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HF 2435

as introduced - 89th Legislature (2015 - 2016) Posted on 03/15/2016 09:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/29/2016

Current Version - as introduced

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A bill for an act
relating to child support; requiring collection fees to be paid by the obligor;
amending Minnesota Statutes 2015 Supplement, section 518A.51.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2015 Supplement, 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 deleted text begin and
fees, cost recovery fees, and distribution policies relating to fees
deleted text end .

(b) deleted text begin 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 $500 of support,
deleted text end The public authority must impose an
annual federal collections fee of $25new text begin on the obligornew text end for each case in which services are
furnished. This fee must be retained by the public authority from support collected deleted text begin on
behalf of the individual
deleted text end , but not from the first $500 collected.

deleted text begin (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 256.741 before disbursement to the obligee. This fee does not apply to an
obligee who:
deleted text end

deleted text begin (1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or
medical assistance programs; or
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (d)deleted text end new text begin (c) new text end When the public authority provides full IV-D services to annew text begin obligee ornew text end obligor
who has applied for such services, upon written notice to the obligor, the public authority
must chargenew text begin the obligornew text end a cost recovery fee of two percent of the monthly court-ordered
child support and maintenance obligation. deleted text begin The feedeleted text end new text begin Fees under this paragraph and
paragraph (b) are in addition to the amount of the support order and
new text end 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 deleted text begin owed to or on behalf of a person not receiving public assistancedeleted text end must be imposed
on the deleted text begin person for whom these services are provideddeleted text end new text begin obligornew text end . The public authority upon
written notice to the deleted text begin obligeedeleted text end new text begin obligornew text end shall assess a fee of $25 to the deleted text begin person not receiving
public assistance
deleted text end new text begin obligornew text end for each successful federal tax interception. The fee must be
deleted text begin withheld prior to the release of the funds received from each interception anddeleted text end 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 paragraphs (c) and (d)deleted text end new text begin paragraph (c)new text end retained by the commissioner of
human services shall be considered child support program income according to Code of
Federal Regulations, title 45, section 304.50, and shall 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 human services
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 613new text begin ,new text end 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 human services 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 paragraphs (c) and (d)deleted text end new text begin paragraph (c)new 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 human services shall distribute quarterly any of the funds
dedicated to the counties under paragraphs deleted text begin (i) and (j)deleted text end new text begin (h) and (i)new text end using the methodology
specified in section 256.979, 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.