1.1                          A bill for an act 
  1.2             relating to child support; permitting the issuance of 
  1.3             a limited license under certain circumstances to a 
  1.4             person whose driver's license is suspended for 
  1.5             nonpayment of support; clarifying requirements 
  1.6             relating to payment agreements; modifying certain 
  1.7             bonus incentives; changing child medical support 
  1.8             requirements and procedures; changing support 
  1.9             enforcement provisions; providing for continued 
  1.10            exchange of certain data; appropriating money; 
  1.11            amending Minnesota Statutes 2000, sections 171.186, 
  1.12            subdivisions 1, 3, by adding a subdivision; 171.20, 
  1.13            subdivision 4; 171.30, subdivision 1; 518.171, 
  1.14            subdivision 3, by adding a subdivision; 518.551, 
  1.15            subdivisions 12, 13, 14, 15; 518.553; 518.6111, 
  1.16            subdivision 8; 518.614, subdivisions 3, 4; 518.617, 
  1.17            subdivision 2; 548.091, subdivisions 1, 2a; Minnesota 
  1.18            Statutes 2001 Supplement, sections 256.979, 
  1.19            subdivisions 5, 6; 518.171, subdivisions 1, 4, 5; 
  1.20            518.6196; 548.091, subdivision 1a; Laws 2001, chapter 
  1.21            202, section 19. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 2000, section 171.186, 
  1.24  subdivision 1, is amended to read: 
  1.25     Subdivision 1.  [SUSPENSION.] The commissioner shall 
  1.26  suspend a person's driver's license or operating privileges 
  1.27  without a hearing upon receipt of a court order or notice from a 
  1.28  public authority responsible for child support enforcement that 
  1.29  states that the driver is in arrears in court-ordered child 
  1.30  support or maintenance payments, or both, in an amount equal to 
  1.31  or greater than three times the obligor's total monthly support 
  1.32  and maintenance payments, and is not in compliance with a 
  1.33  written payment agreement regarding both current support and 
  2.1   arrearages pursuant to section 518.553 that is approved by a 
  2.2   court, a child support magistrate, or the public authority 
  2.3   responsible for child support enforcement, in accordance with 
  2.4   section 518.551, subdivision 13. 
  2.5      Sec. 2.  Minnesota Statutes 2000, section 171.186, 
  2.6   subdivision 3, is amended to read: 
  2.7      Subd. 3.  [DURATION.] A license or operating privilege must 
  2.8   remain suspended and may not be reinstated, nor may a license be 
  2.9   subsequently issued to the person, until the commissioner 
  2.10  receives notice from the court, a child support magistrate, or 
  2.11  public authority responsible for child support enforcement that 
  2.12  the person is in compliance with all current orders of support 
  2.13  or written payment agreements regarding both current support and 
  2.14  arrearages pursuant to section 518.553.  A fee may not be 
  2.15  assessed for reinstatement of a license under this 
  2.16  section unless the person whose license was suspended under this 
  2.17  section has obtained a limited license during the period of 
  2.18  suspension.  
  2.19     Sec. 3.  Minnesota Statutes 2000, section 171.186, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 4.  [LIMITED LICENSE.] (a) Notwithstanding 
  2.22  subdivision 3, the commissioner may issue a limited license to a 
  2.23  person whose license has been suspended under this section if 
  2.24  the person qualifies for a limited license under section 171.30. 
  2.25     (b) A limited license issued to a person under this 
  2.26  subdivision must expire 90 days after the date it is issued. 
  2.27     Sec. 4.  Minnesota Statutes 2000, section 171.20, 
  2.28  subdivision 4, is amended to read: 
  2.29     Subd. 4.  [REINSTATEMENT FEE.] Before the license is 
  2.30  reinstated, (1) a person whose driver's license has been 
  2.31  suspended under section 171.16, subdivision 2; 171.18, except 
  2.32  subdivision 1, clause (10); or 171.182, or who has been 
  2.33  disqualified from holding a commercial driver's license under 
  2.34  section 171.165, and (2) a person whose driver's license has 
  2.35  been suspended under section 171.186 and who is not exempt from 
  2.36  such a fee must pay a fee of $20.  When fees are collected by a 
  3.1   licensing agent appointed under section 171.061, a handling 
  3.2   charge is imposed in the amount specified under section 171.061, 
  3.3   subdivision 4.  The reinstatement fee and surcharge must be 
  3.4   deposited in an approved state depository as directed under 
  3.5   section 171.061, subdivision 4.  A suspension may be rescinded 
  3.6   without fee for good cause. 
  3.7      Sec. 5.  Minnesota Statutes 2000, section 171.30, 
  3.8   subdivision 1, is amended to read: 
  3.9      Subdivision 1.  [CONDITIONS OF ISSUANCE.] (a) In any case 
  3.10  where a person's license has been suspended under section 171.18 
  3.11  or, 171.173, or 171.186, or revoked under section 169.792, 
  3.12  169.797, 169A.52, 169A.54, 171.17, or 171.172, the commissioner 
  3.13  may issue a limited license to the driver including under the 
  3.14  following conditions:  
  3.15     (1) if the driver's livelihood or attendance at a chemical 
  3.16  dependency treatment or counseling program depends upon the use 
  3.17  of the driver's license; 
  3.18     (2) if the use of a driver's license by a homemaker is 
  3.19  necessary to prevent the substantial disruption of the 
  3.20  education, medical, or nutritional needs of the family of the 
  3.21  homemaker; or 
  3.22     (3) if attendance at a post-secondary institution of 
  3.23  education by an enrolled student of that institution depends 
  3.24  upon the use of the driver's license.  
  3.25     (b) The commissioner in issuing a limited license may 
  3.26  impose such conditions and limitations as in the commissioner's 
  3.27  judgment are necessary to the interests of the public safety and 
  3.28  welfare including reexamination as to the driver's 
  3.29  qualifications.  The license may be limited to the operation of 
  3.30  particular vehicles, to particular classes and times of 
  3.31  operation and to particular conditions of traffic.  The 
  3.32  commissioner may require that an applicant for a limited license 
  3.33  affirmatively demonstrate that use of public transportation or 
  3.34  carpooling as an alternative to a limited license would be a 
  3.35  significant hardship.  
  3.36     (c) For purposes of this subdivision, "homemaker" refers to 
  4.1   the person primarily performing the domestic tasks in a 
  4.2   household of residents consisting of at least the person and the 
  4.3   person's dependent child or other dependents. 
  4.4      (d) The limited license issued by the commissioner shall 
  4.5   clearly indicate the limitations imposed and the driver 
  4.6   operating under the limited license shall have the license in 
  4.7   possession at all times when operating as a driver. 
  4.8      (e) In determining whether to issue a limited license, the 
  4.9   commissioner shall consider the number and the seriousness of 
  4.10  prior convictions and the entire driving record of the driver 
  4.11  and shall consider the number of miles driven by the driver 
  4.12  annually. 
  4.13     (f) If the person's driver's license or permit to drive has 
  4.14  been revoked under section 169.792 or 169.797, the commissioner 
  4.15  may only issue a limited license to the person after the person 
  4.16  has presented an insurance identification card, policy, or 
  4.17  written statement indicating that the driver or owner has 
  4.18  insurance coverage satisfactory to the commissioner of public 
  4.19  safety.  The commissioner of public safety may require the 
  4.20  insurance identification card provided to satisfy this 
  4.21  subdivision be certified by the insurance company to be 
  4.22  noncancelable for a period not to exceed 12 months. 
  4.23     (g) The limited license issued by the commissioner to a 
  4.24  person under section 171.186, subdivision 4, must expire 90 days 
  4.25  after the date it is issued.  The commissioner must not issue a 
  4.26  limited license to a person who previously has been issued a 
  4.27  limited license under section 171.186, subdivision 4. 
  4.28     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  4.29  256.979, subdivision 5, is amended to read: 
  4.30     Subd. 5.  [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER 
  4.31  ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A bonus 
  4.32  incentive program is created to increase the number of paternity 
  4.33  establishments and establishment and modifications of child 
  4.34  support orders done by county child support enforcement agencies.
  4.35     (b) A bonus must be awarded to a county child support 
  4.36  agency for each child for which the agency completes a paternity 
  5.1   order or for each case in which child support order 
  5.2   establishment or modification is established or modified through 
  5.3   judicial or administrative expedited processes. 
  5.4      (c) The rate of bonus incentive is $100 per child for each 
  5.5   paternity established, or $100 per case for each child support 
  5.6   order establishment and modification established or modified, 
  5.7   which is set in a specific dollar amount. 
  5.8      (d) No bonus shall be paid for a modification that is a 
  5.9   result of a termination of child care costs according to section 
  5.10  518.551, subdivision 5, paragraph (b), or due solely to a 
  5.11  reduction of child care expenses. 
  5.12     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  5.13  256.979, subdivision 6, is amended to read: 
  5.14     Subd. 6.  [CLAIMS FOR BONUS INCENTIVE.] (a) The 
  5.15  commissioner of human services and the county agency shall 
  5.16  develop procedures for the claims process and criteria using 
  5.17  automated systems where possible. 
  5.18     (b) Only one county agency may receive a bonus per 
  5.19  paternity establishment or child support order establishment or 
  5.20  modification for each child order.  The county agency completing 
  5.21  the action or procedure needed to establish paternity or a child 
  5.22  support order or modify an order is the county agency entitled 
  5.23  to claim the bonus incentive. 
  5.24     (c) Disputed claims must be submitted to the commissioner 
  5.25  of human services and the commissioner's decision is final. 
  5.26     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  5.27  518.171, subdivision 1, is amended to read: 
  5.28     Subdivision 1.  [ORDER.] Compliance with this section 
  5.29  constitutes compliance with A completed national medical support 
  5.30  notice issued by the public authority or a court order that 
  5.31  complies with this section is a qualified medical child support 
  5.32  order as described in the federal Employee Retirement Income 
  5.33  Security Act of 1974 (ERISA) as amended by the federal Omnibus 
  5.34  Budget Reconciliation Act of 1993 (OBRA).  
  5.35     (a) Every child support order must: 
  5.36     (1) expressly assign or reserve the responsibility for 
  6.1   maintaining medical insurance for the minor children and the 
  6.2   division of uninsured medical and dental costs; and 
  6.3      (2) contain the names, last known addresses, and social 
  6.4   security numbers of the parents of the dependents unless the 
  6.5   court prohibits the inclusion of an address or social security 
  6.6   number and orders the parents to provide their addresses and 
  6.7   social security numbers to the administrator of the health 
  6.8   plan.  The court shall order the parent with the better group 
  6.9   dependent health and dental insurance coverage or health 
  6.10  insurance plan to name the minor child as beneficiary on any 
  6.11  health and dental insurance plan that is available to the parent 
  6.12  on: 
  6.13     (i) a group basis; 
  6.14     (ii) through an employer or union; or 
  6.15     (iii) through a group health plan governed under the ERISA 
  6.16  and included within the definitions relating to health plans 
  6.17  found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
  6.18  "Health insurance" or "health insurance coverage" as used in 
  6.19  this section means coverage that is comparable to or better than 
  6.20  a number two qualified plan as defined in section 62E.06, 
  6.21  subdivision 2.  "Health insurance" or "health insurance 
  6.22  coverage" as used in this section does not include medical 
  6.23  assistance provided under chapter 256, 256B, 256J, 256K, or 256D.
  6.24     (b) If the court finds that dependent health or dental 
  6.25  insurance is not available to the obligor or obligee on a group 
  6.26  basis or through an employer or union, or that group insurance 
  6.27  is not accessible to the obligee, the court may require the 
  6.28  obligor (1) to obtain other dependent health or dental 
  6.29  insurance, (2) to be liable for reasonable and necessary medical 
  6.30  or dental expenses of the child, or (3) to pay no less than $50 
  6.31  per month to be applied to the medical and dental expenses of 
  6.32  the children or to the cost of health insurance dependent 
  6.33  coverage. 
  6.34     (c) If the court finds that the available dependent health 
  6.35  or dental insurance does not pay all the reasonable and 
  6.36  necessary medical or dental expenses of the child, including any 
  7.1   existing or anticipated extraordinary medical expenses, and the 
  7.2   court finds that the obligor has the financial ability to 
  7.3   contribute to the payment of these medical or dental expenses, 
  7.4   the court shall require the obligor to be liable for all or a 
  7.5   portion of the medical or dental expenses of the child not 
  7.6   covered by the required health or dental plan.  Medical and 
  7.7   dental expenses include, but are not limited to, necessary 
  7.8   orthodontia and eye care, including prescription lenses. 
  7.9      (d) Unless otherwise agreed by the parties and approved by 
  7.10  the court, if the court finds that the obligee is not receiving 
  7.11  public assistance for the child and has the financial ability to 
  7.12  contribute to the cost of medical and dental expenses for the 
  7.13  child, including the cost of insurance, the court shall order 
  7.14  the obligee and obligor to each assume a portion of these 
  7.15  expenses based on their proportionate share of their total net 
  7.16  income as defined in section 518.54 518.551, subdivision 6 5. 
  7.17     (e) Payments ordered under this section are subject to 
  7.18  section 518.6111.  An obligee who fails to apply payments 
  7.19  received to the medical expenses of the dependents may be found 
  7.20  in contempt of this order. 
  7.21     Sec. 9.  Minnesota Statutes 2000, section 518.171, 
  7.22  subdivision 3, is amended to read: 
  7.23     Subd. 3.  [IMPLEMENTATION NOTICE TO EMPLOYER OR UNION.] (a) 
  7.24  For purposes of this chapter, "national medical support notice" 
  7.25  means an administrative notice issued by the public authority to 
  7.26  enforce health insurance provisions of a support order in IV-D 
  7.27  cases under the Code of Federal Regulations. 
  7.28     (b) A copy of the national medical support notice or court 
  7.29  order for insurance coverage shall be forwarded to the obligor's 
  7.30  employer or union and or to the health or dental insurance 
  7.31  carrier or employer if necessary by the obligee or the public 
  7.32  authority responsible for support enforcement only when ordered 
  7.33  by the court or when the following conditions are met: 
  7.34     (1) the obligor fails to provide written proof to the 
  7.35  obligee or the public authority, within 30 days of the effective 
  7.36  date of the court order, that the obligor has applied for 
  8.1   insurance has been obtained for the child; 
  8.2      (2) the obligee or the public authority serves written 
  8.3   notice of its intent to enforce medical support on the.  The 
  8.4   obligee or the public authority must mail the written notice to 
  8.5   the obligor by mail at the obligor's last known post office 
  8.6   address; and 
  8.7      (3) the obligor fails within 15 days after the mailing of 
  8.8   the notice to provide written proof to the obligee or the public 
  8.9   authority that the obligor has applied for insurance coverage 
  8.10  existed as of the date of mailing for the child. 
  8.11     The employer or union shall forward a copy of the order to 
  8.12  the health and dental insurance plan offered by the employer. 
  8.13     (c) If an obligor is ordered to carry health insurance 
  8.14  coverage for the child and has not enrolled the child in health 
  8.15  insurance coverage, the public authority must forward a copy of 
  8.16  the national medical support notice to the obligor's employer or 
  8.17  union within two business days after the date the obligor is 
  8.18  entered into the work reporting system under section 256.998. 
  8.19     Sec. 10.  Minnesota Statutes 2001 Supplement, section 
  8.20  518.171, subdivision 4, is amended to read: 
  8.21     Subd. 4.  [EFFECT OF ORDER.] (a) The national medical 
  8.22  support notice or court order is binding on the employer or 
  8.23  union and the health and dental insurance plan when service 
  8.24  under subdivision 3 has been made.  In the case of an obligor 
  8.25  who changes employment and is required to provide health 
  8.26  coverage for the child, a new employer that provides health care 
  8.27  coverage shall enroll the child in the obligor's health plan 
  8.28  upon receipt of an order or notice for health insurance, unless 
  8.29  the obligor contests the enrollment.  
  8.30     (b) The obligor may contest the enrollment on the limited 
  8.31  grounds that the enrollment is improper due to mistake of fact 
  8.32  or that the enrollment meets the requirements of section 518.64, 
  8.33  subdivision 2.  If the obligor chooses to contest the 
  8.34  enrollment, the obligor must do so no later than 15 days after 
  8.35  the employer notifies the obligor of the enrollment, by doing 
  8.36  all of the following: 
  9.1      (1) filing a request for contested hearing motion in 
  9.2   district court or according to section 484.702 and the rules of 
  9.3   the expedited child support process if the public authority 
  9.4   provides support enforcement services; 
  9.5      (2) serving mailing a copy of the request for contested 
  9.6   hearing upon motion to the public authority if the public 
  9.7   authority provides support enforcement services and the obligee; 
  9.8   and 
  9.9      (3) securing a date for the contested hearing no later than 
  9.10  45 days after the notice of enrollment. 
  9.11     (b) The enrollment must remain in place during the time 
  9.12  period in which the obligor contests the withholding enrollment. 
  9.13     (c) An employer or union that is included under ERISA may 
  9.14  not deny enrollment based on exclusionary clauses described in 
  9.15  section 62A.048.  Upon application of the obligor according to 
  9.16  the order or notice, the employer or union and its health and 
  9.17  dental insurance plan shall enroll the minor child as a 
  9.18  beneficiary in the group insurance plan and withhold any 
  9.19  required premium from the obligor's income or wages.  If more 
  9.20  than one plan is offered by the employer or union, the child 
  9.21  shall be enrolled in the least costly health insurance plan 
  9.22  otherwise available to the obligor that is comparable to a 
  9.23  number two qualified plan.  If the obligor is not enrolled in a 
  9.24  health insurance plan, the employer or union shall also enroll 
  9.25  the obligor in the chosen plan if enrollment of the obligor is 
  9.26  necessary in order to obtain dependent coverage under the plan.  
  9.27  Enrollment of dependents and, if necessary, the obligor shall be 
  9.28  immediate and not dependent upon open enrollment periods.  
  9.29  Enrollment is not subject to the underwriting policies described 
  9.30  in section 62A.048.  
  9.31     (c) (d) An employer or union that willfully fails to comply 
  9.32  with the order is liable for any health or dental expenses 
  9.33  incurred by the dependents during the period of time the 
  9.34  dependents were eligible to be enrolled in the insurance 
  9.35  program, and for any other premium costs incurred because the 
  9.36  employer or union willfully failed to comply with the order.  An 
 10.1   employer or union that fails to comply with the order is subject 
 10.2   to contempt under section 518.615 and is also subject to a fine 
 10.3   of $500 to be paid to the obligee or public authority.  Fines 
 10.4   paid to the public authority are designated for child support 
 10.5   enforcement services. 
 10.6      (d) (e) Failure of the obligor to execute any documents 
 10.7   necessary to enroll the dependent in the group health and dental 
 10.8   insurance plan will not affect the obligation of the employer or 
 10.9   union and group health and dental insurance plan to enroll the 
 10.10  dependent in a plan.  Information and authorization provided by 
 10.11  the public authority responsible for child support enforcement, 
 10.12  or by the obligee or guardian, is valid for the purposes of 
 10.13  meeting enrollment requirements of the health plan.  
 10.14     (f) The insurance coverage for a child eligible under 
 10.15  subdivision 5 shall not be terminated except as authorized in 
 10.16  subdivision 5. 
 10.17     Sec. 11.  Minnesota Statutes 2000, section 518.171, is 
 10.18  amended by adding a subdivision to read: 
 10.19     Subd. 4a.  [EMPLOYER, UNION AND HEALTH PLAN ADMINISTRATOR 
 10.20  REQUIREMENTS.] (a) An employer or union must forward the 
 10.21  national medical support notice or court order to its health 
 10.22  plan within 20 business days after the date on the national 
 10.23  medical support notice or after receipt of the court order. 
 10.24     (b) If a health plan administrator receives a completed 
 10.25  national medical support notice or court order, the plan 
 10.26  administrator must notify the parties and the public authority 
 10.27  if the public authority provides support enforcement services 
 10.28  within 40 business days after the date of the notice or after 
 10.29  receipt of the court order, of the following: 
 10.30     (1) whether coverage is available to the child under the 
 10.31  terms of the health plan; 
 10.32     (2) whether the child is covered under the health plan; 
 10.33     (3) the effective date of the child's coverage under the 
 10.34  health plan; and 
 10.35     (4) what steps, if any, are required to effectuate the 
 10.36  child's coverage under the health plan.  The plan administrator 
 11.1   must also provide the parties and the public authority if the 
 11.2   public authority provides support enforcement services with a 
 11.3   notice of enrollment of the child, description of the coverage, 
 11.4   and any documents necessary to effectuate coverage. 
 11.5      (c) Upon determination by the health plan administrator 
 11.6   that the child may be covered under the health plan, the 
 11.7   employer or union and health plan must enroll the child as a 
 11.8   beneficiary in the health plan and withhold any required 
 11.9   premiums from the income or wages of the obligor. 
 11.10     (d) If more than one plan is offered by the employer or 
 11.11  union and the national medical support notice or court order 
 11.12  does not specify the plan to be carried, the plan administrator 
 11.13  must notify the parents and the public authority if the public 
 11.14  authority provides support enforcement services. 
 11.15     (e) If enrollment of the obligor is necessary to obtain 
 11.16  dependent health care coverage under the plan and the obligor is 
 11.17  not enrolled in the health plan, the employer or union must also 
 11.18  enroll the obligor in the plan. 
 11.19     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 11.20  518.171, subdivision 5, is amended to read: 
 11.21     Subd. 5.  [ELIGIBLE CHILD DISENROLLMENT; COVERAGE 
 11.22  OPTIONS.] (a) Unless a court order provides otherwise, a minor 
 11.23  child that an obligor is required to cover as a beneficiary 
 11.24  pursuant to this section is eligible for insurance coverage as a 
 11.25  dependent of the obligor until the child is emancipated or, 
 11.26  until further order of the court, or as consistent with the 
 11.27  terms of coverage.  The health or dental insurance carrier or 
 11.28  employer may not disenroll or eliminate coverage of the child 
 11.29  unless the health or dental insurance carrier or employer is 
 11.30  provided satisfactory written evidence that the court order is 
 11.31  no longer in effect, or the child is or will be enrolled in 
 11.32  comparable health coverage through another health or dental 
 11.33  insurance plan that will take effect no later than the effective 
 11.34  date of the disenrollment, or the employer has eliminated family 
 11.35  health and dental coverage for all of its employees employee is 
 11.36  no longer eligible for dependent coverage, or that the required 
 12.1   premium has not been paid by or on behalf of the child.  If 
 12.2   disenrollment or elimination of coverage of a child under this 
 12.3   subdivision is based upon nonpayment of premium, The health or 
 12.4   dental insurance plan must provide 30 days' written notice to 
 12.5   the obligee child's parents and the public authority if the 
 12.6   public authority provides support enforcement services prior to 
 12.7   the disenrollment or elimination of coverage for the child. 
 12.8      (b) If the public authority provides support enforcement 
 12.9   services and a plan administrator reports to the public 
 12.10  authority that there is more than one coverage option available 
 12.11  under the health plan, the public authority, in consultation 
 12.12  with the parent with whom the child resides, must promptly 
 12.13  select coverage from the available options. 
 12.14     Sec. 13.  Minnesota Statutes 2000, section 518.551, 
 12.15  subdivision 12, is amended to read: 
 12.16     Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
 12.17  motion of an obligee, if the court finds that the obligor is or 
 12.18  may be licensed by a licensing board listed in section 214.01 or 
 12.19  other state, county, or municipal agency or board that issues an 
 12.20  occupational license and the obligor is in arrears in 
 12.21  court-ordered child support or maintenance payments or both in 
 12.22  an amount equal to or greater than three times the obligor's 
 12.23  total monthly support and maintenance payments and is not in 
 12.24  compliance with a written payment agreement regarding both 
 12.25  current support and arrearages pursuant to section 518.553 that 
 12.26  is approved by the court, a child support magistrate, or the 
 12.27  public authority, the court shall direct the licensing board or 
 12.28  other licensing agency to suspend the license under section 
 12.29  214.101.  The court's order must be stayed for 90 days in order 
 12.30  to allow the obligor to execute a written payment 
 12.31  agreement regarding both current support and arrearages pursuant 
 12.32  to section 518.553.  The payment agreement must be approved by 
 12.33  either the court or the public authority responsible for child 
 12.34  support enforcement.  If the obligor has not executed or is not 
 12.35  in compliance with a written payment agreement regarding both 
 12.36  current support and arrearages pursuant to section 518.553 after 
 13.1   the 90 days expires, the court's order becomes effective.  If 
 13.2   the obligor is a licensed attorney, the court shall report the 
 13.3   matter to the lawyers professional responsibility board for 
 13.4   appropriate action in accordance with the rules of professional 
 13.5   conduct.  The remedy under this subdivision is in addition to 
 13.6   any other enforcement remedy available to the court. 
 13.7      (b) If a public authority responsible for child support 
 13.8   enforcement finds that the obligor is or may be licensed by a 
 13.9   licensing board listed in section 214.01 or other state, county, 
 13.10  or municipal agency or board that issues an occupational license 
 13.11  and the obligor is in arrears in court-ordered child support or 
 13.12  maintenance payments or both in an amount equal to or greater 
 13.13  than three times the obligor's total monthly support and 
 13.14  maintenance payments and is not in compliance with a written 
 13.15  payment agreement regarding both current support and arrearages 
 13.16  pursuant to section 518.553 that is approved by the court, a 
 13.17  child support magistrate, or the public authority, the court or 
 13.18  the public authority shall direct the licensing board or other 
 13.19  licensing agency to suspend the license under section 214.101.  
 13.20  If the obligor is a licensed attorney, the public authority may 
 13.21  report the matter to the lawyers professional responsibility 
 13.22  board for appropriate action in accordance with the rules of 
 13.23  professional conduct.  The remedy under this subdivision is in 
 13.24  addition to any other enforcement remedy available to the public 
 13.25  authority. 
 13.26     (c) At least 90 days before notifying a licensing authority 
 13.27  or the lawyers professional responsibility board under paragraph 
 13.28  (b), the public authority shall mail a written notice to the 
 13.29  license holder addressed to the license holder's last known 
 13.30  address that the public authority intends to seek license 
 13.31  suspension under this subdivision and that the license holder 
 13.32  must request a hearing within 30 days in order to contest the 
 13.33  suspension.  If the license holder makes a written request for a 
 13.34  hearing within 30 days of the date of the notice, a court 
 13.35  hearing or a hearing under section 484.702 must be held.  
 13.36  Notwithstanding any law to the contrary, the license holder must 
 14.1   be served with 14 days' notice in writing specifying the time 
 14.2   and place of the hearing and the allegations against the license 
 14.3   holder.  The notice may be served personally or by mail.  If the 
 14.4   public authority does not receive a request for a hearing within 
 14.5   30 days of the date of the notice, and the obligor does not 
 14.6   execute a written payment agreement regarding both current 
 14.7   support and arrearages pursuant to section 518.553 that is 
 14.8   approved by the public authority within 90 days of the date of 
 14.9   the notice, the public authority shall direct the licensing 
 14.10  board or other licensing agency to suspend the obligor's license 
 14.11  under paragraph (b), or shall report the matter to the lawyers 
 14.12  professional responsibility board. 
 14.13     (d) The public authority or the court shall notify the 
 14.14  lawyers professional responsibility board for appropriate action 
 14.15  in accordance with the rules of professional responsibility 
 14.16  conduct or order the licensing board or licensing agency to 
 14.17  suspend the license if the judge finds that: 
 14.18     (1) the person is licensed by a licensing board or other 
 14.19  state agency that issues an occupational license; 
 14.20     (2) the person has not made full payment of arrearages 
 14.21  found to be due by the public authority; and 
 14.22     (3) the person has not executed or is not in compliance 
 14.23  with a payment plan approved by the court, a child support 
 14.24  magistrate, or the public authority. 
 14.25     (e) Within 15 days of the date on which the obligor either 
 14.26  makes full payment of arrearages found to be due by the court or 
 14.27  public authority or executes and initiates good faith compliance 
 14.28  with a written payment plan approved by the court, a child 
 14.29  support magistrate, or the public authority, the court, a child 
 14.30  support magistrate, or the public authority responsible for 
 14.31  child support enforcement shall notify the licensing board or 
 14.32  licensing agency or the lawyers professional responsibility 
 14.33  board that the obligor is no longer ineligible for license 
 14.34  issuance, reinstatement, or renewal under this subdivision. 
 14.35     (f) In addition to the criteria established under this 
 14.36  section for the suspension of an obligor's occupational license, 
 15.1   a court, a child support magistrate, or the public authority may 
 15.2   direct the licensing board or other licensing agency to suspend 
 15.3   the license of a party who has failed, after receiving notice, 
 15.4   to comply with a subpoena relating to a paternity or child 
 15.5   support proceeding.  Notice to an obligor of intent to suspend 
 15.6   must be served by first class mail at the obligor's last known 
 15.7   address.  The notice must inform the obligor of the right to 
 15.8   request a hearing.  If the obligor makes a written request 
 15.9   within ten days of the date of the hearing, a hearing must be 
 15.10  held.  At the hearing, the only issues to be considered are 
 15.11  mistake of fact and whether the obligor received the subpoena. 
 15.12     (g) The license of an obligor who fails to remain in 
 15.13  compliance with an approved payment agreement may be suspended.  
 15.14  Notice to the obligor of an intent to suspend under this 
 15.15  paragraph must be served by first class mail at the obligor's 
 15.16  last known address and must include a notice of hearing.  The 
 15.17  notice must be served upon the obligor not less than ten days 
 15.18  before the date of the hearing.  If the obligor appears at the 
 15.19  hearing and the judge determines that the obligor has failed to 
 15.20  comply with an approved payment agreement, the judge shall 
 15.21  notify the occupational licensing board or agency to suspend the 
 15.22  obligor's license under paragraph (c).  If the obligor fails to 
 15.23  appear at the hearing, the public authority may notify the 
 15.24  occupational or licensing board to suspend the obligor's license 
 15.25  under paragraph (c). 
 15.26     Sec. 14.  Minnesota Statutes 2000, section 518.551, 
 15.27  subdivision 13, is amended to read: 
 15.28     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
 15.29  of an obligee, which has been properly served on the obligor and 
 15.30  upon which there has been an opportunity for hearing, if a court 
 15.31  finds that the obligor has been or may be issued a driver's 
 15.32  license by the commissioner of public safety and the obligor is 
 15.33  in arrears in court-ordered child support or maintenance 
 15.34  payments, or both, in an amount equal to or greater than three 
 15.35  times the obligor's total monthly support and maintenance 
 15.36  payments and is not in compliance with a written payment 
 16.1   agreement regarding both current support and arrearages pursuant 
 16.2   to section 518.553 that is approved by the court, a child 
 16.3   support magistrate, or the public authority, the court shall 
 16.4   order the commissioner of public safety to suspend the obligor's 
 16.5   driver's license.  The court's order must be stayed for 90 days 
 16.6   in order to allow the obligor to execute a written payment 
 16.7   agreement regarding both current support and arrearages, 
 16.8   which pursuant to section 518.553.  The payment agreement must 
 16.9   be approved by either the court or the public authority 
 16.10  responsible for child support enforcement.  If the obligor has 
 16.11  not executed or is not in compliance with a written payment 
 16.12  agreement regarding both current support and arrearages pursuant 
 16.13  to section 518.553 after the 90 days expires, the court's order 
 16.14  becomes effective and the commissioner of public safety shall 
 16.15  suspend the obligor's driver's license.  The remedy under this 
 16.16  subdivision is in addition to any other enforcement remedy 
 16.17  available to the court.  An obligee may not bring a motion under 
 16.18  this paragraph within 12 months of a denial of a previous motion 
 16.19  under this paragraph. 
 16.20     (b) If a public authority responsible for child support 
 16.21  enforcement determines that the obligor has been or may be 
 16.22  issued a driver's license by the commissioner of public safety 
 16.23  and the obligor is in arrears in court-ordered child support or 
 16.24  maintenance payments or both in an amount equal to or greater 
 16.25  than three times the obligor's total monthly support and 
 16.26  maintenance payments and not in compliance with a written 
 16.27  payment agreement regarding both current support and arrearages 
 16.28  pursuant to section 518.553 that is approved by the court, a 
 16.29  child support magistrate, or the public authority, the public 
 16.30  authority shall direct the commissioner of public safety to 
 16.31  suspend the obligor's driver's license.  The remedy under this 
 16.32  subdivision is in addition to any other enforcement remedy 
 16.33  available to the public authority. 
 16.34     (c) At least 90 days prior to notifying the commissioner of 
 16.35  public safety according to paragraph (b), the public authority 
 16.36  must mail a written notice to the obligor at the obligor's last 
 17.1   known address, that it intends to seek suspension of the 
 17.2   obligor's driver's license and that the obligor must request a 
 17.3   hearing within 30 days in order to contest the suspension.  If 
 17.4   the obligor makes a written request for a hearing within 30 days 
 17.5   of the date of the notice, a court hearing must be held.  
 17.6   Notwithstanding any law to the contrary, the obligor must be 
 17.7   served with 14 days' notice in writing specifying the time and 
 17.8   place of the hearing and the allegations against the 
 17.9   obligor.  The notice must include information that apprises the 
 17.10  obligor of the requirement to develop a written payment 
 17.11  agreement that is approved by a court, a child support 
 17.12  magistrate, or the public authority responsible for child 
 17.13  support enforcement regarding child support, maintenance, and 
 17.14  any arrearages in order to avoid license suspension.  The notice 
 17.15  may be served personally or by mail.  If the public authority 
 17.16  does not receive a request for a hearing within 30 days of the 
 17.17  date of the notice, and the obligor does not execute a written 
 17.18  payment agreement regarding both current support and 
 17.19  arrearages pursuant to section 518.553 that is approved by the 
 17.20  public authority within 90 days of the date of the notice, the 
 17.21  public authority shall direct the commissioner of public safety 
 17.22  to suspend the obligor's driver's license under paragraph (b). 
 17.23     (d) At a hearing requested by the obligor under paragraph 
 17.24  (c), and on finding that the obligor is in arrears in 
 17.25  court-ordered child support or maintenance payments or both in 
 17.26  an amount equal to or greater than three times the obligor's 
 17.27  total monthly support and maintenance payments, the district 
 17.28  court or child support magistrate shall order the commissioner 
 17.29  of public safety to suspend the obligor's driver's license or 
 17.30  operating privileges unless the court or child support 
 17.31  magistrate determines that the obligor has executed and is in 
 17.32  compliance with a written payment agreement regarding both 
 17.33  current support and arrearages pursuant to section 518.553 that 
 17.34  is approved by the court, a child support magistrate, or the 
 17.35  public authority. 
 17.36     (e) An obligor whose driver's license or operating 
 18.1   privileges are suspended may: 
 18.2      (1) provide proof to the public authority responsible for 
 18.3   child support enforcement that the obligor is in compliance with 
 18.4   all written payment agreements regarding both current support 
 18.5   and arrearages. pursuant to section 518.553; 
 18.6      (2) bring a motion for reinstatement of the driver's 
 18.7   license.  At the hearing, if the court or child support 
 18.8   magistrate orders reinstatement of the driver's license, the 
 18.9   court or child support magistrate must establish a written 
 18.10  payment agreement pursuant to section 518.553; or 
 18.11     (3) seek a limited license under section 171.30.  A limited 
 18.12  license issued to an obligor under section 171.30 expires 90 
 18.13  days after the date it is issued.  
 18.14     Within 15 days of the receipt of that proof or a court 
 18.15  order, the public authority shall inform the commissioner of 
 18.16  public safety that the obligor's driver's license or operating 
 18.17  privileges should no longer be suspended. 
 18.18     (f) On January 15, 1997, and every two years after that, 
 18.19  the commissioner of human services shall submit a report to the 
 18.20  legislature that identifies the following information relevant 
 18.21  to the implementation of this section: 
 18.22     (1) the number of child support obligors notified of an 
 18.23  intent to suspend a driver's license; 
 18.24     (2) the amount collected in payments from the child support 
 18.25  obligors notified of an intent to suspend a driver's license; 
 18.26     (3) the number of cases paid in full and payment agreements 
 18.27  executed in response to notification of an intent to suspend a 
 18.28  driver's license; 
 18.29     (4) the number of cases in which there has been 
 18.30  notification and no payments or payment agreements; 
 18.31     (5) the number of driver's licenses suspended; and 
 18.32     (6) the cost of implementation and operation of the 
 18.33  requirements of this section; and 
 18.34     (7) the number of limited licenses issued and number of 
 18.35  cases in which payment agreements are executed and cases are 
 18.36  paid in full following issuance of a limited license. 
 19.1      (g) In addition to the criteria established under this 
 19.2   section for the suspension of an obligor's driver's license, a 
 19.3   court, a child support magistrate, or the public authority may 
 19.4   direct the commissioner of public safety to suspend the license 
 19.5   of a party who has failed, after receiving notice, to comply 
 19.6   with a subpoena relating to a paternity or child support 
 19.7   proceeding.  Notice to an obligor of intent to suspend must be 
 19.8   served by first class mail at the obligor's last known address.  
 19.9   The notice must inform the obligor of the right to request a 
 19.10  hearing.  If the obligor makes a written request within ten days 
 19.11  of the date of the hearing, a hearing must be held.  At the 
 19.12  hearing, the only issues to be considered are mistake of fact 
 19.13  and whether the obligor received the subpoena. 
 19.14     (h) The license of an obligor who fails to remain in 
 19.15  compliance with an approved payment agreement may be suspended.  
 19.16  Notice to the obligor of an intent to suspend under this 
 19.17  paragraph must be served by first class mail at the obligor's 
 19.18  last known address and must include a notice of hearing.  The 
 19.19  notice must be served upon the obligor not less than ten days 
 19.20  before the date of the hearing.  If the obligor appears at the 
 19.21  hearing and the judge determines that the obligor has failed to 
 19.22  comply with an approved payment agreement, the judge shall 
 19.23  notify the department of public safety to suspend the obligor's 
 19.24  license under paragraph (c).  If the obligor fails to appear at 
 19.25  the hearing, the public authority may notify the department of 
 19.26  public safety to suspend the obligor's license under paragraph 
 19.27  (c). 
 19.28     Sec. 15.  Minnesota Statutes 2000, section 518.551, 
 19.29  subdivision 14, is amended to read: 
 19.30     Subd. 14.  [MOTOR VEHICLE LIEN.] (a) Upon motion of an 
 19.31  obligee, if a court finds that the obligor is a debtor for a 
 19.32  judgment debt resulting from nonpayment of court-ordered child 
 19.33  support or maintenance payments, or both, in an amount equal to 
 19.34  or greater than three times the obligor's total monthly support 
 19.35  and maintenance payments, the court shall order the commissioner 
 19.36  of public safety to enter a lien in the name of the obligee or 
 20.1   in the name of the state of Minnesota, as appropriate, in 
 20.2   accordance with section 168A.05, subdivision 8, unless the court 
 20.3   finds that the obligor is in compliance with a written payment 
 20.4   agreement regarding both current support and arrearages pursuant 
 20.5   to section 518.553 that is approved by the court, a child 
 20.6   support magistrate, or the public authority.  The court's order 
 20.7   must be stayed for 90 days in order to allow the obligor to 
 20.8   execute a written payment agreement regarding both current 
 20.9   support and arrearages pursuant to section 518.553, 
 20.10  which agreement shall be approved by either the court or the 
 20.11  public authority responsible for child support enforcement.  If 
 20.12  the obligor has not executed or is not in compliance with a 
 20.13  written payment agreement regarding both current support and 
 20.14  arrearages pursuant to section 518.553 that is approved by the 
 20.15  court, a child support magistrate, or the public authority 
 20.16  within the 90-day period, the court's order becomes effective 
 20.17  and the commissioner of public safety shall record the lien on 
 20.18  any motor vehicle certificate of title subsequently issued in 
 20.19  the name of the obligor.  The remedy under this subdivision is 
 20.20  in addition to any other enforcement remedy available to the 
 20.21  court. 
 20.22     (b) If a public authority responsible for child support 
 20.23  enforcement determines that the obligor is a debtor for judgment 
 20.24  debt resulting from nonpayment of court-ordered child support or 
 20.25  maintenance payments, or both, in an amount equal to or greater 
 20.26  than three times the obligor's total monthly support and 
 20.27  maintenance payments, the public authority shall direct the 
 20.28  commissioner of public safety to enter a lien in the name of the 
 20.29  obligee or in the name of the state of Minnesota, as 
 20.30  appropriate, under section 168A.05, subdivision 8, on any motor 
 20.31  vehicle certificate of title subsequently issued in the name of 
 20.32  the obligor unless the public authority determines that the 
 20.33  obligor is in compliance with a written payment agreement 
 20.34  regarding both current support and arrearages pursuant to 
 20.35  section 518.553 that is approved by the court, a child support 
 20.36  magistrate, or the public authority.  The remedy under this 
 21.1   subdivision is in addition to any other enforcement remedy 
 21.2   available to the public agency. 
 21.3      (c) At least 90 days prior to notifying the commissioner of 
 21.4   public safety pursuant to paragraph (b), the public authority 
 21.5   must mail a written notice to the obligor at the obligor's last 
 21.6   known address, that it intends to record a lien on any motor 
 21.7   vehicle certificate of title subsequently issued in the name of 
 21.8   the obligor and that the obligor must request a hearing within 
 21.9   30 days in order to contest the action.  If the obligor makes a 
 21.10  written request for a hearing within 30 days of the date of the 
 21.11  notice, a court hearing must be held.  Notwithstanding any law 
 21.12  to the contrary, the obligor must be served with 14 days' notice 
 21.13  in writing specifying the time and place of the hearing and the 
 21.14  allegations against the obligor.  The notice may be served 
 21.15  personally or by mail.  If the public authority does not receive 
 21.16  a request for a hearing within 30 days of the date of the notice 
 21.17  and the obligor does not execute or is not in compliance with a 
 21.18  written payment agreement regarding both current support and 
 21.19  arrearages pursuant to section 518.553 that is approved by the 
 21.20  public authority within 90 days of the date of the notice, the 
 21.21  public authority shall direct the commissioner of public safety 
 21.22  to record the lien under paragraph (b). 
 21.23     (d) At a hearing requested by the obligor under paragraph 
 21.24  (c), and on finding that the obligor is in arrears in 
 21.25  court-ordered child support or maintenance payments or both in 
 21.26  an amount equal to or greater than three times the obligor's 
 21.27  total monthly support and maintenance payments, the district 
 21.28  court or child support magistrate shall order the commissioner 
 21.29  of public safety to record the lien unless the court or child 
 21.30  support magistrate determines that the obligor has executed and 
 21.31  is in compliance with a written payment agreement regarding both 
 21.32  current support and arrearages pursuant to section 518.553 that 
 21.33  is determined to be acceptable by the court, a child support 
 21.34  magistrate, or the public authority. 
 21.35     (e) An obligor may provide proof to the court or the public 
 21.36  authority responsible for child support enforcement that the 
 22.1   obligor is in compliance with all written payment agreements 
 22.2   regarding both current support and arrearages pursuant to 
 22.3   section 518.553 or that the value of the motor vehicle is less 
 22.4   than the exemption provided under section 550.37.  Within 15 
 22.5   days of the receipt of that proof, the court or public authority 
 22.6   shall either execute a release of security interest under 
 22.7   section 168A.20, subdivision 4, and mail or deliver the release 
 22.8   to the owner or other authorized person or shall direct the 
 22.9   commissioner of public safety not to enter a lien on any motor 
 22.10  vehicle certificate of title subsequently issued in the name of 
 22.11  the obligor in instances where a lien has not yet been entered.  
 22.12     (f) Any lien recorded against a motor vehicle certificate 
 22.13  of title under this section and section 168A.05, subdivision 8, 
 22.14  attaches only to the nonexempt value of the motor vehicle as 
 22.15  determined in accordance with section 550.37.  The value of a 
 22.16  motor vehicle must be determined in accordance with the retail 
 22.17  value described in the N.A.D.A. Official Used Car Guide, Midwest 
 22.18  Edition, for the current year, or in accordance with the 
 22.19  purchase price as defined in section 297B.01, subdivision 8. 
 22.20     Sec. 16.  Minnesota Statutes 2000, section 518.551, 
 22.21  subdivision 15, is amended to read: 
 22.22     Subd. 15.  [LICENSE SUSPENSION.] (a) Upon motion of an 
 22.23  obligee or the public authority, which has been properly served 
 22.24  on the obligor by first class mail at the last known address or 
 22.25  in person, and if at a hearing, the court finds that (1) the 
 22.26  obligor is in arrears in court-ordered child support or 
 22.27  maintenance payments, or both, in an amount equal to or greater 
 22.28  than six times the obligor's total monthly support and 
 22.29  maintenance payments and is not in compliance with a written 
 22.30  payment agreement regarding both current support and 
 22.31  arrearages pursuant to section 518.553, or (2) has failed, after 
 22.32  receiving notice, to comply with a subpoena relating to a 
 22.33  paternity or child support proceeding, the court may direct the 
 22.34  commissioner of natural resources to suspend or bar receipt of 
 22.35  the obligor's recreational license or licenses.  Prior to 
 22.36  utilizing this subdivision, the court must find that other 
 23.1   substantial enforcement mechanisms have been attempted but have 
 23.2   not resulted in compliance. 
 23.3      (b) For purposes of this subdivision, a recreational 
 23.4   license includes all licenses, permits, and stamps issued 
 23.5   centrally by the commissioner of natural resources under 
 23.6   sections 97B.301, 97B.401, 97B.501, 97B.515, 97B.601, 97B.715, 
 23.7   97B.721, 97B.801, 97C.301, and 97C.305. 
 23.8      (c) An obligor whose recreational license or licenses have 
 23.9   been suspended or barred may provide proof to the court that the 
 23.10  obligor is in compliance with all written payment agreements 
 23.11  regarding both current support and arrearages pursuant to 
 23.12  section 518.553.  Within 15 days of receipt of that proof, the 
 23.13  court shall notify the commissioner of natural resources that 
 23.14  the obligor's recreational license or licenses should no longer 
 23.15  be suspended nor should receipt be barred. 
 23.16     Sec. 17.  Minnesota Statutes 2000, section 518.553, is 
 23.17  amended to read: 
 23.18     518.553 [PAYMENT AGREEMENTS.] 
 23.19     In proposing or approving proposed written payment 
 23.20  agreements for purposes of section 518.551, the court, a child 
 23.21  support magistrate, or the public authority shall take into 
 23.22  consideration the amount of the arrearages, the amount of the 
 23.23  current support order, any pending request for modification, and 
 23.24  the earnings of the obligor.  The court, child support 
 23.25  magistrate, or public authority shall consider the individual 
 23.26  financial circumstances of each obligor in evaluating the 
 23.27  obligor's ability to pay any proposed payment agreement and 
 23.28  shall propose a reasonable payment agreement tailored to the 
 23.29  individual financial circumstances of each obligor.  The court, 
 23.30  child support magistrate, or public authority also shall 
 23.31  consider a graduated payment plan tailored to the individual 
 23.32  financial circumstances of each obligor. 
 23.33     Sec. 18.  Minnesota Statutes 2000, section 518.6111, 
 23.34  subdivision 8, is amended to read: 
 23.35     Subd. 8.  [CONTEST.] (a) The obligor may contest 
 23.36  withholding under subdivision 7 on the limited grounds that the 
 24.1   withholding or the amount withheld is improper due to mistake of 
 24.2   fact.  If the obligor chooses to contest the withholding, the 
 24.3   obligor must do so no later than 15 days after the employer 
 24.4   commences withholding, by doing all of the following: 
 24.5      (1) file a request for an expedited child support hearing 
 24.6   under section 484.702, and include in the request the alleged 
 24.7   mistake of fact; 
 24.8      (2) serve a copy of the request for contested hearing upon 
 24.9   the public authority and the obligee; and 
 24.10     (3) secure a date for the contested hearing no later than 
 24.11  45 days after receiving notice that withholding has 
 24.12  commenced upon proper motion pursuant to section 484.702 and the 
 24.13  rules of the expedited child support process. 
 24.14     (b) The income withholding must remain in place while the 
 24.15  obligor contests the withholding. 
 24.16     (c) If the court finds a mistake in the amount of the 
 24.17  arrearage to be withheld, the court shall continue the income 
 24.18  withholding, but it shall correct the amount of the arrearage to 
 24.19  be withheld. 
 24.20     Sec. 19.  Minnesota Statutes 2000, section 518.614, 
 24.21  subdivision 3, is amended to read: 
 24.22     Subd. 3.  [DUTIES OF PUBLIC AUTHORITY.] Within three 
 24.23  working days of receipt of sums released under subdivision 2, 
 24.24  the public authority shall remit to the obligee all amounts not 
 24.25  assigned under section 256.741 as current support or 
 24.26  maintenance.  The public authority shall also serve a copy of 
 24.27  the court's order and the provisions of section 518.6111 and 
 24.28  this section on the obligor's employer or other payor of funds 
 24.29  unless within 15 days after mailing of the notice of intent to 
 24.30  implement income withholding the obligor requests a hearing on 
 24.31  the issue of whether payment was in default as of the date of 
 24.32  the notice of default and serves notice of the request for 
 24.33  hearing on the public authority and the obligee makes a proper 
 24.34  motion pursuant to section 484.702 and the rules of the 
 24.35  expedited child support process.  The public authority shall 
 24.36  instruct the employer or payor of funds pursuant to section 
 25.1   518.6111 as to the effective date on which the next support or 
 25.2   maintenance payment is due.  The withholding process must begin 
 25.3   on said date and shall reflect the total credits of principal 
 25.4   and interest amounts received from the escrow account. 
 25.5      Sec. 20.  Minnesota Statutes 2000, section 518.614, 
 25.6   subdivision 4, is amended to read: 
 25.7      Subd. 4.  [HEARING.] Within 30 days of the date of the 
 25.8   notice of default under subdivision 2, clause (2), the court 
 25.9   must hold a hearing requested if a motion is brought by the 
 25.10  obligor as set forth in subdivision 2.  If the court finds that 
 25.11  there was a default, the court shall order the immediate 
 25.12  withholding of support or maintenance from the obligor's 
 25.13  income.  If the court finds that there was no default, the court 
 25.14  shall order the reestablishment of the escrow account by either 
 25.15  the obligee or obligor and continue the stay of income 
 25.16  withholding.  
 25.17     Sec. 21.  Minnesota Statutes 2000, section 518.617, 
 25.18  subdivision 2, is amended to read: 
 25.19     Subd. 2.  [COURT OPTIONS.] (a) If a court cites a person 
 25.20  for contempt under this section, and the obligor lives in a 
 25.21  county that contracts with the commissioner of human services 
 25.22  under section 256.997, the court may order the performance of 
 25.23  community service work up to 32 hours per week for six weeks for 
 25.24  each finding of contempt if the obligor:  
 25.25     (1) is able to work full time; 
 25.26     (2) works an average of less than 32 hours per week; and 
 25.27     (3) has actual weekly gross income averaging less than 40 
 25.28  times the federal minimum hourly wage under United States Code, 
 25.29  title 29, section 206(a)(1), or is voluntarily earning less than 
 25.30  the obligor has the ability to earn, as determined by the court. 
 25.31     An obligor is presumed to be able to work full time.  The 
 25.32  obligor has the burden of proving inability to work full time.  
 25.33     (b) A person ordered to do community service work under 
 25.34  paragraph (a) may, during the six-week period, apply to the 
 25.35  court, an administrative law judge a child support magistrate, 
 25.36  or the public authority to be released from the community 
 26.1   service work requirement if the person: 
 26.2      (1) provides proof to the court, an administrative law 
 26.3   judge a child support magistrate, or the public authority that 
 26.4   the person is gainfully employed and submits to an order for 
 26.5   income withholding under section 518.6111; 
 26.6      (2) enters into a written payment plan regarding both 
 26.7   current support and arrearages approved by the court, an 
 26.8   administrative law judge a child support magistrate, or the 
 26.9   public authority; or 
 26.10     (3) provides proof to the court, an administrative law 
 26.11  judge a child support magistrate, or the public authority that, 
 26.12  subsequent to entry of the order, the person's circumstances 
 26.13  have so changed that the person is no longer able to fulfill the 
 26.14  terms of the community service order. 
 26.15     Sec. 22.  Minnesota Statutes 2001 Supplement, section 
 26.16  518.6196, is amended to read: 
 26.17     518.6196 [COLLECTION; REVENUE RECAPTURE.] 
 26.18     The public authority may submit debt under chapter 270A 
 26.19  only if the obligor is in arrears in court-ordered child support 
 26.20  or maintenance payments, or both, in an amount greater than the 
 26.21  obligor's total monthly support and maintenance payments or if 
 26.22  the debt has been entered and docketed as a judgment under 
 26.23  section 548.091, subdivision 2a. 
 26.24     Sec. 23.  Minnesota Statutes 2000, section 548.091, 
 26.25  subdivision 1, is amended to read: 
 26.26     Subdivision 1.  [ENTRY AND DOCKETING OF MAINTENANCE 
 26.27  JUDGMENT.] (a) A judgment for unpaid amounts under a judgment or 
 26.28  decree of dissolution or legal separation that provides for 
 26.29  installment or periodic payments of maintenance shall be entered 
 26.30  by the court administrator when ordered by the court or shall be 
 26.31  entered and docketed by the court administrator when the 
 26.32  following conditions are met:  
 26.33     (1) the obligee determines that the obligor is at least 30 
 26.34  days in arrears; 
 26.35     (2) the obligee serves a copy of an affidavit of default 
 26.36  and notice of intent to enter and docket judgment on the obligor 
 27.1   by first class mail at the obligor's last known post office 
 27.2   address.  Service shall be deemed complete upon mailing in the 
 27.3   manner designated.  The affidavit shall state the full name, 
 27.4   occupation, place of residence, and last known post office 
 27.5   address of the obligor, the name and post office address of the 
 27.6   obligee, the date of the first unpaid amount, the date of the 
 27.7   last unpaid amount, and the total amount unpaid; 
 27.8      (3) the obligor fails within 20 days after mailing of the 
 27.9   notice either to pay all unpaid amounts or to request a hearing 
 27.10  on the issue of whether arrears claimed owing have been paid and 
 27.11  to seek, ex parte, a stay of entry of judgment; and 
 27.12     (4) not less than 20 days after service on the obligor in 
 27.13  the manner provided, the obligee files with the court 
 27.14  administrator the affidavit of default together with proof of 
 27.15  service and, if payments have been received by the obligee since 
 27.16  execution of the affidavit of default, a supplemental affidavit 
 27.17  setting forth the amount of payment received and the amount for 
 27.18  which judgment is to be entered and docketed. 
 27.19     (b) A judgment entered and docketed under this subdivision 
 27.20  has the same effect and is subject to the same procedures, 
 27.21  defenses, and proceedings as any other judgment in district 
 27.22  court, and may be enforced or satisfied in the same manner as 
 27.23  judgments under section 548.09. 
 27.24     (c) An obligor whose property is subject to the lien of a 
 27.25  judgment for installment of periodic payments of maintenance 
 27.26  under section 548.09, and who claims that no amount of 
 27.27  maintenance is in arrears, may move the court ex parte for an 
 27.28  order directing the court administrator to vacate the lien of 
 27.29  the judgment on the docket and register of the action where it 
 27.30  was entered.  The obligor shall file with the motion an 
 27.31  affidavit stating: 
 27.32     (1) the lien attached upon the docketing of a judgment or 
 27.33  decree of dissolution or separate maintenance; 
 27.34     (2) the docket was made while no installment or periodic 
 27.35  payment of maintenance was unpaid or overdue; and 
 27.36     (3) no installment or periodic payment of maintenance that 
 28.1   was due prior to the filing of the motion remains unpaid or 
 28.2   overdue. 
 28.3      The court shall grant the obligor's motion as soon as 
 28.4   possible if the pleadings and affidavit show that there is and 
 28.5   has been no default.  
 28.6      Sec. 24.  Minnesota Statutes 2001 Supplement, section 
 28.7   548.091, subdivision 1a, is amended to read: 
 28.8      Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
 28.9   (a) Any payment or installment of support required by a judgment 
 28.10  or decree of dissolution or legal separation, determination of 
 28.11  parentage, an order under chapter 518C, an order under section 
 28.12  256.87, or an order under section 260B.331 or 260C.331, that is 
 28.13  not paid or withheld from the obligor's income as required under 
 28.14  section 518.6111, or which is ordered as child support by 
 28.15  judgment, decree, or order by a court in any other state, is a 
 28.16  judgment by operation of law on and after the date it is due, is 
 28.17  entitled to full faith and credit in this state and any other 
 28.18  state, and shall be entered and docketed by the court 
 28.19  administrator on the filing of affidavits as provided in 
 28.20  subdivision 2a.  Except as otherwise provided by paragraph (b), 
 28.21  interest accrues from the date the unpaid amount due is greater 
 28.22  than the current support due at the annual rate provided in 
 28.23  section 549.09, subdivision 1, plus two percent, not to exceed 
 28.24  an annual rate of 18 percent.  A payment or installment of 
 28.25  support that becomes a judgment by operation of law between the 
 28.26  date on which a party served notice of a motion for modification 
 28.27  under section 518.64, subdivision 2, and the date of the court's 
 28.28  order on modification may be modified under that subdivision. 
 28.29     (b) Notwithstanding the provisions of section 549.09, upon 
 28.30  motion to the court and upon proof by the obligor of 36 
 28.31  consecutive months of complete and timely payments of both 
 28.32  current support and court-ordered paybacks of a child support 
 28.33  debt or arrearage, the court may order interest on the remaining 
 28.34  debt or arrearage to stop accruing.  Timely payments are those 
 28.35  made in the month in which they are due.  If, after that time, 
 28.36  the obligor fails to make complete and timely payments of both 
 29.1   current support and court-ordered paybacks of child support debt 
 29.2   or arrearage, the public authority or the obligee may move the 
 29.3   court for the reinstatement of interest as of the month in which 
 29.4   the obligor ceased making complete and timely payments. 
 29.5      The court shall provide copies of all orders issued under 
 29.6   this section to the public authority.  The commissioner of human 
 29.7   services state court administrator shall prepare and make 
 29.8   available to the court and the parties forms to be submitted by 
 29.9   the parties in support of a motion under this paragraph. 
 29.10     (c) Notwithstanding the provisions of section 549.09, upon 
 29.11  motion to the court, the court may order interest on a child 
 29.12  support debt to stop accruing where the court finds that the 
 29.13  obligor is: 
 29.14     (1) unable to pay support because of a significant physical 
 29.15  or mental disability; 
 29.16     (2) a recipient of Supplemental Security Income (SSI), 
 29.17  Title II Older Americans Survivor's Disability Insurance 
 29.18  (OASDI), other disability benefits, or public assistance based 
 29.19  upon need; or 
 29.20     (3) institutionalized or incarcerated for at least 30 days 
 29.21  for an offense other than nonsupport of the child or children 
 29.22  involved, and is otherwise financially unable to pay support. 
 29.23     Sec. 25.  Minnesota Statutes 2000, section 548.091, 
 29.24  subdivision 2a, is amended to read: 
 29.25     Subd. 2a.  [ENTRY AND DOCKETING OF CHILD SUPPORT JUDGMENT.] 
 29.26  (a) On or after the date an unpaid amount becomes a judgment by 
 29.27  operation of law under subdivision 1a, the obligee or the public 
 29.28  authority may file with the court administrator: 
 29.29     (1) a statement identifying, or a copy of, the judgment or 
 29.30  decree of dissolution or legal separation, determination of 
 29.31  parentage, order under chapter 518B or 518C, an order under 
 29.32  section 256.87, an order under section 260B.331 or 260C.331, or 
 29.33  judgment, decree, or order for child support by a court in any 
 29.34  other state, which provides for periodic installments of child 
 29.35  support, or a judgment or notice of attorney fees and collection 
 29.36  costs under section 518.14, subdivision 2; 
 30.1      (2) an affidavit of default.  The affidavit of default must 
 30.2   state the full name, occupation, place of residence, and last 
 30.3   known post office address of the obligor, the name and post 
 30.4   office address of the obligee, the date or dates payment was due 
 30.5   and not received and judgment was obtained by operation of law, 
 30.6   the total amount of the judgments to be entered and docketed; 
 30.7   and 
 30.8      (3) an affidavit of service of a notice of intent to enter 
 30.9   and docket judgment and to recover attorney fees and collection 
 30.10  costs on the obligor, in person or by first class mail at the 
 30.11  obligor's last known post office address.  Service is completed 
 30.12  upon mailing in the manner designated.  Where applicable, a 
 30.13  notice of interstate lien in the form promulgated under United 
 30.14  States Code, title 42, section 652(a), is sufficient to satisfy 
 30.15  the requirements of clauses (1) and (2). 
 30.16     (b) A judgment entered and docketed under this subdivision 
 30.17  has the same effect and is subject to the same procedures, 
 30.18  defenses, and proceedings as any other judgment in district 
 30.19  court, and may be enforced or satisfied in the same manner as 
 30.20  judgments under section 548.09, except as otherwise provided. 
 30.21     Sec. 26.  Laws 2001, chapter 202, section 19, is amended to 
 30.22  read: 
 30.23     Sec. 19.  [NONCUSTODIAL PARENT PROGRAM.] 
 30.24     Notwithstanding Minnesota Statutes, section 13.46, until 
 30.25  August 1, 2002 2005, the public authority responsible for child 
 30.26  support enforcement and an agency administering the noncustodial 
 30.27  parent employment and support services program under contract 
 30.28  with the department of human services in Hennepin county may 
 30.29  exchange data on current and former program participants for 
 30.30  purposes of evaluating the program.  Any private agency 
 30.31  administering the program must agree to be bound by Minnesota 
 30.32  Statutes, chapter 13. 
 30.33     Sec. 27.  [APPROPRIATION.] 
 30.34     $95,000 is appropriated from the trunk highway fund to the 
 30.35  commissioner of public safety in fiscal year 2003 for costs 
 30.36  related to the issuance of limited licenses under Minnesota 
 31.1   Statutes, section 171.186, subdivision 4. 
 31.2      Sec. 28.  [EFFECTIVE DATE.] 
 31.3      Sections 8 to 12 are effective July 1, 2002.