S.F. No. 500 Summary

• Redefines "arrears" in child support law to reference the definition in section 518A.26, subdivision 3, rather than defining it as "amounts owed under a support order that are past due."

• Establishes a $15 monthly service fee for obligors using income withholding-only services and a $25 application fee for reapplying for services (unless recipient of public assistance).

• Requires employers or payors of funds to withhold an additional 20 percent of monthly child support obligation for arrears payment, unless the court has ordered a specific monthly payback amount.

• Allows income withholding to continue after a support order terminates if arrears exist, at an amount equal to the support order plus an additional 20 percent of the monthly obligation until all arrears are paid.

• Permits public authority to close child support cases when arrearage is under $500 or deemed unenforceable after three years of no collections and exhausted remedies, with required notice procedures to both parties.