STANDARDS USED BY COMMISSIONER TO DETERMINE WHETHER TO CONSENT TO A PROPOSED LUMP-SUM SETTLEMENT

Subpart 1. Standards. The commissioner shall consent to a proposed lump-sum settlement only if the conditions of subparts 1a to 6 are met. Subp. 1a. Parties. Under Minnesota Statutes, section 257.60 , when the child is a minor, the child and the commissioner must be made parties to the action. The court must appoint a general guardian or a guardian ad litem to represent the child. Subp. 2. Admission of paternity. The alleged father must admit paternity and either waive blood tests or the results of blood tests indicate a likelihood of more than 92 percent that the alleged father is the biological father of the child. Subp. 3. Comparison of proposed lump-sum settlement to present value of periodic payments. The proposed lump-sum settlement must be equal to or greater than the present value of periodic payments. Subp. 4. Liability for past support and costs. A provision must be made for a partial or full reimbursement consisting of the alleged father's liability for past support and costs. The alleged father's liability for past support and costs includes: A. all or a proportion of the amount of assistance furnished the child during the two years immediately preceding the start of the paternity action under Minnesota Statutes, section 257.66 , subdivision 4; B. expenses of the mother's pregnancy and confinement under Minnesota Statutes, section 257.66 , subdivision 3; and C. all or a proportion of costs and fees detailed under Minnesota Statutes, section 257.69 , subdivision 2. If a reimbursement is to be made through payments to the local IV-D agency, provisions for income withholding shall be included in the proposed lump-sum settlement agreement under Minnesota Statutes, section 518A.53 . Subp. 5. Protection over lump-sum settlement amount. A plan to invest the lump-sum settlement to meet the child's future needs and to prevent rapid depletion of the lump-sum settlement must be made part of the lump-sum settlement. The plan to invest the lump-sum settlement must include: A. an agreement to deposit the lump-sum settlement amount in an interest bearing account with a rate of interest based on a United States Treasury obligation that matures on the date of the child's 18th birthday; B. provisions for making periodic payments to the child until the child is 18 years of age; C. provisions for making the periodic payments under item B to the public agency, if the child receives public assistance or becomes eligible to receive public assistance and rights to support are assigned under Minnesota Statutes, section 256.741 ; D. the name of the depository that will hold and disburse the lump-sum settlement under this subpart; E. the name of the person or agency designated to make decisions on managing the lump-sum settlement account; and F. the amounts charged by the depository for the costs of administering the lump-sum settlement account. Subp. 6. Medical benefits. The lump-sum settlement must provide for maintenance of health and dental insurance for the child under Minnesota Statutes, section 518A.41 .