1.1                          A bill for an act 
  1.2             relating to children; providing for measures to 
  1.3             improve child support collection and enforcement; 
  1.4             providing civil penalties; amending Minnesota Statutes 
  1.5             2000, sections 13B.06, subdivision 7; 256.741, 
  1.6             subdivisions 1, 5, and 8; 256.979, subdivisions 5 and 
  1.7             6; 393.07, by adding a subdivision; 518.5513, 
  1.8             subdivision 5; 518.575, subdivision 1; 518.5851, by 
  1.9             adding a subdivision; 518.5853, by adding a 
  1.10            subdivision; 518.6195; 518.64, subdivision 2; 518.641, 
  1.11            subdivisions 1, 2, 3, and by adding a subdivision; and 
  1.12            548.091, subdivision 1a; repealing Minnesota Statutes 
  1.13            2000, section 518.641, subdivisions 4 and 5. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2000, section 13B.06, 
  1.16  subdivision 7, is amended to read: 
  1.17     Subd. 7.  [FEES.] A financial institution may charge and 
  1.18  collect a fee from the public authority for providing account 
  1.19  information to the public authority.  The commissioner may pay a 
  1.20  financial institution up to $150 each quarter if the 
  1.21  commissioner and the financial institution have entered into a 
  1.22  signed agreement that complies with federal law.  The 
  1.23  commissioner shall develop procedures for the financial 
  1.24  institutions to charge and collect the fee.  Payment of the fee 
  1.25  is limited by the amount of the appropriation for this purpose.  
  1.26  If the appropriation is insufficient, or if fund availability in 
  1.27  the fourth quarter would allow payments for actual costs in 
  1.28  excess of $150, the commissioner shall prorate the available 
  1.29  funds among the financial institutions that have submitted a 
  2.1   claim for the fee.  No financial institution shall charge or 
  2.2   collect a fee that exceeds its actual costs of complying with 
  2.3   this section.  The commissioner, together with an advisory group 
  2.4   consisting of representatives of the financial institutions in 
  2.5   the state, shall determine a fee structure that minimizes the 
  2.6   cost to the state and reasonably meets the needs of the 
  2.7   financial institutions, and shall report to the chairs of the 
  2.8   judiciary committees in the house of representatives and the 
  2.9   senate by February 1, 1998, a recommended fee structure for 
  2.10  inclusion in this section evaluate whether the fee paid to 
  2.11  financial institutions compensates them for their actual costs, 
  2.12  including start-up costs, of complying with this section and 
  2.13  shall submit a report to the chairs of the committees in the 
  2.14  house of representatives and senate with jurisdiction over child 
  2.15  support issues by July 1, 2002, with a recommendation for 
  2.16  retaining or modifying the fee. 
  2.17     Sec. 2.  Minnesota Statutes 2000, section 256.741, 
  2.18  subdivision 1, is amended to read: 
  2.19     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "direct 
  2.20  support" as used in this chapter and chapters 257, 518, and 518C 
  2.21  refers to an assigned support payment from an obligor which is 
  2.22  paid directly to a recipient of TANF or MFIP. 
  2.23     (b) The term "public assistance" as used in this chapter 
  2.24  and chapters 257, 518, and 518C, includes any form of assistance 
  2.25  provided under the AFDC program formerly codified in sections 
  2.26  256.72 to 256.87, MFIP and MFIP-R formerly codified under 
  2.27  chapter 256, MFIP under chapter 256J, work first program under 
  2.28  chapter 256K; child care assistance provided through the child 
  2.29  care fund under chapter 119B; any form of medical assistance 
  2.30  under chapter 256B; MinnesotaCare under chapter 256L; and foster 
  2.31  care as provided under title IV-E of the Social Security Act. 
  2.32     (b) (c) The term "child support agency" as used in this 
  2.33  section refers to the public authority responsible for child 
  2.34  support enforcement. 
  2.35     (c) (d) The term "public assistance agency" as used in this 
  2.36  section refers to a public authority providing public assistance 
  3.1   to an individual. 
  3.2      Sec. 3.  Minnesota Statutes 2000, section 256.741, 
  3.3   subdivision 5, is amended to read: 
  3.4      Subd. 5.  [COOPERATION WITH CHILD SUPPORT ENFORCEMENT.] 
  3.5   After notification from a public assistance agency that an 
  3.6   individual has applied for or is receiving any form of public 
  3.7   assistance, the child support agency shall determine whether the 
  3.8   party is cooperating with the agency in establishing paternity, 
  3.9   child support, modification of an existing child support order, 
  3.10  or enforcement of an existing child support order.  The public 
  3.11  assistance agency shall notify each applicant or recipient in 
  3.12  writing of the right to claim a good cause exemption from 
  3.13  cooperating with the requirements in this section.  A copy of 
  3.14  the notice must be furnished to the applicant or recipient, and 
  3.15  the applicant or recipient and a representative from the public 
  3.16  authority shall acknowledge receipt of the notice by signing and 
  3.17  dating a copy of the notice.  The individual shall cooperate 
  3.18  with the child support agency by: 
  3.19     (1) providing all known information regarding the alleged 
  3.20  father or obligor, including name, address, social security 
  3.21  number, telephone number, place of employment or school, and the 
  3.22  names and addresses of any relatives; 
  3.23     (2) appearing at interviews, hearings and legal 
  3.24  proceedings; 
  3.25     (3) submitting to genetic tests including genetic testing 
  3.26  of the child, under a judicial or administrative order; and 
  3.27     (4) providing additional information known by the 
  3.28  individual as necessary for cooperating in good faith with the 
  3.29  child support agency. 
  3.30     The caregiver of a minor child must cooperate with the 
  3.31  efforts of the public authority to collect support according to 
  3.32  this subdivision.  A caregiver must forward to notify the public 
  3.33  authority of all support the caregiver receives during the 
  3.34  period the assignment of support required under subdivision 2 is 
  3.35  in effect.  Support received by a caregiver and not forwarded to 
  3.36  the public authority must be repaid to the child support 
  4.1   enforcement unit for any month following the date on which 
  4.2   initial eligibility is determined Direct support retained by a 
  4.3   caregiver must be counted as unearned income when determining 
  4.4   the amount of the assistance payment, except as provided under 
  4.5   subdivision 8, paragraph (b), clause (4) and repaid to the child 
  4.6   support agency for any month when the direct support retained is 
  4.7   greater than the court-ordered child support and the assistance 
  4.8   payment and the obligor owes support arrears. 
  4.9      Sec. 4.  Minnesota Statutes 2000, section 256.741, 
  4.10  subdivision 8, is amended to read: 
  4.11     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT REQUIREMENTS.] 
  4.12  (a) Failure by a caregiver to satisfy any of the requirements of 
  4.13  subdivision 5 constitutes refusal to cooperate, and the 
  4.14  sanctions under paragraph (b) apply.  The IV-D agency must 
  4.15  determine whether a caregiver has refused to cooperate according 
  4.16  to subdivision 5. 
  4.17     (b) Determination by the IV-D agency that a caregiver has 
  4.18  refused to cooperate has the following effects: 
  4.19     (1) a caregiver is subject to the applicable sanctions 
  4.20  under section 256J.46; 
  4.21     (2) a caregiver who is not a parent of a minor child in an 
  4.22  assistance unit may choose to remove the child from the 
  4.23  assistance unit unless the child is required to be in the 
  4.24  assistance unit; and 
  4.25     (3) a parental caregiver who refuses to cooperate is 
  4.26  ineligible for medical assistance; and 
  4.27     (4) direct support retained by a caregiver must be counted 
  4.28  as unearned income when determining the amount of the assistance 
  4.29  payment. 
  4.30     Sec. 5.  Minnesota Statutes 2000, section 256.979, 
  4.31  subdivision 5, is amended to read: 
  4.32     Subd. 5.  [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER 
  4.33  ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A bonus 
  4.34  incentive program is created to increase the number of paternity 
  4.35  establishments and establishment and modifications of child 
  4.36  support orders done by county child support enforcement agencies.
  5.1      (b) A bonus must be awarded to a county child support 
  5.2   agency for each case child for which the agency completes a 
  5.3   paternity or child support order establishment or modification 
  5.4   through judicial or administrative processes. 
  5.5      (c) The rate of bonus incentive is $100 per child for each 
  5.6   paternity or child support order establishment and modification 
  5.7   set in a specific dollar amount. 
  5.8      (d) No bonus shall be paid for a modification that is a 
  5.9   result of a termination of child care costs according to section 
  5.10  518.551, subdivision 5, paragraph (b), or due solely to a 
  5.11  reduction of child care expenses. 
  5.12     Sec. 6.  Minnesota Statutes 2000, section 256.979, 
  5.13  subdivision 6, is amended to read: 
  5.14     Subd. 6.  [CLAIMS FOR BONUS INCENTIVE.] (a) The 
  5.15  commissioner of human services and the county agency shall 
  5.16  develop procedures for the claims process and criteria using 
  5.17  automated systems where possible. 
  5.18     (b) Only one county agency may receive a bonus per 
  5.19  paternity establishment or child support order establishment or 
  5.20  modification for each case child.  The county agency completing 
  5.21  the action or procedure needed to establish paternity or a child 
  5.22  support order or modify an order is the county agency entitled 
  5.23  to claim the bonus incentive. 
  5.24     (c) Disputed claims must be submitted to the commissioner 
  5.25  of human services and the commissioner's decision is final. 
  5.26     (d) For purposes of this section, "case" means a family 
  5.27  unit for whom the county agency is providing child support 
  5.28  enforcement services.  
  5.29     Sec. 7.  Minnesota Statutes 2000, section 393.07, is 
  5.30  amended by adding a subdivision to read: 
  5.31     Subd. 9a.  [ADMINISTRATIVE PENALTIES.] (a) The public 
  5.32  authority, as defined in section 518.54, may sanction an 
  5.33  employer or payor of funds $25 per day, up to $500 per incident, 
  5.34  for failing to comply with section 518.5513, subdivision 5, 
  5.35  paragraph (a), clauses (5) and (8), if: 
  5.36     (1) the public authority mails the employer or payor of 
  6.1   funds by certified mail a notice of an administrative sanction, 
  6.2   at the employer's or payor's of funds last known address, which 
  6.3   includes the date the sanction will take effect, the amount of 
  6.4   the sanction, the reason for imposing the sanction, and the 
  6.5   corrective action that must be taken to avoid the sanction; and 
  6.6      (2) the employer or payor of funds fails to correct the 
  6.7   violation before the effective date of the sanction. 
  6.8      (b) The public authority shall include with the sanction 
  6.9   notice an additional notice of the right to appeal the sanction 
  6.10  and the process for making the appeal. 
  6.11     (c) Unless an appeal is made, the administrative 
  6.12  determination of the sanction is final and binding. 
  6.13     Sec. 8.  Minnesota Statutes 2000, section 518.5513, 
  6.14  subdivision 5, is amended to read: 
  6.15     Subd. 5.  [ADMINISTRATIVE AUTHORITY.] (a) The public 
  6.16  authority may take the following actions relating to 
  6.17  establishment of paternity or to establishment, modification, or 
  6.18  enforcement of support orders, without the necessity of 
  6.19  obtaining an order from any judicial or administrative tribunal: 
  6.20     (1) recognize and enforce orders of child support agencies 
  6.21  of other states; 
  6.22     (2) upon request for genetic testing by a child, parent, or 
  6.23  any alleged parent, and using the procedure in paragraph (b), 
  6.24  order the child, parent, or alleged parent to submit to blood or 
  6.25  genetic testing for the purpose of establishing paternity; 
  6.26     (3) subpoena financial or other information needed to 
  6.27  establish, modify, or enforce a child support order and request 
  6.28  sanctions sanction a party for failure to respond to a subpoena; 
  6.29     (4) upon notice to the obligor, obligee, and the 
  6.30  appropriate court, direct the obligor or other payor to change 
  6.31  the payee to the central collections unit under sections 
  6.32  518.5851 to 518.5853; 
  6.33     (5) order income withholding of child support under section 
  6.34  518.6111 and sanction an employer or payor of funds pursuant to 
  6.35  section 393.07, subdivision 9a, for failing to comply with an 
  6.36  income withholding notice; 
  7.1      (6) secure assets to satisfy the debt or arrearage in cases 
  7.2   in which there is a support debt or arrearage by: 
  7.3      (i) intercepting or seizing periodic or lump sum payments 
  7.4   from state or local agencies, including unemployment benefits, 
  7.5   workers' compensation payments, judgments, settlements, 
  7.6   lotteries, and other lump sum payments; 
  7.7      (ii) attaching and seizing assets of the obligor held in 
  7.8   financial institutions or public or private retirement funds; 
  7.9   and 
  7.10     (iii) imposing liens in accordance with section 548.091 
  7.11  and, in appropriate cases, forcing the sale of property and the 
  7.12  distribution of proceeds; 
  7.13     (7) for the purpose of securing overdue support, increase 
  7.14  the amount of the monthly support payments by an additional 
  7.15  amount equal to 20 percent of the monthly support payment to 
  7.16  include amounts for debts or arrearages; and 
  7.17     (8) subpoena an employer or payor of funds to provide 
  7.18  promptly information on the employment, compensation, and 
  7.19  benefits of an individual employed by that employer as an 
  7.20  employee or contractor, and to request sanctions sanction an 
  7.21  employer or payor of funds pursuant to section 393.07, 
  7.22  subdivision 9a, for failure to respond to the subpoena as 
  7.23  provided by law. 
  7.24     (b) A request for genetic testing by a child, parent, or 
  7.25  alleged parent must be supported by a sworn statement by the 
  7.26  person requesting genetic testing alleging paternity, which sets 
  7.27  forth facts establishing a reasonable possibility of the 
  7.28  requisite sexual contact between the parties, or denying 
  7.29  paternity, and setting forth facts establishing a reasonable 
  7.30  possibility of the nonexistence of sexual contact between the 
  7.31  alleged parties.  The order for genetic tests may be served 
  7.32  anywhere within the state and served outside the state in the 
  7.33  same manner as prescribed by law for service of subpoenas issued 
  7.34  by the district court of this state.  If the child, parent, or 
  7.35  alleged parent fails to comply with the genetic testing order, 
  7.36  the public authority may seek to enforce that order in district 
  8.1   court through a motion to compel testing.  No results obtained 
  8.2   through genetic testing done in response to an order issued 
  8.3   under this section may be used in any criminal proceeding. 
  8.4      (c) Subpoenas may be served anywhere within the state and 
  8.5   served outside the state in the same manner as prescribed by law 
  8.6   for service of process of subpoenas issued by the district court 
  8.7   of this state.  When a subpoena under this subdivision is served 
  8.8   on a third-party recordkeeper, written notice of the subpoena 
  8.9   shall be mailed to the person who is the subject of the 
  8.10  subpoenaed material at the person's last known address within 
  8.11  three days of the day the subpoena is served.  This notice 
  8.12  provision does not apply if there is reasonable cause to believe 
  8.13  the giving of the notice may lead to interference with the 
  8.14  production of the subpoenaed documents. 
  8.15     (d) A person served with a subpoena may make a written 
  8.16  objection to the public authority or court before the time 
  8.17  specified in the subpoena for compliance.  The public authority 
  8.18  or the court shall cancel or modify the subpoena, if 
  8.19  appropriate.  The public authority shall pay the reasonable 
  8.20  costs of producing the documents, if requested. 
  8.21     (e) Subpoenas are enforceable in the same manner as 
  8.22  subpoenas of the district court.  Upon motion of the county 
  8.23  attorney, the court may issue an order directing the production 
  8.24  of the records.  Failure to comply with the court order may 
  8.25  subject the person who fails to comply to civil or criminal 
  8.26  contempt of court. 
  8.27     (f) The administrative actions under this subdivision are 
  8.28  subject to due process safeguards, including requirements for 
  8.29  notice, opportunity to contest the action, and opportunity to 
  8.30  appeal the order to the judge, judicial officer, or child 
  8.31  support magistrate. 
  8.32     Sec. 9.  Minnesota Statutes 2000, section 518.575, 
  8.33  subdivision 1, is amended to read: 
  8.34     Subdivision 1.  [MAKING NAMES PUBLIC.] At least once each 
  8.35  year, the commissioner of human services, in consultation with 
  8.36  the attorney general, shall may publish a list of the names and 
  9.1   other identifying information of no more than 25 persons who (1) 
  9.2   are child support obligors, (2) are at least $10,000 in arrears, 
  9.3   (3) are not in compliance with a written payment agreement 
  9.4   regarding both current support and arrearages approved by the 
  9.5   court, a child support magistrate, or the public authority, (4) 
  9.6   cannot currently be located by the public authority for the 
  9.7   purposes of enforcing a support order, and (5) have not made a 
  9.8   support payment except tax intercept payments, in the preceding 
  9.9   12 months. 
  9.10     Identifying information may include the obligor's name, 
  9.11  last known address, amount owed, date of birth, photograph, the 
  9.12  number of children for whom support is owed, and any additional 
  9.13  information about the obligor that would assist in identifying 
  9.14  or locating the obligor.  The commissioner and attorney general 
  9.15  may use posters, media presentations, electronic technology, and 
  9.16  other means that the commissioner and attorney general determine 
  9.17  are appropriate for dissemination of the information, including 
  9.18  publication on the Internet.  The commissioner and attorney 
  9.19  general may make any or all of the identifying information 
  9.20  regarding these persons public.  Information regarding an 
  9.21  obligor who meets the criteria in this subdivision will only be 
  9.22  made public subsequent to that person's selection by the 
  9.23  commissioner and attorney general. 
  9.24     Before making public the name of the obligor, the 
  9.25  department of human services shall send a notice to the 
  9.26  obligor's last known address which states the department's 
  9.27  intention to make public information on the obligor.  The notice 
  9.28  must also provide an opportunity to have the obligor's name 
  9.29  removed from the list by paying the arrearage or by entering 
  9.30  into an agreement to pay the arrearage, or by providing 
  9.31  information to the public authority that there is good cause not 
  9.32  to make the information public.  The notice must include the 
  9.33  final date when the payment or agreement can be accepted. 
  9.34     The department of human services shall obtain the written 
  9.35  consent of the obligee to make the name of the obligor public. 
  9.36     Sec. 10.  Minnesota Statutes 2000, section 518.5851, is 
 10.1   amended by adding a subdivision to read: 
 10.2      Subd. 7.  [UNCLAIMED SUPPORT FUNDS.] "Unclaimed support 
 10.3   funds" means any support payments collected by the public 
 10.4   authority from the obligor, which have not been disbursed to the 
 10.5   obligee or public authority. 
 10.6      Sec. 11.  Minnesota Statutes 2000, section 518.5853, is 
 10.7   amended by adding a subdivision to read: 
 10.8      Subd. 12.  [UNCLAIMED SUPPORT FUNDS.] (a) If support 
 10.9   payments have not been disbursed to an obligee because the 
 10.10  obligee is not located, the public authority shall continue 
 10.11  locate efforts for one year from the date the public authority 
 10.12  determines that the obligee is not located. 
 10.13     (b) If the public authority is unable to locate the obligee 
 10.14  after one year, the public authority shall mail a written notice 
 10.15  to the obligee at the obligee's last known address.  The notice 
 10.16  shall give the obligee 60 days to contact the public authority.  
 10.17  If the obligee does not contact the public authority within 60 
 10.18  days from the date of notice, the public authority shall: 
 10.19     (1) close the nonpublic assistance portion of the case; 
 10.20     (2) disburse unclaimed support funds to pay public 
 10.21  assistance arrears.  If public assistance arrears remain after 
 10.22  disbursing the unclaimed support funds, the public authority may 
 10.23  continue enforcement and collection of child support until all 
 10.24  public assistance arrears have been paid.  If there are no 
 10.25  public assistance arrears, or unclaimed support funds remain 
 10.26  after paying public assistance arrears, remaining unclaimed 
 10.27  support funds shall be returned to the obligor; and 
 10.28     (3) mail, when all public assistance arrears have been paid 
 10.29  the public authority, to the obligor at the obligor's last known 
 10.30  address a written notice of termination of income withholding 
 10.31  and case closure due to the public authority's inability to 
 10.32  locate the obligee. 
 10.33     (c) If the obligor is not located when attempting to return 
 10.34  unclaimed support funds, the public authority shall continue 
 10.35  locate efforts for one year from the date the public authority 
 10.36  determines that the obligor is not located.  If the public 
 11.1   authority is unable to locate the obligor after one year, the 
 11.2   funds shall be treated as unclaimed property according to 
 11.3   federal law and chapter 345. 
 11.4      Sec. 12.  Minnesota Statutes 2000, section 518.6195, is 
 11.5   amended to read: 
 11.6      518.6195 [COLLECTION; ARREARS ONLY.] 
 11.7      (a) Remedies available for the collection and enforcement 
 11.8   of support in this chapter and chapters 256, 257, and 518C also 
 11.9   apply to cases in which the child or children for whom support 
 11.10  is owed are emancipated and the obligor owes past support or has 
 11.11  an accumulated arrearage as of the date of the youngest child's 
 11.12  emancipation.  Child support arrearages under this section 
 11.13  include arrearages for child support, medical support, child 
 11.14  care, pregnancy and birth expenses, and unreimbursed medical 
 11.15  expenses as defined in section 518.171. 
 11.16     (b) This section applies retroactively to any support 
 11.17  arrearage that accrued on or before the date of enactment and to 
 11.18  all arrearages accruing after the date of enactment. 
 11.19     (c) Past support or pregnancy and confinement expenses 
 11.20  ordered for which the obligor has specific court ordered terms 
 11.21  for repayment may not be enforced using drivers' and 
 11.22  occupational or professional license suspension, credit bureau 
 11.23  reporting, and additional income withholding under section 
 11.24  518.6111, subdivision 10, paragraph (a), unless the obligor 
 11.25  fails to comply with the terms of the court order for repayment. 
 11.26     (d) If an arrearage exists at the time a support order 
 11.27  would otherwise terminate and section 518.6111, subdivision 10, 
 11.28  paragraph (c), does not apply to this section, the arrearage 
 11.29  shall be repaid in an amount equal to the current support order 
 11.30  plus an additional 20 percent of the monthly child support 
 11.31  obligation until all arrears have been paid in full, absent a 
 11.32  court order to the contrary. 
 11.33     (e) If an arrearage exists according to a support order 
 11.34  which fails to establish a monthly support obligation in a 
 11.35  specific dollar amount, the public authority, if it provides 
 11.36  child support services, or the obligee, may establish a payment 
 12.1   agreement which shall equal what the obligor would pay for 
 12.2   current support after application of section 518.551, plus an 
 12.3   additional 20 percent of the current support obligation, until 
 12.4   all arrears have been paid in full.  If the obligor fails to 
 12.5   enter into or comply with a payment agreement, the public 
 12.6   authority, if it provides child support services, or the 
 12.7   obligee, may move the district court or child support 
 12.8   magistrate, if section 484.702 applies, for an order 
 12.9   establishing repayment terms.  It shall be presumed that the 
 12.10  obligor is able to repay arrears at a rate which at a minimum 
 12.11  equals a current monthly obligation after application of section 
 12.12  518.551, plus an additional 20 percent of the current monthly 
 12.13  obligation. 
 12.14     Sec. 13.  Minnesota Statutes 2000, section 518.64, 
 12.15  subdivision 2, is amended to read: 
 12.16     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
 12.17  respecting maintenance or support may be modified upon a showing 
 12.18  of one or more of the following:  (1) substantially increased or 
 12.19  decreased earnings of a party; (2) substantially increased or 
 12.20  decreased need of a party or the child or children that are the 
 12.21  subject of these proceedings; (3) receipt of assistance under 
 12.22  the AFDC program formerly codified under sections 256.72 to 
 12.23  256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
 12.24  change in the cost of living for either party as measured by the 
 12.25  federal bureau of statistics, any of which makes the terms 
 12.26  unreasonable and unfair; (5) extraordinary medical expenses of 
 12.27  the child not provided for under section 518.171; or (6) the 
 12.28  addition of work-related or education-related child care 
 12.29  expenses of the obligee or a substantial increase or decrease in 
 12.30  existing work-related or education-related child care expenses.  
 12.31     On a motion to modify support, the needs of any child the 
 12.32  obligor has after the entry of the support order that is the 
 12.33  subject of a modification motion shall be considered as provided 
 12.34  by section 518.551, subdivision 5f. 
 12.35     (b) It is presumed that there has been a substantial change 
 12.36  in circumstances under paragraph (a) and the terms of a current 
 13.1   support order shall be rebuttably presumed to be unreasonable 
 13.2   and unfair if: 
 13.3      (1) the application of the child support guidelines in 
 13.4   section 518.551, subdivision 5, to the current circumstances of 
 13.5   the parties results in a calculated court order that is at least 
 13.6   20 percent and at least $50 per month higher or lower than the 
 13.7   current support order; 
 13.8      (2) the medical support provisions of the order established 
 13.9   under section 518.171 are not enforceable by the public 
 13.10  authority or the custodial parent; 
 13.11     (3) health coverage ordered under section 518.171 is not 
 13.12  available to the child for whom the order is established by the 
 13.13  parent ordered to provide; or 
 13.14     (4) the existing support obligation is in the form of a 
 13.15  statement of percentage and not a specific dollar amount.  
 13.16     (c) On a motion for modification of maintenance, including 
 13.17  a motion for the extension of the duration of a maintenance 
 13.18  award, the court shall apply, in addition to all other relevant 
 13.19  factors, the factors for an award of maintenance under section 
 13.20  518.552 that exist at the time of the motion.  On a motion for 
 13.21  modification of support, the court:  
 13.22     (1) shall apply section 518.551, subdivision 5, and shall 
 13.23  not consider the financial circumstances of each party's spouse, 
 13.24  if any; and 
 13.25     (2) shall not consider compensation received by a party for 
 13.26  employment in excess of a 40-hour work week, provided that the 
 13.27  party demonstrates, and the court finds, that: 
 13.28     (i) the excess employment began after entry of the existing 
 13.29  support order; 
 13.30     (ii) the excess employment is voluntary and not a condition 
 13.31  of employment; 
 13.32     (iii) the excess employment is in the nature of additional, 
 13.33  part-time employment, or overtime employment compensable by the 
 13.34  hour or fractions of an hour; 
 13.35     (iv) the party's compensation structure has not been 
 13.36  changed for the purpose of affecting a support or maintenance 
 14.1   obligation; 
 14.2      (v) in the case of an obligor, current child support 
 14.3   payments are at least equal to the guidelines amount based on 
 14.4   income not excluded under this clause; and 
 14.5      (vi) in the case of an obligor who is in arrears in child 
 14.6   support payments to the obligee, any net income from excess 
 14.7   employment must be used to pay the arrearages until the 
 14.8   arrearages are paid in full. 
 14.9      (d) A modification of support or maintenance, including 
 14.10  interest that accrued pursuant to section 548.091, may be made 
 14.11  retroactive only with respect to any period during which the 
 14.12  petitioning party has pending a motion for modification but only 
 14.13  from the date of service of notice of the motion on the 
 14.14  responding party and on the public authority if public 
 14.15  assistance is being furnished or the county attorney is the 
 14.16  attorney of record.  However, modification may be applied to an 
 14.17  earlier period if the court makes express findings that:  
 14.18     (1) the party seeking modification was precluded from 
 14.19  serving a motion by reason of a significant physical or mental 
 14.20  disability, a material misrepresentation of another party, or 
 14.21  fraud upon the court and that the party seeking modification, 
 14.22  when no longer precluded, promptly served a motion; 
 14.23     (2) the party seeking modification was a recipient of 
 14.24  federal Supplemental Security Income (SSI), Title II Older 
 14.25  Americans, Survivor's Disability Insurance (OASDI), other 
 14.26  disability benefits, or public assistance based upon need during 
 14.27  the period for which retroactive modification is sought; or 
 14.28     (3) the order for which the party seeks amendment was 
 14.29  entered by default, the party shows good cause for not 
 14.30  appearing, and the record contains no factual evidence, or 
 14.31  clearly erroneous evidence regarding the individual obligor's 
 14.32  ability to pay.; or 
 14.33     (4) the party seeking modification was institutionalized or 
 14.34  incarcerated for an offense other than nonsupport of a child 
 14.35  during the period for which retroactive modification is sought 
 14.36  and lacked the financial ability to pay the support ordered 
 15.1   during that time period.  In determining whether to allow the 
 15.2   retroactive modification, the court shall consider whether and 
 15.3   when a request was made to the public authority for support 
 15.4   modification.  
 15.5   The court may provide that a reduction in the amount allocated 
 15.6   for child care expenses based on a substantial decrease in the 
 15.7   expenses is effective as of the date the expenses decreased. 
 15.8      (e) Except for an award of the right of occupancy of the 
 15.9   homestead, provided in section 518.63, all divisions of real and 
 15.10  personal property provided by section 518.58 shall be final, and 
 15.11  may be revoked or modified only where the court finds the 
 15.12  existence of conditions that justify reopening a judgment under 
 15.13  the laws of this state, including motions under section 518.145, 
 15.14  subdivision 2.  The court may impose a lien or charge on the 
 15.15  divided property at any time while the property, or subsequently 
 15.16  acquired property, is owned by the parties or either of them, 
 15.17  for the payment of maintenance or support money, or may 
 15.18  sequester the property as is provided by section 518.24. 
 15.19     (f) The court need not hold an evidentiary hearing on a 
 15.20  motion for modification of maintenance or support. 
 15.21     (g) Section 518.14 shall govern the award of attorney fees 
 15.22  for motions brought under this subdivision. 
 15.23     Sec. 14.  Minnesota Statutes 2000, section 518.641, 
 15.24  subdivision 1, is amended to read: 
 15.25     Subdivision 1.  [REQUIREMENT.] (a) An order for 
 15.26  establishing, modifying, or enforcing maintenance or child 
 15.27  support shall provide for a biennial adjustment in the amount to 
 15.28  be paid based on a change in the cost of living.  An order that 
 15.29  provides for a cost-of-living adjustment shall specify the 
 15.30  cost-of-living index to be applied and the date on which the 
 15.31  cost-of-living adjustment shall become effective.  The court may 
 15.32  use the consumer price index for all urban consumers, 
 15.33  Minneapolis-St. Paul (CPI-U), the consumer price index for wage 
 15.34  earners and clerical, Minneapolis-St. Paul (CPI-W), or another 
 15.35  cost-of-living index published by the department of labor which 
 15.36  it specifically finds is more appropriate.  Cost-of-living 
 16.1   increases under this section shall be compounded.  The court may 
 16.2   also increase the amount by more than the cost-of-living 
 16.3   adjustment by agreement of the parties or by making further 
 16.4   findings.  
 16.5      (b) The adjustment becomes effective on the first of May of 
 16.6   the year in which it is made, for cases in which payment is made 
 16.7   to the public authority.  For cases in which payment is not made 
 16.8   to the public authority, application for an adjustment may be 
 16.9   made in any month but no application for an adjustment may be 
 16.10  made sooner than two years after the date of the dissolution 
 16.11  decree.  A court may waive the requirement of the cost-of-living 
 16.12  clause if it expressly finds that the obligor's occupation or 
 16.13  income, or both, does not provide for cost-of-living adjustment 
 16.14  or that the order for maintenance or child support has a 
 16.15  provision such as a step increase that has the effect of a 
 16.16  cost-of-living clause.  The court may waive a cost-of-living 
 16.17  adjustment in a maintenance order if the parties so agree in 
 16.18  writing.  The commissioner of human services may promulgate 
 16.19  rules for child support adjustments under this section in 
 16.20  accordance with the rulemaking provisions of chapter 14.  Notice 
 16.21  of this statute must comply with section 518.68, subdivision 2. 
 16.22     Sec. 15.  Minnesota Statutes 2000, section 518.641, 
 16.23  subdivision 2, is amended to read: 
 16.24     Subd. 2.  [CONDITIONS NOTICE.] No adjustment under this 
 16.25  section may be made unless the order provides for it and until 
 16.26  the following conditions are met:  
 16.27     (a) the obligee serves notice of the application for 
 16.28  adjustment by mail on the obligor at the obligor's last known 
 16.29  address at least 20 days before the effective date of the 
 16.30  adjustment; 
 16.31     (b) the notice to the obligor informs the obligor of the 
 16.32  date on which the adjustment in payments will become effective; 
 16.33     (c) after receipt of notice and before the effective day of 
 16.34  the adjustment, the obligor fails to request a hearing on the 
 16.35  issue of whether the adjustment should take effect, and ex 
 16.36  parte, to stay imposition of the adjustment pending outcome of 
 17.1   the hearing; or 
 17.2      (d) the public authority the public authority or the 
 17.3   obligee, if the obligee is requesting the cost-of-living 
 17.4   adjustment, sends notice of its application for the intended 
 17.5   adjustment to the obligor at the obligor's last known address at 
 17.6   least 20 days before the effective date of the adjustment, and. 
 17.7   The notice informs shall inform the obligor of the date on which 
 17.8   the adjustment will become effective and the procedures for 
 17.9   contesting the adjustment according to section 484.702. 
 17.10     Sec. 16.  Minnesota Statutes 2000, section 518.641, is 
 17.11  amended by adding a subdivision to read: 
 17.12     Subd. 2a.  [PROCEDURES FOR CONTESTING ADJUSTMENT.] (a) To 
 17.13  contest cost-of-living adjustments initiated by the public 
 17.14  authority or an obligee who has applied for or is receiving 
 17.15  child support and maintenance collection services from the 
 17.16  public authority, other than income withholding only services, 
 17.17  the obligor, before the effective date of the adjustment, must: 
 17.18     (1) file a motion contesting the cost-of-living adjustment 
 17.19  with the court administrator; and 
 17.20     (2) serve the motion by first-class mail on the public 
 17.21  authority and the obligee. 
 17.22  The hearing shall take place in the expedited child support 
 17.23  process as governed by section 484.702. 
 17.24     (b) To contest cost-of-living adjustments initiated by an 
 17.25  obligee who is not receiving child support and maintenance 
 17.26  collection services from the public authority, or for an obligee 
 17.27  who receives income withholding only services from the public 
 17.28  authority, the obligor must, before the effective date of the 
 17.29  adjustment: 
 17.30     (1) file a motion contesting the cost-of-living adjustment 
 17.31  with the court administrator; and 
 17.32     (2) serve the motion by first-class mail on the obligee. 
 17.33  The hearing shall take place in district court. 
 17.34     (c) Upon receipt of a motion contesting the cost-of-living 
 17.35  adjustment, the cost-of-living adjustment shall be stayed 
 17.36  pending further order of the court. 
 18.1      (d) The court administrator shall make available pro se 
 18.2   motion forms for contesting a cost-of-living adjustment under 
 18.3   this subdivision. 
 18.4      Sec. 17.  Minnesota Statutes 2000, section 518.641, 
 18.5   subdivision 3, is amended to read: 
 18.6      Subd. 3.  [RESULT OF HEARING.] If, at a hearing pursuant to 
 18.7   this section, the obligor establishes an insufficient cost of 
 18.8   living or other increase in income that prevents fulfillment of 
 18.9   the adjusted maintenance or child support obligation, the 
 18.10  court or child support magistrate may direct that all or part of 
 18.11  the adjustment not take effect.  If, at the hearing, the obligor 
 18.12  does not establish this insufficient increase in income, the 
 18.13  adjustment shall take effect as of the date it would have become 
 18.14  effective had no hearing been requested. 
 18.15     Sec. 18.  Minnesota Statutes 2000, section 548.091, 
 18.16  subdivision 1a, is amended to read: 
 18.17     Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
 18.18  (a) Any payment or installment of support required by a judgment 
 18.19  or decree of dissolution or legal separation, determination of 
 18.20  parentage, an order under chapter 518C, an order under section 
 18.21  256.87, or an order under section 260B.331 or 260C.331, that is 
 18.22  not paid or withheld from the obligor's income as required under 
 18.23  section 518.6111, or which is ordered as child support by 
 18.24  judgment, decree, or order by a court in any other state, is a 
 18.25  judgment by operation of law on and after the date it is due, is 
 18.26  entitled to full faith and credit in this state and any other 
 18.27  state, and shall be entered and docketed by the court 
 18.28  administrator on the filing of affidavits as provided in 
 18.29  subdivision 2a.  Except as otherwise provided by paragraph (b), 
 18.30  interest accrues from the date the unpaid amount due is greater 
 18.31  than the current support due at the annual rate provided in 
 18.32  section 549.09, subdivision 1, plus two percent, not to exceed 
 18.33  an annual rate of 18 percent.  A payment or installment of 
 18.34  support that becomes a judgment by operation of law between the 
 18.35  date on which a party served notice of a motion for modification 
 18.36  under section 518.64, subdivision 2, and the date of the court's 
 19.1   order on modification may be modified under that subdivision. 
 19.2      (b) Notwithstanding the provisions of section 549.09, upon 
 19.3   motion to the court and upon proof by the obligor of 36 
 19.4   consecutive months of complete and timely payments of both 
 19.5   current support and court-ordered paybacks of a child support 
 19.6   debt or arrearage, the court may order interest on the remaining 
 19.7   debt or arrearage to stop accruing.  Timely payments are those 
 19.8   made in the month in which they are due.  If, after that time, 
 19.9   the obligor fails to make complete and timely payments of both 
 19.10  current support and court-ordered paybacks of child support debt 
 19.11  or arrearage, the public authority or the obligee may move the 
 19.12  court for the reinstatement of interest as of the month in which 
 19.13  the obligor ceased making complete and timely payments. 
 19.14     The court shall provide copies of all orders issued under 
 19.15  this section to the public authority.  The commissioner of human 
 19.16  services shall prepare and make available to the court and the 
 19.17  parties forms to be submitted by the parties in support of a 
 19.18  motion under this paragraph. 
 19.19     (c) Notwithstanding the provisions of section 549.09, upon 
 19.20  motion to the court, the court may order interest on a child 
 19.21  support debt to stop accruing where the court finds that the 
 19.22  obligor is: 
 19.23     (1) unable to pay support because of a significant physical 
 19.24  or mental disability; or 
 19.25     (2) a recipient of Supplemental Security Income (SSI), 
 19.26  Title II Older Americans Survivor's Disability Insurance 
 19.27  (OASDI), other disability benefits, or public assistance based 
 19.28  upon need; or 
 19.29     (3) institutionalized or incarcerated for at least 30 days 
 19.30  for an offense other than nonsupport of the child or children 
 19.31  involved, and is otherwise financially unable to pay support. 
 19.32     Sec. 19.  [REPEALER.] 
 19.33     Minnesota Statutes 2000, section 518.641, subdivisions 4 
 19.34  and 5, are repealed.