BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                         Senator Joseph L. Dunn, Chair
                           2005-2006 Regular Session
           
           

          SB 1082                                                S
          Senator Morrow                                         B
          April 13, 2005
          Hearing April 19, 2005                                 1
          Family Code                                            0
          DSH/GWW:rm                                             8
                                                                 2


                                     SUBJECT  

              Child Custody, Visitation and Support Obligations:  
            Modification for Activated, Deployed Military Personnel
           
                                   DESCRIPTION 
                                        
          This bill would facilitate the process for activated  
          reservists and National Guard members to seek a  
          modification of their child support orders prior to  
          deployment out-of-state.  The bill would, additionally, if  
          the court cannot set the matter for hearing prior to the  
          deployment, preserve the service member's right to modify  
          the support order retroactively to the date of deployment  
          or date of filing and service of the modification petition,  
          whichever is later, to reflect any change in income  
          resulting from the activation to military service.

          To remind service members that their support obligations  
          will continue at their current rate unless modified by  
          court order, the bill would require the Department of Child  
          Support Services (DCSS) to work with all branches of the  
          military and the National Guard to ensure that information,  
          including the appropriate court forms, is made available at  
          all mobilization stations or other appropriate locations  
          service members typically receive similar types of  
          information and counsel prior to deployment.  The bill  
          would also require DCSS to develop and similarly distribute  
          a form which, if completed by service members who have a  
          case through the local child support agency, will require  
          the local agency to bring a motion to modify the order,  









          without the need for the service member to be present.

          For service members who do not utilize either of these  
          procedures to seek modification of their support orders,  
          the bill would provide that interest does not accrue on any  
          unpaid child support that would not have been due and owing  




































                                        







            SB 1082 (Morrow and Ducheny)
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            had the service member modified the order to reflect his or  
            her reduced military income.  The bill would also prohibit  
            penalties from being assessed against that same portion of  
            unpaid support.
             
            The bill would additionally provide that the fact of a  
            person's deployment out-of-state, in and of itself, cannot  
            be used by the court as a ground for modification of  
            custody or visitation.
              
                                      BACKGROUND  
             
            With the war in Iraq and the activation of many reservists  
            and members of the National Guard, there has been increased  
            attention paid to the effects of out-of-state or overseas  
            deployment on service members and their families.  In  
            December 2003, Congress updated the former Soldiers' and  
            Sailors' Civil Relief Act, and enacted the new  
            Servicemembers Civil Relief Act (SCRA), "to provide for,  
            strengthen, and expedite the national defense . . . to  
            enable [service members] to devote their entire energy to  
            the defense needs of the Nation; and to provide for the  
            temporary suspension of judicial and administrative  
            proceedings and transactions that may adversely affect the  
            civil rights of service members during their military  
            service." (50 U.S.C. Appendix Section 502.)  The SCRA, like  
            its predecessor, among other things, prohibits default  
            actions against service members deployed out of the United  
            States, limits the amount of interest that may be assessed  
            on debts that accrued prior to deployment, and requires a  
            stay of proceedings if the service member's military duty  
            materially affects his or her ability to appear.

            However, the SCRA does nothing to address a service  
            member's ongoing child support obligation.  For many  
            service members, their income is reduced when activated to  
            military service.  A child support order does not change to  
            reflect reduced income, however, unless action is taken to  
            seek a court-ordered modification.  Whether it is because  
            of the difficulty of preparing a court filing and obtaining  
            a hearing before deployment, or because the service member  


                                        







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            is not aware of the ability or need to modify the order,  
            there has been increased attention of late to service  
            members who return to California with substantial child  
            support arrears that accrued solely because they were  
            serving their country and earning too little to meet their  
            existing support obligation.
             




                               CHANGES TO EXISTING LAW  
             
            1.   Retroactive Modification of Support Orders
             
              Existing law  prohibits a court from modifying a child  
              support order retroactive to any period of time prior to  
              the filing and service of a motion or order to show cause  
              for modification.  (42 U.S.C. 666(a)(9), known as the  
              "Bradley amendment," Family Code Section 3651.)  

               Existing law  authorizes, but does not require, a court to  
              make an order retroactive to the date of filing and  
              notice of the motion or order to show cause for  
              modification.  If, however, the modification is due to  
              the unemployment of the support obligor or obligee, the  
              court is required, absent a finding of good cause, to  
              make the order retroactive to the date of unemployment or  
              the date of service, whichever is later.  (Family Code  
              Section 3653.)

               This bill  would require the Judicial Council to create a  
              form notice of activation and request for modification  
              which a service member could use to request a  
              modification hearing based on the change in income as a  
              result of the activation and deployment.

               This bill  would require the court, when modifying a  
              support obligation based on a change in income  
              attributable to activation and deployment, to make the  
              order retroactive to the date of service of the pleading  


                                        







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              on the other party or the date of activation, whichever  
              is later.  Upon a finding of good cause and reasons  
              stated on the record, the court may order that the  
              modification is not retroactive.

            2.Relief from Child Support Interest and Penalties

               Existing law  provides that interest commences to accrue  
              on a money judgment on the date of entry of judgment.  If  
              a money judgment is payable in installments, interest  
              accrues as to each installment on the date the  
              installment becomes due.  Interest accrues at the rate of  
              10 percent per year.  (Code of Civil Procedure Sections  
              685.010 and 685.020.)

               Existing law  authorizes the court to assess penalties for  
              nonpayment of support in egregious instances of  
              noncompliance with a child support order.  (Family Code  
              Section 4720 et seq.)

               This bill  would provide that, for obligor service members  
              who do not use the streamlined modification process  
              created by this bill, interest nevertheless does not  
              accrue on the amount of support that would not have been  
              owed had the obligor obtained a modified support order to  
              reflect his or her reduced income as a result of being  
              activated to military service and deployed out-of-state.

               This bill  would also prohibit penalties from being  
              imposed with regard to unpaid support that accrued  
              because an activated, deployed service member failed to  
              modify his or her support order prior to deployment to  
              reflect his or her reduced income.  

            3.   Compromise of Arrears 

               Existing law  requires the Department of Child Support  
              Services (DCSS) to establish a program for the compromise  
              of child support arrears and interest owed to the state.   
              The amount of the compromise shall take into account the  
              obligor's ability to pay and must be in the best interest  


                                        







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              of the state. (Family Code Section 17560.)

               This bill  would declare that a compromise shall be in the  
              best interest of the state in the following circumstance:  
               a) the support obligor was a reservist or National Guard  
              member who was activated and deployed out-of-state; b)  
              the service member failed to modify the support order to  
              reflect the reduced income he or she was paid by the  
              military; c) arrears accumulated during the period of  
              deployment; and d) the compromise is the amount of  
              support that would not have accrued if the order had been  
              appropriately modified. The bill would require DCSS to  
              develop the necessary rules to implement this provision  
              within 90 days of the effective date of this bill.

            4.  Stay of Proceedings

               Existing law  requires the court, upon application of a  
              service member, or on its own motion, to grant a stay of  
              90 days or more in any civil action or proceeding at any  
              time prior to final judgment if certain conditions are  
              satisfied.  (Servicemembers Civil Relief Act, 50 U.S.C.  
              Appendix Section 522.)  The application shall include a  
              letter setting forth how the current military duty  
              requirements materially affect the service member's  
              ability to appear, or a letter from the commanding  
              officer indicating that the service member's military  
              duty prevents appearance and that the military leave is  
              not authorized at that time. (Id.)
               Existing law  provides that, upon expiration of the  
              mandatory stay, the court may grant an additional stay,  
              upon application of the service member demonstrating that  
              continuing military duty will have a material affect on  
              his or her ability to appear.  If the court refuses to  
              grant the additional stay, it shall appoint counsel to  
              represent the service member. (Servicemembers Civil  
              Relief Act, 50 U.S.C. Appendix Section 522.)  

               This bill  would restate the requirements of federal law,  
              by requiring the court to grant a stay of the motion or  
              order to show cause for modification if the service  


                                        







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              member's application cannot be heard prior to deployment.  
               The stay would be consistent with the time lines set  
              forth in the federal Servicemembers Civil Relief Act. The  
              bill would further provide that if an additional stay is  
              requested, and the court exercises its power not to grant  
              it, the court shall comply with the federal requirement  
              to appoint counsel for the service member.

            5.Modification of Custody and Visitation Orders

               Existing law  provides that a final custody or visitation  
              order may be modified by the family court only if some  
              significant change in circumstances indicates that a  
              different arrangement would be in the child's best  
              interest.  (Marriage of LaMusga (2004) 37 Cal.4th 1072,  
              1088, Burchard v. Garay (1986) 42 Cal.3d 531, 535.)

               This bill  would provide that a party's absence from the  
              home or failure to comply with a custody or visitation  
              order may not, in and of itself, justify a modification  
              of the order if the reason for the absence or failure is  
              the party's activation to military service and deployment  
              out-of-state.


                                       COMMENT  
             
            1.    Stated need for bill   
             
              According to the authors, reservists and National Guard  
              personnel are being activated to military service with  
              little time to take care of the many pressing issues that  
              they are leaving behind.  The authors comment that "those  
              with family law issues cannot get into court before  
              deployment given the amount of time between orders and  
              the shipping out date.  If they experience a reduction in  
              income due to the activation and fail to modify their  
              support orders to reflect this reduced income, they may  
              return from active duty with a substantial amount of  
              arrears having accrued." 
              The authors' staff points out that SB 1082 would not  


                                        







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              change the basic rules for calculation of the amount of  
              support due and owing.  In other words, if the activation  
              does not affect the amount of the service member's  
              income, no modification would be called for under the  
              child support guideline.

              The authors also express a concern that in the service  
              member's absence, court orders have been made  
              inappropriately altering custody and visitation  
              arrangements without giving the service member an  
              opportunity to be heard on the issue.

            2.  Support for the bill
             
              The Armed Forces Retirees Association of California  
              (AFRAC), the sponsor of SB 1082, echoes the authors'  
              point, noting that "for those reservists who are paying  
              child support, complications ensue if they do not make  
              the necessary accommodations related to their reduced  
              income while they serve and they come home to legal  
              problems."  AFRAC notes that federal law prohibits the  
              modification of a support order for the time period prior  
              to the filing and service of a request for modification.   
              As a result, service members who fail to change their  
              support order at the front end do not have an opportunity  
              when they return to civilian life to reduce the amount  
              that they should have owed in the prior period.

              Committee staff was also contacted by 265 individuals  
              associated with the Military Parents Alliance expressing  
              their strong support for the bill.  These individuals  
              comment that SB 1082 "will help correct a terrible  
              injustice currently faced by activated reservists and  
              National Guardsmen who are noncustodial parents.  Today  
              these service personnel can return from deployment  
              overseas to find themselves hopelessly in arrears on  
              child support or even facing jail.  Others are taken  
              advantage of terribly in custody matters while they are  
              deployed."

            3.  Balancing the burdens imposed on the obligor and the  


                                        







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              obligee  

              Where a reservist is given short notice of his or her  
              imminent deployment to Iraq, the service member with  
              numerous obligations, including family obligations, may  
              find it so overwhelming that he or she cannot possibly  
              cope with it all, thus forgetting to take care of one or  
              two essential tasks.  For situations like the above, the  
              public policy behind SB 1082 finds its greatest support.   
              However, there may be other cases that occur where a  
              support obligor is given ample notice of activation, or  
              where the obligor is deployed in the United States, has  
              ready access to the form petition and a fax machine, and  
              holiday or other leave could bring him or her back to  
              California.  If for whatever reason that person fails to  
              pursue a modification order in a reasonable manner, that  
              service member would still be entitled under SB 1082 to  
              retroactive application of any later obtained  
              modification order (which could be months or years later,  
              but which would relate back to the original filing date  
              or service of the modification petition), as well as to  
              the waiver of penalties and non-accrual of interest for  
              the non-payment of that part of the support obligation  
              which could have been modified but was not.    

              Additionally, the potential hardship of a delayed,  
              retroactive modification of support on the support  
              obligee cannot be overlooked.  Although the obligee must  
              be served a copy of the notice of activation in order for  
              the modification to be made retroactive, that alone will  
              likely not inform the obligee of the amount the order  
              could be reduced. The child support guideline is not a  
              simple formula that allows the obligee to simply look at  
              the obligor's income and know how much support he or she  
              will be entitled to under the guideline.   The obligee,  
              who is relying on the support to feed, clothe and shelter  
              the family, has little opportunity to determine the means  
              they will be expected to live within just by receiving  
              this piece of paper.  When the obligor in fact had  
              reasonable time and opportunity to get to court before  
              deployment elsewhere in the United States but failed to  


                                        







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              take timely advantage, it might be argued that this  
              burden falls too heavily on the obligee.  In likely  
              recognition of this potential unfairness, the bill would  
              provide that the court, upon a showing of good cause and  
              for reasons stated, may decline to make a modification  
              retroactive.  (See page 6, lines 4 to 6.) 

              SHOULD THE BILL PROVIDE GREATER GUIDANCE TO THE COURTS BY  
              STATING THAT GOOD CAUSE TO REFUSE MAKING A MODIFICATION  
              RETROACTIVE WOULD INCLUDE THE CIRCUMSTANCE WHERE THE  
              SERVICE MEMBER'S DELAY IN PURSUING THE MODIFICATION  
              PROCEEDING WAS NOT REASONABLE? 

              SHOULD A SIMILAR GOOD CAUSE EXCEPTION BE MADE TO THE  
              PROPOSED NON-ACCRUAL OF INTEREST AND TO THE PROPOSED  
              AUTOMATIC WAIVER OF PENALTIES?  (See next Comment.)

              SHOULD A DISTINCTION BE DRAWN BETWEEN THOSE SOLDIERS  
              DEPLOYED OUT-OF-STATE AND THOSE DEPLOYED OVERSEAS FOR  
              PURPOSES OF APPLYING THE AUTOMATIC RETROACTIVITY,  
              NON-ACCRUAL OF INTEREST, AND WAIVER OF PENALTIES  
              PROVISIONS?

              In response, proponents of the broader measure could  
              argue that regardless of the length of the notice period  
              or the area of deployment, these soldiers were yanked out  
              of their regular lives and many of them are risking or  
              have risked their lives in Iraq and other places overseas  
              to protect our freedoms, and that a grateful state should  
              not begrudge them this forgiveness.   

            4.    SB 1082's approach to interest on arrears and  
              penalties  



              Interest on child support obligations has been the  
              subject of some legislative debate in the past several  
              years. Efforts were made to, among other things, reduce  
              the interest rate, not assess interest on support  
              obligations owed by incarcerated individuals, and change  


                                        







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              the way child support payments are credited so that  
              payments are credited first to the principal balance and  
              only after that to interest.  Generally, the Legislature  
              has not favored the forgiveness or waiver of interest on  
              unpaid child support.  



              This bill would provide that, if a service member fails  
              to take advantage of the proffered opportunity to file a  
              form notice of activation to military service, thereby  
              fixing the date for modification, the child support order  
              nevertheless does not accrue interest, and penalties  
              would not attach, on that amount owed and unpaid which  
              would not have accrued if the support order were properly  
              modified.  The authors believe that, no matter how  
              streamlined and simplified the modification process is  
              made, service members still often have only a handful of  
              days to address a huge variety of critically important  
              issues affecting their lives and the lives of their loved  
              ones prior to activation and deployment.  Although a  
              service member who fails to file the appropriate  
              modification request will not get the benefit of the  
              reduced amount of support, the bill would prohibit  
              interest from being assessed on the amount of support  
              that would not have been owed if the modification  
              occurred.  While this provision would provide special  
              treatment for service members who fail to obtain  
              modification orders as compared to other non-military  
              obligors who fail to modify their orders, the authors  
              assert that the fact these individuals are putting their  
              lives on the line to protect the nation, justifies  this  
              special treatment.  



              Although federal law prohibits the retroactive  
              modification of support obligations, by providing that  
              the interest does not ever accrue (as opposed to waiving  
              it after accrual), this bill does not appear to conflict  
              with federal law.  


                                        







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              As noted above in Comment 3, the bill does not  
              differentiate between the diverse situations of the short  
              notice activation and deployment to Iraq, and the lengthy  
              notice of activation and deployment to Washington State.   
                
            5.  Compromise provisions intended to aid returning soldiers  
              from Iraq

               At page 8, line 39, this bill would amend the existing  
              compromise of state-owed arrears program (operated by the  
              Department of Child Support Services) to add a special  
              compromise provision to benefit support obligors who owe  
              money to the state because of the state's provision of  
              child support payments to the soldier's child.  Where the  
              reservist or National Guard member was activated and  
              deployed out-of-state, and where he or she failed to  
              modify the support order to reflect his or her reduced  
              military income, and where arrears accumulated during the  
              period of deployment, this bill would declare as a matter  
              of law that a compromise (of the obligor's debt to the  
              state) is in the best interest of the state when the  
              compromise is to forgive the amount of support that would  
                                                                 not have accrued if the modification order had been  
              timely obtained.  

              This provision is intended in large part to benefit the  
              returning reservist or National Guard member who was  
              deployed for some months or years ago, and is thus not in  
              a position to take advantage of SB 1082's special  
              modification procedures.   However, this compromise  
              provision would also apply to those soldiers who were  
              activated and deployed after the effective date of the  
              bill, but who failed to use the special procedures.  

              While this provision also does not differentiate between  
              the extreme diverse situations of the short notice  
              activation and deployment to Iraq, and the lengthy notice  
              of activation and deployment to Washington State,  
              considerations about the hardship to the support obligee  
              don't apply because the debt is to the state.  Instead,  
              the burden of any shortfall of revenue resulting from the  


                                        







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              compromises would fall on the California taxpayer.   
              Nonetheless, the authors might consider adding a good  
              cause exception to this otherwise mandatory provision.   

            6.  Sidenote:  Compromise provisions will sunset on January  
              1, 2007 
               
              Existing Family Code Section 17560, which sets forth the  
              current compromise program, is scheduled for sunset on  
              January 1, 2007.   This program was enacted as part of a  
              budget deal to generate additional revenue for the state.  
               The Department of Child Support Services is directed to  
              make a mid-2006 report to the Legislature regarding the  
              program's success or failure. 
              SB 1082's compromise provisions are amended into that  
              section. Thus, the new compromise will also sunset on  
              January 1, 2007.   Hopefully, our reservists and National  
              Guard troops will be home before then.  
            7.  Stay provision may need clarifying technical amendment
               
              Upon the filing of the modification request, if the court  
              cannot hear the matter prior to deployment, the court is  
              generally required by federal law to grant a 90-day  
              minimum stay when the petitioning service member has  
              submitted a letter to the court demonstrating how the  
              current military duty requirements materially affect his  
              or her ability to appear, or a letter from the commanding  
              officer indicating that the service member's military  
              duty prevents appearance and that military leave is not  
              authorized.  Any additional stay must also be accompanied  
              by a letter demonstrating that continuing military duty  
              will have a material affect on his or her ability to  
              appear.  However, any additional stay is discretionary.   
              If the court refuses an additional stay, it must appoint  
              counsel to represent the interests of the service member.  
               

              This bill, beginning on page 4, line 11, would provide  
              that if the court cannot hear the matter prior to  
              deployment, the court shall grant a stay "consistent with  
              the time lines for stays" pursuant to federal law.   


                                        







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              Arguably, this provision could be read to excuse a  
              showing of the prerequisite condition under federal law:  
              that the soldier's duty prevents him or her from  
              appearing or affects the soldier's ability to appear.    

              SHOULD THE BILL BE CLARIFIED TO STATE THAT THE CONDITIONS  
              AS WELL AS THE TIME LINES FOR GRANTING A STAY SET FORTH  
              IN FEDERAL LAW ARE INCORPORATED INTO THIS BILL? 



            8.  Development of the court forms



               Typically, the Judicial Council produces new or revised  
              forms in one of two cycles, either January or July.  The  
              forms the Judicial Council develops are reviewed  
              internally at the Council by forms committees and others,  
              and also go out for public comment.  This bill would  
              require the Judicial Council to develop the forms created  
              by the bill within 90 days of the effective date of the  
              measure.  This would likely be outside of the traditional  
              cycle.  The authors note however, that they received  
              assurances from a high-level official at the  
              Administrative Office of the Courts that forms  
              necessitated by this bill could be produced outside the  
              normal cycle.

             


           Support:  Military Parents Alliance; 265 Individuals

          Opposition:  None Known
                                          
                                     HISTORY  
           
          Source:  Armed Forces Retirees Association of California

          Related Pending Legislation:  AB 265 (Haynes), pending in the  


                                        







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                               Assembly Judiciary Committee; no hearing  
                               date set
           
          Prior Legislation:  None Known
             
                                   **************