provide the study and recommendations to the legislature by July 
 90.30  1, 1998. 
 90.31     Sec. 68.  [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 
 90.32  LICENSES.] 
 90.33     The commissioner shall consult with other state agencies to 
 90.34  obtain recommendations for establishing procedures to meet 
 90.35  federal requirements to suspend recreational licenses of child 
 90.36  support obligors who fail to pay child support.  The procedures 
 91.1   must impose the fewest restrictions on recreational licenses 
 91.2   consistent with federal law.  No procedure may be implemented 
 91.3   until approved by the legislature and enacted into law. 
 91.4      Sec. 69.  [INSTRUCTION TO REVISOR.] 
 91.5      In each section of Minnesota Statutes listed below, the 
 91.6   revisor shall delete the references to sections 518.611 or 
 91.7   518.613 and insert a reference to section 518.6111:  69.51; 
 91.8   69.62; 144C.09, subdivision 2; 268.072, subdivision 6; 352.15, 
 91.9   subdivision 1; 352.96, subdivision 6; 352B.071; 353.15, 
 91.10  subdivision 1; 354.10, subdivision 1; 354A.11; 354B.30; 
 91.11  354C.165; 383B.51; 422A.24; 423.39; 423.61; 423.813; 423A.16; 
 91.12  423B.17; 424.27; 424A.02, subdivision 6; 490.126, subdivision 5; 
 91.13  518.171, subdivisions 1, 2a, and 8; 518.5853, subdivision 7; 
 91.14  5518.614, subdivision 3; 518.615, subdivision 1; 518.616, 
 91.15  subdivision 1; 518.617, subdivision 2; 518.645; 518.68, 
 91.16  subdivision 2; 550.136, subdivision 4; 551.06, subdivision 4; 
 91.17  571.81, subdivision 2; 571.923; 518.5853, subdivision 5; 
 91.18  518.614, subdivision 1; 518.615, subdivision 1; 518.616, 
 91.19  subdivision 1; 518.617, subdivision 2; 518.68, subdivision 2; 
 91.20  518C.101; 518C.501; 518C.605; and 548.091, subdivision 1a. 
 91.21     The revisor shall change the coding of Minnesota Statutes 
 91.22  1996, section 518C.502, to section 518C.507. 
 91.23     Sec. 70.  [REPEALER.] 
 91.24     (a) Minnesota Statutes 1996, section 518C.9011, is repealed.
 91.25     (b) Minnesota Statutes 1996, sections 256.74; 256.979, 
 91.26  subdivision 9; 518.5511, subdivisions 5, 6, 7, 8, and 9; 
 91.27  518.611; 518.613; 518.645; and 518C.502, are repealed effective 
 91.28  July 1, 1997. 
 91.29                             ARTICLE 2
 91.30     Section 1.  Minnesota Statutes 1996, section 13.46, 
 91.31  subdivision 2, is amended to read: 
 91.32     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
 91.33  a statute specifically provides a different classification, data 
 91.34  on individuals collected, maintained, used, or disseminated by 
 91.35  the welfare system is private data on individuals, and shall not 
 91.36  be disclosed except:  
 92.1      (1) pursuant to section 13.05; 
 92.2      (2) pursuant to court order; 
 92.3      (3) pursuant to a statute specifically authorizing access 
 92.4   to the private data; 
 92.5      (4) to an agent of the welfare system, including a law 
 92.6   enforcement person, attorney, or investigator acting for it in 
 92.7   the investigation or prosecution of a criminal or civil 
 92.8   proceeding relating to the administration of a program; 
 92.9      (5) to personnel of the welfare system who require the data 
 92.10  to determine eligibility, amount of assistance, and the need to 
 92.11  provide services of additional programs to the individual; 
 92.12     (6) to administer federal funds or programs; 
 92.13     (7) between personnel of the welfare system working in the 
 92.14  same program; 
 92.15     (8) the amounts of cash public assistance and relief paid 
 92.16  to welfare recipients in this state, including their names, 
 92.17  social security numbers, income, addresses, and other data as 
 92.18  required, upon request by the department of revenue to 
 92.19  administer the property tax refund law, supplemental housing 
 92.20  allowance, early refund of refundable tax credits, and the 
 92.21  income tax.  "Refundable tax credits" means the dependent care 
 92.22  credit under section 290.067, the Minnesota working family 
 92.23  credit under section 290.0671, the property tax refund under 
 92.24  section 290A.04, and, if the required federal waiver or waivers 
 92.25  are granted, the federal earned income tax credit under section 
 92.26  32 of the Internal Revenue Code; 
 92.27     (9) to the Minnesota department of economic security for 
 92.28  the purpose of monitoring the eligibility of the data subject 
 92.29  for reemployment insurance, for any employment or training 
 92.30  program administered, supervised, or certified by that agency, 
 92.31  or for the purpose of administering any rehabilitation program, 
 92.32  whether alone or in conjunction with the welfare system, and to 
 92.33  verify receipt of energy assistance for the telephone assistance 
 92.34  plan; 
 92.35     (10) to appropriate parties in connection with an emergency 
 92.36  if knowledge of the information is necessary to protect the 
 93.1   health or safety of the individual or other individuals or 
 93.2   persons; 
 93.3      (11) data maintained by residential programs as defined in 
 93.4   section 245A.02 may be disclosed to the protection and advocacy 
 93.5   system established in this state pursuant to Part C of Public 
 93.6   Law Number 98-527 to protect the legal and human rights of 
 93.7   persons with mental retardation or other related conditions who 
 93.8   live in residential facilities for these persons if the 
 93.9   protection and advocacy system receives a complaint by or on 
 93.10  behalf of that person and the person does not have a legal 
 93.11  guardian or the state or a designee of the state is the legal 
 93.12  guardian of the person; 
 93.13     (12) to the county medical examiner or the county coroner 
 93.14  for identifying or locating relatives or friends of a deceased 
 93.15  person; 
 93.16     (13) data on a child support obligor who makes payments to 
 93.17  the public agency may be disclosed to the higher education 
 93.18  services office to the extent necessary to determine eligibility 
 93.19  under section 136A.121, subdivision 2, clause (5); 
 93.20     (14) participant social security numbers and names 
 93.21  collected by the telephone assistance program may be disclosed 
 93.22  to the department of revenue to conduct an electronic data match 
 93.23  with the property tax refund database to determine eligibility 
 93.24  under section 237.70, subdivision 4a; 
 93.25     (15) the current address of a recipient of aid to families 
 93.26  with dependent children may be disclosed to law enforcement 
 93.27  officers who provide the name and social security number of the 
 93.28  recipient and satisfactorily demonstrate that:  (i) the 
 93.29  recipient is a fugitive felon, including the grounds for this 
 93.30  determination; (ii) the location or apprehension of the felon is 
 93.31  within the law enforcement officer's official duties; and (iii) 
 93.32  the request is made in writing and in the proper exercise of 
 93.33  those duties; 
 93.34     (16) the current address of a recipient of general 
 93.35  assistance, work readiness, or general assistance medical care 
 93.36  may be disclosed to probation officers and corrections agents 
 94.1   who are supervising the recipient, and to law enforcement 
 94.2   officers who are investigating the recipient in connection with 
 94.3   a felony level offense; 
 94.4      (17) information obtained from food stamp applicant or 
 94.5   recipient households may be disclosed to local, state, or 
 94.6   federal law enforcement officials, upon their written request, 
 94.7   for the purpose of investigating an alleged violation of the 
 94.8   food stamp act, in accordance with Code of Federal Regulations, 
 94.9   title 7, section 272.1(c); 
 94.10     (18) data on a certain information regarding child support 
 94.11  obligor obligors who is are in arrears may be disclosed for 
 94.12  purposes of publishing the data pursuant made public according 
 94.13  to section 518.575; 
 94.14     (19) data on child support payments made by a child support 
 94.15  obligor, data on the enforcement actions undertaken by the 
 94.16  public authority and the status of those actions, and data on 
 94.17  the income of the obligor or obligee may be disclosed to the 
 94.18  obligee other party; 
 94.19     (20) data in the work reporting system may be disclosed 
 94.20  under section 256.998, subdivision 7; 
 94.21     (21) to the department of children, families, and learning 
 94.22  for the purpose of matching department of children, families, 
 94.23  and learning student data with public assistance data to 
 94.24  determine students eligible for free and reduced price meals, 
 94.25  meal supplements, and free milk pursuant to United States Code, 
 94.26  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
 94.27  produce accurate numbers of students receiving aid to families 
 94.28  with dependent children as required by section 124.175; and to 
 94.29  allocate federal and state funds that are distributed based on 
 94.30  income of the student's family; or 
 94.31     (22) the current address and telephone number of program 
 94.32  recipients and emergency contacts may be released to the 
 94.33  commissioner of health or a local board of health as defined in 
 94.34  section 145A.02, subdivision 2, when the commissioner or local 
 94.35  board of health has reason to believe that a program recipient 
 94.36  is a disease case, carrier, suspect case, or at risk of illness, 
 95.1   and the data are necessary to locate the person; or 
 95.2      (23) to other state agencies, statewide systems, and 
 95.3   political subdivisions of this state, including the attorney 
 95.4   general, and agencies of other states, interstate information 
 95.5   networks, federal agencies, and other entities as required by 
 95.6   federal regulation or law for the administration of the child 
 95.7   support enforcement program. 
 95.8      (b) Information on persons who have been treated for drug 
 95.9   or alcohol abuse may only be disclosed in accordance with the 
 95.10  requirements of Code of Federal Regulations, title 42, sections 
 95.11  2.1 to 2.67. 
 95.12     (c) Data provided to law enforcement agencies under 
 95.13  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
 95.14  investigative data and are confidential or protected nonpublic 
 95.15  while the investigation is active.  The data are private after 
 95.16  the investigation becomes inactive under section 13.82, 
 95.17  subdivision 5, paragraph (a) or (b). 
 95.18     (d) Mental health data shall be treated as provided in 
 95.19  subdivisions 7, 8, and 9, but is not subject to the access 
 95.20  provisions of subdivision 10, paragraph (b). 
 95.21     Sec. 2.  [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 
 95.22  DATA MATCHES.] 
 95.23     Subdivision 1.  [DEFINITIONS.] The definitions in this 
 95.24  subdivision apply to this section. 
 95.25     (a) "Account" means a demand deposit account, checking or 
 95.26  negotiable withdraw order account, savings account, time deposit 
 95.27  account, or money market mutual fund. 
 95.28     (b) "Account information" means the type of account, the 
 95.29  account number, whether the account is singly or jointly owned, 
 95.30  and in the case of jointly owned accounts the name and address 
 95.31  of the nonobligor account owner if available. 
 95.32     (c) "Financial institution" means any of the following that 
 95.33  do business within the state: 
 95.34     (1) federal or state commercial banks and federal or state 
 95.35  savings banks, including savings and loan associations and 
 95.36  cooperative banks; 
 96.1      (2) federal and state chartered credit unions; 
 96.2      (3) benefit associations; 
 96.3      (4) life insurance companies; 
 96.4      (5) safe deposit companies; and 
 96.5      (6) money market mutual funds. 
 96.6      (d) "Obligor" means an individual who is in arrears in 
 96.7   court-ordered child support or maintenance payments, or both, in 
 96.8   an amount equal to or greater than three times the obligor's 
 96.9   total monthly support and maintenance payments. 
 96.10     (e) "Public authority" means the public authority 
 96.11  responsible for child support enforcement. 
 96.12     Subd. 2.  [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 
 96.13  of human services shall establish a process for the comparison 
 96.14  of account information data held by financial institutions with 
 96.15  the public authority's database of child support obligors.  The 
 96.16  commissioner shall inform the financial industry of the 
 96.17  requirements of this section and the means by which financial 
 96.18  institutions can comply.  The commissioner may contract for 
 96.19  services to carry out this section. 
 96.20     Subd. 3.  [DUTY TO PROVIDE DATA.] On written request by a 
 96.21  public authority, a financial institution shall provide to the 
 96.22  public authority on a quarterly basis the name, address, social 
 96.23  security number, tax identification number if known, and all 
 96.24  account information for each obligor who maintains an account at 
 96.25  the financial institution. 
 96.26     Subd. 4.  [METHOD TO PROVIDE DATA.] To comply with the 
 96.27  requirements of this section, a financial institution may either:
 96.28     (1) provide to the public authority a list of all account 
 96.29  holders for the public authority to compare against its list of 
 96.30  child support obligors for the purpose of identifying which 
 96.31  obligors maintain an account at the financial institution; or 
 96.32     (2) obtain a list of child support obligors from the public 
 96.33  authority and compare that data to the data maintained at the 
 96.34  financial institution to identify which of the identified 
 96.35  obligors maintains an account at the financial institution. 
 96.36     A financial institution shall elect either method in 
 97.1   writing upon written request of the public authority, and the 
 97.2   election remains in effect unless the public authority agrees in 
 97.3   writing to a change. 
 97.4      Subd. 5.  [MEANS TO PROVIDE DATA.] A financial institution 
 97.5   may provide the required data by submitting electronic media in 
 97.6   a compatible format, delivering, mailing, or telefaxing a copy 
 97.7   of the data, or by other means authorized by the commissioner of 
 97.8   human services that will result in timely reporting. 
 97.9      Subd. 6.  [ACCESS TO DATA.] (a) With regard to account 
 97.10  information on all account holders provided by a financial 
 97.11  institution under subdivision 4, clause (1), the commissioner of 
 97.12  human services shall retain the reported information only until 
 97.13  the account information is compared against the public 
 97.14  authority's obligor database.  Notwithstanding section 138.17, 
 97.15  all account information that does not pertain to an obligor 
 97.16  listed in the public authority's database must be immediately 
 97.17  discarded, and no retention or publication may be made of that 
 97.18  data by the public authority.  All account information that does 
 97.19  pertain to an obligor listed in the public authority's database 
 97.20  must be incorporated into the public authority's database.  
 97.21  Access to that data is governed by chapter 13. 
 97.22     (b) With regard to data on obligors provided by the public 
 97.23  authority to a financial institution under subdivision 4, clause 
 97.24  (2), the financial institution shall retain the reported 
 97.25  information only until the financial institution's database is 
 97.26  compared against the public authority's database.  Data that do 
 97.27  not pertain to an account holder at the financial institution 
 97.28  must be immediately discarded, and no retention or publication 
 97.29  may be made of that data by the financial institution. 
 97.30     Subd. 7.  [FEES.] A financial institution may charge and 
 97.31  collect a fee from the public authority for providing account 
 97.32  information to the public authority.  No financial institution 
 97.33  shall charge or collect a fee that exceeds its actual costs of 
 97.34  complying with this section.  The commissioner, together with an 
 97.35  advisory group consisting of representatives of the financial 
 97.36  institutions in the state, shall determine a fee structure that 
 98.1   minimizes the cost to the state and reasonably meets the needs 
 98.2   of the financial institutions, and shall report to the chairs of 
 98.3   the judiciary committees in the house of representatives and the 
 98.4   senate by February 1, 1998, a recommended fee structure for 
 98.5   inclusion in this section. 
 98.6      Subd. 8.  [FAILURE TO RESPOND TO REQUEST FOR 
 98.7   INFORMATION.] The public authority shall send by certified mail 
 98.8   a written notice of noncompliance to a financial institution 
 98.9   that fails to respond to a first written request for information 
 98.10  under this section.  The notice of noncompliance must explain 
 98.11  the requirements of this section and advise the financial 
 98.12  institution of the penalty for noncompliance.  A financial 
 98.13  institution that receives a second notice of noncompliance is 
 98.14  subject to a civil penalty of $1,000 for its failure to comply.  
 98.15  A financial institution that continues to fail to comply with 
 98.16  this section is subject to a civil penalty of $5,000 for the 
 98.17  third and each subsequent failure to comply.  These penalties 
 98.18  may be imposed and collected by the public authority. 
 98.19     A financial institution that has been served with a notice 
 98.20  of noncompliance and incurs a second or subsequent notice of 
 98.21  noncompliance has the right to a contested case hearing under 
 98.22  chapter 14.  A financial institution has 20 days from the date 
 98.23  of the service of the notice of noncompliance to file a request 
 98.24  for a contested case hearing with the commissioner.  The order 
 98.25  of the administrative law judge constitutes the final decision 
 98.26  in the case. 
 98.27     Subd. 9.  [IMMUNITY.] A financial institution that provides 
 98.28  or reasonably attempts to provide information to the public 
 98.29  authority in compliance with this section is not liable to any 
 98.30  person for disclosing the information or for taking any other 
 98.31  action in good faith as authorized by this section or chapter 
 98.32  552. 
 98.33     Subd. 10.  [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 
 98.34  FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 
 98.35  action in district court against a financial institution for 
 98.36  unauthorized disclosure of data received from the public 
 99.1   authority under subdivision 4, clause (2).  A financial 
 99.2   institution found to have violated this subdivision shall be 
 99.3   liable as provided in paragraph (b) or (c). 
 99.4      (b) Any financial institution that willfully and 
 99.5   maliciously discloses data received from the public authority 
 99.6   under subdivision 4 is liable to that account holder in an 
 99.7   amount equal to the sum of: 
 99.8      (1) any actual damages sustained by the consumer as a 
 99.9   result of the disclosure; and 
 99.10     (2) in the case of any successful action to enforce any 
 99.11  liability under this section, the costs of the action taken plus 
 99.12  reasonable attorney's fees as determined by the court. 
 99.13     (c) Any financial institution that negligently discloses 
 99.14  data received from the public authority under subdivision 4 is 
 99.15  liable to that account holder in an amount equal to any actual 
 99.16  damages sustained by the account holder as a result of the 
 99.17  disclosure. 
 99.18     (d) A financial institution may not be held liable in any 
 99.19  action brought under this subdivision if the financial 
 99.20  institution shows, by a preponderance of evidence, that the 
 99.21  disclosure was not intentional and resulted from a bona fide 
 99.22  error notwithstanding the maintenance of procedures reasonably 
 99.23  adapted to avoid any error. 
 99.24     Sec. 3.  Minnesota Statutes 1996, section 168A.05, 
 99.25  subdivision 8, is amended to read: 
 99.26     Subd. 8.  [LIENS FILED FOR ENFORCEMENT OF CHILD SUPPORT.] 
 99.27  This subdivision applies if the court or a public authority 
 99.28  responsible for child support enforcement orders or directs the 
 99.29  commissioner to enter a lien, as provided in section 518.551, 
 99.30  subdivision 14.  If a certificate of title is applied for by the 
 99.31  owner, the department shall enter a lien on the title in the 
 99.32  name of the state of Minnesota or in the name of the obligee in 
 99.33  accordance with the notice if the value of the motor vehicle 
 99.34  determined in accordance with either the definitions of section 
 99.35  297B.01, subdivision 8, or the retail value described in the 
 99.36  N.A.D.A. Official Used Car Guide, Midwest Edition, for the 
100.1   current year exceeds the exemption allowed in section 550.37.  
100.2   The lien on the title is subordinate to any bona fide purchase 
100.3   money security interest as defined in section 336.9-107 
100.4   regardless of when the purchase money security interest is 
100.5   perfected.  With respect to all other security interests, the 
100.6   lien is perfected as of the date entered on the title.  The lien 
100.7   is subject to an exemption in the amount currently in effect 
100.8   under section 518.551, subdivision 14. 
100.9      Sec. 4.  Minnesota Statutes 1996, section 171.19, is 
100.10  amended to read: 
100.11     171.19 [PETITION FOR LICENSE REINSTATEMENT.] 
100.12     Any person whose driver's license has been refused, 
100.13  revoked, suspended, or canceled by the commissioner, except 
100.14  where the license is revoked under section 169.123 or section 
100.15  171.186, may file a petition for a hearing in the matter in the 
100.16  district court in the county wherein such person shall reside 
100.17  and, in the case of a nonresident, in the district court in any 
100.18  county, and such court is hereby vested with jurisdiction, and 
100.19  it shall be its duty, to set the matter for hearing upon 15 
100.20  days' written notice to the commissioner, and thereupon to take 
100.21  testimony and examine into the facts of the case to determine 
100.22  whether the petitioner is entitled to a license or is subject to 
100.23  revocation, suspension, cancellation, or refusal of license, and 
100.24  shall render judgment accordingly.  The petition shall be heard 
100.25  by the court without a jury and may be heard in or out of term.  
100.26  The commissioner may appear in person, or by agents or 
100.27  representatives, and may present evidence upon the hearing by 
100.28  affidavit personally, by agents, or by representatives.  The 
100.29  petitioner may present evidence by affidavit, except that the 
100.30  petitioner must be present in person at such hearing for the 
100.31  purpose of cross-examination.  In the event the department shall 
100.32  be sustained in these proceedings, the petitioner shall have no 
100.33  further right to make further petition to any court for the 
100.34  purpose of obtaining a driver's license until after the 
100.35  expiration of one year after the date of such hearing. 
100.36     Sec. 5.  Minnesota Statutes 1996, section 508.63, is 
101.1   amended to read: 
101.2      508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
101.3   JUDGMENTS.] 
101.4      No judgment requiring the payment of money shall be a lien 
101.5   upon registered land, except as herein provided.  Any person 
101.6   claiming such lien shall file with the registrar a certified 
101.7   copy of the judgment, together with a written statement 
101.8   containing a description of each parcel of land in which the 
101.9   judgment debtor has a registered interest and upon which the 
101.10  lien is claimed, and a proper reference to the certificate or 
101.11  certificates of title to such land.  Upon filing such copy and 
101.12  statement, the registrar shall enter a memorial of such judgment 
101.13  upon each certificate designated in such statement, and the 
101.14  judgment shall thereupon be and become a lien upon the judgment 
101.15  debtor's interest in the land described in such certificate or 
101.16  certificates.  At any time after filing the certified copy of 
101.17  such judgment, any person claiming the lien may, by filing a 
101.18  written statement, as herein provided, cause a memorial of such 
101.19  judgment to be entered upon any certificate of title to land in 
101.20  which the judgment debtor has a registered interest and not 
101.21  described in any previous statement and the judgment shall 
101.22  thereupon be and become a lien upon the judgment debtor's 
101.23  interest in such land.  The public authority for child support 
101.24  enforcement may present for filing a notice of judgment lien 
101.25  under section 548.091 with identifying information for a parcel 
101.26  of real property.  Upon receipt of the notice of judgment lien, 
101.27  the registrar shall enter a memorial of it upon each certificate 
101.28  which can reasonably be identified as owned by the judgment 
101.29  debtor on the basis of the information provided.  The judgment 
101.30  shall survive and the lien thereof shall continue for a period 
101.31  of ten years from the date of the judgment and no longer, and 
101.32  the registrar of titles shall not carry forward to a new 
101.33  certificate of title the memorial of the judgment after that 
101.34  period.  In every case where an instrument of any description, 
101.35  or a copy of any writ, order, or decree, is required by law to 
101.36  be filed or recorded in order to create or preserve any lien, 
102.1   writ, or attachment upon unregistered land, such instrument or 
102.2   copy, if intended to affect registered land, shall, in lieu of 
102.3   recording, be filed and registered with the registrar.  In 
102.4   addition to any facts required by law to be stated in such 
102.5   instruments to entitle them to be filed or recorded, they shall 
102.6   also contain a reference to the number of the certificate of 
102.7   title of the land to be affected, and, if the attachment, 
102.8   charge, or lien is not claimed on all the land described in any 
102.9   certificate of title, such instrument shall contain a 
102.10  description sufficient to identify the land. 
102.11     Sec. 6.  Minnesota Statutes 1996, section 508A.63, is 
102.12  amended to read: 
102.13     508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
102.14  JUDGMENTS.] 
102.15     No judgment requiring the payment of money shall be a lien 
102.16  upon land registered under sections 508A.01 to 508A.85, except 
102.17  as herein provided.  Any person claiming a lien shall file with 
102.18  the registrar a certified copy of the judgment, together with a 
102.19  written statement containing a description of each parcel of 
102.20  land in which the judgment debtor has a registered interest and 
102.21  upon which the lien is claimed, and a proper reference to the 
102.22  CPT or CPTs to the land.  Upon filing the copy and statement, 
102.23  the registrar shall enter a memorial of the judgment upon each 
102.24  CPT designated in the statement, and the judgment shall then be 
102.25  and become a lien upon the judgment debtor's interest in the 
102.26  land described in CPT or CPTs.  At any time after filing the 
102.27  certified copy of the judgment, any person claiming the lien 
102.28  may, by filing a written statement, as herein provided, cause a 
102.29  memorial of the judgment to be entered upon any CPT to land in 
102.30  which the judgment debtor has a registered interest and not 
102.31  described in any previous statement and the judgment shall then 
102.32  be and become a lien upon the judgment debtor's interest in the 
102.33  land.  The public authority for child support enforcement may 
102.34  present for filing a notice of judgment lien under section 
102.35  548.091 with identifying information for a parcel of real 
102.36  property.  Upon receipt of the notice of judgment lien, the 
103.1   registrar shall enter a memorial of it upon each certificate of 
103.2   possessory title which reasonably can be identified as owned by 
103.3   the judgment debtor on the basis of the information provided.  
103.4   The judgment shall survive and the lien thereof shall continue 
103.5   for a period of ten years from the date of the judgment and no 
103.6   longer; and the registrar shall not carry forward to a new 
103.7   certificate of title the memorial of the judgment after that 
103.8   period.  In every case where an instrument of any description, 
103.9   or a copy of any writ, order, or decree, is required by law to 
103.10  be filed or recorded in order to create or preserve any lien, 
103.11  writ, or attachment upon unregistered land, the instrument or 
103.12  copy, if intended to affect registered land, shall, in lieu of 
103.13  recording, be filed and registered with the registrar.  In 
103.14  addition to any facts required by law to be stated in the 
103.15  instruments to entitle them to be filed or recorded, they shall 
103.16  also contain a reference to the number of the CPT of the land to 
103.17  be affected.  If the attachment, charge, or lien is not claimed 
103.18  on all the land described in any CPT, the instrument shall 
103.19  contain a description sufficient to identify the land. 
103.20     Sec. 7.  Minnesota Statutes 1996, section 518.551, 
103.21  subdivision 14, is amended to read: 
103.22     Subd. 14.  [MOTOR VEHICLE LIEN.] (a) Upon motion of an 
103.23  obligee, if a court finds that the obligor is the registered 
103.24  owner of a motor vehicle and the obligor is a debtor for a 
103.25  judgment debt resulting from nonpayment of court-ordered child 
103.26  support or maintenance payments, or both, in an amount equal to 
103.27  or greater than three times the obligor's total monthly support 
103.28  and maintenance payments, the court shall order the commissioner 
103.29  of public safety to enter a lien in the name of the obligee or 
103.30  in the name of the state of Minnesota, as appropriate, in 
103.31  accordance with section 168A.05, subdivision 8, unless the court 
103.32  finds that the obligor is in compliance with a written payment 
103.33  agreement regarding both current support and arrearages approved 
103.34  by the court, an administrative law judge, or the public 
103.35  authority or that the obligor's interest in the motor vehicle is 
103.36  valued at less than $4,500.  The court's order must be stayed 
104.1   for 90 days in order to allow the obligor to either execute a 
104.2   written payment agreement regarding both current support and 
104.3   arrearages, which agreement shall be approved by either the 
104.4   court or the public authority responsible for child support 
104.5   enforcement, or to allow the obligor to demonstrate that the 
104.6   ownership interest in the motor vehicle is valued at less than 
104.7   $4,500.  If the obligor has not executed or is not in compliance 
104.8   with a written payment agreement regarding both current support 
104.9   and arrearages approved by the court, an administrative law 
104.10  judge, or the public authority or has not demonstrated that the 
104.11  ownership interest in the motor vehicle is valued at less than 
104.12  $4,500 within the 90-day period, the court's order becomes 
104.13  effective and the commissioner of public safety shall record the 
104.14  lien on any motor vehicle certificate of title subsequently 
104.15  issued in the name of the obligor.  The remedy under this 
104.16  subdivision is in addition to any other enforcement remedy 
104.17  available to the court. 
104.18     (b) If a public authority responsible for child support 
104.19  enforcement determines that the obligor is the registered owner 
104.20  of a motor vehicle and the obligor is a debtor for judgment debt 
104.21  resulting from nonpayment of court-ordered child support or 
104.22  maintenance payments, or both, in an amount equal to or greater 
104.23  than three times the obligor's total monthly support and 
104.24  maintenance payments, the public authority shall direct the 
104.25  commissioner of public safety to enter a lien in the name of the 
104.26  obligee or in the name of the state of Minnesota, as 
104.27  appropriate, under section 168A.05, subdivision 8, on any motor 
104.28  vehicle certificate of title subsequently issued in the name of 
104.29  the obligor unless the public authority determines that the 
104.30  obligor is in compliance with a written payment agreement 
104.31  regarding both current support and arrearages approved by the 
104.32  court, an administrative law judge, or the public authority or 
104.33  that the obligor's ownership interest in the motor vehicle is 
104.34  valued at less than $4,500.  The remedy under this subdivision 
104.35  is in addition to any other enforcement remedy available to the 
104.36  public agency. 
105.1      (c) At least 90 days prior to notifying the commissioner of 
105.2   public safety pursuant to paragraph (b), the public authority 
105.3   must mail a written notice to the obligor at the obligor's last 
105.4   known address, that it intends to record a lien on the obligor's 
105.5   any motor vehicle certificate of title subsequently issued in 
105.6   the name of the obligor and that the obligor must request a 
105.7   hearing within 30 days in order to contest the action.  If the 
105.8   obligor makes a written request for a hearing within 30 days of 
105.9   the date of the notice, either a court hearing or a contested 
105.10  administrative proceeding must be held under section 518.5511, 
105.11  subdivision 4.  Notwithstanding any law to the contrary, the 
105.12  obligor must be served with 14 days' notice in writing 
105.13  specifying the time and place of the hearing and the allegations 
105.14  against the obligor.  The notice may be served personally or by 
105.15  mail.  If the public authority does not receive a request for a 
105.16  hearing within 30 days of the date of the notice and the obligor 
105.17  does not execute or is not in compliance with a written payment 
105.18  agreement regarding both current support and arrearages approved 
105.19  by the court, an administrative law judge, or the public 
105.20  authority or demonstrate to the public authority that the 
105.21  obligor's ownership interest in the motor vehicle is valued at 
105.22  less than $4,500 within 90 days of the date of the notice, the 
105.23  public authority shall direct the commissioner of public safety 
105.24  to record the lien under paragraph (b). 
105.25     (d) At a hearing requested by the obligor under paragraph 
105.26  (c), and on finding that the obligor is in arrears in 
105.27  court-ordered child support or maintenance payments or both in 
105.28  an amount equal to or greater than three times the obligor's 
105.29  total monthly support and maintenance payments, the district 
105.30  court or the administrative law judge shall order the 
105.31  commissioner of public safety to record the lien unless the 
105.32  court or administrative law judge determines that: 
105.33     (1) the obligor has executed and is in compliance with a 
105.34  written payment agreement regarding both current support and 
105.35  arrearages determined to be acceptable by the court, an 
105.36  administrative law judge, or the public authority; or 
106.1      (2) the obligor has demonstrated that the ownership 
106.2   interest in the motor vehicle is valued at less than $4,500. 
106.3      (e) An obligor who has had a lien recorded against a motor 
106.4   vehicle certificate of title may provide proof to the court or 
106.5   the public authority responsible for child support enforcement 
106.6   that the obligor is in compliance with all written payment 
106.7   agreements regarding both current support and arrearages or that 
106.8   the value of the motor vehicle is less than the exemption 
106.9   provided under section 550.37.  Within 15 days of the receipt of 
106.10  that proof, the court or public authority shall either execute a 
106.11  release of security interest under section 168A.20, subdivision 
106.12  4, and mail or deliver the release to the owner or other 
106.13  authorized person or shall direct the commissioner of public 
106.14  safety not to enter a lien on any motor vehicle certificate of 
106.15  title subsequently issued in the name of the obligor in 
106.16  instances where a lien has not yet been entered.  The dollar 
106.17  amounts in this section shall change periodically in the manner 
106.18  provided in section 550.37, subdivision 4a. 
106.19     (f) Any lien recorded against a motor vehicle certificate 
106.20  of title under this section and section 168A.05, subdivision 8, 
106.21  attaches only to the nonexempt value of the motor vehicle as 
106.22  determined in accordance with section 550.37.  The value of a 
106.23  motor vehicle shall be determined in accordance with the retail 
106.24  value described in the N.A.D.A. Official Used Car Guide, Midwest 
106.25  Edition, for the current year, or in accordance with the 
106.26  purchase price as defined in section 297B.01, subdivision 8. 
106.27     Sec. 8.  Minnesota Statutes 1996, section 518.553, is 
106.28  amended to read: 
106.29     518.553 [PAYMENT AGREEMENTS.] 
106.30     In proposing or approving proposed written payment 
106.31  agreements for purposes of section 518.551, the court, an 
106.32  administrative law judge, or the public authority shall take 
106.33  into consideration the amount of the arrearages, the amount of 
106.34  the current support order, any pending request for modification, 
106.35  and the earnings of the obligor.  The court, administrative law 
106.36  judge, or public authority shall consider the individual 
107.1   financial circumstances of each obligor in evaluating the 
107.2   obligor's ability to pay any proposed payment agreement and 
107.3   shall propose a reasonable payment agreement tailored to the 
107.4   individual financial circumstances of each obligor. 
107.5      Sec. 9.  [518.618] [CASE REVIEWER.] 
107.6      The commissioner shall make a case reviewer available to 
107.7   obligors and obligees.  The reviewer must be available to answer 
107.8   questions concerning the collection process and to review the 
107.9   collection activity taken.  A reviewer who reasonably believes 
107.10  that a particular action being taken is unreasonable or unfair 
107.11  may make recommendations to the commissioner and the applicable 
107.12  county in regard to the collection action. 
107.13     Sec. 10.  Minnesota Statutes 1996, section 548.091, 
107.14  subdivision 1a, is amended to read: 
107.15     Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
107.16  (a) Any payment or installment of support required by a judgment 
107.17  or decree of dissolution or legal separation, determination of 
107.18  parentage, an order under chapter 518C, an order under section 
107.19  256.87, or an order under section 260.251, that is not paid or 
107.20  withheld from the obligor's income as required under section 
107.21  518.611 or 518.613, or which is ordered as child support by 
107.22  judgment, decree, or order by a court in any other state, is a 
107.23  judgment by operation of law on and after the date it is due and 
107.24  is entitled to full faith and credit in this state and any other 
107.25  state.  Except as otherwise provided by paragraph (b), interest 
107.26  accrues from the date the unpaid amount due is greater than the 
107.27  current support due at the annual rate provided in section 
107.28  549.09, subdivision 1, plus two percent, not to exceed an annual 
107.29  rate of 18 percent.  A payment or installment of support that 
107.30  becomes a judgment by operation of law between the date on which 
107.31  a party served notice of a motion for modification under section 
107.32  518.64, subdivision 2, and the date of the court's order on 
107.33  modification may be modified under that subdivision. 
107.34     (b) Notwithstanding the provisions of section 549.09, upon 
107.35  motion to the court and upon proof by the obligor of 36 
107.36  consecutive months of complete and timely payments of both 
108.1   current support and court-ordered paybacks of a child support 
108.2   debt or arrearage, the court may order interest on the remaining 
108.3   debt or arrearage to stop accruing.  Timely payments are those 
108.4   made in the month in which they are due.  If, after that time, 
108.5   the obligor fails to make complete and timely payments of both 
108.6   current support and court-ordered paybacks of child support debt 
108.7   or arrearage, the public authority or the obligee may move the 
108.8   court for the reinstatement of interest as of the month in which 
108.9   the obligor ceased making complete and timely payments. 
108.10     The court shall provide copies of all orders issued under 
108.11  this section to the public authority.  The commissioner of human 
108.12  services shall prepare and make available to the court and the 
108.13  parties forms to be submitted by the parties in support of a 
108.14  motion under this paragraph. 
108.15     Sec. 11.  Minnesota Statutes 1996, section 548.091, 
108.16  subdivision 2a, is amended to read: 
108.17     Subd. 2a.  [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 
108.18  after the date an unpaid amount becomes a judgment by operation 
108.19  of law under subdivision 1a, the obligee or the public authority 
108.20  may file with the court administrator, either electronically or 
108.21  by other means: 
108.22     (1) a statement identifying, or a copy of, the judgment or 
108.23  decree of dissolution or legal separation, determination of 
108.24  parentage, order under chapter 518C, an order under section 
108.25  256.87, or an order under section 260.251, or judgment, decree, 
108.26  or order for child support by a court in any other state, which 
108.27  provides for installment or periodic payments installments of 
108.28  child support, or a judgment or notice of attorney fees and 
108.29  collection costs under section 518.14, subdivision 2; 
108.30     (2) an affidavit of default.  The affidavit of default must 
108.31  state the full name, occupation, place of residence, and last 
108.32  known post office address of the obligor, the name and post 
108.33  office address of the obligee, the date or dates payment was due 
108.34  and not received and judgment was obtained by operation of law, 
108.35  and the total amount of the judgments to the date of filing, and 
108.36  the amount and frequency of the periodic installments of child 
109.1   support that will continue to become due and payable subsequent 
109.2   to the date of filing; and 
109.3      (3) an affidavit of service of a notice of entry of 
109.4   judgment or notice of intent to docket judgment and to recover 
109.5   attorney fees and collection costs on the obligor, in person or 
109.6   by mail at the obligor's last known post office address.  
109.7   Service is completed upon mailing in the manner designated. 
109.8   Where applicable, a notice of interstate lien in the form 
109.9   promulgated under United States Code, title 42, section 652(a), 
109.10  is sufficient to satisfy the requirements of clauses (1) and (2).
109.11     Sec. 12.  Minnesota Statutes 1996, section 548.091, 
109.12  subdivision 3a, is amended to read: 
109.13     Subd. 3a.  [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 
109.14  JUDGMENT.] Upon receipt of the documents filed under subdivision 
109.15  2a, the court administrator shall enter and docket the judgment 
109.16  in the amount of the default specified in the affidavit of 
109.17  default unpaid obligation identified in the affidavit of default 
109.18  and note the amount and frequency of the periodic installments 
109.19  of child support that will continue to become due and payable 
109.20  after the date of docketing.  From the time of docketing, the 
109.21  judgment is a lien upon all the real property in the county 
109.22  owned by the judgment debtor, but it is not a lien on registered 
109.23  land unless the obligee or the public authority causes a notice 
109.24  of judgment lien or certified copy of the judgment to be 
109.25  memorialized on the certificate of title or certificate of 
109.26  possessory title under section 508.63 or 508A.63.  The judgment 
109.27  survives and the lien continues for ten years after the date the 
109.28  judgment was docketed.  Child support judgments may be renewed 
109.29  by service of notice upon the debtor.  Service shall be by 
109.30  certified mail at the last known address of the debtor or in the 
109.31  manner provided for the service of civil process.  Upon the 
109.32  filing of the notice and proof of service the court 
109.33  administrator shall renew the judgment for child support without 
109.34  any additional filing fee. 
109.35     Sec. 13.  Minnesota Statutes 1996, section 548.091, is 
109.36  amended by adding a subdivision to read: 
110.1      Subd. 5.  [AUTOMATIC INCREASES; SATISFACTION.] After 
110.2   docketing and until satisfied by the obligee, public authority, 
110.3   or the court administrator, the amount of the docketed judgment 
110.4   automatically increases by the total amount of periodic 
110.5   installments of child support that became due and payable 
110.6   subsequent to the date of docketing, plus attorney's fees and 
110.7   collection costs incurred by the public authority, and less any 
110.8   payment made by the obligor to partially satisfy the docketed 
110.9   judgment.  The court administrator shall not satisfy any child 
110.10  support judgment without first obtaining a written judgment 
110.11  payoff statement from the public authority or obligee.  If no 
110.12  such statement can be obtained within two business days, the 
110.13  court administrator shall only satisfy the judgment if the 
110.14  amount paid to the court administrator equals the judgment 
110.15  amount plus interest and costs, and the amount of the periodic 
110.16  installment times the number of payments due since the date of 
110.17  docketing of the judgment.  
110.18     Sec. 14.  Minnesota Statutes 1996, section 548.091, is 
110.19  amended by adding a subdivision to read: 
110.20     Subd. 6.  [NOTE ON JUDGMENT ROLL.] The court administrator 
110.21  shall note on the judgment roll which judgments are filed 
110.22  pursuant to this section and the amount and frequency of the 
110.23  periodic installment of child support that will continue to 
110.24  become due and payable after the date of docketing.  
110.25     Sec. 15.  Minnesota Statutes 1996, section 548.091, is 
110.26  amended by adding a subdivision to read: 
110.27     Subd. 7.  [FEES.] The public authority is exempt from 
110.28  payment of fees when a judgment is docketed or a certified copy 
110.29  of a judgment is issued by a court administrator, or a notice of 
110.30  judgment lien or a certified copy of a judgment is presented to 
110.31  a registrar of titles for recording.  If a notice or certified 
110.32  copy is recorded by the public authority under this subdivision, 
110.33  the registrar of titles may collect from a party presenting for 
110.34  recording a satisfaction or release of the notice or certified 
110.35  copy the fees for recording and memorializing both the notice or 
110.36  certified copy and the satisfaction or release. 
111.1      Sec. 16.  Minnesota Statutes 1996, section 548.091, is 
111.2   amended by adding a subdivision to read: 
111.3      Subd. 8.  [REGISTERED LAND.] If requested by the public 
111.4   authority and upon the public authority's providing a notice of 
111.5   judgment lien or a certified copy of a judgment for child 
111.6   support debt, together with a street address, tax parcel 
111.7   identifying number, or a legal description for a parcel of real 
111.8   property, the county recorder shall search the registered land 
111.9   records in that county and cause the notice of judgment lien or 
111.10  certified copy of the judgment to be memorialized on every 
111.11  certificate of title or certificate of possessory title of 
111.12  registered land in that county that can be reasonably identified 
111.13  as owned by the obligor who is named on a docketed judgment.  
111.14  The fees for memorializing the lien or judgment must be paid in 
111.15  the manner prescribed by subdivision 7.  The county recorders 
111.16  and their employees and agents are not liable for any loss or 
111.17  damages arising from failure to identify a parcel of registered 
111.18  land owned by the obligor who is named on the docketed judgment. 
111.19     Sec. 17.  Minnesota Statutes 1996, section 548.091, is 
111.20  amended by adding a subdivision to read: 
111.21     Subd. 9.  [PAYOFF STATEMENT.] The public authority shall 
111.22  issue to the obligor, attorneys, lenders, and closers, or their 
111.23  agents, a payoff statement setting forth conclusively the amount 
111.24  necessary to satisfy the lien.  Payoff statements must be issued 
111.25  within three business days after receipt of a request by mail, 
111.26  personal delivery, telefacsimile, or e-mail transmission, and 
111.27  must be delivered to the requester by telefacsimile or e-mail 
111.28  transmission if requested and if appropriate technology is 
111.29  available to the commissioner. 
111.30     Sec. 18.  Minnesota Statutes 1996, section 548.091, is 
111.31  amended by adding a subdivision to read: 
111.32     Subd. 10.  [RELEASE OF LIEN.] Upon payment of the amount 
111.33  due under subdivision 5, the public authority shall execute and 
111.34  deliver a satisfaction of the judgment lien within five business 
111.35  days. 
111.36     Sec. 19.  Minnesota Statutes 1996, section 548.091, is 
112.1   amended by adding a subdivision to read: 
112.2      Subd. 11.  [SPECIAL PROCEDURES.] The public authority shall 
112.3   negotiate a release of lien on specific property for less than 
112.4   the full amount due where the proceeds of a sale or financing, 
112.5   less reasonable and necessary closing expenses, are not 
112.6   sufficient to satisfy all encumbrances on the licensed 
112.7   property.  Partial releases do not release the obligor's 
112.8   personal liability for the amount unpaid. 
112.9      Sec. 20.  Minnesota Statutes 1996, section 548.091, is 
112.10  amended by adding a subdivision to read: 
112.11     Subd. 12.  [CORRECTING ERRORS.] The public authority shall 
112.12  maintain a process to review the identity of the obligor and to 
112.13  issue releases of lien in cases of misidentification.  The 
112.14  commissioner shall maintain a process to review the amount of 
112.15  child support determined to be delinquent and to issue amended 
112.16  notices of judgment lien in cases of incorrectly docketed 
112.17  judgments. 
112.18     Sec. 21.  Minnesota Statutes 1996, section 548.091, is 
112.19  amended by adding a subdivision to read: 
112.20     Subd. 13.  [FORMS.] The department of human services, after 
112.21  consultation with registrars of title, shall prescribe the 
112.22  notice of judgment lien.  These forms are not subject to chapter 
112.23  14. 
112.24     Sec. 22.  [552.01] [ DEFINITIONS.] 
112.25     Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
112.26  the terms defined in this section have the meanings given them. 
112.27     Subd. 2.  [PUBLIC AUTHORITY.] "Public authority" means the 
112.28  public authority responsible for child support enforcement.  
112.29     Subd. 3.  [JUDGMENT DEBTOR.] "Judgment debtor"  means a 
112.30  party against whom the public authority has a judgment for the 
112.31  recovery of money owed pursuant to a support order as defined in 
112.32  section 518.54.  
112.33     Subd. 4.  [THIRD PARTY.] "Third party" means the person or 
112.34  entity upon whom the execution levy is served.  
112.35     Subd. 5.  [CLAIM.] "Claim" means the unpaid balance of the 
112.36  public authority's judgment against the judgment debtor, 
113.1   including all lawful interest and costs incurred. 
113.2      Subd. 6.  [FINANCIAL INSTITUTION.] "Financial institution" 
113.3   means all entities identified in section 13B.06. 
113.4      Sec. 23.  [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 
113.5   SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 
113.6      The public authority may execute on a money judgment 
113.7   resulting from money owed pursuant to a support order by levying 
113.8   under this chapter on indebtedness owed to the judgment debtor 
113.9   by a third party.  The public authority may execute under this 
113.10  chapter upon service of a notice of support judgment levy for 
113.11  which the seal of the court is not required. 
113.12     Sec. 24.  [552.03] [SCOPE OF GENERAL AND SPECIFIC 
113.13  PROVISIONS.] 
113.14     General provisions relating to the public authority's 
113.15  summary execution as authorized in this chapter are set forth in 
113.16  section 552.04.  Specific provisions relating to summary 
113.17  execution on funds at a financial institution are set forth in 
113.18  section 552.05.  When the public authority levies against funds 
113.19  at a financial institution, the specific provisions of section 
113.20  552.05 must be complied with in addition to the general 
113.21  provisions of section 552.04.  Provisions contained in the 
113.22  statutory forms are incorporated in this chapter and have the 
113.23  same force of law as any other provisions in this chapter.  
113.24     Sec. 25.  [552.04] [GENERAL PROVISIONS.] 
113.25     Subdivision 1.  [RULES OF CIVIL PROCEDURE.] Unless this 
113.26  chapter specifically provides otherwise, the Minnesota Rules of 
113.27  Civil Procedure for the District Courts and section 518.511 
113.28  apply in all proceedings under this chapter.  
113.29     Subd. 2.  [PROPERTY ATTACHABLE BY SERVICE OF LEVY.] Subject 
113.30  to the exemptions provided by subdivision 3 and section 550.37, 
113.31  and any other applicable statute, to the extent the exemptions 
113.32  apply in cases of child support enforcement, the service by the 
113.33  public authority of a notice of support judgment levy under this 
113.34  chapter attaches all nonexempt indebtedness or money due or 
113.35  belonging to the judgment debtor and owing by the third party or 
113.36  in the possession or under the control of the third party at the 
114.1   time of service of the notice of support judgment levy, whether 
114.2   or not the indebtedness or money has become payable.  The third 
114.3   party shall not be compelled to pay or deliver the same before 
114.4   the time specified by any agreement unless the agreement was 
114.5   fraudulently contracted to defeat an execution levy or other 
114.6   collection remedy. 
114.7      Subd. 3.  [PROPERTY NOT ATTACHABLE.] The following property 
114.8   is not subject to attachment by a notice of support judgment 
114.9   levy served under this chapter:  
114.10     (1) any indebtedness or money due to the judgment debtor, 
114.11  unless at the time of the service of the notice of support 
114.12  judgment levy the same is due absolutely or does not depend upon 
114.13  any contingency; 
114.14     (2) any judgment owing by the third party to the judgment 
114.15  debtor, if the third party or the third party's property is 
114.16  liable on an execution levy upon the judgment; 
114.17     (3) any debt owing by the third party to the judgment 
114.18  debtor for which any negotiable instrument has been issued or 
114.19  endorsed by the third party; 
114.20     (4) any indebtedness or money due to the judgment debtor 
114.21  with a cumulative value of less than $10; and 
114.22     (5) any disposable earnings, indebtedness, or money that is 
114.23  exempt under state or federal law to the extent the exemptions 
114.24  apply in cases of child support enforcement.  
114.25     Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
114.26  DISCLOSURE FORMS.] When levying upon money owed to the judgment 
114.27  debtor by a third party, the public authority shall serve a copy 
114.28  of the notice of support judgment levy upon the third party 
114.29  either by registered or certified mail, or by personal service.  
114.30  Along with a copy of the notice of support judgment levy, the 
114.31  public authority shall serve upon the third party a notice of 
114.32  support judgment levy and disclosure form that must be 
114.33  substantially in the form set forth below. 
114.34                OFFICE OF ADMINISTRATIVE HEARINGS
114.35                               File No. ...........
114.36  ........ (Public authority)
114.37  against                        NOTICE OF SUPPORT JUDGMENT
115.1   ........ (Judgment Debtor)     LEVY AND DISCLOSURE
115.2   and                            (OTHER THAN EARNINGS)
115.3   ........ (Third Party)
115.4      PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
115.5   chapters 518 and 522, the undersigned, as representative of the 
115.6   public authority responsible for child support enforcement, 
115.7   makes demand and levies execution upon all money due and owing 
115.8   by you to the judgment debtor for the amount of the judgment 
115.9   specified below.  A copy of the notice of support judgment levy 
115.10  is enclosed.  The unpaid judgment balance is $...... 
115.11     In responding to this levy, you are to complete the 
115.12  attached disclosure form and mail it to the public authority, 
115.13  together with your check payable to the public authority, for 
115.14  the nonexempt amount owed by you to the judgment debtor or for 
115.15  which you are obligated to the judgment debtor, within the time 
115.16  limits in chapter 552. 
115.17                       Public Authority
115.18                        Address
115.19                        (........)
115.20                        Phone number
115.21     
115.22                            DISCLOSURE
115.23     On the ... day of ......, 19..., the time of service of the 
115.24  execution levy herein, there was due and owing the judgment 
115.25  debtor from the third party the following: 
115.26     (1) Money.  Enter on the line below any amounts due and 
115.27  owing the judgment debtor, except earnings, from the third party.
115.28     ......................... 
115.29     (2) Setoff.  Enter on the line below the amount of any 
115.30  setoff, defense, lien, or claim which the third party claims 
115.31  against the amount set forth on line (1).  State the facts by 
115.32  which the setoff, defense, lien, or claim is claimed.  (Any 
115.33  indebtedness to you incurred by the judgment debtor within ten 
115.34  days prior to the receipt of the first execution levy on a debt 
115.35  may not be claimed as a setoff, defense, lien, or claim against 
115.36  the amount set forth on line (1).) 
115.37     ......................... 
115.38     (3) Exemption.  Enter on the line below any amounts or 
116.1   property claimed by the judgment debtor to be exempt from 
116.2   execution. 
116.3      ......................... 
116.4      (4) Adverse Interest.  Enter on the line below any amounts 
116.5   claimed by other persons by reason of ownership or interest in 
116.6   the judgment debtor's property. 
116.7      ......................... 
116.8      (5) Enter on the line below the total of lines (2), (3), 
116.9   and (4). 
116.10     .........................  
116.11     (6) Enter on the line below the difference obtained (never 
116.12  less than zero when line (5) is subtracted from the amount on 
116.13  line (1)).  
116.14     ......................... 
116.15     (7) Enter on the line below 100 percent of the amount of 
116.16  the public authority 's claim which remains unpaid.  
116.17     ......................... 
116.18     (8) Enter on the line below the lesser of line (6) and line 
116.19  (7).  You are instructed to remit this amount only if it is $10 
116.20  or more.  
116.21     ......................... 
116.22                           AFFIRMATION
116.23     I, .......... (person signing Affirmation), am the third 
116.24  party or I am authorized by the third party to complete this 
116.25  nonearnings disclosure, and have done so truthfully and to the 
116.26  best of my knowledge. 
116.27  Dated:..........                Signature
116.28                                   ..........
116.29                                   Title
116.30                                   ..........
116.31                                   Telephone Number
116.32     Subd. 5.  [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 
116.33  15 days after receipt of the notice of support judgment levy, 
116.34  unless governed by section 552.05, the third party shall 
116.35  disclose and remit to the public authority as much of the amount 
116.36  due as the third party's own debt equals to the judgment debtor. 
116.37     Subd. 6.  [ORAL DISCLOSURE.] Before or after the service of 
116.38  a written disclosure by a third party under subdivision 5, upon 
117.1   a showing by affidavit upon information and belief that an oral 
117.2   examination of the third party would provide a complete 
117.3   disclosure of relevant facts, any party to the execution 
117.4   proceedings may obtain an ex parte order requiring the third 
117.5   party, or a representative of the third party designated by name 
117.6   or by title, to appear for oral examination before the court or 
117.7   a referee appointed by the court.  Notice of the examination 
117.8   must be given to all parties. 
117.9      Subd. 7.  [SUPPLEMENTAL COMPLAINT.] If a third party holds 
117.10  property, money, earnings, or other indebtedness by a title that 
117.11  is void as to the judgment debtor's creditors, the property may 
117.12  be levied on although the judgment debtor would be barred from 
117.13  maintaining an action to recover the property, money, earnings, 
117.14  or other indebtedness.  In this and all other cases where the 
117.15  third party denies liability, the public authority may move the 
117.16  court at any time before the third party is discharged, on 
117.17  notice to both the judgment debtor and the third party for an 
117.18  order making the third party a party to supplemental action and 
117.19  granting the public authority leave to file a supplemental 
117.20  complaint against the third party and the judgment debtor.  The 
117.21  supplemental complaint shall set forth the facts upon which the 
117.22  public authority claims to charge the third party.  If probable 
117.23  cause is shown, the motion shall be granted.  The supplemental 
117.24  complaint shall be served upon the third party and the judgment 
117.25  debtor and any other parties.  The parties served shall answer 
117.26  or respond pursuant to the Minnesota Rules of Civil Procedure 
117.27  for the District Courts, and if they fail to do so, judgment by 
117.28  default may be entered against them.  
117.29     Subd. 8.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
117.30  DISCLOSE OR REMIT.] Judgment may be entered against a third 
117.31  party who has been served with a notice of support judgment levy 
117.32  and fails to disclose or remit the levied funds as required in 
117.33  this chapter.  Upon order to show cause served on the third 
117.34  party and notice of motion supported by affidavit of facts and 
117.35  affidavit of service upon both the judgment debtor and third 
117.36  party, the court may render judgment against the third party for 
118.1   an amount not exceeding 100 percent of the amount claimed in the 
118.2   execution.  Judgment against the third party under this section 
118.3   shall not bar the public authority from further remedies under 
118.4   this chapter as a result of any subsequent defaults by the third 
118.5   party.  The court upon good cause shown may remove the default 
118.6   and permit the third party to disclose or remit on just terms.  
118.7      Subd. 9.  [SATISFACTION.] Upon expiration, the public 
118.8   authority making the execution may file a partial satisfaction 
118.9   by amount or, if applicable, shall file the total satisfaction 
118.10  with the court administrator without charge.  
118.11     Subd. 10.  [THIRD PARTY GOOD FAITH REQUIREMENT.] The third 
118.12  party is not liable to the judgment debtor, public authority, or 
118.13  other person for wrongful retention if the third party retains 
118.14  or remits disposable earnings, indebtedness, or money of the 
118.15  judgment debtor or any other person, pending the third party's 
118.16  disclosure or consistent with the disclosure the third party 
118.17  makes, if the third party has a good faith belief that the 
118.18  property retained or remitted is subject to the execution.  In 
118.19  addition, the third party may, at any time before or after 
118.20  disclosure, proceed under Rule 67 of the Minnesota rules of 
118.21  civil procedure to make deposit into court.  No third party is 
118.22  liable for damages if the third party complies with the 
118.23  provisions of this chapter.  
118.24     Subd. 11.  [BAD FAITH CLAIM.] If, in a proceeding brought 
118.25  under section 552.05, subdivision 9, or a similar proceeding 
118.26  under this chapter to determine a claim of exemption, the claim 
118.27  of exemption is not upheld, and the court finds that it was 
118.28  asserted in bad faith, the public authority shall be awarded 
118.29  actual damages, costs, reasonable attorney's fees resulting from 
118.30  the additional proceedings, and an amount not to exceed $100.  
118.31  If the claim of exemption is upheld, and the court finds that 
118.32  the public authority disregarded the claim of exemption in bad 
118.33  faith, the judgment debtor shall be awarded actual damages, 
118.34  costs, reasonable attorney's fees resulting from the additional 
118.35  proceedings, and an amount not to exceed $100.  The underlying 
118.36  judgment shall be modified to reflect assessment of damages, 
119.1   costs, and attorney's fees.  However, if the party in whose 
119.2   favor a penalty assessment is made is not actually indebted to 
119.3   that party's attorney for fees, the attorney's fee award shall 
119.4   be made directly to the attorney, and if not paid, an 
119.5   appropriate judgment in favor of the attorney shall be entered.  
119.6   Any action by a public authority made in bad faith and in 
119.7   violation of this chapter renders the execution levy void and 
119.8   the public authority liable to the judgment debtor named in the 
119.9   execution levy in the amount of $100, actual damages, and 
119.10  reasonable attorney's fees and costs.  
119.11     Subd. 12.  [DISCHARGE OF A THIRD PARTY.] Subject to 
119.12  subdivisions 6 and 13, the third party, after disclosure, shall 
119.13  be discharged of any further obligation to the public authority 
119.14  when one of the following conditions is met:  
119.15     (a) The third party discloses that the third party is not 
119.16  indebted to the judgment debtor or does not possess any 
119.17  earnings, property, money, or indebtedness belonging to the 
119.18  judgment debtor that is attachable as defined in subdivision 2.  
119.19  The disclosure is conclusive against the public authority and 
119.20  discharges the third party from any further obligation to the 
119.21  public authority other than to retain and remit all nonexempt 
119.22  disposable earnings, property, indebtedness, or money of the 
119.23  judgment debtor which was disclosed.  
119.24     (b) The third party discloses that the third party is 
119.25  indebted to the judgment debtor as indicated on the execution 
119.26  disclosure form.  The disclosure is conclusive against the 
119.27  public authority and discharges the third party from any further 
119.28  obligation to the public authority other than to retain and 
119.29  remit all nonexempt disposable earnings, property, indebtedness, 
119.30  or money of the judgment debtor that was disclosed. 
119.31     (c) The court may, upon motion of an interested person, 
119.32  discharge the third party as to any disposable earnings, money, 
119.33  property, or indebtedness in excess of the amount that may be 
119.34  required to satisfy the public authority's claim.  
119.35     Subd. 13.  [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 
119.36  third party is not discharged if:  
120.1      (a) Within 20 days of the service of the third party's 
120.2   disclosure, an interested person serves a motion relating to the 
120.3   execution levy. The hearing on the motion must be scheduled to 
120.4   be heard within 30 days of the service of the motion.  
120.5      (b) The public authority moves the court for leave to file 
120.6   a supplemental complaint against the third party, as provided 
120.7   for in subdivision 7, and the court upon proper showing vacates 
120.8   the discharge of the third party.  
120.9      Subd. 14.  [JOINDER AND INTERVENTION BY PERSONS IN 
120.10  INTEREST.] If it appears that a person, who is not a party to 
120.11  the action, has or claims an interest in any of the disposable 
120.12  earnings, other indebtedness, or money, the court shall permit 
120.13  that person to intervene or join in the execution proceeding 
120.14  under this chapter.  If that person does not appear, the court 
120.15  may summon that person to appear or order the claim barred.  The 
120.16  person so appearing or summoned shall be joined as a party and 
120.17  be bound by the judgment.  
120.18     Subd. 15.  [APPEAL.] A party to an execution proceeding 
120.19  aggrieved by an order or final judgment may appeal as allowed by 
120.20  law.  
120.21     Subd. 16.  [PRIORITY OF LEVY.] Notwithstanding section 
120.22  52.12, a levy by the public authority made under this section on 
120.23  an obligor's funds on deposit in a financial institution located 
120.24  in this state has priority over any unexercised right of setoff 
120.25  of the financial institution to apply the levied funds toward 
120.26  the balance of an outstanding loan or loans owed by the obligor 
120.27  to the financial institution.  A claim by the financial 
120.28  institution that it exercised its right to setoff prior to the 
120.29  levy by the public authority must be substantiated by evidence 
120.30  of the date of the setoff and must be verified by the sworn 
120.31  statement of a responsible corporate officer of the financial 
120.32  institution.  For purposes of determining the priority of a levy 
120.33  made under this section, the levy must be treated as if it were 
120.34  an execution made under chapter 550. 
120.35     Sec. 26.  [552.05] [SUMMARY EXECUTION UPON FUNDS AT A 
120.36  FINANCIAL INSTITUTION.] 
121.1      Subdivision 1.  [PROCEDURE.] In addition to the provisions 
121.2   of section 552.04, when levying upon funds at a financial 
121.3   institution, the public authority must comply with this 
121.4   section.  If the notice of support judgment levy is being used 
121.5   by the public authority to levy funds of a judgment debtor who 
121.6   is a natural person and if the funds to be levied are held on 
121.7   deposit at any financial institution, in lieu of service the 
121.8   public authority shall send with the notice of support judgment 
121.9   levy and disclosure required by section 552.04, subdivision 4, 
121.10  one copy of an exemption and right to hearing notice.  The 
121.11  notice must be substantially in the form determined by the 
121.12  commissioner in accordance with section 552.05, subdivision 10.  
121.13  Failure of the public authority to send the notice renders the 
121.14  execution levy void, and the financial institution shall take no 
121.15  action.  Upon receipt of the notice of support judgment levy and 
121.16  exemption and right to hearing notice, the financial institution 
121.17  shall retain as much of the amount due as the financial 
121.18  institution has on deposit owing to the judgment debtor, but not 
121.19  more than 100 percent of the amount remaining due on the 
121.20  judgment until directed by the public authority or the court to 
121.21  release the funds to the public authority or the judgment debtor 
121.22  in accordance with this chapter. 
121.23     Subd. 2.  [DUTIES OF FINANCIAL INSTITUTION.] Within two 
121.24  business days after receipt of the execution levy and exemption 
121.25  and right to hearing notice, the financial institution shall 
121.26  serve upon the judgment debtor the exemption and right to 
121.27  hearing notice.  The financial institution shall serve the 
121.28  notice by first class mail to the last known address of the 
121.29  judgment debtor.  If no claim of exemption or request for 
121.30  hearing is received by the public authority within 14 days after 
121.31  the notice is mailed to the judgment debtor, the public 
121.32  authority shall notify the financial institution within seven 
121.33  days that the funds remain subject to the execution levy and 
121.34  shall be remitted to the public authority.  If a claim of 
121.35  exemption or a request for hearing is received by the public 
121.36  authority within 14 days after the exemption notice is mailed to 
122.1   the judgment debtor, the public authority shall within seven 
122.2   days notify the financial institution either to release the 
122.3   funds to the judgment debtor or that the funds remain subject to 
122.4   the execution levy pending the determination of an 
122.5   administrative law judge at a requested contested case 
122.6   proceeding.  When notified by the public authority to release 
122.7   the funds, the financial institution shall release the funds to 
122.8   the public authority or to the judgment debtor, as directed by 
122.9   the public authority, within two business days. 
122.10     Subd. 3.  [PROCESS TO CLAIM EXEMPTION.] If the judgment 
122.11  debtor elects to claim an exemption, the judgment debtor shall 
122.12  complete the applicable portion of the exemption and right to 
122.13  hearing notice, sign it under penalty of perjury, and deliver 
122.14  one copy to the public authority within 14 days of the date 
122.15  postmarked on the correspondence mailed to the judgment debtor 
122.16  containing the exemption and right to hearing notice.  Failure 
122.17  of the judgment debtor to deliver the executed exemption and 
122.18  right to hearing notice does not constitute a waiver of any 
122.19  claimed right to an exemption.  Upon timely receipt of a claim 
122.20  of exemption, funds not claimed to be exempt by the judgment 
122.21  debtor remain subject to the execution levy.  Within seven days 
122.22  after the date postmarked on the envelope containing the 
122.23  executed exemption and right to hearing notice mailed to the 
122.24  public authority, or the date of personal delivery of the 
122.25  executed exemption and right to hearing notice to the public 
122.26  authority, the public authority shall either notify the 
122.27  financial institution to release the exempt portion of the funds 
122.28  to the judgment debtor or schedule a contested administrative 
122.29  proceeding pursuant to subdivision 5. 
122.30     Subd. 4.  [PROCESS TO REQUEST HEARING.] If the judgment 
122.31  debtor elects to request a hearing on any issue specified in 
122.32  subdivision 6, the judgment debtor shall complete the applicable 
122.33  portion of the exemption and right to hearing notice, sign it 
122.34  under penalty of perjury, and deliver one copy to the public 
122.35  authority within 14 days of the date postmarked on the 
122.36  correspondence mailed to the judgment debtor containing the 
123.1   exemption and right to hearing notice.  Upon timely receipt of a 
123.2   request for hearing, funds not claimed to be exempt by the 
123.3   judgment debtor remain subject to the execution levy.  Within 
123.4   seven days after the date postmarked on the envelope containing 
123.5   the executed request for hearing mailed to the public authority, 
123.6   or the date of personal delivery of the executed request for 
123.7   hearing to the public authority, the public authority shall 
123.8   either notify the financial institution to release the exempt 
123.9   portion of the funds to the judgment debtor or schedule a 
123.10  contested administrative proceeding under section 518.5511 and 
123.11  notify the judgment debtor of the time and place of the 
123.12  scheduled hearing. 
123.13     Subd. 5.  [DUTIES OF PUBLIC AUTHORITY IF HEARING IS 
123.14  REQUESTED.] Within seven days of the receipt of a request for 
123.15  hearing or a claim of exemption to which the public authority 
123.16  does not consent, the public authority shall schedule a 
123.17  contested administrative proceeding under section 518.5511.  The 
123.18  hearing must be scheduled to occur within five business days.  
123.19  The public authority shall send written notice of the hearing 
123.20  date, time, and place to the judgment debtor by first class 
123.21  mail.  The hearing may be conducted by telephone, audiovisual 
123.22  means or other electronic means, at the discretion of the 
123.23  administrative law judge.  If the hearing is to be conducted by 
123.24  telephone, audiovisual means, or other electronic means, the 
123.25  public authority shall provide reasonable assistance to the 
123.26  judgment debtor to facilitate the submission of all necessary 
123.27  documentary evidence to the administrative law judge, including 
123.28  access to the public authority's facsimile transmission machine. 
123.29     Subd. 6.  [ISSUES RELEVANT AT HEARING.] At any hearing 
123.30  requested by the judgment debtor under this chapter, the only 
123.31  issues to be determined are whether: 
123.32     (1) the public authority complied with the process required 
123.33  by this chapter; 
123.34     (2) the amount stated in the notice of support judgment 
123.35  levy is owed by the judgment debtor; 
123.36     (3) the amount stated in the notice of support judgment 
124.1   levy is correct; or 
124.2      (4) any of the funds levied upon are exempt. 
124.3      Subd. 7.  [NOTICE OF ORDER.] Within one business day of 
124.4   receipt of the order of the administrative law judge, the public 
124.5   authority shall send a copy of the order to the judgment debtor 
124.6   at the judgment debtor's last known address and to the financial 
124.7   institution. 
124.8      Subd. 8.  [RELEASE OF FUNDS.] At any time during the 
124.9   procedure specified in this section, the judgment debtor or the 
124.10  public authority may direct the financial institution to release 
124.11  the funds in question to the other party.  Upon receipt of a 
124.12  release, the financial institution shall release the funds as 
124.13  directed. 
124.14     Subd. 9.  [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 
124.15  subsequent proceedings brought by the judgment debtor or the 
124.16  public authority, the claim of exemption is not upheld, and the 
124.17  office of administrative hearings finds that it was asserted in 
124.18  bad faith, the public authority shall be awarded actual damages, 
124.19  costs, and reasonable attorney fees resulting from the 
124.20  additional proceedings, and an amount not to exceed $100.  The 
124.21  underlying judgment must be modified to reflect assessment of 
124.22  damages, costs, and attorney fees.  However, if the party in 
124.23  whose favor a penalty assessment is made is not actually 
124.24  indebted to the party's attorney for fees, the attorney's fee 
124.25  award shall be made directly to the attorney and if not paid, an 
124.26  appropriate judgment in favor of the attorney shall be entered.  
124.27  Upon motion of any party in interest, on notice, the office of 
124.28  administrative hearings shall determine the validity of any 
124.29  claim of exemption, and may make any order necessary to protect 
124.30  the rights of those interested.  No financial institution is 
124.31  liable for damages for complying with this section.  The 
124.32  financial institution may rely on the date of mailing or 
124.33  delivery of a notice to it in computing any time periods in this 
124.34  section. 
124.35     Subd. 10.  [FORMS.] The commissioner of human services 
124.36  shall develop statutory forms for use as required under this 
125.1   chapter.  In developing these forms, the commissioner shall 
125.2   consult with the attorney general, representatives of financial 
125.3   institutions, and legal services.  The commissioner shall report 
125.4   back to the legislature by February 1, 1998, with recommended 
125.5   forms to be included in this chapter. 
125.6      Sec. 27.  Minnesota Statutes 1996, section 609.375, is 
125.7   amended by adding a subdivision to read: 
125.8      Subd. 7.  [CONDITIONS OF WORK RELEASE; PROBATION 
125.9   VIOLATION.] Upon conviction under this section, a defendant may 
125.10  obtain work release only upon the imposition of an automatic 
125.11  income withholding order, and may be required to post a bond in 
125.12  avoidance of jail time and conditioned upon payment of all child 
125.13  support owed.  Nonpayment of child support is a violation of any 
125.14  probation granted following conviction under subdivision 2a. 
125.15     Sec. 28.  [INDEPENDENT CONTRACTORS.] 
125.16     The department of human services shall report to the chairs 
125.17  of the judiciary committees in the house of representatives and 
125.18  the senate by February 1, 1998, on the state's experience 
125.19  including independent contractors for the state in the work 
125.20  reporting system. 
125.21     Sec. 29.  [CHILD SUPPORT ON-TIME PERFORMANCE BONUS 
125.22  INCENTIVE PROGRAM.] 
125.23     The commissioner shall develop a proposal for a bonus 
125.24  incentive program to reward timeliness of child support service 
125.25  delivery, including the establishment of orders, the 
125.26  modification of orders, and the administrative process.  Special 
125.27  emphasis must be given to cases where timely delivery of 
125.28  services may divert families from public assistance or help 
125.29  families exit public assistance with minimal loss of 
125.30  time-limited public assistance benefits.  The proposal must 
125.31  treat current federal law service delivery timelines as minimum 
125.32  standards and reward county agencies that surpass the minimum 
125.33  standards.  Other methods to enhance timely service delivery may 
125.34  be considered.  The commissioner shall consult with public 
125.35  assistance recipients and low-income nonpublic assistance 
125.36  recipients in developing the proposal.  The commissioner shall 
126.1   report and make recommendations to the legislature by January 
126.2   15, 1998. 
126.3      Sec. 30.  [REPEALER.] 
126.4      Minnesota Statutes 1996, section 609.375, subdivisions 3, 
126.5   4, and 6, are repealed.  
126.6      Sec. 31.  [EFFECTIVE DATE.] 
126.7      Sections 2 and 10 to 26 are effective July 1, 1998.  
126.8   Sections 1 and 7 and 8 are effective the day following final 
126.9   enactment.