Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 458-S.F.No. 3016 
                  An act relating to family law; changing certain child 
                  support enforcement provisions; providing for notices; 
                  clarifying certain delegation of powers provisions; 
                  amending Minnesota Statutes 1998, sections 256.979, by 
                  adding a subdivision; 518.255; 518.64, subdivision 5; 
                  518.68, subdivision 2; 524.5-505; 552.01, subdivision 
                  3, and by adding a subdivision; 552.03; and 552.04, 
                  subdivisions 4, 6, 11, and 16; Minnesota Statutes 1999 
                  Supplement, sections 13B.06, subdivision 1; and 
                  256.978, subdivision 1; proposing coding for new law 
                  in Minnesota Statutes, chapter 552; repealing 
                  Minnesota Statutes 1998, section 552.05, subdivisions 
                  1, 2, 3, 6, 7, 8, and 9; Minnesota Statutes 1999 
                  Supplement, section 552.05, subdivisions 4, 5, and 10; 
                  Minnesota Rules, parts 9500.1800; 9500.1805; 
                  9500.1810; 9500.1811; 9500.1812; 9500.1815; 9500.1817; 
                  9500.1820; and 9500.1821. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        13B.06, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] The definitions in this 
        subdivision apply to this section. 
           (a) "Account" means a demand deposit account, checking or 
        negotiable withdraw order account, savings account, time deposit 
        account, or money market mutual fund. 
           (b) "Account information" means the type of account, the 
        account number, whether the account is singly or jointly owned, 
        and in the case of jointly owned accounts the name and address 
        of the nonobligor account owner if available. 
           (c) "Financial institution" means any of the following that 
        do business within the state: 
           (1) federal or state commercial banks and federal or state 
        savings banks, including savings and loan associations and 
        cooperative banks; 
           (2) federal and state chartered credit unions; 
           (3) benefit associations; 
           (4) life insurance companies; 
           (5) safe deposit companies; and 
           (6) money market mutual funds. 
           (d) "Obligor" means an individual who is in arrears in 
        court-ordered child support or maintenance payments, or both, in 
        an amount equal to or greater than three five times the 
        obligor's total monthly support and maintenance payments, and is 
        not in compliance with a written payment agreement regarding 
        both current support and arrearages approved by the court, a 
        child support magistrate, or the public authority.  
           (e) "Public authority" means the public authority 
        responsible for child support enforcement. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        256.978, subdivision 1, is amended to read: 
           Subdivision 1.  [REQUEST FOR INFORMATION.] (a) The public 
        authority responsible for child support in this state or any 
        other state, in order to locate a person or to obtain 
        information necessary to establish paternity and child support 
        or to modify or enforce child support or distribute collections, 
        may request information reasonably necessary to the inquiry from 
        the records of (1) all departments, boards, bureaus, or other 
        agencies of this state agencies or political subdivisions of 
        this state, as defined in section 13.02, which shall, 
        notwithstanding the provisions of section 268.19 or any other 
        law to the contrary, provide the information necessary for this 
        purpose; and (2) employers, utility companies, insurance 
        companies, financial institutions, credit grantors, and labor 
        associations doing business in this state.  They shall provide a 
        response upon written or electronic request within 30 days of 
        service of the request made by the public authority.  
        Information requested and used or transmitted by the 
        commissioner according to the authority conferred by this 
        section may be made available to other agencies, statewide 
        systems, and political subdivisions of this state, and agencies 
        of other states, interstate information networks, federal 
        agencies, and other entities as required by federal regulation 
        or law for the administration of the child support enforcement 
        program.  
           (b) For purposes of this section, "state" includes the 
        District of Columbia, Puerto Rico, the United States Virgin 
        Islands, and any territory or insular possession subject to the 
        jurisdiction of the United States. 
           Sec. 3.  Minnesota Statutes 1998, section 256.979, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [FEDERAL CHILD SUPPORT INCENTIVES.] (a) The 
        commissioner of human services shall distribute to the counties 
        the earned federal child support incentive payments using the 
        methodology specified in Title IV-D of the Social Security Act 
        and applicable federal regulations for earning federal 
        incentives by the states except for the paternity portion of the 
        incentive.  The commissioner shall distribute the federal 
        paternity incentive earned using the IV-D paternity 
        establishment percentage.  The commissioner shall follow the 
        federal transition plans in distributing the incentives to the 
        counties.  The commissioner shall distribute to the county child 
        support agency estimated federal incentive payments within 60 
        days after the end of each calendar quarter.  The commissioner 
        shall issue actual federal incentive payments to the county 
        agency within 60 days of receiving the final federal incentive 
        grant award from the federal agency. 
           (b) The county child support agency shall reinvest 
        incentive funds disbursed under this section in the county child 
        support enforcement program.  These funds may not be used by a 
        county to reduce funding of the child support enforcement 
        program by the amount of the incentive earned below the base 
        amount allowed under the applicable federal regulations.  The 
        county agency shall maintain a record of incentives earned and 
        expended according to a procedure approved by the commissioner.  
        The county agency shall repay any incentive erroneously issued. 
           Sec. 4.  Minnesota Statutes 1998, section 518.255, is 
        amended to read: 
           518.255 [PROVISION OF LEGAL SERVICES BY THE PUBLIC 
        AUTHORITY.] 
           Subdivision 1.  [GENERAL.] (a) The provision of services 
        under the child support enforcement program that includes 
        services by an attorney or an attorney's representative employed 
        by, under contract to, or representing the public authority does 
        not create an attorney-client relationship with any party other 
        than the public authority.  Attorneys employed by or under 
        contract with the public authority have an affirmative duty to 
        inform applicants and recipients of services under the child 
        support enforcement program that no attorney-client relationship 
        exists between the attorney and the applicant or recipient.  
        This section applies to all legal services provided by the child 
        support enforcement program.  
           (b) The written notice must inform the individual applicant 
        or recipient of services that no attorney-client relationship 
        exists between the attorney and the applicant or recipient; the 
        rights of the individual as a subject of data under section 
        13.04, subdivision 2; and that the individual has a right to 
        have an attorney represent the individual.  
           (c) Data disclosed by an applicant for, or recipient of, 
        child support services to an attorney employed by, or under 
        contract with, the public authority is private data on an 
        individual.  However, the data may be disclosed under section 
        13.46, subdivision 2, clauses (1) to (3) and (6) to (19), under 
        subdivision 2, and in order to obtain, modify or enforce child 
        support, medical support, and parentage determinations. 
           (d) An attorney employed by, or under contract with, the 
        public authority may disclose additional information received 
        from an applicant for, or recipient of, services for other 
        purposes with the consent of the individual applicant for, or 
        recipient of, child support services. 
           Subd. 2.  [ACCESS TO ADDRESS FOR SERVICE OF PROCESS.] (a) 
        If there is a IV-D case as defined in section 518.54, a party 
        may obtain an ex parte order under this subdivision.  The party 
        may obtain an ex parte order requiring the public authority to 
        serve legal documents on the other party by mail if the party 
        submits a sworn affidavit to the court stating that: 
           (1) the party needs to serve legal process in a support 
        proceeding and does not have access to the address of the other 
        party; 
           (2) the party has made reasonable efforts to locate the 
        other party; and 
           (3) the other party is not represented by counsel. 
           (b) The public authority shall serve legal documents 
        provided by the moving party at the last known address of the 
        other party upon receipt of a court order under paragraph (a).  
        The public authority shall provide for appropriate service and 
        shall certify to all parties the date of service by mail.  The 
        public authority's proof of service must not include the place 
        or address of service. 
           (c) The state court administrator shall prepare and make 
        available forms for use in seeking access to an address under 
        this subdivision. 
           Sec. 5.  Minnesota Statutes 1998, section 518.64, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FORM.] The department of human services state 
        court administrator's office shall prepare and make available to 
        courts court administrators, obligors, and persons to whom child 
        support is owed a form to be submitted by the obligor or the 
        person to whom child support is owed in support of a motion for 
        a modification of an order for support or maintenance or for 
        contempt of court.  
           Sec. 6.  Minnesota Statutes 1998, section 518.68, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] The required notices must be 
        substantially as follows: 
                                IMPORTANT NOTICE 
        1.  PAYMENTS TO PUBLIC AGENCY 
           According to Minnesota Statutes, section 518.551, 
           subdivision 1, payments ordered for maintenance and support 
           must be paid to the public agency responsible for child 
           support enforcement as long as the person entitled to 
           receive the payments is receiving or has applied for public 
           assistance or has applied for support and maintenance 
           collection services.  MAIL PAYMENTS TO: 
        2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
        FELONY 
           A person may be charged with a felony who conceals a minor 
           child or takes, obtains, retains, or fails to return a 
           minor child from or to the child's parent (or person with 
           custodial or visitation rights), according to Minnesota 
           Statutes, section 609.26.  A copy of that section is 
           available from any district court clerk. 
        3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
           (a) Payment of support or spousal maintenance is to be as 
           ordered, and the giving of gifts or making purchases of 
           food, clothing, and the like will not fulfill the 
           obligation. 
           (b) Payment of support must be made as it becomes due, and 
           failure to secure or denial of rights of visitation is NOT 
           an excuse for nonpayment, but the aggrieved party must seek 
           relief through a proper motion filed with the court. 
           (c) Nonpayment of support is not grounds to deny 
           visitation.  The party entitled to receive support may 
           apply for support and collection services, file a contempt 
           motion, or obtain a judgment as provided in Minnesota 
           Statutes, section 548.091.  
           (d) The payment of support or spousal maintenance takes 
           priority over payment of debts and other obligations. 
           (e) A party who accepts additional obligations of support 
           does so with the full knowledge of the party's prior 
           obligation under this proceeding. 
           (f) Child support or maintenance is based on annual income, 
           and it is the responsibility of a person with seasonal 
           employment to budget income so that payments are made 
           throughout the year as ordered. 
           (g) If there the obligor is a layoff laid off from 
           employment or receives a pay reduction, support may be 
           reduced as of the time of the layoff or pay reduction, but 
           only if a motion to reduce the support is served and filed 
           with the court at that time, but.  Any such reduction must 
           be will take effect only if ordered by the court and may 
           only relate back to the time that the motion is filed.  If 
           a motion is not filed, the support obligation will continue 
           at the current level.  The court is not permitted to reduce 
           support retroactively, except as provided in Minnesota 
           Statutes, section 518.64, subdivision 2, paragraph (c).  
           (h) Reasonable visitation guidelines are contained in 
           Appendix B, which is available from the court administrator.
           (i) The nonpayment of support may be enforced through the 
           denial of student grants; interception of state and federal 
           tax refunds; suspension of driver's, recreational, and 
           occupational licenses; referral to the department of 
           revenue or private collection agencies; seizure of assets, 
           including bank accounts and other assets held by financial 
           institutions; reporting to credit bureaus; interest 
           charging, income withholding, and contempt proceedings; and 
           other enforcement methods allowed by law.  
        4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
        SUBDIVISION 3 
           Unless otherwise provided by the Court: 
           (a) Each party has the right of access to, and to receive 
           copies of, school, medical, dental, religious training, and 
           other important records and information about the minor 
           children.  Each party has the right of access to 
           information regarding health or dental insurance available 
           to the minor children.  Presentation of a copy of this 
           order to the custodian of a record or other information 
           about the minor children constitutes sufficient 
           authorization for the release of the record or information 
           to the requesting party. 
           (b) Each party shall keep the other informed as to the name 
           and address of the school of attendance of the minor 
           children.  Each party has the right to be informed by 
           school officials about the children's welfare, educational 
           progress and status, and to attend school and parent 
           teacher conferences.  The school is not required to hold a 
           separate conference for each party. 
           (c) In case of an accident or serious illness of a minor 
           child, each party shall notify the other party of the 
           accident or illness, and the name of the health care 
           provider and the place of treatment. 
           (d) Each party has the right of reasonable access and 
           telephone contact with the minor children. 
        5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
           Child support and/or spousal maintenance may be withheld 
           from income, with or without notice to the person obligated 
           to pay, when the conditions of Minnesota Statutes, section 
           518.6111 have been met.  A copy of those sections is 
           available from any district court clerk. 
        6.  CHANGE OF ADDRESS OR RESIDENCE 
           Unless otherwise ordered, each party shall notify the other 
           party, the court, and the public authority responsible for 
           collection, if applicable, of the following information 
           within ten days of any change:  the residential and mailing 
           address, telephone number, driver's license number, social 
           security number, and name, address, and telephone number of 
           the employer. 
        7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
           Child support and/or spousal maintenance may be adjusted 
           every two years based upon a change in the cost of living 
           (using Department of Labor Consumer Price Index .........., 
           unless otherwise specified in this order) when the 
           conditions of Minnesota Statutes, section 518.641, are met. 
           Cost of living increases are compounded.  A copy of 
           Minnesota Statutes, section 518.641, and forms necessary to 
           request or contest a cost of living increase are available 
           from any district court clerk. 
        8.  JUDGMENTS FOR UNPAID SUPPORT 
           If a person fails to make a child support payment, the 
           payment owed becomes a judgment against the person 
           responsible to make the payment by operation of law on or 
           after the date the payment is due, and the person entitled 
           to receive the payment or the public agency may obtain 
           entry and docketing of the judgment WITHOUT NOTICE to the 
           person responsible to make the payment under Minnesota 
           Statutes, section 548.091.  Interest begins to accrue on a 
           payment or installment of child support whenever the unpaid 
           amount due is greater than the current support due, 
           according to Minnesota Statutes, section 548.091, 
           subdivision 1a.  
        9.  JUDGMENTS FOR UNPAID MAINTENANCE 
           A judgment for unpaid spousal maintenance may be entered 
           when the conditions of Minnesota Statutes, section 548.091, 
           are met.  A copy of that section is available from any 
           district court clerk. 
        10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
        SUPPORT 
           A judgment for attorney fees and other collection costs 
           incurred in enforcing a child support order will be entered 
           against the person responsible to pay support when the 
           conditions of section 518.14, subdivision 2, are met.  A 
           copy of section 518.14 and forms necessary to request or 
           contest these attorney fees and collection costs are 
           available from any district court clerk. 
        11.  VISITATION EXPEDITOR PROCESS 
           On request of either party or on its own motion, the court 
           may appoint a visitation expeditor to resolve visitation 
           disputes under Minnesota Statutes, section 518.1751.  A 
           copy of that section and a description of the expeditor 
           process is available from any district court clerk. 
        12.  VISITATION REMEDIES AND PENALTIES 
           Remedies and penalties for the wrongful denial of 
           visitation rights are available under Minnesota Statutes, 
           section 518.175, subdivision 6.  These include compensatory 
           visitation; civil penalties; bond requirements; contempt; 
           and reversal of custody.  A copy of that subdivision and 
           forms for requesting relief are available from any district 
           court clerk. 
           Sec. 7.  Minnesota Statutes 1998, section 524.5-505, is 
        amended to read: 
           524.5-505 [DELEGATION OF POWERS BY PARENT OR GUARDIAN.] 
           (a) A parent or a guardian of a minor or incapacitated 
        person, by a properly executed power of attorney, may delegate 
        to another person, for a period not exceeding six months, any 
        powers regarding care, custody, or property of the minor or 
        ward, except the power to consent to marriage or adoption of a 
        minor ward. 
           (b) A parent who executes a delegation of powers under this 
        section must mail or give a copy of the document to any other 
        parent within 30 days of its execution unless: 
           (1) the other parent does not have visitation rights or has 
        supervised visitation rights; or 
           (2) there is an existing order for protection under chapter 
        518B or a similar law of another state in effect against the 
        other parent to protect the parent executing the delegation of 
        powers or the child.  
           (c) A parent of a minor child may delegate those powers for 
        a period not exceeding one year by a designated caregiver 
        agreement under chapter 257A. 
           Sec. 8.  Minnesota Statutes 1998, section 552.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [JUDGMENT DEBTOR.] "Judgment debtor" means a 
        party an obligor against whom the public authority has a 
        judgment for the recovery of money owed pursuant to a support 
        order as defined in section 518.54.  
           Sec. 9.  Minnesota Statutes 1998, section 552.01, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [JUDGMENT.] "Judgment" means a child support 
        judgment by operation of law under section 548.091, subdivision 
        1a, or under a proceeding under section 548.091, subdivision 2a. 
           Sec. 10.  Minnesota Statutes 1998, section 552.03, is 
        amended to read: 
           552.03 [SCOPE OF GENERAL AND SPECIFIC PROVISIONS.] 
           General provisions relating to the public authority's 
        summary execution as authorized in this chapter are set forth in 
        section 552.04.  Specific provisions relating to summary 
        execution on funds at a financial institution are set forth in 
        section 552.05 552.06.  When the public authority levies against 
        funds at a financial institution, the specific provisions of 
        section 552.05 552.06 must be complied with in addition to the 
        general provisions of section 552.04 that are not inconsistent 
        with the specific provisions of section 552.06.  Provisions 
        contained in the statutory forms are incorporated in this 
        chapter and have the same force of law as any other provisions 
        in this chapter.  
           Sec. 11.  Minnesota Statutes 1998, section 552.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
        DISCLOSURE FORMS.] When levying upon money owed to the judgment 
        debtor by a third party, the public authority shall serve a copy 
        of the notice of support judgment levy upon the third party 
        either by registered or certified mail, by personal service, or 
        by electronic transmission.  Along with a copy of the notice of 
        support judgment levy, the public authority shall serve upon the 
        third party a notice of support judgment levy and disclosure 
        form that must be substantially in the form set forth below. 
              OFFICE OF ADMINISTRATIVE HEARINGS DISTRICT COURT
                                     File No. ...........
        ........ (Public authority)
        against                        NOTICE OF SUPPORT JUDGMENT
        ........ (Judgment Debtor)     LEVY AND DISCLOSURE
        and                            (OTHER THAN EARNINGS)
        ........ (Third Party)
           PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
        chapters 518 and 522 552, the undersigned, as representative of 
        the public authority responsible for child support enforcement, 
        makes demand and levies execution upon all money due and owing 
        by you to the judgment debtor for the amount of the judgment 
        specified below.  A copy of the notice of support judgment levy 
        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 public authority, 
        together with your check payable to the public authority, 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 in chapter 552. 
                             Public Authority
                              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 the 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.  Financial institutions shall not complete 
        this line.  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 public authority's claim which remains unpaid.  
           ......................... 
           (8) Enter on the line below the lesser of line (6) and line 
        (7).  You are 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. 12.  Minnesota Statutes 1998, section 552.04, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ORAL DISCLOSURE.] Before or after the service of 
        a written disclosure by a third party under subdivision 5, upon 
        a showing by affidavit upon information and belief that an oral 
        examination of the third party would provide a complete 
        disclosure of relevant facts, any party to the execution 
        proceedings may obtain an ex parte order requiring the third 
        party, or a representative of the third party designated by name 
        or by title, to appear for oral examination before the court or 
        a referee appointed by the court.  Notice of the examination 
        must be given to all parties.  This subdivision does not apply 
        to financial institutions complying with section 552.06. 
           Sec. 13.  Minnesota Statutes 1998, section 552.04, 
        subdivision 11, is amended to read: 
           Subd. 11.  [BAD FAITH CLAIM.] If, in a proceeding brought 
        under section 552.05, subdivision 9, or a similar proceeding 
        under this chapter to determine a claim of exemption, the claim 
        of exemption is not upheld, and the court finds that it was 
        asserted in bad faith, the public authority shall be awarded 
        actual damages, costs, reasonable attorney's fees resulting from 
        the additional proceedings, and an amount not to exceed $100.  
        If the claim of exemption is upheld, and the court finds that 
        the public authority disregarded the claim of exemption in bad 
        faith, the judgment debtor shall be awarded actual damages, 
        costs, reasonable attorney's fees resulting from the additional 
        proceedings, and an amount not to exceed $100.  If the exemption 
        claim of the judgment debtor is found to be in bad faith, the 
        underlying judgment shall be modified to reflect assessment of 
        damages, costs, and attorney's fees.  However, if the party in 
        whose favor a penalty assessment is made is not actually 
        indebted to that party's attorney for fees, the attorney's fee 
        award shall be made directly to the attorney, and if not paid, 
        an appropriate judgment in favor of the attorney shall be 
        entered.  Any action by a public authority made in bad faith and 
        in violation of this chapter renders the execution levy void and 
        the public authority liable to the judgment debtor named in the 
        execution levy in the amount of $100, actual damages, and 
        reasonable attorney's fees and costs.  
           Sec. 14.  Minnesota Statutes 1998, section 552.04, 
        subdivision 16, is amended to read: 
           Subd. 16.  [PRIORITY OF LEVY.] Notwithstanding section 
        52.12, a levy by the public authority made under this section on 
        an obligor's a judgment debtor's funds on deposit in a financial 
        institution located in this state has priority over any 
        unexercised right of setoff of the financial institution to 
        apply the levied funds toward the balance of an outstanding loan 
        or loans owed by the obligor judgment debtor to the financial 
        institution.  A claim by the financial institution that it 
        exercised its right to setoff prior to the levy by the public 
        authority must be substantiated by evidence of the date of the 
        setoff and must be verified by the sworn statement of a 
        responsible corporate officer of the financial institution.  For 
        purposes of determining the priority of a levy made under this 
        section, the levy must be treated as if it were an execution 
        made under chapter 550. 
           Sec. 15.  [552.06] [SUMMARY EXECUTION OF SUPPORT JUDGMENT 
        UPON FUNDS AT A FINANCIAL INSTITUTION.] 
           Subdivision 1.  [COMMENCEMENT OF SUMMARY EXECUTION.] (a) 
        This section applies to a judgment debtor who is in arrears in 
        court-ordered support payments in an amount equal to or greater 
        than five times the judgment debtor's total support order.  
           (b) Section 518.5513 applies to this section, except if it 
        conflicts with the specific provisions of this section, this 
        section applies.  
           (c) Time frames set out in the rules of civil procedure 
        that are inconsistent with this section do not apply to this 
        section.  
           (d) The public authority may not proceed with a summary 
        execution of support judgment proceeding: 
           (1) if the judgment debtor is in compliance with a 
        previously executed written payment agreement approved by the 
        public authority or the court; and 
           (2) until after the judgment has been submitted for federal 
        or state tax intercept. 
           (e) Upon receipt of information under section 13B.06 that a 
        judgment debtor holds an account at the financial institution, 
        the public authority may send the financial institution a notice 
        of support judgment levy.  
           (f) The support judgment levy and accompanying 
        documentation must contain the name of the judgment debtor, the 
        judgment debtor's social security number, any necessary 
        verifying information, the amount of the judgment, and the 
        procedures necessary for the financial institution to process 
        the notice of support judgment levy and complete the disclosure 
        form.  
           (g) Notice of support judgment levy under this section 
        commences without notice to the judgment debtor and without the 
        need for prior judicial notice or hearing.  
           (h) Within three business days after the public authority 
        sends the notice of support judgment levy to the financial 
        institution, the public authority shall send the judgment debtor 
        a copy of the notice of support judgment levy by first class 
        mail at the judgment debtor's last known address.  In addition 
        to the copy of the notice of support judgment levy, information 
        must be provided that describes the exemptions a judgment debtor 
        may claim and the form and procedure for claiming an exemption, 
        the informal resolution process, the responsibilities of the 
        judgment debtor, and the procedure and time frames to contest 
        the levy.  
           Subd. 2.  [RESPONSIBILITIES OF THE FINANCIAL 
        INSTITUTION.] (a) Upon receipt by the financial institution of a 
        notice of support judgment levy, the financial institution shall 
        seize all funds up to and including the amount contained in the 
        notice from the judgment debtor's account. 
           (b) Forty-five days after receiving the levy, the financial 
        institution shall complete the notice of support judgment levy 
        and disclosure form and forward it together with the amount 
        indicated on line 8 of the disclosure form, not to exceed the 
        total amount seized, to the public authority at the address 
        indicated in the notice of support judgment levy. 
           (c) When the judgment debtor and the public authority 
        informally resolve a dispute under subdivision 3 and the public 
        authority sends a notice of release to the financial 
        institution, the financial institution shall release seized 
        funds in accordance with the notice of release. 
           (d) If the financial institution receives notice of a 
        contest of the summary execution of support judgment, the 
        financial institution shall continue to hold the funds during 
        the period of contest inclusive of any applicable appeal period 
        and, upon receipt of notice to release from the public 
        authority, shall send the lesser of the amount indicated in the 
        notice of release, or the amount indicated on line 8 of the 
        notice of support judgment levy and disclosure form not to 
        exceed the total amount seized. 
           (e) If a judgment debtor has multiple accounts within the 
        financial institution, the financial institution shall seize 
        funds in as many accounts of the judgment debtor as is necessary 
        to equal the amount contained in the notice of support judgment 
        levy.  
           (f) A financial institution that receives more than one 
        notice of support judgment levy under this section shall 
        withhold sufficient funds to satisfy all notices of support 
        judgment levy, if possible. 
           (g) The Consumer Credit Protection Act, United States Code, 
        title 15, section 1673(b), does not apply to funds withheld by a 
        financial institution under this section.  
           (h) The public authority shall pay a fee of $15 per levy to 
        the financial institution.  Financial institutions and the 
        commissioner of human services shall establish procedures to 
        automate the payment of this fee to the maximum extent 
        possible.  The fee may be recovered by the public authority from 
        the judgment debtor as an allowable cost. 
           (i) No financial institution is liable for damages for 
        complying with this section.  The financial institution may rely 
        on the date of mailing or delivery of a notice to it in 
        computing any time periods in this section. 
           Subd. 3.  [INFORMAL RESOLUTIONS OF DISPUTES.] (a) After the 
        judgment debtor receives a notice of support judgment levy, the 
        judgment debtor may contact the public authority with 
        information regarding a mistake of fact or claim of exemption.  
        In the event the matter is resolved, the public authority shall 
        contact the financial institution and forward to the financial 
        institution a notice of release regarding the appropriate 
        transfer of funds and send a copy to the judgment debtor.  
           (b) Contact by the judgment debtor under this subdivision 
        does not constitute a contest to the levy under subdivision 5.  
        The time frame to contest the support judgment levy under 
        subdivision 5 is not stayed while the judgment debtor contacts 
        the public authority.  The judgment debtor may contest the levy 
        under subdivision 5.  
           Subd. 4.  [RESPONSIBILITIES OF THE PUBLIC AUTHORITY.] (a) 
        If a judgment debtor serves the public authority with a notice 
        of motion and motion under subdivision 5, the public authority 
        shall immediately notify:  
           (1) the financial institution, directing the financial 
        institution to continue holding the funds pending resolution of 
        the matter; and 
           (2) the obligee, by mailing by first class mail a copy of 
        the notice of motion and motion.  
           (b) Upon final resolution of the matter, including the 
        applicable appeal times, the public authority shall forward to 
        the financial institution a notice of release regarding the 
        appropriate transfer of funds.  
           (c) Funds received by the public authority must be applied 
        to the judgment identified in the support judgment levy notice 
        in compliance with federal regulations.  
           (d) In the event that multiple notices result in an amount 
        of seized funds that is insufficient to satisfy all of the 
        support judgment levies, the public authority shall distribute 
        funds to satisfy each support judgment levy in the order in 
        which they were sent to the financial institution.  
           Subd. 5.  [EXEMPTION AND CONTEST.] (a) [PROCESS TO CLAIM 
        EXEMPTION.] If the judgment debtor elects to claim an exemption, 
        the judgment debtor shall complete the applicable portion of the 
        exemption form, sign it under penalty of perjury, and deliver 
        one copy to the public authority within 20 calendar days of the 
        date postmarked on the correspondence mailed to the judgment 
        debtor.  Failure of the judgment debtor to deliver the executed 
        exemption does not constitute a waiver of any claimed right to 
        an exemption.  Upon timely receipt of a claim of exemption by 
        the public authority, funds not claimed to be exempt by the 
        judgment debtor remain subject to the support judgment levy.  If 
        a claim of exemption is resolved informally, the public 
        authority shall proceed according to subdivision 3.  
           (b) [PROCESS TO CONTEST.] (1) The judgment debtor may 
        contest a support judgment levy on the limited grounds that the 
        seizure or the amount seized is improper due to mistake of fact 
        or that the funds held in the account are exempt from levy for 
        child support purposes under state or federal law. 
           (2) If the judgment debtor chooses to contest the 
        withholding, within 30 calendar days of notice of support 
        judgment levy, the debtor shall: 
           (i) file a motion with the court administrator, including 
        in the motion the alleged mistake of fact or the basis for any 
        claim that the funds are exempted from withholding; 
           (ii) obtain a hearing date from the court administrator; 
        and 
           (iii) serve the public authority, either personally or by 
        fax, with a copy of the notice of motion and motion no later 
        than two business days after obtaining a hearing date. 
           (c) [HEARING.] The hearing date shall be set at the 
        earliest practicable time, but the matter must be heard no later 
        than ten calendar days from the date a request for hearing is 
        made.  The court administrator shall schedule these matters to 
        be heard in the expedited process before a child support 
        magistrate, but may schedule these cases in district court if 
        the availability of child support magistrate does not permit a 
        hearing to occur within the time frames of this section.  
           Subd. 6.  [FORM.] The state court administrator's office 
        shall prepare and make available to the court administrators and 
        judgment debtors a form to be submitted by the judgment debtor 
        in support of a motion to contest the support judgment levy 
        under this section.  
           Sec. 16.  [INSTRUCTION TO REVISOR.] 
           In the next edition of Minnesota Statutes, the revisor of 
        statutes shall change references to section 552.05 to section 
        552.06. 
           Sec. 17.  [REPEALER.] 
           (a) Minnesota Statutes 1998, section 552.05, subdivisions 
        1, 2, 3, 6, 7, 8, and 9, are repealed.  
           (b) Minnesota Statutes 1999 Supplement, section 552.05, 
        subdivisions 4, 5, and 10, are repealed. 
           (c) Minnesota Rules, parts 9500.1800; 9500.1805; 9500.1810; 
        9500.1811; 9500.1812; 9500.1815; 9500.1817; 9500.1820; and 
        9500.1821, are repealed effective October 1, 2001. 
           Presented to the governor May 9, 2000 
           Signed by the governor May 11, 2000, 5:36 p.m.