1.1                          A bill for an act 
  1.2             relating to family law; changing certain child support 
  1.3             enforcement provisions; amending Minnesota Statutes 
  1.4             1998, sections 256.979, by adding a subdivision; 
  1.5             518.64, subdivision 5; 518.68, subdivision 2; 552.01, 
  1.6             subdivision 3, and by adding a subdivision; 552.03; 
  1.7             and 552.04, subdivisions 4, 6, 11, and 16; Minnesota 
  1.8             Statutes 1999 Supplement, section 13B.06, subdivision 
  1.9             1; proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 552; repealing Minnesota Statutes 1998, 
  1.11            section 552.05, subdivisions 1, 2, 3, 6, 7, 8, and 9; 
  1.12            Minnesota Statutes 1999 Supplement, section 552.05, 
  1.13            subdivisions 4, 5, and 10; Minnesota Rules, parts 
  1.14            9500.1800; 9500.1805; 9500.1810; 9500.1811; 9500.1812; 
  1.15            9500.1815; 9500.1817; 9500.1820; and 9500.1821. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.18  13B.06, subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [DEFINITIONS.] The definitions in this 
  1.20  subdivision apply to this section. 
  1.21     (a) "Account" means a demand deposit account, checking or 
  1.22  negotiable withdraw order account, savings account, time deposit 
  1.23  account, or money market mutual fund. 
  1.24     (b) "Account information" means the type of account, the 
  1.25  account number, whether the account is singly or jointly owned, 
  1.26  and in the case of jointly owned accounts the name and address 
  1.27  of the nonobligor account owner if available. 
  1.28     (c) "Financial institution" means any of the following that 
  1.29  do business within the state: 
  1.30     (1) federal or state commercial banks and federal or state 
  2.1   savings banks, including savings and loan associations and 
  2.2   cooperative banks; 
  2.3      (2) federal and state chartered credit unions; 
  2.4      (3) benefit associations; 
  2.5      (4) life insurance companies; 
  2.6      (5) safe deposit companies; and 
  2.7      (6) money market mutual funds. 
  2.8      (d) "Obligor" means an individual who is in arrears in 
  2.9   court-ordered child support or maintenance payments, or both, in 
  2.10  an amount equal to or greater than three five times the 
  2.11  obligor's total monthly support and maintenance payments, and is 
  2.12  not in compliance with a written payment agreement regarding 
  2.13  both current support and arrearages approved by the court, a 
  2.14  child support magistrate, or the public authority.  
  2.15     (e) "Public authority" means the public authority 
  2.16  responsible for child support enforcement. 
  2.17     Sec. 2.  Minnesota Statutes 1998, section 256.979, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 11.  [FEDERAL CHILD SUPPORT INCENTIVES.] (a) The 
  2.20  commissioner of human services shall distribute to the counties 
  2.21  the earned federal child support incentive payments using the 
  2.22  methodology specified in Title IV-D of the Social Security Act 
  2.23  and applicable federal regulations for earning federal 
  2.24  incentives by the states except for the paternity portion of the 
  2.25  incentive.  The commissioner shall distribute the federal 
  2.26  paternity incentive earned using the IV-D paternity 
  2.27  establishment percentage.  The commissioner shall follow the 
  2.28  federal transition plans in distributing the incentives to the 
  2.29  counties.  The commissioner shall distribute to the county child 
  2.30  support agency estimated federal incentive payments within 60 
  2.31  days after the end of each calendar quarter.  The commissioner 
  2.32  shall issue actual federal incentive payments to the county 
  2.33  agency within 60 days of receiving the final federal incentive 
  2.34  grant award from the federal agency. 
  2.35     (b) The county child support agency shall reinvest 
  2.36  incentive funds disbursed under this section in the county child 
  3.1   support enforcement program.  These funds may not be used by a 
  3.2   county to reduce funding of the child support enforcement 
  3.3   program by the amount of the incentive earned below the base 
  3.4   amount allowed under the applicable federal regulations.  The 
  3.5   county agency shall maintain a record of incentives earned and 
  3.6   expended according to a procedure approved by the commissioner.  
  3.7   The county agency shall repay any incentive erroneously issued. 
  3.8      Sec. 3.  Minnesota Statutes 1998, section 518.64, 
  3.9   subdivision 5, is amended to read: 
  3.10     Subd. 5.  [FORM.] The department of human services state 
  3.11  court administrator's office shall prepare and make available to 
  3.12  courts court administrators, obligors and persons to whom child 
  3.13  support is owed a form to be submitted by the obligor or the 
  3.14  person to whom child support is owed in support of a motion for 
  3.15  a modification of an order for support or maintenance or for 
  3.16  contempt of court.  
  3.17     Sec. 4.  Minnesota Statutes 1998, section 518.68, 
  3.18  subdivision 2, is amended to read: 
  3.19     Subd. 2.  [CONTENTS.] The required notices must be 
  3.20  substantially as follows: 
  3.21                          IMPORTANT NOTICE 
  3.22  1.  PAYMENTS TO PUBLIC AGENCY 
  3.23     According to Minnesota Statutes, section 518.551, 
  3.24     subdivision 1, payments ordered for maintenance and support 
  3.25     must be paid to the public agency responsible for child 
  3.26     support enforcement as long as the person entitled to 
  3.27     receive the payments is receiving or has applied for public 
  3.28     assistance or has applied for support and maintenance 
  3.29     collection services.  MAIL PAYMENTS TO: 
  3.30  2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
  3.31  FELONY 
  3.32     A person may be charged with a felony who conceals a minor 
  3.33     child or takes, obtains, retains, or fails to return a 
  3.34     minor child from or to the child's parent (or person with 
  3.35     custodial or visitation rights), according to Minnesota 
  3.36     Statutes, section 609.26.  A copy of that section is 
  4.1      available from any district court clerk. 
  4.2   3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
  4.3      (a) Payment of support or spousal maintenance is to be as 
  4.4      ordered, and the giving of gifts or making purchases of 
  4.5      food, clothing, and the like will not fulfill the 
  4.6      obligation. 
  4.7      (b) Payment of support must be made as it becomes due, and 
  4.8      failure to secure or denial of rights of visitation is NOT 
  4.9      an excuse for nonpayment, but the aggrieved party must seek 
  4.10     relief through a proper motion filed with the court. 
  4.11     (c) Nonpayment of support is not grounds to deny 
  4.12     visitation.  The party entitled to receive support may 
  4.13     apply for support and collection services, file a contempt 
  4.14     motion, or obtain a judgment as provided in Minnesota 
  4.15     Statutes, section 548.091.  
  4.16     (d) The payment of support or spousal maintenance takes 
  4.17     priority over payment of debts and other obligations. 
  4.18     (e) A party who accepts additional obligations of support 
  4.19     does so with the full knowledge of the party's prior 
  4.20     obligation under this proceeding. 
  4.21     (f) Child support or maintenance is based on annual income, 
  4.22     and it is the responsibility of a person with seasonal 
  4.23     employment to budget income so that payments are made 
  4.24     throughout the year as ordered. 
  4.25     (g) If there the obligor is a layoff laid off from 
  4.26     employment or receives a pay reduction, support may be 
  4.27     reduced as of the time of the layoff or pay reduction, but 
  4.28     only if a motion to reduce the support is served and filed 
  4.29     with the court at that time, but.  Any such reduction must 
  4.30     be will take effect only if ordered by the court and may 
  4.31     only relate back to the time that the motion is filed.  If 
  4.32     a motion is not filed, the support obligation will continue 
  4.33     at the current level.  The court is not permitted to reduce 
  4.34     support retroactively, except as provided in Minnesota 
  4.35     Statutes, section 518.64, subdivision 2, paragraph (c).  
  4.36     (h) Reasonable visitation guidelines are contained in 
  5.1      Appendix B, which is available from the court administrator.
  5.2      (i) The nonpayment of support may be enforced through the 
  5.3      denial of student grants; interception of state and federal 
  5.4      tax returns; suspension of driver's, recreational, and 
  5.5      occupational licenses; referral to the department of 
  5.6      revenue or private collection agencies; seizure of assets, 
  5.7      including bank accounts and other assets held by financial 
  5.8      institutions; reporting to credit bureaus; interest 
  5.9      charging, income withholding, and contempt proceedings; and 
  5.10     other enforcement methods allowed by law.  
  5.11  4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
  5.12  SUBDIVISION 3 
  5.13     Unless otherwise provided by the Court: 
  5.14     (a) Each party has the right of access to, and to receive 
  5.15     copies of, school, medical, dental, religious training, and 
  5.16     other important records and information about the minor 
  5.17     children.  Each party has the right of access to 
  5.18     information regarding health or dental insurance available 
  5.19     to the minor children.  Presentation of a copy of this 
  5.20     order to the custodian of a record or other information 
  5.21     about the minor children constitutes sufficient 
  5.22     authorization for the release of the record or information 
  5.23     to the requesting party. 
  5.24     (b) Each party shall keep the other informed as to the name 
  5.25     and address of the school of attendance of the minor 
  5.26     children.  Each party has the right to be informed by 
  5.27     school officials about the children's welfare, educational 
  5.28     progress and status, and to attend school and parent 
  5.29     teacher conferences.  The school is not required to hold a 
  5.30     separate conference for each party. 
  5.31     (c) In case of an accident or serious illness of a minor 
  5.32     child, each party shall notify the other party of the 
  5.33     accident or illness, and the name of the health care 
  5.34     provider and the place of treatment. 
  5.35     (d) Each party has the right of reasonable access and 
  5.36     telephone contact with the minor children. 
  6.1   5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
  6.2      Child support and/or spousal maintenance may be withheld 
  6.3      from income, with or without notice to the person obligated 
  6.4      to pay, when the conditions of Minnesota Statutes, section 
  6.5      518.6111 have been met.  A copy of those sections is 
  6.6      available from any district court clerk. 
  6.7   6.  CHANGE OF ADDRESS OR RESIDENCE 
  6.8      Unless otherwise ordered, each party shall notify the other 
  6.9      party, the court, and the public authority responsible for 
  6.10     collection, if applicable, of the following information 
  6.11     within ten days of any change:  the residential and mailing 
  6.12     address, telephone number, driver's license number, social 
  6.13     security number, and name, address, and telephone number of 
  6.14     the employer. 
  6.15  7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
  6.16     Child support and/or spousal maintenance may be adjusted 
  6.17     every two years based upon a change in the cost of living 
  6.18     (using Department of Labor Consumer Price Index .........., 
  6.19     unless otherwise specified in this order) when the 
  6.20     conditions of Minnesota Statutes, section 518.641, are met. 
  6.21     Cost of living increases are compounded.  A copy of 
  6.22     Minnesota Statutes, section 518.641, and forms necessary to 
  6.23     request or contest a cost of living increase are available 
  6.24     from any district court clerk. 
  6.25  8.  JUDGMENTS FOR UNPAID SUPPORT 
  6.26     If a person fails to make a child support payment, the 
  6.27     payment owed becomes a judgment against the person 
  6.28     responsible to make the payment by operation of law on or 
  6.29     after the date the payment is due, and the person entitled 
  6.30     to receive the payment or the public agency may obtain 
  6.31     entry and docketing of the judgment WITHOUT NOTICE to the 
  6.32     person responsible to make the payment under Minnesota 
  6.33     Statutes, section 548.091.  Interest begins to accrue on a 
  6.34     payment or installment of child support whenever the unpaid 
  6.35     amount due is greater than the current support due, 
  6.36     according to Minnesota Statutes, section 548.091, 
  7.1      subdivision 1a.  
  7.2   9.  JUDGMENTS FOR UNPAID MAINTENANCE 
  7.3      A judgment for unpaid spousal maintenance may be entered 
  7.4      when the conditions of Minnesota Statutes, section 548.091, 
  7.5      are met.  A copy of that section is available from any 
  7.6      district court clerk. 
  7.7   10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
  7.8   SUPPORT 
  7.9      A judgment for attorney fees and other collection costs 
  7.10     incurred in enforcing a child support order will be entered 
  7.11     against the person responsible to pay support when the 
  7.12     conditions of section 518.14, subdivision 2, are met.  A 
  7.13     copy of section 518.14 and forms necessary to request or 
  7.14     contest these attorney fees and collection costs are 
  7.15     available from any district court clerk. 
  7.16  11.  VISITATION EXPEDITOR PROCESS 
  7.17     On request of either party or on its own motion, the court 
  7.18     may appoint a visitation expeditor to resolve visitation 
  7.19     disputes under Minnesota Statutes, section 518.1751.  A 
  7.20     copy of that section and a description of the expeditor 
  7.21     process is available from any district court clerk. 
  7.22  12.  VISITATION REMEDIES AND PENALTIES 
  7.23     Remedies and penalties for the wrongful denial of 
  7.24     visitation rights are available under Minnesota Statutes, 
  7.25     section 518.175, subdivision 6.  These include compensatory 
  7.26     visitation; civil penalties; bond requirements; contempt; 
  7.27     and reversal of custody.  A copy of that subdivision and 
  7.28     forms for requesting relief are available from any district 
  7.29     court clerk. 
  7.30     Sec. 5.  Minnesota Statutes 1998, section 552.01, 
  7.31  subdivision 3, is amended to read: 
  7.32     Subd. 3.  [JUDGMENT DEBTOR.] "Judgment debtor" means a 
  7.33  party an obligor against whom the public authority has a 
  7.34  judgment for the recovery of money owed pursuant to a support 
  7.35  order as defined in section 518.54.  
  7.36     Sec. 6.  Minnesota Statutes 1998, section 552.01, is 
  8.1   amended by adding a subdivision to read: 
  8.2      Subd. 7.  [JUDGMENT.] "Judgment" means a child support 
  8.3   judgment by operation of law under section 548.091, subdivision 
  8.4   1a, or under a proceeding under section 548.091, subdivision 2a. 
  8.5      Sec. 7.  Minnesota Statutes 1998, section 552.03, is 
  8.6   amended to read: 
  8.7      552.03 [SCOPE OF GENERAL AND SPECIFIC PROVISIONS.] 
  8.8      General provisions relating to the public authority's 
  8.9   summary execution as authorized in this chapter are set forth in 
  8.10  section 552.04.  Specific provisions relating to summary 
  8.11  execution on funds at a financial institution are set forth in 
  8.12  section 552.05.  When the public authority levies against funds 
  8.13  at a financial institution, the specific provisions of section 
  8.14  552.05 must be complied with in addition to the general 
  8.15  provisions of section 552.04 that are not inconsistent with the 
  8.16  specific provisions of section 552.05.  Provisions contained in 
  8.17  the statutory forms are incorporated in this chapter and have 
  8.18  the same force of law as any other provisions in this chapter.  
  8.19     Sec. 8.  Minnesota Statutes 1998, section 552.04, 
  8.20  subdivision 4, is amended to read: 
  8.21     Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
  8.22  DISCLOSURE FORMS.] When levying upon money owed to the judgment 
  8.23  debtor by a third party, the public authority shall serve a copy 
  8.24  of the notice of support judgment levy upon the third party 
  8.25  either by registered or certified mail, by personal service, or 
  8.26  by electronic transmission.  Along with a copy of the notice of 
  8.27  support judgment levy, the public authority shall serve upon the 
  8.28  third party a notice of support judgment levy and disclosure 
  8.29  form that must be substantially in the form set forth below. 
  8.30        OFFICE OF ADMINISTRATIVE HEARINGS DISTRICT COURT
  8.31                               File No. ...........
  8.32  ........ (Public authority)
  8.33  against                        NOTICE OF SUPPORT JUDGMENT
  8.34  ........ (Judgment Debtor)     LEVY AND DISCLOSURE
  8.35  and                            (OTHER THAN EARNINGS)
  8.36  ........ (Third Party)
  8.37     PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
  8.38  chapters 518 and 522 552, the undersigned, as representative of 
  9.1   the public authority responsible for child support enforcement, 
  9.2   makes demand and levies execution upon all money due and owing 
  9.3   by you to the judgment debtor for the amount of the judgment 
  9.4   specified below.  A copy of the notice of support judgment levy 
  9.5   is enclosed.  The unpaid judgment balance is $...... 
  9.6      In responding to this levy, you are to complete the 
  9.7   attached disclosure form and mail it to the public authority, 
  9.8   together with your check payable to the public authority, for 
  9.9   the nonexempt amount owed by you to the judgment debtor or for 
  9.10  which you are obligated to the judgment debtor, within the time 
  9.11  limits in chapter 552. 
  9.12                       Public Authority
  9.13                        Address
  9.14                        (........)
  9.15                        Phone number
  9.16     
  9.17                             DISCLOSURE
  9.18     On the ... day of ......, ......., the time of service of 
  9.19  the execution levy herein, there was due and owing the judgment 
  9.20  debtor from the third party the following: 
  9.21     (1) Money.  Enter on the line below any amounts due and 
  9.22  owing the judgment debtor, except earnings, from the third party.
  9.23     ......................... 
  9.24     (2) Setoff.  Enter on the line below the amount of any 
  9.25  setoff, defense, lien, or claim which the third party claims 
  9.26  against the amount set forth on line (1).  State the facts by 
  9.27  which the setoff, defense, lien, or claim is claimed.  (Any 
  9.28  indebtedness to you incurred by the judgment debtor within ten 
  9.29  days prior to the receipt of the first execution levy on a debt 
  9.30  may not be claimed as a setoff, defense, lien, or claim against 
  9.31  the amount set forth on line (1).) 
  9.32     ......................... 
  9.33     (3) Exemption.  Financial Institutions shall not complete 
  9.34  this line.  Enter on the line below any amounts or property 
  9.35  claimed by the judgment debtor to be exempt from execution. 
  9.36     ......................... 
  9.37     (4) Adverse Interest.  Enter on the line below any amounts 
 10.1   claimed by other persons by reason of ownership or interest in 
 10.2   the judgment debtor's property. 
 10.3      ......................... 
 10.4      (5) Enter on the line below the total of lines (2), (3), 
 10.5   and (4). 
 10.6      .........................  
 10.7      (6) Enter on the line below the difference obtained (never 
 10.8   less than zero when line (5) is subtracted from the amount on 
 10.9   line (1)).  
 10.10     ......................... 
 10.11     (7) Enter on the line below 100 percent of the amount of 
 10.12  the public authority's claim which remains unpaid.  
 10.13     ......................... 
 10.14     (8) Enter on the line below the lesser of line (6) and line 
 10.15  (7).  You are instructed to remit this amount only if it is $10 
 10.16  or more.  
 10.17     ......................... 
 10.18                            AFFIRMATION
 10.19     I, .......... (person signing Affirmation), am the third 
 10.20  party or I am authorized by the third party to complete this 
 10.21  nonearnings disclosure, and have done so truthfully and to the 
 10.22  best of my knowledge. 
 10.23  Dated:..........                Signature
 10.24                                   ..........
 10.25                                   Title
 10.26                                   ..........
 10.27                                   Telephone Number
 10.28     Sec. 9.  Minnesota Statutes 1998, section 552.04, 
 10.29  subdivision 6, is amended to read: 
 10.30     Subd. 6.  [ORAL DISCLOSURE.] Before or after the service of 
 10.31  a written disclosure by a third party under subdivision 5, upon 
 10.32  a showing by affidavit upon information and belief that an oral 
 10.33  examination of the third party would provide a complete 
 10.34  disclosure of relevant facts, any party to the execution 
 10.35  proceedings may obtain an ex parte order requiring the third 
 10.36  party, or a representative of the third party designated by name 
 10.37  or by title, to appear for oral examination before the court or 
 10.38  a referee appointed by the court.  Notice of the examination 
 11.1   must be given to all parties.  This subdivision does not apply 
 11.2   to financial institutions complying with section 552.06. 
 11.3      Sec. 10.  Minnesota Statutes 1998, section 552.04, 
 11.4   subdivision 11, is amended to read: 
 11.5      Subd. 11.  [BAD FAITH CLAIM.] If, in a proceeding brought 
 11.6   under section 552.05, subdivision 9, or a similar proceeding 
 11.7   under this chapter to determine a claim of exemption, the claim 
 11.8   of exemption is not upheld, and the court finds that it was 
 11.9   asserted in bad faith, the public authority shall be awarded 
 11.10  actual damages, costs, reasonable attorney's fees resulting from 
 11.11  the additional proceedings, and an amount not to exceed $100.  
 11.12  If the claim of exemption is upheld, and the court finds that 
 11.13  the public authority disregarded the claim of exemption in bad 
 11.14  faith, the judgment debtor shall be awarded actual damages, 
 11.15  costs, reasonable attorney's fees resulting from the additional 
 11.16  proceedings, and an amount not to exceed $100.  If the exemption 
 11.17  claim of the judgment debtor is found to be in bad faith, the 
 11.18  underlying judgment shall be modified to reflect assessment of 
 11.19  damages, costs, and attorney's fees.  However, if the party in 
 11.20  whose favor a penalty assessment is made is not actually 
 11.21  indebted to that party's attorney for fees, the attorney's fee 
 11.22  award shall be made directly to the attorney, and if not paid, 
 11.23  an appropriate judgment in favor of the attorney shall be 
 11.24  entered.  Any action by a public authority made in bad faith and 
 11.25  in violation of this chapter renders the execution levy void and 
 11.26  the public authority liable to the judgment debtor named in the 
 11.27  execution levy in the amount of $100, actual damages, and 
 11.28  reasonable attorney's fees and costs.  
 11.29     Sec. 11.  Minnesota Statutes 1998, section 552.04, 
 11.30  subdivision 16, is amended to read: 
 11.31     Subd. 16.  [PRIORITY OF LEVY.] Notwithstanding section 
 11.32  52.12, a levy by the public authority made under this section on 
 11.33  an obligor's a judgment debtor's funds on deposit in a financial 
 11.34  institution located in this state has priority over any 
 11.35  unexercised right of setoff of the financial institution to 
 11.36  apply the levied funds toward the balance of an outstanding loan 
 12.1   or loans owed by the obligor judgment debtor to the financial 
 12.2   institution.  A claim by the financial institution that it 
 12.3   exercised its right to setoff prior to the levy by the public 
 12.4   authority must be substantiated by evidence of the date of the 
 12.5   setoff and must be verified by the sworn statement of a 
 12.6   responsible corporate officer of the financial institution.  For 
 12.7   purposes of determining the priority of a levy made under this 
 12.8   section, the levy must be treated as if it were an execution 
 12.9   made under chapter 550. 
 12.10     Sec. 12.  [552.06] [SUMMARY EXECUTION OF SUPPORT JUDGMENT 
 12.11  UPON FUNDS AT A FINANCIAL INSTITUTION.] 
 12.12     Subdivision 1.  [COMMENCEMENT OF SUMMARY EXECUTION.] (a) 
 12.13  This section applies to a judgment debtor who is in arrears in 
 12.14  court-ordered support payments in an amount equal to or greater 
 12.15  than five times the judgment debtor's total support order.  
 12.16     (b) Section 518.5513 applies to this section, except if it 
 12.17  conflicts with the specific provisions of this section, this 
 12.18  section applies.  
 12.19     (c) Time frames set out in the rules of civil procedure 
 12.20  that are inconsistent with this section do not apply to this 
 12.21  section.  
 12.22     (d) The public authority may not proceed with a summary 
 12.23  execution of support judgment proceeding until after the 
 12.24  judgment has been submitted for federal or state tax intercept. 
 12.25     (e) Upon receipt of information under section 13B.06 that a 
 12.26  judgment debtor holds an account at the financial institution, 
 12.27  the public authority may send the financial institution a notice 
 12.28  of support judgment levy.  
 12.29     (f) The support judgment levy and accompanying 
 12.30  documentation must contain the name of the judgment debtor, the 
 12.31  judgment debtor's social security number, any necessary 
 12.32  verifying information, the amount of the judgment, and the 
 12.33  procedures necessary for the financial institution to process 
 12.34  the notice of support judgment levy and complete the disclosure 
 12.35  form.  
 12.36     (g) Notice of support judgment levy under this section 
 13.1   commences without notice to the judgment debtor and without the 
 13.2   need for prior judicial notice or hearing.  
 13.3      (h) Within two business days after the public authority 
 13.4   sends the notice of support judgment levy to the financial 
 13.5   institution, the public authority shall send the judgment debtor 
 13.6   a copy of the notice of support judgment levy by first class 
 13.7   mail at the judgment debtor's last known address.  In addition 
 13.8   to the copy of the notice of support judgment levy, information 
 13.9   must be provided that describes the exemptions a judgment debtor 
 13.10  may claim and the form and procedure for claiming an exemption, 
 13.11  the informal resolution process, the responsibilities of the 
 13.12  judgment debtor, and the procedure and time frames to contest 
 13.13  the levy.  
 13.14     Subd. 2.  [RESPONSIBILITIES OF THE FINANCIAL 
 13.15  INSTITUTION.] (a) Upon receipt by the financial institution of a 
 13.16  notice of support judgment levy, the financial institution shall 
 13.17  seize all funds up to and including the amount contained in the 
 13.18  notice from the judgment debtor's account. 
 13.19     (b) Sixty days after receiving the levy, the financial 
 13.20  institution shall complete the notice of support judgment levy 
 13.21  and disclosure form and forward it together with the amount 
 13.22  indicated on line 8 of the disclosure form, not to exceed the 
 13.23  total amount seized, to the public authority at the address 
 13.24  indicated in the notice of support judgment levy. 
 13.25     (c) If the judgment debtor and the public authority 
 13.26  informally resolve a dispute under subdivision 3 and the public 
 13.27  authority sends a notice of release to the financial 
 13.28  institution, the financial institution shall release seized 
 13.29  funds according to the notice of release. 
 13.30     (d) If the financial institution receives notice of a 
 13.31  contest of the summary execution of support judgment, the 
 13.32  financial institution shall continue to hold the funds during 
 13.33  the period of contest inclusive of any applicable appeal period 
 13.34  and, upon receipt of notice to release from the public 
 13.35  authority, shall send the lesser of the amount indicated in the 
 13.36  notice of release, or the amount indicated on line 8 of the 
 14.1   notice of support judgment levy and disclosure form not to 
 14.2   exceed the total amount seized. 
 14.3      (e) If a judgment debtor has multiple accounts within the 
 14.4   financial institution, the financial institution shall seize 
 14.5   funds in as many accounts of the judgment debtor as is necessary 
 14.6   to equal the amount contained in the notice of support judgment 
 14.7   levy.  
 14.8      (f) A financial institution that receives more than one 
 14.9   notice of support judgment levy under this section shall 
 14.10  withhold sufficient funds to satisfy all notices of support 
 14.11  judgment levy, if possible. 
 14.12     (g) The Consumer Credit Protection Act, United States Code, 
 14.13  title 15, section 1673(b), does not apply to funds withheld by a 
 14.14  financial institution under this section.  
 14.15     (h) The public authority shall pay a fee of $15 per levy to 
 14.16  the financial institution.  Financial institutions and the 
 14.17  commissioner of human services shall establish procedures to 
 14.18  automate the payment of this fee to the maximum extent 
 14.19  possible.  The fee may be recovered by the public authority from 
 14.20  the judgment debtor as an allowable cost.  
 14.21     (i) No financial institution is liable for damages for 
 14.22  complying with this section.  The financial institution may rely 
 14.23  on the date of mailing or delivery of a notice to it in 
 14.24  computing any time periods in this section. 
 14.25     Subd. 3.  [INFORMAL RESOLUTIONS OF DISPUTES.] (a) After the 
 14.26  judgment debtor receives a notice of support judgment levy, the 
 14.27  judgment debtor may contact the public authority with 
 14.28  information regarding a mistake of fact or claim of exemption.  
 14.29  In the event the matter is resolved, the public authority shall 
 14.30  contact the financial institution and forward to the financial 
 14.31  institution a notice of release regarding the appropriate 
 14.32  transfer of funds and send a copy to the judgment debtor.  
 14.33     (b) Contact by the judgment debtor under this subdivision 
 14.34  does not constitute a contest to the levy under subdivision 5.  
 14.35  The time frame to contest the support judgment levy under 
 14.36  subdivision 5 is not stayed while the judgment debtor contacts 
 15.1   the public authority.  The judgment debtor may contest the levy 
 15.2   under subdivision 5.  
 15.3      Subd. 4.  [RESPONSIBILITIES OF THE PUBLIC AUTHORITY.] (a) 
 15.4   If a judgment debtor serves the public authority with a notice 
 15.5   of motion and motion under subdivision 5, the public authority 
 15.6   shall immediately notify:  
 15.7      (1) the financial institution, directing the financial 
 15.8   institution to continue holding the funds pending resolution of 
 15.9   the matter; and 
 15.10     (2) the obligee, by mailing by first class mail a copy of 
 15.11  the notice of motion and motion.  
 15.12     (b) Upon final resolution of the matter, including the 
 15.13  applicable appeal times, the public authority shall forward to 
 15.14  the financial institution a notice of release regarding the 
 15.15  appropriate transfer of funds.  
 15.16     (c) Funds received by the public authority must be applied 
 15.17  to the judgment identified in the support judgment levy notice 
 15.18  in compliance with federal regulations.  
 15.19     (d) In the event that multiple notices result in an amount 
 15.20  of seized funds that is insufficient to satisfy all of the 
 15.21  support judgment levies, the public authority shall distribute 
 15.22  funds to satisfy each support judgment levy in the order in 
 15.23  which they were sent to the financial institution.  
 15.24     Subd. 5.  [EXEMPTION AND CONTEST.] (a) [PROCESS TO CLAIM 
 15.25  EXEMPTION.] If the judgment debtor elects to claim an exemption, 
 15.26  the judgment debtor shall complete the applicable portion of the 
 15.27  exemption form, sign it under penalty of perjury, and deliver 
 15.28  one copy to the public authority within 30 calendar days of the 
 15.29  date postmarked on the correspondence mailed to the judgment 
 15.30  debtor.  Failure of the judgment debtor to deliver the executed 
 15.31  exemption does not constitute a waiver of any claimed right to 
 15.32  an exemption.  Upon timely receipt of a claim of exemption by 
 15.33  the public authority, funds not claimed to be exempt by the 
 15.34  judgment debtor remain subject to the support judgment levy.  If 
 15.35  a claim of exemption is resolved informally, the public 
 15.36  authority shall proceed according to section 552.05, subdivision 
 16.1   3.  
 16.2      (b) [PROCESS TO CONTEST.] (1) The judgment debtor may 
 16.3   contest a support judgment levy on the limited grounds that the 
 16.4   seizure or the amount seized is improper due to mistake of fact 
 16.5   or that the funds held in the account are exempt from levy for 
 16.6   child support purposes under state or federal law. 
 16.7      (2) If the judgment debtor chooses to contest the 
 16.8   withholding, within 30 calendar days of notice of support 
 16.9   judgment levy the judgment debtor shall: 
 16.10     (i) file a motion with the court administrator, including 
 16.11  in the motion the alleged mistake of fact or the basis for any 
 16.12  claim that the funds are exempt from withholding; 
 16.13     (ii) obtain a hearing date from the court administrator; 
 16.14  and 
 16.15     (iii) serve the public authority, either personally or by 
 16.16  fax, with a copy of the notice of motion and motion no later 
 16.17  than two business days after obtaining a hearing date. 
 16.18     (c) [HEARING.] The hearing date shall be set at the 
 16.19  earliest practicable time, but the matter must be heard no later 
 16.20  than ten calendar days from the date a request for hearing is 
 16.21  made.  The court administrator shall schedule these matters to 
 16.22  be heard in the expedited process before a child support 
 16.23  magistrate, but may schedule these cases in district court if 
 16.24  the availability of a child support magistrate does not permit a 
 16.25  hearing to occur within the time frames of this section.  
 16.26     Subd. 6.  [FORM.] The state court administrator's office 
 16.27  shall prepare and make available to court administrators and 
 16.28  judgment debtors a form to be submitted by the judgment debtor 
 16.29  in support of a motion to contest the support judgment levy 
 16.30  under this section.  
 16.31     Sec. 13.  [INSTRUCTION TO REVISOR.] 
 16.32     In the next edition of Minnesota Statutes, the revisor of 
 16.33  statutes shall change references to section 552.05 to section 
 16.34  552.06. 
 16.35     Sec. 14.  [REPEALER.] 
 16.36     (a) Minnesota Statutes 1998, section 552.05, subdivisions 
 17.1   1, 2, 3, 6, 7, 8, and 9, are repealed.  
 17.2      (b) Minnesota Statutes 1999 Supplement, section 552.05, 
 17.3   subdivisions 4, 5, and 10, are repealed. 
 17.4      (c) Minnesota Rules, parts 9500.1800; 9500.1805; 9500.1810; 
 17.5   9500.1811; 9500.1812; 9500.1815; 9500.1817; 9500.1820; and 
 17.6   9500.1821, are repealed effective October 1, 2001.