BILL ANALYSIS Ó AB 1727 Page 1 Date of Hearing: March 20, 2012 ASSEMBLY COMMITTEE ON JUDICIARY Mike Feuer, Chair AB 1727 (Silva) - As Amended: March 15, 2012 PROPOSED CONSENT SUBJECT : SUPPORT ORDERS: EX PARTE TERMINATION OF WAGE ASSIGNMENT KEY ISSUE : SHOULD A SPOUSAL OR CHILD SUPPORT OBLIGOR, WHOSE SUPPORT IS COLLECTED THROUGH A WAGE ASSIGNMENT, BE PERMITTED TO SEEK EX PARTE RELIEF TERMINATING THE WAGE ASSIGNMENT FOR LIMITED REASONS, INCLUDING THE DEATH OF THE SUPPORTED PARTY, WHETHER THE FORMER SPOUSE OR THE CHILD, OR THE EMANCIPATION OF THE CHILD? FISCAL EFFECT : As currently in print this bill is keyed non-fiscal. SYNOPSIS This non-controversial bill, sponsored by the Conference of California Bar Associations, provides an expedited method of terminating a wage assignment for child or spousal support if the support obligee - the spouse in the case of spousal support and the child in the case of child support - has died, the child has emancipated, there is no longer a current support order, or for other limited and specified reasons. Current law allows the obligor to file a motion to terminate the wage assignment in these situations, but that particular code provision does not explicitly provide for an ex parte request to terminate the wage assignment, which would shorten the time needed to obtain the order and terminate the wage assignment. While some courts allow ex parte applications in these instances, according to the sponsor, others do not. This bill rectifies this by allowing for ex parte requests for relief of support wage assignments in these specified and limited situations. There is no known opposition. SUMMARY : Allows a support obligor to seek ex parte relief to terminate a wage assignment for support if past due support has been paid in full, including any interest due, and if any of the following conditions exist: AB 1727 Page 2 1)With respect to spousal support, the death or remarriage of the spouse; 2)With respect to child support, the death or emancipation of the child; 3)There is no longer a current support order; 4)A previous stay of wage assignment was improperly terminated, as specified; or 5)The employer or the child support agency has been unable to deliver the support payments for at least six months due to the obligee's failure to notify them of his or her change of address. EXISTING LAW : 1)Authorizes the court, in a judgment of dissolution of marriage or legal separation, to order one party to pay spousal support to the other party in an amount and for a duration that the court deems just and reasonable based on factors, including the standard of living established during the marriage. (Family Code Section 4330. All further statutory references are to this code unless otherwise noted.) 2)Imposes on parents a duty to support an unmarried child who has not attained the age of 18 years. For a child who has attained the age of 18 years, but is still a full-time high school student and is not self-supporting, the duty of support is extended until the time the child completes the 12th grade or attains the age of 19 years, whichever occurs first. (Section 3901.) 3)Except as otherwise agreed by the parties in writing, the obligation of a party subject to a spousal order terminates upon the death of either party or the remarriage of the supported party. (Section 4337.) 4)Provides that an order modifying or terminating a support order may be made retroactive to the date of the filing of the notice of motion or order to show cause to modify or terminate, or to any subsequent date, as provided. (Section 3653.) 5)Provides that the court shall terminate a wage assignment for collection of child or spousal support if all past due support has been paid in full and one of the following has occurred: (a) For spousal support, death or remarriage of the supported AB 1727 Page 3 spouse; (b) for child support, death or emancipation of the supported child; (c) there is good cause to terminate the assignment order, as specified; (d) there is no longer a current support order; (e) a previous stay of the wage assignment was improperly terminated, as specified; or (f) the employer or the child support agency has been unable to deliver the support payments for at least six months due to the obligee's failure to notify them of his or her change of address. (Section 5240.) 6)Governs rules with respect to civil ex parte applications, including that the requesting party must submit the request in writing and must notify all parties no later than 10:00 a.m. on the court day before the ex parte appearance, absent a showing of exceptional circumstances that justify a shorter time for notice. (Cal. R. Ct., Rule 3.1200 et seq.) COMMENTS : This non-controversial bill, sponsored by the Conference of California Bar Associations, provides an expedited method of terminating a wage assignment for child or spousal support if the support obligee - the spouse in the case of spousal support and the child in the case of child support - has died, the child has emancipated, there is no longer a current support order, the termination of a previous wage assignment was improperly stayed, or the obligated party has failed to update their address and has not been located for at least six months. Under current law, a support order terminates, by operation of law, on death of the supported spouse or child, or emancipation of the child. If a wage assignment is in place, however, the wage assignment must still be terminated or the obligor's employer will continue deducting the obligor's wages and paying the support, even if the underlying support obligation has terminated as a matter of law. Current law allows the obligor to file a motion to terminate the wage assignment, but that particular section does not explicitly provide for an ex parte request to terminate the wage assignment, which would shorten the time needed to obtain the order and terminate the wage assignment. While some courts allow ex parte applications in these instances, according to the sponsor, others do not. In support of the bill, the author writes: AB 1727 Page 4 AB 1727 is needed because it provides the obligor an efficient and less costly way to terminate support when the obligee/supported spouse has passed away. Although the Family Code already provides that the death of the obligee/supported spouse terminates a support order, an employer cannot cease taking funds from an employee pursuant to an assignment order until the employer has received a termination order from the court. Even though courts may allow a motion to terminate an assignment ex parte, some courts will not allow an ex parte proceeding because the Family Code does not specifically allow it. Currently, the code only specifically permits termination orders to be issued "upon filing and service of a motion and a notice of motion by the obligor/supporting spouse." This process can take weeks or months, during which time more money can be taken from the obligor/supporting spouse's check, and perhaps even transferred automatically to the bank account of the deceased spouse, from which it is difficult or impossible to get it back. Existing law does not take into account the situation where the obligee spouse has passed away, thereby obviating the necessity for a noticed motion, as well as the emergency situation where money is being taken from the obligor's paycheck and electronically transferred to the obligee/supported spouse's bank account, in which case the obligor may never get that money back. Even an ex parte order still requires that notice be given to the other party. California Rules of Court require that the person requesting the immediate relief notify all parties no later than 10:00 a.m. on the court day before the ex parte appearance, absent a showing of exceptional circumstances that justify a shorter time for notice. The exceptional circumstances could be, for example the death of the supported party. It is important to keep in mind that this bill simply appropriately allows a court to terminate, ex parte, a wage assignment if certain events have occurred. This bill does not in any way affect the underlying support obligation that gave rise to the wage assignment. That order remains in effect AB 1727 Page 5 unless changed or terminated by the court or by operation of law. REGISTERED SUPPORT / OPPOSITION : Support Conference of California Bar Associations (sponsor) Opposition None on file Analysis Prepared by : Leora Gershenzon / JUD. / (916) 319-2334