Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes