1.1                          A bill for an act
  1.2             relating to child support; expanding the medical 
  1.3             support bonus incentives program to all cases for 
  1.4             which the county agency provides child support 
  1.5             enforcement services; reforming and recodifying the 
  1.6             law relating to medical support; reforming and 
  1.7             recodifying the law relating to child support; 
  1.8             providing for cost-of-living adjustments in medical 
  1.9             support orders; amending Minnesota Statutes 2000, 
  1.10            sections 256.9791; 518.54, subdivisions 1, 4a, 6, 8, 
  1.11            and by adding subdivisions; 518.551, subdivision 5c; 
  1.12            518.553; 518.6111, subdivision 1; 518.64, subdivision 
  1.13            2; and 518.641, subdivisions 1, 3, 4, and 5; proposing 
  1.14            coding for new law in Minnesota Statutes, chapter 518; 
  1.15            repealing Minnesota Statutes 2000, sections 518.171; 
  1.16            and 518.551, subdivisions 1, 5, 5a, 5b, 5e, 5f, 6, 7, 
  1.17            9, and 11. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 2000, section 256.9791, is 
  1.20  amended to read: 
  1.21     256.9791 [MEDICAL SUPPORT BONUS INCENTIVES.] 
  1.22     Subdivision 1.  [BONUS INCENTIVE.] (a) A bonus incentive 
  1.23  program is created to increase the identification and 
  1.24  enforcement by county agencies of dependent health ~~insurance~~ 
  1.25  coverage for ~~persons who are receiving medical assistance under~~ 
  1.26  ~~section 256B.055 and~~ children and family units for whom the 
  1.27  county agency is providing child support enforcement services.  
  1.28     (b) The bonus shall be awarded to a county child support 
  1.29  agency for each ~~person~~ child for whom coverage is identified and 
  1.30  enforced by the child support enforcement program when ~~the~~ 
  1.31  ~~obligor is under~~ a court order to provide dependent health 
  2.1   ~~insurance~~ coverage is in effect.  
  2.2      (c) Bonus incentive funds under this section must be 
  2.3   reinvested in the county child support enforcement program and a 
  2.4   county may not reduce funding of the child support enforcement 
  2.5   program by the amount of the bonus earned. 
  2.6      Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
  2.7   the following definitions apply.  
  2.8      (a) "Case" means a family unit ~~that is receiving medical~~ 
  2.9   ~~assistance under section 256B.055 and~~ for whom the county agency 
  2.10  is providing child support enforcement services.  
  2.11     (b) "Commissioner" means the commissioner of the department 
  2.12  of human services.  
  2.13     (c) "County agency" means the county child support 
  2.14  enforcement agency.  
  2.15     (d) "Coverage" means initial dependent health insurance 
  2.16  benefits for a case or ~~individual member~~ child of a case, or 
  2.17  medical assistance under section 256B.055 and MinnesotaCare 
  2.18  under section 256L.07.  
  2.19     (e) "Enforce" or "enforcement" means obtaining proof of 
  2.20  current or future dependent health ~~insurance~~ coverage through an 
  2.21  overt act by the county agency. 
  2.22     (f) "Enforceable order" means a child support court order 
  2.23  containing the statutory language in section ~~518.171~~ 518.1711 or 
  2.24  other language ordering ~~an obligor~~ a parent to provide dependent 
  2.25  health ~~insurance~~ coverage.  
  2.26     (g) "Identify" or "identification" means obtaining proof of 
  2.27  dependent health ~~insurance~~ coverage through an overt act by the 
  2.28  county agency.  
  2.29     Subd. 3.  [ELIGIBILITY; REPORTING REQUIREMENTS.] (a) In 
  2.30  order for a county to be eligible to claim a bonus incentive 
  2.31  payment, the county agency must provide the required information 
  2.32  for each ~~public assistance~~ case no later than June 30 of each 
  2.33  year to determine eligibility.  The public authority shall use 
  2.34  the information to establish for each county the number of cases 
  2.35  in which (1) the court has established an obligation for 
  2.36  coverage ~~by the obligor~~, and (2) coverage was in effect as of 
  3.1   June 30.  
  3.2      (b) A county that fails to provide the required information 
  3.3   by June 30 of each fiscal year is not eligible for any bonus 
  3.4   payments under this section for that fiscal year. 
  3.5      Subd. 4.  [RATE OF BONUS INCENTIVE.] The rate of the bonus 
  3.6   incentive shall be determined according to paragraph (a). 
  3.7      (a) When a county agency has identified or enforced 
  3.8   coverage, the county shall receive $50 for each ~~additional~~ 
  3.9   ~~person~~ child for whom coverage is identified or enforced.  
  3.10     (b) Bonus payments according to paragraph (a) are limited 
  3.11  to one bonus for each ~~covered person~~ child each time the county 
  3.12  agency identifies or enforces previously unidentified 
  3.13  health ~~insurance~~ coverage and apply only to coverage identified 
  3.14  or enforced after July 1, 1990. 
  3.15     Subd. 5.  [CLAIMS FOR BONUS INCENTIVE.] (a) Beginning July 
  3.16  1, 1990, county agencies shall file a claim for a medical 
  3.17  support bonus payment by reporting to the commissioner the 
  3.18  following information for each case where dependent health 
  3.19  ~~insurance~~ coverage is identified or enforced as a result of an 
  3.20  overt act of the county agency: 
  3.21     (1) child support enforcement system case number or county 
  3.22  specific case number; 
  3.23     (2) names and dates of birth for each ~~person~~ child covered; 
  3.24  and 
  3.25     (3) the effective date of coverage. 
  3.26     (b) The report must be made upon enrollment in coverage but 
  3.27  no later than September 30 for coverage identified or 
  3.28  established during the preceding fiscal year. 
  3.29     (c) The county agency making the initial contact resulting 
  3.30  in the establishment of coverage is the county agency entitled 
  3.31  to claim the bonus incentive even if the case is transferred to 
  3.32  another county agency prior to the time coverage is established. 
  3.33     (d) Disputed claims must be submitted to the commissioner 
  3.34  and the commissioner's decision is final. 
  3.35     Subd. 6.  [DISTRIBUTION.] (a) Bonus incentives must be 
  3.36  issued to the county agency quarterly, within 45 days after the 
  4.1   last day of each quarter for which a bonus incentive is being 
  4.2   claimed, and must be paid up to the limit of the appropriation 
  4.3   in the order in which claims are received.  
  4.4      (b) Total bonus incentives must be computed by multiplying 
  4.5   the number of ~~persons~~ children included in claims submitted in 
  4.6   accordance with this section by the applicable bonus payment as 
  4.7   determined in subdivision 4. 
  4.8      (c) The county agency must repay any bonus erroneously 
  4.9   issued. 
  4.10     (d) A county agency must maintain a record of bonus 
  4.11  incentives claimed and received for each quarter.  
  4.12     Sec. 2.  [518.1711] [MEDICAL SUPPORT.] 
  4.13     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  4.14  section and sections 518.54 to 518.66, the following terms have 
  4.15  the meanings provided in this subdivision unless otherwise 
  4.16  stated: 
  4.17     (a) "Health care coverage" means health care benefits that 
  4.18  are provided by a health plan.  Health care coverage does not 
  4.19  include any form of medical assistance under chapter 256B or 
  4.20  MinnesotaCare under chapter 256L. 
  4.21     (b) "Health carrier" means a carrier as defined in sections 
  4.22  62A.011, subdivision 2, and 62L.02, subdivision 16. 
  4.23     (c) "Health plan" means a plan meeting the definition under 
  4.24  section 62A.011, subdivision 3, and includes plans:  (1) 
  4.25  provided on an individual and group basis, (2) provided by an 
  4.26  employer or union, (3) purchased in the private market, (4) 
  4.27  available to a person eligible to carry insurance for the child, 
  4.28  and (5) provided through a health plan governed under the 
  4.29  federal Employee Retirement Income Security Act of 1974 (ERISA), 
  4.30  United States Code, title 29, section 1169(a).  "Health plan" 
  4.31  includes a plan providing for dependent-only, dental, or vision 
  4.32  coverage and a plan provided through a party's spouse or parent. 
  4.33     (d) "Medical support" means providing health care coverage 
  4.34  for a child by carrying health care coverage for the child or by 
  4.35  contributing to the cost of health care coverage, public 
  4.36  coverage, unreimbursed medical expenses, and uninsured medical 
  5.1   expenses of the child. 
  5.2      (e) "National medical support notice" is an administrative 
  5.3   notice issued by the public authority to enforce medical support 
  5.4   provisions of a child support order. 
  5.5      (f) "Public coverage" means health care benefits provided 
  5.6   by any form of medical assistance under chapter 256B or 
  5.7   MinnesotaCare under chapter 256L. 
  5.8      (g) "Uninsured medical expenses" means a child's reasonable 
  5.9   and necessary health-related expenses if the child is not 
  5.10  covered by a health plan or public coverage when the expenses 
  5.11  are incurred. 
  5.12     (h) "Unreimbursed medical expenses" means a child's 
  5.13  reasonable and necessary health-related expenses if a child is 
  5.14  covered by a health plan or public coverage and the plan or 
  5.15  coverage does not pay for the total cost of the expenses when 
  5.16  the expenses are incurred.  Unreimbursed medical expenses do not 
  5.17  include the cost of premiums.  Unreimbursed medical expenses 
  5.18  include, but are not limited to, deductibles, copayments, and 
  5.19  expenses for orthodontia, prescription eye glasses and contact 
  5.20  lenses, and over-the-counter products. 
  5.21     Subd. 2.  [ORDER.] (a) A completed national medical support 
  5.22  notice issued by the public authority or a court order that 
  5.23  complies with this section is a qualified medical child support 
  5.24  order under the federal Employee Retirement Income Security Act 
  5.25  of 1974 (ERISA), United States Code, title 29, section 1169(a). 
  5.26     (b) Every order addressing child support must state: 
  5.27     (1) the names, last known addresses, and social security 
  5.28  numbers of the parents and the child that is a subject of the 
  5.29  order unless the court prohibits the inclusion of an address or 
  5.30  social security number and orders the parent to provide the 
  5.31  address and social security number to the administrator of the 
  5.32  health plan; and 
  5.33     (2) whether appropriate health care coverage for the child 
  5.34  is available and, if so state: 
  5.35     (i) which party must carry health care coverage; 
  5.36     (ii) the cost of premiums and how the cost is allocated 
  6.1   between the parties; 
  6.2      (iii) how unreimbursed expenses will be collected by the 
  6.3   parties; 
  6.4      (iv) the circumstances, if any, under which the obligation 
  6.5   to provide health care coverage for the child will shift from 
  6.6   one party to the other; and 
  6.7      (v) a cost-of-living adjustment under section 518.641; or 
  6.8      (3) if appropriate health care coverage is not available 
  6.9   for the child, whether a contribution for medical support is 
  6.10  required. 
  6.11     Subd. 3.  [DETERMINATION OF APPROPRIATE COVERAGE.] (a) In 
  6.12  determining whether a party has appropriate health care coverage 
  6.13  for the child, the court must evaluate the health plan using the 
  6.14  following factors: 
  6.15     (1) accessible coverage.  Dependent health care coverage is 
  6.16  accessible if the covered child can obtain services from a 
  6.17  health plan provider with reasonable effort by the custodial 
  6.18  parent.  Health care coverage is presumed accessible if: 
  6.19     (i) primary care coverage is available within 30 minutes or 
  6.20  30 miles of the child's residence and specialty care coverage is 
  6.21  available within 60 minutes or 60 miles of the child's 
  6.22  residence; 
  6.23     (ii) the coverage is available through an employer and the 
  6.24  employee can be expected to remain employed for a reasonable 
  6.25  amount of time; and 
  6.26     (iii) no preexisting conditions exist to delay coverage 
  6.27  unduly; 
  6.28     (2) comprehensive coverage.  Dependent health care coverage 
  6.29  is comprehensive if it includes, at a minimum, medical and 
  6.30  hospital coverage and provides for preventive, emergency, acute, 
  6.31  and chronic care.  If both parties have health care coverage 
  6.32  that meets the minimum requirements, the court must determine 
  6.33  which health care coverage is more comprehensive by considering 
  6.34  whether the coverage includes: 
  6.35     (i) basic dental coverage; 
  6.36     (ii) orthodontics; 
  7.1      (iii) eyeglasses; 
  7.2      (iv) contact lenses; 
  7.3      (v) mental health services; or 
  7.4      (vi) substance abuse treatment; 
  7.5      (3) affordable coverage.  Dependent health care coverage is 
  7.6   affordable if a party's adjusted gross income is 150 percent of 
  7.7   the federal poverty guidelines or more and the party's 
  7.8   contribution to the cost of health care coverage does not exceed 
  7.9   five percent of the party's income available for child support.  
  7.10  If a party's adjusted gross income is less than 150 percent of 
  7.11  the federal poverty guidelines, it is presumed that the party is 
  7.12  unable to contribute to the cost of health care coverage unless 
  7.13  health care is available at no or low cost to that party; and 
  7.14     (4) best interests of the child.  In determining whether 
  7.15  health care coverage is in the best interests of the child, the 
  7.16  court may consider the child's special medical needs, if any. 
  7.17     Subd. 4.  [COVERAGE.] (a) If a child is presently enrolled 
  7.18  in health care coverage, the court must order that the 
  7.19  enrollment be maintained unless the parties agree otherwise or a 
  7.20  party requests a change in coverage and the court determines 
  7.21  that other health care coverage is more appropriate. 
  7.22     (b) If a child is not presently enrolled in health care 
  7.23  coverage, upon motion of the party or the public authority, the 
  7.24  court must determine whether one or both parties have 
  7.25  appropriate health care coverage for the child and order the 
  7.26  party with appropriate health care coverage available to carry 
  7.27  the coverage for the child. 
  7.28     (c) If only one party has appropriate health care coverage 
  7.29  available, the court must order that party to carry the coverage 
  7.30  for the child. 
  7.31     (d) If both parties have appropriate health care coverage 
  7.32  available, the court must order the custodial parent to carry 
  7.33  the coverage for the child, unless: 
  7.34     (1) either party expresses a preference for coverage 
  7.35  available through the noncustodial parent; or 
  7.36     (2) the noncustodial parent is already carrying dependent 
  8.1   health care coverage for other children and the cost of 
  8.2   contributing to the premiums of the custodial parent's coverage 
  8.3   would cause the noncustodial parent extreme hardship. 
  8.4   If the exceptions in clause (1) or (2) apply, the court must 
  8.5   determine which party has the most appropriate coverage 
  8.6   available based on the best interests of the child and order 
  8.7   that party to carry coverage for the child. 
  8.8      (e) If neither party has appropriate health care coverage 
  8.9   available, the court must order the noncustodial party to 
  8.10  contribute the lesser of either: 
  8.11     (1) five percent of adjusted gross income; or 
  8.12     (2) the amount indicated by the MinnesotaCare sliding fee 
  8.13  scale under chapter 256L toward the cost of public coverage for 
  8.14  the child or the child's uninsured medical expenses.  The court 
  8.15  may order the custodial party to apply for public coverage for 
  8.16  the child. 
  8.17     Subd. 5.  [CALCULATING MEDICAL SUPPORT.] The court must 
  8.18  calculate the cost of medical support under section 518.5416, 
  8.19  subdivision 6. 
  8.20     Subd. 6.  [ALLOCATING MEDICAL SUPPORT COSTS.] (a) If the 
  8.21  party ordered to carry health care coverage for the child 
  8.22  already carries dependent health care coverage for other 
  8.23  dependents and would incur no additional premium costs to add 
  8.24  the child to the existing coverage, the court must not order the 
  8.25  other party to contribute to the premium costs for coverage of 
  8.26  the child. 
  8.27     (b) If a party ordered to carry health care coverage for 
  8.28  the child does not already carry dependent health care coverage 
  8.29  but has other dependents who may be added to the ordered 
  8.30  coverage, the other party must contribute to the full premium 
  8.31  costs of the dependent health care coverage in proportion to the 
  8.32  party's share of the parties' combined income available for 
  8.33  child support, unless the parties agree otherwise. 
  8.34     (c) If a party ordered to carry health care coverage for 
  8.35  the child is required to enroll in a health plan so that the 
  8.36  child can be enrolled in dependent health care coverage under 
  9.1   the plan, the court must allocate the costs of the dependent 
  9.2   health care coverage between the parties.  The costs of the 
  9.3   health care coverage for the party ordered to carry the coverage 
  9.4   for the child must not be allocated between the parties. 
  9.5      Subd. 7.  [NOTICE TO EMPLOYER BY PUBLIC AUTHORITY OR 
  9.6   COURT.] (a) If a noncustodial party is ordered to carry health 
  9.7   care coverage for the child and the public authority provides 
  9.8   support enforcement services, the public authority must forward 
  9.9   a copy of the national medical support notice or court order for 
  9.10  health care coverage to the noncustodial party's employer or 
  9.11  union and to the health carrier only when ordered by the court 
  9.12  or when the conditions under paragraphs (c) and (d) are met. 
  9.13     (b) If a custodial party is ordered to carry health care 
  9.14  coverage for the child or the public authority does not provide 
  9.15  support enforcement services, a copy of the court order for 
  9.16  health care coverage for the child may be forwarded to the 
  9.17  carrying party's employer or union and to the health carrier 
  9.18  only when ordered by the court or when the conditions under 
  9.19  paragraphs (c) and (d) are met. 
  9.20     (c) A copy of the national medical support notice or court 
  9.21  order for health care coverage must be forwarded to the employer 
  9.22  within two business days after the date an employee is entered 
  9.23  into the work reporting system under section 256.998. 
  9.24     (d) A copy of the national medical support notice or court 
  9.25  order for health care coverage must be forwarded to the employer 
  9.26  if: 
  9.27     (1) the party carrying health care coverage for the child 
  9.28  fails to provide written proof to the other party or the public 
  9.29  authority, within 30 days of the effective date of the court 
  9.30  order, that health care coverage has been obtained for the 
  9.31  child; 
  9.32     (2) the other party or the public authority gives written 
  9.33  notice to the party carrying health care coverage for the child 
  9.34  of intent to enforce medical support.  The other party or public 
  9.35  authority must mail the written notice to the last known address 
  9.36  of the party carrying health care coverage for the child; and 
 10.1      (3) the party carrying health care coverage for the child 
 10.2   fails, within 15 days after the date on which the written notice 
 10.3   under clause (2) was mailed, to provide written proof to the 
 10.4   other party or the public authority that health care coverage 
 10.5   has been obtained for the child. 
 10.6      Subd. 8.  [EFFECT OF ORDER.] (a) Unless a party contests 
 10.7   enrollment, a new employer of a party who is ordered to provide 
 10.8   health care coverage for the child must enroll the child in the 
 10.9   party's health plan upon receipt of a national medical support 
 10.10  notice or court order. 
 10.11     (b) If a health plan administrator receives a completed 
 10.12  national medical support notice, the plan administrator must 
 10.13  notify the public authority within 40 business days after the 
 10.14  date of the notice of the following: 
 10.15     (1) whether coverage is available to the child under the 
 10.16  terms of the health plan; 
 10.17     (2) whether the child is covered under the health plan; 
 10.18     (3) the effective date of the child's coverage under the 
 10.19  health plan; and 
 10.20     (4) what steps, if any, are required to effectuate the 
 10.21  child's coverage under the health plan. 
 10.22     (c) The plan administrator must also provide the public 
 10.23  authority and the parties with a notice of enrollment of the 
 10.24  child, description of the coverage, and any documents necessary 
 10.25  to effectuate coverage. 
 10.26     Subd. 9.  [CONTESTING ENROLLMENT.] (a) A party may contest 
 10.27  the enrollment of a child in a health plan on the limited 
 10.28  grounds that the enrollment is improper due to mistake of fact 
 10.29  or that the enrollment meets the requirements of section 518.64, 
 10.30  subdivision 2.  If the party chooses to contest the enrollment, 
 10.31  the party must do so no later than 15 days after the employer 
 10.32  notifies the party of the enrollment by doing the following: 
 10.33     (1) filing a request for hearing according to section 
 10.34  484.702; 
 10.35     (2) serving a copy of the request for hearing upon the 
 10.36  public authority and the other party; and 
 11.1      (3) securing a date for the hearing no later than 45 days 
 11.2   after the notice of enrollment. 
 11.3      (b) The enrollment must remain in place while the party 
 11.4   contests the enrollment. 
 11.5      Subd. 10.  [EMPLOYER REQUIREMENTS.] (a) An employer must 
 11.6   send the national medical support notice to its health plan 
 11.7   within 20 business days after the date on the national medical 
 11.8   support notice. 
 11.9      (b) An employer or union that is included under the federal 
 11.10  Employee Retirement Income Security Act of 1974 (ERISA), United 
 11.11  States Code, title 29, section 1169(a), may not deny enrollment 
 11.12  based on exclusionary clauses described in section 62A.048. 
 11.13     (c) Upon application of the party, or if a court orders a 
 11.14  party to carry health insurance coverage for a child, the 
 11.15  employer or union and its health plan must enroll the minor 
 11.16  child as a beneficiary in the health plan and withhold any 
 11.17  required premiums from the income or wages of the party ordered 
 11.18  to carry health care coverage for the child. 
 11.19     (d) If more than one plan is offered by the employer or 
 11.20  union and the national medical support notice or court order 
 11.21  does not specify the plan to be carried, the child must be 
 11.22  enrolled in the most appropriate health plan otherwise available 
 11.23  to the party ordered to carry health care coverage for the child.
 11.24     (e) If the party ordered to carry health care coverage for 
 11.25  the child is not enrolled in the health plan, the employer or 
 11.26  union must also enroll the party in the chosen plan if 
 11.27  enrollment of the party is necessary to obtain dependent health 
 11.28  care coverage under the plan. 
 11.29     (f) Enrollment of dependents and the party ordered to carry 
 11.30  health care coverage for the child must be immediate and not 
 11.31  dependent upon open enrollment periods.  Enrollment is not 
 11.32  subject to the underwriting policies under section 62A.048. 
 11.33     (g) Failure of the party ordered to carry health care 
 11.34  coverage for the child to execute any documents necessary to 
 11.35  enroll the dependent in the health plan does not affect the 
 11.36  obligation of the employer or union and health plan to enroll 
 12.1   the dependent in a plan.  Information and authorization provided 
 12.2   by the public authority, or by a party or guardian, is valid for 
 12.3   the purposes of meeting enrollment requirements of the health 
 12.4   plan. 
 12.5      Subd. 11.  [EMPLOYER LIABILITY.] An employer or union that 
 12.6   willfully fails to comply with the order is liable for any 
 12.7   uninsured medical expenses incurred by the dependents while the 
 12.8   dependents were eligible to be enrolled in the insurance program 
 12.9   and for any other premium costs incurred because the employer or 
 12.10  union willfully failed to comply with the order.  An employer or 
 12.11  union that fails to comply with the order is subject to a 
 12.12  finding of contempt and a $250 civil penalty under section 
 12.13  518.615 and is also subject to a civil penalty of $500 to be 
 12.14  paid to the party entitled to reimbursement or the public 
 12.15  authority.  Penalties paid to the public authority are 
 12.16  designated for child support enforcement services. 
 12.17     Subd. 12.  [DISENROLLMENT; CONTINUATION OF COVERAGE; 
 12.18  OPTIONS IN COVERAGE.] (a) A child for whom a party is required 
 12.19  to provide health care coverage under this section must be 
 12.20  covered as a dependent of the party until the child is 
 12.21  emancipated, until further order of the court, or as consistent 
 12.22  with the terms of the coverage. 
 12.23     (b) The health carrier or employer may not disenroll or 
 12.24  eliminate coverage for the child unless: 
 12.25     (1) the health carrier or employer is provided satisfactory 
 12.26  written evidence that the court order is no longer in effect; 
 12.27     (2) the child is or will be enrolled in comparable health 
 12.28  care coverage through another health plan that will take effect 
 12.29  no later than the effective date of the disenrollment; 
 12.30     (3) the employee is no longer eligible for dependent 
 12.31  coverage; or 
 12.32     (4) the required premium has not been paid by or on behalf 
 12.33  of the child. 
 12.34     (c) If disenrollment or elimination of coverage of a child 
 12.35  under this subdivision is based upon nonpayment of premiums, the 
 12.36  health plan must provide 30 days' written notice to the child's 
 13.1   parents and the public authority, if the public authority is 
 13.2   providing support enforcement services, prior to the 
 13.3   disenrollment or elimination of coverage. 
 13.4      (d) A child enrolled in health care coverage under a 
 13.5   qualified medical child support order, including a national 
 13.6   medical support notice, under this section is a dependent and a 
 13.7   qualified beneficiary under the Consolidated Omnibus Budget and 
 13.8   Reconciliation Act of 1985 (COBRA), Public Law Number 99-272.  
 13.9   Upon expiration of the order, the child is entitled to the 
 13.10  opportunity to elect continued coverage that is available under 
 13.11  the health plan.  Notice must be provided to the parties and the 
 13.12  public authority, if it provides child support services, within 
 13.13  ten days of the termination date. 
 13.14     (e) If the public authority provides support enforcement 
 13.15  services and a plan administrator reports to the public 
 13.16  authority that there is more than one coverage option available 
 13.17  under the health plan, the public authority, in consultation 
 13.18  with the custodial parent, must promptly select coverage from 
 13.19  the available options.  If the custodial parent fails to 
 13.20  cooperate in a reasonable period of time, the public authority 
 13.21  must select the coverage from the available health plan options. 
 13.22     Subd. 13.  [SPOUSAL OR FORMER SPOUSAL COVERAGE.] The court 
 13.23  must require a noncustodial parent to provide dependent health 
 13.24  care coverage for the benefit of a custodial parent if the 
 13.25  noncustodial parent is ordered to provide dependent health care 
 13.26  coverage for the parties' child and adding the custodial parent 
 13.27  to the coverage results in no additional premium cost to the 
 13.28  noncustodial parent. 
 13.29     Subd. 14.  [PLAN REIMBURSEMENT.] The signature of a parent 
 13.30  of the insured child is a valid authorization to a health plan 
 13.31  for purposes of processing an insurance reimbursement payment to 
 13.32  the provider of the medical services or to the parent if medical 
 13.33  services have been prepaid by that parent. 
 13.34     Subd. 15.  [CORRESPONDENCE AND NOTICE.] The health plan 
 13.35  must send copies of all correspondence regarding the health care 
 13.36  coverage to both parents. 
 14.1      Subd. 16.  [DISCLOSURE OF INFORMATION.] (a) Parties must 
 14.2   provide the public authority with the following information when 
 14.3   support enforcement services are provided: 
 14.4      (1) information relating to dependent health care coverage 
 14.5   or public coverage available for the benefit of the child for 
 14.6   whom support is sought, including all information required to be 
 14.7   included in a medical support order under this section; 
 14.8      (2) verification that application for court-ordered health 
 14.9   care coverage was made within 30 days of the court's order; and 
 14.10     (3) the reason that a child is not enrolled in 
 14.11  court-ordered health care coverage, if a child is not enrolled 
 14.12  in coverage or subsequently loses coverage. 
 14.13     (b) Upon request from the public authority under section 
 14.14  256.978, an employer or plan administrator, including an 
 14.15  employer subject to the federal Employee Retirement Income 
 14.16  Security Act of 1974 (ERISA), United States Code, title 29, 
 14.17  section 1169(a), must provide the public authority the following 
 14.18  information: 
 14.19     (1) information relating to dependent health care coverage 
 14.20  available to a party for the benefit of the child for whom 
 14.21  support is sought, including all information required to be 
 14.22  included in a medical support order under this section; and 
 14.23     (2) information that will enable the public authority to 
 14.24  determine whether a health plan is appropriate for a child, 
 14.25  including, but not limited to, all available plan options, any 
 14.26  geographic service restrictions, and the location of service 
 14.27  providers. 
 14.28     (c) If an order for dependent health care coverage is in 
 14.29  effect, and if the parties or the public authority, if support 
 14.30  enforcement services are provided, request information on the 
 14.31  coverage, the employer, union, or health plan must release the 
 14.32  information, including the name of the health carrier or 
 14.33  employer.  The employer, union, or health plan must not release 
 14.34  information regarding one party to the other party.  The 
 14.35  employer, union, or health plan must provide both parties with 
 14.36  insurance identification cards and all necessary written 
 15.1   information to enable the parties to utilize the insurance 
 15.2   benefits for the covered dependents.  Notwithstanding any other 
 15.3   law, information reported under section 268.044 must be released 
 15.4   to the public authority if support enforcement services are 
 15.5   provided. 
 15.6      (d) The public authority is authorized to release to a 
 15.7   party's employer, union, or health plan information necessary to 
 15.8   obtain or enforce medical support. 
 15.9      (e) An employee must disclose to an employer if medical 
 15.10  support is required to be withheld under this section and the 
 15.11  employer must begin withholding according to the terms of the 
 15.12  order and under section 518.6111.  If an employee discloses an 
 15.13  obligation to obtain health care coverage and coverage is 
 15.14  available through the employer, the employer must make all 
 15.15  application processes known to the individual and enroll the 
 15.16  employee and dependent in the plan under subdivision 10. 
 15.17     Subd. 17.  [APPLICATION FOR IV-D SERVICES.] The public 
 15.18  authority must take necessary steps to establish and enforce an 
 15.19  order for medical support if the child receives public 
 15.20  assistance or a party completes an application for services from 
 15.21  the public authority. 
 15.22     Subd. 18.  [ENFORCEMENT.] (a) Remedies available for the 
 15.23  collection and enforcement of child support apply to medical 
 15.24  support.  For the purpose of enforcement, the costs of 
 15.25  individual or group health or hospitalization coverage, dental 
 15.26  coverage, all medical costs ordered by the court to be paid by 
 15.27  either party, including health and dental insurance premiums 
 15.28  paid by the obligee because of the obligor's failure to obtain 
 15.29  coverage as ordered, or liabilities established under this 
 15.30  subdivision, are additional support. 
 15.31     (b) If a party owes a basic support obligation for a child 
 15.32  and is ordered to carry health care coverage for the child, and 
 15.33  the other party is ordered to contribute to the carrying party's 
 15.34  cost for coverage, the carrying party's basic support payment 
 15.35  must be reduced by the amount of the contributing party's 
 15.36  contribution. 
 16.1      (c) If a party owes a basic support obligation for a child 
 16.2   and is ordered to contribute to the other party's cost for 
 16.3   carrying health care coverage for the child, the contributing 
 16.4   party's basic support payment must be increased by the amount of 
 16.5   the contribution. 
 16.6      (d) If a party owes no basic support obligation for a child 
 16.7   and is ordered to contribute to the other party's cost for 
 16.8   carrying health care coverage for the child, the contributing 
 16.9   party is subject to income withholding under section 518.6111 
 16.10  for the amount of the contribution to the carrying party's cost 
 16.11  for health care coverage for the child. 
 16.12     (e) If a party's court-ordered health care coverage for the 
 16.13  child terminates and the child is not enrolled in other health 
 16.14  care coverage or public coverage, and a modification motion is 
 16.15  not pending, the public authority may remove the offset to the 
 16.16  basic support obligation or terminate income withholding 
 16.17  instituted against a custodial party under section 518.6111. 
 16.18     (f) A party may contest the action of the public authority 
 16.19  to remove the offset to the basic support obligation or 
 16.20  terminate income withholding if the party makes a written 
 16.21  request for a hearing within 90 days after receiving written 
 16.22  notice of the action.  If a party makes a timely request for a 
 16.23  hearing, the public authority must schedule a hearing and give 
 16.24  written notice of the hearing to the parties at least 14 days 
 16.25  before the hearing.  The written notice of the hearing must be 
 16.26  sent by mail to the parties' last known addresses.  The hearing 
 16.27  must be conducted in district court or in the expedited child 
 16.28  support process if section 484.702 applies.  The district court 
 16.29  or child support magistrate must determine whether removal of 
 16.30  the offset or termination of income withholding is appropriate 
 16.31  and, if appropriate, the effective date for the removal or 
 16.32  termination.  If the party does not request a hearing, the court 
 16.33  must order the offset or termination effective the first day of 
 16.34  the month following termination of the child's health care 
 16.35  coverage. 
 16.36     (g) A party who fails to carry court-ordered dependent 
 17.1   health care coverage is liable for the child's uninsured medical 
 17.2   expenses unless a court order provides otherwise.  A party's 
 17.3   failure to carry court-ordered coverage, or to provide other 
 17.4   medical support as ordered, is a basis for modification of a 
 17.5   support order under section 518.64. 
 17.6      (h) Payments by the health carrier or employer for services 
 17.7   rendered to the dependents that are directed to a party not owed 
 17.8   reimbursement must be endorsed over to and forwarded to the 
 17.9   vendor or appropriate party or the public authority.  A party 
 17.10  retaining insurance reimbursement not owed to the party is 
 17.11  liable for the amount of the reimbursement. 
 17.12     Subd. 19.  [COLLECTING UNREIMBURSED AND UNINSURED MEDICAL 
 17.13  EXPENSES.] (a) A request for reimbursement of unreimbursed and 
 17.14  uninsured medical expenses must be initiated within two years of 
 17.15  the date that the unreimbursed or uninsured medical expenses 
 17.16  were incurred. 
 17.17     (b) A party seeking reimbursement of unreimbursed and 
 17.18  uninsured medical expenses must mail the other party written 
 17.19  notice of intent to collect the expenses and an affidavit of 
 17.20  health care expenses.  A party seeking reimbursement must send 
 17.21  the written notice and a copy of the affidavit of health care 
 17.22  expenses to the other party at the party's last known address.  
 17.23  The affidavit of health care expenses must itemize and document 
 17.24  the child's unreimbursed or uninsured medical expenses.  A copy 
 17.25  of the bills, receipts, and the insurance company's explanation 
 17.26  of the benefits must be attached to the affidavit.  The written 
 17.27  notice must include a statement that the party has 30 days from 
 17.28  the date of mailing the notice to pay in full, enter a payment 
 17.29  agreement, or request a hearing contesting the matter.  If the 
 17.30  public authority provides support enforcement services, the 
 17.31  written notice also must include a statement that the requesting 
 17.32  party must submit the amount due to the public authority for 
 17.33  collection.  If a hearing is requested, the hearing must be 
 17.34  scheduled in district court or in the expedited child support 
 17.35  process if section 484.702 applies. 
 17.36     (c) If, after 30 days, the other party has not paid in 
 18.1   full, the parties are unable to enter a payment agreement, or 
 18.2   the other party has not requested a hearing contesting the 
 18.3   matter, and: 
 18.4      (1) if the public authority provides support enforcement 
 18.5   services, the requesting party must send the original affidavit, 
 18.6   a copy of the written notice, and copies of the bills, receipts, 
 18.7   and the insurance company's explanation of the benefits to the 
 18.8   public authority.  The public authority must serve the other 
 18.9   party with a notice of intent to enforce unreimbursed and 
 18.10  uninsured medical expenses and file an affidavit of service by 
 18.11  mail with the district court administrator.  The notice must 
 18.12  provide that the other party has the right to pay in full, enter 
 18.13  into a payment agreement, or request a hearing contesting the 
 18.14  matter within 14 days of service of the notice; or 
 18.15     (2) if the public authority does not provide support 
 18.16  enforcement services, the requesting party may move the court 
 18.17  for enforcement. 
 18.18     (d) If the party who receives notice under paragraph (c), 
 18.19  clause (1), makes a timely written request for a hearing 
 18.20  contesting the requested reimbursement, a hearing must be 
 18.21  scheduled in district court or in the expedited child support 
 18.22  process if section 484.702 applies.  The contesting party must 
 18.23  provide the party seeking reimbursement and the public 
 18.24  authority, if the public authority provides support enforcement 
 18.25  services, with written notice of the hearing at least 14 days 
 18.26  before the hearing by mailing notice of the hearing to the 
 18.27  public authority and the party at the party's last known 
 18.28  address.  Based upon the evidence presented, the court must 
 18.29  determine liability for the expenses and order that the liable 
 18.30  party is subject to enforcement of the expenses as medical 
 18.31  support arrears under subdivision 20. 
 18.32     Subd. 20.  [ENFORCING AN ORDER FOR MEDICAL SUPPORT 
 18.33  ARREARS.] (a) If a party liable for unreimbursed and uninsured 
 18.34  medical expenses under subdivision 19 owes a basic support 
 18.35  obligation to the party seeking reimbursement of the expenses, 
 18.36  the expenses must be collected as medical support arrears as 
 19.1   follows: 
 19.2      (1) if income withholding under section 518.6111 is 
 19.3   available, medical support arrears must be withheld from a 
 19.4   liable party's income or wages in an amount equal to 20 percent 
 19.5   of the basic support obligation, until the medical support 
 19.6   arrears are satisfied.  If there is an existing child support 
 19.7   order with an arrears payback provision, the amount of 
 19.8   withholding for arrears may not exceed a total of 20 percent of 
 19.9   the basic support obligation; or 
 19.10     (2) if income withholding under section 518.6111 is not 
 19.11  available, a liable party must pay medical support arrears under 
 19.12  the terms of a payment agreement under section 518.553.  If a 
 19.13  liable party fails to enter into or comply with a payment 
 19.14  agreement, the party seeking reimbursement or the public 
 19.15  authority, if it provides support enforcement services, may 
 19.16  schedule a hearing to have a court order payment.  The party 
 19.17  seeking reimbursement or the public authority must provide the 
 19.18  liable party with written notice of the hearing at least five 
 19.19  days before the hearing.  At the hearing, the court must order 
 19.20  the liable party to pay the medical support arrears. 
 19.21     (b) If a party liable for unreimbursed and uninsured 
 19.22  medical expenses does not owe a basic support obligation to the 
 19.23  party seeking reimbursement, and the party seeking reimbursement 
 19.24  owes the liable party child support arrears, the liable party's 
 19.25  medical support arrears under subdivision 19 must be deducted 
 19.26  from the amount of the child support arrears.  If a liable party 
 19.27  owes medical support arrears after deducting the amount owed 
 19.28  from the amount of the child support arrears owed by the party 
 19.29  seeking reimbursement, it must be collected as follows: 
 19.30     (1) if the party seeking reimbursement owes a basic support 
 19.31  obligation to the liable party, the basic support obligation 
 19.32  must be reduced by 20 percent until the medical support arrears 
 19.33  are satisfied; 
 19.34     (2) if the party seeking reimbursement does not owe a basic 
 19.35  support obligation to the liable party, the liable party's 
 19.36  income must be subject to income withholding under section 
 20.1   518.6111 for an amount required under section 518.553 until the 
 20.2   medical support arrears are satisfied; or 
 20.3      (3) if the party seeking reimbursement does not owe a basic 
 20.4   support obligation, and income withholding under section 
 20.5   518.6111 is not available, payment of the medical support 
 20.6   arrears must be required under a payment agreement under section 
 20.7   518.553. 
 20.8      Sec. 3.  Minnesota Statutes 2000, section 518.54, 
 20.9   subdivision 1, is amended to read: 
 20.10     Subdivision 1.  [TERMS.] For the purposes of sections 
 20.11  518.1711 and 518.54 to 518.66, the terms defined in this section 
 20.12  shall have the meanings respectively ascribed to them. 
 20.13     Sec. 4.  Minnesota Statutes 2000, section 518.54, 
 20.14  subdivision 4a, is amended to read: 
 20.15     Subd. 4a.  [SUPPORT ORDER.] (a) "Support order" means a 
 20.16  judgment, decree, or order, whether temporary, final, or subject 
 20.17  to modification, issued by a court or administrative agency of 
 20.18  competent jurisdiction, for the support and maintenance of a 
 20.19  child, including a child who has attained the age of majority 
 20.20  under the law of the issuing state, or a child and the parent 
 20.21  with whom the child is living, that provides ~~for monetary~~: 
 20.22     (1) basic support~~,~~; 
 20.23     (2) child care~~,~~ support; 
 20.24     (3) medical support, including expenses for confinement and 
 20.25  pregnancy, arrearages, or reimbursement~~,~~; and ~~that~~ 
 20.26     (4) may include related costs and fees, interest and 
 20.27  penalties, income withholding, and other relief.  ~~This~~ 
 20.28     (b) The definition in paragraph (a) applies to orders 
 20.29  issued under this chapter and chapters 256, 257, ~~and~~ 393, 518C, 
 20.30  and 588. 
 20.31     Sec. 5.  Minnesota Statutes 2000, section 518.54, is 
 20.32  amended by adding a subdivision to read: 
 20.33     Subd. 4b.  [BASIC SUPPORT.] "Basic support" means the 
 20.34  dollar amount ordered to be paid by the obligor for the cost of 
 20.35  a child's housing, food, clothing, transportation, education, 
 20.36  and other expenses, including, but not limited to, personal care 
 21.1   items, entertainment, and reading materials.  Basic support does 
 21.2   not include monetary contributions for a child's private school 
 21.3   tuition, child care expenses, and medical and dental expenses. 
 21.4      Sec. 6.  Minnesota Statutes 2000, section 518.54, is 
 21.5   amended by adding a subdivision to read: 
 21.6      Subd. 4c.  [CHILD CARE SUPPORT.] "Child care support" means 
 21.7   the dollar amount ordered to be paid by the obligor for 
 21.8   work-related and education-related child care costs. 
 21.9      Sec. 7.  Minnesota Statutes 2000, section 518.54, 
 21.10  subdivision 6, is amended to read: 
 21.11     Subd. 6.  [INCOME.] "Income" means any form of periodic 
 21.12  payment to an individual including, but not limited to, wages, 
 21.13  salaries, payments to an independent contractor, workers' 
 21.14  compensation, unemployment benefits, annuity, military and naval 
 21.15  retirement, pension and disability payments~~.  Benefits received~~ 
 21.16  ~~under Title IV-A of the Social Security Act and chapter 256J are~~ 
 21.17  ~~not income under this section~~, in-kind payments received by the 
 21.18  parties in the course of employment, self-employment, or 
 21.19  operation of a business if the payments reduce the parties' 
 21.20  living expenses, and all wages earned by a parent who receives 
 21.21  an MFIP cash grant under chapter 256J. 
 21.22     Sec. 8.  Minnesota Statutes 2000, section 518.54, is 
 21.23  amended by adding a subdivision to read: 
 21.24     Subd. 6a.  [ADJUSTED GROSS INCOME.] "Adjusted gross income,"
 21.25  for purposes of calculating child support under section 
 21.26  518.5416, means income minus deductions, if applicable, for (1) 
 21.27  ordinary and necessary business expenses from self-employment 
 21.28  and (2) other child support or maintenance orders currently 
 21.29  being paid. 
 21.30     Sec. 9.  Minnesota Statutes 2000, section 518.54, is 
 21.31  amended by adding a subdivision to read: 
 21.32     Subd. 6b.  [INCOME AVAILABLE FOR CHILD SUPPORT.] "Income 
 21.33  available for child support" means a parent's adjusted gross 
 21.34  income minus a deduction under section 518.5416, subdivision 4, 
 21.35  for any other legally dependent child. 
 21.36     Sec. 10.  Minnesota Statutes 2000, section 518.54, is 
 22.1   amended by adding a subdivision to read: 
 22.2      Subd. 6c.  [OTHER LEGALLY DEPENDENT CHILD.] "Other legally 
 22.3   dependent child" means a child: 
 22.4      (1) whom the parent has the legal duty to support; 
 22.5      (2) who is not a subject of the action for child support; 
 22.6      (3) for whom the parent is not ordered to pay child 
 22.7   support; and 
 22.8      (4) for whom no other person has court-ordered sole 
 22.9   physical custody. 
 22.10     Sec. 11.  Minnesota Statutes 2000, section 518.54, 
 22.11  subdivision 8, is amended to read: 
 22.12     Subd. 8.  [OBLIGOR.] "Obligor" means a person obligated to 
 22.13  pay maintenance or support.  A person who is designated as the 
 22.14  sole physical custodian of a child is presumed not to be an 
 22.15  obligor for purposes of calculating current support under 
 22.16  section ~~518.551~~ 518.5416 unless the court makes specific written 
 22.17  findings to overcome this presumption.  For purposes of ordering 
 22.18  medical support under section 518.1711, an obligor may include a 
 22.19  custodial parent. 
 22.20     Sec. 12.  [518.5411] [CHILD SUPPORT ORDERS.] 
 22.21     Subdivision 1.  [ORDER.] After receipt of the notice of 
 22.22  proceedings for dissolution, legal separation, determination of 
 22.23  parentage, or custody of a child, the court must set child 
 22.24  support as provided in section 518.5416.  The court order must 
 22.25  contain the amounts ordered, if any, for basic support, child 
 22.26  care support, and medical support.  The court may order either 
 22.27  or both parents owing a duty of support to pay an amount 
 22.28  reasonable or necessary for the child's support.  The court may 
 22.29  not consider marital misconduct in setting child support. 
 22.30     Subd. 2.  [AGREEMENTS.] The court must review a child 
 22.31  support stipulation of the parties to ensure it serves the best 
 22.32  interests of the child.  The court may refuse to accept or may 
 22.33  alter an agreement that does not conform with the requirements 
 22.34  of section 518.5416 or that is otherwise not in the best 
 22.35  interests of the child. 
 22.36     Subd. 3.  [SPECIFIC DOLLAR AMOUNT.] The court must order 
 23.1   child support in a specific dollar amount.  A support order may 
 23.2   be in the form of a percentage share of the obligor's net 
 23.3   bonuses, commissions, or other forms of compensation in addition 
 23.4   to, or, if the obligor receives no base pay, in lieu of an order 
 23.5   for a specific dollar amount. 
 23.6      Sec. 13.  [518.5412] [EXCHANGE OF INFORMATION.] 
 23.7      Subdivision 1.  [DOCUMENTATION.] The parties must timely 
 23.8   serve and file documentation of earnings and income.  When there 
 23.9   is a prehearing conference, the court must receive the 
 23.10  documentation of income at least ten days prior to the 
 23.11  prehearing conference.  Documentation of earnings and income 
 23.12  includes, but is not limited to, pay stubs for the most recent 
 23.13  three months, employer statements, or statement of receipts and 
 23.14  expenses if self-employed.  Documentation of earnings and income 
 23.15  also includes copies of each parent's most recent federal tax 
 23.16  returns, including W-2 forms, 1099 forms, unemployment benefits 
 23.17  statements, workers' compensation statements, and all other 
 23.18  documents evidencing income received that provide verification 
 23.19  of income over a longer period than the most recent three months.
 23.20     Subd. 2.  [TAX RETURNS.] At any time after an action 
 23.21  seeking child support has been commenced or when a child support 
 23.22  order is in effect, a party or the public authority may require 
 23.23  the other party to provide a copy of the party's most recent 
 23.24  federal tax returns that were filed with the Internal Revenue 
 23.25  Service.  The party must provide a copy of the tax returns 
 23.26  within 30 days of receipt of the request unless the request is 
 23.27  not made in good faith.  In the absence of good cause, a request 
 23.28  under this subdivision may not be made more than once every two 
 23.29  years. 
 23.30     Subd. 3.  [NOTICE TO PUBLIC AUTHORITY.] The petitioner must 
 23.31  notify the public authority of all proceedings for dissolution, 
 23.32  legal separation, determination of parentage, or custody of a 
 23.33  child if either party is receiving public assistance or applies 
 23.34  for it after the commencement of the proceeding.  The notice 
 23.35  must contain the full names, social security numbers, and birth 
 23.36  dates of the parties to the proceeding. 
 24.1      Sec. 14.  [518.5413] [INCOME.] 
 24.2      Subdivision 1.  [SOURCES.] Sources of income include 
 24.3   "income" as defined under section 518.54, subdivision 6. 
 24.4      Subd. 2.  [EXCLUSIONS.] Benefits received from public 
 24.5   assistance programs that are not income under this section 
 24.6   include, but are not limited to: 
 24.7      (1) benefits under title IV-A of the Social Security Act; 
 24.8      (2) supplemental security income under Title XVI of the 
 24.9   Social Security Act; 
 24.10     (3) MFIP under chapter 256J; 
 24.11     (4) any form of general assistance and aid under chapter 
 24.12  256D; 
 24.13     (5) any form of medical assistance under chapter 256B; 
 24.14     (6) MinnesotaCare under chapter 256L; 
 24.15     (7) child care assistance provided through the child care 
 24.16  fund under chapter 119B; 
 24.17     (8) food stamps; 
 24.18     (9) Section 8 certificates and vouchers programs; and 
 24.19     (10) earned income tax credits and working family credits. 
 24.20     Subd. 3.  [INCOME OF OTHERS.] Income of a party's spouse or 
 24.21  other household member is not income under this section. 
 24.22     Subd. 4.  [OVERTIME.] Compensation received by a party for 
 24.23  employment in excess of a 40-hour work week is excluded from the 
 24.24  calculation of income under this section, if: 
 24.25     (1) support is ordered in an amount at least equal to the 
 24.26  guidelines amount, if the support award does not include excess 
 24.27  income as defined under this section; and 
 24.28     (2) the party demonstrates, and the court finds, that the 
 24.29  following apply: 
 24.30     (i) the excess employment began after the filing of the 
 24.31  petition for dissolution but is an increase in the work schedule 
 24.32  or hours worked over that of the two years immediately preceding 
 24.33  the filing of the action to establish or modify support; 
 24.34     (ii) the excess employment is voluntary and not a condition 
 24.35  of employment; 
 24.36     (iii) the excess employment is in the nature of additional, 
 25.1   part-time or overtime employment compensable by the hour or 
 25.2   fraction of an hour; and 
 25.3      (iv) the party's compensation structure has not been 
 25.4   changed for the purpose of affecting a support or maintenance 
 25.5   obligation. 
 25.6   If the requirements in items (i) to (iv) are not met, the excess 
 25.7   income must be included in the party's total income for purposes 
 25.8   of calculating the party's support or maintenance obligation. 
 25.9      Subd. 5.  [CHILD SUPPORT FOR OTHER LEGALLY DEPENDENT 
 25.10  CHILD.] Child support received for any other legally dependent 
 25.11  child is not income under this section. 
 25.12     Subd. 6.  [SELF-EMPLOYMENT; INDEPENDENT 
 25.13  CONTRACTORS.] Income from self-employment is equal to gross 
 25.14  receipts minus ordinary and necessary expenses.  Ordinary and 
 25.15  necessary expenses include what would otherwise be the 
 25.16  employer's share of the contributions under the Federal 
 25.17  Insurance Contributions Act (FICA), United States Code, title 
 25.18  26, subtitle C, chapter 21, subchapter A, sections 3101 to 
 25.19  3126.  Ordinary and necessary expenses do not include amounts 
 25.20  allowed by the Internal Revenue Service for accelerated 
 25.21  depreciation expenses or investment tax credits or any other 
 25.22  business expenses determined by the court to be inappropriate 
 25.23  for determining income for purposes of child support.  The 
 25.24  person seeking to deduct an expense, including depreciation, has 
 25.25  the burden of proving, if challenged, that the expense is 
 25.26  ordinary and necessary.  Income available for child support 
 25.27  under this section may be different from taxable income. 
 25.28     Sec. 15.  [518.5414] [IMPUTED INCOME.] 
 25.29     Subdivision 1.  [DEFINITION.] "Imputed income" means the 
 25.30  estimated earning ability of a parent based on the parent's 
 25.31  prior earnings history, education, and job skills and on the 
 25.32  availability of jobs within the community for an individual with 
 25.33  the parent's qualifications. 
 25.34     Subd. 2.  [NONAPPEARANCE OF A PARTY.] If a parent under the 
 25.35  jurisdiction of the court does not appear at a court hearing 
 25.36  after proper notice of the time and place of the hearing, the 
 26.1   court must set income for that parent based on credible evidence 
 26.2   before the court or in accordance with subdivision 3.  Credible 
 26.3   evidence may include documentation of current or recent income, 
 26.4   testimony of the other parent concerning recent earnings and 
 26.5   income levels, and the parent's wage reports filed with the 
 26.6   department of economic security under section 268.044. 
 26.7      Subd. 3.  [VOLUNTARY UNEMPLOYMENT OR UNDEREMPLOYMENT.] (a) 
 26.8   If the court finds that a parent is voluntarily unemployed or 
 26.9   underemployed or was voluntarily unemployed or underemployed 
 26.10  during the period for which past support is being sought, 
 26.11  support must be calculated based on a determination of imputed 
 26.12  income. 
 26.13     (b) A parent is not considered voluntarily unemployed or 
 26.14  underemployed upon a showing by the parent that: 
 26.15     (1) the unemployment or underemployment is temporary and 
 26.16  will ultimately lead to an increase in income; 
 26.17     (2) the unemployment or underemployment represents a bona 
 26.18  fide career change that outweighs the adverse effect of that 
 26.19  parent's diminished income on the child; 
 26.20     (3) the parent is a recipient of public assistance as 
 26.21  defined under section 256.741, subdivision 1; or 
 26.22     (4) the parent is physically or mentally incapacitated. 
 26.23     Subd. 4.  [INSUFFICIENT INFORMATION.] If there is 
 26.24  insufficient information to determine actual income or to impute 
 26.25  income pursuant to subdivision 2 or 3, the court may calculate 
 26.26  support based on full-time employment of 40 hours per week at 
 26.27  150 percent of the federal minimum wage or the Minnesota minimum 
 26.28  wage, whichever is higher. 
 26.29     Subd. 5.  [PARENT PROVIDING AT-HOME CARE TO CHILD.] The 
 26.30  court must consider the following factors when determining 
 26.31  whether a parent is voluntarily unemployed or underemployed when 
 26.32  the parent stays at home to care for a child who is a subject of 
 26.33  the order for child support: 
 26.34     (1) the parties' parenting and child care arrangement prior 
 26.35  to the action for child support; 
 26.36     (2) the stay-at-home parent's employment history, including 
 27.1   recency of employment and earnings, as well as the availability 
 27.2   of jobs within the community for an individual with the parent's 
 27.3   qualifications; 
 27.4      (3) the relationship between the employment-related 
 27.5   expenses, including child care, cost for transportation, 
 27.6   suitable clothing, and other items required for the parent to be 
 27.7   employed, and the income that the stay-at-home parent could 
 27.8   receive from available jobs within the community for an 
 27.9   individual with the parent's qualifications; 
 27.10     (4) the age and health of the child, including whether the 
 27.11  child is physically or mentally disabled; and 
 27.12     (5) the availability of appropriate child care providers. 
 27.13     Sec. 16.  [518.5415] [PRESUMPTIVE CHILD SUPPORT ORDERS; 
 27.14  GENERAL.] 
 27.15     Subdivision 1.  [REBUTTABLE PRESUMPTION.] The guidelines in 
 27.16  sections 518.5413 to 518.5416 are a rebuttable presumption and 
 27.17  must be used in all cases when establishing or modifying child 
 27.18  support. 
 27.19     Subd. 2.  [PRESUMPTION REGARDING TAX BENEFITS.] The basic 
 27.20  support schedule in section 518.5423 presumes that the obligee 
 27.21  receives the income tax benefits available to the custodial 
 27.22  parent, including, but not limited to, the dependent care credit 
 27.23  under section 290.067; the Minnesota working family credit under 
 27.24  section 290.0671; the Minnesota education credit under section 
 27.25  290.0674; the earned income credit under United States Code, 
 27.26  title 26, section 3507; and the child tax credit under United 
 27.27  States Code, title 26, section 24.  The court may consider an 
 27.28  upward deviation if the obligee does not receive the income tax 
 27.29  benefits. 
 27.30     Subd. 3.  [COST-OF-LIVING ADJUSTMENTS.] The dollar amount 
 27.31  of the income limit for application of the guidelines must be 
 27.32  adjusted on July 1 of every even-numbered year to reflect 
 27.33  cost-of-living changes.  The commissioner of human services must 
 27.34  select the index for the adjustment from the indices listed in 
 27.35  section 518.641.  The commissioner of human services must make 
 27.36  the changes in the dollar amount required by this subdivision 
 28.1   available to courts and the public on or before April 30 of the 
 28.2   year in which the amount is to change. 
 28.3      Subd. 4.  [CHILD'S INSURANCE BENEFIT.] In establishing or 
 28.4   modifying child support, if a child receives a child's insurance 
 28.5   benefit under United States Code, title 42, section 402, because 
 28.6   the obligor is entitled to old age or disability insurance 
 28.7   benefits, the amount of support ordered must be offset by the 
 28.8   amount of the child's benefit.  The court must make findings 
 28.9   regarding the obligor's income from all sources, the child 
 28.10  support amount calculated under section 518.5416, the amount of 
 28.11  the child's benefit, and the obligor's child support 
 28.12  obligation.  A benefit received by the child in a given month in 
 28.13  excess of the child support obligation must not be treated as an 
 28.14  arrearage payment or a future payment. 
 28.15     Sec. 17.  [518.5416] [CALCULATING CHILD SUPPORT.] 
 28.16     Subdivision 1.  [WORKSHEET.] The commissioner of human 
 28.17  services must create a worksheet for calculation of child 
 28.18  support under this section.  The worksheet must incorporate the 
 28.19  methodology for calculating child support as provided in this 
 28.20  section.  The commissioner must produce and include with the 
 28.21  worksheet all tables or charts necessary for determining basic 
 28.22  support, child care support, and medical support, and the 
 28.23  deduction for any other legally dependent child.  The 
 28.24  commissioner must update the worksheet and accompanying tables 
 28.25  or charts annually. 
 28.26     Subd. 2.  [CALCULATING ADJUSTED GROSS INCOME.] Monthly 
 28.27  adjusted gross income must be calculated for both the obligor 
 28.28  and obligee in accordance with section 518.54, subdivision 6a. 
 28.29     Subd. 3.  [PRESUMPTIVE MINIMUM FOR BASIC SUPPORT.] (a) If 
 28.30  the obligor's adjusted gross income is less than 150 percent of 
 28.31  the federal poverty guidelines per month, the court must order 
 28.32  the presumptive minimum for basic support as follows: 
 28.33     (1) for one or two children, the obligor's basic support 
 28.34  obligation is the greater of ten percent of adjusted gross 
 28.35  income or $50 per month; or 
 28.36     (2) for three children or more, the obligor's basic support 
 29.1   obligation is the greater of 12 percent of adjusted gross income 
 29.2   or $75 per month. 
 29.3      (b) If the court orders the obligor to pay the presumptive 
 29.4   minimum for basic support, the obligor is presumed unable to pay 
 29.5   child care support and medical support. 
 29.6      (c) The presumptive minimum for basic support does not 
 29.7   apply if the obligor receives no income and does not have the 
 29.8   ability to earn income. 
 29.9      Subd. 4.  [BASIC SUPPORT.] If the obligor's adjusted gross 
 29.10  income is equal to or greater than 150 percent of the federal 
 29.11  poverty guidelines per month, the court must derive a specific 
 29.12  dollar amount for basic support as follows: 
 29.13     (a) The court must calculate the amount of the obligor's 
 29.14  and obligee's monthly income available for child support in 
 29.15  accordance with section 518.54, subdivision 6b. 
 29.16     (b) The deduction for any other legally dependent child 
 29.17  must be calculated using the following method: 
 29.18     (1) compute 120 percent of the federal poverty guidelines 
 29.19  for a family size equal to two parents plus each legally 
 29.20  dependent child.  A maximum of four other legally dependent 
 29.21  children may be included in the calculation; 
 29.22     (2) divide the amount determined under clause (1) by the 
 29.23  family size calculated under clause (1); 
 29.24     (3) multiply the amount calculated under clause (2) by the 
 29.25  number of other legally dependent children; 
 29.26     (4) divide the amount calculated under clause (3) by two to 
 29.27  determine one parent's share of the basic needs of any other 
 29.28  legally dependent child; and 
 29.29     (5) divide the amount calculated under clause (4) by 12 to 
 29.30  determine the monthly deduction for other legally dependent 
 29.31  children. 
 29.32     (c) The court must calculate the amount of the obligor's 
 29.33  and obligee's proportionate share of income available for child 
 29.34  support by dividing each party's income available for child 
 29.35  support under paragraph (a) by the sum of the obligor's and 
 29.36  obligee's income available for child support under paragraph (a).
 30.1      (d) The obligor's and obligee's shared responsibility for 
 30.2   basic support is based upon the sum of each party's income 
 30.3   available for child support under paragraph (a) and the number 
 30.4   of children who are parties to the action for child support.  
 30.5   The amount of the obligor's and obligee's shared responsibility 
 30.6   for basic support is determined using the schedule of basic 
 30.7   support under section 518.5423.  If the sum total of the 
 30.8   obligor's and obligee's monthly income available for child 
 30.9   support falls between two income levels in the schedule, the 
 30.10  court must use the support amount for the lower income level. 
 30.11     (e) The dollar amount of the income limit in the basic 
 30.12  support schedule in section 518.5423 must be adjusted under 
 30.13  section 518.5415, subdivision 3. 
 30.14     (f) The court must calculate the obligor's and obligee's 
 30.15  proportionate responsibility for basic support by multiplying 
 30.16  each party's proportionate share of income available for child 
 30.17  support under paragraph (c) by the amount of the obligor's and 
 30.18  obligee's shared responsibility for basic support under 
 30.19  paragraph (d). 
 30.20     (g) The court must order basic support in the amount of the 
 30.21  obligor's proportionate responsibility for child support under 
 30.22  paragraph (f).  It is presumed that the obligee spends the 
 30.23  amount of the obligee's proportionate responsibility for child 
 30.24  support under paragraph (f) directly on the child. 
 30.25     (h) If the sum total of the obligor's and obligee's income 
 30.26  available for child support exceeds the income limit in effect 
 30.27  under section 518.5415, subdivision 3, the court must order 
 30.28  basic support in an amount at least equal to the income limit in 
 30.29  effect. 
 30.30     Subd. 5.  [CHILD CARE SUPPORT.] (a) If the obligor's 
 30.31  adjusted gross income is equal to or greater than 150 percent of 
 30.32  the federal poverty guidelines per month, and if the obligor's 
 30.33  income available for child support under subdivision 4, 
 30.34  paragraph (a), exceeds the income eligibility requirements for 
 30.35  child care assistance for a household size equal to the obligor 
 30.36  plus the child who is the subject of the order for child support 
 31.1   under the basic sliding fee program under chapter 119B, the 
 31.2   court must order the obligor to pay child care support as 
 31.3   follows: 
 31.4      (1) the court must determine the obligor's and obligee's 
 31.5   shared responsibility for the actual cost of work-related and 
 31.6   education-related child care.  The actual cost paid for child 
 31.7   care is the total amount the parents and public agency, if 
 31.8   applicable, pay the child care provider for the care of the 
 31.9   child.  The court must review the work-related and 
 31.10  education-related child care costs paid and require the obligee 
 31.11  and the public agency, if applicable, to provide verification of 
 31.12  employment or school attendance and documentation of child care 
 31.13  expenses; 
 31.14     (2) the court must calculate the obligor's and obligee's 
 31.15  proportionate responsibility for child care support by 
 31.16  multiplying each party's proportionate share of income available 
 31.17  for child support under subdivision 4, paragraph (c), by the 
 31.18  amount of the obligor's and obligee's shared responsibility for 
 31.19  child care support under paragraph (a), clause (1).  The court 
 31.20  must order the obligor to pay the amount of the obligor's 
 31.21  proportionate responsibility as child care support; 
 31.22     (3) if child care expenses fluctuate during the year 
 31.23  because of seasonal employment or school attendance of the 
 31.24  obligee or extended periods of parenting time with the obligor, 
 31.25  the court must determine child care expenses based on an average 
 31.26  monthly cost; 
 31.27     (4) child care support is not subject to a cost-of-living 
 31.28  adjustment under section 518.641; 
 31.29     (5) the amount allocated for child care expenses terminates 
 31.30  when either party notifies the public authority that the child 
 31.31  care costs have ended and without any legal action on the part 
 31.32  of either party.  The public authority must verify the 
 31.33  information received under this provision before authorizing 
 31.34  termination.  The termination is effective as of the date of the 
 31.35  notification; 
 31.36     (6) in other cases where there is a substantial increase or 
 32.1   decrease in child care expenses, the parties may seek 
 32.2   modification of the order under section 518.64; and 
 32.3      (7) the court may allow the noncustodial parent to care for 
 32.4   the child while the custodial parent is working, as provided in 
 32.5   section 518.175, subdivision 8.  Allowing the noncustodial 
 32.6   parent to care for the child under section 518.175, subdivision 
 32.7   8, is not a reason to deviate from the child support guidelines. 
 32.8      (b) If the obligor's adjusted gross income is equal to or 
 32.9   greater than 150 percent of the federal poverty guidelines per 
 32.10  month, and if the obligor's income available for child support 
 32.11  under subdivision 4, paragraph (a), meets the income eligibility 
 32.12  requirements for child care assistance under the basic sliding 
 32.13  fee program under chapter 119B, the court must order the obligor 
 32.14  to pay the lesser of the following amounts for child care 
 32.15  support: 
 32.16     (1) the amount of the obligor's monthly copayment for child 
 32.17  care assistance under the basic sliding fee schedule established 
 32.18  by the commissioner of human services under chapter 119B, based 
 32.19  upon the obligor's income available for child support and the 
 32.20  size of the obligor's household, which is defined as the obligor 
 32.21  plus the child who is a subject of the order for child support; 
 32.22  or 
 32.23     (2) the obligor's proportionate responsibility for child 
 32.24  care support under paragraph (a), clause (2). 
 32.25     Subd. 6.  [MEDICAL SUPPORT.] (a) The court must determine 
 32.26  if the obligor and obligee have access to appropriate health 
 32.27  care coverage under section 518.1711 and order that the child be 
 32.28  enrolled in appropriate health care or that the party apply for 
 32.29  public coverage. 
 32.30     (b) If the obligor's adjusted gross income is equal to or 
 32.31  greater than 150 percent of the federal poverty guidelines per 
 32.32  month, and if the obligor or obligee, or both, have appropriate 
 32.33  health care coverage, the court must calculate medical support 
 32.34  as follows: 
 32.35     (1) the court must determine the cost of the child's health 
 32.36  care coverage; 
 33.1      (2) unless the child is receiving medical assistance under 
 33.2   chapter 256B or MinnesotaCare under chapter 256L, the court must 
 33.3   determine the obligor's and obligee's proportionate 
 33.4   responsibility for medical support by multiplying the amount 
 33.5   under clause (1) by the amount of the obligor's and obligee's 
 33.6   proportionate responsibility for child support under subdivision 
 33.7   4, paragraph (c); and 
 33.8      (3) the court must order the obligor and obligee to pay for 
 33.9   the child's uninsured and unreimbursed medical expenses by 
 33.10  multiplying the amount of the expenses by the amount of the 
 33.11  obligor's and obligee's proportionate responsibility for child 
 33.12  support under subdivision 4, paragraph (c). 
 33.13     (c) If a party's obligation for the health care coverage 
 33.14  premiums is greater than five percent of the party's income 
 33.15  available for child support under subdivision 4, paragraph (b), 
 33.16  the court may order the other party to contribute more for the 
 33.17  cost of the premiums, if doing so would not result in extreme 
 33.18  hardship to that party.  If an additional contribution causes a 
 33.19  party extreme hardship, the court must order the obligor to 
 33.20  contribute the lesser of the two amounts under paragraph (d). 
 33.21     (d) If the obligor's adjusted gross income is equal to or 
 33.22  greater than 150 percent of the federal poverty guidelines per 
 33.23  month, and if the obligor or obligee does not have appropriate 
 33.24  health care coverage under section 518.1711, subdivision 3, the 
 33.25  court must order the obligor to pay the lesser of the following 
 33.26  amounts for medical support: 
 33.27     (1) the monthly amount the obligor would pay for the 
 33.28  child's premiums for a household size equal to the obligor plus 
 33.29  the child who is a subject of the order for child support under 
 33.30  the MinnesotaCare program's sliding fee scale that is 
 33.31  established by the commissioner of human services under chapter 
 33.32  256L, if the obligor's income available for child support under 
 33.33  subdivision 4, paragraph (a), meets the income eligibility 
 33.34  requirements for the MinnesotaCare program under chapter 256L.  
 33.35  The obligor's monthly premium payment must not exceed five 
 33.36  percent of the obligor's income available for child support 
 34.1   under subdivision 4, paragraph (a); or 
 34.2      (2) five percent of the obligor's monthly income available 
 34.3   for child support under subdivision 4, paragraph (a), if the 
 34.4   obligor's income available for child support does not meet the 
 34.5   eligibility requirements for the MinnesotaCare program under 
 34.6   chapter 256L. 
 34.7      (e) In ordering medical support under this section, the 
 34.8   court must comply with section 518.1711. 
 34.9      Subd. 7.  [ADJUSTMENT TO SUPPORT ORDER.] A support order 
 34.10  issued under this section may provide that during any period of 
 34.11  30 consecutive days or longer that the child is residing with 
 34.12  the noncustodial parent, the amount of support otherwise due 
 34.13  under the order may be reduced. 
 34.14     Subd. 8.  [ORDER FOR COMMUNITY SERVICES.] If the court 
 34.15  finds that the obligor earns 120 percent of the federal poverty 
 34.16  guidelines or less per month and does not have the ability to 
 34.17  provide support under this section, the court may order the 
 34.18  obligor to perform community service in addition to paying the 
 34.19  presumptive minimum for basic support under subdivision 3.  In 
 34.20  ordering community service under this subdivision, the court 
 34.21  must consider whether the obligor has the physical capability of 
 34.22  performing community service and must order community service 
 34.23  that is appropriate for the obligor's abilities. 
 34.24     Subd. 9.  [SUBSTANTIAL UNFAIRNESS TEST.] (a) If the obligee 
 34.25  receives public assistance as defined under section 256.741, 
 34.26  subdivision 1, or if the obligee's monthly adjusted gross income 
 34.27  is equal to or greater than 120 percent of the federal poverty 
 34.28  guidelines for a family size equal to the obligee plus the 
 34.29  number of children who are subjects of the order for child 
 34.30  support, the court must reduce the obligor's child support 
 34.31  obligation by the amount calculated as follows: 
 34.32     (1) calculate the sum of the obligor's proportionate 
 34.33  responsibility for basic support under subdivision 4, child care 
 34.34  support under subdivision 5, and medical support under 
 34.35  subdivision 6; 
 34.36     (2) subtract the amount calculated under clause (1) from 
 35.1   the obligor's monthly adjusted gross income under subdivision 2; 
 35.2   and 
 35.3      (3) subtract the amount calculated under clause (2) from 
 35.4   $835. 
 35.5      (b) In reducing the amount of the obligor's child support 
 35.6   obligation, the court must subtract the amount calculated under 
 35.7   paragraph (a), clause (3), from the obligor's medical support 
 35.8   obligation.  If the obligor's medical support obligation is less 
 35.9   than the amount calculated under paragraph (a), clause (3), the 
 35.10  court must then subtract the remaining amount from the obligor's 
 35.11  child care support obligation.  The court must then subtract any 
 35.12  remaining amount from the obligor's basic support obligation. 
 35.13     (c) The obligor's basic support obligation after reductions 
 35.14  under this subdivision must be equal to or greater than the 
 35.15  presumptive minimum for basic support under subdivision 3. 
 35.16     Sec. 18. [518.5417] [DEVIATIONS.] 
 35.17     Subdivision 1.  [GENERAL FACTORS.] In addition to the 
 35.18  provisions relating to the amount of child support ordered under 
 35.19  sections 518.5413 to 518.5416, the court must consider all 
 35.20  relevant factors, including the following, in setting or 
 35.21  modifying child support and in determining whether to deviate 
 35.22  from that amount: 
 35.23     (1) all earnings, income, and resources of the parents, 
 35.24  including real and personal property, but excluding income from 
 35.25  excess employment of the obligor or obligee that meets the 
 35.26  criteria of section 518.5413, subdivision 4; 
 35.27     (2) the special needs of the child to be supported, 
 35.28  including: 
 35.29     (i) the physical and emotional condition of the child; 
 35.30     (ii) any impairment, limitation, or disability of the 
 35.31  child, and the need for special services or education; and 
 35.32     (iii) any special ability or talent of the child and the 
 35.33  cost of educating or training that ability or talent; 
 35.34     (3) the standard of living the child would enjoy if the 
 35.35  parents were currently living together, recognizing that the 
 35.36  parents have separate households; 
 36.1      (4) the age and health of the child and each parent; 
 36.2      (5) the debts and liabilities of the child and each parent 
 36.3   as provided in subdivision 2; 
 36.4      (6) each parent's eligibility for or receipt of public 
 36.5   assistance as defined under section 256.741, subdivision 1.  A 
 36.6   court may deviate upward from the amount of child support under 
 36.7   the guidelines if a parent does not receive the public 
 36.8   assistance that the parent is eligible to receive; 
 36.9      (7) the child's private school tuition costs if the child 
 36.10  is enrolled in a private school before a parent brings the 
 36.11  action for child support; 
 36.12     (8) the best interests of the child; and 
 36.13     (9) other factors that the court considers relevant. 
 36.14     Subd. 2.  [DEBT.] (a) In establishing or modifying a 
 36.15  support obligation, the court may consider debts owed to private 
 36.16  creditors, but only if: 
 36.17     (1) the right to support has not been assigned under 
 36.18  section 256.741; 
 36.19     (2) the court determines that the debt was reasonably 
 36.20  incurred for necessary support of the child or parent or for the 
 36.21  necessary generation of income.  If the debt was incurred for 
 36.22  the necessary generation of income, the court must consider only 
 36.23  the amount of debt that is essential to the continuing 
 36.24  generation of income; and 
 36.25     (3) the party requesting a departure produces a sworn 
 36.26  schedule of the debts, with supporting documentation, showing 
 36.27  goods or services purchased, the recipient of them, the amount 
 36.28  of the original debt, the outstanding balance, the monthly 
 36.29  payment, and the number of months until the debt will be fully 
 36.30  paid. 
 36.31     (b) A schedule prepared under paragraph (a), clause (3), 
 36.32  must contain a statement that the debt will be fully paid after 
 36.33  the number of months shown in the schedule, barring emergencies 
 36.34  beyond the party's control. 
 36.35     (c) Any further departure below the guidelines that is 
 36.36  based on a consideration of debts owed to private creditors must 
 37.1   not exceed 18 months in duration, after which the support must 
 37.2   increase automatically to the level ordered by the court.  
 37.3   Nothing in this section must be construed to prohibit one or 
 37.4   more step increases in support to reflect debt retirement during 
 37.5   the 18-month period. 
 37.6      (d) If payment of debt is ordered under this section, the 
 37.7   payment must be ordered to be in the nature of child support. 
 37.8      Subd. 3.  [EVIDENCE.] The court may receive evidence on the 
 37.9   factors in this section to determine if the guidelines should be 
 37.10  exceeded or modified in a particular case. 
 37.11     Subd. 4.  [NO DEVIATION WHEN PAYMENTS ARE MADE TO THE 
 37.12  PUBLIC AUTHORITY EXCEPT FOR EXTREME HARDSHIP.] If the child 
 37.13  support payments are assigned to the public authority under 
 37.14  section 256.741, the court may not deviate downward from the 
 37.15  child support guidelines unless the court specifically finds 
 37.16  that the failure to deviate downward would impose an extreme 
 37.17  hardship on the obligor. 
 37.18     Sec. 19.  [518.5418] [WRITTEN FINDINGS.] 
 37.19     Subdivision 1.  [WORKSHEET.] The court must attach the 
 37.20  completed child support worksheet under section 518.5416 to the 
 37.21  child support order. 
 37.22     Subd. 2.  [NO DEVIATION.] If the court does not deviate 
 37.23  from the guidelines, the court must make written findings 
 37.24  concerning the amount of the parties' income used as the basis 
 37.25  for the guidelines calculation and any other significant 
 37.26  evidentiary factors affecting the determination of child support.
 37.27     Subd. 3.  [DEVIATION.] (a) If the court deviates from the 
 37.28  guidelines, the court must make written findings giving the 
 37.29  amount of child support calculated under the guidelines and the 
 37.30  reasons for the deviation, and must specifically address the 
 37.31  criteria for deviation under section 518.5417, including how the 
 37.32  deviation serves the best interests of the child. 
 37.33     (b) The court may deviate from the guidelines if both 
 37.34  parties agree and the court makes written findings that it is in 
 37.35  the best interests of the child, except that in cases where 
 37.36  child support payments are assigned to the public authority 
 38.1   under section 256.741, the court may deviate downward only as 
 38.2   provided in section 518.5417, subdivision 4.  Nothing in this 
 38.3   section prohibits the court from deviating in other cases. 
 38.4      Subd. 4.  [FAILURE OF NOTICE.] If the court in a 
 38.5   dissolution, legal separation, or determination of parentage 
 38.6   proceeding, finds before issuing the order for judgment and 
 38.7   decree that notification has not been given to the public 
 38.8   authority, the court must set child support according to the 
 38.9   guidelines in sections 518.5413 to 518.5416.  In proceedings in 
 38.10  which notification has not been made under this section and in 
 38.11  which the public authority determines that the judgment is lower 
 38.12  than the child support required by the guidelines in sections 
 38.13  518.5413 to 518.5416, the public authority must move the court 
 38.14  for a redetermination of the support payments ordered so that 
 38.15  the support payments comply with the guidelines. 
 38.16     Sec. 20.  [518.5421] [ASSIGNMENT.] 
 38.17     Subdivision 1.  [GENERAL.] The court must direct that all 
 38.18  payments ordered for maintenance and support be made to the 
 38.19  public authority so long as the obligee is receiving or has 
 38.20  applied for public assistance or has applied for child support 
 38.21  and maintenance collection services.  One public authority may 
 38.22  act on behalf of another public authority.  This includes the 
 38.23  authority to represent the legal interests of or execute 
 38.24  documents on behalf of the other public authority in connection 
 38.25  with the establishment, enforcement, and collection of child 
 38.26  support, maintenance, or medical support, and collection on 
 38.27  judgments.  Amounts received by the public authority greater 
 38.28  than the amount granted to the obligee must be remitted to the 
 38.29  obligee. 
 38.30     Subd. 2.  [JUDGMENTS.] The public authority is joined as a 
 38.31  party in each case in which rights are assigned under section 
 38.32  256.741, subdivision 2.  The court administrator must enter and 
 38.33  docket a judgment obtained by operation of law under section 
 38.34  548.091, subdivision 1, in the name of the public authority to 
 38.35  the extent that the obligation has been assigned.  When 
 38.36  arrearages are reduced to judgment under circumstances in which 
 39.1   section 548.091 is not applicable, the court must grant judgment 
 39.2   in favor of, and in the name of, the public authority to the 
 39.3   extent that the arrearages are assigned.  After filing notice of 
 39.4   an assignment with the court administrator, who must enter the 
 39.5   notice in the docket, the public authority may enforce a 
 39.6   judgment entered before the assignment of rights as if the 
 39.7   judgment were granted to it and in its name, to the extent that 
 39.8   the arrearages in that judgment are assigned. 
 39.9      Subd. 3.  [IV-D CASES.] The public authority is a real 
 39.10  party in interest in any IV-D case where there has been an 
 39.11  assignment of support.  In all other IV-D cases, the public 
 39.12  authority has a pecuniary interest, as well as an interest in 
 39.13  the welfare of the children involved in those cases.  The public 
 39.14  authority may intervene as a matter of right in those cases to 
 39.15  ensure that child support orders are obtained and enforced which 
 39.16  provide for an appropriate and accurate level of basic support, 
 39.17  medical support, and child care support.  If the public 
 39.18  authority participates in a IV-D case where the action taken by 
 39.19  the public authority requires the use of an attorney's services, 
 39.20  the public authority must be represented by an attorney 
 39.21  consistent with the provisions in section 518.255. 
 39.22     Sec. 21.  [518.5422] [FEES.] 
 39.23     Subdivision 1.  [OBLIGOR FEE.] When the public authority 
 39.24  provides child support collection services either to a public 
 39.25  assistance recipient or to a party who does not receive public 
 39.26  assistance, the public authority may, upon written notice to the 
 39.27  obligor, charge a monthly collection fee equivalent to the full 
 39.28  monthly cost to the county of providing collection services in 
 39.29  addition to the amount of the child support which was ordered by 
 39.30  the court.  The fee must be deposited in the county general 
 39.31  fund.  The service fee assessed is limited to ten percent of the 
 39.32  monthly court-ordered child support and must not be assessed to 
 39.33  obligors who are current in payment of the monthly court ordered 
 39.34  child support. 
 39.35     Subd. 2.  [OBLIGEE FEE.] An application fee of $25 must be 
 39.36  paid by the person who applies for child support and maintenance 
 40.1   collection services, except persons who are receiving public 
 40.2   assistance as defined in section 256.741, persons who transfer 
 40.3   from public assistance to nonpublic assistance status, and minor 
 40.4   parents and parents enrolled in a public secondary school, area 
 40.5   learning center, or alternative learning program approved by the 
 40.6   commissioner of children, families, and learning. 
 40.7      Subd. 3.  [TAX INTERCEPT FEES.] Fees assessed by federal 
 40.8   tax agencies for collection of overdue support owed to or on 
 40.9   behalf of a person not receiving public assistance must be 
 40.10  imposed on the person for whom these services are provided.  The 
 40.11  public authority, upon written notice to the obligee, must 
 40.12  assess a fee of $25 to the person not receiving public 
 40.13  assistance for each successful federal tax interception.  The 
 40.14  fee must be withheld prior to the release of the funds received 
 40.15  from each interception and deposited in the general fund. 
 40.16     Subd. 4.  [COMPLIANCE WITH FEDERAL LAW.] The limitations of 
 40.17  this section on the assessment of fees do not apply to the 
 40.18  extent inconsistent with the requirements of federal law for 
 40.19  receiving funds for the programs under titles IV-A and IV-D of 
 40.20  the Social Security Act, United States Code, title 42, sections 
 40.21  601 to 613, and United States Code, title 42, sections 651 to 
 40.22  662. 
 40.23     Sec. 22.  [518.5423] [SCHEDULE OF BASIC SUPPORT.] 
 40.24     The schedule of basic support for purposes of calculating 
 40.25  basic support under section 518.5416, subdivision 4, is the 
 40.26  following: 
 40.27  Combined 
 40.28  income   
 40.29  available                        Children
 40.30  for Child 
 40.31  Support      1        2        3        4        5        6
 40.32  Less than $1,000 
 40.33  $ 1,000   $  185   $  279   $  314   $  364   $  423   $  490
 40.34  $ 1,100   $  203   $  306   $  345   $  400   $  464   $  539
 40.35  $ 1,200   $  221   $  334   $  376   $  436   $  506   $  587
 40.36  $ 1,300   $  238   $  361   $  407   $  472   $  548   $  636
 40.37  $ 1,400   $  256   $  388   $  438   $  508   $  590   $  684
 40.38  $ 1,500   $  273   $  416   $  470   $  545   $  632   $  733
 41.1   $ 1,600   $  290   $  443   $  500   $  580   $  673   $  781
 41.2   $ 1,700   $  307   $  470   $  531   $  616   $  715   $  830
 41.3   $ 1,800   $  324   $  496   $  562   $  652   $  757   $  878
 41.4   $ 1,900   $  341   $  523   $  593   $  688   $  798   $  926
 41.5   $ 2,000   $  358   $  550   $  624   $  724   $  840   $  974
 41.6   $ 2,100   $  375   $  577   $  655   $  760   $  881   $1,022
 41.7   $ 2,200   $  391   $  603   $  686   $  796   $  922   $1,070
 41.8   $ 2,300   $  408   $  630   $  716   $  831   $  964   $1,118
 41.9   $ 2,400   $  424   $  656   $  747   $  867   $1,005   $1,166
 41.10  $ 2,500   $  440   $  683   $  778   $  903   $1,046   $1,214
 41.11  $ 2,600   $  456   $  709   $  808   $  938   $1,087   $1,261
 41.12  $ 2,700   $  472   $  735   $  839   $  974   $1,128   $1,309
 41.13  $ 2,800   $  488   $  761   $  869   $1,009   $1,169   $1,357
 41.14  $ 2,900   $  503   $  787   $  900   $1,045   $1,210   $1,404
 41.15  $ 3,000   $  519   $  813   $  930   $1,080   $1,251   $1,452
 41.16  $ 3,100   $  534   $  839   $  960   $1,115   $1,292   $1,499
 41.17  $ 3,200   $  550   $  865   $  991   $1,149   $1,333   $1,546
 41.18  $ 3,300   $  565   $  890   $1,021   $1,184   $1,374   $1,594
 41.19  $ 3,400   $  580   $  916   $1,051   $1,219   $1,415   $1,641
 41.20  $ 3,500   $  595   $  941   $1,082   $1,253   $1,455   $1,688
 41.21  $ 3,600   $  610   $  967   $1,112   $1,288   $1,496   $1,735
 41.22  $ 3,700   $  625   $  992   $1,142   $1,323   $1,536   $1,782
 41.23  $ 3,800   $  639   $1,018   $1,172   $1,358   $1,577   $1,829
 41.24  $ 3,900   $  654   $1,043   $1,202   $1,393   $1,617   $1,876
 41.25  $ 4,000   $  668   $1,068   $1,232   $1,428   $1,658   $1,923
 41.26  $ 4,100   $  682   $1,093   $1,262   $1,463   $1,698   $1,970
 41.27  $ 4,200   $  696   $1,118   $1,292   $1,498   $1,738   $2,017
 41.28  $ 4,300   $  710   $1,143   $1,322   $1,533   $1,779   $2,063
 41.29  $ 4,400   $  724   $1,168   $1,352   $1,567   $1,819   $2,110
 41.30  $ 4,500   $  738   $1,193   $1,382   $1,602   $1,859   $2,156
 41.31  $ 4,600   $  750   $1,210   $1,398   $1,622   $1,882   $2,183
 41.32  $ 4,700   $  761   $1,227   $1,415   $1,641   $1,904   $2,208
 41.33  $ 4,800   $  773   $1,243   $1,430   $1,660   $1,925   $2,233
 41.34  $ 4,900   $  784   $1,259   $1,446   $1,678   $1,945   $2,256
 41.35  $ 5,000   $  795   $1,275   $1,460   $1,695   $1,965   $2,279
 41.36  $ 5,100   $  806   $1,290   $1,474   $1,711   $1,983   $2,301
 42.1   $ 5,200   $  816   $1,305   $1,487   $1,725   $2,001   $2,321
 42.2   $ 5,300   $  827   $1,320   $1,500   $1,739   $2,018   $2,341
 42.3   $ 5,400   $  837   $1,334   $1,512   $1,753   $2,034   $2,360
 42.4   $ 5,500   $  847   $1,348   $1,524   $1,766   $2,050   $2,378
 42.5   $ 5,600   $  857   $1,363   $1,540   $1,785   $2,072   $2,404
 42.6   $ 5,700   $  866   $1,378   $1,556   $1,805   $2,094   $2,429
 42.7   $ 5,800   $  876   $1,393   $1,572   $1,824   $2,115   $2,454
 42.8   $ 5,900   $  885   $1,408   $1,587   $1,842   $2,136   $2,478
 42.9   $ 6,000   $  894   $1,422   $1,602   $1,860   $2,156   $2,501
 42.10  $ 6,100   $  903   $1,436   $1,618   $1,878   $2,177   $2,525
 42.11  $ 6,200   $  911   $1,450   $1,633   $1,895   $2,198   $2,549
 42.12  $ 6,300   $  920   $1,463   $1,648   $1,911   $2,218   $2,573
 42.13  $ 6,400   $  928   $1,476   $1,663   $1,928   $2,238   $2,595
 42.14  $ 6,500   $  936   $1,489   $1,677   $1,944   $2,257   $2,618
 42.15  $ 6,600   $  945   $1,503   $1,694   $1,963   $2,279   $2,643
 42.16  $ 6,700   $  954   $1,518   $1,710   $1,982   $2,301   $2,669
 42.17  $ 6,800   $  963   $1,533   $1,726   $2,001   $2,322   $2,694
 42.18  $ 6,900   $  972   $1,547   $1,742   $2,019   $2,343   $2,718
 42.19  $ 7,000   $  980   $1,561   $1,757   $2,037   $2,364   $2,743
 42.20  $ 7,100   $  990   $1,576   $1,774   $2,056   $2,386   $2,768
 42.21  $ 7,200   $  999   $1,591   $1,790   $2,075   $2,408   $2,794
 42.22  $ 7,300   $1,009   $1,606   $1,806   $2,094   $2,430   $2,819
 42.23  $ 7,400   $1,018   $1,621   $1,822   $2,112   $2,452   $2,844
 42.24  $ 7,500   $1,028   $1,635   $1,838   $2,130   $2,473   $2,868
 42.25  $ 7,600   $1,037   $1,649   $1,853   $2,148   $2,493   $2,892
 42.26  $ 7,700   $1,046   $1,663   $1,868   $2,165   $2,514   $2,916
 42.27  $ 7,800   $1,055   $1,677   $1,883   $2,182   $2,534   $2,939
 42.28  $ 7,900   $1,063   $1,691   $1,898   $2,199   $2,553   $2,962
 42.29  $ 8,000   $1,072   $1,704   $1,912   $2,216   $2,573   $2,985
 42.30  $ 8,100   $1,081   $1,719   $1,928   $2,234   $2,594   $3,009
 42.31  $ 8,200   $1,089   $1,733   $1,943   $2,252   $2,615   $3,034
 42.32  $ 8,300   $1,097   $1,748   $1,959   $2,269   $2,636   $3,057
 42.33  $ 8,400   $1,105   $1,762   $1,974   $2,286   $2,657   $3,081
 42.34  $ 8,500   $1,114   $1,777   $1,989   $2,304   $2,676   $3,104
 42.35  $ 8,600   $1,127   $1,797   $2,012   $2,334   $2,708   $3,141
 42.36  $ 8,700   $1,140   $1,818   $2,036   $2,362   $2,739   $3,178
 43.1   $ 8,800   $1,153   $1,839   $2,059   $2,389   $2,771   $3,214
 43.2   $ 8,900   $1,166   $1,860   $2,083   $2,416   $2,802   $3,251
 43.3   $ 9,000   $1,179   $1,881   $2,106   $2,443   $2,834   $3,287
 43.4   $ 9,100   $1,192   $1,902   $2,129   $2,470   $2,865   $3,324
 43.5   $ 9,200   $1,205   $1,923   $2,153   $2,497   $2,897   $3,360
 43.6   $ 9,300   $1,218   $1,944   $2,176   $2,524   $2,928   $3,397
 43.7   $ 9,400   $1,231   $1,965   $2,200   $2,552   $2,960   $3,433
 43.8   $ 9,500   $1,245   $1,986   $2,223   $2,579   $2,991   $3,470
 43.9   $ 9,600   $1,258   $2,006   $2,246   $2,606   $3,023   $3,506
 43.10  $ 9,700   $1,271   $2,027   $2,270   $2,633   $3,054   $3,543
 43.11  $ 9,800   $1,284   $2,048   $2,293   $2,660   $3,086   $3,579
 43.12  $ 9,900   $1,297   $2,069   $2,317   $2,687   $3,117   $3,616
 43.13  $10,000   $1,310   $2,090   $2,340   $2,714   $3,149   $3,652
 43.14  $10,100   $1,323   $2,111   $2,363   $2,742   $3,180   $3,689
 43.15  $10,200   $1,336   $2,132   $2,387   $2,769   $3,212   $3,726
 43.16  $10,300   $1,349   $2,153   $2,410   $2,796   $3,243   $3,762
 43.17  $10,400   $1,362   $2,174   $2,434   $2,823   $3,275   $3,799
 43.18  $10,500   $1,376   $2,195   $2,457   $2,850   $3,306   $3,835
 43.19  $10,600   $1,389   $2,215   $2,480   $2,877   $3,338   $3,872
 43.20  $10,700   $1,402   $2,236   $2,504   $2,904   $3,369   $3,908
 43.21  $10,800   $1,415   $2,257   $2,527   $2,932   $3,401   $3,945
 43.22  $10,900   $1,428   $2,278   $2,551   $2,959   $3,432   $3,981
 43.23  $11,000   $1,441   $2,299   $2,574   $2,986   $3,464   $4,018
 43.24  $11,100   $1,454   $2,320   $2,597   $3,013   $3,495   $4,054
 43.25  $11,200   $1,467   $2,341   $2,621   $3,040   $3,527   $4,091
 43.26  $11,300   $1,480   $2,362   $2,644   $3,067   $3,558   $4,127
 43.27  $11,400   $1,493   $2,383   $2,668   $3,094   $3,590   $4,164
 43.28  $11,500   $1,507   $2,404   $2,691   $3,122   $3,621   $4,200
 43.29  $11,600   $1,520   $2,424   $2,714   $3,149   $3,652   $4,237
 43.30  $11,700   $1,533   $2,445   $2,738   $3,176   $3,684   $4,273
 43.31  $11,800   $1,546   $2,466   $2,761   $3,203   $3,715   $4,310
 43.32  $11,900   $1,559   $2,487   $2,785   $3,230   $3,747   $4,346
 43.33  $12,000   $1,572   $2,508   $2,808   $3,257   $3,778   $4,383
 43.34  $12,100   $1,585   $2,529   $2,831   $3,284   $3,810   $4,420
 43.35  $12,200   $1,598   $2,550   $2,855   $3,312   $3,841   $4,456
 43.36  $12,300   $1,611   $2,571   $2,878   $3,339   $3,873   $4,493
 44.1   $12,400   $1,624   $2,592   $2,902   $3,366   $3,904   $4,529
 44.2   $12,500   $1,638   $2,613   $2,925   $3,393   $3,936   $4,566
 44.3   $12,600   $1,651   $2,633   $2,948   $3,420   $3,967   $4,602
 44.4   $12,700   $1,664   $2,654   $2,972   $3,447   $3,999   $4,639
 44.5   $12,800   $1,677   $2,675   $2,995   $3,474   $4,030   $4,675
 44.6   $12,900   $1,690   $2,696   $3,019   $3,502   $4,062   $4,712
 44.7   $13,000   $1,703   $2,717   $3,042   $3,529   $4,093   $4,748
 44.8   $13,100   $1,716   $2,738   $3,065   $3,556   $4,125   $4,785
 44.9   $13,200   $1,729   $2,759   $3,089   $3,583   $4,156   $4,821
 44.10  $13,300   $1,742   $2,780   $3,112   $3,610   $4,188   $4,858
 44.11  $13,400   $1,755   $2,801   $3,136   $3,637   $4,219   $4,894
 44.12  $13,500   $1,769   $2,822   $3,159   $3,664   $4,251   $4,931
 44.13  $13,600   $1,782   $2,842   $3,182   $3,692   $4,282   $4,967
 44.14  $13,700   $1,795   $2,863   $3,206   $3,719   $4,314   $5,004
 44.15  $13,800   $1,808   $2,884   $3,229   $3,746   $4,345   $5,040
 44.16  $13,900   $1,821   $2,905   $3,253   $3,773   $4,377   $5,077
 44.17  $14,000   $1,834   $2,926   $3,276   $3,800   $4,408   $5,113
 44.18  $14,100   $1,847   $2,947   $3,299   $3,827   $4,440   $5,150
 44.19  $14,200   $1,860   $2,968   $3,323   $3,854   $4,471   $5,187
 44.20  $14,300   $1,873   $2,989   $3,346   $3,882   $4,503   $5,223
 44.21  $14,400   $1,886   $3,010   $3,370   $3,909   $4,534   $5,260
 44.22  $14,500   $1,900   $3,031   $3,393   $3,936   $4,566   $5,296
 44.23  $14,600   $1,913   $3,051   $3,416   $3,963   $4,597   $5,333
 44.24  $14,700   $1,926   $3,072   $3,440   $3,990   $4,629   $5,369
 44.25  $14,800   $1,939   $3,093   $3,463   $4,017   $4,660   $5,406
 44.26  $14,900   $1,952   $3,114   $3,487   $4,044   $4,692   $5,442
 44.27  $15,000   $1,965   $3,135   $3,510   $4,072   $4,723   $5,479
 44.28     Sec. 23.  Minnesota Statutes 2000, section 518.551, 
 44.29  subdivision 5c, is amended to read: 
 44.30     Subd. 5c.  [~~CHILD SUPPORT~~ GUIDELINES ~~TO BE REVIEWED EVERY~~ 
 44.31  ~~FOUR YEARS~~ REVIEW.] No later than ~~1994~~ 2002 and every four years 
 44.32  after that, the department of human services ~~shall~~ must conduct 
 44.33  a review of the child support guidelines.  
 44.34     Sec. 24.  Minnesota Statutes 2000, section 518.553, is 
 44.35  amended to read: 
 44.36     518.553 [PAYMENT AGREEMENTS.] 
 45.1      In proposing or approving proposed written payment 
 45.2   agreements for purposes of ~~section 518.551~~ sections 518.1711 and 
 45.3   518.5416, the court, a child support magistrate, or the public 
 45.4   authority shall take into consideration the amount of the 
 45.5   arrearages, the amount of the current support order, any pending 
 45.6   request for modification, and the earnings of the obligor.  For 
 45.7   the purpose of section 518.1711, an obligor may include a 
 45.8   custodial parent.  The court, child support magistrate, or 
 45.9   public authority shall consider the individual financial 
 45.10  circumstances of each obligor in evaluating the obligor's 
 45.11  ability to pay any proposed payment agreement and shall propose 
 45.12  a reasonable payment agreement tailored to the individual 
 45.13  financial circumstances of each obligor. 
 45.14     Sec. 25.  Minnesota Statutes 2000, section 518.6111, 
 45.15  subdivision 1, is amended to read: 
 45.16     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
 45.17  section, the following terms have the meanings provided in this 
 45.18  subdivision unless otherwise stated. 
 45.19     (b) "Payor of funds" means any person or entity that 
 45.20  provides funds to an obligor, including an employer as defined 
 45.21  under chapter 24 of the Internal Revenue Code, section 3401(d), 
 45.22  an independent contractor, payor of worker's compensation 
 45.23  benefits or unemployment benefits, or a financial institution as 
 45.24  defined in section 13B.06. 
 45.25     (c) "Business day" means a day on which state offices are 
 45.26  open for regular business. 
 45.27     (d) "Arrears" means amounts owed under a support order that 
 45.28  are past due. 
 45.29     (e) "Obligor" means a person obligated to pay maintenance 
 45.30  or support, and for the purpose of section 518.1711, may include 
 45.31  a custodial parent. 
 45.32     Sec. 26.  Minnesota Statutes 2000, section 518.64, 
 45.33  subdivision 2, is amended to read: 
 45.34     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
 45.35  respecting maintenance or support may be modified upon a showing 
 45.36  of one or more of the following:  (1) substantially increased or 
 46.1   decreased earnings of a party; (2) substantially increased or 
 46.2   decreased need of a party or the child or children that are the 
 46.3   subject of these proceedings; (3) receipt of assistance under 
 46.4   the AFDC program formerly codified under sections 256.72 to 
 46.5   256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
 46.6   change in the cost of living for either party as measured by the 
 46.7   federal bureau of statistics, any of which makes the terms 
 46.8   unreasonable and unfair; (5) extraordinary medical expenses of 
 46.9   the child not provided for under section ~~518.171~~ 518.1711; or (6)
 46.10  the addition of work-related or education-related child care 
 46.11  expenses of the obligee or a substantial increase or decrease in 
 46.12  existing work-related or education-related child care expenses.  
 46.13  Implementation of section 518.5416 is not a basis for 
 46.14  modification under this section.  
 46.15     ~~On a motion to modify support, the needs of any child the~~ 
 46.16  ~~obligor has after the entry of the support order that is the~~ 
 46.17  ~~subject of a modification motion shall be considered as provided~~ 
 46.18  ~~by section 518.551, subdivision 5f.~~ 
 46.19     (b) It is presumed that there has been a substantial change 
 46.20  in circumstances under paragraph (a) and the terms of a current 
 46.21  support order shall be rebuttably presumed to be unreasonable 
 46.22  and unfair if: 
 46.23     (1) the application of the child support guidelines in 
 46.24  ~~section 518.551, subdivision 5~~ sections 518.5413 to 518.5416, to 
 46.25  the current circumstances of the parties results in a calculated 
 46.26  court order that is at least 20 percent and at least $50 per 
 46.27  month higher or lower than the current support order; 
 46.28     (2) the medical support provisions of the order established 
 46.29  under section ~~518.171~~ 518.1711 are not enforceable by the public 
 46.30  authority or ~~the custodial~~ a parent; 
 46.31     (3) health care coverage ordered ~~under section 518.171 is~~ 
 46.32  ~~not available to the child for whom the order is established by~~ 
 46.33  ~~the parent ordered to provide~~ is no longer appropriate under 
 46.34  section 518.1711; or 
 46.35     (4) the existing support obligation is in the form of a 
 46.36  statement of percentage and not a specific dollar amount.  
 47.1      (c) On a motion for modification of maintenance, including 
 47.2   a motion for the extension of the duration of a maintenance 
 47.3   award, the court shall apply, in addition to all other relevant 
 47.4   factors, the factors for an award of maintenance under section 
 47.5   518.552 that exist at the time of the motion.  On a motion for 
 47.6   modification of support, the court:  
 47.7      (1) shall apply section ~~518.551, subdivision 5~~ 518.5416, 
 47.8   and shall not consider the financial circumstances of each 
 47.9   party's spouse, if any; and 
 47.10     (2) shall not consider compensation received by a party for 
 47.11  employment in excess of a 40-hour work week, provided that the 
 47.12  party demonstrates, and the court finds, that: 
 47.13     (i) the excess employment began after entry of the existing 
 47.14  support order; 
 47.15     (ii) the excess employment is voluntary and not a condition 
 47.16  of employment; 
 47.17     (iii) the excess employment is in the nature of additional, 
 47.18  part-time employment, or overtime employment compensable by the 
 47.19  hour or fractions of an hour; 
 47.20     (iv) the party's compensation structure has not been 
 47.21  changed for the purpose of affecting a support or maintenance 
 47.22  obligation; 
 47.23     (v) in the case of an obligor, current child support 
 47.24  payments are at least equal to the guidelines amount based on 
 47.25  income not excluded under this clause; and 
 47.26     (vi) in the case of an obligor who is in arrears in child 
 47.27  support payments to the obligee, any net income from excess 
 47.28  employment must be used to pay the arrearages until the 
 47.29  arrearages are paid in full. 
 47.30     (d) A modification of support or maintenance, including 
 47.31  interest that accrued pursuant to section 548.091, may be made 
 47.32  retroactive only with respect to any period during which the 
 47.33  petitioning party has pending a motion for modification but only 
 47.34  from the date of service of notice of the motion on the 
 47.35  responding party and on the public authority if public 
 47.36  assistance is being furnished or the county attorney is the 
 48.1   attorney of record.  However, modification may be applied to an 
 48.2   earlier period if the court makes express findings that:  
 48.3      (1) the party seeking modification was precluded from 
 48.4   serving a motion by reason of a significant physical or mental 
 48.5   disability, a material misrepresentation of another party, or 
 48.6   fraud upon the court and that the party seeking modification, 
 48.7   when no longer precluded, promptly served a motion; 
 48.8      (2) the party seeking modification was a recipient of 
 48.9   federal Supplemental Security Income (SSI), Title II Older 
 48.10  Americans, Survivor's Disability Insurance (OASDI), other 
 48.11  disability benefits, or public assistance based upon need during 
 48.12  the period for which retroactive modification is sought; or 
 48.13     (3) the order for which the party seeks amendment was 
 48.14  entered by default, the party shows good cause for not 
 48.15  appearing, and the record contains no factual evidence, or 
 48.16  clearly erroneous evidence regarding the individual obligor's 
 48.17  ability to pay.  
 48.18     The court may provide that a reduction in the amount 
 48.19  allocated for child care expenses based on a substantial 
 48.20  decrease in the expenses is effective as of the date the 
 48.21  expenses decreased. 
 48.22     (e) Except for an award of the right of occupancy of the 
 48.23  homestead, provided in section 518.63, all divisions of real and 
 48.24  personal property provided by section 518.58 shall be final, and 
 48.25  may be revoked or modified only where the court finds the 
 48.26  existence of conditions that justify reopening a judgment under 
 48.27  the laws of this state, including motions under section 518.145, 
 48.28  subdivision 2.  The court may impose a lien or charge on the 
 48.29  divided property at any time while the property, or subsequently 
 48.30  acquired property, is owned by the parties or either of them, 
 48.31  for the payment of maintenance or support money, or may 
 48.32  sequester the property as is provided by section 518.24. 
 48.33     (f) The court need not hold an evidentiary hearing on a 
 48.34  motion for modification of maintenance or support. 
 48.35     (g) Section 518.14 shall govern the award of attorney fees 
 48.36  for motions brought under this subdivision. 
 49.1      Sec. 27.  Minnesota Statutes 2000, section 518.641, 
 49.2   subdivision 1, is amended to read: 
 49.3      Subdivision 1.  [REQUIREMENT.] An order for maintenance or 
 49.4   child support or medical support under section 518.1711 shall 
 49.5   provide for a biennial adjustment in the amount to be paid based 
 49.6   on a change in the cost of living.  An order that provides for a 
 49.7   cost-of-living adjustment shall specify the cost-of-living index 
 49.8   to be applied and the date on which the cost-of-living 
 49.9   adjustment shall become effective.  The court may use the 
 49.10  consumer price index for all urban consumers, Minneapolis-St. 
 49.11  Paul (CPI-U), the consumer price index for wage earners and 
 49.12  clerical, Minneapolis-St. Paul (CPI-W), or another 
 49.13  cost-of-living index published by the department of labor which 
 49.14  it specifically finds is more appropriate.  Cost-of-living 
 49.15  increases under this section shall be compounded.  The court may 
 49.16  also increase the amount by more than the cost-of-living 
 49.17  adjustment by agreement of the parties or by making further 
 49.18  findings.  The adjustment becomes effective on the first of May 
 49.19  of the year in which it is made, for cases in which payment is 
 49.20  made to the public authority.  For cases in which payment is not 
 49.21  made to the public authority, application for an adjustment may 
 49.22  be made in any month but no application for an adjustment may be 
 49.23  made sooner than two years after the date of the dissolution 
 49.24  decree.  A court may waive the requirement of the cost-of-living 
 49.25  clause if it expressly finds that the obligor's occupation or 
 49.26  income, or both, does not provide for cost-of-living adjustment 
 49.27  or that the order for maintenance or child or medical support 
 49.28  has a provision such as a step increase that has the effect of a 
 49.29  cost-of-living clause.  The court may waive a cost-of-living 
 49.30  adjustment in a maintenance order if the parties so agree in 
 49.31  writing.  The commissioner of human services may promulgate 
 49.32  rules for child support adjustments under this section in 
 49.33  accordance with the rulemaking provisions of chapter 14.  Notice 
 49.34  of this statute must comply with section 518.68, subdivision 2. 
 49.35     Sec. 28.  Minnesota Statutes 2000, section 518.641, 
 49.36  subdivision 3, is amended to read: 
 50.1      Subd. 3.  [RESULT OF HEARING.] (a) If, at a hearing 
 50.2   pursuant to this section regarding a maintenance or child 
 50.3   support adjustment, the obligor establishes an insufficient cost 
 50.4   of living or other increase in income that prevents fulfillment 
 50.5   of the adjusted maintenance or child support obligation, the 
 50.6   court may direct that all or part of the adjustment not take 
 50.7   effect.  If, at the hearing, the obligor does not establish this 
 50.8   insufficient increase in income, the adjustment shall take 
 50.9   effect as of the date it would have become effective had no 
 50.10  hearing been requested.  
 50.11     (b) If, at a hearing pursuant to this section regarding a 
 50.12  medical support adjustment, the obligor establishes that the 
 50.13  adjustment exceeds the actual cost of the health care coverage, 
 50.14  the court may direct that all or part of the adjustment not take 
 50.15  effect.  If, at the hearing, the obligor does not establish that 
 50.16  the adjusted medical support exceeds the actual cost of health 
 50.17  care coverage, the adjustment must take effect as of the date it 
 50.18  would have become effective had no hearing been requested. 
 50.19     Sec. 29.  Minnesota Statutes 2000, section 518.641, 
 50.20  subdivision 4, is amended to read: 
 50.21     Subd. 4.  [FORM.] The department of human services shall 
 50.22  prepare and make available to the court and obligors a form to 
 50.23  be submitted to the department by the obligor in support of a 
 50.24  request for hearing under this section regarding a child support 
 50.25  or medical support order.  
 50.26     Sec. 30.  Minnesota Statutes 2000, section 518.641, 
 50.27  subdivision 5, is amended to read: 
 50.28     Subd. 5.  [REQUEST FOR COST-OF-LIVING CLAUSE.] A motion for 
 50.29  enforcement or modification of an existing maintenance or child 
 50.30  support or medical support order shall include a request for a 
 50.31  cost-of-living clause.  The court may deny the request only upon 
 50.32  an express finding that the obligor's occupation, income, or 
 50.33  both, does not provide for a cost-of-living adjustment or that 
 50.34  the existing maintenance or child support or medical support 
 50.35  order either has a cost-of-living clause or sets forth a step 
 50.36  increase which has the effect of a cost-of-living adjustment. 
 51.1      Sec. 31.  [INSTRUCTION TO REVISOR.] 
 51.2      The revisor of statutes must renumber the sections in 
 51.3   Minnesota Statutes 2000 listed in column A as indicated in 
 51.4   column B and correct cross-references to those sections 
 51.5   throughout Minnesota Statutes and Minnesota Rules. 
 51.6           A                B     
 51.7   518.551, subd. 5c    518.5419
 51.8   518.551, subd. 5d    518.5420
 51.9      The revisor of statutes must change the headnote for 
 51.10  Minnesota Statutes, section 518.551, to "Enforcement." 
 51.11     Sec. 32.  [REPEALER.] 
 51.12     Minnesota Statutes 2000, sections 518.171; and 518.551, 
 51.13  subdivisions 1, 5, 5a, 5b, 5e, 5f, 6, 7, 9, and 11, are repealed.
 51.14     Sec. 33.  [EFFECTIVE DATE.] 
 51.15     This act is effective July 1, 2002.