Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 693-H.F.No. 2341 
           An act relating to child support; providing that 
          automatic income withholding does not apply to 
          modification of orders issued prior to the effective 
          date; providing for a motion to implement withholding 
          in certain cases; providing that a court shall stay 
          service of an automatic withholding order if an 
          obligor establishes an escrow account for payment of 
          child support or maintenance; amending Minnesota 
          Statutes 1987 Supplement, section 518.613, subdivision 
          1, and by adding a subdivision; proposing coding for 
          new law in Minnesota Statutes, chapter 518. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1987 Supplement, section 
518.613, subdivision 1, is amended to read:  
    Subdivision 1.  [GENERAL.] Notwithstanding any provision of 
section 518.611, subdivision 2 or 3, to the contrary, whenever 
an obligation for child support or maintenance is initially 
determined and ordered or modified by the court in a county in 
which this section applies, the amount of child support or 
maintenance ordered by the court must be withheld from the 
income, regardless of source, of the person obligated to pay the 
support.  For purposes of this section, "modified" does not mean 
a cost-of-living adjustment without any other modification of 
the support order. 
     Sec. 2.  Minnesota Statutes 1987 Supplement, section 
518.613, is amended by adding a subdivision to read: 
    Subd. 5.  [MOTION.] If a court in a county in which this 
section applies modifies an obligation for child support or 
maintenance that was determined prior to the effective date of 
this section in that county, the obligee or the public authority 
may move the court for an order requiring automatic withholding 
under this section.  The court shall grant the order if it finds 
that the obligor has failed to pay the support or maintenance 
within ten days of the due date at least two times in the three 
months immediately preceding the date of the motion without good 
cause. 
    Sec. 3.  [518.614] [ESCROW ACCOUNT; CHILD SUPPORT; 
MAINTENANCE OBLIGATION.] 
    Subdivision 1.  [STAY OF SERVICE.] If the court finds there 
is no arrearage in child support or maintenance as of the date 
of the court hearing, the court shall stay service of the order 
under section 518.613, subdivision 2, in a county in which that 
section applies if the obligor establishes a savings account for 
a sum equal to two months of the monthly child support or 
maintenance obligation and provides proof of the establishment 
to the court and the public authority on or before the day of 
the court hearing determining the obligation.  This sum must be 
held in a financial institution in an interest-bearing account 
with only the public authority authorized as drawer of funds.  
Proof of the establishment must include the financial 
institution name and address, account number, and the amount of 
deposit.  
    Subd. 2.  [RELEASE OF STAY.] Within three working days of 
receipt of notice of default, the public authority shall direct 
the financial institution to release to the public authority the 
sum held under this subdivision when the following conditions 
are met:  
    (1) the obligor fails to pay the support amount to the 
obligee or the public authority within ten days of the date it 
is ordered to be paid;  
    (2) the obligee transmits a notice of default to the public 
authority and makes application to the public authority for 
child support and maintenance collection services.  The notice 
must be verified by the obligee and must contain the title of 
the action, the court file number, the full name and address of 
the obligee, the name and last known address of the obligor, the 
obligor's last known employer or other payor of funds, the date 
of the first unpaid amount, the date of the last unpaid amount, 
and the total amount unpaid; and 
    (3) within three working days of receipt of notice from the 
obligee, the public authority sends a copy of the notice of 
default and a notice of intent to implement income withholding 
by mail to the obligor at the address given.  The notice of 
intent shall state that the order establishing the support or 
maintenance obligation will be served on the obligor's employer 
or payor of funds unless within 15 days after the mailing of the 
notice the obligor requests a hearing on the issue of whether 
payment was in default as of the date of the notice of default 
and serves notice of the request for hearing on the public 
authority and the obligee.  
    Subd. 3.  [DUTIES OF PUBLIC AUTHORITY.] Within three 
working days of receipt of sums released under subdivision 2, 
the public authority shall remit to the obligee all amounts not 
assigned under section 256.74 as current support or 
maintenance.  The public authority shall also serve a copy of 
the court's order and the provisions of section 518.611 and this 
section on the obligor's employer or other payor of funds unless 
within 15 days after mailing of the notice of intent to 
implement income withholding the obligor requests a hearing on 
the issue of whether payment was in default as of the date of 
the notice of default and serves notice of the request for 
hearing on the public authority and the obligee.  The public 
authority shall instruct the employer or payor of funds pursuant 
to section 518.611 as to the effective date on which the next 
support or maintenance payment is due.  The withholding process 
must begin on said date and shall reflect the total credits of 
principle and interest amounts received from the escrow account. 
    Subd. 4.  [HEARING.] Within 30 days of the date of the 
notice of default under subdivision 2, clause (2), the court 
must hold a hearing requested by the obligor.  If the court 
finds that there was a default, the court shall order the 
immediate withholding of support or maintenance from the 
obligor's income.  If the court finds that there was no default, 
the court shall order the reestablishment of the escrow account 
by either the obligee or obligor and continue the stay of income 
withholding.  
    Subd. 5.  [TERMINATION OF STAY.] When the obligation for 
support of a child or for spousal maintenance ends under the 
terms of the order or decree establishing the obligation and the 
sum held under this section has not otherwise been released, the 
public authority shall release the sum and interest to the 
obligor when the following conditions are met:  
    (1) the obligor transmits a notice of termination to the 
public authority.  The notice shall be verified by the obligor 
and contain the title of the action, the court file number, the 
full name and address of the obligee, specify the event that 
ends the support or maintenance obligation, the effective date 
of the termination of support or maintenance obligation, and the 
applicable provisions of the order or decree that established 
the support or maintenance obligation; 
    (2) the public authority sends a copy of the notice of 
termination to the obligee; and 
    (3) the obligee fails within 20 days after mailing of the 
notice under clause (2) to request a hearing on the issue of 
whether the support or maintenance obligation continues and 
serve notice of the request for hearing on the obligor and the 
public authority.  
    Sec. 4.  [REPORT.] 
    The report of the commissioner pursuant to Laws 1987, 
chapter 403, article 3, section 94, shall include data on the 
costs associated with administering the automatic income 
withholding program and shall separately identify case 
statistics and costs associated with implementation of the 
escrow option. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment.  Child support and maintenance obligors subject to 
automatic income withholding on or before the effective date may 
elect, at any time prior to January 1, 1989, to place money in 
escrow under section 3 and have the public authority direct the 
employer or payor of funds to terminate the automatic income 
withholding process.  Parties who are subject to automatic 
income withholding because support or maintenance was modified 
on or before the effective date may authorize the public 
authority to direct the employer or payor of funds to terminate 
automatic income withholding prior to January 1, 1989, by 
submitting to the public authority a written request for 
termination of automatic income withholding signed by all 
parties. 
    Approved April 28, 1988