STATE OF MINNESOTA
EIGHTY-FOURTH SESSION - 2005
_____________________
SIXTY-FOURTH DAY
Saint Paul, Minnesota, Friday, May 20, 2005
The House of Representatives convened at 12:00 noon and was
called to order by Steve Sviggum, Speaker of the House.
Prayer was offered by the Reverend Lonnie E. Titus, House
Chaplain.
The members of the House gave the pledge of allegiance to the
flag of the United States of America.
The roll was called and the following members were present:
Abeler
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Sertich
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
A quorum was present.
Abrams was excused until 2:05 p.m.
The Chief Clerk proceeded to read the Journal of the preceding
day. Hosch moved that further reading
of the Journal be suspended and that the Journal be approved as corrected by
the Chief Clerk. The motion prevailed.
Paulsen moved that the House
recess subject to the call of the Chair.
The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by the Speaker.
REPORTS
OF CHIEF CLERK
S. F. No. 644 and H. F. No. 761,
which had been referred to the Chief Clerk for comparison, were examined and
found to be identical with certain exceptions.
SUSPENSION
OF RULES
Smith moved that the rules be so far suspended that
S. F. No. 644 be substituted for H. F. No. 761
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1089 and H. F. No. 945,
which had been referred to the Chief Clerk for comparison, were examined and
found to be identical with certain exceptions.
SUSPENSION
OF RULES
Erhardt moved that the rules be so far suspended that
S. F. No. 1089 be substituted for H. F. No. 945
and that the House File be indefinitely postponed. The motion prevailed.
PETITIONS AND COMMUNICATIONS
The following communications were received:
STATE
OF MINNESOTA
OFFICE
OF THE GOVERNOR
SAINT
PAUL 55155
May
16, 2005
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Sviggum:
Please be advised that I have received, approved, signed, and
deposited in the Office of the Secretary of State the following House Files:
H. F. No. 1692, relating to state government;
regulating compensation plans of the State Board of Investment.
H. F. No. 487,
relating to state government; changing terminology for mentally retarded,
mental retardation, physically handicapped, and similar terms.
Sincerely,
Tim
Pawlenty
Governor
STATE
OF MINNESOTA
OFFICE
OF THE SECRETARY OF STATE
ST.
PAUL 55155
The Honorable Steve Sviggum
Speaker of the House of Representatives
The Honorable James P.
Metzen
President of the Senate
I have the honor to inform you that the following enrolled Acts
of the 2005 Session of the State Legislature have been received from the Office
of the Governor and are deposited in the Office of the Secretary of State for
preservation, pursuant to the State Constitution, Article IV, Section 23:
|
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2005 |
Date Filed 2005 |
1095 53 4:25
p.m. May 16 May
17
493 54 4:17 p.m.
May 16 May
17
1692 55 4:05
p.m. May 16 May
17
487 56 4:11
p.m. May 16 May
17
Sincerely,
Mary
Kiffmeyer
Secretary
of State
SECOND READING OF SENATE BILLS
S. F. Nos. 644 and 1089 were read for the second time.
INTRODUCTION
AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Loeffler introduced:
H. F. No. 2531, A bill for an act relating to a professional
baseball stadium; providing an unsold seat surcharge.
The bill was read for the first time and referred to the
Committee on Local Government.
Davids introduced:
H. F. No. 2532, A bill for an act relating to energy; modifying
provisions relating to renewable energy; amending Minnesota Statutes 2004,
section 216B.1691.
The bill was read for the first time and referred to the
Committee on Regulated Industries.
Hausman, Ozment, Dorman and Pelowski introduced:
H. F. No. 2533, A bill for an act relating to capital
improvements; authorizing the issuance of state bonds; appropriating money for
a state museum of natural history.
The bill was read for the first time and referred to the
Committee on Agriculture, Environment and Natural Resources Finance.
Koenen introduced:
H. F. No. 2534, A bill for an act relating to traffic
regulations; increasing maximum allowable length of recreational vehicle
combinations to 65 feet; amending Minnesota Statutes 2004, section 169.81,
subdivision 3c.
The bill was read for the first time and referred to the
Committee on Transportation.
Koenen introduced:
H. F. No. 2535, A bill for an act relating to special
assessments; providing for award of attorney fees, costs, and disbursements to
prevailing appellant in a special assessment matter; amending Minnesota
Statutes 2004, section 429.081.
The bill was read for the first time and referred to the
Committee on Taxes.
Nelson, P., introduced:
H. F. No. 2536, A bill for an act relating to drivers'
licenses; including a school that charges a fee for driver training within
definition of commercial driving school; prohibiting certificated high school
driver training instructor from instructing nonstudents; amending Minnesota
Statutes 2004, sections 171.33, subdivision 1; 171.39.
The bill was read for the first time and referred to the
Committee on Transportation.
McNamara introduced:
H. F. No. 2537, A bill for an act relating to capital
improvements; authorizing issuance of state bonds; appropriating money for Red
Rock corridor transit way.
The bill was read for the first time and referred to the
Committee on Transportation Finance.
McNamara introduced:
H. F. No. 2538, A bill for an act relating to capital
improvements; authorizing the issuance of state bonds; appropriating money for
the Hastings River Flats Interpretive Facility.
The bill was read for the first time and referred to the
Committee on Jobs and Economic Opportunity Policy and Finance.
Sailer, Moe, Eken, Penas, Solberg and Lieder introduced:
H. F. No. 2539, A bill for an act relating to capital
improvements; authorizing the issuance of state bonds; appropriating money for
an emergency training administration center.
The bill was read for the first time and referred to the
Committee on Public Safety Policy and Finance.
Kohls introduced:
H. F. No. 2540, A bill for an act relating to title insurance;
defining a term; amending Minnesota Statutes 2004, section 68A.04.
The bill was read for the first time and referred to the
Committee on Commerce and Financial Institutions.
Penas, Hackbarth and Dill introduced:
H. F. No. 2541, A bill for an act relating to natural
resources; modifying regulation of all-terrain vehicles; amending Minnesota
Statutes 2004, sections 84.92, subdivision 8, by adding subdivisions; 84.9256,
subdivision 1; 84.9257; 84.928, by adding a subdivision.
The bill was read for the first time and referred to the
Committee on Environment and Natural Resources.
Holberg introduced:
H. F. No. 2542, A bill for an act relating to appropriations;
appropriating money for transportation, Metropolitan Council, and public safety
activities; providing for general contingent accounts and tort claims;
authorizing issuance of trunk highway bonds; modifying vehicle registration
tax; modifying law and proposing amendment to Minnesota Constitution to
allocate proceeds of tax on sale of motor vehicles; allocating county state-aid
highway funds; modifying provisions related to state mail, state highways and
bridges, county state-aid highways, toll facilities, railroad grade crossings,
traffic fine allocations, commercial motor vehicles, day activity center buses,
other motor vehicles, state aviation, airport noise mitigation reporting,
bridges in smaller cities, highway signs, various accounts, weight limits on
highways and other traffic regulations, drivers' licenses and permits, transit
facilities and operations, gasoline sales, wetland replacement near the city of
Cologne, the employment status of public safety radio communications operators,
the insurance verification sampling program, maximum train speeds in the city
of Orr, park-and-ride lots, a restriction on ethanol requirements, deputy
registrar positions in Carver and Hennepin Counties, and bicycle programs;
requiring studies and reports; making technical and clarifying revisions;
amending Minnesota Statutes 2004, sections 16B.49; 115A.908, subdivision 1;
160.87, by adding a subdivision; 161.14, by adding subdivisions; 161.361,
subdivision 2; 162.06, subdivision 2; 162.07, subdivision 1, by adding a
subdivision; 162.08, subdivision 3; 168.011, subdivisions 3, 4, 5, 5a, 6, 7,
25, by adding subdivisions; 168.013, subdivisions 1a, 8; 168.031; 168.09,
subdivision 7; 168.091, subdivision 1; 168.10, subdivision 1c; 168.105,
subdivisions 2, 3, 5; 168.12; 168.123; 168.1235; 168.124; 168.125; 168.1255;
168.127, subdivision 6; 168.128; 168.129; 168.1291; 168.1293; 168.1296;
168.1297; 168.15, subdivision 1; 168.16; 168.27, subdivision 11; 168.31,
subdivision 5; 168.33; 168.345, subdivisions 1, 2; 168.381; 168.54,
subdivisions 4, 5; 168A.152, subdivision 2; 168A.29; 168A.31; 169.01, subdivisions
75, 76, 78; 169.09, subdivision 13; 169.18, subdivisions 4, 5, 11, as amended,
if enacted; 169.448, by adding a subdivision; 169.71, subdivision 1; 169.81,
subdivision 3c; 169.824, subdivision 2; 169.851, subdivision 5; 169.86,
subdivision 5; 169.87, subdivision 4; 169.99, subdivision 1b; 169A.52,
subdivision 3; 169A.60, subdivision 16; 171.01, subdivisions 22, 35, 47, by
adding a subdivision; 171.02; 171.03; 171.04, subdivision 2; 171.05,
subdivisions 1, 2; 171.06, subdivisions 2, 2a; 171.061, subdivision 4; 171.07,
subdivision 11; 171.09; 171.12, subdivisions 3, 6; 171.13, subdivisions 2, 6,
by adding a subdivision; 171.165, subdivisions 1, 2, 6; 171.18, subdivision 1;
171.20, subdivision 4; 171.26; 171.29, subdivision 2; 171.36; 174.03, by adding
subdivisions; 174.50, by adding a subdivision; 179A.03, subdivision 7; 179A.10,
subdivision 2; 192.502, subdivision 2; 197.65; 297B.09, subdivision 1; 299D.03,
subdivision 5; 469.015, subdivision 4; 473.446, subdivision 3; 473.4461;
473.604, subdivision 5; 473F.08, subdivision 3b; 609.855, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapters 160;
168; 169; 171; 174; 190; 219; 299A; repealing Minnesota Statutes 2004, sections
168.011, subdivision 19; 168.012, subdivision 12; 168.041, subdivision 11;
168.105, subdivision 6; 168.15, subdivision 2; 168.231; 168.345, subdivisions
3, 4; 168C.01; 168C.02; 168C.03; 168C.04; 168C.05; 168C.06; 168C.07; 168C.08;
168C.09; 168C.10; 168C.11; 168C.12; 168C.13; 170.23; 171.12, subdivision 8; 171.165,
subdivisions 3, 4, 4a, 4b; 171.185; 473.408, subdivision 1; 2005 H.F. No. 2461,
article 3, sections 9, 10; Minnesota Rules, parts 7407.0100; 7407.0200;
7407.0300; 7407.0400; 7407.0500; 7407.0600; 7407.0700; 7407.0800; 7407.0900;
7407.1000; 7407.1100; 7407.1200; 7407.1300; 7503.2400; 7800.0600; 7800.3200,
subpart 1; 7805.0700; 8850.6900, subpart 20; 8855.0500, subpart 1.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
Magnus introduced:
H. F. No. 2543, A bill for an act relating to highway funding;
providing for an increase in the excise tax on gasoline and special fuels;
proposing an amendment to the Minnesota Constitution, article XIV, section 10;
amending Minnesota Statutes 2004, sections 296A.07, subdivision 3; 296A.08,
subdivision 2.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned:
H. F. No. 478, A bill for an act relating to counties;
providing for alternative filing of surveys; modifying requirements for land
surveyors; providing for a transfer of records; amending Minnesota Statutes
2004, sections 160.15, subdivision 4; 381.12, subdivisions 1, 3; 389.03.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted
the report of the Conference Committee on:
H. F. No. 42, A bill for an act relating to firearms;
authorizing the use of silencers to muffle discharges of firearms for natural
resource wildlife control; amending Minnesota Statutes 2004, section 609.66,
subdivisions 1h, 2.
The Senate has repassed said bill in accordance with the
recommendation and report of the Conference Committee. Said House File is herewith returned to the
House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the
House for the appointment of a Conference Committee on the amendments adopted
by the Senate to the following House File:
H. F. No. 473, A bill for an act relating to creditors'
remedies; exempting certain jewelry from attachment, garnishment, or sale;
amending Minnesota Statutes 2004, section 550.37, subdivision 4.
The Senate has appointed as such committee:
Senators Wergin, Chaudhary and Scheid.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the
House for the appointment of a Conference Committee on the amendments adopted
by the Senate to the following House File:
H. F. No. 847, A bill for an act relating to game and fish;
modifying purchasing requirements; modifying certain definitions; providing for
special fish management tags; specifying status of and regulating stands and
blinds on public lands; modifying authority to take animals causing damage;
modifying use of scopes and laser sights by visually impaired hunters;
modifying certain license requirements; modifying restrictions on taking
waterfowl and big game; authorizing rulemaking; modifying requirements for
field training hunting dogs; modifying certain seasons; modifying trapping
provisions; modifying period for treeing raccoons; prohibiting
computer-assisted remote hunting; modifying restrictions on decoys; modifying
disposition of state hatchery products; permitting use of silencers for
wildlife control; modifying fishing and commercial fishing provisions;
repealing authority for the Mississippi River Fish Refuge; repealing authority
to issue certain orders; amending Minnesota Statutes 2004, sections 84.025,
subdivision 10; 84.027, subdivision 13; 97A.015, subdivisions 29, 49; 97A.045,
subdivision 1, by adding a subdivision; 97A.401, subdivision 5; 97A.405,
subdivision 4, by adding a subdivision; 97A.435, subdivisions 2, 4; 97A.441,
subdivision 7; 97A.451, subdivisions 3, 5; 97A.475, subdivisions 7, 16;
97A.485, subdivision 9; 97A.551, by adding a subdivision; 97B.005, subdivisions
1, 3; 97B.025; 97B.031, subdivisions 1, 5; 97B.111, subdivision 2; 97B.621,
subdivision 2; 97B.655, subdivision 2; 97B.711, subdivision 1; 97B.803;
97B.805, subdivision 1; 97B.811, subdivisions 3, 4a; 97C.203; 97C.327; 97C.345,
subdivision 2; 97C.395, subdivision 1; 97C.401, subdivision 2; 97C.825,
subdivision 5; 609.66, subdivisions 1h, 2; proposing coding for new law in Minnesota
Statutes, chapter 97B; repealing Minnesota Statutes 2004, sections 88.27;
97B.005, subdivision 4; 97B.935; 97C.015; 97C.403; 97C.825, subdivisions 6, 7,
8, 9.
The Senate has appointed as such committee:
Senators Saxhaug, Pariseau and Bakk.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 1555, A bill for an act relating to health; modifying
the Minnesota Emergency Health Powers Act; modifying authority of out-of-state
license holders; amending Minnesota Statutes 2004, sections 12.03, subdivision
4d, by adding a subdivision; 12.22, subdivision 2a, by adding a subdivision;
12.31, subdivisions 1, 2; 12.32; 12.34, subdivision 1; 12.381; 12.39; 12.42;
13.3806, subdivision 1a; Laws 2002, chapter 402, section 21, as amended;
proposing coding for new law in Minnesota Statutes, chapter 12.
Patrick E. Flahaven, Secretary of the Senate
Powell moved that the House refuse to concur in the Senate
amendments to H. F. No. 1555, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses. The motion
prevailed.
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 1507, A bill for an act relating to health;
modifying provisions for isolation and quarantine of persons exposed to or infected
with a communicable disease; amending Minnesota Statutes 2004, sections
144.419, subdivision 1; 144.4195, subdivisions 1, 2, 5; Laws 2002, chapter 402,
section 21, as amended; proposing coding for new law in Minnesota Statutes,
chapter 144.
Patrick E. Flahaven, Secretary of the Senate
Abeler moved that the House refuse to concur in the Senate
amendments to H. F. No. 1507, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses. The motion
prevailed.
Mr. Speaker:
I hereby announce the passage by the Senate of the following
Senate Files, herewith transmitted:
S. F. Nos. 1468, 1204, 1772, 1057 and 1298.
Patrick E. Flahaven, Secretary of the Senate
FIRST READING OF SENATE BILLS
S. F. No. 1468, A bill for an act relating to public employers;
modifying public employer reimbursement for compensation paid to certain
firefighters and peace officers; creating a panel to evaluate claims;
appropriating money; amending Minnesota Statutes 2004, sections 214.04,
subdivision 1; 299A.465, subdivision 4, by adding subdivisions.
The bill was read for the first time and referred to the
Committee on Public Safety Policy and Finance.
S. F. No. 1204, A bill for an act relating to health;
recodifying statutes and rules relating to social work; authorizing rulemaking;
providing penalties; modifying provisions relating to physical therapists;
providing penalties; modifying the Psychology Practice Act; phasing out
licensure as a licensed psychological practitioner; modifying dental licensure
provisions; establishing fees; modifying provisions for licensed professional
counselors; authorizing certain rulemaking; modifying physician review;
modifying information contained on prescriptions; providing recognition for the
practice of respiratory therapy in emergency situations; providing that
audiologists need not obtain hearing instrument dispenser certification; providing
penalties; transferring oversight authority for the Office of Mental Health
Practice; requiring a report; establishing penalty fees for certain
credentialed health occupations; providing criminal penalties; appropriating
money; amending Minnesota Statutes 2004, sections 13.383, subdivision 10;
13.411, subdivision 5; 144.335, subdivision 1; 144A.46, subdivision 2;
144E.001, subdivisions 8, 15, by adding a subdivision; 144E.27, subdivision 2;
144E.28, subdivisions 1, 3, 7, 8; 147.09; 147A.18, subdivisions 1, 3; 147C.05;
148.512, subdivision 6, by adding subdivisions; 148.513, by adding a
subdivision; 148.515, by adding a subdivision; 148.5194, by adding
subdivisions; 148.5195, subdivision 3; 148.5196, subdivision 1; 148.6445, by
adding a subdivision; 148.65, by adding subdivisions; 148.706; 148.75; 148.89,
subdivision 5; 148.90, subdivision 1; 148.907, by adding a subdivision;
148.908, subdivision 2, by adding a subdivision; 148.909; 148.916, subdivision
2; 148.925, subdivision 6; 148.941, subdivision 2; 148.96, subdivision 3;
148B.53, subdivisions 1, 3; 148B.54, subdivision 2; 148B.59; 148B.60; 148B.61;
148C.03, subdivision 1; 148C.04, subdivisions
3, 4, 6; 148C.091, subdivision 1; 148C.10, subdivision 2; 148C.11, subdivisions
1, 4, 5, 6; 148C.12, subdivision 3, by adding a subdivision; 150A.01,
subdivision 6a; 150A.06, subdivision 1a; 150A.10, subdivision 1a; 153A.13,
subdivision 5; 153A.14, subdivisions 2h, 2i, 4, 4c, 9; 153A.15, subdivision 1;
153A.20, subdivision 1; 214.01, subdivision 2; 214.06, subdivision 1, by adding
a subdivision; 214.103, subdivision 1; 245.462, subdivision 18; 245.4871,
subdivision 27; 256B.0625, subdivision 38; 256J.08, subdivision 73a; 319B.02,
subdivision 19; 319B.40; Laws 2003, chapter 118, section 29, as amended; proposing
coding for new law in Minnesota Statutes, chapters 144E; 148; 148B; 148C; 150A;
153A; proposing coding for new law as Minnesota Statutes, chapter 148D;
repealing Minnesota Statutes 2004, sections 148B.18; 148B.185; 148B.19;
148B.20; 148B.21; 148B.215; 148B.22; 148B.224; 148B.225; 148B.226; 148B.24;
148B.25; 148B.26; 148B.27; 148B.28; 148B.281; 148B.282; 148B.283; 148B.284;
148B.285; 148B.286; 148B.287; 148B.288; 148B.289; 148C.02; 148C.12, subdivision
4; 153A.14, subdivisions 2a, 8, 10; 153A.19; Minnesota Rules, parts 4747.0030,
subparts 11, 16; 4747.1200; 4747.1300; 5601.0100, subparts 3, 4; 8740.0100;
8740.0110; 8740.0120; 8740.0122; 8740.0130; 8740.0155; 8740.0185; 8740.0187;
8740.0200; 8740.0240; 8740.0260; 8740.0285; 8740.0300; 8740.0310; 8740.0315; 8740.0320;
8740.0325; 8740.0330; 8740.0335; 8740.0340; 8740.0345.
The bill was read for the first time.
Huntley moved that S. F. No. 1204 and H. F. No. 1161, now on
the Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1772, A bill for an act relating to agriculture;
changing certain provisions concerning plant pests, nursery stock, and
wildflowers; extending a task force; amending Minnesota Statutes 2004, sections
18G.03, subdivision 1; 18H.02, subdivisions 21, 22, 23, 32, 34, by adding a
subdivision; 18H.05; 18H.06; 18H.09; 18H.13, subdivision 1; 18H.15; 18H.18,
subdivision 1; 31.94; repealing Minnesota Statutes 2004, section 18H.02,
subdivisions 15, 19.
The bill was read for the first time.
McNamara moved that S. F. No. 1772 and H. F. No. 1937, now on
the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1057, A bill for an act relating to retirement;
statewide and major local retirement plans; providing for various member and
employer contribution rate increases; restructuring the statewide Teachers
Retirement Association fund and benefit plan; providing a special
postretirement adjustment to certain pre-1969 teachers; changing deferred annuities
augmentation for new retirement plan members; creating a public pension plan
default insurance pool; increasing the maximum retirement plan covered salary
figure; providing certain early retirement incentives; creating a task force to
study creation of a statewide volunteer firefighter retirement plan;
appropriating money; amending Minnesota Statutes 2004, sections 352.01,
subdivision 13; 352.04, subdivisions 2, 3, 12; 352.116, subdivision 1a; 352.72,
subdivision 2; 352.911, subdivision 5; 352.92, subdivisions 1, 2; 352B.01,
subdivision 11; 352B.02, subdivisions 1a, 1c, 1d; 352B.30, subdivision 2;
352D.04, subdivision 2; 352D.09, subdivision 7; 353.01, subdivision 10; 353.27,
subdivisions 1, 2, 3, 3a, by adding a subdivision; 353.30, subdivision 5; 353.65,
subdivisions 2, 3, 6; 353.71, subdivision 2; 353B.02, subdivision 10; 353E.01,
subdivision 5; 353E.05; 354.05, subdivisions 2, 13, 35; 354.42, subdivisions 2,
3, by adding a subdivision; 354.44, subdivision 6; 354.55, subdivision 11;
354A.011, subdivisions 15a, 24, 27; 354A.021, subdivisions 1, 4; 354A.092;
354A.093, subdivision 1; 354A.095; 354A.096; 354A.12, subdivisions 1, 2, 2a,
3a, 3b, 3c, 3d; 354A.30; 354A.31, subdivisions 4, 7; 354A.32, subdivision 1;
354A.37, subdivision 2; 354A.39; 354A.40, subdivision 1; 354A.41; 356.20,
subdivision 2; 356.214, subdivision 1; 356.215, subdivision 8; 356.30,
subdivisions 1, 3; 356.302, subdivision 7; 356.303, subdivision 4; 356.315, by
adding a subdivision; 356.42, subdivision 3; 356.465, subdivision 3; 356.611,
subdivision 1; 422A.01, by adding a subdivision;
423A.02, subdivision 1b; 423B.01, by adding a subdivision; 423C.01, by adding a
subdivision; 490.121, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 128D; 354; 356; repealing Minnesota Statutes 2004,
sections 354A.051; 354A.105; 354A.23, subdivision 1; 354A.28.
The bill was read for the first time and referred to the
Committee on Governmental Operations and Veterans Affairs.
S. F. No. 1298, A bill for an act relating to environment;
enacting the Minnesota Electronics Recycling Act of 2005; providing penalties;
proposing coding for new law in Minnesota Statutes, chapter 116H.
The bill was read for the first time and referred to the
Committee on Ways and Means.
Sertich was excused for the remainder of today's session.
The following Conference Committee Report was received:
CONFERENCE COMMITTEE REPORT
ON H. F. NO. 1385
A bill for an act relating to higher education; allocating
money for educational and related purposes with certain conditions; modifying
various loan, grant, and financial aid provisions; requiring institutions to
provide certain data; permitting disclosure of certain data to determine
eligibility; amending various reciprocity provisions; providing definitions;
directing the Board of Trustees to designate centers of excellence; amending
the Minnesota college savings plan; authorizing transfer of certain bonding
authority; amending provisions related to private career schools; establishing
fees; providing for merger with the Higher Education Facilities Authority;
establishing the Rochester University Development Committee; appropriating
money; amending Minnesota Statutes 2004, sections 13.46, subdivision 2;
135A.031, subdivisions 3, 4; 135A.052, subdivision 1; 135A.30, subdivisions 3,
4, 5; 135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 136A.031,
subdivisions 2, 3, 4; 136A.08, by adding subdivisions; 136A.121, subdivisions
2, 5, 6, 9, by adding a subdivision; 136A.125, subdivision 2; 136A.1701, by
adding subdivisions; 136F.04, subdivision 4; 136F.32, subdivision 2; 136G.03,
subdivisions 3, 21a, 22, 32; 136G.05, subdivision 8; 136G.09, subdivisions 11,
12; 136G.11, subdivisions 1, 2, 3, 13; 136G.13, subdivisions 1, 5; 136G.14;
137.0245, subdivisions 1, 2, 4; 141.21, by adding a subdivision; 141.25,
subdivisions 3, 5, 8, 9, 12; 141.251; 141.26, subdivision 5; 141.271,
subdivisions 4, 7, 10, by adding subdivisions; 141.28, subdivision 1, by adding
a subdivision; 141.29, subdivision 3; 141.30; 141.35; 192.502, subdivision 1;
299A.45, subdivisions 1, 4; proposing coding for new law in Minnesota Statutes,
chapters 136A; 137; 141; repealing Minnesota Statutes 2004, sections 136A.011;
136A.031, subdivision 1; Minnesota Rules, parts 4815.0100; 4815.0110;
4815.0120; 4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 4830.8110;
4830.8120; 4830.8130; 4830.8140; 4830.8150.
May 19, 2005
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The Honorable James P.
Metzen
President of the Senate
We, the undersigned conferees for H. F. No. 1385, report that
we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its
amendments and that H. F. No. 1385 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE
1
APPROPRIATIONS
Section 1. [HIGHER
EDUCATION APPROPRIATIONS.]
The sums in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or other named fund, to the agencies and
for the purposes specified in this article.
The listing of an amount under the figure "2006" or
"2007" in this article indicates that the amount is appropriated to
be available for the fiscal year ending June 30, 2006, or June 30, 2007,
respectively. "The first
year" is fiscal year 2006.
"The second year" is fiscal year 2007. "The biennium" is fiscal years
2006 and 2007.
SUMMARY
BY FUND
2006
2007 TOTAL
General
$1,365,500,000
$1,395,500,000
$2,761,000,000
Health Care Access
2,157,000 2,157,000 4,314,000
SUMMARY BY AGENCY - ALL FUNDS
2006
2007 TOTAL
Higher Education Services
Office
172,129,000 177,181,000 349,310,000
Board of Trustees of the Minnesota State Colleges
and
Universities
600,694,000 602,194,000
1,202,888,000
Board of Regents of the
University of Minnesota
593,348,000 616,736,000
1,210,084,000
Mayo Medical Foundation
1,391,000 1,391,000 2,782,000
Minnesota Department of
Health
95,000 155,000 250,000
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
Sec. 2. HIGHER
EDUCATION SERVICES OFFICE
Subdivision 1. Total
Appropriation
$172,129,000 $177,181,000
The amounts that may be spent from this
appropriation for each purpose are specified in the following subdivisions.
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
Subd. 2. State Grants
136,394,000 144,756,000
If the appropriation in this subdivision for
either year is insufficient, the appropriation for the other year is available
for it. For the biennium, the tuition
and fee maximum shall be $9,208 the first year and $9,438 the second year for
students enrolled in four-year programs and $6,567 the first year and $6,436
the second year for students enrolled in two-year programs.
The Higher Education Services Office must
study the for-profit postsecondary education sector licensed or registered in
Minnesota. The study must examine
tuition levels and program offerings, student debt load, financial assistance,
and the impact of the tuition and fee maximums set in law on this postsecondary
sector and its students. The study must
also analyze the relationship of the tuition and fee maximums and tuition
levels. The office must report on the
findings to the legislative committees responsible for higher education finance
by November 15, 2006. This study may be
done in conjunction with the licensing study in article 3.
This appropriation sets the living and
miscellaneous expense allowance at $5,350 each year.
This appropriation contains money to provide
educational benefits to dependent children under age 23 and the spouses of
public safety officers killed in the line of duty under Minnesota Statutes
2004, section 299A.45.
Subd. 3. Interstate
Tuition Reciprocity
1,000,000 1,000,000
If the appropriation in this subdivision for
either year is insufficient, the appropriation for the other year is available
to meet reciprocity contract obligations.
Subd. 4. State Work
Study
12,444,000 12,444,000
Subd. 5. Child Care
Grants
4,934,000 4,934,000
Subd. 6. Minitex
4,381,000 4,381,000
Subd. 7. MnLINK Gateway
400,000 400,000
Subd. 8. Learning
Network of Minnesota
4,225,000 4,225,000
Subd. 9. Minnesota
College Savings Plan
1,020,000 1,020,000
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
Subd. 10. Midwest
Higher Education Compact
90,000 90,000
Subd. 11. Other Small
Programs
920,000 920,000
This appropriation includes funding for
postsecondary service learning, student and parent information, get ready
outreach, and intervention for college attendance program.
No more than $50,000 of this appropriation
each year may be used for administrative expenses for the intervention for
college attendance program under new Minnesota Statutes, section 136A.861. This appropriation is added to the agency's
permanent budget base.
Of this appropriation, $115,000 each year is
for grants to increase campus-community collaboration and service learning
statewide. For each $1 in state
funding, grant recipients must contribute $2 in campus or community-based
support.
Subd. 12. Agency
Administration
2,761,000 2,651,000
$100,000 the first year and $300,000 the
second year is for the Higher Education Services Office to develop and
implement a process to measure and report on the effectiveness of postsecondary
institutions in the state and make a report to the legislature regarding the
implementation of the process. The
report must be made by January 15, 2006, to the legislative committees with
jurisdiction over higher education policy and finance. The funding base for this initiative in
fiscal years 2008 and 2009 is $300,000 per year.
$310,000 the first year is for the Higher
Education Services Office to upgrade computer program application software
related to state grant awards. This
appropriation does not cancel but is available until expended. This is a onetime appropriation and is not
added to the agency's base.
Subd. 13. Balances
Forward
A
balance in the first year under this section does not cancel, but is available
for the second year.
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
Subd. 14. Transfers
The
Higher Education Services Office may transfer unencumbered balances from the appropriations
in this section to the state grant appropriation, the interstate tuition
reciprocity appropriation, the child care appropriation, and the state work
study appropriation. Transfers from the
child care or state work study appropriations may only be made to the extent
there is a projected surplus in the appropriation. A transfer may be made only with the prior written approval of
the commissioner of finance and prior written notice to the chairs of the senate
Higher Education Budget Division and house Higher Education Finance Committee.
Subd. 15. Reporting
The
Higher Education Services Office shall collect data monthly from institutions
disbursing state financial aid. The
data collected must include, but is not limited to, expenditures by type to
date and unexpended balances. The
Higher Education Services Office must evaluate and report quarterly state
financial aid expenditures and unexpended balances to the chairs of the Higher
Education Finances Committees of the senate and house of representatives and
the commissioner of finance. By
November 1 and February 15, the Higher Education Services Office must provide
updated state grant spending projections taking into account the most current
and projected enrollment and tuition and fee information, economic conditions,
and other relevant factors. Before
submitting state grant spending projections, the Higher Education Services
Office must meet and consult with representatives of public and private postsecondary
education, the Department of Finance, Governor's Office, legislative staff, and
financial aid administrators.
Subd. 16. Rochester
University
3,200,000
-0-
(a)
$200,000 is for the Rochester Higher Education Development Committee to carry
out its planning activities. This is a onetime
appropriation.
(b)
$3,000,000 is for a onetime appropriation that must be deposited into the
Rochester higher education development account under article 4. With the approval of the Higher Education Services Office, money in this account may be used to: (1)
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
provide
additional planning and development funds, if needed; (2) provide initial
funding for academic program development; and (3) provide funding related to
academic facilities, if needed. The
appropriation under this paragraph is available until June 30, 2009.
Subd. 17. United Family
Practice Residency Program
360,000 360,000
For a grant to the United Family Medicine
residency program. This appropriation
shall be used to support 18 resident physicians each year in family practice at
United Family Medicine residency programs and shall prepare doctors to practice
family care medicine in underserved rural and urban areas of the state. It is intended that this program will
improve health care in underserved communities, provide affordable access to
appropriate medical care, and manage the treatment of patients in a more
cost-effective manner.
Sec.
3. BOARD OF TRUSTEES OF THE MINNESOTA
STATE COLLEGES AND UNIVERSITIES
Subdivision 1. Total
Appropriation
600,694,000 602,194,000
The amounts that may be spent from this
appropriation for each purpose are specified in the following subdivisions.
The legislature estimates that instructional
expenditures will be $812,735,000 the first year and $814,764,000 the second
year. The legislature estimates that
noninstructional expenditures will be $58,868,000 the first year and
$59,015,000 the second year.
Subd. 2. General
Appropriation
595,694,000 597,194,000
This appropriation includes $12,000,000 to
pay competitive compensation to faculty or staff for initiatives that promote
excellence in student learning. This
appropriation also includes funding for the recurring enrollment adjustment and
money to strengthen and expand the Minnesota online program, increase the
capacity for training nurses and teachers, provide for the management education
needs of farm and small business owners, and provide services and outreach to
underserved populations.
Subd. 3. Centers of
Excellence
5,000,000 5,000,000
This appropriation is for centers of
excellence under new Minnesota Statutes, section 136F.31.
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
The board must develop a process to designate
centers of excellence under new Minnesota Statutes, section 136F.31.
Sec.
4. BOARD OF REGENTS OF THE UNIVERSITY
OF MINNESOTA
Subdivision 1. Total
Appropriation
593,348,000 616,736,000
The amounts that may be spent from this
appropriation for each purpose are specified in the following subdivisions.
Subd. 2. Operations and
Maintenance
527,824,000 551,212,000
The legislature estimates that instructional
expenditures will be $451,372,000 the first year and $469,229,000 the second
year. The legislature estimates that
noninstructional expenditures will be $290,275,000 the first year and
$301,758,000 the second year.
This appropriation includes $13,000,000 for
competitive compensation to enable the university to attract and retain quality
faculty members.
This appropriation includes funding for the
recurring enrollment adjustment and the following initiatives: Biosciences for a Healthy Society to advance
the university's expertise and to increase the university's competitiveness in leveraging
new funding from federal and private sources; Preparing Students for the 21st
Century to enhance the ability of the university to attract and retain
exceptional students; research support to provide resources for the university
to maintain a competitive advantage in emerging and ongoing research
initiatives; 21st Century Technology to support enhancement to major university
systems; and outreach services to historically underserved students.
Subd. 3. Health Care
Access Fund
2,157,000 2,157,000
This appropriation is from the health care
access fund and is for primary care education initiatives.
Subd. 4. Special
Appropriation
63,367,000 63,367,000
(a) Agriculture and
Extension Service
50,625,000
50,625,000
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
For the Agricultural Experiment Station,
Minnesota Extension Service.
(b) Health Sciences
4,929,000
4,929,000
For the rural physicians associates program,
the Veterinary Diagnostic Laboratory, health sciences research, dental care,
and the Biomedical Engineering Center.
(c) Institute of Technology
1,387,000
1,387,000
For the Geological Survey and the Talented
Youth Mathematics Program.
(d) System Specials
6,426,000
6,426,000
For general research, student loans matching
money, industrial relations education, Natural Resources Research Institute,
Center for Urban and Regional Affairs, Bell Museum of Natural History, and the
Humphrey exhibit.
Subd. 5. Academic
Health Center
The appropriation to the Academic Health
Center under Minnesota Statutes, section 297F.10, is anticipated to be
$20,890,000 in the first year and $20,474,000 in the second year.
Sec. 5. MAYO MEDICAL
FOUNDATION
Subdivision 1. Total
Appropriation
1,391,000 1,391,000
The amounts that may be spent from this
appropriation for each purpose are specified in the following subdivisions.
Subd. 2. Medical School
514,000 514,000
The state of Minnesota must pay a capitation
each year for each student who is a resident of Minnesota. The appropriation may be transferred between
years of the biennium to accommodate enrollment fluctuations.
APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007
It is intended that during the biennium the Mayo
Foundation use the capitation money to increase the number of doctors
practicing in rural areas in need of doctors.
Subd. 3. Family
Practice and Graduate Residency Program
531,000
531,000
The state of Minnesota must pay a capitation of up
to 27 residents each year.
Subd.
4. St. Cloud Hospital-Mayo Family
Practice Residency Program
346,000
346,000
This appropriation is to the Mayo Foundation to
support 12 resident physicians each year in the St. Cloud Hospital-Mayo family
practice residency program. The program
must prepare doctors to practice primary care medicine in the rural areas of
the state. It is intended that this
program will improve health care in rural communities, provide affordable
access to appropriate medical care, and manage the treatment of patients in a
more cost-effective manner.
Sec. 6. COMMISSIONER OF
HEALTH
95,000 155,000
To the commissioner of health to implement new
Minnesota Statutes, section 144.1498.
ARTICLE 2
RELATED PROVISIONS
Section 1. Minnesota
Statutes 2004, section 135A.031, subdivision 3, is amended to read:
Subd. 3. [DETERMINATION
OF INSTRUCTIONAL SERVICES BASE.] The instructional services base for each
public postsecondary system is the sum of:
(1) the state share; and (2) the legislatively estimated tuition for the
second year of the most recent biennium; and (3) adjustments for inflation,
enrollment changes as calculated in subdivision 4, and performance as
calculated in subdivision 5.
[EFFECTIVE DATE.] This
section is effective June 30, 2007.
Sec. 2. Minnesota
Statutes 2004, section 135A.031, subdivision 4, is amended to read:
Subd. 4. [ADJUSTMENT
FOR ENROLLMENTS FOR BUDGETING.] (a) Each public postsecondary
system's instructional services base shall be adjusted for estimated changes in
enrollments. For each two percent
change in estimated full-year equivalent enrollment, an adjustment shall be
made to 65 percent of the instructional services base. The remaining 35 percent of the
instructional services base is not subject to the adjustment in this
subdivision.
(b) For all purposes where
student enrollment is used for budgeting purposes, student enrollment shall be
measured in full-year equivalents and shall include only enrollments in courses
that award credit or otherwise satisfy any of the requirements of an academic
or vocational program.
(c) The enrollment adjustment shall be made for each year of
the subsequent biennium. The base
enrollment year is the 1995 fiscal year enrollment. The base enrollment shall be updated for each two percent change
in estimated full-year equivalent enrollment.
If the actual enrollment differs from the estimated enrollment, an
adjustment shall be made in the next biennium.
[EFFECTIVE DATE.] This
section is effective June 30, 2007.
Sec. 3. Minnesota
Statutes 2004, section 135A.052, subdivision 1, is amended to read:
Subdivision 1.
[STATEMENT OF MISSIONS.] The legislature recognizes each type of public
postsecondary institution to have a distinctive mission within the overall
provision of public higher education in the state and a responsibility to
cooperate with each other. These
missions are as follows:
(1) the technical colleges shall offer vocational training and
education to prepare students for skilled occupations that do not require a
baccalaureate degree;
(2) the community colleges shall offer lower division
instruction in academic programs, occupational programs in which all credits
earned will be accepted for transfer to a baccalaureate degree in the same field
of study, and remedial studies, for students transferring to baccalaureate
institutions and for those seeking associate degrees;
(3) consolidated community technical colleges shall offer the
same types of instruction, programs, certificates, diplomas, and degrees as the
technical colleges and community colleges offer;
(4) the state universities shall offer undergraduate and
graduate instruction through the master's degree, including specialist
certificates, in the liberal arts and sciences and professional education,
and may offer applied doctoral degrees in education, business, psychology,
physical therapy, audiology, and nursing; and
(5) the University of Minnesota shall offer undergraduate,
graduate, and professional instruction through the doctoral degree, and shall
be the primary state supported academic agency for research and extension
services.
It is part of the mission of each system that within the
system's resources the system's governing board and chancellor or president
shall endeavor to:
(a) prevent the waste or unnecessary spending of public money;
(b) use innovative fiscal and human resource practices to
manage the state's resources and operate the system as efficiently as possible;
(c) coordinate the system's activities wherever appropriate
with the activities of the other system and governmental agencies;
(d) use technology where appropriate to increase system
productivity, improve customer service, increase public access to information
about the system, and increase public participation in the business of the
system;
(e) utilize constructive and
cooperative labor-management practices to the extent otherwise required by
chapters 43A and 179A; and
(f) recommend to the legislature appropriate changes in law
necessary to carry out the mission of the system.
Sec. 4. [135A.165]
[DEAF STUDENTS; TUITION ASSISTANCE.]
(a) For the purpose of this section, a "deaf
person" means an individual with a hearing loss of such severity that the
individual must depend primarily on visual communication, such as writing, lip
reading, manual communication, and gestures.
(b) A deaf person, who is a resident student as defined in
section 136A.101, subdivision 8, is entitled to tuition assistance for the
tuition and fees remaining after deducting any federal or state grants or other
public or private grants made to the person for the purpose of paying the
tuition and fees at a Minnesota state college or university or the University
of Minnesota. A deaf person must
receive either a federal Pell grant or a state grant under section 136A.121 for
a term to receive tuition assistance for that term.
Sec. 5. Minnesota
Statutes 2004, section 135A.30, subdivision 3, is amended to read:
Subd. 3. [SELECTION OF
RECIPIENTS.] The governing board of an eligible institution shall determine, in
consultation with its campuses, application dates and procedures, criteria to
be considered, and methods of selecting students to receive scholarships. A campus, with the approval of its governing
board, may award a scholarship in any of the specified fields field
of study (1) in which the campus offers a program that is of the quality and
rigor to meet the needs of the talented student, and (2) that is pertinent to
the mission of the campus.
Sec. 6. Minnesota
Statutes 2004, section 135A.30, subdivision 4, is amended to read:
Subd. 4. [AMOUNT OF
SCHOLARSHIP.] The amount of the scholarship must may be (1) at
public institutions, up to the cost of tuition and fees for full-time
attendance for one academic year, or (2) at private institutions, an amount equal
up to the lesser of the actual tuition and fees charged by the
institution or the tuition and fees in comparable public institutions. Scholarships awarded under this section must
not be considered in determining a student's financial need as provided in
section 136A.101, subdivision 5.
Sec. 7. Minnesota
Statutes 2004, section 135A.30, subdivision 5, is amended to read:
Subd. 5. [RENEWALS.]
The scholarship shall may be renewed yearly, for up to three
additional academic years, if the student:
(1) maintains full-time enrollment with a grade point average
of at least 3.0 on a four point scale;
(2) pursues studies and continues to demonstrate outstanding
ability, achievement, and potential in the field for which the award was made;
and
(3) is achieving satisfactory progress toward a degree.
Sec. 8. Minnesota
Statutes 2004, section 135A.52, subdivision 1, is amended to read:
Subdivision 1. [FEES
AND TUITION.] Except for an administration fee established by the governing
board at a level to recover costs, to be collected only when a course is taken
for credit, a senior citizen who is a legal resident of Minnesota is entitled
without payment of tuition or activity fees to attend courses offered for
credit, audit any courses offered for credit, or enroll in any noncredit institution
of higher education in Minnesota when space is available after all
tuition-paying students have been accommodated. A senior citizen enrolled under this section must pay any
materials, personal property, or service charges for the course. In addition, a senior citizen who is
enrolled in a course for credit must pay an administrative fee in an amount
established by the governing board of the institution to recover the course
costs. There shall be no administrative
fee charges to a senior citizen auditing a course. For the purposes of this section and section
135A.51, the term "noncredit adult
vocational education courses in any state supported adult vocational education
courses" shall not include those adult vocational education courses
designed and offered specifically and exclusively for senior citizens.
The provisions of this section and section 135A.51 do not apply
to noncredit courses designed and offered by the University of Minnesota, and
the Minnesota State Colleges and Universities specifically and exclusively for
senior citizens. Senior citizens
enrolled under the provisions of this section and section 135A.51 shall not be
included by such institutions in their computation of full-time equivalent
students when requesting staff or appropriations. The enrollee shall pay laboratory or material fees.
Sec. 9. Minnesota
Statutes 2004, section 135A.52, subdivision 2, is amended to read:
Subd. 2. [TERM; INCOME
OF SENIOR CITIZENS.] (a) Except under paragraph (b), there shall be no
limit to the number of terms, quarters or semesters a senior citizen may attend
courses, nor income limitation imposed in determining eligibility.
(b) A senior citizen enrolled in a closed enrollment
contract training or professional continuing education program is not eligible
for benefits under subdivision 1.
Sec. 10. Minnesota
Statutes 2004, section 136A.01, subdivision 2, is amended to read:
Subd. 2. [RESPONSIBILITIES.]
The Higher Education Services Office is responsible for:
(1) necessary state level administration of financial aid
programs, including accounting, auditing, and disbursing state and federal
financial aid funds, and reporting on financial aid programs to the governor
and the legislature;
(2) approval, registration, licensing, and financial aid
eligibility of private collegiate and career schools, under sections 136A.61 to
136A.71 and chapter 141;
(3) administering the Telecommunications Council under Laws
1993, First Special Session chapter 2, article 5, section 2, the Learning
Network of Minnesota, and the Statewide Library Task Force;
(4) negotiating and administering reciprocity agreements;
(5) publishing and distributing financial aid information and
materials, and other information and materials under section 136A.87, to
students and parents;
(6) collecting and maintaining student enrollment and financial
aid data and reporting data on students and postsecondary institutions to
develop and implement a process to measure and report on the effectiveness of
postsecondary institutions;
(7) administering the federal programs that affect students and
institutions on a statewide basis; and
(8) prescribing policies, procedures, and rules under chapter
14 necessary to administer the programs under its supervision.
Sec. 11.
Minnesota Statutes 2004, section 136A.031, subdivision 2, is amended to
read:
Subd. 2. [HIGHER
EDUCATION ADVISORY COUNCIL.] A Higher Education Advisory Council (HEAC) is
established. The HEAC is composed of
the president of the University of Minnesota or designee; the chancellor of the
Minnesota State Colleges and Universities or designee; the commissioner of
education; the president of the Private College Council; a representative from
the Minnesota Association of Private Postsecondary Schools Career
College Association; and a member appointed by the governor. The HEAC shall (1) bring to the
attention of the Higher Education Services Council Office any
matters that the HEAC deems necessary, and (2) review and comment upon
matters before the council. The council
shall refer all proposals to the HEAC before submitting recommendations to the
governor and the legislature. The
council shall provide time for a report from the HEAC at each meeting of the
council.
Sec. 12. Minnesota
Statutes 2004, section 136A.031, subdivision 3, is amended to read:
Subd. 3. [STUDENT
ADVISORY COUNCIL.] A Student Advisory Council (SAC) to the Higher Education
Services Council Office is established. The members of SAC shall include: the chair of the University of Minnesota student senate; the
state chair of the Minnesota State University Student Association; the
president of the Minnesota State College Student Association and an officer of
the Minnesota State College Student Association, one in a community college
course of study and one in a technical college course of study; the president
of the Minnesota Association of Private College Students; and a student who is
enrolled in a private vocational school, to be appointed by the Minnesota Association
of Private Postsecondary Schools Career College Association. A member may be represented by a student
designee who attends an institution from the same system that the absent member
represents. The SAC shall select one of
its members to serve as chair.
The Higher Education Services Council Office
shall inform the SAC of all matters related to student issues under
consideration and shall refer all proposals to the SAC before taking action
or sending the proposals to the governor or legislature. The SAC shall report to the Higher Education
Services Council Office quarterly and at other times that the SAC
considers desirable. The SAC shall
determine its meeting times, but it shall also meet with the council office
within 30 days after the director's request for a meeting.
The SAC shall:
(1) bring to the attention of the Higher Education Services Council
Office any matter that the SAC believes needs the attention of the council
office;
(2) make recommendations to the Higher Education Services Council
Office as it finds appropriate; and
(3) appoint approve student members to appointments
by the Higher Education Services Council Office for each
advisory groups group as provided in subdivision 4; and
(4) provide any reasonable assistance to the council.
Sec. 13. Minnesota
Statutes 2004, section 136A.031, subdivision 4, is amended to read:
Subd. 4. [STUDENT
REPRESENTATION.] If requested by the SAC, The director must place at
least one student from an affected educational system on any task force created
under subdivision 1. The student
member or members shall be appointed by the SAC by the office. The director must submit to the SAC the name
of any student appointed to an advisory group or task force. The student appointment is not approved if
four SAC members vote to disapprove of the appointment. If an appointment is disapproved, the
director must submit another student appointment to the SAC in a timely manner.
Sec. 14.
Minnesota Statutes 2004, section 136A.031, subdivision 5, is amended to
read:
Subd. 5. [EXPIRATION.]
Notwithstanding section 15.059, subdivision 5, the advisory groups established
in this section expire on June 30, 2005 2007.
Sec. 15. Minnesota
Statutes 2004, section 136A.08, is amended by adding a subdivision to read:
Subd. 7.
[REPORTING.] The Higher Education Services Office must annually,
before the last day in January, submit a report to the committees in the house
of representatives and the senate with responsibility for higher education
finance on:
(1) participation in the tuition reciprocity program by
Minnesota students and students from other states attending Minnesota
postsecondary institutions under a reciprocity agreement;
(2) reciprocity and resident tuition rates at each
institution; and
(3) interstate payments and obligations for each state
participating in the tuition reciprocity program in the prior year.
Sec. 16. Minnesota
Statutes 2004, section 136A.08, is amended by adding a subdivision to read:
Subd. 8. [DATA
SHARING.] (a) The Higher Education Services Office must consider developing
data collection procedures and agreements to monitor the extent to which
students who attend Minnesota postsecondary institutions under reciprocity
agreements are employed in Minnesota after graduation. These procedures must include matching
Social Security numbers of reciprocity students for purposes of tracking the
migration and employment of students who receive associate, baccalaureate, or
graduate degrees through a tuition reciprocity program. State agencies must share wage and earnings
data under section 268.19 for the purpose of evaluating the tuition reciprocity
program.
(b) The reciprocity application must request the use of
student Social Security numbers for the purposes of this subdivision. Reciprocity students must be informed that
Social Security numbers will be used only for monitoring described in paragraph
(a), by sharing information with Minnesota agencies and departments responsible
for the administration of covered wage data and revenue collections. Social Security numbers must not be used for
any other purpose or reported to any other government entity.
(c) The office must include summary data on the migration
and earnings of reciprocity graduates in the reciprocity report to the
legislature. This report must include
summary statistics on number of graduates by institution, degree granted and
year of graduation, total number of reciprocity students employed in the state,
and total earnings of graduates.
Sec. 17. Minnesota
Statutes 2004, section 136A.121, subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY
FOR GRANTS.] An applicant is eligible to be considered for a grant, regardless
of the applicant's sex, creed, race, color, national origin, or ancestry, under
sections 136A.095 to 136A.131 if the office finds that the applicant:
(1) is a resident of the state of Minnesota;
(2) is a graduate of a secondary school or its equivalent, or
is 17 years of age or over, and has met all requirements for admission as a
student to an eligible college or technical college of choice as defined in
sections 136A.095 to 136A.131;
(3) has met the financial need criteria established in
Minnesota Rules;
(4) is not in default, as defined by the office, of any federal
or state student educational loan; and
(5) is not more than 30 days in arrears for any in
court-ordered child support payments owed to a that is collected
or enforced by the public agency authority responsible for
child support enforcement or, if the applicant is more than 30 days in arrears in
court-ordered child support that is collected or enforced by the public
authority responsible for child support enforcement, but is
complying with a written payment agreement under section 518.553 or
order for arrearages. An agreement
must provide for a repayment of arrearages at no less than 20 percent per month
of the amount of the monthly child support obligation or no less than $30 per
month if there is no current monthly child support obligation. Compliance means that payments are made by
the payment date.
The director and the commissioner of human services shall
develop procedures to implement clause (5).
Sec. 18. Minnesota
Statutes 2004, section 136A.121, subdivision 6, is amended to read:
Subd. 6. [COST OF
ATTENDANCE.] (a) The recognized cost of attendance consists of allowances
specified in law for living and miscellaneous expenses, and an allowance for tuition
and fees equal to the lesser of the average tuition and fees charged by the
institution, or the tuition and fee maximums established in law.
(b) For a student registering for less than full time, the
office shall prorate the cost of attendance to the actual number of credits for
which the student is enrolled.
The recognized cost of attendance for a student who is confined
to a Minnesota correctional institution shall consist of the tuition and fee
component in paragraph (a), with no allowance for living and miscellaneous
expenses.
For the purpose of this subdivision, "fees" include
only those fees that are mandatory and charged to full-time resident students
attending the institution. Fees do
not include charges for tools, equipment, computers, or other similar materials
where the student retains ownership.
Fees include charges for these materials if the institution retains
ownership. Fees do not include optional
or punitive fees.
Sec. 19. Minnesota
Statutes 2004, section 136A.121, is amended by adding a subdivision to read:
Subd. 7a.
[SURPLUS APPROPRIATION.] If the amount appropriated is determined by
the office to be more than sufficient to fund projected grant demand in the
second year of the biennium, the office may increase the living and
miscellaneous expense allowance in the second year of the biennium by up to an
amount that retains sufficient appropriations to fund the projected grant
demand. The adjustment may be made one
or more times. In making the
determination that there is more than sufficient funds, the office shall
balance the need for sufficient resources to meet the projected demand for
grants with the goal of fully allocating the appropriation for state
grants. An increase in the living and
miscellaneous expense allowance under this subdivision does not carry forward
into a subsequent biennium. This
subdivision expires June 30, 2007.
Sec. 20. Minnesota
Statutes 2004, section 136A.121, subdivision 9, is amended to read:
Subd. 9. [AWARDS.] An
undergraduate student who meets the office's requirements is eligible to apply
for and receive a grant in any year of undergraduate study unless the student
has obtained a baccalaureate degree or previously has been enrolled full time
or the equivalent for eight semesters or the equivalent, excluding courses
taken from a Minnesota school or postsecondary institution which is not
participating in the state grant program and from which a student transferred
no credit. A student who withdraws
from enrollment for active military service is entitled to an additional
semester or the equivalent of grant eligibility. A student enrolled in a two-year program at a four-year
institution is only eligible for the tuition and fee maximums established by
law for two-year institutions.
Sec. 21.
Minnesota Statutes 2004, section 136A.121, subdivision 13, is amended to
read:
Subd. 13. [DEADLINE.]
The deadline for the office to accept applications for state grants for a term
is 14 30 days after the start of that term.
Sec. 22. Minnesota
Statutes 2004, section 136A.121, is amended by adding a subdivision to read:
Subd. 18.
[DATA.] (a) An eligible institution must provide to the office data
on student enrollment and federal and state financial aid.
(b) An institution or its agent must provide to the office
aggregate and distributional financial or other data as determined by the
director that is directly related to the responsibilities of the office under
this chapter and chapter 141. The
director may only request aggregate and distributional data after establishing
and consulting with a data advisory task force to determine the need, content,
and detail of the information. Data
provided by nonpublic institutions under this paragraph is considered nonpublic
data under chapter 13.
Sec. 23. Minnesota
Statutes 2004, section 136A.125, subdivision 2, is amended to read:
Subd. 2. [ELIGIBLE
STUDENTS.] (a) An applicant is eligible for a child care grant if the
applicant:
(1) is a resident of the state of Minnesota;
(2) has a child 12 years of age or younger, or 14 years of age
or younger who is handicapped as defined in section 125A.02, and who is
receiving or will receive care on a regular basis from a licensed or legal,
nonlicensed caregiver;
(3) is income eligible as determined by the office's policies
and rules, but is not a recipient of assistance from the Minnesota family
investment program;
(4) has not earned a baccalaureate degree and has been enrolled
full time less than eight semesters or the equivalent;
(5) is pursuing a nonsectarian program or course of study that
applies to an undergraduate degree, diploma, or certificate;
(6) is enrolled at least half time in an eligible institution;
and
(7) is in good academic standing and making satisfactory academic
progress.
(b) A student who withdraws from enrollment for active
military service is entitled to an additional semester or the equivalent of
grant eligibility.
Sec. 24. Minnesota
Statutes 2004, section 136A.125, subdivision 4, is amended to read:
Subd. 4. [AMOUNT AND
LENGTH OF GRANTS.] The amount of a child care grant must be based on:
(1) the income of the applicant and the applicant's spouse;
(2) the number in the applicant's family, as defined by the
office; and
(3) the number of eligible children in the applicant's family.
The maximum award to the applicant shall be $2,200
$2,300 for each eligible child per academic year, except that the campus
financial aid officer may apply to the office for approval to increase grants
by up to ten percent to compensate for higher market charges for infant care in
a community. The office shall develop
policies to determine community market costs and review institutional requests
for compensatory grant increases to ensure need and equal treatment. The office shall prepare a chart to show the
amount of a grant that will be awarded per child based on the factors in this
subdivision. The chart shall include a
range of income and family size.
Sec. 25. Minnesota
Statutes 2004, section 136A.1701, is amended by adding a subdivision to read:
Subd. 11.
[DATA.] (a) An eligible institution must provide to the office data
on student enrollment and federal and state financial aid.
(b) An institution or its agent must provide to the office
aggregate and distributional financial or other data as determined by the
director that is directly related to the responsibilities of the office under
this chapter and chapter 141. The
director may only request aggregate and distributional data after establishing
and consulting with a data advisory task force to determine the need, content,
and detail of the information. Data
provided by nonpublic institutions under this paragraph is considered nonpublic
data under chapter 13.
Sec. 26. Minnesota
Statutes 2004, section 136A.1701, is amended by adding a subdivision to read:
Subd. 12.
[ELIGIBLE STUDENT.] "Eligible student" means a student who
is a Minnesota resident who is enrolled or accepted for enrollment at an
eligible institution in Minnesota or in another state or province. Non-Minnesota residents are eligible
students if they are enrolled or accepted for enrollment in a minimum of one
course of at least 30 days in length during the academic year that requires
physical attendance at an eligible institution located in Minnesota. Non-Minnesota resident students enrolled
exclusively during the academic year in correspondence courses or courses
offered over the Internet are not eligible students. Non-Minnesota resident students not physically attending classes
in Minnesota due to enrollment in a study abroad program for 12 months or less
are eligible students. Non-Minnesota
residents enrolled in study abroad programs exceeding 12 months are not
eligible students. For purposes of this
section, an "eligible student" must also meet the eligibility
requirements of section 136A.15, subdivision 8.
Sec. 27. [136A.1703]
[INCOME-CONTINGENT LOANS.]
The office shall administer an income-contingent loan
repayment program to assist graduates of Minnesota schools in medicine,
dentistry, pharmacy, chiropractic medicine, public health, and veterinary
medicine, and Minnesota residents graduating from optometry and osteopathy
programs. Applicant data collected by
the office for this program may be disclosed to a consumer credit reporting
agency under the same conditions as those that apply to the supplemental loan
program under section 136A.162. No new
applicants may be accepted after June 30, 1995.
Sec. 28. [136A.1785]
[LOAN CAPITAL FUND.]
The office may deposit and hold assets derived from the
operation of its student loan programs authorized by this chapter in a fund
known as the loan capital fund. Assets
in the loan capital fund are available to the office solely for carrying out
the purposes and terms of sections 136A.15 to 136A.1703, including, but not
limited to, making student loans authorized by this chapter, paying
administrative expenses associated with the operation of its student loan
programs, repurchasing defaulted student loans, and paying expenses in
connection with the issuance of revenue bonds authorized under this
chapter. Assets in the loan capital
fund may be invested as provided in sections 11A.24 and 136A.16, subdivision 8. All interest and earnings from the
investment of the loan capital fund inure to the benefit of the fund and are
deposited into the fund.
Sec. 29. [136A.861] [INTERVENTION FOR COLLEGE
ATTENDANCE PROGRAM GRANTS.]
Subdivision 1.
[GRANTS.] The director of the Higher Education Services Office shall
award grants to foster postsecondary attendance by providing outreach services
to historically underserved students in grades six through 12. Grants must be awarded to programs that
provide precollege services, including, but not limited to:
(1) academic counseling;
(2) mentoring;
(3) fostering and improving parental involvement in planning
for and facilitating a college education;
(4) services for students with English as a second language;
(5) academic enrichment activities;
(6) tutoring;
(7) career awareness and exploration;
(8) orientation to college life;
(9) assistance with high school course selection and
information about college admission requirements; and
(10) financial aid counseling.
Grants shall be awarded to postsecondary institutions,
professional organizations, community-based organizations, or others deemed
appropriate by the director.
Grants shall be awarded for one year and may be renewed for
a second year with documentation to the Higher Education Services Office of
successful program outcomes.
Subd. 2.
[ELIGIBLE STUDENTS.] Eligible students include students in grades six
through 12 who meet one or more of the following criteria:
(1) are counted under section 1124(c) of the Elementary and
Secondary Education Act of 1965 (Title I);
(2) are eligible for free or reduced-price lunch under the
National School Lunch Act;
(3) receive assistance under the Temporary Assistance for
Needy Families Law (Title I of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996); or
(4) are a member of a group traditionally underrepresented
in higher education.
Subd. 3.
[APPLICATION PROCESS.] The director of the Higher Education Services
Office shall develop a grant application process. The director shall attempt to support projects in a manner that
ensures that eligible students throughout the state have access to precollege
services.
The grant application must
include, at a minimum, the following information:
(1) a description of the characteristics of the students to
be served reflective of the need for services listed in subdivision 1;
(2) a description of the services to be provided and a
timeline for implementation of the activities;
(3) a description of how the services provided will foster
postsecondary attendance;
(4) a description of how the services will be evaluated to
determine whether the program goals were met; and
(5) other information as identified by the director.
Grant recipients must
specify both program and student outcome goals, and performance measures for
each goal.
Subd. 4. [MATCH
REQUIRED.] Applicants are required to match the grant amount
dollar-for-dollar. The match may be in
cash or an in-kind contribution.
Subd. 5. [REVIEW
COMMITTEE.] The director must establish and convene a grant selection
committee to review applications and award grants. The members of the committee may include representatives of
postsecondary institutions, school districts, organizations providing
precollege outreach services, and others deemed appropriate by the director.
Subd. 6.
[PROGRAM EVALUATION.] Each grant recipient must annually submit a
report to the Higher Education Services Office delineating its program and
student outcome goals, and activities implemented to achieve the stated
outcomes. The goals must be clearly
stated and measurable. Grant recipients
are required to collect, analyze, and report on participation and outcome data
that enable the office to verify that the program goals were met. The office shall maintain:
(1) information about successful precollege program
activities for dissemination to individuals throughout the state interested in
adopting or replicating successful program practices; and
(2) data on the success of the funded projects in increasing
the high school graduation and college participation rates of students served
by the grant recipients. The office may
convene meetings of the grant recipients, as needed, to discuss issues pertaining
to the implementation of precollege services.
Subd. 7.
[REPORT.] By January 15 of each odd-numbered year, the office shall
submit a report to the committees in the legislature with jurisdiction over
higher education finance regarding the grant recipients and their
activities. The report shall include
information about the students served, the organizations providing services,
program activities, program goals and outcomes, and program revenue sources and
funding levels.
Sec. 30. Minnesota
Statutes 2004, section 136F.04, subdivision 4, is amended to read:
Subd. 4.
[RECOMMENDATIONS.] Each student association shall recommend at least two
and not more than four candidates for its student member. By January 2 April 15 of the
year in which its members' term expires, each student association shall submit
its recommendations to the governor.
The governor is not bound by these recommendations.
Sec. 31. [136F.31] [CENTERS OF EXCELLENCE.]
Subdivision 1.
[BOARD DESIGNATION.] The board must designate at least three and up
to eight different program centers of excellence. The board must determine the form and required information
contained in applications from member institutions.
Subd. 2. [CENTER
SELECTION CRITERIA.] The board must select programs based on institutional
proposals demonstrating:
(1) the capacity to build multistate regional or national
recognition of the program within five years;
(2) a commitment to expanding the influence of the center to
improve results in related programs in participating institutions;
(3) the capacity to improve employment placement and income
expectations of graduates from the program;
(4) a strong partnership between a four-year and at least
one two-year institution that maximizes the leverage of academic and training
capacities in each institution;
(5) a comprehensive academic plan that includes a seamless
continuum of academic offerings in the program area that supports career
development at multiple levels in related employment fields;
(6) a specific development plan that includes a description
of how the institution will pursue continuous improvement and accountability;
(7) identified commitments from employers that include
measurable financial and programmatic commitment to the center of excellence on
the part of employers who will benefit from the development of the center. A center for teacher education must
demonstrate support from local school districts;
(8) a commitment from the institution that the new
designated funding will not supplant current budgets from related programs;
(9) a strong existing program upon which the proposed center
will build; and
(10) a separate fund for donations dedicated for the program
within current institutional foundations.
The board may adopt additional criteria that promote general
goals of the centers. The board shall
give priority to programs that integrate the academic and training outcomes of
the center with business clusters that have a significant multiplier effect on
the state's economy based on projections of job, income, or general economic
growth. The board shall consult with
the Department of Employment and Economic Development to identify these
clusters and the potential economic impact of developing a center for excellence.
Subd. 3.
[ADVISORY COMMITTEE AND REPORTS REQUIRED.] A center of excellence
must create an advisory committee representing local, statewide, and national
leaders in the field. By January 15 of
each odd-numbered year, each designated center must provide a report to the
governor and the chairs of committees of the legislature with jurisdiction over
higher education finance, that includes annual and integrated data on program
enrollment, student demographics, student admission data, endowment growth,
graduation rates, graduation outcomes, employer involvement, indicators of
student or graduate employment success, and other outcomes as determined by the
board. After a center has been in
existence for three years, the report must include measures of the program's
impact on the local economy.
Sec. 32. Minnesota Statutes 2004, section 136F.32,
subdivision 2, is amended to read:
Subd. 2. [TECHNICAL AND
CONSOLIDATED TECHNICAL COLLEGES.] (a) A technical college or consolidated
technical community college shall offer students the option of pursuing
diplomas and or certificates in each technical education program,
unless the board determines that a degree is the only acceptable credential for
career entry in a specific field. All
vocational and technical credits earned for a diploma or certificate shall be
applicable toward any available degree in the same program.
(b) Certificates and diplomas are credentials that demonstrate
competence in a vocational or technical area and, therefore, may include a
general education component only as part of an articulation agreement or to
meet occupational requirements as established by the trade or profession, or by
the program advisory committee.
Students shall be provided with applied training in general studies as
necessary for competence in the program area.
Students who have earned a certificate or diploma may earn a degree in
the same field if they complete the general education and other degree
requirements.
Sec. 33. Minnesota
Statutes 2004, section 136G.03, subdivision 3, is amended to read:
Subd. 3. [ACCOUNT
OWNER.] "Account owner" means a person who enters into a
participation agreement and is entitled to select or change conduct
transactions on the account, including selecting and changing the
beneficiary of an account or to receive and receiving
distributions from the account for other than payment of qualified higher
education expenses.
Sec. 34. Minnesota
Statutes 2004, section 136G.03, subdivision 21a, is amended to read:
Subd. 21a. [MINOR TRUST
ACCOUNT.] "Minor trust account" means a Uniform Gift to Minors Act
account, or a Uniform Transfers to Minors Act account, or a
trust instrument naming a minor person as beneficiary, created and
operating under the laws of Minnesota or another state.
Sec. 35. Minnesota
Statutes 2004, section 136G.03, subdivision 22, is amended to read:
Subd. 22. [NONQUALIFIED
DISTRIBUTION.] "Nonqualified distribution" means a distribution made
from an account other than (1) a qualified distribution; or (2) a distribution
due to the death or disability of, or scholarship to, or attendance at a
United States military academy by, a beneficiary.
Sec. 36. Minnesota
Statutes 2004, section 136G.03, subdivision 32, is amended to read:
Subd. 32.
[SCHOLARSHIP.] "Scholarship" means a scholarship, or
educational assistance allowance, or payment under section 529(b)(3)(C)
of the Internal Revenue Code.
Sec. 37. Minnesota
Statutes 2004, section 136G.05, subdivision 8, is amended to read:
Subd. 8.
[ADMINISTRATION.] The director shall administer the program, including
accepting and processing applications, maintaining account records, making
payments, making matching grants under section 136G.11, and undertaking any
other necessary tasks to administer the program. The office may contract with one or more third parties to carry
out some or all of these administrative duties, including promotion providing
incentives and marketing of the program. The office and the board may jointly contract with third-party
providers, if the office and board determine that it is desirable to contract
with the same entity or entities for administration and investment management.
Sec. 38.
Minnesota Statutes 2004, section 136G.09, subdivision 11, is amended to
read:
Subd. 11. [EFFECT OF
PLAN CHANGES ON PARTICIPATION AGREEMENT.] Amendments to sections 136G.01 to
136G.13 automatically amend the participation agreement. Any amendments to the operating procedures
and policies of the plan shall automatically amend the participation
agreement 30 days after adoption by the office or the board.
Sec. 39. Minnesota
Statutes 2004, section 136G.09, subdivision 12, is amended to read:
Subd. 12. [SPECIAL
ACCOUNT TO HOLD PLAN ASSETS IN TRUST.] All assets of the plan, including
contributions to accounts and matching grant accounts and earnings, are held in
trust for the exclusive benefit of account owners and beneficiaries. Assets must be held in a separate account in
the state treasury to be known as the Minnesota college savings plan account or
in accounts with the third party provider selected pursuant to section 136G.05,
subdivision 8. Plan assets are not
subject to claims by creditors of the state, are not part of the general fund,
and are not subject to appropriation by the state. Payments from the Minnesota college savings plan account shall be
made under sections 136G.01 to 136G.13.
Sec. 40. Minnesota
Statutes 2004, section 136G.11, subdivision 1, is amended to read:
Subdivision 1.
[MATCHING GRANT QUALIFICATION.] By June 30 of each year, a state
matching grant must be added to each account established under the program if
the following conditions are met:
(1) the contributor applies, in writing in a form prescribed by
the director, for a matching grant;
(2) a minimum contribution of $200 was made during the
preceding calendar year; and
(3) the beneficiary's family meets Minnesota college savings
plan residency requirements; and
(4) the family income of the beneficiary did not exceed
$80,000.
Sec. 41. Minnesota
Statutes 2004, section 136G.11, subdivision 2, is amended to read:
Subd. 2. [FAMILY
INCOME.] (a) For purposes of this section, "family income" means:
(1) if the beneficiary is under age 25, the combined adjusted
gross income of the beneficiary's parents or legal guardians as reported on the
federal tax return or returns for the calendar year in which contributions were
made. If the beneficiary's parents or
legal guardians are divorced, the income of the parent claiming the
beneficiary as a dependent on the federal individual income tax return and the
income of that parent's spouse, if any, is used to determine family income; or
(2) if the beneficiary is age 25 or older, the combined
adjusted gross income of the beneficiary and spouse, if any.
(b) For a parent or legal guardian of beneficiaries under age
25 and for beneficiaries age 25 or older who resided in Minnesota and filed a
federal individual income tax return, the matching grant must be based on
family income from the calendar year in which contributions were made.
Sec. 42.
Minnesota Statutes 2004, section 136G.11, subdivision 3, is amended to
read:
Subd. 3. [RESIDENCY
REQUIREMENT.] (a) If the beneficiary is under age 25, the beneficiary's parents
or legal guardians must be Minnesota residents to qualify for a matching
grant. If the beneficiary is age 25 or
older, the beneficiary must be a Minnesota resident to qualify for a matching
grant.
(b) To meet the residency requirements, the parent or legal
guardian of beneficiaries under age 25 must have filed a Minnesota individual
income tax return as a Minnesota resident and claimed the beneficiary as a
dependent on the parent or legal guardian's federal tax return for the calendar
year in which contributions were made. If
the beneficiary's parents are divorced, the parent or legal guardian claiming
the beneficiary as a dependent on the federal individual income tax return must
be a Minnesota resident. For
beneficiaries age 25 or older, the beneficiary, and a spouse, if any, must have
filed a Minnesota and a federal individual income tax return as a Minnesota
resident for the calendar year in which contributions were made.
(c) A parent of beneficiaries under age 25 and beneficiaries
age 25 or older who did not reside in Minnesota in the calendar year in which
contributions were made are not eligible for a matching grant.
Sec. 43. Minnesota
Statutes 2004, section 136G.11, subdivision 13, is amended to read:
Subd. 13. [FORFEITURE
OF MATCHING GRANTS.] (a) Matching grants are forfeited if:
(1) the account owner transfers the total account balance of an
account to another account or to another qualified tuition program;
(2) the beneficiary receives a full tuition scholarship or admission
to is attending a United States service academy;
(3) the beneficiary dies or becomes disabled;
(4) the account owner changes the beneficiary of the account;
or
(5) the account owner closes the account with a nonqualified
withdrawal.
(b) Matching grants must be proportionally forfeited if:
(1) the account owner transfers a portion of an account to
another account or to another qualified tuition program;
(2) the beneficiary receives a scholarship covering a portion
of qualified higher education expenses; or
(3) the account owner makes a partial nonqualified withdrawal.
(c) If the account owner makes a misrepresentation in a
participation agreement or an application for a matching grant that results in
a matching grant, the matching grant associated with the misrepresentation is
forfeited. The office and the board
must instruct the plan administrator as to the amount to be forfeited from the
matching grant account. The office and
the board must withdraw the matching grant or the proportion of the matching
grant that is related to the misrepresentation.
Sec. 44.
Minnesota Statutes 2004, section 136G.13, subdivision 1, is amended to
read:
Subdivision 1.
[QUALIFIED DISTRIBUTION METHODS.] (a) Qualified distributions may be
made:
(1) directly to participating eligible educational institutions
on behalf of the beneficiary; or
(2) in the form of a check payable to both the beneficiary and
the eligible educational institution; or
(3) directly to the account owner or beneficiary if the
account owner or beneficiary has already paid qualified higher education
expenses.
(b) Qualified distributions must be withdrawn proportionally
from contributions and earnings in an account owner's account on the date of
distribution as provided in section 529 of the Internal Revenue Code.
Sec. 45. Minnesota
Statutes 2004, section 136G.13, subdivision 5, is amended to read:
Subd. 5. [DISTRIBUTIONS
DUE TO DEATH OR DISABILITY OF, OR SCHOLARSHIP TO, OR ATTENDANCE AT A UNITED
STATES MILITARY ACADEMY BY, A BENEFICIARY.] An account owner may request a
distribution due to the death or disability of, or scholarship to, or
attendance at a United States military academy by, a beneficiary from an
account by submitting a completed request to the plan. Prior to distribution, the account owner
shall certify the reason for the distribution and provide written confirmation
from a third party that the beneficiary has died, become disabled, or received
a scholarship for attendance at an eligible educational institution, or is
attending a United States military academy. The plan must not consider a request to make a distribution until
a third-party written confirmation is received by the plan. For purposes of this subdivision, a
third-party written confirmation consists of the following:
(1) for death of the beneficiary, a certified copy of the
beneficiary's death record;
(2) for disability of the beneficiary, a certification by a
physician who is a doctor of medicine or osteopathy stating that the doctor is
legally authorized to practice in a state of the United States and that the
beneficiary is unable to attend any eligible educational institution because of
an injury or illness that is expected to continue indefinitely or result in
death. Certification must be on a form
approved by the plan; or
(3) for a scholarship award to the beneficiary, a letter from
the grantor of the scholarship or from the eligible educational institution
receiving or administering the scholarship, that identifies the beneficiary by
name and Social Security number or taxpayer identification number as the
recipient of the scholarship and states the amount of the scholarship, the
period of time or number of credits or units to which it applies, the date of
the scholarship, and, if applicable, the eligible educational institution to
which the scholarship is to be applied; or
(4) for attendance by the beneficiary at a United States
military academy, a letter from the military academy indicating the
beneficiary's enrollment and attendance.
Sec. 46. Minnesota
Statutes 2004, section 136G.14, is amended to read:
136G.14 [MINOR TRUST ACCOUNTS.]
(a) This section applies to a plan account in which funds of a
minor trust account are invested.
(b) The account owner may not be changed to any person other
than a successor custodian or the beneficiary unless a court order directing
the change of ownership is provided to the plan administrator. The custodian must sign all forms and
requests submitted to the plan administrator in the custodian's representative
capacity. The custodian must notify the
plan administrator in writing when the beneficiary becomes legally entitled to
be the account owner. An account owner
under this section may not select a contingent account owner.
(c) The beneficiary of an account under this section
may not be changed. If the beneficiary
dies, assets in a plan account become the property of the beneficiary's
estate. Funds in an account must not be
transferred or rolled over to another account owner or to an account for
another beneficiary. A nonqualified
distribution from an account, or a distribution due to the disability or
scholarship award to the beneficiary, or made on account of the
beneficiary's attendance at a United States military academy, must be used
for the benefit of the beneficiary.
Sec. 47. Minnesota
Statutes 2004, section 137.0245, subdivision 1, is amended to read:
Subdivision 1.
[ESTABLISHMENT.] A Regent Candidate Advisory Council is established to
assist the legislature in determining criteria for, and identifying and
recruiting qualified candidates for membership on the Board of Regents and
making recommendations to the governor.
Sec. 48. Minnesota
Statutes 2004, section 137.0245, subdivision 3, is amended to read:
Subd. 3. [DUTIES.] (a)
The advisory council shall:
(1) develop, in consultation with current and former regents
and the administration of the University of Minnesota, a statement of the
selection criteria to be applied and a description of the responsibilities and
duties of a regent, and shall distribute this to potential candidates; and
(2) for each position on the board, identify and recruit
qualified candidates for the Board of Regents, based on the background and
experience of the candidates, and their potential for discharging the
responsibilities of a member of the Board of Regents, and the needs of the
board. The selection criteria must not
include a limitation on the number of terms an individual may serve on the
Board of Regents.
(b) The selection criteria developed under paragraph (a),
clause (1), must include a criterion that regents represent diversity in
geography; gender; race; occupation, including business and labor; and
experience.
(c) The selection criterion must include an identification
of the membership needs of the board for individual skills relevant to the
governance of the University of Minnesota and the needs for certain individual
characteristics. Individual
characteristics relate to qualities such as gender, race, and geographic
location of residence.
Sec. 49. Minnesota
Statutes 2004, section 137.0245, subdivision 4, is amended to read:
Subd. 4.
[RECOMMENDATIONS.] (a) The advisory council shall recommend at
least two and not more than four candidates.
By March 15 January 15 of each odd-numbered year, the
advisory council shall submit its recommendations to the president of the
senate and the speaker of the house of representatives. The legislature shall not be bound by these
recommendations governor.
(b) The advisory council must submit a report to the
governor on the needs criterion identified under subdivision 3, paragraph (c),
at the same time it submits its recommendations.
Sec. 50. [137.0246]
[REGENT NOMINATION AND ELECTION.]
Subdivision 1.
[GOVERNOR NOMINATION.] By February 15 following the receipt of
recommendations from the advisory council, the governor must submit to the
joint committee established under subdivision 2 a slate of regent nominations
that complies with sections 137.023 and 137.024. The slate must name one nominee for each vacancy. In selecting nominees, the governor must
consider the needs of the Board of Regents and the balance of the board
membership with respect to gender, racial, and ethnic composition. The governor must inform the joint committee
how each candidate and the slate meets the needs identified in the report under
section 137.0245, subdivision 4, paragraph (b).
Subd. 2.
[JOINT COMMITTEE.] (a) The joint legislative committee consists of 20
legislator members. Ten members shall
be appointed by the speaker of the house.
Ten members shall be appointed by the Subcommittee on Committees of the
Committee on Rules and Administration from the senate. An equal number of members from the majority
and minority party shall be appointed from each house. The members appointed from the minority
party must be appointed from among those recommended by the minority
leader. The chairs of the education
policy committees and of the higher education budget divisions and the ranking
minority member of those committees and divisions must be appointed. A majority of the members from each house is
a quorum of the joint committee.
(b) By February 28 of each odd-numbered year, or at a date
agreed to by concurrent resolution, the joint legislative committee shall meet
to consider the governor's nominees for regent of the University of Minnesota
for possible presentation to a joint convention of the legislature.
(c) The joint committee may only recommend to the joint
convention nominees recommended by the governor. If the joint committee does not recommend a governor's nominee,
the governor must submit a different nominee for the same vacancy.
Sec. 51. [144.1498]
[NURSING LOW-INCOME LOAN REPAYMENT.]
Subdivision 1.
[DEFINITION.] For purposes of this section, "qualifying
educational loans" means government, commercial, and foundation loans for
actual costs paid for tuition, reasonable education expenses, and reasonable
living expenses related to the graduate or undergraduate education of a
licensed practical nurse or registered nurse.
Subd. 2.
[CREATION OF ACCOUNT; LOAN REPAYMENT PROGRAM.] A low-income nursing
education account is created in the general fund. The commissioner of health shall use money from the account to
establish a loan repayment program for licensed practical or registered nurses
who agree to practice in a Minnesota nursing home or work in a position in
Minnesota as a nurse educator.
Appropriations made to the account do not cancel and are available until
expended.
Subd. 3.
[ELIGIBILITY.] (a) To be eligible to apply to participate in the loan
repayment program, an individual must:
(1) be a resident of Minnesota;
(2) currently be attending a program leading to a degree in
practical or registered nursing or a graduate nursing degree in a public or
private postsecondary education institution located in Minnesota; and
(3) submit an application to the commissioner of health.
(b) An applicant selected to participate must sign a
contract to agree to serve a minimum three-year, full-time service obligation
in a position or place of employment described in subdivision 2. The service must begin no later than March
31 following completion of required training.
If fewer applications are submitted by nursing students than there are
participant slots available, the commissioner may consider applications
submitted by nursing program graduates who are licensed or registered nurses or
nurses who are nurse educators. Nurses
selected for loan repayment assistance must comply with this section.
Subd. 4. [LOAN
REPAYMENT.] The commissioner of health may accept applicants each year for
participation in the loan repayment program, within the limits of available
funding. Applicants are responsible for
securing their own loans. The
commissioner shall select participants in a priority based upon lowest family
income, followed in order of ascending family income. Family income may be determined in the same manner as for state
grants under section 136A.121 or in another manner the commissioner determines
fairly represents family income. The
commissioner shall give preference to applicants closest to completing their
training. For each year that a participant
meets the service obligation required under subdivision 3, up to a maximum of
four years, the commissioner shall make annual disbursements directly to the
participant equivalent to 15 percent of the average educational debt for
indebted nursing school graduates in the year closest to the applicant's
selection for which information is available or the balance of the qualifying educational
loans, whichever is less. Before
receiving loan repayment disbursements and as requested, the participant must
complete and return to the commissioner an affidavit of practice form provided
by the commissioner verifying that the participant is practicing as required
under subdivision 3. The participant
must provide the commissioner with verification that the full amount of loan
repayment disbursement received by the participant has been applied toward the
designated loans. After each disbursement,
verification must be received by the commissioner and approved before the next
loan repayment disbursement is made.
Participants remain eligible for loan repayment as long as they practice
as required under subdivision 3.
Subd. 5.
[PENALTY FOR NONFULFILLMENT.] If a participant does not fulfill the
service commitment under subdivision 3, the commissioner of health shall
collect from the participant 100 percent of any payments made for qualified
educational loans and interest at a rate established according to section
270.75. The commissioner shall deposit
the money collected in the low-income nursing education account established
under subdivision 2.
Subd. 6.
[SUSPENSION OR WAIVER OF OBLIGATION.] Payment or service obligations
cancel in the event of a participant's death.
The commissioner of health may waive or suspend payment or service
obligations in cases of total and permanent disability or long-term temporary
disability lasting for more than two years.
The commissioner shall evaluate all other requests for suspension or
waivers on a case-by-case basis and may grant a waiver of all or part of the
money owed as a result of a nonfulfillment penalty if emergency circumstances
prevented fulfillment of the required service commitment.
Sec. 52. Minnesota
Statutes 2004, section 192.502, subdivision 1, is amended to read:
Subdivision 1.
[POSTSECONDARY STUDENTS.] (a) A member of the Minnesota National
Guard or any other military reserve component who is a As used in this
subdivision, the terms "qualified person" and "qualified
student" have the same meaning and include:
(1) any student at a postsecondary education educational
institution and who is called or ordered to state into
active military service in the Minnesota National Guard, as defined
in section 190.05, subdivision 5, or who is called or ordered to federal
active military service; and
(2) a veteran, as defined in section 197.447, who has a
service-connected disability as certified by the United States Department of
Veterans Affairs, who is a student at a postsecondary educational institution,
and whose service connected medical condition or medical treatment requirements
reasonably prevent the person's attendance at or progress in part or all of the
person's higher educational training or studies at any given time. The terms "medical condition" and
"medical treatment requirements" must be broadly construed and
without regard for whether or not they relate directly to the person's
service-connected disability.
(b) A qualified person or qualified student has the
following rights:
(1) with regard to courses in which the person is enrolled, the
person may:
(i) withdraw from one or more courses for which tuition and
fees have been paid that are attributable to the courses. The tuition and fees must be credited to the
person's account at the postsecondary institution. Any refunds are subject to the requirements of the state or
federal financial aid programs of origination.
In such a case, the student must not receive credit for the courses and
must not receive a failing grade, an incomplete, or other negative annotation
on the student's record, and the student's grade point average must not be
altered or affected in any manner because of action under this item;
(ii) be given a grade of
incomplete and be allowed to complete the course upon release from active duty
service, upon completion of medical treatment, or upon sufficient medical
recovery under the postsecondary institution's standard practice for
completion of incompletes; or
(iii) continue and complete the course for full credit. Class sessions the student misses due to
performance of state or federal active military service or due to the
person's medical treatment or medical condition must be counted as excused
absences and must not be used in any way to adversely impact the student's
grade or standing in the class. Any
student who selects this option is not, however, automatically excused from
completing assignments due during the period the student is performing state
or federal active military service or receiving medical treatment or
recovering from a medical condition.
A letter grade or a grade of pass must only be awarded only
if, in the opinion of the faculty member teaching the course, the student has
completed sufficient work and has demonstrated sufficient progress toward
meeting course requirements to justify the grade;
(2) to receive a refund of amounts paid for room, board, and
fees attributable to the time period during which the student was serving in state
or federal active military service or receiving medical treatment or
dealing with the person's medical condition and did not use the facilities
or services for which the amounts were paid.
Any refund of room, board, and fees is subject to the requirements of
the state or federal financial aid programs of origination; and
(3) if the student chooses to withdraw, the student has the
right to be readmitted and reenrolled as a student at the postsecondary
education institution, without penalty or redetermination of admission
eligibility, within one year two years following release from the
state or federal active military service or following completion of medical
treatment or sufficient recovery from the person's medical condition.
(b) (c) The protections in this section may be
invoked as follows:
(1) the qualified person or qualified student, or
an appropriate officer from the military organization in which the person will
be serving, or an appropriate medical authority or the person's authorized
caregiver or family member, must give advance verbal or written notice that
the person is being called or ordered to qualifying active
military service or will be undertaking medical treatment or a period of
recovery for a medical condition;
(2) advance notice is not required if the giving of notice is
precluded by military or medical necessity or, under all the relevant
circumstances, the giving of notice is impossible or unreasonable; and
(3) upon written request from the postsecondary institution,
the person must provide written verification of the order to active
service or of the existence of the medical condition or medical treatment.
(c) (d) This section provides minimum protections
for qualified students. Nothing
in this section prevents postsecondary institutions from providing additional
options or protections to students who are called or ordered to state
or federal active military service or are undertaking medical treatment
or a period of recovery from a medical condition.
[EFFECTIVE DATE.] This
section is effective the day following final enactment.
Sec. 53. Minnesota
Statutes 2004, section 299A.45, subdivision 1, is amended to read:
Subdivision 1.
[ELIGIBILITY.] Following certification under section 299A.44 and compliance
with this section and rules of the commissioner of public safety and the higher
education services office, dependent children less than 23 years of age and the
surviving spouse of a public safety officer killed in the line of duty on or
after January 1, 1973, are eligible to receive educational benefits under this
section. To qualify for an award, they
must be enrolled in undergraduate degree or certificate programs after June 30,
1990, at an eligible Minnesota institution as provided in section 136A.101,
subdivision 4. A student who
withdraws from enrollment for active military service is entitled to
an additional semester or the equivalent of grant eligibility. Persons who have received a baccalaureate
degree or have been enrolled full time or the equivalent of ten semesters or
the equivalent, whichever occurs first, are no longer eligible.
Sec. 54. Minnesota
Statutes 2004, section 299A.45, subdivision 4, is amended to read:
Subd. 4. [RENEWAL.]
Each award must be given for one academic year and is renewable for a maximum
of eight semesters or the equivalent. A
student who withdraws from enrollment for active military service is entitled
to an additional semester or the equivalent of grant eligibility. An award must not be given to a dependent
child who is 23 years of age or older on the first day of the academic year.
Sec. 55. [583.215]
[EXPIRATION.]
(a) Sections 336.9-601, subsections (h) and (i); 550.365;
559.209; 582.039; and 583.20 to 583.32, expire June 30, 2009.
(b) Laws 1986, chapter 398, article 1, section 18, as
amended, is repealed.
[EFFECTIVE DATE.] This
section is effective the day following final enactment.
Sec. 56. [RECIPROCITY
NEGOTIATIONS.]
Subdivision 1.
[SOUTH DAKOTA.] The Higher Education Services Office must examine
reinstating interstate payments in the Minnesota-South Dakota reciprocity
program while maintaining the tuition reciprocity agreement. The office must examine the advantages and
disadvantages of computing interstate payments under the reciprocity agreement
and the impact of interstate payments on participating students, institutions,
and the general funds of the two states.
The office must report on the impacts of reinstating reciprocity
payments to the committees of the legislature with responsibility for higher
education by January 15, 2006.
Subd. 2.
[WISCONSIN.] The Higher Education Services Office must, as soon as
possible, commence negotiations with the state of Wisconsin on the tuition
reciprocity agreement. The negotiations
must include the issue of the disparity between the tuition paid by Wisconsin
residents and Minnesota residents at campuses of the University of Minnesota
with a goal of reducing or eliminating the disparity.
This section does not mandate the inclusion of any
particular term in a tuition reciprocity agreement.
Sec. 57. [ADVISORY TASK
FORCE ON PUBLIC POSTSECONDARY FUNDING.]
The Higher Education Services Office shall convene an
advisory task force to study the current postsecondary funding policy under Minnesota
Statutes, sections 135A.01 to 135A.034.
The task force must include the chief financial officers of the
University of Minnesota and the Minnesota State Colleges and Universities, and
the commissioner of finance, or their designees. The task force may include other members as selected by the
Higher Education Services Office. The
task force must study and make specific recommendations on alternatives to the
methods currently used by the postsecondary systems to implement the provisions
of Minnesota Statutes, section 135A.031, subdivision 4. The task force must submit its
recommendations to the legislature and the governor by January 15, 2006. The task force expires on June 30, 2007.
Sec. 58. [ALTERNATIVE
FORMAT INSTRUCTIONAL MATERIAL NETWORK.]
The Higher Education Services Office must convene a group
with representatives from publishers of postsecondary instructional materials,
the Association of American Publishers (AAP), the Minnesota State Colleges and
Universities, the University of Minnesota, all sectors of private postsecondary
education, and Minnesota State Services
for the Blind to develop a network to make available postsecondary
instructional material in an electronic format or to identify other solutions,
such as a national system, to address the specialized format needs of
postsecondary students with disabilities.
The material available through the network must be made available to
Minnesota postsecondary institutions and to postsecondary students with
disabilities that require a reading accommodation. The group must establish standards for the instructional material
that is available through the network.
Instructional material must be in a format that is compatible with
assistive technology used by students who require a reading accommodation. Instructional material includes, but is not
limited to, commercially printed materials published or produced primarily for
use by students in postsecondary educational courses. Instructional materials also include materials produced by postsecondary
institutions, as defined by the group, for use in conjunction with a course of
study. The Higher Education Services
Office must report to the committees in the house of representatives and senate
with responsibility for higher education finance by January 15, 2006, on
progress in developing the network and with recommendations on methods to meet
the needs of students for instructional materials in alternative formats.
Sec. 59. [APPLICATION
OF ELIGIBILITY.]
The additional semester or the equivalent of grant
eligibility under sections 20, 23, 53, and 54 applies to any student who
withdrew from enrollment in a postsecondary institution after December 31,
2002, because the student was ordered to active military service as defined in
Minnesota Statutes, section 190.05, subdivision 5b or 5c.
Sec. 60. [REVISOR'S
INSTRUCTION.]
The revisor of statutes shall change the terms
"HESO" and "Higher Education Services Office" to
"Minnesota Office of Higher Education" wherever in Minnesota Statutes
and Minnesota Rules the terms appear.
Sec. 61. [REPEALER.]
(a) Minnesota Statutes 2004, sections 136A.011, and
136A.031, subdivision 1, are repealed.
(b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120;
4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120;
4830.8130; 4830.8140; and 4830.8150, are repealed.
ARTICLE
3
PRIVATE
CAREER SCHOOLS
Section 1. Minnesota
Statutes 2004, section 141.21, is amended by adding a subdivision to read:
Subd. 6a.
[MULTIPLE LOCATION.] "Multiple location" means any site
where classes or administrative services are provided to students and which has
a street address that is different than the street address found on the
school's private career school license.
Sec. 2. Minnesota
Statutes 2004, section 141.25, subdivision 3, is amended to read:
Subd. 3. [APPLICATION.]
Application for a license shall be on forms prepared and furnished by the
office, and shall include the following and other information as the office may
require:
(1) the title or name of the school, ownership and controlling
officers, members, managing employees, and director;
(2) the specific programs which will be offered and the
specific purposes of the instruction;
(3) the place or places where the
instruction will be given;
(4) a listing of the equipment available for instruction in
each program;
(5) the maximum enrollment to be accommodated with equipment
available in each specified program;
(6) the qualifications of instructors and supervisors in each
specified program;
(7) a current balance sheet, income statement, and adequate
supporting documentation, prepared and certified by an independent public
accountant or CPA;
(8) copies of all media advertising and promotional literature
and brochures or electronic display currently used or reasonably expected to be
used by the school;
(9) copies of all Minnesota enrollment agreement forms and
contract forms and all enrollment agreement forms and contract forms used in
Minnesota; and
(10) gross income earned in the preceding year from student
tuition, fees, and other required institutional charges, unless the school
files with the office a surety bond equal to at least $50,000 $250,000
as described in subdivision 5.
Sec. 3. Minnesota
Statutes 2004, section 141.25, subdivision 5, is amended to read:
Subd. 5. [BOND.] (a) No
license shall be issued to any school which maintains, conducts, solicits for,
or advertises within the state of Minnesota any program, unless the applicant
files with the office a continuous corporate surety bond written by a company
authorized to do business in Minnesota conditioned upon the faithful
performance of all contracts and agreements with students made by the
applicant.
(b) The amount of the surety bond shall be ten percent of the
preceding year's gross income from student tuition, fees, and other required
institutional charges, but in no event less than $10,000 nor greater than $50,000
$250,000, except that a school may deposit a greater amount at its own
discretion. A school in each annual
application for licensure must compute the amount of the surety bond and verify
that the amount of the surety bond complies with this subdivision, unless the
school maintains a surety bond equal to at least $50,000 $250,000. A school that operates at two or more
locations may combine gross income from student tuition, fees, and other
required institutional charges for all locations for the purpose of determining
the annual surety bond requirement. The
gross tuition and fees used to determine the amount of the surety bond required
for a school having a license for the sole purpose of recruiting students in
Minnesota shall be only that paid to the school by the students recruited from
Minnesota.
(c) The bond shall run to the state of Minnesota and to any
person who may have a cause of action against the applicant arising at any time
after the bond is filed and before it is canceled for breach of any contract or
agreement made by the applicant with any student. The aggregate liability of the surety for all breaches of the
conditions of the bond shall not exceed the principal sum deposited by the
school under paragraph (b). The surety
of any bond may cancel it upon giving 60 days' notice in writing to the office and
shall be relieved of liability for any breach of condition occurring after the
effective date of cancellation.
(d) In lieu of bond, the applicant may deposit with the
commissioner of finance a sum equal to the amount of the required surety bond
in cash, or securities as may be legally purchased by savings banks or for
trust funds in an aggregate market value equal to the amount of the required
surety bond.
(e) Failure of a school to post and maintain the
required surety bond or deposit under paragraph (d) may result in denial,
suspension, or revocation of the school's license.
Sec. 4. Minnesota
Statutes 2004, section 141.25, subdivision 8, is amended to read:
Subd. 8. [FEES AND
TERMS OF LICENSE.] An application for an initial license under sections 141.21
to 141.35 shall be accompanied by a nonrefundable application fee established
by the office as provided in section 141.255 that is sufficient to
recover, but not exceed, its the administrative costs of the
office.
All licenses shall expire one year from the date issued by the
office, except as provided in section 141.251.
Sec. 5. Minnesota
Statutes 2004, section 141.25, subdivision 9, is amended to read:
Subd. 9. [CATALOG,
BROCHURE, OR ELECTRONIC DISPLAY.] Before a license is issued to a school, the
school shall furnish to the office a catalog, brochure, or electronic display
including:
(1) identifying data, such as volume number and date of
publication;
(2) name and address of the school and its governing body and
officials;
(3) a calendar of the school showing legal holidays, beginning
and ending dates of each course quarter, term, or semester, and other important
dates;
(4) the school policy and regulations on enrollment including
dates and specific entrance requirements for each program;
(5) the school policy and regulations about leave, absences,
class cuts, make-up work, tardiness, and interruptions for unsatisfactory
attendance;
(6) the school policy and regulations about standards of
progress for the student including the grading system of the school, the
minimum grades considered satisfactory, conditions for interruption for
unsatisfactory grades or progress, a description of any probationary period
allowed by the school, and conditions of reentrance for those dismissed for
unsatisfactory progress;
(7) the school policy and regulations about student conduct and
conditions for dismissal for unsatisfactory conduct;
(8) a detailed schedule of fees, charges for tuition, books,
supplies, tools, student activities, laboratory fees, service charges, rentals,
deposits, and all other charges;
(9) the school policy and regulations, including an explanation
of section 141.271, about refunding tuition, fees, and other charges if the
student does not enter the program, withdraws from the program, or the program
is discontinued;
(10) a description of the available facilities and equipment;
(11) a course outline syllabus for each course offered
showing course objectives, subjects or units in the course, type of work or
skill to be learned, and approximate time, hours, or credits to be spent on
each subject or unit;
(12) the school policy and regulations about granting credit
for previous education and preparation;
(13) a procedure for investigating and resolving
student complaints; and
(14) the name and address of the Minnesota Higher Education
Services Office.
A school that is exclusively a distance education school is
exempt from clauses (3) and (5).
Sec. 6. Minnesota
Statutes 2004, section 141.25, subdivision 12, is amended to read:
Subd. 12. [PERMANENT
RECORDS.] A school licensed under this chapter and located in Minnesota shall
maintain a permanent record for each student for 50 years from the last date of
the student's attendance. A school
licensed under this chapter and offering distance instruction to a student
located in Minnesota shall maintain a permanent record for each Minnesota
student for 50 years from the last date of the student's attendance. Records include school transcripts, documents,
and files containing student data about academic credits earned, courses
completed, grades awarded, degrees awarded, and periods of attendance. To preserve permanent records, a school
shall submit a plan that meets the following requirements:
(1) at least one copy of the records must be held in a secure,
fireproof depository;
(2) an appropriate official must be designated to provide a
student with copies of records or a transcript upon request;
(3) an alternative method, approved by the office, of
complying with clauses (1) and (2) must be established if the school ceases to
exist; and
(4) a continuous surety bond must be filed with the office in
an amount not to exceed $20,000 if the school has no binding agreement for
preserving student records or a trust must be arranged if the school ceases to
exist.
Sec. 7. Minnesota
Statutes 2004, section 141.251, is amended to read:
141.251 [LICENSE RENEWAL.]
Subdivision 1.
[APPLICATION.] Application for renewal of a license must be made at
least 30 60 days before expiration of the current license on a
form provided by the office. A renewal
application shall be accompanied by a nonrefundable fee established by the
office as provided in section 141.255 that is sufficient to recover,
but does not exceed, its the administrative costs of the
office.
Subd. 2. [CONDITIONS.]
The office shall adopt rules establishing the conditions for renewal of a
license. The conditions shall permit
two levels of renewal based on the record of the school. A school that has demonstrated the quality
of its program and operation through longevity and performance in the state may
renew its license based on a relaxed standard of scrutiny. A school that has been in operation in
Minnesota for a limited period of time or that has not performed adequately on
performance indicators shall renew its license based on a strict standard of
scrutiny. The office shall specify
minimum longevity standards and performance indicators that must be met before
a school may be permitted to operate under the relaxed standard of
scrutiny. The performance indicators
used in this determination shall include, but not be limited to: degree granting status, regional or
national accreditation, loan default rates, placement rate of graduates,
student withdrawal rates, audit results, student complaints, and school status
with the United States Department of Education. Schools that meet the requirements established in rule shall be
required to submit a full relicensure report once every four years, and in the
interim years will be exempt from the requirements of section 141.25,
subdivision 3, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700,
subpart 6; and 4880.2100, subpart 4.
Sec. 8.
[141.255] [FEES.]
Subdivision 1.
[INITIAL LICENSURE FEE.] The office processing fee for an initial
licensure application is:
(1) $1,500 for a school that will offer no more than one
program during its first year of operation;
(2) $2,000 for a school that will offer two or more nondegree
level programs during its first year of operation; and
(3) $2,500 for a school that will offer two or more degree
level programs during its first year of operation.
Subd. 2.
[RENEWAL LICENSURE FEE; LATE FEE.] (a) The office processing fee for
a renewal licensure application is:
(1) for a category A school, as determined by the office,
the fee is $865 if the school offers one program or $1,150 if the school offers
two or more programs; and
(2) for a category B or C school, as determined by the
office, the fee is $430 if the school offers one program or $575 if the school
offers two or more programs.
(b) If a license renewal application is not received by the
office by the close of business at least 60 days before the expiration of the current
license, a late fee of $100 per business day shall be assessed.
Subd. 3. [DEGREE
LEVEL ADDITION FEE.] The office processing fee for adding a degree level to
an existing program is $2,000 per program.
Subd. 4.
[PROGRAM ADDITION FEE.] The office processing fee for adding a
program that represents a significant departure in the objectives, content, or
method of delivery of programs that are currently offered by the school is $500
per program.
Subd. 5. [VISIT
OR CONSULTING FEE.] If the office determines that a fact-finding visit or
outside consultant is necessary to review or evaluate any new or revised
program, the office shall be reimbursed for the expenses incurred related to
the review as follows:
(1) $300 for the team base fee or for a paper review
conducted by a consultant if the office determines that a fact-finding visit is
not required;
(2) $300 for each day or part thereof on site per team
member; and
(3) the actual cost of customary meals, lodging, and related
travel expenses incurred by team members.
Subd. 6. [MODIFICATION FEE.] The fee for modification of any existing
program is $100 and is due if there is:
(1) an increase or decrease of 25 percent or more, from the
original date of program approval, in clock hours, credit hours, or calendar
length of an existing program;
(2) a change in academic measurement from clock hours to
credit hours or vice versa; or
(3) an addition or alteration of courses that represent a 25
percent change or more in the objectives, content, or methods of delivery.
Subd. 7.
[SOLICITOR PERMIT FEE.] The solicitor permit fee is $350 and must be
paid annually.
Subd. 8.
[MULTIPLE LOCATION FEE.] Schools wishing to operate at multiple
locations must pay:
(1) $250 per location, for two to five locations; and
(2) an additional $50 for each location over five.
Subd. 9.
[STUDENT TRANSCRIPT FEE.] The fee for a student transcript requested
from a closed school whose records are held by the office is $10, with a
maximum of five transcripts per request.
Subd. 10.
[PUBLIC OFFICE DOCUMENTS; COPIES.] The office shall establish rates
for copies of any public office document.
Sec. 9. Minnesota
Statutes 2004, section 141.26, subdivision 5, is amended to read:
Subd. 5. [FEE.] The initial
and renewal application for each permit shall be accompanied by a nonrefundable
fee as established by the office under section 141.255.
Sec. 10. Minnesota
Statutes 2004, section 141.271, is amended by adding a subdivision to read:
Subd. 1b. [SHORT-TERM PROGRAMS.] Licensed schools conducting programs not
exceeding 40 hours in length shall not be required to make a full refund once a
program has commenced and shall be allowed to prorate any refund based on the
actual length of the program as stated in the school catalog or advertisements
and the number of hours attended by the student.
Sec. 11. Minnesota
Statutes 2004, section 141.271, subdivision 4, is amended to read:
Subd. 4. [RESIDENT
SCHOOLS.] When a student has been accepted by a school offering a resident
program and gives written notice of cancellation, or the school has actual
notice of a student's nonattendance after the start of the period of
instruction for which the student has been charged, but before completion of 75
percent of the period of instruction, the amount charged for tuition, fees, and
all other charges shall be prorated based on number of days in the term
as a portion of the total charges for tuition, fees, and all other
charges. An additional 25 percent of
the total cost of the period of instruction may be added, but shall not exceed
$100. After completion of 75 percent of
the period of instruction for which the student has been charged, no refunds
are required.
Sec. 12. Minnesota
Statutes 2004, section 141.271, subdivision 7, is amended to read:
Subd. 7. [EQUIPMENT AND
SUPPLIES.] The fair market retail price, if separately stated in the catalog
and contract or enrollment agreement, of equipment or supplies furnished to the
student, which the student fails to return in condition suitable for resale,
and which may reasonably be resold, within ten business days following
cancellation may be retained by the school and may be deducted from the total
cost for tuition, fees and all other charges when computing refunds.
An overstatement of the fair market retail price of any
equipment or supplies furnished the student shall be considered inconsistent
with this provision.
Sec. 13. Minnesota
Statutes 2004, section 141.271, subdivision 10, is amended to read:
Subd. 10. [CANCELLATION
OCCURRENCE.] Written notice of cancellation shall take place on the date the
letter of cancellation is postmarked or, in the cases where the notice is hand
carried, it shall occur on the date the notice is delivered to the school. If a student has not attended classes for
a period of 21 consecutive days, the student is considered to have withdrawn
from school for all purposes as of the student's last documented date of
attendance.
Sec. 14. Minnesota Statutes 2004, section 141.271, is
amended by adding a subdivision to read:
Subd. 14.
[CLOSED SCHOOL.] In the event a school closes for any reason during a
term and interrupts and terminates classes during that term, all tuition for
the term shall be refunded to the students or the appropriate state or federal
agency or private lender that provided any funding for the term and any
outstanding obligation of the student for the term is canceled.
Sec. 15. Minnesota
Statutes 2004, section 141.28, subdivision 1, is amended to read:
Subdivision 1. [NOT TO
ADVERTISE STATE APPROVAL.] Schools, agents of schools, and solicitors may not
advertise or represent in writing or orally that such school is approved or
accredited by the state of Minnesota, except that any school, agent, or
solicitor may advertise that the school and solicitor have been duly licensed
by the state. using the following language:
"(Name of school) is
licensed as a private career school with the Minnesota Higher Education
Services Office. Licensure is not an endorsement
of the institution. Credits earned at
the institution may not transfer to all other institutions. The educational programs may not meet the
needs of every student or employer."
Sec. 16. Minnesota
Statutes 2004, section 141.28, is amended by adding a subdivision to read:
Subd. 6.
[FINANCIAL AID PAYMENTS.] (a) All schools must collect, assess, and
distribute funds received from loans or other financial aid as provided in this
subdivision.
(b) Student loans or other financial aid funds received from
federal, state, or local governments or administered in accordance with federal
student financial assistance programs under title IV of the Higher Education
Act of 1965, as amended, United States Code, title 20, chapter 28, must be
collected and applied as provided by applicable federal, state, or local law or
regulation.
(c) Student loans or other financial aid assistance received
from a bank, finance or credit card company, or other private lender must be
collected or disbursed as provided in paragraphs (d) and (e).
(d) Loans or other financial aid payments for amounts
greater than $3,000 must be disbursed:
(1) in two equal disbursements, if the term length is more
than four months. The loan or payment
amounts may be disbursed no earlier than the first day the student attends
class with the remainder to be disbursed halfway through the term; or
(2) in three equal disbursements, if the term length is more
than six months. The loan or payment
amounts may be disbursed no earlier than the first day the student attends
class, one-third of the way through the term, and two-thirds of the way through
the term.
(e) Loans or other financial aid payments for amounts less
than $3,000 may be disbursed as a single disbursement on the first day a
student attends class, regardless of term length.
(f) No school may enter into a contract or agreement with,
or receive any money from, a bank, finance or credit card company, or other
private lender, unless the private lender follows the requirements for
disbursements provided in paragraphs (d) and (e).
Sec. 17. Minnesota Statutes 2004, section 141.29,
subdivision 3, is amended to read:
Subd. 3. [POWERS AND
DUTIES.] The office shall have (in addition to the powers and duties now vested
therein by law) the following powers and duties:
(a) To negotiate and enter into interstate
reciprocity agreements with similar agencies in other states, if in the
judgment of the office such agreements are or will be helpful in effectuating
the purposes of Laws 1973, Chapter 714;
(b) To grant conditional school license for periods of less
than one year if in the judgment of the office correctable deficiencies exist
at the time of application and when refusal to issue school license would
adversely affect currently enrolled students;
(c) The office may upon its own motion, and shall upon the
verified complaint in writing of any person setting forth fact which, if
proved, would constitute grounds for refusal or revocation under Laws 1973,
Chapter 714, investigate the actions of any applicant or any person or persons
holding or claiming to hold a license or permit. However, before proceeding to a hearing on the question of
whether a license or permit shall be refused, revoked or suspended for any
cause enumerated in subdivision 1, the office may shall grant a
reasonable time to the holder of or applicant for a license or permit to
correct the situation. If within such
time the situation is corrected and the school is in compliance with the
provisions of this chapter, no further action leading to refusal, revocation,
or suspension shall be taken.
Sec. 18. Minnesota
Statutes 2004, section 141.30, is amended to read:
141.30 [INSPECTION.]
(a) The office or a delegate may inspect the instructional books
and records, classrooms, dormitories, tools, equipment and classes of any
school or applicant for license at any reasonable time. The office may require the submission of a
certified public audit, or if there is no such audit available the office or a delegate
may inspect the financial books and records of the school. In no event shall such financial information
be used by the office to regulate or set the tuition or fees charged by the
school.
(b) Data obtained from an inspection of the financial records
of a school or submitted to the office as part of a license application or
renewal are nonpublic data as defined in section 13.02, subdivision 9. Data obtained from inspections may be
disclosed to other members of the office, to law enforcement officials, or in
connection with a legal or administrative proceeding commenced to enforce a
requirement of law.
Sec. 19. Minnesota
Statutes 2004, section 141.35, is amended to read:
141.35 [EXEMPTIONS.]
Sections 141.21 to 141.35 shall not apply to the following:
(1) public postsecondary institutions;
(2) private postsecondary institutions registered under
sections 136A.61 to 136A.71 that are nonprofit, or that are for profit and
registered under sections 136A.61 to 136A.71 as of December 31, 1998, or are
approved to offer exclusively baccalaureate or postbaccalaureate programs;
(3) schools of nursing accredited by the state Board of Nursing
or an equivalent public board of another state or foreign country;
(4) private schools complying with
the requirements of section 120A.22, subdivision 4;
(5) courses taught to students in a valid apprenticeship
program taught by or required by a trade union;
(6) schools exclusively engaged in training physically or
mentally handicapped persons for the state of Minnesota;
(7) schools licensed by boards authorized under Minnesota law
to issue licenses;
(8) schools and educational programs, or training programs,
contracted for by persons, firms, corporations, government agencies, or
associations, for the training of their own employees, for which no fee is
charged the employee;
(9) schools engaged exclusively in the teaching of purely
avocational, recreational, or remedial subjects as determined by the office;
(10) driver training schools and instructors as defined in
section 171.33, subdivisions 1 and 2;
(11) classes, courses, or programs conducted by a bona fide
trade, professional, or fraternal organization, solely for that organization's
membership;
(12) programs in the fine arts provided by organizations exempt
from taxation under section 290.05 and registered with the attorney general
under chapter 309. For the purposes of
this clause, "fine arts" means activities resulting in artistic
creation or artistic performance of works of the imagination which are engaged
in for the primary purpose of creative expression rather than commercial sale
or employment. In making this
determination the office may seek the advice and recommendation of the Minnesota
Board of the Arts;
(13) classes, courses, or programs intended to fulfill the
continuing education requirements for licensure or certification in a
profession, that have been approved by a legislatively or judicially
established board or agency responsible for regulating the practice of the
profession, and that are offered primarily exclusively to an
individual practicing the profession;
(14) classes, courses, or programs intended to prepare students
to sit for undergraduate, graduate, postgraduate, or occupational licensing and
occupational entrance examinations;
(15) classes, courses, or programs providing 16 or fewer clock
hours of instruction that are not part of the curriculum for an occupation or
entry level employment;
(16) classes, courses, or programs providing instruction in
personal development, modeling, or acting;
(17) training or instructional programs, in which one
instructor teaches an individual student, that are not part of the curriculum
for an occupation or are not intended to prepare a person for entry level
employment; and
(18) schools with no physical presence in Minnesota, as
determined by the office, engaged exclusively in offering distance
instruction that are located in and regulated by other states or jurisdictions.
Sec. 20. [REGULATION OF
PRIVATE AND OUT-OF-STATE POSTSECONDARY INSTITUTIONS.]
The Higher Education Services Office must convene a working
group to develop recommendations to revise the regulation under Minnesota
Statutes, sections 136A.61 to 136A.71, and chapter 141, of private and
out-of-state postsecondary institutions that offer instruction in Minnesota or
to Minnesota residents who are not required to leave the
state. Members of the working group are
appointed by the director of the Higher Education Services Office and must include
one or more representatives of the Minnesota Private College Council, the
Minnesota Career College Association, and other interested institutions that
are registered or licensed under state law.
In developing recommendations, the working group must
consider the office's mission to protect both consumers of postsecondary
education and the state's interests.
The recommendations must address the provision of degrees, certificates,
diplomas, and training offered by for-profit and nonprofit institutions in
Minnesota and outside of Minnesota, in classrooms or online, and regulatory
issues under federal law. The
recommendations may include other relevant issues as determined by the working
group.
The office must provide preliminary recommendations to the
committees of the legislature with jurisdiction over higher education policy
and higher education finance by November 15, 2005, and must provide final
recommendations by January 15, 2006.
ARTICLE
4
ROCHESTER
Section 1. [ROCHESTER
HIGHER EDUCATION DEVELOPMENT COMMITTEE.]
Subdivision 1.
[ESTABLISHMENT.] The Rochester Higher Education Development Committee
is established to research and make recommendations to the governor and
legislature on the creation of mission-driven postsecondary educational
programs or institutions in the Rochester area that meet the educational needs
of the region and the state and that capitalize on the unique opportunities for
educational partnerships presented in the Rochester area.
Subd. 2.
[MEMBERSHIP.] The committee is composed of 11 members, to be
appointed by the governor, as follows:
(1) a trustee of the Minnesota State Colleges and
Universities, or the trustee's designee;
(2) a regent of the University of Minnesota, or the regent's
designee;
(3) six persons from the Rochester area representing
business, health and medical sciences, and technology;
(4) the commissioner of finance, as a nonvoting member, or
the commissioner's designee;
(5) one person who by training or experience has special expertise
in postsecondary finance and planning; and
(6) one person who by training or experience has special
expertise in postsecondary academic planning and programming.
Before the first meeting of the committee, the governor
shall select one person from the committee who shall serve as chair.
Subd. 3.
[COMPENSATION AND REMOVAL.] Appointments to the committee are not
subject to Minnesota Statutes, section 15.0597. Members of the committee are not entitled to reimbursement under
Minnesota Statutes, section 15.059, subdivision 6. Members may be removed and vacancies filled pursuant to Minnesota
Statutes, section 15.059, subdivision 4.
The director of the Higher Education Services Office may provide
administrative support to the committee.
Subd. 4. [DUTIES.] (a) The committee shall develop
a proposal for establishment and implementation of expanded higher education
programs or institutions in Rochester.
The committee's report must include recommendations on:
(1) the mission and focus of the programs or institutions;
(2) the nature of undergraduate and graduate programs to be
offered;
(3) site and facility needs;
(4) funding sources and opportunities;
(5) operational needs;
(6) alliances or other types of cooperative arrangements
with public and private institutions;
(7) governance structures; and
(8) mechanisms to ensure that the expanded programs are
aligned with the unique needs and opportunities of the Rochester area and that
programs take advantage of opportunities presented by regional business and
industry.
(b) If the committee recommends any programmatic changes
that result in institutional realignments, the committee must consult with the
representatives of affected employees and address the continuation of collective
bargaining and contractual rights and benefits, including accumulated sick
leave, vacation time, seniority, time to tenure, separation or retirement
benefits, and pension plan coverage.
(c) The committee must consider specifically whether
expansion of the University of Minnesota in Rochester is the most appropriate
method of meeting the region's needs.
(d) The committee may also research and provide
recommendations on sites for the facilities and programs. The committee shall recommend any changes to
Minnesota law required to implement recommendations of the committee.
Subd. 5.
[REPORT.] The committee must issue a report with recommendations to
the governor and the legislature by January 15, 2006.
Subd. 6.
[SUNSET.] The committee expires on December 31, 2007.
Sec. 2. [ROCHESTER
HIGHER EDUCATION DEVELOPMENT ACCOUNT.]
A Rochester higher education development account is created
in the state treasury in the special revenue fund. Money in this account is appropriated to the Higher Education
Services Office for allocation to the committee established in section 1,
subdivision 1, and the implementation activities outlined in article 1, section
2, subdivision 16, paragraph (b). The
office shall serve as fiscal agent for the committee established in section 1.
Sec. 3. [EFFECTIVE
DATE.]
This article is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to higher education;
allocating money for educational and related purposes with certain conditions;
modifying various loan, grant, and financial aid provisions; requiring
institutions to provide certain data; permitting disclosure of certain data to
determine eligibility; amending various reciprocity provisions; providing
definitions; amending provisions related to advisory and student groups;
directing the Board of Trustees to designate centers of excellence; amending
the Minnesota college savings plan; amending provisions related to private
career schools; establishing fees; establishing the Rochester University
Development Committee; appropriating money; amending Minnesota Statutes 2004,
135A.031, subdivisions 3, 4; 135A.052, subdivision 1; 135A.30, subdivisions 3,
4, 5; 135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 136A.031,
subdivisions 2, 3, 4, 5; 136A.08, by adding subdivisions; 136A.121,
subdivisions 2, 6, 9, 13, by adding subdivisions; 136A.125, subdivisions 2, 4;
136A.1701, by adding subdivisions; 136F.04, subdivision 4; 136F.32, subdivision
2; 136G.03, subdivisions 3, 21a, 22, 32; 136G.05, subdivision 8; 136G.09,
subdivisions 11, 12; 136G.11, subdivisions 1, 2, 3, 13; 136G.13, subdivisions
1, 5; 136G.14; 137.0245, subdivisions 1, 3, 4; 141.21, by adding a subdivision;
141.25, subdivisions 3, 5, 8, 9, 12; 141.251; 141.26, subdivision 5; 141.271,
subdivisions 4, 7, 10, by adding subdivisions; 141.28, subdivision 1, by adding
a subdivision; 141.29, subdivision 3; 141.30; 141.35; 192.502, subdivision 1;
299A.45, subdivisions 1, 4; proposing coding for new law in Minnesota Statutes,
chapters 135A; 136A; 136F; 137; 141; 144; 583; repealing Minnesota Statutes
2004, sections 136A.011; 136A.031, subdivision 1; Minnesota Rules, parts
4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 4815.0150; 4815.0160;
4830.8100; 4830.8110; 4830.8120; 4830.8130; 4830.8140; 4830.8150."
We request adoption of this report and repassage of the bill.
House Conferees: Bud Nornes, Rob Eastlund, Raymond Cox, Joe
Opatz and Ruth Johnson.
Senate Conferees: Sandra
L. Pappas, Richard J. Cohen, Bob Kierlin and Claire A. Robling.
Nornes moved that the report of the Conference Committee on
H. F. No. 1385 be adopted and that the bill be repassed as
amended by the Conference Committee.
The Speaker called Emmer to the Chair.
Rukavina moved that the House refuse to adopt the Conference
Committee report on H. F. No. 1385, and that the bill be
returned to the Conference Committee.
A roll call was requested and properly seconded.
CALL
OF THE HOUSE
On the motion of Nornes and on the demand of 10 members, a call
of the House was ordered. The following
members answered to their names:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Paulsen moved that further proceedings of the roll call be
suspended and that the Sergeant at Arms be instructed to bring in the
absentees. The motion prevailed and it
was so ordered.
The Speaker resumed the Chair.
The question recurred on the Rukavina motion and the roll was
called.
Paulsen moved that those not voting be excused from
voting. The motion prevailed.
There were 54 yeas and 78 nays as follows:
Those who voted in the affirmative were:
Anderson, I.
Atkins
Bernardy
Carlson
Clark
Davnie
Dill
Dorn
Eken
Ellison
Entenza
Fritz
Goodwin
Greiling
Hansen
Hausman
Hilstrom
Hilty
Hornstein
Huntley
Jaros
Johnson, S.
Juhnke
Kahn
Kelliher
Koenen
Latz
Lesch
Lieder
Lillie
Loeffler
Mahoney
Mariani
Moe
Mullery
Murphy
Nelson, M.
Olson
Otremba
Paymar
Pelowski
Peterson, A.
Peterson, S.
Poppe
Rukavina
Sailer
Scalze
Sieben
Simon
Slawik
Solberg
Thao
Wagenius
Walker
Those who voted in the negative were:
Abeler
Abrams
Anderson, B.
Beard
Blaine
Bradley
Brod
Buesgens
Charron
Cornish
Cox
Cybart
Davids
Dean
DeLaForest
Demmer
Dempsey
Dittrich
Dorman
Eastlund
Emmer
Erhardt
Erickson
Finstad
Garofalo
Gazelka
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Hortman
Hosch
Howes
Johnson, J.
Johnson, R.
Klinzing
Knoblach
Kohls
Krinkie
Lanning
Larson
Lenczewski
Liebling
Magnus
Marquart
McNamara
Meslow
Nelson, P.
Newman
Nornes
Opatz
Ozment
Paulsen
Penas
Peppin
Peterson, N.
Powell
Ruth
Ruud
Samuelson
Seifert
Severson
Simpson
Smith
Soderstrom
Sykora
Thissen
Tingelstad
Urdahl
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
The motion did not prevail.
The question recurred on the Nornes motion that the report of
the Conference Committee on H. F. No. 1385 be adopted and that
the bill be repassed as amended by the Conference Committee. The motion prevailed.
The Speaker called Davids to the Chair.
H. F. No. 1385, A bill for an act relating to higher education;
allocating money for educational and related purposes with certain conditions;
modifying various loan, grant, and financial aid provisions; requiring
institutions to provide certain data; permitting disclosure of certain data to
determine eligibility; amending various reciprocity provisions; providing
definitions; directing the Board of Trustees to designate centers of
excellence; amending the Minnesota college savings plan; authorizing transfer
of certain bonding authority; amending provisions related to private career
schools; establishing fees; providing for merger with the Higher Education
Facilities Authority; establishing the Rochester University Development
Committee; appropriating money; amending Minnesota Statutes 2004, sections
13.46, subdivision 2; 135A.031, subdivisions 3, 4; 135A.052, subdivision 1;
135A.30, subdivisions 3, 4, 5; 135A.52, subdivisions 1, 2; 136A.01, subdivision
2; 136A.031, subdivisions 2, 3, 4; 136A.08, by adding subdivisions; 136A.121,
subdivisions 2, 5, 6, 9, by adding a subdivision; 136A.125, subdivision 2;
136A.1701, by adding subdivisions; 136F.04, subdivision 4; 136F.32, subdivision
2; 136G.03, subdivisions 3, 21a, 22, 32; 136G.05, subdivision 8; 136G.09,
subdivisions 11, 12; 136G.11, subdivisions 1, 2, 3, 13; 136G.13, subdivisions
1, 5; 136G.14; 137.0245, subdivisions 1, 2, 4; 141.21, by adding a subdivision;
141.25, subdivisions 3, 5, 8, 9, 12; 141.251; 141.26, subdivision 5; 141.271,
subdivisions 4, 7, 10, by adding subdivisions; 141.28, subdivision 1, by adding
a subdivision; 141.29, subdivision 3; 141.30; 141.35; 192.502, subdivision 1;
299A.45, subdivisions 1, 4; proposing coding for new law in Minnesota Statutes,
chapters 136A; 137; 141; repealing Minnesota Statutes 2004, sections 136A.011;
136A.031, subdivision 1; Minnesota Rules, parts 4815.0100; 4815.0110;
4815.0120; 4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 4830.8110;
4830.8120; 4830.8130; 4830.8140; 4830.8150.
The bill was read for the third time, as amended by Conference,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 81 yeas and
52 nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Beard
Blaine
Bradley
Brod
Buesgens
Charron
Cornish
Cox
Cybart
Davids
Dean
DeLaForest
Demmer
Dempsey
Dittrich
Dorman
Eastlund
Emmer
Erhardt
Erickson
Finstad
Garofalo
Gazelka
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Hortman
Hosch
Howes
Johnson, J.
Johnson, R.
Klinzing
Knoblach
Kohls
Krinkie
Lanning
Larson
Lenczewski
Liebling
Magnus
Mariani
Marquart
McNamara
Meslow
Nelson, P.
Newman
Nornes
Opatz
Ozment
Paulsen
Penas
Peppin
Peterson, N.
Peterson, S.
Powell
Ruth
Ruud
Samuelson
Seifert
Severson
Simpson
Smith
Soderstrom
Sykora
Thissen
Tingelstad
Urdahl
Vandeveer
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who voted in the negative were:
Anderson, I.
Atkins
Bernardy
Carlson
Clark
Davnie
Dill
Dorn
Eken
Ellison
Entenza
Fritz
Goodwin
Greiling
Hansen
Hausman
Hilstrom
Hilty
Hornstein
Huntley
Jaros
Johnson, S.
Juhnke
Kahn
Kelliher
Koenen
Latz
Lesch
Lieder
Lillie
Loeffler
Mahoney
Moe
Mullery
Murphy
Nelson, M.
Olson
Otremba
Paymar
Pelowski
Peterson, A.
Poppe
Rukavina
Sailer
Scalze
Sieben
Simon
Slawik
Solberg
Thao
Wagenius
Walker
The bill was repassed, as amended by Conference, and its title
agreed to.
ANNOUNCEMENTS
BY THE SPEAKER
The Speaker announced the appointment of the following members
of the House to a Conference Committee on H. F. No. 1507:
Abeler, Dean and Huntley.
The Speaker announced the appointment of the following members
of the House to a Conference Committee on H. F. No. 1555:
Powell, Tingelstad and Huntley.
CALL
OF THE HOUSE LIFTED
Brod moved that the call of the House be suspended. The motion prevailed and it was so ordered.
There being no objection, the order of business reverted to
Reports of Standing Committees.
REPORTS OF STANDING COMMITTEES
Knoblach from the Committee on Ways and Means to which was
referred:
H. F. No. 2263, A bill for an act relating to state government;
updating Finance Department provisions; amending Minnesota Statutes 2004,
sections 16A.1286, subdivisions 2, 3; 16A.152, subdivision 2; 16A.1522,
subdivision 1; repealing Minnesota Statutes 2004, section 16A.30.
Reported the same back with the following amendments:
Page 2, line 6, delete "November"
Page 2, line 19, after "percent" insert "without
exceeding the amount available and with any remaining funds deposited in the
budget reserve"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned:
H. F. No. 419, A bill for an act relating to game and fish;
modifying protection status of great horned owls; amending Minnesota Statutes
2004, sections 97A.015, subdivision 52; 97B.701, by adding a subdivision.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 1915, A bill for an act relating to health; providing
an exception to the hospital construction moratorium; amending Minnesota
Statutes 2004, section 144.551, subdivision 1.
Patrick E. Flahaven, Secretary of the Senate
Zellers moved that the House refuse to concur in the Senate
amendments to H. F. No. 1915, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses. The motion
prevailed.
Mr. Speaker:
I hereby announce the passage by the Senate of the following
Senate Files, herewith transmitted:
S. F. Nos. 1604, 953 and 232.
Patrick E. Flahaven, Secretary of the Senate
FIRST
READING OF SENATE BILLS
S. F. No. 1604, A resolution memorializing the President and
Congress to support Amtrak funding.
The bill was read for the first time.
Beard moved that S. F. No. 1604 and H. F. No. 1730, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 953, A bill for an act relating to local government;
increasing and indexing the compensation limit for local government employees;
amending Minnesota Statutes 2004, section 43A.17, subdivision 9; repealing
Minnesota Statutes 2004, section 356.611, subdivision 1.
The bill was read for the first time.
Erhardt moved that S. F. No. 953 and H. F. No. 995, now on the
Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 232, A bill for an act relating to education;
permitting secondary students to carry and use nonprescription pain relief;
proposing coding for new law in Minnesota Statutes, chapter 121A.
The bill was read for the first time.
Klinzing moved that S. F. No. 232 and H. F. No. 615, now on the
Calendar for the Day, be referred to the Chief Clerk for comparison. The motion prevailed.
REPORT
FROM THE COMMITTEE ON RULES AND
LEGISLATIVE
ADMINISTRATION
Paulsen from the Committee on Rules and Legislative
Administration, pursuant to rule 1.21, designated the following bills to be
placed on the Supplemental Calendar for the Day for Friday, May 20, 2005:
S. F. No. 370; and
H. F. Nos. 1298 and 1845.
CALENDAR FOR THE DAY
S. F. No. 1908, A bill for an act relating to natural
resources; establishing the Shooting Range Protection Act; requiring expedited
rulemaking; proposing coding for new law as Minnesota Statutes, chapter 87A.
The bill was read for the third time and placed upon its final
passage.
The question was taken on the
passage of the bill and the roll was called.
There were 113 yeas and 20 nays as follows:
Those who
voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Cornish
Cox
Cybart
Davids
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Emmer
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Gunther
Hackbarth
Hamilton
Hansen
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lesch
Lieder
Lillie
Magnus
Mahoney
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Sailer
Samuelson
Scalze
Seifert
Severson
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Tingelstad
Urdahl
Vandeveer
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who
voted in the negative were:
Clark
Davnie
Ellison
Entenza
Greiling
Hausman
Hornstein
Kahn
Kelliher
Lenczewski
Liebling
Loeffler
Mariani
Paymar
Ruud
Sieben
Thao
Thissen
Wagenius
Walker
The bill was passed and its title agreed to.
S. F. No. 1579 was reported to the House.
Olson moved to amend S. F. No. 1579 as follows:
Page 1, line 37, delete the new language
Page 2, line 7, delete "and any subsequent"
Page 2, line 8, delete the new language
Page 5, line 6, delete "as amended,"
Page 5, line 7, delete the new language
Page 6, line 10, after the first comma, delete the new language
Page 6, line 24, delete everything after "1320d-8"
Page 6, line 25, delete
everything before the period
Page 7, line 4, delete the new language
Page 8, line 11, delete "as"
Page 8, line 12, delete the new language
Page 8, line 26, delete everything after "1320d-8"
Page 8, line 27, delete everything before the period
A roll call was requested and properly seconded.
The question was taken on the Olson amendment and the roll was
called. There were 19 yeas and 114 nays
as follows:
Those who voted in the affirmative were:
Anderson, B.
Buesgens
Davnie
Eastlund
Ellison
Emmer
Erickson
Gazelka
Holberg
Hortman
Jaros
Klinzing
Olson
Ozment
Rukavina
Soderstrom
Thissen
Vandeveer
Westrom
Those who voted in the negative were:
Abeler
Abrams
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eken
Entenza
Erhardt
Finstad
Fritz
Garofalo
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Hoppe
Hornstein
Hosch
Howes
Huntley
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Opatz
Otremba
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Solberg
Sykora
Thao
Tingelstad
Urdahl
Wagenius
Walker
Wardlow
Welti
Westerberg
Wilkin
Zellers
Spk. Sviggum
The motion did not prevail and the amendment was not adopted.
Olson moved to amend S. F. No.
1579 as follows:
Page 6, line 18, strike the existing language
Page 6, line 19, strike everything before the period
Page 8, line 19, strike "; and"
Page 8, strike line 20
Page 8, line 21, strike "functions"
Page 8, after line 30, insert:
"Sec. 8. Minnesota
Statutes 2004, section 62J.54, subdivision 3, is amended to read:
Subd. 3. [UNIQUE
IDENTIFICATION NUMBER FOR GROUP PURCHASERS.] (a) Not later than 24 months after
the date on which a unique health identifier for employers and health plans is
adopted or established under United States Code, title 42, sections 1320d to
1320d-8 (1996 and subsequent amendments), all group purchasers and health care
providers in Minnesota shall use a unique identification number to identify
group purchasers, except as provided in paragraph (b).
(b) Small health plans, as defined by the federal Secretary of
Health and Human Services under United States Code, title 42, section 1320d-4
(1996 and subsequent amendments), shall use a unique identification number to
identify group purchasers no later than 36 months after the date on which a
unique health identifier for employers and health plans is adopted or
established under United States Code, title 42, sections 1320d to 1320d-8 (1996
and subsequent amendments).
(c) The unique health identifier for health plans and employers
adopted or established by the federal Secretary of Health and Human Services
under United States Code, title 42, sections 1320d to 1320d-8 (1996 and
subsequent amendments), shall be used as the unique identification number for
group purchasers.
(d) Group purchasers shall obtain a unique health identifier
from the federal Secretary of Health and Human Services using the process
prescribed by the Secretary.
(e) The unique group purchaser identifier, as described in this
section, shall be used for purposes of submitting and receiving claims, and
in conjunction with other data collection and reporting functions.
(f) The commissioner of health may contract with the federal
Secretary of Health and Human Services or the Secretary's agent to implement
this subdivision.
Sec. 9. Minnesota
Statutes 2004, section 62J.54, subdivision 4, is amended to read:
Subd. 4. [UNIQUE
PATIENT IDENTIFICATION NUMBER.] (a) Not later than 24 months after the date on
which a unique health identifier for individuals is adopted or established
under United States Code, title 42, sections 1320d to 1320d-8 (1996 and
subsequent amendments), all group purchasers and health care providers in
Minnesota shall use a unique identification number to identify each patient who
receives health care services in Minnesota, except as provided in paragraph
(b).
(b) Small health plans, as defined by the federal
Secretary of Health and Human Services under United States Code, title 42,
section 1320d-4 (1996 and subsequent amendments), shall use a unique
identification number to identify each patient who receives health care
services in Minnesota no later than 36 months after the date on which a unique
health identifier for individuals is adopted or established under United States
Code, title 42, sections 1320d to 1320d-8 (1996 and subsequent amendments).
(c) The unique health identifier for individuals adopted or
established by the federal Secretary of Health and Human Services under United
States Code, title 42, sections 1320d to 1320d-8 (1996 and subsequent
amendments), shall be used as the unique patient identification number, except
as provided in paragraphs (e) and (f).
(d) The unique patient identification number shall be used by
group purchasers and health care providers for purposes of submitting and
receiving claims, and in conjunction with other data collection and
reporting functions.
(e) Within the limits of available appropriations, the
commissioner shall develop a proposal for an alternate numbering system for
patients who do not have or refuse to provide their Social Security numbers,
if:
(1) a unique health identifier for individuals is adopted or
established under United States Code, title 42, sections 1320d to 1320d-8 (1996
and subsequent amendments);
(2) the unique health identifier is the Social Security number
of the patient;
(3) there is no federal alternate numbering system for patients
who do not have or refuse to provide their Social Security numbers; and
(4) federal law or the federal Secretary of Health and Human
Services explicitly allows a state to develop an alternate numbering system for
patients who do not have or refuse to provide their Social Security numbers.
(f) If an alternate numbering system is developed under
paragraph (e), patients who use numbers issued by the alternate numbering
system are not required to provide their Social Security numbers and group
purchasers or providers may not demand the Social Security numbers of patients
who provide numbers issued by the alternate numbering system. If an alternate numbering system is
developed under paragraph (e), group purchasers and health care providers shall
establish procedures to notify patients that they can elect not to have their
Social Security number used as the unique patient identifier.
(g) The commissioner of
health may contract with the federal Secretary of Health and Human Services or
the Secretary's agent to implement this subdivision."
Renumber the sections in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Olson amendment and the roll was
called. There were 21 yeas and 112 nays
as follows:
Those who voted in the affirmative were:
Anderson, B.
Buesgens
Cox
Eastlund
Ellison
Emmer
Erickson
Gazelka
Heidgerken
Holberg
Jaros
Klinzing
Nelson, P.
Olson
Ozment
Rukavina
Soderstrom
Vandeveer
Walker
Westerberg
Zellers
Those who voted in the negative were:
Abeler
Abrams
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Carlson
Charron
Clark
Cornish
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eken
Entenza
Erhardt
Finstad
Fritz
Garofalo
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Hilstrom
Hilty
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Newman
Nornes
Opatz
Otremba
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Wagenius
Wardlow
Welti
Westrom
Wilkin
Spk. Sviggum
The motion did not prevail and the amendment was not adopted.
S. F. No. 1579, A bill for an act relating to health; modifying
the Health Care Administrative Simplification Act of 1994; modifying
requirements of federal Drug Enforcement Administration registration numbers;
modifying provisions for wells, borings, and underground uses; modifying
requirements for filing and issuing death records; modifying provisions for
disposition of dead bodies; eliminating authority to designate certain morticians;
amending Minnesota Statutes 2004, sections 62J.51, subdivisions 17, 18; 62J.52,
subdivisions 1, 2, 5; 62J.54, subdivisions 1, 2; 62J.581, subdivision 5;
103I.005, subdivisions 4a, 6, 7, 10, 12, by adding subdivisions; 103I.101,
subdivisions 2, 5; 103I.105; 103I.111, subdivisions 1, 3; 103I.115; 103I.205,
subdivisions 4, 9; 103I.208, subdivisions 1, 2; 103I.231; 103I.325, subdivision
2; 103I.345, subdivision 2; 103I.401; 103I.501; 103I.505; 103I.525,
subdivisions 1, 2, 4, 5, 8, by adding a subdivision; 103I.531, subdivisions 1,
2, 4, 5, 8, by adding a subdivision; 103I.535, subdivisions 1, 2, 4, 5, 7, 8,
9, by adding a subdivision; 103I.541; 103I.545, subdivision 2; 103I.601,
subdivisions 4, 9; 144.221, subdivision 1; 144.225, subdivision 7; 149A.93, subdivisions
1, 2, 3, 4, 5; 149A.94, subdivision 3; 149A.96, subdivisions 1, 4, 7; Laws
1998, chapter 316, section 4; repealing Minnesota Statutes 2004, sections
103I.005, subdivision 13; 103I.222; 144.214, subdivision 4.
The bill was read for the third time and placed upon its final
passage.
The question was taken on the passage of the bill and the roll
was called. There were 132 yeas and 1
nay as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who voted in the negative were:
Olson
The bill was passed and its title agreed to.
S. F. No. 664 was reported to the House.
The Speaker resumed the Chair.
Hoppe moved that S. F. No. 664 be temporarily
laid over on the Calendar for the Day.
The motion prevailed.
Paulsen moved that the House recess subject to the call of the
Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro
tempore Paulsen.
CALENDAR FOR THE DAY, Continued
S. F. No. 664, which was temporarily laid over
earlier today on the Calendar for the Day, was again reported to the House.
Hoppe moved to amend S. F. No. 664 as follows:
Page 7, line 2, delete "or"
Page 7, lines 3, 4, and 6, reinstate the stricken language
Westerberg moved to amend the Hoppe amendment to S. F. No. 664
as follows:
Page 1, after line 2, insert:
"Pages 6 to 8, delete section 4"
The motion did not prevail and the amendment to the amendment
was not adopted.
The question recurred on the Hoppe amendment to
S. F. No. 664. The
motion prevailed and the amendment was adopted.
Hoppe moved to amend S. F. No. 664, as amended, as follows:
Page 6, after line 21, insert:
"Sec. 4. Minnesota
Statutes 2004, section 340A.412, subdivision 14, is amended to read:
Subd. 14. [EXCLUSIVE
LIQUOR STORES.] (a) Except as otherwise provided in this subdivision, an
exclusive liquor store may sell only the following items:
(1) alcoholic beverages;
(2) tobacco products;
(3) ice;
(4) beverages, either liquid or powder, specifically
designated for mixing with intoxicating liquor;
(5) soft drinks;
(6) liqueur-filled candies;
(7) food products that contain more than one-half of one
percent alcohol by volume;
(8) cork extraction devices;
(9) books and videos on the use of alcoholic beverages;
(10) magazines and other
publications published primarily for information and education on alcoholic
beverages; and
(11) home brewing equipment.
(b) An exclusive liquor store that has an on-sale, or
combination on-sale and off-sale license may sell food for on-premise
consumption when authorized by the municipality issuing the license.
(c) An exclusive liquor store may offer live or recorded
entertainment."
Renumber the sections in sequence and correct the internal
references
Amend the title accordingly
The motion prevailed and the amendment was adopted.
S. F. No. 664, A bill for an act relating to alcoholic
beverages; modifying brewpub regulations; regulating wine tastings; providing
for uniform off-sale hours statewide; regulating Sunday on-sales; authorizing
certain on-sale licenses; amending Minnesota Statutes 2004, sections 340A.301,
subdivisions 6, 7; 340A.404, subdivision 2; 340A.417; 340A.418; 340A.503, by
adding a subdivision; 340A.504, subdivisions 1, 3, 4; Laws 2000, chapter 440,
section 10; Laws 2003, chapter 126, section 28.
The bill was read for the third time, as amended, and placed
upon its final passage.
The question was taken on the passage of the bill and the roll
was called. There were 127 yeas and 6
nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Hoppe
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who voted in the negative were:
Bernardy
Eastlund
Holberg
Hornstein
Knoblach
Olson
The bill was passed, as amended, and its title agreed to.
The Speaker resumed the Chair.
S. F. No. 877, A bill for an act relating to state government;
establishing a Minnesota Humanities Commission; proposing coding for new law in
Minnesota Statutes, chapter 138.
The bill was read for the third time and placed upon its final
passage.
The question was taken on the
passage of the bill and the roll was called.
There were 126 yeas and 6 nays as follows:
Those who
voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Koenen
Kohls
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Sykora
Thao
Thissen
Tingelstad
Urdahl
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who
voted in the negative were:
Buesgens
Knoblach
Krinkie
Olson
Peppin
Vandeveer
The bill was passed and its title agreed to.
H. F. No. 1528 was reported to the House.
Gazelka, Davids and Westerberg moved to amend H. F. No. 1528,
the first engrossment, as follows:
Page 4, line 6, after the period insert "Consumer
benefits included within preferred vendor programs must not be considered an
incentive or inducement."
Page 6, delete section 2
The motion prevailed and the amendment was adopted.
H. F. No. 1528, A bill for an act relating to insurance;
regulating claims practices; amending Minnesota Statutes 2004, section 72A.201,
subdivision 6.
The bill was read for the third time, as amended, and placed
upon its final passage.
The question was taken on the
passage of the bill and the roll was called.
There were 133 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
The bill was passed, as amended, and its title agreed to.
S. F. No. 1636 was reported to the House.
Hamilton moved to amend S. F. No. 1636 as
follows:
Delete everything after the enacting clause and insert the
following language of H. F. No. 1824, the second engrossment:
"Section 1.
Minnesota Statutes 2004, section 47.10, subdivision 1, is amended to
read:
Subdivision 1.
[AUTHORITY, APPROVAL, LIMITATIONS.] (a) Except as otherwise specially
provided, the net book value of land and buildings for the transaction of the
business of the corporation, including parking lots and premises leased to
others, shall not be more than as follows:
(1) for a bank, trust company, savings bank, or stock savings
association, if investment is for acquisition and improvements to establish a
new bank banking office, or is for improvements to existing
property or acquisition and improvements to adjacent property, approval by the
commissioner of commerce is not required if the total investment does not
exceed 50 percent of its existing capital stock and paid-in surplus. Upon written prior approval of the
commissioner of commerce, a bank, trust company, savings bank, or stock savings
association may invest in the property and improvements in clause (1) or for
acquisition of nonadjacent property for expansion or future use, if the
aggregate of all such investments does not exceed 100 percent of its existing
capital stock and paid-in surplus;
(2) for a mutual savings
association, five percent of its net assets.
(b) For purposes of this subdivision, an intervening highway,
street, road, alley, other public thoroughfare, or easement of any kind does
not cause two parcels of real property to be nonadjacent.
Sec. 2. Minnesota
Statutes 2004, section 47.75, is amended to read:
47.75 [LIMITED TRUSTEESHIP.]
Subdivision 1.
[RETIREMENT, HEALTH SAVINGS, AND MEDICAL SAVINGS ACCOUNTS.] (a)
A commercial bank, savings bank, savings association, credit union, or
industrial loan and thrift company may act as trustee or custodian:
(1) under the Federal Self-Employed Individual Tax
Retirement Act of 1962, as amended,;
(2) of a medical savings account under the Federal
Health Insurance Portability and Accountability Act of 1996, as amended,;
(3) of a health savings account under the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003, as amended;
and also
(4) under the Federal Employee Retirement Income
Security Act of 1974, as amended.
(b) The trustee or custodian may accept the trust funds
if the funds are invested only in savings accounts or time deposits in the
commercial bank, savings bank, savings association, credit union, or industrial
loan and thrift company. All funds held
in the fiduciary capacity may be commingled by the financial institution in the
conduct of its business, but individual records shall be maintained by the
fiduciary for each participant and shall show in detail all transactions
engaged under authority of this subdivision.
Sec. 3. Minnesota
Statutes 2004, section 48.10, is amended to read:
48.10 [ANNUAL AUDIT; REPORT.]
The board of directors of a bank, bank and trust, or trust
company shall annually examine its books, either in person, or by appointing an
examining committee, or an auditor, who may be an independent auditor or
accountant. The examining committee or
auditor shall be solely responsible to the directors. A report shall be made to the directors as to the scope of the
examination or audit, and also to show those assets, excluding marketable
securities and fixed assets, which are carried on the books for more than
actual value. This report shall be
retained as a permanent record or incorporated in the minutes of the meeting,
and a copy of the report shall be sent to the commissioner of commerce.
Sec. 4. Minnesota
Statutes 2004, section 48.15, subdivision 4, is amended to read:
Subd. 4. [RETIREMENT,
HEALTH SAVINGS, AND MEDICAL SAVINGS ACCOUNTS.] (a) A state bank may
act as trustee or custodian:
(1) of a self-employed retirement plan under the Federal
Self-Employed Individual Tax Retirement Act of 1962, as amended,;
(2) of a medical savings account under the Federal
Health Insurance Portability and Accountability Act of 1996, as amended,;
(3) of a health savings
account under the Medicare Prescription Drug, Improvement, and Modernization
Act of 2003, as amended; and
(4) of an individual retirement account under the
Federal Employee Retirement Income Security Act of 1974, as amended, if the
bank's duties as trustee or custodian are essentially ministerial or custodial
in nature and the funds are invested only (1) (i) in the bank's
own savings or time deposits; or (2) (ii) in any other assets at
the direction of the customer if the bank does not exercise any investment
discretion, invest the funds in collective investment funds administered by it,
or provide any investment advice with respect to those account assets.
(b) Affiliated discount brokers may be utilized by the
bank acting as trustee or custodian for self-directed IRAs, if specifically
authorized and directed in appropriate documents. The relationship between the affiliated broker and the bank must
be fully disclosed. Brokerage commissions
to be charged to the IRA by the affiliated broker should be accurately
disclosed. Provisions should be made
for disclosure of any changes in commission rates prior to their becoming
effective. The affiliated broker may
not provide investment advice to the customer.
(c) All funds held in the fiduciary capacity may be
commingled by the financial institution in the conduct of its business, but
individual records shall be maintained by the fiduciary for each participant
and shall show in detail all transactions engaged under authority of this
subdivision.
(d) The authority granted by this section is in addition
to, and not limited by, section 47.75.
Sec. 5. Minnesota
Statutes 2004, section 48.512, is amended by adding a subdivision to read:
Subd. 10.
[FEDERAL LAW COMPLIANCE.] In lieu of the identification rules in
subdivision 2, a financial intermediary may choose to comply with the federal
customer identification standards set forth in United States Code, title 31,
section 5318, and its implementing regulation, Code of Federal Regulations,
title 31, section 103.121, as amended from time to time.
Sec. 6. Minnesota
Statutes 2004, section 52.062, subdivision 2, is amended to read:
Subd. 2. [SUSPENSION.]
The commissioner of commerce may suspend the operation of the credit union by
giving notice to its board of directors by certified mail with a copy to the
advisory council. Said notice shall
include a list of reasons for said suspension and a list of any specific
violations of law, bylaw, or rule, and shall specify which operations of the
credit union may be continued during the period of suspension. The notice shall also fix a time and place
for a hearing before the commissioner of commerce or such person or persons as
the commissioner of commerce may designate.
The hearing shall be held within 60 days of the notice of suspension,
and the advisory council shall sit at such hearing for the purpose of providing
advice and counsel to the commissioner of commerce or a representative. Evidence may be produced at said hearing by
any party thereto, and the commissioner of commerce shall base the decision as
to the continued suspension of operation of the credit union upon said
evidence. If the commissioner of
commerce decides to continue the suspension, the commissioner shall give notice
of the decision to the board of directors of the credit union.
Sec. 7. Minnesota
Statutes 2004, section 55.10, subdivision 4, is amended to read:
Subd. 4. [WILL
SEARCHES, BURIAL DOCUMENTS PROCUREMENT, AND INVENTORY OF CONTENTS.] (a) Upon
being furnished with satisfactory proof of death of a sole lessee or the last
surviving co-lessee of a safe deposit box, an employee of the safe deposit
company shall open the box and examine the contents in the presence of an
individual who appears in person and furnishes an affidavit stating that the
individual believes:
(1) the box may contain the will or deed to a burial lot or a
document containing instructions for the burial of the lessee or that the box may
contain property belonging to the estate of the lessee; and
(2) the individual is an interested person as defined
in this section and wishes to open the box for any one or more of the following
purposes:
(i) to conduct a will search;
(ii) to obtain a document required to facilitate the lessee's
wishes regarding body, funeral, or burial arrangements; or
(iii) to obtain an inventory of the contents of the box.
(b) The safe deposit company may not open the box under this
section if it has received a copy of letters of office of the representative of
the deceased lessee's estate or other applicable court order.
(c) The safe deposit company need not open the box if:
(1) the box has previously been opened under this section for
the same purpose;
(2) the safe deposit company has received notice of a written
or oral objection from any person or has reason to believe that there would be
an objection; or
(3) the lessee's key or combination is not available.
(d) For purposes of this section, the term "interested
person" means any of the following:
(1) a person named as personal representative in a purported
will of the lessee;
(2) a person who immediately prior to the death of the lessee
had the right of access to the box as a deputy;
(3) the surviving spouse of the lessee;
(4) a devisee of the lessee;
(5) an heir of the lessee;
(6) a person designated by the lessee in a writing acceptable
to the safe deposit company which is filed with the safe deposit company before
death; or
(7) a state or county agency with a claim authorized by section
256B.15.
(e) For purposes of this section, the term "will"
includes a will or a codicil.
(f) If the box is opened for the purpose of conducting a will
search, the safe deposit company shall remove any document that appears to be a
will and make a true and correct machine copy thereof, replace the copy in the
box, and then deliver the original thereof to the clerk of court for the county
in which the lessee resided immediately before the lessee's death, if known to
the safe deposit company, otherwise to the clerk of the court for the county in
which the safe deposit box is located.
The will must be personally delivered or sent by registered mail. If the interested person so requests, any
deed to burial lot or document containing instructions for the burial of the
lessee may be copied by the safe deposit box company and the copy or copies
thereof delivered to the interested person.
(g) If the box is opened for the purpose of obtaining
a document required to facilitate the lessee's wishes regarding the body,
funeral, or burial arrangements, any such document may be removed from the box
and delivered to the interested person with a true and correct machine copy
retained in the box. If the safe
deposit box company discovers a document that appears to be a will, the safe
deposit company shall act in accordance with paragraph (f).
(h) If the box is opened for the purpose of obtaining an
inventory of the contents of the box, the employee of the safe deposit company
shall make, or cause to be made, an inventory of the contents of the box, to
which the employee and the interested person shall attest under penalty of
perjury to be correct and complete.
Within ten days of opening the box pursuant to this subdivision, the
safe deposit company shall deliver the original inventory of the contents to
the court administrator for the county in which the lessee resided immediately
before the lessee's death, if known to the safe deposit company, otherwise to
the court administrator for the county in which the safe deposit box is
located. The inventory must be
personally delivered or sent by registered mail. If the interested person so requests, the safe deposit company
shall make a true and correct copy of any document in the box, and of the
completed inventory form, and deliver that copy to the interested
person. If the contents of the box
include a document that appears to be a will, the safe deposit company shall
act in accordance with paragraph (f).
(i) If a box opened for the purpose of conducting an
inventory, will search, or burial document search is completely empty, the safe
deposit company need not follow the procedures above. Instead, the employee of the safe deposit company can complete an
inventory of the box contents indicating the fact that the box contained
nothing. The form must be signed by the
employee and the interested person. If
the interested person so requests, the safe deposit company may provide a copy
of the completed inventory form to the interested person. The interested person shall then complete
the documentation needed by the safe deposit company to surrender the empty
box. If another interested person
inquires about the box after it has been surrendered, the safe deposit company
may state that the deceased renter had previously rented the box and that the
box was surrendered because it was empty.
(j) The safe deposit company need not ascertain the
truth of any statement in the affidavit required to be furnished under this
subdivision and when acting in reliance upon an affidavit, it is discharged as
if it dealt with the personal representative of the lessee. The safe deposit company is not responsible
for the adequacy of the description of any property included in an inventory of
the contents of a safe deposit box, nor for conversion of the property in
connection with actions performed under this subdivision, except for conversion
by intentional acts of the company or its employees, directors, officers, or agents. If the safe deposit company is not satisfied
that the requirements of this subdivision have been met, it may decline to open
the box.
(j) (k) No contents of a box other than a will
and a document required to facilitate the lessee's wishes regarding body,
funeral, or burial arrangements may be removed pursuant to this
subdivision. The entire contents of the
box, however, may be removed pursuant to section 524.3-1201.
Sec. 8. [58.125]
[PROHIBITION ON SERVICE AS A RESIDENTIAL MORTGAGE ORIGINATOR.]
Subdivision 1.
[DEFINITIONS.] (a) "Dishonesty" means directly or
indirectly to cheat or defraud; to cheat or defraud for monetary gain or its
equivalent; or to wrongfully take property belonging to another in violation of
any criminal statute. Dishonesty
includes acts involving want of integrity, lack of probity, or a disposition to
distort, cheat, or act deceitfully or fraudulently, and may include crimes
which federal, state, or local laws define as dishonest.
(b) "Breach of trust" means a wrongful act, use,
misappropriation, or omission with respect to any property or fund which has
been committed to a person in a fiduciary or official capacity, or the misuse
of one's official or fiduciary position to engage in a wrongful act, use,
misappropriation, or omission.
Subd. 2.
[GENERALLY.] Except with the prior written consent of the
commissioner under subdivision 4, any individual, who has been convicted of a
criminal offense involving dishonesty or a breach of trust or money laundering,
or has agreed to or entered into a pretrial diversion or similar program in
connection with a prosecution for such offense, may not serve as a residential
mortgage originator or be employed in that capacity by a person licensed as a
mortgage originator.
Subd. 3. [DE
MINIMIS OFFENSES.] Approval is automatically granted and an application will
not be required if the covered offense is considered de minimis because it
meets all of the following criteria:
(1) there is only one conviction or program entry of record
for a covered offense;
(2) the offense was punishable by imprisonment for a term of
less than one year and/or a fine of less than $1,000, and the individual did
not serve time in jail;
(3) the conviction or program was entered at least five
years before the date an application would otherwise be required; and
(4) the offense did not involve a financial institution or
residential mortgage loans.
Subd. 4. [PRIOR
CONSENT.] (a) An application for prior consent of the commissioner under
this section must be in writing, under oath, and on a form obtained from and
prescribed by the commissioner. The
following factors must be considered by the commissioner when reviewing an
application:
(1) the specific nature of the offense and the circumstances
surrounding the offense;
(2) evidence of rehabilitation since the offense;
(3) the age of the person at the time of conviction; and
(4) whether or not restitution has been made.
(b) The receipt by an individual of prior consent of the
commissioner under this section must not be construed as imposing upon an
employer an affirmative obligation to employ that individual in any
capacity. Nothing in this section
precludes an employer from denying employment based upon the existence of a
criminal offense specified in subdivision 2 or for any other lawful reason.
Sec. 9. Minnesota
Statutes 2004, section 58.16, subdivision 4, is amended to read:
Subd. 4. [TRUST
ACCOUNT.] The residential mortgage originator shall deposit in a trust account
within three business days all fees received before the time a loan is actually
funded. The trust account must be in a
financial institution located within the state of Minnesota, and,
with respect to advance fees, the account must be controlled by an unaffiliated
accountant, attorney, or bank officer or employee.
Sec. 10. Minnesota
Statutes 2004, section 60A.13, subdivision 5, is amended to read:
Subd. 5. [RENEWAL
LICENSE BASED ON APPROVED STATEMENT.] Upon the approval of the
statement the commissioner shall issue a renewal license for the succeeding
year beginning June first. Any license
to a company or its agent, issued after the approval of the statement, shall
expire May 31 of the year following.
The license issued by the commissioner is perpetual and is considered
renewed annually on June 1 upon payment of the renewal license fee, the annual
filing fee, and all other fees required by section 60A.14.
Sec. 11.
Minnesota Statutes 2004, section 64B.30, is amended by adding a
subdivision to read:
Subd. 3.
[VOLUNTARY DISSOLUTION.] Upon application to the commissioner, a
domestic society may request that it be dissolved and that its existence be
terminated. Such application shall
demonstrate that the applicant has satisfied its members' policy obligations or
that it has transferred such obligations to another society, domestic or
foreign, by means of assumption or bulk reinsurance or otherwise, that the
applicant's supreme governing body has approved such termination and
dissolution and that the application includes such other information that the
commissioner requires. Any limitation
in section 64B.13 related to reinsurance by a domestic society with another
society shall not apply to reinsurance entered into in conjunction with the
transfer of member policy obligations as a part of a voluntary
dissolution. Upon the approval of the
application by the commissioner, the society shall be deemed dissolved and its
existence terminated upon the date set forth in the application.
Sec. 12. Minnesota Statutes
2004, section 82.17, subdivision 10, is amended to read:
Subd. 10. [LOAN
BROKER.] "Loan broker" means a licensed real estate broker or
salesperson who, for another and for a commission, fee, or other valuable
consideration an advance fee or with the intention or expectation of
receiving the same, directly or indirectly, negotiates or offers or attempts to
negotiate a loan secured or to be secured by a mortgage or other encumbrance on
real estate, or represents himself or herself or otherwise holds himself or
herself out as a licensed real estate broker or salesperson, either in
connection with any transaction in which he or she directly or indirectly
negotiates or offers or attempts to negotiate a loan, or in connection with the
conduct of his or her ordinary business activities as a loan broker.
"Loan broker" does not include a licensed real estate
broker or salesperson who, in the course of representing a purchaser or seller
of real estate, incidentally assists the purchaser or seller in obtaining
financing for the real property in question if the licensee does not receive a
separate commission, fee, or other valuable consideration for this service.
For the purposes of this subdivision, an "advance
fee" means a commission, fee, charge, or compensation of any kind paid
before the closing of a loan, that is intended in whole or in part as payment
for finding or attempting to find a loan for a borrower. Advance fee does not include pass-through
fees or commitment or extended lock fees or other fees as determined by the
commissioner.
Sec. 13. Minnesota
Statutes 2004, section 82.17, subdivision 18, is amended to read:
Subd. 18. [REAL ESTATE
BROKER; BROKER.] "Real estate broker" or "broker" means any
person who:
(a) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving the same
directly or indirectly lists, sells, exchanges, buys or rents, manages, or
offers or attempts to negotiate a sale, option, exchange, purchase or rental of
an interest or estate in real estate, or advertises or holds out as engaged in
these activities;
(b) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving the same
directly or indirectly negotiates or offers or attempts to negotiate a loan,
secured or to be secured by a mortgage or other encumbrance on real estate,
which is not a residential mortgage loan as defined by section 58.02,
subdivision 18;
(c) "real estate broker" or "broker" as set
forth in clause (b) shall not apply to the originating, making, processing,
selling, or servicing of a loan in connection with the broker's ordinary
business activities by of a mortgagee, lender, or servicer
approved or certified by the secretary of Housing and Urban Development, or
approved or certified by the administrator of Veterans Affairs, or approved or
certified by the administrator of the Farmers Home Administration, or approved or
certified as a multifamily seller/servicer by the Federal Home Loan
Mortgage Corporation, or as a multifamily partner approved or
certified by the Federal National Mortgage Association;
(d) for another and for commission, fee, or other
valuable consideration or with the intention or expectation of receiving the
same directly or indirectly lists, sells, exchanges, buys, rents, manages,
offers or attempts to negotiate a sale, option, exchange, purchase or rental of
any business opportunity or business, or its good will, inventory, or fixtures,
or any interest therein;
(e) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving the same
directly or indirectly offers, sells or attempts to negotiate the sale of
property that is subject to the registration requirements of chapter 83,
concerning subdivided land;
(f) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving the same,
promotes the sale of real estate by advertising it in a publication issued
primarily for this purpose, if the person:
(1) negotiates on behalf of any party to a transaction;
(2) disseminates any information regarding the property to any
party or potential party to a transaction subsequent to the publication of the
advertisement, except that in response to an initial inquiry from a potential
purchaser, the person may forward additional written information regarding the
property which has been prepared prior to the publication by the seller or
broker or a representative of either;
(3) counsels, advises, or offers suggestions to the seller or a
representative of the seller with regard to the marketing, offer, sale, or
lease of the real estate, whether prior to or subsequent to the publication of
the advertisement;
(4) counsels, advises, or offers suggestions to a potential
buyer or a representative of the seller with regard to the purchase or rental
of any advertised real estate; or
(5) engages in any other activity otherwise subject to
licensure under this chapter;
(g) engages wholly or in part in the business of selling real
estate to the extent that a pattern of real estate sales is established,
whether or not the real estate is owned by the person. A person shall be presumed to be engaged in
the business of selling real estate if the person engages as principal in five
or more transactions during any 12-month period, unless the person is
represented by a licensed real estate broker or salesperson.
Sec. 14. Minnesota
Statutes 2004, section 82.36, subdivision 4, is amended to read:
Subd. 4. [ESCROW
ACCOUNT.] The loan broker shall deposit in an escrow account within 48 hours
all fees received prior to the time a loan is actually funded. The escrow account shall be in a bank
located within the state of Minnesota and shall be controlled by an
unaffiliated accountant, lawyer, or bank officer or employee.
Sec. 15. Minnesota
Statutes 2004, section 82.41, subdivision 13, is amended to read:
Subd. 13. [FRAUDULENT,
DECEPTIVE, AND DISHONEST PRACTICES.] (a) [PROHIBITIONS.] For the purposes of
section 82.40 82.35, subdivision 1, clause (b), the following
acts and practices constitute fraudulent, deceptive, or dishonest practices:
(1) act on behalf of more than one party to a transaction
without the knowledge and consent of all parties;
(2) act in the dual capacity of licensee and undisclosed
principal in any transaction;
(3) receive funds while acting as
principal which funds would constitute trust funds if received by a licensee
acting as an agent, unless the funds are placed in a trust account. Funds need not be placed in a trust account
if a written agreement signed by all parties to the transaction specifies a
different disposition of the funds, in accordance with section 82.35, subdivision
1;
(4) violate any state or federal law concerning discrimination
intended to protect the rights of purchasers or renters of real estate;
(5) make a material misstatement in an application for a
license or in any information furnished to the commissioner;
(6) procure or attempt to procure a real estate license for
himself or herself or any person by fraud, misrepresentation, or deceit;
(7) represent membership in any real estate-related
organization in which the licensee is not a member;
(8) advertise in any manner that is misleading or inaccurate
with respect to properties, terms, values, policies, or services conducted by
the licensee;
(9) make any material misrepresentation or permit or allow
another to make any material misrepresentation;
(10) make any false or misleading statements, or permit or
allow another to make any false or misleading statements, of a character likely
to influence, persuade, or induce the consummation of a transaction
contemplated by this chapter;
(11) fail within a reasonable time to account for or remit any
money coming into the licensee's possession which belongs to another;
(12) commingle with his or her own money or property trust
funds or any other money or property of another held by the licensee;
(13) demand from a seller a commission to compensation which
the licensee is not entitled, knowing that he or she is not entitled to the
commission compensation;
(14) pay or give money or goods of value to an unlicensed
person for any assistance or information relating to the procurement by a
licensee of a listing of a property or of a prospective buyer of a property
(this item does not apply to money or goods paid or given to the parties to the
transaction);
(15) fail to maintain a trust account at all times, as provided
by law;
(16) engage, with respect to the offer, sale, or rental of real
estate, in an anticompetitive activity;
(17) represent on advertisements, cards, signs, circulars,
letterheads, or in any other manner, that he or she is engaged in the business
of financial planning unless he or she provides a disclosure document to the
client. The document must be signed by
the client and a copy must be left with the client. The disclosure document must contain the following:
(i) the basis of fees, commissions, or other compensation
received by him or her in connection with rendering of financial planning
services or financial counseling or advice in the following language:
"My compensation may be
based on the following:
(a) ... commissions generated from the products I sell you;
(b) ... fees; or
(c) ... a combination of (a) and (b). [Comments]";
(ii) the name and address of any company or firm that supplies
the financial services or products offered or sold by him or her in the
following language:
"I am authorized to offer or sell products and/or services
issued by or through the following firm(s):
[List]
The products will be traded, distributed, or placed through the
clearing/trading firm(s) of:
[List]";
(iii) the license(s) held by the person under this chapter or
chapter 60A or 80A in the following language:
"I am licensed in Minnesota as a(n):
(a) ... insurance agent;
(b) ... securities agent or broker/dealer;
(c) ... real estate broker or salesperson;
(d) ... investment adviser"; and
(iv) the specific identity of any financial products or
services, by category, for example mutual funds, stocks, or limited
partnerships, the person is authorized to offer or sell in the following language:
"The license(s) entitles me to offer and sell the
following products and/or services:
(a) ... securities, specifically the following: [List];
(b) ... real property;
(c) ... insurance; and
(d) ... other:
[List]."
(b) [DETERMINING VIOLATION.] A licensee shall be deemed to have
violated this section if the licensee has been found to have violated sections
325D.49 to 325D.66, by a final decision or order of a court of competent
jurisdiction.
(c) [COMMISSIONER'S AUTHORITY.] Nothing in this section limits
the authority of the commissioner to take actions against a licensee for
fraudulent, deceptive, or dishonest practices not specifically described in
this section.
Sec. 16. Minnesota Statutes 2004, section 299A.61,
subdivision 3, is amended to read:
Subd. 3. [LIMIT ON
LIABILITY OF FINANCIAL INSTITUTION.] A financial institution, including its
employees or company agents, that provides or reasonably attempts to provide information
regarding stolen, forged, or fraudulent check information checks
for use by the crime alert network, check verification services, consumer
reporting agencies, a banking industry antifraud database consistent with
federal privacy law, or by law enforcement agencies that are investigating
a crime is not liable to any person for disclosing the information, provided
that the financial institution is acting in good faith.
Sec. 17. Minnesota
Statutes 2004, section 325F.69, is amended by adding a subdivision to read:
Subd. 6.
[DECEPTIVE USE OF FINANCIAL INSTITUTION NAME.] No person shall
include the name, trade name, logo, or tagline of a financial institution as
defined in section 49.01, subdivision 2, in a written solicitation for
financial services directed to a customer who has obtained a loan from the
financial institution without written permission from the financial
institution, unless the solicitation clearly and conspicuously states that the
person is not sponsored by or affiliated with the financial institution, which
shall be identified by name. This
statement shall be made in close proximity to, and in the same or larger font
size as, the first and most prominent use or uses of the name, trade name,
logo, or tagline in the solicitation, including on an envelope or through an
envelope window containing the solicitation.
For purposes of this section, the term "financial institution"
includes a financial institution's affiliates and subsidiaries. This subdivision shall not prohibit the use
of a financial institution name, trade name, logo, or tagline of a financial
institution if the use of that name is part of a fair and accurate comparison
of like products or services.
Sec. 18. [REPEALER.]
(a) Minnesota Statutes 2004, section 52.062, subdivision 3,
is repealed.
(b) Minnesota Rules, part 2675.2610, subpart 5, is repealed.
Sec. 19. [EFFECTIVE
DATE.]
Section 8 is effective January 1, 2006."
Delete the title and insert:
"A bill for an act relating to commerce; regulating the
powers and duties of, and annual reporting required for, certain financial
institutions; regulating safe deposit companies; removing obsolete references
to the credit union advisory task force; regulating residential mortgage
originators; regulating real estate brokers and salespersons; providing for
insurance license renewals; regulating for the voluntary dissolution of
fraternal benefit societies; prohibiting the deceptive use of a financial
institution name; amending Minnesota Statutes 2004, sections 47.10, subdivision
1; 47.75; 48.10; 48.15, subdivision 4; 48.512, by adding a subdivision; 52.062,
subdivision 2; 55.10, subdivision 4; 58.16, subdivision 4; 60A.13, subdivision
5; 64B.30, by adding a subdivision; 82.17, subdivisions 10, 18; 82.36,
subdivision 4; 82.41, subdivision 13; 299A.61, subdivision 3; 325F.69, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 58; repealing Minnesota Statutes 2004, section 52.062, subdivision 3;
Minnesota Rules, part 2675.2610, subpart 5."
The motion prevailed and the amendment was adopted.
S. F. No. 1636, A bill for an act
relating to commerce; regulating certain financial institutions; removing
obsolete references to the credit union advisory task force; regulating
residential mortgage originators; providing for insurance license renewals;
regulating for the voluntary dissolution of fraternal benefit societies;
amending Minnesota Statutes 2004, sections 47.10, subdivision 1; 47.75; 48.10;
48.15, subdivision 4; 48.512, by adding a subdivision; 52.062, subdivision 2;
55.10, subdivision 4; 58.16, subdivision 4; 60A.13, subdivision 5; 64B.30, by
adding a subdivision; 82.17, subdivisions 10, 18; 82.36, subdivision 4; 82.41,
subdivision 13; 325F.69, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 58; repealing Minnesota Statutes 2004, section
52.062, subdivision 3; Minnesota Rules, part 2675.2610, subpart 5.
The bill was read for the third time, as amended, and placed
upon its final passage.
The question was taken on the passage of the bill and the roll
was called. There were 131 yeas and 0
nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mariani
Marquart
McNamara
Meslow
Moe
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
The bill was passed, as amended, and its title agreed to.
S. F. No. 1360, A bill for an act relating to commerce;
regulating unclaimed property held by cooperatives and the right to receive or
recover unclaimed property; modifying public notice requirements; regulating
certain abandoned tangible personal property; amending Minnesota Statutes 2004,
sections 308A.711, subdivisions 1, 3; 308B.735, subdivisions 1, 3; 345.42,
subdivision 1; 345.46; proposing coding for new law in Minnesota Statutes,
chapter 345; repealing Minnesota Statutes 2004, sections 308A.711, subdivision
2; 308B.735, subdivision 2; 345.42, subdivisions 2, 3.
The bill was read for the third time and placed upon its final
passage.
The question was taken on the passage of the bill and
the roll was called. There were 133
yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
The bill was passed and its title agreed to.
H. F. No. 814 was reported to the House.
Jaros moved to amend H. F. No. 814, the first engrossment, as
follows:
Page 15, after line 15, insert:
"Sec. 20.
[NO-BUILD EASEMENT.]
Notwithstanding any other law to the contrary, the St. Louis
County Board of Commissioners may convey a three-foot permanent no-build
easement on the northeasterly border of the unsold tax-forfeited property
described as lot 35 in the plat of Upper Duluth St. Louis Avenue to an
individual owner of private property that shares a border with the
tax-forfeited lot."
Page 15, after line 21, insert:
"Section 20 is effective the day after the St. Louis
County Board of Commissioners and its chief clerical officer comply with
Minnesota Statutes, section 645.021, subdivisions 2 and 3."
Renumber the sections in sequence and correct the internal
references
Amend the title accordingly
The motion prevailed and the amendment was adopted.
Fritz moved to amend H. F. No. 814, the first
engrossment, as amended, as follows:
Page 15, after line 15, insert:
"Sec. 20. [PRIVATE
SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATERS; RICE COUNTY.]
(a) Notwithstanding Minnesota Statutes, sections 92.45 and
282.018, subdivision 1, and the public sale provisions of Minnesota Statutes,
chapter 282, Rice County may sell by private sale the tax-forfeited land
bordering public waters described in paragraph (c), under the remaining
provisions of Minnesota Statutes, chapter 282.
(b) The sale must be in a form approved by the attorney
general. The conveyance shall be
subject to the city of Morristown Ordinance No. 170 adopted May 6, 2002,
including, but not limited to, section 19 of Ordinance No. 170 addressing
shoreland setback distances at a minimum distance of 50 feet and limitations on
vegetation removal. The conveyance
shall also reserve to the city an additional 12 feet running parallel to the
50-foot setback zone for public trail purposes.
(c) The land to be sold is located in Rice County and is
described as: Lots 3, 4, and 5, Block
2, original plat of Morristown (parcel #20.0331.000).
(d) The county has determined that the county's land
management interests would best be served if the lands were returned to private
ownership."
Page 15, line 20, delete "20" and insert
"21"
Renumber the sections in sequence
The motion prevailed and the amendment was adopted.
Dill moved to amend H. F. No. 814, the first engrossment, as
amended, as follows:
Page 15, delete section 19 and insert:
"Sec. 19. [PRIVATE
SALE OF TAX-FORFEITED LAND; LAKE COUNTY.]
(a) Notwithstanding the public sale provisions of Minnesota
Statutes, chapter 282, or other law to the contrary, Lake County may sell by
private sale the tax-forfeited land described in paragraph (c).
(b) The conveyance must be in a form approved by the
attorney general. The attorney general
may make necessary changes to the legal description to correct errors and
ensure accuracy.
(c) The land to be sold is located in Lake County and is
described as follows: The Northwest
Quarter of the Northwest Quarter of Section 20, Township 57 North, Range 7
West, Lake County, Minnesota, containing 40 acres more or less.
(d) The county has determined that the county's land
management interests would be best served if the lands were sold to the current
occupant."
Renumber the sections in sequence and correct the
internal references
Amend the title accordingly
The motion prevailed and the amendment was adopted.
H. F. No. 814, A bill for an act relating to public lands;
modifying acquisition, use, and designation provisions for scientific and
natural areas; authorizing public and private sales and conveyances of certain
state lands; allowing Itasca County to acquire land for a public access with
money from the Itasca County environmental trust fund; authorizing the
conveyance of a certain no-build easement by the St. Louis County Board of
Commissioners; amending Minnesota Statutes 2004, sections 84.033, by adding a
subdivision; 97A.093; repealing Minnesota Statutes 2004, section 84.033,
subdivision 2.
The bill was read for the third time, as amended, and placed
upon its final passage.
The question was taken on the passage of the bill and the roll
was called. There were 129 yeas and 4
nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilstrom
Hilty
Hoppe
Hornstein
Hortman
Hosch
Howes
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who voted in the negative were:
Buesgens
Holberg
Huntley
Krinkie
The bill was passed, as amended, and its title agreed to.
Walker was excused for the remainder of today's session.
S. F. No. 630 was reported to the
House.
Smith moved to amend S. F. No. 630 as follows:
Delete everything after the enacting clause and insert the
following language of H. F. No. 1321, the second engrossment:
"ARTICLE
1
CHILD
CUSTODY AND PARENTING TIME
Section 1. Minnesota
Statutes 2004, section 357.021, is amended by adding a subdivision to read:
Subd. 8.
[MARITAL DISSOLUTION FEE.] (a) The court administrator shall collect
in each proceeding in the district seeking a dissolution of a marriage or a
legal separation, in the manner in which other fees are collected, a marital
dissolution fee in the amount of $48 from:
(1) the petitioner instituting the marital dissolution or
legal separation, to be collected at the time of the filing of the first paper;
and
(2) the respondent who appears, to be collected at the time
of the filing of the first paper by the respondent or at the time when the
respondent's appearance is entered in the case.
(b) The court administrator shall forward the marital
dissolution fee to the commissioner of finance for deposit in the general fund.
[EFFECTIVE DATE.] This
section is effective July 1, 2005.
Sec. 2. Minnesota
Statutes 2004, section 518.17, subdivision 1, is amended to read:
Subdivision 1. [THE
BEST INTERESTS OF THE CHILD.] (a) "The best interests of the child"
means all relevant factors to be considered and evaluated by the court
including, but not limited to:
(1) the wishes of the child's parent or parents as to custody;
(2) the reasonable preference of the child, if the court deems
the child to be of sufficient age to express preference;
(3) the child's primary caretaker;
(4) the intimacy of the relationship between each parent and
the child;
(5) the interaction and interrelationship of the child with a
parent or parents, siblings, and any other person who may significantly affect
the child's best interests;
(6) the child's adjustment to home, school, and community;
(7) the length of time the child has lived in a stable,
satisfactory environment and the desirability of maintaining continuity;
(8) the permanence, as a family unit, of the existing
or proposed custodial home;
(9) the mental and physical health of all individuals involved;
except that a disability, as defined in section 363A.03, of a proposed
custodian or the child shall not be determinative of the custody of the child,
unless the proposed custodial arrangement is not in the best interest of the
child;
(10) the capacity and disposition of the parties to give the
child love, affection, care, and guidance, to ensure the child a good
education, to provide the child with a nurturing environment, and to
continue educating and raising the child in the child's culture,
language or languages, and religion or creed, if any;
(11) the child's cultural, linguistic, and religious
background;
(12) the effect on the child of the actions of an abuser, if
related to domestic abuse, as defined in section 518B.01, that has occurred
between the parents or between a parent and another individual, whether or not
the individual alleged to have committed domestic abuse is or ever was a family
or household member of the parent; and
(13) except in cases in which a finding of domestic abuse as
defined in section 518B.01 has been made, the disposition of each parent to
encourage and permit frequent and continuing contact by the other parent with
the child.;
(14) any addiction to alcohol or other habituating
substances or physical or sexual abuse attributable to either parent or any
person living with either parent insofar as the acts, addiction, violence, or
habits may adversely affect the child; and
(15) any false allegations made in bad faith by one parent
against the other parent or anybody living with the other parent to gain unfair
advantage in the custody determination.
The court may not use one factor to the exclusion of all
others. The primary caretaker factor
may not be used as a presumption in determining the best interests of the child. The court must make detailed findings on
each of the factors and explain how the factors led to its conclusions and to
the determination of the best interests of the child.
(b) The court shall not consider conduct of a proposed
custodian that does not affect the custodian's relationship to the child. In determining the best interests of the
child, the court may not use any one factor to the exclusion of all others, may
not use the primary caretaker factor as a presumption, may not prefer one parent
over the other on account of gender, and must make detailed findings of each
relevant factor and explain how each has led to the conclusion reached, unless
the presumption set forth in subdivision 2, paragraph (a), is applied and
followed.
[EFFECTIVE DATE.] This
section is effective July 1, 2007.
Sec. 3. Minnesota
Statutes 2004, section 518.17, subdivision 2, is amended to read:
Subd. 2. [FACTORS
WHEN JOINT CUSTODY IS SOUGHT REBUTTABLE PRESUMPTIONS IN CHILD CUSTODY
DISPUTES.] In addition to the factors listed in subdivision 1, where
either joint legal or joint physical custody is contemplated or sought, the
court shall consider the following relevant factors:
(a) the ability of parents to cooperate in the rearing of
their children; The court shall use a rebuttable presumption that joint
legal and physical custody is in the best interests of the child. Any departure from that presumption must be
justified by detailed findings.
Whenever it appears that the parents have difficulty in communication or
cooperation with respect to the child, the court may establish rules which
govern in case of disagreement between them.
(b) methods for resolving
disputes regarding any major decision concerning the life of the child, and the
parents' willingness to use those methods; If it appears that both
parents are fit, but that joint legal and physical custody is not feasible and
cannot be remedied by rules which govern in case of disagreement between the
parents, the court shall use a rebuttable presumption that the best interests
of the child will be served by granting legal and physical custody to the
parent more disposed to encourage and permit frequent and continuing contact
with the child by the other parent. Any
departure from that presumption must be justified by detailed findings.
(c) whether it would be detrimental to the child if one
parent were to have sole authority over the child's upbringing; and
(d) whether domestic abuse, as defined in section 518B.01,
has occurred between the parents.
The court shall use a rebuttable presumption that upon
request of either or both parties, joint legal custody is in the best interests
of the child. However, The court
shall use a rebuttable presumption that joint legal or physical custody is not
in the best interests of the child if domestic abuse, as defined in section
518B.01, has occurred between the parents.
Use of that presumption requires detailed findings.
If the court awards joint legal or physical custody over the
objection of a party, the court shall make detailed findings on each of the
factors in this subdivision and explain how the factors led to its
determination that joint custody would be in the best interests of the child.
[EFFECTIVE DATE.] This
section is effective July 1, 2007.
Sec. 4. Minnesota
Statutes 2004, section 518.175, is amended by adding a subdivision to read:
Subd. 1b.
[PARENTING TIME; MEANING.] "Parenting time" means the
amount of time a child is scheduled to spend with the parent according to a
court order. Parenting time includes
time with the child whether it is designated as visitation, physical custody,
or parenting time. The percentage of
parenting time may be calculated by calculating the number of overnights that a
child spends with a parent, or by using a method other than overnights as the
parent has significant time periods where the child is in the parent's physical
custody, but does not stay overnight.
Sec. 5. [518.1781]
[SIX-MONTH REVIEW.]
(a) A request for a six-month review hearing form must be
attached to a decree of dissolution or legal separation or an order that
initially establishes child custody, parenting time, or support rights and
obligations of parents. The state court
administrator is requested to prepare the request for review hearing form. The form must include information regarding
the procedures for requesting a hearing, the purpose of the hearing, and any
other information regarding a hearing under this section that the state court
administrator deems necessary.
(b) The six-month review hearing shall be held if any party
submits a written request for a hearing within six months after entry of a
decree of dissolution or legal separation or order that establishes child
custody, parenting time, or support.
(c) Upon receipt of a completed request for hearing form,
the court administrator shall provide notice of the hearing to all other
parties and the public authority. The
court administrator shall schedule the six-month review hearing as soon as
practicable following the receipt of the hearing request form.
(d) At the six-month hearing, the court must review:
(1) whether child support is current; and
(2) whether both parties are
complying with the parenting time provisions of the order.
(e) At the six-month hearing, the obligor has the burden to
present evidence to establish that child support payments are current. A party may request that the public
authority provide information to the parties and court regarding child support
payments. A party must request the
information from the public authority at least 14 days before the hearing. The commissioner of human services must
develop a form to be used by the public authority to submit child support
payment information to the parties and court.
(f) Contempt of court and all statutory remedies for child
support and parenting time enforcement may be imposed by the court at the
six-month hearing for noncompliance by either party pursuant to chapters 517C
and 588 and the Minnesota Court Rules.
ARTICLE
2
CHILD
SUPPORT
Section 1. [517C.01]
[TITLE.]
This chapter may be cited as the "Minnesota Child
Support Act."
Sec. 2. [517C.02]
[LEGISLATIVE INTENT.]
The legislature of the state of Minnesota finds that in all
cases of dissolution of marriage, separate maintenance, adjudication of
paternity, and all other cases in which child support must be apportioned
between them, both parents have an equal duty to pay for the actual cost of
supplying the reasonable needs of the child or children had in common between
them in proportion to their respective incomes and resources. The best interests of the child or children
are served, so far as this state is concerned, when this obligation is fairly
apportioned.
Sec. 3. [517C.03]
[DEFINITIONS.]
Subdivision 1.
[SCOPE.] The definitions in this section apply to this chapter.
Subd. 2.
[ARREARS.] "Arrears" means amounts owed under a support
order that are past due. Arrears
include:
(1) child support;
(2) the entire amount of court-ordered past support and
pregnancy and confinement expenses if:
(i) the order does not contain repayment terms; or
(ii) the order contains repayment terms and the obligor
fails to comply with the repayment terms; and
(3) attorney fees and any other collection costs addressed
in a support order under section 517C.84.
Subd. 3. [BASIC
SUPPORT.] "Basic support" means the dollar amount ordered for a
child's housing, food, clothing, transportation, and education costs, and other
expenses relating to the child's care. Basic
support does not include monetary contributions for a child's private school
tuition, child care expenses, and medical and dental expenses.
Subd. 4. [BUSINESS DAY.] "Business day"
means a day on which state offices are open for regular business.
Subd. 5.
[CHILD.] "Child" means an individual under 18 years of age,
an individual under age 20 who is still attending secondary school, or an
individual who, by reason of physical or mental condition, is incapable of
self-support.
Subd. 6. [CHILD
SUPPORT.] "Child support" means an amount for basic support, child
care support, and medical support pursuant to:
(1) an award in a dissolution, legal separation, annulment,
or parentage proceeding for the care, support, and education of a child of the
marriage or of the parties to the proceeding;
(2) a contribution by parents ordered under section 256.87;
or
(3) support ordered under chapter 518B or 518C.
Subd. 7.
[DEPOSIT ACCOUNT.] "Deposit account" means funds deposited
with a financial institution in the form of a savings account, checking
account, NOW account, or demand deposit account.
Subd. 8.
[FINANCIAL INSTITUTION.] "Financial institution" means a
savings association, bank, trust company, credit union, industrial loan and
thrift company, bank and trust company, or savings association, and includes a
branch or detached facility of a financial institution.
Subd. 9.
[OBLIGEE.] "Obligee" means a person to whom payments for
child support are owed.
Subd. 10.
[OBLIGOR.] "Obligor" means a person obligated to pay child
support. A person who is designated as
the sole physical custodian of a child is presumed not to be an obligor for
purposes of calculating current support unless the court makes specific written
findings to overcome this presumption.
For purposes of ordering medical support under section 517C.17, a
custodial parent may be an obligor subject to income withholding under section
517C.17; a cost-of-living adjustment under section 517C.31; and a payment
agreement under section 517C.71.
Subd. 11.
[PAYMENT.] "Payment" means the payment of child support and
related payments required by order of a tribunal, voluntary support, or
statutory fees.
Subd. 12. [PAYOR
OF FUNDS.] "Payor of funds" means a person or entity that provides
funds to an obligor, including an employer as defined under chapter 24, section
3401(d), of the Internal Revenue Code, an independent contractor, payor of
workers' compensation benefits or unemployment insurance benefits, or a
financial institution as defined in section 13B.06.
Subd. 13.
[PUBLIC AUTHORITY.] "Public authority" means the local unit
of government, acting on behalf of the state, that is responsible for child
support enforcement or the Child Support Enforcement Division of the Department
of Human Services.
Subd. 14.
[SUPPORT ORDER.] (a) "Support order" means a judgment,
decree, or order, whether temporary, final, or subject to modification, issued
by a court or administrative agency of competent jurisdiction that:
(1) provides for the support of a child, including a child
who has attained the age of majority under the law of the issuing state, or a
child and the parent with whom the child is living;
(2) provides for basic support, child care, medical support
including expenses for confinement and pregnancy, arrears, or reimbursement;
and
(3) may include related costs
and fees, interest and penalties, income withholding, and other relief.
(b) The definition in paragraph (a) applies to orders issued
under this chapter and chapters 256, 257, and 518C.
Subd. 15.
[TRIBUNAL.] "Tribunal" has the meaning given in section
518C.101.
Subd. 16.
[UNCLAIMED SUPPORT FUNDS.] "Unclaimed support funds" means
any support payments collected by the public authority from the obligor which have
not been disbursed to the obligee or public authority.
Subd. 17. [IV-D
CASE.] "IV-D case" means a case where a party assigns rights to
child support to the state because the party receives public assistance, as
defined in section 256.741, or applies for child support services under title
IV-D of the Social Security Act, United States Code, title 42, section 654(4).
Sec. 4. [517C.04]
[CHILD SUPPORT ORDERS.]
Subdivision 1.
[ORDER.] (a) Upon dissolution of marriage, legal separation,
annulment, establishment of paternity, or when otherwise required by statute,
the court must order child support as provided by this chapter.
(b) Nothing contained in this chapter limits the power of
the court to make appropriate, adequate orders for the support and education of
a child of the parties to a dissolution, legal separation, or annulment action
if the dissolution, legal separation, or annulment is denied.
Subd. 2.
[PROVISIONS.] Child support orders must provide for general
child-rearing costs or basic support and must also specifically address child
care costs and medical care, providing for those costs pursuant to this
chapter.
Subd. 3.
[AGREEMENTS.] If the parties stipulate or agree to a child support
order, the court must review the agreement to ensure it serves the best
interests of the child. The Minnesota
Supreme Court may promulgate rules regarding the review of stipulations and
agreements. The court may refuse to
accept or may alter an agreement that does not conform with the requirements of
this chapter or that is otherwise not in the best interests of the child.
Subd. 4.
[SPECIFIC DOLLAR AMOUNT.] (a) The court must order child support in a
specific dollar amount.
(b) The court may order an obligor to pay child support in
the form of a percentage share of the obligor's net bonuses, commissions, or
other forms of compensation, in addition to or, if the obligor receives no base
pay, in lieu of an order for a specific dollar amount.
Subd. 5.
[PREFERENCE FOR MONTHLY PAYMENT.] There is a presumption in favor of
ordering child support in an amount that reflects an obligor's monthly
obligation.
Subd. 6.
[PREFERENCE FOR STATIC PAYMENT.] There is a presumption in favor of
ordering child support so that an obligor makes the same monthly payments
throughout the year, as opposed to payment amounts that fluctuate by season or
month. If the obligor is seasonally
employed, it is generally the obligor's responsibility to budget income
accordingly.
Subd. 7.
[DEPARTURE.] The court may depart from a presumption in subdivision 5
or 6 if:
(1) all parties agree; or
(2) the presumption would impose an extreme hardship on the
obligor and would not be in the best interests of the child.
Subd. 8.
[ACCOUNTING FOR CHILD SUPPORT BY OBLIGEE.] (a) Upon an obligor's
motion, a court may order an obligee to account for the use or disposition of
child support received. The motion must
assert the specific allegations of abuse or misapplication of child support
received and that a child's needs are not being met. If the court orders a hearing, the court may order an accounting
only if the obligor establishes:
(1) the specific allegations of abuse or misapplication of
child support received;
(2) that the child's needs are not being met; and
(3) that there is no record or history of domestic abuse,
harassment, or violence between the parties.
(b) If the court orders an accounting under paragraph (a),
the obligee must provide documentation that breaks down monthly expenditures of
child support received into the following categories:
(1) housing and utilities;
(2) food;
(3) transportation;
(4) clothing;
(5) health care;
(6) child care and education; and
(7) miscellaneous.
An obligee may account for
expenditures on housing, utilities, food, and transportation that are
attributable to multiple household members on a per capita basis.
(c) If the court finds that an obligee does not make the
accounting required under paragraph (b) or the obligee does not spend the
entire child support payment on behalf of the child, the court may:
(1) hold the obligee in contempt of court pursuant to this
chapter, chapter 588, and the Minnesota Court Rules;
(2) reduce or eliminate the obligor's child support
obligation;
(3) order the obligee to make future expenditures on behalf
of the child, whether in whole or in part, in a manner that documents the
transaction; or
(4) make any other appropriate order to ensure that the
child's needs are met.
(d) If the court determines that an obligor's motion under
this section is brought in bad faith, the court may award reasonable attorney
fees to the obligee.
Subd. 9. [CHILD
SUPPORT TO BE DISTINGUISHED FROM MAINTENANCE.] In a judgment of dissolution
or legal separation, the court must clearly distinguish between payments
ordered for maintenance and payments ordered for child support. An award of payments from future income or
earnings of the parent with whom the child resides is presumed to be
maintenance and an award of payments from the future income or earnings of the
other parent is presumed to be child support, unless otherwise designated by
the court.
Subd. 10.
[OTHER CUSTODIANS.] If a child resides with a person other than a
parent and the court approves of the custody arrangement, the court may order
child support payments to be made to the custodian regardless of whether the
person has legal custody.
Subd. 11.
[EITHER PARENT LIABLE; MARITAL MISCONDUCT IRRELEVANT.] The court may
order either or both parents owing a duty of support to a child to pay an
amount reasonable or necessary for the child's support, without regard to
marital misconduct.
[EFFECTIVE DATE.] Subdivision
8 is effective July 1, 2007.
Sec. 5. [517C.05]
[TEMPORARY ORDERS.]
Subdivision 1.
[MOTION; SCOPE.] In a child support proceeding a party may, by
motion, request that the court grant a temporary order pending the final
disposition of the proceeding for temporary child support, costs, and
reasonable attorney fees. Additionally,
to facilitate the just and speedy disposition of the proceeding, the court may
require a party to perform or refrain from performing additional acts.
Subd. 2.
[DURATION.] A temporary order continues in full force and effect
until:
(1) it is amended;
(2) it is vacated;
(3) the main action is dismissed; or
(4) a final decree of dissolution, legal separation, or
other final order is entered.
Subd. 3.
[FACTORS.] The court must consider the factors set forth in this
chapter in making temporary orders.
Subd. 4.
[EVIDENCE.] Temporary orders must be made solely on the basis of
affidavits and argument of counsel unless:
(1) a party makes a timely motion or responsive motion to
hear the matter on oral testimony before the court; or
(2) the court, in its discretion, orders the taking of oral
testimony.
Subd. 5.
[LIMITED EFFECT.] A temporary order does not prejudice the rights of
the parties or the child that are to be adjudicated at subsequent hearings in
the proceeding.
Subd. 6.
[REVOCATION; MODIFICATION.] A temporary order may be revoked or
modified by the court before the final disposition of the proceeding upon the
same grounds and subject to the same requirements as the initial granting of
the order.
Sec. 6. [517C.06]
[DETERMINATION OF CONTROLLING ORDER.]
The public authority or a party may request the court to
determine a controlling order when more than one order involving the same
obligor and child exists.
Sec. 7.
[517C.07] [ATTORNEY FEES; COSTS AND DISBURSEMENTS.]
Subdivision 1.
[GENERAL.] (a) Except as provided in section 517C.84, in a proceeding
under this chapter, the court must award attorney fees, costs, and
disbursements in an amount necessary to enable a party to carry on or contest
the proceeding if:
(1) the fees are necessary for the good-faith assertion of
the party's rights in the proceeding and will not contribute unnecessarily to
the length and expense of the proceeding;
(2) the party from whom fees, costs, and disbursements are
sought has the means to pay them; and
(3) the party to whom fees, costs, and disbursements are
awarded does not have the means to pay them.
(b) Fees, costs, and disbursements may be awarded at any
point during or after a proceeding under this chapter, including if a
proceeding is dismissed or abandoned.
(c) The court may assess costs and disbursements against
either party.
Subd. 2.
[UNREASONABLE ACTIONS.] The court may, in its discretion, assess
additional fees, costs, and disbursements against a party who unreasonably contributes
to the length or expense of the proceeding.
Subd. 3.
[COLLECTION.] The court may authorize the collection of money awarded
by execution, out of property sequestered, or in any other manner within the
power of the court. An award of
attorney fees survives the proceeding.
If the award is not paid by the party directed to pay it, the award may
be enforced as provided by this subdivision or by a separate civil action
brought in the attorney's own name.
Sec. 8. [517C.10]
[EXCHANGE OF INFORMATION.]
Subdivision 1.
[DOCUMENTATION.] (a) The parties must timely serve and file
documentation of earnings and income.
When there is a prehearing conference, the court must receive the
documentation at least ten days before the prehearing conference.
(b) Documentation of earnings and income includes, but is
not limited to, pay stubs for the most recent three months, employer
statements, or statement of receipts and expenses if self-employed. Documentation of earnings and income also
includes copies of each parent's most recent federal tax returns, W-2 forms,
1099 forms, unemployment insurance benefits statements, workers' compensation
statements, and all other documents evidencing the receipt of income that
provide verification of income over a longer period.
Subd. 2.
[EXCHANGE OF TAX RETURNS.] At any time after a party commences an
action seeking child support or when a child support order is in effect, a
party or the public authority may require the other party to give them a copy
of the other party's most recent federal tax returns that were filed with the
Internal Revenue Service. The party
must provide a copy of the tax returns within 30 days of receiving the request
unless the request is not made in good faith.
A party may not make a request under this subdivision more than once
every two years, in the absence of good cause.
Subd. 3. [NOTICE
OF ADDRESS OR RESIDENCE CHANGE.] An obligor must notify other parties of a
change of address or residence within 60 days of the address or residence change.
Subd. 4. [NOTICE
TO PUBLIC AUTHORITY; PUBLIC ASSISTANCE.] The petitioner must notify the
public authority of all proceedings for dissolution, legal separation,
determination of parentage, or for the custody of a child, if either party is
receiving public assistance or applies for it subsequent to the commencement of
the proceeding. The notice must contain
the full names of the parties to the proceeding, their Social Security account
numbers, and their birth dates.
Subd. 5.
[FAILURE OF NOTICE.] If the court in a dissolution, legal separation,
or determination of parentage proceeding, finds before issuing the order for
judgment and decree, that notification has not been given to the public
authority, the court must set child support according to the guidelines in this
chapter. In those proceedings in which
no notification has been made pursuant to this section and in which the public
authority determines that the judgment is lower than the child support required
by the guidelines in this chapter, it must move the court for a redetermination
of the support payments ordered so that the support payments comply with the
guidelines.
Sec. 9. [517C.11]
[PRIVACY PROTECTION; PERSONAL PROTECTION.]
Subdivision 1.
[SOCIAL SECURITY NUMBERS; TAX RETURNS.] The Social Security numbers
and tax returns required under this chapter are not accessible to the public,
except that they must be disclosed to the other parties to a proceeding as
provided in section 517C.10.
Subd. 2.
[MODIFICATION OF CERTAIN REQUIREMENTS.] The court may waive, modify,
or limit the information exchange requirements of this chapter by order if
necessary to protect a party from contact by another party.
Subd. 3. [ACCESS
TO ADDRESS FOR SERVICE OF PROCESS.] (a) If the public authority is a party
or is providing services in a child support case, a party may obtain an ex
parte order under this subdivision. The
party may obtain an ex parte order requiring the public authority to serve
legal documents on the other party by mail if the party submits a sworn
affidavit to the court stating that:
(1) the party needs to serve legal process in a support
proceeding and does not have access to the address of the other party;
(2) the party has made reasonable efforts to locate the
other party; and
(3) the other party is not represented by counsel.
(b) The public authority must serve legal documents provided
by the moving party at the last known address of the other party upon receipt
of a court order under paragraph (a).
The public authority must provide for appropriate service and must
certify to all parties the date of service by mail. The public authority's proof of service must not include the
place or address of service.
(c) The state court administrator must prepare and make
available forms for use in seeking access to an address under this subdivision.
Sec. 10. [517C.12]
[INCOME.]
Subdivision 1.
[DEFINITION.] For purposes of calculating child support under this
chapter, "income" means gross income.
Subd. 2. [SOURCES.]
For purposes of this chapter, income includes any form of periodic payment
to an individual including, but not limited to:
(1) wages;
(2) salaries;
(3) payments to an independent contractor;
(4) workers' compensation;
(5) unemployment insurance benefits;
(6) annuity;
(7) military and naval retirement;
(8) pension and disability payments; and
(9) in-kind payments received by the obligor in the course
of employment, self-employment, or operation of a business if the payments reduce
the obligor's living expenses.
Subd. 3.
[COMMISSIONS; BONUSES.] If the court finds that a party's commissions
or bonuses are reliable and predictable, the court may include them in income
calculations.
Subd. 4.
[SELF-EMPLOYMENT; INDEPENDENT CONTRACTORS.] Income from
self-employment is equal to gross receipts minus ordinary and necessary
expenses. Ordinary and necessary
expenses include what would otherwise be the employer's share of the
contributions under the Federal Insurance Contributions Act (FICA), United
States Code, title 26, subtitle C, chapter 21, subchapter A, sections 3101 to
3126. Ordinary and necessary expenses
do not necessarily include amounts allowed by the Internal Revenue Service for accelerated
depreciation expenses or investment tax credits or any other business expenses
determined by the court to be inappropriate for determining income for purposes
of child support. The person seeking to
deduct an expense, including depreciation, has the burden of proving, if
challenged, that the expense is ordinary and necessary. Income calculated under this section may be
different from taxable income.
Subd. 5. [PUBLIC
ASSISTANCE EXCLUSIONS.] Benefits received under chapter 256J and title IV-A
of the Social Security Act are not income under this section.
Subd. 6.
[OVERTIME.] (a) Income does not include compensation received by a
party for employment in excess of a 40-hour work week if:
(1) the excess employment is not within the normal range of
hours worked, given the party's employment history;
(2) the excess employment is voluntary and not a condition
of employment;
(3) the excess employment is in the nature of additional,
part-time, or overtime employment compensable by the hour or fraction of an
hour; and
(4) the party's compensation structure has not been changed
for the purpose of affecting a child support obligation.
(b) The court may presume that a party with seasonal or
intermittent income who works periods in excess of a 40-hour work week, but who
works a substantially normal number of hours over the course of a year, is
working within the normal range of hours worked.
Subd. 7. [INCOME
OF A SPOUSE OR OTHER HOUSEHOLD MEMBER.] (a) Income must not include the
income of a party's spouse or other household member. The court must not consider the income or resources provided by a
spouse or other household member when determining all the earnings, income, and
resources of a parent under sections 517C.25 to 517C.29.
(b) Notwithstanding paragraph
(a), the court may issue an order permitting discovery of a spouse's or other
household member's income information if there is probable cause to believe the
spouse or other household member is being used to shelter income from a party. If the court finds that income was
improperly or unfairly sheltered, it may impute income to the party or
otherwise adjust the support amount in a just and proper manner. However, the court may not under any
circumstances consider income or resources properly attributable to a spouse or
other household member when setting support.
Subd. 8. [PRIOR
SUPPORT OR MAINTENANCE ORDERS.] The amount of a support or maintenance
order, not including orders for support or maintenance debts or arrears, must
be deducted from income.
Subd. 9. [LEGALLY
DEPENDENT CHILD.] (a) For purposes of this subdivision, a "legally
dependent child" means a child:
(1) whose primary residence is with a parent eligible for a
deduction from income under this subdivision;
(2) whom the parent has the legal duty to support;
(3) who is not a subject of the current child support
action;
(4) for whom the parent is not ordered to pay child support;
and
(5) for whom no other person has court-ordered sole physical
custody.
(b) The court must deduct an amount from a parent's income
for a legally dependent child. The
amount deducted from income for each legally dependent child must be computed
using the following method:
(1) determine 120 percent of the federal poverty guidelines
for a family size equal to two parents plus each legally dependent child;
(2) divide the amount determined under clause (1) by the
family size determined under clause (1);
(3) multiply the amount calculated under clause (2) by the
number of legally dependent children; and
(4) divide the amount calculated under clause (3) by two to
determine the deduction amount for one parent.
The amount determined for one parent must be divided by 12 to determine
the amount of the deduction from a parent's monthly income.
(c) The commissioner of human services must publish a table
listing the amount of the deduction for each legally dependent child by family
size and must update the table for changes to the federal poverty guidelines by
July 1 of each year.
Sec. 11. [517C.13]
[IMPUTED INCOME.]
Subdivision 1.
[NONAPPEARANCE OF A PARENT.] If a parent under the jurisdiction of
the court does not appear at a court hearing after proper notice of the time
and place of the hearing, the court must set income for that parent based on
credible evidence before the court or in accordance with subdivision 3. Credible evidence may include documentation
of current or recent income, testimony of the other parent concerning recent
earnings and income levels, and the parent's wage reports filed with the
Minnesota Department of Employment and Economic Development under section
268.044.
Subd. 2. [VOLUNTARY UNEMPLOYMENT OR UNDEREMPLOYMENT.]
(a) The principles of income imputation apply equally to both parents.
(b) If the court finds that a parent is voluntarily
unemployed or underemployed or was voluntarily unemployed or underemployed
during the period for which past support is being sought, a court must
calculate support based on a determination of imputed income.
(c) A parent is not considered voluntarily unemployed or
underemployed upon a showing by the parent that:
(1) the unemployment or underemployment is temporary and
will ultimately lead to an increase in income;
(2) the unemployment or underemployment represents a bona
fide career change that outweighs the adverse effect of that parent's
diminished income on the child;
(3) the parent is a recipient of public assistance under
section 256.741; or
(4) the parent is physically or mentally incapacitated.
(d) Imputed income means the estimated earning ability of a
parent based on the parent's prior earnings history, education, and job skills,
and on availability of jobs within the community for an individual with the
parent's qualifications.
Subd. 3.
[INSUFFICIENT INFORMATION.] If there is insufficient information to
determine actual income or to impute income pursuant to subdivision 1 or 2, the
court may calculate support based on full-time employment of 40 hours per week
at 150 percent of the federal minimum wage or the Minnesota minimum wage,
whichever is higher.
Subd. 4. [PARENT
PROVIDING AT-HOME CHILD CARE.] If a parent stays home to care for a child
who is the subject of the child support order, the court must consider the
following factors when determining whether the parent is voluntarily unemployed
or underemployed:
(1) the parties' parenting and child care arrangements
before the child support action;
(2) the stay-at-home parent's employment history, including
recency of employment and earnings, and the availability of jobs within the
community for an individual with the parent's qualifications;
(3) the relationship between the employment-related
expenses, including child care, transportation costs, suitable clothing, and
other items required for the parent to be employed, and the income the
stay-at-home parent could receive from available jobs within the community for
an individual with the parent's qualifications;
(4) the child's age and health, including whether the child
is physically or mentally disabled; and
(5) the availability of appropriate child care providers.
Sec. 12. [517C.14]
[PRESUMPTIVE CHILD SUPPORT ORDER; GENERAL.]
Subdivision 1.
[REBUTTABLE PRESUMPTION.] The guidelines in sections 517C.12 to
517C.18 are a rebuttable presumption and must be used in all cases when
establishing or modifying child support.
Subd. 2. [CHILD'S INSURANCE BENEFIT.] In
establishing or modifying child support, if a child receives a child's
insurance benefit under United States Code, title 42, section 402, because the
obligor is entitled to old age or disability insurance benefits, the amount of
support ordered must be offset by the amount of the child's benefit. The court must make findings regarding the
obligor's income from all sources, the child support amount calculated under
this chapter, the amount of the child's benefit, and the obligor's child
support obligation. A benefit received
by the child in a given month in excess of the child support obligation must
not be treated as a payment of arrears or a future payment.
Sec. 13. [517C.15]
[BASIC SUPPORT.]
Subdivision 1.
[BASIC SUPPORT; SCHEDULE.] (a) Unless otherwise agreed to by the
parents and approved by the court, the court must order that basic support be
divided between the parents based on their proportionate share of the parents'
combined monthly income, as determined under section 517C.12.
(b) For parents with a combined monthly income less than or
equal to 100 percent of the federal poverty guidelines amount for two people,
the commissioner of human services must determine the percentages in this
paragraph by taking two times the minimum basic support amount under section
517C.18, subdivision 2, divided by 100 percent of the federal poverty
guidelines amount for two people. For all
other parents, basic support must be computed using the following schedule,
prepared based on 2001 United States Department of Agriculture expenditure
data:
Parents'
Number of Children
Combined
Monthly
Income One Two Three Four Five
Six
Below $1,000 10.0% 16.1% 18.6% 21.6% 25.1% 29.1%
$1,000 - $1,499 10.0% 16.1% 18.6% 21.6% 25.1% 29.1%
$1,500 - $1,999 19.4% 31.3% 36.2% 42.0% 48.7% 56.5%
$2,000 - $2,499 28.7% 46.3% 53.5% 62.1% 72.0% 83.5%
$2,500 - $2,999 25.0% 40.3% 46.5% 53.9%
62.6% 72.6%
$3,000 - $3,499 22.5% 36.3% 41.9% 48.6% 56.4% 65.4%
$3,500 - $3,999 20.7% 33.4% 38.5% 44.7% 51.8% 60.1%
$4,000 - $4,499 19.4% 31.2% 36.1% 41.9% 48.6% 56.3%
$4,500 - $4,999 18.3% 29.6% 34.1% 39.6% 45.9% 53.2%
$5,000 - $5,499 17.5% 28.2% 32.6% 37.8% 43.9% 50.9%
$5,500 - $5,999 16.8% 27.1% 31.3% 36.3% 42.1% 48.9%
$6,000 - $6,400 16.2% 26.2% 30.2% 35.0% 40.6% 47.1%
$6,500 - $6,999 15.8% 25.4% 29.3% 34.0% 39.4% 45.7%
$7,000 - $7,499 15.4% 24.8% 28.6% 33.2% 38.5% 44.6%
$7,500 - $7,999 15.0% 24.2% 27.9% 32.4% 37.5% 43.5%
$8,000 - $8,499 14.7% 23.7% 27.3% 31.7% 36.7% 42.6%
$8,500 - $8,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$9,000 - $9,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$9,500 - $9,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$10,000 - $10,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$10,500 - $10,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$11,000 - $11,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$11,500 - $11,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$12,000 - $12,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$12,500 - $12,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$13,000
- $13,499
$13,500 - $13,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$14,000 - $14,499 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$14,500 - $14,999 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
$15,000 or
the amount 14.4% 23.3% 26.8% 31.1% 36.1% 41.8%
in effect
under subd. 4
(c) The commissioner of human services must compute and
publish a schedule of basic support amounts calculated using the percentages in
paragraph (b). The schedule must show
basic support amounts for combined monthly income increments of not more than
$100. The commissioner must determine
the percentages for each income increment by interpolating between the
percentages in paragraph (b). The
commissioner may disregard a fractional part of a dollar unless it amounts to
50 cents or more, in which case the commissioner may increase the amount by $1.
Subd. 2.
[SEPARATE HOUSEHOLD ADJUSTMENT.] After determining each parent's
basic support under subdivision 1, the court must reduce the basic support of
each parent by 20 percent.
Subd. 3. [JOINT
PHYSICAL CUSTODY.] (a) If a court order establishes a parenting time
schedule wherein the obligor has care of the child at least 45 percent of the
time, an obligor's basic support obligation is 50 percent of the difference
between the parents' basic support obligation, as determined under subdivision
1.
(b) A parenting time division approximates joint physical
custody if each parent provides, or is responsible for providing, care at least
45 percent of the days in a year.
Subd. 4. [INCOME
CAP ON DETERMINING BASIC SUPPORT.] (a) The basic support obligation for
parents with a combined monthly income in excess of the income limit currently
in effect under subdivision 1 must be the same dollar amount as provided for
parents with a combined monthly income equal to the income limit in effect
under subdivision 1.
(b) A court may order a basic support obligation in a child
support order in an amount that exceeds the income limit in subdivision 1 if it
finds that a child has a disability or other substantial, demonstrated need for
the additional support and that the additional support will directly benefit
the child.
(c) The dollar amount for the cap in subdivision 1 must be
adjusted on July 1 of every even-numbered year to reflect cost-of-living
changes. The Supreme Court must select
the index for the adjustment from the indices listed in section 517C.31. The state court administrator must make the
changes in the dollar amounts required by this paragraph available to courts
and the public on or before April 30 of the year in which the amount is to
change.
Subd. 5. [MORE
THAN SIX CHILDREN.] If a child support proceeding involves more than six
children, the court may derive a support order without specifically following
the guidelines. However, the court must
consider the basic principles encompassed by the guidelines and must consider
both parents' needs, resources, and circumstances.
Subd. 6. [REPORT
TO LEGISLATURE.] By January 15 each year, the commissioner of human services
must submit a report to the legislature on the basic support schedule. The report must include the following:
(1) information on any changes to the United States
Department of Agriculture expenditure data used in constructing the basic
support schedule under subdivision 1;
(2) information on any new sources of economic data
that could be used to construct a basic support schedule; and
(3) a summary of any problems or concerns with implementing
or applying the basic support schedule, and recommendations on how to resolve
those problems or concerns.
Sec. 14. [517C.16]
[CHILD CARE SUPPORT.]
Subdivision 1.
[CHILD CARE COSTS.] Unless otherwise agreed to by the parties and
approved by the court, the court must order that the child care costs be
divided between the obligor and obligee based on their proportionate share of
the parties' combined monthly income, as determined under section 517C.12.
Subd. 2.
[LOW-INCOME OBLIGOR.] (a) If the obligor's income as determined under
section 517C.12 meets the income eligibility requirements for child care
assistance under the basic sliding fee program under chapter 119B, the court
must order the obligor to pay the lesser of the following amounts:
(1) the amount of the obligor's monthly co-payment for child
care assistance under the basic sliding fee schedule established by the commissioner
of education under chapter 119B, based on an obligor's monthly gross income as
determined under section 517C.12 and the size of the obligor's household. For purposes of this subdivision, the
obligor's household includes the obligor and the number of children for whom
child support is being ordered; or
(2) the amount of the obligor's child care obligation under
subdivision 1.
(b) The commissioner of human services must publish a table
with the child care assistance basic sliding fee amounts and update the table
for changes to the basic sliding fee schedule by July 1 of each year.
Subd. 3.
[DETERMINING COSTS.] (a) The court must require verification of
employment or school attendance and documentation of child care expenses from
the obligee and the public authority, if applicable.
(b) If child care expenses fluctuate during the year because
of the obligee's seasonal employment or school attendance or extended periods
of parenting time with the obligor, the court must determine child care expenses
based on an average monthly cost.
(c) The amount allocated for child care expenses is
considered child support but is not subject to a cost-of-living adjustment
under section 517C.31.
(d) The court may allow the parent with whom the child does
not reside to care for the child while the parent with whom the child resides
is working or attending school, as provided in section 517B.25, subdivision
8. Allowing the parent with whom the
child does not reside to care for the child under section 517B.25, subdivision
8, is not a reason to deviate from the guidelines.
Subd. 4. [CHANGE
IN CHILD CARE.] (a) When a court order provides for child care expenses and
the public authority provides child support enforcement services, the public
authority must suspend collecting the amount allocated for child care expenses
when:
(1) either party informs the public authority that no child
care costs are being incurred; and
(2) the public authority verifies the accuracy of the
information.
The public authority will
resume collecting child care expenses when either party provides information
that child care costs have resumed.
(b) If the parties provide conflicting information
to the public authority regarding whether child care expenses are being
incurred, the public authority will continue or resume collecting child care
expenses. Either party, by motion to
the court, may challenge the suspension or resumption of the collection of
child care expenses. If the public
authority suspends collection activities for the amount allocated for child
care expenses, all other provisions of the court order remain in effect.
(c) In cases where there is a substantial increase or
decrease in child care expenses, the parties may modify the order under section
517C.31.
Sec. 15. [517C.17]
[MEDICAL SUPPORT.]
Subdivision 1.
[DEFINITIONS.] The definitions in this subdivision apply to this
chapter.
(a) "Health care coverage" means health care
benefits that are provided by a health plan. Health care coverage does not
include any form of medical assistance under chapter 256B or MinnesotaCare
under chapter 256L.
(b) "Health carrier" means a carrier as defined in
sections 62A.011, subdivision 2, and 62L.02, subdivision 16.
(c) "Health plan" means a plan meeting the
definition under section 62A.011, subdivision 3, a group health plan governed
under the federal Employee Retirement Income Security Act of 1974 (ERISA), a
self-insured plan under sections 43A.23 to 43A.317 and 471.617, or a policy,
contract, or certificate issued by a community-integrated service network
licensed under chapter 62N. Health plan
includes plans: (1) provided on an
individual and group basis; (2) provided by an employer or union; (3) purchased
in the private market; and (4) available to a person eligible to carry
insurance for the child. Health plan
includes a plan providing for dependent-only dental or vision coverage and a
plan provided through a party's spouse or parent.
(d) "Medical support" means providing health care
coverage for a child by carrying health care coverage for the child or by
contributing to the cost of health care coverage, public coverage, unreimbursed
medical expenses, and uninsured medical expenses of the child.
(e) "National medical support notice" means an administrative
notice issued by the public authority to enforce health insurance provisions of
a support order in accordance with Code of Federal Regulations, title 45,
section 303.32, in cases where the public authority provides support
enforcement services.
(f) "Public coverage" means health care benefits
provided by any form of medical assistance under chapter 256B or MinnesotaCare
under chapter 256L.
(g) "Uninsured medical expenses" means a child's
reasonable and necessary health-related expenses if the child is not covered by
a health plan or public coverage when the expenses are incurred.
(h) "Unreimbursed medical expenses" means a
child's reasonable and necessary health-related expenses if a child is covered
by a health plan or public coverage and the plan or coverage does not pay for
the total cost of the expenses when the expenses are incurred. Unreimbursed medical expenses do not include
the cost of premiums. Unreimbursed
medical expenses include, but are not limited to, deductibles, co-payments, and
expenses for orthodontia, prescription eyeglasses and contact lenses, and
over-the-counter medicine.
Subd. 2.
[ORDER.] (a) A completed national medical support notice issued by
the public authority or a court order that complies with this section is a
qualified medical child support order under the federal Employee Retirement
Income Security Act of 1974 (ERISA), United States Code, title 29, section
1169(a).
(b) Every order addressing child support must state:
(1) the names, last known addresses, and Social
Security numbers of the parents and the child that is a subject of the order
unless the court prohibits the inclusion of an address or Social Security
number and orders the parents to provide the address and Social Security number
to the administrator of the health plan;
(2) whether appropriate health care coverage for the child
is available and, if so, state:
(i) which party must carry health care coverage;
(ii) the cost of premiums and how the cost is allocated
between the parties;
(iii) how unreimbursed expenses will be allocated and
collected by the parties; and
(iv) the circumstances, if any, under which the obligation
to provide health care coverage for the child will shift from one party to the
other;
(3) if appropriate health care coverage is not available for
the child, whether a contribution for medical support is required; and
(4) whether the amount ordered for medical support is
subject to a cost-of-living adjustment under section 517C.31.
Subd. 3. [DETERMINING
APPROPRIATE HEALTH CARE COVERAGE.] (a) In determining whether a party has
appropriate health care coverage for the child, the court must evaluate the
health plan using the following factors:
(1) accessible coverage.
Dependent health care coverage is accessible if the covered child can
obtain services from a health plan provider with reasonable effort by the
parent with whom the child resides.
Health care coverage is presumed accessible if:
(i) primary care coverage is available within 30 minutes or
30 miles of the child's residence and specialty care coverage is available
within 60 minutes or 60 miles of the child's residence;
(ii) the coverage is available through an employer and the
employee can be expected to remain employed for a reasonable amount of time;
and
(iii) no preexisting conditions exist to delay coverage
unduly;
(2) comprehensive coverage.
Dependent health care coverage is comprehensive if it includes, at a
minimum, medical and hospital coverage and provides for preventive, emergency,
acute, and chronic care. If both
parties have health care coverage that meets the minimum requirements, the
court must determine which health care coverage is more comprehensive by
considering whether the coverage includes:
(i) basic dental coverage;
(ii) orthodontia;
(iii) eyeglasses;
(iv) contact lenses;
(v) mental health services; or
(vi) substance abuse treatment;
(3) affordable coverage.
Dependent health care coverage is affordable if a party's gross income
is 150 percent of the federal poverty guidelines or more and the party's
contribution to the health care coverage premium does not exceed five percent
of the party's gross income. If a
party's gross income is less than 150 percent of the federal poverty guidelines,
it is presumed that the party is unable to contribute to the cost of health
care coverage unless health care is available at no or low cost to that party;
and
(4) the child's special medical needs, if any.
(b) If both parties have health care coverage available for
a child, and the court determines under paragraph (a), clauses (1) and (2),
that the available coverage is comparable with regard to accessibility and
comprehensiveness, the least costly health care coverage is the appropriate
health care coverage for the child.
Subd. 4.
[ORDERING HEALTH CARE COVERAGE.] (a) If a child is presently enrolled
in health care coverage, the court must order that the parent who currently has
the child enrolled continue that enrollment unless the parties agree otherwise
or a party requests a change in coverage and the court determines that other
health care coverage is more appropriate.
(b) If a child is not presently enrolled in health care
coverage, upon motion of a party or the public authority, the court must
determine whether one or both parties have appropriate health care coverage for
the child and order the party with appropriate health care coverage available
to carry the coverage for the child.
(c) If only one party has appropriate health care coverage
available, the court must order that party to carry the coverage for the child.
(d) If both parties have appropriate health care coverage
available, the court must order the parent with whom the child resides to carry
the coverage for the child, unless:
(1) either party expresses a preference for coverage
available through the parent with whom the child does not reside;
(2) the parent with whom the child does not reside is
already carrying dependent health care coverage for other children and the cost
of contributing to the premiums of the other parent's coverage would cause the
parent with whom the child does not reside extreme hardship; or
(3) the parents agree to provide coverage and agree on the
allocation of costs.
(e) If the exception in paragraph (d), clause (1) or (2),
applies, the court must determine which party has the most appropriate coverage
available and order that party to carry coverage for the child. If the court determines under subdivision 3,
paragraph (a), clauses (1) and (2), that the parties' health care coverage for
the child is comparable with regard to accessibility and comprehensiveness, the
court must order the party with the least costly health care coverage to carry
coverage for the child.
(f)(1) If neither party has appropriate health care coverage
available, the court must order the parents to:
(i) contribute toward the actual health care costs of the
children based on a pro rata share; or
(ii) if the child is receiving any form of assistance under
chapter 256B or MinnesotaCare under chapter 256L, the parent with whom the
child does not reside shall contribute a monthly amount toward the actual cost
of medical assistance under chapter 256B or MinnesotaCare under chapter 256L
determined by the court to be just and appropriate. The contribution of the parent with whom the child resides is the
monthly contribution as determined by the eligibility requirements for public
coverage.
(2) If the court finds pro rata apportionment
unjust or inappropriate, the court shall:
(i) order the parties to contribute the amount of the health
care costs the court finds just and appropriate; and
(ii) make findings regarding the factors considered, the
amount of each parent's share of the cost, and the reasons the court did not
order pro rata apportionment.
A presumption of no less
than $50 per month must be applied to the actual health care costs of the
children or to the cost of health care coverage.
(g) The commissioner of human services must publish a table
with the premium schedule for public coverage and update the chart for changes
to the schedule by July 1 of each year.
Subd. 5.
[MEDICAL SUPPORT COSTS; UNREIMBURSED AND UNINSURED MEDICAL EXPENSES.] (a)
Unless otherwise agreed to by the
parties and approved by the court, the court must order that the cost of health
care coverage and all unreimbursed and uninsured medical expenses be divided
between the obligor and obligee based on their proportionate share of the
parties' combined monthly income, as determined under section 517C.12.
(b) If a party owes a child support obligation for a child
and is ordered to carry health care coverage for the child, and the other party
is ordered to contribute to the carrying party's cost for coverage, the carrying
party's child support payment must be reduced by the amount of the contributing
party's contribution.
(c) If a party owes a child support obligation for a child
and is ordered to contribute to the other party's cost for carrying health care
coverage for the child, the contributing party's child support payment must be
increased by the amount of the contribution.
(d) If the party ordered to carry health care coverage for
the child already carries dependent health care coverage for other dependents
and would incur no additional premium costs to add the child to the existing
coverage, the court must not order the other party to contribute to the premium
costs for coverage of the child.
(e) If a party ordered to carry health care coverage for the
child does not already carry dependent health care coverage but has other
dependents who may be added to the ordered coverage, the full premium costs of
the dependent health care coverage must be allocated between the parties in
proportion to the party's share of the parties' combined income, unless the
parties agree otherwise.
(f) If a party ordered to carry health care coverage for the
child is required to enroll in a health plan so that the child can be enrolled
in dependent health care coverage under the plan, the court must allocate the
costs of the dependent health care coverage between the parties. The costs of the health care coverage for
the party ordered to carry the coverage for the child must not be allocated
between the parties.
Subd. 6. [HEALTH
PLAN REQUIREMENTS.] (a) If a health plan administrator receives a completed
national medical support notice or court order, the plan administrator must
notify the parties, and the public authority if the public authority provides
support enforcement services, within 40 business days after the date of the
notice or after receipt of the court order, of the following:
(1) whether coverage is available to the child under the
terms of the health plan and, if not, the reason why coverage is not available;
(2) whether the child is covered under the health plan;
(3) the effective date of the child's coverage under the
health plan; and
(4) what steps, if any, are
required to effectuate the child's coverage under the health plan.
(b) If the employer or union offers more than one plan and
the national medical support notice or court order does not specify the plan to
be carried, the plan administrator must notify the parents and the public
authority if the public authority provides support enforcement services. When there is more than one option available
under the plan, the public authority, in consultation with the parent with whom
the child resides, must promptly select from available plan options.
(c) The plan administrator must provide the parents and
public authority, if the public authority provides support enforcement
services, with a notice of the child's enrollment, description of the coverage,
and any documents necessary to effectuate coverage.
(d) The health plan must send copies of all correspondence
regarding the health care coverage to the parents.
(e) An insured child's parent's signature is a valid
authorization to a health plan for purposes of processing an insurance
reimbursement payment to the medical services provider or to the parent, if
medical services have been prepaid by that parent.
Subd. 7.
[EMPLOYER OR UNION LIABILITY.] (a) An employer or union that
willfully fails to comply with the order or notice is liable for any uninsured
medical expenses incurred by the dependents while the dependents were eligible
to be enrolled in the health plan and for any other premium costs incurred
because the employer or union willfully failed to comply with the order or
notice.
(b) An employer or union that fails to comply with the order
or notice is subject to a contempt finding, a $250 civil penalty under section
517C.57, and is subject to a civil penalty of $500 to be paid to the party
entitled to reimbursement or the public authority. Penalties paid to the public authority are designated for child
support enforcement services.
Subd. 8.
[DISENROLLMENT; CONTINUATION OF COVERAGE; COVERAGE OPTIONS.] (a)
Unless a court order provides otherwise, a child for whom a party is required
to provide health care coverage under this section must be covered as a
dependent of the party until the child is emancipated, until further order of
the court, or as consistent with the terms of the coverage.
(b) The health carrier, employer, or union may not disenroll
or eliminate coverage for the child unless:
(1) the health carrier, employer, or union is provided
satisfactory written evidence that the court order is no longer in effect;
(2) the child is or will be enrolled in comparable health
care coverage through another health plan that will take effect no later than
the effective date of the disenrollment;
(3) the employee is no longer eligible for dependent
coverage; or
(4) the required premium has not been paid by or on behalf
of the child.
(c) The health plan must provide 30 days' written notice to
the child's parents, and the public authority if the public authority provides
support enforcement services, before the health plan disenrolls or eliminates
the child's coverage.
(d) A child enrolled in health
care coverage under a qualified medical child support order, including a
national medical support notice, under this section is a dependent and a
qualified beneficiary under the Consolidated Omnibus Budget and Reconciliation
Act of 1985 (COBRA), Public Law 99-272.
Upon expiration of the order, the child is entitled to the opportunity
to elect continued coverage that is available under the health plan. The employer or union must provide notice to
the parties and the public authority, if it provides support services, within
ten days of the termination date.
(e) If the public authority provides support enforcement
services and a plan administrator reports to the public authority that there is
more than one coverage option available under the health plan, the public
authority, in consultation with the parent with whom the child resides, must
promptly select coverage from the available options.
Subd. 9.
[DISCLOSURE OF INFORMATION.] (a) If the public authority provides
support enforcement services, the parties must provide the public authority
with the following information:
(1) information relating to dependent health care coverage
or public coverage available for the benefit of the child for whom support is
sought, including all information required to be included in a medical support
order under this section;
(2) verification that application for court-ordered health
care coverage was made within 30 days of the court's order; and
(3) the reason that a child is not enrolled in court-ordered
health care coverage, if a child is not enrolled in coverage or subsequently
loses coverage.
(b) Upon request from the public authority under section
256.978, an employer, union, or plan administrator, including an employer
subject to the federal Employee Retirement Income Security Act of 1974 (ERISA),
United States Code, title 29, section 1169(a), must provide the public
authority the following information:
(1) information relating to dependent health care coverage
available to a party for the benefit of the child for whom support is sought,
including all information required to be included in a medical support order
under this section; and
(2) information that will enable the public authority to
determine whether a health plan is appropriate for a child, including, but not
limited to, all available plan options, any geographic service restrictions,
and the location of service providers.
(c) The employer, union, or plan administrator must not
release information regarding one party to the other party. The employer, union, or plan administrator
must provide both parties with insurance identification cards and all necessary
written information to enable the parties to utilize the insurance benefits for
the covered dependent.
(d) The public authority is authorized to release to a
party's employer, union, or health plan information necessary to verify
availability of dependent health care coverage, or to establish, modify, or
enforce medical support.
(e) An employee must disclose to an employer if medical
support is required to be withheld under this section and the employer must
begin withholding according to the terms of the order and under section
517C.52. If an employee discloses an
obligation to obtain health care coverage and coverage is available through the
employer, the employer must make all application processes known to the
individual and enroll the employee and dependent in the plan.
Subd. 10. [INCOME WITHHOLDING; OFFSET.] (a) If a
party owes no child support obligation for a child and is an obligor ordered to
contribute to the other party's cost for carrying health care coverage for the
child, the obligor is subject to an offset under subdivision 5 or income
withholding under section 517C.52.
(b) If a party's court-ordered health care coverage for the
child terminates and the child is not enrolled in other health care coverage or
public coverage, and a modification motion is not pending, the public authority
may remove the offset to a party's child support obligation or terminate income
withholding instituted against a party under section 517C.52. The public authority must provide notice to
the parties of the action.
(c) A party may contest the public authority's action to
remove the offset to the child support obligation or terminate income withholding
if the party makes a written request for a hearing within 30 days after
receiving written notice. If a party
makes a timely request for a hearing, the public authority must schedule a
hearing and send written notice of the hearing to the parties by mail to the
parties' last known addresses at least 14 days before the hearing. The hearing must be conducted in district
court or in the expedited child support process if section 484.702 applies. The district court or child support
magistrate must determine whether removing the offset or terminating income
withholding is appropriate and, if appropriate, the effective date for the
removal or termination.
(d) If the party does not request a hearing, the district
court or child support magistrate must order the offset or income withholding
termination effective the first day of the month following termination of the
child's health care coverage.
Subd. 11.
[COLLECTING UNREIMBURSED AND UNINSURED MEDICAL EXPENSES.] (a) A party
must initiate a request for reimbursement of unreimbursed and uninsured medical
expenses within two years of the date that the party incurred the unreimbursed
or uninsured medical expenses. The time
period in this paragraph does not apply if the location of the other party is
unknown.
(b) A party seeking reimbursement of unreimbursed and
uninsured medical expenses must mail a written notice of intent to collect the
expenses and a copy of an affidavit of health care expenses to the other party
at the other party's last known address.
(c) The written notice must include a statement that the
party has 30 days from the date the notice was mailed to (1) pay in full; (2)
enter a payment agreement; or (3) file a motion requesting a hearing contesting
the matter. If the public authority
provides support enforcement services, the written notice also must include a
statement that the requesting party must submit the amount due to the public
authority for collection.
(d) The affidavit of health care expenses must itemize and
document the child's unreimbursed or uninsured medical expenses and include
copies of all bills, receipts, and insurance company explanations of benefits.
(e) If the public authority provides support enforcement
services, the party seeking reimbursement must send to the public authority a
copy of the written notice, the original affidavit, and copies of all bills,
receipts, and insurance company explanations of benefits.
(f) If the party does not respond to the request for
reimbursement within 30 days, the party seeking reimbursement or public
authority, if the public authority provides support enforcement services, must
commence an enforcement action against the party under subdivision 12.
(g) The public authority must serve the other party with a
notice of intent to enforce unreimbursed and uninsured medical expenses and
file an affidavit of service by mail with the district court
administrator. The notice must state
that, unless the party (1) pays in full; (2) enters into a payment agreement;
or (3) files a motion contesting the matter within 14 days of service of the
notice, the public authority will commence enforcement of the expenses as
medical support arrears under subdivision 12.
(h) If the party files a
timely motion for a hearing contesting the requested reimbursement, the
contesting party must schedule a hearing in district court or in the expedited
child support process if section 484.702 applies. The contesting party must provide the party seeking reimbursement
and the public authority, if the public authority provides support enforcement
services, with written notice of the hearing at least 14 days before the
hearing by mailing notice of the hearing to the public authority and the party
at the party's last known address. The
party seeking reimbursement must file the original affidavit of health care
expenses with the court at least five days before the hearing. Based upon the evidence presented, the
district court or child support magistrate must determine liability for the
expenses and order that the liable party is subject to enforcement of the
expenses as medical support arrears under subdivision 12.
Subd. 12.
[ENFORCING AN ORDER FOR MEDICAL SUPPORT ARREARS.] (a) If a party
liable for unreimbursed and uninsured medical expenses owes a child support
obligation to the party seeking reimbursement of the expenses, the expenses
must be collected as medical support arrears.
(b) If a party liable for unreimbursed and uninsured medical
expenses does not owe a child support obligation to the party seeking
reimbursement, and the party seeking reimbursement owes the liable party basic
support arrears, the liable party's medical support arrears must be deducted
from the amount of the basic support arrears.
(c) If a liable party owes medical support arrears after
deducting the amount owed from the amount of the child support arrears owed by
the party seeking reimbursement, it must be collected as follows:
(1) if the party seeking reimbursement owes a child support
obligation to the liable party, the child support obligation must be reduced by
20 percent until the medical support arrears are satisfied;
(2) if the party seeking reimbursement does not owe a child
support obligation to the liable party, the liable party's income must be
subject to income withholding under section 517C.52 for an amount required
under section 517C.71 until the medical support arrears are satisfied; or
(3) if the party seeking reimbursement does not owe a child
support obligation, and income withholding under section 517C.52 is not
available, payment of the medical support arrears must be required under a
payment agreement under section 517C.71.
(d) If a liable party fails to enter into or comply with a
payment agreement, the party seeking reimbursement or the public authority, if
it provides support enforcement services, may schedule a hearing to have a
court order payment. The party seeking
reimbursement or the public authority must provide the liable party with
written notice of the hearing at least 14 days before the hearing.
Sec. 16. [517C.18]
[SELF-SUPPORT ADJUSTMENT.]
Subdivision 1.
[ADJUSTMENT.] (a) If the sum of the obligor's basic support, child
care support, and medical support obligation leaves the obligor with remaining
income in an amount less than 120 percent of the federal poverty guidelines for
one person, the court must reduce the obligor's child support obligation by an
amount equal to the lesser of: (1) the
difference between the obligor's remaining income and 120 percent of the federal
poverty guidelines amount; or (2) the obligor's total child support
obligation. If the self-support
adjustment results in an order amount less than $50 per month for one or two
children or $75 per month for three or more children, the court must order basic
support under subdivision 2.
(b) The court must apply the reduction to the obligor's
child support obligation in the following order:
(1) medical support obligation;
(2) child care support obligation; and
(3) basic support obligation.
Subd. 2.
[MINIMUM BASIC SUPPORT AMOUNT.] (a) If the reduction under
subdivision 1 equals the sum of the obligor's basic support, child care
support, and medical support obligation, the court must order support as
follows:
(1) for one or two children, the obligor's basic support
obligation is $50 per month; or
(2) for three or more children, the obligor's basic support
obligation is $75 per month.
(b) If the court orders the obligor to pay the minimum basic
support amount under this subdivision, the obligor is presumed unable to pay
child care support and medical support.
(c) If the court finds that an obligor receives no income
and completely lacks the ability to earn income, the minimum basic support
amount under this subdivision does not apply.
Sec. 17. [517C.19]
[WORKSHEET.]
The commissioner of human services must create and publish a
worksheet to assist in calculating child support under sections 517C.12 to
517C.18. The worksheet must not impose
substantive requirements other than requirements contained in sections 517C.12
to 517C.18. The commissioner must
update the worksheet by July 1 of each year.
The commissioner must make an interactive version of the worksheet
available on the Department of Human Services Web site.
Sec. 18. [517C.20]
[DEVIATIONS.]
Subdivision 1.
[GENERAL FACTORS.] In addition to the child support guidelines, the
court must take into consideration the following factors in setting or
modifying child support or in determining whether to deviate from the guidelines:
(1) all earnings, income, and resources of the parents,
including real and personal property, but excluding income from excess
employment of the obligor or obligee that meets the criteria of section
517C.12, subdivision 6;
(2) the financial needs and resources, physical and
emotional condition, and educational needs of the child to be supported;
(3) the standard of living the child would have enjoyed had
the marriage not been dissolved, but recognizing that the parents now have
separate households;
(4) which parent receives the income taxation dependency
exemption and the financial benefit the parent receives from it;
(5) the parents' debts as provided in subdivision 2;
(6) the obligor's receipt of public assistance under the
AFDC program formerly codified under sections 256.72 to 256.82 or 256B.01 to
256B.40 and chapter 256J or 256K;
(7) the child spends between 33 and 45 percent of
overnights with the obligor pursuant to a court order or with the consent of
the obligee, which results in an increased financial burden on the obligor; and
(8) the best interests of the child.
Subd. 2. [DEBT
OWED TO PRIVATE CREDITORS.] (a) In establishing or modifying a support
obligation, the court may consider debts owed to private creditors, but only
if:
(1) the right to support has not been assigned under section
256.741;
(2) the court determines that the debt was reasonably
incurred for necessary support of the child or parent or for the necessary
generation of income. If the debt was incurred
for the necessary generation of income, the court may consider only the amount
of debt that is essential to the continuing generation of income; and
(3) the party requesting a departure produces a sworn
schedule of the debts, with supporting documentation, showing goods or services
purchased, the recipient of them, the original debt amount, the outstanding
balance, the monthly payment, and the number of months until the debt will be
fully paid.
(b) A schedule prepared under paragraph (a), clause (3),
must contain a statement that the debt will be fully paid after the number of
months shown in the schedule, barring emergencies beyond the party's control.
(c) Any further departure below the guidelines that is based
on a consideration of debts owed to private creditors must not exceed 18 months
in duration. After 18 months the
support must increase automatically to the level ordered by the court. This section does not prohibit one or more
step increases in support to reflect debt retirement during the 18-month
period.
(d) If payment of debt is ordered pursuant to this section,
the payment must be ordered to be in the nature of child support.
Subd. 3.
[EVIDENCE.] The court may receive evidence on the factors in this
section to determine if the guidelines should be exceeded or modified in a
particular case.
Subd. 4. [NO
DEVIATION WHEN PAYMENTS ARE ASSIGNED TO PUBLIC AUTHORITY EXCEPT FOR EXTREME
HARDSHIP.] If the child support payments are assigned to the public
authority under section 256.741, the court may not deviate downward from the
child support guidelines unless the court specifically finds that the failure
to deviate downward would impose an extreme hardship on the obligor.
Subd. 5. [NO
DEPARTURE BASED ON JOINT LEGAL CUSTODY.] An award of joint legal custody is
not a reason for departure from the guidelines.
Sec. 19. [517C.21]
[WRITTEN FINDINGS.]
Subdivision 1.
[NO DEVIATION.] If the court does not deviate from the guidelines,
the court must make written findings concerning the amount of the parties'
income used as the basis for the guidelines calculation and any other
significant evidentiary factors affecting the child support determination.
Subd. 2.
[DEVIATION.] (a) If the court deviates from the guidelines, the court
must make written findings giving the amount of support calculated under the
guidelines, the reasons for the deviation, and must specifically address the
criteria in section 517C.20 and how the deviation serves the best interests of
the child.
(b) The court may deviate from the guidelines if
both parties agree and the court makes written findings that it is in the best
interests of the child, except that in cases where child support payments are
assigned to the public authority under section 256.741, the court may deviate
downward only as provided in section 517C.20, subdivision 4. Nothing in this section prohibits the court
from deviating in other cases.
Subd. 3.
[WRITTEN FINDINGS REQUIRED IN EVERY CASE.] The provisions of this
section apply whether or not the parties are each represented by independent
counsel and have entered into a written agreement. The court must review stipulations presented to it for conformity
to the guidelines. The court is not
required to conduct a hearing, but the parties must provide the documentation
of earnings required under section 517C.10.
Sec. 20. [517C.22]
[GUIDELINES REVIEW.]
No later than 2008 and every four years after that, the
Department of Human Services must conduct a review of the child support guidelines.
Sec. 21. [517C.23]
[EDUCATION TRUST FUND.]
The parties may agree to designate a sum of money above
court-ordered child support as a trust fund for the costs of postsecondary
education.
Sec. 22. [517C.25]
[MODIFICATION; GENERAL.]
Subdivision 1.
[AUTHORITY.] After a child support order is established, the court
may, on motion of a party or the public authority, modify the order respecting
the amount and payment of support. The
court may make an order respecting any matters it had authority to address in
the original proceeding, except as otherwise provided in section 517C.29. A party or the public authority also may
make a motion for contempt of court if the obligor is in arrears in support payments.
Subd. 2.
[GUIDELINES REMAIN APPLICABLE.] On a motion for modification of
support, the guidelines in this chapter remain applicable.
Subd. 3.
[EVIDENTIARY HEARING NOT REQUIRED.] The court need not hold an
evidentiary hearing on a motion for child support modification.
Subd. 4. [FORM.]
The state court administrator must prepare and make available to courts,
obligors, and obligees a form to be submitted in support of a motion for a
child support modification or for contempt of court.
Subd. 5.
[SUBSTANTIAL CHANGE IN CIRCUMSTANCES.] An enactment, amendment, or
repeal of law does not constitute a substantial change in the circumstances for
purposes of modifying a child support order.
Subd. 6.
[MODIFICATION OF ORDER.] There may be no modification of an existing
child support order during the first year following the effective date of this
chapter except as follows:
(1) there is at least a 20 percent change in the gross
income of the obligor;
(2) there is a change in the number of joint children for
whom the obligor is legally responsible and is actually supporting;
(3) the child supported by the existing child support order
becomes disabled; or
(4) both parents consent to modification of the
existing order in compliance with the new income shares guidelines.
This subdivision expires
January 1, 2008.
Subd. 7. [BASIC
SUPPORT; LIMITATION.] On the first modification under the income shares
method of calculation, the modification of basic support may be limited if the
amount of the full variance would create hardship for either the obligor or the
obligee.
Sec. 23. [517C.26]
[REOPENING AN ORDER.]
Subdivision 1.
[FACTORS.] Upon a party's motion, the court may rescind a child
support order or judgment and may order a new trial or grant other relief as
may be just for the following reasons:
(1) mistake, inadvertence, surprise, or excusable neglect;
(2) newly discovered evidence that could not have been
discovered by due diligence in time to move for a new trial under the Minnesota
Rules of Civil Procedure;
(3) fraud, whether denominated intrinsic or extrinsic,
misrepresentation, or other misconduct of an adverse party;
(4) the judgment or order is void;
(5) the judgment has been satisfied, released, or
discharged;
(6) the judgment is based on a prior order that has been
reversed or otherwise vacated; or
(7) it is no longer equitable that the order should have
prospective application.
Subd. 2.
[PROCEDURE; EFFECT.] A party's motion must be made within a
reasonable time, and, for a reason under subdivision 1, clause (1), (2), or
(3), not more than one year after the judgment and decree, order, or proceeding
was entered or taken. A motion under
this section does not affect the finality of an order or suspend its
operation. This section does not limit
the power of a court to entertain an independent action to relieve a party from
an order or proceeding or to grant relief to a party not actually personally
notified as provided in the Minnesota Rules of Civil Procedure, or to set aside
a judgment for fraud upon the court.
Sec. 24. [517C.27]
[CHANGE IN CUSTODY OR PARENTING TIME.]
Subdivision 1.
[OFFICIAL CHANGE IN CUSTODY; CHILD SUPPORT SUSPENDED.] If an obligee
has been granted sole physical custody of a child, the child subsequently lives
with the obligor, and temporary sole physical custody has been approved by the
court or by a court-appointed referee, the court may suspend the obligor's
child support obligation pending the final custody determination. The court's order denying the suspension of
child support must include a written explanation of the reasons why
continuation of the child support obligation would be in the best interests of
the child.
Subd. 2.
[UNOFFICIAL CHANGE IN CUSTODY; CHILD SUPPORT OBLIGATION SATISFIED.] The
court may conclude that an obligor has satisfied a child support obligation by
providing a home, care, and support for the child while the child is living
with the obligor, if the court finds that the child was integrated into the
family of the obligor with the consent of the obligee and child support
payments were not assigned to the public authority.
Subd. 3.
[30-DAY CHANGE; CHILD SUPPORT REDUCED.] A support order issued under
this chapter may provide that, during any period of time of 30 consecutive days
or longer that the child is residing with the obligor, the support amount
otherwise due under the order may be reduced.
Sec. 25. [517C.28]
[SUBSTANTIAL CHANGE IN CIRCUMSTANCES, EARNINGS, OR NEEDS.]
Subdivision 1.
[FACTORS.] (a) A court may modify the terms of a child support order
upon a showing of one or more of the following:
(1) substantially increased or decreased earnings of a
party;
(2) substantially increased or decreased need of a party or
the child that is the subject of these proceedings;
(3) receipt of assistance under the AFDC program formerly
codified under sections 256.72 to 256.87 or 256B.01 to 256B.40 or chapter 256J
or 256K;
(4) a change in the cost of living for either party, as
measured by the federal Bureau of Labor Statistics, that makes the terms
unreasonable and unfair;
(5) extraordinary medical expenses of the child not provided
for under section 517C.17;
(6) the addition of the obligee's work-related or
education-related child care expenses or a substantial increase or decrease in
existing work-related or education-related child care expenses; or
(7) upon the emancipation of a child if there is still a
child under the order. A child support
obligation for two or more children that is not a support obligation in a
specific amount per child continues in the full amount until modified or until
the emancipation of the last child for whose benefit the order was made.
(b) Implementation of this chapter is not a basis for
modification unless the requirements under this section are met.
Subd. 2.
[PRESUMPTIONS.] It is presumed that there has been a substantial
change in circumstances under subdivision 1 and the terms of a current support
order are rebuttably presumed to be unreasonable and unfair if:
(1) when applied to the parties' current circumstances, the
presumptive child support amount derived under this chapter is at least 20
percent and at least $50 per month higher or lower than the current support
order;
(2) the medical support provisions of the order established
under section 517C.17 are not enforceable by the public authority or the
obligee;
(3) health insurance coverage ordered under section 517C.17
is not available to the child for whom the order is established by the parent
ordered to provide it; or
(4) the existing support obligation is in the form of a
statement of percentage and not a specific dollar amount.
Sec. 26. [517C.29]
[MODIFICATION EFFECTIVE DATE.]
Subdivision 1.
[DATE OF MOTION DETERMINATIVE.] A court may make a modification of
support, including interest that accrued pursuant to section 548.091, effective
no sooner than the date of service of notice of the motion for modification on
the responding parties.
Subd. 2. [RETROACTIVE MODIFICATION PERMITTED ONLY IN
LIMITED CIRCUMSTANCES.] Notwithstanding subdivision 1, a court may apply a
modification to an earlier period if the court makes express findings that:
(1) the party seeking modification was precluded from
serving a motion by reason of a significant physical or mental disability, a
material misrepresentation of another party, or fraud upon the court; and the
party seeking modification, when no longer precluded, promptly served a motion;
(2) the party seeking modification was a recipient of
federal Supplemental Security Income (SSI), Title II Older Americans Insurance,
Survivor's Disability Insurance (OASDI), other disability benefits, or public
assistance based upon need during the period for which retroactive modification
is sought;
(3) the order the party seeks to amend was entered by
default, the party shows good cause for not appearing, and the record contains
no factual evidence, or clearly erroneous evidence, regarding the obligor's
ability to pay; or
(4) the party seeking modification was institutionalized or
incarcerated for an offense other than nonsupport of a child during the period
for which retroactive modification is sought and lacked the financial ability
to pay the support ordered during that time period. In determining whether to allow the retroactive modification, the
court must consider whether and when a request was made to the public authority
for support modification.
Subd. 3. [CHILD
CARE EXCEPTION.] The court may provide that a reduction in the amount
allocated for child care expenses based on a substantial decrease in the
expenses is effective as of the date the expenses decreased.
Sec. 27. [517C.30]
[TERMINATION OF CHILD SUPPORT.]
Subdivision 1.
[DEATH OF OBLIGOR.] Unless otherwise agreed in writing or expressly
provided in the order, provisions for a child's support are not terminated by
the death of a parent obligated to support the child. When a parent obligated to pay support dies, the amount of
support may be modified, revoked, or commuted to a lump-sum payment, to the
extent just and appropriate in the circumstances.
Subd. 2.
[AUTOMATIC TERMINATION.] (a) Unless a court order provides otherwise,
a child support obligation in a specific amount per child terminates
automatically and without any action by the obligor to reduce, modify, or
terminate the order upon the child's emancipation.
(b) A child support obligation for two or more children that
is not a support obligation in a specific amount per child continues in the
full amount until the emancipation of the last child for whose benefit the
order was made, or until further order of the court.
(c) The obligor may request a modification of the obligor's
child support order upon a child's emancipation if there are still minor
children under the order. The court
must determine the child support obligation based on the parties' income at the
time the modification is sought.
Sec. 28. [517C.31]
[COST-OF-LIVING ADJUSTMENTS.]
Subdivision 1.
[GENERAL.] An order establishing, modifying, or enforcing child support
must provide for a biennial adjustment in the amount to be paid based on a
change in the cost of living.
Cost-of-living adjustments are compounded.
Subd. 2. [WAIVER.] A court may waive the
requirement of the cost-of-living clause if it expressly finds that the
obligor's occupation or income, or both, does not provide for cost-of-living
adjustment or that the order for child support has a provision such as a step
increase that has the effect of a cost-of-living clause.
Subd. 3. [INDEX;
AMOUNT.] (a) The court must specify the cost-of-living index to be applied
in an order that provides for a cost-of-living adjustment. The court may use the Consumer Price Index
for all urban consumers, Minneapolis-St. Paul (CPI-U), the Consumer Price Index
for wage earners and clerical, Minneapolis-St. Paul (CPI-W), or another
cost-of-living index published by the United States Department of Labor that
the court specifically finds is more appropriate.
(b) The court may increase the amount by more than the cost-of-living
adjustment by agreement of the parties or by making further findings.
Subd. 4.
[EFFECTIVE DATE.] If payment is made to the public authority, an
adjustment is effective on May 1 of the year it is made. If payment is not made to the public authority,
an adjustment may be made in any month but no adjustment may be made sooner
than two years after the date of the dissolution decree. A support order must specify the effective
date of cost-of-living adjustments.
Subd. 5.
[NOTICE.] A cost-of-living adjustment may not be made unless:
(1) the support order requires it; and
(2) the obligee or public authority notifies the obligor of
the adjustment by mail at the obligor's last known address at least 20 days
before the effective date of the adjustment.
The notice must inform the obligor of the effective date of the
adjustment, the right to contest the adjustment, and the procedures to contest
the adjustment.
Subd. 6.
[PROCEDURE FOR CONTESTING ADJUSTMENT.] (a) To contest a
cost-of-living adjustment initiated by the public authority or an obligee who
has applied for or is receiving child support collection services from the
public authority, other than income withholding-only services, the obligor
must:
(1) file a motion contesting the cost-of-living adjustment
with the court administrator; and
(2) serve the motion by first class mail on the public
authority and the obligee.
The obligor must file and
serve the motion before the effective date of the adjustment. The hearing must take place in the expedited
child support process under section 484.702.
(b) To contest a cost-of-living adjustment initiated by an
obligee who is not receiving child support collection services from the public
authority, or for an obligee who receives income withholding-only services from
the public authority, the obligor must:
(1) file a motion contesting the cost-of-living adjustment
with the court administrator; and
(2) serve the motion by first class mail on the obligee.
The obligor must file and serve
the motion before the effective date of the adjustment. The hearing must take place in district
court.
(c) Upon receipt of a motion contesting the cost-of-living
adjustment, the public authority or court must stay the cost-of-living
adjustment pending further order of the court.
Subd. 7. [HEARING.] (a) At a hearing under this
section, if the obligor establishes an insufficient increase in income to
fulfill the adjusted child support obligation, the district court or child
support magistrate may direct that all or part of the adjustment not take
effect.
(b) At a hearing under this section, if the obligor does not
establish an insufficient increase in income, the adjustment must take effect
as of the date originally specified in the support order.
Subd. 8. [FORM.]
The state court administrator must prepare and make available to the court
and obligors a pro se motion form to be submitted in support of a request for a
hearing under this section.
Subd. 9.
[RULES.] The commissioner of human services may promulgate rules for
child support adjustments under this section in accordance with the rulemaking
provisions of chapter 14.
Sec. 29. [517C.35]
[ASSIGNMENT.]
Subdivision 1.
[GENERAL.] The court must direct that all payments ordered for
support be made to the public authority if the obligee is receiving or has
applied for public assistance. Amounts
received by the public authority greater than the amount granted to the obligee
must be remitted to the obligee pursuant to federal requirements.
Subd. 2.
[JUDGMENTS.] The court administrator must enter and docket a judgment
obtained by operation of law under section 548.091, subdivision 1, in the name
of the public authority to the extent that the obligation has been
assigned. When arrears are reduced to
judgment and section 548.091 is not applicable, the court must grant judgment
in favor of, and in the name of, the public authority to the extent that the
arrears are assigned. The public
authority must file notice of an assignment with the court administrator, who
must enter the notice in the docket.
The public authority may then enforce a judgment entered before the
assignment of rights as if the judgment were granted to it, and in its name, to
the extent that the arrears in that judgment are assigned.
Subd. 3.
[PROPERTY LIEN.] The court may make any child support order a lien or
charge upon the obligor's property, either at the time of the entry of the
judgment or by subsequent order upon proper application.
Sec. 30. [517C.36]
[PARTY STATUS.]
Subdivision 1.
[OBLIGEE RECEIVES PUBLIC ASSISTANCE; PUBLIC AUTHORITY IS A PARTY.] The
public authority is joined as a party and is a real party in interest if the
obligee is receiving, or subsequently applies for, public assistance and rights
are assigned under section 256.741, subdivision 2.
Subd. 2. [NO
PUBLIC ASSISTANCE; APPLICATION FOR SERVICES.] If the obligee is not
receiving public assistance, but has applied for child support collection
services, the public authority has a pecuniary interest, as well as an interest
in the welfare of a child. The public
authority may intervene as a matter of right in those cases to ensure that
child support orders are obtained, enforced, and provide for an appropriate and
accurate level of child, medical, and child care support. If the public authority participates in a
case where the action taken by the public authority requires the use of an
attorney's services, the public authority must be represented by an attorney
consistent with the provisions in section 517C.37.
Sec. 31. [517C.37]
[ROLE OF PUBLIC AUTHORITY.]
Subdivision 1.
[PUBLIC AUTHORITY DOES NOT REPRESENT OBLIGOR OR OBLIGEE.] The
provision of services under the child support enforcement program that includes
services by an attorney or an attorney's representative employed by, under
contract to, or representing the public authority does not create an
attorney-client relationship with any party other than the public
authority. Attorneys employed by or
under contract with the public authority have an affirmative duty to inform
applicants and recipients of services under the child support enforcement
program that no attorney-client relationship exists between the attorney and
the applicant or recipient. This
section applies to all legal services provided by the child support enforcement
program.
Subd. 2. [WRITTEN NOTICE.] The public authority
must provide written notice to an applicant or recipient of services that:
(1) no attorney-client relationship exists between the attorney
and the applicant or recipient;
(2) the rights of the individual as a subject of data are
controlled by section 13.04, subdivision 2; and
(3) the individual has a right to have an attorney represent
the individual.
Subd. 3. [POWER
TO REPRESENT OTHER PUBLIC AUTHORITIES.] The public authority may act on
behalf of a public authority from another jurisdiction. This includes the authority to represent the
legal interests of, or execute documents on behalf of, the other public
authority in connection with the establishment, enforcement, and collection of
child support and collection on judgments.
Sec. 32. [517C.38]
[SERVICE FEES.]
Subdivision 1.
[OBLIGOR FEE.] When the public authority provides child support
collection services either to a public assistance recipient or to a party who
does not receive public assistance, the public authority may upon written
notice to the obligor charge a monthly collection fee equivalent to the full
monthly cost to the county of providing collection services, in addition to the
amount of the child support ordered by the court. The public authority must deposit the fee in the county general
fund. The service fee assessed is limited
to ten percent of the monthly court-ordered child support and must not be assessed
to obligors who are current in payment of the monthly court-ordered child
support.
Subd. 2.
[OBLIGEE FEE.] A $25 application fee must be paid by the person who
applies for child support and maintenance collection services, except persons
who are receiving public assistance as defined in section 256.741, persons who
transfer from public assistance to nonpublic assistance status, and minor
parents and parents enrolled in a public secondary school, area learning
center, or alternative learning program approved by the commissioner of
education.
Subd. 3. [TAX
INTERCEPT FEES.] Fees assessed by state and federal tax agencies for
collection of overdue support owed to or on behalf of a person not receiving
public assistance must be imposed on the person for whom these services are
provided. The public authority upon
written notice to the obligee must assess a fee of $25 to the person not
receiving public assistance for each successful federal tax interception. The public authority must withhold the fee
before the release of the funds received from each interception and must
deposit the fee in the general fund.
Subd. 4.
[COMPLIANCE WITH FEDERAL LAW.] The limitations of this section on the
assessment of fees do not apply to the extent they are inconsistent with the
requirements of federal law for receiving funds for the programs under Title
IV-A and Title IV-D of the Social Security Act, United States Code, title 42,
sections 601 to 613 and 651 to 662.
Sec. 33. [517C.39]
[PUBLIC AUTHORITY PROCEDURES FOR CHILD SUPPORT AND PARENTAGE ORDERS.]
The public authority may use the provisions of sections
517C.40 to 517C.44 when support rights are assigned under section 256.741,
subdivision 2, or when the public authority is providing services under an application
for child support collection services.
Sec. 34. [517C.40] [NONATTORNEY EMPLOYEE DUTIES.]
Subdivision 1.
[DUTIES PERFORMED UNDER SUPERVISION OF COUNTY ATTORNEY.] (a) The
county attorney must review and approve as to form and content all pleadings
and other legal documents prepared by nonattorney employees of the public
authority for use in the expedited child support process.
(b) Under the direction of, and in consultation with, the
county attorney, nonattorney employees of the public authority may perform the
following legal duties:
(1) meet and confer with parties by mail, telephone,
electronic, or other means regarding legal issues;
(2) explain to parties the purpose, procedure, and function
of the expedited child support process and the role and authority of
nonattorney employees of the public authority regarding legal issues;
(3) prepare pleadings, including, but not limited to,
summonses and complaints, notices, motions, subpoenas, orders to show cause,
proposed orders, administrative orders, and stipulations and agreements;
(4) issue administrative subpoenas;
(5) prepare judicial notices;
(6) negotiate settlement agreements;
(7) attend and participate as a witness in hearings and
other proceedings and, if requested by the child support magistrate, present
evidence, agreements and stipulations of the parties, and any other information
deemed appropriate by the magistrate;
(8) participate in other activities and perform other duties
delegated by the county attorney; and
(9) exercise other powers and perform other duties as
permitted by statute or court rule.
Subd. 2. [DUTIES
PERFORMED WITHOUT DIRECTION FROM COUNTY ATTORNEY.] Nonattorney employees of
the public authority may perform the following duties without direction from
the county attorney:
(1) gather information on behalf of the public authority;
(2) prepare financial worksheets;
(3) obtain income information from the Department of
Employment and Economic Development and other sources;
(4) serve documents on parties;
(5) file documents with the court;
(6) meet and confer with parties by mail, telephone,
electronic, or other means regarding nonlegal issues;
(7) explain to parties the purpose, procedure, and function
of the expedited child support process and the role and authority of
nonattorney employees of the public authority regarding nonlegal issues; and
(8) perform other routine nonlegal duties as assigned.
Subd. 3.
[PRACTICE OF LAW.] Performance of the duties prescribed in subdivisions
1 and 2 by nonattorney employees of the public authority does not constitute
the unauthorized practice of law for purposes of section 481.02.
Sec. 35. [517C.41]
[PLEADINGS; CASE INFORMATION SHEET.]
Subdivision 1.
[PLEADINGS.] In cases involving establishment or modification of a
child support order, the initiating party must include the following
information, if known, in the pleadings:
(1) the parties' names, addresses, and dates of birth;
(2) Social Security numbers of the parties and the parties'
minor children. This information is
considered private information and is available only to the parties, the court,
and the public authority;
(3) number of members in each party's household and
dependents of the parties;
(4) the parties' other support obligations;
(5) names and addresses of the parties' employers;
(6) the parties' income as defined in section 517C.12;
(7) amounts and sources of the parties' other earnings and
income;
(8) the parties' health insurance coverage;
(9) types and amounts of public assistance the parties
receive, including Minnesota family investment program, child care assistance,
medical assistance, MinnesotaCare, title IV-E foster care, or other forms of
assistance as defined in section 256.741, subdivision 1; and
(10) any other information relevant to the determination of
child support under this chapter.
Subd. 2. [CASE
INFORMATION SHEET.] For all matters scheduled in the expedited process, the
nonattorney employee of the public authority must file with the court and serve
on the parties the following information:
(1) income information available to the public authority
from the Department of Employment and Economic Development;
(2) a statement of the monthly amount of child support,
child care, medical support, and arrears currently being charged the parties in
Minnesota IV-D cases;
(3) a statement of the types and amount of any public
assistance, as defined in section 256.741, subdivision 1, received by the
parties; and
(4) any other information relevant to determining support
that is known to the public authority and that the parties have not otherwise
provided.
Subd. 3. [FILING
INFORMATION.] The public authority must file the case information with the
district court or child support magistrate at least five days before a hearing
involving child support, medical support, or child care reimbursement issues.
Sec. 36.
[517C.42] [NONCONTESTED MATTERS.]
Under the direction of the county attorney and based on
agreement of the parties, nonattorney employees of the public authority may
prepare a stipulation, findings of fact, conclusions of law, and proposed
order. The county attorney must approve
and sign the documents as to form and content before the nonattorney employees
submit the documents to the district court or child support magistrate for
approval.
Sec. 37. [517C.43]
[ADMINISTRATIVE AUTHORITY; PARENTAGE; SUPPORT.]
Subdivision 1.
[POWERS.] The public authority may take the following actions
relating to establishing paternity or to establishing, modifying, or enforcing
support orders, without the necessity of obtaining an order from a judicial or
administrative tribunal:
(1) recognize and enforce orders of child support agencies
of other states;
(2) upon request for genetic testing by a child, parent, or
an alleged parent, and using the procedure in subdivision 2, order the child,
parent, or alleged parent to submit to blood or genetic testing for the purpose
of establishing paternity;
(3) subpoena financial or other information needed to
establish, modify, or enforce a child support order and sanction a party for
failure to respond to a subpoena;
(4) upon notice to the obligor, obligee, and the appropriate
court, direct the obligor or other payor to change the payee to the central
collections unit under section 517C.50;
(5) order income withholding of child support under section
517C.52 and sanction an employer or payor of funds under section 393.07,
subdivision 9a, for failing to comply with an income withholding notice;
(6) secure assets to satisfy a support debt or arrears by:
(i) intercepting or seizing periodic or lump-sum payments
from state or local agencies, including unemployment insurance benefits,
workers' compensation payments, judgments, settlements, lotteries, and other
lump-sum payments;
(ii) attaching and seizing the obligor's assets held in
financial institutions or public or private retirement funds; and
(iii) imposing liens in accordance with section 548.091, and,
in appropriate cases, forcing the sale of property and the distribution of
proceeds;
(7) for the purpose of securing overdue support, increase
the amount of the monthly support payments by an additional amount equal to 20
percent of the monthly support payment to include amounts for debts or arrears;
and
(8) subpoena an employer or payor of funds to provide
promptly information on the employment, compensation, and benefits of an
individual employed by that employer as an employee or contractor, and sanction
an employer or payor of funds under section 393.07, subdivision 9a, for failure
to respond to the subpoena as provided by law.
Subd. 2.
[GENETIC TESTING.] (a) A child, parent, or alleged parent who
requests genetic testing must support the request with a sworn statement that:
(1) alleges paternity and sets forth facts
establishing a reasonable possibility of the requisite sexual contact between
the parties; or
(2) denies paternity and sets forth facts establishing a
reasonable possibility of the nonexistence of sexual contact between the
alleged parties.
(b) The order for genetic tests may be served anywhere
within the state and served outside the state in the same manner as prescribed
by law for service of subpoenas issued by the district court of this state.
(c) If the child, parent, or alleged parent fails to comply
with the genetic testing order, the public authority may seek to enforce that
order in district court through a motion to compel testing.
(d) No results obtained through genetic testing done in
response to an order issued under this section may be used in a criminal
proceeding.
Subd. 3.
[SUBPOENAS.] (a) Subpoenas may be served anywhere within the state
and served outside the state in the same manner as prescribed by law for
service of process of subpoenas issued by the district court of this
state. When a subpoena under this
subdivision is served on a third-party record keeper, written notice of the
subpoena must be mailed to the person who is the subject of the subpoenaed
material at the person's last known address within three days of the day the
subpoena is served. This notice
provision does not apply if there is reasonable cause to believe the giving of
the notice may lead to interference with the production of the subpoenaed
documents.
(b) A person served with a subpoena may make a written
objection to the public authority or court before the time specified in the
subpoena for compliance. The public
authority or the court may cancel or modify the subpoena, if appropriate. The public authority must pay the reasonable
costs of producing the documents, if requested.
(c) Subpoenas are enforceable in the same manner as
subpoenas of the district court. Upon
motion of the county attorney, the court may issue an order directing the
production of the records. A person who
fails to comply with the court order may be subject to civil or criminal
contempt of court.
Subd. 4. [DUE
PROCESS.] The administrative actions under this section are subject to due
process safeguards, including requirements for notice, opportunity to contest
the action, and opportunity to appeal the order to a judge, judicial officer,
or child support magistrate.
Sec. 38. [517C.44]
[SHARING OF INFORMATION; DATA.]
Subdivision 1.
[GENERAL.] The public authority may share available and relevant
information on the parties in order to perform its duties under sections
517C.40 to 517C.43 or under Supreme Court rules governing the expedited child
support hearing process under section 484.702, subject to the limitations of
subdivision 3 and sections 256.87, subdivision 8, and 257.70.
Subd. 2. [DATA
DISCLOSED TO AN ATTORNEY OF PUBLIC AUTHORITY.] (a) Data disclosed by an
applicant for, or recipient of, child support services to an attorney employed
by, or under contract with, the public authority is private data on an
individual. However, the data may be
disclosed under sections 13.46, subdivision 2, clauses (1) to (3) and (6) to
(19), and 517C.11, subdivision 3, in order to obtain, modify, or enforce child
support, medical support, and parentage determinations.
(b) An attorney employed by, or under contract with, the
public authority may disclose additional information received from an applicant
for, or recipient of, services for other purposes with the consent of the
individual applicant for, or recipient of, child support services.
Subd. 3.
[PROHIBITED DISCLOSURE.] In all proceedings under this chapter and
chapter 517A in which public assistance is assigned under section 256.741, or the
public authority provides services to a party or parties to the proceedings,
notwithstanding statutory or other authorization for the public authority to
release private data on the location of a party to the action, the public
authority may not release information on the location of one party to the other
party if:
(1) the public authority has knowledge that a protective
order with respect to the other party has been entered; or
(2) the public authority has reason to believe that the
release of the information may result in physical or emotional harm to the
other party.
Sec. 39. [517C.45]
[SUFFICIENCY OF NOTICE.]
Automated child support notices sent by the public authority
which do not require service are sufficient notice when issued and mailed by
first class mail to the person's last known address.
Sec. 40. [517C.50]
[CHILD SUPPORT PAYMENT CENTER; CENTRAL COLLECTIONS UNIT.]
Subdivision 1.
[CREATION.] (a) The commissioner of human services must create and
maintain a central collections unit to receive, process, and disburse payments,
and to maintain a record of payments in all cases when:
(1) the public authority is a party;
(2) the public authority provides child support enforcement
services to a party; or
(3) payment is collected through income withholding.
(b) The commissioner may contract for services to carry out
these provisions if the commissioner first meets and negotiates with the
affected exclusive representatives.
Subd. 2.
[CREDITOR COLLECTIONS.] The central collections unit under this
section is not a third party under chapters 550, 552, and 571 for purposes of
creditor collection efforts against child support and maintenance order
obligors or obligees, and is not subject to creditor levy, attachment, or garnishment.
Subd. 3. [CREDIT
FOR PAYMENT.] Payments made to the public authority that are not collected
through income withholding must be credited as of the date the payment is
received by the central collections unit.
Sec. 41. [517C.51]
[MANDATORY PAYMENT OF OBLIGATIONS TO CENTRAL COLLECTIONS UNIT.]
Subdivision 1.
[GENERAL.] All payments described in section 517C.50 must be made to
the central collections unit.
Subd. 2. [LOCAL
PAYMENT; TRANSMITTAL.] Each local child support agency must provide a
location within the agency to receive payments. When the local agency receives a payment it must transmit the
funds to the central collections unit within one working day of receipt of the
payment.
Subd. 3.
[INCENTIVES.] Notwithstanding a rule to the contrary, incentives must
be paid to the county providing services and maintaining the case to which the
payment is applied. Incentive payments
awarded for the collection of child support must be based solely upon payments
processed by the central collections unit.
Incentive payments received by the county under this subdivision must be
used for county child support collection efforts.
Subd. 4. [ELECTRONIC FUNDS TRANSFER.] The central
collections unit is authorized to engage in the electronic transfer of funds
for the receipt and disbursement of funds.
Subd. 5.
[REQUIRED CONTENT OF ORDER.] A tribunal issuing an order that
establishes or modifies a payment must issue an income withholding order in
conformity with section 517C.52. The
automatic income withholding order must include the obligor's name, the
obligor's Social Security number, the obligor's date of birth, and the name and
address of the obligor's employer. The
street mailing address and the electronic mail address for the central collections
unit must be included in each automatic income withholding order issued by a
tribunal.
Subd. 6.
[TRANSMITTAL OF ORDER TO PUBLIC AUTHORITY BY TRIBUNAL.] The tribunal
must transmit a copy of the order establishing or modifying the payment, and a copy
of the automatic income withholding order, to the local child support agency
within two working days of the approval of the order by the judge or child
support magistrate or other person or entity authorized to sign the automatic
withholding order.
Subd. 7.
[TRANSMITTAL OF FUNDS FROM OBLIGOR OR PAYOR OF FUNDS TO CENTRAL
COLLECTIONS UNIT.] The obligor or other payor of funds must identify the
obligor on the check or remittance by name, payor number, and Social Security
number, and must comply with section 517C.52.
Subd. 8.
[SANCTION FOR CHECKS DRAWN ON INSUFFICIENT FUNDS.] A notice may be
directed to a person or entity submitting a check drawn on insufficient funds
stating that future payments must be made by cash or certified funds. The central collections unit and the public
authority may refuse a check from a person or entity that has been given notice
that payments must be in cash or certified funds.
Subd. 9.
[ADMISSIBILITY OF PAYMENT RECORDS.] A copy of the record of payments
maintained by the central collections unit is admissible evidence in all
tribunals as proof of payments made through the central collections unit
without the need of testimony to prove authenticity.
Subd. 10.
[TRANSITION PROVISIONS.] (a) The commissioner of human services must
develop a plan for the implementation of the central collections unit. The plan must require that payments be
redirected to the central collections unit.
Payments may be redirected in groups according to county of origin,
county of payment, method of payment, type of case, or any other distinguishing
factor designated by the commissioner.
(b) Notice that payments must be made to the central
collections unit must be provided to the obligor and to the payor of funds
within 30 days before payments are redirected to the central collections
unit. After the notice has been
provided to the obligor or payor of funds, mailed payments received by the
local child support agency must be forwarded to the central collections
unit. A notice must be sent to the
obligor or payor of funds stating that payment application may be delayed and
must provide directions to submit future payments to the central collections
unit.
Subd. 11.
[COLLECTIONS UNIT RECOUPMENT ACCOUNT.] The commissioner of human
services may establish a revolving account to cover funds issued in error due
to insufficient funds or other reasons.
The commissioner must deposit appropriations for this purpose and all
recoupments against payments from the account in the collections unit's recoupment
account. The recoupments are
appropriated to the commissioner. An
unexpended balance in the account does not cancel, but is available until
expended.
Subd. 12.
[UNCLAIMED SUPPORT FUNDS.] (a) If the public authority cannot
disburse support payments to an obligee because the obligee cannot be located,
the public authority must continue its efforts to locate the obligee for one
year from the date it determines that it cannot locate the obligee.
(b) If the public authority is unable to locate the obligee
after one year, the public authority must mail a written notice to the obligee
at the obligee's last known address giving the obligee 60 days to contact the
public authority.
(c) If the obligee does not
contact the public authority within 60 days from the date of notice, the public
authority must:
(1) close the nonpublic assistance portion of the case;
(2) disburse unclaimed support funds to pay public
assistance arrears. If public
assistance arrears remain after disbursing the unclaimed support funds, the
public authority may continue to enforce and collect child support until all
public assistance arrears have been paid.
If there are not public assistance arrears, or unclaimed support funds
remain after the public assistance arrears have been paid, the public authority
must return the remaining unclaimed support funds to the obligor; and
(3) when all public assistance arrears have been paid to the
public authority, mail a written notice of termination of income withholding
and case closure to the obligor at the obligor's last known address. The notice must indicate that the obligor's
support obligation will remain in effect until further order of the court and
that the obligor may contact the public authority for assistance to modify the
order. The public authority must
include a copy of the form prepared by the state court administrator's office
under section 517C.25, subdivision 4, with the notice.
(d) If the public authority cannot locate the obligor to
return unclaimed support funds, the public authority must continue its efforts
to locate the obligor for one year from the date the public authority
determines that the obligor cannot be located.
If the public authority is unable to locate the obligor after one year,
the public authority must treat the funds as unclaimed property according to
federal law and chapter 345.
Sec. 42. [517C.52]
[INCOME WITHHOLDING; GENERAL.]
Subdivision 1.
[APPLICATION.] Sections 517C.51 to 517C.62 apply to all support
orders issued by a court or an administrative tribunal and orders for or
notices of withholding issued by the public authority according to section
517C.43, subdivision 1, clause (5).
Subd. 2.
[ORDER.] (a) Every support order must address income
withholding. Whenever a support order
is initially entered or modified, the full amount of the support order must be
withheld from the income of the obligor and forwarded to the public
authority. Sections 517C.51 to 517C.62
apply regardless of the source of income of the person obligated to pay the
child support.
(b) Every order for child support must provide for a
conspicuous notice of the provisions in this section that complies with section
517C.99, subdivision 3. An order
without this notice remains subject to this section.
(c) A payor of funds must implement income withholding
according to sections 517C.51 to 517C.62 upon receipt of an order for or notice
of withholding. The notice of
withholding must be on a form provided by the commissioner of human services.
Subd. 3.
[NOTICE; INCOME WITHHOLDING AND COLLECTION SERVICES.] (a) The
commissioner of human services must prepare and make available to the courts a
notice of services that explains child support and maintenance collection
services available through the public authority, including income
withholding. Upon receiving a petition
for dissolution of marriage or legal separation, the court administrator must
promptly send the notice of services to the petitioner and respondent at the
addresses stated in the petition.
(b) Upon receipt of a support order requiring income
withholding, a petitioner or respondent, who is not a recipient of public
assistance and does not receive child support collection services from the
public authority, must apply to the public authority for either full child
support collection services or for services only to withhold income.
(c) For those persons applying
for services only to withhold income, the public authority must charge a
monthly service fee of $15 to the obligor.
This fee is in addition to the amount of the support order and must be
withheld through income withholding.
The public authority must explain the service options in this section to
the affected parties and encourage the application for full child support
collection services.
Subd. 4.
[CONTRACT FOR SERVICE.] To carry out income withholding, the public
authority may contract for services, including the use of electronic funds
transfer.
Subd. 5.
[ELECTRONIC TRANSMISSION.] Orders or notices for income withholding
may be transmitted for enforcement purposes by electronic means.
Subd. 6. [TIMING
OF AUTOMATED ENFORCEMENT REMEDIES.] The public authority must make
reasonable efforts to ensure that automated enforcement remedies take into
consideration the time periods allowed under sections 517C.51 to 517C.62.
Sec. 43. [517C.53]
[WAIVER OF INCOME WITHHOLDING.]
(a) If child support is not assigned to the public authority
under section 256.741, the court may waive income withholding requirements if
it finds there are no arrears as of the date of the hearing and:
(1) one party demonstrates and the court finds there is good
cause to waive the requirements of sections 517C.51 to 517C.62 or to terminate
an order for or notice of income withholding previously entered; or
(2) all parties reach an agreement and the agreement is
approved by the court after a finding that the agreement is likely to result in
regular and timely payments. The
court's findings waiving the requirements of this paragraph must include a written
explanation of the reasons why income withholding would not be in the child's
best interests.
(b) In addition to the other requirements in this section,
if the case involves a modification of support, the court must make a finding
that support has been timely made.
(c) If the court waives income withholding, the obligee or
obligor may at any time request subsequent income withholding under section
517C.59.
Sec. 44. [517C.54]
[PAYOR OF FUNDS RESPONSIBILITIES.]
Subdivision 1.
[ACTIVATION.] An order for or notice of withholding is binding on a
payor of funds upon receipt.
Withholding must begin no later than the first pay period that occurs
after 14 days following the date of receipt of the order for or notice of
withholding. In the case of a financial
institution, preauthorized transfers must occur in accordance with a
court-ordered payment schedule.
Subd. 2.
[PROCEDURE.] A payor of funds must withhold from the income payable
to the obligor the amount specified in the order or notice of withholding and
amounts specified under sections 517C.58 and 517C.63 and must remit the amounts
withheld to the public authority within seven business days of the date the
obligor is paid the remainder of the income.
The payor of funds must include with the remittance the obligor's Social
Security number, the case type indicator as provided by the public authority,
and the date the obligor is paid the remainder of the income. The obligor is considered to have paid the
amount withheld as of the date the obligor received the remainder of the
income. A payor of funds may combine
all amounts withheld from one pay period into one payment to each public
authority, but must separately identify each obligor making payment.
Subd. 3.
[RETALIATION PROHIBITED.] A payor of funds must not discharge, or
refuse to hire, or otherwise discipline an employee as a result of wage or
salary withholding authorized by this chapter.
Subd. 4. [UPDATED ORDERS.] If more than one order
for or notice of withholding exists involving the same obligor and child, the
public authority must enforce the most recent order or notice. An order for or notice of withholding that
was previously implemented according to this chapter ends as of the date of the
most recent order. The public authority
must notify the payor of funds to withhold under the most recent withholding
order or notice.
Subd. 5.
[NOTIFICATION OF TERMINATION.] When an order for or notice of
withholding is in effect and the obligor's employment is terminated, the obligor
and the payor of funds must notify the public authority of the termination
within ten days of the termination date.
The termination notice must include the obligor's home address and the
name and address of the obligor's new payor of funds, if known.
Subd. 6.
[EXPENSES.] A payor of funds may deduct $1 from the obligor's
remaining salary for each payment made pursuant to an order for or notice of
withholding under this chapter to cover the expenses of withholding.
Sec. 45. [517C.55]
[LUMP-SUM PAYMENTS.]
Subdivision 1.
[APPLICATION.] (a) This section applies to lump-sum payments of $500
or more including, but not limited to, severance pay, accumulated sick pay,
vacation pay, bonuses, commissions, or other pay or benefits.
(b) The Consumer Credit Protection Act, United States Code,
title 15, section 1673(b), does not apply to lump-sum payments.
Subd. 2. [PAYOR
OF FUNDS RESPONSIBILITIES.] Before transmitting a lump-sum payment to an
obligor, a payor of funds who has been served with an order for or notice of
income withholding under this chapter or a sworn affidavit of arrears from the
public authority must:
(1) notify the public authority of the lump-sum payment that
is to be paid to the obligor; and
(2) hold the lump-sum payment for 30 days after the date the
lump-sum payment would otherwise have been paid to the obligor, notwithstanding
sections 176.221, 176.225, 176.521, 181.08, 181.101, 181.11, 181.13, and
181.145, and Minnesota Rules, part 1415.2000, subpart 10.
Subd. 3. [PUBLIC
AUTHORITY OPTIONS.] (a) The public authority may direct the payor of funds
to pay the lump-sum payment, up to the amount of judgments or arrears, to the
public authority if:
(1) the public authority serves by mail a sworn affidavit of
arrears from the public authority or a court order upon the payor of funds;
(2) a judgment entered pursuant to section 548.09 or
548.091, subdivision 1a, exists against the obligor, or other support arrears
exist; and
(3) a portion of the judgment or arrears remains unpaid.
(b) If no judgment or arrears exist, the public authority
may seek a court order directing the payor of funds to transmit all or a
portion of the lump-sum payment to the public authority for future
support. To obtain a court order under
this paragraph, the public authority must show an obligor's past willful
nonpayment of support.
Sec. 46. [517C.56]
[PAYOR OF FUNDS LIABILITY.]
Subdivision 1.
[LIABILITY TO OBLIGEE.] A payor of funds is liable to the obligee for
amounts required to be withheld. A
payor of funds that fails to withhold or transfer funds in accordance with this
chapter is liable to the obligee for interest on the funds at the rate
applicable to judgments under section 549.09, computed from the date the
funds were required to be withheld or transferred. A payor of funds is liable for reasonable attorney fees of the
obligee or public authority incurred in enforcing the liability under this
subdivision. A payor of funds that has
failed to comply with the requirements of sections 517C.51 to 517C.62 is
subject to contempt sanctions under section 517C.57. If the payor of funds is an employer or independent contractor
and violates this subdivision, a court may award the obligor twice the wages
lost as a result of this violation. If
a court finds a payor of funds violated this subdivision, the court must impose
a civil fine of not less than $500. The
liabilities under this subdivision apply to intentional noncompliance by a
payor of funds with the requirements of sections 517C.51 to 517C.62.
Subd. 2.
[NONLIABILITY FOR COMPLIANCE.] A payor of funds is not subject to
civil liability to any individual or agency for taking action in compliance
with an income withholding order or notice of withholding that appears regular
on its face according to this chapter or chapter 518C.
Sec. 47. [517C.57]
[EMPLOYER CONTEMPT.]
Subdivision 1.
[ORDERS BINDING.] Notices or orders for income withholding or medical
support issued pursuant to this chapter are binding on the employer, trustee,
or other payor of funds after the order or notice has been transmitted to the
employer, trustee, or payor of funds.
Subd. 2.
[CONTEMPT ACTION.] (a) An obligee or the public authority may
initiate a contempt action against an employer, trustee, or payor of funds,
within the action that created the support obligation, by serving an order to
show cause upon the employer, trustee, or payor of funds.
(b) The employer, trustee, or payor of funds is presumed to
be in contempt:
(1) if the employer, trustee, or payor of funds has
intentionally failed to withhold support after receiving the order or notice
for income withholding or notice of enforcement of medical support; or
(2) upon presentation of pay stubs or similar documentation
showing that the employer, trustee, or payor of funds withheld support and
demonstrating that the employer, trustee, or payor of funds intentionally
failed to remit support to the public authority.
Subd. 3.
[LIABILITY; SANCTIONS.] The employer, trustee, or payor of funds is
liable to the obligee or the public authority for amounts required to be
withheld that were not paid. The court
may enter judgment against the employer, trustee, or payor of funds for support
not withheld or remitted. An employer,
trustee, or payor of funds found guilty of contempt must be punished by a fine
of not more than $250 as provided in chapter 588. The court may also impose other contempt sanctions authorized
under chapter 588.
Sec. 48. [517C.58]
[PRIORITY OF INCOME WITHHOLDING ORDERS; MAXIMUM WITHHOLDING.]
Subdivision 1.
[PRIORITY.] An order for or notice of withholding under this chapter
or execution or garnishment upon a judgment for child support arrears or
preadjudicated expenses has priority over an attachment, execution, garnishment,
or wage assignment and is not subject to the statutory limitations on amounts
levied against the income of the obligor.
Amounts withheld from an employee's income must not exceed the maximum
permitted under the Consumer Credit Protection Act, United States Code, title
15, section 1673(b).
Subd. 2.
[MULTIPLE ORDERS.] If a single employee is subject to multiple
withholding orders or multiple notices of withholding for the support of more
than one child, the payor of funds must comply with all of the orders or
notices to the extent that the total amount withheld from the obligor's income
does not exceed the limits imposed under the Consumer Credit Protection Act,
United States Code, title 15, section 1673(b), giving priority to amounts
designated in each order or notice as current support as follows:
(1) if the total of the amounts designated in the
orders for or notices of withholding as current support exceeds the amount
available for income withholding, the payor of funds must allocate to each
order or notice an amount for current support equal to the amount designated in
that order or notice as current support, divided by the total of the amounts
designated in the orders or notices as current support, multiplied by the
amount of the income available for income withholding; and
(2) if the total of the amounts designated in the orders for
or notices of withholding as current support does not exceed the amount
available for income withholding, the payor of funds must pay the amounts
designated as current support, and must allocate to each order or notice an
amount for past due support, equal to the amount designated in that order or
notice as past due support, divided by the total of the amounts designated in
the orders or notices as past due support, multiplied by the amount of income
remaining available for income withholding after the payment of current
support.
Sec. 49. [517C.59]
[SUBSEQUENT INCOME WITHHOLDING.]
Subdivision 1.
[APPLICATION.] This section applies to support orders that do not
contain provisions for income withholding.
Subd. 2. [PUBLIC
AUTHORITY PROVIDES CHILD SUPPORT ENFORCEMENT SERVICES.] If the public
authority provides child support enforcement services to the parties, income
withholding under this section takes effect without prior judicial notice to
the obligor and without the need for judicial or administrative hearing. Withholding must be initiated when:
(1) the obligor requests it in writing to the public
authority;
(2) the obligee or obligor serves on the public authority a
copy of the notice of income withholding, a copy of the court's order, an
application, and the fee to use the public authority's collection services; or
(3) the public authority commences withholding under section
517C.43.
Subd. 3. [PUBLIC
AUTHORITY DOES NOT PROVIDE CHILD SUPPORT ENFORCEMENT SERVICES.] If the
public authority does not provide child support enforcement services to the
parties, income withholding under this section must be initiated when an
obligee requests it by making a written motion to the court and the court finds
that previous support has not been paid on a timely consistent basis or that
the obligor has threatened expressly or otherwise to stop or reduce payments.
Subd. 4.
[NOTICE.] Within two days after the public authority commences
withholding under this section, the public authority must send to the obligor
at the obligor's last known address, notice that withholding has
commenced. The notice must include the
information provided to the payor of funds in the notice of withholding.
Subd. 5.
[CONTEST.] (a) The obligor may contest withholding under this section
on the limited grounds that the withholding or the amount withheld is improper
due to mistake of fact. An obligor who
chooses to contest the withholding must do so no later than 15 days after the
employer commences withholding, by bringing a proper motion under section
484.702 and the expedited child support process rules.
(b) The income withholding must remain in place while the
obligor contests the withholding.
(c) If the court finds a mistake in the amount of the
arrears to be withheld, the court must continue the income withholding, but it
must correct the amount of the arrears to be withheld.
Sec. 50.
[517C.60] [INCOME WITHHOLDING; ARREARS ORDER.]
(a) In addition to ordering income withholding for current
support, the court may order the payor of funds to withhold amounts to satisfy
the obligor's previous arrears in support order payments. Use of this remedy does not exclude the use
of other remedies to enforce judgments.
The employer or payor of funds must withhold from the obligor's income
an additional amount equal to 20 percent of the monthly child support
obligation until the arrears are paid.
(b) Notwithstanding any law to the contrary, funds from
income sources included in section 517C.12, subdivision 1, whether periodic or
lump-sum, are not exempt from attachment or execution upon a judgment for child
support arrears.
(c) Absent an order to the contrary, if arrears exist at the
time a support order would otherwise terminate, income withholding continues in
effect or may be implemented in an amount equal to the support order plus an
additional 20 percent of the monthly child support obligation, until all
arrears have been paid in full.
Sec. 51. [517C.61]
[INTERSTATE INCOME WITHHOLDING.]
(a) Upon receipt of an order for support entered in another
state and the specified documentation from an authorized agency, the public
authority must implement income withholding.
A payor of funds in this state must withhold income under court orders
for withholding issued by other states or territories.
(b) An employer receiving an income withholding notice from
another state must withhold and distribute the funds as directed in the
withholding notice and must apply the law of the obligor's principal place of
employment when determining:
(1) the employer's fee for processing an income withholding
notice;
(2) the maximum amount permitted to be withheld from the
obligor's income; and
(3) deadlines for implementing and forwarding the child
support payment.
(c) An obligor may contest withholding under this section
pursuant to section 518C.506.
Sec. 52. [517C.62]
[ORDER TERMINATING INCOME WITHHOLDING.]
Subdivision 1.
[GENERAL PROCEDURE.] (a) An order terminating income withholding must
specify the effective date of the order and reference the initial order or
decree that establishes the support obligation. A court must enter an order terminating income withholding if:
(1) the obligor serves written notice of the application for
termination of income withholding by mail upon the obligee at the obligee's
last known mailing address, and serves a duplicate copy of the application on
the public authority;
(2) the application for termination of income withholding
specifies the event that terminates the support obligation, the effective date
of the termination of the support obligation, and the applicable provisions of
the order or decree that established the support obligation; and
(3) the application includes the complete name of the
obligor's payor of funds, the business mailing address, the court action and
court file number, and the support and collections file number, if known.
(b) The obligee or the public authority may request
a contested hearing on the issue of whether income withholding should
continue. The request must be made
within 20 days of receiving an application for termination of income
withholding. The request must clearly
specify the basis for continuing income withholding. The obligee or public authority may make an ex parte motion to
stay the service of an order terminating income withholding upon the obligor's
payor of funds pending the outcome of the contested hearing.
Subd. 2. [TERMINATION BY PUBLIC AUTHORITY.] (a) If the public authority
determines that income withholding is no longer applicable, the public
authority must notify the obligee and the obligor of intent to terminate income
withholding.
(b) Five days after notification to the obligee and obligor,
the public authority must issue a notice to the payor of funds terminating
income withholding. A court order is
not required unless the obligee has requested an expedited child support
hearing under section 484.702.
Sec. 53. [517C.63]
[CHILD SUPPORT DEPOSIT ACCOUNT; FINANCIAL INSTITUTIONS.]
Subdivision 1.
[APPLICATION.] If income withholding is ineffective due to the
obligor's method of obtaining income, the court must order the obligor to
identify a child support deposit account owned solely by the obligor, or to
establish an account, in a financial institution located in this state for the
purpose of depositing court-ordered child support payments. The court must order the obligor to execute
an agreement with the appropriate public authority for preauthorized transfers
from the obligor's child support account payable to an account of the public
authority. The court must order the
obligor to disclose to the court all deposit accounts owned by the obligor in
whole or in part in any financial institution.
The court may order the obligor to disclose to the court the opening or
closing of any deposit account owned in whole or in part by the obligor within
30 days of the opening or closing. The
court may order the obligor to execute an agreement with the appropriate public
authority for preauthorized transfers from any deposit account owned in whole
or in part by the obligor to the obligor's child support deposit account if
necessary to satisfy court-ordered child support payments. The court may order a financial institution
to disclose to the court the account number and any other information regarding
accounts owned in whole or in part by the obligor. An obligor who fails to comply with this subdivision, fails to deposit
funds in at least one deposit account sufficient to pay court-ordered child
support, or stops payment or revokes authorization of a preauthorized transfer
is subject to contempt of court procedures under chapter 588.
Subd. 2.
[TRANSFERS.] A financial institution must execute preauthorized
transfers for the obligor's deposit accounts in the amount specified in the
order and amounts required under this section as directed by the public
authority. A financial institution is
liable to the obligee if funds in any of the obligor's deposit accounts
identified in the court order equal the amount stated in the preauthorization
agreement but are not transferred by the financial institution in accordance
with the agreement.
Sec. 54. [517C.64]
[ESCROW ACCOUNT.]
Subdivision 1.
[STAY OF SERVICE.] (a) If the court finds there is no arrearage in
child support as of the date of the court hearing, the court must stay service
of the income withholding order under sections 517C.51 to 517C.62 if the
obligor:
(1) establishes a savings account for a sum equal to two
months of the monthly child support obligation; and
(2) provides proof of establishing the savings account to
the court and the public authority on or before the day of the court hearing
determining the obligation.
(b) The obligor must hold the sum under paragraph
(a) in a financial institution in an interest-bearing account with only the
public authority authorized as drawer of funds. The obligor's proof of establishing the account must include the
financial institution name and address, account number, and the deposit amount.
Subd. 2.
[RELEASE OF STAY.] Within three working days of receipt of notice of
default, the public authority must direct the financial institution to release
to the public authority the sum held under this section when the following
conditions are met:
(1) the obligor fails to pay the support amount to the
obligee or the public authority within ten days of the date it is ordered to be
paid;
(2) the obligee transmits a notice of default to the public
authority and makes application to the public authority for child support and
maintenance collection services. The
obligee must verify the notice and the notice must contain the title of the
action, the court file number, the obligee's full name and address, the
obligor's name and last known address, the obligor's last known employer or
other payor of funds, the date of the first unpaid amount, the date of the last
unpaid amount, and the total amount unpaid; and
(3) within three working days of receipt of notice from the
obligee, the public authority sends a copy of the notice of default and a
notice of intent to implement income withholding by mail to the obligor at the
address given. The notice of intent
must state that the public authority will serve the order establishing the
child support or maintenance obligation on the obligor's employer or payor of
funds unless, within 15 days after the mailing of the notice, the obligor
requests a hearing on the issue of whether payment was in default as of the
date of the notice of default. The
obligor must serve notice of the request for hearing on the public authority
and the obligee.
Subd. 3. [DUTIES
OF PUBLIC AUTHORITY.] Within three working days of receipt of sums released
under subdivision 2, the public authority shall remit to the obligee all
amounts not assigned under section 256.741 as current support or
maintenance. The public authority must
also serve a copy of the court's order and the provisions of this section and
sections 517C.51 to 517C.62 on the obligor's employer or other payor of funds
unless, within 15 days after mailing of the notice of intent to implement
income withholding, the obligor makes a proper motion pursuant to section
484.702 and the rules of the expedited child support process. The public authority must inform the
employer or payor of funds pursuant to sections 517C.51 to 517C.62 of the
effective date on which the next support or maintenance payment is due. The withholding process must begin on that
date and must reflect the total credits of principal and interest amounts
received from the escrow account.
Subd. 4.
[HEARING.] Within 30 days of the date of the notice of default under
subdivision 2, clause (2), the court must hold a hearing if a motion is brought
by the obligor as set forth in subdivision 2.
If the court finds that there was a default, the court must order the
immediate withholding of support or maintenance from the obligor's income. If the court finds that there was no
default, the court must order either the obligor or obligee to reestablish the
escrow account and continue the stay of income withholding.
Subd. 5.
[TERMINATION OF STAY.] When the obligation for support of a child or
for spousal maintenance ends under the terms of the order or decree
establishing the obligation and the sum held under this section has not
otherwise been released, the public authority must release the sum and interest
to the obligor when the following conditions are met:
(1) the obligor transmits a notice of termination to the
public authority. The obligor must
verify the notice and the notice must contain the title of the action, the
court file number, the full name and address of the obligee, specify the event
that ends the support or maintenance obligation, the effective date of the
termination of support or maintenance obligation, and the applicable provisions
of the order or decree that established the support or maintenance obligation;
(2) the public authority sends a copy of the notice
of termination to the obligee; and
(3) the obligee fails within 20 days after mailing of the
notice under clause (2) to request a hearing on the issue of whether the
support or maintenance obligation continues and serve notice of the request for
hearing on the obligor and the public authority.
Sec. 55. [517C.65]
[TRUSTEE.]
Subdivision 1.
[APPOINTMENT.] Upon its own motion or upon motion of either party,
the court may appoint a trustee, when it is deemed expedient, to receive money
ordered to be paid as child support for remittance to the person entitled to
receive the payments. The trustee may
also receive property that is part of an award for division of marital
property. The trustee must hold the
property in trust to invest and pay over the income in the manner the court
directs, or to pay over the principal sum in the proportions and at the times
the court orders. In all cases, the
court must consider the situation and circumstances of the recipient, and the
children, if any. The trustee must give
a bond, as the court requires, for the faithful performance of the trust. If it appears that the recipient of money
ordered to be paid as support will receive public assistance, the court must
appoint the public authority as trustee.
Subd. 2.
[RECORDS.] The trustee must maintain records listing the amount of
payments, the date when payments are required to be made, and the names and
addresses of the parties affected by the order.
Subd. 3.
[COMMUNICATION.] The parties affected by the order must inform the
trustee of a change of address or of other conditions that may affect the
administration of the order.
Subd. 4. [LATE
PAYMENT.] If a required support payment is not made within ten days of the
due date, the trustee must send the obligor notice of the arrears by first
class mail. If payment of the sum due
is not received by the trustee within ten days after sending notice, the
trustee must certify the amount due to the public authority, whenever that
authority is not the trustee. If the
public authority refers the arrears to the county attorney, the county attorney
may initiate enforcement proceedings against the obligor for support.
Sec. 56. [517C.66]
[OVERPAYMENTS.]
If child support is not assigned under section 256.741, and
an obligor has overpaid a child support obligation because of a modification or
error in the amount owed, the public authority must:
(1) apply the amount of the overpayment to reduce the amount
of child support arrears or debts owed to the obligee; and
(2) if an overpayment exists after the reduction of arrears
or debt, reduce the amount of the child support remitted to the obligee by an
amount no greater than 20 percent of the current monthly support obligation and
remit this amount to the obligor until the overpayment is reduced to zero.
Sec. 57. [517C.67]
[ALTERNATE NOTICE OF COURT ORDER.]
Whenever this chapter requires service of a court's order on
an employer, union, or payor of funds, service of a verified notice of order
may be made in lieu of the order. The
verified notice must contain the title of the action, the name of the court,
the court file number, the date of the court order, and must recite the
operative provisions of the order.
Sec. 58. [517C.70]
[CHILD SUPPORT AND PARENTING TIME ARE INDEPENDENT.]
(a) Failure by a party to make support payments is not a
defense to:
(1) interference with
parenting time; or
(2) removing a child from this state without the permission
of the court or the other parent.
(b) Interference with parenting time or taking a child from
this state without permission of the court or the other parent is not a defense
to nonpayment of support.
(c) If a party fails to make support payments, interferes
with parenting time, or removes a child from this state without permission of
the court or the other parent, the other party may petition the court for an
appropriate order.
Sec. 59. [517C.705]
[SIX-MONTH REVIEW.]
A request for a six-month review hearing form must be
attached to a decree or order that initially establishes child support rights
and obligations according to section 517A.29.
Sec. 60. [517C.71]
[PAYMENT AGREEMENTS.]
Subdivision 1.
[GENERAL REQUIREMENTS.] An obligor who has child support arrears may
enter into a payment agreement that addresses payment of both current and
overdue support. Payment agreements
must:
(1) be in writing;
(2) address both current support and arrears; and
(3) be approved by the district court, a child support
magistrate, or the public authority.
Subd. 2.
[CONSIDERATIONS.] In proposing or approving proposed payment
agreements for purposes of this chapter, the district court, a child support
magistrate, or the public authority must take into consideration the amount of
the arrears, the amount of the current support order, any pending request for
modification, and the earnings of the obligor.
The district court, child support magistrate, or public authority must
consider the individual financial circumstances of each obligor in evaluating
the obligor's ability to pay a proposed payment agreement and must propose a
reasonable payment agreement tailored to the individual financial circumstances
of each obligor. The district court,
child support magistrate, or public authority also must consider a graduated
payment plan tailored to the individual financial circumstances of each
obligor.
Sec. 61. [517C.72]
[SEEK EMPLOYMENT ORDERS.]
Subdivision 1.
[COURT ORDER.] (a) When the public authority is enforcing a support
order, the public authority may seek a court order requiring an obligor to seek
employment if:
(1) the obligor's employment cannot be verified;
(2) the obligor has child support arrears amounting to at
least three times the obligor's total monthly support payments; and
(3) the obligor is not in compliance with a payment
agreement.
(b) Upon proper notice to the obligor, the court may enter a
seek employment order if it finds that the obligor has not provided proof of
gainful employment and has not consented to an order for income withholding or
entered into a payment agreement.
Subd. 2. [CONTENTS OF ORDER.] The order to seek
employment must:
(1) order that the obligor seek employment within a
determinate amount of time;
(2) order that the obligor file with the public authority a
weekly report of at least five new attempts to find employment or of having
found employment. The report must
include the names, addresses, and telephone numbers of the employers or
businesses with whom the obligor attempted to obtain employment and the name of
the individual contact at each employer or business to whom the obligor made
application for employment or to whom an inquiry was directed;
(3) notify the obligor that failure to comply with the order
is evidence of a willful failure to pay support under section 517C.74;
(4) order that the obligor provide the public authority with
verification of any reason for noncompliance with the order; and
(5) specify the duration of the order, not to exceed three
months.
Sec. 62. [517C.73]
[ORDER FOR COMMUNITY SERVICES.]
If the court finds that the obligor earns $400 or less per
month and does not have the ability to provide support based on the guidelines
and factors in this chapter, the court may order the obligor to perform
community services to fulfill the obligor's support obligation. In ordering community services under this
section, the court must consider whether the obligor has the physical
capability to perform community services, and must order community services
that are appropriate for the obligor's abilities.
Sec. 63. [517C.74]
[CONTEMPT PROCEEDINGS FOR NONPAYMENT OF SUPPORT.]
Subdivision 1.
[GROUNDS.] If a person against whom an order or decree for support
has been entered under this chapter, chapter 256, or a comparable law from
another jurisdiction has child support arrears amounting to at least three
times the obligor's total monthly support obligation and is not in compliance
with a payment agreement, a court may cite and punish a person for contempt
under section 517C.25, subdivision 1, chapter 588, or this section. An obligor's failure to comply with a seek
employment order entered under section 517C.72 is evidence of willful failure
to pay support.
Subd. 2. [COURT
OPTIONS.] (a) If a court cites a person for contempt under this section, and
the obligor lives in a county that contracts with the commissioner of human
services under section 256.997, the court may order the performance of
community service work up to 32 hours per week for six weeks for each finding
of contempt if the obligor:
(1) is able to work full time;
(2) works an average of less than 32 hours per week; and
(3) has actual weekly gross income averaging less than 40
times the federal minimum hourly wage under United States Code, title 29,
section 206(a)(1), or is voluntarily earning less than the obligor has the
ability to earn, as determined by the court.
(b) An obligor is presumed to be able to work full
time. The obligor has the burden of
proving inability to work full time.
Subd. 3. [RELEASE.] A person ordered to do
community service work under subdivision 2 may, during the six-week period,
apply to the district court, a child support magistrate, or the public
authority to be released from the community service work requirement if the
person:
(1) provides proof to the district court, a child support
magistrate, or the public authority that the person is gainfully employed and
submits to an order for income withholding under section 517C.52;
(2) enters into a payment agreement under section 517C.71;
or
(3) provides proof to the district court, a child support
magistrate, or the public authority that, after entry of the order, the
person's circumstances have so changed that the person is no longer able to fulfill
the terms of the community service order.
Subd. 4.
[CONTINUING OBLIGATIONS.] An obligor's performance of community
service work does not relieve the obligor of a current support obligation or
arrears.
Sec. 64. [517C.745]
[SECURITY; SEQUESTRATION; CONTEMPT.]
(a) In all cases when the court orders support payments, the
court may require sufficient security to be given for the payment of them
according to the terms of the order.
Upon neglect or refusal to give security, or upon failure to pay the
support, the court may sequester the obligor's personal estate and the rents
and profits of real estate of the obligor, and appoint a receiver of them. The court may cause the personal estate and
the rents and profits of the real estate to be applied according to the terms
of the order.
(b) The obligor is presumed to have an income from a source
sufficient to pay the support order. A
child support order constitutes prima facie evidence that the obligor has the
ability to pay the award. If the obligor
disobeys the order, it is prima facie evidence of contempt. The court may cite the obligor for contempt
under this section, section 517C.74, or chapter 588.
Sec. 65. [517C.75]
[DRIVER'S LICENSE SUSPENSION.]
Subdivision 1.
[FACTORS WARRANTING SUSPENSION.] An obligor's driver's license must
be suspended if the court finds that the obligor has been or may be issued a
driver's license by the commissioner of public safety and if:
(1) the obligor has arrears amounting to at least three
times the obligor's total monthly support obligation and the obligor is not in
compliance with a payment agreement under section 517C.71; or
(2) the obligor has failed, after receiving notice, to
comply with a subpoena relating to a paternity or child support proceeding.
Subd. 2.
[SUSPENSION INITIATED BY OBLIGEE.] (a) An obligee may bring a motion
to suspend an obligor's driver's license.
The obligee must properly serve the motion on the obligor pursuant to
court rules and file the motion with the court. An obligee may not bring a motion under this subdivision within
12 months of a denial of a previous motion under this subdivision.
(b) At the hearing, if the court finds that a factor under
subdivision 1 exists, the court must:
(1) order the commissioner of public safety to suspend the
obligor's driver's license; and
(2) stay the order for 90 days
to allow the obligor the opportunity to enter into a payment agreement under
section 517C.71.
(c) If after 90 days the obligor has not entered into or is
not in compliance with a payment agreement under section 517C.71, the court's
order becomes effective and the commissioner of public safety must suspend the
obligor's driver's license.
Subd. 3.
[SUSPENSION INITIATED BY PUBLIC AUTHORITY.] (a) If the public
authority determines that a factor in subdivision 1 exists, the public
authority must initiate the suspension of the obligor's driver's license.
(b) The public authority must mail a written notice to the
obligor at the obligor's last known address indicating that:
(1) the public authority intends to seek suspension of the
obligor's driver's license; and
(2) the obligor must make a written request for a hearing to
contest the driver's license suspension within 30 days of the date of the
notice.
(c) If the obligor requests a hearing within 30 days of the
date of the notice, a court hearing must be held. At least 14 days before the hearing, the public authority must
serve notice on the obligor personally or by mail at the obligor's last known
address of the following:
(1) the hearing time and place;
(2) the allegations against the obligor; and
(3) a statement informing the obligor of the requirement to
enter into a payment agreement under section 517C.71 to avoid license
suspension.
(d) If a hearing is held and the court finds a factor under
subdivision 1 exists, the court must order the commissioner of public safety to
suspend the obligor's driver's license.
(e) If the obligor does not request a hearing within 30 days
of the date of the notice and has not executed a written payment agreement
under section 517C.71 that is approved by the public authority within 90 days
of the date of the notice, the public authority must direct the commissioner of
public safety to suspend the obligor's driver's license.
Subd. 4.
[SUSPENSION FOR FAILURE TO COMPLY WITH SUBPOENA.] (a) A court, child
support magistrate, or the public authority may direct the commissioner of
public safety to suspend an obligor's driver's license if the obligor has failed,
after receiving notice, to comply with a subpoena relating to a paternity or
child support proceeding.
(b) The notice to an obligor of intent to suspend a driver's
license must be served by first class mail at the obligor's last known
address. The notice must inform the
obligor of the right to make a written request for a hearing.
(c) If the obligor makes a written request within ten days
of the date of the notice, a hearing must be held. At the hearing, the only issues to be considered are mistake of
fact and whether the obligor received the subpoena.
Subd. 5.
[SUSPENSION FOR FAILURE TO REMAIN IN COMPLIANCE WITH PAYMENT AGREEMENT.]
The license of an obligor who fails to remain in compliance with a payment
agreement under section 517C.71 may be suspended. A party or the public authority must serve notice upon the
obligor of intent to suspend under this
subdivision. The party or public
authority must serve the notice upon the obligor by first class mail at the
obligor's last known address not less than ten days before the hearing
date. The notice must include a notice
of hearing. If the obligor appears at
the hearing and the judge determines that the obligor has failed to comply with
a payment agreement under section 517C.71, the judge must notify the Department
of Public Safety to suspend the obligor's driver's license. If the obligor fails to appear at the
hearing, the public authority may notify the Department of Public Safety to
suspend the obligor's driver's license.
Subd. 6. [REINSTATEMENT.]
(a) An obligor whose driver's license or operating privileges are suspended
may:
(1) provide proof to the public authority that the obligor
is in compliance with all payment agreements under section 517C.71;
(2) bring a motion for reinstatement of the driver's
license. At the hearing, the district
court or child support magistrate must establish a payment agreement under
section 517C.71 if the district court or child support magistrate orders reinstatement
of the driver's license; or
(3) seek a limited license under section 171.30. A limited license issued to an obligor under
section 171.30 expires 90 days after the date it is issued.
(b) Within 15 days of the receipt of the proof under
paragraph (a), clause (1), or a court order, the public authority must inform
the commissioner of public safety that the obligor's driver's license or
operating privileges should no longer be suspended.
Subd. 7.
[REMEDIES AVAILABLE.] The remedy under this section is in addition to
any other enforcement remedy available to the court or public authority.
Subd. 8. [REPORT
TO LEGISLATURE.] On January 15, 2007, and every two years after that, the
commissioner of human services must submit a report to the legislature that
identifies the following information relevant to the implementation of this
section:
(1) the number of child support obligors notified of an
intent to suspend a driver's license;
(2) the amount collected in payments from the child support
obligors notified of an intent to suspend a driver's license;
(3) the number of cases paid in full and payment agreements
executed in response to notification of an intent to suspend a driver's
license;
(4) the number of cases in which there has been notification
and no payments or payment agreements;
(5) the number of driver's licenses suspended;
(6) the cost of implementation and operation of the
requirements of this section; and
(7) the number of limited licenses issued and number of
cases in which payment agreements are executed and cases are paid in full
following issuance of a limited license.
Sec. 66.
[517C.76] [OCCUPATIONAL LICENSE SUSPENSION.]
Subdivision 1.
[FACTORS WARRANTING SUSPENSION.] An obligor's occupational license
must be suspended if the court finds that the obligor is or may be licensed by
a licensing board listed in section 214.01 or other state, county, or municipal
agency or board that issues an occupation license and if:
(1) the obligor has arrears amounting to at least three
times the obligor's total monthly support obligation and the obligor is not in
compliance with a payment agreement under section 517C.71; or
(2) the obligor has failed, after receiving notice, to
comply with a subpoena relating to a paternity or child support proceeding.
Subd. 2.
[SUSPENSION INITIATED BY OBLIGEE.] (a) An obligee may bring a motion
to suspend an obligor's occupational license.
The obligee must properly serve the motion on the obligor pursuant to
court rules and file the motion with the court.
(b) At the hearing, if the court finds that a factor under
subdivision 1 exists, the court must:
(1) order the licensing board or agency to suspend the
obligor's occupational license under section 214.101; and
(2) stay the order for 90 days to allow the obligor the
opportunity to enter into a payment agreement under section 517C.71.
(c) If after 90 days the obligor has not entered into or is
not in compliance with a payment agreement under section 517C.71, the court
order becomes effective and the licensing board or agency must suspend the
obligor's occupational license.
(d) If the obligor is a licensed attorney, the court must
comply with the procedure under subdivision 4 for notifying the Lawyers
Professional Responsibility Board.
Subd. 3. [SUSPENSION
INITIATED BY PUBLIC AUTHORITY.] (a) If the public authority determines that
a factor in subdivision 1 exists, the public authority must initiate the
suspension of the obligor's occupational license.
(b) The public authority must mail a written notice to the
obligor at the obligor's last known address indicating that:
(1) the public authority intends to seek suspension of the
obligor's occupational license; and
(2) the obligor must make a written request for a hearing to
contest the occupational license suspension within 30 days of the date of the
notice.
(c) If the obligor requests a hearing within 30 days of the
date of the notice, a court hearing must be held. At least 14 days before the hearing, the public authority must
serve notice on the obligor personally or by mail at the obligor's last known
address of the following:
(1) the hearing time and place;
(2) the allegations against the obligor; and
(3) a statement informing the obligor of the requirement to
enter into a payment agreement under section 517C.71 to avoid license
suspension.
(d) If a hearing is held and the court finds a
factor warranting suspension under subdivision 1 exists, the court must order
the occupational licensing board or agency to suspend the obligor's occupational
license.
(e) If the obligor does not request a hearing within 30 days
of the date of the notice and has not executed a written payment agreement
under section 517C.71 that is approved by the public authority within 90 days
of the date of the notice, the public authority must direct the occupational
licensing board or agency to suspend the obligor's occupational license.
(f) If the obligor is a licensed attorney, the court or
public authority must comply with the procedure under subdivision 4 for
notifying the Lawyers Professional Responsibility Board.
Subd. 4.
[OBLIGOR IS LICENSED ATTORNEY.] If an obligor is a licensed attorney
and the court finds that a factor warranting suspension under subdivision 1
exists, the court or public authority must notify the Lawyers Professional
Responsibility Board for appropriate action in accordance with the rules of
professional conduct or order the licensing board or agency to suspend the
obligor's license if the court finds that the obligor:
(1) is licensed by a licensing board or other state agency
that issues an occupational license;
(2) has not made full payment of arrears found to be due by
the public authority; and
(3) has not executed or is not in compliance with a payment
agreement.
Subd. 5.
[SUSPENSION FOR FAILURE TO COMPLY WITH SUBPOENA.] (a) A court, child
support magistrate, or the public authority may direct the occupational
licensing board or agency to suspend an obligor's occupational license if the
obligor has failed, after receiving notice, to comply with a subpoena relating
to a paternity or child support proceeding.
(b) The notice to an obligor of intent to suspend an
occupational license must be served by first class mail at the obligor's last
known address. The notice must inform
the obligor of the right to make a written request for a hearing.
(c) If the obligor makes a written request within ten days
of the date of the notice, a hearing must be held. At the hearing, the only issues to be considered are mistake of
fact and whether the obligor received the subpoena.
Subd. 6.
[FAILURE TO REMAIN IN COMPLIANCE WITH APPROVED PAYMENT AGREEMENT.] The
license of an obligor who fails to remain in compliance with a payment
agreement under section 517C.71 may be suspended. A party must serve notice upon the obligor of an intent to
suspend under this subdivision. A party
must serve the notice by first class mail at the obligor's last known address
not less than ten days before the date of the hearing. The notice must include a notice of
hearing. If the obligor appears at the
hearing and the judge determines that the obligor has failed to comply with a
payment agreement under section 517C.71, the judge must notify the licensing
board or agency to suspend the obligor's license. If the obligor fails to appear at the hearing, the public
authority may notify the licensing board or agency to suspend the obligor's
license.
Subd. 7.
[REINSTATEMENT.] An obligor whose occupational license is suspended
may provide proof to the public authority that the obligor is in compliance
with all payment agreements under section 517C.71. Within 15 days of the receipt of that proof, the public authority
must inform the licensing board or agency or the Lawyers Professional
Responsibility Board that the obligor is no longer ineligible for license
issuance, reinstatement, or renewal under this section.
Subd. 8.
[REMEDIES AVAILABLE.] The remedy under this section is in addition to
any other enforcement remedy available to the court or public authority.
Sec. 67.
[517C.77] [DATA ON SUSPENSIONS FOR SUPPORT ARREARS.]
Notwithstanding section 13.03, subdivision 4, paragraph (c),
data on an occupational license suspension under section 517C.76 or a driver's
license suspension under section 517C.75, that are transferred by the
Department of Human Services to the Department of Public Safety or a state,
county, or municipal occupational licensing agency respectively must have the
same classification at the Department of Public Safety or other receiving
agency under section 13.02 as other license suspension data held by the
receiving agency. The transfer of the
data does not affect the classification of the data in the hands of the
Department of Human Services.
Sec. 68. [517C.78]
[RECREATIONAL LICENSE SUSPENSION.]
Subdivision 1.
[MOTION; FACTORS.] (a) An obligee or the public authority may bring a
motion to suspend the recreational license or licenses of an obligor. An obligee or the public authority must
serve the motion on the obligor in person or by first class mail at the
obligor's last known address. There
must be an opportunity for a hearing.
The court may direct the commissioner of natural resources to suspend or
bar receipt of the obligor's recreational license or licenses if it finds that:
(1) the obligor has child support arrears amounting to at
least six times the obligor's total monthly support payments and the obligor is
not in compliance with a payment agreement under section 517C.71; or
(2) the obligor has failed, after receiving notice, to
comply with a subpoena relating to a paternity or child support proceeding.
(b) Before utilizing this section, the court must find that
other substantial enforcement mechanisms have been attempted but have not
resulted in compliance.
Subd. 2.
[AFFECTED LICENSES.] For purposes of this section, a recreational
license includes all licenses, permits, and stamps issued centrally by the
commissioner of natural resources under sections 97B.301, 97B.401, 97B.501,
97B.515, 97B.601, 97B.715, 97B.721, 97B.801, 97C.301, and 97C.305.
Subd. 3.
[REINSTATEMENT.] An obligor whose recreational license has been
suspended or barred may provide proof to the court that the obligor is in
compliance with all payment agreements under section 517C.71. Within 15 days of receipt of that proof, the
court must notify the commissioner of natural resources that the obligor's
recreational license or licenses must no longer be suspended nor may receipt be
barred.
Sec. 69. [517C.79]
[MOTOR VEHICLE LIEN.]
Subdivision 1.
[FACTORS WARRANTING LIEN.] A lien in the name of the obligee or the
state of Minnesota, as appropriate, in accordance with section 168A.05,
subdivision 8, must be entered on any motor vehicle certificate of title
subsequently issued in the obligor's name if the obligor:
(1) is a debtor for a judgment debt resulting from child
support arrears in an amount at least three times the total monthly support
obligation; and
(2) is not in compliance with a payment agreement under
section 517C.71.
Subd. 2. [LIEN
INITIATED BY OBLIGEE.] (a) An obligee may bring a motion for the entry of a
lien on any motor vehicle certificate of title issued in the obligor's
name. The obligee must properly serve
the motion on the obligor pursuant to court rules and file the motion with the
court.
(b) At the hearing, if the court finds that the factors
under subdivision 1 exist, the court must:
(1) order the commissioner of public safety to
enter a lien in the obligee's name or in the name of the state of Minnesota, as
appropriate under section 168A.05, subdivision 8, on any motor vehicle
certificate of title subsequently issued in the obligor's name; and
(2) stay the order for 90 days to allow the obligor the
opportunity to enter into a payment agreement under section 517C.71.
(c) If after 90 days the obligor has not entered into or is
not in compliance with a payment agreement under section 517C.71, the court's
order becomes effective and the commissioner of public safety must enter the
lien on any motor vehicle certificate of title subsequently issued in the
obligor's name.
Subd. 3. [LIEN
INITIATED BY PUBLIC AUTHORITY.] (a) If the public authority determines that
the factors in subdivision 1 exist, the public authority must direct the
commissioner of public safety to enter a lien in the name of the obligee or in
the name of the state of Minnesota, as appropriate, under section 168A.05,
subdivision 8, on any motor vehicle certificate of title subsequently issued in
the obligor's name.
(b) At least 90 days before directing the entry of a lien
under this section, the public authority must mail a written notice to the
obligor at the obligor's last known address indicating that:
(1) the public authority intends to enter a lien on any
motor vehicle certificate of title subsequently issued in the obligor's name;
and
(2) the obligor must make a written request for a hearing
within 30 days of the date of the notice to contest the action.
(c) If the obligor makes a written request for a hearing within
30 days of the date of the notice, a court hearing must be held. At least 14 days before the hearing, the
public authority must serve the obligor personally or by mail at the obligor's
last known address with a notice including the hearing time and place and the
allegations against the obligor.
(d) If a hearing is held and the court finds the factors
under subdivision 1 exist, the court must order the commissioner of public
safety to enter the lien on any motor vehicle certificate of title subsequently
issued in the obligor's name.
(e) If the obligor does not make a written request for a
hearing within 30 days of the date of the notice and has not entered into or is
not in compliance with a payment agreement under section 517C.71 approved by the
public authority within 90 days of the date of the notice, the public authority
must direct the commissioner of public safety to enter the lien on any motor
vehicle certificate of title subsequently issued in the obligor's name.
Subd. 4.
[RELEASE.] An obligor may provide proof to the court or the public
authority that the obligor is in compliance with all written payment agreements
under section 517C.71 or that the motor vehicle's value is less than the
exemption provided under section 550.37.
Within 15 days of the receipt of that proof, the court or public
authority must:
(1) execute a release of security interest under section
168A.20, subdivision 4, and mail or deliver the release to the owner or other
authorized person; or
(2) in instances where a lien has not yet been entered,
direct the commissioner of public safety not to enter a lien on any motor
vehicle certificate of title subsequently issued in the obligor's name.
Subd. 5. [NONEXEMPT VALUE.] A lien recorded
against a motor vehicle certificate of title under this section and section
168A.05, subdivision 8, attaches only to the nonexempt value of the motor
vehicle as determined in accordance with section 550.37. The value of a motor vehicle must be
determined in accordance with the retail value described in the National Auto
Dealers Association Official Used Car Guide, Midwest Edition, for the current
year, or in accordance with the purchase price as defined in section 297B.01,
subdivision 8.
Subd. 6.
[REMEDIES AVAILABLE.] The remedy available under this section is in
addition to any other enforcement remedies available to the court or public
authority.
Sec. 70. [517C.80]
[PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT OBLIGORS.]
Subdivision 1.
[MAKING NAMES PUBLIC.] At least once each year, the commissioner of
human services, in consultation with the attorney general, may publish a list
of the names and other identifying information of no more than 25 persons who:
(1) are child support obligors;
(2) are at least $10,000 in arrears;
(3) are not in compliance with a payment agreement regarding
both current support and arrears approved by the district court, a child
support magistrate, or the public authority;
(4) cannot currently be located by the public authority for
the purposes of enforcing a support order; and
(5) have not made a support payment except tax intercept
payments in the preceding 12 months.
Subd. 2.
[IDENTIFYING INFORMATION.] Identifying information may include the
obligor's name, last known address, amount owed, date of birth, photograph, the
number of children for whom support is owed, and any additional information
about the obligor that would assist in identifying or locating the
obligor. The commissioner and attorney
general may use posters, media presentations, electronic technology, and other
means that the commissioner and attorney general determine are appropriate for
dissemination of the information, including publication on the Internet. The commissioner and attorney general may make
any or all of the identifying information regarding these persons public. Information regarding an obligor who meets
the criteria in this section will only be made public after that person's
selection by the commissioner and attorney general.
Subd. 3.
[NOTICE.] (a) Before making the obligor's name public, the Department
of Human Services must send a notice to the obligor's last known address
stating the department's intention to make public information on the
obligor. The notice must also provide an
opportunity to have the obligor's name removed from the list by paying the
arrears or by entering into an agreement to pay the arrears, or by providing
information to the public authority that there is good cause not to make the
information public. The notice must
include the final date when the payment or agreement can be accepted.
(b) The Department of Human Services must obtain the
obligee's written consent to make the obligor's name public.
Subd. 4. [NAMES
PUBLISHED IN ERROR.] If the commissioner makes a name public under
subdivision 1 in error, the commissioner must also offer to publish a printed
retraction and a public apology acknowledging that the name was made public in
error. If the person whose name was
made public in error elects the public retraction and apology, the retraction
and apology must appear in the same medium and the same format as the original
notice where the name was listed in error.
In addition to the right of a public retraction and apology, a person
whose name was made public in error has a civil action for damages caused by
the error.
Sec. 71. [517C.81] [COLLECTION; ARREARS.]
Subdivision 1.
[COLLECTION OF ARREARS TO CONTINUE AFTER CHILD IS EMANCIPATED.] Remedies
available for collecting and enforcing support in this chapter and chapters
256, 257, and 518C also apply to cases in which a child for whom support is
owed is emancipated and the obligor owes past support or has accumulated
arrears as of the date of the youngest child's emancipation. Child support arrears under this section
include arrears for child support, medical support, child care, pregnancy and
birth expenses, and unreimbursed medical expenses as defined in section
517C.15.
Subd. 2.
[RETROACTIVE APPLICATION.] This section applies retroactively to
support arrears that accrued on or before the date of enactment and to all
arrears accruing after the date of enactment.
Subd. 3.
[LIMITATIONS.] Past support or pregnancy and confinement expenses
ordered for which the obligor has specific court-ordered terms for repayment
may not be enforced using drivers' and occupational or professional license
suspension, credit bureau reporting, and additional income withholding under
section 517C.60, unless the obligor fails to comply with the terms of the court
order for repayment.
Subd. 4.
[PAYMENT OF ARREARS.] Absent a court order to the contrary, if an
arrearage exists at the time a support order would otherwise terminate and
section 517C.60 does not apply, the obligor must repay the arrearage in an amount
equal to the current support order until all arrears have been paid in full.
Subd. 5.
[PAYMENT AGREEMENT.] If arrears exist according to a support order
which fails to establish a monthly support obligation in a specific dollar
amount, the public authority, if it provides child support collection services,
or the obligee may establish a payment agreement. The payment agreement must equal what the obligor would pay for
current child support, plus an additional 20 percent of the current child
support obligation, until all arrears are paid in full. If the obligor fails to enter into or comply
with a payment agreement, the public authority, if it provides child support
collection services, or the obligee may file a motion in district court or the
expedited child support process, if section 484.702 applies, for a court order
establishing repayment terms.
Sec. 72. [517C.82]
[COLLECTION; REVENUE RECAPTURE.]
The public authority may submit debt under chapter 270A only
if the obligor is in arrears in court-ordered child support or maintenance
payments, or both, in an amount greater than the obligor's total monthly
support and maintenance payments or if the debt has been entered and docketed
as a judgment.
Sec. 73. [517C.83]
[CASE REVIEWER.]
The commissioner must make a case reviewer available to
obligors and obligees. The reviewer
must be available to answer questions concerning the collection process and to
review the collection activity taken. A
reviewer who reasonably believes that a particular action being taken is
unreasonable or unfair may make recommendations to the commissioner and the
applicable county in regard to the collection action.
Sec. 74. [517C.84]
[ATTORNEY FEES; COLLECTION COSTS.]
Subdivision 1.
[GENERAL.] (a) A child support obligee is entitled to recover from
the obligor reasonable attorney fees and other collection costs incurred to
enforce a child support judgment, as provided in this section if the child
support arrears are:
(1) at least $500;
(2) at least 90 days past due; and
(3) docketed as a judgment
under sections 548.09 and 548.091.
(b) If the obligor pays in full the judgment rendered under
section 548.091 within 20 days of receipt of notice of entry of judgment, the
obligee is not entitled to recover attorney fees or collection costs under this
section.
Subd. 2.
[ENFORCEMENT.] Attorney fees and collection costs obtained under this
section are considered child support and entitled to the applicable remedies
for child support collection and enforcement.
Subd. 3. [NOTICE
TO PUBLIC AUTHORITY.] If the public authority is a party to a case, an
obligee must provide written notice to the public authority within five days
of:
(1) contracting with an attorney or collection entity to
enforce a child support judgment; or
(2) receipting payments received on a child support
judgment.
Subd. 4. [NOTICE
TO OBLIGOR; HEARING.] (a) The obligee must serve notice of the obligee's
intent to recover attorney fees and collection costs by certified or registered
mail on the obligor at the obligor's last known address. The notice must itemize the attorney fees
and collection costs being sought by the obligee. It must inform the obligor that the fees and costs will become an
additional judgment for child support unless, within 20 days of mailing of the
notice, the obligor requests a hearing:
(1) on the reasonableness of the fees and costs; or
(2) to contest the child support judgment on grounds limited
to mistake of fact.
(b) If the obligor requests a hearing, the only issues to be
determined by the court are:
(1) whether the attorney fees or collection costs were
reasonably incurred by the obligee for the enforcement of a child support
judgment against the obligor; or
(2) the validity of the child support judgment on grounds
limited to mistake of fact.
(c) The fees and costs may not exceed 30 percent of the
arrears. The court may modify the
amount of attorney fees and costs as appropriate and must enter judgment
accordingly.
(d) If the obligor fails to request a hearing within 20 days
of mailing of the notice under paragraph (a), the amount of the attorney fees
or collection costs requested by the obligee in the notice automatically
becomes an additional judgment for child support.
Subd. 5.
[FORMS.] The state court administrator must prepare and make
available to the court and the parties forms for use in providing for notice
and requesting a hearing under this section.
Sec. 75. [517C.99]
[REQUIRED NOTICES.]
Subdivision 1.
[REQUIREMENT.] Every court order or judgment and decree that provides
for child support, spousal maintenance, custody, or parenting time must contain
certain notices as set out in subdivision 3.
The information in the notices must be concisely stated in plain language. The notices must be in clearly legible
print, but may not exceed two pages. An
order or judgment and decree without the notice remains subject to all
statutes. The court may waive all or
part of the notice required under subdivision 3 relating to parental rights if
it finds it is necessary to protect the welfare of a party or child.
Subd. 2. [COPIES OF LAWS AND FORMS.] The district
court administrator must make copies of the sections referred to in subdivision
3 available at no charge and must provide forms to request or contest attorney
fees and collection costs under section 517C.84, and cost-of-living increases
under section 517C.31.
Subd. 3.
[CONTENTS.] The required notices must be substantially as follows:
"IMPORTANT
NOTICE
1. PAYMENTS TO PUBLIC AGENCY
According
to Minnesota Statutes, section 517C.35, payments ordered for maintenance and
support must be paid to the public agency responsible for child support
enforcement as long as the person entitled to receive the payments is receiving
or has applied for public assistance or has applied for support and maintenance
collection services. MAIL PAYMENTS TO:
2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A FELONY
A
person may be charged with a felony who conceals a minor child or takes,
obtains, retains, or fails to return a minor child from or to the child's
parent (or person with custodial or visitation rights), according to Minnesota
Statutes, section 609.26. A copy of
that section is available from any district court clerk.
3. NONSUPPORT OF A SPOUSE OR CHILD -- CRIMINAL PENALTIES
A
person who fails to pay court-ordered child support or maintenance may be
charged with a crime, which may include misdemeanor, gross misdemeanor, or
felony charges, according to Minnesota Statutes, section 609.375. A copy of that section is available from any
district court clerk.
4. RULES OF SUPPORT, MAINTENANCE, PARENTING TIME
(a)
Payment of support or spousal maintenance is to be as ordered, and the giving
of gifts or making purchases of food, clothing, and the like will not fulfill
the obligation.
(b)
Payment of support must be made as it becomes due, and failure to secure or
denial of parenting time is NOT an excuse for nonpayment, but the aggrieved
party must seek relief through a proper motion filed with the court.
(c)
Nonpayment of support is not grounds to deny parenting time. The party entitled to receive support may
apply for support and collection services, file a contempt motion, or obtain a
judgment as provided in Minnesota Statutes, section 548.091.
(d)
The payment of support or spousal maintenance takes priority over payment of
debts and other obligations.
(e)
A party who accepts additional obligations of support does so with the full
knowledge of the party's prior obligation under this proceeding.
(f)
Child support or maintenance is based on annual income, and it is the
responsibility of a person with seasonal employment to budget income so that
payments are made throughout the year as ordered.
(g)
If the obligor is laid off from employment or receives a pay reduction, support
may be reduced, but only if the obligor or public authority serves and files a
motion to reduce the support with the court.
Any reduction will take effect only if ordered by the court and may only
relate back to the time that the obligor files a motion. If the obligor or public authority does not
file a motion, the support obligation will continue at the current level. The court is not permitted to reduce support
retroactively, except as provided in Minnesota Statutes, section 517C.29.
(h) Reasonable parenting time
guidelines are contained in Appendix B, which is available from the court
administrator.
(i)
The nonpayment of support may be enforced through the denial of student grants;
interception of state and federal tax refunds; suspension of driver's,
recreational, and occupational licenses; referral to the Department of Revenue
or private collection agencies; seizure of assets, including bank accounts and
other assets held by financial institutions; reporting to credit bureaus;
interest charging, income withholding, and contempt proceedings; and other
enforcement methods allowed by law.
5. PARENTAL RIGHTS REGARDING INFORMATION AND CONTACT
Unless otherwise provided by the court:
(a)
Each party has the right of access to, and to receive copies of, school,
medical, dental, religious training, and other important records and
information about the minor child. Each
party has the right of access to information regarding health or dental
insurance available to the minor child.
Presentation of a copy of this order to the custodian of a record or
other information about the minor child constitutes sufficient authorization
for the release of the record or information to the requesting party.
(b)
Each party must keep the other informed as to the name and address of the
school of attendance of the minor child.
Each party has the right to be informed by school officials about the
child's welfare, educational progress and status, and to attend school and
parent teacher conferences. The school
is not required to hold a separate conference for each party.
(c)
In case of an accident or serious illness of a minor child, each party must
notify the other party of the accident or illness, and the name of the health
care provider and the place of treatment.
(d)
Each party has the right of reasonable access and telephone contact with the
minor child.
6. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE
Child
support and/or spousal maintenance may be withheld from income, with or without
notice to the person obligated to pay, when the conditions of Minnesota
Statutes, sections 517C.51 to 517C.62, have been met. A copy of those sections is available from any district court
clerk.
7. CHANGE OF ADDRESS OR RESIDENCE
Unless
otherwise ordered, each party must notify the other party, the court, and the
public authority responsible for collection, if applicable, of the following
information within ten days of any change:
the residential and mailing address; telephone number; driver's license
number; Social Security number; and name, address, and telephone number of the
employer.
8. COST-OF-LIVING INCREASE OF SUPPORT AND MAINTENANCE
Child
support and/or spousal maintenance may be adjusted every two years based upon a
change in the cost of living (using Department of Labor Consumer Price Index
.........., unless otherwise specified in this order) when the conditions of
Minnesota Statutes, section 517C.31, are met.
Cost-of-living increases are compounded. A copy of Minnesota Statutes, section 517C.31, and forms
necessary to request or contest a cost-of-living increase are available from
any district court clerk.
9. JUDGMENTS FOR UNPAID SUPPORT
If
a person fails to make a child support payment, the payment owed becomes a
judgment against the person responsible to make the payment by operation of law
on or after the date the payment is due, and the person entitled to receive the
payment or the public agency may obtain entry and docketing of the judgment
WITHOUT NOTICE to the person responsible to make the payment under Minnesota
Statutes, section 548.091. Interest
begins to accrue on a payment or installment of child support whenever the unpaid
amount due is greater than the current support due, according to Minnesota
Statutes, section 548.091, subdivision 1a.
10. JUDGMENTS FOR UNPAID SPOUSAL MAINTENANCE
A
judgment for unpaid spousal maintenance may be entered when the conditions of
Minnesota Statutes, section 548.091, are met.
A copy of that section is available from any district court clerk.
11. ATTORNEY FEES AND COLLECTION COSTS FOR
ENFORCEMENT OF CHILD SUPPORT
A
judgment for attorney fees and other collection costs incurred in enforcing a
child support order will be entered against the person responsible to pay
support when the conditions of Minnesota Statutes, section 517C.84, are
met. A copy of Minnesota Statutes,
section 517C.84, and forms necessary to request or contest these attorney fees
and collection costs are available from any district court clerk.
12. PARENTING TIME EXPEDITOR PROCESS
On
request of either party or on its own motion, the court may appoint a parenting
time expeditor to resolve parenting time disputes under Minnesota Statutes,
section 517B.26. A copy of that section
and a description of the expeditor process is available from any district court
clerk.
13. PARENTING TIME REMEDIES AND PENALTIES
Remedies
and penalties for the wrongful denial of parenting time are available under
Minnesota Statutes, section 517B.25, subdivision 7. These include compensatory parenting time, civil penalties, bond
requirements, contempt, and reversal of custody. A copy of that subdivision and forms for requesting relief are
available from any district court clerk."
Sec. 76.
[APPROPRIATIONS.]
$2,601,000 is appropriated in fiscal year 2006 from the
general fund to the commissioner of human services to fund implementation of
the Minnesota Child Support Act and to reimburse counties for their
implementation costs. The commissioner
of human services shall devise an equitable system to reimburse counties for
their costs of implementing the Minnesota Child Support Act. This is a onetime appropriation. Any unencumbered balance remaining in the
first year does not cancel and is available the second year of the biennium.
$1,087,000 is appropriated in fiscal year 2007 from the
general fund to the Supreme Court administrator to fund implementation of the
Minnesota Child Support Act.
[EFFECTIVE DATE.] This
section is effective July 1, 2005.
Sec. 77. [REVISOR'S
INSTRUCTION.]
(a) The revisor of statutes must correct internal
cross-references to sections that are now in Minnesota Statutes, chapter 517C,
throughout Minnesota Statutes and Minnesota Rules.
(b) If a provision of a section of Minnesota
Statutes amended by this act is amended by the 2005 regular legislative session
or 2005 special legislative session, if any, the revisor shall codify the
amendment consistent with the recodification of the affected section by this
act, notwithstanding any law to the contrary.
In sections affected by this instruction, the revisor may make changes
necessary to correct the punctuation, grammar, or structure of the remaining
text and preserve its meaning.
Sec. 78. [REPEALER.]
Minnesota Statutes 2004, sections 518.111; 518.171; 518.255;
518.54, subdivisions 2, 4a, 13, and 14; 518.551, subdivisions 1, 5, 5a, 5b, 5c,
5d, 5e, 5f, 6, 7, 9, 11, 12, 13, 13a, 14, and 15; 518.5513; 518.553; 518.57;
518.575; 518.585; 518.5851; 518.5852; 518.5853; 518.61; 518.6111; 518.614;
518.615; 518.616; 518.617; 518.618; 518.6195; 518.6196; and 518.68, are
repealed.
Sec. 79. [EFFECTIVE
DATE.]
Unless otherwise specified, this act is effective July 1,
2007, and applies to all actions commenced and motions served on or after July
1, 2007.
ARTICLE
3
MISCELLANEOUS
Section 1. Minnesota
Statutes 2004, section 518.1705, subdivision 7, is amended to read:
Subd. 7. [MOVING THE
CHILD TO ANOTHER STATE.] Parents may agree, but the court must not require,
that in a parenting plan the factors in section 518.17 or 257.025, as
applicable, upon the legal standard that will govern a decision
concerning removal of a child's residence from this state, provided that:
(1) both parents were represented by counsel when the parenting
plan was approved; or
(2) the court found the parents were fully informed, the
agreement was voluntary, and the parents were aware of its implications.
Sec. 2. Minnesota
Statutes 2004, section 518.175, subdivision 3, is amended to read:
Subd. 3. [MOVE TO
ANOTHER STATE.] The parent with whom the child resides shall not move the
residence of the child to another state except upon order of the court or with
the consent of the other parent, if the other parent has been given parenting
time by the decree. If the purpose of
the move is to interfere with parenting time given to the other parent by the
decree, the court shall not permit the child's residence to be moved to another
state.
The court shall apply a best interests standard when
considering the request of the parent with whom the child resides to move the
child's residence to another state. The
factors the court must consider in determining the child's best interests
include, but are not limited to, the following:
(1) the nature, quality, extent of involvement, and duration
of the child's relationship with the person proposing to relocate and with the
nonrelocating person, siblings, and other significant persons in the child's
life;
(2) the age, developmental stage, needs of the child, and
the likely impact the relocation will have on the child's physical,
educational, and emotional development, taking into consideration any special
needs of the child;
(3) the feasibility of preserving the relationship
between the nonrelocating person and the child through suitable parenting time
arrangements, considering the logistics and financial circumstances of the
parties;
(4) the child's preference, taking into consideration the
age and maturity of the child;
(5) whether there is an established pattern of conduct of
the person seeking the relocation either to promote or thwart the relationship
of the child and the nonrelocating person;
(6) whether the relocation of the child will enhance the
general quality of the life for both the custodial parent seeking the
relocation and the child including, but not limited to, financial or emotional
benefit or educational opportunity;
(7) the reasons of each person for seeking or opposing the
relocation;
(8) the effect on the safety and welfare of the child, or
the parent requesting to move the child's residence, of domestic abuse, as
defined in section 518B.01; and
(9) any other factor affecting the best interests of the
child.
The burden of proof is upon the parent requesting to move
the residence of the child to another state, except that if the court finds the
existence of domestic abuse between the parents, the burden of proof is upon
the parent opposing the move.
Sec. 3. Minnesota Statutes
2004, section 518.18, is amended to read:
518.18 [MODIFICATION OF ORDER.]
(a) Unless agreed to in writing by the parties, no motion to
modify a custody order or parenting plan may be made earlier than one year
after the date of the entry of a decree of dissolution or legal separation
containing a provision dealing with custody, except in accordance with
paragraph (c).
(b) If a motion for modification has been heard, whether or not
it was granted, unless agreed to in writing by the parties no subsequent motion
may be filed within two years after disposition of the prior motion on its
merits, except in accordance with paragraph (c).
(c) The time limitations prescribed in paragraphs (a) and (b)
shall not prohibit a motion to modify a custody order or parenting plan if the
court finds that there is persistent and willful denial or interference with
parenting time, or has reason to believe that the child's present environment
may endanger the child's physical or emotional health or impair the child's
emotional development.
(d) If the court has jurisdiction to determine child custody
matters, the court shall not modify a prior custody order or a parenting plan
provision which specifies the child's primary residence unless it finds, upon
the basis of facts, including unwarranted denial of, or interference with, a
duly established parenting time schedule, that have arisen since the prior
order or that were unknown to the court at the time of the prior order, that a
change has occurred in the circumstances of the child or the parties and that
the modification is necessary to serve the best interests of the child. In applying these standards the court shall
retain the custody arrangement or the parenting plan provision specifying the
child's primary residence that was established by the prior order unless:
(i) the court finds that a change in the custody
arrangement or primary residence is in the best interests of the child and the
parties previously agreed, in a writing approved by a court, to apply the best
interests standard in section 518.17 or 257.025, as applicable; and, with
respect to agreements approved by a court on or after April 28, 2000, both
parties were represented by counsel when the agreement was approved or the
court found the parties were fully informed, the agreement was voluntary, and
the parties were aware of its implications;
(ii) both parties agree to the modification;
(iii) the child has been integrated into the family of the
petitioner with the consent of the other party; or
(iv) the child's present environment endangers the child's
physical or emotional health or impairs the child's emotional development and
the harm likely to be caused by a change of environment is outweighed by the
advantage of a change to the child; or
(v) the court has denied a request of the primary custodial
parent to move the residence of the child to another state, and the primary
custodial parent has relocated to another state despite the court's order.
In addition, a court may modify a custody order or parenting
plan under section 631.52.
(e) In deciding whether to modify a prior joint custody order,
the court shall apply the standards set forth in paragraph (d) unless: (1) the parties agree in writing to the
application of a different standard, or (2) the party seeking the modification
is asking the court for permission to move the residence of the child to
another state.
(f) If a parent has been granted sole physical custody of a
minor and the child subsequently lives with the other parent, and temporary
sole physical custody has been approved by the court or by a court-appointed
referee, the court may suspend the obligor's child support obligation pending
the final custody determination. The
court's order denying the suspension of child support must include a written
explanation of the reasons why continuation of the child support obligation
would be in the best interests of the child.
Sec. 4. Minnesota
Statutes 2004, section 518.58, subdivision 4, is amended to read:
Subd. 4. [PENSION
PLANS.] (a) The division of marital property that represents pension plan
benefits or rights in the form of future pension plan payments:
(1) is payable only to the extent of the amount of the pension
plan benefit payable under the terms of the plan;
(2) is not payable for a period that exceeds the time that
pension plan benefits are payable to the pension plan benefit recipient;
(3) is not payable in a lump sum amount from defined benefit
pension plan assets attributable in any fashion to a spouse with the status of
an active member, deferred retiree, or benefit recipient of a pension plan;
(4) if the former spouse to whom the payments are to be made
dies prior to the end of the specified payment period with the right to any
remaining payments accruing to an estate or to more than one survivor, is
payable only to a trustee on behalf of the estate or the group of survivors for
subsequent apportionment by the trustee; and
(5) in the case of defined benefit public pension plan
benefits or rights, may not commence until the public plan member submits a
valid application for a public pension plan benefit and the benefit becomes
payable.
(b) The individual retirement
account plans established under chapter 354B may provide in its plan document,
if published and made generally available, for an alternative marital property
division or distribution of individual retirement account plan assets. If an alternative division or distribution
procedure is provided, it applies in place of paragraph (a), clause (5).
Sec. 5. Minnesota
Statutes 2004, section 518.64, is amended by adding a subdivision to read:
Subd. 7.
[MILITARY SERVICE.] (a) An increase or decrease in an obligor's
income because of active military service is grounds for a motion for a
modification of support even if the increase or decrease in the obligor's
income would not otherwise qualify for modification under this section.
(b) If an obligor who makes a motion to modify support is
unable to appear at a proceeding because of being called into active duty, the
court must, upon request of the obligor, stay further proceedings until the
obligor returns from active duty or is able to appear by alternate means. If the obligor chooses to proceed without
appearing, the court may determine the current support obligation based upon
documentary evidence of the obligor's income without requiring the obligor's
appearance. The state court
administrator shall prepare a form to allow an obligor to request a
modification without appearance.
(c) If there has been a modification under this subdivision,
the obligor's return from active military service is grounds for a motion for
modification of support even if the increase or decrease in the obligor's
income would not otherwise qualify for a modification under this section.
(d) An obligor whose support obligation has been modified
under this subdivision shall notify the obligee and the public authority, if
the public authority is providing support enforcement services, within 30 days
of the obligor's return from active military service.
(e) For purposes of this subdivision, "active military
service" has the meaning given to the term "active service" in
section 190.05, subdivision 5, when the obligor has been ordered to active military
service for 30 or more days.
Sec. 6. [EFFECTIVE
DATE.]
Section 5 is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to civil law; reforming and
recodifying the law relating to marriage dissolution, child custody, child
support, maintenance, and property division; changing a fee; making style and
form changes; appropriating money; amending Minnesota Statutes 2004, sections
357.021, by adding a subdivision; 518.17, subdivisions 1, 2; 518.1705,
subdivision 7; 518.175, subdivision 3, by adding a subdivision; 518.18; 518.58,
subdivision 4; 518.64, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 518; proposing coding for new law as Minnesota
Statutes, chapter 517C; repealing Minnesota Statutes 2004, sections 518.111;
518.171; 518.255; 518.54, subdivisions 2, 4a, 13, 14; 518.551, subdivisions 1,
5, 5a, 5b, 5c, 5d, 5e, 5f, 6, 7, 9, 11, 12, 13, 13a, 14, 15; 518.5513; 518.553;
518.57; 518.575; 518.585; 518.5851; 518.5852; 518.5853; 518.61; 518.6111;
518.614; 518.615; 518.616; 518.617; 518.618; 518.6195; 518.6196; 518.68."
The motion prevailed and the amendment was adopted.
The Speaker called Abrams to the Chair.
Entenza, Kelliher and Sviggum
were excused for the remainder of today's session.
Mahoney and Eastlund moved to amend S. F. No. 630, as amended,
as follows:
Page 2, after line 6, insert:
"Sec. 2. Minnesota
Statutes 2004, section 518.003, subdivision 3, is amended to read:
Subd. 3. [CUSTODY.]
Unless otherwise agreed by the parties:
(a) "Legal custody" means the right to determine the
child's upbringing, including education, health care, and religious training.
(b) "Joint legal custody" means that both parents
have equal rights and responsibilities, including the right to participate in
major decisions determining the child's upbringing, including education, health
care, and religious training.
(c) "Physical custody and residence" means the
routine daily care and control and the residence of the child.
(d) "Joint physical custody" means that the routine
daily care and control and the residence of the child is structured between the
parties. Joint physical custody does
not require an equal division of time between the parties.
(e) Wherever used in this chapter, the term "custodial
parent" or "custodian" means the person who has the physical
custody of the child at any particular time.
(f) "Custody determination" means a court decision
and court orders and instructions providing for the custody of a child,
including parenting time, but does not include a decision relating to child
support or any other monetary obligation of any person.
(g) "Custody proceeding" includes proceedings in
which a custody determination is one of several issues, such as an action for
dissolution, divorce, or separation, and includes proceedings involving
children who are in need of protection or services, domestic abuse, and
paternity.
Sec. 3. Minnesota
Statutes 2004, section 518.156, is amended by adding a subdivision to read:
Subd. 3.
[DEADLINE FOR CUSTODY AGREEMENT OR PARENTING PLAN.] Within 90 days
after a custody proceeding is commenced by a parent or when the matter is set
for determination by the court, whichever is earlier, the parents must enter a
parenting plan under section 518.1705.
If the parents fail to meet this deadline, the court must use the
rebuttable presumption regarding joint physical custody provided by section
518.17, subdivision 2, paragraph (b)."
Renumber the sections in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the
Mahoney and Eastlund amendment and the roll was called. There were 110 yeas and 17 nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Charron
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Erhardt
Erickson
Finstad
Garofalo
Gazelka
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilty
Holberg
Hoppe
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Lieder
Lillie
Magnus
Mahoney
Marquart
McNamara
Meslow
Moe
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Sailer
Samuelson
Seifert
Severson
Simon
Simpson
Smith
Soderstrom
Solberg
Sykora
Thissen
Tingelstad
Urdahl
Vandeveer
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Those who voted in the negative were:
Atkins
Carlson
Fritz
Hilstrom
Hornstein
Kahn
Liebling
Loeffler
Mariani
Mullery
Paymar
Ruud
Scalze
Sieben
Slawik
Thao
Wagenius
The motion prevailed and the amendment was adopted.
S. F. No. 630, A bill for an act relating to civil law;
increasing fees related to marriage and child support; reforming law relating
to child support; establishing criteria for support obligations; defining
parents' rights and responsibilities; appropriating money; amending Minnesota
Statutes 2004, sections 357.021, subdivisions 1a, 2; 518.005, by adding a
subdivision; 518.54; 518.55, subdivision 4; 518.551, subdivisions 5, 5b;
518.62; 518.64, subdivision 2, by adding subdivisions; 518.68, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 518; repealing
Minnesota Statutes 2004, sections 518.171; 518.54, subdivisions 2, 4, 4a;
518.551, subdivisions 1, 5a, 5c, 5f.
The bill was read for the third time, as amended, and placed
upon its final passage.
The question was taken on the passage of the bill and the roll
was called. There were 117 yeas and 12
nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Anderson, I.
Atkins
Beard
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Erhardt
Erickson
Finstad
Garofalo
Gazelka
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Heidgerken
Hilty
Holberg
Hoppe
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Lieder
Lillie
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
Otremba
Ozment
Paulsen
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Severson
Sieben
Simon
Simpson
Smith
Soderstrom
Solberg
Sykora
Thissen
Tingelstad
Urdahl
Vandeveer
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Those who voted in the negative were:
Bernardy
Fritz
Goodwin
Hilstrom
Hornstein
Kahn
Liebling
Loeffler
Paymar
Slawik
Thao
Wagenius
The bill was passed, as amended, and its title agreed to.
Paulsen moved that the remaining bills on the Calendar for the
Day be continued. The motion prevailed.
ANNOUNCEMENT
BY THE SPEAKER
The Speaker announced the appointment of the following members
of the House to a Conference Committee on H. F. No. 1915:
Zellers, Abrams and Carlson.
There being no objection, the order of business reverted to
Reports of Standing Committees.
REPORTS OF STANDING COMMITTEES
Paulsen from the Committee on Rules and Legislative
Administration to which was referred:
H. F. No. 2063, A bill for an act relating to public safety;
modifying motor vehicle, traffic regulation, and driver's license provisions
relating to commercial motor vehicles; making technical and clarifying changes;
modifying definitions of recreational vehicle, motor home, state, and tank
vehicle; prohibiting issuance of identification card to holder of driving
instruction permit; modifying driver's license classifications, restrictions,
exceptions, and exemptions; modifying driver records provisions; incorporating
federal regulations; amending Minnesota Statutes 2004, sections 168.011, subdivision
25; 169.01, subdivisions 75, 76; 169A.52, subdivision 3; 171.01, subdivisions
22, 35, 47, by adding a subdivision; 171.02; 171.03; 171.04, subdivision 2;
171.09; 171.12, subdivision 3; 171.165,
subdivisions 1, 2, 6; proposing coding for new law in Minnesota Statutes,
chapter 171; repealing Minnesota Statutes 2004, sections 169.99, subdivision
1b; 171.12, subdivision 6; 171.165, subdivisions 3, 4, 4a, 4b; Minnesota Rules,
part 7503.2400.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Paulsen from the Committee on Rules and Legislative
Administration to which was referred:
H. F. No. 2097, A bill for an act relating to motor vehicles;
regulating registration tax refunds; modifying registration procedures; making
technical and clarifying changes; amending Minnesota Statutes 2004, sections
168.011, subdivisions 3, 4, 5, 5a, 6, 7, by adding subdivisions; 168.15,
subdivision 1; 168.16; 168.31, subdivision 5; repealing Minnesota Statutes
2004, sections 168.011, subdivision 19; 168.15, subdivision 2.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Paulsen from the Committee on Rules and Legislative
Administration to which was referred:
H. F. No. 2255, A bill for an act relating to vehicle
insurance; requiring the commissioner of public safety to discontinue insurance
verification sampling program until the commissioner modifies program;
declaring charges for violations of sampling program laws to be void; providing
remediation; reinstating certain drivers' licenses; requiring report;
authorizing resumption of sampling program; appropriating money.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
SECOND READING OF HOUSE BILLS
H. F. Nos. 2063, 2097 and 2255 were read for the second time.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted
the report of the Conference Committee on:
H. F. No. 1385, A bill for an act relating to higher education;
allocating money for educational and related purposes with certain conditions;
modifying various loan, grant, and financial aid provisions; requiring institutions
to provide certain data; permitting disclosure of certain data to determine
eligibility; amending various reciprocity provisions; providing
definitions; directing the Board of Trustees to designate centers of
excellence; amending the Minnesota college savings plan; authorizing transfer
of certain bonding authority; amending provisions related to private career
schools; establishing fees; providing for merger with the Higher Education
Facilities Authority; establishing the Rochester University Development
Committee; appropriating money; amending Minnesota Statutes 2004, sections
13.46, subdivision 2; 135A.031, subdivisions 3, 4; 135A.052, subdivision 1;
135A.30, subdivisions 3, 4, 5; 135A.52, subdivisions 1, 2; 136A.01, subdivision
2; 136A.031, subdivisions 2, 3, 4; 136A.08, by adding subdivisions; 136A.121,
subdivisions 2, 5, 6, 9, by adding a subdivision; 136A.125, subdivision 2;
136A.1701, by adding subdivisions; 136F.04, subdivision 4; 136F.32, subdivision
2; 136G.03, subdivisions 3, 21a, 22, 32; 136G.05, subdivision 8; 136G.09,
subdivisions 11, 12; 136G.11, subdivisions 1, 2, 3, 13; 136G.13, subdivisions
1, 5; 136G.14; 137.0245, subdivisions 1, 2, 4; 141.21, by adding a subdivision;
141.25, subdivisions 3, 5, 8, 9, 12; 141.251; 141.26, subdivision 5; 141.271,
subdivisions 4, 7, 10, by adding subdivisions; 141.28, subdivision 1, by adding
a subdivision; 141.29, subdivision 3; 141.30; 141.35; 192.502, subdivision 1;
299A.45, subdivisions 1, 4; proposing coding for new law in Minnesota Statutes,
chapters 136A; 137; 141; repealing Minnesota Statutes 2004, sections 136A.011;
136A.031, subdivision 1; Minnesota Rules, parts 4815.0100; 4815.0110;
4815.0120; 4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 4830.8110;
4830.8120; 4830.8130; 4830.8140; 4830.8150.
The Senate has repassed said bill in accordance with the
recommendation and report of the Conference Committee. Said House File is herewith returned to the
House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the
House for the appointment of a Conference Committee on the amendments adopted
by the Senate to the following House File:
H. F. No. 1507, A bill for an act relating to health; modifying
provisions for isolation and quarantine of persons exposed to or infected with
a communicable disease; amending Minnesota Statutes 2004, sections 144.419,
subdivision 1; 144.4195, subdivisions 1, 2, 5; Laws 2002, chapter 402, section
21, as amended; proposing coding for new law in Minnesota Statutes, chapter
144.
The Senate has appointed as such committee:
Senators Lourey, McGinn and Dibble.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the
House for the appointment of a Conference Committee on the amendments adopted
by the Senate to the following House File:
H. F. No. 1555, A bill for an act relating to health; modifying
the Minnesota Emergency Health Powers Act; modifying authority of out-of-state
license holders; amending Minnesota Statutes 2004, sections 12.03, subdivision
4d, by adding a subdivision; 12.22, subdivision 2a, by adding a subdivision;
12.31, subdivisions 1, 2; 12.32; 12.34, subdivision 1; 12.381; 12.39; 12.42;
13.3806, subdivision 1a; Laws 2002, chapter 402, section 21, as amended;
proposing coding for new law in Minnesota Statutes, chapter 12.
The Senate has appointed as such committee:
Senators Lourey, McGinn and Dibble.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the
House for the appointment of a Conference Committee on the amendments adopted
by the Senate to the following House File:
H. F. No. 1809, A bill for an act relating to insurance;
regulating agency terminations, coverages, fees, forms, disclosures, reports,
information security, and premiums; amending Minnesota Statutes 2004, sections
60A.14, subdivision 1; 60A.171, subdivision 11; 60A.23, subdivision 8; 60A.966;
60A.969; 62A.136; 62A.31, subdivision 1h; 62A.315; 62A.316; 62E.12; 62E.13,
subdivision 2; 62Q.471; 62Q.65; 65A.29, subdivision 11; 65B.48, subdivision 3;
72A.20, subdivisions 13, 36; 79.211, by adding a subdivision; 79.40; 79.56,
subdivisions 1, 3; 79.62, subdivision 3; 79A.03, subdivision 9; 79A.04,
subdivisions 2, 10; 79A.06, subdivision 5; 79A.12, subdivision 2; 79A.22,
subdivision 11, by adding a subdivision; 123A.21, by adding a subdivision;
176.191, subdivision 3; Laws 1985, chapter 85, section 1; proposing coding for
new law in Minnesota Statutes, chapters 60A; 60D; 65A; 65B; repealing Minnesota
Statutes 2004, sections 61A.072, subdivision 2; 62E.03.
The Senate has appointed as such committee:
Senators Scheid, Pappas and Reiter.
Said House File is herewith returned to the House.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 894, A bill for an act relating to waters; modifying
authority for public waters inventory; modifying public waters work permit and
water use permit provisions; modifying enforcement authority; modifying a
restriction on private land sale in Scott County; amending Minnesota Statutes
2004, sections 103G.201; 103G.2372, subdivision 1; 103G.245, subdivision 4; 103G.251,
subdivision 2; 103G.301, subdivision 2; Laws 2003, First Special Session
chapter 13, section 25.
Patrick E. Flahaven, Secretary of the Senate
Cox moved that the House refuse to concur in the Senate
amendments to H. F. No. 894, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses. The motion
prevailed.
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 874, A bill for an act relating to elections;
providing for approval and purpose of certain voting equipment; appropriating
money; amending Minnesota Statutes 2004, sections 201.022, by adding a
subdivision; 206.80; proposing coding for new law in Minnesota Statutes,
chapter 206.
Patrick E. Flahaven, Secretary of the Senate
Brod moved that the House refuse to concur in the Senate
amendments to H. F. No. 874, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses. The motion
prevailed.
MOTIONS AND RESOLUTIONS
Rukavina moved that the name of Sailer be added as an author on
H. F. No. 169. The
motion prevailed.
Abeler moved that the name of Sailer be added as an author on
H. F. No. 770. The
motion prevailed.
Ruud moved that the name of Sailer be added as an author on
H. F. No. 780. The
motion prevailed.
Cox moved that the name of Sailer be added as an author on
H. F. No. 1391. The
motion prevailed.
Peterson, A., moved that the name of Loeffler be added as an
author on H. F. No. 1798.
The motion prevailed.
Ellison moved that the name of Loeffler be added as an author
on H. F. No. 1836. The
motion prevailed.
Dean moved that the name of Slawik be added as an author on
H. F. No. 1925. The
motion prevailed.
Nelson, P., moved that the names of Olson and Cox be added as
authors on H. F. No. 2118.
The motion prevailed.
Lenczewski moved that the name of Sailer be added as an author
on H. F. No. 2130. The
motion prevailed.
Walker moved that the name of Sailer be added as an author on
H. F. No. 2169. The
motion prevailed.
Severson moved that his name be stricken as an author and the
name of Holberg be added as chief author on H. F. No. 2255. The motion prevailed.
Paymar moved that the name of Charron be added as an author on
H. F. No. 2526. The
motion prevailed.
ADJOURNMENT
Paulsen moved that when the House adjourns today it adjourn
until 9:00 a.m., Saturday, May 21, 2005.
The motion prevailed.
Paulsen moved that the House adjourn. The motion prevailed, and Speaker pro tempore Abrams declared the
House stands adjourned until 9:00 a.m., Saturday, May 21, 2005.
Albin A. Mathiowetz, Chief Clerk, House of Representatives