Office of the Revisor of Statutes
Minnesota Session Laws - 1993, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1993
CHAPTER 340-H.F.No. 1042
An act relating to human services; modifying
provisions dealing with the administration,
computation, and enforcement of child support;
imposing penalties; amending Minnesota Statutes 1992,
sections 136A.121, subdivision 2; 214.101, subdivision
1; 256.87, subdivisions 1, 1a, 3, and 5; 256.978;
256.979, by adding subdivisions; 256.9791,
subdivisions 3 and 4; 257.66, subdivision 3; 257.67,
subdivision 3; 349A.08, subdivision 8; 484.74,
subdivision 1, as amended; 484.76, subdivision 1, as
amended; 518.14; 518.171, subdivisions 1, 2, 3, 4, 6,
7, 8, 10, and by adding a subdivision; 518.24; 518.54,
subdivision 4; 518.551, subdivisions 1, 5, 5b, 7, 10,
12, and by adding a subdivision; 518.57, subdivision
1, and by adding a subdivision; 518.611, subdivision
4; 518.613, subdivision 1; 518.64, subdivisions 1, 2,
5, and 6; 548.09, subdivision 1; 548.091, subdivisions
1a and 3a; 588.20; 609.375, subdivisions 1 and 2;
proposing coding for new law in Minnesota Statutes,
chapters 256; and 518; repealing Minnesota Statutes
1992, sections 256.979; and 609.37.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1992, section 136A.121,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY FOR GRANTS.] An applicant is
eligible to be considered for a grant, regardless of the
applicant's sex, creed, race, color, national origin, or
ancestry, under sections 136A.095 to 136A.131 if the board finds
that the applicant:
(1) is a resident of the state of Minnesota;
(2) is a graduate of a secondary school or its equivalent,
or is 17 years of age or over, and has met all requirements for
admission as a student to an eligible college or technical
college of choice as defined in sections 136A.095 to 136A.131;
(3) has met the financial need criteria established in
Minnesota Rules;
(4) is not in default, as defined by the board, of any
federal or state student educational loan; and
(5) is not more than 30 days in arrears for any child
support payments owed to a public agency responsible for child
support enforcement or, if the applicant is more than 30 days in
arrears, is complying with a written payment plan agreement or
order for arrearages. An agreement must provide for a repayment
of arrearages at no less than 20 percent per month of the amount
of the monthly child support obligation or no less than $30 per
month if there is no current monthly child support obligation.
Compliance means that payments are made by the payment date.
The director and the commissioner of human services shall
develop procedures to implement clause (5).
Sec. 2. Minnesota Statutes 1992, section 214.101,
subdivision 1, is amended to read:
Subdivision 1. [COURT ORDER; HEARING ON SUSPENSION.] (a)
For purposes of this section, "licensing board" means a
licensing board or other state agency that issues an
occupational license.
(b) If a licensing board receives an order from a court
under section 518.551, subdivision 12, dealing with suspension
of a license of a person found by the court to be in arrears in
child support payments, the board shall, within 30 days of
receipt of the court order, provide notice to the licensee and
hold a hearing. If the board finds that the person is licensed
by the board and evidence of full payment of arrearages found to
be due by the court is not presented at the hearing, the board
shall suspend the license unless it determines that probation is
appropriate under subdivision 2. The only issues to be
determined by the board are whether the person named in the
court order is a licensee, whether the arrearages have been
paid, and whether suspension or probation is appropriate. The
board may not consider evidence with respect to the
appropriateness of the court order or the ability of the person
to comply with the order. The board may not lift the suspension
until the licensee files with the board proof showing that the
licensee is current in child support payments.
Sec. 3. Minnesota Statutes 1992, section 256.87,
subdivision 1, is amended to read:
Subdivision 1. [ACTIONS AGAINST PARENTS FOR ASSISTANCE
FURNISHED.] A parent of a child is liable for the amount of
assistance furnished under sections 256.031 to 256.0361, 256.72
to 256.87, or under Title IV-E of the Social Security Act or
medical assistance under chapter 256, 256B, or 256D to and for
the benefit of the child, including any assistance furnished for
the benefit of the caretaker of the child, which the parent has
had the ability to pay. Ability to pay must be determined
according to chapter 518. The parent's liability is limited
to the amount of assistance furnished during the two years
immediately preceding the commencement of the action, except
that where child support has been previously ordered, the state
or county agency providing the assistance, as assignee of the
obligee, shall be entitled to judgments for child support
payments accruing within ten years preceding the date of the
commencement of the action up to the full amount of assistance
furnished. The action may be ordered by the state agency or
county agency and shall be brought in the name of the county by
the county attorney of the county in which the assistance was
granted, or by the state agency against the parent for the
recovery of the amount of assistance granted, together with the
costs and disbursements of the action.
Sec. 4. Minnesota Statutes 1992, section 256.87,
subdivision 1a, is amended to read:
Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition
to granting the county or state agency a money judgment, the
court may, upon a motion or order to show cause, order
continuing support contributions by a parent found able to
reimburse the county or state agency. The order shall be
effective for the period of time during which the recipient
receives public assistance from any county or state agency and
for five months thereafter. The order shall require support
according to chapter 518. An order for continuing contributions
is reinstated without further hearing upon notice to the parent
by any county or state agency that assistance is again being
provided for the child of the parent under sections 256.031 to
256.0361, 256.72 to 256.87, or under Title IV-E of the Social
Security Act or medical assistance under chapter 256, 256B, or
256D. The notice shall be in writing and shall indicate that
the parent may request a hearing for modification of the amount
of support or maintenance.
Sec. 5. Minnesota Statutes 1992, section 256.87,
subdivision 3, is amended to read:
Subd. 3. [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.]
The order for continuing support contributions shall remain in
effect following the five-month period after public assistance
granted under sections 256.72 to 256.87 is terminated if:
(a) the former recipient files an affidavit with the court
within five months of the termination of assistance requesting
that the support order remain in effect;
(b) the public authority serves written notice of the
filing by mail on the parent responsible for making the support
payments at that parent's last known address and notice that the
parent may move the court under section 518.64 to modify the
order respecting the amount of support or maintenance; and
(c) unless the former recipient authorizes use of the
public authority's collection services files an affidavit with
the court requesting termination of the order.
Sec. 6. Minnesota Statutes 1992, section 256.87,
subdivision 5, is amended to read:
Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A parent person
or entity having physical and legal custody of a dependent child
not receiving assistance under sections 256.72 to 256.87 has a
cause of action for child support against the child's
absent parent parents. Upon an order to show cause and a motion
served on the absent parent, the court shall order child support
payments from the absent parent under chapter 518.
Sec. 7. Minnesota Statutes 1992, section 256.978, is
amended to read:
256.978 [LOCATION OF PARENTS DESERTING THEIR CHILDREN,
ACCESS TO RECORDS.]
Subdivision 1. [REQUEST FOR INFORMATION.] 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 locate a person
to establish paternity, child support, or to enforce a child
support obligation in arrears, may request
information reasonably necessary to the inquiry from the records
of all departments, boards, bureaus, or other agencies of this
state, which shall, notwithstanding the provisions of section
268.12, subdivision 12, or any other law to the contrary,
provide the information necessary for this purpose.
Employers and, utility companies, insurance companies, financial
institutions, and labor associations doing business in this
state shall provide information as provided under subdivision 2
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 be made 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
commissioner may not release the information to an agency or
political subdivision of another state unless the agency or
political subdivision is directed to maintain the data consistent
with its classification in this state. Information obtained
under this section may not be released except to the extent
necessary for the administration of the child support
enforcement program or when otherwise authorized by law.
Subd. 2. [ACCESS TO INFORMATION.] (a) A written request
for information by the public authority responsible for child
support may be made to:
(1) employers when there is reasonable cause to believe
that the subject of the inquiry is or was an employee of the
employer. Information to be released by employers is limited to
place of residence, employment status, wage information, and
social security number;
(2) utility companies when there is reasonable cause to
believe that the subject of the inquiry is or was a retail
customer of the utility company. Customer information to be
released by utility companies is limited to place of residence,
home telephone, work telephone, source of income, employer and
place of employment, and social security number;
(3) insurance companies when there is an arrearage of child
support and there is reasonable cause to believe that the
subject of the inquiry is or was receiving funds either in the
form of a lump sum or periodic payments. Information to be
released by insurance companies is limited to place of
residence, home telephone, work telephone, employer, and amounts
and type of payments made to the subject of the inquiry;
(4) labor organizations when there is reasonable cause to
believe that the subject of the inquiry is or was a member of
the labor association. Information to be released by labor
associations is limited to place of residence, home telephone,
work telephone, and current and past employment information; and
(5) financial institutions when there is an arrearage of
child support and there is reasonable cause to believe that the
subject of the inquiry has or has had accounts, stocks, loans,
certificates of deposits, treasury bills, life insurance
policies, or other forms of financial dealings with the
institution. Information to be released by the financial
institution is limited to place of residence, home telephone,
work telephone, identifying information on the type of financial
relationships, current value of financial relationships, and
current indebtedness of the subject with the financial
institution.
(b) For purposes of this subdivision, utility companies
include companies that provide electrical, telephone, natural
gas, propane gas, oil, coal, or cable television services to
retail customers. The term financial institution includes
banks, savings and loans, credit unions, brokerage firms,
mortgage companies, and insurance companies.
Subd. 3. [IMMUNITY.] A person who releases information to
the public authority as authorized under this section is immune
from liability for release of the information.
Sec. 8. Minnesota Statutes 1992, section 256.979, is
amended by adding a subdivision to read:
Subd. 5. [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER
MODIFICATION BONUS INCENTIVES.] (a) A bonus incentive program is
created to increase the number of paternity establishments and
modifications of child support orders done by county child
support enforcement agencies.
(b) A bonus must be awarded to a county child support
agency for each child for which the agency completes a paternity
establishment through judicial, administrative, or expedited
processes and for each instance in which the agency reviews a
case for a modification of the child support order.
(c) The rate of bonus incentive is $100 for each paternity
establishment and $50 for each review for modification of a
child support order.
Sec. 9. Minnesota Statutes 1992, section 256.979, is
amended by adding a subdivision to read:
Subd. 6. [CLAIMS FOR BONUS INCENTIVE.] (a) The
commissioner of human services and the county agency shall
develop procedures for the claims process and criteria using
automated systems where possible.
(b) Only one county agency may receive a bonus per
paternity establishment or child support order modification.
The county agency making the initial preparations for the case
resulting in the establishment of paternity or modification of
an order is the county agency entitled to claim the bonus
incentive, even if the case is transferred to another county
agency prior to the time the order is established or modified.
(c) Disputed claims must be submitted to the commissioner
of human services and the commissioner's decision is final.
(d) For purposes of this section, "case" means a family
unit for whom the county agency is providing child support
enforcement services.
Sec. 10. Minnesota Statutes 1992, section 256.979, is
amended by adding a subdivision to read:
Subd. 7. [DISTRIBUTION.] (a) Bonus incentives must be
issued to the county agency quarterly, within 45 days after the
last day of each quarter for which a bonus incentive is being
claimed, and must be paid in the order in which claims are
received.
(b) Bonus incentive funds under this section must be
reinvested in the county child support enforcement program and a
county may not reduce funding of the child support enforcement
program by the amount of the bonus earned.
(c) The county agency shall repay any bonus erroneously
issued.
(d) A county agency shall maintain a record of bonus
incentives claimed and received for each quarter.
Sec. 11. Minnesota Statutes 1992, section 256.979, is
amended by adding a subdivision to read:
Subd. 8. [MEDICAL PROVIDER REIMBURSEMENT.] (a) A fee to
the providers of medical services is created for the purpose of
increasing the numbers of signed and notarized recognition of
parentage forms completed in the medical setting.
(b) A fee of $25 shall be paid to each medical provider for
each properly completed recognition of parentage form sent to
the department of vital statistics.
(c) The office of vital statistics shall make the bonus
payment of $25 to each medical provider and notify the
department of human services quarterly of the numbers of
completed forms received and the amounts paid.
(d) The department of human services shall remit quarterly
to the office of vital statistics the sums paid to each medical
provider for the number of signed recognition of parentage forms
completed by that medical provider and sent to the office of
vital statistics.
(e) The commissioners of the department of human services
and the department of health shall develop procedures for the
implementation of this provision.
(f) Payments will be made to the medical provider within
the limit of available appropriations.
Sec. 12. Minnesota Statutes 1992, section 256.9791,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBILITY; REPORTING REQUIREMENTS.] (a) In
order for a county to be eligible to claim a bonus incentive
payment, the county agency must report to the commissioner, no
later than August 1 of each fiscal year, provide the required
information for each public assistance case no later than June
30 of each year to determine eligibility. The public authority
shall use the information to establish for each county the
number of cases as of June 30 of the preceding fiscal year in
which (1) the court has established an obligation for coverage
by the obligor, and (2) coverage was in effect as of June
30. The ratio resulting when the number of cases reported under
(2) is divided by the number of cases reported under (1) shall
be used to determine the amount of the bonus incentive according
to subdivision 4.
(b) A county that fails to submit provide the required
information by August 1 June 30 of each fiscal year is not
eligible for any bonus payments under this section for that
fiscal year.
Sec. 13. Minnesota Statutes 1992, section 256.9791,
subdivision 4, is amended to read:
Subd. 4. [RATE OF BONUS INCENTIVE.] The rate of the bonus
incentive shall be determined according to paragraphs
paragraph (a) to (c).
(a) When a county agency has identified or enforced
coverage in up to and including 50 percent of its cases, the
county shall receive $15 $50 for each additional person for whom
coverage is identified or enforced.
(b) When a county agency has identified or enforced
coverage in more than 50 percent but less than 80 percent of its
cases, the county shall receive $20 for each person for whom
coverage is identified or enforced.
(c) When a county agency has identified or enforced
coverage in 80 percent or more of its cases, the county shall
receive $25 for each person for whom coverage is identified or
enforced.
(d) Bonus payments according to paragraphs paragraph (a) to
(c) are limited to one bonus for each covered person each time
the county agency identifies or enforces previously unidentified
health insurance coverage and apply only to coverage identified
or enforced after July 1, 1990.
Sec. 14. [256.9792] [ARREARAGE COLLECTION PROJECTS.]
Subdivision 1. [ARREARAGE COLLECTIONS.] Arrearage
collection projects are created to increase the revenue to the
state and counties, reduce AFDC expenditures for former public
assistance cases, and increase payments of arrearages to persons
who are not receiving public assistance by submitting cases for
arrearage collection to collection entities, including but not
limited to, the department of revenue and private collection
agencies.
Subd. 2. [DEFINITIONS.] (a) The definitions in this
subdivision apply to this section:
(b) "Public assistance arrearage case" means a case where
current support may be due, no payment, with the exception of
tax offset, has been made within the last 90 days, and the
arrearages are assigned to the public agency pursuant to section
256.74, subdivision 5.
(c) "Public authority" means the public authority
responsible for child support enforcement.
(d) "Nonpublic assistance arrearage case" means a support
case where arrearages have accrued that have not been assigned
pursuant to section 256.74, subdivision 5.
Subd. 3. [AGENCY PARTICIPATION.] (a) The collection remedy
under this section is in addition to and not in substitution for
any other remedy available by law to the public authority. The
public authority remains responsible for the case even after
collection efforts are referred to the department of revenue, a
private agency, or other collection entity.
(b) The department of revenue, a private agency, or other
collection entity may not claim collections made on a case
submitted by the public authority for a state tax offset under
chapter 270A as a collection for the purposes of this project.
Subd. 4. [ELIGIBLE CASES.] (a) For a case to be eligible
for a collection project, the criteria in paragraphs (b) and (c)
must be met. Any case from a county participating in the
collections project meeting the criteria under this subdivision
must be subcommitted for collection.
(b) Notice must be sent to the debtor, as defined in
section 270A.03, subdivision 4, at the debtor's last known
address at least 30 days before the date the collections effort
is transferred. The notice must inform the debtor that the
department of revenue or a private collections agency will use
enforcement and collections remedies and may charge a fee of up
to 30 percent of the arrearages. The notice must advise the
debtor of the right to contest the debt on grounds limited to
mistakes of fact. The debtor may contest the debt by submitting
a written request for review to the public authority within 21
days of the date of the notice.
(c) The arrearages owed must be based on a court or
administrative order. The arrearages to be collected must be at
least $100 and must be at least 90 days past due. For nonpublic
assistance cases referred to private agencies, the arrearages
must be a docketed judgment under sections 548.09 and 548.091.
Subd. 5. [COUNTY PARTICIPATION.] (a) The commissioner of
human services shall designate the counties to participate in
the projects, after requesting counties to volunteer for the
projects.
(b) The commissioner of human services shall designate
which counties shall submit cases to the department of revenue,
a private collection agency, or other collection entity.
Subd. 6. [FEES.] A collection fee set by the commissioner
of human services shall be charged to the person obligated to
pay the arrearages. The collection fee is in addition to the
amount owed, and must be deposited by the commissioner of
revenue in the state treasury and credited to the general fund
to cover the costs of administering the program or retained by
the private agency or other collection entity to cover the costs
of administering the collection services.
Subd. 7. [CONTRACTS.] (a) The commissioner of human
services may contract with the commissioner of revenue, private
agencies, or other collection entities to implement the
projects, charge fees, and exchange necessary information.
(b) The commissioner of human services may provide an
advance payment to the commissioner of revenue for collection
services to be repaid to the department of human services out of
subsequent collection fees.
(c) Summary reports of collections, fees, and other costs
charged shall be submitted monthly to the state office of child
support enforcement.
Subd. 8. [REMEDIES.] (a) The commissioner of revenue is
authorized to use the tax collection remedies in sections
270.06, clause (7), 270.69 to 270.72, and 290.92, subdivision
23, and tax return information to collect arrearages.
(b) Liens arising under paragraph (a) shall be perfected
under the provisions of section 270.69. The lien may be filed
as long as the time period allowed by law for collecting the
arrearages has not expired. The lien shall attach to all
property of the debtor within the state, both real and personal
under the provisions of section 270.69. The lien shall be
enforced under the provisions in section 270.69 relating to
state tax liens.
Sec. 15. Minnesota Statutes 1992, section 257.66,
subdivision 3, is amended to read:
Subd. 3. [JUDGMENT; ORDER.] The judgment or order shall
contain provisions concerning the duty of support, the custody
of the child, the name of the child, visitation privileges with
the child, the furnishing of bond or other security for the
payment of the judgment, or any other matter in the best
interest of the child. Custody and visitation and all
subsequent motions related to them shall proceed and be
determined under section 257.541. The remaining matters and all
subsequent motions related to them shall proceed and be
determined in accordance with chapter 518. The judgment or
order may direct the appropriate party to pay all or a
proportion of the reasonable expenses of the mother's pregnancy
and confinement, after consideration of the relevant facts,
including the relative financial means of the parents; the
earning ability of each parent; and any health insurance
policies held by either parent, or by a spouse or parent of the
parent, which would provide benefits for the expenses incurred
by the mother during her pregnancy and confinement. Remedies
available for the collection and enforcement of child support
apply to confinement costs and are considered additional child
support.
Sec. 16. Minnesota Statutes 1992, section 257.67,
subdivision 3, is amended to read:
Subd. 3. Willful failure to obey the judgment or order of
the court is a civil contempt of the court. All remedies for
the enforcement of judgments apply including those available
under chapters 518 and 518C and sections 518C.01 to 518C.36 and
256.871 to 256.878.
Sec. 17. Minnesota Statutes 1992, section 349A.08,
subdivision 8, is amended to read:
Subd. 8. [WITHHOLDING OF DELINQUENT STATE TAXES OR OTHER
DEBTS.] The director shall report the name, address, and social
security number of each winner of a lottery prize of $1,000 $600
or more to the department of revenue to determine whether the
person who has won the prize is delinquent in payment of state
taxes or owes a debt as defined in section 270A.03, subdivision
5. If the person is delinquent in payment of state taxes or
owes a debt as defined in section 270A.03, subdivision 5, the
director shall withhold the delinquent amount from the person's
prize for remittance to the department of revenue for payment of
the delinquent taxes or distribution to a claimant agency in
accordance with chapter 270A. Section 270A.10 applies to the
priority of claims.
Sec. 18. Minnesota Statutes 1992, section 484.74,
subdivision 1, as amended by Laws 1993, chapter 192, section 96,
if enacted, is amended to read:
Subdivision 1. [AUTHORIZATION.] Except for good cause
shown, In litigation involving an amount in excess of $7,500 in
controversy, the presiding judge shall may, by order, direct the
parties to enter nonbinding alternative dispute resolution.
Alternatives may include private trials, neutral expert
fact-finding, mediation, minitrials, and other forms of
alternative dispute resolution. The guidelines for the various
alternatives must be established by the presiding judge and must
emphasize early and inexpensive exchange of information and case
evaluation in order to facilitate settlement.
Sec. 19. Minnesota Statutes 1992, section 484.76,
subdivision 1, as amended by Laws 1993, chapter 192, section 97,
if enacted, is amended to read:
Subdivision 1. [GENERAL.] The supreme court shall
establish a statewide alternative dispute resolution program for
the resolution of civil cases filed with the courts. The
supreme court shall adopt rules governing practice, procedure,
and jurisdiction for alternative dispute resolution programs
established under this section. Except for matters involving
family law the rules shall require the use of nonbinding
alternative dispute resolution processes in all civil cases,
except for good cause shown by the presiding judge, and must
provide an equitable means for the payment of fees and expenses
for the use of alternative dispute resolution processes.
Sec. 20. Minnesota Statutes 1992, section 518.14, is
amended to read:
518.14 [COSTS AND DISBURSEMENTS AND ATTORNEY FEES.]
In a proceeding under this chapter, the court shall award
attorney fees, costs, and disbursements in an amount necessary
to enable a party to carry on or contest the proceeding,
provided it finds:
(1) that the fees are necessary for the good-faith
assertion of the party's rights in the proceeding and will not
contribute unnecessarily to the length and expense of the
proceeding;
(2) that the party from whom fees, costs, and disbursements
are sought has the means to pay them; and
(3) that the party to whom fees, costs, and disbursements
are awarded does not have the means to pay them.
Nothing in this section precludes the court from awarding, in
its discretion, additional fees, costs, and disbursements
against a party who unreasonably contributes to the length or
expense of the proceeding. Fees, costs, and disbursements
provided for in this section may be awarded at any point in the
proceeding, including a modification proceeding under sections
518.18 and 518.64. The court may adjudge costs and
disbursements against either party. The court may authorize the
collection of money awarded by execution, or out of property
sequestered, or in any other manner within the power of the
court. An award of attorney's fees made by the court during the
pendency of the proceeding or in the final judgment survives the
proceeding and if not paid by the party directed to pay the same
may be enforced as above provided or by a separate civil action
brought in the attorney's own name. If the proceeding is
dismissed or abandoned prior to determination and award of
attorney's fees, the court may nevertheless award attorney's
fees upon the attorney's motion. The award shall also survive
the proceeding and may be enforced in the same manner as last
above provided.
Sec. 21. Minnesota Statutes 1992, section 518.171,
subdivision 1, is amended to read:
Subdivision 1. [ORDER.] Unless the obligee has comparable
or better group dependent health insurance coverage available at
a more reasonable cost, (a) The court shall order the obligor
party with the better group dependent health and dental
insurance coverage to name the minor child as beneficiary on any
health and dental insurance plan that is comparable to or better
than a number two qualified plan and available to the obligor
party on a group basis or through an employer or union. "Health
insurance coverage" as used in this section does not include
medical assistance provided under chapter 256, 256B, or 256D.
(b) If the court finds that dependent health or dental
insurance is not available to the obligor or obligee on a group
basis or through an employer or union, or that the group insurer
is not accessible to the obligee, the court may require the
obligor (1) to obtain other dependent health or dental
insurance, or (2) to be liable for reasonable and necessary
medical or dental expenses of the child, or (3) to pay no less
than $50 per month to be applied to the medical and dental
expenses of the children or to the cost of health insurance
dependent coverage.
(c) If the court finds that the available dependent health
or dental insurance required to be obtained by the obligor does
not pay all the reasonable and necessary medical or dental
expenses of the child, or that the dependent health or dental
insurance available to the obligee does not pay all the
reasonable and necessary medical or dental expenses of the
child, including any existing or anticipated extraordinary
medical expenses, and the court finds that the obligor has the
financial ability to contribute to the payment of these medical
or dental expenses, the court shall require the obligor to be
liable for all or a portion of the medical or dental expenses of
the child not covered by the required health or dental
plan. Medical and dental expenses include, but are not limited
to, necessary orthodontia and eye care, including prescription
lenses.
(d) If the obligor is employed by a self-insured employer
subject only to the federal Employee Retirement Income Security
Act (ERISA) of 1974, and the insurance benefit plan meets the
above requirements, the court shall order the obligor to enroll
the dependents within 30 days of the court order effective date
or be liable for all medical and dental expenses occurring while
coverage is not in effect. If enrollment in the ERISA plan is
precluded by exclusionary clauses, the court shall order the
obligor to obtain other coverage or make payments as provided in
paragraph (b) or (c).
(e) Unless otherwise agreed by the parties and approved by
the court, if the court finds that the obligee is not receiving
public assistance for the child and has the financial ability to
contribute to the cost of medical and dental expenses for the
child, including the cost of insurance, the court shall order
the obligee and obligor to each assume a portion of these
expenses based on their proportionate share of their total net
income as defined in section 518.54, subdivision 6.
(f) Payments ordered under this section are subject to
section 518.611. An obligee who fails to apply payments
received to the medical expenses of the dependents may be found
in contempt of this order.
Sec. 22. Minnesota Statutes 1992, section 518.171,
subdivision 2, is amended to read:
Subd. 2. [SPOUSAL OR EX-SPOUSAL COVERAGE.] The court shall
require the obligor to provide dependent health and dental
insurance for the benefit of the obligee if it is available at
no additional cost to the obligor and in this case the
provisions of this section apply.
Sec. 23. Minnesota Statutes 1992, section 518.171, is
amended by adding a subdivision to read:
Subd. 2a. [EMPLOYER AND OBLIGOR NOTICE.] If an individual
is hired for employment, the employer shall request that the
individual disclose whether the individual has court-ordered
medical support obligations that are required by law to be
withheld from income and the terms of the court order, if any.
The employer shall request that the individual disclose whether
the individual has been ordered by a court to provide health and
dental dependent insurance coverage. The individual shall
disclose this information at the time of hiring. If an
individual discloses that medical support is required to be
withheld, the employer shall begin withholding according to the
terms of the order and pursuant to section 518.611, subdivision
8. If an individual discloses an obligation to obtain health
and dental dependent insurance coverage and coverage is
available through the employer, the employer shall make all
application processes known to the individual upon hiring and
enroll the employee and dependent in the plan pursuant to
subdivision 3.
Sec. 24. Minnesota Statutes 1992, section 518.171,
subdivision 3, is amended to read:
Subd. 3. [IMPLEMENTATION.] A copy of the court order for
insurance coverage shall be forwarded to the obligor's employer
or union by the obligee or the public authority responsible for
support enforcement only when ordered by the court or when the
following conditions are met:
(1) the obligor fails to provide written proof to the
obligee or the public authority, within 30 days of receiving the
effective notice date of the court order, that the insurance has
been obtained or that application for insurability has been
made;
(2) the obligee or the public authority serves written
notice of its intent to enforce medical support on the obligor
by mail at the obligor's last known post office address; and
(3) the obligor fails within 15 days after the mailing of
the notice to provide written proof to the obligee or the public
authority that the insurance coverage existed as of the date of
mailing.
The employer or union shall forward a copy of the order to
the health and dental insurance plan offered by the employer.
Sec. 25. Minnesota Statutes 1992, section 518.171,
subdivision 4, is amended to read:
Subd. 4. [EFFECT OF ORDER.] (a) The order is binding on
the employer or union and the health and dental insurance plan
when service under subdivision 3 has been made. Upon receipt of
the order, or upon application of the obligor pursuant to the
order, the employer or union and its health and dental insurance
plan shall enroll the minor child as a beneficiary in the group
insurance plan and withhold any required premium from the
obligor's income or wages. If more than one plan is offered by
the employer or union, the child shall be enrolled in the
insurance plan in which the obligor is enrolled or the least
costly plan otherwise available to the obligor that is
comparable to a number two qualified plan.
(b) An employer or union that willfully fails to comply
with the order is liable for any health or dental expenses
incurred by the dependents during the period of time the
dependents were eligible to be enrolled in the insurance
program, and for any other premium costs incurred because the
employer or union willfully failed to comply with the order. An
employer or union that fails to comply with the order is subject
to contempt under section 44 and is also subject to a fine of
$500 to be paid to the obligee or public authority. Fines paid
to the public authority are designated for child support
enforcement services.
(c) Failure of the obligor to execute any documents
necessary to enroll the dependent in the group health and dental
insurance plan will not affect the obligation of the employer or
union and group health and dental insurance plan to enroll the
dependent in a plan for which other eligibility requirements are
met. Information and authorization provided by the public
authority responsible for child support enforcement, or by the
custodial parent or guardian, is valid for the purposes of
meeting enrollment requirements of the health plan. The
insurance coverage for a child eligible under subdivision 5
shall not be terminated except as authorized in subdivision 5.
Sec. 26. Minnesota Statutes 1992, section 518.171,
subdivision 6, is amended to read:
Subd. 6. [INSURER REIMBURSEMENT; CORRESPONDENCE AND
NOTICE.] (a) The signature of the custodial parent of the
insured dependent is a valid authorization to the insurer for
purposes of processing an insurance reimbursement payment to the
provider of the medical services or to the custodial parent if
medical services have been prepaid by the custodial parent.
(b) The insurer shall send copies of all correspondence
regarding the insurance coverage to both parents. When an order
for dependent insurance coverage is in effect and the obligor's
employment is terminated, or the insurance coverage is
terminated, the insurer shall notify the obligee within ten days
of the termination date with notice of conversion privileges.
Sec. 27. Minnesota Statutes 1992, section 518.171,
subdivision 7, is amended to read:
Subd. 7. [RELEASE OF INFORMATION.] When an order for
dependent insurance coverage is in effect, the obligor's
employer or, union, or insurance agent shall release to the
obligee or the public authority, upon request, information on
the dependent coverage, including the name of the insurer.
Notwithstanding any other law, information reported pursuant to
section 268.121 shall be released to the public agency
responsible for support enforcement that is enforcing an order
for medical or dental insurance coverage under this section.
The public agency responsible for support enforcement is
authorized to release to the obligor's insurer or employer
information necessary to obtain or enforce medical support.
Sec. 28. Minnesota Statutes 1992, section 518.171,
subdivision 8, is amended to read:
Subd. 8. [OBLIGOR LIABILITY.] The (a) An obligor that who
fails to maintain the medical or dental insurance for the
benefit of the children as ordered shall be or fails to provide
other medical support as ordered is liable to the obligee for
any medical or dental expenses incurred from the effective date
of the court order, including health and dental insurance
premiums paid by the obligee because of the obligor's failure to
obtain coverage as ordered. Proof of failure to maintain
insurance or noncompliance with an order to provide other
medical support constitutes a showing of increased need by the
obligee pursuant to section 518.64 and provides a basis for a
modification of the obligor's child support order.
(b) Payments for services rendered to the dependents that
are directed to the obligor, in the form of reimbursement by the
insurer, must be endorsed over to and forwarded to the vendor or
custodial parent or public authority when the reimbursement is
not owed to the obligor. An obligor retaining insurance
reimbursement not owed to the obligor may be found in contempt
of this order and held liable for the amount of the
reimbursement. Upon written verification by the insurer of the
amounts paid to the obligor, the reimbursement amount is subject
to all enforcement remedies available under subdivision 10.
Sec. 29. Minnesota Statutes 1992, section 518.171,
subdivision 10, is amended 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, dental
coverage, all medical costs ordered by the court to be paid by
the obligor, including health and dental insurance premiums paid
by the obligee because of the obligor's failure to obtain
coverage as ordered or liabilities established pursuant to
subdivision 8, are additional child support.
Sec. 30. Minnesota Statutes 1992, section 518.24, is
amended to read:
518.24 [SECURITY; SEQUESTRATION; CONTEMPT.]
In all cases when maintenance or support payments are
ordered, the court may require sufficient security to be given
for the payment of them according to the terms of the order.
Upon neglect or refusal to give security, or upon failure to pay
the maintenance or support, the court may sequester the
obligor's personal estate and the rents and profits of real
estate of the obligor, and appoint a receiver of them. The
court may cause the personal estate and the rents and profits of
the real estate to be applied according to the terms of the
order. The obligor is presumed to have an income from a source
sufficient to pay the maintenance or support order. A child
support or maintenance order constitutes prima facie evidence
that the obligor has the ability to pay the award. If the
obligor disobeys the order, it is prima facie evidence of
contempt.
Sec. 31. Minnesota Statutes 1992, section 518.54,
subdivision 4, is amended to read:
Subd. 4. [SUPPORT MONEY; CHILD SUPPORT.] "Support
money" or "child support" means:
(1) an award in a dissolution, legal separation, or
annulment, or parentage proceeding for the care, support and
education of any child of the marriage or of the parties to
the annulment proceeding; or
(2) a contribution by parents ordered under section 256.87.
Sec. 32. Minnesota Statutes 1992, section 518.551,
subdivision 1, is amended to read:
Subdivision 1. [SCOPE; PAYMENT TO PUBLIC AGENCY.] (a) This
section applies to all proceedings involving an award of child
support.
(b) The court shall direct that all payments ordered for
maintenance and support be made to the public agency responsible
for child support enforcement so long as the obligee is
receiving or has applied for public assistance, or has applied
for child support and maintenance collection services. Public
authorities responsible for child support enforcement may act on
behalf of other public authorities responsible for child support
enforcement. This includes the authority to represent the legal
interests of or execute documents on behalf of the other public
authority in connection with the establishment, enforcement, and
collection of child support, maintenance, or medical support,
and collection on judgments. Amounts received by the public
agency responsible for child support enforcement greater than
the amount granted to the obligee shall be remitted to the
obligee.
Sec. 33. Minnesota Statutes 1992, 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
stipulation of the parties if each party is represented by
independent counsel, unless the stipulation does not meet the
conditions of paragraph (h). In other cases the court shall
determine and order child support in a specific dollar amount in
accordance with the guidelines and the other factors set forth
in paragraph (b) and any departure therefrom. The court may
also order the obligor to pay child support in the form of a
percentage share of the obligor's net bonuses, commissions, or
other forms of compensation, in addition to, or if the obligor
receives no base pay, in lieu of, an order for a specific dollar
amount.
(b) The court shall derive a specific dollar amount for
child support by multiplying 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 $550 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%
5,000
or the amount
in effect under
paragraph (k)
Guidelines for support for an obligor with a monthly income
of $4,001 or more in excess of the income limit currently in
effect under paragraph (k) shall be the same dollar amounts as
provided for in the guidelines for an obligor with a monthly
income of $4,000 equal to the limit in effect.
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 Health
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:
(1) the income of the obligor's spouse, but does include
in-kind payments received by the obligor in the course of
employment, self-employment, or operation of a business if the
payments reduce the obligor's living expenses; or
(2) compensation received by a party for employment in
excess of a 40-hour work week, provided that:
(i) support is nonetheless ordered in an amount at least
equal to the guidelines amount based on income not excluded
under this clause; and
(ii) the party demonstrates, and the court finds, that:
(A) the excess employment began after the filing of the
petition for dissolution;
(B) the excess employment reflects an increase in the work
schedule or hours worked over that of the two years immediately
preceding the filing of the petition;
(C) the excess employment is voluntary and not a condition
of employment;
(D) the excess employment is in the nature of additional,
part-time or overtime employment compensable by the hour or
fraction of an hour; and
(E) the party's compensation structure has not been changed
for the purpose of affecting a support or maintenance obligation.
The court shall review the work related and education
related child care costs of the custodial parent and shall
allocate the costs to each parent in proportion to each parent's
income after the transfer of child support, unless the
allocation would be substantially unfair to either parent. The
cost of child care for purposes of this section is determined by
subtracting the amount of any federal and state income tax
credits available to a parent from the actual cost paid for
child care. The amount allocated for child care expenses is
considered child support.
(b) (c) In addition to the child support guidelines, the
court shall take into consideration the following factors in
setting or modifying child support or in determining whether to
deviate from the guidelines:
(1) all earnings, income, and resources of the parents,
including real and personal property, but excluding income from
excess employment of the obligor or obligee that meets the
criteria of paragraph (a) (b), clause (2)(ii);
(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;
(5) which parent receives the income taxation dependency
exemption and what financial benefit the parent receives from
it; and
(6) (5) the parents' debts as provided in paragraph
(c) (d).
(c) (d) 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.
(d) (e) Any schedule prepared under paragraph (c) (d),
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.
(e) (f) 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.
(f) Where (g) If payment of debt is ordered pursuant to
this section, the payment shall be ordered to be in the nature
of child support.
(g) (h) 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.
(h) (i) The guidelines in this subdivision are a rebuttable
presumption and shall be used in all cases when establishing or
modifying child support. If the court does not deviate from the
guidelines, the court shall make written findings concerning the
amount of the obligor's income used as the basis for the
guidelines calculation and any other significant evidentiary
factors affecting the determination of child support. If the
court deviates from the guidelines, the court shall make written
findings giving the reasons for the deviation and shall
specifically address the criteria in paragraph (b) and how the
deviation serves the best interest of the child. The provisions
of this paragraph apply whether or not the parties are each
represented by independent counsel and have entered into a
written agreement. The court shall review stipulations
presented to it for conformity to the guidelines and the court
is not required to conduct a hearing, but the parties shall
provide the documentation of earnings required under subdivision
5b.
(j) If the child support payments are assigned to the
public agency under section 256.74, the court may not deviate
downward from the child support guidelines unless the court
specifically finds that the failure to deviate downward would
impose an extreme hardship on the obligor.
(k) The dollar amount of the income limit for application
of the guidelines must be adjusted on July 1 of every
even-numbered year to reflect cost-of-living changes. The
supreme court shall select the index for the adjustment from the
indices listed in section 518.641. The state court
administrator shall make the changes in the dollar amount
required by this paragraph available to courts and the public on
or before April 30 of the year in which the amount is to change.
Sec. 34. Minnesota Statutes 1992, section 518.551,
subdivision 5b, is amended to read:
Subd. 5b. [DETERMINATION OF INCOME.] (a) The parties shall
timely serve and file documentation of earnings and income. When
there is a prehearing conference, the court must receive the
documentation of income at least ten days prior to the
prehearing conference. Documentation of earnings and income
also includes, but is not limited to, pay stubs for the most
recent three months, employer statements, or statement of
receipts and expenses if self-employed. Documentation of
earnings and income also includes copies of each parent's most
recent federal tax returns, including W-2 forms, 1099 forms,
unemployment compensation statements, workers' compensation
statements, and all other documents evidencing income as
received that provide verification of income over a longer
period.
(b) In addition to the requirements of paragraph (a), at
any time after an action seeking child support has been
commenced or when a child support order is in effect, a party or
the public authority may require the other party to give them a
copy of the party's most recent federal tax returns that were
filed with the Internal Revenue Service. The party shall
provide a copy of the tax returns within 30 days of receipt of
the request unless the request is not made in good faith. A
request under this paragraph may not be made more than once
every two years, in the absence of good cause.
(c) If a parent under the jurisdiction of the court does
not appear at a court hearing after proper notice of the time
and place of the hearing, the court shall set income for that
parent based on credible evidence before the court or in
accordance with paragraph (c) (d). Credible evidence may
include documentation of current or recent income, testimony of
the other parent concerning recent earnings and income levels,
and the parent's wage reports filed with the Minnesota
department of jobs and training under section 268.121.
(c) (d) If the court finds that a parent is voluntarily
unemployed or underemployed, child support shall be calculated
based on a determination of imputed income. A parent is not
considered voluntarily unemployed or underemployed upon a
showing by the parent that the unemployment or underemployment:
(1) is temporary and will ultimately lead to an increase in
income; or (2) represents a bona fide career change that
outweighs the adverse effect of that parent's diminished income
on the child. Imputed income means the estimated earning
ability of a parent based on the parent's prior earnings
history, education, and job skills, and on availability of jobs
within the community for an individual with the parent's
qualifications. If the court is unable to determine or estimate
the earning ability of a parent, the court may calculate child
support based on full-time employment of 40 hours per week at
the federal minimum wage or the Minnesota minimum wage,
whichever is higher. If a parent is a recipient of public
assistance under sections 256.72 to 256.87 or chapter 256D, or
is physically or mentally incapacitated, it shall be presumed
that the parent is not voluntarily unemployed or underemployed.
Sec. 35. Minnesota Statutes 1992, section 518.551, is
amended by adding a subdivision to read:
Subd. 5d. [EDUCATION TRUST FUND.] The parties may agree to
designate a sum of money above any court ordered child support
as a trust fund for the costs of post-secondary education.
Sec. 36. Minnesota Statutes 1992, section 518.551,
subdivision 7, is amended to read:
Subd. 7. [SERVICE FEE.] When the public agency responsible
for child support enforcement provides child support collection
services either to a public assistance recipient or to a party
who does not receive public assistance, the public agency may
upon written notice to the obligor charge a monthly collection
fee equivalent to the full monthly cost to the county of
providing collection services, in addition to the amount of the
child support which was ordered by the court. The fee shall be
deposited in the county general fund. The service fee assessed
is limited to ten percent of the monthly court ordered child
support and shall not be assessed to obligors who are current in
payment of the monthly court ordered child support.
An application fee not to exceed of $25 shall be paid by
the person who applies for child support and maintenance
collection services, except persons who transfer from public
assistance to nonpublic assistance status. Fees assessed by
state and federal tax agencies for collection of overdue support
owed to or on behalf of a person not receiving public assistance
must be imposed on the person for whom these services are
provided. The public authority upon written notice to the
obligee shall assess a fee of $25 to the person not receiving
public assistance for each successful federal tax interception.
The fee must be withheld prior to the release of the funds
received from each interception and deposited in the general
fund.
However, the limitations of this subdivision on the
assessment of fees shall not apply to the extent inconsistent
with the requirements of federal law for receiving funds for the
programs under Title IV-A and Title IV-D of the Social Security
Act, United States Code, title 42, sections 601 to 613 and
United States Code, title 42, sections 651 to 662.
Sec. 37. Minnesota Statutes 1992, section 518.551,
subdivision 10, is amended to read:
Subd. 10. [ADMINISTRATIVE PROCESS FOR CHILD AND MEDICAL
SUPPORT ORDERS.] (a) An administrative process is established to
obtain, modify, and enforce child and medical support orders and
maintenance.
The commissioner of human services may designate counties
to Effective July 1, 1994, all counties shall participate in the
administrative process established by this section. All
proceedings for obtaining, modifying, or enforcing child and
medical support orders and maintenance and adjudicating
uncontested parentage proceedings, are required to be conducted
in counties designated by the commissioner of human services in
which the county human services agency is a party or
represents provides services to a party or parties to the
action. These actions must be conducted by an administrative
law judge from the office of administrative hearings, except for
the following proceedings:
(1) adjudication of contested parentage;
(2) motions to set aside a paternity adjudication or
declaration of parentage;
(3) evidentiary hearing on contempt motions; and
(4) motions to sentence or to revoke the stay of a jail
sentence in contempt proceedings.
(b) An administrative law judge may hear a stipulation
reached on a contempt motion, but any stipulation that involves
a finding of contempt and a jail sentence, whether stayed or
imposed, shall require the review and signature of a district
judge.
(c) For the purpose of this process, all powers, duties,
and responsibilities conferred on judges of the district court
to obtain and enforce child and medical support and maintenance
obligations, subject to the limitation set forth herein, are
conferred on the administrative law judge conducting the
proceedings, including the power to issue orders to show cause
and to issue bench warrants for failure to appear.
(d) Before implementing the process in a county, the chief
administrative law judge, the commissioner of human services,
the director of the county human services agency, the county
attorney, and the county court administrator, and county sheriff
shall jointly establish procedures and the county shall provide
hearing facilities for implementing this process in a county.
(e) Nonattorney employees of the public agency responsible
for child support in the counties designated by the
commissioner, acting at the direction of the county attorney,
may prepare, sign, serve, and file complaints and motions for
obtaining, modifying, or enforcing child and medical support
orders and maintenance and related documents, appear at
prehearing conferences, and participate in proceedings before an
administrative law judge. This activity shall not be considered
to be the unauthorized practice of law.
(f) The hearings shall be conducted under the rules of the
office of administrative hearings, Minnesota Rules, parts
1400.7100 to 1400.7500, 1400.7700, and 1400.7800, as adopted by
the chief administrative law judge. All other aspects of the
case, including, but not limited to, pleadings, discovery, and
motions, shall be conducted under the rules of family court, the
rules of civil procedure, and chapter 518. The administrative
law judge shall make findings of fact, conclusions, and a final
decision and issue an order. Orders issued by an administrative
law judge are enforceable by the contempt powers of the county
and district courts.
(g) The decision and order of the administrative law judge
is appealable to the court of appeals in the same manner as a
decision of the district court.
(h) The commissioner of human services shall distribute
money for this purpose to counties to cover the costs of the
administrative process, including the salaries of administrative
law judges. If available appropriations are insufficient to
cover the costs, the commissioner shall prorate the amount among
the counties.
Sec. 38. Minnesota Statutes 1992, section 518.551,
subdivision 12, is amended to read:
Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] Upon petition
of an obligee or public agency responsible for child support
enforcement, if the court finds that the obligor is or may be
licensed by a licensing board listed in section 214.01 or other
state agency or board that issues an occupational license and
the obligor is in arrears in court-ordered child support
payments, the court may direct the licensing board or other
licensing agency to conduct a hearing under section 214.101
concerning suspension of the obligor's license. If the obligor
is a licensed attorney, the court may report the matter to the
lawyers professional responsibility board for appropriate action
in accordance with the rules of professional conduct. The
remedy under this subdivision is in addition to any other
enforcement remedy available to the court.
Sec. 39. [518.561] [EMPLOYER QUESTIONNAIRE AND NOTICE.]
The commissioner of human services shall prepare a
questionnaire for use by employers in obtaining information from
employees for purposes of complying with sections 518.171,
subdivision 2a, and 518.611, subdivision 8. The commissioner
shall arrange for public dissemination of the questionnaires and
notice to employers of the requirements of these provisions.
Sec. 40. Minnesota Statutes 1992, section 518.57,
subdivision 1, is amended to read:
Subdivision 1. [ORDER.] Upon a decree of dissolution,
legal separation, or annulment, the court shall make a further
order which is just and proper concerning the maintenance of the
minor children as provided by section 518.551, and for the
maintenance of any child of the parties as defined in section
518.54, as support money, and. The court may make the same any
child support order a lien or charge upon the property of
the parties to the proceeding, or either of them obligor, either
at the time of the entry of the judgment or by subsequent order
upon proper application.
Sec. 41. Minnesota Statutes 1992, section 518.57, is
amended by adding a subdivision to read:
Subd. 4. [OTHER CUSTODIANS.] If a child resides with a
person other than a parent and the court approves of the custody
arrangement, the court may order child support payments to be
made to the custodian regardless of whether the person has legal
custody.
Sec. 42. Minnesota Statutes 1992, section 518.611,
subdivision 4, is amended to read:
Subd. 4. [EFFECT OF ORDER.] (a) Notwithstanding any law to
the contrary, the order is binding on the employer, trustee,
payor of the funds, or financial institution when service under
subdivision 2 has been made. Withholding must begin no later
than the first pay period that occurs after 14 days following
the date of the notice. In the case of a financial institution,
preauthorized transfers must occur in accordance with a
court-ordered payment schedule. An employer, payor of funds, or
financial institution in this state is required to withhold
income according to court orders for withholding issued by other
states or territories. The payor shall withhold from the income
payable to the obligor the amount specified in the order and
amounts required under subdivision 2 and section 518.613 and
shall remit, within ten days of the date the obligor is paid the
remainder of the income, the amounts withheld to the public
authority. The payor shall identify on the remittance
information the date the obligor is paid the remainder of the
income. The obligor is considered to have paid the amount
withheld as of the date the obligor received the remainder of
the income. The financial institution shall execute
preauthorized transfers from the deposit accounts of the obligor
in the amount specified in the order and amounts required under
subdivision 2 as directed by the public authority responsible
for child support enforcement.
(b) Employers may combine all amounts withheld from one pay
period into one payment to each public authority, but shall
separately identify each obligor making payment. Amounts
received by the public authority which are in excess of public
assistance expended for the party or for a child shall be
remitted to the party.
(c) An employer shall not discharge, or refuse to hire, or
otherwise discipline an employee as a result of a wage or salary
withholding authorized by this section. The employer or other
payor of funds shall be liable to the obligee for any amounts
required to be withheld. A financial institution is liable to
the obligee if funds in any of the obligor's deposit accounts
identified in the court order equal the amount stated in the
preauthorization agreement but are not transferred by the
financial institution in accordance with the agreement. An
employer or other payor of funds that fails to withhold or
transfer funds in accordance with this section is also liable to
the obligee for interest on the funds at the rate applicable to
judgments under section 549.09, computed from the date the funds
were required to be withheld or transferred. An employer or
other payor of funds is liable for reasonable attorney fees of
the obligee or public authority incurred in enforcing the
liability under this paragraph. An employer or other payor of
funds that has failed to comply with the requirements of this
section is subject to contempt sanctions under section 44.
Sec. 43. Minnesota Statutes 1992, 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, enforced by the
public authority, 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 and any fees assessed by the public authority responsible
for child support enforcement must be withheld from the income,
regardless of source, of the person obligated to pay the support.
Sec. 44. [518.615] [EMPLOYER CONTEMPT.]
Subdivision 1. [ORDERS BINDING.] Income withholding or
medical support orders issued pursuant to sections 518.171,
518.611, and 518.613 are binding on the employer, trustee, or
other payor of funds after the order and notice of income
withholding or enforcement of medical support has been served on
the employer, trustee, or payor of funds.
Subd. 2. [CONTEMPT ACTION.] An obligee or the public
agency responsible for child support enforcement may initiate a
contempt action against an employer, trustee, or payor of funds,
within the action that created the support obligation, by
serving an order to show cause upon the employer, trustee, or
payor of funds.
The employer, trustee, or payor of funds is presumed to be
in contempt:
(1) if the employer, trustee, or payor of funds has
intentionally failed to withhold support after receiving the
order and notice of income withholding or notice of enforcement
of medical support; or
(2) upon presentation of pay stubs or similar documentation
showing the employer, trustee, or payor of funds withheld
support and demonstration that the employer, trustee, or payor
of funds intentionally failed to remit support to the agency
responsible for child support enforcement.
Subd. 3. [LIABILITY.] The employer, trustee, or payor of
funds is liable to the obligee or the agency responsible for
child support enforcement for any amounts required to be
withheld that were not paid. The court may enter judgment
against the employer, trustee, or payor of funds for support not
withheld or remitted. The court may also impose contempt
sanctions under chapter 588.
Sec. 45. Minnesota Statutes 1992, section 518.64,
subdivision 1, is amended to read:
Subdivision 1. After an order for maintenance or support
money, temporary or permanent, or for the appointment of
trustees to receive property awarded as maintenance or support
money, the court may from time to time, on motion of either of
the parties, a copy of which is served on the public authority
responsible for child support enforcement if payments are made
through it, or on motion of the public authority responsible for
support enforcement, modify the order respecting the amount of
maintenance or support money, and the payment of it, and also
respecting the appropriation and payment of the principal and
income of property held in trust, and may make an order
respecting these matters which it might have made in the
original proceeding, except as herein otherwise provided. A
party or the public authority also may bring a motion for
contempt of court if the obligor is in arrears in support or
maintenance payments.
Sec. 46. Minnesota Statutes 1992, section 518.64,
subdivision 2, is amended to read:
Subd. 2. [MODIFICATION.] (a) The terms of an order
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 or the child or children that are the
subject of these proceedings; (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; (5) extraordinary medical expenses of the child not
provided for under section 518.171; or (6) the addition or
elimination of work-related or education-related child care
expenses of the obligee or a substantial increase or decrease in
existing work-related or education-related child care expenses.
It is presumed that there has been a substantial change in
circumstances under clause (1), (2), or (4) and the terms of a
current support order shall be rebuttably presumed to be
unreasonable and unfair if the application of the child support
guidelines in section 518.551, subdivision 5, to the current
circumstances of the parties results in a calculated court order
that is at least 20 percent and at least $50 per month higher or
lower than the current support order.
(b) On a motion for modification of maintenance, including
a motion for the extension of the duration of a maintenance
award, 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:
(1) shall apply section 518.551, subdivision 5, and shall
not consider the financial circumstances of each party's spouse,
if any; and
(2) shall not consider compensation received by a party for
employment in excess of a 40-hour work week, provided that the
party demonstrates, and the court finds, that:
(i) the excess employment began after entry of the existing
support order;
(ii) the excess employment is voluntary and not a condition
of employment;
(iii) the excess employment is in the nature of additional,
part-time employment, or overtime employment compensable by the
hour or fractions of an hour;
(iv) the party's compensation structure has not been
changed for the purpose of affecting a support or maintenance
obligation;
(v) in the case of an obligor, current child support
payments are at least equal to the guidelines amount based on
income not excluded under this clause; and
(vi) in the case of an obligor who is in arrears in child
support payments to the obligee, any net income from excess
employment must be used to pay the arrearages until the
arrearages are paid in full.
(c) A modification of support or maintenance may be made
retroactive only with respect to any period during which the
petitioning party has pending a motion for modification but only
from the date of service of notice of the motion on the
responding party and on the public authority if public
assistance is being furnished or the county attorney is the
attorney of record. However, modification may be applied to an
earlier period if the court makes express findings that the
party seeking modification was precluded from serving a motion
by reason of a significant physical or mental disability, a
material misrepresentation of another party, or fraud upon the
court and that the party seeking modification, when no longer
precluded, promptly served a motion.
(d) 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.
(e) The court need not hold an evidentiary hearing on a
motion for modification of maintenance or support.
(f) Section 518.14 shall govern the award of attorney fees
for motions brought under this subdivision.
Sec. 47. Minnesota Statutes 1992, section 518.64,
subdivision 5, is amended to read:
Subd. 5. [FORM.] The department of human services shall
prepare and make available to courts, obligors and persons to
whom child support is owed a form to be submitted by the obligor
or the person to whom child support is owed in support of a
motion for a modification of an order for support or maintenance
or for contempt of court. The rulemaking provisions of chapter
14 shall not apply to the preparation of the form.
Sec. 48. Minnesota Statutes 1992, section 518.64,
subdivision 6, is amended to read:
Subd. 6. [EXPEDITED PROCEDURE.] (a) The public authority
may seek a modification of the child support order in accordance
with the rules of civil procedure or under the expedited
procedures in this subdivision.
(b) The public authority may serve the following documents
upon the obligor either by certified mail or in the manner
provided for service of a summons other pleadings under the
rules of civil procedure:
(i) a notice of its application for modification of the
obligor's support order stating the amount and effective date of
the proposed modification which date shall be no sooner than 30
days from the date of service;
(ii) an affidavit setting out the basis for the
modification under subdivision 2, including evidence of the
current income of the parties;
(iii) any other documents the public authority intends to
file with the court in support of the modification;
(iv) the proposed order;
(v) notice to the obligor that if the obligor fails to move
the court and request a hearing on the issue of modification of
the support order within 30 days of service of the notice of
application for modification, the public authority will likely
obtain an order, ex parte, modifying the support order; and
(vi) an explanation to the obligor of how a hearing can be
requested, together with a motion for review form that the
obligor can complete and file with the court to request a
hearing.
(c) If the obligor moves the court for a hearing, any
modification must be stayed until the court has had the
opportunity to determine the issue. Any modification ordered by
the court is effective on the date set out in the notice of
application for modification, but no earlier than 30 days
following the date the obligor was served.
(d) If the obligor fails to move the court for hearing
within 30 days of service of the notice, the public authority
shall file with the court a copy of the notice served on the
obligor as well as all documents served on the obligor, proof of
service, and a proposed order modifying support.
(e) If, following judicial review, the court determines
that the procedures provided for in this subdivision have been
followed and the requested modification is appropriate, the
order shall be signed ex parte and entered.
(f) Failure of the court to enter an order under this
subdivision does not prejudice the right of the public authority
or either party to seek modification in accordance with the
rules of civil procedure.
(g) The supreme court shall develop standard forms for the
notice of application of modification of the support order, the
supporting affidavit, the obligor's responsive motion, and
proposed order granting the modification.
Sec. 49. [518.585] [NOTICE OF INTEREST ON LATE CHILD
SUPPORT.]
Any judgment or decree of dissolution or legal separation
containing a requirement of child support and any determination
of parentage, order under chapter 518C, order under section
256.87, or order under section 260.251 must include a notice to
the parties that section 548.091, subdivision 1a, provides for
interest to begin accruing on a payment or installment of child
support whenever the unpaid amount due is greater than the
current support due.
Sec. 50. Minnesota Statutes 1992, section 548.09,
subdivision 1, is amended to read:
Subdivision 1. [DOCKETING; SURVIVAL OF JUDGMENT.] Except
as provided in section 548.091, every judgment requiring the
payment of money shall be docketed by the court administrator
upon its entry. Upon a transcript of the docket being filed
with the court administrator in any other county, the court
administrator shall also docket it. From the time of docketing
the judgment is a lien, in the amount unpaid, upon all real
property in the county then or thereafter owned by the judgment
debtor, but it is not a lien upon registered land unless it is
also filed pursuant to sections 508.63 and 508A.63. The
judgment survives, and the lien continues, for ten years after
its entry. Child support judgments may be renewed by service of
notice upon the debtor. Service shall be by certified mail at
the last known address of the debtor or in the manner provided
for the service of civil process. Upon the filing of the notice
and proof of service the court administrator shall renew the
judgment for child support without any additional filing fee.
Sec. 51. Minnesota Statutes 1992, section 548.091,
subdivision 1a, is amended to read:
Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.]
Any payment or installment of support required by a judgment or
decree of dissolution or legal separation, determination of
parentage, an order under chapter 518C, an order under section
256.87, or an order under section 260.251, that is not paid or
withheld from the obligor's income as required under section
518.611 or 518.613, is a judgment by operation of law on and
after the date it is due and is entitled to full faith and
credit in this state and any other state. Interest accrues from
the date the judgment on the payment or installment is entered
and docketed under subdivision 3a, unpaid amount due is greater
than the current support due at the annual rate provided in
section 549.09, subdivision 1, plus two percent, not to exceed
an annual rate of 18 percent. A payment or installment of
support that becomes a judgment by operation of law between the
date on which a party served notice of a motion for modification
under section 518.64, subdivision 2, and the date of the court's
order on modification may be modified under that subdivision.
Sec. 52. Minnesota Statutes 1992, section 548.091,
subdivision 3a, is amended to read:
Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT
JUDGMENT.] Upon receipt of the documents filed under subdivision
2a, the court administrator shall enter and docket the judgment
in the amount of the default specified in the affidavit of
default. From the time of docketing, the judgment is a lien
upon all the real property in the county owned by the judgment
debtor. The judgment survives and the lien continues for ten
years after the date the judgment was docketed. Child support
judgments may be renewed by service of notice upon the debtor.
Service shall be by certified mail at the last known address of
the debtor or in the manner provided for the service of civil
process. Upon the filing of the notice and proof of service the
court administrator shall renew the judgment for child support
without any additional filing fee.
Sec. 53. Minnesota Statutes 1992, section 588.20, is
amended to read:
588.20 [CRIMINAL CONTEMPTS.]
Every person who shall commit a contempt of court, of any
one of the following kinds, shall be guilty of a misdemeanor:
(1) Disorderly, contemptuous, or insolent behavior,
committed during the sitting of the court, in its immediate view
and presence, and directly tending to interrupt its proceedings,
or to impair the respect due to its authority;
(2) Behavior of like character in the presence of a
referee, while actually engaged in a trial or hearing, pursuant
to an order of court, or in the presence of a jury while
actually sitting for the trial of a cause, or upon an inquest or
other proceeding authorized by law;
(3) Breach of the peace, noise, or other disturbance
directly tending to interrupt the proceedings of a court, jury,
or referee;
(4) Willful disobedience to the lawful process or other
mandate of a court;
(5) Resistance willfully offered to its lawful process or
other mandate;
(6) Contumacious and unlawful refusal to be sworn as a
witness, or, after being sworn, to answer any legal and proper
interrogatory;
(7) Publication of a false or grossly inaccurate report of
its proceedings; or
(8) Willful failure to pay court-ordered child support when
the obligor has the ability to pay.
No person shall be punished as herein provided for
publishing a true, full, and fair report of a trial, argument,
decision, or other proceeding had in court.
Sec. 54. Minnesota Statutes 1992, section 609.375,
subdivision 1, is amended to read:
Subdivision 1. Whoever is legally obligated to provide
care and support to a spouse who is in necessitous
circumstances, or child, whether or not its custody has been
granted to another, and knowingly omits and fails without lawful
excuse to do so is guilty of nonsupport of the spouse or child,
as the case may be a misdemeanor, and upon conviction thereof
may be sentenced to imprisonment for not more than 90 days or to
payment of a fine of not more than $300 $700, or both.
Sec. 55. Minnesota Statutes 1992, section 609.375,
subdivision 2, is amended to read:
Subd. 2. If the knowing omission and failure without
lawful excuse to provide care and support to a spouse, a minor
child, or a pregnant wife violation of subdivision 1 continues
for a period in excess of 90 days the person is guilty of a
felony gross misdemeanor and may be sentenced to imprisonment
for not more than five years one year or to payment of a fine of
not more than $3,000, or both.
Sec. 56. [INCOME WITHHOLDING; SINGLE CHECK SYSTEM CENTRAL
DEPOSITORY OR OTHER FISCAL AGENT.]
The commissioner of human services, in consultation with
county child support enforcement agencies and other persons with
relevant expertise, shall study and make recommendations on:
(1) the feasibility of establishing a single check system under
which employers who are implementing income withholding may make
one combined payment for payments due to public authorities to
one public authority or to the commissioner of human services;
and (2) the feasibility of establishing a central depository or
designating a fiscal agent for receipt of child support
payments. The commissioner shall estimate the cost of the
single check system and use of a central depository or fiscal
agent and the level of fees that would be necessary to make them
self-supporting. The commissioner shall report to the
legislature by January 15, 1995.
Sec. 57. [INCOME SHARES FORMULA; JOINT AND SPLIT CUSTODY
CHILD SUPPORT.]
The commissioner of human services advisory committee for
child support enforcement shall study and make recommendations
on:
(1) the feasibility of converting from the current child
support guidelines to an income shares formula for determining
child support; and
(2) guidelines or formulas for the computation of child
support in cases involving joint physical or split custody. The
commissioner shall perform data analyses of any guidelines or
formulas being recommended by the committee to determine the
impact of the formula on child support based on different income
levels and the number of children involved.
The commissioner shall not contract with any person outside
the department to perform the study. The commissioner shall
report the findings and recommendations of the committee to the
legislature by January 15, 1994.
Sec. 58. [ADMINISTRATIVE PROCESS FOR CHILD SUPPORT.]
The commissioner of human services, in consultation with
the commissioner's advisory committee for child support
enforcement, shall develop and implement a plan to restructure
the administrative process for setting, modifying, and enforcing
child support under Minnesota Statutes, section 518.551,
subdivision 10. The plan shall implement a state-administered
administrative process that is simple, streamlined, informal,
uniform throughout the state, and accessible to parties without
counsel no later than July 1, 1994.
Sec. 59. [PURPOSE.]
The purpose of the amendment to Minnesota Statutes 1992,
section 518.64, subdivision 2, paragraph (a), dealing with the
presumption of a substantial change in circumstances and
self-limited income, is to conform to Code of Federal
Regulations, title 42, section 303.8(d)(2).
Sec. 60. [REPEALER.]
(a) Minnesota Statutes 1992, section 256.979, is repealed.
(b) Minnesota Statutes 1992, section 609.37, is repealed.
Sec. 61. [EFFECTIVE DATE; APPLICATION.]
(a) Except as otherwise provided in this section, this act
is effective August 1, 1993.
(b) Sections 8 to 14 and 56 to 58 are effective July 1,
1993.
(c) Sections 21, 22, and 33 apply to child support and
medical support orders entered or modified on or after the
effective date.
(d) Sections 54, 55, and 60, paragraph (b), are effective
August 1, 1993, and apply to crimes committed on or after that
date.
(d) Sections 36 and 37 are effective January 1, 1994.
Presented to the governor May 20, 1993
Signed by the governor May 24, 1993, 12:14 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes