1.1                          A bill for an act 
  1.2             relating to human services; adding provisions for 
  1.3             child support enforcement; amending Minnesota Statutes 
  1.4             1994, sections 518.5511, subdivision 8; 518.611, by 
  1.5             adding a subdivision; and 548.091, by adding a 
  1.6             subdivision; Minnesota Statutes 1995 Supplement, 
  1.7             sections 256.998, subdivisions 1 and 9; 257.62, 
  1.8             subdivision 1; and 518.5511, subdivision 4. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10                             ARTICLE 1
  1.11                     CHILD SUPPORT ENFORCEMENT
  1.12     Section 1.  [CHILD SUPPORT REFORM.] 
  1.13     Subdivision 1.  [WELFARE REFORM PROPOSAL.] (a) The 
  1.14  commissioner of human services shall present to the legislature 
  1.15  by December 15, 1996, a proposal to comply with and implement 
  1.16  the child support reform provisions of federal welfare reform 
  1.17  legislation enacted. 
  1.18     (b) In designing the proposal, the commissioner shall 
  1.19  consider: 
  1.20     (1) the identification and development of the tools and 
  1.21  resources needed by the public authority responsible for the 
  1.22  enforcement of child support to effectively and efficiently 
  1.23  establish, modify, and enforce child support and parentage 
  1.24  orders; 
  1.25     (2) how best to maximize the use of automation; 
  1.26     (3) identification and removal of barriers in interstate 
  1.27  cases; and 
  2.1      (4) integration of child support with other income 
  2.2   assistance programs for families. 
  2.3      The proposal should seek to increase the ability of the 
  2.4   public authority to locate child support obligors, enforce child 
  2.5   support orders, ensure due process rights for all participants, 
  2.6   and use cost-effective remedies and procedures.  
  2.7      (c) If federal welfare reform legislation is enacted, the 
  2.8   commissioner shall also develop: 
  2.9      (1) a plan under which the public authority and any 
  2.10  judicial or administrative tribunal with authority to hear child 
  2.11  support and paternity cases may apply statewide jurisdiction 
  2.12  over the parties and in which a case may be transferred between 
  2.13  jurisdictions in the state without additional filing by the 
  2.14  petitioner or service of process on the respondent to retain 
  2.15  jurisdiction over the parties; and 
  2.16     (2) a plan under which any past due payment of installment 
  2.17  of child support approved by a court or administrative 
  2.18  proceeding by this state or any other state will create a lien 
  2.19  by operation of law upon an obligor's personal and real property.
  2.20                             ARTICLE 2
  2.21                       CHILD SUPPORT PROGRAMS
  2.22     Section 1.  Minnesota Statutes 1995 Supplement, section 
  2.23  256.998, subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  2.25  subdivision apply to this section. 
  2.26     (b) "Date of hiring" means the earlier of:  (1) the first 
  2.27  day for which an employee is owed compensation by an employer; 
  2.28  or (2) the first day that an employee reports to work or 
  2.29  performs labor or services for an employer. 
  2.30     (c) "Earnings" means payment owed by an employer for labor 
  2.31  or services rendered by an employee. 
  2.32     (d) "Employee" means a person who resides or works in 
  2.33  Minnesota and ~~performs services for compensation, in whatever~~ 
  2.34  ~~form, for an employer.~~ satisfies the criteria of an employee 
  2.35  under section 3121(d) of the federal tax code except that an 
  2.36  employee does not include ~~persons~~ a person hired for domestic 
  3.1   service in the private home of the employer, as defined in the 
  3.2   federal tax code.  
  3.3      (e) "Employer" means a person or entity located or doing 
  3.4   business in this state that employs one or more employees for 
  3.5   payment, and includes the state, political or other governmental 
  3.6   subdivisions of the state, and the federal government. 
  3.7      (f) "Hiring" means engaging a person to perform services 
  3.8   for compensation and includes the reemploying or return to work 
  3.9   of any previous employee who was laid off, ~~furloughed,~~ 
  3.10  separated, ~~granted a leave without pay,~~ or terminated from 
  3.11  employment when a period of 90 days elapses from the date of 
  3.12  layoff, separation, or termination to date of the person's 
  3.13  return to work. 
  3.14     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  3.15  256.998, subdivision 9, is amended to read: 
  3.16     Subd. 9.  [INDEPENDENT CONTRACTORS.] The state and all 
  3.17  political subdivisions of the state, when acting in the capacity 
  3.18  of an employer, shall report the hiring of any person as an 
  3.19  independent contractor to the centralized work reporting system 
  3.20  in the same manner as the hiring of an employee is reported. 
  3.21     ~~The attorney general and the commissioner of human services~~ 
  3.22  ~~shall work with representatives of the employment community and~~ 
  3.23  ~~industries that utilize independent contractors in the regular~~ 
  3.24  ~~course of business to develop a plan to include the reporting of~~ 
  3.25  ~~independent contractors by all employers to the centralized work~~ 
  3.26  ~~reporting system by July 1, 1996.  The attorney general and the~~ 
  3.27  ~~commissioner of human services shall present the resulting plan~~ 
  3.28  ~~in the form of proposed legislation to the legislature by~~ 
  3.29  ~~February 1, 1996.~~  Other entities may report independent 
  3.30  contractors to whom they have or will make payments that total 
  3.31  the amount required for the filing of a 1099-MISC report.  
  3.32  Payors need not make more than one report for the same 
  3.33  independent contractor.  These payors shall report independent 
  3.34  contractors by use of the same means and provide the same 
  3.35  information as employers of employees, pursuant to subdivisions 
  3.36  4 and 5 under this section.  
  4.1      Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  4.2   257.62, subdivision 1, is amended to read: 
  4.3      Subdivision 1.  [BLOOD OR GENETIC TESTS REQUIRED.] The 
  4.4   court may, and upon request of a party shall, require the child, 
  4.5   mother, or alleged father to submit to blood or genetic tests.  
  4.6   A copy of the test results must be served on the parties ~~as~~ 
  4.7   ~~provided in section 543.20~~ by first class mail.  Any objection 
  4.8   to the results of blood or genetic tests must be made in writing 
  4.9   no later than 15 days prior to a hearing at which time those 
  4.10  test results may be introduced into evidence.  Test results 
  4.11  served upon a party must include notice of this right to 
  4.12  object.  If the alleged father is dead, the court may, and upon 
  4.13  request of a party shall, require the decedent's parents or 
  4.14  brothers and sisters or both to submit to blood or genetic 
  4.15  tests.  However, in a case involving these relatives of an 
  4.16  alleged father, who is deceased, the court may refuse to order 
  4.17  blood or genetic tests if the court makes an express finding 
  4.18  that submitting to the tests presents a danger to the health of 
  4.19  one or more of these relatives that outweighs the child's 
  4.20  interest in having the tests performed.  Unless the person gives 
  4.21  consent to the use, the results of any blood or genetic tests of 
  4.22  the decedent's parents, brothers, or sisters may be used only to 
  4.23  establish the right of the child to public assistance including 
  4.24  but not limited to social security and veterans' benefits.  The 
  4.25  tests shall be performed by a qualified expert appointed by the 
  4.26  court. 
  4.27     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  4.28  518.5511, subdivision 4, is amended to read: 
  4.29     Subd. 4.  [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) All 
  4.30  counties shall participate in the contested administrative 
  4.31  process established in this section as designated in a statewide 
  4.32  implementation plan to be set forth by the commissioner of human 
  4.33  services.  No county shall be required to participate in the 
  4.34  contested administrative process until after the county has been 
  4.35  trained.  The contested administrative process shall be in 
  4.36  operation in all counties no later than July 1, 1998, with the 
  5.1   exception of Hennepin county which shall ~~have a pilot program in~~ 
  5.2   ~~operation~~ begin implementation of the contested administrative 
  5.3   process no later than July 1, 1996.  
  5.4      ~~The Hennepin county pilot program shall be jointly planned,~~ 
  5.5   ~~implemented, and evaluated by the department of human services,~~ 
  5.6   ~~the office of administrative hearings, the fourth judicial~~ 
  5.7   ~~district court, and Hennepin county.  The pilot program shall~~ 
  5.8   ~~provide that one-half of the case load use the contested~~ 
  5.9   ~~administrative process.  The pilot program shall include an~~ 
  5.10  ~~evaluation which shall be conducted after one year of program~~ 
  5.11  ~~operation.  A preliminary evaluation report shall be submitted~~ 
  5.12  ~~by the commissioner to the legislature by March 1, 1997.  A~~ 
  5.13  ~~final evaluation report shall be submitted by the commissioner~~ 
  5.14  ~~to the legislature by January 15, 1998.  The pilot program shall~~ 
  5.15  ~~continue pending final decision by the legislature, or until the~~ 
  5.16  ~~commissioner determines that the pilot program shall discontinue~~ 
  5.17  ~~and that Hennepin county shall not participate in the contested~~ 
  5.18  ~~administrative process.~~ 
  5.19     In counties designated by the commissioner, contested 
  5.20  hearings required under this section shall be scheduled before 
  5.21  administrative law judges, and shall be conducted in accordance 
  5.22  with the provisions under this section.  In counties not 
  5.23  designated by the commissioner, contested hearings shall be 
  5.24  conducted in district court in accordance with the rules of 
  5.25  civil procedure and the rules of family court. 
  5.26     (b) An administrative law judge may conduct hearings and 
  5.27  approve a stipulation reached on a contempt motion brought by 
  5.28  the public authority.  Any stipulation that involves a finding 
  5.29  of contempt and a jail sentence, whether stayed or imposed, 
  5.30  shall require the review and signature of a district court judge.
  5.31     (c) A party, witness, or attorney may appear or testify by 
  5.32  telephone, audiovisual means, or other electronic means, at the 
  5.33  discretion of the administrative law judge. 
  5.34     (d) Before implementing the process in a county, the chief 
  5.35  administrative law judge, the commissioner of human services, 
  5.36  the director of the county human services agency, the county 
  6.1   attorney, the county court administrator, and the county sheriff 
  6.2   shall jointly establish procedures, and the county shall provide 
  6.3   hearing facilities for implementing this process in the county.  
  6.4   A contested administrative hearing shall be conducted in a 
  6.5   courtroom, if one is available, or a conference or meeting room 
  6.6   with at least two exits and of sufficient size to permit 
  6.7   adequate physical separation of the parties.  The court 
  6.8   administrator shall, to the extent practical, provide 
  6.9   administrative support for the contested hearing.  Security 
  6.10  personnel shall either be present during the administrative 
  6.11  hearings, or be available to respond to a request for emergency 
  6.12  assistance.  
  6.13     (e) The contested administrative hearings shall be 
  6.14  conducted under the rules of the office of administrative 
  6.15  hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 
  6.16  to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 
  6.17  1400.7700, 1400.7800, and 1400.8100, as adopted by the chief 
  6.18  administrative law judge.  For matters not initiated under 
  6.19  subdivision 2, documents from the moving party shall be served 
  6.20  and filed at least 21 days prior to the hearing and the opposing 
  6.21  party shall serve and file documents raising new issues at least 
  6.22  ten days prior to the hearing.  In all contested administrative 
  6.23  proceedings, the administrative law judge may limit the extent 
  6.24  and timing of discovery.  Except as provided under this section, 
  6.25  other aspects of the case, including, but not limited to, 
  6.26  discovery, shall be conducted under the rules of family court, 
  6.27  the rules of civil procedure, and chapter 518.  
  6.28     (f) Pursuant to a contested administrative hearing, the 
  6.29  administrative law judge shall make findings of fact, 
  6.30  conclusions, and a final decision and issue an order.  Orders 
  6.31  issued by an administrative law judge may be enforceable by the 
  6.32  contempt powers of the district courts.  
  6.33     (g) At the time the matter is scheduled for a contested 
  6.34  hearing, the public authority shall file in the district court 
  6.35  copies of all relevant documents sent to or received from the 
  6.36  parties, in addition to the documents filed under subdivision 2, 
  7.1   paragraph (e).  For matters scheduled for a contested hearing 
  7.2   which were not initiated under subdivision 2, the public 
  7.3   authority shall obtain any income information available to the 
  7.4   public authority through the department of economic security and 
  7.5   serve this information on all parties and file the information 
  7.6   with the court at least five days prior to the hearing. 
  7.7      (h) The decision and order of the administrative law judge 
  7.8   is appealable to the court of appeals in the same manner as a 
  7.9   decision of the district court. 
  7.10     Sec. 5.  Minnesota Statutes 1994, section 518.5511, 
  7.11  subdivision 8, is amended to read: 
  7.12     Subd. 8.  [COSTS ASSOCIATED WITH THE ADMINISTRATIVE 
  7.13  PROCESS.] The commissioner of human services shall distribute 
  7.14  money for this purpose ~~to counties~~ to cover the costs of the 
  7.15  administrative process, including the salaries of administrative 
  7.16  law judges.  If available appropriations are insufficient to 
  7.17  cover the costs, the commissioner shall prorate the amount among 
  7.18  the counties. 
  7.19     Sec. 6.  Minnesota Statutes 1994, section 518.611, is 
  7.20  amended by adding a subdivision to read: 
  7.21     Subd. 13.  [EMPLOYER NOTICE.] When an income withholding 
  7.22  order is in effect and the obligor's employment is terminated or 
  7.23  the periodic payment terminates, the obligor and the obligor's 
  7.24  employer or the payor of funds shall notify the public agency 
  7.25  responsible for child support enforcement of the termination 
  7.26  within ten days of the termination date.  The notice shall 
  7.27  include the obligor's home address and the name and address of 
  7.28  the obligor's new employer or payor of funds, if known.  
  7.29  Information disclosed under this section shall not be divulged 
  7.30  except to the extent necessary for the administration of the 
  7.31  child support enforcement program or when otherwise authorized 
  7.32  by law. 
  7.33     Sec. 7.  Minnesota Statutes 1994, section 548.091, is 
  7.34  amended by adding a subdivision to read: 
  7.35     Subd. 5.  [LIEN PRIORITY.] (a) The public authority and the 
  7.36  obligee in a child support order may agree in writing to 
  8.1   subordinate the lien of a child support judgment to a mortgage 
  8.2   if the real property that is the subject of the mortgage is, as 
  8.3   of the date of the subordination document, the home of one or 
  8.4   more of the children who are the subjects of the child support 
  8.5   order. 
  8.6      (b) The subordination document must contain a legal 
  8.7   description of the property, refer to the mortgage by document 
  8.8   or filing number, refer to the judgment, be signed by the county 
  8.9   and the obligee, and be dated.  The signatures must be 
  8.10  acknowledged before a notary public.  The document must comply 
  8.11  with section 507.091, and be in every other respect recordable. 
  8.12     (c) The subordination is effective when recorded in the 
  8.13  office of the county recorder, or filed in the office of the 
  8.14  registrar of titles, of the county in which the real property is 
  8.15  located.  The effectiveness of the subordination, with respect 
  8.16  to parties other than the county, the obligee, and the obligor, 
  8.17  is not affected by any determination that the conditions of 
  8.18  paragraph (a) were not in fact met. 
  8.19     Sec. 8.  [EFFECTIVE DATE.] 
  8.20     Sections 1 to 6 are effective July 1, 1996. 
  8.21     Section 7 is effective the day following final enactment.