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1988 Minnesota Session Laws

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 668-S.F.No. 2009 
           An act relating to family law; modifying and 
          clarifying provisions for the collection and 
          enforcement of child support; providing for 
          cost-of-living adjustments in spousal maintenance 
          awards; providing for grandparent visitation rights in 
          all family law proceedings; providing for reopening of 
          judgments; providing for custody rights; clarifying 
          and modifying provisions relating to pension plan 
          rights in marriage dissolutions; amending Minnesota 
          Statutes 1986, sections 69.62; 123.35, by adding a 
          subdivision; 256.978; 257.022, subdivision 2; 270A.03, 
          subdivision 4; 383B.51; 423A.16; 424A.02, subdivision 
          6; 490.126, by adding a subdivision; 518.145; 518.17, 
          subdivision 3; 518.171, by adding a subdivision; 
          518.175, by adding a subdivision; 518.551, subdivision 
          5, and by adding a subdivision; 518.552, by adding a 
          subdivision; 518.54, by adding a subdivision; 518.611, 
          subdivision 10; 518.64, subdivision 2; and 518.641; 
          Minnesota Statutes 1987 Supplement, sections 356.80; 
          518.54, subdivision 10; 518.58, subdivision 2; 
          518.581, subdivision 4; and 518.611, subdivision 2.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 69.62, is 
amended to read: 
    69.62 [PENSION PAYMENTS EXEMPT FROM PROCESS.] 
    No payment made or to be made by any fire department relief 
association in a city of the first class under the provisions of 
section sections 69.25 to 69.53 to any member of the pension 
roll shall be subject to judgment, garnishment, execution, or 
other legal process, except as provided in section 518.58, 
518.581, or 518.611; and.  No person entitled to this a 
payment from a fire department relief association shall have the 
right to assign the same, nor shall the association have the 
authority to recognize any assignment or pay over any sum which 
has been assigned. 
    Sec. 2.  Minnesota Statutes 1986, section 123.35, is amended 
by adding a subdivision to read: 
    Subd. 18.  [NONCUSTODIAL PARENT ACCESS TO RECORDS.] Upon 
request, a noncustodial parent has the right of access to, and 
to receive copies of, school records and information, to attend 
conferences, and to be informed about the child's welfare, 
educational progress, and status, as authorized under section 
518.17, subdivision 3.  The school is not required to hold a 
separate conference for each parent. 
    Sec. 3.  Minnesota Statutes 1986, section 256.978, is 
amended to read:  
    256.978 [LOCATION OF PARENTS DESERTING THEIR CHILDREN, 
ACCESS TO RECORDS.] 
    The commissioner of human services, in order to carry out 
the child support enforcement program and to assist in the 
location of parents who have, or appear to have, deserted their 
children, may request information from the records of all 
departments, boards, bureaus or other agencies of this state, 
which shall, notwithstanding the provisions of section 290.61, 
section 268.12, subdivision 12 or any other law to the contrary, 
provide the information necessary for this purpose.  Employers 
and utility companies doing business in this state shall provide 
information upon written request by an agency responsible for 
child support enforcement regarding individuals owing or 
allegedly owing a duty to support.  A request for this 
information may be made to an employer when there is reasonable 
cause to believe that the subject of the inquiry is or was 
employed by the employer where the request is made.  The request 
must include a statement that reasonable cause exists.  
Information to be released by utility companies is restricted to 
place of residence.  Information to be released by employers is 
restricted to place of residence, employment status and wage 
information.  Information relative to the identity, whereabouts, 
employment, income, and property of a person owing or alleged to 
be owing an obligation of support may be requested and used or 
transmitted by the commissioner pursuant to the authority 
conferred by this section.  The commissioner of human services 
may make such information available only to public officials and 
agencies of this state and its political subdivisions and other 
states of the union and their political subdivisions who are 
seeking to enforce the support liability of parents or to locate 
parents who have, or appear to have, deserted their children.  
Any person who, pursuant to this section, obtains information 
from the department of revenue the confidentiality of which is 
protected by law shall not divulge the information except to the 
extent necessary for the administration of the child support 
enforcement program or when otherwise authorized by law.  
    Sec. 4.  Minnesota Statutes 1986, section 257.022, 
subdivision 2, is amended to read:  
    Subd. 2.  [WHEN PARENTS' MARRIAGE IS DISSOLVED FAMILY COURT 
PROCEEDINGS.] In all proceedings for dissolution, custody, legal 
separation, annulment, or parentage subsequent to the 
commencement of the proceeding and continuing thereafter during 
the minority of the child, the court may, upon the request of 
the parent or grandparent of a party, grant reasonable 
visitation rights to the unmarried minor child, after 
dissolution of marriage, legal separation, annulment, or 
determination of parentage during minority if it finds that 
visitation rights would be in the best interests of the child 
and would not interfere with the parent child relationship.  The 
court shall consider the amount of personal contact between the 
parents or grandparents of the party and the child prior to the 
application. 
    Sec. 5.  Minnesota Statutes 1986, section 270A.03, 
subdivision 4, is amended to read:  
    Subd. 4.  "Debtor" means a natural person obligated on a 
debt to a claimant agency or having a delinquent account with a 
public agency responsible for child support enforcement.  
    Sec. 6.  Minnesota Statutes 1987 Supplement, section 
356.80, is amended to read:  
    356.80 [PROVISION OF INFORMATION IN THE EVENT OF MARRIAGE 
DISSOLUTION.] 
    Subdivision 1.  [INFORMATION FOR A PENDING MARRIAGE 
DISSOLUTION.] (a) Upon written request by a person with access 
to the data under subdivision 3 who cites this statute, a public 
or private pension plan administrator must provide the court and 
the parties to a marriage dissolution action involving a plan 
member or former plan member with information regarding pension 
benefits or rights of the plan member or former plan member.  
The pension plan shall provide this information upon request of 
the court or a party to the action without requiring a signed 
authorization from the plan member or former plan member. 
    (b) The information must include the pension benefits or 
rights of the plan member or former plan member as of the first 
day of the month following the date of the request, as of the 
first day of the seventh month following the date of the request 
if the action involves an active plan member, and as of the date 
of valuation of marital assets under section 518.58, if the 
person requesting the information specifies that date.  The 
information must also include the accrued service credit of the 
person, the credited salary of the person for the most current 
five-year period, a summary of the benefit plan, and any other 
information relevant to the calculation of the present value of 
the benefits or rights. 
    Subd. 2.  [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 
If a marriage dissolution decree rendered by a court of 
competent jurisdiction prior to August 1, 1987, provided a 
procedure for dividing pension benefits or rights in the form of 
the distribution of future pension plan payments, upon request 
the applicable pension plan administrator shall provide on a 
timely basis to the court and the parties to the action the 
required information to implement that procedure without 
requiring a signed authorization from the plan member or former 
plan member. 
    Subd. 3.  [ACCESS TO DATA.] Notwithstanding any provision 
of chapter 13 to the contrary, a responsible authority an 
administrator may release private or confidential data on 
individuals to the court, the parties to a marriage dissolution, 
their attorneys, and an actuary appointed under section 518.582, 
to the extent necessary to comply with this section. 
    Sec. 7.  Minnesota Statutes 1986, section 383B.51, is 
amended to read: 
    383B.51 [NO ASSIGNMENT OR GARNISHMENT.] 
    The right of a participant who has shares to the credit of 
the participant's share account record to redeem all or any 
portion of the shares is a personal right only and shall not be 
assignable.  Legal title to the assets of the Hennepin county 
supplemental retirement program shall be in the state of 
Minnesota or the state board of investment or the nominee of 
either, subject to the rights of the county of Hennepin.  Any 
assignment or attempted assignment of shares to the credit of a 
participant's share account record by any person is null and 
void.  The shares are exempt from garnishment or levy under 
attachment or execution and or other legal process, except as 
provided in section 518.58, 518.581, or 518.611.  The shares are 
also exempt from all taxation by the state of Minnesota. 
    Sec. 8.  Minnesota Statutes 1986, section 423A.16, is 
amended to read: 
    423A.16 [EXEMPTION FROM ASSIGNMENTS; PROCESS.] 
    Notwithstanding any law to the contrary, none of the 
moneys, annuities, or other benefits provided by any police or 
salaried firefighters' relief association shall be assignable in 
law or in equity, nor be subject to execution, levy, attachment, 
garnishment, or other legal process, except as provided in 
section 518.58, 518.581, or 518.611. 
    Sec. 9.  Minnesota Statutes 1986, section 424A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENT OF SERVICE PENSIONS; NONASSIGNABILITY.] 
The method of calculating service pensions shall be applied 
uniformly for all years of active service and credit shall be 
given for all years of active service, except as otherwise 
provided in this section.  No service pension shall be paid to 
any person while the person remains an active member of the 
respective fire department, and no person who is receiving a 
service pension shall be entitled to receive any other benefits 
from the special fund of the relief association.  No service 
pension or ancillary benefits paid or payable from the special 
fund of a relief association to any person receiving or entitled 
to receive a service pension or ancillary benefits shall be 
subject to garnishment, judgment, execution or other legal 
process, except as provided in section 518.58, 518.581, or 
518.611.  No person entitled to a service pension or ancillary 
benefits from the special fund of a relief association may 
assign any service pension or ancillary benefit payments, nor 
shall the association have the authority to recognize any 
assignment or pay over any sum which has been assigned. 
    Sec. 10.  Minnesota Statutes 1986, section 490.126, is 
amended by adding a subdivision to read: 
    Subd. 5.  [EXEMPTION FROM PROCESS; NO ASSIGNMENT.] None of 
the money, annuities, or other benefits provided in this chapter 
is assignable either in law or equity or is subject to 
execution, levy, attachment, garnishment, or other legal 
process, except as provided in section 518.58, 518.581, or 
518.611. 
    Sec. 11.  Minnesota Statutes 1986, section 518.145, is 
amended to read:  
    518.145 [DECREE, FINALITY AND REOPENING.] 
    Subdivision 1.  [APPEAL.] A decree of dissolution of 
marriage or of legal separation is final when entered, subject 
to the right of appeal.  When entered, the findings of fact and 
conclusions of law may constitute the judgment and decree.  An 
appeal from the decree of dissolution that does not challenge 
the finding that the marriage is irretrievably broken does not 
delay the finality of that provision of the decree which 
dissolves the marriage beyond the time for appealing from that 
provision.  A party may remarry before the time for appeal has 
run if it is not contested that the marriage is irretrievably 
broken or if a stipulation that the marriage is irretrievably 
broken is incorporated in the decree of dissolution. 
     Subd. 2.  [REOPENING.] On motion and upon terms as are 
just, the court may relieve a party from a judgment and decree, 
order, or proceeding under chapter 518, except for provisions 
dissolving the bonds of marriage, annulling the marriage, or 
directing that the parties are legally separated, and may order 
a new trial or grant other relief as may be just for the 
following reasons: 
    (1) mistake, inadvertence, surprise, or excusable neglect; 
    (2) newly discovered evidence which by due diligence could 
not have been discovered in time to move for a new trial under 
the rules of civil procedure, rule 59.03; 
    (3) fraud, whether denominated intrinsic or extrinsic, 
misrepresentation, or other misconduct of an adverse party; 
    (4) the judgment and decree or order is void; or 
    (5) the judgment has been satisfied, released, or 
discharged, or a prior judgment and decree or order upon which 
it is based has been reversed or otherwise vacated, or it is no 
longer equitable that the judgment and decree or order should 
have prospective application.  
    The motion must be made within a reasonable time, and for a 
reason under clause (1), (2), or (3), not more than one year 
after the judgment and decree, order, or proceeding was entered 
or taken.  A motion under this subdivision does not affect the 
finality of a judgment and decree or order or suspend its 
operation.  This subdivision does not limit the power of a court 
to entertain an independent action to relieve a party from a 
judgment and decree, order, or proceeding or to grant relief to 
a party not actually personally notified as provided in the 
rules of civil procedure, or to set aside a judgment for fraud 
upon the court.  
    Sec. 12.  Minnesota Statutes 1986, section 518.17, 
subdivision 3, is amended to read:  
    Subd. 3.  [CUSTODY ORDER.] (a) Upon adjudging the nullity 
of a marriage, or in a dissolution or separation proceeding, 
or in a child custody proceeding, the court shall make such 
further order as it deems just and proper concerning:  
    (a) (1) the legal custody of the minor children of the 
parties which shall be sole or joint; 
    (b) (2) their physical custody and residence; and 
    (c) (3) their support.  In determining custody, the court 
shall consider the best interests of the each child and shall 
not prefer one parent over the other solely on the basis of the 
sex of the parent.  
    (b) The court shall grant the following rights to each of 
the parties, unless specific findings are made under paragraph 
(c), and every custody order must include the following notice 
to the parties:  
NOTICE IS HEREBY GIVEN TO THE PARTIES: 
Each party has the right of access to, and to receive 
copies of, school, medical, dental, religious training, and 
other important records and information about the minor 
children.  Presentation of a copy of this order to the 
custodian of a record or other information about the minor 
children constitutes sufficient authorization for the 
release of the record or information to the requesting 
party.  
Each party shall keep the other party informed as to the 
name and address of the school of attendance of the minor 
children.  Each party has the right to be informed by 
school officials about the children's welfare, educational 
progress and status, and to attend school and 
parent-teacher conferences.  The school is not required to 
hold a separate conference for each party.  
In case of an accident or serious illness of a minor child, 
each party shall notify the other party of the accident or 
illness, and the name of the health care provider and the 
place of treatment. 
Each party has the right to reasonable access and telephone 
contact with the minor children. 
    (c) The court may waive all or part of the notice required 
under paragraph (b) if it finds that it is necessary to protect 
the welfare of a party or child.  
    Sec. 13.  Minnesota Statutes 1986, section 518.171, is 
amended by adding a subdivision to read: 
    Subd. 10.  [ENFORCEMENT.] Remedies available for the 
collection and enforcement of child support apply to medical 
support.  For the purpose of enforcement, the costs of 
individual or group health or hospitalization coverage or 
liabilities established pursuant to section 518.171, subdivision 
8, are additional child support.  
    Sec. 14.  Minnesota Statutes 1986, section 518.175, is 
amended by adding a subdivision to read: 
    Subd. 7.  [GRANDPARENT VISITATION.] In all proceedings for 
dissolution or legal separation, the court may make an order 
granting visitation rights to grandparents under section 
257.022, subdivision 2.  
    Sec. 15.  Minnesota Statutes 1987 Supplement, section 
518.54, subdivision 10, is amended to read:  
    Subd. 10.  [PUBLIC PENSION PLAN BENEFITS OR RIGHTS.] 
"Public Pension plan benefits or rights" means a benefit or 
right from a public or private pension plan accrued to the end 
of the month in which marital assets are valued, as determined 
under the terms of the laws or other plan document provisions 
governing the plan, including section 356.30. 
    Sec. 16.  Minnesota Statutes 1986, section 518.54, is 
amended by adding a subdivision to read:  
    Subd. 12.  [PRIVATE PENSION PLAN.] "Private pension plan" 
means a plan, fund, or program maintained by an employer or 
employee organization that provides retirement income to 
employees or results in a deferral of income by employees for a 
period extending to the termination of covered employment or 
beyond. 
     Sec. 17.  Minnesota Statutes 1986, section 518.551, 
subdivision 5, is amended to read:  
    Subd. 5.  [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 
petitioner shall notify the public authority of all proceedings 
for dissolution, legal separation, determination of parentage or 
for the custody of a child, if either party is receiving aid to 
families with dependent children or applies for it subsequent to 
the commencement of the proceeding.  After receipt of the 
notice, the court shall set child support as provided in this 
subdivision.  The court may order either or both parents owing a 
duty of support to a child of the marriage to pay an amount 
reasonable or necessary for the child's support, without regard 
to marital misconduct.  The court shall approve a child support 
agreement of the parties if each party is represented by 
independent counsel, unless the agreement is not in the interest 
of justice.  In other cases the court shall order child support 
in accordance with the guidelines and the other factors set 
forth in paragraph (b) and any departure therefrom. 
    The court shall multiply the obligor's net income by the 
percentage indicated by the following guidelines:  
Net Income Per            Number of Children 
Month of Obligor 
                   1      2      3      4      5      6    7 or 
                                                           more 
$400 and Below          Order based on the ability of the 
                        obligor to provide support  
                        at these income levels, or at higher  
                        levels, if the obligor has 
                        the earning ability. 
$401 - 500        14%    17%    20%    22%    24%    26%    28% 
$501 - 550        15%    18%    21%    24%    26%    28%    30% 
$551 - 600        16%    19%    22%    25%    28%    30%    32% 
$601 - 650        17%    21%    24%    27%    29%    32%    34% 
$651 - 700        18%    22%    25%    28%    31%    34%    36% 
$701 - 750        19%    23%    27%    30%    33%    36%    38% 
$751 - 800        20%    24%    28%    31%    35%    38%    40% 
$801 - 850        21%    25%    29%    33%    36%    40%    42% 
$851 - 900        22%    27%    31%    34%    38%    41%    44% 
$901 - 950        23%    28%    32%    36%    40%    43%    46% 
$951 - 1000       24%    29%    34%    38%    41%    45%    48% 
$1001- 4000       25%    30%    35%    39%    43%    47%    50% 
    Guidelines for support for an obligor with a monthly income 
of $4001 or more shall be the same dollar amounts as provided 
for in the guidelines for an obligor with a monthly income of 
$4000.  
         Net Income defined as: 
         Total monthly 
         income less           *(i) Federal Income Tax 
                              *(ii) State Income Tax 
                              (iii) Social Security
                                     Deductions 
                               (iv) Reasonable
                                     Pension Deductions 
         *Standard 
         Deductions apply-      (v) Union Dues 
         use of tax tables     (vi) Cost of Dependent 
               recommended           Insurance Coverage  
                              (vii) Cost of Individual or Group
                                     Health/Hospitalization
                                     Coverage or an        
                                     Amount for Actual 
                                     Medical Expenses   
                             (viii) A Child Support or  
                                     Maintenance Order that is
                                     Currently Being Paid. 
    "Net income" does not include the income of the obligor's 
spouse. 
    (b) In addition to the child support guidelines, the court 
shall take into consideration the following factors in setting 
or modifying child support: 
    (1) all earnings, income, and resources of the parents, 
including real and personal property;  
    (2) the financial needs and resources, physical and 
emotional condition, and educational needs of the child or 
children to be supported; 
    (3) the standards of living the child would have enjoyed 
had the marriage not been dissolved, but recognizing that the 
parents now have separate households;  
    (4) the amount of the aid to families with dependent 
children grant for the child or children; and 
    (5) which parent receives the income taxation dependency 
exemption and what financial benefit the parent receives from 
it; and 
    (6) the parents' debts as provided in paragraph (c).  
    (c) In establishing or modifying a support obligation, the 
court may consider debts owed to private creditors, but only if: 
    (1) the right to support has not been assigned under 
section 256.74;  
    (2) the court determines that the debt was reasonably 
incurred for necessary support of the child or parent or for the 
necessary generation of income.  If the debt was incurred for 
the necessary generation of income, the court shall consider 
only the amount of debt that is essential to the continuing 
generation of income; and 
    (3) the party requesting a departure produces a sworn 
schedule of the debts, with supporting documentation, showing 
goods or services purchased, the recipient of them, the amount 
of the original debt, the outstanding balance, the monthly 
payment, and the number of months until the debt will be fully 
paid. 
    Any schedule prepared under paragraph (c), clause (3), 
shall contain a statement that the debt will be fully paid after 
the number of months shown in the schedule, barring emergencies 
beyond the party's control.  
    Any further departure below the guidelines that is based on 
a consideration of debts owed to private creditors shall not 
exceed 18 months in duration, after which the support shall 
increase automatically to the level ordered by the court.  
Nothing in this section shall be construed to prohibit one or 
more step increases in support to reflect debt retirement during 
the 18-month period.  
    Where payment of debt is ordered pursuant to this section, 
the payment shall be ordered to be in the nature of child 
support.  
    (d) Nothing shall preclude the court from receiving 
evidence on the above factors to determine if the guidelines 
should be exceeded or modified in a particular case.  
    (e) The above guidelines are binding in each case unless 
the court makes express findings of fact as to the reason for 
departure below or above the guidelines. 
    Sec. 18.  Minnesota Statutes 1986, section 518.551, is 
amended by adding a subdivision to read: 
    Subd. 11.  [REOPENING SUPPORT AWARDS.] Section 518.145, 
subdivision 2, applies to awards of child support.  
    Sec. 19.  Minnesota Statutes 1986, section 518.552, is 
amended by adding a subdivision to read:  
    Subd. 4.  [REOPENING MAINTENANCE AWARDS.] Section 518.145, 
subdivision 2, applies to awards of spousal maintenance.  
    Sec. 20.  Minnesota Statutes 1987 Supplement, section 
518.58, subdivision 2, is amended to read:  
    Subd. 2.  [PENSION PLANS.] The division of marital property 
that represents vested public pension plan benefits or rights in 
the form of future public pension plan payments:  
    (1) may not commence until the public plan member submits a 
valid application for a public pension plan benefit and the 
benefit becomes payable; 
    (2) is payable only to the extent of the amount of the 
public pension plan benefit payable under the terms of the plan; 
    (3) (2) is not payable for a period that exceeds the time 
that public pension plan benefits are payable to the public 
pension plan benefit recipient; 
    (4) (3) is not payable in a lump sum amount from public 
pension plan assets attributable in any fashion to a spouse with 
the status of an active member, deferred retiree, or benefit 
recipient of a public pension plan; and 
    (5) (4) if the former spouse to whom the payments are to be 
made dies prior to the end of the specified payment period with 
the right to any remaining payments accruing to an estate or to 
more than one survivor, is payable only to a trustee on behalf 
of the estate or the group of survivors for subsequent 
apportionment by the trustee; and 
    (5) in the case of public pension plan benefits or rights, 
may not commence until the public plan member submits a valid 
application for a public pension plan benefit and the benefit 
becomes payable. 
    Sec. 21.  Minnesota Statutes 1987 Supplement, section 
518.581, subdivision 4, is amended to read:  
    Subd. 4.  [DEFINITIONS.] For purposes of this section, the 
following terms have the meanings given in this subdivision. 
    (a) "Current or former public employee" or "employee" means 
an individual who has an interest in a pension plan. 
    (b) "Surviving spouse benefit" means (1) a benefit a 
surviving spouse may be eligible for under the laws and bylaws 
of the pension plan if the employee dies before retirement, or 
(2) a benefit selected for or available to a surviving spouse 
under the laws and bylaws of the pension plan upon the death of 
the employee after retirement. 
    Sec. 22.  Minnesota Statutes 1987 Supplement, section 
518.611, subdivision 2, is amended to read:  
    Subd. 2.  [CONDITIONS OF INCOME WITHHOLDING.] (a) 
Withholding shall result whenever the obligor fails to make the 
maintenance or support payments, and the following conditions 
are met: 
    (1) The obligor is at least 30 days in arrears;  
    (2) The obligee or the public authority serves written 
notice of income withholding, showing arrearage, on the obligor 
at least 15 days before service of the notice of income 
withholding and a copy of the court's order on the payor of 
funds;  
    (3) Within the 15-day period, the obligor fails to move the 
court to deny withholding on the grounds that an arrearage of at 
least 30 days does not exist as of the date of the notice of 
income withholding, or on other grounds limited to mistakes of 
fact, and, ex parte, to stay service on the payor of funds until 
the motion to deny withholding is heard; and 
    (4) The obligee or the public authority serves a copy of 
the notice of income withholding, a copy of the court's order, 
and the provisions of this section on the payor of funds; and 
    (5) The obligee serves on the public authority a copy of 
the notice of income withholding, a copy of the court's order, 
an application, and the fee to use the public authority's 
collection services.  
    (b) To pay the arrearage specified in the notice of income 
withholding, the employer or payor of funds shall withhold from 
the obligor's income an additional amount equal to 20 percent of 
the monthly child support or maintenance obligation until the 
arrearage is paid.  
    (c) The obligor may, at any time, waive the written notice 
required by this subdivision.  
    (d) The obligor may move the court, under section 518.64, 
to modify the order respecting the amount of maintenance or 
support. 
    (e) Every order for support or maintenance shall provide 
for a conspicuous notice of the provisions of this subdivision.  
An order without this notice remains subject to this subdivision.
    Sec. 23.  Minnesota Statutes 1986, section 518.611, 
subdivision 10, is amended to read:  
    Subd. 10.  [ORDER TERMINATING INCOME WITHHOLDING.] (a) 
Whenever an obligation for support of a child or maintenance of 
a spouse, or both, terminates under the terms of the order or 
decree establishing the obligation, and where the obligation is 
enforced by an order for income withholding from the obligor, 
the court shall enter an order, directed to the obligor's 
employer or other payer of funds, which terminates the income 
withholding.  The order terminating income withholding must 
specify the effective date of the order, referencing the initial 
order or decree establishing the support obligation. 
    The order must be entered once the following conditions 
have been met: 
    (1) the obligor serves written notice of the application 
for termination of income withholding by mail upon the obligee 
at the obligee's last known mailing address; and a duplicate 
copy of the application is served upon the public authority 
responsible for the processing of support collection services; 
    (2) the application for termination of income withholding 
specifies the event that terminates the support obligation, the 
effective date of the termination of the support obligation, and 
the applicable provisions of the order or decree that 
established the support obligation; 
    (3) the application includes the complete name of the 
obligor's employer or other payer of funds, the business mailing 
address, the court action and court file number, and the support 
and collections file number, if known; and 
    (4) after receipt of the application for termination of 
income withholding, the obligee or the public authority fails 
within 20 days to request a hearing on the issue of whether 
income withholding of support should continue clearly specifying 
the basis for the continued support obligation and, ex parte, to 
stay the service of the order terminating income withholding 
upon the obligor's employer or other payer of funds, pending the 
outcome of the hearing. 
    (b) If the public authority determines that the support 
obligation has terminated under the terms of the order or decree 
establishing the obligation, the public authority shall notify 
the obligee and obligor of intent to terminate income 
withholding.  Five days following this notice, the public 
authority shall issue a notice to the payor of funds terminating 
income withholding, without a requirement for a court order 
terminating income withholding, unless a hearing has been 
requested under paragraph (a). 
    Sec. 24.  Minnesota Statutes 1986, section 518.64, 
subdivision 2, is amended to read:  
    Subd. 2.  [MODIFICATION.] The terms of a decree respecting 
maintenance or support may be modified upon a showing of one or 
more of the following:  (1) substantially increased or decreased 
earnings of a party; (2) substantially increased or decreased 
need of a party; (3) receipt of assistance under sections 256.72 
to 256.87; or (4) a change in the cost-of-living for either 
party as measured by the federal bureau of statistics, any of 
which makes the terms unreasonable and unfair.  On a motion for 
modification of maintenance, the court shall apply, in addition 
to all other relevant factors, the factors for an award of 
maintenance under section 518.552 that exist at the time of the 
motion.  On a motion for modification of support, the court 
shall take into consideration the needs of the children and 
shall not consider the financial circumstances of each party's 
spouse, if any.  A modification which decreases support or 
maintenance may be made retroactive only with respect to any 
period during which the support obligor has pending a motion for 
modification but only from the date that notice of the motion 
has been given to the obligee and to the court or other entity 
which issued each support order.  A modification which increases 
support or maintenance shall not be made retroactive if the 
obligor has substantially complied with the previous order.  
Except for an award of the right of occupancy of the homestead, 
provided in section 518.63, all divisions of real and personal 
property provided by section 518.58 shall be final, and may be 
revoked or modified only where the court finds the existence of 
conditions that justify reopening a judgment under the laws of 
this state, including motions under section 518.145, subdivision 
2.  The court may impose a lien or charge on the divided 
property at any time while the property, or subsequently 
acquired property, is owned by the parties or either of them, 
for the payment of maintenance or support money, or may 
sequester the property as is provided by section 518.24. 
    Sec. 25.  Minnesota Statutes 1986, section 518.641, is 
amended to read:  
    518.641 [COST-OF-LIVING ADJUSTMENTS IN MAINTENANCE OR CHILD 
SUPPORT ORDER.] 
    Subdivision 1.  [REQUIREMENT.] An order for maintenance or 
child support shall provide for a biennial adjustment in the 
amount to be paid based on a change in the cost-of-living.  The 
An order that provides for a cost-of-living adjustment shall 
specify the cost-of-living index to be applied.  The court may 
use the consumer price index for all urban consumers, 
Minneapolis-St. Paul (CPI-U), the consumer price index for wage 
earners and clerical, Minneapolis-St. Paul (CPI-W), or another 
cost-of-living index published by the department of labor which 
it specifically finds is more appropriate.  The court may 
specify that the housing component be excluded from the 
cost-of-living adjustment.  Cost-of-living increases under this 
section shall be compounded.  It The court may also increase the 
amount by more than the cost-of-living adjustment by agreement 
of the parties or by making further findings.  The adjustment 
becomes effective on the first of May of the year in which it is 
made.  A court may waive the requirement of the cost-of-living 
clause if it expressly finds that the obligor's occupation or 
income, or both, does not provide for cost-of-living adjustment 
or that the order for maintenance or child support has a 
provision such as a step increase that has the effect of a 
cost-of-living clause.  The court may waive a cost-of-living 
adjustment in a maintenance order if the parties so agree in 
writing.  The commissioner of human services may promulgate 
rules for child support adjustments under this section in 
accordance with the rulemaking provisions of chapter 14.  
    Subd. 2.  [CONDITIONS.] No adjustment under this section 
may be made unless the order provides for it and until the 
following conditions are met:  
    (a) the obligee or public authority serves notice of its 
application for adjustment by mail on the obligor at the 
obligor's last known address at least 20 days before the 
effective date of the adjustment;  
    (b) the notice to the obligor shall inform the obligor that 
an adjustment in payments shall become effective on the first of 
May; and 
    (c) after receipt of notice and before the effective day of 
the adjustment, the obligor fails to request a hearing on the 
issue of whether the adjustment should take effect, and ex 
parte, to stay imposition of the adjustment pending outcome of 
the hearing.  
    Subd. 3.  [RESULT OF HEARING.] If, at a hearing pursuant to 
this section, the obligor establishes an insufficient cost of 
living or other increase in income that prevents fulfillment of 
the adjusted maintenance or child support obligation, the court 
may direct that all or part of the adjustment not take effect.  
If, at the hearing, the obligor does not establish this 
insufficient increase in income, the adjustment shall take 
effect as of the date it would have become effective had no 
hearing been requested.  
    Subd. 4.  [FORM.] The department of human services shall 
prepare and make available to the court and obligors a form to 
be submitted to the department by the obligor in support of a 
request for hearing under this section regarding a child support 
order.  The rulemaking provisions of chapter 14 shall not apply 
to the preparation of the form.  
    Subd. 5.  [REQUEST FOR COST-OF-LIVING CLAUSE.] A motion for 
enforcement or modification of an existing maintenance or child 
support order shall include a request for a cost-of-living 
clause.  The court may deny the request only upon an express 
finding that the obligor's occupation, income, or both, does not 
provide for a cost-of-living adjustment or that the 
existing maintenance or child support order either has a 
cost-of-living clause or sets forth a step increase which has 
the effect of a cost-of-living adjustment. 
    Approved April 26, 1988

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