2nd 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, subdivision 8, and by adding a subdivision; 1.6 518.551, subdivisions 1, 5, and 9; and 518.615, 1.7 subdivision 2; Minnesota Statutes 1997 Supplement, 1.8 sections 518.54, subdivision 6; 518.551, subdivision 1.9 5b; 518.5511, by adding a subdivision; 518.6111, 1.10 subdivisions 9 and 14; 518.615, subdivision 1; and 1.11 552.04, subdivision 4; proposing coding for new law in 1.12 Minnesota Statutes, chapter 518. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 1996, section 257.64, 1.15 subdivision 3, is amended to read: 1.16 Subd. 3. If a party refuses to accept a recommendation 1.17 made under subdivision 1 and blood or genetic tests have not 1.18 been taken, the court shall require the parties to submit to 1.19 blood or genetic tests.Any objection to blood or genetic1.20testing results must be made in writing no later than 15 days1.21before any hearing at which time the results may be introduced1.22into evidence. Test results served upon a party must include a1.23notice of this right to object. Thereafter the court shall make1.24an appropriate final recommendation. If a party refuses to1.25accept the final recommendation the action shall be set for1.26trial.1.27 Sec. 2. Minnesota Statutes 1997 Supplement, section 1.28 518.54, subdivision 6, is amended to read: 1.29 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, 2.8 subdivision 8, is amended to read: 2.9 Subd. 8. [OBLIGOR.] "Obligor" means a person obligated to 2.10 pay maintenance or support. A person who is designated as the 2.11 sole physical custodian of a child is presumed not to be an 2.12 obligor for purposes of section 518.551 unless the court makes 2.13 specific written findings to overcome this presumption. 2.14 Sec. 4. Minnesota Statutes 1996, section 518.54, is 2.15 amended by adding a subdivision to read: 2.16 Subd. 13. [ARREARS.] "Arrears" means amounts that accrue 2.17 pursuant to a court order for current support. "Arrears" also 2.18 includes amounts that accrue because the obligor fails to comply 2.19 with the terms of a court order for repayment of past support or 2.20 pregnancy and confinement expenses pursuant to section 256.87 or 2.21 257.66. Past support or pregnancy and confinement expenses 2.22 ordered that the obligor has not had the opportunity to pay are 2.23 owed but are not arrears until the obligor fails to comply with 2.24 the terms of the court order. 2.25 Sec. 5. Minnesota Statutes 1996, section 518.551, 2.26 subdivision 1, is amended to read: 2.27 Subdivision 1. [SCOPE; PAYMENT TO PUBLIC AGENCY.] (a) This 2.28 section applies to all proceedings involvingan award of childa 2.29 support order, including, but not limited to, a support order 2.30 establishing an order for past support or reimbursement of 2.31 public assistance. 2.32 (b) The court shall direct that all payments ordered for 2.33 maintenance and support be made to the public agency responsible 2.34 for child support enforcement so long as the obligee is 2.35 receiving or has applied for public assistance, or has applied 2.36 for child support and maintenance collection services. Public 3.1 authorities responsible for child support enforcement may act on 3.2 behalf of other public authorities responsible for child support 3.3 enforcement. This includes the authority to represent the legal 3.4 interests of or execute documents on behalf of the other public 3.5 authority in connection with the establishment, enforcement, and 3.6 collection of child support, maintenance, or medical support, 3.7 and collection on judgments. Amounts received by the public 3.8 agency responsible for child support enforcement greater than 3.9 the amount granted to the obligee shall be remitted to the 3.10 obligee. 3.11 Sec. 6. Minnesota Statutes 1996, section 518.551, 3.12 subdivision 5, is amended to read: 3.13 Subd. 5. [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 3.14 petitioner shall notify the public authority of all proceedings 3.15 for dissolution, legal separation, determination of parentage or 3.16 for the custody of a child, if either party is receivingaid to3.17families with dependent childrenpublic assistance or applies 3.18 for it subsequent to the commencement of the proceeding. The 3.19 notice must contain the full names of the parties to the 3.20 proceeding, their social security account numbers, and their 3.21 birth dates. After receipt of the notice, the court shall set 3.22 child support as provided in this subdivision. The court may 3.23 order either or both parents owing a duty of support to a child 3.24 of the marriage to pay an amount reasonable or necessary for the 3.25 child's support, without regard to marital misconduct. The 3.26 court shall approve a child support stipulation of the parties 3.27 if each party is represented by independent counsel, unless the 3.28 stipulation does not meet the conditions of paragraph (i). In 3.29 other cases the court shall determine and order child support in 3.30 a specific dollar amount in accordance with the guidelines and 3.31 the other factors set forth in paragraph (c) and any departure 3.32 therefrom. The court may also order the obligor to pay child 3.33 support in the form of a percentage share of the obligor's net 3.34 bonuses, commissions, or other forms of compensation, in 3.35 addition to, or if the obligor receives no base pay, in lieu of, 3.36 an order for a specific dollar amount. 4.1 (b) The court shall derive a specific dollar amount for 4.2 child support by multiplying the obligor's net income by the 4.3 percentage indicated by the following guidelines: 4.4 Net Income Per Number of Children 4.5 Month of Obligor 4.6 1 2 3 4 5 6 7 or 4.7 more 4.8 $550 and Below Order based on the ability of the 4.9 obligor to provide support 4.10 at these income levels, or at higher 4.11 levels, if the obligor has 4.12 the earning ability. 4.13 $551 - 600 16% 19% 22% 25% 28% 30% 32% 4.14 $601 - 650 17% 21% 24% 27% 29% 32% 34% 4.15 $651 - 700 18% 22% 25% 28% 31% 34% 36% 4.16 $701 - 750 19% 23% 27% 30% 33% 36% 38% 4.17 $751 - 800 20% 24% 28% 31% 35% 38% 40% 4.18 $801 - 850 21% 25% 29% 33% 36% 40% 42% 4.19 $851 - 900 22% 27% 31% 34% 38% 41% 44% 4.20 $901 - 950 23% 28% 32% 36% 40% 43% 46% 4.21 $951 - 1000 24% 29% 34% 38% 41% 45% 48% 4.22 $1001- 5000 25% 30% 35% 39% 43% 47% 50% 4.23 or the amount 4.24 in effect under 4.25 paragraph (k) 4.26 Guidelines for support for an obligor with a monthly income 4.27 in excess of the income limit currently in effect under 4.28 paragraph (k) shall be the same dollar amounts as provided for 4.29 in the guidelines for an obligor with a monthly income equal to 4.30 the limit in effect. 4.31 Net Income defined as: 4.32 4.33 Total monthly 4.34 income less *(i) Federal Income Tax 4.35 *(ii) State Income Tax 4.36 (iii) Social Security 5.1 Deductions 5.2 (iv) Reasonable 5.3 Pension Deductions 5.4 *Standard 5.5 Deductions apply- (v) Union Dues 5.6 use of tax tables (vi) Cost of Dependent Health 5.7 recommended Insurance Coverage 5.8 (vii) Cost of Individual or Group 5.9 Health/Hospitalization 5.10 Coverage or an 5.11 Amount for Actual 5.12 Medical Expenses 5.13 (viii) A Child Support or 5.14 Maintenance Order that is 5.15 Currently Being Paid. 5.16 "Net income" does not include: 5.17 (1) the income of the obligor's spouse, but does include 5.18 in-kind payments received by the obligor in the course of 5.19 employment, self-employment, or operation of a business if the 5.20 payments reduce the obligor's living expenses; or 5.21 (2) compensation received by a party for employment in 5.22 excess of a 40-hour work week, provided that: 5.23 (i) support is nonetheless ordered in an amount at least 5.24 equal to the guidelines amount based on income not excluded 5.25 under this clause; and 5.26 (ii) the party demonstrates, and the court finds, that: 5.27 (A) the excess employment began after the filing of the 5.28 petition for dissolution; 5.29 (B) the excess employment reflects an increase in the work 5.30 schedule or hours worked over that of the two years immediately 5.31 preceding the filing of the petition; 5.32 (C) the excess employment is voluntary and not a condition 5.33 of employment; 5.34 (D) the excess employment is in the nature of additional, 5.35 part-time or overtime employment compensable by the hour or 5.36 fraction of an hour; and 6.1 (E) the party's compensation structure has not been changed 6.2 for the purpose of affecting a support or maintenance obligation. 6.3 The court shall review the work-related and 6.4 education-related child care costs paid and shall allocate the 6.5 costs to each parent in proportion to each parent's net income, 6.6 as determined under this subdivision, after the transfer of 6.7 child support and spousal maintenance, unless the allocation 6.8 would be substantially unfair to either parent. There is a 6.9 presumption of substantial unfairness if after the sum total of 6.10 child support, spousal maintenance, and child care costs is 6.11 subtracted from the noncustodial parent's income, the income is 6.12 at or below 100 percent of the federal poverty guidelines. The 6.13 cost of child care for purposes of this paragraph is 75 percent 6.14 of the actual cost paid for child care, to reflect the 6.15 approximate value of state and federal tax credits available to 6.16 the custodial parent. The actual cost paid for child care is 6.17 the total amount received by the child care provider for the 6.18 child or children of the obligor from the obligee or any public 6.19 agency. The court shall require verification of employment or 6.20 school attendance and documentation of child care expenses from 6.21 the obligee and the public agency, if applicable. If child care 6.22 expenses fluctuate during the year because of seasonal 6.23 employment or school attendance of the obligee or extended 6.24 periods of visitation with the obligor, the court shall 6.25 determine child care expenses based on an average monthly cost. 6.26 The amount allocated for child care expenses is considered child 6.27 support but is not subject to a cost-of-living adjustment under 6.28 section 518.641. The amount allocated for child care expenses 6.29 terminates when either party notifies the public authority that 6.30 the child care costs have ended and without any legal action on 6.31 the part of either party. The public authority shall verify the 6.32 information received under this provision before authorizing 6.33 termination. The termination is effective as of the date of the 6.34 notification. In other cases where there is a substantial 6.35 increase or decrease in child care expenses, the parties may 6.36 modify the order under section 518.64. 7.1 The court may allow the noncustodial parent to care for the 7.2 child while the custodial parent is working, as provided in 7.3 section 518.175, subdivision 8. Allowing the noncustodial 7.4 parent to care for the child under section 518.175, subdivision 7.5 8, is not a reason to deviate from the guidelines. 7.6 (c) In addition to the child support guidelines, the court 7.7 shall take into consideration the following factors in setting 7.8 or modifying child support or in determining whether to deviate 7.9 from the guidelines: 7.10 (1) all earnings, income, and resources of the parents, 7.11 including real and personal property, but excluding income from 7.12 excess employment of the obligor or obligee that meets the 7.13 criteria of paragraph (b), clause (2)(ii); 7.14 (2) the financial needs and resources, physical and 7.15 emotional condition, and educational needs of the child or 7.16 children to be supported; 7.17 (3) the standard of living the child would have enjoyed had 7.18 the marriage not been dissolved, but recognizing that the 7.19 parents now have separate households; 7.20 (4) which parent receives the income taxation dependency 7.21 exemption and what financial benefit the parent receives from 7.22 it; 7.23 (5) the parents' debts as provided in paragraph (d); and 7.24 (6) the obligor's receipt of public assistanceunder7.25sections 256.72 to 256.87 or 256B.01 to 256B.40. 7.26 (d) In establishing or modifying a support obligation, the 7.27 court may consider debts owed to private creditors, but only if: 7.28 (1) the right to support has not been assigned under 7.29 section 256.74; 7.30 (2) the court determines that the debt was reasonably 7.31 incurred for necessary support of the child or parent or for the 7.32 necessary generation of income. If the debt was incurred for 7.33 the necessary generation of income, the court shall consider 7.34 only the amount of debt that is essential to the continuing 7.35 generation of income; and 7.36 (3) the party requesting a departure produces a sworn 8.1 schedule of the debts, with supporting documentation, showing 8.2 goods or services purchased, the recipient of them, the amount 8.3 of the original debt, the outstanding balance, the monthly 8.4 payment, and the number of months until the debt will be fully 8.5 paid. 8.6 (e) Any schedule prepared under paragraph (d), clause (3), 8.7 shall contain a statement that the debt will be fully paid after 8.8 the number of months shown in the schedule, barring emergencies 8.9 beyond the party's control. 8.10 (f) Any further departure below the guidelines that is 8.11 based on a consideration of debts owed to private creditors 8.12 shall not exceed 18 months in duration, after which the support 8.13 shall increase automatically to the level ordered by the court. 8.14 Nothing in this section shall be construed to prohibit one or 8.15 more step increases in support to reflect debt retirement during 8.16 the 18-month period. 8.17 (g) If payment of debt is ordered pursuant to this section, 8.18 the payment shall be ordered to be in the nature of child 8.19 support. 8.20 (h) Nothing shall preclude the court from receiving 8.21 evidence on the above factors to determine if the guidelines 8.22 should be exceeded or modified in a particular case. 8.23 (i) The guidelines in this subdivision are a rebuttable 8.24 presumption and shall be used in all cases when establishing or 8.25 modifying child support. If the court does not deviate from the 8.26 guidelines, the court shall make written findings concerning the 8.27 amount of the obligor's income used as the basis for the 8.28 guidelines calculation and any other significant evidentiary 8.29 factors affecting the determination of child support. If the 8.30 court deviates from the guidelines, the court shall make written 8.31 findings giving the amount of support calculated under the 8.32 guidelines, the reasons for the deviation, and shall 8.33 specifically address the criteria in paragraph (c) and how the 8.34 deviation serves the best interest of the child. The court may 8.35 deviate from the guidelines if both parties agree and the court 8.36 makes written findings that it is in the best interests of the 9.1 child, except that in cases where child support payments are 9.2 assigned to the public agency under section 256.74, the court 9.3 may deviate downward only as provided in paragraph (j). Nothing 9.4 in this paragraph prohibits the court from deviating in other 9.5 cases. The provisions of this paragraph apply whether or not 9.6 the parties are each represented by independent counsel and have 9.7 entered into a written agreement. The court shall review 9.8 stipulations presented to it for conformity to the guidelines 9.9 and the court is not required to conduct a hearing, but the 9.10 parties shall provide the documentation of earnings required 9.11 under subdivision 5b. 9.12 (j) If the child support payments are assigned to the 9.13 public agency under section 256.74, the court may not deviate 9.14 downward from the child support guidelines unless the court 9.15 specifically finds that the failure to deviate downward would 9.16 impose an extreme hardship on the obligor. 9.17 (k) The dollar amount of the income limit for application 9.18 of the guidelines must be adjusted on July 1 of every 9.19 even-numbered year to reflect cost-of-living changes. The 9.20 supreme court shall select the index for the adjustment from the 9.21 indices listed in section 518.641. The state court 9.22 administrator shall make the changes in the dollar amount 9.23 required by this paragraph available to courts and the public on 9.24 or before April 30 of the year in which the amount is to change. 9.25 Sec. 7. Minnesota Statutes 1997 Supplement, section 9.26 518.551, subdivision 5b, is amended to read: 9.27 Subd. 5b. [DETERMINATION OF INCOME.] (a) The parties shall 9.28 timely serve and file documentation of earnings and income. 9.29 When there is a prehearing conference, the court must receive 9.30 the documentation of income at least ten days prior to the 9.31 prehearing conference. Documentation of earnings and income 9.32 also includes, but is not limited to, pay stubs for the most 9.33 recent three months, employer statements, or statement of 9.34 receipts and expenses if self-employed. Documentation of 9.35 earnings and income also includes copies of each parent's most 9.36 recent federal tax returns, including W-2 forms, 1099 forms, 10.1 reemployment insurance statements, workers' compensation 10.2 statements, and all other documents evidencing income as 10.3 received that provide verification of income over a longer 10.4 period. 10.5 (b) In addition to the requirements of paragraph (a), at 10.6 any time after an action seeking child support has been 10.7 commenced or when a child support order is in effect, a party or 10.8 the public authority may require the other party to give them a 10.9 copy of the party's most recent federal tax returns that were 10.10 filed with the Internal Revenue Service. The party shall 10.11 provide a copy of the tax returns within 30 days of receipt of 10.12 the request unless the request is not made in good faith. A 10.13 request under this paragraph may not be made more than once 10.14 every two years, in the absence of good cause. 10.15 (c) If a parent under the jurisdiction of the court does 10.16 not appear at a court hearing after proper notice of the time 10.17 and place of the hearing, the court shall set income for that 10.18 parent based on credible evidence before the court or in 10.19 accordance with paragraph (d). Credible evidence may include 10.20 documentation of current or recent income, testimony of the 10.21 other parent concerning recent earnings and income levels, and 10.22 the parent's wage reports filed with the Minnesota department of 10.23 economic security under section 268.044. 10.24 (d) If the court finds that a parent is voluntarily 10.25 unemployed or underemployed, child support shall be calculated 10.26 based on a determination of imputed income. A parent is not 10.27 considered voluntarily unemployed or underemployed upon a 10.28 showing by the parent that the unemployment or underemployment: 10.29 (1) is temporary and will ultimately lead to an increase in 10.30 income; or (2) represents a bona fide career change that 10.31 outweighs the adverse effect of that parent's diminished income 10.32 on the child. Imputed income means the estimated earning 10.33 ability of a parent based on the parent's prior earnings 10.34 history, education, and job skills, and on availability of jobs 10.35 within the community for an individual with the parent's 10.36 qualifications. 11.1 (e) If the court is unable to determine or estimate the 11.2 earning ability of a parent pursuant to paragraph (d), the court 11.3 may calculate child support based on full-time employment of 40 11.4 hours per week at 150 percent of the federal minimum wage or the 11.5 Minnesota minimum wage, whichever is higher. If the court is 11.6 unable to determine or estimate the earning ability of a parent, 11.7 any medical support or child care contribution must be 11.8 calculated based upon the obligor's proportionate share of the 11.9 child care expenses using 40 hours per week at 150 percent of 11.10 the federal minimum wage or the Minnesota minimum wage, 11.11 whichever is higher. If a parent is a recipient of public 11.12 assistance under section 256.741, or is physically or mentally 11.13 incapacitated, it shall be presumed that the parent is not 11.14 voluntarily unemployed or underemployed. 11.15(e)(f) Income from self employment is equal to gross 11.16 receipts minus ordinary and necessary expenses. Ordinary and 11.17 necessary expenses do not include amounts allowed by the 11.18 Internal Revenue Service for accelerated depreciation expenses 11.19 or investment tax credits or any other business expenses 11.20 determined by the court to be inappropriate for determining 11.21 income for purposes of child support. The person seeking to 11.22 deduct an expense, including depreciation, has the burden of 11.23 proving, if challenged, that the expense is ordinary and 11.24 necessary. Net income under this section may be different from 11.25 taxable income. 11.26 Sec. 8. Minnesota Statutes 1996, section 518.551, 11.27 subdivision 9, is amended to read: 11.28 Subd. 9. [ASSIGNMENT OF RIGHTS; JUDGMENT.] The public 11.29 agency responsible for child support enforcement is joined as a 11.30 party in each case in which rights are assigned under section 11.31256.74256.741, subdivision52. The court administrator shall 11.32 enter and docket a judgment obtained by operation of law under 11.33 section 548.091, subdivision 1, in the name of the public agency 11.34 to the extent that the obligation has been assigned. When 11.35 arrearages are reduced to judgment under circumstances in which 11.36 section 548.091 is not applicable, the court shall grant 12.1 judgment in favor of, and in the name of, the public agency to 12.2 the extent that the arrearages are assigned. After filing 12.3 notice of an assignment with the court administrator, who shall 12.4 enter the notice in the docket, the public agency may enforce a 12.5 judgment entered before the assignment of rights as if the 12.6 judgment were granted to it, and in its name, to the extent that 12.7 the arrearages in that judgment are assigned. 12.8 Sec. 9. Minnesota Statutes 1997 Supplement, section 12.9 518.5511, is amended by adding a subdivision to read: 12.10 Subd. 4a. [PRIORITY OF ORDERS.] If more than one order for 12.11 child support exists involving the same obligor and child, the 12.12 most recent order controls. If a court enters an order 12.13 continuing existing orders in effect, the most recent order 12.14 contained in the court file controls. 12.15 Sec. 10. [518.554] [COLLECTION OF ARREARS.] 12.16 Support enforcement mechanisms may be used to collect 12.17 arrears and court-ordered amounts for past support or pregnancy 12.18 and confinement expenses for which there are no terms for 12.19 repayment. 12.20 Sec. 11. Minnesota Statutes 1997 Supplement, section 12.21 518.6111, subdivision 9, is amended to read: 12.22 Subd. 9. [PRIORITY.] (a) An order for or notice of 12.23 withholding under this section or execution or garnishment upon 12.24 a judgment for child support arrearage or preadjudicated 12.25 expenses shall have priority over an attachment, execution, 12.26 garnishment, or wage assignment and shall not be subject to the 12.27 statutory limitations on amounts levied against the income of 12.28 the obligor. Amounts withheld from an employee's income must 12.29 not exceed the maximum permitted under the Consumer Credit 12.30 Protection Act, title 15 of the United States Code, section 12.31 1673(b). 12.32 (b) Subject to section 518.5511, subdivision 4a, if more 12.33 than one order for or notice of withholding exists involving the 12.34 same obligor and child, the public authority shall enforce the 12.35 mostcurrentrecent order or notice. An order for or notice of 12.36 withholding that was previously implemented according to this 13.1 section shall end as of the date of the mostcurrentrecent 13.2 order. The public authority shall notify the payor of funds to 13.3 withhold under the mostcurrentrecent withholding order or 13.4 notice. 13.5 Sec. 12. Minnesota Statutes 1997 Supplement, section 13.6 518.6111, subdivision 14, is amended to read: 13.7 Subd. 14. [TERMINATION BY THE PUBLIC AUTHORITY.] If the 13.8 public authority determines that income withholding is no longer 13.9 applicable, the public authority shall notify the obligee and 13.10 the obligor of intent to terminate income withholding. 13.11 Five days following notification to the obligee and 13.12 obligor, the public authority shall issue a notice to the payor 13.13 of funds terminating income withholding, without a requirement 13.14 for a court order unless the obligee has requested a contested 13.15 hearing under section 518.5511, subdivision43a. 13.16 Sec. 13. Minnesota Statutes 1997 Supplement, section 13.17 518.615, subdivision 1, is amended to read: 13.18 Subdivision 1. [ORDERS BINDING.] Notices or orders for 13.19 income withholding or medical supportordersissued pursuant to 13.20 sections 518.171 and 518.6111 are binding on the employer, 13.21 trustee, or other payor of funds after the orderandor notice 13.22offor income withholding or enforcement of medical support has 13.23 beenserved ontransmitted pursuant to section 518.6111 to the 13.24 employer, trustee, or payor of funds. 13.25 Sec. 14. Minnesota Statutes 1996, section 518.615, 13.26 subdivision 2, is amended to read: 13.27 Subd. 2. [CONTEMPT ACTION.] An obligee or the public 13.28 agency responsible for child support enforcement may initiate a 13.29 contempt action against an employer, trustee, or payor of funds, 13.30 within the action that created the support obligation, by 13.31 serving an order to show cause upon the employer, trustee, or 13.32 payor of funds. 13.33 The employer, trustee, or payor of funds is presumed to be 13.34 in contempt: 13.35 (1) if the employer, trustee, or payor of funds has 13.36 intentionally failed to withhold support after receiving the 14.1 orderandor noticeoffor income withholding or notice of 14.2 enforcement of medical support; or 14.3 (2) upon presentation of pay stubs or similar documentation 14.4 showing the employer, trustee, or payor of funds withheld 14.5 support and demonstration that the employer, trustee, or payor 14.6 of funds intentionally failed to remit support to the agency 14.7 responsible for child support enforcement. 14.8 Sec. 15. [518.642] [OVERPAYMENTS.] 14.9 If child support or maintenance is not assigned under 14.10 section 256.741, and an obligor has overpaid a child support or 14.11 maintenance obligation because of a modification or error in the 14.12 amount owed, the public authority shall: 14.13 (1) apply the amount of the overpayment to reduce the 14.14 amount of any child support or maintenance-related arrearages or 14.15 debts owed to the obligee; and 14.16 (2) if an overpayment exists after the reduction of any 14.17 arrearage or debt, reduce the amount of the child support 14.18 remitted to the obligee by an amount no greater than 20 percent 14.19 of the current monthly support or maintenance obligation and 14.20 remit this amount to the obligor until the overpayment is 14.21 reduced to zero. 14.22 Sec. 16. Minnesota Statutes 1997 Supplement, section 14.23 552.04, subdivision 4, is amended to read: 14.24 Subd. 4. [SERVICE OF THIRD PARTY LEVY; NOTICE AND 14.25 DISCLOSURE FORMS.] When levying upon money owed to the judgment 14.26 debtor by a third party, the public authority shall serve a copy 14.27 of the notice of support judgment levy upon the third party 14.28 either by registered or certified mail,orby personal service, 14.29 or by electronic transmission. Along with a copy of the notice 14.30 of support judgment levy, the public authority shall serve upon 14.31 the third party a notice of support judgment levy and disclosure 14.32 form that must be substantially in the form set forth below. 14.33 OFFICE OF ADMINISTRATIVE HEARINGS 14.34 File No. ........... 14.35 ........ (Public authority) 14.36 against NOTICE OF SUPPORT JUDGMENT 14.37 ........ (Judgment Debtor) LEVY AND DISCLOSURE 14.38 and (OTHER THAN EARNINGS) 15.1 ........ (Third Party) 15.2 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 15.3 chapters 518 and 522, the undersigned, as representative of the 15.4 public authority responsible for child support enforcement, 15.5 makes demand and levies execution upon all money due and owing 15.6 by you to the judgment debtor for the amount of the judgment 15.7 specified below. A copy of the notice of support judgment levy 15.8 is enclosed. The unpaid judgment balance is $...... 15.9 In responding to this levy, you are to complete the 15.10 attached disclosure form and mail it to the public authority, 15.11 together with your check payable to the public authority, for 15.12 the nonexempt amount owed by you to the judgment debtor or for 15.13 which you are obligated to the judgment debtor, within the time 15.14 limits in chapter 552. 15.15 Public Authority 15.16 Address 15.17 (........) 15.18 Phone number 15.19 15.20 DISCLOSURE 15.21 On the ... day of ......, 19..., the time of service of the 15.22 execution levy herein, there was due and owing the judgment 15.23 debtor from the third party the following: 15.24 (1) Money. Enter on the line below any amounts due and 15.25 owing the judgment debtor, except earnings, from the third party. 15.26 ......................... 15.27 (2) Setoff. Enter on the line below the amount of any 15.28 setoff, defense, lien, or claim which the third party claims 15.29 against the amount set forth on line (1). State the facts by 15.30 which the setoff, defense, lien, or claim is claimed. (Any 15.31 indebtedness to you incurred by the judgment debtor within ten 15.32 days prior to the receipt of the first execution levy on a debt 15.33 may not be claimed as a setoff, defense, lien, or claim against 15.34 the amount set forth on line (1).) 15.35 ......................... 15.36 (3) Exemption. Enter on the line below any amounts or 15.37 property claimed by the judgment debtor to be exempt from 16.1 execution. 16.2 ......................... 16.3 (4) Adverse Interest. Enter on the line below any amounts 16.4 claimed by other persons by reason of ownership or interest in 16.5 the judgment debtor's property. 16.6 ......................... 16.7 (5) Enter on the line below the total of lines (2), (3), 16.8 and (4). 16.9 ......................... 16.10 (6) Enter on the line below the difference obtained (never 16.11 less than zero when line (5) is subtracted from the amount on 16.12 line (1)). 16.13 ......................... 16.14 (7) Enter on the line below 100 percent of the amount of 16.15 the public authority's claim which remains unpaid. 16.16 ......................... 16.17 (8) Enter on the line below the lesser of line (6) and line 16.18 (7). You are instructed to remit this amount only if it is $10 16.19 or more. 16.20 ......................... 16.21 AFFIRMATION 16.22 I, .......... (person signing Affirmation), am the third 16.23 party or I am authorized by the third party to complete this 16.24 nonearnings disclosure, and have done so truthfully and to the 16.25 best of my knowledge. 16.26 Dated:.......... Signature 16.27 .......... 16.28 Title 16.29 .......... 16.30 Telephone Number