1.1 	A bill for an act
1.2 	relating to family law; establishing child support
1.3 	guidelines; providing for a separate household
1.4 	adjustment; amending Minnesota Statutes 2004, section
1.5 	518.551, subdivision 5, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 518.551,
1.8 	subdivision 5, is amended to read:
1.9 		Subd. 5.Notice to public authority; guidelines.  (a) The
1.10 	petitioner shall notify the public authority of all proceedings
1.11 	for dissolution, legal separation, determination of parentage or
1.12 	for the custody of a child, if either party is receiving public
1.13 	assistance or applies for it subsequent to the commencement of
1.14 	the proceeding.
1.15 	(1) The notice must contain the full names of the parties
1.16 	to the proceeding, their Social Security account numbers, and
1.17 	their birth dates.  After receipt of the notice, the court shall
1.18 	set child support as provided in this subdivision.
1.19 	(2) If the court in a dissolution, legal separation, or
1.20 	determination of parentage proceeding finds before issuing the
1.21 	order for judgment and decree that notification has not been
1.22 	given to the public authority, the court must set child support
1.23 	according to the guidelines in this chapter.  In those
1.24 	proceedings in which no notification has been made pursuant to
1.25 	this section and in which the public authority determines that
2.1 	the judgment is lower than the child support required by the
2.2 	guidelines in this chapter, it must move the court for a
2.3 	redetermination of the support payments ordered so that the
2.4 	support payments comply with the guidelines.
2.5 	(3) The court may order either or both parents owing a duty
2.6 	of support to a child of the marriage to pay an amount
2.7 	reasonable or necessary for the child's support, without regard
2.8 	to marital misconduct.
2.9 	(4) The court shall approve a child support stipulation of
2.10 	the parties if each party is represented by independent counsel,
2.11 	unless the stipulation does not meet the conditions of paragraph
2.12 	(i).
2.13 	(5) In other cases the court shall determine and order
2.14 	child support in a specific dollar amount in accordance with the
2.15 	guidelines and the other factors set forth in paragraph (c) and
2.16 	any departure therefrom.
2.17 	(6) The court may also order the obligor to pay child
2.18 	support in the form of a percentage share of the obligor's net
2.19 	bonuses, commissions, or other forms of compensation, in
2.20 	addition to, or if the obligor receives no base pay, in lieu of,
2.21 	an order for a specific dollar amount.
2.22 	~~(b) The court shall derive a specific dollar amount for~~
2.23 	~~child support by multiplying the obligor's net income by the~~
2.24 	~~percentage indicated by the following guidelines:~~
2.25 	~~Net Income Per Number of Children~~
2.26 	~~Month of Obligor~~
2.27 	              ~~1 2 3 4 5 6 7 or~~
2.28 	                                                 ~~more~~
2.29 	~~$550 and Below Order based on the ability of the~~
2.30 	                   ~~obligor to provide support~~
2.31 	                   ~~at these income levels, or at higher~~
2.32 	                   ~~levels, if the obligor has~~
2.33 	                   ~~the earning ability.~~
2.34 	~~$551 - 600 16% 19% 22% 25% 28% 30% 32%~~
2.35 	~~$601 - 650 17% 21% 24% 27% 29% 32% 34%~~
2.36 	~~$651 - 700 18% 22% 25% 28% 31% 34% 36%~~
3.1 	~~$701 - 750 19% 23% 27% 30% 33% 36% 38%~~
3.2 	~~$751 - 800 20% 24% 28% 31% 35% 38% 40%~~
3.3 	~~$801 - 850 21% 25% 29% 33% 36% 40% 42%~~
3.4 	~~$851 - 900 22% 27% 31% 34% 38% 41% 44%~~
3.5 	~~$901 - 950 23% 28% 32% 36% 40% 43% 46%~~
3.6 	~~$951 - 1000 24% 29% 34% 38% 41% 45% 48%~~
3.7 	~~$1001- 5000 25% 30% 35% 39% 43% 47% 50%~~ 
3.8 	~~or the amount~~
3.9 	~~in effect under~~
3.10 	~~paragraph (k)~~ 
3.11 	~~Guidelines for support for an obligor with a monthly income~~
3.12 	~~in excess of the income limit currently in effect under~~
3.13 	~~paragraph (k) shall be the same dollar amounts as provided for~~
3.14 	~~in the guidelines for an obligor with a monthly income equal to~~
3.15 	~~the limit in effect.~~
3.16 	~~Net Income defined as:~~
3.17 	
3.18 	~~Total monthly~~
3.19 	         ~~income less *(i) Federal Income Tax~~
3.20 	                              ~~*(ii) State Income Tax~~
3.21 	                              ~~(iii) Social Security~~
3.22 	                                     ~~Deductions~~
3.23 	                               ~~(iv) Reasonable~~
3.24 	                                     ~~Pension Deductions~~
3.25 	         ~~*Standard~~
3.26 	         ~~Deductions apply-(v) Union Dues~~
3.27 	         ~~use of tax tables (vi) Cost of Dependent Health~~
3.28 	         ~~recommended Insurance Coverage~~
3.29 	                              ~~(vii) Cost of Individual or Group~~
3.30 	                                     ~~Health/Hospitalization~~
3.31 	                                     ~~Coverage or an~~
3.32 	                                     ~~Amount for Actual~~
3.33 	                                     ~~Medical Expenses~~
3.34 	                             ~~(viii) A Child Support or~~
3.35 	                                     ~~Maintenance Order that is~~
3.36 	                                     ~~Currently Being Paid.~~
4.1 	~~"Net income" does not include:~~
4.2 	~~(1) the income of the obligor's spouse, but does include~~
4.3 	~~in-kind payments received by the obligor in the course of~~
4.4 	~~employment, self-employment, or operation of a business if the~~
4.5 	~~payments reduce the obligor's living expenses; or~~ 
4.6 	~~(2) compensation received by a party for employment in~~
4.7 	~~excess of a 40-hour work week, provided that:~~
4.8 	~~(i) support is nonetheless ordered in an amount at least~~
4.9 	~~equal to the guidelines amount based on income not excluded~~
4.10 	~~under this clause; and~~ 
4.11 	~~(ii) the party demonstrates, and the court finds, that:~~
4.12 	~~(A) the excess employment began after the filing of the~~
4.13 	~~petition for dissolution;~~
4.14 	~~(B) the excess employment reflects an increase in the work~~
4.15 	~~schedule or hours worked over that of the two years immediately~~
4.16 	~~preceding the filing of the petition;~~
4.17 	~~(C) the excess employment is voluntary and not a condition~~
4.18 	~~of employment;~~
4.19 	~~(D) the excess employment is in the nature of additional,~~
4.20 	~~part-time or overtime employment compensable by the hour or~~
4.21 	~~fraction of an hour; and~~ 
4.22 	~~(E) the party's compensation structure has not been changed~~
4.23 	~~for the purpose of affecting a support or maintenance obligation.~~
4.24 	~~The court shall review the work-related and~~
4.25 	~~education-related child care costs paid and shall allocate the~~
4.26 	~~costs to each parent in proportion to each parent's net income,~~
4.27 	~~as determined under this subdivision, after the transfer of~~
4.28 	~~child support and spousal maintenance, unless the allocation~~
4.29 	~~would be substantially unfair to either parent.  There is a~~
4.30 	~~presumption of substantial unfairness if after the sum total of~~
4.31 	~~child support, spousal maintenance, and child care costs is~~
4.32 	~~subtracted from the obligor's income, the income is at or below~~
4.33 	~~100 percent of the federal poverty guidelines.  The cost of~~
4.34 	~~child care for purposes of this paragraph is 75 percent of the~~
4.35 	~~actual cost paid for child care, to reflect the approximate~~
4.36 	~~value of state and federal tax credits available to the~~
5.1 	~~obligee.  The actual cost paid for child care is the total~~
5.2 	~~amount received by the child care provider for the child or~~
5.3 	~~children of the obligor from the obligee or any public agency.~~
5.4 	~~The court shall require verification of employment or school~~
5.5 	~~attendance and documentation of child care expenses from the~~
5.6 	~~obligee and the public agency, if applicable.  If child care~~
5.7 	~~expenses fluctuate during the year because of seasonal~~
5.8 	~~employment or school attendance of the obligee or extended~~
5.9 	~~periods of parenting time with the obligor, the court shall~~
5.10 	~~determine child care expenses based on an average monthly cost.~~
5.11 	~~The amount allocated for child care expenses is considered child~~
5.12 	~~support but is not subject to a cost-of-living adjustment under~~
5.13 	~~section 518.641.  The amount allocated for child care expenses~~
5.14 	~~terminates when either party notifies the public authority that~~
5.15 	~~the child care costs have ended and without any legal action on~~
5.16 	~~the part of either party.  The public authority shall verify the~~
5.17 	~~information received under this provision before authorizing~~
5.18 	~~termination.  The termination is effective as of the date of the~~
5.19 	~~notification.  In other cases where there is a substantial~~
5.20 	~~increase or decrease in child care expenses, the parties may~~
5.21 	~~modify the order under section 518.64.~~
5.22 	~~The court may allow the obligor parent to care for the~~
5.23 	~~child while the obligee parent is working, as provided in~~
5.24 	~~section 518.175, subdivision 8, but this is not a reason to~~
5.25 	~~deviate from the guidelines.~~
5.26 	~~(c) In addition to the child support guidelines, the court~~
5.27 	~~shall take into consideration the following factors in setting~~
5.28 	~~or modifying child support or in determining whether to deviate~~
5.29 	~~from the guidelines:~~
5.30 	~~(1) all earnings, income, and resources of the parents,~~
5.31 	~~including real and personal property, but excluding income from~~
5.32 	~~excess employment of the obligor or obligee that meets the~~
5.33 	~~criteria of paragraph (b), clause (2)(ii);~~
5.34 	~~(2) the financial needs and resources, physical and~~
5.35 	~~emotional condition, and educational needs of the child or~~
5.36 	~~children to be supported;~~
6.1 	~~(3) the standard of living the child would have enjoyed had~~
6.2 	~~the marriage not been dissolved, but recognizing that the~~
6.3 	~~parents now have separate households;~~
6.4 	~~(4) which parent receives the income taxation dependency~~
6.5 	~~exemption and what financial benefit the parent receives from~~
6.6 	~~it;~~
6.7 	~~(5) the parents' debts as provided in paragraph (d); and~~ 
6.8 	~~(6) the obligor's receipt of public assistance under the~~
6.9 	~~AFDC program formerly codified under sections 256.72 to 256.82~~
6.10 	~~or 256B.01 to 256B.40 and chapter 256J or 256K.~~
6.11 	~~(d) In establishing or modifying a support obligation, the~~
6.12 	~~court may consider debts owed to private creditors, but only if:~~
6.13 	~~(1) the right to support has not been assigned under~~
6.14 	~~section 256.741;~~
6.15 	~~(2) the court determines that the debt was reasonably~~
6.16 	~~incurred for necessary support of the child or parent or for the~~
6.17 	~~necessary generation of income.  If the debt was incurred for~~
6.18 	~~the necessary generation of income, the court shall consider~~
6.19 	~~only the amount of debt that is essential to the continuing~~
6.20 	~~generation of income; and~~ 
6.21 	~~(3) the party requesting a departure produces a sworn~~
6.22 	~~schedule of the debts, with supporting documentation, showing~~
6.23 	~~goods or services purchased, the recipient of them, the amount~~
6.24 	~~of the original debt, the outstanding balance, the monthly~~
6.25 	~~payment, and the number of months until the debt will be fully~~
6.26 	~~paid.~~
6.27 	~~(e) Any schedule prepared under paragraph (d), clause (3),~~
6.28 	~~shall contain a statement that the debt will be fully paid after~~
6.29 	~~the number of months shown in the schedule, barring emergencies~~
6.30 	~~beyond the party's control.~~
6.31 	~~(f) Any further departure below the guidelines that is~~
6.32 	~~based on a consideration of debts owed to private creditors~~
6.33 	~~shall not exceed 18 months in duration, after which the support~~
6.34 	~~shall increase automatically to the level ordered by the court.~~
6.35 	~~Nothing in this section shall be construed to prohibit one or~~
6.36 	~~more step increases in support to reflect debt retirement during~~
7.1 	~~the 18-month period.~~
7.2 	~~(g) If payment of debt is ordered pursuant to this section,~~
7.3 	~~the payment shall be ordered to be in the nature of child~~
7.4 	~~support.~~
7.5 	~~(h) Nothing shall preclude the court from receiving~~
7.6 	~~evidence on the above factors to determine if the guidelines~~
7.7 	~~should be exceeded or modified in a particular case.~~
7.8 	(b)(1) Unless otherwise agreed to by the parents and
7.9 	approved by the court, the court must order that basic support
7.10 	be divided between the parents based on their proportionate
7.11 	share of the parents' combined monthly income, as determined
7.12 	under this section.
7.13 	(2) For parents with a combined monthly income less than or
7.14 	equal to 100 percent of the federal poverty guidelines amount
7.15 	for two people, the commissioner of human services must
7.16 	determine the percentages in this paragraph by taking two times
7.17 	the minimum basic support amount under paragraph (c), divided by
7.18 	100 percent of the federal poverty guidelines amount for two
7.19 	people.  For all other parents, basic support must be computed
7.20 	using the following schedule, prepared based on 2001 United
7.21 	States Department of Agriculture expenditure data:
7.22 	Parents' Number of Children
7.23 	Combined
7.24 	Monthly
7.25 	Income One Two Three Four Five Six 
7.26 	
7.27 	Below $1,000 10.0% 16.1% 18.6% 21.6% 25.1% 29.1%
7.28 	$1,000 - $1,499 10.0% 16.1% 18.6% 21.6% 25.1% 29.1%
7.29 	$1,500 - $1,999 19.4% 31.3% 36.2% 42.0% 48.7% 56.5%
7.30 	$2,000 - $2,499 28.7% 46.3% 53.5% 62.1% 72.0% 83.5%
7.31 	$2,500 - $2,999 25.0% 40.3% 46.5% 53.9% 62.6% 72.6%
7.32 	$3,000 - $3,499 22.5% 36.3% 41.9% 48.6% 56.4% 65.4%
7.33 	$3,500 - $3,999 20.7% 33.4% 38.5% 44.7% 51.8% 60.1%
7.34 	$4,000 - $4,499 19.4% 31.2% 36.1% 41.9% 48.6% 56.3%
7.35 	$4,500 - $4,999 18.3% 29.6% 34.1% 39.6% 45.9% 53.2%
7.36 	$5,000 - $5,499 17.5% 28.2% 32.6% 37.8% 43.9% 50.9%
7.37 	$5,500 - $5,999 16.8% 27.1% 31.3% 36.3% 42.1% 48.9%
8.1 	$6,000 - $6,499 16.2% 26.2% 30.2% 35.0% 40.6% 47.1%
8.2 	$6,500 - $6,999 15.8% 25.4% 29.3% 34.0% 39.4% 45.7%
8.3 	$7,000 - $7,499 15.4% 24.8% 28.6% 33.2% 38.5% 44.6%
8.4 	$7,500 - $7,999 15.0% 24.2% 27.9% 32.4% 37.5% 43.5%
8.5 	$8,000 - $8,499 14.7% 23.7% 27.3% 31.7% 36.7% 42.6%
8.6 	$8,500 - $8,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.7 	$9,000 - $9,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.8 	$9,500 - $9,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.9 	$10,000 - $10,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.10 	$10,500 - $10,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.11 	$11,000 - $11,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.12 	$11,500 - $11,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.13 	$12,000 - $12,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.14 	$12,500 - $12,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.15 	$13,000 - $13,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.16 	$13,500 - $13,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.17 	$14,000 - $14,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.18 	$14,500 - $14,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8% 
8.19 	$15,000 or
8.20 	the amount 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
8.21 	in effect
8.22 	under subd. 4 
8.23 	(c) The commissioner of human services must compute and
8.24 	publish a schedule of basic support amounts calculated using the
8.25 	percentages in paragraph (b).  The schedule must show basic
8.26 	support amounts for combined monthly income increments of not
8.27 	more than $100.  The commissioner must determine the percentages
8.28 	for each income increment by interpolating between the
8.29 	percentages in paragraph (b).  The commissioner may disregard a
8.30 	fractional part of a dollar unless it amounts to 50 cents or
8.31 	more, in which case the commissioner may increase the amount by
8.32 	$1.
8.33 	~~(i)~~ (d) The guidelines in this subdivision are a rebuttable
8.34 	presumption and ~~shall~~ must be used in all cases when
8.35 	establishing or modifying child support. ~~If the court does not~~
8.36 	~~deviate from the guidelines, the court shall make written~~
8.37 	~~findings concerning the amount of the obligor's income used as~~
9.1 	~~the basis for the guidelines calculation and any other~~
9.2 	~~significant evidentiary factors affecting the determination of~~
9.3 	~~child support.  If the court deviates from the guidelines, the~~
9.4 	~~court shall make written findings giving the amount of support~~
9.5 	~~calculated under the guidelines, the reasons for the deviation,~~
9.6 	~~and shall specifically address the criteria in paragraph (c) and~~
9.7 	~~how the deviation serves the best interest of the child.  The~~
9.8 	~~court may deviate from the guidelines if both parties agree and~~
9.9 	~~the court makes written findings that it is in the best~~
9.10 	~~interests of the child, except that in cases where child support~~
9.11 	~~payments are assigned to the public agency under section~~
9.12 	~~256.741, the court may deviate downward only as provided in~~
9.13 	~~paragraph (j).  Nothing in this paragraph prohibits the court~~
9.14 	~~from deviating in other cases.  The provisions of this paragraph~~
9.15 	~~apply whether or not the parties are each represented by~~
9.16 	~~independent counsel and have entered into a written agreement.~~
9.17 	~~The court shall review stipulations presented to it for~~
9.18 	~~conformity to the guidelines and the court is not required to~~
9.19 	~~conduct a hearing, but the parties shall provide the~~
9.20 	~~documentation of earnings required under subdivision 5b.~~
9.21 	~~(j) If the child support payments are assigned to the~~
9.22 	~~public agency under section 256.741, the court may not deviate~~
9.23 	~~downward from the child support guidelines unless the court~~
9.24 	~~specifically finds that the failure to deviate downward would~~
9.25 	~~impose an extreme hardship on the obligor.~~
9.26 	~~(k) The dollar amount of the income limit for application~~
9.27 	~~of the guidelines must be adjusted on July 1 of every~~
9.28 	~~even-numbered year to reflect cost-of-living changes.  The~~
9.29 	~~Supreme Court shall select the index for the adjustment from the~~
9.30 	~~indices listed in section 518.641.  The state court~~
9.31 	~~administrator shall make the changes in the dollar amount~~
9.32 	~~required by this paragraph available to courts and the public on~~
9.33 	~~or before April 30 of the year in which the amount is to change.~~
9.34 	~~(l)~~ (e) In establishing or modifying child support, if a
9.35 	child receives a child's insurance benefit under United States
9.36 	Code, title 42, section 402, because the obligor is entitled to
10.1 	old age or disability insurance benefits, the amount of support
10.2 	ordered ~~shall~~ must be offset by the amount of the child's
10.3 	benefit.  The court shall make findings regarding the obligor's
10.4 	income from all sources, the child support amount calculated
10.5 	under this ~~section~~ chapter, the amount of the child's benefit,
10.6 	and the obligor's child support obligation. ~~Any~~ A benefit
10.7 	received by the child in a given month in excess of the child
10.8 	support obligation ~~shall~~ must not be treated as an arrearage
10.9 	payment or a future payment.

10.10 	Sec. 2. Minnesota Statutes 2004, section 518.551, is
10.11 	amended by adding a subdivision to read:
10.12 		Subd. 5g.Income. (a) For purposes of calculating child
10.13 	support under this chapter, "income" means gross income.
10.14 	(b) For purposes of this chapter, income includes any form
10.15 	of periodic payment to an individual including, but not limited
10.16 	to:
10.17 	(1) wages;
10.18 	(2) salaries;
10.19 	(3) payments to an independent contractor;
10.20 	(4) workers' compensation;
10.21 	(5) unemployment insurance benefits;
10.22 	(6) annuity;
10.23 	(7) military and naval retirement;
10.24 	(8) pension and disability payments; and 
10.25 	(9) in-kind payments received by the obligor in the course
10.26 	of employment, self-employment, or operation of a business if
10.27 	the payments reduce the obligor's living expenses.
10.28 	(c) If the court finds that a party's commissions or
10.29 	bonuses are reliable and predictable, the court may include them
10.30 	in income calculations.
10.31 	(d) Income from self-employment is equal to gross receipts
10.32 	minus ordinary and necessary expenses.  Ordinary and necessary
10.33 	expenses include what would otherwise be the employer's share of
10.34 	the contributions under the Federal Insurance Contributions Act
10.35 	(FICA), United States Code, title 26, subtitle C, chapter 21,
10.36 	subchapter A, sections 3101 to 3126.  Ordinary and necessary
11.1 	expenses do not necessarily include amounts allowed by the
11.2 	Internal Revenue Service for accelerated depreciation expenses
11.3 	or investment tax credits or any other business expenses
11.4 	determined by the court to be inappropriate for determining
11.5 	income for purposes of child support.  The person seeking to
11.6 	deduct an expense, including depreciation, has the burden of
11.7 	proving, if challenged, that the expense is ordinary and
11.8 	necessary.  Income calculated under this section may be
11.9 	different from taxable income.
11.10 	(e) Benefits received under chapter 256J and Title IV-A of
11.11 	the Social Security Act are not income under this section.
11.12 	(f)(1) Income does not include compensation received by a
11.13 	party for employment in excess of a 40-hour work week if:
11.14 	(i) the excess employment is not within the normal range of
11.15 	hours worked, given the party's employment history;
11.16 	(ii) the excess employment is voluntary and not a condition
11.17 	of employment;
11.18 	(iii) the excess employment is in the nature of additional,
11.19 	part-time, or overtime employment compensable by the hour or
11.20 	fraction of an hour; and 
11.21 	(iv) the party's compensation structure has not been
11.22 	changed for the purpose of affecting a child support obligation.
11.23 	(2) The court may presume that a party with seasonal or
11.24 	intermittent income who works periods in excess of a 40-hour
11.25 	work week, but who works a substantially normal number of hours
11.26 	over the course of a year, is working within the normal range of
11.27 	hours worked.
11.28 	(g)(1) Income must not include the income of a party's
11.29 	spouse or other household member.  The court must not consider
11.30 	the income or resources provided by a spouse or other household
11.31 	member when determining the earnings, income, and resources of a
11.32 	parent.
11.33 	(2) Notwithstanding paragraph (a), the court may issue an
11.34 	order permitting discovery of a spouse's or other household
11.35 	member's income information if there is probable cause to
11.36 	believe the spouse or other household member is being used to
12.1 	shelter income from a party.  If the court finds that income was
12.2 	improperly or unfairly sheltered, it may impute income to the
12.3 	party or otherwise adjust the support amount in a just and
12.4 	proper manner.  However, the court may not under any
12.5 	circumstances consider income or resources properly attributable
12.6 	to a spouse or other household member when setting support.
12.7 	(h) The amount of a support or maintenance order, not
12.8 	including orders for support or maintenance debts or arrears,
12.9 	must be deducted from income.
12.10 	(i)(1) For purposes of this paragraph, "legally dependent
12.11 	child" means a child:
12.12 	(i) whose primary residence is with a parent eligible for a
12.13 	deduction from income under this subdivision;
12.14 	(ii) whom the parent has the legal duty to support;
12.15 	(iii) who is not a subject of the current child support
12.16 	action;
12.17 	(iv) for whom the parent is not ordered to pay child
12.18 	support; and 
12.19 	(v) for whom no other person has court-ordered sole
12.20 	physical custody.
12.21 	(2) The court must deduct an amount from a parent's income
12.22 	for a legally dependent child.  The amount deducted from income
12.23 	for each legally dependent child must be computed using the
12.24 	following method:
12.25 	(i) determine 120 percent of the federal poverty guidelines
12.26 	for a family size equal to two parents plus each legally
12.27 	dependent child;
12.28 	(ii) divide the amount determined under item (i) by the
12.29 	family size determined under item (i);
12.30 	(iii) multiply the amount calculated under item (ii) by the
12.31 	number of legally dependent children; and 
12.32 	(iv) divide the amount calculated under item (iii) by two
12.33 	to determine the deduction amount for one parent.  The amount
12.34 	determined for one parent must be divided by 12 to determine the
12.35 	amount of the deduction from a parent's monthly income.
12.36 	(3) The commissioner of human services must publish a table
13.1 	listing the amount of the deduction for each legally dependent
13.2 	child by family size and must update the table for changes to
13.3 	the federal poverty guidelines by July 1 of each year.
13.4 	(j) After determining each parent's basic support under
13.5 	paragraph (i), the court must reduce the basic support of each
13.6 	parent by 20 percent.
13.7 	(k)(1) If the parents' parenting time approximates joint
13.8 	physical custody, an obligor's basic support obligation is 50
13.9 	percent of the difference between the parents' basic support
13.10 	obligation, as determined under paragraph (i).
13.11 	(2) A parenting time division approximates joint physical
13.12 	custody if each parent provides, or is responsible for
13.13 	providing, care at least 45 percent of the days in a year.
13.14 	(3) For purposes of this paragraph, the following
13.15 	principles apply:
13.16 	(i) the label given to a custody arrangement is not
13.17 	determinative;
13.18 	(ii) the actual division of parenting time controls; and 
13.19 	(iii) an overnight stay presumptively constitutes a day of
13.20 	caregiving.
13.21 	(4) The court must make specific findings in support of an
13.22 	adjustment to an obligor's basic support obligation under this
13.23 	subdivision.
13.24 	(l)(1) The basic support obligation for parents with a
13.25 	combined monthly income in excess of the income limit currently
13.26 	in effect under paragraph (i) must be the same dollar amount as
13.27 	provided for parents with a combined monthly income equal to the
13.28 	income limit in effect under paragraph (i).
13.29 	(2) A court may order a basic support obligation in a child
13.30 	support order in an amount that exceeds the income limit in
13.31 	paragraph (i) if it finds that a child has a disability or other
13.32 	substantial, demonstrated need for the additional support and
13.33 	that the additional support will directly benefit the child.
13.34 	(3) The dollar amount for the cap in paragraph (i) must be
13.35 	adjusted on July 1 of every even-numbered year to reflect
13.36 	cost-of-living changes.  The Supreme Court must select the index
14.1 	for the adjustment from the indices listed in section 518.641.
14.2 	The state court administrator must make the changes in the
14.3 	dollar amounts required by this clause available to courts and
14.4 	the public on or before April 30 of the year in which the amount
14.5 	is to change.
14.6 	(m) If a child support proceeding involves more than six
14.7 	children, the court may derive a support order without
14.8 	specifically following the guidelines.  However, the court must
14.9 	consider the basic principles encompassed by the guidelines and
14.10 	must consider both parents' needs, resources, and circumstances.
14.11 	(n) By January 15 of each year, the commissioner of human
14.12 	services must submit a report to the legislature on the basic
14.13 	support schedule.  The report must include the following:
14.14 	(1) information on any changes to the United States
14.15 	Department of Agriculture expenditure data used in constructing
14.16 	the basic support schedule under subdivision 1;
14.17 	(2) information on any new sources of economic data that
14.18 	could be used to construct a basic support schedule; and 
14.19 	(3) a summary of any problems or concerns with implementing
14.20 	or applying the basic support schedule, and recommendations on
14.21 	how to resolve those problems or concerns.