BILL NUMBER: AB 2440	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 30, 2006

INTRODUCED BY   Assembly Member Klehs

                        FEBRUARY 23, 2006

   An act to add Section 1714.4 to the Civil Code, relating to child
support.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2440, as amended, Klehs  Child support obligations: liability.
   Existing law imposes joint and several liability upon a parent or
guardian for the injury done to another person by the child of that
parent or guardian under certain circumstances.
   This bill would impose joint and several liability upon any person
 who   or business entity that  knowingly
assists a  noncustodial child support obligor who
has an unpaid child support obligation to escape, evade, or avoid
current payment of those unpaid child support obligations. The bill
would also include a related statement of legislative findings and
declarations.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares the
following:
   (a) In California, there were an estimated $19 billion in unpaid
child support obligations as of January 2006.
   (b) The failure of a  noncustodial  parent to pay
child support obligations often subjects the child and the 
custodial  other  parent to a life of poverty or
substandard living conditions, reduced access to medical care, and
diminished educational opportunities.
   (c) The failure of a  noncustodial  parent to
satisfy court-ordered or court-approved child support obligations
depletes the State of California of one of its most valued resources:
the next generation of healthy and well-educated Californians.
  SEC. 2.  Section 1714.4 is added to the Civil Code, to read:
   1714.4.  (a) Any person  who   or business
entity that  knowingly assists a  noncustodial 
child support obligor who has an unpaid child support obligation to
escape, evade, or avoid paying court-ordered or court-approved child
support shall be jointly and severally liable for the  amount
of the unpaid   entire  child support 
obligation due  at the time the assistance was provided to the
child support obligee. The maximum liability imposed by this section
shall not exceed the  value of the assistance provided, such
as the fair market value of the assets transferred or hidden, or the
amount of the wages or other compensation paid to the child support
obligor but not reported  entire child support
obligation due  . Upon the satisfaction of the unpaid child
support obligation, this section shall not apply.
   (b) For purposes of this section, actions taken to knowingly
assist a child support obligor to escape, evade, or avoid paying
court-ordered or court-approved child support include, but are not
limited to, any of the following actions:
   (1) Helping to hide or transfer assets of the child support
obligor.
   (2) Hiring or employing the child support obligor as an employee
in a trade or business and failing to timely file a report of new
employees with the California New Employee Registry maintained by the
Employment Development Department.
   (3) Paying wages or other forms of compensation for services
rendered to a child support obligor in cash, via barter or trade, or
in any other form that is not reported to the Employment Development
Department.  
   (4) Other actions that the Department of Child Support Services
determines to assist evasion of an outstanding unpaid child support
obligation.  
   (c) If a violation of this section is alleged, all of the
following shall apply:  
   (1) The matter shall be heard in family law court before a judge
or commissioner.  
   (2) If there is an existing child support case addressing the
issue of unpaid support, the matter of liability pursuant to this
section shall be heard as a part of that existing case. Upon motion
and a sufficient showing by a party to the existing action, the court
shall join to the action any person who may be liable under this
section.  
   (3) The matter of liability pursuant to this section shall be
determined in an evidentiary hearing based upon the preponderance of
the evidence.