BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 610


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          610 (Jones-Sawyer)


          As Amended  August 31, 2015


          2/3 vote.  Urgency


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          |ASSEMBLY:  |69-4  |(May 7, 2015)  |SENATE: |40-0  |(September 3,    |
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          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.








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          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.










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          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  








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            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  








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          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
















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