1.1                          A bill for an act 
  1.2             relating to child support; establishing a standard of 
  1.3             eligibility for nonpublic assistance IV-D child 
  1.4             support services; amending Minnesota Statutes 2002, 
  1.5             section 518.54, subdivision 14, by adding a 
  1.6             subdivision; proposing coding for new law in Minnesota 
  1.7             Statutes, chapter 256J. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [256J.091] [NONPUBLIC ASSISTANCE IV-D CHILD 
  1.10  SUPPORT SERVICES.] 
  1.11     Subdivision 1.  [DEFINITION.] For the purposes of this 
  1.12  section, "nonpublic assistance IV-D child support services" 
  1.13  means services provided in a nonpublic assistance IV-D case, as 
  1.14  defined in section 518.54, subdivision 15. 
  1.15     Subd. 2.  [ELIGIBILITY STANDARDS.] To determine eligibility 
  1.16  of an applicant for nonpublic assistance IV-D child support 
  1.17  services, the commissioner shall apply the standards of need in 
  1.18  paragraphs (a) to (e). 
  1.19     (a) The applicant must not be currently receiving public 
  1.20  assistance as defined in section 256.741. 
  1.21     (b) The applicant's income must be less than 125 percent of 
  1.22  the federal poverty guideline and the applicant is not 
  1.23  voluntarily unemployed or voluntarily underemployed.  The 
  1.24  applicant must pay for the services on a sliding fee scale if 
  1.25  the applicant is voluntarily unemployed or underemployed. 
  1.26     (c) All earnings, income, and resources of the parent, 
  2.1   including real and personal property and total assets, must not 
  2.2   exceed eligibility requirements in section 256J.10. 
  2.3      (d) The applicant must be in immediate need of child 
  2.4   support payments from the obligor to prevent the applicant's 
  2.5   immediate eligibility for public assistance. 
  2.6      (e) The applicant has tried but has been unable to secure 
  2.7   financial support payments from the obligor and is within the 
  2.8   125 percent threshold of the federal poverty guideline. 
  2.9      Subd. 3.  [WHERE TO APPLY.] A person must apply for 
  2.10  nonpublic assistance IV-D child support services at the county 
  2.11  agency in the county where the applicant lives. 
  2.12     Subd. 4.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
  2.13  INFORMATION.] A county agency must inform a person who inquires 
  2.14  about child support services about eligibility requirements for 
  2.15  services and the application process.  A county agency must 
  2.16  offer the person written materials developed and approved by the 
  2.17  commissioner that describe how to apply for nonpublic assistance 
  2.18  IV-D child support services, the requirements and implications 
  2.19  of the valid assignment of legal rights of the child to the 
  2.20  state, and the impact on both parents. 
  2.21     Subd. 5.  [SUBMITTING APPLICATION.] An application under 
  2.22  this section must be submitted using the application process 
  2.23  provided in section 256J.09, subdivision 3. 
  2.24     Subd. 6.  [VERIFICATION OF INFORMATION ON APPLICATION.] A 
  2.25  county agency must verify the accuracy of all information 
  2.26  provided by an applicant.  The local agency must document the 
  2.27  steps taken in the verification process on a form prescribed by 
  2.28  the commissioner.  Prior to approval of the application, the 
  2.29  completed form must be made available to the other parent or any 
  2.30  affected third party, to verify the information. 
  2.31     Subd. 7.  [PROCESSING APPLICATIONS.] Prior to approval of 
  2.32  an application, the other parent or affected third party must be 
  2.33  notified via certified mail at the last known address and at the 
  2.34  address of the closest known relative within 30 days, at the 
  2.35  applicant's expense.  If no known address or relatives exist for 
  2.36  the other parent, proof of a good faith effort by the public 
  3.1   authority to determine such an address must be made.  The 
  3.2   notification must also include an explanation of the legal and 
  3.3   administrative implications for participation in the program.  
  3.4   Upon receipt of notification, the other parent has 30 days from 
  3.5   the notification date to object to or approve of the application 
  3.6   for services.  If by mistake or inadvertence the agency fails to 
  3.7   notify the other parent, the application is void. 
  3.8      Subd. 8.  [HEARING.] Prior to approval of the application 
  3.9   and upon motion of either parent or an affected third party, a 
  3.10  hearing must be granted within 30 days of notification pursuant 
  3.11  to section 256.045, subdivision 3, to review all conditions of 
  3.12  the family circumstances and to properly exercise the 
  3.13  requirements of this section to make a determination of 
  3.14  financial need for nonpublic assistance IV-D child support 
  3.15  services.  Prior to approval of the IV-D application, the other 
  3.16  parent or person standing in loco parentis must be afforded an 
  3.17  opportunity to object to the services and assume charge of the 
  3.18  child in compliance with the Social Security Act, United States 
  3.19  Code, title 42, section 1301(d), and reestablish any order under 
  3.20  section 518.17.  
  3.21     Subd. 9.  [RIGHT TO APPEAL APPROVAL OR DENIAL OF 
  3.22  APPLICATION.] An applicant, the other parent, or an affected 
  3.23  third party aggrieved by an action or inaction of a county 
  3.24  agency has a right to a hearing under section 256.045, 
  3.25  subdivision 3. 
  3.26     Subd. 10.  [REVIEW PROCESS.] An applicant's circumstances 
  3.27  are subject to annual review.  An applicant who has a change in 
  3.28  financial circumstances making the applicant no longer eligible 
  3.29  must immediately notify the other parent or affected party and 
  3.30  ask the county agency to reevaluate eligibility. 
  3.31     Subd. 11.  [AGENCY DUTIES.] On the effective date of this 
  3.32  section the commissioner shall immediately instruct the local 
  3.33  service agency to implement eligibility criteria outlined in 
  3.34  this section and the local agency shall immediately provide 
  3.35  termination notice to all nonpublic assistance IV-D child 
  3.36  support cases and former public assistance IV-D child support 
  4.1   cases, unless the party reapplies. 
  4.2      Sec. 2.  Minnesota Statutes 2002, section 518.54, 
  4.3   subdivision 14, is amended to read: 
  4.4      Subd. 14.  [PUBLIC ASSISTANCE IV-D CASE.] A "public 
  4.5   assistance IV-D case" means a case where a party has assigned to 
  4.6   the state rights to child support because of the receipt of 
  4.7   public assistance as defined in section 256.741 or has applied 
  4.8   for child support services under title IV-D of the Social 
  4.9   Security Act, United States Code, title 42, section 654(4). 
  4.10     Sec. 3.  Minnesota Statutes 2002, section 518.54, is 
  4.11  amended by adding a subdivision to read: 
  4.12     Subd. 15.  [NONPUBLIC ASSISTANCE IV-D CASE.] "Nonpublic 
  4.13  assistance IV-D case" means a case where a party is not 
  4.14  receiving public assistance under section 256.741, but is 
  4.15  eligible for nonpublic assistance IV-D child support services 
  4.16  under title IV-D of the Social Security Act, United States Code, 
  4.17  title 42, section 654(4).