BILL NUMBER: SB 542 CHAPTERED
BILL TEXT
CHAPTER 480
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 1999
APPROVED BY GOVERNOR SEPTEMBER 24, 1999
PASSED THE SENATE SEPTEMBER 10, 1999
PASSED THE ASSEMBLY SEPTEMBER 9, 1999
AMENDED IN ASSEMBLY SEPTEMBER 7, 1999
AMENDED IN ASSEMBLY JULY 12, 1999
AMENDED IN ASSEMBLY JULY 6, 1999
AMENDED IN ASSEMBLY JUNE 28, 1999
AMENDED IN ASSEMBLY JUNE 22, 1999
AMENDED IN SENATE MAY 6, 1999
AMENDED IN SENATE MARCH 10, 1999
INTRODUCED BY Senators Burton and Schiff
(Principal coauthor: Assembly Member Kuehl)
FEBRUARY 19, 1999
An act to amend Sections 5208, 5212, 5234, 5246, 17000, 17211,
17300, 17302, 17304, 17305, 17306, 17310, 17312, 17400, 17404, 17406,
17415, 17430, 17500, 17600, 17602, 17604, 17704, 17706, and 17710
of, and to add Section 17501 and 17700 to, the Family Code, to amend
Sections 19271 and 19272 of, and to add Section 19275 to, the Revenue
and Taxation Code, to amend Section 1088.8 of the Unemployment
Insurance Code, to amend and renumber Section 18205 of, and to repeal
Section 15200.81 of, the Welfare and Institutions Code, relating to
social services.
LEGISLATIVE COUNSEL'S DIGEST
SB 542, Burton. Child support enforcement.
Existing law provides for the implementation and administration of
procedures for securing child and spousal support and determining
paternity and sets forth the duties and functions of specified state
and local entities for this purpose.
This bill would recast those provisions and would make conforming
changes to reflect those recast provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5208 of the Family Code is amended to read:
5208. (a) "Earnings assignment order for support" means an order
that assigns to an obligee a portion of the earnings of a support
obligor due or to become due in the future.
(b) Commencing January 1, 2000, all earnings assignment orders for
support in any action in which child support or family support is
ordered shall be issued on an "order/notice to withhold income for
child support" mandated by Section 666 of Title 42 of the United
States Code.
SEC. 2. Section 5212 of the Family Code is amended to read:
5212. "IV-D Case" means any case being established, modified, or
enforced by the local child support agency pursuant to Section 654 of
Title 42 of the United States Code (Section 454 of the Social
Security Act).
SEC. 3. Section 5234 of the Family Code is amended to read:
5234. Within 10 days of service of an assignment order or an
order/notice to withhold income for child support on an employer, the
employer shall deliver both of the following to the obligor:
(a) A copy of the assignment order or the order/notice to withhold
income for child support.
(b) A written statement of the obligor's rights under the law to
seek to quash, modify, or stay service of the earnings assignment
order, together with a blank form that the obligor can file with the
court to request a hearing to quash, modify, or stay service of the
earnings assignment order with instructions on how to file the form
and obtain a hearing date.
SEC. 4. Section 5246 of the Family Code is amended to read:
5246. (a) This section applies only to Title IV-D cases where
support enforcement services are being provided by the local child
support agency pursuant to Section 17400.
(b) In lieu of an earnings assignment order signed by a judicial
officer, the local child support agency may serve on the employer a
notice of assignment in the manner specified in Section 5232. An
order/notice to withhold income for child support shall have the same
force and effect as an earnings assignment order signed by a
judicial officer. An order/notice to withhold income from child
support, when used under this section, shall be considered a notice
and shall not require the signature of a judicial officer.
(c) Pursuant to Section 666 of Title 42 of the United State Code,
the federally mandated order/notice to withhold income for child
support shall be used for the purposes described in this section.
(d) If the underlying court order for support does not provide for
an arrearage payment, or if an additional arrearage accrues after
the date of the court order for support, the local child support
agency may send an order/notice to withhold income for child support
that shall be used for the purposes described in this section
directly to the employer which specifies the updated arrearage amount
and directs the employer to withhold an additional amount to be
applied towards liquidation of the arrearages not to exceed the
maximum amount permitted by Section 1673(b) of Title 15 of the United
States Code. The Franchise Tax Board, in support of its
responsibility for accounts receivable management of delinquent child
support obligations pursuant to Section 17501, may send an
order/notice to withhold income for child support directly to the
employer that specifies the updated arrearage amount and directs the
employer to withhold an additional amount to be applied to the
liquidation of the arrearages. Any order/notice to withhold income
for child support issued by the Franchise Tax Board shall be issued
in the name of the local child support agency.
(e) If the obligor requests a hearing, a hearing date shall be
scheduled within 20 days of the filing of the request with the court.
The clerk of the court shall provide notice of the hearing to the
local child support agency and the obligor no later than 10 days
prior to the hearing.
(1) If at the hearing the obligor establishes that he or she is
not the obligor or good cause or an alternative arrangement as
provided in Section 5260, the court may order that service of the
order/notice to withhold income for child support be quashed. If the
court quashes service of the order/notice to withhold income for
child support, the local child support agency shall notify the
employer within 10 days.
(2) If the obligor contends at the hearing that the payment of
arrearages at the rate specified in the order/notice to withhold
income for child support is excessive or that the total arrearages
owing is incorrect, and if it is determined that payment of the
arrearages at the rate specified in this section creates an undue
hardship upon the obligor or that the withholding would exceed the
maximum amount permitted by Section 1673(b) of Title 15 of the United
States Code Annotated, the rate at which the arrearages must be paid
shall be reduced to a rate that is fair and reasonable considering
the circumstances of the parties and the best interest of the child.
If it is determined at a hearing that the total amount of arrearages
calculated is erroneous, the court shall modify the amount
calculated to the correct amount. If the court modifies the total
amount of arrearages owed or reduces the monthly payment due on the
arrearages, the local child support agency shall serve the employer
with an amended order/notice to withhold income for child support
within 10 days.
(f) If an obligor's current support obligation has terminated by
operation of law, the local child support agency may serve an
order/notice to withhold income for child support on the employer
which directs the employer to continue withholding from the obligor's
earnings an amount to be applied towards liquidation of the
arrearages, not to exceed the maximum amount permitted by Section
1673(b) of Title 15 of the United States Code, until such time that
the employer is notified by the local child support agency that the
arrearages have been paid in full. The employer shall provide the
obligor with a copy of the order/notice to withhold income for child
support and a blank form that the obligor may file with the court to
request a hearing to modify or quash the assignment with instructions
on how to file the form and obtain a hearing date. The obligor
shall be entitled to the same rights to a hearing as specified in
subdivision (e).
(g) The local child support agency shall retain a copy of the
order/notice to withhold income for child support and shall file a
copy with the court whenever a hearing concerning the order/notice to
withhold income for child support is requested.
(h) The local child support agency may transmit an order/notice to
withhold income for child support and other forms required by this
section to the employer through electronic means.
SEC. 5. Section 17000 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17000. The definitions contained in this section, and definitions
applicable to Division 9 (commencing with Section 3500), shall
govern the construction of this division, unless the context requires
otherwise.
(a) "Child support debt" means the amount of money owed as child
support pursuant to a court order.
(b) "Child support order" means any court order for the payment of
a set or determinable amount of support by a parent or a court order
requiring a parent to provide for health insurance coverage. "Child
support order" includes any court order for spousal support or for
medical support to the extent these obligations are to be enforced by
a single state agency for child support under Title IV-D.
(c) "Court" means any superior court of this state and any court
or tribunal of another state that has jurisdiction to determine the
liability of persons for the support of another person.
(d) "Court order" means any judgment, decree, or order of any
court of this state that orders the payment of a set or determinable
amount of support by a parent. It does not include any order or
decree of any proceeding in which a court did not order support.
(e) "Department" means the Department of Child Support Services.
(f) "Dependent child" means any of the following:
(1) Any person under 18 years of age who is not emancipated,
self-supporting, married, or a member of the armed forces of the
United States.
(2) Any unmarried person who is at least 18 years of age but who
has not reached his or her 19th birthday, is not emancipated, and is
a student regularly attending high school or a program of vocational
or technical training designed to train that person for gainful
employment.
(g) "Director" means the Director of Child Support Services or his
or her authorized representative.
(h) "Local child support agency" means the county department of
child support services created pursuant to this chapter and with
which the department has entered into a cooperative agreement, to
secure child and spousal support, medical support, and determine
paternity.
(i) "Parent" means the natural or adoptive father or mother of a
dependent child, and includes any person who has an enforceable
obligation to support a dependent child.
(j) "Public assistance" means any amount paid under the California
Work Opportunity and Responsibility to Kids Act (Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code), or any Medi-Cal benefit, for the
benefit of any dependent child or the caretaker of a child.
(k) "Public assistance debt" means any amount paid under the
California Work Opportunity and Responsibility to Kids Act, contained
in Chapter 2 (commencing with Section 11200) of Part 3 of Division 9
of the Welfare and Institutions Code, for the benefit of any
dependent child or the caretaker of a child for whom the department
is authorized to seek recoupment under this division, subject to
applicable federal law.
(l) "Title IV-D" or "IV-D" means Part D of Title IV of the federal
Social Security Act (42 U.S.C. Sec. 651 et seq.).
SEC. 6. Section 17211 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17211. The department shall administer the Child Support
Assurance Demonstration Project established by Article 5 (commencing
with Section 18241) of Chapter 3.3 of Part 6 of the Welfare and
Institutions Code, and the county demonstration projects to provide
employment and training services to nonsupporting noncustodial
parents authorized by Section 18205.5 of the Welfare and Institutions
Code. However, the department may contract with the State
Department of Social Services to continue development and
implementation of these demonstration projects until they have been
fully implemented. After the demonstration projects have been fully
implemented, the department shall consult with the State Department
of Social Services on the administration of the projects. The
contracts for evaluation of the demonstration projects shall continue
to be maintained by the State Department of Social Services. The
department shall be responsible for the final evaluation of the
projects.
SEC. 6.5. Section 17300 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session of the Legislature, is
amended to read:
17300. With the consent of the Senate, the Governor shall
appoint, to serve at his or her pleasure, an executive officer who
shall be director of the department. In making the appointment the
Governor shall consider training, demonstrated ability, experience,
and leadership in organized child support enforcement administration.
The director shall receive the salary provided for by Chapter 6
(commencing with Section 11550), Part 1, Division 3, Title 2 of the
Government Code.
The Governor also may appoint, to serve at his or her pleasure,
not to exceed two chief deputy directors of the department, and one
deputy director of the department. The salaries of the chief deputy
directors and the deputy director shall be fixed in accordance with
law.
SEC. 7. Section 17302 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17302. The director shall do all of the following:
(a) Be responsible for the management of the department.
(b) Administer all federal and state laws and regulations
pertaining to the administration of child support enforcement
obligations.
(c) Perform all duties as may be prescribed by law, and any other
administrative and executive duties imposed by law.
(d) Observe, and report to the Governor, the Legislature, and the
public on, the conditions of child support enforcement activities
throughout the state pursuant to subdivision (e) of Section 17602.
SEC. 8. Section 17304 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17304. To address the concerns stated by the Legislature in
Section 17303, each county shall establish a new county department of
child support services. Each department is also referred to in this
division as the local child support agency. The local child support
agency shall be separate and independent from any other county
department and shall be responsible for promptly and effectively
establishing, modifying, and enforcing child support obligations,
including medical support, enforcing spousal support orders
established by a court of competent jurisdiction, and determining
paternity in the case of a child born out of wedlock. The local
child support agency shall refer all cases requiring criminal
enforcement services to the district attorney and the district
attorney shall prosecute those cases, as appropriate. If a district
attorney fails to comply with this section, the director shall notify
the Attorney General and the Attorney General shall take appropriate
action to secure compliance. The director shall be responsible for
implementing and administering all aspects of the state plan that
direct the functions to be performed by the local child support
agencies relating to their Title IV-D operations. In developing the
new system, all of the following shall apply:
(a) The director shall negotiate and enter into cooperative
agreements with county and state agencies to carry out the
requirements of the state plan and provide services relating to the
establishment of paternity or the establishment, modification, or
enforcement of child support obligations as required pursuant to
Section 654 of Title 42 of the United States Code. The cooperative
agreements shall require that the local child support agencies are
reasonably accessible to the citizens of each county and are visible
and accountable to the public for their activities. The director, in
consultation with the impacted counties, may consolidate the local
child support agencies, or any function of the agencies, in more than
one county into a single local child support agency, if the director
determines that the consolidation will increase the efficiency of
the state Title IV-D program and each county has at least one local
child support office accessible to the public.
(b) The director shall have direct oversight and supervision of
the Title IV-D operations of the local child support agency, and no
other local or state agency shall have any authority over the local
child support agency as to any function relating to its Title IV-D
operations. The local child support agency shall be responsible for
the performance of child support enforcement activities required by
law and regulation in a manner prescribed by the department. The
administrator of the local child support agency shall be responsible
for reporting to and responding to the director on all aspects of the
child support program.
(c) Nothing in this section prohibits the local child support
agency, with the prior approval of the director, from entering into
cooperative arrangements with other county departments, as necessary
to carry out the responsibilities imposed by this section pursuant to
plans of cooperation submitted to the department and approved by the
director. The local child support agency may not enter into a
cooperative agreement or contract with any county department or
independently elected official, including the office of the district
attorney, to run, supervise, manage, or oversee the Title IV-D
functions of the local child support agency. Until September 1,
2004, the local child support agency may enter into a cooperative
agreement or contract of restricted scope and duration with a
district attorney to utilize individual attorneys as necessary to
carry out limited attorney services. Any cooperative agreement or
contract for the attorney services shall be subject to approval by
the department and contingent upon a written finding by the
department that either the relatively small size of the local child
support agency program, or other serious programmatic needs, arising
as a result of the transition make it most efficient and
cost-effective to contract for limited attorney services. The
department shall ensure that any cooperative agreement or contract
for attorney services provides that all attorneys be supervised by,
and report directly to, the local child support agency, and comply
with all state and federal child support laws and regulations. The
office of the Legislative Analyst shall review and assess the
efficiency and effectiveness of any such cooperative agreement or
contract, and shall report its findings to the Legislature by January
1, 2004. Within 60 days of receipt of a plan of cooperation or
contract from the local child support agency, the department shall
either approve the plan of cooperation or contract or notify the
agency that the plan is denied. If an agency is notified that the
plan is denied, the agency shall have the opportunity to resubmit a
revised plan of cooperation or contract. If the director fails to
respond in writing within 60 days of receipt, the plan shall
otherwise be deemed approved. Nothing in this section shall be
deemed an approval of program costs relative to the cooperative
arrangements entered into by the counties with other county
departments.
(d) In order to minimize the disruption of services provided and
to capitalize on the expertise of employees, the director shall
create a program that builds on existing staff and facilities to the
fullest extent possible. All assets of the family support division
in the district attorney's office shall become assets of the local
child support agency.
(e) (1) All employees and other personnel who serve the office of
the district attorney and perform child support collection and
enforcement activities shall become the employees and other personnel
of the county child support agency at their existing or equivalent
classifications, and at their existing salaries and benefits that
include, but are not limited to, accrued and unused vacation, sick
leave, personal leave, and health and pension plans.
(2) Permanent employees of the office of the district attorney on
the effective date of this chapter shall be deemed qualified, and no
other qualifications shall be required for employment or retention in
the county child support agency. Probationary employees on the
effective date of this chapter shall retain their probationary status
and rights, and shall not be deemed to have transferred, so as to
require serving a new probationary period.
(3) Employment seniority of an employee of the office of the
district attorney on the effective date of this chapter shall be
counted toward seniority in the county child support agency and all
time spent in the same, equivalent, or higher classification shall be
counted toward classification seniority.
(4) An employee organization that has been recognized as the
representative or exclusive representative of an established
appropriate bargaining unit of employees who perform child support
collection and enforcement activities shall continue to be recognized
as the representative or exclusive representative of the same
employees of the county.
(5) An existing memorandum of understanding or agreement between
the county or the office of the district attorney and the employee
organization shall remain in effect and be fully binding on the
parties involved for the term of the agreement.
(6) Nothing in this section shall be construed to limit the rights
of employees or employee organizations to bargain in good faith on
matters of wages, hours, or other terms and conditions of employment,
including the negotiation of workplace standards within the scope of
bargaining as authorized by state and federal law.
(7) (A) Except as provided in subparagraph (B), a public agency
shall, in implementing programs affected by the act of addition or
amendment of this chapter to this code, perform program functions
exclusively through the use of civil service employees of the public
agency.
(B) Prior to transition from the district attorney to the local
child support agency under Section 17305, the district attorney may
continue existing contracts and their renewals, as appropriate.
After the transition under Section 17305, any contracting out of
program functions shall be approved by the director. The director
shall approve or disapprove a proposal to contract out within 60
days. Failure of the director to respond to a request to contract
out within 60 days after receipt of the request shall be deemed
approval, unless the director submits an extension to respond, which
in no event shall be longer than 30 days.
(f) The administrator of the local child support agency shall be
an employee of the county selected by the board of supervisors
pursuant to the qualifications established by the department. The
administrator may hire staff, including attorneys, to fulfill the
functions required by the agency and in conformity with any staffing
requirements adopted by the department, including all those set forth
in Section 17306. All staff shall be employees of the county and
shall comply with all local, state, and federal child support laws,
regulations, and directives.
SEC. 9. Section 17305 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17305. (a) In order to achieve an orderly and timely transition
to the new system with minimal disruption of services, the director
shall begin the transition from the office of the district attorney
to the local child support agencies pursuant to Section 17304,
commencing January 1, 2001. The director shall transfer the
appropriate number of counties, equaling at least 50 percent of the
statewide caseload into the new system by January 1, 2002. The
transition shall be completed by January 1, 2003. A county that has
appointed an administrator for the local child support agency and has
complied with the requirements of subdivision (b) may transition
prior to January 1, 2001, subject to the approval of the director. In
determining the order in which counties will be transferred from the
office of the district attorney to the local child support agencies,
the director shall do all of the following:
(1) Consider the performance of the counties in establishing and
collecting child support.
(2) Minimize the disruption of the services provided by the
counties.
(3) Optimize the chances of a successful transition.
(b) In order to achieve an orderly transition with minimal
disruption of services, a county shall submit a plan of transition
which shall be approved by the department prior to transition.
(c) The director shall consult with the district attorney to
achieve an orderly transition and to minimize the disruption of
services. Each district attorney shall cooperate in the transition
as requested by the director.
(d) To minimize any disruption of services provided under the
child support enforcement program during the transition, each
district attorney shall:
(1) Continue to be designated the single organizational unit whose
duty it shall be to administer the Title IV-D state plan for
securing child and spousal support, medical support, and determining
paternity for that county until such time as the county is notified
by the director that the county has been transferred pursuant to
subdivision (a) or sooner under Section 17602.
(2) At a minimum, maintain all levels of funding, staffing, and
services as of January 1, 1999, to administer the Title IV-D state
plan for securing child and spousal support, medical support, and
determining paternity. If the director determines that a district
attorney has lowered the funding, staffing, or services of the child
support enforcement program, the director may withhold part or all
state and federal funds, including incentive funds, from the district
attorney. Before the director withholds part of or all state and
federal funds, including incentive funds, the district attorney shall
have the opportunity to demonstrate good cause for any reductions in
funding, staffing, or services. Good cause exceptions for
reductions shall include, but not be limited to, natural staff
attrition and caseload changes.
SEC. 10. Section 17306 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17306. (a) The Legislature finds and declares all of the
following:
(1) While the State Department of Social Services has had
statutory authority over the child support system, the locally
elected district attorneys have operated their county programs with a
great deal of autonomy.
(2) District attorneys have operated the child support programs
with different forms, procedures and priorities, making it difficult
to adequately evaluate and modify performance statewide.
(3) Problems collecting child support reflect a fundamental lack
of leadership and accountability in the collection program. These
management problems have cost California taxpayers and families
billions of dollars.
(b) The director shall develop uniform forms, policies and
procedures to be employed statewide by all local child support
agencies. Pursuant to this subdivision, the director shall:
(1) Adopt uniform procedures and forms.
(2) Establish standard caseworker to case staffing ratios,
adjusted as appropriate to meet the varying needs of local programs.
(3) Establish standard attorney to caseworker ratios, adjusted as
appropriate to meet the varying needs of local programs.
(4) Institute a consistent statewide policy on the appropriateness
of closing cases to ensure that, without relying solely on federal
minimum requirements,
all cases are fully and pragmatically pursued for collections prior
to closing.
(5) Evaluate the best practices for the establishment,
enforcement, and collection of child support, for the purpose of
determining which practices should be implemented statewide in an
effort to improve performance by local child support agencies. In
evaluating the best practices, the director shall review existing
practices in better performing counties within California, as well as
practices implemented by other state Title IV-D programs nationwide.
(6) Evaluate the best practices for the management of effective
child support enforcement operations for the purpose of determining
what management structure should be implemented statewide in an
effort to improve the establishment, enforcement, and collection of
child support by local child support agencies, including an
examination of the need for attorneys in management level positions.
In evaluating the best practices, the director shall review existing
practices in better performing counties within California, as well
as practices implemented by other state Title IV-D programs
nationwide.
(7) Set priorities for the use of specific enforcement mechanisms
for use by both the local child support agency and the Franchise Tax
Board. As part of establishing these priorities, the director shall
set forth caseload processing priorities to target enforcement
efforts and services in a way that will maximize collections and
avoid welfare dependency.
(8) Develop uniform training protocols, require periodic training
of all child support staff, and conduct training sessions as
appropriate.
(9) Review and approve annual budgets submitted by the local child
support agencies to ensure each local child support agency operates
an effective and efficient program that complies with all federal and
state laws, regulations, and directives, including the directive to
hire sufficient staff.
(c) The director shall submit any forms intended for use in court
proceedings to the Judicial Council for approval at least six months
prior to the implementation of the use of the forms.
(d) In adopting the forms, policies, and procedures, the director
shall consult with the California Family Support Council, the
California State Association of Counties, labor organizations,
custodial and noncustodial parent advocates, child support
commissioners, family law facilitators, and the appropriate
committees of the Legislature.
(e) (1) Notwithstanding the provisions of the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, through June 30,
2001, the department may implement the applicable provisions of this
division through family support division letters or similar
instructions from the director.
(2) The department shall adopt regulations implementing the forms,
policies, and procedures established pursuant to this section not
later than July 1, 2001. The director may delay implementation of
any of these regulations in any county for such time as the director
deems necessary for the smooth transition and efficient operation of
a local child support agency, but implementation shall not be delayed
beyond the time at which the transition to the new county department
of child support services is completed. The department may adopt
regulations to implement this division in accordance with the
Administrative Procedure Act. The adoption of any emergency
regulation filed with the Office of Administrative Law on or before
January 1, 2003, shall be deemed to be an emergency and necessary for
the immediate preservation of the public peace, health, and safety
or general welfare. These emergency regulations shall remain in
effect for no more than 180 days.
SEC. 11. Section 17310 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17310. (a) The director shall formulate, adopt, amend, or repeal
regulations and general policies affecting the purposes,
responsibilities, and jurisdiction of the department that are
consistent with law and necessary for the administration of the state
plan for securing child support and enforcing spousal support orders
and determining paternity.
(b) Notwithstanding any other provision of law, all regulations,
including, but not limited to, regulations of the State Department of
Social Services and the State Department of Health Services,
relating to child support enforcement shall remain in effect and
shall be fully enforceable by the department. The department may
readopt, amend, or repeal the regulations in accordance with Section
17312 as necessary and appropriate.
SEC. 12. Section 17312 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17312. (a) The department shall adopt regulations, orders, or
standards of general application to implement, interpret, or make
specific the law enforced by the department. Regulations, orders,
and standards shall be adopted, amended, or repealed by the director
only in accordance with Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code.
(b) In adopting regulations, the department shall strive for
clarity of language that may be readily understood by those
administering public social services or subject to those regulations.
(c) The rules of the department need not specify or include the
detail of forms, reports, or records, but shall include the essential
authority by which any person, agency, organization, association, or
institution subject to the supervision or investigation of the
department is required to use, submit, or maintain the forms,
reports, or records.
(d) The department's regulations and other materials shall be made
available pursuant to the California Code of Regulations and in the
same manner as are materials of the State Department of Social
Services under the provisions of Section 205.70 of Title 45 of the
Code of Federal Regulations.
SEC. 13. Section 17400 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17400. (a) Each county shall maintain a local child support
agency, as specified in Section 17304, that shall have the
responsibility for promptly and effectively establishing, modifying,
and enforcing child support obligations, including medical support,
enforcing spousal support orders established by a court of competent
jurisdiction, and determining paternity in the case of a child born
out of wedlock. The local child support agency shall take
appropriate action, including criminal action in cooperation with the
district attorneys, to establish, modify, and enforce child support
and, when appropriate, enforce spousal support orders when the child
is receiving public assistance, including Medi-Cal, and, when
requested, shall take the same actions on behalf of a child who is
not receiving public assistance, including Medi-Cal.
(b) Actions brought by the local child support agency to establish
paternity or child support or to enforce child support obligations
shall be completed within the time limits set forth by federal law.
The local child support agency's responsibility applies to spousal
support only where the spousal support obligation has been reduced to
an order of a court of competent jurisdiction. In any action
brought for modification or revocation of an order that is being
enforced under Title IV-D of the Social Security Act (42 U.S.C. Sec.
651 et seq.), the effective date of the modification or revocation
shall be as prescribed by federal law (42 U.S.C. Sec. 666(a)(9)), or
any subsequent date.
(c) (1) The Judicial Council, in consultation with the department
and representatives of the California Family Support Council, the
Senate Committee on Judiciary, the Assembly Committee on Judiciary,
and a legal services organization providing representation on child
support matters, shall develop simplified summons, complaint, and
answer forms for any action for support brought pursuant to this
section or Section 17404. The Judicial Council may combine the
summons and complaint in a single form.
(2) The simplified complaint form shall provide the defendant with
notice of the amount of child support that is sought pursuant to the
guidelines set forth in Article 2 (commencing with Section 4050) of
Chapter 2 of Part 2 of Division 9 based upon the income or income
history of the defendant as known to the local child support agency.
If the defendant's income or income history is unknown to the local
child support agency, the complaint shall inform the defendant that
income shall be presumed in an amount that results in a court order
equal to the minimum basic standard of adequate care provided in
Section 11452 of the Welfare and Institutions Code unless information
concerning the defendant's income is provided to the court. The
complaint form shall be accompanied by a proposed judgment. The
complaint form shall include a notice to the defendant that the
proposed judgment will become effective if he or she fails to file an
answer with the court within 30 days of service.
(3) (A) The simplified answer form shall be written in simple
English and shall permit a defendant to answer and raise defenses by
checking applicable boxes. The answer form shall include
instructions for completion of the form and instructions for proper
filing of the answer.
(B) The answer form shall be accompanied by a blank income and
expense declaration or simplified financial statement and
instructions on how to complete the financial forms. The answer form
shall direct the defendant to file the completed income and expense
declaration or simplified financial statement with the answer, but
shall state that the answer will be accepted by a court without the
income and expense declaration or simplified financial statement.
(C) The clerk of the court shall accept and file answers, income
and expense declarations, and simplified financial statements that
are completed by hand provided they are legible.
(4) (A) The simplified complaint form prepared pursuant to this
subdivision shall be used by the local child support agency or the
Attorney General in all cases brought under this section or Section
17404.
(B) The simplified answer form prepared pursuant to this
subdivision shall be served on all defendants with the simplified
complaint. Failure to serve the simplified answer form on all
defendants shall not invalidate any judgment obtained. However,
failure to serve the answer form may be used as evidence in any
proceeding under Section 17432 of this code or Section 473 of the
Code of Civil Procedure.
(C) The Judicial Council shall add language to the governmental
summons, for use by the local child support agency with the
governmental complaint to establish parental relationship and child
support, informing defendants that a blank answer form should have
been received with the summons and additional copies may be obtained
from either the local child support agency or the superior court
clerk.
(d) In any action brought or enforcement proceedings instituted by
the local child support agency pursuant to this section for payment
of child or spousal support, an action to recover an arrearage in
support payments may be maintained by the local child support agency
at any time within the period otherwise specified for the enforcement
of a support judgment, notwithstanding the fact that the child has
attained the age of majority.
(e) The county shall undertake an outreach program to inform the
public that the services described in subdivisions (a) to (c),
inclusive, are available to persons not receiving public assistance.
There shall be prominently displayed in every public area of every
office of the agencies established by this section a notice, in clear
and simple language prescribed by the Director of Child Support
Services, that the services provided in subdivisions (a) to (c),
inclusive, are provided to all individuals, whether or not they are
recipients of public assistance.
(f) (1) In any action to establish a child support order brought
by the local child support agency in the performance of duties under
this section, the local child support agency may make a motion for an
order effective during the pendency of that action, for the support,
maintenance, and education of the child or children that are the
subject of the action. This order shall be referred to as an order
for temporary support. This order shall have the same force and
effect as a like or similar order under this code.
(2) The local child support agency shall file a motion for an
order for temporary support within the following time limits:
(A) If the defendant is the mother, a presumed father under
Section 7611, or any father where the child is at least six months
old when the defendant files his answer, the time limit is 90 days
after the defendant files an answer.
(B) In any other case where the defendant has filed an answer
prior to the birth of the child or not more than six months after the
birth of the child, then the time limit is nine months after the
birth of the child.
(3) If more than one child is the subject of the action, the
limitation on reimbursement shall apply only as to those children
whose parental relationship and age would bar recovery were a
separate action brought for support of that child or those children.
(4) If the local child support agency fails to file a motion for
an order for temporary support within time limits specified in this
section, the local child support agency shall be barred from
obtaining a judgment of reimbursement for any support provided for
that child during the period between the date the time limit expired
and the motion was filed, or, if no such motion is filed, when a
final judgment is entered.
(5) Except as provided in Section 17304, nothing in this section
prohibits the local child support agency from entering into
cooperative arrangements with other county departments as necessary
to carry out the responsibilities imposed by this section pursuant to
plans of cooperation with the departments approved by the Department
of Child Support Services.
(6) Nothing in this section shall otherwise limit the ability of
the local child support agency from securing and enforcing orders for
support of a spouse or former spouse as authorized under any other
provision of law.
(g) As used in this article, "enforcing obligations" includes, but
is not limited to, (1) the use of all interception and notification
systems operated by the department for the purposes of aiding in the
enforcement of support obligations, (2) the obtaining by the local
child support agency of an initial order for child support that may
include medical support or that is for medical support only, by civil
or criminal process, (3) the initiation of a motion or order to show
cause to increase an existing child support order, and the response
to a motion or order to show cause brought by an obligor parent to
decrease an existing child support order, or the initiation of a
motion or order to show cause to obtain an order for medical support,
and the response to a motion or order to show cause brought by an
obligor parent to decrease or terminate an existing medical support
order, without regard to whether the child is receiving public
assistance, (4) the response to a notice of motion or order to show
cause brought by an obligor parent to decrease an existing spousal
support order when the child or children are residing with the
obligee parent and the local child support agency is also enforcing a
related child support obligation owed to the obligee parent by the
same obligor, and (5) the transfer of the accounts receivable
management of child support delinquencies to the Franchise Tax Board
under Section 17501 in support of the local child support agency.
(h) As used in this section, "out of wedlock" means that the
biological parents of the child were not married to each other at the
time of the child's conception.
(i) (1) The local child support agency is the public agency
responsible for administering wage withholding for current support
the purposes of Title IV-D of the Social Security Act (42 U.S.C. Sec.
651 et seq.).
(2) Nothing in this section shall limit the authority of the local
child support agency granted by other sections of this code or
otherwise granted by law, except to the extent that the law is
inconsistent with the transfer of the responsibility for accounts
receivable management of delinquent child support to the Franchise
Tax Board.
(j) In the exercise of the authority granted under this article,
the local child support agency may intervene, pursuant to subdivision
(b) of Section 387 of the Code of Civil Procedure, by ex parte
application, in any action under this code, or other proceeding in
which child support is an issue or a reduction in spousal support is
sought. By notice of motion, order to show cause, or responsive
pleading served upon all parties to the action, the local child
support agency may request any relief that is appropriate that the
local child support agency is authorized to seek.
(k) The local child support agency shall comply with all
regulations and directives established by the department that set
time standards for responding to requests for assistance in locating
noncustodial parents, establishing paternity, establishing child
support awards, and collecting child support payments.
(l) As used in this article, medical support activities that the
local child support agency is authorized to perform are limited to
the following:
(1) The obtaining and enforcing of court orders for health
insurance coverage.
(2) Any other medical support activity mandated by federal law or
regulation.
(m) (1) Notwithstanding any other law, venue for an action or
proceeding under this division shall be determined as follows:
(A) Venue shall be in the superior court in the county that is
currently expending public assistance.
(B) If public assistance is not currently being expended, venue
shall be in the superior court in the county where the child who is
entitled to current support resides or is domiciled.
(C) If current support is no longer payable through, or
enforceable by, the local child support agency, venue shall be in the
superior court in the county that last provided public assistance
for actions to enforce arrearages assigned pursuant to Section 11477
of the Welfare and Institutions Code.
(D) If subparagraphs (A), (B), and (C) do not apply, venue shall
be in the superior court in the county of residence of the support
obligee.
(E) If the support obligee does not reside in California, and
subparagraphs (A), (B), (C), and (D) do not apply, venue shall be in
the superior court of the county of residence of the obligor.
(2) Notwithstanding paragraph (1), if the child becomes a resident
of another county after an action under this part has been filed,
venue may remain in the county where the action was filed until the
action is completed.
(n) The local child support agency of one county may appear on
behalf of the local child support agency of any other county in an
action or proceeding under this part.
SEC. 14. Section 17404 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17404. (a) Notwithstanding any other statute, in any action
brought by the local child support agency for the support of a minor
child or children, the action may be prosecuted in the name of the
county on behalf of the child, children, or a parent of the child or
children. The parent who has requested or is receiving support
enforcement services of the local child support agency shall not be a
necessary party to the action but may be subpoenaed as a witness.
Except as provided in subdivision (e), in an action under this
section there shall be no joinder of actions, or coordination of
actions, or cross-complaints, and the issues shall be limited
strictly to the question of parentage, if applicable, and child
support, including an order for medical support. A final
determination of parentage may be made in any action under this
section as an incident to obtaining an order for support. An action
for support or parentage pursuant to this section shall not be
delayed or stayed because of the pendency of any other action between
the parties.
(b) Judgment in an action brought pursuant to this section, and in
an action brought pursuant to Section 17402, if at issue, may be
rendered pursuant to a noticed motion, that shall inform the
defendant that in order to exercise his or her right to trial, he or
she must appear at the hearing on the motion.
If the defendant appears at the hearing on the motion, the court
shall inquire of the defendant if he or she desires to subpoena
evidence and witnesses, if parentage is at issue and genetic tests
have not already been conducted whether he or she desires genetic
tests, and if he or she desires a trial. If the defendant's answer
is in the affirmative, a continuance shall be granted to allow the
defendant to exercise those rights. A continuance shall not postpone
the hearing to more than 90 days from the date of service of the
motion. If a continuance is granted, the court may make an order for
temporary support without prejudice to the right of the court to
make an order for temporary support as otherwise allowed by law.
(c) In any action to enforce a spousal support order the action
may be pled in the name of the county in the same manner as an action
to establish a child support obligation. The same restrictions on
joinder of actions, coordination of actions, cross-complaints, and
delay because of the pendency of any other action as relates to
actions to establish a child support obligation shall also apply to
actions to enforce a spousal support order.
(d) Nothing contained in this section shall be construed to
prevent the parties from bringing an independent action under other
provisions of this code and litigating the issues of support,
custody, visitation, or protective orders. In that event, any
support, custody, visitation, or protective order issued by the court
in an action pursuant to this section shall be filed in the action
commenced under the other provisions of this code and shall continue
in effect until modified by a subsequent order of the court. To the
extent that the orders conflict, the court order last issued shall
supersede all other orders and be binding upon all parties in that
action.
(e) (1) After a support order, including a temporary support order
and an order for medical support only, has been entered in an action
brought pursuant to this section, the parent who has requested or is
receiving support enforcement services of the local child support
agency shall become a party to the action brought pursuant to this
section, only in the manner and to the extent provided by this
section, and only for the purposes allowed by this section.
(2) Notice of the parent's status as a party shall be given to the
parent by the local child support agency in conjunction with the
notice required by subdivision (e) of Section 17406. The complaint
shall contain this notice. Service of the complaint on the parent in
compliance with Section 1013 of the Code of Civil Procedure, or as
otherwise provided by law, shall constitute compliance with this
section. In all actions commenced under the procedures and forms in
effect on or before December 31, 1996, the parent who has requested
or is receiving support enforcement services of the local child
support agency shall not become a party to the action until he or she
is joined as a party pursuant to an ex parte application or noticed
motion for joinder filed by the local child support agency or a
noticed motion filed by either parent. The local child support
agency shall serve a copy of any order for joinder of a parent
obtained by the local child support agency's application on both
parents in compliance with Section 1013 of the Code of Civil
Procedure.
(3) The parent who has requested or is receiving support
enforcement services of the local child support agency is a party to
an action brought under this section for issues relating to the
support, custody, and visitation of a child, and for restraining
orders, and for no other purpose. The local child support agency
shall not be required to serve or receive service of papers,
pleadings, or documents, or participate in, or attend any hearing or
proceeding relating to issues of custody or visitation, except as
otherwise required by law. Orders concerning custody and visitation
may be made in an action pursuant to this subdivision only if orders
concerning custody and visitation have not been previously made by a
court of competent jurisdiction in this state or another state and
the court has jurisdiction and is the proper venue for custody and
visitation determinations. All issues regarding custody and
visitation shall be heard and resolved in the manner provided by this
code. Except as otherwise provided by law, the local child support
agency shall control support and parentage litigation brought
pursuant to this section, and the manner, method, and procedures used
in establishing parentage and in establishing and enforcing support
obligations unless and until the parent who requested or is receiving
support enforcement services has requested in writing that the local
child support agency close his or her case and the case has been
closed in accordance with state and federal regulation or policy.
(f) (1) A parent who has requested or is receiving support
enforcement services of the local child support agency may take
independent action to modify a support order made pursuant to this
section while support enforcement services are being provided by the
local child support agency. The parent shall serve the local child
support agency with notice of any action filed to modify the support
order and provide the local child support agency with a copy of the
modified order within 15 calendar days after the date the order is
issued.
(2) A parent who has requested or is receiving support enforcement
services of the local child support agency may take independent
action to enforce a support order made pursuant to this section while
support enforcement services are being provided by the local child
support agency with the written consent of the local child support
agency. At least 30 days prior to filing an independent
enforcement action, the parent
shall provide the local child support agency with written notice of
the parent's intent to file an enforcement action that includes a
description of the type of enforcement action the parent intends to
file. Within 30 days of receiving the notice, the local child
support agency shall either provide written consent for the parent to
proceed with the independent enforcement action or notify the parent
that the local child support agency objects to the parent filing the
proposed independent enforcement action. The local child support
agency may object only if the local child support agency is currently
using an administrative or judicial method to enforce the support
obligation or if the proposed independent enforcement action would
interfere with an investigation being conducted by the local child
support agency. If the local child support agency does not respond
to the parent's written notice within 30 days, the local child
support agency shall be deemed to have given consent.
(3) The court shall order that all payments of support shall be
made to the local child support agency in any action filed under this
section by the parent who has requested, or is receiving, support
enforcement services of the local child support agency unless support
enforcement services have been terminated by the local child support
agency by case closure as provided by state and federal law. Any
order obtained by a parent prior to support enforcement services
being terminated in which the local child support agency did not
receive proper notice pursuant to this section shall be voidable upon
the motion of the local child support agency.
(g) Any notice from the local child support agency requesting a
meeting with the support obligor for any purpose authorized under
this section shall contain a statement advising the support obligor
of his or her right to have an attorney present at the meeting.
(h) For the purpose of this section, "a parent who is receiving
support enforcement services" includes a parent who has assigned his
or her rights to support pursuant to Section 11477 of the Welfare and
Institutions Code.
(i) The Judicial Council shall develop forms to implement this
section.
SEC. 15. Section 17406 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17406. (a) In all actions involving paternity or support,
including, but not limited to, other proceedings under this code, and
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code, the local child support agency and the Attorney
General represent the public interest in establishing, modifying, and
enforcing support obligations. No attorney-client relationship shall
be deemed to have been created between the local child support
agency or Attorney General and any person by virtue of the action of
the local child support agency or the Attorney General in carrying
out these statutory duties.
(b) Subdivision (a) is declaratory of existing law.
(c) In all requests for services of the local child support agency
or Attorney General pursuant to Section 17400 relating to actions
involving paternity or support, not later than the same day an
individual makes a request for these services in person, and not
later than five working days after either (1) a case is referred for
services from the county welfare department, (2) receipt of a request
by mail for an application for services, or (3) an individual makes
a request for services by telephone, the local child support agency
or Attorney General shall give notice to the individual requesting
services or on whose behalf services have been requested that the
local child support agency or Attorney General does not represent the
individual or the children who are the subject of the case, that no
attorney-client relationship exists between the local child support
agency or Attorney General and those persons, and that no such
representation or relationship shall arise if the local child support
agency or Attorney General provides the services requested. Notice
shall be in bold print and in plain English and shall be translated
into the language understandable by the recipient when reasonable.
The notice shall include the advice that the absence of an
attorney-client relationship means that communications from the
recipient are not privileged and that the local child support agency
or Attorney General may provide support enforcement services to the
other parent in the future.
(d) The local child support agency or Attorney General shall give
the notice required pursuant to subdivision (c) to all recipients of
services under Section 17400 who have not otherwise been provided
that notice, not later than the date of the next annual notice
required under Section 11476.2 of the Welfare and Institutions Code.
This notice shall include notification to the recipient of services
under Section 17400 that the recipient may inspect the clerk's file
at the county clerk's office, and that, upon request, the local child
support agency, or, if appropriate, the Attorney General, will
furnish a copy of the most recent order entered in the case.
(e) The local child support agency or, if appropriate, the
Attorney General shall serve a copy of the complaint for paternity or
support, or both, on recipients of support services under Section
17400, as specified in paragraph (2) of subdivision (e) of Section
17404. A notice shall accompany the complaint that informs the
recipient that the local child support agency or Attorney General may
enter into a stipulated order resolving the complaint, and that the
recipient shall assist the prosecuting attorney, by sending all
information on the noncustodial parent's earnings and assets to the
prosecuting attorney.
(f) (1) The local child support agency or Attorney General shall
provide written notice to recipients of services under Section 17400
of the initial date and time, and purpose of every hearing in a civil
action for paternity or support. The notice shall include the
following language:
IMPORTANT NOTICE
It may be important that you attend the hearing. The local child
support agency does not represent you or your children. You may
have information about the noncustodial parent, such as information
about his or her income or assets, or your need for support that will
not be presented to the court unless you attend the hearing. You
have the right to be heard in court and tell the court what you think
the court should do with the child support order.
If you have a court order for support that arose as part of your
divorce, or as part of an action to establish paternity or otherwise,
this hearing could change your rights or your children's rights to
support. You have the right to attend the hearing and, the right, to
be heard.
If you would like to attend the hearing and be told about any changes
to the hearing date or time, notify this office by ____. The local
child support agency or Attorney General will then have to tell you
about any changes to the hearing date or time.
(2) The notice shall state the purpose of the hearing or be
attached to the motion or other pleading which caused the hearing to
be scheduled.
(3) The notice shall be provided separate from all other material
and shall be in at least 14-point type. The failure of the local
child support agency or Attorney General to comply with this
subdivision shall not affect the validity of any order.
(4) The notice shall be provided not later than seven calendar
days prior to the hearing, or, if the local child support agency or
Attorney General receives notice of the hearing less than seven days
prior to the hearing, within two days of the receipt by the local
child support agency or Attorney General of the notice of the
hearing.
(5) The local child support agency or Attorney General shall, in
order to implement this subdivision, make reasonable efforts to
ensure that the local child support agency or Attorney General has
current addresses for recipients of support enforcement services.
(g) The local child support agency or Attorney General shall give
notice to recipients of services under Section 17400 of every order
obtained by the local child support agency or Attorney General that
establishes or modifies the support obligation for the recipient or
the children who are the subject of the order, by sending a copy of
the order to the recipient. The notice shall be made within the time
specified by federal law after the order has been filed. The local
child support agency or Attorney General shall also give notice to
these recipients of every order obtained in any other jurisdiction,
that establishes or modifies the support obligation for the recipient
or the children who are the subject of the order, and which is
received by the local child support agency or Attorney General, by
sending a copy of the order to the recipient within the timeframe
specified by federal law after the local child support agency or
Attorney General has received a copy of the order. In any action
enforced under Chapter 6 (commencing with Section 4900) of Part 5 of
Division 9, the notice shall be made in compliance with the
requirements of that chapter. The failure of the local child support
agency or Attorney General to comply with this subdivision shall not
affect the validity of any order.
(h) The local child support agency or Attorney General shall give
notice to the noncustodial parent against whom a civil action is
filed that the local child support agency or Attorney General is not
the attorney representing any individual, including, but not limited
to, the custodial parent, the child, or the noncustodial parent.
(i) Nothing in this section shall be construed to preclude any
person who is receiving services under Section 17400 from filing and
prosecuting an independent action to establish, modify, and enforce
an order for current support on behalf of himself or herself or a
child if that person is not receiving public assistance.
(j) A person who is receiving services under Section 17400 but who
is not currently receiving public assistance on his or her own
behalf or on behalf of a child shall be asked to execute, or consent
to, any stipulation establishing or modifying a support order in any
action in which that person is named as a party, before the
stipulation is filed. The local child support agency or Attorney
General shall not submit to the court for approval a stipulation to
establish or modify a support order in the action without first
obtaining the signatures of all parties to the action, their
attorneys of record, or persons authorized to act on their behalf.
Any stipulation approved by the court in violation of this
subdivision shall be void.
(k) The local child support agency or Attorney General shall not
enter into a stipulation that reduces the amount of past due support,
including interest and penalties accrued pursuant to an order of
current support, on behalf of a person who is receiving support
enforcement services under Section 17400 and who is owed support
arrearages that exceed unreimbursed public assistance paid to the
recipient of the support enforcement services, without first
obtaining the consent of the person who is receiving services under
Section 17400 on his or her own behalf or on behalf of the child.
(l) The notices required in this section shall be provided in the
following manner:
(1) In all cases in which the person receiving services under
Section 17400 resides in California, notice shall be provided by
mailing the item by first-class mail to the last known address of, or
personally delivering the item to, that person.
(2) In all actions enforced under Chapter 6 (commencing with
Section 4900) of Part 5 of Division 9, unless otherwise specified,
notice shall be provided by mailing the item by first-class mail to
the initiating court.
(m) Notwithstanding any other provision of this section, the
notices provided for pursuant to subdivisions (c) to (g), inclusive,
shall not be required in foster care cases.
SEC. 16. Section 17415 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17415. (a) It shall be the duty of the county welfare department
to refer all cases where a parent is absent from the home, or where
the parents are unmarried and parentage has not been established by
the completion and filing of a voluntary declaration of paternity
pursuant to Section 7573 or a court of competent jurisdiction, to the
local child support agency immediately at the time the application
for public assistance, including Medi-Cal benefits, or certificate of
eligibility, is signed by the applicant or recipient, except as
provided in Section 11477.04 of the Welfare and Institutions Code.
If an applicant is found to be ineligible, the applicant shall be
notified in writing that the referral of the case to the local child
support agency may be terminated at the applicant's request. The
county welfare department shall cooperate with the local child
support agency and shall make available to him or her all pertinent
information as provided in Section 17505.
(b) Upon referral from the county welfare department, the local
child support agency shall investigate the question of nonsupport or
paternity and shall take all steps necessary to obtain child support
for the needy child, enforce spousal support as part of the state
plan under Section 17604, and determine paternity in the case of a
child born out of wedlock. Upon the advice of the county welfare
department that a child is being considered for adoption, the local
child support agency shall delay the investigation and other actions
with respect to the case until advised that the adoption is no longer
under consideration. The granting of public assistance or Medi-Cal
benefits to an applicant shall not be delayed or contingent upon
investigation by the local child support agency.
(c) In cases where Medi-Cal benefits are the only assistance
provided, the local child support agency shall provide child and
spousal support services unless the recipient of the services
notifies the local child support agency that only services related to
securing health insurance benefits are requested.
(d) Where a court order has been obtained, any contractual
agreement for support between the local child support agency or the
county welfare department and the noncustodial parent shall be deemed
null and void to the extent that it is not consistent with the court
order.
(e) Whenever a family which has been receiving public assistance,
including Medi-Cal, ceases to receive assistance, including Medi-Cal,
the local child support agency shall, to the extent required by
federal regulations, continue to enforce support payments from the
noncustodial parent until such time as the individual on whose behalf
the enforcement efforts are made sends written notice to the local
child support agency requesting that enforcement services be
discontinued.
(f) The local child support agency shall, where appropriate,
utilize reciprocal arrangements adopted with other states in securing
support from an absent parent. In individual cases where
utilization of reciprocal arrangements has proven ineffective, the
local child support agency may forward to the Attorney General a
request to utilize federal courts in order to obtain or enforce
orders for child or spousal support. If reasonable efforts to
collect amounts assigned pursuant to Section 11477 of the Welfare and
Institutions Code have failed, the local child support agency may
request that the case be forwarded to the Treasury Department for
collection in accordance with federal regulations. The Attorney
General, where appropriate, shall forward these requests to the
Secretary of Health and Human Services, or a designated
representative.
SEC. 17. Section 17430 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17430. (a) Notwithstanding any other provision of law, in any
action filed by the local child support agency pursuant to Section
17400, 17402, or 17404, a judgment shall be entered if the defendant
fails to file an answer or otherwise appear in the action within 30
days of service of process upon the defendant.
(b) If the defendant fails to file an answer with the court within
30 days of having been served as specified in subdivision (c) of
Section 17400, or at any time before the default judgment is entered,
the proposed judgment shall become effective unless the local child
support agency has filed a declaration and amended proposed judgment
pursuant to subdivision (c).
(c) If the local child support agency receives additional
financial information within 30 days of service of the complaint and
proposed judgment on the defendant and the additional information
would result in a support order that is different from the amount in
the proposed judgment, the local child support agency shall file a
declaration setting forth the additional information and an amended
proposed judgment. The declaration and amended proposed judgment
shall be served on the defendant in compliance with Section 1013 of
the Code of Civil Procedure or otherwise as provided by law. The
defendant's time to answer or otherwise appear shall be extended to
30 days from the date of service of the declaration and amended
proposed judgment.
(d) Upon entry of the judgment, the clerk of the court shall mail
by first-class mail, postage prepaid, a notice to the defendant that
his or her default has been taken and that the proposed judgment has
been entered.
SEC. 18. Section 17500 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17500. (a) In carrying out its obligations under Title IV-D of
the Social Security Act (42 U.S.C. Sec. 651 et seq.), the local child
support agency shall have the responsibility for promptly and
effectively collecting and enforcing child support obligations.
(b) The local child support agency is the public agency
responsible for administering wage withholding for the purposes of
Title IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
To enhance the promptness, efficiency, and effectiveness of wage
withholding, the Franchise Tax Board shall issue wage withholding
notices for current support, under the circumstances described in
Section 17501 and consistent with Section 5246, in the name and on
behalf of the local child support agency. Any information obtained
by the Franchise Tax Board to administer Section 19271 of the Revenue
and Taxation Code or any information sources available to the local
child support agency under any federal or state law may be used by
the Franchise Tax Board for this purpose.
SEC. 19. Section 17501 is added to the Family Code, to read:
17501. (a) Notwithstanding any other provision of law, on and
after January 1, 2000, pursuant to a cooperative agreement entered
into between the department and the Franchise Tax Board, the
Franchise Tax Board shall have responsibility for accounts receivable
management of child support delinquencies in support of the child
support activities of the Department of Child Support Services, local
child support agencies, and subject to all federal and state laws,
regulations, and directives relating to child support programs
prescribed by Title IV-D of the federal Social Security Act.
(b) For purposes of this section, "child support delinquency"
means an arrearage or otherwise past due amount that accrues when an
obligor fails to make any court-ordered support payment when due,
which is more than 60 days past due, and the aggregate amount of
which exceeds one hundred dollars ($100).
(c) For purposes of this section, the responsibility of the
Franchise Tax Board for "accounts receivable management" shall be in
accordance with federal mandates under Title IV-D of the Social
Security Act, state mandates, and regulations adopted by the
department, and shall include the following:
(1) A management structure that implements policy and procedures
consistent with all applicable federal and state mandates and
regulations and control systems that result in compliance with these
policies and procedures.
(2) Information technology applications, including hardware and
software, necessary to:
(A) Route accounts, based on decision rules, through a sequence of
actions most likely to result in collection of the account.
(B) Gather asset information from third-party sources including
employers, financial institutions, credit bureaus, and parent locator
services and take mandated actions or other actions that can be
taken by a computer system in the most appropriate sequence for
recovering child support delinquency payments.
(3) Personnel systems necessary to hire and train staff as well as
to organize and direct their work for effective and efficient
recovery of child support delinquency payments.
(4) Customer service systems including telephone, written, and
other communication mechanisms giving delinquent obligors methods to
contact the Franchise Tax Board to resolve questions and other issues
arising solely from the Franchise Tax Board's actions on their
delinquent account.
(5) Actions on any child support delinquency account transferred
to the Franchise Tax Board taken by computer or by staff as necessary
for recovering delinquent child support payments as follows:
(A) Issuing and modifying earnings assignment orders in the name
and on behalf of the local child support agency, pursuant to Section
5246, as necessary in order for the Franchise Tax Board to take
collection actions to recover delinquent child support payments. In
no event shall any modification to a notice of assignment reduce the
current support amount to be withheld below the amount ordered by the
court.
(B) Working with obligors and negotiating a payment schedule to
the extent allowed by state and federal law and in accordance with
regulations established by the department.
(C) Consulting information sources and third parties to locate
obligors and their assets.
(D) Coordinating with the counties and the department for
withholding issuance, renewal, or suspension of licenses or passports
as the process relates to delinquent child support obligors.
(E) Filing bankruptcy or estate claims, and filing liens in civil
actions.
(F) Issuing levies.
(G) Issuing warrants to direct a levying officer to seize and sell
property of the obligor or other actions that may be taken by a
levying officer.
(H) Monitoring paying accounts and keeping local child support
agencies informed as to any payments received by the Franchise Tax
Board and status thereof.
(I) Coordinating with the counties to refer obligors to the county
when a court action may be an appropriate course of action as so
deemed by the county.
(J) Taking any other mandated actions directed by the department
necessary for the effective and efficient recovery of delinquent
child support payments.
(d) (1) The local child support agency shall transfer child
support delinquencies to the Franchise Tax Board in the form and
manner and at the time prescribed by the Franchise Tax Board pursuant
to paragraph (2) of subdivision (a) of Section 19271 of the Revenue
and Taxation Code.
(2) The department shall adopt regulations to establish a process
pursuant to which a local child support agency may request and shall
be allowed to rescind or otherwise recall the transfer of an account
from the Franchise Tax Board under limited circumstances specified by
the department.
(e) If a child support delinquency exists at the time a case is
opened by the local child support agency, the responsibility for the
enforcement and collection of the delinquency shall be transferred to
the Franchise Tax Board no later than 30 days after receipt of the
case by the local child support agency. Any reference to the local
child support agency in connection with accounts receivable
management of child support delinquencies shall be deemed a reference
to the Franchise Tax Board.
(f) After a local child support agency transfers a delinquent
child support obligation to the Franchise Tax Board pursuant to this
section, the local child support agency shall continue to facilitate
resolution of the child support obligation in coordination with the
Franchise Tax Board. This transfer of responsibility for accounts
receivable management is in support of the local child support agency
solely for the administration of the enforcement and collection of
child support delinquencies and shall not in any manner transfer any
responsibilities the local child support agency may have and any
responsibilities the Department of Child Support Services may have as
the Title IV-D agency. A child support delinquency, as specified in
this section, shall be enforced and collected by the Franchise Tax
Board in accordance with subdivision (c) and pursuant to Section
19271 of the Revenue and Taxation Code. The local child support
agency shall be responsible for case management as described in
subdivision (g).
(g) After a local child support agency transfers a case to the
Franchise Tax Board for accounts receivable management, the local
child support agency shall be responsible for providing case
management services, which, only for purposes of cases transferred to
the Franchise Tax Board includes, but is not limited to:
(1) Responding to communications from both custodial parents and
noncustodial parents about case status, payment status, and other
questions, and facilitating communication between the custodial or
noncustodial parent and the Franchise Tax Board, as appropriate.
(2) Establishing, maintaining, and updating as appropriate case
information relating to case status, account information, payment
history, and other relevant case specific information.
(3) Responding to requests from custodial and noncustodial parents
for modification of a support obligation pursuant to state and
federal regulations, notifying the Franchise Tax Board of actions
taken to modify a support obligation and, where appropriate,
requesting the case be transferred back to the local child support
agency from the Franchise Tax Board in accordance with subdivision
(d).
(4) Pursuing appropriate enforcement mechanisms, within the
timeframes and regulations prescribed by the department, which may
include:
(A) Submittal of the delinquent case to the Internal Revenue
Service Tax Refund Intercept Program.
(B) Submittal of the delinquent case to the Franchise Tax
Board for the tax refund intercept program.
(C) Submittal of the delinquent case to the State License Match
Program for suspension or revocation of licenses.
(D) Filing liens against a civil settlement in cases in which the
noncustodial parent is a party.
(E) Referral of the delinquent case to the district attorney for
criminal prosecution.
(F) Filing orders to show cause for civil contempt.
(G) Filing motions for an order of examination.
(H) Referral of delinquent cases to the United States Attorney for
criminal prosecution in interstate matters.
(5) Any other activities prescribed by the department.
SEC. 20. Section 17600 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17600. (a) The Legislature finds and declares all of the
following:
(1) The Legislative Analyst has found that county child support
enforcement programs provide a net increase in revenues to the state.
(2) The state has a fiscal interest in ensuring that county child
support enforcement programs perform efficiently.
(3) The state does not provide information to counties on child
support enforcement programs, based on common denominators that would
facilitate comparison of program performance.
(4) Providing this information would allow county officials to
monitor program performance and to make appropriate modifications to
improve program efficiency.
(5) This information is required for effective management of the
child support program.
(b) (1) Except as provided in paragraph (2), commencing with the
1998-99 fiscal year, and for each fiscal year thereafter, each county
that is participating in the state incentive program described in
Section 17704 shall provide to the department, and the department
shall compile from this county child support information, quarterly
and annually, all of the following performance-based data, as
established by the federal incentive funding system, provided that
the department may revise the data required by this paragraph in
order to conform to the final federal incentive system data
definitions:
(A) One of the following data relating to paternity establishment,
as required by the department, provided that the department shall
require all counties to report on the same measurement:
(i) The total number of children in the caseload governed by
Subtitle D (commencing with Section 450) of Title IV of the federal
Social Security Act (42 U.S.C. Sec. 650 et seq.), as of the end of
the federal fiscal year, who were born to unmarried parents for whom
paternity was established or acknowledged, and the total number of
children in that caseload, as of the end of the preceding federal
fiscal year, who were born to unmarried parents.
(ii) The total number of minor children who were born in the state
to unmarried parents for whom paternity was established or
acknowledged during a federal fiscal year, and the total number of
children in the state born to unmarried parents during the preceding
federal fiscal year.
(B) The number of cases governed by Subtitle D (commencing with
Section 450) of Title IV of the federal Social Security Act (42
U.S.C. Sec. 650 et seq.) during the federal fiscal year and the total
number of those cases with support orders.
(C) The total dollars collected during the federal fiscal year for
current support in cases governed by Subtitle D (commencing with
Section 450) of Title IV of the federal Social Security Act (42
U.S.C. Sec. 650 et seq.) and the total number of dollars owing for
current support during that federal fiscal year in cases governed by
those provisions.
(D) The total number of cases for the federal fiscal year governed
by Subtitle D (commencing with Section 450) of Title IV of the
federal Social Security Act (42 U.S.C. Sec. 650 et seq.) in which
payment was being made toward child support arrearages and the total
number of cases for that fiscal year governed by these federal
provisions that had child support arrearages.
(E) The total number of dollars collected and expended during a
federal fiscal year in cases governed by Subtitle D (commencing with
Section 450) of Title IV of the federal Social Security Act (42
U.S.C. Sec. 650 et seq.).
(F) The total amount of child support dollars collected during a
federal fiscal year, and, if and when required by federal law, the
amount of these collections broken down by collections distributed on
behalf of current recipients of federal Temporary Assistance for
Needy Families block grant funds or federal foster care funds, on
behalf of former recipients of federal Temporary Assistance for Needy
Families block grant funds or federal foster care funds, or on
behalf of persons who have never been recipients of these federal
funds.
(2) A county may apply for an exemption from any or all of the
reporting requirements of paragraph (1) for the 1998-99 state fiscal
year or any quarter of that fiscal year, as well as for the first
quarter of the 1999-2000 fiscal year, by submitting an application
for the exemption to the department at least three months prior to
the commencement of the fiscal year or quarter for which the
exemption is sought. A county shall provide a separate justification
for each data element under paragraph (1) for which the county is
seeking an exemption and the cost to the county of providing the
data. The department may not grant an exemption for more than one
year. The department may grant a single exemption only if both of
the following conditions are met:
(A) The county cannot compile the data being sought through its
existing automated system or systems.
(B) The county cannot compile the data being sought through manual
means or through an enhanced automated system or systems without
significantly harming the child support collection efforts of the
county.
(c) Except as provided in paragraph (6), before implementation of
the statewide automated system, in addition to the information
required by subdivision (b), the department shall collect, on a
monthly basis, from each county that is participating in the state
incentive program described in Section 17704, information on the
local child support agency beginning with the 1998-99 fiscal year,
and for each subsequent fiscal year, and shall report quarterly and
annually on all of the following measurements:
(1) For each of the following support collection categories, the
number of cases with support collected shall include only the number
of cases actually receiving a collection, not the number of payments
received. For purposes of determining the number of cases with an
order of current support and the number of cases in which current
support is being collected, cases with a medical support order that
do not have an order for current support shall not be counted.
(A) The number of cases with an order for current support.
(B) The number of cases with collections of current support.
(C) The number of cases with an order for arrears.
(D) The number of cases with arrears collections.
(2) The number of alleged fathers or obligors who were served with
a summons and complaint to establish paternity or a support order.
In order to be counted under this paragraph, the alleged father or
obligor shall be successfully served with process. An alleged father
shall be counted under this paragraph only once if he is served with
process simultaneously for both a paternity and a support order
proceeding for the same child or children. For purposes of this
paragraph, a support order shall include a medical support order.
(3) The number of children requiring paternity establishment and
the number of children for whom paternity has been established during
the period. Paternity may only be established once for each child.
Any child for whom paternity is not at issue shall not be counted in
the number of children for whom paternity has been established. For
this purpose, paternity is not at issue if the parents were married
and neither parent challenges paternity or a voluntary paternity
declaration has been executed by the parents prior to the local child
support agency obtaining the case and neither parent challenges
paternity.
(4) The number of cases requiring that a support order be
established and the number of cases that had a support order
established during the period. A support order shall be counted as
established only when the appropriate court has issued an order for
child support, including an order for temporary child support, or an
order for medical support.
(5) The total cost of administering the local child support
agency, including the federal, state, and county share of the costs,
and the federal and state incentives received by each county. The
total cost of administering the program shall be broken down by the
following:
(A) The direct costs of the program, broken down further by total
employee salaries and benefits, a list of the number of employees
broken down into at least the following categories: attorneys,
administrators, caseworkers, investigators, and clerical support;
contractor costs; space charges; and payments to other county
agencies. Employee salaries and numbers need only be reported in the
annual report.
(B) The indirect costs, showing all overhead charges.
(6) A county may apply for an exemption from any or all of the
reporting requirements of this subdivision for a fiscal year by
submitting an application for the exemption to the department at
least three months prior to the commencement of the fiscal year or
quarter for which the exemption is sought. A county shall provide a
separate justification for each data element under this subdivision
for which the county is seeking an exemption and the cost to the
county of providing the data. The department may not grant an
exemption for more than one year. The department may grant a single
exemption only if both of the following conditions are met:
(A) The county cannot compile the data being sought through its
existing automated system or systems.
(B) The county cannot compile the data being sought through manual
means or through an enhanced automated system or systems without
significantly harming the child support collection efforts of the
county.
(d) After implementation of the statewide automated system, in
addition to the information required by subdivision (b), the
Department of Child Support Services shall collect, on a monthly
basis, from each county that is participating in the state incentive
program described in Section 17704, information on the county child
support enforcement program beginning with the 1998-99 fiscal year or
a later fiscal year, as appropriate, and for each subsequent fiscal
year, and shall report quarterly and annually on all of the following
measurements:
(1) For each of the following support collection categories, the
number of cases with support collected shall include only the number
of cases actually receiving a collection, not the number of payments
received.
(A) (i) The number of cases with collections for current support.
(ii) The number of cases with arrears collections only.
(iii) The number of cases with both current support and arrears
collections.
(B) For cases with current support only due.
(i) The number of cases in which the full amount of current
support owed was collected.
(ii) The number of cases in which some amount of current support,
but less than the full amount of support owed, was collected.
(iii) The number of cases in which no amount of support owed was
collected.
(C) For cases in which arrears only were owed:
(i) The number of cases in which all arrears owed were collected.
(ii) The number of cases in which some amount of arrears, but less
than the full amount of arrears owed, were collected.
(iii) The number of cases in which no amount of arrears owed were
collected.
(D) For cases in which both current support and arrears are owed:
(i) The number of cases in which the full amount of current
support and arrears owed were collected.
(ii) The number of cases in which some amount of current support
and arrears, but less than the full amount of support owed, were
collected.
(iii) The number of cases in which no amount of support owed was
collected.
(E) The total number of cases in which an amount was due for
current support only.
(F) The total number of cases in which an amount was due for both
current support and arrears.
(G) The total number of cases in which an amount was due for
arrears only.
(H) For cases with current support due, the number of cases
without orders for medical support and the number of cases with an
order for medical support.
(2) The number of alleged fathers or obligors who were served with
a summons and complaint to establish paternity or a support order,
and the number of alleged fathers or obligors for whom it is required
that paternity or a support order be established. In order to be
counted under this paragraph, the alleged father or obligor shall be
successfully served with process. An alleged father shall be counted
under this paragraph only once if he is served with process
simultaneously for both a paternity and a support order proceeding
for the same child or children. For purposes of this paragraph, a
support order shall include a medical support order.
(3) The number of new asset seizures or successful initial
collections on a wage assignment for purposes of child support
collection. For purposes of this paragraph, a collection made on a
wage assignment shall be counted only once for each wage assignment
issued.
(4) The number of children requiring paternity establishment and
the number of children for whom paternity has been established during
the period. Paternity may only be established once for each child.
Any child for whom paternity is not at issue shall not be counted in
the number of children for whom paternity has been established. For
this purpose, paternity is not at issue if the parents were married
and neither parent challenges paternity or a voluntary paternity
declaration has been executed by the parents prior to the local child
support agency obtaining the case and neither parent challenges
paternity.
(5) The number of cases requiring that a support order be
established and the number of cases that had a support order
established during the period. A support order shall be counted as
established only when the appropriate court has issued an order for
child support, including an order for temporary child support, or an
order for medical support.
(6) The total cost of administering the local child support
agency, including the federal, state, and county share of the costs
and the federal and state incentives received by each county. The
total cost of administering the program shall be broken down by the
following:
(A) The direct costs of the program, broken down further by total
employee salaries and benefits, a list of the number of employees
broken down into at least the following categories: attorneys,
administrators, caseworkers, investigators, and clerical support;
contractor costs; space charges; and payments to other county
agencies. Employee salaries and numbers need only be reported in the
annual report.
(B) The indirect costs, showing all overhead charges.
(7) The total child support collections due, broken down by
current support, interest on arrears, and principal, and the total
child support collections that have been collected, broken down by
current support, interest on arrears, and principal.
(8) The actual case status for all cases in the county child
support enforcement program. Each case shall be reported in one case
status only. If a case falls within more than one status category,
it shall be counted in the first status category of the list set
forth below in which it qualifies. The following shall be the case
status choices:
(A) No support order, location of obligor parent required.
(B) No support order, alleged obligor parent located and paternity
required.
(C) No support order, location and paternity not at issue but
support order must be established.
(D) Support order established with current support obligation and
obligor is in compliance with support obligation.
(E) Support order established with current support obligation,
obligor is in arrears and location of obligor is necessary.
(F) Support order established with current support obligation,
obligor is in arrears, and location of obligor's assets is necessary.
(G) Support order established with current support obligation,
obligor is in arrears and no location of obligor or obligor's assets
is necessary.
(H) Support order established with current support obligation,
obligor is in arrears, the obligor is located, but the local child
support agency has established satisfactorily that the obligor has no
income or assets and no ability to earn.
(I) Support order established with current support obligation and
arrears, obligor is paying the current support and is paying some or
all of the interest on the arrears, but is paying no principal.
(J) Support order established for arrears only and obligor is
current in repayment obligation.
(K) Support order established for arrears only, obligor is not
current in arrears repayment schedule and location of obligor is
required.
(L) Support order established for arrears only, obligor is not
current in arrears repayment schedule and location of obligor's
assets is required.
(M) Support order established for arrears only, obligor is not
current in arrears repayment schedule, and no location of obligor or
obligor's assets is required.
(N) Support order established for arrears only, obligor is not
current in arrears repayment, and the obligor is located, but the
local child support agency has established satisfactorily that the
obligor has no income or assets and no ability to earn.
(O) Support order established for arrears only and obligor is
repaying some or all of the interest, but no principal.
(P) Other, if necessary, to be defined in the regulations
promulgated under subdivision (e).
(e) Upon implementation of the statewide automated system, or at
the time that the department determines that compliance with this
subdivision is possible, whichever is earlier, each county that is
participating in the state incentive program described in Section
17704 shall collect and report, and the department shall compile for
each participating county, information on the county child support
program in each fiscal year, all of the following data, in a manner
that facilitates comparison of counties and the entire state, except
that the department may eliminate or modify the requirement to report
any data mandated to be reported pursuant to this subdivision if the
department determines that the local child support agencies are
unable to accurately collect and report the information or that
collecting and reporting of the data by the local child support
agencies will be onerous:
(1) The number of alleged obligors or fathers who receive CalWORKs
benefits, food stamp benefits, and Medi-Cal benefits.
(2) The number of obligors or alleged fathers who are in state
prison or county jail.
(3) The number of obligors or alleged fathers who do not have a
social security number.
(4) The number of obligors or alleged fathers whose address is
unknown.
(5) The number of obligors or alleged fathers whose complete name,
consisting of at least a first and last name, is not known by the
local child support agency.
(6) The number of obligors or alleged fathers who filed a tax
return with the Franchise Tax Board in the last year for which a data
match is available.
(7) The number of obligors or alleged fathers who have no income
reported to the Employment Development Department during the third
quarter of the fiscal year.
(8) The number of obligors or alleged fathers who have income
between one dollar ($1) and five hundred dollars ($500) reported to
the Employment Development Department during the third quarter of the
fiscal year.
(9) The number of obligors or alleged fathers who have income
between five hundred one dollars ($501) and one thousand five hundred
dollars ($1,500) reported to the Employment Development Department
during the third quarter of the fiscal year.
(10) The number of obligors or alleged fathers who have income
between one thousand five hundred one dollars ($1,501) and two
thousand five hundred dollars ($2,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(11) The number of obligors or alleged fathers who have income
between two thousand five hundred one dollars ($2,501) and three
thousand five hundred dollars ($3,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(12) The number of obligors or alleged fathers who have income
between three thousand five hundred one dollars ($3,501) and four
thousand five hundred dollars ($4,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(13) The number of obligors or alleged fathers who have income
between four thousand five hundred one dollars ($4,501) and five
thousand five hundred dollars ($5,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(14) The number of obligors or alleged fathers who have income
between five thousand five hundred one dollars ($5,501) and six
thousand five hundred dollars ($6,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(15) The number of obligors or alleged fathers who have income
between six thousand five hundred one dollars ($6,501) and seven
thousand five hundred dollars ($7,500) reported to the Employment
Development Department during the third quarter of the fiscal year.
(16) The number of obligors or alleged fathers who have income
between seven thousand five hundred one dollars ($7,501) and nine
thousand dollars ($9,000) reported to the Employment Development
Department during the third quarter of the fiscal year.
(17) The number of obligors or alleged fathers who have income
exceeding nine thousand dollars ($9,000) reported to the Employment
Development Department during the third quarter of the fiscal year.
(18) The number of obligors or alleged fathers who have two or
more employers reporting earned income to the Employment Development
Department during the third quarter of the fiscal year.
(19) The number of obligors or alleged fathers who receive
unemployment benefits during the third quarter of the fiscal year.
(20) The number of obligors or alleged fathers who receive state
disability benefits during the third quarter of the fiscal year.
(21) The number of obligors or alleged fathers who receive workers'
compensation benefits during the third quarter of the fiscal year.
(22) The number of obligors or alleged fathers who receive Social
Security Disability Insurance benefits during the third quarter of
the fiscal year.
(23) The number of obligors or alleged fathers who receive
Supplemental Security Income/State Supplementary Program for the
Aged, Blind and Disabled benefits during the third quarter of the
fiscal year.
(f) The department, in consultation with the Legislative Analyst's
office, the Judicial Council, the California Family Support Council,
and child support advocates, shall develop regulations to ensure
that all local child support agencies report the data required by
this section uniformly and consistently throughout California.
(g) The department shall provide the information for all
participating counties for the 2000-01 fiscal year to each member of
a county board of supervisors, county executive officer, local child
support agency, and the appropriate policy committees and fiscal
committees of the Legislature by December 31, 2001. The department
shall provide the information for each subsequent fiscal quarter and
fiscal year no later than three months following the end of the
fiscal quarter and no later than nine months following the end of the
fiscal year. The department shall present the information in a
manner that facilitates comparison of county performance.
(h) For purposes of this section, "case" means a noncustodial
parent, whether mother, father, or putative father, who is, or
eventually may be, obligated under law for support of a child or
children. For purposes of this definition, a noncustodial parent
shall be counted once for each family that has a dependent child he
or she may be obligated to support.
(i) This section shall be operative only for as long as Section
17704 requires participating counties to report data to the
department.
SEC. 21. Section 17602 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17602. (a) Not later than January 1, 2001, the department shall
adopt performance standards, in consultation with local child support
agencies, that each local child support agency is required to comply
with on a quarterly basis. The performance standards shall include,
at a minimum, measurements for each of the following:
(1) Percent of cases with a court order for current support.
(2) Percent of cases with collections of current support.
(3) Average amount collected per case for all cases with
collections.
(4) Percent of cases with an order for arrears.
(5) Percent of cases with arrears collections.
(6) Percent of alleged fathers or obligors who were served with a
summons and complaint to establish paternity or a support order
during the period.
(7) Percent of children for whom paternity has been established
during the period.
(8) Percent of cases that had a support order established during
the period.
(9) Total child support dollars collected per $1.00 of total
expenditure.
(10) Any other measurements that the director determines to be an
appropriate determination of a local child support agency's
performance.
(b) In determining the performance measures in subdivision (a),
the department shall consider the total amount of uncollected child
support arrearages that are realistically collectible. The director
shall analyze, in consultation with local child support agencies and
child support advocates, the current amount of uncollected child
support arrearages statewide and in each county
to determine the amount of child
support that may realistically be collected. The director shall
consider, in conducting the analysis, factors that may influence
collections, including demographic factors such as welfare caseload,
levels of poverty and unemployment, rates of incarceration of
obligors, and age of delinquencies. The director shall use this
analysis to establish program priorities as provided in paragraph (7)
of subdivision (b) of Section 17306.
(c) The department shall use the performance-based data, and the
criteria for that data, as set forth in Section 17600 to determine a
local child support agency's performance measures for the quarter.
(d) The director shall adopt a three phase process to be used
statewide when a local child support agency is out of compliance with
the performance standards adopted pursuant to subdivision (a), or
the director determines that the local child support agency is
failing in a substantial manner to comply with any provision of the
state plan, the provisions of this code, the requirements of federal
law, the regulations of the department, or the cooperative agreement.
The director shall adopt policies as to the implementation of each
phase, including requirements for measurement of progress and
improvement which shall be met as part of the performance improvement
plan specified in paragraphs (1) and (2), in order to avoid
implementation of the next phase of compliance. The director shall
not implement any of these phases until July 1, 2001, or until six
months after a local child support agency has completed its
transition from the office of the district attorney to the new county
department of child support services, whichever is later. The
phases shall include the following:
(1) Phase I: Development of a performance improvement plan that
is prepared jointly by the local child support agency and the
department, subject to the department's final approval. The plan
shall provide performance expectations and goals for achieving
compliance with the state plan and other state and federal laws and
regulations that must be reviewed and assessed within specific
timeframes in order to avoid execution of Phase II.
(2) Phase II: Onsite investigation, evaluation and oversight of
the local child support agency by the department. The director shall
appoint program monitoring teams to make site visits, conduct
educational and training sessions, and help the local child support
agency identify and attack problem areas. The program monitoring
teams shall evaluate all aspects of the functions and performance of
the local child support agency, including compliance with state and
federal laws and regulations. Based on these investigations and
evaluations, the program monitoring team shall develop a final
performance improvement plan and shall oversee implementation of all
recommendations made in the plan. The local child support agency
shall adhere to all recommendations made by the program monitoring
team. The plan shall provide performance expectations and compliance
goals that must be reviewed and assessed within specific timeframes
in order to avoid execution of Phase III.
(3) Phase III: The director shall assume, either directly or
through agreement with another entity, responsibility for the
management of the child and spousal support enforcement program in
the county until such time as the local child support agency provides
reasonable assurances to the director of its intention and ability
to comply. During the period of state management responsibility, the
director or his or her authorized representative shall have all of
the powers and responsibilities of the local child support agency
concerning the administration of the program. The local child
support agency shall be responsible for providing any funds as may be
necessary for the continued operation of the program. If the local
child support agency fails or refuses to provide these funds,
including a sufficient amount to reimburse any and all costs incurred
by the department in managing the program, the Controller may deduct
an amount certified by the director as necessary for the continued
operation of the program by the department from any state or federal
funds payable to the county for any purpose.
(e) The director shall report in writing to the Legislature
semiannually, beginning July 1, 2001, on the status of the state
child support enforcement program. The director shall submit
quarterly reports to the Legislature, Governor and public on progress
of all local child support agencies in each performance measure,
including identification of the local child support agencies that are
out of compliance, the performance measures that they have failed to
satisfy, and the performance improvement plan that is being taken
for each.
SEC. 21.5. Section 17604 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session of the Legislature, is
amended to read:
17604. (a) (1) If at any time the director considers any public
agency, that is required by law, by delegation of the department, or
by cooperative agreement to perform functions relating to the state
plan for securing child and spousal support and determining
paternity, to be failing in a substantial manner to comply with any
provision of the state plan, the director shall put that agency on
written notice to that effect.
(2) The state plan concerning spousal support shall apply only to
spousal support included in a child support order.
(3) In this chapter the term spousal support shall include support
for a former spouse.
(b) After receiving notice, the public agency shall have 45 days
to make a showing to the director of full compliance or set forth a
compliance plan that the director finds to be satisfactory.
(c) If the director determines that there is a failure on the part
of that public agency to comply with the provisions of the state
plan, or to set forth a compliance plan that the director finds to be
satisfactory, or if the State Personnel Board certifies to the
director that that public agency is not in conformity with applicable
merit system standards under Part 2.5 (commencing with Section
19800) of Division 5 of Title 2 of the Government Code, and that
sanctions are necessary to secure compliance, the director shall
withhold part or all of state and federal funds, including incentive
funds, from that public agency until the public agency shall make a
showing to the director of full compliance.
(d) After sanctions have been invoked pursuant to subdivision (c),
if the director determines that there remains a failure on the part
of the public agency to comply with the provisions of the state plan,
the director may remove that public agency from performing any part
or all of the functions relating to the state plan.
(e) In the event of a federal determination to reduce or modify
federal funding for the Title IV-A program as a result of improper or
inadequate county administration of the child and spousal support
enforcement program, the department shall pass on to the counties
any federal sanction levied on or after January 1, 1991, regardless
of the date of the underlying federal audit, except for any sanctions
resulting from the 1986 audit or federal followup. For the purposes
of this section, the date of levy is the date the federal government
actually reduces, withholds, or otherwise modifies the state's
funding.
(f) The sanction shall be assessed as follows:
(1) The state shall assume responsibility for 50 percent of the
total federal sanction.
(2) Each county shall be assessed an amount equal to the amount of
increased county costs which would occur based on application of
Sections 15200 and 15204.2 of the Welfare and Institutions Code.
(3) For each county found to be out of compliance based on the
reviews conducted pursuant to Section 17702, the county shall be
assessed an amount equal to one-half the rate of the federal sanction
multiplied by the county's total federal Title IV-A program funding.
(4) For each county found to be marginally in compliance based on
the reviews conducted pursuant to Section 17702, the county shall be
assessed an amount equal to one-quarter the rate of the federal
sanction multiplied by the county's total federal Title IV-A program
funding.
(5) In the event the amount of the federal sanction is less than
the amount required to apply paragraphs (1), (2), (3), and (4),
county liability under paragraph (4) shall be reduced accordingly.
In the event county liability under paragraph (4) is eliminated and
the amount of the federal sanction is less than the amount required
to apply paragraphs (1), (2), and (3), county liability under
paragraph (3) shall be reduced accordingly.
(6) The review pursuant to Section 17702 which was conducted
closest to the date the federal sanction was levied shall be used to
determine which counties are out of compliance and marginally in
compliance.
(g) There shall be established a sanction credit which shall
consist of any net increase in state revenue resulting from any
increase of more than 9 3/4 percent in distributed collections on
behalf of families receiving CalWORKs for each of the previous three
state fiscal years.
(1) The balance of the sanction after application of subdivision
(f) shall be reduced by the amount of the sanction credit.
(2) In the event the sanction credit exceeds the balance of the
sanction after application of paragraph (1), the amount exceeding the
balance shall be used to reduce the liability of marginally
compliant counties under paragraph (4) of subdivision (f). Any
further balance shall be used to reduce the liability of
out-of-compliance counties under paragraph (3) of subdivision (g).
(3) In the event the sanction credit does not fully offset the
balance of the sanction after application of paragraph (1), the state
shall be responsible for 50 percent of the unmet balance, and the
remaining 50 percent shall be distributed to all counties in
proportion to their total Title IV-A program funding.
(h) The sanction assessed a county pursuant to this section shall
be levied as a general assessment against the county.
Notwithstanding Section 17714, a county may use any funds paid to
that county pursuant to Sections 17700 and 17710, over and above the
county's cost of administering the child support program to supplant
any county funds reduced under this section.
(i) In the event of any other audit or review that results in the
reduction or modification of federal funding for the program under
Part D (commencing with Section 652) of Subchapter IV of Title 42 of
the United States Code, the sanction shall be assessed against those
counties specifically cited in the federal findings in the amount
cited in those findings.
(j) The department shall establish a process whereby any county
assessed a portion of any sanction may appeal the department's
decision.
(l) Nothing in this section shall be construed as relieving the
board of supervisors of the responsibility to provide funds necessary
for the continued operation of the state plan as required by law.
SEC. 22. Section 17700 is added to Article 4 (commencing with
Section 17702) of Chapter 2 of the Family Code to read:
17700. (a) It is the intent of the Legislature for the department
to allocate to counties funds as specified in this section to assist
counties to increase child support collections through the child
support enforcement program.
(b) The funds may be used for the following purposes and in any
manner that will enhance child support collections.
(1) To purchase equipment and fund staff to further a county's
effort to automate its offices as long as the automation is in
accordance with the Statewide Automated Child Support System being
implemented statewide.
(2) To fund staff who will further the county's collection
efforts.
(3) To match federal funds to increase court time given to child
support, including, but not limited to, funding additional family law
commissioner or referee positions which are authorized by law,
renting or leasing additional space, funding additional support staff
and litigant services, and obtaining additional equipment. More
than one county may jointly fund a family support commissioner or
referee position to serve the participating counties. For the
1996-97 and 1997-98 fiscal years, funds shall be made available to
the extent appropriated by the Budget Act to the Judicial Council to
implement Section 4251 of, and Division 14 (commencing with Section
10000). The Judicial Council shall allocate the funds to counties
for the purpose of matching federal funds for the costs of
commissioners, family law facilitators, and related costs. The
Judicial Council may also use the funds to offset the nonfederal
share of costs incurred for performing the duties specified in
Section 4252. The funds may only be used to match federal funds to
increase court time if the county does not decrease its current
allocation of court time to child support cases or decrease the time
more than in other areas under its plan for trial court funding. The
funds allocated pursuant to this section and the federal matching
funds for increased court time for child support cases shall be
considered outside the requirements of trial court funding. Funds
allocated to the Judicial Council shall not be subject to the
requirements of subdivision (c).
(c) Counties may choose one of the following methods for obtaining
these funds to increase child support collections:
(1) Matching funds method:
(A) It is the intent of the Legislature to appropriate the sum of
ten million dollars ($10,000,000), or any higher amount specified in
the annual Budget Act, from the General Fund to the State Department
of Social Services. Within 60 days of the enactment of the annual
Budget Act, any county choosing to apply for funds under this method
shall submit to the department a plan specifying the amount of county
match funds the county will provide, the amount of General Fund
moneys the county is requesting, and the intended uses of the funds
consistent with subdivision (b).
(B) The department shall allocate the funds to counties based on
the amount each county has reported it is to match. In order to
receive these funds, a county shall match every dollar of the General
Fund money provided to the county with fifty cents ($0.50) of county
funds, which shall be used for the child support program. In the
event that the department receives applications that exceed the total
funds available, the department shall allocate the available funds
among the applications based on collections-to-cost ratios.
(C) Funds expended to comply with Section 17714 shall qualify for
this match.
(2) Loan method:
(A) The Director of Finance is authorized to transfer up to ten
million dollars ($10,000,000), or any higher amount as may be
specified in the annual Budget Act, from Item 5180-101-0001 to Item
5180-141-0001 of the annual Budget Act for allocation by the State
Department of Social Services to county child support enforcement
programs. There shall be no requirement for counties to match these
funds, but the department shall take any steps necessary to ensure
that the maximum amount of federal funds are available to match these
funds.
(B) The department shall allocate these funds to counties based
upon an approved application. In the event that the department
receives applications that exceed the total funds available, the
department shall allocate the available funds among the approved
applications based on collections-to-cost ratios. In order to be
approved, the application shall be signed by the chief administrative
officer of the local child support agency and shall, at a minimum,
specify:
(i) The county's estimate of the state share of baseline
California Work Opportunity and Responsibility to Kids (CalWORKs)
collections in the county for the state fiscal year in which the
requested allocation will be spent. For purposes of this section,
"baseline CalWORKs collections" means the collections that would be
made by the county in the absence of this section. The department
shall review the county's baseline CalWORKs and non-CalWORKs
collections estimate and shall approve the estimate if it is
reasonably consistent with recent trends and developments in the
county.
(ii) The specific program activities for which the county proposes
to use the funds. The county shall certify that these activities
are in addition to the activities, or the level of activity, funded
in the previous year.
(iii) The amount requested.
(iv) The county's estimate of the state share of increased
CalWORKs and non-CalWORKs collections, minus any incentive paid to
the county pursuant to Section 15200.8 of the Welfare and
Institutions Code, anticipated to result from the activities
identified in clause (ii). The department shall review this estimate
and advise the county as to its reasonableness. For purposes of
this section, "increased CalWORKs collections" means revenues above
the county's approved estimate of baseline CalWORKs collections.
(v) A statement by the local child support agency that he or she
understands that the incentives that would otherwise be paid to the
county in the second subsequent fiscal year will be reduced to
recover any state costs that are not fully offset by increased
revenues.
(C) The department shall approve applications with approved
baseline CalWORKs collections and in which the collections-to-cost
ratio derived by dividing the amounts estimated under clause (iv) of
subparagraph (B) by the amount requested under clause (iii) of
subparagraph (B) is equal to, or greater than, two times the
statewide average comparable collections-to-cost ratio for the
previous five years.
(D) At the end of the first quarter of the state fiscal year,
following the second state fiscal year in which any county received
an allocation pursuant to this section, the department shall estimate
the total state share of CalWORKs collections by each county, minus
each incentive paid to the county pursuant to Section 15200.8 of the
Welfare and Institutions Code.
(E) For each of the four quarters following the first quarter of
the second state fiscal year following the year in which a county
receives an allocation pursuant to this section, the department shall
reduce the incentive payment by one-fourth of the amount which the
allocation to the county pursuant to this section for the previous
state fiscal year exceeds the difference, if greater than zero,
resulting from subtracting the state share of baseline CalWORKs
collections specified in the county's application from the department'
s estimate of the state share of total collections.
(d) The department shall review and evaluate the program specified
in this section and shall report to the Legislature by June 30,
2000. The report shall include recommendations for legislative
changes needed to make the program more effective.
SEC. 23. Section 17704 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17704. (a) For the 1998-99 fiscal year the department shall pay
to each county a child support incentive payment. Every county shall
receive the federal child support incentive. A county shall receive
the state child support incentive if it elects to do both of the
following:
(1) Comply with the reporting requirements of Section 17600 while
federal financial participation is available for collecting and
reporting data.
(2) Comply with federal and state child support laws and
regulations, or has a corrective action plan certified by the
department pursuant to Section 17702. The combined federal and state
incentive payment shall be 13.6 percent of distributed collections.
If the amount appropriated by the Legislature for the state
incentives is less than the amount necessary to satisfy each county's
actual incentives pursuant to this section, each county shall
receive its proportional share of incentives.
(b) (1) Beginning July 1, 1999, the department shall pay to each
county a child support incentive for child support collections.
Every county shall receive the federal child support incentive. The
combined federal and state incentive payments shall be 13.6 percent
of distributed collections. In addition to the federal child support
incentive, each county may also receive a state child support
incentive. Subject to subdivision (c), a county shall receive the
state child support incentive if it elects to do both of the
following:
(A) Comply with the reporting requirements of Section 17600 while
federal financial participation is available for collecting and
reporting data.
(B) Be in compliance with federal and state child support laws and
regulations, or have a performance improvement plan certified by the
department pursuant to Section 17702.
(2) (A) For purposes of paragraph (1), the federal incentive
component shall be each county's share of the child support incentive
payments that the state receives from the federal government, based
on the county's collections.
(B) (i) Effective July 1, 1999, and annually thereafter, state
funds appropriated for child support incentives shall first be used
to fund the administrative costs incurred by local child support
agencies in administering the child support program, excluding
automation costs as set forth in Section 10085 of the Welfare and
Institutions Code, after subtracting all federal financial
participation for administrative costs and all federal child support
incentives received by the state and passed on to the local child
support agencies. The department shall allocate sufficient resources
to each local child support agency to fully fund the remaining
administrative costs of its budget as approved by the director
pursuant to paragraph (9) of subdivision (b) of Section 17306,
subject to the appropriation of funding in the annual Budget Act. No
later than January 1, 2000, the department shall identify allowable
administrative costs that may be claimed for reimbursement from the
state, which shall be limited to reasonable amounts in relation to
the scope of services and the total funds available. If the total
amount of administrative costs claimed in any year exceeds the amount
appropriated in the Budget Act, the amount provided to local child
support agencies shall be reduced by the percentage necessary to
ensure that projected General Fund expenditures do not exceed the
amount authorized in the Budget Act.
(ii) Effective July 1, 2000, and annually thereafter, after
allowable administrative costs are funded under clause (i), the
department shall use any remaining incentive funds appropriated from
the prior fiscal year which are hereby reappropriated to implement an
incentive program that rewards up to 10 local child support agencies
in each year, based on either their welfare and postwelfare
collections or their increase in performance over the prior year. The
welfare and postwelfare collections standard shall be based on the
following for each local child support agency: (I) collections on
behalf of previously aided families that received CalWORKs benefits
and are no longer receiving benefits divided by the total number of
those families; and (II) collections that are used to reduce or repay
aid that is paid pursuant to Article 6 (commencing with Section
11450) of Chapter 2 of Part 3 of Division 9 of the Welfare and
Institutions Code, divided by the total aid paid out by the county
under that article. The performance improvement standard shall
measure the percent improvement for each local child support agency
in the two categories of collections over the prior year. The
department shall determine the number of local agencies that receive
state incentive funds under this program, subject to a maximum of
five agencies under the welfare and postwelfare standard and five
agencies under the increase in performance over the prior year
standard, and shall determine the amount received by each local
agency based on the availability of funds and each local child
support agency's proportional share of distributed collections. When
the California Child Support Automation System is operational, the
postwelfare collections standard shall be collections on behalf of
previously aided families that received CalWORKs benefits after
December 31, 1997, and are no longer receiving benefits, divided by
the total number of those families.
(iii) Any funds received pursuant to this subdivision shall be
used only for child support enforcement activities.
(c) (1) Beginning October 1, 1999, any county whose welfare
performance score is in the bottom quartile of all counties and whose
rate of improvement over the prior year is less than the rate of
improvement of the top quartile of counties in terms of their rates
of improvement shall receive its state incentive only upon accepting
technical assistance from the department, as set forth in paragraph
(3).
(2) The welfare performance score for each county is calculated by
dividing the county's collections on behalf of children receiving
CalWORKs benefits pursuant to Article 6 (commencing with Section
11450) of Chapter 2 of Part 3 of Division 9 of the Welfare and
Institutions Code by the county's average CalWORKs caseload.
(3) The department, in consultation with experts from other
counties, as appropriate, shall conduct a program review of the
county's child support program, which shall include a review of the
county's management practices, and provide technical assistance. If
the county chooses to receive its state incentives under this
section, the county shall comply with the recommendations of this
review.
(d) Each county shall continue to receive its federal child
support incentive funding whether or not it elects to participate in
the state child support incentive funding program.
(e) The department shall provide incentive funds pursuant to this
section only during any fiscal year in which funding is provided for
that purpose in the Budget Act.
SEC. 24. Section 17706 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session, is amended to read:
17706. It is the intent of the Legislature to encourage counties
to elevate the visibility and significance of the child support
enforcement program in the county. To advance this goal, effective
July 1, 2000, the counties with the 10 highest welfare and
postwelfare collections standards pursuant to clause (ii) of
subparagraph (B) of paragraph (2) of subdivision (b) of Section 17704
shall receive an
additional 5 percent of the state's share of those counties'
collections that are used to reduce or repay aid that is paid
pursuant to Article 6 (commencing with Section 11450) or Chapter 2 of
Part 3 of Division 9 of the Welfare and Institutions Code. The
counties are encouraged to use the increased recoupment to continue
to increase child support collections in the county.
SEC. 24.5. Section 17710 of the Family Code, as added by Assembly
Bill 196 of the 1999-2000 Regular Session of the Legislature, is
amended to read:
17710. (a) Each county shall be responsible for any
administrative expenditures for administering the child support
program not covered by federal and state funds.
(b) Notwithstanding subdivision (a), effective July 1, 1991, to
June 30, 1992, inclusive, counties shall pay the nonfederal share of
the administrative costs of conducting the reviews required under
Section 15200.8 of the Welfare and Institutions Code from the savings
counties will obtain as a result of the reduction in the maximum aid
payments specified in Section 11450. Effective July 1, 1992, to
June 30, 1993, inclusive, the state shall pay the nonfederal share of
administrative costs of conducting the reviews required under
Section 15200.8 of the Welfare and Institutions Code. Funding for
county costs after June 30, 1993, shall be subject to the
availability of funds in the annual Budget Act.
(c) If the federal government imposes a penalty on California's
child support program for the failure to meet the October 1, 1997,
deadline for the implementation of an automated child support
enforcement system required by the federal Family Support Act of 1988
(P.L. 100-485), no portion of any penalty imposed by the federal
government from October 1, 1997, to the date of enactment of the act
adding this subdivision shall be assessed against Los Angeles County.
SEC. 25. Section 19271 of the Revenue and Taxation Code, as
amended by Assembly Bill 196 of the 1999-2000 Regular Session, is
amended to read:
19271. (a) (1) For purposes of this article:
(A) "Child support delinquency" means a delinquency defined in
Section 17501 of the Family Code.
(B) "Earnings" may include the items described in Section 5206 of
the Family Code.
(2) In order to manage the growth in the number of delinquencies
transferred, the Franchise Tax Board may phase in the transfers over
a period of 36 months ending on December 31, 2002. The Legislature
anticipates that the Franchise Tax Board's systems necessary to
accommodate the augmented collection activities will be operational
by July 1, 2001. The Franchise Tax Board shall work with the
Department of Child Support Services to coordinate the phasein,
focusing on needed coordination with the transition of the local
child support agency in each county from the office of the district
attorney to the new county department of child support services.
(3) At least 20 days prior to the date that the Franchise Tax
Board commences collection action under this article, the Franchise
Tax Board shall mail notice of the amount due to the obligated parent
at the last known address and advise the obligated parent that
failure to pay will result in collection action. If the obligated
parent disagrees with the amount due, the obligated parent shall be
instructed to contact the local child support agency to resolve the
disagreement.
(b) (1) (A) Except as otherwise provided in subparagraph (B), when
a delinquency is transferred to the Franchise Tax Board pursuant to
Section 17501 of the Family Code, the amount of the child support
delinquency shall be collected by the Franchise Tax Board in any
manner authorized under the law for collection of a delinquent
personal income tax liability, except that issuance of an order and
levy under Article 4 (commencing with Section 706.070) of Chapter 5
of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in
the manner provided for earnings withholding orders for taxes is
prohibited. Any levy or other withholding of earnings of an employee
by the Franchise Tax Board shall be made accordance with Section
5246 of the Family Code. Any other law providing for the collection
of a delinquent personal income tax liability shall apply to any
delinquency transferred under Section 17501 of the Family Code in the
same manner and with the same force and effect and to the full
extent as if the language of those laws had been incorporated in full
into this article, except to the extent that any provision is either
inconsistent with a provision of this article or is not relevant to
this article.
(B) When a delinquency is transferred to the Franchise Tax Board
pursuant to Section 17501 of the Family Code, or at any time
thereafter, if the obligated parent owes a delinquent personal income
tax liability, the Franchise Tax Board shall not engage in, or shall
cease, any involuntary collection action to collect the delinquent
personal income tax liability, until the child support delinquency is
paid in full. At any time, however, the Franchise Tax Board may
mail any other notice to the taxpayer for voluntary payment of the
delinquent personal income tax liability if the Franchise Tax Board
determines that collection of the delinquent personal income tax
liability will not jeopardize collection of the child support
delinquency. However, the Franchise Tax Board may engage in the
collection of a delinquent personal income tax liability if the
obligor has entered into a payment agreement for the child support
delinquency and is in compliance with that agreement, and the
Franchise Tax Board determines that collection of the delinquent
personal income tax liability would not jeopardize payments under the
child support payment agreement.
(C) For purposes of subparagraph (B):
(i) "Involuntary collection action" includes those actions
authorized by Section 18670, 18670.5, 18671, or 19264, by Article 3
(commencing with Section 19231), or by Chapter 5 (commencing with
Section 706.010) of Division 2 of Title 9 of Part 2 of the Code of
Civil Procedure.
(ii) "Delinquent personal income tax liability" means any taxes,
additions to tax, penalties, interest, fees, or other related amounts
due and payable under Part 10 (commencing with Section 17001) or
this part.
(iii) "Voluntary payment" means any payment made by obligated
parents in response to any notice for voluntary payment mailed by the
Franchise Tax Board.
(2) Any compensation, fee, commission, expense, or any other fee
for service incurred by the Franchise Tax Board in the collection of
a child support delinquency authorized under this article shall not
be an obligation of, or collected from, the obligated parent. A
transferred child support delinquency shall be final and due and
payable to the State of California upon written notice to the
obligated parent by the Franchise Tax Board.
(3) For purposes of administering this article:
(A) This chapter and Chapter 7 (commencing with Section 19501)
shall apply, except as otherwise provided by this article.
(B) Any services, information, or enforcement remedies available
to a local child support agency or the Title IV-D agency in
collecting child support delinquencies or locating absent or
noncustodial parents shall be available to the Franchise Tax Board
for purposes of collecting child support delinquencies under this
article, including, but not limited to, any information that may be
disclosed by the Franchise Tax Board to the California Parent Locator
Service under Section 19548. However, in no event shall the
Franchise Tax Board take any additional enforcement remedies if a
court has ordered an obligor to make scheduled payments on a child
support arrearages obligation and the parent is in compliance with
that order.
(C) A request by the Franchise Tax Board for information from a
financial institution shall be treated in the same manner and to the
same extent as a request for information from a local child support
agency referring to a support order pursuant to Section 17400 of the
Family Code for purposes of Chapter 20 (commencing with Section 7460)
of Division 7 of Title 1 of the Government Code (relating to
governmental access to financial records), notwithstanding any other
provision of law which is inconsistent or contrary to this paragraph.
(D) The amount to be withheld in an order and levy to collect
child support delinquencies under Article 4 (commencing with Section
706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure is the amount required to be withheld pursuant to
an earnings withholding order for support under Section 706.052 of
the Code of Civil Procedure.
(E) Nothing in this article shall be construed to modify the tax
intercept provisions of Article 8 (commencing with Section 708.710)
of Chapter 6 of Division 2 of Part 2 of the Code of Civil Procedure.
(c) Interest on the delinquency shall be computed pursuant to
Section 685.010 of the Code of Civil Procedure.
(d) (1) In no event shall a collection under this article be
construed to be a payment of income taxes imposed under this part.
(2) In the event an obligated parent overpays a liability imposed
under this part, the overpayment shall not be credited against any
delinquency collected pursuant to this article. In the event an
overpayment of a liability imposed under this part is offset and
distributed to a local child support agency pursuant to Sections
12419.3 and 12419.5 of the Government Code or Section 708.740 of the
Code of Civil Procedure, and thereby reduces the amount of the
referred delinquency, the local child support agency shall
immediately notify the Franchise Tax Board of that reduction, unless
the Franchise Tax Board directs otherwise.
(e) (1) The Franchise Tax Board shall administer this article, in
conjunction with regulations adopted by the Department of Child
Support Services in consultation with the Franchise Tax Board,
including those set forth in Section 17306 of the Family Code.
(2) The Franchise Tax Board may transfer to or allow a local child
support agency to retain a child support delinquency for a specified
purpose for enforcement and collection where the Franchise Tax Board
determines, pursuant to regulations established by the Department of
Child Support Services, that the transfer or retention of the
delinquency for the purpose so specified will enhance the
collectibility of the delinquency.
(3) The Franchise Tax Board, in coordination with the local child
support agency, shall seek full compliance by the obligor with the
child support order. The Franchise Tax Board, in coordination with
the local child support agency and the Department of Child Support
Services, shall pursue resolution of any issues regarding wage
assignments and shall modify or replace as necessary any
administratively county-issued wage assignments to achieve total
resolution of the child support obligation.
(f) Except as otherwise provided in this article, any child
support delinquency transferred to the Franchise Tax Board pursuant
to this article shall be treated as a child support delinquency for
all other purposes, and any collection action by the local child
support agency or the Franchise Tax Board with respect to any
delinquency referred pursuant to this article shall have the same
priority against attachment, execution, assignment, or other
collection action as is provided by any other provision of state law.
(g) Except as otherwise specifically provided in subparagraph (B)
of paragraph (1) of subdivision (b), the child support collection
activities authorized by this article shall not interfere with the
primary mission of the Franchise Tax Board to fairly and efficiently
administer the Revenue and Taxation Code for which it is responsible.
(h) Information disclosed to the Franchise Tax Board shall be
considered information that may be disclosed by the Franchise Tax
Board under the authority of Section 19548 and may be disseminated by
the Franchise Tax Board accordingly for the purposes specified in
Sections 17505 and 17506 of the Family Code (in accordance with, and
to the extent permitted by, Section 17514 of the Family Code and any
other state or federal law).
(i) A local child support agency may not apply to the Department
of Child Support Services for an exemption from the transfer of
responsibilities and authorities to the Franchise Tax Board under the
Family Code or participation under Section 19271.6.
(j) Except in those cases meeting the specified circumstances
described in the regulations and in accordance with the process
prescribed in paragraph (2) of subdivision (d) of Section 17501 of
the Family Code, a local child support agency shall not withdraw,
rescind, or otherwise recall the transfer of a child support
delinquency transferred to the Franchise Tax Board.
SEC. 26. Section 19272 of the Revenue and Taxation Code, as
amended by Assembly Bill 196 of the 1999-2000 Regular Session, is
amended to read:
19272. (a) Any child support delinquency collected by the
Franchise Tax Board, including those amounts that result in
overpayment of a child support delinquency, shall be deposited in the
State Treasury, after clearance of the remittance, to the credit of
the Special Deposit Fund and distributed as specified by interagency
agreement executed by the Franchise Tax Board and the State
Department of Social Services, with the concurrence of the
Controller. Notwithstanding Section 13340 of the Government Code,
all moneys deposited in the Special Deposit Fund pursuant to this
article are hereby continuously appropriated, without regard to
fiscal years, for purposes of making distributions.
(b) When a child support delinquency, or any portion thereof, has
been collected by the Franchise Tax Board pursuant to this article,
the local child support agency shall be notified that the delinquency
or some portion thereof has been collected and shall be provided any
other necessary relevant information requested.
(c) The referring local child support agency shall receive credit
for the amount of collections made pursuant to the referral,
including credit for purposes of the child support enforcement
incentives pursuant to Section 17704 of the Family Code. Collection
costs incurred by the Franchise Tax Board shall be paid by federal
reimbursement with any balance to be paid from the General Fund.
(d) For amounts to be paid as a result of the Franchise Tax Board'
s activities taken pursuant to this chapter or Section 17501 of the
Family Code, the Franchise Tax Board shall notify the obligor or
third party to make the required payment directly to the local child
support agency that referred the delinquency to the Franchise Tax
Board for deposit, cashiering, and disbursement of the payment,
regardless of the form and manner for making the payments, including
electronic means. The Franchise Tax Board may, subject to approval
by the Department of Child Support Services, phase in this
responsibility for the local child support agency to deposit,
cashier, and disburse payments collected pursuant to the Franchise
Tax Board accounts receivable management functions only to the extent
necessary to ensure that the local child support agency is capable
of accepting payment in the form and manner provided.
(e) When the statewide disbursement unit is operational, the
obligors and third parties shall be directed to make child support
payments to that unit instead of the counties, in accordance with the
Department of Child Support Services regulations.
SEC. 27. Section 19275 is added to the Revenue and Taxation Code,
to read:
19275. For purposes of Parts 10 (commencing with Section 17001),
10.5 (commencing with Section 20501), and 11 (commencing with Section
23001), any reference to the district attorney or counties, the
State Department of Social Services, or the Statewide Automated Child
Support System, as it relates to the collection, enforcement, or
accounts receivable management of child support under the Family Code
or the Welfare and Institutions Code shall mean the local child
support agency, the Department of Child Support Services, and the
California Child Support Automation System, respectively, in keeping
with the changes and transition of authority and responsibilities as
required under the Family Code and the Welfare and Institutions Code.
SEC. 28. Section 1088.8 of the Unemployment Insurance Code, as
added by Assembly Bill 196 of the 1999-2000 Regular Session, is
amended to read:
1088.8. (a) Effective January 1, 2001, any service-recipient, as
defined in subdivision (b), who makes or is required to make a return
to the Internal Revenue Service, in accordance with paragraph (A) of
subdivision (a) of Section 6041 of the Internal Revenue Code
(relating to payments made to a service-provider as compensation for
services) shall file with the department information as required
under subdivision (c).
(b) For purposes of this section:
(1) "Service-recipient" means any individual, person, corporation,
association, or partnership, or agent thereof, doing business in
this state, deriving trade or business income from sources within
this state, or in any manner in the course of a trade or business
subject to the laws of this state. "Service-recipient" also includes
the State of California or any political subdivision thereof,
including the Regents of the University of California, any charter
city, or any political body not a subdivision or agency of the state,
and any person, employee, department, or agent thereof.
(2) "Service-provider" means an individual who is not an employee
of the service-recipient for California purposes and who received
compensation or executes a contract for services performed for that
service-recipient within or without the state.
(c) Each service-recipient shall report all of the following
information to the department, within 20 days of the earlier of first
making payments that in the aggregate equal or exceed six hundred
dollars ($600) in any year to a service-provider, or entering into a
contract or contracts with a service-provider providing for payments
that in the aggregate equal or exceed six hundred dollars ($600) in
any year:
(1) The full name and social security number of the
service-provider.
(2) The service-recipient's name, business name, address, and
telephone number.
(3) The service-recipient's federal employer identification
number, California state employer account number, social security
number, or other identifying number as required by the Employment
Development Department in consultation with the Franchise Tax Board.
(4) The date the contract is executed, or if no contract, the date
payments in the aggregate first equal or exceed six hundred dollars
($600).
(5) The total dollar amount of the contract, if any, and the
contract expiration date.
(d) The department shall retain information collected pursuant to
this section until November 1 following the tax year in which the
contract is executed, or if no contract, the tax year in which the
aggregate payments first equal or exceed six hundred dollars ($600).
(e) Information obtained by the department pursuant to this
section may be released only for purposes of establishing, modifying,
or enforcing child support obligations under Section 17400 of the
Family Code and for child support collection purposes authorized
under Article 5 (commencing with Section 19271) of Chapter 5 of Part
10.2 of the Revenue and Taxation Code, or to the Franchise Tax Board
for tax enforcement purposes or for administering the provisions of
the Family Code.
(f) This section shall become operative on January 1, 2001.
SEC. 29. Section 15200.81 of the Welfare and Institutions Code, as
amended by Section 34 of Chapter 147 of the Statutes of 1999, is
repealed.
SEC. 30. Section 18205 of the Welfare and Institutions Code, as
added by Chapter 606 of the Statutes of 1997, is amended and
renumbered to read:
18205.5. The Director of Child Support Services may, pursuant to
this article, approve county demonstration projects to provide
employment and training services to nonsupporting noncustodial
parents of children who are recipients of aid under Chapter 2
(commencing with Section 11200) of Part 3. In a county operating a
demonstration project pursuant to this section, the superior court
may order a nonsupporting noncustodial parent of a child receiving
aid under Chapter 2 (commencing with Section 11200) of Part 3 to
participate, as appropriate, in job training, job search, vocational
rehabilitation, and other work activities, as well as in parental
development training. The superior court county department of child
support services, and the county welfare department, in a
demonstration county, shall all agree to cooperate in the operation
of the demonstration project.