BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1483
                                                                  Page  1

          Date of Hearing:   August 9, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   SB 1483 (Alquist) - As Amended:  June 26, 2006 

          Policy Committee:                              JudiciaryVote:9 -  
          0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill would allow five participating counties to implement  
          an expedited child support order modification process until  
          January 1, 2010 and would require the Judicial Council and the  
          Department of Child Support Services to evaluate the success of  
          the expedited processes.

          FISCAL EFFECT  

          1)The workload costs for the Department of Child Support  
            Services to develop forms for the expedited process and  
            develop criteria to determine eligible cases could reach  
            $125,000. 

          2)The cost of evaluating the pilot project could reach $250,000  
            (based on evaluation costs of other pilot projects).  

          3)In addition to the costs associated with the legislation, the  
            modification process could result in savings for the courts  
            and could increase the amount of child support collected.

           COMMENTS  

           1)Rationale  .  According to the sponsor, the Child Support  
            Directors Association, this bill would simplify the  
            modification of expedited child support orders by allowing  
            them to be administratively amended, rather than the current  
            process, which requires a court-based modification process.   
            California has long struggled with trying to improve and  
            simplify the way child support is collected in this state.  
            This pilot could help in that effort.








                                                                  SB 1483
                                                                  Page  2


           2)Background  .  Currently, if a child support order is too high  
            for a non-custodial parent (NCP) to afford (or, conversely,  
            too low an amount) the family must return to court to have the  
            order modified. Generally, setting a child support order that  
            is more than the NCP can afford results in non-payment of  
            child support and a large arrearages debt accrued by the NCP.  
            These arrearages grow dramatically over time and NCPs are  
            charged interest on their past-due amounts.  Most of this debt  
            becomes uncollectible and is never recovered. Currently, in  
            California, NCPs owe over $19 billion in past due child  
            support and only slightly over $1 billion was collected in  
            2005. 

           3)Increased Child Support Collections  .  To the extent that an  
            expedited out-of-court modification procedure is adopted,  
            local child support directors assert that the state should see  
            an improvement in the ability to collect child support for  
            custodial parents and their children.  Being able to quickly  
            modify a child support order to the appropriate level based  
            upon the actual income of the NCP and the needs of the family  
            should help NCPs maintain their child support payments and  
            avoid accruing arrearages.

           4)Pilot Counties  .  This bill limits participation in the pilot  
            project to Alameda, Fresno, Orange, San Mateo, and Santa Clara  
            counties. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081