Existing law imposes a general obligation on both parents of a minor child to support their child in the manner suitable to the childs circumstances. Existing law establishes the statewide uniform guidelines for calculating court-ordered child support, based on the income of both parents and the time each parent spends with the child. Existing law establishes a rebuttable presumption that an obligor with a net disposable income, as defined, of a specified amount per month is entitled to a low-income adjustment to his or her child support obligation. Until January 1, 2018, the net disposable income threshold is $1,500 per month, and is requested to be adjusted annually for cost-of-living increases. Existing law requires the Judicial Council to determine the adjustment amount based on the change in the annual California Consumer Price Index, as specified. Effective January 1, 2018, the net disposable income threshold is $1,000 per month and is not requested to be annually adjusted for cost-of-living increases.

This bill would extend the January 1, 2018, date of repeal to January 1, 2021, for the version of existing law that is currently operative, thereby maintaining the net disposable income threshold at $1,500 per month, adjusted annually for cost-of-living increases, until January 1, 2021, and would change the operative date of the successor version of that law to January 1, 2021.

Existing law imposes a general obligation on both parents of a minor child to support their child in the manner suitable to the childs circumstances. Existing law establishes the statewide uniform guidelines for calculating court-ordered child support, based on the income of both parents and the time each parent spends with the child. Existing law establishes a rebuttable presumption that an obligor with a net disposable income, as defined, of a specified amount per month is entitled to a low-income adjustment to his or her child support obligation. Until January 1, 2018, the net disposable income threshold is $1,500 per month, and is requested to be adjusted annually for cost-of-living increases. Existing law requires the Judicial Council to determine the adjustment amount based on the change in the annual California Consumer Price Index, as specified. Effective January 1, 2018, the net disposable income threshold is $1,000 per month and is not requested to be annually adjusted for cost-of-living increases.

This bill would extend the January 1, 2018, date of repeal to January 1, 2021, for the version of existing law that is currently operative, thereby maintaining the net disposable income threshold at $1,500 per month, adjusted annually for cost-of-living increases, until January 1, 2021, and would change the operative date of the successor version of that law to January 1, 2021.

Existing law imposes a general obligation on both parents of a minor child to support their child in the manner suitable to the childs circumstances. Existing law establishes the statewide uniform guidelines for calculating court-ordered child support, based on the income of both parents and the time each parent spends with the child. Existing law establishes a rebuttable presumption that an obligor with a net disposable income, as defined, of a specified amount per month is entitled to a low-income adjustment to his or her child support obligation. Until January 1, 2018, the net disposable income threshold is $1,500 per month, and is requested to be adjusted annually for cost-of-living increases. Existing law requires the Judicial Council to determine the adjustment amount based on the change in the annual California Consumer Price Index, as specified. Effective January 1, 2018, the net disposable income threshold is $1,000 per month and is not requested to be annually adjusted for cost-of-living increases.

This bill would extend the January 1, 2018, date of repeal to January 1, 2021, for the version of existing law that is currently operative, thereby maintaining the net disposable income threshold at $1,500 per month, adjusted annually for cost-of-living increases, until January 1, 2021, and would repeal change the operative date of the successor version of that law that becomes operative on January 1, 2018. to January 1, 2021.

Existing law imposes a general obligation on both parents of a minor child to support their child in the manner suitable to the childs circumstances. Existing law establishes the statewide uniform guidelines for calculating court-ordered child support, based on the income of both parents and the time each parent spends with the child. Existing law establishes a rebuttable presumption that an obligor with a net disposable income, as defined, of a specified amount per month is entitled to a low-income adjustment to his or her child support obligation. Until January 1, 2018, the net disposable income threshold is $1,500 per month, and is requested to be adjusted annually for cost-of-living increases. Existing law requires the Judicial Council to determine the adjustment amount based on the change in the annual California Consumer Price Index, as specified. Effective January 1, 2018, the net disposable income threshold is $1,000 per month and is not requested to be annually adjusted for cost-of-living increases.

This bill would extend the January 1, 2018, date of repeal to January 1, 2021, for the version of existing law that is currently operative, thereby maintaining the net disposable income threshold at $1,500 per month, adjusted annually for cost-of-living increases, until January 1, 2021, and would repeal the successor version of that law that becomes operative on January 1, 2018.

Existing law imposes a general obligation on both parents of a minor child to support their child in the manner suitable to the childs circumstances. Existing law establishes the statewide uniform guidelines for calculating court-ordered child support, based on the income of both parents and the time each parent spends with the child. Existing law establishes a rebuttable presumption that an obligor with a net disposable income, as defined, of a specified amount per month is entitled to a low-income adjustment to his or her child support obligation. Until January 1, 2018, the net disposable income threshold is $1,500 per month, and is requested to be adjusted annually for cost-of-living increases. Existing law requires the Judicial Council to determine the adjustment amount based on the change in the annual California Consumer Price Index, as specified. Effective January 1, 2018, the net disposable income threshold is $1,000 per month and is not requested to be annually adjusted for cost-of-living increases.

This bill would delete extend the January 1, 2018, date of repeal to January 1, 2021, for the version of existing law that is currently operative, thereby maintaining indefinitely the net disposable income threshold at $1,500 per month, adjusted annually for cost-of-living increases, until January 1, 2021, and would repeal the successor version of that law that becomes operative on January 1, 2018.

The Planning and Zoning Law requires a city, county, or city and county to ensure that its housing element inventory, as described, can accommodate its share of the regional housing need throughout the planning period. The law also prohibits a city, county, or city and county from reducing, requiring, or permitting the reduction of the residential density to a lower residential density that is below the density that was utilized by the Department of Housing and Community Development in determining compliance with housing element law, unless the city, county, or city and county makes written findings supported by substantial evidence that the reduction is consistent with the adopted general plan, including the housing element, and that the remaining sites identified in the housing element are adequate to accommodate the jurisdictions share of the regional housing need. The city, county, or city and county may reduce the residential density for a parcel if it identifies sufficient sites, as prescribed, so that there is no net loss of residential unit capacity.

This bill, among other things, would prohibit a city, county, or city and county from permitting or causing its inventory of sites identified in the housing element to be insufficient to meet its remaining unmet share of the regional housing need for lower- and moderate-income households. The bill also would expand the definition of lower residential density if the local jurisdiction has not adopted a housing element for the current planning period or the adopted housing element is not in substantial compliance, as specified. This bill would also condition the approval or development containing fewer housing units at each income level than its identified capacity upon identifying sufficient sites or rezones, as prescribed, to ensure no net loss of residential unit capacity. By increasing the duties of local agencies, this bill would 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.

This bill would provide that no reimbursement is required by this act for a specified reason.

 UNFINISHED BUSINESS  

Bill No: SB 469

Author:

:

Vote:

SENATE JUDICIARY COMMITTEE: 7-0, 4/18/17

AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 37-0, 5/22/17 (Consent)

AYES: Allen, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: Anderson, Fuller, Pan

ASSEMBLY FLOOR: 76-0, 9/5/17 - See last page for vote

SUBJECT:

SOURCE: Western Center on Law and Poverty

DIGEST:

This bill removes a 2018 sunset date and replaces it with a January 1, 2021 sunset date, for a version of existing law that is currently operative relating to statewide uniform guidelines for calculating court-ordered child support for the purposes of low-income adjustment.

Assembly Amendments

correct a drafting error with the sunset date, which would have left a gap in the law should the sunset expire without an extension.

ANALYSIS:

Existing law:

1. Establishes a uniform statewide guideline for calculating child support. This mathematical formula is based on the income of both parents and the amount of time they each spend with the child. (Fam. Code Sec. 4055.)
2. Requires the Judicial Council to periodically review the guideline to report to the Legislature appropriate revisions, as specified. (Fam. Code Sec. 4054.)
3. Creates, until January 1, 2018, a rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. (Fam. Code Sec. 4055(b)(7).)
4. Requires, until January 1, 2018, the Judicial Council to annually update the low-income adjustment based on the California Consumer Price Index, as specified. (Fam. Code Sec. 4055 (b)(7).)
5. Restores, beginning January 1, 2018, the low-income adjustment to $1,000 per month and removes the obligation that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Fam. Code Sec. 4055(d).)

This bill extends the sunset date until January 1, 2021.

Comments

Purpose. SB 469 seeks to provide a right-sized order that would enable obligors to successfully meet their obligations, provide a consistent method for child support payments, improve an income stream for families, promote family self-sufficiency, and improve a child’s quality of life while living in a single-parent household.

The Legislature is responsible for revising the uniform child support guideline. Currently, the Judicial Council is required to periodically review the uniform child support guideline and alter the low-income adjustment (LIA) annually based on the California Consumer Price Index. The current LIA is set at $1,500 per month. However, absent legislative action addressing a 2018 sunset date in the Family Code, the authority of the Judicial Council to adjust the LIA will expire and the Legislature alone will be authorized to adjust the uniform child support guideline. This bill extends that sunset until January 1, 2021. The Western Center on Law and Poverty, sponsor of this bill, writes in support, “With the passage of the LIA in 2012, which included a cost of living adjustment, child support obligors have been more successful in achieving timely payments. For this reason, Western Center is proud to sponsor and support SB 469 and respectfully requests your ‘Aye’ vote to repeal the sunset date of the increase of the LIA and annual cost of living increase.”

In approving AB 2393 (Davis, Chapter 646, Statutes of 2012), the Legislature recognized that while such legislation would allow increases to the LIA without the full consideration of the Legislature, an annual adjustment based on the cost-of-living and inflation could keep the LIA current and arguably result in more reasonable support obligations for low-income obligors. At the same time, the Senate Judiciary Committee acknowledged that the bill represented a departure from the typical procedure in which the Legislature alone is authorized to revise the state support guidelines, and questioned whether the delegation of this authority was appropriate. Specifically, the Committee noted that the assertion that lower support obligations would result in more consistent payments had yet to be proven on a state-wide basis, and accordingly included a five-year sunset in AB 2393 to allow the Legislature to consider the Judicial Council’s next Review of Statewide Uniform Child Support Guideline, due in 2015 (hereinafter “Report”).

In addition to considering economic data on child-rearing costs and case data, in issuing its Report, the Judicial Council also looks to federal regulations when updating child support guidelines. On January 19, 2017, the federal Office of Child Support Enforcement issued its final rule to carry out President Obama’s 2011 directives found in Executive Order 13563: Improving Regulation and Regulatory Review. In awaiting the publication of this rule so that it may create a state guideline that is in compliance with federal law, the Judicial Council delayed issuing its Report. Since the publication of the federal rule in late January, Judicial Council anticipates that the new child support calculator and corresponding Report will instead be issued in early 2018. The new rule was intended to make the federal Child Support Enforcement Program operations and enforcement procedures more flexible, effective, and efficient by recognizing the strength of existing state programs and recent advancements in technology. Thus, in an effort to improve collection rates with support orders that reflect the noncustodial parent’s ability to pay support, the new rule makes significant changes to child support guidelines. (See Federal Register: The Daily Journal of the United States Government, Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs, -- https://www.federalregister. gov/documents/2016/12/20/ 2016 -29598/flexibility-efficiency-and-modernization-in-child-support-enforcement-programs -- [as of February 2, 2017].)

As introduced, this bill would have eliminated the sunset implemented by AB 2393 (Davis, Chapter 646, Statutes of 2012) without offering the Legislature the opportunity to review the Judicial Council’s assessment of whether the provisions of that bill are positively impacting the collection of child support in California. Additionally, given the federal rule issued in late January, there has been little time to determine whether the provisions of AB 2393 are in compliance with federal guidelines. Thus, removing the sunset date of AB 2393 without reviewing the new federal rule may have the additional unintended consequence of reducing the amount of federal funding California receives.

Accordingly, the author accepted amendments in the Judiciary Committee that extended the sunset date until January 1, 2021, to allow the Judicial Council time to review the effectiveness of AB 2393’s provisions and to issue child support guidelines taking the new federal rule into consideration.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee, negligible fiscal effect.

SUPPORT: (Verified 9/5/17)

Western Center on Law and Poverty (source)

Courage Campaign

San Francisco Living Wage Coalition

OPPOSITION: (Verified 9/5/17)

None received

ASSEMBLY FLOOR: 76-0, 9/5/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Eduardo Garcia, Ridley-Thomas, Steinorth

Prepared by:

9/5/17 18:50:50

**** END ****

SENATE THIRD READING

STR Bill Id:SB 469

Author:(Skinner)

As Amended Ver:August 31, 2017

Majority vote

SENATE VOTE: 37-0

SUMMARY: Continues the current low-income adjustment to the child support guideline until 2021. Specifically, this bill:

1. Continues, until January 1, 2021, the maximum low-income adjustment to the child support guideline of $1,500 net disposable income per month, adjusted annually for cost of living increases. Clarifies that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500, adjusted annually for cost-of-living increases, minus the obligor's net disposable income per month, and the denominator of which is 1,500, adjusted annually for cost-of-living increases.
2. Adds the operative date of the successor statute after the low-income adjustment expansion sunsets on January 1, 2021.
3. Makes other technical changes to ensure the low-income adjustment operates appropriately.

EXISTING LAW:

1. Establishes a uniform, statewide guideline for calculating child support, based on the income of both parents and the time they each spend with the child. (Family Code Section 4055. Unless stated otherwise, all further references are to that code.)
2. Increases, until January 1, 2018, the rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. Requires the Judicial Council, until January 1, 2018, to annually update the low-income adjustment based on the California Consumer Price Index, as specified. Provides that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500 minus the obligor's net disposable income per month, and the denominator of which is 1,500. (Section 4055(b)(7).)
3. Provides that if a court uses a computer to calculate the child support order, the computer program cannot automatically default affirmatively or negatively on whether a low-income adjustment is to be applied. If the low-income adjustment is applied, requires that the computer program not provide the amount of the low-income adjustment, but instead ask the user whether or not to apply the low-income adjustment, and if answered affirmatively, the computer program shall provide the range of the adjustment permitted by 2), above. (Section 4055(c).)
4. Restores, beginning January 1, 2018, the low-income adjustment to $1,000 per month and eliminates the requirement that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Section 4055(d).)
5. Requires the Judicial Council to review the guideline at least every four years, as specified. (Section 4054; 45 Code of Federal Regulations 302.56.)

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal effect.

COMMENTS: As required by federal law, California has a statutory guideline – a mathematical formula – to calculate a noncustodial parent's child support obligation. To help ensure that low-income obligors are able to pay their child support obligation, the guideline contains a presumptive low-income adjustment that can reduce the support obligation for obligors with monthly income (after taxes and a few other mandatory payments) below a specified amount. The low-income adjustment was originally established at $1,000 in 1993. (AB 923 (Speier), Chapter 906, Statutes of 1994.) Beginning in 2013, it was raised to $1,500, with an annual adjustment for inflation. (AB 2393 (Davis), Chapter 646, Statutes of 2012.) However, that increase is scheduled to sunset on January 1, 2018, reverting the low-income, adjustment back to $1,000. Regardless of the amount, the low-income adjustment does not apply if doing so would be unjust or inappropriate in a particular case.

The low-income adjustment is the maximum amount by which a child support amount, as calculated by the child support guideline, can be reduced. It is the presumed correct amount, but may be rebutted by evidence showing that the application of the low-income adjustment would be unjust and inappropriate in the particular case, based on set principles and the impact of the contemplated adjustment on the respective net incomes of the obligor and the obligee. When applicable, the low-income adjustment reduces, on a sliding scale, the support obligation.

In 2003, the Urban Institute reviewed the collectability of child support debt owed in California on behalf of the Department of Child Support Services and determined that much of the debt was not collectible, in large part because most of the debt was owed by low-income obligors who would likely never be able to repay it. (Elaine Sorensen, Examining Child Support Arrears in California: The Collectibility Study (Urban Institute, 2003).) The study examined, among other things, the low-income adjustment and determined that:

Although we were unable to examine this issue ourselves, the Judicial Council of California did a thorough review of California's child support guideline in 2001. One of their recommendations was to make the low-income adjustment in the guideline presumptive to ensure that it is used. They found that only 6% of obligors eligible for a low-income adjustment actually received one in 1999. We did find, however, that one of the primary factors contributing to arrears in California is high child support orders on low-income obligors. Making the low-income adjustment presumptive should help in this regard. Additionally, the low-income adjustment has not been revised since it was established nearly a decade ago. It should be reviewed for possible adjustment.

(Id. at Executive Summary – 20 (footnote omitted).) The adjustment was made presumptive by AB 1752 (Budget Committee), Chapter 225, Statutes of 2003, and, as discussed above, was increased in 2013 by AB 2393 (Davis), Chapter 646, Statutes of 2012.

As required by federal law, the guideline must be reviewed every four years, and state law directs the Judicial Council to conduct the review. The last three reviews conducted by the Judicial Council recommended increasing the low-income adjustment. AB 2393 not only increased the low-income adjustment from $1,000 to $1,500 net income a month, it also established an annual inflation adjustment. As a result, the Judicial Council has updated the low-income adjustment annually, based on changes to the California Consumer Price Index. Today, the low income adjustment is $1,644.

This bill extends the increase in the low-income adjustment three years, moving its sunset from 2018 to 2021. The federal Office of Child Support Enforcement recently released new federal rules on states' child support guidelines, including a low-income adjustment for noncustodial parents, titled Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs. The new rules were effective January 19, 2017. These new rules, among other things, require state child support agencies to increase efforts to ensure that child support orders reflect the noncustodial parent's ability to pay. In particular, the revised federal rules require the guideline to take into consideration the basic subsistence needs of the noncustodial parent who has a limited ability to pay by incorporating a low-income adjustment or other method determined by each state. (45 Code of Federal Regulations 302.56(c)(1).) The extension of the low-income adjustment increase is consistent with the revised federal rules, which require consideration of the noncustodial parent's ability to pay child support and provide for his or her basic subsistence. Without the low-income adjustment, including the 2012 increase, it is likely that California would be out of compliance with the revised federal rules. Thus, continuing the low-income adjustment increase for another three years, as required by this bill, helps ensure that California is in compliance with federal requirements, pending the next Judicial Council review.

Analysis Prepared by: Leora Gershenzon / JUD. / (916) 319-2334 FN: 0001543

SENATE THIRD READING

STR Bill Id:SB 469

Author:(Skinner)

As Amended Ver:June 5, 2017

Majority vote

SENATE VOTE: 37-0

SUMMARY: Continues the current low-income adjustment to the child support guideline until 2021. Specifically, this bill:

1. Continues, until January 1, 2021, the maximum low-income adjustment to the child support guideline of $1,500 net disposable income per month, adjusted annually for cost of living increases. Clarifies that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500, adjusted annually for cost-of-living increases, minus the obligor's net disposable income per month, and the denominator of which is 1,500, adjusted annually for cost-of-living increases.
2. Makes other technical changes to ensure the low-income adjustment operates appropriately.

EXISTING LAW:

1. Establishes a uniform, statewide guideline for calculating child support, based on the income of both parents and the time they each spend with the child. (Family Code Section 4055. Unless stated otherwise, all further references are to that code.)
2. Increases, until January 1, 2018, the rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. Requires the Judicial Council, until January 1, 2018, to annually update the low-income adjustment based on the California Consumer Price Index, as specified. Provides that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500 minus the obligor’s net disposable income per month, and the denominator of which is 1,500. (Section 4055(b)(7).)
3. Provides that if a court uses a computer to calculate the child support order, the computer program cannot automatically default affirmatively or negatively on whether a low-income adjustment is to be applied. If the low-income adjustment is applied, requires that the computer program not provide the amount of the low-income adjustment, but instead ask the user whether or not to apply the low-income adjustment, and if answered affirmatively, the computer program shall provide the range of the adjustment permitted by 2), above. (Section 4055(c).)
4. Restores, beginning January 1, 2018, the low-income adjustment to $1,000 per month and eliminates the requirement that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Section 4055(d).)
5. Requires the Judicial Council to review the guideline at least every four years, as specified. (Section 4054; 45 Code of Federal Regulations 302.56.)

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal effect.

COMMENTS: As required by federal law, California has a statutory guideline – a mathematical formula – to calculate a noncustodial parent's child support obligation. To help ensure that low-income obligors are able to pay their child support obligation, the guideline contains a presumptive low-income adjustment that can reduce the support obligation for obligors with monthly income (after taxes and a few other mandatory payments) below a specified amount. The low-income adjustment was originally established at $1,000 in 1993. (AB 923 (Speier), Chapter 906 Statutes of 1994.) Beginning in 2013, it was raised to $1,500, with an annual adjustment for inflation. (AB 2393 (Davis), Chapter 646, Statutes of 2012.) However, that increase is scheduled to sunset on January 1, 2018, reverting the low-income, adjustment back to $1,000. Regardless of the amount, the low-income adjustment does not apply if doing so would be unjust or inappropriate in a particular case.

The low-income adjustment is the maximum amount by which a child support amount, as calculated by the child support guideline, can be reduced. It is the presumed correct amount, but may be rebutted by evidence showing that the application of the low-income adjustment would be unjust and inappropriate in the particular case, based on set principles and the impact of the contemplated adjustment on the respective net incomes of the obligor and the obligee. When applicable, the low-income adjustment reduces, on a sliding scale, the support obligation.

In 2003, the Urban Institute reviewed the collectability of child support debt owed in California on behalf of the Department of Child Support Services and determined that much of the debt was not collectible, in large part because most of the debt was owed by low-income obligors who would likely never be able to repay it. (Elaine Sorensen, Examining Child Support Arrears in California: The Collectibility Study (Urban Institute, 2003).) The study examined, among other things, the low-income adjustment and determined that:

Although we were unable to examine this issue ourselves, the Judicial Council of California did a thorough review of California's child support guideline in 2001. One of their recommendations was to make the low-income adjustment in the guideline presumptive to ensure that it is used. They found that only 6% of obligors eligible for a low-income adjustment actually received one in 1999. We did find, however, that one of the primary factors contributing to arrears in California is high child support orders on low-income obligors. Making the low-income adjustment presumptive should help in this regard. Additionally, the low-income adjustment has not been revised since it was established nearly a decade ago. It should be reviewed for possible adjustment.

(Id. at Executive Summary – 20 (footnote omitted).) The adjustment was made presumptive by AB 1752 (Committee on Budget), Chapter 225, Statutes of 2003, and, as discussed above, was increased in 2013 by AB 2393 (Davis), Chapter 646, Statutes of 2012.

As required by federal law, the guideline must be reviewed every four years, and state law directs the Judicial Council to conduct the review. The last three reviews conducted by the Judicial Council recommended increasing the low-income adjustment. AB 2393 not only increased the low-income adjustment from $1,000 to $1,500 net income a month, it also established an annual inflation adjustment. As a result, the Judicial Council has updated the low-income adjustment annually, based on changes to the California Consumer Price Index. Today, the low income adjustment is $1,644.

This bill extends the increase in the low-income adjustment three years, moving its sunset from 2018 to 2021. The federal Office of Child Support Enforcement recently released new federal rules on states' child support guidelines, including a low-income adjustment for noncustodial parents, titled Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs. The new rules were effective January 19, 2017. These new rules, among other things, require state child support agencies to increase efforts to ensure that child support orders reflect the noncustodial parent's ability to pay. In particular, the revised federal rules require the guideline to take into consideration the basic subsistence needs of the noncustodial parent who has a limited ability to pay by incorporating a low-income adjustment or other method determined by each state. (45 Code of Federal Regulations 302.56(c)(1).) The extension of the low-income adjustment increase is consistent with the revised federal rules, which require consideration of the noncustodial parent's ability to pay child support and provide for his or her basic subsistence. Without the low-income adjustment, including the 2012 increase, it is likely that California would be out of compliance with the revised federal rules. Thus, continuing the low-income adjustment increase for another three years, as required by this bill, helps ensure that California is in compliance with federal requirements, pending the next Judicial Council review.

Analysis Prepared by: Leora Gershenzon / JUD. / (916) 319-2334 FN 0001324

Date of Hearing: July 19, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 469

Author:(Skinner) – As Amended Ver:June 5, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill continues the current low-income adjustment to the child support guideline until January 1, 2021. Specifically, this bill continues the maximum low-income adjustment to the child support guideline of $1,500 net disposable income per month, adjusted annually for cost of living increases. This bill also clarifies how the low-income adjustment must be calculated and applied.

FISCAL EFFECT:

Negligible fiscal effect.

COMMENTS:

1. Background. Existing law establishes a uniform, statewide guideline for calculating child support, based on the income of both parents and the time they each spend with the child. Existing law also specifies that a low income individual may qualify for an adjustment to his or her child support obligations, based on a formula that calculates the person’s net disposable income per month. The qualification for the low-income adjustment was originally established in 1993 at a level of $1,000 in net disposable income per month. AB 2393 (Davis), Chapter 646, Statutes of 2012, increased the level beginning in 2013 to $1,500, with an annual adjustment for inflation. However, that increase is scheduled to sunset on January 1, 2018, and revert the low-income adjustment back to $1,000.
2. Purpose. The author states, “Low-income parents facing child support payments can find themselves having to make the difficult choice of meeting their own basic needs or making their child support payment. In 2012, Assembly Bill 2393 updated the low income adjustment and required it to be updated annually for inflation. Assembly Bill 2393 is set to expire on January 1, 2018. SB 469 extends the sunset to January 1, 2021, in order to help parents successfully meet their obligations, provide a consistent method for child support payments, improve an income stream for families, promote family self-sufficiency, and improve a child’s quality of life while living in a single-parent household.”

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: June 13, 2017

ASSEMBLY COMMITTEE ON JUDICIARY

Mark Stone, Chair

SBPCA Bill Id:SB 469

Author:(Skinner) – As Amended Ver:June 5, 2017

PROPOSED CONSENT

SENATE VOTE: 37-0

SUBJECT: Child support guideline: low-income adjustment

KEY ISSUE: SHOULD THE 2013 INCREASE IN THE LOW-INCOME ADJUSTMENT TO THE CHILD SUPPORT GUIDELINE, WHICH HELPS LOW-INCOME OBLIGORS TO PAY THEIR SUPPORT IN A timely anD Full MANNER, BE EXTENDED FOR AN ADDITIONAL THREE YEARS?

SYNOPSIS

As required by federal law, California has a statutory guideline – a mathematical formula – to calculate a noncustodial parent’s child support obligation. To help ensure that low-income obligors are able to pay their child support obligation, the guideline contains a presumptive low-income adjustment that can reduce the support obligation for obligors with low monthly income and help ensure that these obligors are able to sustain themselves. The low-income adjustment was originally set in 1993 at $1,000 net income per month (after taxes and a few other mandatory deductions), but was increased to $1,500 in 2013, with annual adjustments based on inflation. This bill, sponsored by the Western Center on Law and Poverty, seeks to continue providing greater fairness to low-income obligors and ensuring that child support orders are more accurately established in California by extending the 2018 sunset of the increase in the low-income adjustment to the child support guideline until 2021. This bill is supported by the Courage Campaign, and it has no opposition.

SUMMARY: Continues the current low-income adjustment to the child support guideline until 2021. Specifically, this bill:

1. Continues, until January 1, 2021, the maximum low-income adjustment to the child support guideline of $1,500 net disposable income per month, adjusted annually for cost of living increases. Clarifies that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500, adjusted annually for cost-of-living increases, minus the obligor’s net disposable income per month, and the denominator of which is 1,500, adjusted annually for cost-of-living increases.
2. Makes other technical changes to ensure the low-income adjustment operates appropriately.

EXISTING LAW:

1. Establishes a uniform, statewide guideline for calculating child support, based on the income of both parents and the time they each spend with the child. (Family Code Section 4055. Unless stated otherwise, all further references are to that code.)
2. Increases, until January 1, 2018, the rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. Requires the Judicial Council, until January 1, 2018, to annually update the low-income adjustment based on the California Consumer Price Index, as specified. Provides that the low-income adjustment may reduce the child support obligation by an amount that is no greater than the amount calculated by multiplying the child support amount otherwise determined under guideline by a fraction, the numerator of which is 1,500 minus the obligor’s net disposable income per month, and the denominator of which is 1,500. (Section 4055 (b)(7).)
3. Provides that if a court uses a computer to calculate the child support order, the computer program cannot automatically default affirmatively or negatively on whether a low-income adjustment is to be applied. If the low-income adjustment is applied, requires that the computer program not provide the amount of the low-income adjustment, but instead ask the user whether or not to apply the low-income adjustment, and if answered affirmatively, the computer program shall provide the range of the adjustment permitted by 2), above. (Section 4055 (c).)
4. Restores, beginning January 1, 2018, the low-income adjustment to $1,000 per month and eliminates the requirement that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Section 4055 (d).)
5. Requires the Judicial Council to review the guideline at least every four years, as specified. (Section 4054; 45 C.F.R. 302.56.)

FISCAL EFFECT: As currently in print this bill is keyed fiscal.

COMMENTS: As required by federal law, California has a statutory guideline – a mathematical formula – to calculate a noncustodial parent’s child support obligation. To help ensure that low-income obligors are able to pay their child support obligation, the guideline contains a presumptive low-income adjustment that can reduce the support obligation for obligors with monthly income (after taxes and a few other mandatory payments) below a specified amount. The low-income adjustment was originally established at $1,000 in 1993. (AB 923 (Speier), Chap. 906 Stats. 1994.) Beginning in 2013, it was raised to $1,500, with an annual adjustment for inflation. (AB 2393 (Davis), Chap. 646, Stats. 2012.) However that increase is scheduled to sunset on January 1, 2018, reverting the low-income, adjustment back to $1,000. Regardless of the amount, the low-income adjustment does not apply if doing so would be unjust or inappropriate in a particular case.

This bill, sponsored by the Western Center for Law and Poverty, seeks to continue for three additional years the increase in the low-income adjustment to the child support guideline of $1,500 net income a month, adjusted annually for inflation. In support of the bill, the author states:

Low-income parents facing child support payments can find themselves having to make the difficult choice of meeting their own basic needs or making their child support payment. In 2012, Assembly Bill 2393 updated the low income adjustment and required it to be updated annually for inflation. Assembly Bill 2393 is set to expire on January 1, 2018. SB 469 extends the sunset to January 1, 2021 in order to help parents successfully meet their obligations, provide a consistent method for child support payments, improve an income stream for families, promote family self-sufficiency, and improve a child’s quality of life while living in a single-parent household.

Adds the sponsor and the Courage Campaign:

According to the California Department of Child Support Services, consistent payment of support by low-income obligors is better met if the order is "right-sized." A right-sized order would enable obligors to succussfully meet their obligations and provide more consistent child support payments, improving the income stream for families, promoting family self-sufficiency and improving overall wellbeing of children living in single-parent houeholds.

How the Low-Income Adjustment Works: The low-income adjustment is the maximum amount by which a child support amount, as calculated by the child support guideline, can be reduced. It is the presumed correct amount, but may be rebutted by evidence showing that the application of the low-income adjustment would be unjust and inappropriate in the particular case, based on set principles and the impact of the contemplated adjustment on the respective net incomes of the obligor and the obligee. These principles are as follows:

• A parent’s first and principal obligation is to support his or her minor children according to the parent’s circumstances and station in life.
• Both parents are mutually responsible for the support of their children.
• The guideline takes into account each parent’s actual income and level of responsibility for the children.
• Each parent should pay for the support of the children according to his or her ability.
• The guideline seeks to place the interests of children as the state’s top priority.
• Children should share in the standard of living of both parents. Child support may therefore appropriately improve the standard of living of the custodial household to improve the lives of the children.
• Child support orders in cases in which both parents have high levels of responsibility for the children should reflect the increased costs of raising the children in two homes and should minimize significant disparities in the children’s living standards in the two homes.
• The financial needs of the children should be met through private financial resources as much as possible.
• It is presumed that a parent having primary physical responsibility for the children contributes a significant portion of available resources for the support of the children.
• The guideline seeks to encourage fair and efficient settlements of conflicts between parents and seeks to minimize the need for litigation.
• The guideline is intended to be presumptively correct in all cases, and only under special circumstances should child support orders fall below the child support mandated by the guideline formula.
• Child support orders must ensure that children actually receive fair, timely, and sufficient support reflecting the state’s high standard of living and high costs of raising children compared to other states. (Section 4053.)

To ensure that the court properly considers the low-income adjustment's impact on both parents, if a court uses a computer to calculate the child support order (as all courts do today), the computer program cannot automatically default affirmatively or negatively on whether a low-income adjustment is to be applied. Instead, the computer program must ask the user whether or not to apply the low-income adjustment, and if the answer is yes, the computer program must provide the range of allowable adjustments.

When applicable, the low-income adjustment reduces, on a sliding scale, the support obligation. Suppose a support obligation, calculated under the guideline is, for simplicity, $100. The order calculated with the current, maximum low-income adjustment will be $100 if the obligor has a net monthly income of $1,644 (the current law-income amount, adjusted for inflation), $91 if the obligor's income is $1,500, $61 if the obligor’s income is $1,000, and $30 if the obligor’s income is $500. If the low-income adjustment returns to $1,000 a month, as will occur in the absence of this bill, the child support amount with the maximum low-income adjustment for a $100 order will be $100 if the obligor’s net monthly income is $1,000 or greater, and $50 if the obligor’s income is $500.

While the maximum differences in monthly orders, with or without this bill, may not seem too large, for low-income obligors to which it applies it can make all the difference in terms of bare subsistence survival of the noncustodial parent and in terms of timely and regular payment of child support that a child may depend upon. Additionally, because the low-income adjustment is the maximum amount that a child support order can be reduced, its application depends on the circumstances of the parents and the child.

Studies by the Judicial Council and the Urban Institute Demonstrate the Continued Need for the Increase in the Low-Income Adjustment: According to the most recent report on child support collections in California, $17.5 billion in uncollected child support is owed to families using the state child support agency to help collect their support. (California Department of Child Support Services (DCSS), Comparative Data for Managing Program Performance, March 2017 (May 2017).) In 2003, the Urban Institute reviewed the collectability of child support debt owed in California on behalf of DCSS and determined that much of the debt was not collectible, in large part because most of the debt was owed by low-income obligors who would likely never be able to repay it. (Elaine Sorensen, Examining Child Support Arrears in California: The Collectibility Study (Urban Institute, 2003).) The study examined, among other things, the low-income adjustment and determined that:

Although we were unable to examine this issue ourselves, the Judicial Council of California did a thorough review of California’s child support guideline in 2001. One of their recommendations was to make the low-income adjustment in the guideline presumptive to ensure that it is used. They found that only 6 percent of obligors eligible for a low-income adjustment actually received one in 1999. We did find, however, that one of the primary factors contributing to arrears in California is high child support orders on low-income obligors. Making the low-income adjustment presumptive should help in this regard. Additionally, the low-income adjustment has not been revised since it was established nearly a decade ago. It should be reviewed for possible adjustment.

(Id. at Executive Summary – 20 (footnote omitted).) The adjustment was made presumptive by AB 1752 (Committee on Budget), Chap. 225, Stats. 2003, and, as discussed above, was increased in 2013 by AB 2393 (Davis), Chap. 646, Stats. 2012.

As required by federal law, the guideline must be reviewed every four years, and state law directs the Judicial Council to conduct the review. The last three reviews conducted by the Judicial Council recommended increasing the low-income adjustment. Note that the most recent guideline review report, Judicial Council, Review of Statewide Uniform Child Support Guideline 2010: A Report to the California Legislature was completed in 2010, so California is years overdue for the next mandated child support guideline review.

Increase in the Low-Income Adjustment Based on Inflation Adjustment: AB 2393 not only increased the low-income adjustment from $1,000 to $1,500 net income a month, it also established an annual inflation adjustment. As a result, the Judicial Council has updated the low-income adjustment annually, based on changes to the California Consumer Price Index. Today, the low income adjustment is $1,644.

Judicial Council Low-Income Adjustment Threshold Table

This Bill Extends the Low-Income Adjustment Increase for an Additional Three Years and Works in Harmony with New Federal Child Support Guideline Rules: This bill extends the increase in the low-income adjustment three years, moving its sunset from 2018 to 2021. The federal Office of Child Support Enforcement recently released new federal rules on states' child support guidelines, including a low-income adjustment for noncustodial parents, titled Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs. The new rules were effective January 19, 2017. These new rules, among other things, require state child support agencies to increase efforts to ensure that child support orders reflect the noncustodial parent’s ability to pay. In particular, the revised federal rules require the guideline to take into consideration the basic subsistence needs of the noncustodial parent who has a limited ability to pay by incorporating a low-income adjustment or other method determined by each state. (45 C.F.R. 302.56(c)(1).) Additionally, if imputation of income is authorized, the guideline must take into consideration the specific circumstances of the noncustodial parent to the extent known, including such factors as the noncustodial parent's assets, residence, employment and earnings history, job skills, educational attainment, literacy, age, health, criminal record and other employment barriers, and record of seeking work, as well as the local job market, the availability of employers willing to hire the noncustodial parent, prevailing earnings level in the local community, and other relevant background factors in the case. (Ibid.) The Judicial Council, which is now three years late in issuing its latest review of the child support guideline, anticipates that the next review will be completed next year. That should give the Judicial Council time to consider the new federal rules when analyzing California's child support guideline.

The extension of the low-income adjustment increase is consistent with the revised federal rules, which require consideration of the noncustodial parent's ability to pay child support and provide for his or her basic subsistence. Without the low-income adjustment, including the 2012 increase, it is likely that California would be out of compliance with the revised federal rules. Thus, continuing the low-income adjustment increase for another three years, as required by this bill, helps ensure that California is in compliance with federal requirements, pending the next Judicial Council review.

REGISTERED SUPPORT / OPPOSITION:

Support

Western Center on Law and Poverty (sponsor)

Courage Campaign

Women's Foundation of California

Opposition

None on file

Analysis Prepared by: Leora Gershenzon / JUD. / (916) 319-2334

 CONSENT  

Bill No: SB 469

Author:

:

Vote:

SENATE JUDICIARY COMMITTEE: 7-0, 4/18/17

AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: Western Center on Law and Poverty

DIGEST:

This bill removes a 2018 sunset date and replaces it with a January 1, 2021 sunset date, for a version of existing law that is currently operative relating to statewide uniform guidelines for calculating court-ordered child support for the purposes of low-income adjustment.

ANALYSIS:

Existing law:

1. Establishes a uniform statewide guideline for calculating child support. This mathematical formula is based on the income of both parents and the amount of time they each spend with the child. (Fam. Code Sec. 4055.)
2. Requires the Judicial Council to periodically review the guideline to report to the Legislature appropriate revisions, as specified. (Fam. Code Sec. 4054.)
3. Creates, until January 1, 2018, a rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. (Fam. Code Sec. 4055(b)(7).)
4. Requires, until January 1, 2018, the Judicial Council to annually update the low-income adjustment based on the California Consumer Price Index, as specified. (Fam. Code Sec. 4055 (b)(7).)
5. Restores, beginning January 1, 2018, the low-income adjustment to $1,000 per month and removes the obligation that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Fam. Code Sec. 4055(d).)

This bill extends the sunset date until January 1, 2021.

Comments

Purpose. SB 469 seeks to provide a right-sized order that would enable obligors to successfully meet their obligations, provide a consistent method for child support payments, improve an income stream for families, promote family self-sufficiency, and improve a child’s quality of life while living in a single-parent household.

The Legislature is responsible for revising the uniform child support guideline. Currently, the Judicial Council is required to periodically review the uniform child support guideline and alter the low-income adjustment (LIA) annually based on the California Consumer Price Index. The current LIA is set at $1,500 per month. However, absent legislative action addressing a 2018 sunset date in the Family Code, the authority of the Judicial Council to adjust the LIA will expire and the Legislature alone will be authorized to adjust the uniform child support guideline. This bill extends that sunset until January 1, 2021. The Western Center on Law and Poverty, sponsor of this bill, writes in support, “With the passage of the LIA in 2012, which included a cost of living adjustment, child support obligors have been more successful in achieving timely payments. For this reason, Western Center is proud to sponsor and support SB 469 and respectfully requests your ‘Aye’ vote to repeal the sunset date of the increase of the LIA and annual cost of living increase.”

In approving AB 2393 (Davis, Chapter 646, Statutes of 2012), the Legislature recognized that while such legislation would allow increases to the LIA without the full consideration of the Legislature, an annual adjustment based on the cost-of-living and inflation could keep the LIA current and arguably result in more reasonable support obligations for low-income obligors. At the same time, the Senate Judiciary Committee acknowledged that the bill represented a departure from the typical procedure in which the Legislature alone is authorized to revise the state support guidelines, and questioned whether the delegation of this authority was appropriate. Specifically, the Committee noted that the assertion that lower support obligations would result in more consistent payments had yet to be proven on a state-wide basis, and accordingly included a five-year sunset in AB 2393 to allow the Legislature to consider the Judicial Council’s next Review of Statewide Uniform Child Support Guideline, due in 2015 (hereinafter “Report”).

In addition to considering economic data on child-rearing costs and case data, in issuing its Report, the Judicial Council also looks to federal regulations when updating child support guidelines. On January 19, 2017, the federal Office of Child Support Enforcement issued its final rule to carry out President Obama’s 2011 directives found in Executive Order 13563: Improving Regulation and Regulatory Review. In awaiting the publication of this rule so that it may create a state guideline that is in compliance with federal law, the Judicial Council delayed issuing its Report. Since the publication of the federal rule in late January, Judicial Council anticipates that the new child support calculator and corresponding Report will instead be issued in early 2018. The new rule was intended to make the federal Child Support Enforcement Program operations and enforcement procedures more flexible, effective, and efficient by recognizing the strength of existing state programs and recent advancements in technology. Thus, in an effort to improve collection rates with support orders that reflect the noncustodial parent’s ability to pay support, the new rule makes significant changes to child support guidelines. (See Federal Register: The Daily Journal of the United States Government, Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs, <https://www.federalregister. gov/documents/2016/12/20/ 2016 -29598/flexibility-efficiency-and-modernization-in-child-support-enforcement-programs [as of February 2, 2017].)

As introduced, this bill would have eliminated the sunset implemented by AB 2393 (Davis, Chapter 646, Statutes of 2012) without offering the Legislature the opportunity to review the Judicial Council’s assessment of whether the provisions of that bill are positively impacting the collection of child support in California. Additionally, given the federal rule issued in late January, there has been little time to determine whether the provisions of AB 2393 are in compliance with federal guidelines. Thus, removing the sunset date of AB 2393 without reviewing the new federal rule may have the additional unintended consequence of reducing the amount of federal funding California receives.

Accordingly, the author accepted amendments in the Judiciary Committee that extended the sunset date until January 1, 2021, to allow the Judicial Council time to review the effectiveness of AB 2393’s provisions and to issue child support guidelines taking the new federal rule into consideration.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 5/15/17)

Western Center on Law and Poverty (source)

Courage Campaign

San Francisco Living Wage Coalition

OPPOSITION: (Verified 5/15/17)

None received

Prepared by:

5/16/17 16:15:55

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2017-2018 Regular Session

Bill No: SB 469 (Author:Skinner)

Version: March 20, 2017

Hearing Date: April 18, 2017

Fiscal: Yes

Urgency: No

Consultant: NR/MS

SUBJECT

Child support guidelines: low-income adjustments

DESCRIPTION

Existing law establishes statewide uniform guidelines for calculating court-ordered child support. These guidelines currently provide that if an obligor’s net disposable monthly income is less than $1,500, subject to an annual cost-of-living adjustment, there is a rebuttable presumption that the obligor is entitled to a low-income adjustment (LIA) that reduces the child support amount. This bill would remove a 2018 sunset date, thereby permanently setting the LIA at $1,500 and permanently requiring an annual cost-of-living adjustment.

BACKGROUND

Generally, parents of a minor child are responsible for financially supporting that child. Statewide uniform guidelines exist in order to calculate the amount of child support a non-custodial parent must pay on behalf of his or her child. These guidelines provide that if an obligor’s net disposable monthly income is less than a specified amount, there is a rebuttable presumption that the obligor is entitled to an adjustment that would reduce the amount of support to be paid, thereby increasing the obligor’s ability to comply with the support order.

Federal and state law require that the Judicial Council review the statewide uniform guideline at least every four years and issue a report (hereinafter “Report”) with recommendations to the Legislature. (Judicial Council, Review of Statewide Uniform Child Support Guideline, Nov. 2010, <http://www.courts.ca.gov/documents/review-sucsg-0611.pdf> [as of January 26, 2017].) The primary purpose of the Report is to ensure that the guideline and resulting child support amounts are appropriate. The findings of the 2010 Report indicate that the cost-of-living had increased nearly 50 percent since the low-income adjustment (LIA) was established in 1994, and the LIA was operating as a barrier to compliance with child support orders. Accordingly, in April of 2011, the Department of Child Support Services and Judicial Council convened a workgroup to discuss and evaluate the Report, and confirmed that the LIA under the California guideline was inadequate. In response, AB 2393 (Davis, Ch. 646, Stats. 2012) raised the LIA from $1,000 to $1,500 per month and required the Judicial Council to make an annual adjustment to the LIA based on inflation. On January 1, 2018, AB 2393 is scheduled to sunset, which would return the LIA to $1,000 per month and delete the provision requiring an annual cost-of-living adjustment. Seeking to ensure that child support obligations continue to be awarded in appropriate amounts, this bill would remove the 2018 sunset date, thereby permanently establishing the LIA at $1,500 subject to an annual adjustment by the Judicial Council.

CHANGES TO EXISTING LAW

Existing law establishes a uniform statewide guideline for calculating child support. This mathematical formula is based on the income of both parents and the amount of time they each spend with the child. (Fam. Code Sec. 4055.)

Existing law requires the Judicial Council to periodically review the guideline to report to the Legislature appropriate revisions, as specified. (Fam. Code Sec. 4054.)

Existing law creates, until January 1, 2018, a rebuttable presumption that an obligor with net disposable income of less than $1,500 a month is entitled to a low-income adjustment to his or her child support obligation. This presumption may be rebutted by evidence showing that application of the adjustment would be unjust or inappropriate in the particular case. (Fam. Code Sec. 4055(b)(7).)

Existing law requires, until January 1, 2018, the Judicial Council to annually update the low-income adjustment based on the California Consumer Price Index, as specified. (Fam. Code Sec. 4055 (b)(7).)

Existing law, beginning January 1, 2018, would restore the low-income adjustment to $1,000 per month and would remove the obligation that the Judicial Council annually update the low-income adjustment based on the California Consumer Price Index. (Fam. Code Sec. 4055(d).)

This bill would remove the January 1, 2018, sunset date from the above provisions, thereby permanently establishing the $1,500 low-income adjustment and the requirement that Judicial Council annually update that adjustment.

COMMENT

1. Stated need for the bill

According to the author:

SB 166 seeks to provide a right-sized order that would enable obligors to successfully meet their obligations, provide a consistent method for child support payments, improve an income stream for families, promote family self-sufficiency, and improve a child’s quality of life while living in a single-parent household.  

1. The Legislature is responsible for revising the uniform child support guideline

Currently, the Judicial Council is required to periodically review the uniform child support guideline and alter the low-income adjustment (LIA) annually based on the California Consumer Price Index. The current LIA is set at $1,500 per month. However, absent legislative action addressing a 2018 sunset date in the Family Code, the authority of the Judicial Council to adjust the LIA will expire and the Legislature alone will be authorized to adjust the uniform child support guideline. This bill would remove that sunset, thereby permanently establishing the LIA at $1,500, subject to an annual adjustment by Judicial Council based on the California Consumer Price Index. The Western Center on Law and Poverty, sponsor of this bill, writes in support, “With the passage of the LIA in 2012, which included a cost of living adjustment, child support obligors have been more successful in achieving timely payments. For this reason, Western Center is proud to sponsor and support SB 166 and respectfully requests your ‘Aye’ vote to repeal the sunset date of the increase of the LIA and annual cost of living increase.”

In approving AB 2393 in 2012 (see Background), the Legislature recognized that while such legislation would allow increases to the LIA without the full consideration of the Legislature, an annual adjustment based on the cost-of-living and inflation could keep the LIA current and arguably result in more reasonable support obligations for low-income obligors. At the same time, this Committee acknowledged that the bill represented a departure from the typical procedure in which the Legislature alone is authorized to revise the state support guidelines, and questioned whether the delegation of this authority was appropriate. Specifically, the Committee noted that the assertion that lower support obligations would result in more consistent payments had yet to be proven on a state-wide basis, and accordingly included a five-year sunset in AB 2393 to allow the Legislature to consider the Judicial Council’s next Review of Statewide Uniform Child Support Guideline, due in 2015 (hereinafter “Report”).

In addition to considering economic data on child-rearing costs and case data, in issuing its Report, the Judicial Council also looks to federal regulations when updating child support guidelines. On January 19, 2017, the federal Office of Child Support Enforcement issued its final rule to carry out President Obama’s 2011 directives found in Executive Order 13563: Improving Regulation and Regulatory Review. In awaiting the publication of this rule so that it may create a state guideline that is in compliance with federal law, the Judicial Council delayed issuing its Report. Since the publication of the federal rule in late January, Judicial Council anticipates that the new child support calculator and corresponding Report will instead be issued in early 2018. The new rule was intended to make the federal Child Support Enforcement Program operations and enforcement procedures more flexible, effective, and efficient by recognizing the strength of existing state programs and recent advancements in technology. Thus, in an effort to improve collection rates with support orders that reflect the noncustodial parent’s ability to pay support, the new rule makes significant changes to child support guidelines. (See Federal Register: The Daily Journal of the United States Government, Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs, <https://www.federalregister. gov/documents/2016/12/20/ 2016 -29598/flexibility-efficiency-and-modernization-in-child-support-enforcement-programs> [as of February 2, 2017].)

As currently in print, this bill would eliminate the sunset implemented by AB 2393 (see background), without offering the Legislature the opportunity to review the Judicial Council’s assessment of whether the provisions of that bill are positively impacting the collection of child support in California. Additionally, given the federal rule issued in late January, there has been little time to determine whether the provisions of AB 2393 are in compliance with federal guidelines. Thus, removing the sunset date of AB 2393 without reviewing the new federal rule may have the additional unintended consequence of reducing the amount of federal funding California receives.

Accordingly, the author may wish to extend the sunset date in AB 2393 by an additional three years in order to allow the Judicial Council to review the effectiveness of AB 2393’s provisions and to issue child support guidelines taking the new federal rule into consideration.

Suggested amendment:

On page 5, at line 30 insert:

(d) This section shall remain in effect only until January 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2021, deletes or extends that date.

Support: Courage Campaign; San Francisco Living Wage Coalition

Opposition: None Known

HISTORY

Source: Western Center on Law & Poverty

Related Pending Legislation: None Known

Prior Legislation:

AB 2393 (Davis, Ch. 646, Stats. 2012) see Background.

AB 923 (Speier, Ch. 906, Stats. 1994) gave courts discretion to lower the amount of child support to be paid in all cases where the net disposable income per month of the obligor is less than $1,000 and the court finds that a low-income adjustment should be made.

SB 541 (Hart, Ch. 1156, Stats. 1993) adjusted the statewide uniform guideline in high-income cases.

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