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HomeMy WebLinkAboutMINUTES - 07182000 - C61 TO. BOARD OF SUPERVISORS Contra 1� PHIL BATCHELOR, COUNTY ADMINISTRATOR FROM: Costa County DATE: duly 9, 2000 SUBJECT. LEGISLATION: AB 1995 (Aroner) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RE OMMENDATION: ADOPT a position in SUPPORT of AB 1995 by Assemblywoman Dion Aroner which, as amended .lune 22, 2000, would implement a child support amnesty program. BACKGROUND: California's children rely on the regular payment of child support to meet their basic needs and living expenses, including food, clothing, and shelter. There is over$14 billion in uncollected child support payments in California. Large child support arrearages owed to the state can discourage noncustodial parents from making regular payments of current child support and participating in their children's lives. In an effort to address this situation, Assemblywoman Aroner has introduced AB 1995. As amended June 22, 2000, AB 1995 would do the following: • Offer, during the period from April 1, 2002, through September 30, 2002, a one-time child support amnesty program. • To be eligible, the noncustodial parent would have to owe the state at least $5,000 in arrearage for reimbursement of aid. CONTINUED ON ATTACHMENT: YES SIGNAYURE: -RECOMMENDATION RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE -APPROVE OTHER SIGNATURES: PHIL A I ACTION OF BOARD ON July 18 2000 APPROVED AS RECOMMENDED XX OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE XX UNANIMOUS(ABSENT � � } AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT. ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. C� ATTESTED July 18, 2000 Contact See Pa e 2 PHIL BATCHELOR,CLERK OF THE BOARD OF cc: g SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY • The noncustodial parent would have to enter into a stipulation and order which would specify that the parent would have to remain current (within 60 days) for all future child support obligations. Failure to make payments in this manner would result in the arrearages not being forgiven and would be immediately enforceable with interest. • The arrearages sought to be forgiven would only be forgiven upon the expiration of all existing child support orders and a showing that there are no child support arrearages that have accrued after the date the stipulation and order were signed. • The amnesty would only apply to child support owed to the state as repayment for welfare aid that had been extended to the family. Private child support owed directly to a family would not be subject to being forgiven. The County's Family Support Transition Manager, Bill Otterbeck, recommends that the Board of Supervisors take a support position on this important piece of legislation. The Director of the Employment and Human Services Department,John Cullen, likewise endorses the legislation and recommends that the Board support it. cc: County Administrator District Attorney Bill Otterbeck, Family Support Transition Manager Assemblywoman Dion Aroner Room 2163, State Capitol Sacramento, CA 95814 Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L. Street, Suite 100 Sacramento, CA 95814 2- AB 1995 Assembly Bill-AMENDED Page 1 of b BILL NUMBER: AB 1995 AMENDED BILL TEXT AMENDED IN SENATE JUNE 22, 2000 INTRODUCED BY Assembly Member Aroner FEBRUARY 18, 2000 An act to add Chapter 6 (commencing with Section 17900) to Division 17 of the Family Code, relating to child support. LEGISLATIVE COUNSEL'S DIGEST AB 1995, as amended, Aroner. Child support: amnesty program. Existing law requires the local child support agency in each county to attempt to enforce child support orders in cases where the custodial parent is a California Work Opportunity and Responsibility to Kids (CalWORKs) recipient. This bill would require the Department of Child Support Services and the local child support agency in each county to offer, during the period from GetebeiE 1, 2991, Ee Haters 31, 2092, April 1, 2002, to September 30, 2002, a one-time child support amnesty program pursuant to which individuals who have child support arrearages owed to the state that exceed $5, 000 shall be given an opportunity to have all or a portion of the arrearage forgiven, subject to a contract containing specified requirements. Operation of the bill's provisions would be contingent on a specified finding by the director of the department. The Judicial Council would be required to adopt the forms necessary for the program by April 1, 2002. Contingent on an appropriation therefor in the annual Budget Act, the department would fund the reasonable costs of the amnesty program incurred by local child support agencies. This bill would further provide that, notwithstanding the amnesty program described above, no action shall be taken against a parent to collect child support arrearages owed to the state for reimbursement of foster care costs paid to support that parent 's child if the parent on whose behalf foster care costs were or are being paid has reunified with the child or is actively seeking to reunify with the child and the family's gross income is less than a specified level. Because the bill would impose requirements upon local child support agencies, the bill would eenstltut-e create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. http://www.leginfo.ca.gov/pub/bill/asm/ab_1951-2000/ab_1995 bill_20000622_amended scO7/1012000 AB 1995 Assembly Bill-AMENDED Page 2 of 6 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) California's children rely on the regular payment of child support to meet their basic needs and living expenses, including food, clothing, and shelter. (2) There is over 14 billion dollars ($14,000,000,000) in uncollected child support payments in California. (3) Gnly 17 peEeent of fafftilles whe leek tom-statefer n, , et (4) Large child support arrearages often keel owed to the state can discourage noncustodial parents from -_gla__j paying making regular payments of current child support and participating in their children's lives. (8) (4) A child support amnesty program that forgives child support arrearages owed to the state for welfare debt and is conditioned on meeting euEEeet ongoing child support obligations should be tested to determine if it will increase the payment of current child support, increase the participation of noncustodial parents in the lives of their children, and assist in lifting children out of poverty. (b) It is the intent of the Legislature to create a one-time child support amnesty program to do all of the following: (1) Give- Reduce poverty and increase the collection and distribution of current child support by giving noncustodial parents with child support arrearages owed to the state the opportunity to have those arrearages forgiven, provided that the noncustodial parent remains current on all future child support payments or remains in compliance with the terms for repayment of debt agreed to in accordance with the child support amnesty program (Chapter 6 (commencing with Section 17900) of Division 19) (2) Reduce poverty among children who receive or have received public assistance by increasing the amount and consistency of child support collections. (3) Assist noncustodial parents in assuming a larger role in their children's lives by providing not only financial but also emotional support. (4) Target for the one -time child support amnesty program those noncustodial parents who are most at risk of accruing large, uncollectible arrearages, including disabled parents, incarcerated parents, and unemployed or seasonally employed parents. SEC. 2. Chapter 6 (commencing with Section 17900) is added to Division 17 of the Family Code, to read: CHAPTER 6. AMNESTY PROGRAM 17900. (a) The department and each of the local child support agencies shall offer, during the period from Getebex 1, 29941 -te HaLceh 31, 2002,- April 1, 2002, to September .30, 2002, inclusive, a one-time child support amnesty program pursuant to which every individual who has a current child support order and a child support arrearage owed to the state for the reimbursement of aid that, as of January 1, 2000, exceeds five thousand dollars ($5,000) is given an opportunity to have all or a portion of that obligor's total arrearage forgiven , subject to paragraph (3) of subdivision (b) Any individual who requests that a child support arrearage be forgiven http://www.leginfo.ca.gov/pub/bill/asrn/ab_1951-2000/ab_1995 bill 20000622 amended s€O7/10/2000 AB 1995 Assembly Bill -AMENDED Page 3 of 6 shall, during the pefi:e--' — 31, 20G21 ne ••eYve _- during the period from April 1, 2002, to September 30, 2002, inclusive, shall enter into a eenticaet . stipulation and order with the department and the local child support agency that contains all of the following provisions: (1) —The-- Subject to paragraph (2) , the obligor shall remain current with all future child support obligations owed by the obligor regardless of whether the child support arrearage was incurred for the child for whom current support is ordered. (2) If the obligor fails to make payments on allex ongoing support obligations for more than 60 days without good cause , the qualifying child support arrearagesW. need-- shall not be forgiven and shall be immediately enforceable , with interest accruing on the qualifying arrearages from the time the obligor's participation in the amnesty program terminates, upon notice to the obligor. The department shall, by regulation, list the circumstances that constitute good cause for excusing a delinquency beyond 60 days that shall consider the reasonableness of the obligor's conduct, the obligor's ability to pay, and the child's best interests. (3) The qualifying child support arrearages sought to be forgiven shall only be forgiven upon the expiration of all existing child support orders and a showing that , subject to paragraph (2) , there are no child support arrearages that have accrued after the date the stipulation and order was signed. (4) The department and the local child support agency shall take no action to recover the qualifying child support arrearages as long as the obligor is in compliance with the child support amnesty program stipulation and order . (5) Only child support arrearages that are owed to - the this state as reimbursement under state and federal law shall be eligible to be forgiven and that any child support arrearages that are owed directly to a family will not be forgiven and will be enforced. (6) Interest shall not accrue on the qualifying child support arrearages sought to be forgiven during the time the obligor is in the amnesty program. (7) Any other provision that the department determines to be necessary to effectuate the requirements of this section. (b) The department _k_'_'_, by adeptlenof ala 't===d es , in consultation with the local child support agencies and child support advocates, shall adopt regulations in accordance with the Administrative procedure Act (Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code) to effectuate this section no later than April 1, 2002. The adoption of any emergency regulation filed with the Office of Administrative Law on or before October 1, 2003, shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, and safety or general welfare. These emergency regulations shall remain in effect for not more than 180 days. The regulations shall include directives to the local support agencies on the following: (1) Uniform implementation of the amnesty program across the state. (2) Providing notice to the custodial parent that the obligor has applied for the amnesty program. (3) The maximum debt owed to this state that can be forgiven, given the family's interest in the support and all applicable federal http,//www.leginfo.ca.gov/pub/bill/asm/ab-1951-2000/ab-1995 bill 20000622_ainended scO7/10/2000 AB 1995 Assembly Bill- AMENDED Page 4 of 6 and state distribution laws. Subject to the interests of the family and paragraph (6) , all arrearages that have accrued prior to entering the contract may be forgiven in the child support amnesty program, except that arrearages that have accrued between the date that this chapter is enacted and the date the obligor enters the amnesty program may not be forgiven if the obligor stopped paying child support in anticipation of entering the amnesty program. (4) Issuing one contract for each family involved. Multiple custodial contracts will require multiple contracts. (S) Handling cases involving debt owed to more than one county. (6) Establishing a sliding scale formula that takes into consideration the total amount of child support arrearage awed and the period remaining on any existing child support order to determine whether all ef or a portion of a child support arrearage may be forgiven under this section. The department and the local child support agency shall determine the amount of the child support arrearage that may qualify to be forgiven under this section pursuant to the sliding scale formula. The purpose of the formula is to ensure that large child support arrearages owed to the state are not forgiven when the benefit to the custodial parent family of current support payments may be minimal. (7) Accepting applications from incarcerated obligors. (S) The amount an obligor shall pay every month in order to qualify for the amnesty program, subject to the conditions of paragraph (2) of subdivision (a) . (A) If current support is not owed to the family, but arrearages are owed to the family, the obligor shall comply with a monthly repayment schedule for paying arrearages to the family. (B) If neither current support nor arrearages are owed to the family, the department shall develop an offer in compromise program for forgiving some of the arrearages owed to the state. Under the offer in compromise program, the obligor shall submit an offer to the local child support agency that accounts for the fair value of any of the obligor's nonessential assets, and a statement of a monthly support amount that the obligor could pay. In determining whether to accept, reject, or counter the offer, the local child support agency shall consider the likelihood of collecting support arrearages in full, whether the amount offered is reasonable, whether the amount offered is likely to be collectable, the ability of the obligor to pay support in the past, the reasonableness of the obligor's conduct, and the interests of justice. (c) The department and the local child support agencies shall jointly develop and conduct a public awareness campaign by 4uly 1, if January 1, 2002, to publicize statewide the availability of the child support forgiveness program and how to make application for the program. The public awareness campaign shall include, at a minimum, direct notice to parents in the child support program, public service announcements designed to notify parents of the availability of the amnesty program, and other outreach tools, as appropriate. The public awareness campaign shall target disabled parents, incarcerated parents, and unemployed and seasonally employed parents. The public awareness campaign and the application form for the amnesty program shall inform parents how to seek a modification of their current support order. (d) The local child support agency shall promptly file with the court a copy of the - - stipulation and order entered into pursuant to subdivision (a) and a copy of any notice issued pursuant to paragraph (2) of subdivision (a) . (e) Contingent on an appropriation therefor in the annual Budget Act, the department shall fund the reasonable costs of the amnesty program incurred by the local child support agencies. The department shall work with the local child support agencies ' http://ww w.leginfo.ca.gov/pub/bill/asm/ab_1951-2000/ab-1995 bill 20000622_amended scO7/10/2000 AB 1995 Assembly Bill-AMENDED Page 5 of 6 automation consortia so that county automated child support systems can implement the amnesty program by April 1, 2002. (f) The department shall conduct an evaluation and issue a report to the Legislature no later than 447-4June 30, 2005 . The report shall include all of the following: (1) The number of individuals who request that their arrearage be forgiven. (2) Of those who request that their arrearage be forgiven, the number of individuals who have continued to pay all current child support obligations. (3) The amount of current child support collected from those who have requested that their arrearage be forgiven. (4) Of those who request that their arrearage be forgiven, the number of individuals who have failed to make payments on all current child support obligations. (5) Whether the program has increased the well-being of children and families. (6) Whether the program has increased the involvement of noncustodial parents in their children's lives. (7) Any other information the department deems appropriate to determine the effectiveness of the program. (f) (g) The department shall apply to the federal government for any waivers necessary to implement this section. (g) (h) The Judicial Council shall adopt the forms necessary to effectuate this section by April 1, 2002. (i) This section shall not become operative unless the director finds that the federal government has granted all waivers necessary for implementation. 17902. (a) Notwithstanding Section 17.900, subject to the conditions set forth in subdivision (b) , no action shall be taken against a parent to collect the child support arrearages owed to this state for reimbursement of foster care costs paid to support the parent 's child. (b) The suspension of child support arrearages owed for reimbursement of foster care costs is subject to all of the following conditions: (1) The parent of the child on whose behalf foster care costs were or are being paid has reunified with the child or is actively seeking to reunify with the child pursuant to a court-ordered reunification plan. If the parent is actively seeking to reunify with the child, the parent must participate regularly and substantive progress in all court-ordered reunification programs. (2) The family's gross income, based on family size, is less than 250 percent of the poverty level, as defined by the United States Department of Health and Human Services. (c) If reunification activities cease or if the child returns to foster care and the parent is not actively seeking to reunify with the child, the collection of child support arrearages owed to this state for reimbursement of foster care costs paid to support the child shall continue, except that no interest shall have accrued on those arrearages during the time the parent was reunited or was attempting to reunite with the child. SEC. 3. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000, 000) , reimbursement shall be made from the State Mandates Claims Fund. http://www.leginfo.ca.gov/pubibill/asm/ab-1951-2000/ab-1995—bill-20000622—amended—scO7/10/2000 AB 1995 Assembly Bill-AMENDED Page 6 of 6 http://www.leginfo.ca.gov/pub/bill/asm/ab_1951-2000/ab_1995 bill 20000622—amended sc07/10/2000