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Office of the Revisor of Statutes

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

                            CHAPTER 405-S.F.No. 3116 
                  An act relating to creditors' remedies; regulating 
                  garnishments, executions, and levies; revising forms; 
                  regulating service; defining terms; providing 
                  notification; increasing the dollar amount of 
                  attorneys' execution levies; making various 
                  housekeeping and technical changes; amending Minnesota 
                  Statutes 1998, sections 550.051, subdivision 1; 
                  550.143, subdivisions 7 and 8; 551.01; 551.04, 
                  subdivisions 4, 6, and 9; 551.05, subdivision 5; 
                  551.06, subdivision 9; 571.72, subdivision 2; 571.74; 
                  571.79; 571.82, subdivision 1; and 571.914, 
                  subdivision 2; Minnesota Statutes 1999 Supplement, 
                  sections 550.136, subdivision 6; 550.143, subdivision 
                  3; 551.05, subdivision 1a; 551.06, subdivision 10; 
                  571.912; and 571.925; proposing coding for new law in 
                  Minnesota Statutes, chapters 551; and 571; repealing 
                  Minnesota Statutes 1998, section 571.80. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 550.051, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TIME PERIODS.] The writ of execution 
        expires 180 days after its issuance by the court administrator.  
        A levy that is served with a writ of execution that has expired 
        is void.  If the officer or creditor's attorney having the writ 
        levies upon property or earnings before the expiration of 180 
        days, the officer or creditor's attorney may retain the writ 
        until the officer sells the property or completes the levy upon 
        earnings in the manner prescribed by law.  Any levy properly 
        served in accordance with this chapter or chapter 551 prior to 
        the expiration of the writ shall be processed in accordance with 
        the appropriate statutory section until completion, without 
        regard for the date of expiration of the writ.  Upon a demand of 
        the judgment creditor or the creditor's attorney within 180 
        days, the officer shall pay to the judgment creditor or the 
        judgment creditor's attorney all money collected upon execution 
        after deducting the officer's fees.  Upon expiration of the writ 
        or full satisfaction of the judgment, if earlier, the officer 
        shall make a full inventory of the property levied on and return 
        it with the execution.  
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        550.136, subdivision 6, is amended to read: 
           Subd. 6.  [EARNINGS EXEMPTION NOTICE.] Before the first 
        levy on earnings under this chapter, the judgment creditor shall 
        serve upon the judgment debtor no less than ten days before the 
        service of the writ of execution, a notice that the writ of 
        execution may be served on the judgment debtor's employer.  The 
        notice must:  (1) be substantially in the form set forth below; 
        (2) be served personally, in the manner of a summons and 
        complaint, or by first class mail to the last known address of 
        the judgment debtor; (3) inform the judgment debtor that an 
        execution levy may be served on the judgment debtor's employer 
        in ten days, and that the judgment debtor may, within that time, 
        cause to be served on the judgment creditor a signed statement 
        under penalties of perjury asserting an entitlement to an 
        exemption from execution; (4) inform the judgment debtor of the 
        earnings exemptions contained in section 550.37, subdivision 14; 
        and (5) advise the judgment debtor of the relief set forth in 
        this chapter to which the debtor may be entitled if a judgment 
        creditor in bad faith disregards a valid claim and the fee, 
        costs, and penalty that may be assessed against a judgment 
        debtor who in bad faith falsely claims an exemption or in bad 
        faith takes action to frustrate the execution process.  The 
        notice requirement of this subdivision does not apply to a levy 
        on earnings being retained by an employer pursuant to a 
        garnishment previously served in compliance with chapter 571.  
           The ten-day notice informing a judgment debtor that a writ 
        of execution may be used to levy the earnings of an individual 
        must be substantially in the following form: 
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF .............         ........... JUDICIAL DISTRICT
        .............(Judgment Creditor)
        against
                                              EXECUTION EXEMPTION 
        .............(Judgment Debtor)        NOTICE AND NOTICE OF 
        and                                   INTENT TO LEVY ON EARNINGS 
                                              WITHIN TEN DAYS
        .............(Third Party)
           PLEASE TAKE NOTICE that a levy may be served upon your 
        employer or other third parties, without any further court 
        proceedings or notice to you, ten days or more from the date 
        hereof.  Your earnings are completely exempt from execution levy 
        if you are now a recipient of relief based on need, if you have 
        been a recipient of relief within the last six months, or if you 
        have been an inmate of a correctional institution in the last 
        six months. 
           Relief based on need includes Minnesota Family Investment 
        Program (MFIP), Emergency Assistance (EA), Work First, Medical 
        Assistance (MA), General Assistance (GA), General Assistance 
        Medical Care (GAMC), Emergency General Assistance (EGA), 
        Minnesota Supplemental Aid (MSA), MSA Emergency Assistance 
        (MSA-EA), Supplemental Security Income (SSI), and Energy 
        Assistance. 
           If you wish to claim an exemption, you should fill out the 
        appropriate form below, sign it, and send it to the judgment 
        creditor's attorney. 
           You may wish to contact the attorney for the judgment 
        creditor in order to arrange for a settlement of the debt or 
        contact an attorney to advise you about exemptions or other 
        rights. 
                                   PENALTIES
           (1) Be advised that even if you claim an exemption, an 
           execution levy may still be served on your employer.  If 
           your earnings are levied on after you claim an exemption, 
           you may petition the court for a determination of your 
           exemption.  If the court finds that the judgment creditor 
           disregarded your claim of exemption in bad faith, you will 
           be entitled to costs, reasonable attorney fees, actual 
           damages, and an amount not to exceed $100. 
           (2) HOWEVER, BE WARNED if you claim an exemption, the 
           judgment creditor can also petition the court for a 
           determination of your exemption, and if the court finds 
           that you claimed an exemption in bad faith, you will be 
           assessed costs and reasonable attorney's fees plus an 
           amount not to exceed $100. 
           (3) If after receipt of this notice, you in bad faith take 
           action to frustrate the execution levy, thus requiring the 
           judgment creditor to petition the court to resolve the 
           problem, you will be liable to the judgment creditor for 
           costs and reasonable attorney's fees plus an amount not to 
           exceed $100. 
        DATED:  ............           ........................
                                       (Attorney for Judgment Creditor)
                                       ........................
                                       Address
                                       ........................
                                       Telephone
                    JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
           I hereby claim that my earnings are exempt from execution 
        because: 
           (1) I am presently a recipient of relief based on need. 
           (Specify the program, case number, and the county from 
           which relief is being received.) 
        ................    ......................   ...............
        Program             Case Number (if known)   County
           (2) I am not now receiving relief based on need, but I have 
           received relief based on need within the last six months.  
           (Specify the program, case number, and the county from 
           which relief has been received.) 
        ................    ......................   ...............
        Program             Case Number (if known)   County
           (3) I have been an inmate of a correctional institution 
           within the last six months.  (Specify the correctional 
           institution and location.) 
        ...........................       ..........................
        Correctional Institution          Location
           I hereby authorize any agency that has distributed relief 
        to me or any correctional institution in which I was an inmate 
        to disclose to the above-named judgment creditor or the judgment 
        creditor's attorney only whether or not I am or have been a 
        recipient of relief based on need or an inmate of a correctional 
        institution within the last six months.  I have mailed or 
        delivered a copy of this form to the judgment creditor or 
        judgment creditor's attorney. 
        ...........................          .........................
                                             Debtor
                                             .........................
                                             Address
                                             .........................
                                             Debtor Telephone Number
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        550.143, subdivision 3, is amended to read: 
           Subd. 3.  [EXEMPTION NOTICE.] If the levy is on funds of a 
        judgment debtor who is a natural person and if the funds to be 
        levied are held on deposit at any financial institution, the 
        judgment creditor or its attorney shall provide the sheriff with 
        two copies of an exemption notice, which must be substantially 
        in the form set forth below.  The sheriff shall serve both 
        copies of the exemption notice on the financial institution, 
        along with the writ of execution.  Failure of the sheriff to 
        serve the exemption notices renders the levy void, and the 
        financial institution shall take no action.  However, if this 
        subdivision is being used to execute on funds that have 
        previously been garnished in compliance with section 571.71, the 
        judgment creditor is not required to serve additional exemption 
        notices.  In that event, the execution levy shall only be 
        effective as to the funds that were subject to the prior 
        garnishment.  Upon receipt of the writ of execution and 
        exemption notices, the financial institution shall retain as 
        much of the amount due under section 550.04 as the financial 
        institution has on deposit owing to the judgment debtor, but not 
        more than 110 percent of the amount remaining due on the 
        judgment.  
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF ................       .......... JUDICIAL DISTRICT
        .............(Judgment Creditor) 
        .............(Judgment Debtor) 
        TO:  Debtor                                  EXEMPTION NOTICE 
           An order for attachment, garnishment summons, or levy of 
        execution (strike inapplicable language) has been served on 
        ............. (Bank or other financial institution where you 
        have an account.)  
           Your account balance is $........  
           The amount being held is $........  
           However, all or a portion of the funds in your account will 
        normally be exempt from creditors' claims if they are in one of 
        the following categories:  
           (1) relief based on need.  This includes the Minnesota 
        Family Investment Program (MFIP), Emergency Assistance (EA), 
        Work First Program, Medical Assistance (MA), General Assistance 
        (GA), General Assistance Medical Care (GAMC), Emergency General 
        Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA 
        Emergency Assistance (MSA-EA), Supplemental Security Income 
        (SSI), and Energy Assistance; 
           (2) Social Security benefits (Old Age, Survivors, or 
        Disability Insurance); 
           (3) reemployment compensation, workers' compensation, or 
        veterans' benefits; 
           (4) an accident, disability, or retirement pension or 
        annuity; 
           (5) life insurance proceeds; 
           (6) the earnings of your minor child and any child support 
        paid to you; or 
           (7) money from a claim for damage or destruction of exempt 
        property (such as household goods, farm tools, business 
        equipment, a mobile home, or a car).  
           The following funds are also exempt: 
           (8) all earnings of a person in category (1); 
           (9) all earnings of a person who has received relief based 
        on need, or who has been an inmate of a correctional 
        institution, within the last six months; 
           (10) 75 percent of every debtor's after tax earnings; and 
           (11) all of a judgment debtor's after tax earnings below 40 
        times the federal minimum wage. 
           TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
           Categories (10) and (11):  20 days 
           Categories (8) and (9):  60 days 
           All others:  no time limit, as long as funds are traceable 
        to the exempt source.  (In tracing funds, the first-in, 
        first-out method is used.  This means money deposited first is 
        spent first.)  The money being sought by the judgment creditor 
        is being held in your account to give you a chance to claim an 
        exemption. 
           TO CLAIM AN EXEMPTION:  
           Fill out, sign, and mail or deliver one copy of the 
        attached exemption claim form to the institution which sent you 
        this notice and mail or deliver one copy to the judgment 
        creditor's attorney.  In the event that there is no attorney for 
        the judgment creditor, then the notice shall be sent directly to 
        the judgment creditor.  The address for the judgment creditor's 
        attorney or the judgment creditor is set forth below.  Both 
        copies must be mailed or delivered on the same day. 
           NOTE:  You may help resolve your claim faster if you send 
           to the creditor's attorney written proof or documents that 
           show why your money is exempt.  If you have questions 
           regarding the documents to send as proof of an exemption, 
           call the creditor's attorney.  If you do not send written 
           proof and the creditor's attorney has questions about your 
           exemption claim, the creditor's attorney may object to your 
           claim which may result in a further delay in releasing your 
           exempt funds. 
           If the financial institution does not get the exemption 
        claim back from you within 14 days of the date they mailed or 
        gave it to you, they will be free to turn the money over to the 
        sheriff or the judgment creditor.  If you are going to claim an 
        exemption, do so as soon as possible, because your money may be 
        held until it is decided. 
           IF YOU CLAIM AN EXEMPTION:  
           (1) nonexempt money can be turned over to the judgment 
        creditor or sheriff; 
           (2) the financial institution will keep holding the money 
        claimed to be exempt; and 
           (3) seven days after receiving your exemption claim, the 
        financial institution will release the money to you unless 
        before then it receives an objection to your exemption claim.  
           IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
           the institution will hold the money until a court decides 
        if your exemption claim is valid, BUT ONLY IF the institution 
        gets a copy of your court motion papers asserting the exemption 
        WITHIN TEN DAYS after the objection is personally served on you, 
        or within 13 days from the date the objection is mailed or given 
        to you.  You may wish to consult an attorney at once if the 
        creditor objects to your exemption claim.  
           MOTION TO DETERMINE EXEMPTION:  
           At any time after your funds have been held, you may ask 
        for a court decision on the validity of your exemption claim by 
        filing a request for hearing which may be obtained at the office 
        of the court administrator of the above court. 
           PENALTIES:  
           If you claim an exemption in bad faith, or if the judgment 
        creditor wrongly objects to an exemption in bad faith, the court 
        may order the person who acted in bad faith to pay costs, actual 
        damages, attorney fees, and an additional amount of up to $100.  
                                      ............................. 
                                      ............................. 
                                      ............................. 
                                      ............................. 
                                      Name and address of (Attorney 
                                      for) Judgment Creditor
           EXEMPTION:  
           (a) Amount of exemption claim.  
           / / I claim ALL the funds being held are exempt.  
           / / I claim SOME of the funds being held are exempt.  
                 The exempt amount is $............  
           (b) Basis for exemption.  
           Of the 11 categories listed above, I am in category number 
        ............  (If more than one category applies, you may fill 
        in as many as apply.)  The source of the exempt funds is the 
        following:  
        .............................................................
        .............................................................
        .............................................................
           (If the source is a type of relief based on need, list the 
        case number and county:  
           case number:  ...............; 
           county:  ....................) 
           I hereby authorize any agency that has distributed relief 
        to me or any correctional institution in which I was an inmate 
        to disclose to the above named creditor or its attorney only 
        whether or not I am or have been a recipient of relief based on 
        need or an inmate of a correctional institute within the last 
        six months.  
           I have mailed or delivered a copy of the exemption notice 
        to the judgment creditor or judgment creditor's attorney if 
        represented at the address indicated above. 
                                     .............................
                                     DEBTOR
        DATED:  .............        .............................
                                     .............................
                                     .............................
                                     DEBTOR ADDRESS 
                                     .............................
                                     DEBTOR TELEPHONE NUMBER
           Sec. 4.  Minnesota Statutes 1998, section 550.143, 
        subdivision 7, is amended to read: 
           Subd. 7.  [NOTICE OF OBJECTION.] (a) The written objection 
        to the judgment debtor's claim of exemption must be in 
        substantially the following form:  
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF ...............         ..........JUDICIAL DISTRICT
        ...................(Judgment Creditor)        OBJECTION TO
        ...................(Judgment Debtor)          EXEMPTION CLAIM
        ...................(Garnishee) (Third Party)
           The judgment creditor objects to your claim for exemption 
        from garnishment, levy of execution, order for attachment 
        (strike inapplicable language) for the following reason(s):  
        .................................................................
        .................................................................
        .................................................................
           Because of this objection, your financial institution will 
        retain the funds you claimed to be exempt for an additional ten 
        days.  If you wish to request a hearing on your exemption claim, 
        you should need to do so within ten days of your receipt of this 
        objection from the date the objection was personally served on 
        you, or within 13 days of the date the objection was mailed to 
        you.  You may request a hearing by completing the attached form 
        and filing it with the court administrator.  
           1.  The court administrator's office shall provide clerical 
        assistance to help with the writing and filing of a Request for 
        Hearing by any person not represented by counsel.  The court 
        administrator may charge a fee of $1 for the filing of a Request 
        for Hearing.  
           2.  Upon the filing of a Request for Hearing, the court 
        administrator shall schedule the matter for a hearing no later 
        than five business days from the date of filing.  The court 
        administrator shall forthwith send a completed copy of the 
        request, including the hearing date, time, and place to the 
        adverse party and to the financial institution by first class 
        mail. 
           3.  If it is possible that the financial institution might 
        not receive the request mailed from the court administrator 
        within ten days, then you may want to personally deliver a copy 
        of the request to the financial institution after you have filed 
        your request with the court. 
           4.  An order stating whether your funds are exempt shall be 
        issued by the court within three days of the date of the hearing.
           If you do not file a Request for Hearing within ten days of 
        the date you receive this objection the objection was personally 
        served on you, or within 13 days from the date the objection was 
        mailed to you, your financial institution may turn your funds 
        over to your creditor. 
           If you file a Request for Hearing and your financial 
        institution receives it within ten days of the date it received 
        this objection, your financial institution will retain your 
        funds claimed to be exempt until otherwise ordered by the court. 
                                           ............................
                                           Judgment Creditor or Attorney
           Sec. 5.  Minnesota Statutes 1998, section 550.143, 
        subdivision 8, is amended to read: 
           Subd. 8.  [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 
        request for hearing accompanying the objection notice must be in 
        substantially the following form: 
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF ........                  ........JUDICIAL DISTRICT
        ..................(Judgment Creditor)    REQUEST FOR HEARING
        ..................(Judgment Debtor)             AND
        ..................(Third Party)          NOTICE FOR HEARING
           I hereby request a hearing to resolve the exemption claim 
        which has been made in this case regarding funds in the account 
        of ............. (Judgment Debtor) at the ......... (Financial 
        Institution). 
           I believe the property being held is exempt because 
        .................................................................
        .................................................................
        Dated:...........................................................
                                                  (JUDGMENT DEBTOR)
                                                  ...................
                                                  (ADDRESS)
                                                  ...................
                                                  (DEBTOR PHONE NUMBER)
                                                  ...................
        HEARING DATE:  ................    TIME:  ...................
        HEARING PLACE:  ...............
           (Note to both parties:  Bring with you to the hearing all 
        documents and materials relevant to the exemption claim and 
        objection.  Failure to do so could delay the court's decision.) 
           Sec. 6.  Minnesota Statutes 1998, section 551.01, is 
        amended to read: 
           551.01 [ATTORNEY'S SUMMARY EXECUTION OF JUDGMENT DEBTS; 
        WHEN AUTHORIZED.] 
           An attorney for a judgment creditor may execute on a money 
        judgment by levying on indebtedness owed to the judgment debtor 
        by a third party, pursuant to this chapter.  The attorney for 
        the judgment creditor must obtain a writ of execution issued 
        under section 550.04 before the attorney can execute pursuant to 
        this chapter.  No more than $5,000 $10,000 may be recovered by a 
        single notice of execution levy pursuant to this section.  No 
        more than one execution may be served on a single third party by 
        a judgment creditor each calendar day under this chapter.  
           Sec. 7.  Minnesota Statutes 1998, section 551.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
        DISCLOSURE FORMS.] When levying upon money or earnings owed to 
        the judgment debtor by a third party, the attorney for the 
        judgment creditor shall serve a copy of the writ of execution 
        upon the third party either by registered or certified mail, or 
        by personal service.  A third party levy served by registered or 
        certified mail is effective if served at the third party's 
        regular place of business.  Along with a copy of the writ of 
        execution, the attorney shall serve upon the third party a 
        notice of third party levy and disclosure form that must be 
        substantially in the form set forth below.  If the levy is upon 
        earnings, the attorney shall serve upon the third party the 
        notice of third party levy and disclosure form as set forth in 
        section 551.06, subdivision 9. 
        STATE OF MINNESOTA                             DISTRICT COURT 
        County of .............           ..........JUDICIAL DISTRICT
                                          File No. .................. 
        ..............(Judgment Creditor) 
        against                                 NOTICE OF THIRD PARTY 
        ..............(Judgment Debtor)         LEVY AND DISCLOSURE 
        and                                     (OTHER THAN EARNINGS)
        ..............(Third Party)
           PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
        chapter 551, the undersigned, as attorney for the judgment 
        creditor, hereby makes demand and levies execution upon all 
        money due and owing by you (up to $5,000 $10,000) to the 
        judgment debtor for the amount of the judgment specified below.  
        A copy of the writ of execution issued by the court is 
        enclosed.  The unpaid judgment balance is $.......  
           In responding to this levy, you are to complete the 
        attached disclosure form and mail it to the undersigned attorney 
        for the judgment creditor, together with your check payable to 
        the above-named judgment creditor, for the nonexempt amount owed 
        by you to the judgment debtor or for which you are obligated to 
        the judgment debtor, within the time limits set forth in chapter 
        551. 
           If you are a financial institution and the judgment debtor 
        is a natural person, two exemption notices are also enclosed 
        pursuant to Minnesota Statutes, section 551.02.  Only natural 
        persons are entitled to exemptions under this statute. 
                                Attorney for the Judgment Creditor
                                Address 
                                (...........)
                                Phone number 
                                   DISCLOSURE
           On the ..... day of ............., ......., the time of 
        service of the execution levy herein, there was due and owing 
        the judgment debtor from the third party the following:  
           (1) Money.  Enter on the line below any amounts due and 
        owing the judgment debtor, except earnings, from the third party.
        ....................................................... 
           (2) Setoff.  Enter on the line below the amount of any 
        setoff, defense, lien, or claim which the third party claims 
        against the amount set forth on line (1).  State the facts by 
        which such setoff, defense, lien, or claim is claimed.  (Any 
        indebtedness to you incurred by the judgment debtor within ten 
        days prior to the receipt of the first execution levy on a debt 
        may not be claimed as a setoff, defense, lien, or claim against 
        the amount set forth on line (1).) 
        .............................................. 
           (3) Exemption.  Enter on the line below any amounts or 
        property claimed by the judgment debtor to be exempt from 
        execution.  
        .............................................. 
           (4) Adverse Interest.  Enter on the line below any amounts 
        claimed by other persons by reason of ownership or interest in 
        the judgment debtor's property.  
        .............................................. 
           (5) Enter on the line below the total of lines (2), (3), 
        and (4).  
        ................................................... 
           (6) Enter on the line below the difference obtained (never 
        less than zero when line (5) is subtracted from the amount on 
        line (1)). 
        ..................................................... 
           (7) Enter on the line below 100 percent of the amount of 
        the judgment creditor's claim which remains unpaid.  
        ..................................................... 
           (8) Enter on the line below the lesser of line (6) and line 
        (7).  You are hereby instructed to remit this amount only if it 
        is $10 or more.  
        ..................................................... 
                                  AFFIRMATION 
           I, ....................... (person signing Affirmation), am 
        the third party or I am authorized by the third party to 
        complete this nonearnings disclosure, and have done so 
        truthfully and to the best of my knowledge.  
        Dated:  ................                     ..................
                                                     Signature
                                                     ..................
                                                     Title
                                                     ..................
                                                     Telephone Number
           Sec. 8.  Minnesota Statutes 1998, section 551.04, 
        subdivision 6, is amended to read: 
           Subd. 6.  [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 
        15 days after receipt of the writ of execution, unless governed 
        by section 551.05 or 551.06, the third party shall disclose and 
        remit to the judgment creditor's attorney as much of the amount 
        due under section 550.04, but not more than $5,000 $10,000, as 
        the third party's own debt equals to the judgment debtor.  The 
        attorney for the judgment creditor shall proceed in all other 
        respects like the sheriff making a similar execution levy.  No 
        more than $5,000 $10,000 may be recovered by a single execution 
        levy pursuant to this section.  
           Sec. 9.  Minnesota Statutes 1998, section 551.04, 
        subdivision 9, is amended to read: 
           Subd. 9.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
        DISCLOSE OR REMIT.] Judgment may be entered against a third 
        party who has been served with a writ of execution and fails to 
        disclose or remit the levied funds as required in this chapter.  
        Upon order to show cause served on the third party and notice of 
        motion supported by affidavit of facts and affidavit of service 
        upon both the judgment debtor and third party, the court may 
        render judgment against the third party for an amount not 
        exceeding 100 percent of the amount claimed in the execution or 
        $5,000 $10,000, whichever is less.  Judgment against the third 
        party pursuant to this section shall not bar the judgment 
        creditor from further remedies under this chapter as a result of 
        any subsequent defaults by the third party.  The court upon good 
        cause shown may remove the default and permit the third party to 
        disclose or remit on just terms.  
           Sec. 10.  [551.041] [ATTORNEY'S SUMMARY EXECUTION OF FUNDS 
        BEING HELD PURSUANT TO GARNISHMENT SUMMONS.] 
           Pursuant to this section, an attorney for a judgment 
        creditor may execute on funds retained by a garnishee under a 
        garnishment summons served pursuant to chapter 571.  No more 
        than $10,000 may be recovered by a single execution levy 
        pursuant to this section.  When levying upon money or earnings 
        being retained by a garnishee pursuant to a garnishment summons, 
        the attorney shall serve a copy of the writ of execution upon 
        the garnishee by registered or certified mail, or by personal 
        service.  Along with a copy of the writ of execution, the 
        attorney shall serve upon the garnishee a notice of levy on 
        garnishee that must be substantially in the form set forth 
        below.  If the judgment creditor paid the garnishee the fee 
        required by chapter 571, no additional fee must be paid to the 
        garnishee for the levy.  The notice of levy on garnishee may not 
        be served until the judgment debtor's right to claim an 
        exemption has expired under chapter 571. 
        STATE OF MINNESOTA                             DISTRICT COURT
        County of .............           ..........JUDICIAL DISTRICT
                                          File No. ..................
        ............(Judgment Creditor)
        against
        ..............(Judgment Debtor)     NOTICE OF LEVY
        and                                 ON GARNISHEE
        ....................(Garnishee)
           PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
        chapter 551, the undersigned as attorney for the judgment 
        creditor, hereby makes demand and levies execution upon all 
        money or earnings being retained by you (up to $10,000) pursuant 
        to the judgment creditor's garnishment summons dated 
        ................  A copy of the writ of execution issued by the 
        court is enclosed.  Upon receipt of this levy, you shall remit 
        to the judgment creditor's attorney all funds being held by you 
        pursuant to the garnishment summons.  The funds shall be 
        remitted within 15 days after receipt of this levy. 
        Date: ...............        Attorney for the Judgment Creditor
                                     Address:  ........................
                                     ..................................
                                     Phone Number:  ...................
                                     Attorney I.D. No.:  ..............
           Sec. 11.  [551.042] [MONEY DUE FROM STATE DEPARTMENTS.] 
           Money due or owing to any entity or person by the state on 
        account of any employment, work, contract with, or services 
        provided to any state department or agency is subject to 
        attachment.  The notice of third party levy and disclosure may 
        be served upon the head of the department or agency in the same 
        manner as other summons in that court of record, except that 
        service may not be made by publication.  Service of the notice 
        may also be made by certified mail, return receipt requested.  
        The disclosure shall be made by the head of the department or 
        agency, or by some person designated by the head of the 
        department or agency having knowledge of the facts.  If payment 
        is made pursuant to judgment against the state as a third party, 
        a certificate of satisfaction to the extent of the payment 
        endorsed on it shall be delivered to the head of the department 
        or agency as a voucher for the payment. 
           Sec. 12.  [551.043] [SALARY OF PUBLIC SERVANTS.] 
           The salary or wages of an official or employee of a county, 
        town, city, or school district, or any department of these 
        bodies, is subject to attachment.  The notice of third party 
        levy and disclosure shall be served upon the auditor, treasurer, 
        or clerk of the body, or head of the department of the body of 
        which that person is an official or employee.  The disclosure 
        shall be made by the officer or person so served, or by some 
        person designated by that person having knowledge of the facts.  
        If payment is made by the county, town, city, or school 
        district, or any department of these bodies pursuant to a 
        judgment against it as a third party, a certified copy of the 
        judgment with a certificate of satisfaction to the extent of the 
        payment endorsed on it shall be delivered to the treasurer as a 
        voucher for the payment. 
           Sec. 13.  Minnesota Statutes 1999 Supplement, section 
        551.05, subdivision 1a, is amended to read: 
           Subd. 1a.  [EXEMPTION NOTICE.] If the writ of execution is 
        being used by the attorney to levy funds of a judgment debtor 
        who is a natural person and if the funds to be levied are held 
        on deposit at any financial institution, the attorney for the 
        judgment creditor shall serve with the writ of execution two 
        copies of an exemption notice.  The notice must be substantially 
        in the form set forth below.  Failure of the attorney for the 
        judgment creditor to send the exemption notice renders the 
        execution levy void, and the financial institution shall take no 
        action.  However, if this subdivision is being used to execute 
        on funds that have previously been garnished in compliance with 
        section 571.71, the attorney for judgment creditor is not 
        required to serve an additional exemption notice.  In that 
        event, the execution levy shall only be effective as to the 
        funds that were subject to the prior garnishment.  Upon receipt 
        of the writ of execution and exemption notices, the financial 
        institution shall retain as much of the amount due under section 
        550.04 as the financial institution has on deposit owing to the 
        judgment debtor, but not more than 100 percent of the amount 
        remaining due on the judgment, or $5,000 $10,000, whichever is 
        less.  
           The notice informing a judgment debtor that an execution 
        levy has been used to attach funds of the judgment debtor to 
        satisfy a claim must be substantially in the following form: 
           
        STATE OF MINNESOTA                             DISTRICT COURT 
        County of ................         .........JUDICIAL DISTRICT 
        ................(Judgment Creditor)
        ................(Judgment Debtor) 
        TO:  Judgment Debtor                 EXEMPTION NOTICE 
           An order for attachment, garnishment summons, or levy of 
        execution (strike inapplicable language) has been served on 
        ............. (bank or other financial institution where you 
        have an account).  
           Your account balance is $........  
           The amount being held is $........  
           However, all or a portion of the funds in your account will 
        normally be exempt from creditors' claims if they are in one of 
        the following categories:  
           (1) relief based on need.  This includes the Minnesota 
        Family Investment Program (MFIP), Work First Program, Medical 
        Assistance (MA), General Assistance (GA), General Assistance 
        Medical Care (GAMC), Emergency General Assistance (EGA), 
        Minnesota Supplemental Aid (MSA), MSA Emergency Assistance 
        (MSA-EA), Supplemental Security Income (SSI), and Energy 
        Assistance; 
           (2) Social Security benefits (Old Age, Survivors, or 
        Disability Insurance); 
           (3) reemployment compensation, workers' compensation, or 
        veterans' benefits; 
           (4) an accident, disability, or retirement pension or 
        annuity; 
           (5) life insurance proceeds; 
           (6) the earnings of your minor child and any child support 
        paid to you; or 
           (7) money from a claim for damage or destruction of exempt 
        property (such as household goods, farm tools, business 
        equipment, a mobile home, or a car).  
           The following funds are also exempt: 
           (8) all earnings of a person in category (1); 
           (9) all earnings of a person who has received relief based 
        on need, or who has been an inmate of a correctional 
        institution, within the last six months; 
           (10) 75 percent of every judgment debtor's after tax 
        earnings; or 
           (11) all of a judgment debtor's after tax earnings below 40 
        times the federal minimum wage.  
           TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
           Categories (10) and (11):  20 days 
           Categories (8) and (9):  60 days 
           All others:  no time limit, as long as funds are traceable 
        to the exempt source.  (In tracing funds, the first-in, 
        first-out method is used.  This means money deposited first is 
        spent first.)  The money being sought by the judgment creditor 
        is being held in your account to give you a chance to claim an 
        exemption. 
           TO CLAIM AN EXEMPTION:  
           Fill out, sign, and mail or deliver one copy of the 
        attached exemption claim form to the institution which sent you 
        this notice and mail or deliver one copy to the judgment 
        creditor's attorney.  The address for the judgment creditor's 
        attorney is set forth below.  Both copies must be mailed or 
        delivered on the same day.  
           NOTE:  You may help resolve your claim faster if you send 
           to the creditor's attorney written proof or documents that 
           show why your money is exempt.  If you have questions 
           regarding the documents to send as proof of an exemption, 
           call the creditor's attorney.  If you do not send written 
           proof and the creditor's attorney has questions about your 
           exemption claim, the creditor's attorney may object to your 
           claim which may result in a further delay in releasing your 
           exempt funds. 
           If they do not get the exemption claim back from you within 
        14 days of the date they mailed or gave it to you, they will be 
        free to turn the money over to the attorney for the judgment 
        creditor.  If you are going to claim an exemption, do so as soon 
        as possible, because your money may be held until it is decided. 
           IF YOU CLAIM AN EXEMPTION:  
           (1) nonexempt money can be turned over to the judgment 
        creditor or sheriff; 
           (2) the financial institution will keep holding the money 
        claimed to be exempt; and 
           (3) seven days after receiving your exemption claim, the 
        financial institution will release the money to you unless 
        before then it receives an objection to your exemption claim.  
           IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
           the institution will hold the money until a court decides 
        if your exemption claim is valid, BUT ONLY IF the institution 
        gets a copy of your court motion papers asserting the exemption 
        WITHIN TEN DAYS after the objection is personally served on you, 
        or within 13 days from the date the objection is mailed or given 
        to you.  You may wish to consult an attorney at once if the 
        judgment creditor objects to your exemption claim.  
           MOTION TO DETERMINE EXEMPTION:  
           At any time after your funds have been held, you may ask 
        for a court decision on the validity of your exemption claim by 
        filing a request for hearing which may be obtained at the office 
        of the court administrator of the above court. 
           PENALTIES:  
           If you claim an exemption in bad faith, or if the judgment 
        creditor wrongly objects to an exemption in bad faith, the court 
        may order the person who acted in bad faith to pay costs, actual 
        damages, attorney fees, and an additional amount of up to $100.  
                                       ............................. 
                                       ............................. 
                                       ............................. 
                                       ............................. 
                                       Name and address of (Attorney 
                                       for) Judgment Creditor 
           EXEMPTION:  
           (a) Amount of exemption claim.  
           / / I claim ALL the funds being held are exempt.  
           / / I claim SOME of the funds being held are exempt.  
                 The exempt amount is $............  
           (b) Basis for exemption.  
           Of the 11 categories listed above, I am in category number 
        ............  (If more than one category applies, you may fill 
        in as many as apply.)  The source of the exempt funds is the 
        following:  
        .............................................................
        .............................................................
        .............................................................
           (If the source is a type of relief based on need, list the 
        case number and county:  
           case number:  ...............; 
           county:  ....................) 
           I hereby authorize any agency that has distributed relief 
        to me or any correctional institution in which I was an inmate 
        to disclose to the above named judgment creditor's attorney only 
        whether or not I am or have been a recipient of relief based on 
        need or an inmate of a correctional institute within the last 
        six months. 
           I have mailed or delivered a copy of the exemption notice 
        to the judgment creditor's attorney at the address indicated 
        above.  
                                     .............................
                                     DEBTOR
        DATED:  .............        .............................
                                     .............................
                                     .............................
                                     DEBTOR ADDRESS
                                     .............................
                                     DEBTOR TELEPHONE NUMBER
           Sec. 14.  Minnesota Statutes 1998, section 551.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [NOTICE OF OBJECTION.] (a) The written objection 
        to the judgment debtor's claim of exemption must be in 
        substantially the following form:  
        STATE OF MINNESOTA                              DISTRICT COURT
        County of ...............          ..........JUDICIAL DISTRICT
        .................(Judgment Creditor)         OBJECTION TO
        .................(Judgment Debtor)           EXEMPTION CLAIM 
        .................(Garnishee) (Third Party)
           The judgment creditor objects to your claim for exemption 
        from garnishment, levy of execution, order for attachment 
        (strike inapplicable language) for the following reason(s):  
        .................................................................
        .................................................................
        .................................................................
           Because of this objection, your financial institution will 
        retain the funds you claimed to be exempt for an additional ten 
        days.  If you wish to request a hearing on your exemption claim, 
        you should need to do so within ten days of your receipt of this 
        objection from the date the objection was personally served on 
        you, or within 13 days from the date the objection was mailed to 
        you.  You may request a hearing by completing the attached form 
        and filing it with the court administrator.  
           1.  The court administrator's office shall provide clerical 
        assistance to help with the writing and filing of a Request for 
        Hearing by any person not represented by counsel.  The court 
        administrator may charge a fee of $1 for the filing of a Request 
        for Hearing.  
           2.  Upon the filing of a Request for Hearing, the court 
        administrator shall schedule the matter for a hearing no later 
        than five business days from the date of filing.  The court 
        administrator shall forthwith send a completed copy of the 
        request, including the hearing date, time, and place to the 
        adverse party and to the financial institution by first class 
        mail.  
           3.  If it is possible that the financial institution might 
        not receive the request mailed from the court administrator 
        within ten days, then you may want to personally deliver a copy 
        of the request to the financial institution after you have filed 
        your request with the court.  
           4.  An order stating whether your funds are exempt shall be 
        issued by the court within three days of the date of the hearing.
           If you do not file a Request for Hearing within ten days of 
        the date you receive this the objection was personally served on 
        you, or within 13 days from the date the objection was mailed to 
        you, your financial institution may turn your funds over to your 
        judgment creditor. 
           If you file a Request for Hearing and your financial 
        institution receives it within ten days of the date it received 
        this objection, your financial institution will retain your 
        funds claimed to be exempt until otherwise ordered by the court. 
                                        .............................. 
                                        Attorney for Judgment Creditor 
           Sec. 15.  Minnesota Statutes 1998, section 551.06, 
        subdivision 9, is amended to read: 
           Subd. 9.  [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 
        WORKSHEET.] The attorney for the judgment creditor shall serve 
        upon the judgment debtor's employer a notice of levy on earnings 
        and an execution earnings disclosure form and an earnings 
        disclosure worksheet with the writ of execution, that must be 
        substantially in the form set forth below.  
        STATE OF MINNESOTA                            DISTRICT COURT
        COUNTY OF ................       ......... JUDICIAL DISTRICT
                                                  FILE NO. ..... 
        ............(Judgment Creditor)
        against                                   NOTICE OF LEVY ON 
                                               EARNINGS AND DISCLOSURE 
        ............(Judgment Debtor) 
        and 
        ............(Third Party)
           PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
        sections 551.04 and 551.06, the undersigned, as attorney for the 
        judgment creditor, hereby makes demand and levies execution upon 
        all earnings due and owing by you (up to $5,000 $10,000) to the 
        judgment debtor for the amount of the judgment specified below.  
        A copy of the writ of execution issued by the court is 
        enclosed.  The unpaid judgment balance is $.....  
           This levy attaches all unpaid nonexempt disposable earnings 
        owing or to be owed by you and earned or to be earned by the 
        judgment debtor before and within the pay period in which the 
        writ of execution is served and within all subsequent pay 
        periods whose paydays occur within the 70 days after the service 
        of this levy. 
           In responding to this levy, you are to complete the 
        attached disclosure form and worksheet and mail it to the 
        undersigned attorney for the judgment creditor, together with 
        your check payable to the above-named judgment creditor, for the 
        nonexempt amount owed by you to the judgment debtor or for which 
        you are obligated to the judgment debtor, within the time limits 
        set forth in the aforementioned statutes. 
                                  .................................. 
                                  Attorney for the Judgment Creditor 
                                  .................................. 
                                  .................................. 
                                  .................................. 
                                  Address 
                                  (...).......................... 
                                  Phone Number 
                                   DISCLOSURE
                                  DEFINITIONS
           "EARNINGS":  For the purpose of execution, "earnings" means 
        compensation paid or payable to an employee for personal 
        services or compensation paid or payable to the producer for the 
        sale of agricultural products; milk or milk products; or fruit 
        or other horticultural products produced when the producer is 
        operating a family farm, a family farm corporation, or an 
        authorized farm corporation, as defined in section 500.24, 
        subdivision 2, whether denominated as wages, salary, commission, 
        bonus, or otherwise, and includes periodic payments pursuant to 
        a pension or retirement.  
           "DISPOSABLE EARNINGS":  Means that part of the earnings of 
        an individual remaining after the deduction from those earnings 
        of amounts required by law to be withheld.  (Amounts required by 
        law to be withheld do not include items such as health 
        insurance, charitable contributions, or other voluntary wage 
        deductions.) 
           "PAYDAY":  For the purpose of execution, "payday(s)" means 
        the date(s) upon which the employer pays earnings to the 
        judgment debtor in the ordinary course of business.  If the 
        judgment debtor has no regular payday, payday(s) means the 15th 
        and the last day of each month.  
           THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING 
        QUESTIONS:  
           1.  Do you now owe, or within 70 days from the date the 
        execution levy was served on you, will you or may you owe money 
        to the judgment debtor for earnings?  
                                 Yes .......      No .......
           2.  Does the judgment debtor earn more than $... per week?  
        (This amount is the federal minimum wage per week.) 
                                 Yes .......      No .......
                        INSTRUCTIONS FOR COMPLETING THE 
                              EARNINGS DISCLOSURE 
           A.  If your answer to either question 1 or 2 is "No," then 
        you must sign the affirmation on page 2 and return this 
        disclosure to the judgment creditor's attorney within 20 days 
        after it was served on you, and you do not need to answer the 
        remaining questions.  
           B.  If your answers to both questions 1 and 2 are "Yes," 
        you must complete this form and the Earnings Disclosure 
        Worksheet as follows:  
           For each payday that falls within 70 days from the date the 
           execution levy was served on you, YOU MUST calculate the 
           amount of earnings to be retained by completing steps 3 
           through 11 on page 2, and enter the amounts on the Earnings 
           Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
           PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
           CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE.  
           Each payday, you must retain the amount of earnings listed 
           in column I on the Earnings Disclosure Worksheet.  
           You must pay the attached earnings and return this Earnings 
           Disclosure Form and the Earnings Disclosure Worksheet to 
           the judgment creditor's attorney and deliver a copy to the 
           judgment debtor within ten days after the last payday that 
           falls within the 70-day period. 
           If the judgment is wholly satisfied or if the judgment 
           debtor's employment ends before the expiration of the 
           70-day period, your disclosure and remittance should be 
           made within ten days after the last payday for which 
           earnings were attached. 
        For steps 3 through 11, "columns" refers to columns on the 
        Earnings Disclosure Worksheet.  
             3.  COLUMN A.  Enter the date of judgment debtor's 
                            payday.                        
             4.  COLUMN B.  Enter judgment debtor's gross earnings 
                            for each payday. 
             5.  COLUMN C.  Enter judgment debtor's disposable earnings 
                            for each payday. 
             6.  COLUMN D.  Enter 25 percent of disposable earnings.
                            (Multiply Column C by .25.) 
             7.  COLUMN E.  Enter here 40 times the hourly federal 
                            minimum wage ($...) times the number 
                            of work weeks included in each payday. 
                            (Note:  If a pay period includes days
                            in excess of whole work weeks, the additional
                            days should be counted as a fraction of a
                            work week equal to the number of work days in
                            excess of a whole work week divided by the
                            number of work days in a normal work week.)
             8.  COLUMN F.  Subtract the amount in Column E from the
                            amount in Column C, and enter here.
             9.  COLUMN G.  Enter here the lesser of the amount in
                            Column D and the amount in Column F.
            10.  COLUMN H.  Enter here any amount claimed by you as a
                            setoff, defense, lien, or claim, or any
                            amount claimed by any other person as an
                            exemption or adverse interest which would
                            reduce the amount of earnings owing to the
                            judgment debtor.  (Note:  Any indebtedness
                            to you incurred within ten days prior to your
                            receipt of the first execution levy on a debt
                            may not be set off against the earnings
                            otherwise subject to this levy.  Any wage
                            assignment made by the judgment debtor
                            within ten days prior to your receipt of
                            the first execution levy on a debt is void.)
                            You must also describe your claim(s) and the
                            claims of others, if known, in the space 
                            provided below the worksheet and state the
                            name(s) and address(es) of these persons.
                            Enter zero in Column H if there are no
                            claims by you or others which would reduce
                            the amount of earnings owing to the judgment
                            debtor. 
            11.  COLUMN I.  Subtract the amount in Column H from the 
                            amount in Column G and enter here.  This is
                            the amount of earnings that you must retain 
                            for the payday for which the calculations
                            were made.  The total of all amounts entered
                            in Column I is the amount to be remitted
                            to the attorney for the judgment creditor.
                                  AFFIRMATION 
           I, ................... (person signing Affirmation), am the 
        third party/employer or I am authorized by the third 
        party/employer to complete this earnings disclosure, and have 
        done so truthfully and to the best of my knowledge.  
        Dated:  ............        ........................
                                    Signature
                                    ........................
                                    Title
                                    ........................
                                    Telephone Number
                         EARNINGS DISCLOSURE WORKSHEET  
                              ...................
                             Judgment Debtor's Name
                    A                  B                     C
                  Payday             Gross                 Disposable
                  Date               Earnings              Earnings
        1.  .................   $.................   $.................
        2.  .................   ..................   ..................
        3.  .................   ..................   ..................
        4.  .................   ..................   ..................
        5.  .................   ..................   ..................
        6.  .................   ..................   ..................
        7.  .................   ..................   ..................
        8.  .................   ..................   ..................
        9.  .................   ..................   ..................
        10. .................   ..................   ..................
                   D                    E                  F
                 25% of              40 X Min.            Column C
                 Column C            Wage                 minus
                                                          Column E
        1.  .................   ..................   .................
        2.  .................   ..................   .................
        3.  .................   ..................   .................
        4.  .................   ..................   .................
        5.  .................   ..................   .................
        6.  .................   ..................   .................
        7.  .................   ..................   .................
        8.  .................   ..................   .................
        9.  .................   ..................   .................
        10. .................   ..................   .................
                   G                     H                   I
                Lesser of           Setoff, Lien,         Column G
                Column D            Adverse               minus
                and                 Interest, or          Column H
                Column F            Other Claims
        1.  .................   ..................   .................
        2.  .................   ..................   .................
        3.  .................   ..................   .................
        4.  .................   ..................   .................
        5.  .................   ..................   .................
        6.  .................   ..................   .................
        7.  .................   ..................   .................
        8.  .................   ..................   .................
        9.  .................   ..................   .................
        10. .................   ..................   .................
                                TOTAL OF COLUMN I    $................
           *If you entered any amount in Column H for any payday(s), 
        you must describe below either your claims, or the claims of 
        others.  For amounts claimed by others, you must both state the 
        names and addresses of these persons, and the nature of their 
        claim, if known.  
        .................................................................
        .................................................................
        ..... ...........................................................
                                  AFFIRMATION 
           I, ................. (person signing Affirmation), am the 
        third party or I am authorized by the third party to complete 
        this earnings disclosure worksheet, and have done so truthfully 
        and to the best of my knowledge.  
                                              .................
                                              Title
        Dated:  ........  ...............     (...)............
                          Signature           Phone Number 
           Sec. 16.  Minnesota Statutes 1999 Supplement, section 
        551.06, subdivision 10, is amended to read: 
           Subd. 10.  [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 
        WORKSHEET FOR CHILD SUPPORT JUDGMENT.] The attorney for the 
        judgment creditor shall serve upon the judgment debtor's 
        employer a notice of levy on earnings and an execution earnings 
        disclosure form and an earnings disclosure worksheet with the 
        writ of execution, that must be substantially in the form set 
        forth below.  
        STATE OF MINNESOTA                            DISTRICT COURT
        COUNTY OF ................       ......... JUDICIAL DISTRICT
                                                  FILE NO. ..... 
        ............(Judgment Creditor)
        against                                   NOTICE OF LEVY ON 
                                               EARNINGS AND DISCLOSURE 
        ............(Judgment Debtor) 
        and 
        ............(Third Party)
           PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
        sections 551.04 and 551.06, the undersigned, as attorney for the 
        judgment creditor, hereby makes demand and levies execution upon 
        all earnings due and owing by you (up to $5,000 $10,000) to the 
        judgment debtor for the amount of the judgment specified below.  
        A copy of the writ of execution issued by the court is 
        enclosed.  The unpaid judgment balance is $.....  
           This levy attaches all unpaid nonexempt disposable earnings 
        owing or to be owed by you and earned or to be earned by the 
        judgment debtor before and within the pay period in which the 
        writ of execution is served and within all subsequent pay 
        periods whose paydays occur within the 70 days after the service 
        of this levy. 
           In responding to this levy, you are to complete the 
        attached disclosure form and worksheet and mail it to the 
        undersigned attorney for the judgment creditor, together with 
        your check payable to the above-named judgment creditor, for the 
        nonexempt amount owed by you to the judgment debtor or for which 
        you are obligated to the judgment debtor, within the time limits 
        set forth in the aforementioned statutes. 
                                  .................................. 
                                  Attorney for the Judgment Creditor 
                                  .................................. 
                                  .................................. 
                                  .................................. 
                                  Address 
                                  (...).......................... 
                                  Phone Number 
                                   DISCLOSURE 
                                  DEFINITIONS
           "EARNINGS":  For the purpose of execution, "earnings" means 
        compensation paid or payable to an employee for personal 
        services or compensation paid or payable to the producer for the 
        sale of agricultural products; milk or milk products; or fruit 
        or other horticultural products produced when the producer is 
        operating a family farm, a family farm corporation, or an 
        authorized farm corporation, as defined in section 500.24, 
        subdivision 2, whether denominated as wages, salary, commission, 
        bonus, or otherwise, and includes periodic payments pursuant to 
        a pension or retirement, workers' compensation, or reemployment 
        compensation.  
           "DISPOSABLE EARNINGS":  Means that part of the earnings of 
        an individual remaining after the deduction from those earnings 
        of amounts required by law to be withheld.  (Amounts required by 
        law to be withheld do not include items such as health 
        insurance, charitable contributions, or other voluntary wage 
        deductions.) 
           "PAYDAY":  For the purpose of execution, "payday(s)" means 
        the date(s) upon which the employer pays earnings to the debtor 
        in the ordinary course of business.  If the judgment debtor has 
        no regular payday, payday(s) means the 15th and the last day of 
        each month.  
           THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING QUESTION:
           (1) Do you now owe, or within 70 days from the date the 
        execution levy was served on you, will you or may you owe money 
        to the judgment debtor for earnings?  
                                     .......         .......
                                     Yes             No
                        INSTRUCTIONS FOR COMPLETING THE 
                              EARNINGS DISCLOSURE 
           A.  If your answer to question 1 is "No," then you must 
        sign the affirmation below and return this disclosure to the 
        judgment creditor's attorney within 20 days after it was served 
        on you, and you do not need to answer the remaining questions.  
           B.  If your answer to question 1 is "Yes," you must 
        complete this form and the Earnings Disclosure Worksheet as 
        follows:  
           For each payday that falls within 70 days from the date the 
           execution levy was served on you, YOU MUST calculate the 
           amount of earnings to be retained by completing steps 2 
           through 8 on page 2, and enter the amounts on the Earnings 
           Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
           PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
           CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 
           Each payday, you must retain the amount of earnings listed 
           in column G on the Earnings Disclosure Worksheet.  
           You must pay the attached earnings and return this earnings 
           disclosure form and the Earnings Disclosure Worksheet to 
           the judgment creditor's attorney and deliver a copy of the 
           disclosure and worksheet to the judgment debtor within ten 
           days after the last payday that falls within the 70-day 
           period.  If the judgment is wholly satisfied or if the 
           judgment debtor's employment ends before the expiration of 
           the 70-day period, your disclosure and remittance should be 
           made within ten days after the last payday for which 
           earnings were attached. 
           For steps 2 through 8, "columns" refers to columns on the 
        Earnings Disclosure Worksheet.  
           (2) COLUMN A.  Enter the date of judgment debtor's payday.  
           (3) COLUMN B.  Enter judgment debtor's gross earnings for 
        each payday.  
           (4) COLUMN C.  Enter judgment debtor's disposable earnings 
        for each payday.  
           (5) COLUMN D.  Enter either 50, 55, 60, or 65 percent of 
        disposable earnings, based on which of the following 
        descriptions fits the child support judgment debtor:  
           (a) 50 percent of the judgment debtor's disposable income, 
        if the judgment debtor is supporting a spouse or dependent child 
        and the judgment is 12 weeks old or less (12 weeks to be 
        calculated to the beginning of the work week in which the 
        execution levy is received); 
           (b) 55 percent of the judgment debtor's disposable income, 
        if the judgment debtor is supporting a spouse or dependent 
        child, and the judgment is over 12 weeks old (12 weeks to be 
        calculated to the beginning of the work week in which the 
        execution levy is received); 
           (c) 60 percent of the judgment debtor's disposable income, 
        if the judgment debtor is not supporting a spouse or dependent 
        child and the judgment is 12 weeks old or less (12 weeks to be 
        calculated to the beginning of the work week in which the 
        execution levy is received); or 
           (d) 65 percent of the judgment debtor's disposable income, 
        if the judgment debtor is not supporting a spouse or dependent 
        child, and the judgment is over 12 weeks old (12 weeks to be 
        calculated to the beginning of the work week in which the 
        execution levy is received).  (Multiply column C by .50, .55, 
        .60, or .65, as appropriate.)  
           (6) COLUMN E.  Enter here any amount claimed by you as a 
        setoff, defense, lien, or claim, or any amount claimed by any 
        other person as an exemption or adverse interest that would 
        reduce the amount of earnings owing to the judgment debtor.  
        (Note:  Any indebtedness to you incurred within ten days prior 
        to your receipt of the first execution levy on a debt may not be 
        set off against the earnings otherwise subject to this levy.  
        Any wage assignment made by the judgment debtor within ten days 
        prior to your receipt of the first execution levy on a debt is 
        void.) 
           You must also describe your claim(s) and the claims of 
        others, if known, in the space provided below the worksheet and 
        state the name(s) and address(es) of these persons.  
           Enter zero in column E if there are no claims by you or 
        others that would reduce the amount of earnings owing to the 
        judgment debtor.  
           (7) COLUMN F.  Subtract the amount in column E from the 
        amount in column D and enter here.  This is the amount of 
        earnings that you must remit for the payday for which the 
        calculations were made.  
                                  AFFIRMATION
           I, ................... (person signing Affirmation), am the 
        third party/employer or I am authorized by the third 
        party/employer to complete this earnings disclosure, and have 
        done so truthfully and to the best of my knowledge.  
        Dated:  ............                 ............................
                                             Signature
                                             ............................
                                             Title
                                             ............................
                                             Telephone Number
         EARNINGS DISCLOSURE WORKSHEET         ...................
                                                     Debtor's Name
        A                      B                      C
        Payday                 Gross                  Disposable
        Date                   Earnings               Earnings
        1.  ........           $.......               $.........
        2.  ........           ........               ..........
        3.  ........           ........               ..........
        4.  ........           ........               ..........
        5.  ........           ........               ..........
        6.  ........           ........               ..........
        7.  ........           ........               ..........
        8.  ........           ........               ..........
        9.  ........           ........               ..........
        10. ........           ........               ..........
        D                      E                      F
        Either 50, 55,         Setoff, Lien,          Column D
        60, or 65% of          Adverse                minus
        Column C               Interest, or           Column E
                               Other Claims                    
        1.  ........           ..........             ..........
        2.  ........           ..........             ..........
        3.  ........           ..........             ..........
        4.  ........           ..........             ..........
        5.  ........           ..........             ..........
        6.  ........           ..........             ..........
        7.  ........           ..........             ..........
        8.  ........           ..........             ..........
        9.  ........           ..........             ..........
        10. ........           ..........             ..........
                                 TOTAL OF COLUMN F $............
           *If you entered any amount in column E for any payday(s), 
        you must describe below either your claims, or the claims of 
        others.  For amounts claimed by others, you must both state the 
        names and addresses of such persons, and the nature of their 
        claim, if known.  
           
        .................................................................
        .................................................................
        .................................................................
                                  AFFIRMATION 
           I, ................. (person signing Affirmation), am the 
        third party or I am authorized by the third party to complete 
        this earnings disclosure worksheet, and have done so truthfully 
        and to the best of my knowledge.  
                                              .................
                                              Signature
        Dated:  ........  ...............     (...)............
                          Title               Phone Number
           Sec. 17.  Minnesota Statutes 1998, section 571.72, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SERVICE OF A GARNISHMENT SUMMONS.] To enforce a 
        claim asserted in a civil action venued in a court of record, a 
        garnishment summons may be issued by a creditor and served upon 
        the garnishee in the same manner as other summons in that court 
        of record, except that service may not be made by publication.  
        Service of a garnishment summons on the garnishee may also be 
        made by certified mail, return receipt requested.  A garnishment 
        summons served by certified mail is effective if served at the 
        garnishee's regular place of business.  The effective date of 
        service by certified mail is the time of receipt by the 
        garnishee.  A single garnishment summons may be addressed to two 
        or more garnishees but must state whether each is summoned 
        separately or jointly. 
           The garnishment summons must state: 
           (1) the full name of the debtor, the debtor's last known 
        mailing address, and the amount of the claim that remains 
        unpaid; 
           (2) the date of the entry of judgment against the debtor or 
        that the debtor is in default pursuant to Rule 55.01 of the 
        Minnesota Rules of Civil Procedure for the District Courts.  
        Where there is a prejudgment garnishment pursuant to section 
        571.93, the garnishment summons must include a copy of the court 
        order; 
           (3) if the garnishment is on any indebtedness, money, or 
        property other than earnings, the garnishee shall serve upon the 
        creditor and upon the debtor within 20 days after service of the 
        garnishment summons, a written disclosure, of the garnishee's 
        indebtedness, money, or other property owing to the debtor and 
        answers to all written interrogatories that are served with the 
        garnishment summons.  The garnishment summons shall also state 
        that if the garnishment is on earnings and the debtor has 
        garnishable earnings, the garnishee shall serve the disclosure 
        within ten days of the last payday to occur within the 70 days 
        after the date of service of the garnishment summons; 
           (4) that the creditor shall not require disclosure of the 
        disposable earnings, indebtedness, money, or property of debtor 
        in the garnishee's possession or under the garnishee's control 
        in excess of 110 percent of the amount of the claim that remains 
        unpaid; 
           (5) that the garnishee shall retain disposable earnings, 
        indebtedness, money, or property of the debtor in the 
        garnishee's possession or under the garnishee's control not in 
        excess of 110 percent of the amount of the claim that remains 
        unpaid, until the creditor causes a writ of execution to be 
        served upon the garnishee, until the debtor authorizes release 
        to the creditor, until the creditor authorizes release to the 
        debtor, upon court order, or by operation of law; 
           (6) that after the expiration of the period of time 
        specified in section 571.79 from the date of service of the 
        garnishment summons, the garnishee's retention obligation 
        automatically expires; 
           (7) that an assignment of wages made by the debtor within 
        ten days before the service of the first garnishment summons on 
        a debt is void and that any indebtedness to the garnishee 
        incurred with ten days before the service of the first 
        garnishment summons on a debt may not be set off against amounts 
        otherwise subject to the garnishment. 
           Sec. 18.  Minnesota Statutes 1998, section 571.74, is 
        amended to read: 
           571.74 [GARNISHMENT SUMMONS AND NOTICE TO DEBTOR.] 
           The garnishment summons and notice to debtor must be 
        substantially in the following form.  The notice to debtor must 
        be in no smaller than 14-point type.  
                             GARNISHMENT SUMMONS 
        STATE OF MINNESOTA                            DISTRICT COURT
        COUNTY OF .................      ..........JUDICIAL DISTRICT
        .......................(Creditor)
        .......................(Debtor)       UNPAID BALANCE........
        .......................(Debtor's Address)      Date of Entry
        .......................(Garnishee)  of Judgment (or) Subject
                                              to Minnesota Statutes,
                                             section 571.71, subd. 2
                              GARNISHMENT SUMMONS
        The State of Minnesota 
        To the Garnishee named above: 
           You are hereby summoned and required to serve upon the 
        creditor's attorney (or the creditor if not represented by an 
        attorney) and on the debtor within 20 days after service of this 
        garnishment summons upon you, a written disclosure, of the 
        indebtedness, money, or other property that you owe to the 
        debtor the nonexempt indebtedness, money, or other property due 
        or belonging to the debtor and owing by you or in your 
        possession or under your control and answers to all written 
        interrogatories that are served with the garnishment summons.  
        However, if the garnishment is on earnings and the debtor has 
        garnishable earnings, you shall serve the completed disclosure 
        form on the creditor's attorney, or the creditor if not 
        represented by an attorney, within ten days of the last payday 
        to occur within the 70 days after the date of the service of 
        this garnishment summons.  "Payday" means the day which you pay 
        earnings in the ordinary course of business.  If the debtor has 
        no regular paydays, "payday" means the 15th day and the last day 
        of each month. 
           Your disclosure need not exceed 110 percent of the amount 
        of the creditor's claim that remains unpaid. 
           You shall retain garnishable earnings, other indebtedness, 
        money, or other property in your possession in an amount not to 
        exceed 110 percent of the creditor's claim until such time as 
        the creditor causes a writ of execution to be served upon you, 
        until the debtor authorizes you in writing to release the 
        property to the creditor, or until the expiration of ...... days 
        from the date of service of this garnishment summons upon you, 
        at which time you shall return the disposable earnings, other 
        indebtedness, money, or other property to the debtor. 
                                    EARNINGS 
           In the event you are summoned as a garnishee because you 
        owe "earnings" (as defined on the Earnings Garnishment 
        Disclosure form attached to this Garnishment Summons, if 
        applicable) to the debtor, then you are required to serve upon 
        the creditor's attorney, or the creditor if not represented by 
        an attorney, a written earnings disclosure form within the time 
        limit set forth above. 
           In the case of earnings you are further required to retain 
        in your possession all unpaid nonexempt disposable earnings owed 
        or to be owed by you and earned or to be earned to the debtor 
        within the pay period in which this garnishment summons is 
        served and within all subsequent pay periods whose paydays 
        (defined above) occur within the 70 days after the date of 
        service of this garnishment summons. 
           Any assignment of earnings made by the debtor to any party 
        within ten days before the receipt of the first garnishment on a 
        debt is void.  Any indebtedness to you incurred by the debtor 
        within the ten days before the receipt of the first garnishment 
        on a debt may not be set off against amounts otherwise subject 
        to the garnishment. 
           You are prohibited by law from discharging or disciplining 
        the debtor because the debtor's earnings have been subject to 
        garnishment. 
           This Garnishment Summons includes: 
           (check applicable box) 
        .....  Earnings garnishment
               (see attached Earnings Disclosure Form)
        .....  Nonearnings garnishment
               (see attached Nonearnings Disclosure Form)
        .....  Both Earnings and Nonearnings garnishment
               (see both attached Earnings and Nonearnings
               Disclosure Form)
                                NOTICE TO DEBTOR
           A Garnishment Summons, Earnings Garnishment Disclosure 
        form, Nonwage Garnishment Disclosure form, Garnishment Exemption 
        Notices and/or written Interrogatories (strike out if not 
        applicable), copies of which are hereby served on you, were 
        served upon the Garnishee by delivering copies to the 
        Garnishee.  The Garnishee was paid $15. 
        Dated:  ...............    ...............................
                                   Attorney for Creditor
                                   (or creditor)
                                   ...............................
                                   ...............................
                                   ...............................
                                   Address
                                   ...............................
                                   Telephone
                                   ...............................
                                   Attorney I.D. No.
           Sec. 19.  [571.771] [MONEY DUE FROM STATE DEPARTMENTS.] 
           Money due or owing to any entity or person by the state on 
        account of any employment, work, contract with, or services 
        provided to any state department or agency is subject to 
        garnishment.  The garnishment summons may be served upon the 
        head of the department or agency in the same manner as other 
        summons in that court of record except that service may not be 
        made by publication.  Service of the garnishment summons may 
        also be made by certified mail, return receipt requested.  The 
        disclosure must be made by the head of the department or agency, 
        or by some person designated by the head having knowledge of the 
        facts.  If payment is made pursuant to judgment against the 
        state as garnishee, a certificate of satisfaction to the extent 
        of the payment endorsed on it must be delivered to the head of 
        the department or agency as a voucher for the payment. 
           Sec. 20.  Minnesota Statutes 1998, section 571.79, is 
        amended to read: 
           571.79 [DISCHARGE OF A GARNISHEE.] 
           Subject to sections 571.78 and 571.80 Except as provided in 
        paragraph (h), the garnishee, after disclosure, shall be 
        discharged of any further retention obligation to the creditor 
        with respect to a specific garnishment summons when one of the 
        following conditions are met: 
           (a) The garnishee discloses that the garnishee is not 
        indebted to the debtor or does not possess any money or other 
        property belonging to the debtor that is attachable as defined 
        in section 571.73, subdivision 3.  The disclosure is conclusive 
        against the creditor and discharges the garnishee from any 
        further obligation to the creditor other than to retain all 
        nonexempt disposable earnings, indebtedness, money, and property 
        of the debtor which was disclosed. 
           (b) The garnishee discloses that the garnishee is indebted 
        to the debtor as indicated on the garnishment disclosure form.  
        The disclosure is conclusive against the creditor and discharges 
        the garnishee from any further obligation to the creditor other 
        than to retain all nonexempt disposable earnings, indebtedness, 
        money, and property of the debtor that was disclosed.  
           (c) If the garnishee was served with a garnishment summons 
        before entry of judgment against the debtor by the creditor in 
        the civil action and the garnishee has retained any disposable 
        earnings, indebtedness, money, or property of the debtor, 270 
        days after the garnishment summons is served the garnishee is 
        discharged and the garnishee shall return any disposable 
        earnings, indebtedness, money, and property to the debtor. 
           (d) If the garnishee was served with a garnishment summons 
        after entry of judgment against the debtor by the creditor in 
        the civil action and the garnishee has retained any disposable 
        earnings, indebtedness, money, or property of the debtor, 180 
        days after the garnishment summons is served the garnishee is 
        discharged and the garnishee shall return any disposable 
        earnings, other indebtedness, money, and property to the debtor. 
           (e) If the garnished indebtedness, money, or other property 
        is destroyed without any negligence of the garnishee, the 
        garnishee is discharged of any liability to the creditor for 
        nondelivery of the garnished indebtedness, money, and other 
        property. 
           (f) The court may, upon motion of an interested person, 
        discharge the garnishee as to any disposable earnings, other 
        indebtedness, money, and property in excess of the amount that 
        may be required to satisfy the creditor's claim. 
           (g) The discharge of the garnishee pursuant to paragraph 
        (a), (b), (c), or (d) is not determinative of the rights of the 
        creditor, debtor, or garnishee with respect to any other 
        garnishment summons, even another garnishment summons involving 
        the same parties, unless and to the extent adjudicated pursuant 
        to the procedures described in paragraph (h). 
           (h) The garnishee is not discharged if within 20 days of 
        the service of the garnishee's disclosure or the return to the 
        debtor of any disposable earnings, indebtedness money, or other 
        property of the debtor, whichever is later, an interested person 
        (1) serves a motion scheduled to be heard within 30 days of the 
        service of the motion relating to the garnishment, or (2) serves 
        a motion scheduled to be heard within 30 days of the service of 
        the motion for leave to file a supplemental complaint against 
        the garnishee, as provided under section 571.75, subdivision 4, 
        and the court upon proper showing vacates the discharge of the 
        garnishee. 
           Sec. 21.  Minnesota Statutes 1998, section 571.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [JUDGMENT UPON FAILURE TO DISCLOSE.] If a 
        garnishee fails to serve a disclosure as required in this 
        chapter, the court may render judgment against the garnishee, 
        upon motion by the creditor, for an amount not exceeding the 
        creditor's claim against the debtor or 110 percent of the amount 
        claimed in the garnishment summons, whichever is less.  The 
        motion shall be supported by an affidavit of the facts and shall 
        be served upon both the debtor and the garnishee.  The court 
        upon good cause shown may remove the default and permit the 
        garnishee to disclose on just terms.  
           Sec. 22.  Minnesota Statutes 1999 Supplement, section 
        571.912, is amended to read: 
           571.912 [FORM OF EXEMPTION NOTICE.] 
           The notice informing a debtor that an order for attachment, 
        garnishment summons, or levy by execution has been used to 
        attach funds of the debtor to satisfy a claim must be 
        substantially in the following form:  
        STATE OF MINNESOTA                            DISTRICT COURT 
        COUNTY OF ................         ........JUDICIAL DISTRICT
        ........................(Creditor)
        ........................(Debtor)
        TO:  Debtor                                EXEMPTION NOTICE
           An order for attachment, garnishment summons, or levy of 
        execution (strike inapplicable language) has been served on 
        ............ (bank or other financial institution) 
        ............... where you have an account.  
           Your account balance is $.............  
           The amount being held is $............  
           However, all or a portion of the funds in your account will 
        normally be exempt from creditors' claims if they are in one of 
        the following categories: 
           (1) relief based on need.  This includes the Minnesota 
        Family Investment Program (MFIP), Emergency Assistance (EA), 
        Work First Program, Medical Assistance (MA), General Assistance 
        (GA), General Assistance Medical Care (GAMC), Emergency General 
        Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA 
        Emergency Assistance (MSA-EA), Supplemental Security Income 
        (SSI), and Energy Assistance; 
           (2) Social Security benefits (Old Age, Survivors, or 
        Disability Insurance); 
           (3) reemployment compensation, workers' compensation, or 
        veterans' benefits; 
           (4) an accident, disability, or retirement pension or 
        annuity; 
           (5) life insurance proceeds; 
           (6) the earnings of your minor child and any child support 
        paid to you; or 
           (7) money from a claim for damage or destruction of exempt 
        property (such as household goods, farm tools, business 
        equipment, a mobile home, or a car).  
           The following funds are also exempt: 
           (8) all earnings of a person in category (1); 
           (9) all earnings of a person who has received relief based 
        on need, or who has been an inmate of a correctional 
        institution, within the last six months; 
           (10) 75 percent of every debtor's after tax earnings; and 
           (11) all of a debtor's after tax earnings below 40 times 
        the federal minimum wage. 
           TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
           Categories (10) and (11):  20 days 
           Categories (8) and (9):  60 days 
           All others:  no time limit, as long as funds are traceable 
        to the exempt source.  (In tracing funds, the first-in, 
        first-out method is used.  This means money deposited first is 
        spent first.)  The money being sought by the creditor is being 
        held in your account to give you a chance to claim an exemption. 
           TO CLAIM AN EXEMPTION:  
           Fill out, sign, and mail or deliver one copy of the 
        attached exemption claim form to the institution which sent you 
        this notice and mail or deliver one copy to the creditor's 
        attorney.  In the event that there is no attorney for the 
        creditor, then such notice shall be sent directly to the 
        creditor.  The address for the creditor's attorney or the 
        creditor is set forth below.  Both copies must be mailed or 
        delivered on the same day.  
           NOTE:  You may help resolve your claim faster if you send 
           to the creditor's attorney written proof or documents that 
           show why your money is exempt.  If you have questions 
           regarding the documents to send as proof of an exemption, 
           call the creditor's attorney.  If you do not send written 
           proof and the creditor's attorney has questions about your 
           exemption claim, the creditor's attorney may object to your 
           claim which may result in a further delay in releasing your 
           exempt funds. 
           If they do not get the exemption claim back from you within 
        14 days of the date they mailed or gave it to you, they will be 
        free to turn the money over to the sheriff or the creditor.  If 
        you are going to claim an exemption, do so as soon as possible, 
        because your money may be held until it is decided. 
           IF YOU CLAIM AN EXEMPTION:  
           (1) nonexempt money can be turned over to the creditor or 
        sheriff; 
           (2) the financial institution will keep holding the money 
        claimed to be exempt; and 
           (3) seven days after receiving your exemption claim, the 
        financial institution will release the money to you unless 
        before then it receives an objection to your exemption claim.  
           IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
           The institution will hold the money until a court decides 
        if your exemption claim is valid, BUT ONLY IF the institution 
        gets a copy of your court motion papers asserting the exemption 
        WITHIN TEN DAYS after the objection is personally served on you, 
        or within 13 days from the date the objection is mailed or given 
        to you.  You may wish to consult an attorney at once if the 
        creditor objects to your exemption claim.  
           MOTION TO DETERMINE EXEMPTION:  
           At any time after your funds have been held, you may ask 
        for a court decision on the validity of your exemption claim by 
        filing a request for hearing which may be obtained at the office 
        of the court administrator of the above court. 
           PENALTIES:  
           If you claim an exemption in bad faith, or if the creditor 
        wrongly objects to an exemption in bad faith, the court may 
        order the person who acted in bad faith to pay costs, actual 
        damages, attorney fees, and an additional amount of up to $100.  
                                      .............................
                                      .............................
                                      ............................. 
                                      ............................. 
                                      Name and address of (Attorney
                                      for) Judgment Creditor
           EXEMPTION:  
           (If you claim an exemption complete the following): 
           (a) Amount of exemption claim.  
           / / I claim ALL the funds being held are exempt.  
           / / I claim SOME of the funds being held are exempt.  
                 The exempt amount is $............  
           (b) Basis for exemption.  
           Of the eleven categories listed above, I am in category 
        number ............  (If more than one category applies, you may 
        fill in as many as apply.)  The source of the exempt funds is 
        the following:  
        .............................................................
        .............................................................
        .............................................................
           (If the source is a type of relief based on need, list the 
        case number and county:  
           case number:  ...............; 
           county:  ....................) 
           I hereby authorize any agency that has distributed relief 
        to me or any correctional institution in which I was an inmate 
        to disclose to the above named creditor or its attorney only 
        whether or not I am or have been a recipient of relief based on 
        need or an inmate of a correctional institute within the last 
        six months.  
           I have mailed or delivered a copy of the exemption notice 
        to the creditor's attorney at the address indicated above.  
        DATED:  .............        .............................
                                     DEBTOR 
                                     .............................
                                     DEBTOR ADDRESS
                                     .............................
                                     DEBTOR TELEPHONE NUMBER 
           Sec. 23.  Minnesota Statutes 1998, section 571.914, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE OF OBJECTION.] (a) The written objection 
        to the debtor must be in substantially the following form:  
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF ....................    ..........JUDICIAL DISTRICT
        ....................(Creditor) 
        ....................(Debtor)             CREDITOR'S OBJECTION
        ....................(Garnishee)            TO EXEMPTION CLAIM
           The creditor objects to your claim for exemption from 
        garnishment, levy of execution, order for attachment (strike 
        inapplicable language) for the following reason(s):  
        .................................................................
        .................................................................
        .................................................................
           Because of this objection, your financial institution will 
        retain the funds you claimed to be exempt for an additional ten 
        days.  If you wish to request a hearing on your exemption claim, 
        you should need to do so within ten days of your receipt of this 
        from the date the objection was personally served on you, or 
        within 13 days of the date the objection was mailed to you.  You 
        may request a hearing by completing the attached form and filing 
        it with the court administrator.  
           1.  The court shall provide clerical assistance to help 
        with the writing and filing of a Request for Hearing by any 
        person not represented by counsel.  The court administrator may 
        charge a fee of $1 for the filing of a Request for Hearing.  
           2.  Upon the filing of a Request for Hearing, the clerk 
        shall schedule the matter for a hearing no later than five 
        business days from the date of filing.  The court administrator 
        shall forthwith send a completed copy of the request, including 
        the hearing date, time, and place to the adverse party and to 
        the financial institution by first class mail.  
           3.  If it is possible that the financial institution might 
        not receive the request mailed from the court administrator 
        within ten days, then you may want to personally deliver a copy 
        of the request to the financial institution after you have filed 
        your request with the court.  
           4.  An order stating whether your funds are exempt shall be 
        issued by the court within three days of the date of the hearing.
           If you do not file a Request for Hearing within ten days of 
        the date you receive this objection the objection was personally 
        served on you, or within 13 days from the date the objection was 
        mailed to you, your financial institution may turn your funds 
        over to your creditor. 
           If you file a Request for Hearing and your financial 
        institution receives it within ten days of the date it received 
        this objection, your financial institution will retain your 
        funds claimed to be exempt until otherwise ordered by the court, 
        or until the garnishment lapses pursuant to Minnesota Statutes, 
        section 571.79. 
                                  ..................................
                                  (CREDITOR OR CREDITOR'S ATTORNEY.) 
           Sec. 24.  Minnesota Statutes 1999 Supplement, section 
        571.925, is amended to read: 
           571.925 [FORM OF NOTICE.] 
           The ten-day notice informing a debtor that a garnishment 
        summons may be used to garnish the earnings of an individual 
        must be substantially in the following form: 
        STATE OF MINNESOTA                             DISTRICT COURT
        COUNTY OF .............         ........... JUDICIAL DISTRICT
        ....................(Creditor)
        against
                                           GARNISHMENT EXEMPTION 
        ....................(Debtor)       NOTICE AND NOTICE OF 
        and                                INTENT TO GARNISH EARNINGS 
                                           WITHIN TEN DAYS
        ....................(Garnishee)
           PLEASE TAKE NOTICE that a garnishment summons or levy may 
        be served upon your employer or other third parties, without any 
        further court proceedings or notice to you, ten days or more 
        from the date hereof.  Some or all of your earnings are exempt 
        from garnishment.  If your earnings are garnished, your employer 
        must show you how the amount that is garnished from your 
        earnings was calculated.  You have the right to request a 
        hearing if you claim the garnishment is incorrect. 
           Your earnings are completely exempt from garnishment if you 
        are now a recipient of relief based on need, if you have been a 
        recipient of relief within the last six months, or if you have 
        been an inmate of a correctional institution in the last six 
        months. 
           Relief based on need includes the Minnesota Family 
        Investment Program (MFIP), Emergency Assistance (EA), Work First 
        Program, Medical Assistance (MA), General Assistance (GA), 
        General Assistance Medical Care (GAMC), Emergency General 
        Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA 
        Emergency Assistance (MSA-EA), Supplemental Security Income 
        (SSI), and Energy Assistance. 
           If you wish to claim an exemption, you should fill out the 
        appropriate form below, sign it, and send it to the creditor's 
        attorney and the garnishee. 
           You may wish to contact the attorney for the creditor in 
        order to arrange for a settlement of the debt or contact an 
        attorney to advise you about exemptions or other rights. 
                                   PENALTIES
           (1) Be advised that even if you claim an exemption, a 
           garnishment summons may still be served on your employer.  
           If your earnings are garnished after you claim an 
           exemption, you may petition the court for a determination 
           of your exemption.  If the court finds that the creditor 
           disregarded your claim of exemption in bad faith, you will 
           be entitled to costs, reasonable attorney fees, actual 
           damages, and an amount not to exceed $100. 
           (2) HOWEVER, BE WARNED if you claim an exemption, the 
           creditor can also petition the court for a determination of 
           your exemption, and if the court finds that you claimed an 
           exemption in bad faith, you will be assessed costs and 
           reasonable attorney's fees plus an amount not to exceed 
           $100. 
           (3) If after receipt of this notice, you in bad faith take 
           action to frustrate the garnishment, thus requiring the 
           creditor to petition the court to resolve the problem, you 
           will be liable to the creditor for costs and reasonable 
           attorney's fees plus an amount not to exceed $100. 
        DATED:  ............           ........................
                                       (Attorney for) Creditor
                                       ........................
                                       Address
                                       ........................
                                       Telephone
                        DEBTOR'S EXEMPTION CLAIM NOTICE
           I hereby claim that my earnings are exempt from garnishment 
        because: 
           (1) I am presently a recipient of relief based on need. 
           (Specify the program, case number, and the county from 
           which relief is being received.) 
        ................    ......................   ...............
        Program             Case Number (if known)   County
           (2) I am not now receiving relief based on need, but I have 
           received relief based on need within the last six months.  
           (Specify the program, case number, and the county from 
           which relief has been received.) 
        ................    ......................   ...............
        Program             Case Number (if known)   County
           (3) I have been an inmate of a correctional institution 
           within the last six months.  (Specify the correctional 
           institution and location.) 
        ...........................       ..........................
        Correctional Institution          Location
           I hereby authorize any agency that has distributed relief 
        to me or any correctional institution in which I was an inmate 
        to disclose to the above-named creditor or the creditor's 
        attorney only whether or not I am or have been a recipient of 
        relief based on need or an inmate of a correctional institution 
        within the last six months.  I have mailed or delivered a copy 
        of this form to the creditor or creditor's attorney. 
        ...........................          .........................
        Date                                 Debtor
                                             .........................
                                             Address
                                             .........................
                                             Debtor Telephone Number
           Sec. 25.  [REPEALER.] 
           Minnesota Statutes 1998, section 571.80, is repealed. 
           Presented to the governor April 11, 2000 
           Signed by the governor April 14, 2000, 2:13 p.m.