HF 348

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to family law; child support enforcement; 
  1.3             modifying the accrual of interest on child support 
  1.4             arrearages; amending Minnesota Statutes 1994, section 
  1.5             548.091, subdivision 1a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 548.091, 
  1.8   subdivision 1a, is amended to read: 
  1.9      Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
  1.10  (a) Any payment or installment of support required by a judgment 
  1.11  or decree of dissolution or legal separation, determination of 
  1.12  parentage, an order under chapter 518C, an order under section 
  1.13  256.87, or an order under section 260.251, that is not paid or 
  1.14  withheld from the obligor's income as required under section 
  1.15  518.611 or 518.613, is a judgment by operation of law on and 
  1.16  after the date it is due and is entitled to full faith and 
  1.17  credit in this state and any other state.  Except as otherwise 
  1.18  provided by paragraph (b), interest accrues from the date the 
  1.19  unpaid amount due is greater than the current support due at the 
  1.20  annual rate provided in section 549.09, subdivision 1, plus two 
  1.21  percent, not to exceed an annual rate of 18 percent.  A payment 
  1.22  or installment of support that becomes a judgment by operation 
  1.23  of law between the date on which a party served notice of a 
  1.24  motion for modification under section 518.64, subdivision 2, and 
  1.25  the date of the court's order on modification may be modified 
  2.1   under that subdivision. 
  2.2      (b) If an obligor who is liable for arrearages makes 
  2.3   complete, timely payments for 36 consecutive months on the 
  2.4   current support amount due plus whatever amount the court 
  2.5   ordered as payment of the arrearages, and arrearages remain to 
  2.6   be paid at that time, interest on the remaining arrearages shall 
  2.7   stop accruing and shall remain fixed at the amount due as of the 
  2.8   time 36 consecutive payments had been made.  Further interest on 
  2.9   arrearages shall not accrue unless the obligor fails to make 
  2.10  complete, timely payment of the current support due and the 
  2.11  amount the court has ordered as payment for existing arrears.  
  2.12  Upon failure by the obligor to make a timely and complete 
  2.13  payment, interest shall commence accruing on the arrearages and 
  2.14  shall continue to accrue until the full balance is paid or until 
  2.15  36 consecutive complete, timely payments have been made, 
  2.16  whichever is earlier.