SF 4245
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/10/2026 09:33 a.m.
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A bill for an act
relating to child support; modifying who pays cost recovery fee; making technical
corrections; amending Minnesota Statutes 2024, section 518A.51.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 518A.51, is amended to read:
518A.51 FEES FOR IV-D SERVICES.
(a) When a recipient of IV-D services is no longer receiving assistance under the state's
title IV-A, IV-E foster care, or medical assistance programs, the public authority responsible
for child support enforcement must notify the recipient, within five working days of the
notification of ineligibility, that IV-D services will be continued unless the public authority
is notified to the contrary by the recipient. The notice must include the implications of
continuing to receive IV-D services, including the available services and fees, cost recovery
fees, and distribution policies relating to fees.
(b) In the case of an individual who has never received assistance under a state program
funded under title IV-A of the Social Security Act and for whom the public authority has
collected at least $550 of support, the public authority must impose an annual federal
collections fee of $35 for each case in which services are furnished. This fee must be retained
by the public authority from support collected on behalf of the individual, but not from the
first $550 collected.
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(c) When the public authority provides full IV-D services to an obligee who has applied
for those services, upon written notice to the obligee, the public authority must charge a
cost recovery fee of two percent of the amount collected. This fee must be deducted from
the amount of the child support and maintenance collected and not assigned under section
518A.81 before disbursement to the obligee. This fee does not apply to an obligee who:
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(1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or
medical assistance programs; or
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(2) has received assistance under the state's title IV-A or IV-E foster care programs,
until the person has not received this assistance for 24 consecutive months.
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deleted text begin (d)deleted text end new text begin (c) new text end When the public authority provides full IV-D services tonew text begin eithernew text end an obligornew text begin or an
obligeenew text end who has applied for such services, upon written notice to new text begin both new text end the obligornew text begin and
obligee, in addition to the monthly court-ordered child support and maintenance obligationnew text end ,
the public authority must charge a cost recovery fee of two percent of the monthly
court-ordered child support and maintenance obligationnew text begin to the obligornew text end . The fee may be
collected through income withholding, as well as by any other enforcement remedy available
to the public authority responsible for child support enforcement.
deleted text begin (e)deleted text end new text begin (d)new text end Fees assessed by state and federal tax agencies for collection of overdue support
owed to or on behalf of a person not receiving public assistance must be imposed on the
person for whom these services are provided. The public authority upon written notice to
the obligee shall assess a fee of $25 to the person not receiving public assistance for each
successful federal tax interception. The fee must be withheld prior to the release of the funds
received from each interception and deposited in the general fund.
deleted text begin (f)deleted text end new text begin (e)new text end Federal collections fees collected under paragraph (b) and cost recovery fees
collected under deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (c) deleted text begin and (d)deleted text end retained by the commissioner of deleted text begin human
services shalldeleted text end new text begin children, youth, and families mustnew text end be considered child support program income
according to Code of Federal Regulations, title 45, section 304.50, and deleted text begin shalldeleted text end new text begin mustnew text end be
deposited in the special revenue fund account established under paragraph deleted text begin (h)deleted text end new text begin (g)new text end . The
commissioner of deleted text begin human servicesdeleted text end new text begin children, youth, and familiesnew text end must elect to recover costs
based on either actual or standardized costs.
deleted text begin (g)deleted text end new text begin (f)new text end The limitations of this section on the assessment of fees shall not apply to the
extent inconsistent with the requirements of federal law for receiving funds for the programs
under title IV-A and title IV-D of the Social Security Act, United States Code, title 42,
sections 601 to 613 and United States Code, title 42, sections 651 to 662.
deleted text begin (h)deleted text end new text begin (g)new text end The commissioner of deleted text begin human servicesdeleted text end new text begin children, youth, and familiesnew text end is authorized
to establish a special revenue fund account to receive the federal collections fees collected
under paragraph (b) and cost recovery fees collected under deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (c) deleted text begin and
(d)deleted text end .
deleted text begin (i)deleted text end new text begin (h)new text end The nonfederal share of the cost recovery fee revenue must be retained by the
commissioner and distributed as follows:
(1) one-half of the revenue must be transferred to the child support system special revenue
account to support the state's administration of the child support enforcement program and
its federally mandated automated system;
(2) an additional portion of the revenue must be transferred to the child support system
special revenue account for expenditures necessary to administer the fees; and
(3) the remaining portion of the revenue must be distributed to the counties to aid the
counties in funding their child support enforcement programs.
deleted text begin (j)deleted text end new text begin (i)new text end The nonfederal share of the federal collections fees must be distributed to the
counties to aid them in funding their child support enforcement programs.
deleted text begin (k)deleted text end new text begin (j)new text end The commissioner of deleted text begin human services shalldeleted text end new text begin children, youth, and families mustnew text end
distribute quarterly any of the funds dedicated to the counties under paragraphs new text begin (h) and new text end (i)
deleted text begin and (j)deleted text end using the methodology specified in section 518A.84, subdivision 11. The funds
received by the counties must be reinvested in the child support enforcement program and
the counties must not reduce the funding of their child support programs by the amount of
the funding distributed.