BILL ANALYSIS Ó AB 610 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 610 (Jones-Sawyer) As Amended August 31, 2015 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: |69-4 |(May 7, 2015) |SENATE: |40-0 |(September 3, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: JUD. SUMMARY: Reinstates, effective immediately as urgency legislation until January 1, 2020, a pilot program to suspend the obligation to pay child support while an obligor is incarcerated or involuntarily institutionalized, except as specified. Specifically, this bill: 1)Provides, until January 1, 2020, that the obligation to pay child support, as defined, is suspended for the period of time in which the obligor is incarcerated or involuntarily institutionalized, as defined, for any period exceeding 90 consecutive days, unless the obligor has the means to pay support while incarcerated or institutionalized or was incarcerated for any domestic violence offense or as a result of failure to pay child support. Takes effect immediately as urgency legislation. Provides that the suspension applies to all orders issued or modified after the enactment of this provision. AB 610 Page 2 2)Provides that the suspension only applies during the period of incarceration or institutionalization and automatically resumes to the amount of the pre-suspension order on the first day of the first full month after release. 3)Allows a local child support agency (LCSA) to administratively adjust the order based on the suspension during incarceration or institutionalization if: a) The LCSA verifies the arrears and interest that accrued during the period of incarceration or institutionalization; b) the LCSA notifies the obligor and the obligee, in writing, of the possible adjustment and neither objects within 30 days; and c) the LCSA confirms that the obligor did not have the means to pay child support while incarcerated and was not incarcerated for domestic violence or for failure to pay child support. 4)Prohibits the LCSA, if either the child support obligor or the oblige objects, from administratively adjusting the arrears and requires the LCSA instead to file a motion to adjust the arrears with the court and to serve copies of the motion on the parties. 5)Requires, by January 1, 2016, the Department of Child Support Services (DCSS), in consultation with the Judicial Council, to develop forms to implement the administrative adjustment process. 6)Requires DCSS and the Judicial Council to conduct an evaluation of the effectiveness of the administrative adjustment process and to report the results of the review, as well as any recommended changes, to the Assembly and Senate Judiciary Committees by January 1, 2019. Requires the evaluation to include a review of the ease of the process to both the obligor and obligee, as well as an analysis of the number of cases administratively adjusted, the number of cases adjusted in court, and the number of cases not adjusted. AB 610 Page 3 The Senate amendments delete the re-establishment of the old pilot program on the expiration of the new pilot, limit the interest that may be suspended, and make the bill effective for all orders issued or modified after enactment of this bill. EXISTING LAW: 1)Establishes DCSS as the single statewide agency responsible for the administration and management of California's child support enforcement program. 2)Requires, at the local level, the child support enforcement program to be run by local child support agencies, which shall have the responsibility for promptly and effectively establishing, modifying, and enforcing child support obligations. 3)Provides that a support order may be modified or terminated at any time as the court determines necessary. Provides that such support modification or termination may only be made pursuant to the filing of a motion or an order to show cause. 4)Prohibits states from enacting laws providing for the retroactive modification or termination of a support order, except that an order modifying or terminating a support order may be made retroactive to the date of the filing of a notice of motion or order to show cause to modify or terminate the order. 5)Effective July 1, 2011 until July 1, 2015, provided that the obligation to pay child support pursuant to an order that was being enforced under Title IV-D of the Social Security Act was suspended for the period of time in which the obligor was incarcerated or involuntarily institutionalized, as provided. Allowed the obligor, upon release from incarceration or institutionalization, to petition the court to adjust the arrears pursuant to the suspension. Required the obligor to AB 610 Page 4 show proof of dates of incarceration or involuntary institutionalization, as well as proof that the obligor did not have the means to pay support. Required the obligor to serve copies of the petition on the support obligee and the LCSA, who could file objections to the petition. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Forms and legislative report: Minor and absorbable one-time costs to the Judicial Council and the DCSS to develop the required forms, evaluate the process and report to the Legislature, as specified, on or before January 1, 2019. 2)LCSA administration: Potential minor to moderate increase in LCSA administrative costs (Federal Funds/General Fund) to comply with this bill's provisions. 3)CalWORKs impact: Minor, if any, loss of child support payment revenue to offset CalWORKs program costs, as only those obligors who do not have the means to pay support will have their child support orders automatically suspended. COMMENTS: 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 AB 610 Page 5 support and have little or no contact with his or her children. In addition, the failure to collect ongoing child 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. In response to these grim findings, the Legislature created a pilot program - only through July 1, 2015, and only for cases being enforced by the state child support program - to suspend the obligation to pay child support for the period of time in which an obligor is incarcerated or involuntarily institutionalized, unless the obligor otherwise had the means to pay support while incarcerated or institutionalized. Upon release, the obligation to pay child support immediately resumed to the amount specified in the child support order prior to the suspension of that obligation. Unfortunately, that now expired program did not prove very successful at preventing the build-up of uncollectible arrears. Data from DCSS show that very few noncustodial sought to have their arrears suspended once out of prison - just 178 petitions were filed - and of those only 14 (or 8%) were granted under the pilot program. This bill seeks to reestablish and extend the pilot until 2020 and expand the pilot to all new or modified cases, 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. Analysis Prepared by: Leora Gershenzon / JUD. / (916) 319-2334 FN: 0001893 AB 610 Page 6