BILL NUMBER: AB 2440	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 16, 2006
	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
 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  With actual knowledge of the
child support obligation, 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   Engaging   the child
support obligor as a service provider and failing to timely file a
report with the Employment Development Department as required by
Section 1088.8 of the Unemployment Insurance Code. 
    (4)     When engaged in a trade or business
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) 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 that a party may be liable, the court shall
join to the action any person who may be liable under this section.

    (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.   rendered by a child support obligor that are
not reported to the Employment Development Department as required,
including, but not limited to, payment in cash or via barter or
trade.