1.1                          A bill for an act
  1.2             relating to child support; expanding the medical 
  1.3             support bonus incentives program to all cases for 
  1.4             which the county agency provides child support 
  1.5             enforcement services; reforming and recodifying the 
  1.6             law relating to medical support; reforming and 
  1.7             recodifying the law relating to child support; 
  1.8             providing for cost-of-living adjustments in medical 
  1.9             support orders; amending Minnesota Statutes 2000, 
  1.10            sections 256.9791; 256L.04, by adding a subdivision; 
  1.11            256L.15, subdivision 2; 518.54, subdivisions 1, 4a, 6, 
  1.12            8, and by adding subdivisions; 518.551, subdivision 
  1.13            5c; 518.553; 518.6111, subdivision 1; 518.64, 
  1.14            subdivision 2; and 518.641, subdivisions 1, 3, 4, and 
  1.15            5; proposing coding for new law in Minnesota Statutes, 
  1.16            chapter 518; repealing Minnesota Statutes 2000, 
  1.17            sections 518.171; and 518.551, subdivisions 1, 5, 5a, 
  1.18            5b, 5e, 5f, 6, 7, 9, and 11. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 2000, section 256.9791, is 
  1.21  amended to read: 
  1.22     256.9791 [MEDICAL SUPPORT BONUS INCENTIVES.] 
  1.23     Subdivision 1.  [BONUS INCENTIVE.] (a) A bonus incentive 
  1.24  program is created to increase the identification and 
  1.25  enforcement by county agencies of dependent health insurance 
  1.26  coverage for persons who are receiving medical assistance under 
  1.27  section 256B.055 and children and family units for whom the 
  1.28  county agency is providing child support enforcement services.  
  1.29     (b) The bonus shall be awarded to a county child support 
  1.30  agency for each person child for whom coverage is identified and 
  1.31  enforced by the child support enforcement program when the 
  1.32  obligor is under a court order to provide dependent health 
  2.1   insurance coverage is in effect.  
  2.2      (c) Bonus incentive funds under this section must be 
  2.3   reinvested in the county child support enforcement program and a 
  2.4   county may not reduce funding of the child support enforcement 
  2.5   program by the amount of the bonus earned. 
  2.6      Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
  2.7   the following definitions apply.  
  2.8      (a) "Case" means a family unit that is receiving medical 
  2.9   assistance under section 256B.055 and for whom the county agency 
  2.10  is providing child support enforcement services.  
  2.11     (b) "Commissioner" means the commissioner of the department 
  2.12  of human services.  
  2.13     (c) "County agency" means the county child support 
  2.14  enforcement agency.  
  2.15     (d) "Coverage" means initial dependent health insurance 
  2.16  benefits for a case or individual member child of a case, or 
  2.17  medical assistance under section 256B.055 and MinnesotaCare 
  2.18  under section 256L.07.  
  2.19     (e) "Enforce" or "enforcement" means obtaining proof of 
  2.20  current or future dependent health insurance coverage through an 
  2.21  overt act by the county agency. 
  2.22     (f) "Enforceable order" means a child support court order 
  2.23  containing the statutory language in section 518.171 518.1711 or 
  2.24  other language ordering an obligor a parent to provide dependent 
  2.25  health insurance coverage.  
  2.26     (g) "Identify" or "identification" means obtaining proof of 
  2.27  dependent health insurance coverage through an overt act by the 
  2.28  county agency.  
  2.29     Subd. 3.  [ELIGIBILITY; REPORTING REQUIREMENTS.] (a) In 
  2.30  order for a county to be eligible to claim a bonus incentive 
  2.31  payment, the county agency must provide the required information 
  2.32  for each public assistance case no later than June 30 of each 
  2.33  year to determine eligibility.  The public authority shall use 
  2.34  the information to establish for each county the number of cases 
  2.35  in which (1) the court has established an obligation for 
  2.36  coverage by the obligor, and (2) coverage was in effect as of 
  3.1   June 30.  
  3.2      (b) A county that fails to provide the required information 
  3.3   by June 30 of each fiscal year is not eligible for any bonus 
  3.4   payments under this section for that fiscal year. 
  3.5      Subd. 4.  [RATE OF BONUS INCENTIVE.] The rate of the bonus 
  3.6   incentive shall be determined according to paragraph (a). 
  3.7      (a) When a county agency has identified or enforced 
  3.8   coverage, the county shall receive $50 for each additional 
  3.9   person child for whom coverage is identified or enforced.  
  3.10     (b) Bonus payments according to paragraph (a) are limited 
  3.11  to one bonus for each covered person child each time the county 
  3.12  agency identifies or enforces previously unidentified 
  3.13  health insurance coverage and apply only to coverage identified 
  3.14  or enforced after July 1, 1990. 
  3.15     Subd. 5.  [CLAIMS FOR BONUS INCENTIVE.] (a) Beginning July 
  3.16  1, 1990, county agencies shall file a claim for a medical 
  3.17  support bonus payment by reporting to the commissioner the 
  3.18  following information for each case where dependent health 
  3.19  insurance coverage is identified or enforced as a result of an 
  3.20  overt act of the county agency: 
  3.21     (1) child support enforcement system case number or county 
  3.22  specific case number; 
  3.23     (2) names and dates of birth for each person child covered; 
  3.24  and 
  3.25     (3) the effective date of coverage. 
  3.26     (b) The report must be made upon enrollment in coverage but 
  3.27  no later than September 30 for coverage identified or 
  3.28  established during the preceding fiscal year. 
  3.29     (c) The county agency making the initial contact resulting 
  3.30  in the establishment of coverage is the county agency entitled 
  3.31  to claim the bonus incentive even if the case is transferred to 
  3.32  another county agency prior to the time coverage is established. 
  3.33     (d) Disputed claims must be submitted to the commissioner 
  3.34  and the commissioner's decision is final. 
  3.35     Subd. 6.  [DISTRIBUTION.] (a) Bonus incentives must be 
  3.36  issued to the county agency quarterly, within 45 days after the 
  4.1   last day of each quarter for which a bonus incentive is being 
  4.2   claimed, and must be paid up to the limit of the appropriation 
  4.3   in the order in which claims are received.  
  4.4      (b) Total bonus incentives must be computed by multiplying 
  4.5   the number of persons children included in claims submitted in 
  4.6   accordance with under this section by the applicable bonus 
  4.7   payment as determined in subdivision 4. 
  4.8      (c) The county agency must repay any bonus erroneously 
  4.9   issued. 
  4.10     (d) A county agency must maintain a record of bonus 
  4.11  incentives claimed and received for each quarter.  
  4.12     Sec. 2.  Minnesota Statutes 2000, section 256L.04, is 
  4.13  amended by adding a subdivision to read: 
  4.14     Subd. 14.  [COURT ORDERED APPLICATIONS.] Notwithstanding 
  4.15  subdivision 7a, a child or parent ordered to apply for public 
  4.16  health care coverage under section 518.1711, subdivision 4, 
  4.17  paragraph (e), must be enrolled regardless of the income limit 
  4.18  eligibility. 
  4.19     Sec. 3.  Minnesota Statutes 2000, section 256L.15, 
  4.20  subdivision 2, is amended to read: 
  4.21     Subd. 2.  [SLIDING FEE SCALE TO DETERMINE PERCENTAGE OF 
  4.22  GROSS INDIVIDUAL OR FAMILY INCOME.] (a) The commissioner shall 
  4.23  establish a sliding fee scale to determine the percentage of 
  4.24  gross individual or family income that households at different 
  4.25  income levels must pay to obtain coverage through the 
  4.26  MinnesotaCare program.  The sliding fee scale must be based on 
  4.27  the enrollee's gross individual or family income.  The sliding 
  4.28  fee scale must contain separate tables based on enrollment of 
  4.29  one, two, or three or more persons.  The sliding fee scale 
  4.30  begins with a premium of 1.5 percent of gross individual or 
  4.31  family income for individuals or families with incomes below the 
  4.32  limits for the medical assistance program for families and 
  4.33  children in effect on January 1, 1999, and proceeds through the 
  4.34  following evenly spaced steps:  1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 
  4.35  7.4, and 8.8 percent.  These percentages are matched to evenly 
  4.36  spaced income steps ranging from the medical assistance income 
  5.1   limit for families and children in effect on January 1, 1999, to 
  5.2   275 percent of the federal poverty guidelines for the applicable 
  5.3   family size, up to a family size of five.  The sliding fee scale 
  5.4   for a family of five must be used for families of more than 
  5.5   five.  The sliding fee scale and percentages are not subject to 
  5.6   the provisions of chapter 14.  If a family or individual reports 
  5.7   increased income after enrollment, premiums shall not be 
  5.8   adjusted until eligibility renewal. 
  5.9      (b) Enrolled individuals and families whose gross annual 
  5.10  income increases above 275 percent of the federal poverty 
  5.11  guideline shall pay the maximum premium.  The maximum premium is 
  5.12  defined as a base charge for one, two, or three or more 
  5.13  enrollees so that if all MinnesotaCare cases paid the maximum 
  5.14  premium, the total revenue would equal the total cost of 
  5.15  MinnesotaCare medical coverage and administration.  In this 
  5.16  calculation, administrative costs shall be assumed to equal ten 
  5.17  percent of the total.  The costs of medical coverage for 
  5.18  pregnant women and children under age two and the enrollees in 
  5.19  these groups shall be excluded from the total.  The maximum 
  5.20  premium for two enrollees shall be twice the maximum premium for 
  5.21  one, and the maximum premium for three or more enrollees shall 
  5.22  be three times the maximum premium for one. 
  5.23     (c) The parent who enrolls a child under section 256L.04, 
  5.24  subdivision 14, who has income in excess of the income 
  5.25  eligibility shall pay the maximum premium. 
  5.26     Sec. 4.  [518.1711] [MEDICAL SUPPORT.] 
  5.27     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  5.28  section and sections 518.54 to 518.66, the following terms have 
  5.29  the meanings provided in this subdivision unless otherwise 
  5.30  stated: 
  5.31     (a) "Health care coverage" means health care benefits that 
  5.32  are provided by a health plan.  Health care coverage does not 
  5.33  include any form of medical assistance under chapter 256B or 
  5.34  MinnesotaCare under chapter 256L. 
  5.35     (b) "Health carrier" means a carrier as defined in sections 
  5.36  62A.011, subdivision 2, and 62L.02, subdivision 16. 
  6.1      (c) "Health plan" means a plan meeting the definition under 
  6.2   section 62A.011, subdivision 3, or a policy, contract, or 
  6.3   certificate issued by a community integrated service network 
  6.4   licensed under chapter 62N and includes plans:  (1) provided on 
  6.5   an individual and group basis, (2) provided by an employer or 
  6.6   union, (3) purchased in the private market, (4) available to a 
  6.7   person eligible to carry insurance for the child, and (5) 
  6.8   provided through a health plan governed under the federal 
  6.9   Employee Retirement Income Security Act of 1974 (ERISA), United 
  6.10  States Code, title 29, section 1169(a).  "Health plan" includes 
  6.11  a plan providing for dependent-only, dental, or vision coverage 
  6.12  and a plan provided through a party's spouse or parent. 
  6.13     (d) "Medical support" means providing health care coverage 
  6.14  for a child by carrying health care coverage for the child or by 
  6.15  contributing to the cost of health care coverage, public 
  6.16  coverage, unreimbursed medical expenses, and uninsured medical 
  6.17  expenses of the child and includes an amount ordered under 
  6.18  subdivision 4, paragraph (e). 
  6.19     (e) "National medical support notice" is an administrative 
  6.20  notice issued by the public authority to enforce medical support 
  6.21  provisions of a support order under the Code of Federal 
  6.22  Regulations. 
  6.23     (f) "Public coverage" means health care benefits provided 
  6.24  by any form of medical assistance under chapter 256B or 
  6.25  MinnesotaCare under chapter 256L. 
  6.26     (g) "Uninsured medical expenses" means a child's reasonable 
  6.27  and necessary health-related expenses if the child is not 
  6.28  covered by a health plan or public coverage when the expenses 
  6.29  are incurred. 
  6.30     (h) "Unreimbursed medical expenses" means a child's 
  6.31  reasonable and necessary health-related expenses if a child is 
  6.32  covered by a health plan or public coverage and the plan or 
  6.33  coverage does not pay for the total cost of the expenses when 
  6.34  the expenses are incurred.  Unreimbursed medical expenses do not 
  6.35  include the cost of premiums.  Unreimbursed medical expenses 
  6.36  include, but are not limited to, deductibles, copayments, and 
  7.1   expenses for orthodontia, prescription eye glasses and contact 
  7.2   lenses, and over-the-counter medicine. 
  7.3      Subd. 2.  [ORDER.] (a) A completed national medical support 
  7.4   notice issued by the public authority or a court order that 
  7.5   complies with this section is a qualified medical child support 
  7.6   order under the federal Employee Retirement Income Security Act 
  7.7   of 1974 (ERISA), United States Code, title 29, section 1169(a). 
  7.8      (b) Every order addressing child support must state: 
  7.9      (1) the names, last known addresses, and social security 
  7.10  numbers of the parents and the child that is a subject of the 
  7.11  order unless the court prohibits the inclusion of an address or 
  7.12  social security number and orders the parent to provide the 
  7.13  address and social security number to the administrator of the 
  7.14  health plan; and 
  7.15     (2) whether appropriate health care coverage for the child 
  7.16  is available and, if so state: 
  7.17     (i) which party must carry health care coverage; 
  7.18     (ii) the cost of premiums and how the cost is allocated 
  7.19  between the parties; 
  7.20     (iii) how unreimbursed expenses will be allocated to and 
  7.21  collected by the parties; and 
  7.22     (iv) the circumstances, if any, under which the obligation 
  7.23  to provide health care coverage for the child will shift from 
  7.24  one party to the other; or 
  7.25     (3) if appropriate health care coverage is not available 
  7.26  for the child, whether a contribution for medical support is 
  7.27  required; and 
  7.28     (4) whether the amount ordered for medical support is 
  7.29  subject to a cost-of-living adjustment under section 518.641, 
  7.30  subdivision 5. 
  7.31     Subd. 3.  [DETERMINATION OF APPROPRIATE COVERAGE.] (a) In 
  7.32  determining whether a party has appropriate health care coverage 
  7.33  for the child, the court must evaluate the health plan using the 
  7.34  following factors: 
  7.35     (1) accessible coverage.  Dependent health care coverage is 
  7.36  accessible if the covered child can obtain services from a 
  8.1   health plan provider with reasonable effort by the custodial 
  8.2   parent.  Health care coverage is presumed accessible if: 
  8.3      (i) primary care coverage is available within 30 minutes or 
  8.4   30 miles of the child's residence and specialty care coverage is 
  8.5   available within 60 minutes or 60 miles of the child's 
  8.6   residence; 
  8.7      (ii) the coverage is available through an employer and the 
  8.8   employee can be expected to remain employed for a reasonable 
  8.9   amount of time; and 
  8.10     (iii) no preexisting conditions exist to delay coverage 
  8.11  unduly; 
  8.12     (2) comprehensive coverage.  Dependent health care coverage 
  8.13  is comprehensive if it includes, at a minimum, medical and 
  8.14  hospital coverage and provides for preventive, emergency, acute, 
  8.15  and chronic care.  If both parties have health care coverage 
  8.16  that meets the minimum requirements, the court must determine 
  8.17  which health care coverage is more comprehensive by considering 
  8.18  whether the coverage includes: 
  8.19     (i) basic dental coverage; 
  8.20     (ii) orthodontics; 
  8.21     (iii) eyeglasses; 
  8.22     (iv) contact lenses; 
  8.23     (v) mental health services; or 
  8.24     (vi) substance abuse treatment; 
  8.25     (3) affordable coverage.  Dependent health care coverage is 
  8.26  affordable if a party's gross income adjusted for child support 
  8.27  is 150 percent of the federal poverty guidelines or more and the 
  8.28  party's contribution to the health care coverage premium does 
  8.29  not exceed five percent of the party's income available for 
  8.30  child support.  If a party's gross income adjusted for child 
  8.31  support is less than 150 percent of the federal poverty 
  8.32  guidelines, it is presumed that the party is unable to 
  8.33  contribute to the cost of health care coverage unless health 
  8.34  care is available at no or low cost to that party; and 
  8.35     (4) the child's special medical needs, if any. 
  8.36     Subd. 4.  [COVERAGE.] (a) If a child is presently enrolled 
  9.1   in health care coverage, the court must order that the parent 
  9.2   who currently has the child enrolled continue that enrollment 
  9.3   unless the parties agree otherwise or a party requests a change 
  9.4   in coverage and the court determines that other health care 
  9.5   coverage is more appropriate. 
  9.6      (b) If a child is not presently enrolled in health care 
  9.7   coverage, upon motion of a party or the public authority, the 
  9.8   court must determine whether one or both parties have 
  9.9   appropriate health care coverage for the child and order the 
  9.10  party with appropriate health care coverage available to carry 
  9.11  the coverage for the child. 
  9.12     (c) If only one party has appropriate health care coverage 
  9.13  available, the court must order that party to carry the coverage 
  9.14  for the child. 
  9.15     (d) If both parties have appropriate health care coverage 
  9.16  available, the court must order the parent with whom the child 
  9.17  resides to carry the coverage for the child, unless: 
  9.18     (1) either party expresses a preference for coverage 
  9.19  available through the parent with whom the child does not 
  9.20  reside; 
  9.21     (2) the parent with whom the child does not reside is 
  9.22  already carrying dependent health care coverage for other 
  9.23  children and the cost of contributing to the premiums of the 
  9.24  coverage of the parent with whom the child resides would cause 
  9.25  the other parent extreme hardship; or 
  9.26     (3) both parents agree to provide coverage and agree on the 
  9.27  allocation of costs. 
  9.28  If the exceptions in clause (1) or (2) apply, the court must 
  9.29  determine which party has the most appropriate coverage 
  9.30  available based on the best interests of the child and order 
  9.31  that party to carry coverage for the child. 
  9.32     (e) If neither party has appropriate health care coverage 
  9.33  available, the court must order the parent with whom the child 
  9.34  does not reside to contribute toward the cost of public coverage 
  9.35  for the child or the child's uninsured medical expenses in an 
  9.36  amount equal to the lesser of either: 
 10.1      (1) five percent of income available for child support; or 
 10.2      (2) the monthly amount the parent with whom the child does 
 10.3   not reside would pay for the child's premiums based on the 
 10.4   parent's income that is available for child support for a 
 10.5   household size equal to the parent plus the child who is a 
 10.6   subject of the order as indicated by the MinnesotaCare sliding 
 10.7   fee scale under chapter 256L.  The court may order the parent 
 10.8   with whom the child resides to apply for public coverage for the 
 10.9   child. 
 10.10     Subd. 5.  [CALCULATING MEDICAL SUPPORT.] The court must 
 10.11  calculate the cost of medical support under section 518.5416, 
 10.12  subdivision 6. 
 10.13     Subd. 6.  [ALLOCATING MEDICAL SUPPORT COSTS.] (a) If the 
 10.14  party ordered to carry health care coverage for the child 
 10.15  already carries dependent health care coverage for other 
 10.16  dependents and would incur no additional premium costs to add 
 10.17  the child to the existing coverage, the court must not order the 
 10.18  other party to contribute to the premium costs for coverage of 
 10.19  the child. 
 10.20     (b) If a party ordered to carry health care coverage for 
 10.21  the child does not already carry dependent health care coverage 
 10.22  but has other dependents who may be added to the ordered 
 10.23  coverage, the full premium costs of the dependent health care 
 10.24  coverage must be allocated between the parties in proportion to 
 10.25  the party's share of the parties' combined income available for 
 10.26  child support, unless the parties agree otherwise. 
 10.27     (c) If a party ordered to carry health care coverage for 
 10.28  the child is required to enroll in a health plan so that the 
 10.29  child can be enrolled in dependent health care coverage under 
 10.30  the plan, the court must allocate the costs of the dependent 
 10.31  health care coverage between the parties.  The costs of the 
 10.32  health care coverage for the party ordered to carry the coverage 
 10.33  for the child must not be allocated between the parties. 
 10.34     Subd. 7.  [NOTICE TO EMPLOYER BY PUBLIC AUTHORITY OR 
 10.35  COURT.] (a) A copy of the national medical support notice or 
 10.36  notice of medical withholding must be forwarded by the public 
 11.1   authority to the employer within two business days after the 
 11.2   date an employee is entered into the work reporting system under 
 11.3   section 256.998. 
 11.4      (b) If a party is ordered to carry health care coverage for 
 11.5   the child and the public authority provides support enforcement 
 11.6   services, the public authority must forward a copy of the 
 11.7   national medical support notice or notice of medical withholding 
 11.8   to the party's employer or union and to the health carrier when 
 11.9   the conditions under paragraph (d) are met or when ordered by 
 11.10  the court. 
 11.11     (c) If the public authority does not provide support 
 11.12  enforcement services, the party seeking to enforce the order may 
 11.13  forward a copy of the court order for health care coverage for 
 11.14  the child to the employer or union of the party ordered to carry 
 11.15  coverage and to the health carrier when the conditions under 
 11.16  paragraph (d) are met or when ordered by the court. 
 11.17     (d) A copy of the national medical support notice or court 
 11.18  order for health care coverage must be forwarded to the employer 
 11.19  under paragraphs (b) and (c) if: 
 11.20     (1) the party ordered to carry health care coverage for the 
 11.21  child fails to provide written proof to the other party or the 
 11.22  public authority, within 30 days of the effective date of the 
 11.23  court order, that health care coverage has been obtained for the 
 11.24  child; 
 11.25     (2) the other party or the public authority gives written 
 11.26  notice to the party ordered to carry health care coverage for 
 11.27  the child of intent to enforce medical support.  The other party 
 11.28  or public authority must mail the written notice to the last 
 11.29  known address of the party ordered to carry health care coverage 
 11.30  for the child; and 
 11.31     (3) the party ordered to carry health care coverage for the 
 11.32  child fails, within 15 days after the date on which the written 
 11.33  notice under clause (2) was mailed, to provide written proof to 
 11.34  the other party or the public authority that health care 
 11.35  coverage has been obtained for the child. 
 11.36     Subd. 8.  [EFFECT OF ORDER.] (a) A new employer or union of 
 12.1   a party who is ordered to provide health care coverage for the 
 12.2   child must enroll the child in the party's health plan upon 
 12.3   receipt of a national medical support notice or court order. 
 12.4      (b) If a health plan administrator receives a completed 
 12.5   national medical support notice, the plan administrator must 
 12.6   notify the public authority within 40 business days after the 
 12.7   date of the notice of the following: 
 12.8      (1) whether coverage is available to the child under the 
 12.9   terms of the health plan; 
 12.10     (2) whether the child is covered under the health plan; 
 12.11     (3) the effective date of the child's coverage under the 
 12.12  health plan; and 
 12.13     (4) what steps, if any, are required to effectuate the 
 12.14  child's coverage under the health plan. 
 12.15     (c) The plan administrator must also provide the public 
 12.16  authority and the parties with a notice of enrollment of the 
 12.17  child, description of the coverage, and any documents necessary 
 12.18  to effectuate coverage. 
 12.19     Subd. 9.  [CONTESTING ENROLLMENT.] (a) A party may contest 
 12.20  the enrollment of a child in a health plan on the limited 
 12.21  grounds that the enrollment is improper due to mistake of fact 
 12.22  or that the enrollment meets the requirements of section 518.64, 
 12.23  subdivision 2.  If the party chooses to contest the enrollment, 
 12.24  the party must do so no later than 15 days after the employer 
 12.25  notifies the party of the enrollment by doing the following: 
 12.26     (1) filing a request for hearing according to section 
 12.27  484.702; 
 12.28     (2) serving a copy of the request for hearing upon the 
 12.29  public authority and the other party; and 
 12.30     (3) securing a date for the matter to be heard no later 
 12.31  than 45 days after the notice of enrollment. 
 12.32     (b) The enrollment must remain in place while the party 
 12.33  contests the enrollment. 
 12.34     Subd. 10.  [EMPLOYER AND UNION REQUIREMENTS.] (a) An 
 12.35  employer must send the national medical support notice to its 
 12.36  health plan within 20 business days after the date on the 
 13.1   national medical support notice. 
 13.2      (b) An employer or union that is included under the federal 
 13.3   Employee Retirement Income Security Act of 1974 (ERISA), United 
 13.4   States Code, title 29, section 1169(a), may not deny enrollment 
 13.5   based on exclusionary clauses described in section 62A.048. 
 13.6      (c) Upon application of the party, or if a court orders a 
 13.7   party to carry health insurance coverage for a child, the 
 13.8   employer or union and its health plan must enroll the child as a 
 13.9   beneficiary in the health plan and withhold any required 
 13.10  premiums from the income or wages of the party ordered to carry 
 13.11  health care coverage for the child. 
 13.12     (d) If more than one plan is offered by the employer or 
 13.13  union and the national medical support notice or court order 
 13.14  does not specify the plan to be carried, the plan administrator 
 13.15  must notify the parents and the public authority. 
 13.16     (e) If the party ordered to carry health care coverage for 
 13.17  the child is not enrolled in the health plan, the employer or 
 13.18  union must also enroll the party in the chosen plan if 
 13.19  enrollment of the party is necessary to obtain dependent health 
 13.20  care coverage under the plan. 
 13.21     (f) Enrollment of dependents and, if necessary, the party 
 13.22  ordered to carry health care coverage for the child must be 
 13.23  immediate and not dependent upon open enrollment periods.  
 13.24  Enrollment is not subject to the underwriting policies under 
 13.25  section 62A.048. 
 13.26     (g) Failure of the party ordered to carry health care 
 13.27  coverage for the child to execute any documents necessary to 
 13.28  enroll the dependent in the health plan does not affect the 
 13.29  obligation of the employer or union and health plan to enroll 
 13.30  the dependent in a plan.  Information and authorization provided 
 13.31  by the public authority, or by a party or guardian, is valid for 
 13.32  the purposes of meeting enrollment requirements of the health 
 13.33  plan. 
 13.34     Subd. 11.  [EMPLOYER LIABILITY.] An employer or union that 
 13.35  willfully fails to comply with the order is liable for any 
 13.36  uninsured medical expenses incurred by the dependents while the 
 14.1   dependents were eligible to be enrolled in the health plan and 
 14.2   for any other premium costs incurred because the employer or 
 14.3   union willfully failed to comply with the order.  An employer or 
 14.4   union that fails to comply with the order is subject to a 
 14.5   finding of contempt and a $250 civil penalty under section 
 14.6   518.615 and is also subject to a civil penalty of $500 to be 
 14.7   paid to the party entitled to reimbursement or the public 
 14.8   authority.  Penalties paid to the public authority are 
 14.9   designated for child support enforcement services. 
 14.10     Subd. 12.  [DISENROLLMENT; CONTINUATION OF COVERAGE; 
 14.11  OPTIONS IN COVERAGE.] (a) A child for whom a party is required 
 14.12  to provide health care coverage under this section must be 
 14.13  covered as a dependent of the party until the child is 
 14.14  emancipated, until further order of the court, or as consistent 
 14.15  with the terms of the coverage. 
 14.16     (b) The health carrier or employer or union may not 
 14.17  disenroll or eliminate coverage for the child unless: 
 14.18     (1) the health carrier, employer, or union is provided 
 14.19  satisfactory written evidence that the court order is no longer 
 14.20  in effect; 
 14.21     (2) the child is or will be enrolled in comparable health 
 14.22  care coverage through another health plan that will take effect 
 14.23  no later than the effective date of the disenrollment; 
 14.24     (3) the employee is no longer eligible for dependent 
 14.25  coverage; or 
 14.26     (4) the required premium has not been paid by or on behalf 
 14.27  of the child. 
 14.28     (c) If disenrollment or elimination of coverage of a child 
 14.29  under this subdivision is based upon nonpayment of premiums, the 
 14.30  health plan must provide 30 days' written notice to the child's 
 14.31  parents and the public authority, if the public authority is 
 14.32  providing support enforcement services, prior to the 
 14.33  disenrollment or elimination of coverage. 
 14.34     (d) A child enrolled in health care coverage under a 
 14.35  qualified medical child support order, including a national 
 14.36  medical support notice, under this section is a dependent and a 
 15.1   qualified beneficiary under the Consolidated Omnibus Budget and 
 15.2   Reconciliation Act of 1985 (COBRA), Public Law Number 99-272.  
 15.3   Upon expiration of the order, the child is entitled to the 
 15.4   opportunity to elect continued coverage that is available under 
 15.5   the health plan.  Notice must be provided by the employer or 
 15.6   union to the parties and the public authority, if it provides 
 15.7   child support services, within ten days of the termination date. 
 15.8      (e) If the public authority provides support enforcement 
 15.9   services and a plan administrator reports to the public 
 15.10  authority that there is more than one coverage option available 
 15.11  under the health plan, the public authority, in consultation 
 15.12  with the custodial parent, must promptly select coverage from 
 15.13  the available options.  If the custodial parent fails to 
 15.14  cooperate in a reasonable period of time, the public authority 
 15.15  must select the coverage from the available health plan options. 
 15.16     Subd. 13.  [SPOUSAL OR FORMER SPOUSAL COVERAGE.] The court 
 15.17  must require a noncustodial parent to provide dependent health 
 15.18  care coverage for the benefit of a custodial parent if the 
 15.19  noncustodial parent is ordered to provide dependent health care 
 15.20  coverage for the parties' child and adding the custodial parent 
 15.21  to the coverage results in no additional premium cost to the 
 15.22  noncustodial parent. 
 15.23     Subd. 14.  [PLAN REIMBURSEMENT.] The signature of a parent 
 15.24  of the insured child is a valid authorization to a health plan 
 15.25  for purposes of processing an insurance reimbursement payment to 
 15.26  the provider of the medical services or to the parent if medical 
 15.27  services have been prepaid by that parent. 
 15.28     Subd. 15.  [CORRESPONDENCE AND NOTICE.] The health plan 
 15.29  must send copies of all correspondence regarding the health care 
 15.30  coverage to both parents. 
 15.31     Subd. 16.  [DISCLOSURE OF INFORMATION.] (a) Parties must 
 15.32  provide the public authority with the following information when 
 15.33  support enforcement services are provided: 
 15.34     (1) information relating to dependent health care coverage 
 15.35  or public coverage available for the benefit of the child for 
 15.36  whom support is sought, including all information required to be 
 16.1   included in a medical support order under this section; 
 16.2      (2) verification that application for court-ordered health 
 16.3   care coverage was made within 30 days of the court's order; and 
 16.4      (3) the reason that a child is not enrolled in 
 16.5   court-ordered health care coverage, if a child is not enrolled 
 16.6   in coverage or subsequently loses coverage. 
 16.7      (b) Upon request from the public authority under section 
 16.8   256.978, an employer, union, or plan administrator, including an 
 16.9   employer subject to the federal Employee Retirement Income 
 16.10  Security Act of 1974 (ERISA), United States Code, title 29, 
 16.11  section 1169(a), must provide the public authority the following 
 16.12  information: 
 16.13     (1) information relating to dependent health care coverage 
 16.14  available to a party for the benefit of the child for whom 
 16.15  support is sought, including all information required to be 
 16.16  included in a medical support order under this section; and 
 16.17     (2) information that will enable the public authority to 
 16.18  determine whether a health plan is appropriate for a child, 
 16.19  including, but not limited to, all available plan options, any 
 16.20  geographic service restrictions, and the location of service 
 16.21  providers. 
 16.22     (c) The employer, union, or plan administrator must not 
 16.23  release information regarding one party to the other party.  The 
 16.24  employer, union, or health plan must provide both parties with 
 16.25  insurance identification cards and all necessary written 
 16.26  information to enable the parties to utilize the insurance 
 16.27  benefits for the covered dependents. 
 16.28     (d) The public authority is authorized to release to a 
 16.29  party's employer, union, or health plan information necessary to 
 16.30  obtain or enforce medical support. 
 16.31     (e) An employee must disclose to an employer if medical 
 16.32  support is required to be withheld under this section and the 
 16.33  employer must begin withholding according to the terms of the 
 16.34  order and under section 518.6111.  If an employee discloses an 
 16.35  obligation to obtain health care coverage and coverage is 
 16.36  available through the employer, the employer must make all 
 17.1   application processes known to the individual and enroll the 
 17.2   employee and dependent in the plan under subdivision 10. 
 17.3      Subd. 17.  [APPLICATION FOR IV-D SERVICES.] The public 
 17.4   authority must take necessary steps to establish and enforce an 
 17.5   order for medical support if the child receives public 
 17.6   assistance or a party completes an application for services from 
 17.7   the public authority. 
 17.8      Subd. 18.  [ENFORCEMENT.] (a) Remedies available for the 
 17.9   collection and enforcement of child support apply to medical 
 17.10  support.  For the purpose of enforcement, the costs of 
 17.11  individual or group health or hospitalization coverage, dental 
 17.12  coverage, all medical costs ordered by the court to be paid by 
 17.13  either party, including health and dental insurance premiums 
 17.14  paid by the obligee because of the obligor's failure to obtain 
 17.15  coverage as ordered, or liabilities established under this 
 17.16  subdivision, are additional support. 
 17.17     (b) If a party owes a basic support obligation for a child 
 17.18  and is ordered to carry health care coverage for the child, and 
 17.19  the other party is ordered to contribute to the carrying party's 
 17.20  cost for coverage, the carrying party's basic support payment 
 17.21  must be reduced by the amount of the contributing party's 
 17.22  contribution. 
 17.23     (c) If a party owes a basic support obligation for a child 
 17.24  and is ordered to contribute to the other party's cost for 
 17.25  carrying health care coverage for the child, the contributing 
 17.26  party's basic support payment must be increased by the amount of 
 17.27  the contribution. 
 17.28     (d) If a party owes no basic support obligation for a child 
 17.29  and is ordered to contribute to the other party's cost for 
 17.30  carrying health care coverage for the child, the contributing 
 17.31  party is subject to income withholding under section 518.6111 
 17.32  for the amount of the contribution to the carrying party's cost 
 17.33  for health care coverage for the child. 
 17.34     (e) If a party's court-ordered health care coverage for the 
 17.35  child terminates and the child is not enrolled in other health 
 17.36  care coverage or public coverage, and a modification motion is 
 18.1   not pending, the public authority may remove the offset to the 
 18.2   basic support obligation or terminate income withholding 
 18.3   instituted against a parent with whom the child resides under 
 18.4   section 518.6111, and must provide notice to the parties. 
 18.5      (f) A party may contest the action of the public authority 
 18.6   to remove the offset to the basic support obligation or 
 18.7   terminate income withholding if the party makes a written 
 18.8   request for a hearing within 30 days after receiving written 
 18.9   notice.  If a party makes a timely request for a hearing, the 
 18.10  public authority must schedule a hearing and give written notice 
 18.11  of the hearing to the parties at least 14 days before the 
 18.12  hearing.  The written notice of the hearing must be sent by mail 
 18.13  to the parties' last known addresses.  The hearing must be 
 18.14  conducted in district court or in the expedited child support 
 18.15  process if section 484.702 applies.  The district court or child 
 18.16  support magistrate must determine whether removal of the offset 
 18.17  or termination of income withholding is appropriate and, if 
 18.18  appropriate, the effective date for the removal or termination.  
 18.19  If the party does not request a hearing, the court must order 
 18.20  the offset or termination effective the first day of the month 
 18.21  following termination of the child's health care coverage. 
 18.22     (g) A party who fails to carry court-ordered dependent 
 18.23  health care coverage is liable for the child's uninsured medical 
 18.24  expenses unless a court order provides otherwise.  A party's 
 18.25  failure to carry court-ordered coverage, or to provide other 
 18.26  medical support as ordered, is a basis for modification of a 
 18.27  support order under section 518.64. 
 18.28     (h) Payments by the health carrier or employer for services 
 18.29  rendered to the dependents that are directed to a party not owed 
 18.30  reimbursement must be endorsed over to and forwarded to the 
 18.31  vendor or appropriate party or the public authority.  A party 
 18.32  retaining insurance reimbursement not owed to the party is 
 18.33  liable for the amount of the reimbursement. 
 18.34     Subd. 19.  [COLLECTING UNREIMBURSED AND UNINSURED MEDICAL 
 18.35  EXPENSES.] (a) A request for reimbursement of unreimbursed and 
 18.36  uninsured medical expenses must be initiated within two years of 
 19.1   the date that the unreimbursed or uninsured medical expenses 
 19.2   were incurred.  The time period in this paragraph does not apply 
 19.3   if the location of the other parent is unknown. 
 19.4      (b) A party seeking reimbursement of unreimbursed and 
 19.5   uninsured medical expenses must mail written notice of intent to 
 19.6   collect the expenses and an affidavit of health care expenses to 
 19.7   the other party at the party's last known address.  The 
 19.8   affidavit of health care expenses must itemize and document the 
 19.9   child's unreimbursed or uninsured medical expenses.  A copy of 
 19.10  the bills, receipts, and the insurance company's explanation of 
 19.11  the benefits must be attached to the affidavit.  The written 
 19.12  notice must include a statement that the party has 30 days from 
 19.13  the date of mailing the notice to pay in full, enter a payment 
 19.14  agreement, or file a motion requesting a hearing contesting the 
 19.15  matter.  If the public authority provides support enforcement 
 19.16  services, the written notice also must include a statement that 
 19.17  the requesting party must submit the amount due to the public 
 19.18  authority for collection. 
 19.19     (c) If, after 30 days, the other party has not paid in 
 19.20  full, the parties are unable to enter a payment agreement, or 
 19.21  the other party has not filed a motion contesting the matter, 
 19.22  and: 
 19.23     (1) if the public authority provides support enforcement 
 19.24  services, the requesting party must send the original affidavit, 
 19.25  a copy of the written notice, and copies of the bills, receipts, 
 19.26  and the insurance company's explanation of the benefits to the 
 19.27  public authority.  The public authority must serve the other 
 19.28  party with a notice of intent to enforce unreimbursed and 
 19.29  uninsured medical expenses and file an affidavit of service by 
 19.30  mail with the district court administrator.  The notice must 
 19.31  provide that unless the other party pays in full, enters into a 
 19.32  payment agreement, or files a motion contesting the matter 
 19.33  within 14 days of service of the notice, the public authority 
 19.34  will commence enforcement under subdivision 20; or 
 19.35     (2) if the public authority does not provide support 
 19.36  enforcement services, the requesting party may move the court 
 20.1   for enforcement. 
 20.2      (d) If the party who receives notice under paragraph (b) or 
 20.3   (c), clause (1), files a timely motion for a hearing contesting 
 20.4   the requested reimbursement, a hearing must be scheduled in 
 20.5   district court or in the expedited child support process if 
 20.6   section 484.702 applies.  The contesting party must provide the 
 20.7   party seeking reimbursement and the public authority, if the 
 20.8   public authority provides support enforcement services, with 
 20.9   written notice of the hearing at least 14 days before the 
 20.10  hearing by mailing notice of the hearing to the public authority 
 20.11  and the party at the party's last known address.  The party 
 20.12  seeking reimbursement must file the original affidavit of health 
 20.13  care expenses with the court at least five days before the 
 20.14  hearing.  Based upon the evidence presented, the court must 
 20.15  determine liability for the expenses and order that the liable 
 20.16  party is subject to enforcement of the expenses as medical 
 20.17  support arrears under subdivision 20. 
 20.18     Subd. 20.  [ENFORCING AN ORDER FOR MEDICAL SUPPORT 
 20.19  ARREARS.] (a) If a party liable for unreimbursed and uninsured 
 20.20  medical expenses under subdivision 19 owes a basic support 
 20.21  obligation to the party seeking reimbursement of the expenses, 
 20.22  the expenses must be collected as medical support arrears as 
 20.23  follows: 
 20.24     (1) if income withholding under section 518.6111 is 
 20.25  available, medical support arrears must be withheld from a 
 20.26  liable party's income or wages under section 518.6111, 
 20.27  subdivision 10; or 
 20.28     (2) if income withholding under section 518.6111 is not 
 20.29  available, a liable party must pay medical support arrears under 
 20.30  the terms of a payment agreement under section 518.553.  If a 
 20.31  liable party fails to enter into or comply with a payment 
 20.32  agreement, the party seeking reimbursement or the public 
 20.33  authority, if it provides support enforcement services, may 
 20.34  schedule a hearing to have a court order payment.  The party 
 20.35  seeking reimbursement or the public authority must provide the 
 20.36  liable party with written notice of the hearing at least 14 days 
 21.1   before the hearing. 
 21.2      (b) If a party liable for unreimbursed and uninsured 
 21.3   medical expenses does not owe a basic support obligation to the 
 21.4   party seeking reimbursement, and the party seeking reimbursement 
 21.5   owes the liable party child support arrears, the liable party's 
 21.6   medical support arrears under subdivision 19 must be deducted 
 21.7   from the amount of the child support arrears.  If a liable party 
 21.8   owes medical support arrears after deducting the amount owed 
 21.9   from the amount of the child support arrears owed by the party 
 21.10  seeking reimbursement, it must be collected as follows: 
 21.11     (1) if the party seeking reimbursement owes a basic support 
 21.12  obligation to the liable party, the basic support obligation 
 21.13  must be reduced by 20 percent until the medical support arrears 
 21.14  are satisfied; 
 21.15     (2) if the party seeking reimbursement does not owe a basic 
 21.16  support obligation to the liable party, the liable party's 
 21.17  income must be subject to income withholding under section 
 21.18  518.6111 for an amount required under section 518.553 until the 
 21.19  medical support arrears are satisfied; or 
 21.20     (3) if the party seeking reimbursement does not owe a basic 
 21.21  support obligation, and income withholding under section 
 21.22  518.6111 is not available, payment of the medical support 
 21.23  arrears must be required under a payment agreement under section 
 21.24  518.553. 
 21.25     Sec. 5.  Minnesota Statutes 2000, section 518.54, 
 21.26  subdivision 1, is amended to read: 
 21.27     Subdivision 1.  [TERMS.] For the purposes of sections 
 21.28  518.1711 and 518.54 to 518.66, the terms defined in this section 
 21.29  shall have the meanings respectively ascribed to them. 
 21.30     Sec. 6.  Minnesota Statutes 2000, section 518.54, 
 21.31  subdivision 4a, is amended to read: 
 21.32     Subd. 4a.  [SUPPORT ORDER.] (a) "Support order" means a 
 21.33  judgment, decree, or order, whether temporary, final, or subject 
 21.34  to modification, issued by a court or administrative agency of 
 21.35  competent jurisdiction, for the support and maintenance of a 
 21.36  child, including a child who has attained the age of majority 
 22.1   under the law of the issuing state, or a child and the parent 
 22.2   with whom the child is living, that provides for monetary: 
 22.3      (1) basic support,; 
 22.4      (2) child care, support; 
 22.5      (3) medical support, including expenses for confinement and 
 22.6   pregnancy, arrearages, or reimbursement,; and that 
 22.7      (4) may include related costs and fees, interest and 
 22.8   penalties, income withholding, and other relief.  This 
 22.9      (b) The definition in paragraph (a) applies to orders 
 22.10  issued under this chapter and chapters 256, 257, and 393, 518B, 
 22.11  518C, and 588. 
 22.12     Sec. 7.  Minnesota Statutes 2000, section 518.54, is 
 22.13  amended by adding a subdivision to read: 
 22.14     Subd. 4b.  [BASIC SUPPORT.] "Basic support" means the 
 22.15  dollar amount ordered to be paid by the obligor for the cost of 
 22.16  a child's housing, food, clothing, transportation, education, 
 22.17  and other expenses, including, but not limited to, personal care 
 22.18  items, entertainment, and reading materials.  Basic support does 
 22.19  not include monetary contributions for a child's private school 
 22.20  tuition, child care expenses, and medical and dental expenses. 
 22.21     Sec. 8.  Minnesota Statutes 2000, section 518.54, is 
 22.22  amended by adding a subdivision to read: 
 22.23     Subd. 4c.  [CHILD CARE SUPPORT.] "Child care support" means 
 22.24  the dollar amount ordered to be paid by the obligor for 
 22.25  work-related and education-related child care costs. 
 22.26     Sec. 9.  Minnesota Statutes 2000, section 518.54, 
 22.27  subdivision 6, is amended to read: 
 22.28     Subd. 6.  [INCOME.] "Income" means any form of periodic 
 22.29  payment to an individual including, but not limited to, wages, 
 22.30  salaries, payments to an independent contractor, workers' 
 22.31  compensation, unemployment benefits, annuity, military and naval 
 22.32  retirement, pension and disability payments.  Benefits received 
 22.33  under Title IV-A of the Social Security Act and chapter 256J are 
 22.34  not income under this section, in-kind payments received by the 
 22.35  parties in the course of employment, self-employment, or 
 22.36  operation of a business if the payments reduce the parties' 
 23.1   living expenses, and all wages earned by a parent who receives 
 23.2   an MFIP cash grant under chapter 256J.  Income does not include 
 23.3   maintenance ordered under chapters 518 and 518B.  
 23.4      Sec. 10.  Minnesota Statutes 2000, section 518.54, is 
 23.5   amended by adding a subdivision to read: 
 23.6      Subd. 6a.  [GROSS INCOME ADJUSTED FOR CHILD 
 23.7   SUPPORT.] "Gross income adjusted for child support" under 
 23.8   section 518.5416, means income minus deductions, if applicable, 
 23.9   for (1) ordinary and necessary business expenses from 
 23.10  self-employment and (2) other child support or maintenance 
 23.11  orders currently being paid. 
 23.12     Sec. 11.  Minnesota Statutes 2000, section 518.54, is 
 23.13  amended by adding a subdivision to read: 
 23.14     Subd. 6b.  [INCOME AVAILABLE FOR CHILD SUPPORT.] "Income 
 23.15  available for child support" means a parent's gross income 
 23.16  adjusted for child support minus a deduction under section 
 23.17  518.5416, subdivision 4, for any other legally dependent child. 
 23.18     Sec. 12.  Minnesota Statutes 2000, section 518.54, is 
 23.19  amended by adding a subdivision to read: 
 23.20     Subd. 6c.  [OTHER LEGALLY DEPENDENT CHILD.] "Other legally 
 23.21  dependent child" means a child: 
 23.22     (1) whom the parent has the legal duty to support; 
 23.23     (2) who is not a subject of the action for child support; 
 23.24     (3) for whom the parent is not ordered to pay child 
 23.25  support; and 
 23.26     (4) for whom no other person has court-ordered sole 
 23.27  physical custody. 
 23.28     Sec. 13.  Minnesota Statutes 2000, section 518.54, 
 23.29  subdivision 8, is amended to read: 
 23.30     Subd. 8.  [OBLIGOR.] "Obligor" means a person obligated 
 23.31  ordered to pay maintenance or support.  A person who is 
 23.32  designated as the sole physical custodian of a child is presumed 
 23.33  not to be an obligor for purposes of calculating current support 
 23.34  under section 518.551 518.5416 unless the court makes specific 
 23.35  written findings to overcome this presumption.  For purposes of 
 23.36  ordering medical support under section 518.1711, an obligor may 
 24.1   include a custodial parent. 
 24.2      Sec. 14.  [518.5411] [CHILD SUPPORT ORDERS.] 
 24.3      Subdivision 1.  [ORDER.] After receipt of the notice of 
 24.4   proceedings for dissolution, legal separation, determination of 
 24.5   parentage, or custody of a child, the court must enter a support 
 24.6   order as provided in section 518.5416.  The support order must 
 24.7   contain the amounts ordered, if any, for basic support, child 
 24.8   care support, and medical support.  The court may order either 
 24.9   or both parents owing a duty of support to pay an amount 
 24.10  reasonable or necessary for the child's support.  The court may 
 24.11  not consider marital misconduct in setting support. 
 24.12     Subd. 2.  [AGREEMENTS.] The court must review a child 
 24.13  support stipulation of the parties to ensure it serves the best 
 24.14  interests of the child.  The court may refuse to accept or may 
 24.15  alter an agreement that does not conform with the requirements 
 24.16  of section 518.5416 or that is otherwise not in the best 
 24.17  interests of the child. 
 24.18     Subd. 3.  [SPECIFIC DOLLAR AMOUNT.] The court must order 
 24.19  child support in a specific dollar amount.  A support order may 
 24.20  be in the form of a percentage share of the obligor's net 
 24.21  bonuses, commissions, or other forms of compensation in addition 
 24.22  to, or, if the obligor receives no base pay, in lieu of an order 
 24.23  for a specific dollar amount. 
 24.24     Sec. 15.  [518.5412] [EXCHANGE OF INFORMATION.] 
 24.25     Subdivision 1.  [DOCUMENTATION.] The parties must timely 
 24.26  serve and file documentation of earnings and income. 
 24.27  Documentation of earnings and income includes, but is not 
 24.28  limited to, pay stubs for the most recent three months, employer 
 24.29  statements, or statement of receipts and expenses if 
 24.30  self-employed.  Documentation of earnings and income also 
 24.31  includes copies of each parent's most recent federal tax 
 24.32  returns, including W-2 forms, 1099 forms, unemployment benefits 
 24.33  statements, workers' compensation statements, and all other 
 24.34  documents providing verification of income received over a 
 24.35  longer period than the most recent three months. 
 24.36     Subd. 2.  [TAX RETURNS.] At any time after an action 
 25.1   seeking support has been commenced or when a support order is in 
 25.2   effect, a party or the public authority may require the other 
 25.3   party to provide a copy of the party's most recent federal tax 
 25.4   returns that were filed with the Internal Revenue Service.  The 
 25.5   party must provide a copy of the tax returns within 30 days of 
 25.6   receipt of the request unless the request is not made in good 
 25.7   faith.  In the absence of good cause, a request under this 
 25.8   subdivision may not be made more than once every two years. 
 25.9      Subd. 3.  [NOTICE TO PUBLIC AUTHORITY.] The petitioner must 
 25.10  notify the public authority of all proceedings for dissolution, 
 25.11  legal separation, determination of parentage, or custody of a 
 25.12  child if either party is receiving public assistance or applies 
 25.13  for it after the commencement of the proceeding.  The notice 
 25.14  must contain the full names, social security numbers, and birth 
 25.15  dates of the parties to the proceeding. 
 25.16     Subd. 4.  [FAILURE OF NOTICE.] If the court in a 
 25.17  dissolution, legal separation, or determination of parentage 
 25.18  proceeding, finds before issuing the order for judgment and 
 25.19  decree that notification has not been given to the public 
 25.20  authority, the court must set support according to the 
 25.21  guidelines in sections 518.5413 to 518.5416.  In proceedings in 
 25.22  which notification has not been made under this section and in 
 25.23  which the public authority determines that the support ordered 
 25.24  is lower than required by the guidelines in sections 518.5413 to 
 25.25  518.5416, the public authority must move the court for a 
 25.26  redetermination of the support payments ordered so that the 
 25.27  support payments comply with the guidelines. 
 25.28     Sec. 16.  [518.5413] [INCOME.] 
 25.29     Subdivision 1.  [SOURCES.] Sources of income include 
 25.30  "income" as defined under section 518.54, subdivision 6. 
 25.31     Subd. 2.  [EXCLUSIONS.] Benefits received from public 
 25.32  assistance programs that are not income under this section 
 25.33  include, but are not limited to: 
 25.34     (1) benefits under title IV-A of the Social Security Act; 
 25.35     (2) supplemental security income under Title XVI of the 
 25.36  Social Security Act; 
 26.1      (3) MFIP under chapter 256J; 
 26.2      (4) any form of general assistance and aid under chapter 
 26.3   256D; 
 26.4      (5) any form of medical assistance under chapter 256B; 
 26.5      (6) MinnesotaCare under chapter 256L; 
 26.6      (7) child care assistance provided through the child care 
 26.7   fund under chapter 119B; 
 26.8      (8) food stamps; 
 26.9      (9) Section 8 certificates and vouchers programs; and 
 26.10     (10) earned income tax credits and working family credits. 
 26.11     Subd. 3.  [INCOME OF OTHERS.] Income of a party's spouse or 
 26.12  other household member is not income under this section. 
 26.13     Subd. 4.  [OVERTIME.] (a) Income does not include 
 26.14  compensation received by a party for employment in excess of a 
 26.15  40-hour work week if: 
 26.16     (1) the excess employment began after the filing of the 
 26.17  petition for dissolution but is an increase in the work schedule 
 26.18  or hours worked over that of the two years immediately preceding 
 26.19  the filing of the action to establish or modify support; 
 26.20     (2) the excess employment is voluntary and not a condition 
 26.21  of employment; 
 26.22     (3) the excess employment is in the nature of additional, 
 26.23  part-time or overtime employment compensable by the hour or 
 26.24  fraction of an hour; and 
 26.25     (4) the party's compensation structure has not been changed 
 26.26  for the purpose of affecting a support or maintenance obligation.
 26.27     (b) The court may presume that a party with seasonal or 
 26.28  intermittent income who works periods in excess of a 40-hour 
 26.29  work week, but who works a substantially normal number of hours 
 26.30  over the course of a year, is working within the normal range of 
 26.31  hours worked. 
 26.32     Subd. 5.  [CHILD SUPPORT FOR OTHER LEGALLY DEPENDENT 
 26.33  CHILD.] Child support received for any other legally dependent 
 26.34  child is not income under this section. 
 26.35     Subd. 6.  [SELF-EMPLOYMENT; INDEPENDENT 
 26.36  CONTRACTORS.] Self-employed persons or independent contractors 
 27.1   may deduct ordinary and necessary expenses when calculating 
 27.2   gross income adjusted for child support under this section.  
 27.3   Ordinary and necessary expenses include what would otherwise be 
 27.4   the employer's share of the contributions under the Federal 
 27.5   Insurance Contributions Act (FICA), United States Code, title 
 27.6   26, subtitle C, chapter 21, subchapter A, sections 3101 to 
 27.7   3126.  Ordinary and necessary expenses do not include amounts 
 27.8   allowed by the Internal Revenue Service for accelerated 
 27.9   depreciation expenses or investment tax credits or any other 
 27.10  business expenses determined by the court to be inappropriate 
 27.11  for determining income for purposes of child support.  The 
 27.12  person seeking to deduct an expense, including depreciation, has 
 27.13  the burden of proving, if challenged, that the expense is 
 27.14  ordinary and necessary.  Income available for child support 
 27.15  under this section may be different from taxable income. 
 27.16     Sec. 17.  [518.5414] [IMPUTED INCOME.] 
 27.17     Subdivision 1.  [DEFINITION.] "Imputed income" means the 
 27.18  estimated earning ability of a parent based on the parent's 
 27.19  prior earnings history, education, and job skills and on the 
 27.20  availability of jobs within the community for an individual with 
 27.21  the parent's qualifications. 
 27.22     Subd. 2.  [NONAPPEARANCE OF A PARTY.] If a parent under the 
 27.23  jurisdiction of the court does not appear at a court hearing 
 27.24  after proper notice of the time and place of the hearing, the 
 27.25  court must set income for that parent based on credible evidence 
 27.26  before the court or under subdivision 3.  Credible evidence may 
 27.27  include documentation of current or recent income, testimony of 
 27.28  the other parent concerning recent earnings and income levels, 
 27.29  and the parent's wage reports filed with the department of 
 27.30  economic security under section 268.044. 
 27.31     Subd. 3.  [VOLUNTARY UNEMPLOYMENT OR UNDEREMPLOYMENT.] (a) 
 27.32  If the court finds that a parent is voluntarily unemployed or 
 27.33  underemployed or was voluntarily unemployed or underemployed 
 27.34  during the period for which past support is being sought, 
 27.35  support must be calculated based on a determination of imputed 
 27.36  income. 
 28.1      (b) A parent is not considered voluntarily unemployed or 
 28.2   underemployed upon a showing by the parent that: 
 28.3      (1) the unemployment or underemployment is temporary and 
 28.4   will ultimately lead to an increase in income; 
 28.5      (2) the unemployment or underemployment represents a bona 
 28.6   fide career change that outweighs the adverse effect of that 
 28.7   parent's diminished income on the child; 
 28.8      (3) the parent is a recipient of public assistance as 
 28.9   defined under section 256.741, subdivision 1; or 
 28.10     (4) the parent is physically or mentally incapacitated. 
 28.11     Subd. 4.  [INSUFFICIENT INFORMATION.] If there is 
 28.12  insufficient information to determine actual income or to impute 
 28.13  income under subdivision 2 or 3, the court may calculate support 
 28.14  based on full-time employment of 40 hours per week at 150 
 28.15  percent of the federal minimum wage or the Minnesota minimum 
 28.16  wage, whichever is higher. 
 28.17     Subd. 5.  [PARENT PROVIDING AT-HOME CARE TO CHILD.] The 
 28.18  court must consider the following factors when determining 
 28.19  whether a parent is voluntarily unemployed or underemployed when 
 28.20  the parent stays at home to care for a child who is a subject of 
 28.21  the order for child support: 
 28.22     (1) the parties' parenting and child care arrangement prior 
 28.23  to the action for child support; 
 28.24     (2) the stay-at-home parent's employment history, including 
 28.25  recency of employment and earnings, as well as the availability 
 28.26  of jobs within the community for an individual with the parent's 
 28.27  qualifications; 
 28.28     (3) the relationship between the employment-related 
 28.29  expenses, including child care, cost for transportation, 
 28.30  suitable clothing, and other items required for the parent to be 
 28.31  employed, and the income that the stay-at-home parent could 
 28.32  receive from available jobs within the community for an 
 28.33  individual with the parent's qualifications; 
 28.34     (4) the age and health of the child, including whether the 
 28.35  child is physically or mentally disabled; and 
 28.36     (5) the availability of appropriate child care providers. 
 29.1      Sec. 18.  [518.5415] [PRESUMPTIVE CHILD SUPPORT ORDERS; 
 29.2   GENERAL.] 
 29.3      Subdivision 1.  [REBUTTABLE PRESUMPTION.] The guidelines in 
 29.4   sections 518.5413 to 518.5416 are a rebuttable presumption and 
 29.5   must be used in all cases when establishing or modifying child 
 29.6   support. 
 29.7      Subd. 2.  [BASIC SUPPORT INCOME LIMIT.] The dollar amount 
 29.8   of the income limit in the basic support schedule in section 
 29.9   518.5423 must be adjusted on July 1 of every even-numbered year 
 29.10  to reflect cost-of-living changes.  The commissioner of human 
 29.11  services must select the index for the adjustment from the 
 29.12  indices listed in section 518.641.  The commissioner of human 
 29.13  services must make the changes in the dollar amount required by 
 29.14  this subdivision available to courts and the public on or before 
 29.15  April 30 of the year in which the amount is to change. 
 29.16     Subd. 3.  [CHILD'S INSURANCE BENEFIT.] In establishing or 
 29.17  modifying child support, if a child receives a child's insurance 
 29.18  benefit under United States Code, title 42, section 402, because 
 29.19  the obligor is entitled to old age or disability insurance 
 29.20  benefits, the amount of support ordered must be offset by the 
 29.21  amount of the child's benefit.  The court must make findings 
 29.22  regarding the obligor's income from all sources, the child 
 29.23  support amount calculated under section 518.5416, the amount of 
 29.24  the child's benefit, and the obligor's child support 
 29.25  obligation.  A benefit received by the child in a given month in 
 29.26  excess of the child support obligation must not be treated as an 
 29.27  arrearage payment or a future payment. 
 29.28     Sec. 19.  [518.5416] [CALCULATING CHILD SUPPORT.] 
 29.29     Subdivision 1.  [WORKSHEET.] The commissioner of human 
 29.30  services must create a worksheet for calculation of child 
 29.31  support under this section.  The worksheet must incorporate the 
 29.32  methodology for calculating child support as provided in this 
 29.33  section.  The commissioner must produce and include with the 
 29.34  worksheet all tables or charts necessary for determining basic 
 29.35  support, child care support, and medical support, and the 
 29.36  deduction for any other legally dependent child.  The 
 30.1   commissioner must update the worksheet and accompanying tables 
 30.2   or charts on July 1 of each year. 
 30.3      Subd. 2.  [CALCULATING GROSS INCOME ADJUSTED FOR CHILD 
 30.4   SUPPORT.] Monthly gross income adjusted for child support must 
 30.5   be calculated for both the obligor and obligee under section 
 30.6   518.54, subdivision 6a. 
 30.7      Subd. 3.  [PRESUMPTIVE MINIMUM FOR BASIC SUPPORT.] (a) If 
 30.8   the obligor's gross income adjusted for child support is less 
 30.9   than 150 percent of the federal poverty guidelines per month, 
 30.10  the court must order the presumptive minimum for basic support 
 30.11  as follows: 
 30.12     (1) for one or two children, the obligor's basic support 
 30.13  obligation is the greater of ten percent of gross income 
 30.14  adjusted for child support or $50 per month; or 
 30.15     (2) for three children or more, the obligor's basic support 
 30.16  obligation is the greater of 12 percent of gross income adjusted 
 30.17  for child support or $75 per month. 
 30.18     (b) If the court orders the obligor to pay the presumptive 
 30.19  minimum for basic support, the obligor is presumed unable to pay 
 30.20  child care support and medical support. 
 30.21     (c) The presumptive minimum for basic support does not 
 30.22  apply if the obligor receives no income and does not have the 
 30.23  ability to earn income. 
 30.24     Subd. 4.  [BASIC SUPPORT.] If the obligor's gross income 
 30.25  adjusted for child support is equal to or greater than 150 
 30.26  percent of the federal poverty guidelines per month, the court 
 30.27  must derive a specific dollar amount for basic support as 
 30.28  follows: 
 30.29     (a) The court must calculate the amount of the obligor's 
 30.30  and obligee's monthly income available for child support under 
 30.31  section 518.54, subdivision 6b. 
 30.32     (b) The deduction for any other legally dependent child 
 30.33  must be calculated using the following method: 
 30.34     (1) compute 120 percent of the federal poverty guidelines 
 30.35  for a family size equal to two parents plus each legally 
 30.36  dependent child.  A maximum of four other legally dependent 
 31.1   children may be included in the calculation; 
 31.2      (2) divide the amount determined under clause (1) by the 
 31.3   family size calculated under clause (1); 
 31.4      (3) multiply the amount calculated under clause (2) by the 
 31.5   number of other legally dependent children; 
 31.6      (4) divide the amount calculated under clause (3) by two to 
 31.7   determine one parent's share of the basic needs of any other 
 31.8   legally dependent child; and 
 31.9      (5) divide the amount calculated under clause (4) by 12 to 
 31.10  determine the monthly deduction for other legally dependent 
 31.11  children.  The deduction must not exceed the basic support 
 31.12  ordered under this section.  
 31.13     (c) The court must calculate the amount of the obligor's 
 31.14  and obligee's proportionate share of income available for child 
 31.15  support by dividing each party's income available for child 
 31.16  support under paragraph (a) by the sum of the obligor's and 
 31.17  obligee's income available for child support under paragraph (a).
 31.18     (d) The obligor's and obligee's shared responsibility for 
 31.19  basic support is based upon the sum of each party's income 
 31.20  available for child support under paragraph (a) and the number 
 31.21  of children who are parties to the action for child support.  
 31.22  The amount of the obligor's and obligee's shared responsibility 
 31.23  for basic support is determined using the schedule of basic 
 31.24  support under section 518.5423.  If the sum total of the 
 31.25  obligor's and obligee's monthly income available for child 
 31.26  support falls between two income levels in the schedule, the 
 31.27  court must use the support amount for the lower income level. 
 31.28     (e) The court must calculate the obligor's and obligee's 
 31.29  proportionate responsibility for basic support by multiplying 
 31.30  each party's proportionate share of income available for child 
 31.31  support under paragraph (c) by the amount of the obligor's and 
 31.32  obligee's shared responsibility for basic support under 
 31.33  paragraph (d). 
 31.34     (f) The court must order basic support in the amount of the 
 31.35  obligor's proportionate responsibility for child support under 
 31.36  paragraph (e).  It is presumed that the obligee spends the 
 32.1   amount of the obligee's proportionate responsibility for child 
 32.2   support under paragraph (e) directly on the child. 
 32.3      (g) If the sum total of the obligor's and obligee's income 
 32.4   available for child support exceeds the income limit in effect 
 32.5   under section 518.5415, subdivision 3, the court must order 
 32.6   basic support in an amount at least equal to the income limit in 
 32.7   effect. 
 32.8      Subd. 5.  [CHILD CARE SUPPORT.] (a) If the obligor's gross 
 32.9   income adjusted for child support is equal to or greater than 
 32.10  150 percent of the federal poverty guidelines per month, and if 
 32.11  the obligor's income available for child support under 
 32.12  subdivision 4, paragraph (a), exceeds the income eligibility 
 32.13  requirements for child care assistance for a household size 
 32.14  equal to the obligor plus the child who is the subject of the 
 32.15  order for child support under the basic sliding fee program 
 32.16  under chapter 119B, the court must order the obligor to pay 
 32.17  child care support as follows: 
 32.18     (1) the court must determine the obligor's and obligee's 
 32.19  shared responsibility for the actual cost of work-related and 
 32.20  education-related child care.  The actual cost paid for child 
 32.21  care is the total amount the parents and public agency, if 
 32.22  applicable, pay the child care provider for the care of the 
 32.23  child.  The court must review the work-related and 
 32.24  education-related child care costs paid and require the obligee 
 32.25  and the public agency, if applicable, to provide verification of 
 32.26  employment or school attendance and documentation of child care 
 32.27  expenses; 
 32.28     (2) the court must calculate the obligor's and obligee's 
 32.29  proportionate responsibility for child care support by 
 32.30  multiplying each party's proportionate share of income available 
 32.31  for child support under subdivision 4, paragraph (c), by the 
 32.32  amount of the obligor's and obligee's shared responsibility for 
 32.33  child care support under paragraph (a), clause (1).  The court 
 32.34  must order the obligor to pay the amount of the obligor's 
 32.35  proportionate responsibility as child care support; 
 32.36     (3) if child care expenses fluctuate during the year 
 33.1   because of seasonal employment or school attendance of the 
 33.2   obligee or extended periods of parenting time with the obligor, 
 33.3   the court must determine child care expenses based on an average 
 33.4   monthly cost; 
 33.5      (4) child care support is not subject to a cost-of-living 
 33.6   adjustment under section 518.641; 
 33.7      (5) the amount allocated for child care expenses terminates 
 33.8   when either party notifies the public authority that the child 
 33.9   care costs have ended and without any legal action on the part 
 33.10  of either party.  The custodial parent must notify the public 
 33.11  authority within 30 days of the date the child care costs ended. 
 33.12  The public authority must verify the information received under 
 33.13  this provision before authorizing termination.  The termination 
 33.14  is effective as of the date of the notification; 
 33.15     (6) in other cases where there is a substantial increase or 
 33.16  decrease in child care expenses, the parties may seek 
 33.17  modification of the order under section 518.64; and 
 33.18     (7) the court may allow the noncustodial parent to care for 
 33.19  the child while the custodial parent is working, as provided in 
 33.20  section 518.175, subdivision 8.  Allowing the noncustodial 
 33.21  parent to care for the child under section 518.175, subdivision 
 33.22  8, is not a reason to deviate from the child support guidelines. 
 33.23     (b) If the obligor's gross income adjusted for child 
 33.24  support is equal to or greater than 150 percent of the federal 
 33.25  poverty guidelines per month, and if the obligor's income 
 33.26  available for child support under subdivision 4, paragraph (a), 
 33.27  meets the income eligibility requirements for child care 
 33.28  assistance under the basic sliding fee program under chapter 
 33.29  119B, the court must order the obligor to pay the lesser of the 
 33.30  following amounts for child care support: 
 33.31     (1) the amount of the obligor's monthly copayment for child 
 33.32  care assistance under the basic sliding fee schedule established 
 33.33  by the commissioner of human services under chapter 119B, based 
 33.34  upon the obligor's income available for child support and the 
 33.35  size of the obligor's household, which is defined as the obligor 
 33.36  plus the child who is a subject of the order for child support; 
 34.1   or 
 34.2      (2) the obligor's proportionate responsibility for child 
 34.3   care support under paragraph (a), clause (2). 
 34.4      Subd. 6.  [MEDICAL SUPPORT.] (a) In ordering medical 
 34.5   support under this section, the court must comply with section 
 34.6   518.1711. 
 34.7      (b) If the obligor's gross income adjusted for child 
 34.8   support is equal to or greater than 150 percent of the federal 
 34.9   poverty guidelines per month, and if the obligor or obligee, or 
 34.10  both, have appropriate health care coverage, the court must 
 34.11  calculate medical support as follows: 
 34.12     (1) the court must determine the cost of the child's health 
 34.13  care coverage; 
 34.14     (2) unless the child is receiving medical assistance under 
 34.15  chapter 256B or MinnesotaCare under chapter 256L, the court must 
 34.16  determine the obligor's and obligee's proportionate 
 34.17  responsibility for medical support by multiplying the amount 
 34.18  under clause (1) by the amount of the obligor's and obligee's 
 34.19  proportionate responsibility for child support under subdivision 
 34.20  4, paragraph (c); and 
 34.21     (3) the court must order the obligor and obligee to pay for 
 34.22  the child's uninsured and unreimbursed medical expenses by 
 34.23  multiplying the amount of the expenses by the amount of the 
 34.24  obligor's and obligee's proportionate responsibility for child 
 34.25  support under subdivision 4, paragraph (c). 
 34.26     (c) If a party's obligation for the health care coverage 
 34.27  premiums is greater than five percent of the party's income 
 34.28  available for child support under subdivision 4, paragraph (b), 
 34.29  the court may order the other party to contribute more for the 
 34.30  cost of the premiums, if doing so would not result in extreme 
 34.31  hardship to that party.  If an additional contribution causes a 
 34.32  party extreme hardship, the court must order the obligor to 
 34.33  contribute the lesser of the two amounts under paragraph (d). 
 34.34     (d) If the obligor's gross income adjusted for child 
 34.35  support is equal to or greater than 150 percent of the federal 
 34.36  poverty guidelines per month, and if the obligor or obligee does 
 35.1   not have appropriate health care coverage under section 
 35.2   518.1711, subdivision 3, the court must order the obligor to pay 
 35.3   the lesser of the following amounts for medical support: 
 35.4      (1) the monthly amount the obligor would pay for the 
 35.5   child's premiums for a household size equal to the obligor plus 
 35.6   the child who is a subject of the order for child support under 
 35.7   the MinnesotaCare program's sliding fee scale that is 
 35.8   established by the commissioner of human services under chapter 
 35.9   256L, if the obligor's income available for child support under 
 35.10  subdivision 4, paragraph (a), meets the income eligibility 
 35.11  requirements for the MinnesotaCare program under chapter 256L.  
 35.12  The obligor's monthly premium payment must not exceed five 
 35.13  percent of the obligor's income available for child support 
 35.14  under subdivision 4, paragraph (a); or 
 35.15     (2) five percent of the obligor's monthly income available 
 35.16  for child support under subdivision 4, paragraph (a), if the 
 35.17  obligor's income available for child support does not meet the 
 35.18  eligibility requirements for the MinnesotaCare program under 
 35.19  chapter 256L. 
 35.20     Subd. 7.  [ORDER FOR COMMUNITY SERVICES.] If the court 
 35.21  finds that the obligor earns 120 percent of the federal poverty 
 35.22  guidelines or less per month and does not have the ability to 
 35.23  provide support under this section, the court may order the 
 35.24  obligor to perform community service in addition to paying the 
 35.25  presumptive minimum for basic support under subdivision 3.  In 
 35.26  ordering community service under this subdivision, the court 
 35.27  must consider whether the obligor has the physical capability of 
 35.28  performing community service and must order community service 
 35.29  that is appropriate for the obligor's abilities. 
 35.30     Subd. 8.  [SUBSTANTIAL UNFAIRNESS TEST.] (a) If the obligee 
 35.31  receives public assistance as defined under section 256.741, 
 35.32  subdivision 1, or if the obligee's monthly gross income adjusted 
 35.33  for child support is equal to or greater than 120 percent of the 
 35.34  federal poverty guidelines for a family size equal to the 
 35.35  obligee plus the number of children who are subjects of the 
 35.36  order for child support, the court may reduce the obligor's 
 36.1   child support obligation by the amount calculated as follows: 
 36.2      (1) calculate the sum of the obligor's proportionate 
 36.3   responsibility for basic support under subdivision 4, child care 
 36.4   support under subdivision 5, and medical support under 
 36.5   subdivision 6; 
 36.6      (2) subtract the amount calculated under clause (1) from 
 36.7   the obligor's monthly gross income adjusted for child support 
 36.8   under subdivision 2; and 
 36.9      (3) if the amount calculated under clause (2) is less than 
 36.10  120 percent of the federal poverty guidelines for one person, 
 36.11  subtract the amount from 120 percent of the federal poverty 
 36.12  guidelines for one person and reduce the support order as 
 36.13  provided in paragraph (b). 
 36.14     (b) In reducing the amount of the obligor's child support 
 36.15  obligation, the court must subtract the amount calculated under 
 36.16  paragraph (a), clause (3), from the obligor's medical support 
 36.17  obligation.  If the obligor's medical support obligation is less 
 36.18  than the amount calculated under paragraph (a), clause (3), the 
 36.19  court must then subtract the remaining amount from the obligor's 
 36.20  child care support obligation.  The court must then subtract any 
 36.21  remaining amount from the obligor's basic support obligation. 
 36.22     (c) The obligor's basic support obligation after reductions 
 36.23  under this subdivision must be equal to or greater than the 
 36.24  presumptive minimum for basic support under subdivision 3. 
 36.25     Sec. 20.  [518.5417] [DEVIATIONS.] 
 36.26     Subdivision 1.  [GENERAL FACTORS.] In addition to the 
 36.27  provisions relating to the amount of child support ordered under 
 36.28  sections 518.5413 to 518.5416, the court must consider all 
 36.29  relevant factors, including the following, in setting or 
 36.30  modifying child support or in determining whether to deviate 
 36.31  from that amount: 
 36.32     (1) all earnings, income, and resources of the parents, 
 36.33  including real and personal property, but excluding income from 
 36.34  excess employment of the obligor or obligee that meets the 
 36.35  criteria of section 518.5413, subdivision 4; 
 36.36     (2) the special needs of the child to be supported, 
 37.1   including: 
 37.2      (i) the physical and emotional condition of the child; 
 37.3      (ii) any impairment, limitation, or disability of the 
 37.4   child, and the need for special services or education; and 
 37.5      (iii) any special ability or talent of the child and the 
 37.6   cost of educating or training that ability or talent; 
 37.7      (3) the standard of living the child would enjoy if the 
 37.8   parents were currently living together, recognizing that the 
 37.9   parents have separate households; 
 37.10     (4) the age and health of the child and each parent; 
 37.11     (5) the debts and liabilities of the child and each parent 
 37.12  as provided in subdivision 2; 
 37.13     (6) each parent's eligibility for or receipt of public 
 37.14  assistance as defined under section 256.741, subdivision 1.  A 
 37.15  court may deviate upward from the amount of child support under 
 37.16  the guidelines if a parent does not receive the public 
 37.17  assistance that the parent is eligible to receive; 
 37.18     (7) the child's private school tuition costs if the child 
 37.19  is enrolled in a private school before a parent brings the 
 37.20  action for child support; 
 37.21     (8) the best interests of the child; and 
 37.22     (9) other factors that the court considers relevant. 
 37.23     Subd. 2.  [DEBT.] (a) In establishing or modifying a 
 37.24  support obligation, the court may consider debts owed to private 
 37.25  creditors, but only if: 
 37.26     (1) the right to support has not been assigned under 
 37.27  section 256.741; 
 37.28     (2) the court determines that the debt was reasonably 
 37.29  incurred for necessary support of the child or parent or for the 
 37.30  necessary generation of income.  If the debt was incurred for 
 37.31  the necessary generation of income, the court must consider only 
 37.32  the amount of debt that is essential to the continuing 
 37.33  generation of income; and 
 37.34     (3) the party requesting a departure produces a sworn 
 37.35  schedule of the debts, with supporting documentation, showing 
 37.36  goods or services purchased, the recipient of them, the amount 
 38.1   of the original debt, the outstanding balance, the monthly 
 38.2   payment, and the number of months until the debt will be fully 
 38.3   paid. 
 38.4      (b) A schedule prepared under paragraph (a), clause (3), 
 38.5   must contain a statement that the debt will be fully paid after 
 38.6   the number of months shown in the schedule, barring emergencies 
 38.7   beyond the party's control. 
 38.8      (c) Any further departure below the guidelines that is 
 38.9   based on a consideration of debts owed to private creditors must 
 38.10  not exceed 18 months in duration, after which the support must 
 38.11  increase automatically to the level ordered by the court.  
 38.12  Nothing in this section must be construed to prohibit one or 
 38.13  more step increases in support to reflect debt retirement during 
 38.14  the 18-month period. 
 38.15     (d) If payment of debt is ordered under this section, the 
 38.16  payment must be ordered to be in the nature of child support. 
 38.17     Subd. 3.  [EVIDENCE.] The court may receive evidence on the 
 38.18  factors in this section to determine if the guidelines should be 
 38.19  exceeded or modified in a particular case. 
 38.20     Subd. 4.  [NO DEVIATION WHEN PAYMENTS ARE ASSIGNED TO THE 
 38.21  PUBLIC AUTHORITY EXCEPT FOR EXTREME HARDSHIP.] If the child 
 38.22  support payments are assigned to the public authority under 
 38.23  section 256.741, the court may not deviate downward from the 
 38.24  child support guidelines unless the court specifically finds 
 38.25  that the failure to deviate downward would impose an extreme 
 38.26  hardship on the obligor. 
 38.27     Sec. 21.  [518.5418] [WRITTEN FINDINGS.] 
 38.28     Subdivision 1.  [WORKSHEET.] The court must attach the 
 38.29  completed child support worksheet under section 518.5416 to the 
 38.30  child support order. 
 38.31     Subd. 2.  [NO DEVIATION.] If the court does not deviate 
 38.32  from the guidelines, the court must make written findings 
 38.33  concerning the amount of the parties' income used as the basis 
 38.34  for the guidelines calculation and any other significant 
 38.35  evidentiary factors affecting the determination of child support.
 38.36     Subd. 3.  [DEVIATION.] (a) If the court deviates from the 
 39.1   guidelines, the court must make written findings giving the 
 39.2   amount of child support calculated under the guidelines and the 
 39.3   reasons for the deviation, and must specifically address the 
 39.4   criteria for deviation under section 518.5417, including how the 
 39.5   deviation serves the best interests of the child. 
 39.6      (b) The court may deviate from the guidelines if both 
 39.7   parties agree and the court makes written findings that it is in 
 39.8   the best interests of the child, except that in cases where 
 39.9   child support payments are assigned to the public authority 
 39.10  under section 256.741, the court may deviate downward only as 
 39.11  provided in section 518.5417, subdivision 4.  Nothing in this 
 39.12  section prohibits the court from deviating in other cases. 
 39.13     Sec. 22.  [518.5421] [ASSIGNMENT.] 
 39.14     Subdivision 1.  [GENERAL.] The court must direct that all 
 39.15  payments ordered for maintenance and support be made to the 
 39.16  public authority so long as the obligee is receiving or has 
 39.17  applied for public assistance or has applied for child support 
 39.18  and maintenance collection services.  One public authority may 
 39.19  act on behalf of another public authority.  This includes the 
 39.20  authority to represent the legal interests of or execute 
 39.21  documents on behalf of the other public authority in connection 
 39.22  with the establishment, enforcement, and collection of support, 
 39.23  maintenance, and collection on judgments.  Amounts received by 
 39.24  the public authority greater than the amount granted to the 
 39.25  obligee must be remitted to the obligee. 
 39.26     Subd. 2.  [JUDGMENTS.] The public authority is joined as a 
 39.27  party in each case in which rights are assigned under section 
 39.28  256.741, subdivision 2.  The court administrator must enter and 
 39.29  docket a judgment obtained by operation of law under section 
 39.30  548.091, subdivision 1, in the name of the public authority to 
 39.31  the extent that the obligation has been assigned.  When 
 39.32  arrearages are reduced to judgment under circumstances in which 
 39.33  section 548.091 is not applicable, the court must grant judgment 
 39.34  in favor of, and in the name of, the public authority to the 
 39.35  extent that the arrearages are assigned.  After filing notice of 
 39.36  an assignment with the court administrator, who must enter the 
 40.1   notice in the docket, the public authority may enforce a 
 40.2   judgment entered before the assignment of rights as if the 
 40.3   judgment were granted to it and in its name, to the extent that 
 40.4   the arrearages in that judgment are assigned. 
 40.5      Subd. 3.  [IV-D CASES.] The public authority is a real 
 40.6   party in interest in any IV-D case where there has been an 
 40.7   assignment of support.  In all other IV-D cases, the public 
 40.8   authority has a pecuniary interest, as well as an interest in 
 40.9   the welfare of the children involved in those cases.  The public 
 40.10  authority may intervene as a matter of right in those cases to 
 40.11  ensure that child support orders are obtained and enforced which 
 40.12  provide for an appropriate and accurate level of basic support, 
 40.13  medical support, and child care support.  If the public 
 40.14  authority participates in a IV-D case where the action taken by 
 40.15  the public authority requires the use of an attorney's services, 
 40.16  the public authority must be represented by an attorney 
 40.17  consistent with the provisions in section 518.255. 
 40.18     Sec. 23.  [518.5422] [FEES.] 
 40.19     Subdivision 1.  [OBLIGOR FEE.] When the public authority 
 40.20  provides child support collection services either to a public 
 40.21  assistance recipient or to a party who does not receive public 
 40.22  assistance, the public authority may, upon written notice to the 
 40.23  obligor, charge a monthly collection fee equivalent to the full 
 40.24  monthly cost to the county of providing collection services in 
 40.25  addition to the amount of the child support which was ordered by 
 40.26  the court.  The fee must be deposited in the county general 
 40.27  fund.  The service fee assessed is limited to ten percent of the 
 40.28  monthly court-ordered child support and must not be assessed to 
 40.29  obligors who are current in payment of the monthly court ordered 
 40.30  child support. 
 40.31     Subd. 2.  [OBLIGEE FEE.] An application fee of $25 must be 
 40.32  paid by the person who applies for child support and maintenance 
 40.33  collection services, except persons who are receiving public 
 40.34  assistance as defined in section 256.741, persons who transfer 
 40.35  from public assistance to nonpublic assistance status, and minor 
 40.36  parents and parents enrolled in a public secondary school, area 
 41.1   learning center, or alternative learning program approved by the 
 41.2   commissioner of children, families, and learning. 
 41.3      Subd. 3.  [TAX INTERCEPT FEES.] Fees assessed by federal 
 41.4   tax agencies for collection of overdue support owed to or on 
 41.5   behalf of a person not receiving public assistance must be 
 41.6   imposed on the person for whom these services are provided.  The 
 41.7   public authority, upon written notice to the obligee, must 
 41.8   assess a fee of $25 to the person not receiving public 
 41.9   assistance for each successful federal tax interception.  The 
 41.10  fee must be withheld prior to the release of the funds received 
 41.11  from each interception and deposited in the general fund. 
 41.12     Subd. 4.  [COMPLIANCE WITH FEDERAL LAW.] The limitations of 
 41.13  this section on the assessment of fees do not apply to the 
 41.14  extent inconsistent with the requirements of federal law for 
 41.15  receiving funds for the programs under titles IV-A and IV-D of 
 41.16  the Social Security Act, United States Code, title 42, sections 
 41.17  601 to 613, and United States Code, title 42, sections 651 to 
 41.18  662. 
 41.19     Sec. 24.  [518.5423] [SCHEDULE OF BASIC SUPPORT.] 
 41.20     The schedule of basic support for purposes of calculating 
 41.21  basic support under section 518.5416, subdivision 4, is the 
 41.22  following: 
 41.23  Combined 
 41.24  income   
 41.25  available                        Children
 41.26  for Child 
 41.27  Support      1        2        3        4        5        6
 41.28  Less than $1,000 
 41.29  $ 1,000   $  185   $  279   $  314   $  364   $  423   $  490
 41.30  $ 1,100   $  203   $  306   $  345   $  400   $  464   $  539
 41.31  $ 1,200   $  221   $  334   $  376   $  436   $  506   $  587
 41.32  $ 1,300   $  238   $  361   $  407   $  472   $  548   $  636
 41.33  $ 1,400   $  256   $  388   $  438   $  508   $  590   $  684
 41.34  $ 1,500   $  273   $  416   $  470   $  545   $  632   $  733
 41.35  $ 1,600   $  290   $  443   $  500   $  580   $  673   $  781
 41.36  $ 1,700   $  307   $  470   $  531   $  616   $  715   $  830
 41.37  $ 1,800   $  324   $  496   $  562   $  652   $  757   $  878
 41.38  $ 1,900   $  341   $  523   $  593   $  688   $  798   $  926
 42.1   $ 2,000   $  358   $  550   $  624   $  724   $  840   $  974
 42.2   $ 2,100   $  375   $  577   $  655   $  760   $  881   $1,022
 42.3   $ 2,200   $  391   $  603   $  686   $  796   $  922   $1,070
 42.4   $ 2,300   $  408   $  630   $  716   $  831   $  964   $1,118
 42.5   $ 2,400   $  424   $  656   $  747   $  867   $1,005   $1,166
 42.6   $ 2,500   $  440   $  683   $  778   $  903   $1,046   $1,214
 42.7   $ 2,600   $  456   $  709   $  808   $  938   $1,087   $1,261
 42.8   $ 2,700   $  472   $  735   $  839   $  974   $1,128   $1,309
 42.9   $ 2,800   $  488   $  761   $  869   $1,009   $1,169   $1,357
 42.10  $ 2,900   $  503   $  787   $  900   $1,045   $1,210   $1,404
 42.11  $ 3,000   $  519   $  813   $  930   $1,080   $1,251   $1,452
 42.12  $ 3,100   $  534   $  839   $  960   $1,115   $1,292   $1,499
 42.13  $ 3,200   $  550   $  865   $  991   $1,149   $1,333   $1,546
 42.14  $ 3,300   $  565   $  890   $1,021   $1,184   $1,374   $1,594
 42.15  $ 3,400   $  580   $  916   $1,051   $1,219   $1,415   $1,641
 42.16  $ 3,500   $  595   $  941   $1,082   $1,253   $1,455   $1,688
 42.17  $ 3,600   $  610   $  967   $1,112   $1,288   $1,496   $1,735
 42.18  $ 3,700   $  625   $  992   $1,142   $1,323   $1,536   $1,782
 42.19  $ 3,800   $  639   $1,018   $1,172   $1,358   $1,577   $1,829
 42.20  $ 3,900   $  654   $1,043   $1,202   $1,393   $1,617   $1,876
 42.21  $ 4,000   $  668   $1,068   $1,232   $1,428   $1,658   $1,923
 42.22  $ 4,100   $  682   $1,093   $1,262   $1,463   $1,698   $1,970
 42.23  $ 4,200   $  696   $1,118   $1,292   $1,498   $1,738   $2,017
 42.24  $ 4,300   $  710   $1,143   $1,322   $1,533   $1,779   $2,063
 42.25  $ 4,400   $  724   $1,168   $1,352   $1,567   $1,819   $2,110
 42.26  $ 4,500   $  738   $1,193   $1,382   $1,602   $1,859   $2,156
 42.27  $ 4,600   $  750   $1,210   $1,398   $1,622   $1,882   $2,183
 42.28  $ 4,700   $  761   $1,227   $1,415   $1,641   $1,904   $2,208
 42.29  $ 4,800   $  773   $1,243   $1,430   $1,660   $1,925   $2,233
 42.30  $ 4,900   $  784   $1,259   $1,446   $1,678   $1,945   $2,256
 42.31  $ 5,000   $  795   $1,275   $1,460   $1,695   $1,965   $2,279
 42.32  $ 5,100   $  806   $1,290   $1,474   $1,711   $1,983   $2,301
 42.33  $ 5,200   $  816   $1,305   $1,487   $1,725   $2,001   $2,321
 42.34  $ 5,300   $  827   $1,320   $1,500   $1,739   $2,018   $2,341
 42.35  $ 5,400   $  837   $1,334   $1,512   $1,753   $2,034   $2,360
 42.36  $ 5,500   $  847   $1,348   $1,524   $1,766   $2,050   $2,378
 43.1   $ 5,600   $  857   $1,363   $1,540   $1,785   $2,072   $2,404
 43.2   $ 5,700   $  866   $1,378   $1,556   $1,805   $2,094   $2,429
 43.3   $ 5,800   $  876   $1,393   $1,572   $1,824   $2,115   $2,454
 43.4   $ 5,900   $  885   $1,408   $1,587   $1,842   $2,136   $2,478
 43.5   $ 6,000   $  894   $1,422   $1,602   $1,860   $2,156   $2,501
 43.6   $ 6,100   $  903   $1,436   $1,618   $1,878   $2,177   $2,525
 43.7   $ 6,200   $  911   $1,450   $1,633   $1,895   $2,198   $2,549
 43.8   $ 6,300   $  920   $1,463   $1,648   $1,911   $2,218   $2,573
 43.9   $ 6,400   $  928   $1,476   $1,663   $1,928   $2,238   $2,595
 43.10  $ 6,500   $  936   $1,489   $1,677   $1,944   $2,257   $2,618
 43.11  $ 6,600   $  945   $1,503   $1,694   $1,963   $2,279   $2,643
 43.12  $ 6,700   $  954   $1,518   $1,710   $1,982   $2,301   $2,669
 43.13  $ 6,800   $  963   $1,533   $1,726   $2,001   $2,322   $2,694
 43.14  $ 6,900   $  972   $1,547   $1,742   $2,019   $2,343   $2,718
 43.15  $ 7,000   $  980   $1,561   $1,757   $2,037   $2,364   $2,743
 43.16  $ 7,100   $  990   $1,576   $1,774   $2,056   $2,386   $2,768
 43.17  $ 7,200   $  999   $1,591   $1,790   $2,075   $2,408   $2,794
 43.18  $ 7,300   $1,009   $1,606   $1,806   $2,094   $2,430   $2,819
 43.19  $ 7,400   $1,018   $1,621   $1,822   $2,112   $2,452   $2,844
 43.20  $ 7,500   $1,028   $1,635   $1,838   $2,130   $2,473   $2,868
 43.21  $ 7,600   $1,037   $1,649   $1,853   $2,148   $2,493   $2,892
 43.22  $ 7,700   $1,046   $1,663   $1,868   $2,165   $2,514   $2,916
 43.23  $ 7,800   $1,055   $1,677   $1,883   $2,182   $2,534   $2,939
 43.24  $ 7,900   $1,063   $1,691   $1,898   $2,199   $2,553   $2,962
 43.25  $ 8,000   $1,072   $1,704   $1,912   $2,216   $2,573   $2,985
 43.26  $ 8,100   $1,081   $1,719   $1,928   $2,234   $2,594   $3,009
 43.27  $ 8,200   $1,089   $1,733   $1,943   $2,252   $2,615   $3,034
 43.28  $ 8,300   $1,097   $1,748   $1,959   $2,269   $2,636   $3,057
 43.29  $ 8,400   $1,105   $1,762   $1,974   $2,286   $2,657   $3,081
 43.30  $ 8,500   $1,114   $1,777   $1,989   $2,304   $2,676   $3,104
 43.31  $ 8,600   $1,127   $1,797   $2,012   $2,334   $2,708   $3,141
 43.32  $ 8,700   $1,140   $1,818   $2,036   $2,362   $2,739   $3,178
 43.33  $ 8,800   $1,153   $1,839   $2,059   $2,389   $2,771   $3,214
 43.34  $ 8,900   $1,166   $1,860   $2,083   $2,416   $2,802   $3,251
 43.35  $ 9,000   $1,179   $1,881   $2,106   $2,443   $2,834   $3,287
 43.36  $ 9,100   $1,192   $1,902   $2,129   $2,470   $2,865   $3,324
 44.1   $ 9,200   $1,205   $1,923   $2,153   $2,497   $2,897   $3,360
 44.2   $ 9,300   $1,218   $1,944   $2,176   $2,524   $2,928   $3,397
 44.3   $ 9,400   $1,231   $1,965   $2,200   $2,552   $2,960   $3,433
 44.4   $ 9,500   $1,245   $1,986   $2,223   $2,579   $2,991   $3,470
 44.5   $ 9,600   $1,258   $2,006   $2,246   $2,606   $3,023   $3,506
 44.6   $ 9,700   $1,271   $2,027   $2,270   $2,633   $3,054   $3,543
 44.7   $ 9,800   $1,284   $2,048   $2,293   $2,660   $3,086   $3,579
 44.8   $ 9,900   $1,297   $2,069   $2,317   $2,687   $3,117   $3,616
 44.9   $10,000   $1,310   $2,090   $2,340   $2,714   $3,149   $3,652
 44.10  $10,100   $1,323   $2,111   $2,363   $2,742   $3,180   $3,689
 44.11  $10,200   $1,336   $2,132   $2,387   $2,769   $3,212   $3,726
 44.12  $10,300   $1,349   $2,153   $2,410   $2,796   $3,243   $3,762
 44.13  $10,400   $1,362   $2,174   $2,434   $2,823   $3,275   $3,799
 44.14  $10,500   $1,376   $2,195   $2,457   $2,850   $3,306   $3,835
 44.15  $10,600   $1,389   $2,215   $2,480   $2,877   $3,338   $3,872
 44.16  $10,700   $1,402   $2,236   $2,504   $2,904   $3,369   $3,908
 44.17  $10,800   $1,415   $2,257   $2,527   $2,932   $3,401   $3,945
 44.18  $10,900   $1,428   $2,278   $2,551   $2,959   $3,432   $3,981
 44.19  $11,000   $1,441   $2,299   $2,574   $2,986   $3,464   $4,018
 44.20  $11,100   $1,454   $2,320   $2,597   $3,013   $3,495   $4,054
 44.21  $11,200   $1,467   $2,341   $2,621   $3,040   $3,527   $4,091
 44.22  $11,300   $1,480   $2,362   $2,644   $3,067   $3,558   $4,127
 44.23  $11,400   $1,493   $2,383   $2,668   $3,094   $3,590   $4,164
 44.24  $11,500   $1,507   $2,404   $2,691   $3,122   $3,621   $4,200
 44.25  $11,600   $1,520   $2,424   $2,714   $3,149   $3,652   $4,237
 44.26  $11,700   $1,533   $2,445   $2,738   $3,176   $3,684   $4,273
 44.27  $11,800   $1,546   $2,466   $2,761   $3,203   $3,715   $4,310
 44.28  $11,900   $1,559   $2,487   $2,785   $3,230   $3,747   $4,346
 44.29  $12,000   $1,572   $2,508   $2,808   $3,257   $3,778   $4,383
 44.30  $12,100   $1,585   $2,529   $2,831   $3,284   $3,810   $4,420
 44.31  $12,200   $1,598   $2,550   $2,855   $3,312   $3,841   $4,456
 44.32  $12,300   $1,611   $2,571   $2,878   $3,339   $3,873   $4,493
 44.33  $12,400   $1,624   $2,592   $2,902   $3,366   $3,904   $4,529
 44.34  $12,500   $1,638   $2,613   $2,925   $3,393   $3,936   $4,566
 44.35  $12,600   $1,651   $2,633   $2,948   $3,420   $3,967   $4,602
 44.36  $12,700   $1,664   $2,654   $2,972   $3,447   $3,999   $4,639
 45.1   $12,800   $1,677   $2,675   $2,995   $3,474   $4,030   $4,675
 45.2   $12,900   $1,690   $2,696   $3,019   $3,502   $4,062   $4,712
 45.3   $13,000   $1,703   $2,717   $3,042   $3,529   $4,093   $4,748
 45.4   $13,100   $1,716   $2,738   $3,065   $3,556   $4,125   $4,785
 45.5   $13,200   $1,729   $2,759   $3,089   $3,583   $4,156   $4,821
 45.6   $13,300   $1,742   $2,780   $3,112   $3,610   $4,188   $4,858
 45.7   $13,400   $1,755   $2,801   $3,136   $3,637   $4,219   $4,894
 45.8   $13,500   $1,769   $2,822   $3,159   $3,664   $4,251   $4,931
 45.9   $13,600   $1,782   $2,842   $3,182   $3,692   $4,282   $4,967
 45.10  $13,700   $1,795   $2,863   $3,206   $3,719   $4,314   $5,004
 45.11  $13,800   $1,808   $2,884   $3,229   $3,746   $4,345   $5,040
 45.12  $13,900   $1,821   $2,905   $3,253   $3,773   $4,377   $5,077
 45.13  $14,000   $1,834   $2,926   $3,276   $3,800   $4,408   $5,113
 45.14  $14,100   $1,847   $2,947   $3,299   $3,827   $4,440   $5,150
 45.15  $14,200   $1,860   $2,968   $3,323   $3,854   $4,471   $5,187
 45.16  $14,300   $1,873   $2,989   $3,346   $3,882   $4,503   $5,223
 45.17  $14,400   $1,886   $3,010   $3,370   $3,909   $4,534   $5,260
 45.18  $14,500   $1,900   $3,031   $3,393   $3,936   $4,566   $5,296
 45.19  $14,600   $1,913   $3,051   $3,416   $3,963   $4,597   $5,333
 45.20  $14,700   $1,926   $3,072   $3,440   $3,990   $4,629   $5,369
 45.21  $14,800   $1,939   $3,093   $3,463   $4,017   $4,660   $5,406
 45.22  $14,900   $1,952   $3,114   $3,487   $4,044   $4,692   $5,442
 45.23  $15,000   $1,965   $3,135   $3,510   $4,072   $4,723   $5,479
 45.24     Sec. 25.  Minnesota Statutes 2000, section 518.551, 
 45.25  subdivision 5c, is amended to read: 
 45.26     Subd. 5c.  [CHILD SUPPORT GUIDELINES TO BE REVIEWED EVERY 
 45.27  FOUR YEARS REVIEW.] No later than 1994 2002 and every four years 
 45.28  after that, the department of human services shall must conduct 
 45.29  a review of the child support guidelines.  
 45.30     Sec. 26.  Minnesota Statutes 2000, section 518.553, is 
 45.31  amended to read: 
 45.32     518.553 [PAYMENT AGREEMENTS.] 
 45.33     In proposing or approving proposed written payment 
 45.34  agreements for purposes of section 518.551 sections 518.1711 and 
 45.35  518.5416, the court, a child support magistrate, or the public 
 45.36  authority shall take into consideration the amount of the 
 46.1   arrearages, the amount of the current support order, any pending 
 46.2   request for modification, and the earnings of the obligor.  For 
 46.3   the purpose of section 518.1711, an obligor may include a 
 46.4   custodial parent.  The court, child support magistrate, or 
 46.5   public authority shall consider the individual financial 
 46.6   circumstances of each obligor in evaluating the obligor's 
 46.7   ability to pay any proposed payment agreement and shall propose 
 46.8   a reasonable payment agreement tailored to the individual 
 46.9   financial circumstances of each obligor. 
 46.10     Sec. 27.  Minnesota Statutes 2000, section 518.6111, 
 46.11  subdivision 1, is amended to read: 
 46.12     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
 46.13  section, the following terms have the meanings provided in this 
 46.14  subdivision unless otherwise stated. 
 46.15     (b) "Payor of funds" means any person or entity that 
 46.16  provides funds to an obligor, including an employer as defined 
 46.17  under chapter 24 of the Internal Revenue Code, section 3401(d), 
 46.18  an independent contractor, payor of worker's compensation 
 46.19  benefits or unemployment benefits, or a financial institution as 
 46.20  defined in section 13B.06. 
 46.21     (c) "Business day" means a day on which state offices are 
 46.22  open for regular business. 
 46.23     (d) "Arrears" means amounts owed under a support order that 
 46.24  are past due. 
 46.25     (e) "Obligor" means a person obligated to pay maintenance 
 46.26  or support, and for the purpose of section 518.1711, may include 
 46.27  a custodial parent. 
 46.28     Sec. 28.  Minnesota Statutes 2000, section 518.64, 
 46.29  subdivision 2, is amended to read: 
 46.30     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
 46.31  respecting maintenance or support may be modified upon a showing 
 46.32  of one or more of the following:  (1) substantially increased or 
 46.33  decreased earnings of a party; (2) substantially increased or 
 46.34  decreased need of a party or the child or children that are the 
 46.35  subject of these proceedings; (3) receipt of assistance under 
 46.36  the AFDC program formerly codified under sections 256.72 to 
 47.1   256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
 47.2   change in the cost of living for either party as measured by the 
 47.3   federal bureau of statistics, any of which makes the terms 
 47.4   unreasonable and unfair; (5) extraordinary medical expenses of 
 47.5   the child not provided for under section 518.171 518.1711; or (6)
 47.6   the addition of work-related or education-related child care 
 47.7   expenses of the obligee or a substantial increase or decrease in 
 47.8   existing work-related or education-related child care expenses.  
 47.9   Implementation of section 518.5416 is not a basis for 
 47.10  modification under this section.  The fact that a parent has had 
 47.11  additional children after the entry of a child support order is 
 47.12  not a basis for modification under this section. 
 47.13     On a motion to modify support, the needs of any child the 
 47.14  obligor has after the entry of the support order that is the 
 47.15  subject of a modification motion shall be considered as provided 
 47.16  by section 518.551, subdivision 5f. 
 47.17     (b) It is presumed that there has been a substantial change 
 47.18  in circumstances under paragraph (a) and the terms of a current 
 47.19  support order shall be rebuttably presumed to be unreasonable 
 47.20  and unfair if: 
 47.21     (1) the application of the child support guidelines in 
 47.22  section 518.551, subdivision 5 sections 518.5413 to 518.5416, to 
 47.23  the current circumstances of the parties results in a calculated 
 47.24  court order that is at least 20 percent and at least $50 per 
 47.25  month higher or lower than the current support order; 
 47.26     (2) the medical support provisions of the order established 
 47.27  under section 518.171 518.1711 are not enforceable by the public 
 47.28  authority or the custodial a parent; 
 47.29     (3) health care coverage ordered under section 518.171 is 
 47.30  not available to the child for whom the order is established by 
 47.31  the parent ordered to provide is no longer appropriate under 
 47.32  section 518.1711; or 
 47.33     (4) the existing support obligation is in the form of a 
 47.34  statement of percentage and not a specific dollar amount.  
 47.35     (c) On a motion for modification of maintenance, including 
 47.36  a motion for the extension of the duration of a maintenance 
 48.1   award, the court shall apply, in addition to all other relevant 
 48.2   factors, the factors for an award of maintenance under section 
 48.3   518.552 that exist at the time of the motion.  On a motion for 
 48.4   modification of support, the court:  
 48.5      (1) shall apply section 518.551, subdivision 5 518.5416, 
 48.6   and shall not consider the financial circumstances of each 
 48.7   party's spouse, if any; and 
 48.8      (2) shall not consider compensation received by a party for 
 48.9   employment in excess of a 40-hour work week, provided that the 
 48.10  party demonstrates, and the court finds, that: 
 48.11     (i) the excess employment began after entry of the existing 
 48.12  support order; 
 48.13     (ii) the excess employment is voluntary and not a condition 
 48.14  of employment; 
 48.15     (iii) the excess employment is in the nature of additional, 
 48.16  part-time employment, or overtime employment compensable by the 
 48.17  hour or fractions of an hour; 
 48.18     (iv) the party's compensation structure has not been 
 48.19  changed for the purpose of affecting a support or maintenance 
 48.20  obligation; 
 48.21     (v) in the case of an obligor, current child support 
 48.22  payments are at least equal to the guidelines amount based on 
 48.23  income not excluded under this clause; and 
 48.24     (vi) in the case of an obligor who is in arrears in child 
 48.25  support payments to the obligee, any net income from excess 
 48.26  employment must be used to pay the arrearages until the 
 48.27  arrearages are paid in full. 
 48.28     (d) A modification of support or maintenance, including 
 48.29  interest that accrued pursuant to under section 548.091, may be 
 48.30  made retroactive only with respect to any period during which 
 48.31  the petitioning party has pending a motion for modification but 
 48.32  only from the date of service of notice of the motion on the 
 48.33  responding party and on the public authority if public 
 48.34  assistance is being furnished or the county attorney is the 
 48.35  attorney of record.  However, modification may be applied to an 
 48.36  earlier period if the court makes express findings that:  
 49.1      (1) the party seeking modification was precluded from 
 49.2   serving a motion by reason of a significant physical or mental 
 49.3   disability, a material misrepresentation of another party, or 
 49.4   fraud upon the court and that the party seeking modification, 
 49.5   when no longer precluded, promptly served a motion; 
 49.6      (2) the party seeking modification was a recipient of 
 49.7   federal Supplemental Security Income (SSI), Title II Older 
 49.8   Americans, Survivor's Disability Insurance (OASDI), other 
 49.9   disability benefits, or public assistance based upon need during 
 49.10  the period for which retroactive modification is sought; or 
 49.11     (3) the order for which the party seeks amendment was 
 49.12  entered by default, the party shows good cause for not 
 49.13  appearing, and the record contains no factual evidence, or 
 49.14  clearly erroneous evidence regarding the individual obligor's 
 49.15  ability to pay.  
 49.16     The court may provide that a reduction in the amount 
 49.17  allocated for child care expenses based on a substantial 
 49.18  decrease in the expenses is effective as of the date the 
 49.19  expenses decreased. 
 49.20     (e) Except for an award of the right of occupancy of the 
 49.21  homestead, provided in section 518.63, all divisions of real and 
 49.22  personal property provided by section 518.58 shall be final, and 
 49.23  may be revoked or modified only where the court finds the 
 49.24  existence of conditions that justify reopening a judgment under 
 49.25  the laws of this state, including motions under section 518.145, 
 49.26  subdivision 2.  The court may impose a lien or charge on the 
 49.27  divided property at any time while the property, or subsequently 
 49.28  acquired property, is owned by the parties or either of them, 
 49.29  for the payment of maintenance or support money, or may 
 49.30  sequester the property as is provided by section 518.24. 
 49.31     (f) The court need not hold an evidentiary hearing on a 
 49.32  motion for modification of maintenance or support. 
 49.33     (g) Section 518.14 shall govern the award of attorney fees 
 49.34  for motions brought under this subdivision. 
 49.35     Sec. 29.  Minnesota Statutes 2000, section 518.641, 
 49.36  subdivision 1, is amended to read: 
 50.1      Subdivision 1.  [REQUIREMENT.] An order for maintenance or 
 50.2   child support or medical support under section 518.1711 shall 
 50.3   provide for a biennial adjustment in the amount to be paid based 
 50.4   on a change in the cost of living.  An order that provides for a 
 50.5   cost-of-living adjustment shall specify the cost-of-living index 
 50.6   to be applied and the date on which the cost-of-living 
 50.7   adjustment shall become effective.  The court may use the 
 50.8   consumer price index for all urban consumers, Minneapolis-St. 
 50.9   Paul (CPI-U), the consumer price index for wage earners and 
 50.10  clerical, Minneapolis-St. Paul (CPI-W), or another 
 50.11  cost-of-living index published by the department of labor which 
 50.12  it specifically finds is more appropriate.  Cost-of-living 
 50.13  increases under this section shall be compounded.  The court may 
 50.14  also increase the amount by more than the cost-of-living 
 50.15  adjustment by agreement of the parties or by making further 
 50.16  findings.  The adjustment becomes effective on the first of May 
 50.17  of the year in which it is made, for cases in which payment is 
 50.18  made to the public authority.  For cases in which payment is not 
 50.19  made to the public authority, application for an adjustment may 
 50.20  be made in any month but no application for an adjustment may be 
 50.21  made sooner than two years after the date of the dissolution 
 50.22  decree.  A court may waive the requirement of the cost-of-living 
 50.23  clause if it expressly finds that the obligor's occupation or 
 50.24  income, or both, does not provide for cost-of-living adjustment 
 50.25  or that the order for maintenance or child or medical support 
 50.26  has a provision such as a step increase that has the effect of a 
 50.27  cost-of-living clause.  The court may waive a cost-of-living 
 50.28  adjustment in a maintenance order if the parties so agree in 
 50.29  writing.  The commissioner of human services may promulgate 
 50.30  rules for child support adjustments under this section in 
 50.31  accordance with under the rulemaking provisions of chapter 14.  
 50.32  Notice of this statute must comply with section 518.68, 
 50.33  subdivision 2. 
 50.34     Sec. 30.  Minnesota Statutes 2000, section 518.641, 
 50.35  subdivision 3, is amended to read: 
 50.36     Subd. 3.  [RESULT OF HEARING.] (a) If, at a hearing 
 51.1   pursuant to under this section regarding a maintenance or child 
 51.2   support adjustment, the obligor establishes an insufficient cost 
 51.3   of living or other increase in income that prevents fulfillment 
 51.4   of the adjusted maintenance or child support obligation, the 
 51.5   court may direct that all or part of the adjustment not take 
 51.6   effect.  If, at the hearing, the obligor does not establish this 
 51.7   insufficient increase in income, the adjustment shall take 
 51.8   effect as of the date it would have become effective had no 
 51.9   hearing been requested.  
 51.10     (b) If, at a hearing under this section regarding a medical 
 51.11  support adjustment, the obligor establishes that the adjustment 
 51.12  exceeds the actual cost of the health care coverage, the court 
 51.13  may direct that all or part of the adjustment not take effect.  
 51.14  If, at the hearing, the obligor does not establish that the 
 51.15  adjusted medical support exceeds the actual cost of health care 
 51.16  coverage, the adjustment must take effect as of the date it 
 51.17  would have become effective had no hearing been requested. 
 51.18     Sec. 31.  Minnesota Statutes 2000, section 518.641, 
 51.19  subdivision 4, is amended to read: 
 51.20     Subd. 4.  [FORM.] The department of human services shall 
 51.21  prepare and make available to the court and obligors a form to 
 51.22  be submitted to the department by the obligor in support of a 
 51.23  request for hearing under this section regarding a child support 
 51.24  or medical support order.  
 51.25     Sec. 32.  Minnesota Statutes 2000, section 518.641, 
 51.26  subdivision 5, is amended to read: 
 51.27     Subd. 5.  [REQUEST FOR COST-OF-LIVING CLAUSE.] A motion for 
 51.28  enforcement or modification of an existing maintenance or child 
 51.29  support or medical support order shall include a request for a 
 51.30  cost-of-living clause.  The court may deny the request only upon 
 51.31  an express finding that the obligor's occupation, income, or 
 51.32  both, does not provide for a cost-of-living adjustment or that 
 51.33  the existing maintenance or child support or medical support 
 51.34  order either has a cost-of-living clause or sets forth a step 
 51.35  increase which has the effect of a cost-of-living adjustment. 
 51.36     Sec. 33.  [INSTRUCTION TO REVISOR.] 
 52.1      The revisor of statutes must renumber the sections in 
 52.2   Minnesota Statutes 2000 listed in column A as indicated in 
 52.3   column B and correct cross-references to those sections 
 52.4   throughout Minnesota Statutes and Minnesota Rules. 
 52.5           A                B     
 52.6   518.551, subd. 5c    518.5419
 52.7   518.551, subd. 5d    518.5420
 52.8      The revisor of statutes must change the headnote for 
 52.9   Minnesota Statutes, section 518.551, to "Enforcement." 
 52.10     Sec. 34.  [REPEALER.] 
 52.11     Minnesota Statutes 2000, sections 518.171; and 518.551, 
 52.12  subdivisions 1, 5, 5a, 5b, 5e, 5f, 6, 7, 9, and 11, are repealed.
 52.13     Sec. 35.  [EFFECTIVE DATE.] 
 52.14     This act is effective July 1, 2002.