BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          SB 1355 (Wright)
          As Amended April 5, 2010
          Hearing Date: May 4, 2010
          Fiscal: No
          Urgency: No
          KB:jd
                    

                                        SUBJECT
                                           
                     Child Support:  Suspension of Support Order

                                      DESCRIPTION  

          This bill would provide that the obligation of a person to pay  
          child support pursuant to an order that is being enforced by a  
          local child support agency is suspended for the period of time  
          in which the obligor is incarcerated or involuntarily  
          institutionalized, except as specified.  This bill would further  
          provide that, upon the release of the obligor, the obligation to  
          pay child support would immediately resume in the amount  
          specified in the child support order prior to the suspension of  
          that obligation.  

                                      BACKGROUND  

          As of June 30, 2008, 2.3 million prisoners were held in federal  
          and state prisons, or local county jails.  Approximately  
          fifty-two percent of state inmates and sixty-three percent of  
          federal inmates reported having an estimated combined 1.7  
          million children of minor age.  Between 1991 and 1997, the  
          number of incarcerated parents in state and federal prisons  
          increased by seventy-nine percent.

          For incarcerated parents who are subject to a child support  
          order, arrears and interest will accrue during their period of  
          incarceration unless the parent petitions the court for a  
          modification of the support order.  However, this is not often a  
          realistic alternative for incarcerated parents who are unlikely  
          to know about the modification process. Currently, there is no  
          uniform statewide approach being utilized to assist this  
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          population of obligors, although the Department of Child Support  
          Services has recently established a workgroup to work towards  
          this end.  Lack of resources at the local level has also  
          compounded this problem, as local child support agencies do not  
          have the means to implement outreach programs to parents  
          incarcerated within their jurisdiction.  In the meantime, the  
          arrears balance for the state's incarcerated parents continues  
          to grow, but will remain largely uncollectible.  This has  
          implications not only for the state's federal child support  
          performance measures, which affects the incentives funding  
          received from the federal government, but also for the rates of  
          recidivism for obligors. 

          In order to address these issues, this bill seeks to  
          automatically suspend child support obligations when a child  
          support obligor is incarcerated or involuntarily  
          institutionalized for more than 30 days.

                                CHANGES TO EXISTING LAW
           
           Existing law  establishes the Department of Child Support  
          Services (DCSS) as the single statewide agency responsible for  
          the administration and management of California's child support  
          enforcement program and administers the state plan for securing  
          child support and determining paternity.  (Fam. Code Sec.  
          17202.)

           Existing law  requires, at the local level, the child support  
          enforcement program to be run by local child support agencies,  
          which shall have the responsibility for promptly and effectively  
          establishing, modifying, and enforcing child support  
          obligations.  (Fam. Code Sec. 17400.)

           Existing law  provides that a support order may be modified or  
          terminated at any time as the court determines to be necessary.   
          Existing law provides that such support modifications or  
          terminations may only be made pursuant to the filing of a motion  
          or an order to show cause.  (Fam. Code Sec. 3651.)

           Existing federal law  prohibits states from enacting laws  
          providing for the retroactive modification or termination of a  
          support order, except that an order modifying or terminating a  
          support order may be made retroactive to the date of the filing  
          of a notice of motion or order to show cause to modify or  
          terminate the order.  (42 U.S.C. section 666(a)(9); Fam. Code  
          Sec. 3653.)
                                                                      



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           This bill  would provide that the obligation of a person to pay  
          child support pursuant to an order that is being enforced under  
          Title IV-D of the Social Security Act is suspended for the  
          period of time in which the obligor is incarcerated or  
          involuntarily institutionalized for any period exceeding 30  
          consecutive days.  

           This bill  would provide that, upon the release of the obligor,  
          the obligation to pay child support would immediately resume in  
          the amount specified in the child support order prior to the  
          suspension of that obligation.  

           This bill  would provide that, notwithstanding the  
          above-described provisions, the court may continue the  
          obligation of the person ordered to pay support of a child  
          during a period in which the person is ordered to pay support is  
          incarcerated or involuntarily institutionalized upon the request  
          of the person to whom the support payments are to be made, and  
          upon the finding that the obligor has the means to pay support  
          while incarcerated or involuntarily institutionalized.  
           This bill  would define "incarcerated or involuntarily  
          institutionalized" as including, but not limited to, involuntary  
          confinement to a state prison, county jail, or juvenile facility  
          operated by the Division of Juvenile Facilities in the  
          Department of Corrections and Rehabilitation, or a mental health  
          facility.

           The bill  would provide that "suspend" means that the child  
          support order is modified and set to zero dollars for the period  
          in which the obligor is incarcerated or involuntarily  
          institutionalized.   

                                        COMMENT
           
           1.Stated need for the bill

           The author states:

            There are a number of reasons why orders should be  
            modified/suspended for prisoners.  First, accumulated arrears  
            may make it more difficult for prisoners to make a successful  
            transition from prison back to the community.  Ex-offenders  
            may face wage attachments up to 65 percent of their income if  
            they do become employed and can face driver's license  
            suspensions or other coercive enforcement measures.  
                                                                      



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            Additionally, families do not benefit from arrears that can  
            never be paid.  Finally, since prisoners are unlikely to be  
            able to make current support payments and payments on arrears,  
            failure to collect in these cases will negatively influence  
            the federal performance measures and, hence, the amount of  
            incentives the state receives from the federal government ?  
            There are a large number of men and women who are  
            incarcerated, institutionalized or entering prison unaware of  
            the existing child support orders against them.  For those  
            individuals and others who are or become aware of the support  
            order, many are unaware of their responsibility to notify the  
            court of their change in circumstance.  In these cases, a  
            parent's legal responsibilities to comply with their child  
            support order remain.  On an average, incarcerated parents owe  
            more than $20,000 when they are released from prison [citation  
            omitted].  Unless modified, accumulated child support debt can  
            undermine an individual's effort to obtain and maintain  
            regular employment when released - resulting in their  
            inability to pay child support and reunite with their family.   


          In support, the Family Law Section of the State Bar writes:

            As amended, SB 1355 follows the spirit of the Santa Clara  
            County Standard Orders Attachment which is made a part of all  
            matters being enforced under Title IV of the Social Security  
            Act.  The Santa Clara County Standards Orders Attachment  
            provides that child support is automatically modified and set  
            at zero dollars per month starting on the 1st day of the month  
            following the incarceration of a child support obligor or the  
            entrance of an obligor into a court-ordered licensed  
            residential drug and/or alcohol treatment facility program  
            that lasts for 30 or more consecutive days and the child  
            support obligor has no earnings or other source of income.

           2.Policy arguments for an automatic suspension of obligation
           
          In 1999, Governor Gray Davis signed legislation creating the  
          Department of Child Support Services (DCSS) and enacting massive  
          reforms of the state's child support system.  (AB 196 (Kuehl,  
          Chapter 478, Statutes of 1999); SB 542 (Burton, Chapter 542,  
          Statutes of 1999).)  As part of the reforms, DCSS was mandated  
          to analyze the current amount of child support arrears statewide  
          and determine the amount that is realistically collectible.   
          DCSS contracted with the Urban Institute to conduct this study,  
                                                                      



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          which published its findings and recommendations on how to  
          improve collectibility of arrears in 2003.  (The Urban  
          Institute, Examining Child Support Arrears in California: The  
          Collectibility Study, March 2003.)

          One of the study's recommendations was to suspend child support  
          orders by operation of law while noncustodial parents are  
          incarcerated if they have no income or assets.  The study found  
          that, although very few debtors were in state prison at any  
          point in time, their child support situations were dismal on  
          average.  The median amount of child support orders for  
          incarcerated debtors was $291 per month, which was only slightly  
          lower than the median amount among all debtors.  However, the  
          reported income and assets for incarcerated debtors was  
          substantially lower than other debtors.  According to the study,  
          approximately half of incarcerated debtors had reported incomes  
          in the two years prior to incarceration and their median annual  
          net income was just under $3,000.  The median arrears amount was  
          $14,564.  

          The large amount of arrears, combined with an inability to pay,  
          can make it more difficult for individuals to make the  
          successful transition from prison back into the community, thus  
          increasing the likelihood of recidivism.  However, while there  
          appears to be a general consensus that more needs to be done to  
          reach out to this specific population of support obligors and  
          find ways to reduce or eliminate arrears, there are several  
          obstacles to implementing a statewide automatic suspension of  
          support obligations.  These are discussed below.

           3.General concerns regarding workability of automatic suspension  
            of order

                  a)        Tracking of incarcerated obligors
                  
            California currently has an automated child support system,  
            which, among other things, tracks open child support cases,  
            payments, and arrears.  However it does not interface with the  
            database maintained by the California Department of  
            Corrections and Rehabilitation (CDCR).  Thus, there is no way  
            for DCSS to immediately know when an obligor has been  
            incarcerated for more than 30 days for the purposes of  
            suspending the support obligations.  Furthermore, DCSS has no  
            way of knowing when the obligor has been released so that the  
            support obligation can be reinstated.  In order to properly  
            effectuate this bill the state would need more sophisticated  
                                                                      



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            and comprehensive interlinked databases.  But, even this type  
            of system would have limitations because it would not  
            necessarily contain information on obligors who are  
            incarcerated in different states. 

            b)   Notice to the custodial parent  

            There is a lack of clarity on how notice would be provided to  
            the custodial parent who is receiving the support payments  
            under a system that automatically suspends child support  
            obligations when obligors are incarcerated for a specified  
            period of time.  For payments or arrears owed to the state,  
            this would arguably not be as much of an obstacle since  
            presumably DCSS or a local child support agency would be  
            notified of the incarceration in order for the obligation  
            amount to be adjusted.  However, in cases where payments are  
            being made directly to a custodial parent, there does not  
            appear to be any process in place by which the custodial  
            parent would be notified of the incarceration or subsequent  
            suspension of obligation.  Potentially a custodial parent  
            would stop receiving payments with no prior knowledge of the  
            automatic suspension and no way to object to the suspension.  

            Under this bill, the court would be authorized to continue the  
            obligation at the request of the custodial parent if it makes  
            a finding that the obligor has means to pay support during his  
            or her period of incarceration or involuntary  
            institutionalization.  Assuming that a custodial parent has  
            evidence of the obligor's ability to pay, the lack of notice  
            would prevent him or her from actually petitioning the court  
            to continue the order.

            c)   Incarcerations due to abuse of supported child  

            This bill would provide for an automatic suspension of support  
            obligations regardless of the reason why the obligor was  
            incarcerated or involuntarily institutionalized.  Potentially,  
            an obligor who is incarcerated for committing acts of domestic  
            violence against the child or custodial parent would have his  
            or her support obligation suspended.  This is arguably not  
            consistent with the state's public policy in providing for  
            children's support and safety.  
           
          4.Suggested amendments 
           
            The author has acknowledged some of the obstacles discussed  
                                                                      



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            above in implementing a full-fledged automatic suspension of  
            support for individuals who are incarcerated or involuntarily  
            institutionalized, particularly the lack of information  
            sharing between DCSS and CDCR.  According to the author, this  
            bill is intended to provide a way for an obligor to obtain an  
            adjustment of arrears after he or she is released from a  
            prison or institution without having to seek a modification in  
            court, and without running afoul of the federal prohibition on  
            the retroactive modification of arrears.
            Accordingly, this Committee may wish to consider whether this  
            bill should be amended to address the concerns in Comment 3.  

                Tracking of incarcerated individuals/Notice to support  
               obligee

                In light of the difficulties of tracking incarcerated  
               obligors, the following amendment would provide that the  
               obligor would be required to petition the court for an  
               adjustment of arrears, and serve copies on both the support  
               obligee and the local child support agency.  The burden  
               would be on the obligor to show proof of the dates of  
               his/her incarceration or involuntary institutionalization,  
               as well as proof that during such time, he/she was unable  
               to earn any income.  The obligor's arrears would not be  
               adjusted until the court has approved the petition.

                 On page 2, line 6, after the period, insert:

                  "(2) The suspension of the support obligation shall only  
                 apply for the period of time during which the obligor is  
                 incarcerated or involuntarily institutionalized, after  
                 which the obligation shall immediately resume in the  
                 amount otherwise specified in the child support order.
                 (b)The court shall provide notice to the parties of the  
                 obligation suspension provided for in subdivision (a) at  
                 the time the order is issued.

                 On page 2, strike lines 7-10 and insert:

                 "Upon his or her release from incarceration or  
                 involuntary institutionalization, an obligor may petition  
                 the court for an adjustment of the arrears pursuant to  
                 suspension of support obligation authorized in  
                 subdivision(b).  The obligor must show proof of the dates  
                 of his/her incarceration or involuntary  
                 institutionalization, as well as proof that during such  
                                                                      



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                 time, he/she was unable to earn any income during that  
                 time.  The obligor shall serve copies of the petition to  
                 the support obligee and the local child support agency.   
                 An obligor's arrears shall not be adjusted until the  
                 court has approved the petition. 
                 
                Incarceration due to domestic violence or abuse
           
               The following amendments would ensure that the court has  
               discretion not to approve the petition if it finds that the  
               obligor had means to pay the ordered support during the  
               period of incarceration or if the obligor was incarcerated  
               for domestic violence, failure to pay child support, and  
               other related offenses.

                 On page 2, line 11, strike "continue the"
                 On page 2, strike lines 13-15

                 On page 2, line 16, strike "whom the support payments are  
                 to be made, and upon" and insert:

                 "deny the obligor's petition if it makes a finding that:  
                 (1) The obligor had the means to pay support while  
                 incarcerated or involuntarily institutionalized; or (2)  
                 The obligor was incarcerated or involuntarily  
                 institutionalized for any offense constituting domestic  
                 violence, as defined in Section 6211, against the support  
                 obligee or supported child, or for any offense that could  
                 be enjoined by a protective order pursuant to Section  
                 6320, or as a result of his or her failure to comply with  
                 a court order to pay child support. 

                           On page 2, strike lines 17-19

                Prospective application
           
               The following amendment would clarify that this bill would  
               only apply to orders issued after the effective date of the  
               bill:
               
                  On page 2, line 28, after the period insert:

                 (g) This section applies to all child support orders  
                 issued and all modifications of child support orders  
                 requested on or after January 1, 2011.

                                                                      



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                Judicial Council Forms
           
               In order to make the adjustment process as simplified as  
               possible, the following amendment would require Judicial  
               Council to develop a form for the petition for adjustment  
               of arrears.

                 On page 2, after Section 1, insert:

                 The Judicial Council shall proscribe forms necessary for  
                 the implementation of Section 4007.5 of the Family Code,  
                 including forms for a petition to adjust arrears.

          Committee staff notes that these amendments, in addition to  
          addressing the concerns raised in Comment 3, would also  
          incorporate additional elements from Santa Clara County's  
          program, which is reportedly working well.


           Support  :  California Public Defenders Association; Family Law  
          Section of the State Bar 

          Opposition  :  None Known


                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :  

          AB 862 (Bass) of the 2005 legislative session would have  
          required that information and other materials regarding child  
          support modification be distributed to any parent with minor  
          children, while the parent is in the custody of the California  
          Department of Corrections and Rehabilitation (CDCR).  This bill  
          was vetoed.
           
          AB 2245 (Wright) of the 2002 legislative session would have,  
          among other things, required that a child support order be  
          suspended, including any arrearage, interest, or penalty that  
          may accrue, if the support obligor is or was incarcerated in a  
          penal institution for more than 29 consecutive days, and is  
          without the resources to pay child support.  This bill failed  
                                                                      



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          passage in the Assembly Judiciary Committee.  

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