BILL ANALYSIS                                                                                                                                                                                                    






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


          SB 1483                                                S
          Senator Alquist                                        B
          As Amended April 17, 2006
          Hearing Date: April 25, 2006                           1
          Family Code                                            4
          BCP:cjt                                                8
                                                                 3

                                     SUBJECT
                                         
                       Child Support Modification Orders

                                   DESCRIPTION  

          This bill would create a five-county pilot project to  
          expedite the uncontested modification of child support  
          orders upon request by a local child support agency.

          (This analysis reflects author's amendments to be offered  
          in committee.)

                                    BACKGROUND  

          In California, county courts currently face substantial  
          demands on their limited resources, resulting in hearing  
          delays of up to 120 days.  Local county child support  
          services departments, seeking ways to reduce burdens on  
          county departments and the courts, propose this pilot  
          project based upon Hawaii's expedited child support  
          modification system.

          In Hawaii, the Office of Child Support Hearings system  
          allows modification of uncontested child support orders  
          without a formal hearing.  That process requires  
          notification of the parties to the proposed modification.   
          Either party can then object to the modification and  
          request a hearing on the matter.  The expedited process  
          reduced Hawaiian administrative hearings by one-third.

          The present bill seeks to adopt a version of that process.   
                                                                 
          (more)



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          Somewhat analogous to the Hawaiian process, parties would  
          be served with a proposed order, offered the opportunity to  
          object, and the court may enter orders for non-objecting  
          parties without holding a formal hearing.  Allowing  
          expedited orders in uncontested cases would save both court  
          and county child support services time and cost.






































                                                                       




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                             CHANGES TO EXISTING LAW
           
           Existing law  makes local child support agencies responsible  
          for establishing, modifying and enforcing child support  
          obligations.  [Fam. Code  17400.]

           Existing law  allows individuals seeking modification of  
          their child support orders to either contact their local  
          child support agency or file a motion with the court  
          requesting modification.  [Fam. Code  3651, 17400.]

           Existing law  provides a formula to calculate the state  
          guideline child support.  Courts have discretion to deviate  
          from this calculation when necessary.  [Fam Code.   
          4055-56.]
          
           Existing federal law  conditions grants of funds to states  
          under the Personal Responsibility and Work Opportunity  
          Reconciliation Act (PRWORA) upon the creation of expedited  
          procedures for the establishment, modification and  
          enforcement of child support.  [42 U.S.C.  654, 666.]

           Existing law  provides for an expedited child support order  
          process to provide support during the pendency of a support  
          action. [Fam. Code  3621 et seq.]

           This bill  would establish a procedure for the expedited  
          modification of child support orders. Local child support  
          agencies could seek modification of child support orders  
          when those orders are not in substantial conformance with  
          state guidelines.  (The bill would not apply to  
          modification orders sought solely by a parent.)

           This bill  would require agencies to serve instructions, a  
          copy of the application to modify child support, a child  
          support guideline worksheet, the proposed order of support  
          and objection to modification and request for hearing upon  
          both parties.  Parties would have 30 days to file their  
          objection along with their completed income and expense  
          form and either their three most recent pay stubs or tax  
          return.

           This bill  would require the court to set a hearing for the  
          objection.  At that hearing, the court may enter a child  
          support order in compliance with state guidelines.
                                                                       




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           This bill  would allow local child support agencies to file  
          the proposed order and declaration in support of the order,  
          including a statement verifying service on the parties and  
          absence of received objection. The court may issue a final  
          order upon receipt of those documents.  No process is  
          currently included for objections received after the 30-day  
          time frame to object. The author commits to working on  
          language with Judicial Council for an appeals procedure.

           This bill  would provide that any order modified pursuant to  
          this section be effective the first day of the month  
          following the date of service of the application to modify  
          child support on the parties.

                                     COMMENT
           
          1.    Author's amendments to be offered in committee  

            The author proposes to amend the bill as follows:

            a)  Page 3, lines 16-17, strike "The court shall set the  
            matter for hearing within 45 days of receipt"

            b)  Page 3, line 20, strike "shall" and insert "may"

            c)  Commitment to working on language with Judicial  
            Council for an appeals procedure to vacate expedited  
            child support modification orders for individuals who  
            were not properly served, prior to SB 1483 leaving Senate  
            Appropriations.  

            These amendments address concerns about the removal of  
            court discretion, calendar preference, and lack of an  
            appeals process in the current bill. (See Comments 3 and  
            6.)

          2.    Stated need for the bill  

            According to the author, federal law "requires states to  
            have an expedited process for modification of child  
            support orders."  While an existing procedure already  
            exists for expedited creation of child support orders, no  
            procedure exists for modification of those orders.  The  
            author contends that this bill would address "that  
                                                                       




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            deficiency by establishing pilot projects in five  
            California counties - Alameda, Fresno, Orange, San Mateo  
            and Santa Clara - to test the use of an expedited process  
            for child support modifications."  

            Proponents, the Child Support Directors Association  
            (CSDA), contend that this expedited procedure will reduce  
            court workload and thus court time and cost required to  
            modify these orders.  CSDA adds that "[t]he proposed  
            procedure would reduce the number of cases that go  
            through the court process, thus enabling the courts to  
            calendar and hear the cases that must be heard by the  
            court in a timelier manner." CSDA's letter of support  
            also indicates that they expect this procedure to  
            "increase the percentage of current support collected,  
            reduce the accrual of arrears, and increase the  
            cost-effectiveness of [local child support agencies]."

            Finally, materials submitted by the author's office on  
            Hawaii's expedited program contend that "transfer of  
            Hawaii's proposed order practice [to] California would  
            present virtually no implementation challenges . . . the  
            Hawaiian practice is nearly identical to California's  
            proposed judgment practice."

          3.    Court discretion  

            Initial concerns over SB 1483 focused on the removal of  
            judicial discretion both when local child support  
            agencies submit proposed orders and at hearings for  
            objecting parties.  Sponsors indicate that their  
            intention was not to remove existing judicial discretion  
            exercised by the court.  The author's proposed amendments  
            clarify that the court may, but is not required to enter  
            an order in compliance with state child support  
            guidelines.  This discretion is especially important  
            during hearings modifying orders for child support.

            For example, both parties could be served by the local  
            child support agency with the required documents.  One  
            party could object to the proposed support order, request  
            a hearing, and submit the required documents.  At the  
            proposed hearing, the court initially uses the state  
            guideline formula to calculate the proper child support.   
            Initial calculations could require child support payments  
                                                                       




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            such that the individual is placed well under the poverty  
            line.  In that instance, the court has discretion to  
            modify child support as necessary while still considering  
            the best interests of the child.  Removal of court  
            discretion in this instance could force courts to enter  
            child support orders that force individuals well below  
            the poverty line.

          4.    Inconsistencies in service requirements  

            Under subdivision (c) of proposed Family Code Section  
            17441, SB 1483 would require service of the required  
            documents according to the Code of Civil Procedure.  In  
            subdivision (g) of the same section, SB 1483 refers to  
            that service according to Civil Procedure Section 1013.   
            Specifically, Section 1013 refers to service by mail,  
            express mail, or fax.  

            Earlier versions of the bill referenced Section 1013 of  
            the Code of Civil Procedure in subdivision (c), but the  
            April 17, 2006 amendments removed that reference.  By  
            removing reference to that specific section, service is  
            allowed according to any allowable method under the Code  
            of Civil Procedure.  The Code of Civil Procedure only  
            allows service by mail to an individual's residence,  
            office with delivery service, or between individuals who  
            regularly communicate by mail.  Allowing service by mail,  
            when allowed, could generate cases where an individual  
            does not actually receive notice within the 30 day  
            timeframe.

            For example, a local child support agency could serve an  
            individual by mail with the required information at their  
            residence, as allowed under the Code of Civil Procedure.   
            The individual may be out of town on vacation, or  
            otherwise not at the residence for an extended period of  
            time. After 30 days without objection, this pilot project  
            would allow a local child support agency to file the  
            proposed order with the court.  As discussed below, the  
            author has committed to working with Judicial Council on  
            language for an appeals process to partially address this  
            concern.  

            SHOULD PERSONAL SERVICE, UNDER CIVIL PROCEDURE SECTION  
            1011 BE REQUIRED UNDER BOTH SECTION (C) AND (G) TO  
                                                                       




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            PREVENT PROBLEMS THAT ARISE WHEN USING SERVICE BY MAIL?

          6.    Unclear appeals process if notice was not received  

            As mentioned above, SB 1483 allows a court to enter a  
            final order of modification of child support if no  
            objection is received within 30 days.  No appeals process  
            is described for individuals who do not receive proper  
            notice by the local child support agency.  The author has  
            committed to work with Judicial Council on language to  
            develop an appropriate appeals process.  This appeals  
            process would allow for the expedited child support  
            modification order to be vacated by the court in cases  
            where notice was not properly served.

            This situation may arise as follows: an individual may  
            notice that a different amount of child support is being  
            deducted from his paycheck.  That individual contacts the  
            county and discovers that a proposed child support  
            modification order was allegedly served on him several  
            months ago.  The local child support agency submitted the  
            proposed order along with the declaration stating that  
            the individual was properly served.  The author's  
            proposed appeals process would allow this individual to  
            set aside the expedited child support modification order  
            due to lack of notice.  

          7.    Proposed process  

            SB 1483's proposed process would proceed as follows:  

            The local child support agency would determine that a  
            child support order is not in substantial conformity with  
            state guidelines.  The agency then serves both parties  
            with an application to modify child support, guideline  
            worksheet, proposed order of support, objection to  
            modification and request for hearing, and instructions.   
            Parties have 30 days to serve their objection and  
            supporting documents.  

            Upon receipt of any objection, the local child support  
            agency must then file the objection with the court.  The  
            court must set the matter for hearing, at which time the  
            court may enter an order for child support in accordance  
            with state child support guidelines.  
                                                                       




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            If no objection is received, the agency may file their  
            proposed order along with a declaration stating that  
            parties were served with the proposed order and no  
            objection was received.  The court may then issue a final  
            order upon receipt of those documents without further  
            hearing or evidence.  

          8.    Effective date of order  

            Orders modified under the proposed pilot project would be  
            effective on the first day of the month following the  
            date that service of the proposed order on the parties is  
            completed.  Courts have discretion to change this date  
            upon a showing of good cause.  As written, this creates a  
            scenario where the final order is deemed effective prior  
            to the date it was entered.

            For example, if parties were served with a proposed order  
            on April 25th, and a hearing on an objection was held on  
            June 1st, any order entered under this section would be  
            effective on May 1st, a month prior to the hearing.   
            While this would ensure that parties' payment of child  
            support complies with their obligations, it is strange  
            that this bill makes an order retroactive without stating  
            that they are retroactive.  

            SHOULD ORDERS ENTERED PURSUANT TO THIS SECTION INSTEAD BE  
            EFFECTIVE UPON GRANTING OF THE MODIFIED CHILD SUPPORT  
            ORDER?

          9.    Hawaii's Office of Child Support Hearings, compared

             Proponents assert that the proposed system is virtually  
            identical to the already enacted Hawaiian system.  If  
            California's results mirror those of Hawaii, courts and  
            local child support agencies can expect around a  
            one-third reduction in noticed hearings in these matters.  
             This reduction would save both the courts and local  
            child support agencies the time and cost of preparing for  
            these hearings.

            Unlike California, the Hawaiian system is an  
            administrative process.  Orders issued through this  
            administrative process have the same effect as family  
                                                                       




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            court orders establishing, modifying, or enforcing child  
            support.   Parents may elect to initiate child support  
            proceedings either in juvenile family courts or through  
            administrative hearings, while actions by the Hawaiian  
            Child Support Enforcement Agency (HCSEA) must take place  
            in administrative hearings.  Supporters contend that an  
            administrative hearing process need not be considered in  
            California "as it appears there is no advantage in terms  
            of efficiency or effectiveness between the two models for  
            dispute resolution."

            As in the process proposed by this bill, individuals in  
            Hawaii are notified of a proposed order and given the  
            opportunity to request a hearing.  Unlike SB 1483's  
            process, Hawaiian parents seeking to contest a proposed  
            order must merely file a written request for hearing  
            within the appropriate timeframe.  [HRS  576E-6.]  In  
            contrast, SB 1483 requires filing of the objection,  
            completed income and expense declaration and either the  
            three most recent pay stubs or most recent income tax  
            return.  SB 1483's additional filing requirements both  
            provide the court with information as to why the proposed  
            order is contested, and place a higher burden on the  
            objecting parent.

          Support:   San Mateo County Board of Supervisors; County of  
                 Fresno Board of Supervisors; Child Support Directors  
                 Association (CSDA); San Mateo County Board of  
                 Supervisors; Orange County Board of Supervisors;  
                 Alameda County Department of Child Support Services

          Opposition: None Known

                                     HISTORY
           
          Source: Orange County Department of Child Support Services;  
                Fresno County Department of Child Support Services;  
                San Mateo County Department of Child Support Services

          Related Pending Legislation: None Known

          Prior Legislation: None Known

          
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