Minnesota Legislature
SF 1458
as introduced - 89th Legislature (2015 - 2016) Posted on 04/23/2015 12:22pm
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A bill for an act
relating to human services; discontinuing the child support application fee;
amending Minnesota Statutes 2014, sections 518A.51; 518A.53, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, 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,new text begin ornew text end medical assistancedeleted text begin , or MinnesotaCaredeleted text end 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.
deleted text begin
(b) An application fee of $25 shall be paid by the person who applies for child
support and maintenance collection services, except persons who are receiving public
assistance as defined in section 256.741 and the diversionary work program under section
256J.95, persons who transfer from public assistance to nonpublic assistance status, and
minor parents and parents enrolled in a public secondary school, area learning center, or
alternative learning program approved by the commissioner of education.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end 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, the public authority must impose an
annual federal collections fee of $25 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 $500 collected.
deleted text begin (d)deleted text end new text begin (c)new text end 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:
(1) is currently receiving assistance under the state's title IV-A, IV-E foster care,new text begin ornew text end
medical assistancedeleted text begin , or MinnesotaCaredeleted text end programs; or
(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 begin (e)deleted text end new text begin (d)new text end When the public authority provides full IV-D services to an obligor who has
applied for such services, upon written notice to the obligor, the public authority must
charge a cost recovery fee of two percent of the monthly court-ordered child support and
maintenance obligation. 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 (f)deleted text end new text begin (e)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 (g)deleted text end new text begin (f)new text end Federal collections fees collected under paragraph deleted text begin (c)deleted text end new text begin (b)new text end and cost recovery
fees collected under paragraphsnew text begin (c) andnew text end (d) deleted text begin and (e)deleted 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 (i)deleted text end new text begin (h)new text end . The commissioner of human services must
elect to recover costs based on either actual or standardized costs.
deleted text begin (h)deleted text end new text begin (g)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 (i)deleted text end new text begin (h)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 deleted text begin (c)deleted text end new text begin
(b)new text end and cost recovery fees collected under paragraphsnew text begin (c) andnew text end (d) deleted text begin and (e)deleted text end .
deleted text begin (j)deleted text end new text begin (i)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 (k)deleted text end new text begin (j)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 (l)deleted text end new text begin (k)new text end The commissioner of human services shall distribute quarterly any of the
funds dedicated to the counties under paragraphsnew text begin (i) andnew text end (j) deleted text begin and (k)deleted 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.
Sec. 2.
Minnesota Statutes 2014, section 518A.53, subdivision 4, is amended to read:
Subd. 4.
Collection services.
(a) The commissioner of human services shall prepare
and make available to the courts a notice of services that explains child support and
maintenance collection services available through the public authority, including income
withholding, and the fees for such services. Upon receiving a petition for dissolution of
marriage or legal separation, the court administrator shall promptly send the notice of
services to the petitioner and respondent at the addresses stated in the petition.
(b) Either the obligee or obligor may at any time apply to the public authority for
either full IV-D services or for income withholding only services.
(c) For those persons applying for income withholding only services, a monthly
service fee of $15 must be charged to the obligor. This fee is in addition to the amount of
the support order and shall be withheld through income withholding. The public authority
shall explain the service options in this section to the affected parties and encourage the
application for full child support collection services.
(d) If the obligee is not a current recipient of public assistance as defined in section
256.741, the person who applied for services may at any time choose to terminate either
full IV-D services or income withholding only services regardless of whether income
withholding is currently in place. The obligee or obligor may reapply for either full IV-D
services or income withholding only services at any time. deleted text begin Unless the applicant is a
recipient of public assistance as defined in section 256.741, a $25 application fee shall be
charged at the time of each application.
deleted text end
(e) When a person terminates IV-D services, if an arrearage for public assistance as
defined in section 256.741 exists, the public authority may continue income withholding,
as well as use any other enforcement remedy for the collection of child support, until all
public assistance arrears are paid in full. Income withholding shall be in an amount equal
to 20 percent of the support order in effect at the time the services terminated.