1.1                          A bill for an act 
  1.2             relating to child support enforcement; authorizing 
  1.3             disclosure of certain data to the attorney general; 
  1.4             providing for certain financial data matches; changing 
  1.5             provisions for driver's license suspension, motor 
  1.6             vehicle liens, payment agreements, and child support 
  1.7             judgments; providing for publication of a "Most 
  1.8             Wanted" list; providing for case reviewers; providing 
  1.9             for a child support lien; requiring mandatory jail 
  1.10            time for certain offenders; requiring a study; 
  1.11            appropriating money; specifying penalties; amending 
  1.12            Minnesota Statutes 1996, sections 13.46, subdivision 
  1.13            2; 518.551, subdivisions 13 and 14; 518.553; 518.575; 
  1.14            548.091, subdivisions 1a, 2a, 3a, and by adding 
  1.15            subdivisions; and 609.375, by adding a subdivision; 
  1.16            proposing coding for new law in Minnesota Statutes, 
  1.17            chapters 13B; 518; and 548; repealing Minnesota 
  1.18            Statutes 1996, section 609.375, subdivisions 3, 4, and 
  1.19            6. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 1996, section 13.46, 
  1.22  subdivision 2, is amended to read: 
  1.23     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  1.24  a statute specifically provides a different classification, data 
  1.25  on individuals collected, maintained, used, or disseminated by 
  1.26  the welfare system is private data on individuals, and shall not 
  1.27  be disclosed except:  
  1.28     (1) pursuant to section 13.05; 
  1.29     (2) pursuant to court order; 
  1.30     (3) pursuant to a statute specifically authorizing access 
  1.31  to the private data; 
  1.32     (4) to an agent of the welfare system, including the 
  2.1   attorney general, a law enforcement person, attorney, or 
  2.2   investigator acting for it in the investigation or prosecution 
  2.3   of a criminal or civil proceeding relating to the administration 
  2.4   of a program; 
  2.5      (5) to personnel of the welfare system who require the data 
  2.6   to determine eligibility, amount of assistance, and the need to 
  2.7   provide services of additional programs to the individual; 
  2.8      (6) to administer federal funds or programs; 
  2.9      (7) between personnel of the welfare system working in the 
  2.10  same program; 
  2.11     (8) the amounts of cash public assistance and relief paid 
  2.12  to welfare recipients in this state, including their names, 
  2.13  social security numbers, income, addresses, and other data as 
  2.14  required, upon request by the department of revenue to 
  2.15  administer the property tax refund law, supplemental housing 
  2.16  allowance, early refund of refundable tax credits, and the 
  2.17  income tax.  "Refundable tax credits" means the dependent care 
  2.18  credit under section 290.067, the Minnesota working family 
  2.19  credit under section 290.0671, the property tax refund under 
  2.20  section 290A.04, and, if the required federal waiver or waivers 
  2.21  are granted, the federal earned income tax credit under section 
  2.22  32 of the Internal Revenue Code; 
  2.23     (9) to the Minnesota department of economic security for 
  2.24  the purpose of monitoring the eligibility of the data subject 
  2.25  for reemployment insurance, for any employment or training 
  2.26  program administered, supervised, or certified by that agency, 
  2.27  or for the purpose of administering any rehabilitation program, 
  2.28  whether alone or in conjunction with the welfare system, and to 
  2.29  verify receipt of energy assistance for the telephone assistance 
  2.30  plan; 
  2.31     (10) to appropriate parties in connection with an emergency 
  2.32  if knowledge of the information is necessary to protect the 
  2.33  health or safety of the individual or other individuals or 
  2.34  persons; 
  2.35     (11) data maintained by residential programs as defined in 
  2.36  section 245A.02 may be disclosed to the protection and advocacy 
  3.1   system established in this state pursuant to Part C of Public 
  3.2   Law Number 98-527 to protect the legal and human rights of 
  3.3   persons with mental retardation or other related conditions who 
  3.4   live in residential facilities for these persons if the 
  3.5   protection and advocacy system receives a complaint by or on 
  3.6   behalf of that person and the person does not have a legal 
  3.7   guardian or the state or a designee of the state is the legal 
  3.8   guardian of the person; 
  3.9      (12) to the county medical examiner or the county coroner 
  3.10  for identifying or locating relatives or friends of a deceased 
  3.11  person; 
  3.12     (13) data on a child support obligor who makes payments to 
  3.13  the public agency may be disclosed to the higher education 
  3.14  services office to the extent necessary to determine eligibility 
  3.15  under section 136A.121, subdivision 2, clause (5); 
  3.16     (14) participant social security numbers and names 
  3.17  collected by the telephone assistance program may be disclosed 
  3.18  to the department of revenue to conduct an electronic data match 
  3.19  with the property tax refund database to determine eligibility 
  3.20  under section 237.70, subdivision 4a; 
  3.21     (15) the current address of a recipient of aid to families 
  3.22  with dependent children may be disclosed to law enforcement 
  3.23  officers who provide the name and social security number of the 
  3.24  recipient and satisfactorily demonstrate that:  (i) the 
  3.25  recipient is a fugitive felon, including the grounds for this 
  3.26  determination; (ii) the location or apprehension of the felon is 
  3.27  within the law enforcement officer's official duties; and (iii) 
  3.28  the request is made in writing and in the proper exercise of 
  3.29  those duties; 
  3.30     (16) the current address of a recipient of general 
  3.31  assistance, work readiness, or general assistance medical care 
  3.32  may be disclosed to probation officers and corrections agents 
  3.33  who are supervising the recipient, and to law enforcement 
  3.34  officers who are investigating the recipient in connection with 
  3.35  a felony level offense; 
  3.36     (17) information obtained from food stamp applicant or 
  4.1   recipient households may be disclosed to local, state, or 
  4.2   federal law enforcement officials, upon their written request, 
  4.3   for the purpose of investigating an alleged violation of the 
  4.4   food stamp act, in accordance with Code of Federal Regulations, 
  4.5   title 7, section 272.1(c); 
  4.6      (18) data on a child support obligor who is in arrears may 
  4.7   be disclosed for purposes of publishing the data pursuant to 
  4.8   section 518.575; 
  4.9      (19) data on child support payments made by a child support 
  4.10  obligor, data on the enforcement actions undertaken by the 
  4.11  public authority and the status of those actions, and data on 
  4.12  the current address, place of employment, and income of the 
  4.13  obligor may be disclosed to the obligee; 
  4.14     (20) data in the work reporting system may be disclosed 
  4.15  under section 256.998, subdivision 7; 
  4.16     (21) to the department of children, families, and learning 
  4.17  for the purpose of matching department of children, families, 
  4.18  and learning student data with public assistance data to 
  4.19  determine students eligible for free and reduced price meals, 
  4.20  meal supplements, and free milk pursuant to United States Code, 
  4.21  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
  4.22  produce accurate numbers of students receiving aid to families 
  4.23  with dependent children as required by section 124.175; and to 
  4.24  allocate federal and state funds that are distributed based on 
  4.25  income of the student's family; or 
  4.26     (22) the current address and telephone number of program 
  4.27  recipients and emergency contacts may be released to the 
  4.28  commissioner of health or a local board of health as defined in 
  4.29  section 145A.02, subdivision 2, when the commissioner or local 
  4.30  board of health has reason to believe that a program recipient 
  4.31  is a disease case, carrier, suspect case, or at risk of illness, 
  4.32  and the data are necessary to locate the person. 
  4.33     (b) Information on persons who have been treated for drug 
  4.34  or alcohol abuse may only be disclosed in accordance with the 
  4.35  requirements of Code of Federal Regulations, title 42, sections 
  4.36  2.1 to 2.67. 
  5.1      (c) Data provided to law enforcement agencies under 
  5.2   paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
  5.3   investigative data and are confidential or protected nonpublic 
  5.4   while the investigation is active.  The data are private after 
  5.5   the investigation becomes inactive under section 13.82, 
  5.6   subdivision 5, paragraph (a) or (b). 
  5.7      (d) Mental health data shall be treated as provided in 
  5.8   subdivisions 7, 8, and 9, but is not subject to the access 
  5.9   provisions of subdivision 10, paragraph (b). 
  5.10     Sec. 2.  [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 
  5.11  DATA MATCHES.] 
  5.12     Subdivision 1.  [DEFINITIONS.] The definitions in this 
  5.13  subdivision apply to this section. 
  5.14     (a) "Account" means a demand deposit account, checking or 
  5.15  negotiable withdraw order account, savings account, time deposit 
  5.16  account, or money market mutual fund. 
  5.17     (b) "Account information" means the type of account, the 
  5.18  account number, whether the account is singly or jointly owned, 
  5.19  and in the case of jointly owned accounts the name and address 
  5.20  of the nonobligor account owner if available. 
  5.21     (c) "Financial institution" means any of the following that 
  5.22  do business within the state: 
  5.23     (1) federal or state commercial banks and federal or state 
  5.24  savings banks, including savings and loan associations and 
  5.25  cooperative banks; 
  5.26     (2) federal and state chartered credit unions; 
  5.27     (3) benefit associations; 
  5.28     (4) life insurance companies; 
  5.29     (5) safe deposit companies; and 
  5.30     (6) money market mutual funds. 
  5.31     (d) "Obligor" means an individual who is in arrears in 
  5.32  court-ordered child support or maintenance payments, or both, in 
  5.33  an amount equal to or greater than three times the obligor's 
  5.34  total monthly support and maintenance payments, irrespective of 
  5.35  when the arrears arose, and is not in compliance with a written 
  5.36  payment agreement regarding both current support and arrearages 
  6.1   approved by the court, an administrative law judge, or the 
  6.2   public authority. 
  6.3      (e) "Public authority" means the public authority 
  6.4   responsible for child support enforcement. 
  6.5      Subd. 2.  [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 
  6.6   of human services shall establish a process for the comparison 
  6.7   of account information data held by financial institutions with 
  6.8   the public authority's database of child support obligors.  The 
  6.9   commissioner shall inform the financial industry of the 
  6.10  requirements of this section and the means by which financial 
  6.11  institutions can comply.  The commissioner may contract for 
  6.12  services to carry out this section. 
  6.13     Subd. 3.  [DUTY TO PROVIDE DATA.] On written request by a 
  6.14  public authority, a financial institution shall provide to the 
  6.15  public authority on a quarterly basis the name, address, social 
  6.16  security number, tax identification number if known, and all 
  6.17  account information for each obligor who maintains an account at 
  6.18  the financial institution. 
  6.19     Subd. 4.  [METHOD TO PROVIDE DATA.] To comply with the 
  6.20  requirements of this section, a financial institution may either:
  6.21     (1) provide to the public authority a list of all account 
  6.22  holders for the public authority to compare against its list of 
  6.23  child support obligors for the purpose of identifying which 
  6.24  obligors maintain an account at the financial institution; or 
  6.25     (2) obtain a list of child support obligors from the public 
  6.26  authority and compare that data to the data maintained at the 
  6.27  financial institution to identify which of the identified 
  6.28  obligors maintains an account at the financial institution. 
  6.29     A financial institution shall elect either method in 
  6.30  writing upon written request of the public authority, and the 
  6.31  election remains in effect unless the public authority agrees in 
  6.32  writing to a change. 
  6.33     Subd. 5.  [MEANS TO PROVIDE DATA.] A financial institution 
  6.34  may provide the required data by submitting electronic media in 
  6.35  a compatible format, delivering, mailing, or telefaxing a copy 
  6.36  of the data, or by other means authorized by the commissioner of 
  7.1   human services that will result in timely reporting. 
  7.2      Subd. 6.  [ACCESS TO DATA.] With regard to account 
  7.3   information on all account holders provided by a financial 
  7.4   institution under subdivision 4, clause (1), the commissioner of 
  7.5   human services shall retain the reported information only until 
  7.6   the account information is compared against the public 
  7.7   authority's obligor database.  All account information that does 
  7.8   not pertain to an obligor listed in the public authority's 
  7.9   database must be immediately discarded, and no retention or 
  7.10  publication may be made of that data by the public authority.  
  7.11  All account information that does pertain to an obligor listed 
  7.12  in the public authority's database must be incorporated into the 
  7.13  public authority's database.  Access to that data is governed by 
  7.14  chapter 13. 
  7.15     Subd. 7.  [FEES.] A financial institution may charge and 
  7.16  collect a fee under paragraph (a) or (b) from the public 
  7.17  authority for providing account information to the public 
  7.18  authority. 
  7.19     (a) A financial institution providing required data under 
  7.20  subdivision 4, clause (1), may charge as a fee each year, for 
  7.21  the first five years following enactment, one-fifth of the 
  7.22  financial institution's cost of system development directly 
  7.23  related to compliance with this section and also $....... per 
  7.24  name provided to the public authority.  Beginning in the sixth 
  7.25  year following enactment, the fee may include only $....... per 
  7.26  name provided to the public authority.  To charge its systems 
  7.27  development costs to the public authority as part of its fee, 
  7.28  the financial institution must certify to the public authority 
  7.29  the total amount of systems development costs directly related 
  7.30  to compliance with this section and provide an itemized 
  7.31  breakdown of those costs to the public authority.  The public 
  7.32  authority shall review and approve the submitted costs if the 
  7.33  itemization appears reasonable and necessary. 
  7.34     (b) A financial institution that provides account 
  7.35  information to the public authority under subdivision 4, clause 
  7.36  (2), may charge and collect a fee from the public authority in 
  8.1   the amount of $....... per obligor name provided by the public 
  8.2   authority. 
  8.3      Subd. 8.  [FAILURE TO RESPOND TO REQUEST FOR 
  8.4   INFORMATION.] The public authority shall send by certified mail 
  8.5   a written notice of noncompliance to a financial institution 
  8.6   that fails to respond to a first written request for information 
  8.7   under this section.  The notice of noncompliance must explain 
  8.8   the requirements of this section and advise the financial 
  8.9   institution of the penalty for noncompliance.  A financial 
  8.10  institution that receives a second notice of noncompliance is 
  8.11  subject to a civil penalty of $1,000 for its failure to comply.  
  8.12  A financial institution that continues to fail to comply with 
  8.13  this section is subject to a civil penalty of $5,000 for the 
  8.14  second and each subsequent failure to comply.  These penalties 
  8.15  may be imposed and collected by the public authority. 
  8.16     Subd. 9.  [IMMUNITY.] A financial institution that provides 
  8.17  or reasonably attempts to provide information to the public 
  8.18  authority in compliance with this section is not liable to any 
  8.19  person for disclosing the information or for taking any other 
  8.20  action in good faith as authorized by this section or section 
  8.21  548.092.  A financial institution that receives data from the 
  8.22  public authority under subdivision 4, clause (2), is not immune 
  8.23  and is liable for any unauthorized disclosure of that data as 
  8.24  required by chapter 13. 
  8.25     Sec. 3.  Minnesota Statutes 1996, section 518.551, 
  8.26  subdivision 13, is amended to read: 
  8.27     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
  8.28  of an obligee, which has been properly served on the obligor and 
  8.29  upon which there has been an opportunity for hearing, if a court 
  8.30  finds that the obligor has been or may be issued a driver's 
  8.31  license by the commissioner of public safety and the obligor is 
  8.32  in arrears in court-ordered child support or maintenance 
  8.33  payments, or both, in an amount equal to or greater than three 
  8.34  times the obligor's total monthly support and maintenance 
  8.35  payments, irrespective of when the arrears arose, and is not in 
  8.36  compliance with a written payment agreement regarding both 
  9.1   current support and arrearages approved by the court, an 
  9.2   administrative law judge, or the public authority, the court 
  9.3   shall order the commissioner of public safety to suspend the 
  9.4   obligor's driver's license.  The court's order must be stayed 
  9.5   for 90 days in order to allow the obligor to execute a written 
  9.6   payment agreement regarding both current support and arrearages, 
  9.7   which payment agreement must be approved by either the court or 
  9.8   the public authority responsible for child support enforcement.  
  9.9   If the obligor has not executed or is not in compliance with a 
  9.10  written payment agreement regarding both current support and 
  9.11  arrearages after the 90 days expires, the court's order becomes 
  9.12  effective and the commissioner of public safety shall suspend 
  9.13  the obligor's driver's license.  The remedy under this 
  9.14  subdivision is in addition to any other enforcement remedy 
  9.15  available to the court.  An obligee may not bring a motion under 
  9.16  this paragraph within 12 months of a denial of a previous motion 
  9.17  under this paragraph. 
  9.18     (b) If a public authority responsible for child support 
  9.19  enforcement determines that the obligor has been or may be 
  9.20  issued a driver's license by the commissioner of public safety 
  9.21  and the obligor is in arrears in court-ordered child support or 
  9.22  maintenance payments or both in an amount equal to or greater 
  9.23  than three times the obligor's total monthly support and 
  9.24  maintenance payments, irrespective of when the arrears arose, 
  9.25  and not in compliance with a written payment agreement regarding 
  9.26  both current support and arrearages approved by the court, an 
  9.27  administrative law judge, or the public authority, the public 
  9.28  authority shall direct the commissioner of public safety to 
  9.29  suspend the obligor's driver's license.  The remedy under this 
  9.30  subdivision is in addition to any other enforcement remedy 
  9.31  available to the public authority. 
  9.32     (c) At least 90 days prior to notifying the commissioner of 
  9.33  public safety pursuant to paragraph (b), the public authority 
  9.34  must mail a written notice to the obligor at the obligor's last 
  9.35  known address, that it intends to seek suspension of the 
  9.36  obligor's driver's license and that the obligor must request a 
 10.1   hearing within 30 days in order to contest the suspension.  If 
 10.2   the obligor makes a written request for a hearing within 30 days 
 10.3   of the date of the notice, either a court hearing or a contested 
 10.4   administrative proceeding must be held under section 518.5511, 
 10.5   subdivision 4.  Notwithstanding any law to the contrary, the 
 10.6   obligor must be served with 14 days' notice in writing 
 10.7   specifying the time and place of the hearing and the allegations 
 10.8   against the obligor.  The notice may be served personally or by 
 10.9   mail.  If the public authority does not receive a request for a 
 10.10  hearing within 30 days of the date of the notice, and the 
 10.11  obligor does not execute or is not in compliance with a written 
 10.12  payment agreement regarding both current support and arrearages 
 10.13  approved by the court, an administrative law judge, or the 
 10.14  public authority within 90 days of the date of the notice, the 
 10.15  public authority shall direct the commissioner of public safety 
 10.16  to suspend the obligor's driver's license under paragraph (b). 
 10.17     (d) At a hearing requested by the obligor under paragraph 
 10.18  (c), and on finding that the obligor is in arrears in 
 10.19  court-ordered child support or maintenance payments or both in 
 10.20  an amount equal to or greater than three times the obligor's 
 10.21  total monthly support and maintenance payments, the district 
 10.22  court or the administrative law judge shall order the 
 10.23  commissioner of public safety to suspend the obligor's driver's 
 10.24  license or operating privileges unless the court or 
 10.25  administrative law judge determines that the obligor has 
 10.26  executed and is in compliance with a written payment agreement 
 10.27  regarding both current support and arrearages approved by the 
 10.28  court, an administrative law judge, or the public authority. 
 10.29     (e) An obligor whose driver's license or operating 
 10.30  privileges are suspended may provide proof to the court or the 
 10.31  public authority responsible for child support enforcement that 
 10.32  the obligor is in compliance with all written payment agreements 
 10.33  regarding both current support and arrearages.  Within 15 days 
 10.34  of the receipt of that proof, the court or public authority 
 10.35  shall inform the commissioner of public safety that the 
 10.36  obligor's driver's license or operating privileges should no 
 11.1   longer be suspended. 
 11.2      (f) This enforcement mechanism is available retroactively 
 11.3   for the enforcement and collection of arrears consisting of 
 11.4   unpaid child support and spousal maintenance irrespective of the 
 11.5   date those arrears arose and is applicable in all cases whether 
 11.6   or not the children to whom support is owed have reached the age 
 11.7   of majority. 
 11.8      (g) On January 15, 1997, and every two years after that, 
 11.9   the commissioner of human services shall submit a report to the 
 11.10  legislature that identifies the following information relevant 
 11.11  to the implementation of this section: 
 11.12     (1) the number of child support obligors notified of an 
 11.13  intent to suspend a driver's license; 
 11.14     (2) the amount collected in payments from the child support 
 11.15  obligors notified of an intent to suspend a driver's license; 
 11.16     (3) the number of cases paid in full and payment agreements 
 11.17  executed in response to notification of an intent to suspend a 
 11.18  driver's license; 
 11.19     (4) the number of cases in which there has been 
 11.20  notification and no payments or payment agreements; 
 11.21     (5) the number of driver's licenses suspended; and 
 11.22     (6) the cost of implementation and operation of the 
 11.23  requirements of this section. 
 11.24     Sec. 4.  Minnesota Statutes 1996, section 518.551, 
 11.25  subdivision 14, is amended to read: 
 11.26     Subd. 14.  [MOTOR VEHICLE LIEN.] (a) Upon motion of an 
 11.27  obligee, if a court finds that the obligor is the registered 
 11.28  owner of a motor vehicle and the obligor is a debtor for a 
 11.29  judgment debt resulting from nonpayment of court-ordered child 
 11.30  support or maintenance payments, or both, in an amount equal to 
 11.31  or greater than three times the obligor's total monthly support 
 11.32  and maintenance payments, irrespective of when the arrears 
 11.33  arose, the court shall order the commissioner of public safety 
 11.34  to enter a lien in the name of the obligee or in the name of the 
 11.35  state of Minnesota, as appropriate, in accordance with section 
 11.36  168A.05, subdivision 8, unless the court finds that the obligor 
 12.1   is in compliance with a written payment agreement regarding both 
 12.2   current support and arrearages approved by the court, an 
 12.3   administrative law judge, or the public authority ~~or that the~~ 
 12.4   ~~obligor's interest in the motor vehicle is valued at less than~~ 
 12.5   ~~$4,500~~.  The court's order must be stayed for 90 days in order 
 12.6   to allow the obligor to either execute a written payment 
 12.7   agreement regarding both current support and arrearages, which 
 12.8   agreement shall be approved by either the court or the public 
 12.9   authority responsible for child support enforcement~~, or to allow~~ 
 12.10  ~~the obligor to demonstrate that the ownership interest in the~~ 
 12.11  ~~motor vehicle is valued at less than $4,500~~.  If the obligor has 
 12.12  not executed or is not in compliance with a written payment 
 12.13  agreement regarding both current support and arrearages approved 
 12.14  by the court, an administrative law judge, or the public 
 12.15  authority ~~or has not demonstrated that the ownership interest in~~ 
 12.16  ~~the motor vehicle is valued at less than $4,500~~ within the 
 12.17  90-day period, the court's order becomes effective and the 
 12.18  commissioner of public safety shall record the lien.  The remedy 
 12.19  under this subdivision is in addition to any other enforcement 
 12.20  remedy available to the court. 
 12.21     (b) If a public authority responsible for child support 
 12.22  enforcement determines that the obligor is the registered owner 
 12.23  of a motor vehicle and the obligor is a debtor for judgment debt 
 12.24  resulting from nonpayment of court-ordered child support or 
 12.25  maintenance payments, or both, in an amount equal to or greater 
 12.26  than three times the obligor's total monthly support and 
 12.27  maintenance payments, irrespective of when the arrears arose, 
 12.28  the public authority shall direct the commissioner of public 
 12.29  safety to enter a lien in the name of the obligee or in the name 
 12.30  of the state of Minnesota, as appropriate, under section 
 12.31  168A.05, subdivision 8, unless the public authority determines 
 12.32  that the obligor is in compliance with a written payment 
 12.33  agreement regarding both current support and arrearages approved 
 12.34  by the court, an administrative law judge, or the public 
 12.35  authority ~~or that the obligor's ownership interest in the motor~~ 
 12.36  ~~vehicle is valued at less than $4,500~~.  The remedy under this 
 13.1   subdivision is in addition to any other enforcement remedy 
 13.2   available to the public agency. 
 13.3      (c) At least 90 days prior to notifying the commissioner of 
 13.4   public safety pursuant to paragraph (b), the public authority 
 13.5   must mail a written notice to the obligor at the obligor's last 
 13.6   known address, that it intends to record a lien on the obligor's 
 13.7   motor vehicle certificate of title and that the obligor must 
 13.8   request a hearing within 30 days in order to contest the 
 13.9   action.  If the obligor makes a written request for a hearing 
 13.10  within 30 days of the date of the notice, either a court hearing 
 13.11  or a contested administrative proceeding must be held under 
 13.12  section 518.5511, subdivision 4.  Notwithstanding any law to the 
 13.13  contrary, the obligor must be served with 14 days' notice in 
 13.14  writing specifying the time and place of the hearing and the 
 13.15  allegations against the obligor.  The notice may be served 
 13.16  personally or by mail.  If the public authority does not receive 
 13.17  a request for a hearing within 30 days of the date of the notice 
 13.18  and the obligor does not execute or is not in compliance with a 
 13.19  written payment agreement regarding both current support and 
 13.20  arrearages approved by the court, an administrative law judge, 
 13.21  or the public authority ~~or demonstrate to the public authority~~ 
 13.22  ~~that the obligor's ownership interest in the motor vehicle is~~ 
 13.23  ~~valued at less than $4,500~~ within 90 days of the date of the 
 13.24  notice, the public authority shall direct the commissioner of 
 13.25  public safety to record the lien under paragraph (b). 
 13.26     (d) At a hearing requested by the obligor under paragraph 
 13.27  (c), and on finding that the obligor is in arrears in 
 13.28  court-ordered child support or maintenance payments or both in 
 13.29  an amount equal to or greater than three times the obligor's 
 13.30  total monthly support and maintenance payments, the district 
 13.31  court or the administrative law judge shall order the 
 13.32  commissioner of public safety to record the lien unless the 
 13.33  court or administrative law judge determines that~~:~~ 
 13.34     ~~(1)~~ the obligor has executed and is in compliance with a 
 13.35  written payment agreement regarding both current support and 
 13.36  arrearages determined to be acceptable by the court, an 
 14.1   administrative law judge, or the public authority~~; or~~ 
 14.2      ~~(2) the obligor has demonstrated that the ownership~~ 
 14.3   ~~interest in the motor vehicle is valued at less than $4,500~~. 
 14.4      (e) An obligor who has had a lien recorded against a motor 
 14.5   vehicle certificate of title may provide proof to the court or 
 14.6   the public authority responsible for child support enforcement 
 14.7   that the obligor is in compliance with all written payment 
 14.8   agreements regarding both current support and arrearages.  
 14.9   Within 15 days of the receipt of that proof, the court or public 
 14.10  authority shall execute a release of security interest under 
 14.11  section 168A.20, subdivision 4, and mail or deliver the release 
 14.12  to the owner or other authorized person.  ~~The dollar amounts in~~ 
 14.13  ~~this section shall change periodically in the manner provided in~~ 
 14.14  ~~section 550.37, subdivision 4a.~~ 
 14.15     (f) This enforcement mechanism is available retroactively 
 14.16  for the enforcement and collection of arrears consisting of 
 14.17  unpaid child support and spousal maintenance irrespective of the 
 14.18  date those arrears arose and is applicable in all cases whether 
 14.19  or not the children to whom support is owed have reached the age 
 14.20  of majority. 
 14.21     Sec. 5.  Minnesota Statutes 1996, section 518.553, is 
 14.22  amended to read: 
 14.23     518.553 [PAYMENT AGREEMENTS.] 
 14.24     In proposing or approving proposed written payment 
 14.25  agreements for purposes of section 518.551, the court, an 
 14.26  administrative law judge, or the public authority shall take 
 14.27  into consideration the amount of the arrearages, the amount of 
 14.28  the current support order, any pending request for modification, 
 14.29  and the earnings of the obligor.  The court, administrative law 
 14.30  judge, or public authority shall consider the individual 
 14.31  financial circumstances of each obligor in evaluating the 
 14.32  obligor's ability to pay any proposed payment agreement and 
 14.33  shall propose a reasonable payment agreement tailored to the 
 14.34  individual financial circumstances of each obligor. 
 14.35     Sec. 6.  Minnesota Statutes 1996, section 518.575, is 
 14.36  amended to read: 
 15.1      518.575 [PUBLICATION OF ~~NAMES OF DELINQUENT CHILD SUPPORT~~ 
 15.2   ~~OBLIGORS~~ MOST WANTED LIST.] 
 15.3      Subdivision 1.  [PUBLICATION OF NAMES.] Twice each year, 
 15.4   the attorney general, in consultation with the commissioner of 
 15.5   human services, shall publish a list of the names ~~and~~, 
 15.6   photographs, and other identifying information, including last 
 15.7   known addresses of ~~each person who (1) is a child support~~ 
 15.8   ~~obligor, (2) is at least $3,000 in arrears, and (3) is~~ at least 
 15.9   ten individuals who meet the following criteria:  
 15.10     (1) owe the largest amounts of unpaid child support; 
 15.11     (2) are not in compliance with a written payment agreement 
 15.12  regarding both current support and arrearages approved by the 
 15.13  court, an administrative law judge, or the public authority; and 
 15.14     (3) cannot currently be located by the public authority for 
 15.15  the purposes of enforcing a child support order. 
 15.16  The ~~commissioner of human services~~ attorney general shall 
 15.17  publish the ~~name of each obligor in the newspaper or newspapers~~ 
 15.18  ~~of widest circulation in the area where the obligor is most~~ 
 15.19  ~~likely to be residing.  For each publication, the commissioner~~ 
 15.20  ~~shall release the list of all names being published not earlier~~ 
 15.21  ~~than the first day on which names appear in any newspaper.  An~~ 
 15.22  ~~obligor's name may not be published if the obligor claims in~~ 
 15.23  ~~writing, and the commissioner of human services determines,~~ 
 15.24  ~~there is good cause for the nonpayment of child support.  Good~~ 
 15.25  ~~cause includes the following:  (i) there is a mistake in the~~ 
 15.26  ~~obligor's identity or the amount of the obligor's arrears; (ii)~~ 
 15.27  ~~arrears are reserved by the court or there is a pending legal~~ 
 15.28  ~~action concerning the unpaid child support; or (iii) other~~ 
 15.29  ~~circumstances as determined by the commissioner~~ "Most Wanted" 
 15.30  list in the most cost-effective means available that is 
 15.31  calculated to lead to the location of the individuals sought, 
 15.32  including publication on the Internet.  The list must be based 
 15.33  on the best information available to the state at the time of 
 15.34  publication. 
 15.35     Before publishing the name of the obligor, the attorney 
 15.36  general, in consultation with the department of human services, 
 16.1   shall send a notice to the obligor's last known address which 
 16.2   states the department's intention to publish the obligor's 
 16.3   name ~~and~~, photograph, the amount of child support the obligor 
 16.4   owes, and other identifying information.  The notice must also 
 16.5   provide an opportunity to have the obligor's name removed from 
 16.6   the list by paying the arrearage or by entering into an 
 16.7   agreement to pay the arrearage, and the final date when the 
 16.8   payment or agreement can be accepted. 
 16.9      ~~The department of human services shall insert with the~~ 
 16.10  ~~notices sent to the obligee, a notice stating the intent to~~ 
 16.11  ~~publish the obligor's name, and the criteria used to determine~~ 
 16.12  ~~the publication of the obligor's name.~~  Prior to publishing any 
 16.13  obligor's name, photograph, or other identifying information, 
 16.14  the attorney general, in consultation with the department of 
 16.15  human services, shall obtain the written consent of the obligee 
 16.16  to whom the child support is owed. 
 16.17     Subd. 2.  [NAMES PUBLISHED IN ERROR.] If the 
 16.18  ~~commissioner~~ attorney general publishes a name or photograph 
 16.19  under subdivision 1 which is in error, the ~~commissioner~~ attorney 
 16.20  general must also offer to publish a printed retraction and 
 16.21  apology acknowledging that the name or photograph was published 
 16.22  in error.  The retraction and apology must appear in each 
 16.23  publication that included the original notice with the name or 
 16.24  photograph listed in error, and it must appear in the same type 
 16.25  size and appear the same number of times as the original notice. 
 16.26     Sec. 7.  [518.618] [CASE REVIEWER.] 
 16.27     The commissioner shall make a case reviewer available to 
 16.28  obligors and obligees.  The reviewer must be available to answer 
 16.29  questions concerning the collection process and to review the 
 16.30  collection activity taken.  A reviewer who reasonably believes 
 16.31  that a particular action being taken is unreasonable or unfair 
 16.32  may make recommendations to the commissioner and the applicable 
 16.33  county in regard to the collection action. 
 16.34     Sec. 8.  Minnesota Statutes 1996, section 548.091, 
 16.35  subdivision 1a, is amended to read: 
 16.36     Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
 17.1   (a) Any payment or installment of support required by a judgment 
 17.2   or decree of dissolution or legal separation, determination of 
 17.3   parentage, an order under chapter 518C, an order under section 
 17.4   256.87, or an order under section 260.251, that is not paid or 
 17.5   withheld from the obligor's income as required under section 
 17.6   518.611 or 518.613, or which is ordered as child support by 
 17.7   judgment, decree, or order by a court in any other state, is a 
 17.8   judgment by operation of law on and after the date it is due and 
 17.9   is entitled to full faith and credit in this state and any other 
 17.10  state.  Except as otherwise provided by paragraph (b), interest 
 17.11  accrues from the date the unpaid amount due is greater than the 
 17.12  current support due at the annual rate provided in section 
 17.13  549.09, subdivision 1, plus two percent, not to exceed an annual 
 17.14  rate of 18 percent.  A payment or installment of support that 
 17.15  becomes a judgment by operation of law between the date on which 
 17.16  a party served notice of a motion for modification under section 
 17.17  518.64, subdivision 2, and the date of the court's order on 
 17.18  modification may be modified under that subdivision. 
 17.19     (b) Notwithstanding the provisions of section 549.09, upon 
 17.20  motion to the court and upon proof by the obligor of 36 
 17.21  consecutive months of complete and timely payments of both 
 17.22  current support and court-ordered paybacks of a child support 
 17.23  debt or arrearage, the court may order interest on the remaining 
 17.24  debt or arrearage to stop accruing.  Timely payments are those 
 17.25  made in the month in which they are due.  If, after that time, 
 17.26  the obligor fails to make complete and timely payments of both 
 17.27  current support and court-ordered paybacks of child support debt 
 17.28  or arrearage, the public authority or the obligee may move the 
 17.29  court for the reinstatement of interest as of the month in which 
 17.30  the obligor ceased making complete and timely payments. 
 17.31     The court shall provide copies of all orders issued under 
 17.32  this section to the public authority.  The commissioner of human 
 17.33  services shall prepare and make available to the court and the 
 17.34  parties forms to be submitted by the parties in support of a 
 17.35  motion under this paragraph. 
 17.36     Sec. 9.  Minnesota Statutes 1996, section 548.091, 
 18.1   subdivision 2a, is amended to read: 
 18.2      Subd. 2a.  [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 
 18.3   after the date an unpaid amount becomes a judgment by operation 
 18.4   of law under subdivision 1a, the obligee or the public authority 
 18.5   may file with the court administrator, either electronically or 
 18.6   by other means: 
 18.7      (1) a statement identifying, or a copy of, the judgment or 
 18.8   decree of dissolution or legal separation, determination of 
 18.9   parentage, order under chapter 518C, an order under section 
 18.10  256.87, ~~or~~ an order under section 260.251, or judgment, decree, 
 18.11  or order for child support by a court in any other state, which 
 18.12  provides for installment or periodic payments of child support, 
 18.13  or a judgment or notice of attorney fees and collection costs 
 18.14  under section 518.14, subdivision 2; 
 18.15     (2) an affidavit of default.  The affidavit of default must 
 18.16  state the full name, occupation, place of residence, and last 
 18.17  known post office address of the obligor, the name and post 
 18.18  office address of the obligee, the date or dates payment was due 
 18.19  and not received and judgment was obtained by operation of law, 
 18.20  and the total amount of the judgments to the date of filing, and 
 18.21  the amount of the installment or periodic payments of child 
 18.22  support that will continue to become due and payable subsequent 
 18.23  to the date of filing; and 
 18.24     (3) an affidavit of service of a notice of ~~entry of~~ 
 18.25  ~~judgment or notice of~~ intent to docket judgment and to recover 
 18.26  attorney fees and collection costs on the obligor, in person or 
 18.27  by mail at the obligor's last known post office address.  
 18.28  Service is completed upon mailing in the manner designated. 
 18.29  Where applicable, a notice of interstate lien in the form 
 18.30  promulgated under United States Code, title 42, section 652(a), 
 18.31  is sufficient to satisfy the requirements of clauses (1) and (2).
 18.32     Sec. 10.  Minnesota Statutes 1996, section 548.091, 
 18.33  subdivision 3a, is amended to read: 
 18.34     Subd. 3a.  [ENTRY~~,~~ AND DOCKETING~~, AND SURVIVAL~~ OF CHILD 
 18.35  SUPPORT JUDGMENT.] Upon receipt of the documents filed under 
 18.36  subdivision 2a, the court administrator shall enter and docket 
 19.1   the judgment in the amount of the ~~default specified in the~~ 
 19.2   ~~affidavit of default.  From the time of docketing, the judgment~~ 
 19.3   ~~is a lien upon all the real property in the county owned by the~~ 
 19.4   ~~judgment debtor.  The judgment survives and the lien continues~~ 
 19.5   ~~for ten years after the date the judgment was docketed.  Child~~ 
 19.6   ~~support judgments may be renewed by service of notice upon the~~ 
 19.7   ~~debtor.  Service shall be by certified mail at the last known~~ 
 19.8   ~~address of the debtor or in the manner provided for the service~~ 
 19.9   ~~of civil process.  Upon the filing of the notice and proof of~~ 
 19.10  ~~service the court administrator shall renew the judgment for~~ 
 19.11  ~~child support without any additional filing fee.~~ unpaid 
 19.12  obligation identified in the affidavit of default plus all 
 19.13  unpaid installments of child support accruing after docketing 
 19.14  together with any recording fees, sheriff fees, or court costs 
 19.15  that may accrue. 
 19.16     Sec. 11.  Minnesota Statutes 1996, section 548.091, is 
 19.17  amended by adding a subdivision to read: 
 19.18     Subd. 5.  [AUTOMATIC INCREASES; SATISFACTION.] After 
 19.19  docketing and until satisfied by the obligee, public authority, 
 19.20  or the court administrator, the amount of the docketed judgment 
 19.21  automatically increases by the total amount of installments or 
 19.22  periodic payments of child support that became due and payable 
 19.23  subsequent to the date of docketing, plus attorney's fees and 
 19.24  collection costs incurred by the public authority, and less any 
 19.25  payment made by the obligor to partially satisfy the docketed 
 19.26  judgment.  The court administrator shall not satisfy any child 
 19.27  support judgment without first obtaining a written judgment 
 19.28  payoff statement from the public authority or obligee.  If no 
 19.29  such statement can be obtained within two business days, the 
 19.30  court administrator shall only satisfy the judgment if the 
 19.31  amount paid to the court administrator equals the judgment 
 19.32  amount plus interest and costs, and the amount of the 
 19.33  installments or periodic payment times the number of payments 
 19.34  due since the date of docketing of the judgment.  
 19.35     Sec. 12.  Minnesota Statutes 1996, section 548.091, is 
 19.36  amended by adding a subdivision to read: 
 20.1      Subd. 6.  [NOTE ON JUDGMENT ROLL.] The court administrator 
 20.2   shall note on the judgment roll which judgments are filed 
 20.3   pursuant to this section.  
 20.4      Sec. 13.  [548.092] [CHILD SUPPORT JUDGMENT LIEN.] 
 20.5      Subdivision 1.  [CREATION; EFFECT.] From the time of 
 20.6   docketing as a judgment under section 548.091, a child support 
 20.7   judgment lien arises in favor of and enforceable by both the 
 20.8   obligee and the public authority as provided in this section.  
 20.9   The lien is entitled to full faith and credit in this state and 
 20.10  any other state. 
 20.11     Subd. 2.  [LIEN SURVIVAL.] A perfected child support 
 20.12  judgment survives and the lien continues for ten years after the 
 20.13  date on which the judgment was docketed unless one of the 
 20.14  following occurs: 
 20.15     (1) the obligee or the public authority releases the lien; 
 20.16  or 
 20.17     (2) the obligee or the public authority renews the lien 
 20.18  according to subdivision 3. 
 20.19     Subd. 3.  [LIEN RENEWAL.] Child support judgment liens may 
 20.20  be renewed by service of notice upon the debtor.  Service must 
 20.21  be by certified mail at the last known address of the debtor or 
 20.22  in the manner provided for the service of civil process.  Upon 
 20.23  the filing of the notice of lien renewal and proof of service, 
 20.24  the court administrator shall renew the judgment for child 
 20.25  support without any additional filing fee.  The public authority 
 20.26  may renew the lien for as many ten-year periods as necessary.  A 
 20.27  renewal of the lien in accordance with this subdivision does not 
 20.28  affect its priority. 
 20.29     Subd. 4.  [PRIORITY.] Priority of a child support lien is 
 20.30  established as of the date of perfection of the lien.  A 
 20.31  perfected child support lien is not subordinate to any lien 
 20.32  except a lien that was perfected prior to the time at which the 
 20.33  child support lien was perfected.  The child support lien is not 
 20.34  perfected against any purchaser, mortgagee, pledgee, holder of a 
 20.35  Uniform Commercial Code security interest, mechanic's lienor, or 
 20.36  judgment lien creditor whose interest has been duly perfected or 
 21.1   is entitled to protection under applicable provisions of state 
 21.2   law, including chapter 514, except as provided by this section. 
 21.3      (a) [REAL PROPERTY.] From the time of docketing, the child 
 21.4   support judgment is a perfected lien upon all the real property 
 21.5   in the county owned by the judgment debtor, but it is not a lien 
 21.6   on registered land unless the obligee or the public authority 
 21.7   causes a notice of judgment lien to be memorialized on a 
 21.8   certificate of title or certificate of possessory title 
 21.9   according to sections 508.63 and 508A.63. 
 21.10     (b) [PERSONAL OR INTANGIBLE PROPERTY.] The lien is 
 21.11  perfected against the obligor's interest in personal and 
 21.12  intangible property when the public authority serves a notice of 
 21.13  judgment lien with a financial institution or insurance company 
 21.14  as provided in this section, or files a notice of judgment lien 
 21.15  with the motor vehicles division of the department of public 
 21.16  safety, or with a federal, state, local, or municipal entity 
 21.17  authorized by law to receive lien filings. 
 21.18     (c) [PRIORITY OVER UCC.] A child support lien perfected 
 21.19  under this section takes priority over a security interest 
 21.20  arising under article 9 of the Uniform Commercial Code, sections 
 21.21  336.9-101 to 336.9-508, that is perfected before the filing date 
 21.22  of the child support lien imposed under this section, if: 
 21.23     (1) the perfected security interest secures property 
 21.24  acquired by the obligor or advances made by the secured party to 
 21.25  the obligor after the notice of child support lien is filed; and 
 21.26     (2) the property in question is acquired or the advance is 
 21.27  made after the 45th day following the day on which the notice of 
 21.28  child support lien is filed or after the secured party has 
 21.29  actual notice or knowledge of the child support lien filing, 
 21.30  whichever is earlier. 
 21.31     Subd. 5.  [EXEMPT PROPERTY.] A perfected child support lien 
 21.32  under this section is not enforceable against property of the 
 21.33  obligor that is exempt under sections 550.37, 550.38, and 
 21.34  550.39, except that manufactured homes otherwise exempt under 
 21.35  section 550.37, subdivision 12, are subject to a lien under this 
 21.36  section and the lien under this section is enforceable upon the 
 22.1   sale or transfer of the obligor's homestead in accordance with 
 22.2   section 510.07. 
 22.3      Subd. 6.  [LEVY AGAINST REAL OR PERSONAL PROPERTY.] (a) To 
 22.4   levy against the obligor's interest in real property, the public 
 22.5   authority shall proceed in accordance with existing law. 
 22.6      (b) To levy against the obligor's interest in tangible 
 22.7   personal property, except as otherwise specified in this 
 22.8   section, the public authority shall proceed in accordance with 
 22.9   chapters 550 and 551. 
 22.10     Subd. 7.  [LEVY AGAINST FINANCIAL INSTITUTION.] (a) [NOTICE 
 22.11  TO FINANCIAL INSTITUTION.] To effect a levy of the obligor's 
 22.12  property held by a financial institution as defined in section 
 22.13  13B.06 except for property held by an insurance company, the 
 22.14  public authority shall serve by first class mail a notice of 
 22.15  judgment lien on the financial institution holding property of 
 22.16  the obligor.  Upon receipt, the notice operates as an immediate 
 22.17  levy on all property of the obligor.  The levy remains in effect 
 22.18  for 60 days from the date of service or until the public 
 22.19  authority takes possession of the property or releases the 
 22.20  lien.  If the obligor requests an administrative or judicial 
 22.21  review of the lien or levy under subdivision 11, the levy 
 22.22  remains in force and effect by operation of law until the 
 22.23  completion of all requested hearings and all allowed periods for 
 22.24  appeal have elapsed. 
 22.25     (b) [OBLIGOR NOTICE.] Within three days of service of a 
 22.26  notice of lien under paragraph (a), the public authority shall 
 22.27  serve a notice of lien upon the obligor by first class mail sent 
 22.28  to the obligor's last known address.  The notice of lien must 
 22.29  inform the obligor of the following: 
 22.30     (1) that the obligor has a right to cure the arrearage and 
 22.31  obtain a release of the lien; and 
 22.32     (2) that the obligor has a right to request an 
 22.33  administrative or judicial review of the action taken under this 
 22.34  section on the basis that the amount stated in the notice of 
 22.35  lien is not owed or that the amount is incorrect. 
 22.36     (c) [NOTICE OF LEVY.] If the obligor fails to cure the 
 23.1   arrearage or requests an administrative or judicial review 
 23.2   within 20 days of the date the notice of judgment lien was 
 23.3   served on the obligor, the public authority shall serve by first 
 23.4   class mail a notice of levy on the financial institution holding 
 23.5   property of the obligor.  The notice of levy must direct the 
 23.6   financial institution or other entity to surrender the personal 
 23.7   property described in the notice of lien to the public authority 
 23.8   within five business days.  A financial institution holding 
 23.9   property of the obligor shall comply with a notice of levy and 
 23.10  surrender the personal property described in the notice of lien 
 23.11  to the public authority within five business days. 
 23.12     (d) [PRIORITY OF LEVY.] Notwithstanding section 52.12, a 
 23.13  levy by the public authority made under this section on an 
 23.14  obligor's funds on deposit in a financial institution located in 
 23.15  this state has priority over any unexercised right of setoff of 
 23.16  the financial institution to apply the levied funds toward the 
 23.17  balance of an outstanding loan or loans owed by the obligor to 
 23.18  the financial institution.  A claim by the financial institution 
 23.19  that it exercised its right to setoff prior to the levy by the 
 23.20  public authority must be substantiated by evidence of the date 
 23.21  of the setoff and must be verified by the sworn statement of a 
 23.22  responsible corporate officer of the financial institution.  For 
 23.23  purposes of determining the priority of a levy made under this 
 23.24  section, the levy must be treated as if it were an execution 
 23.25  made under chapter 550. 
 23.26     Subd. 8.  [LEVY AGAINST INSURANCE COMPANY.] (a) [NOTICE TO 
 23.27  INSURANCE COMPANY.] To effect a levy of the obligor's property 
 23.28  held by an organization with respect to a life insurance or 
 23.29  endowment contract, the public authority shall serve by first 
 23.30  class mail a notice of judgment lien on the insurance company.  
 23.31  Upon receipt, the notice operates as an immediate levy and 
 23.32  constitute a demand by the public authority for payment of the 
 23.33  amount of the lien and the exercise of the right of the obligor 
 23.34  to the advance of that amount.  The levy remains in effect for 
 23.35  60 days from the date of service of the notice of judgment lien 
 23.36  or until the public authority takes possession of the property 
 24.1   or releases the lien.  If the obligor requests an administrative 
 24.2   or judicial review of the lien or levy under subdivision 11, the 
 24.3   levy remains in force and effect by operation of law until the 
 24.4   completion of all requested hearings and all allowed periods for 
 24.5   appeal have elapsed. 
 24.6      (b) [OBLIGOR NOTICE.] Within three days of service of a 
 24.7   notice of judgment lien under paragraph (a), the public 
 24.8   authority shall serve a notice of judgment lien upon the obligor 
 24.9   by first class mail sent to the obligor's last known address.  
 24.10  The notice of lien shall inform the obligor that the obligor has 
 24.11  a right to: 
 24.12     (1) cure the arrearage and obtain a release of the lien; 
 24.13  and 
 24.14     (2) request an administrative or judicial review of the 
 24.15  action taken under this section on the basis that the amount 
 24.16  stated in the notice of judgment lien is not owed or that the 
 24.17  amount is incorrect. 
 24.18     (c) [NOTICE OF LEVY.] If the obligor fails to cure the 
 24.19  arrearage or request an administrative or judicial review within 
 24.20  20 days of the date the notice of judgment lien was served on 
 24.21  the obligor, the public authority shall serve by first class 
 24.22  mail a notice of levy on the insurance company.  The notice of 
 24.23  levy shall direct the insurance company to surrender the full 
 24.24  amount the obligor could have advanced to the obligor to the 
 24.25  public authority within five business days.  The levy is 
 24.26  considered satisfied if the organization pays to the public 
 24.27  authority within five business days the full amount that the 
 24.28  obligor could have had advanced to the obligor, provided that 
 24.29  the amount does not exceed the amount of the lien. 
 24.30     Subd. 9.  [PENALTY.] Disposal, conversion, or any other 
 24.31  means of dispensing property after receipt of a notice of 
 24.32  judgment lien results in a penalty of not less than the value of 
 24.33  the property subject to levy, together with reasonable costs and 
 24.34  attorney's fees plus interest not to exceed the interest rate 
 24.35  provided in section 548.091, subdivision 1a, paragraph (a). 
 24.36     Subd. 10.  [RIGHT TO REQUEST REVIEW.] (a) To request 
 25.1   administrative review of an action taken by the public authority 
 25.2   under this section, the obligor must make a request in writing 
 25.3   directed to the public authority or file a motion with the court 
 25.4   within 20 days of the date the notice of judgment lien was 
 25.5   served on the obligor. 
 25.6      (b) The public authority's receipt of a written request for 
 25.7   administrative review starts the administrative process.  At a 
 25.8   hearing conducted under section .. (administrative process), the 
 25.9   only issues to be determined are whether: 
 25.10     (1) the public authority complied with the process required 
 25.11  by this section; 
 25.12     (2) the amount stated in the notice of judgment lien is 
 25.13  owed by the obligor; and 
 25.14     (3) the amount stated in the notice of judgment lien is 
 25.15  correct. 
 25.16     (c) The obligor's filing of a motion requesting a court 
 25.17  hearing under the Rules of Civil Procedure serves to stay the 
 25.18  levy on the obligor's property, but the lien remains in force 
 25.19  and effect until the court has issued a final ruling on the 
 25.20  matter and all periods for appeal have expired.  At a court 
 25.21  hearing requested by the obligor, the only issues to be 
 25.22  determined are whether: 
 25.23     (1) the public authority complied with the process required 
 25.24  by this section; 
 25.25     (2) the amount stated in the notice of judgment lien is 
 25.26  owed by the obligor; and 
 25.27     (3) the amount stated in the notice of judgment lien is 
 25.28  correct. 
 25.29     (d) The court may review the proceeding taken by the public 
 25.30  authority under this section and may correct any mistakes of 
 25.31  fact but shall not reduce or retroactively modify child support 
 25.32  arrears. 
 25.33     Subd. 11.  [FEES.] (a) Notwithstanding any other law to the 
 25.34  contrary, the public authority is exempt from payment of fees 
 25.35  when a judgment is docketed or a notice of judgment lien or lien 
 25.36  release is offered for recording.  The recording fees must be 
 26.1   paid along with the release fee at the end of the month in which 
 26.2   the lien or lien release is recorded, after receipt of a monthly 
 26.3   statement from the recording authority.  The public authority 
 26.4   shall add the recording fees to the child support obligation of 
 26.5   the obligor.  Notwithstanding any other law to the contrary, the 
 26.6   fee for filing or recording a notice of judgment lien or lien 
 26.7   release against an interest in real property is $15. 
 26.8      (b) There is appropriated to the commissioner of human 
 26.9   services an amount representing the cost of payment of recording 
 26.10  fees to the recording authorities.  The commissioner shall keep 
 26.11  a separate accounting of the costs and payments for recording 
 26.12  fees remitted by obligors and make the records available to the 
 26.13  legislature upon request. 
 26.14     Subd. 12.  [REGISTERED LAND.] If requested by the public 
 26.15  authority, the county recorder shall search the registered land 
 26.16  records in that county and cause the judgment lien to be 
 26.17  memorialized on every certificate of title or certificate of 
 26.18  possessory title of registered land in that county that can be 
 26.19  reasonably identified as owned by the obligor who is named on a 
 26.20  docketed judgment.  The fees for memorializing the lien must be 
 26.21  paid in the manner prescribed by subdivision 11.  The county 
 26.22  recorders and their employees and agents are not liable for any 
 26.23  loss or damages arising from failure to identify a parcel of 
 26.24  registered land owned by the obligor who is named on the lien. 
 26.25     Subd. 13.  [PAYOFF STATEMENT.] The commissioner shall issue 
 26.26  to the obligor, attorneys, lenders, and closers, or their 
 26.27  agents, a payoff statement setting forth conclusively the amount 
 26.28  necessary to satisfy the lien.  Payoff statements must be issued 
 26.29  within 72 hours after receipt of a request by mail, personal 
 26.30  delivery, telefacsimile, or e-mail transmission, and must be 
 26.31  delivered to the requester by telefacsimile or e-mail 
 26.32  transmission if requested and if appropriate technology is 
 26.33  available to the commissioner. 
 26.34     Subd. 14.  [RELEASE OF LIEN.] Upon payment of the 
 26.35  delinquent child support, the commissioner of human services 
 26.36  shall execute and deliver a release of the judgment lien within 
 27.1   five business days. 
 27.2      Subd. 15.  [SPECIAL PROCEDURES.] The commissioner shall 
 27.3   maintain sufficient staff available to negotiate a release of 
 27.4   lien on specific property less than the full amount due where 
 27.5   the proceeds of a sale or financing are not sufficient to 
 27.6   satisfy all encumbrances on the liened property.  Partial 
 27.7   releases do not release the obligor's personal liability for the 
 27.8   amount unpaid. 
 27.9      Subd. 16.  [CORRECTING ERRORS.] The commissioner shall 
 27.10  maintain a process to review the identity of the obligor and to 
 27.11  issue releases of lien in cases of misidentification.  The 
 27.12  commissioner shall maintain a process to review the amount of 
 27.13  child support determined to be delinquent and to issue amended 
 27.14  notices of judgment lien in cases of incorrectly docketed 
 27.15  judgment. 
 27.16     Subd. 17.  [FORMS.] The department of human services shall 
 27.17  prescribe the Notice of Judgment Lien, Notice to Obligor of 
 27.18  Lien, Notice of Levy, and Notice of Lien Renewal.  These forms 
 27.19  are not subject to chapter 14. 
 27.20     Sec. 14.  Minnesota Statutes 1996, section 609.375, is 
 27.21  amended by adding a subdivision to read: 
 27.22     Subd. 7.  [MANDATORY JAIL TIME.] Upon conviction under 
 27.23  subdivision 2a, an obligor must be sentenced to mandatory jail 
 27.24  time, may obtain work release only upon consent to the 
 27.25  imposition of an automatic income withholding order, and may be 
 27.26  required to post a bond in avoidance of jail time and 
 27.27  conditioned upon payment of all child support owed.  Nonpayment 
 27.28  of child support is a violation of any probation granted 
 27.29  following conviction under subdivision 2a. 
 27.30     Sec. 15.  [STUDY.] 
 27.31     The commissioner of human services shall conduct a study 
 27.32  that evaluates the potential duplication in administrative costs 
 27.33  imbedded in the state's current county-administered and 
 27.34  state-supervised system of child support enforcement and shall 
 27.35  make recommendations to the legislature on whether implementing 
 27.36  a state-operated system would improve the cost-effectiveness, 
 28.1   efficiency, and quality of result provided to users of the 
 28.2   system.  The commissioner shall report and make recommendations 
 28.3   to the legislature by September 15, 1998. 
 28.4      Sec. 16.  [APPROPRIATION.] 
 28.5      Subdivision 1.  [DEPARTMENT OF HUMAN SERVICES.] $....... is 
 28.6   appropriated from the general fund to the department of human 
 28.7   services for fiscal year 1998 for the purposes specified in 
 28.8   sections 2, 7, 13, and 15. 
 28.9      Subd. 2.  [PUBLIC EDUCATION.] $....... is appropriated from 
 28.10  the general fund to the attorney general for fiscal year 1998 
 28.11  for the continuation of the public education campaign specified 
 28.12  in Minnesota Statutes, section 8.35. 
 28.13     Subd. 3.  [ATTORNEY GENERAL.] $....... is appropriated from 
 28.14  the general fund to the attorney general for fiscal year 1998 
 28.15  for the purposes specified in section 6. 
 28.16     Sec. 17.  [REPEALER.] 
 28.17     Minnesota Statutes 1996, section 609.375, subdivisions 3, 
 28.18  4, and 6, are repealed.  
 28.19     Sec. 18.  [EFFECTIVE DATE.] 
 28.20     Sections 2 and 8 to 13 are effective July 1, 1998.  
 28.21  Sections 6, 7, 14, and 15 are effective July 1, 1997.  Sections 
 28.22  1, 3, 4, and 5 are effective the day following final enactment.