as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; changing provisions for 1.3 child support; amending Minnesota Statutes 1994, 1.4 sections 518.171, subdivision 1; 518.54, subdivisions 1.5 2 and 6, and by adding a subdivision; 518.551, 1.6 subdivisions 1, 5, 5a, 5b, and by adding a 1.7 subdivision; 518.57, subdivision 2; and 518.64, 1.8 subdivisions 2 and 4. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 1994, section 518.171, 1.11 subdivision 1, is amended to read: 1.12 Subdivision 1. [ORDER.] (a) Every child support order must 1.13 expressly assign or reserve the responsibility for maintaining 1.14 medical insurance for the minor children and the division of 1.15 uninsured medical and dental costs. The court shall order the 1.16 party with the better group dependent health and dental 1.17 insurance coverage or health insurance plan to name the minor 1.18 child as beneficiary on any health and dental insurance plan 1.19 that is available to the party on: 1.20 (i) a group basis; 1.21 (ii) through an employer or union; or 1.22 (iii) through a group health plan governed under the ERISA 1.23 and included within the definitions relating to health plans 1.24 found in section 62A.011, 62A.048, or 62E.06, subdivision 2. 1.25 "Health insurance" or "health insurance coverage" as used in 1.26 this section means coverage that is comparable to or better than 1.27 a number two qualified plan as defined in section 62E.06, 2.1 subdivision 2. "Health insurance" or "health insurance 2.2 coverage" as used in this section does not include medical 2.3 assistance provided under chapter 256, 256B, or 256D. 2.4 (b) If the court finds that dependent health or dental 2.5 insurance is not available to the obligor or obligee on a group 2.6 basis or through an employer or union, or that group insurance 2.7 is not accessible to the obligee, the courtmayshall require 2.8 the obligor (1) to obtain other dependent health or dental 2.9 insurance, (2) to be liable for reasonable and necessary medical 2.10 or dental expenses of the child, or (3) to pay no less than $50 2.11 per month to be applied to the medical and dental expenses of 2.12 the children or to the cost of health insurance dependent 2.13 coverage. 2.14 (c) If the court finds that the available dependent health 2.15 or dental insurance does not pay all the reasonable and 2.16 necessary medical or dental expenses of the child, including any 2.17 existing or anticipated extraordinary medical expenses,and the2.18court finds that the obligor has the financial ability to2.19contribute to the payment of these medical or dental expenses,2.20 the court shall require the obligor to be liable for all or a 2.21 portion of the medical or dental expenses of the child not 2.22 covered by the required health or dental plan. Medical and 2.23 dental expenses include, but are not limited to, necessary 2.24 orthodontia and eye care, including prescription lenses. 2.25 (d)Unless otherwise agreed by the parties and approved by2.26the court, if the court finds that the obligee is not receiving2.27public assistance for the child and has the financial ability to2.28contribute to the cost of medical and dental expenses for the2.29child, including the cost of insurance,The court shall order 2.30 the obligee and obligor to each assume a portion of 2.31 these medical expenses, including health and dental insurance 2.32 premiums and medical and dental expenses not covered by the 2.33 health or dental plans, based on their proportionate share 2.34 oftheir total netthe combined income available for child 2.35 support as defined in section518.54, subdivision 6518.551, 2.36 subdivision 5, paragraph (b). Health and dental insurance 3.1 premiums shall be allocated under this section only if the 3.2 parent naming the child as a beneficiary on a plan must incur 3.3 additional cost to cover the child. 3.4 (e) Payments ordered under this section are subject to 3.5 section 518.611. An obligee who fails to apply payments 3.6 received to the medical expenses of the dependents may be found 3.7 in contempt of this order. 3.8 Sec. 2. Minnesota Statutes 1994, section 518.54, 3.9 subdivision 2, is amended to read: 3.10 Subd. 2. [CHILD.] "Child" means an individual under 18 3.11 years of age, an individual under age 20 who is still attending 3.12 secondary school, as defined in section 123.70, subdivision 9, 3.13 paragraph (a), or engaged full time in a GED program, or an 3.14 individual who, by reason of physical or mental condition, is 3.15 incapable of self-support. A child who ceases to attend 3.16 secondary school prior to graduation and later reenrolls is 3.17 entitled to support upon reenrollment, up to the age of 20. 3.18 Sec. 3. Minnesota Statutes 1994, section 518.54, 3.19 subdivision 6, is amended to read: 3.20 Subd. 6. [INCOME.] (a) "Income" means any form of periodic 3.21 payment to an individual including, but not limited to, wages, 3.22 salaries, payments to an independent contractor, workers' 3.23 compensation, reemployment insurance, annuity, military and 3.24 naval retirement, pension and disability payments. Benefits3.25received under sections 256.72 to 256.87 and chapter 256D are3.26not income under this section., tips, commissions, royalties, 3.27 interest and dividend payments, social security, money from 3.28 trusts, spousal support actually received, rental payments, 3.29 money from self-employment, money from business and 3.30 partnerships, deferred compensation, perquisites or in-kind 3.31 compensation and capital gains in real or personal property to 3.32 the extent that they represent a source of income. 3.33 (b) Income also includes other resources of an individual 3.34 including but not limited to, nonperiodic distributions of 3.35 workers' compensation claims, reemployment claims, personal 3.36 injury settlements, severance pay, bonuses, and lottery or 4.1 gambling winnings. 4.2 (c) Income of members of any branch of the United States 4.3 armed services or national guard includes, but is not limited 4.4 to, amounts representing base pay, basic allowance for quarters, 4.5 supplemental subsistence allowance, cost of living adjustments, 4.6 specialty pay, variable housing allowance, and pay for training 4.7 or other types of drills. Income includes cash benefits 4.8 received from means-tested public assistance including, but not 4.9 limited to, aid to families with dependent children, Minnesota 4.10 family investment plan, supplemental security income, and 4.11 general assistance. Income does not include noncash transfers 4.12 such as food stamps, child care subsidies, housing assistance, 4.13 energy assistance, or medical assistance. Income does not 4.14 include any earned income tax credit amounts. 4.15 (d) Income does not include income of a parent's spouse or 4.16 child support payments received for children for whom support is 4.17 not being determined. 4.18 Sec. 4. Minnesota Statutes 1994, section 518.54, is 4.19 amended by adding a subdivision to read: 4.20 Subd. 13. [FEDERAL POVERTY LEVEL.] "Federal poverty level" 4.21 means the annual federal poverty figures as published by the 4.22 United States Department of Health and Human Services in the 4.23 Federal Register. 4.24 Sec. 5. Minnesota Statutes 1994, section 518.551, 4.25 subdivision 1, is amended to read: 4.26 Subdivision 1. [SCOPE; PAYMENT TO PUBLIC AGENCY.] (a) This 4.27 section applies to all proceedings involving an award of child 4.28 support. There is a rebuttable presumption that the amount of 4.29 child support which would result from applying the guidelines is 4.30 the correct amount of child support to be ordered. 4.31 The court shall consider the following principles when 4.32 determining a child support amount: 4.33 (1) providing child support is a personal parental 4.34 responsibility. Being a parent creates an irrevocable, 4.35 nontransferable lien on the income and assets of that parent. 4.36 The obligation for each parent's share of a child's support 5.1 should not be transferred to the other parent or to others, 5.2 including taxpayers, except under very limited circumstances. 5.3 Every parent, regardless of age or income, has the 5.4 responsibility to provide at least a minimum amount of support; 5.5 and 5.6 (2) maintenance of two separate households means higher per 5.7 person costs, duplication of expenses, and less resource 5.8 sharing. Each parent should be able to keep sufficient income 5.9 to meet the parent's own basic needs. Children of separated, 5.10 divorced, or never married parents are entitled to a standard of 5.11 living sufficient to meet their basic needs. Parents must meet 5.12 the basic needs of their children before they keep income above 5.13 the self support level. A child is entitled to share in the 5.14 standard of living of the child's parents to the extent that 5.15 either parent's standard of living exceeds that necessary to 5.16 provide for the child's basic needs. 5.17 (b) The court shall direct that all payments ordered for 5.18 maintenance and support be made to the public agency responsible 5.19 for child support enforcement so long as the obligee is 5.20 receiving or has applied for public assistance, or has applied 5.21 for child support and maintenance collection services. The 5.22 public authority shall enforce the most current order. If 5.23 income withholding has been implemented on a previous order 5.24 pursuant to sections 518.611 and 518.613, the public authority 5.25 providing enforcement services shall administratively terminate 5.26 the income withholding. The public authority shall notify the 5.27 obligee and obligor of the intent to terminate income 5.28 withholding on the previous order. Five days following this 5.29 notice, the public authority shall issue a notice to the payor 5.30 of funds, informing them of the withholding amount without a 5.31 requirement for a court order unless a hearing has been 5.32 requested by the obligee or obligor. Public authorities 5.33 responsible for child support enforcement may act on behalf of 5.34 other public authorities responsible for child support 5.35 enforcement. This includes the authority to represent the legal 5.36 interests of or execute documents on behalf of the other public 6.1 authority in connection with the establishment, enforcement, and 6.2 collection of child support, maintenance, or medical support, 6.3 and collection on judgments. Amounts received by the public 6.4 agency responsible for child support enforcement greater than 6.5 the amount granted to the obligee shall be remitted to the 6.6 obligee. 6.7 Sec. 6. Minnesota Statutes 1994, section 518.551, 6.8 subdivision 5, is amended to read: 6.9 Subd. 5. [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 6.10 petitioner shall notify the public authority of all proceedings 6.11 for dissolution, legal separation, determination of parentage or 6.12 for the custody of a child, if either party is receiving aid to 6.13 families with dependent children or applies for it subsequent to 6.14 the commencement of the proceeding. The notice must contain the 6.15 full names of the parties to the proceeding, their social 6.16 security account numbers, and their birth dates. After receipt 6.17 of the notice, the court shall set child support as provided in 6.18 this subdivision. The court may order either or both parents 6.19 owing a duty of support to a child of the marriage to pay an 6.20 amount reasonable or necessary for the child's support, without 6.21 regard to marital misconduct. The court shall approve a child 6.22 support stipulation of the parties if each party is represented 6.23 by independent counsel, unless the stipulation does not meet the 6.24 conditions of paragraph(i)(e). In other cases the court shall 6.25 determine and order child support in a specific dollar amount in 6.26 accordance with the guidelines and the other factors set forth 6.27 in paragraph (b) and any departure therefrom. The court may 6.28 also order the obligor to pay child support in the form of a 6.29 percentage share of the obligor's net bonuses, commissions, or 6.30 other forms of compensation, in addition to, or if the obligor 6.31 receives no base pay, in lieu of, an order for a specific dollar 6.32 amount. 6.33 (b) The court shallderive a specific dollar amount for6.34child support by multiplying the obligor's net income by the6.35percentage indicated by the following guidelines:6.36Net Income PerNumber of Children7.1Month of Obligor7.21234567 or7.3more7.4$550 and BelowOrder based on the ability of the7.5obligor to provide support7.6at these income levels, or at higher7.7levels, if the obligor has7.8the earning ability.7.9$551 - 60016%19%22%25%28%30%32%7.10$601 - 65017%21%24%27%29%32%34%7.11$651 - 70018%22%25%28%31%34%36%7.12$701 - 75019%23%27%30%33%36%38%7.13$751 - 80020%24%28%31%35%38%40%7.14$801 - 85021%25%29%33%36%40%42%7.15$851 - 90022%27%31%34%38%41%44%7.16$901 - 95023%28%32%36%40%43%46%7.17$951 - 100024%29%34%38%41%45%48%7.18$1001- 500025%30%35%39%43%47%50%7.19or the amount7.20in effect under7.21paragraph (k)7.22Guidelines for support for an obligor with a monthly income7.23in excess of the income limit currently in effect under7.24paragraph (k) shall be the same dollar amounts as provided for7.25in the guidelines for an obligor with a monthly income equal to7.26the limit in effect.7.27Net Income defined as:7.28 7.29Total monthly7.30income less*(i) Federal Income Tax7.31*(ii) State Income Tax7.32(iii) Social Security7.33Deductions7.34(iv) Reasonable7.35Pension Deductions7.36*Standard8.1Deductions apply-(v) Union Dues8.2use of tax tables(vi) Cost of Dependent Health8.3recommendedInsurance Coverage8.4(vii) Cost of Individual or Group8.5Health/Hospitalization8.6Coverage or an8.7Amount for Actual8.8Medical Expenses8.9(viii) A Child Support or8.10Maintenance Order that is8.11Currently Being Paid.8.12"Net income" does not include:8.13(1) the income of the obligor's spouse, but does include8.14in-kind payments received by the obligor in the course of8.15employment, self-employment, or operation of a business if the8.16payments reduce the obligor's living expenses; or8.17(2) compensation received by a party for employment in8.18excess of a 40-hour work week, provided that:8.19(i) support is nonetheless ordered in an amount at least8.20equal to the guidelines amount based on income not excluded8.21under this clause; and8.22(ii) the party demonstrates, and the court finds, that:8.23(A) the excess employment began after the filing of the8.24petition for dissolution;8.25(B) the excess employment reflects an increase in the work8.26schedule or hours worked over that of the two years immediately8.27preceding the filing of the petition;8.28(C) the excess employment is voluntary and not a condition8.29of employment;8.30(D) the excess employment is in the nature of additional,8.31part-time or overtime employment compensable by the hour or8.32fraction of an hour; and8.33(E) the party's compensation structure has not been changed8.34for the purpose of affecting a support or maintenance obligation.8.35The court shall review the work-related and8.36education-related child care costs paid and shall allocate the9.1costs to each parent in proportion to each parent's net income,9.2as determined under this subdivision, after the transfer of9.3child support and spousal maintenance, unless the allocation9.4would be substantially unfair to either parent. There is a9.5presumption of substantial unfairness if after the sum total of9.6child support, spousal maintenance, and child care costs is9.7subtracted from the noncustodial parent's income, the income is9.8at or below 100 percent of the federal poverty guidelines. The9.9cost of child care for purposes of this paragraph is 75 percent9.10of the actual cost paid for child care, to reflect the9.11approximate value of state and federal tax credits available to9.12the custodial parent. The actual cost paid for child care is9.13the total amount received by the child care provider for the9.14child or children from the obligee or any public agency. The9.15amount allocated for child care expenses is considered child9.16support but is not subject to a cost-of-living adjustment under9.17section 518.641. The amount allocated for child care expenses9.18terminates when the child care costs end.proceed as follows: 9.19 (1) determine the basic support needs of the child. The 9.20 basic support need of the child is the minimum amount that a 9.21 child requires for food, shelter, and clothing. The basic 9.22 support need for one child shall be equal to one-half of the 9.23 federal poverty level for a family of two. The basic support 9.24 need for multiple children shall be as follows: (a) for two 9.25 children, two-thirds of the federal poverty level for a family 9.26 of three; (b) for three children, three-fourths of the federal 9.27 poverty level for a family of four; (c) for four children, 9.28 four-fifths of the federal poverty level for a family of five; 9.29 (d) for five children, five-sixths of the federal poverty level 9.30 for a family of six; (e) for six children, six-sevenths of the 9.31 federal poverty level for a family of seven. The basic support 9.32 need for additional children shall be determined in the same 9.33 manner. The basic support need shall be increased by 15 percent 9.34 if the child or the oldest child in a multiple child household 9.35 is more than 11 years of age. 9.36 The commissioner of human services shall prepare and update 10.1 a table of basic support needs that reflects current federal 10.2 poverty levels by April 1 of each year. 10.3 (2) determine the medical support pursuant to section 10.4 518.171. The medical support amount includes health and dental 10.5 insurance premiums and uncovered medical and dental expenses, 10.6 including deductible amounts and copayments. 10.7 (3) determine the work-related and education-related child 10.8 care costs. The costs of child care for purposes of this 10.9 paragraph is 75 percent of the actual cost paid for child care, 10.10 to reflect the approximate value of state and federal tax 10.11 credits available to the custodial parent. The actual cost paid 10.12 for child care is the total amount received by the child care 10.13 provider for the child or children from the obligee or any 10.14 public agency. 10.15 (4) determine the total basic support needed by adding 10.16 together the basic support need, the medical support amount, and 10.17 the child care costs. 10.18 (5) determine adjusted child support income for each parent. 10.19 Adjusted child support income is equal to gross income minus 10.20 state, federal, FICA, and medicare tax amounts. Federal and 10.21 state tax obligations shall be determined for a single person, 10.22 on a withholding filing basis. The commissioner of human 10.23 services shall prepare a table that reflects the gross income to 10.24 adjusted child support income conversion by April 1 of each year. 10.25 (6) determine the income available for child support for 10.26 each parent by subtracting from gross monthly income any child 10.27 support or maintenance orders that are being paid and each 10.28 parent's household needs allowance. 10.29 Each parent is entitled to a separate household needs 10.30 allowance. A parent's income is available for child support 10.31 only when it exceeds the household needs allowance subject to 10.32 the provisions of clause (12). The household needs allowance is 10.33 based on household size. Household size includes the parent and 10.34 the parent's legal dependents which includes: (1) the parent's 10.35 parent, if claimed as a dependent for income tax purposes; (2) 10.36 natural or adopted children; (3) adult relatives of the parent 11.1 with special needs residing in the parent's household; and (4) 11.2 any other persons who reside with the parent and earns income. 11.3 Household size does not include the child who is the subject of 11.4 the support action, other legal dependents for whom a 11.5 preexisting support order has been established, or other 11.6 children who are not the biological or adopted children of the 11.7 parent. 11.8 For purposes of this subdivision, the household needs 11.9 allowance is equal to the annually updated federal poverty level 11.10 for a household of the same size plus $100 for every adult, 11.11 including the parent, who works and provides income to the 11.12 household divided by the number of adult income earners in the 11.13 household. $100 shall not be added to the household support 11.14 reserve of a parent who has income imputed pursuant to 11.15 subdivision 5b, paragraph (d). 11.16 The commissioner of human services shall prepare and update 11.17 a table of household needs allowances that reflects the current 11.18 federal poverty levels by April 1 of each year. 11.19 (7) determine each parent's proportionate share of the 11.20 combined income by dividing each parent's income available for 11.21 child support by the parents' combined income available for 11.22 child support. 11.23 (8) allocate the total basic support amount to each parent 11.24 in proportion to each parent's share of the combined income 11.25 available for child support. If the parent's income available 11.26 for child support is less than the parent's proportionate share 11.27 of the basic support amount, the parent's obligation for the 11.28 basic support amount shall be the parent's income available for 11.29 child support. If the obligor pays the dependent health care 11.30 coverage, the cost of the coverage that is attributable to the 11.31 child shall be subtracted from the obligor's share of the total 11.32 basic support amount as a credit for direct payment. 11.33 (9) determine the amount of the standard of living 11.34 adjustment. The income available for the standard of living 11.35 adjustment is the excess income remaining after deducting the 11.36 parents' proportionate shares of the total basic support 12.1 amount. The income available for the standard of living 12.2 adjustment is multiplied by the percentage from the following 12.3 table which corresponds to the number of children for whom 12.4 support is being determined. 12.5 Standard of Living Number of Children 12.6 Adjusted Income 12.7 Per Month 12.8 1 2 3 4 5 6 or more 12.9 $1 to $12,500 19% 23% 27% 32% 35% 39% 12.10 the court may order additional child support when the 12.11 parent's income exceeds the income limit, taking into 12.12 consideration the standard of living the child would have had if 12.13 the child's parents lived together including, but not limited 12.14 to, the amounts that would have been expended on private 12.15 schooling, music, sports, camps, vacations, and savings for 12.16 post-secondary education. 12.17 (10) determine the monthly child support obligation as the 12.18 sum of the basic support needs, medical support, child care 12.19 costs, the standard of living adjustment, and any additional 12.20 amounts ordered pursuant to paragraph (c). The court shall 12.21 order the obligor to pay to the obligee the obligor's 12.22 proportionate share of the total monthly child support 12.23 obligation. All remedies available for the collection and 12.24 enforcement of child support apply to the total monthly child 12.25 support obligation except the child care costs and the medical 12.26 support amounts are not subject to the cost of living adjustment 12.27 under section 518.641. 12.28 (11) order the parent to pay a minimum child support 12.29 obligation of $50 per month if the court determines that a 12.30 parent's income is less than the parents' household needs 12.31 allowance, unless that parent's sole income is from aid to 12.32 families with dependent children, supplemental security income, 12.33 general assistance, or other means-tested public assistance 12.34 benefit. 12.35 (12) calculate, in situations of court-ordered split 12.36 custody, each parent's child support obligation for the child or 13.1 children in the custody of the other parent, in accordance with 13.2 this subdivision. The parent owing the larger obligation shall 13.3 pay the difference to the parent owing the smaller obligation. 13.4 (c) The guidelines in this subdivision assume that the 13.5 obligor may spend time with the child. No reduction in child 13.6 support shall be ordered unless the child spends at least 45 13.7 percent of their time with the obligor. In cases in which the 13.8 court-ordered visitation or physical custody reaches or exceeds 13.9 45 percent, the obligor's obligation shall be reduced to reflect 13.10 the obligee's decreased food-related expenditures unless the 13.11 court determines that this reduction is substantially unfair to 13.12 the obligee. There is a presumption of substantial unfairness 13.13 if the reduced child support obligation plus the obligee's gross 13.14 income is less than the poverty level for a household of the 13.15 same size as the obligee's household. Food-related expenditures 13.16 are presumed to be equivalent to the moderate cost food plan 13.17 published by the United States Department of Agriculture in the 13.18 Family Economics Review. 13.19 (d) The commissioner of human services shall prepare and 13.20 make available instructional materials and a work sheet for the 13.21 determination of child support pursuant to this subdivision. 13.22 The rulemaking provisions of chapter 14 shall not apply to the 13.23 preparation of the work sheet. The court shall attach a copy of 13.24 the work sheet to the order. 13.25(c)(e) In addition to the child support guidelines, the 13.26 court shall take into consideration the following factors in 13.27 setting or modifying child support or in determining whether to 13.28 deviate from the guidelines: 13.29(1) all earnings, income, and resources of the parents,13.30including real and personal property, but excluding income from13.31excess employment of the obligor or obligee that meets the13.32criteria of paragraph (b), clause (2)(ii);13.33(2) the financial needs and resources, physical and13.34emotional condition, and educational needs of the child or13.35children to be supported;13.36(3) the standards of living the child would have enjoyed14.1had the marriage not been dissolved, but recognizing that the14.2parents now have separate households;14.3(4) which parent receives the income taxation dependency14.4exemption and what financial benefit the parent receives from14.5it;14.6(5) the parents' debts as provided in paragraph (d); and14.7(6) the obligor's receipt of assistance under sections14.8256.72 to 256.87 or 256B.01 to 256B.40.14.9(d) In establishing or modifying a support obligation, the14.10court may consider debts owed to private creditors, but only if:14.11(1) the right to support has not been assigned under14.12section 256.74;14.13(2) the court determines that the debt was reasonably14.14incurred for necessary support of the child or parent or for the14.15necessary generation of income. If the debt was incurred for14.16the necessary generation of income, the court shall consider14.17only the amount of debt that is essential to the continuing14.18generation of income; and14.19(3) the party requesting a departure produces a sworn14.20schedule of the debts, with supporting documentation, showing14.21goods or services purchased, the recipient of them, the amount14.22of the original debt, the outstanding balance, the monthly14.23payment, and the number of months until the debt will be fully14.24paid.14.25(e) Any schedule prepared under paragraph (d), clause (3),14.26shall contain a statement that the debt will be fully paid after14.27the number of months shown in the schedule, barring emergencies14.28beyond the party's control.14.29(f) Any further departure below the guidelines that is14.30based on a consideration of debts owed to private creditors14.31shall not exceed 18 months in duration, after which the support14.32shall increase automatically to the level ordered by the court.14.33Nothing in this section shall be construed to prohibit one or14.34more step increases in support to reflect debt retirement during14.35the 18-month period.14.36(g) If payment of debt is ordered pursuant to this section,15.1the payment shall be ordered to be in the nature of child15.2support.15.3 (1) extraordinary medical or dental expenses of the child; 15.4 (2) special needs of the child, including special housing 15.5 needs and special education needs; and 15.6 (3) visitation related expenses incurred because the 15.7 parents live more than 250 miles from each other. 15.8 (f) In addition to the child support guidelines, the court 15.9 may take into consideration the following factors in setting or 15.10 modifying child support or in determining whether to deviate 15.11 from the guidelines: 15.12 (1) the potential income from the assets of the parent 15.13 including, but not limited to, any recreational vehicles, boats, 15.14 vacation homes, and real property based upon the net market 15.15 value of each asset at the average ten-year United States 15.16 Treasury constant maturity rate for the previous calendar year; 15.17 and 15.18 (2) other factors that the court considers to be necessary 15.19 in the interests of justice. 15.20(h)(g) Nothing shall preclude the court from receiving 15.21 evidence on the above factors to determine if the guidelines 15.22 should be exceeded or modified in a particular case. 15.23(i) The guidelines in this subdivision are a rebuttable15.24presumption and shall be used in all cases when establishing or15.25modifying child support. If the court does not deviate from the15.26guidelines,(h) The court shall make written findingsconcerning15.27the amount of the obligor's income used as the basis for the15.28guidelines calculation and any other significant evidentiary15.29factors affecting the determination of child supportof the 15.30 calculation of child support pursuant to this subdivision. If 15.31 the court deviates from the guidelines, the court shall make 15.32 written findings giving the amount of support calculated under 15.33 the guidelines, the reasons for the deviation, and shall 15.34 specifically address the criteria in paragraph (b) and how the 15.35 deviation serves the best interest of the child. The provisions 15.36 of this paragraph apply whether or not the parties are each 16.1 represented by independent counsel and have entered into a 16.2 written agreement. The court shall review stipulations 16.3 presented to it for conformity to the guidelines and the court 16.4 is not required to conduct a hearing, but the parties shall 16.5 provide the documentation of earnings required under subdivision 16.6 5b. 16.7(j)(i) If the child support payments are assigned to the 16.8 public agency under section 256.74, the court may not deviate 16.9 downward from the child support guidelines unless the court 16.10 specifically finds that the failure to deviate downward would 16.11 impose an extreme hardship on the obligor. 16.12(k)(j) The dollar amount of the income limit for 16.13 application of the guidelines must be adjusted on July 1 of 16.14 every even-numbered year to reflect cost-of-living changes. The 16.15 supreme court shall select the index for the adjustment from the 16.16 indices listed in section 518.641. The state court 16.17 administrator shall make the changes in the dollar amount 16.18 required by this paragraph available to courts and the public on 16.19 or before April 30 of the year in which the amount is to change. 16.20 Sec. 7. Minnesota Statutes 1994, section 518.551, 16.21 subdivision 5a, is amended to read: 16.22 Subd. 5a. [ORDER FOR COMMUNITY SERVICES.] If the court 16.23 finds that the obligorearns $400 or less per monthhas no 16.24 income available for child support and does not have the ability 16.25 toprovide support based on the guidelines and factors under16.26subdivision 5pay the $50 minimum support amount pursuant to 16.27 subdivision 5, paragraph (b), clause (12), the court may order 16.28 the obligor to perform community services to fulfill the 16.29 obligor's support obligation. In ordering community services 16.30 under this subdivision, the court shall consider whether the 16.31 obligor has the physical capability of performing community 16.32 services, and shall order community services that are 16.33 appropriate for the obligor's abilities. 16.34 Sec. 8. Minnesota Statutes 1994, section 518.551, 16.35 subdivision 5b, is amended to read: 16.36 Subd. 5b. [DETERMINATION OF INCOME.] (a) The parties shall 17.1 timely serve and file documentation of earnings and income.When17.2there is a prehearing conference, the court must receive the17.3documentation of income at least ten days prior to the17.4prehearing conference. Documentation of earnings and income17.5also includes, but isEach parent shall submit a financial 17.6 affidavit to the court in each case. Each parent shall sign a 17.7 financial affidavit under penalties of perjury. Financial 17.8 affidavits shall include supporting documentation including, but 17.9 not limited to, pay stubs for the most recent three months, 17.10 employer statements, or statement of receipts and expenses if 17.11 self-employed.Documentation of earnings and income also17.12includesCopies of each parent's most recent federal tax 17.13 returns, including W-2 forms, 1099 forms, reemployment insurance 17.14 statements, workers' compensation statements, and all other 17.15 documents evidencing income as received that provide 17.16 verification of income over a longer period.shall be attached 17.17 to the financial affidavit. When there is a prehearing 17.18 conference, the court must receive the documentation of income 17.19 at least ten days prior to the prehearing conference. 17.20 The financial affidavit shall be on a form prepared by the 17.21 commissioner of human services. The rulemaking provisions of 17.22 chapter 14 do not apply to the preparation of this form. 17.23 (b) In addition to the requirements of paragraph (a), at 17.24 any time after an action seeking child support has been 17.25 commenced or when a child support order is in effect, a party or 17.26 the public authority may require the other party to give them a 17.27 copy of the party's most recent federal tax returns that were 17.28 filed with the Internal Revenue Service. The party shall 17.29 provide a copy of the tax returns within 30 days of receipt of 17.30 the request unless the request is not made in good faith. A 17.31 request under this paragraph may not be made more than once 17.32 every two years, in the absence of good cause. 17.33 (c) If a parent under the jurisdiction of the court does 17.34 not appear at a court hearing after proper notice of the time 17.35 and place of the hearing, the court shall set income for that 17.36 parent based on credible evidence before the court or in 18.1 accordance with paragraph (d). Credible evidence may include 18.2 documentation of current or recent income, testimony of the 18.3 other parent concerning recent earnings and income levels, and 18.4 the parent's wage reports filed with the Minnesota department of 18.5 economic security under section 268.121. 18.6 (d) If the court finds that a parent is voluntarily 18.7 unemployed or underemployed, child support shall be calculated 18.8 based on a determination of imputed income. A parent is not 18.9 considered voluntarily unemployed or underemployed upon a 18.10 showing by the parent that the unemployment or underemployment: 18.11 (1) is temporary and will ultimately lead to an increase in 18.12 income; or (2) represents a bona fide career change that 18.13 outweighs the adverse effect of that parent's diminished income 18.14 on the child. Imputed income means the estimated earning 18.15 ability of a parent based on the parent's prior earnings 18.16 history, education, and job skills, and on availability of jobs 18.17 within the community for an individual with the parent's 18.18 qualifications. Income may be imputed to a parent who is not 18.19 employed for wages but is a full-time caretaker of children. 18.20 Whenever income is imputed to a full-time caretaker of children, 18.21 if that parent would be required to incur child care expenses if 18.22 employed at the imputed level, then the imputed income shall be 18.23 reduced by the estimated cost of the child care expenses. If 18.24 the court is unable to determine or estimate the earning ability 18.25 of a parent, the courtmayshall calculate child support based 18.26 on full-time employment of 40 hours per week at the federal 18.27 minimum wage or the Minnesota minimum wage, whichever is 18.28 higher. If a parent is a recipient of public assistance under 18.29 sections 256.72 to 256.87 or chapter 256D, or is physically or 18.30 mentally incapacitated, it shall be presumed that the parent is 18.31 not voluntarily unemployed or underemployed. 18.32 (e) Compensation received by a party for employment in 18.33 excess of a 40-hour week shall be included as income as follows: 18.34 (i) child support shall be ordered in an amount based on 18.35 the income received for the first 40 hours of employment. The 18.36 40 hours may be from one full-time job or two or more part-time 19.1 jobs; 19.2 (ii) income received by a party for hours worked in excess 19.3 of 40 hours and equal to or less than 50 hours per week shall be 19.4 included as income unless: 19.5 (A) the party demonstrates, and the court finds, that: 19.6 (1) the excess employment began after the filing of the 19.7 action; 19.8 (2) the excess employment reflects an increase in the work 19.9 schedule or hours worked over that of the two years immediately 19.10 preceding the filing of the action; 19.11 (3) the excess employment is in the nature of additional, 19.12 part-time, or overtime employment compensable by the hour or 19.13 fraction of an hour; and 19.14 (4) the party's compensation structure has not been changed 19.15 for the purpose of affecting a support or maintenance obligation. 19.16 Income does not include compensation received by a party in 19.17 excess of a 50-hour week. The court or the public authority, in 19.18 cases in which the public authority is a party or provides 19.19 services to a party, shall make reasonable efforts to verify the 19.20 overtime income with the party's employer. In the event the 19.21 overtime income is no longer available to a party, the party may 19.22 request a modification. The child support order may be modified 19.23 to the amount of the child support based on a 40-hour week. 19.24 (f) Income from self-employment is equal to gross receipts 19.25 minus ordinary and necessary expenses. Ordinary and necessary 19.26 expenses do not include amounts allowed by the Internal Revenue 19.27 Service for accelerated depreciation expenses or investment tax 19.28 credits or any other business expenses determined by the court 19.29 to be inappropriate for determining income for purposes of child 19.30 support. The person seeking to deduct an expense, including 19.31 depreciation, has the burden of proving that the expense is 19.32 ordinary and necessary. 19.33 Income available for child support may be different from 19.34 taxable income. 19.35 Sec. 9. Minnesota Statutes 1994, section 518.551, is 19.36 amended by adding a subdivision to read: 20.1 Subd. 13. [APPLICATION OF CHILD SUPPORT GUIDELINES.] The 20.2 court shall apply the child support guidelines in this section 20.3 that are in effect at the time of the decision or hearing, 20.4 regardless of the guidelines in effect at the time the action 20.5 was commenced. 20.6 Sec. 10. Minnesota Statutes 1994, section 518.57, 20.7 subdivision 2, is amended to read: 20.8 Subd. 2. [SEASONAL INCOME.] The court shall establish the 20.9 annual support of an obligor with a seasonal income so that the 20.10 obligor makeseitherthe same monthly payments throughout the 20.11 yearor monthly payments that reflect variations in income. 20.12 Sec. 11. Minnesota Statutes 1994, section 518.64, 20.13 subdivision 2, is amended to read: 20.14 Subd. 2. [MODIFICATION.] (a) The terms of an order 20.15 respecting maintenance or support may be modified upon a showing 20.16 of one or more of the following: (1) substantially increased or 20.17 decreased earnings of a party; (2) substantially increased or 20.18 decreased need of a party or the child or children that are the 20.19 subject of these proceedings; (3) receipt of assistance under 20.20 sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in 20.21 the cost of living for either party as measured by the federal 20.22 bureau of statistics, any of which makes the terms unreasonable 20.23 and unfair; (5) extraordinary medical expenses of the child not 20.24 provided for under section 518.171; or (6) the addition of 20.25 work-related or education-related child care expenses of the 20.26 obligee or a substantial increase or decrease in existing 20.27 work-related or education-related child care expenses. 20.28 It is presumed that there has been a substantial change in 20.29 circumstances under clause (1), (2), or (4) and the terms of a 20.30 current support order shall be rebuttably presumed to be 20.31 unreasonable and unfair if the application of the child support 20.32 guidelines in section 518.551, subdivision 5, to the current 20.33 circumstances of the parties results in a calculated court order 20.34 that is at least 20 percent and at least $50 per month higher or 20.35 lower than the current support order. The amount allocated for 20.36 child care expenses terminates when the child care costs end. 21.1 (b) On a motion for modification of maintenance, including 21.2 a motion for the extension of the duration of a maintenance 21.3 award, the court shall apply, in addition to all other relevant 21.4 factors, the factors for an award of maintenance under section 21.5 518.552 that exist at the time of the motion. On a motion for 21.6 modification of support, the court: 21.7 (1) shall apply section 518.551, subdivision 5, and shall 21.8 not consider the financial circumstances of each party's spouse, 21.9 if any; and 21.10 (2) shall not consider compensation received by a party for 21.11 employment in excess of a 40-hour work week, provided that the 21.12 party demonstrates, and the court finds, that: 21.13 (i) the excess employment began after entry of the existing 21.14 support order; 21.15 (ii) the excess employment is voluntary and not a condition 21.16 of employment; 21.17 (iii) the excess employment is in the nature of additional, 21.18 part-time employment, or overtime employment compensable by the 21.19 hour or fractions of an hour; 21.20 (iv) the party's compensation structure has not been 21.21 changed for the purpose of affecting a support or maintenance 21.22 obligation; 21.23 (v) in the case of an obligor, current child support 21.24 payments are at least equal to the guidelines amount based on 21.25 income not excluded under this clause; and 21.26 (vi) in the case of an obligor who is in arrears in child 21.27 support payments to the obligee, any net income from excess 21.28 employment must be used to pay the arrearages until the 21.29 arrearages are paid in full. 21.30 (c) A modification of support or maintenance may be made 21.31 retroactive only with respect to any period during which the 21.32 petitioning party has pending a motion for modification but only 21.33 from the date of service of notice of the motion on the 21.34 responding party and on the public authority if public 21.35 assistance is being furnished or the county attorney is the 21.36 attorney of record. However, modification may be applied to an 22.1 earlier period if the court makes express findings that the 22.2 party seeking modification was precluded from serving a motion 22.3 by reason of a significant physical or mental disability, a 22.4 material misrepresentation of another party, or fraud upon the 22.5 court and that the party seeking modification, when no longer 22.6 precluded, promptly served a motion. 22.7 (d) Except for an award of the right of occupancy of the 22.8 homestead, provided in section 518.63, all divisions of real and 22.9 personal property provided by section 518.58 shall be final, and 22.10 may be revoked or modified only where the court finds the 22.11 existence of conditions that justify reopening a judgment under 22.12 the laws of this state, including motions under section 518.145, 22.13 subdivision 2. The court may impose a lien or charge on the 22.14 divided property at any time while the property, or subsequently 22.15 acquired property, is owned by the parties or either of them, 22.16 for the payment of maintenance or support money, or may 22.17 sequester the property as is provided by section 518.24. 22.18 (e) The court need not hold an evidentiary hearing on a 22.19 motion for modification of maintenance or support. 22.20 (f) Section 518.14 shall govern the award of attorney fees 22.21 for motions brought under this subdivision. 22.22 Sec. 12. Minnesota Statutes 1994, section 518.64, 22.23 subdivision 4, is amended to read: 22.24 Subd. 4. Unless otherwise agreed in writing or expressly 22.25 provided in the order, provisions for the support of a child are 22.26 not terminatedby emancipation of the child but notby the death 22.27 of a parent obligated to support the child. When a parent 22.28 obligated to pay support dies, the amount of support may be 22.29 modified, revoked, or commuted to a lump sum payment, to the 22.30 extent just and appropriate in the circumstances. 22.31 Sec. 13. [EFFECTIVE DATE.] 22.32 Sections 1 to 12 are effective July 1, 1996, and apply to 22.33 all child support orders established or modified on or after 22.34 July 1, 1996.