BILL NUMBER: AB 2440	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 17, 2006
	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
or business entity that knowingly assists a 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  all of
 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 parent to pay child support obligations often
subjects the child and the 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 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 or business entity that knowingly assists
a 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 
entire child support obligation due at the time the assistance was
provided to the child support obligee   10 times 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
 . The maximum liability imposed by this section shall not
exceed the 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.
   (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) 
    (1)  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   that a party may be liable  ,
the court shall join to the action any person who may be liable under
this section.  
   (3) 
    (2)  The matter of liability pursuant to this section
shall be determined  by the court  in an evidentiary hearing
based upon the preponderance of the evidence.