SF 2276

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to children; modifying certain parentage and 
  1.3             child support enforcement provisions; amending 
  1.4             Minnesota Statutes 1996, sections 257.64, subdivision 
  1.5             3; 518.54, by adding a subdivision; 518.551, 
  1.6             subdivisions 1, 5, and 9; and 518.615, subdivision 2; 
  1.7             Minnesota Statutes 1997 Supplement, sections 518.54, 
  1.8             subdivision 6; 518.551, subdivision 5b; 518.6111, 
  1.9             subdivision 14; 518.615, subdivision 1; and 552.04, 
  1.10            subdivision 4; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 518. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 257.64, 
  1.14  subdivision 3, is amended to read: 
  1.15     Subd. 3.  If a party refuses to accept a recommendation 
  1.16  made under subdivision 1 and blood or genetic tests have not 
  1.17  been taken, the court shall require the parties to submit to 
  1.18  blood or genetic tests.  Any objection to blood or genetic 
  1.19  testing results must be made in writing no later than 15 days 
  1.20  before any hearing at which time the results may be introduced 
  1.21  into evidence.  Test results served upon a party must include a 
  1.22  notice of this right to object.  Thereafter the court shall make 
  1.23  an appropriate final recommendation.  If a party refuses to 
  1.24  accept the final recommendation the action shall be set for 
  1.25  trial.  
  1.26     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  1.27  518.54, subdivision 6, is amended to read: 
  1.28     Subd. 6.  [INCOME.] "Income" means any form of periodic 
  2.1   payment to an individual including, but not limited to, wages, 
  2.2   salaries, payments to an independent contractor, workers' 
  2.3   compensation, reemployment insurance, annuity, military and 
  2.4   naval retirement, pension and disability payments.  Benefits 
  2.5   received under Title IV-A of the Social Security Act and chapter 
  2.6   256J are not income under this section. 
  2.7      Sec. 3.  Minnesota Statutes 1996, section 518.54, is 
  2.8   amended by adding a subdivision to read: 
  2.9      Subd. 13.  [ARREARS.] "Arrears" means amounts that accrue 
  2.10  pursuant to a court order for current support.  "Arrears" also 
  2.11  includes amounts that accrue because the obligor fails to comply 
  2.12  with the terms of a court order for repayment of past support or 
  2.13  pregnancy and confinement expenses pursuant to section 256.87 or 
  2.14  257.66.  Past support or pregnancy and confinement expenses 
  2.15  ordered that the obligor has not had the opportunity to pay are 
  2.16  owed but are not arrears until the obligor fails to comply with 
  2.17  the terms of the court order. 
  2.18     Sec. 4.  Minnesota Statutes 1996, section 518.551, 
  2.19  subdivision 1, is amended to read: 
  2.20     Subdivision 1.  [SCOPE; PAYMENT TO PUBLIC AGENCY.] (a) This 
  2.21  section applies to all proceedings involving an award of child a 
  2.22  support order, including, but not limited to, a support order 
  2.23  establishing an order for past support or reimbursement of 
  2.24  public assistance. 
  2.25     (b) The court shall direct that all payments ordered for 
  2.26  maintenance and support be made to the public agency responsible 
  2.27  for child support enforcement so long as the obligee is 
  2.28  receiving or has applied for public assistance, or has applied 
  2.29  for child support and maintenance collection services.  Public 
  2.30  authorities responsible for child support enforcement may act on 
  2.31  behalf of other public authorities responsible for child support 
  2.32  enforcement.  This includes the authority to represent the legal 
  2.33  interests of or execute documents on behalf of the other public 
  2.34  authority in connection with the establishment, enforcement, and 
  2.35  collection of child support, maintenance, or medical support, 
  2.36  and collection on judgments.  Amounts received by the public 
  3.1   agency responsible for child support enforcement greater than 
  3.2   the amount granted to the obligee shall be remitted to the 
  3.3   obligee.  
  3.4      Sec. 5.  Minnesota Statutes 1996, section 518.551, 
  3.5   subdivision 5, is amended to read: 
  3.6      Subd. 5.  [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 
  3.7   petitioner shall notify the public authority of all proceedings 
  3.8   for dissolution, legal separation, determination of parentage or 
  3.9   for the custody of a child, if either party is receiving aid to 
  3.10  families with dependent children public assistance or applies 
  3.11  for it subsequent to the commencement of the proceeding.  The 
  3.12  notice must contain the full names of the parties to the 
  3.13  proceeding, their social security account numbers, and their 
  3.14  birth dates.  After receipt of the notice, the court shall set 
  3.15  child support as provided in this subdivision.  The court may 
  3.16  order either or both parents owing a duty of support to a child 
  3.17  of the marriage to pay an amount reasonable or necessary for the 
  3.18  child's support, without regard to marital misconduct.  The 
  3.19  court shall approve a child support stipulation of the parties 
  3.20  if each party is represented by independent counsel, unless the 
  3.21  stipulation does not meet the conditions of paragraph (i).  In 
  3.22  other cases the court shall determine and order child support in 
  3.23  a specific dollar amount in accordance with the guidelines and 
  3.24  the other factors set forth in paragraph (c) and any departure 
  3.25  therefrom.  The court may also order the obligor to pay child 
  3.26  support in the form of a percentage share of the obligor's net 
  3.27  bonuses, commissions, or other forms of compensation, in 
  3.28  addition to, or if the obligor receives no base pay, in lieu of, 
  3.29  an order for a specific dollar amount. 
  3.30     (b) The court shall derive a specific dollar amount for 
  3.31  child support by multiplying the obligor's net income by the 
  3.32  percentage indicated by the following guidelines:  
  3.33  Net Income Per            Number of Children 
  3.34  Month of Obligor 
  3.35                1     2     3     4     5     6    7 or 
  3.36                                                   more 
  4.1   $550 and Below     Order based on the ability of the 
  4.2                      obligor to provide support  
  4.3                      at these income levels, or at higher  
  4.4                      levels, if the obligor has 
  4.5                      the earning ability. 
  4.6   $551 - 600   16%   19%   22%   25%   28%   30%   32% 
  4.7   $601 - 650   17%   21%   24%   27%   29%   32%   34% 
  4.8   $651 - 700   18%   22%   25%   28%   31%   34%   36% 
  4.9   $701 - 750   19%   23%   27%   30%   33%   36%   38% 
  4.10  $751 - 800   20%   24%   28%   31%   35%   38%   40% 
  4.11  $801 - 850   21%   25%   29%   33%   36%   40%   42% 
  4.12  $851 - 900   22%   27%   31%   34%   38%   41%   44% 
  4.13  $901 - 950   23%   28%   32%   36%   40%   43%   46% 
  4.14  $951 - 1000  24%   29%   34%   38%   41%   45%   48% 
  4.15  $1001- 5000  25%   30%   35%   39%   43%   47%   50% 
  4.16  or the amount 
  4.17  in effect under
  4.18  paragraph (k)
  4.19     Guidelines for support for an obligor with a monthly income 
  4.20  in excess of the income limit currently in effect under 
  4.21  paragraph (k) shall be the same dollar amounts as provided for 
  4.22  in the guidelines for an obligor with a monthly income equal to 
  4.23  the limit in effect. 
  4.24  Net Income defined as: 
  4.25           
  4.26           Total monthly 
  4.27           income less           *(i) Federal Income Tax 
  4.28                                *(ii) State Income Tax 
  4.29                                (iii) Social Security
  4.30                                       Deductions 
  4.31                                 (iv) Reasonable
  4.32                                       Pension Deductions
  4.33           *Standard 
  4.34           Deductions apply-      (v) Union Dues 
  4.35           use of tax tables     (vi) Cost of Dependent Health
  4.36           recommended                 Insurance Coverage  
  5.1                                 (vii) Cost of Individual or Group
  5.2                                        Health/Hospitalization
  5.3                                        Coverage or an        
  5.4                                        Amount for Actual 
  5.5                                        Medical Expenses   
  5.6                                (viii) A Child Support or  
  5.7                                        Maintenance Order that is
  5.8                                        Currently Being Paid. 
  5.9      "Net income" does not include: 
  5.10     (1) the income of the obligor's spouse, but does include 
  5.11  in-kind payments received by the obligor in the course of 
  5.12  employment, self-employment, or operation of a business if the 
  5.13  payments reduce the obligor's living expenses; or 
  5.14     (2) compensation received by a party for employment in 
  5.15  excess of a 40-hour work week, provided that: 
  5.16     (i) support is nonetheless ordered in an amount at least 
  5.17  equal to the guidelines amount based on income not excluded 
  5.18  under this clause; and 
  5.19     (ii) the party demonstrates, and the court finds, that: 
  5.20     (A) the excess employment began after the filing of the 
  5.21  petition for dissolution; 
  5.22     (B) the excess employment reflects an increase in the work 
  5.23  schedule or hours worked over that of the two years immediately 
  5.24  preceding the filing of the petition; 
  5.25     (C) the excess employment is voluntary and not a condition 
  5.26  of employment; 
  5.27     (D) the excess employment is in the nature of additional, 
  5.28  part-time or overtime employment compensable by the hour or 
  5.29  fraction of an hour; and 
  5.30     (E) the party's compensation structure has not been changed 
  5.31  for the purpose of affecting a support or maintenance obligation.
  5.32     The court shall review the work-related and 
  5.33  education-related child care costs paid and shall allocate the 
  5.34  costs to each parent in proportion to each parent's net income, 
  5.35  as determined under this subdivision, after the transfer of 
  5.36  child support and spousal maintenance, unless the allocation 
  6.1   would be substantially unfair to either parent.  There is a 
  6.2   presumption of substantial unfairness if after the sum total of 
  6.3   child support, spousal maintenance, and child care costs is 
  6.4   subtracted from the noncustodial parent's income, the income is 
  6.5   at or below 100 percent of the federal poverty guidelines.  The 
  6.6   cost of child care for purposes of this paragraph is 75 percent 
  6.7   of the actual cost paid for child care, to reflect the 
  6.8   approximate value of state and federal tax credits available to 
  6.9   the custodial parent.  The actual cost paid for child care is 
  6.10  the total amount received by the child care provider for the 
  6.11  child or children of the obligor from the obligee or any public 
  6.12  agency.  The court shall require verification of employment or 
  6.13  school attendance and documentation of child care expenses from 
  6.14  the obligee and the public agency, if applicable.  If child care 
  6.15  expenses fluctuate during the year because of seasonal 
  6.16  employment or school attendance of the obligee or extended 
  6.17  periods of visitation with the obligor, the court shall 
  6.18  determine child care expenses based on an average monthly cost.  
  6.19  The amount allocated for child care expenses is considered child 
  6.20  support but is not subject to a cost-of-living adjustment under 
  6.21  section 518.641.  The amount allocated for child care expenses 
  6.22  terminates when either party notifies the public authority that 
  6.23  the child care costs have ended and without any legal action on 
  6.24  the part of either party.  The public authority shall verify the 
  6.25  information received under this provision before authorizing 
  6.26  termination.  The termination is effective as of the date of the 
  6.27  notification.  In other cases where there is a substantial 
  6.28  increase or decrease in child care expenses, the parties may 
  6.29  modify the order under section 518.64. 
  6.30     The court may allow the noncustodial parent to care for the 
  6.31  child while the custodial parent is working, as provided in 
  6.32  section 518.175, subdivision 8.  Allowing the noncustodial 
  6.33  parent to care for the child under section 518.175, subdivision 
  6.34  8, is not a reason to deviate from the guidelines. 
  6.35     (c) In addition to the child support guidelines, the court 
  6.36  shall take into consideration the following factors in setting 
  7.1   or modifying child support or in determining whether to deviate 
  7.2   from the guidelines: 
  7.3      (1) all earnings, income, and resources of the parents, 
  7.4   including real and personal property, but excluding income from 
  7.5   excess employment of the obligor or obligee that meets the 
  7.6   criteria of paragraph (b), clause (2)(ii); 
  7.7      (2) the financial needs and resources, physical and 
  7.8   emotional condition, and educational needs of the child or 
  7.9   children to be supported; 
  7.10     (3) the standard of living the child would have enjoyed had 
  7.11  the marriage not been dissolved, but recognizing that the 
  7.12  parents now have separate households; 
  7.13     (4) which parent receives the income taxation dependency 
  7.14  exemption and what financial benefit the parent receives from 
  7.15  it; 
  7.16     (5) the parents' debts as provided in paragraph (d); and 
  7.17     (6) the obligor's receipt of public assistance under 
  7.18  sections 256.72 to 256.87 or 256B.01 to 256B.40.  
  7.19     (d) In establishing or modifying a support obligation, the 
  7.20  court may consider debts owed to private creditors, but only if: 
  7.21     (1) the right to support has not been assigned under 
  7.22  section 256.74; 
  7.23     (2) the court determines that the debt was reasonably 
  7.24  incurred for necessary support of the child or parent or for the 
  7.25  necessary generation of income.  If the debt was incurred for 
  7.26  the necessary generation of income, the court shall consider 
  7.27  only the amount of debt that is essential to the continuing 
  7.28  generation of income; and 
  7.29     (3) the party requesting a departure produces a sworn 
  7.30  schedule of the debts, with supporting documentation, showing 
  7.31  goods or services purchased, the recipient of them, the amount 
  7.32  of the original debt, the outstanding balance, the monthly 
  7.33  payment, and the number of months until the debt will be fully 
  7.34  paid. 
  7.35     (e) Any schedule prepared under paragraph (d), clause (3), 
  7.36  shall contain a statement that the debt will be fully paid after 
  8.1   the number of months shown in the schedule, barring emergencies 
  8.2   beyond the party's control.  
  8.3      (f) Any further departure below the guidelines that is 
  8.4   based on a consideration of debts owed to private creditors 
  8.5   shall not exceed 18 months in duration, after which the support 
  8.6   shall increase automatically to the level ordered by the court.  
  8.7   Nothing in this section shall be construed to prohibit one or 
  8.8   more step increases in support to reflect debt retirement during 
  8.9   the 18-month period.  
  8.10     (g) If payment of debt is ordered pursuant to this section, 
  8.11  the payment shall be ordered to be in the nature of child 
  8.12  support.  
  8.13     (h) Nothing shall preclude the court from receiving 
  8.14  evidence on the above factors to determine if the guidelines 
  8.15  should be exceeded or modified in a particular case.  
  8.16     (i) The guidelines in this subdivision are a rebuttable 
  8.17  presumption and shall be used in all cases when establishing or 
  8.18  modifying child support.  If the court does not deviate from the 
  8.19  guidelines, the court shall make written findings concerning the 
  8.20  amount of the obligor's income used as the basis for the 
  8.21  guidelines calculation and any other significant evidentiary 
  8.22  factors affecting the determination of child support.  If the 
  8.23  court deviates from the guidelines, the court shall make written 
  8.24  findings giving the amount of support calculated under the 
  8.25  guidelines, the reasons for the deviation, and shall 
  8.26  specifically address the criteria in paragraph (c) and how the 
  8.27  deviation serves the best interest of the child.  The court may 
  8.28  deviate from the guidelines if both parties agree and the court 
  8.29  makes written findings that it is in the best interests of the 
  8.30  child, except that in cases where child support payments are 
  8.31  assigned to the public agency under section 256.74, the court 
  8.32  may deviate downward only as provided in paragraph (j).  Nothing 
  8.33  in this paragraph prohibits the court from deviating in other 
  8.34  cases.  The provisions of this paragraph apply whether or not 
  8.35  the parties are each represented by independent counsel and have 
  8.36  entered into a written agreement.  The court shall review 
  9.1   stipulations presented to it for conformity to the guidelines 
  9.2   and the court is not required to conduct a hearing, but the 
  9.3   parties shall provide the documentation of earnings required 
  9.4   under subdivision 5b. 
  9.5      (j) If the child support payments are assigned to the 
  9.6   public agency under section 256.74, the court may not deviate 
  9.7   downward from the child support guidelines unless the court 
  9.8   specifically finds that the failure to deviate downward would 
  9.9   impose an extreme hardship on the obligor. 
  9.10     (k) The dollar amount of the income limit for application 
  9.11  of the guidelines must be adjusted on July 1 of every 
  9.12  even-numbered year to reflect cost-of-living changes.  The 
  9.13  supreme court shall select the index for the adjustment from the 
  9.14  indices listed in section 518.641.  The state court 
  9.15  administrator shall make the changes in the dollar amount 
  9.16  required by this paragraph available to courts and the public on 
  9.17  or before April 30 of the year in which the amount is to change. 
  9.18     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  9.19  518.551, subdivision 5b, is amended to read: 
  9.20     Subd. 5b.  [DETERMINATION OF INCOME.] (a) The parties shall 
  9.21  timely serve and file documentation of earnings and income.  
  9.22  When there is a prehearing conference, the court must receive 
  9.23  the documentation of income at least ten days prior to the 
  9.24  prehearing conference.  Documentation of earnings and income 
  9.25  also includes, but is not limited to, pay stubs for the most 
  9.26  recent three months, employer statements, or statement of 
  9.27  receipts and expenses if self-employed.  Documentation of 
  9.28  earnings and income also includes copies of each parent's most 
  9.29  recent federal tax returns, including W-2 forms, 1099 forms, 
  9.30  reemployment insurance statements, workers' compensation 
  9.31  statements, and all other documents evidencing income as 
  9.32  received that provide verification of income over a longer 
  9.33  period. 
  9.34     (b) In addition to the requirements of paragraph (a), at 
  9.35  any time after an action seeking child support has been 
  9.36  commenced or when a child support order is in effect, a party or 
 10.1   the public authority may require the other party to give them a 
 10.2   copy of the party's most recent federal tax returns that were 
 10.3   filed with the Internal Revenue Service.  The party shall 
 10.4   provide a copy of the tax returns within 30 days of receipt of 
 10.5   the request unless the request is not made in good faith.  A 
 10.6   request under this paragraph may not be made more than once 
 10.7   every two years, in the absence of good cause. 
 10.8      (c) If a parent under the jurisdiction of the court does 
 10.9   not appear at a court hearing after proper notice of the time 
 10.10  and place of the hearing, the court shall set income for that 
 10.11  parent based on credible evidence before the court or in 
 10.12  accordance with paragraph (d).  Credible evidence may include 
 10.13  documentation of current or recent income, testimony of the 
 10.14  other parent concerning recent earnings and income levels, and 
 10.15  the parent's wage reports filed with the Minnesota department of 
 10.16  economic security under section 268.044.  
 10.17     (d) If the court finds that a parent is voluntarily 
 10.18  unemployed or underemployed, child support shall be calculated 
 10.19  based on a determination of imputed income.  A parent is not 
 10.20  considered voluntarily unemployed or underemployed upon a 
 10.21  showing by the parent that the unemployment or underemployment:  
 10.22  (1) is temporary and will ultimately lead to an increase in 
 10.23  income; or (2) represents a bona fide career change that 
 10.24  outweighs the adverse effect of that parent's diminished income 
 10.25  on the child.  Imputed income means the estimated earning 
 10.26  ability of a parent based on the parent's prior earnings 
 10.27  history, education, and job skills, and on availability of jobs 
 10.28  within the community for an individual with the parent's 
 10.29  qualifications.  
 10.30     (e) If the court is unable to determine or estimate the 
 10.31  earning ability of a parent pursuant to paragraph (d), the court 
 10.32  may calculate child support based on full-time employment of 40 
 10.33  hours per week at 150 percent of the federal minimum wage or the 
 10.34  Minnesota minimum wage, whichever is higher.  If the court is 
 10.35  unable to determine or estimate the earning ability of a parent, 
 10.36  any medical support or child care contribution must be 
 11.1   calculated based upon the obligor's proportionate share of the 
 11.2   child care expenses using 40 hours per week at 150 percent of 
 11.3   the federal minimum wage or the Minnesota minimum wage, 
 11.4   whichever is higher.  If a parent is a recipient of public 
 11.5   assistance under section 256.741, or is physically or mentally 
 11.6   incapacitated, it shall be presumed that the parent is not 
 11.7   voluntarily unemployed or underemployed.  
 11.8      (e) (f) Income from self employment is equal to gross 
 11.9   receipts minus ordinary and necessary expenses.  Ordinary and 
 11.10  necessary expenses do not include amounts allowed by the 
 11.11  Internal Revenue Service for accelerated depreciation expenses 
 11.12  or investment tax credits or any other business expenses 
 11.13  determined by the court to be inappropriate for determining 
 11.14  income for purposes of child support.  The person seeking to 
 11.15  deduct an expense, including depreciation, has the burden of 
 11.16  proving, if challenged, that the expense is ordinary and 
 11.17  necessary.  Net income under this section may be different from 
 11.18  taxable income. 
 11.19     Sec. 7.  Minnesota Statutes 1996, section 518.551, 
 11.20  subdivision 9, is amended to read: 
 11.21     Subd. 9.  [ASSIGNMENT OF RIGHTS; JUDGMENT.] The public 
 11.22  agency responsible for child support enforcement is joined as a 
 11.23  party in each case in which rights are assigned under section 
 11.24  256.74 256.741, subdivision 5 2.  The court administrator shall 
 11.25  enter and docket a judgment obtained by operation of law under 
 11.26  section 548.091, subdivision 1, in the name of the public agency 
 11.27  to the extent that the obligation has been assigned.  When 
 11.28  arrearages are reduced to judgment under circumstances in which 
 11.29  section 548.091 is not applicable, the court shall grant 
 11.30  judgment in favor of, and in the name of, the public agency to 
 11.31  the extent that the arrearages are assigned.  After filing 
 11.32  notice of an assignment with the court administrator, who shall 
 11.33  enter the notice in the docket, the public agency may enforce a 
 11.34  judgment entered before the assignment of rights as if the 
 11.35  judgment were granted to it, and in its name, to the extent that 
 11.36  the arrearages in that judgment are assigned. 
 12.1      Sec. 8.  [518.554] [COLLECTION OF ARREARS.] 
 12.2      Support enforcement mechanisms may be used to collect 
 12.3   arrears and court-ordered amounts for past support or pregnancy 
 12.4   and confinement expenses for which there are no terms for 
 12.5   repayment. 
 12.6      Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 12.7   518.6111, subdivision 14, is amended to read: 
 12.8      Subd. 14.  [TERMINATION BY THE PUBLIC AUTHORITY.] If the 
 12.9   public authority determines that income withholding is no longer 
 12.10  applicable, the public authority shall notify the obligee and 
 12.11  the obligor of intent to terminate income withholding. 
 12.12     Five days following notification to the obligee and 
 12.13  obligor, the public authority shall issue a notice to the payor 
 12.14  of funds terminating income withholding, without a requirement 
 12.15  for a court order unless the obligee has requested a contested 
 12.16  hearing under section 518.5511, subdivision 4 3a. 
 12.17     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 12.18  518.615, subdivision 1, is amended to read: 
 12.19     Subdivision 1.  [ORDERS BINDING.] Notices or orders for 
 12.20  income withholding or medical support orders issued pursuant to 
 12.21  sections 518.171 and 518.6111 are binding on the employer, 
 12.22  trustee, or other payor of funds after the order and or notice 
 12.23  of for income withholding or enforcement of medical support has 
 12.24  been served on transmitted pursuant to section 518.6111 to the 
 12.25  employer, trustee, or payor of funds. 
 12.26     Sec. 11.  Minnesota Statutes 1996, section 518.615, 
 12.27  subdivision 2, is amended to read: 
 12.28     Subd. 2.  [CONTEMPT ACTION.] An obligee or the public 
 12.29  agency responsible for child support enforcement may initiate a 
 12.30  contempt action against an employer, trustee, or payor of funds, 
 12.31  within the action that created the support obligation, by 
 12.32  serving an order to show cause upon the employer, trustee, or 
 12.33  payor of funds.  
 12.34     The employer, trustee, or payor of funds is presumed to be 
 12.35  in contempt: 
 12.36     (1) if the employer, trustee, or payor of funds has 
 13.1   intentionally failed to withhold support after receiving the 
 13.2   order and or notice of for income withholding or notice of 
 13.3   enforcement of medical support; or 
 13.4      (2) upon presentation of pay stubs or similar documentation 
 13.5   showing the employer, trustee, or payor of funds withheld 
 13.6   support and demonstration that the employer, trustee, or payor 
 13.7   of funds intentionally failed to remit support to the agency 
 13.8   responsible for child support enforcement. 
 13.9      Sec. 12.  [518.642] [OVERPAYMENTS.] 
 13.10     If child support or maintenance is not assigned under 
 13.11  section 256.741, and an obligor has overpaid a child support or 
 13.12  maintenance obligation because of a modification or error in the 
 13.13  amount owed, the public authority shall: 
 13.14     (1) apply the amount of the overpayment to reduce the 
 13.15  amount of any child support or maintenance-related arrearages or 
 13.16  debts owed to the obligee; and 
 13.17     (2) if an overpayment exists after the reduction of any 
 13.18  arrearage or debt, reduce the amount of the child support 
 13.19  remitted to the obligee by an amount no greater than 20 percent 
 13.20  of the current monthly support or maintenance obligation and 
 13.21  remit this amount to the obligor until the overpayment is 
 13.22  reduced to zero. 
 13.23     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 13.24  552.04, subdivision 4, is amended to read: 
 13.25     Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
 13.26  DISCLOSURE FORMS.] When levying upon money owed to the judgment 
 13.27  debtor by a third party, the public authority shall serve a copy 
 13.28  of the notice of support judgment levy upon the third party 
 13.29  either by registered or certified mail, or by personal service, 
 13.30  or by electronic transmission.  Along with a copy of the notice 
 13.31  of support judgment levy, the public authority shall serve upon 
 13.32  the third party a notice of support judgment levy and disclosure 
 13.33  form that must be substantially in the form set forth below. 
 13.34                 OFFICE OF ADMINISTRATIVE HEARINGS
 13.35                               File No. ...........
 13.36  ........ (Public authority)
 13.37  against                        NOTICE OF SUPPORT JUDGMENT
 14.1   ........ (Judgment Debtor)     LEVY AND DISCLOSURE
 14.2   and                            (OTHER THAN EARNINGS)
 14.3   ........ (Third Party)
 14.4      PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
 14.5   chapters 518 and 522, the undersigned, as representative of the 
 14.6   public authority responsible for child support enforcement, 
 14.7   makes demand and levies execution upon all money due and owing 
 14.8   by you to the judgment debtor for the amount of the judgment 
 14.9   specified below.  A copy of the notice of support judgment levy 
 14.10  is enclosed.  The unpaid judgment balance is $...... 
 14.11     In responding to this levy, you are to complete the 
 14.12  attached disclosure form and mail it to the public authority, 
 14.13  together with your check payable to the public authority, for 
 14.14  the nonexempt amount owed by you to the judgment debtor or for 
 14.15  which you are obligated to the judgment debtor, within the time 
 14.16  limits in chapter 552. 
 14.17                       Public Authority
 14.18                        Address
 14.19                        (........)
 14.20                        Phone number
 14.21     
 14.22                             DISCLOSURE
 14.23     On the ... day of ......, 19..., the time of service of the 
 14.24  execution levy herein, there was due and owing the judgment 
 14.25  debtor from the third party the following: 
 14.26     (1) Money.  Enter on the line below any amounts due and 
 14.27  owing the judgment debtor, except earnings, from the third party.
 14.28     ......................... 
 14.29     (2) Setoff.  Enter on the line below the amount of any 
 14.30  setoff, defense, lien, or claim which the third party claims 
 14.31  against the amount set forth on line (1).  State the facts by 
 14.32  which the setoff, defense, lien, or claim is claimed.  (Any 
 14.33  indebtedness to you incurred by the judgment debtor within ten 
 14.34  days prior to the receipt of the first execution levy on a debt 
 14.35  may not be claimed as a setoff, defense, lien, or claim against 
 14.36  the amount set forth on line (1).) 
 14.37     ......................... 
 14.38     (3) Exemption.  Enter on the line below any amounts or 
 15.1   property claimed by the judgment debtor to be exempt from 
 15.2   execution. 
 15.3      ......................... 
 15.4      (4) Adverse Interest.  Enter on the line below any amounts 
 15.5   claimed by other persons by reason of ownership or interest in 
 15.6   the judgment debtor's property. 
 15.7      ......................... 
 15.8      (5) Enter on the line below the total of lines (2), (3), 
 15.9   and (4). 
 15.10     .........................  
 15.11     (6) Enter on the line below the difference obtained (never 
 15.12  less than zero when line (5) is subtracted from the amount on 
 15.13  line (1)).  
 15.14     ......................... 
 15.15     (7) Enter on the line below 100 percent of the amount of 
 15.16  the public authority's claim which remains unpaid.  
 15.17     ......................... 
 15.18     (8) Enter on the line below the lesser of line (6) and line 
 15.19  (7).  You are instructed to remit this amount only if it is $10 
 15.20  or more.  
 15.21     ......................... 
 15.22                            AFFIRMATION
 15.23     I, .......... (person signing Affirmation), am the third 
 15.24  party or I am authorized by the third party to complete this 
 15.25  nonearnings disclosure, and have done so truthfully and to the 
 15.26  best of my knowledge. 
 15.27  Dated:..........                Signature
 15.28                                   ..........
 15.29                                   Title
 15.30                                   ..........
 15.31                                   Telephone Number