BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 610


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          610 (Jones-Sawyer) - As Amended April 8, 2015


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          Urgency:  Yes State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This urgency bill would extend the sunset date from July 1,  
          2015, to January 1, 2020, of the pilot program to suspend the  
          obligation of a noncustodial parent, in the state child support  
          system, to pay child support, while that parent is incarcerated  








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          or involuntarily institutionalized, unless that parent otherwise  
          has the means to pay support. 


          In addition, the bill would expand the pilot to include all  
          child support cases and would permit the local child support  
          agency to administratively adjust the arrears, provided no party  
          objects.  The bill would also require an evaluation of the  
          program be performed, with a report to the legislature. 


          FISCAL EFFECT:


          1)One-time minor costs of approximately $100,000 to accommodate  
            changes to the Child Support Enforcement (CSE) System.  It is  
            anticipated that this one-time cost is absorbable within  
            existing resources.

          2)One-time minor and absorbable costs to Department of Child  
            Support Services (DCSS) to develop new forms and prepare the  
            evaluation report.

          3)On-going minor and absorbable costs to the (DCSS) for  
            increased administrative workload to send notifications, file  
            motions, and serve copies.
          4)No significant costs to the courts.  This bill allows an  
            administrative modification of support awards which  
            potentially reduces the workload on courts. Costs to  
            create/modify forms are minor and absorbable.


          5)The suspension of the child support orders for those who are  
            incarcerated is not expected to result in increased revenues  
            and collections; although it may limit the accumulation of  
            child support arrears. The estimated impact on child support  
            arrears will likely have a negligible impact on federal  
            performance incentives earned. 









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          COMMENTS:


          1)Purpose. The existing pilot program has not proved very  
            successful at preventing the build-up of uncollectible  
            arrears.  Data from DCSS show that very few noncustodial  
            parents sought to have their arrears suspended once out of  
            prison - just 178 petitions were filed - and of those only 14  
            (or 8 percent) were granted under the pilot program. That  
            program is scheduled to sunset on July 1st of this year.  This  
            bill seeks to extend and expand that pilot to apply to all  
            cases, not just cases within the state child support program,  
            and creates a process that allows local child support agencies  
            to administratively adjust any arrears in the hopes that the  
            expanded pilot program can be more successful at helping  
            reducing uncollectible child support and in helping  
            noncustodial parents better support their children.





          2)Background. When noncustodial parents are incarcerated, unless  
            they seek a modification of their child support order, their  
            support obligation continues unabated, and interest accrues on  
            the unpaid debt.  According to a study of California's child  
            support caseload by the Urban Institute, only about half of  
            incarcerated child support obligors had reported incomes in  
            the two years prior to their incarceration and, of those,  
            their median annual net income was just under $3,000.  Their  
            median arrears were $14,564.  Researchers have discovered that  
            the build-up of uncollectible child support while an obligor  
            is incarcerated has implications not just for the obligor, but  
            also for the state and the family.  A just-released obligor,  
            with a large support debt and few employment prospects, is far  
            more likely to avoid the formal economy and, therefore, pay no  
            child support and have little or no contact with his or her  
            children.  In addition, the failure to collect ongoing child  








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            support will result in the state receiving less incentive  
            funding from the federal government.  Finally, recidivism  
            rates appear to increase for obligors with large child support  
            debts.
          3)Federal Incentive Funding. CDSS earns federal incentive  
            funding based on California's relative performance regarding  
            child support collections as compared to other states and  
            territories. To the extent that suspending child support  
            orders encourages incarcerated noncustodial parents to resume  
            paying child support upon their release, it could result in an  
            increase in the amount of child support that is successfully  
            collected. 

            Furthermore, the accumulation of past due child support, along  
            with the reduction in current support payments reduces the  
            state's performance on federal child support measures This  
            bill, by suspending child support orders and reducing the  
            amount of past due child support, could increase California's  
            performance thereby increasing the amount of federal incentive  
            funding for DCSS.  However, based on the pilot program, the  
            estimated impact on federal performance incentives is  
            negligible.  

          4)Prior Legislation. 
             a)   SB 1355 (Wright), Chap. 495, Stats. 2010, created a  
               pilot program to suspend child support when an obligor is  
               incarcerated, which expires on July 1, 2015.



             b)   AB 862 (Bass), 2005, would have required that  
               information and other materials regarding child support  
               modification be distributed to any parent with minor  
               children, while the parent is in the custody of CDCR.  This  
               bill was vetoed.
             c)   AB 2245 (Wright), 2002, would have, among other things,  
               required that a child support order be suspended, including  
               any arrearage, interest, or penalty that may accrue, if the  
               support obligor is or was incarcerated in a penal  








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               institution for more than 29 consecutive days, and is  
               without the resources to pay child support.  That bill  
               failed passage in the Assembly Judiciary Committee.


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081