BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                       Senator S. Joseph Simitian, Chair


          BILL NO:       AB 1743                                      
          A
          AUTHOR:        Assembly Judiciary Committee                 
          B
          VERSION:       As Introduced
          HEARING DATE:  June 14, 2005                                
          1
          FISCAL:        Senate Appropriations                        
          7
                                                                      
          4
          CONSULTANT:                                                 
          3
          Sue North
                                        

                                     SUBJECT
                                         
             Child support: Reduced child support debt for reunited  
                                    families

                                     SUMMARY  

          In 2003 AB 1449 (Keeley) was enacted which allowed for debt  
          accumulated pursuant child support orders to be  
          "compromised" (i.e., reduced) for children in on public  
          assistance including foster care when those children are  
          reunited with the obligor parent if the county determined  
          that the child support debt created a barrier to  
          reunification.
          This bill provides technical cleanup and clarification of  
          the prior legislation.


                                     ABSTRACT  

           Current law:
           
            1.) Requires Department of Child Support Services (DCSS)  
            to establish 
            regulations for the compromise of child support  
                                                         Continued---



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            arrearages owed as 
            reimbursement for public assistance when the child is  
            returned to the custody 
            of the obligor in either of the following circumstances:  
            (a) the child
                had been adjudged a dependent of the juvenile court,  
          but has
                since been reunified with the obligor pursuant to an  
          order of the
                juvenile court; or (b) the child had been placed   
          with a guardian or
                relative caregiver, who received public assistance  
          for the child, and
                the child has since been returned to the home of the  
          obligor.
               (Family Code Section 17550.)

           2)  Provides that the compromise is only appropriate where  
          the
               obligor parent has an income less that 250% of the  
          federal
               poverty level, and the local child support agency  
          (LCSA)
               necessary for the support of the child.  Prior to  
          compromising the
               debt, the LCSA is required to consult with the county  
          child welfare
               department.  (Family Code Section 17550.)

           3) Requires Department of Social Services (DSS) to  
             establish regulations 
                 by October 1, 2002, defining cases in which it would  
           be contrary to the best 
                 interest of the child for the county welfare  
           department to refer a case to an
                 LCSA for establishment of a support order for the  
          reimbursement of
                 Public assistance (AFDC-FC). (Family Code Section  
          17552.)

           4) Requires DSS and DCSS to report to the Governor and the  
             Legislature on 
                 the results of foster care-child support collection  
           limitation program no later 
                 than October 1, 2003.




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             5)  Directs DCSS to establish a compromise of arrears  
          program for
                  compromise of state-owed child support arrears for  
          obligors
                  who are unable to pay their child support debt.   
          (Family Code
                  Section 17560.)

             6)  States the legislative intent that the Kinship  
          Guardianship
                  Assistance Payment Program (Kin-GAP) is intended to  
          enhance
                   family preservation and stability by recognizing  
          that many
                   children are in long-term, stable placements with  
          relatives,
                   that these placements are the permanent plan for  
          the child,
                   that dependencies can be dismissed with legal  
          guardianship
                   granted to the relative, and that there is no need  
          for continued
                   governmental intervention in the family life  
          through ongoing,
                   scheduled court and social services supervision of  
          the placement.
                   (W&I Code Section 11361.)

           This bill:
           
           1) Broadens the references to children receiving public  
             assistance to
           include all types of foster children;

           2) Aligns the periodic case reviews as well as the annual  
             eligibility
           redetermination requirements in current law to conform to  
           subsequent procedural changes otherwise made to the foster  
           care review process, thus simplifying the procedures  
           required of counties; and

           3)  Adds children in placements pursuant to the Kinship  
           Guardian Assistance Program (Kin-Gap) to the provisions of  
           this law.




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                                  FISCAL IMPACT  

          Unknown minor costs and savings



                            BACKGROUND AND DISCUSSION  

          Currently child support orders are established by family  
          courts for all children of divorce as well as whenever  
          paternity has been established. When families apply for  
          public assistance (TANF) substantial effort is initiated  
          during the eligibility process to establish paternity and  
          to secure child support orders which, when collected,  
          reduce the level of public funds required to support the  
          needy family. Likewise whenever a child is removed from the  
          custody of the parents as dependent, neglected or abused,  
          the county similarly initiates the legal process to  
          establish child support orders to the parents to defray the  
          cost of care of the children.

          The debt associated with the support of one's children is  
          established in state law as primary; that is, owed child  
          support comes ahead of all other consumer debt. It cannot,  
          as an example, be forgiven in a bankruptcy proceeding. The  
          parent owing the child support may be incarcerated for  
          non-payment of support-unlike other debt. Moreover, as  
          state laws have been enacted to increase the amount of  
          child support awarded by the courts, the amount of debt can  
          accumulate quickly if obligors are unable or unwilling to  
          keep up with the monthly payments required.

          According to the author child support obligations can make  
          it difficult for parents of children in foster care to  
          successfully reunify with their children.  This can result  
          in longer stays in foster care, increasing both risk to the  
          children and the costs to taxpayers.  AB 1449 (Keeley),  
          Chapter 463 Statutes of 2001, made reunification easier by  
          alleviating some of the burden of reimbursing the state for  
          public assistance when a child has returned to the home of  
          the obligor and the reduction of the payments is necessary  
          to help the parent or guardian support the child.




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          In addition to the provisions regarding arrearage  
          collections, AB 1449 also allowed county child welfare  
          agencies to decide up-front to forego the commencement of  
          child support, if it is determined that the collection of  
          child support would conflict with reunification efforts.
           
          Assembly votes
           
          Assembly Judiciary  9-0
          Assembly Appropriations18-0
          Assembly Floor 77-0


                                    POSITIONS  

          Support:       California Welfare Directors Association  
          (Sponsor)
                         National Center for Youth Law
                         Family Law Section of the State Bar of  
          California


          Oppose:   None received






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