BILL ANALYSIS Ó SB 646 Page 1 Date of Hearing: June 30, 2015 ASSEMBLY COMMITTEE ON JUDICIARY Mark Stone, Chair SB 646 (Jackson) - As Amended June 24, 2015 PROPOSED CONSENT SENATE VOTE: 40-0 SUBJECT: UNIFORM INTERSTATE FAMILY SUPPORT ACT KEY ISSUE: IN ORDER TO COMPLY WITH A FEDERAL MANDATE, THE FAILURE OF WHICH COULD LEAD TO A LOSS OF $680 million annually in FEDERAL child support FUNDS, SHOULD CALIFORNIA ADOPT REQUIRED CHANGES TO THE UNIFORM INTERSTATE FAMILY SUPPORT ACT? SYNOPSIS The Uniform Interstate Family Support Act (UIFSA) is a comprehensive model act focused on intergovernmental establishment, modification and enforcement of child support obligations. All states were required to enact UIFSA in 1998 as a condition of receiving federal funds for child support enforcement. As a result, UIFSA is currently the law in all 50 states, including California. The federal Preventing Sex Trafficking and Strengthening Families Act, codified in 2014, now requires that all states adopt the updated UIFSA 2008, verbatim, by the end of their 2015 legislative session as a SB 646 Page 2 condition of continued federal funding of the child support program. (Pub. Law 113-183.) California receives approximately $680 million annually in federal child support funds and risks losing all of that should the updated UIFSA not be adopted by the end of this year. As a result, this non-controversial bill, sponsored by the Department of Child Support Services (DCSS), repeals California's current version of UIFSA, and adopts the 2008 version. This updated version of UIFSA, among other things, simplifies the process for enforcing orders in foreign countries that are signatories to the 2007 Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance (Hague Convention). There is no reported opposition to this bill. SUMMARY: Updates the Uniform Interstate Family Support Act. Specifically, this bill, among other things: 1)Clarifies that a state loses continuing, exclusive jurisdiction if the parties agree, in writing, for another state to assume jurisdiction. 2)Requires tribunals to permit a party or a witness residing in another state to participate in a proceeding telephonically, by audiovisual means, or any other electronic means designated by the tribunal. 3)Requires, upon the request of the appropriate agency, the issuing state agency to redirect payments to the agency in the obligee's state and issue an administrative notice of change to the obligor's employer that reflects the redirected payments. 4)Provides the framework for the exchange of cases between parties to the 2007 Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance. Specifically, this bill: SB 646 Page 3 a) Prescribes the role and responsibilities of central authorities in Hague Convention countries, which in the United States is the Secretary of the U.S. Department of Health & Human Services; and recognizes DCSS as the agency in California designated to perform specified child support functions under the Hague Convention; b) Expands the ability to challenge a Hague Convention support order upon registration in California; and c) Provides that a California court shall not recognize and enforce a registered Hague Convention order if, among other things, recognition and enforcement is manifestly incompatible with public policy, including failure by an issuing court to observe minimum due process standards, which include notice and an opportunity to be heard. Requires California to establish a new support order if the registration of a Hague Convention support order is denied, without further request from the other country. EXISTING LAW: 1)Mandates, under the federal Preventing Sex Trafficking and Strengthening Families Act, that each state adopt UIFSA 2008, verbatim, by the end of the state's 2015 legislative session as a condition of continued federal child support program funding. (Pub. Law 113-183.) 2)Establishes, through UIFSA, rules regarding the establishment and enforcement of child support orders across state lines, and provides that the issuing state shall exercise continuing, exclusive jurisdiction over the order as long as the obligor, obligee, or child remains a resident of the state. (Family Law Section 4900 et seq. Unless stated otherwise, all further statutory references are to that code.) SB 646 Page 4 FISCAL EFFECT: As currently in print this bill is keyed fiscal. COMMENTS: UIFSA is a comprehensive model act focused on intergovernmental establishment, modification, and enforcement of child support obligations. It was first developed by the National Conference of Commissioners on Uniform State Laws in 1992, amended in 1996, 2001 and again in 2008. All states were required to enact the 1996 version of UIFSA in 1998 as a condition of receiving federal funds for child support enforcement. As a result, UIFSA, at least as amended in 1996, is currently state law in all 50 states and jurisdictions. California operates under the 1996 UIFSA, which is set out in Sections 4900-5005. However, as states have operated under the 1996 version of UIFSA, it became apparent that some sections needed clarification. UIFSA 2001 and 2008 addressed these issues by making a number of technical and clarifying changes. In addition, UIFSA 2008 allows states to redirect support payments to a new state when all parties have left the state that originally issued a support order; requires courts to permit out-of-state parties to appear telephonically in proceedings to establish, modify, or enforce a support order; allows states to provide child support services to residents of other countries pursuant to the Hague Convention. In September of 2014, Congress passed, and the President signed into law, the Preventing Sex Trafficking and Strengthening Families Act. That Act requires that all states adopt the 2008 updated version of UIFSA, verbatim, by the end of their 2015 legislative session as a condition of continued child support program funding. Accordingly, this bill would repeal California's existing version of UIFSA, and replace it verbatim with the 2008 version as required by federal law. In support of the bill, the author writes: SB 646 Page 5 Currently, California is operating under UIFSA 1996. All states and U.S. Territories must enact UIFSA 2008 by January 1, 2016 in order to comply with the federal mandate. If UIFSA 2008 is not enacted, this will affect California's federal funding and will prevent the United States from ratifying the 2007 Hague Convention. Adds the Department of Child Support Services, the bill's sponsor: SB 646 will help ensure that a child gets the financial support they need regardless of where they reside. The bill synchronizes the provisions of UIFSA with the 2007 Hague Convention, enabling international child support cases to move forward upon ratification. Finally, the bill would protect California from hundreds of millions of dollars in penalties and ensure that California law does not pose any impediments to the ability of the United States to ratify the treaty of the Convention. Bill Makes Clarifying and Technical Changes to UIFSA in California. Prior to the enactment of UIFSA, courts struggled to enforce support orders over state lines, and it was unclear which state had jurisdiction of a support order. Obligors could sometimes avoid paying support simply by moving across state lines. To combat these difficulties, UIFSA created a "one order" system and a jurisdictional framework for parties and states dealing with interstate support orders. The federal government mandated that the 1996 version be adopted nationwide. UIFSA was then updated in 2001 to provide clarification as issues arose once states were operating under the 1996 version. In 2002, California conditionally adopted UIFSA 2001 through passage of AB 2934 (Wayne), Chap. 349, Stats. 2002. Operation was conditioned on either the federal government mandating adoption of UIFSA 2001, or California requesting a federal SB 646 Page 6 waiver to operate under that version. Neither condition has been met and thus California continues to operate under UIFSA 1996. The 2008 updates that this bill incorporates include those 2001 changes that the California Legislature has already approved as well. This bill additionally provides for the redirection of support payments when all parties have left the state that issued the original order. This should streamline payment processing and ensure that child support payments are forwarded to families more quickly. Finally, this bill clarifies that a nonresident petitioner or respondent can fully participate in a proceeding without being required to physically be present through the use of telephonic, audiovisual or any other electronic means. This will allow parties to make modifications to a support order when they have relocated to another state without being subject to the time and expense of travel. Most Changes in the Updated Version of UIFSA are Part of the Updates to the Hague Convention to Help Collect Child Support in International Cases. The United States is a signatory and participated in negotiating the multilateral treaty produced at the 2007 Hague Convention on the International Recovery of Child Support and Other Forms of Maintenance. This bill provides a framework for the exchange of cases between the United States and other parties to the Hague Convention. The Hague Convention entered into force in January of 2013 following ratification by Albania and Norway, and the European Union became a party in 2014. Chapter Seven of the updated UIFSA in this bill (Sections 5700.701 to 5700.713) applies to support proceedings under the Convention once the treaty is ratified by the United States. In order to ratify the treaty, all states must first adopt UIFSA 2008. Similar to how enactment of UIFSA 1996 enabled the collection of child support across state lines, the adoption of Chapter Seven SB 646 Page 7 creates a mechanism for the collection and distribution of child support in situations where one or both parties live outside the United States in a Hague Convention country, and gives state courts the authority to enforce foreign support orders for foreign nationals living in the United States. However, the revised UIFSA 2008 provides that California is not required to recognize or enforce an order from another country that is "manifestly incompatible with public policy," including an order that fails to meet minimum due process standards, which include notice and an opportunity to be heard. This helps ensure that our courts will not be enforcing orders that violate this State's public policy, while still requiring that most support orders be enforced in California and that California support orders be recognized and enforced by Hague Convention countries around the world. Prior Legislation: AB 2934 (Wayne), Chap. 349, Stats. 2002, made substantive and procedural amendments to UIFSA, which were to become effective only if Congress mandated that states adopt UIFSA as revised in 2001 or California received a waiver to operate under UIFSA 2001. SB 568 (Sher), Chap. 194, Stats. 1997, enacted UIFSA 2006 in California. REGISTERED SUPPORT / OPPOSITION: Support Department of Child Support Services (sponsor) SB 646 Page 8 Opposition None on file Analysis Prepared by:Leora Gershenzon / JUD. / (916) 319-2334