GOVERNOR'S VETO

GV Bill Id:AB 2046

Author:(Voepel)

As Enrolled Ver:August 31, 2020

2/3 vote

SUMMARY:

Limits the amount of child support arrears that can be collected from a low-income child support obligor who is also a disabled veteran receiving disability compensation to no more than five percent of the obligor's monthly disability compensation. Specifically, this bill provides that if a child support obligor is a disabled veteran receiving disability compensation from the United States Department of Veterans Affairs and, but for receipt of the disability compensation, would have an income that would qualify the obligor for Supplemental Security Income/State Supplementary Payments (SSI/SSP), and the obligor has supplied the local child support agency with proof of receipt of disability compensation and proof of other income and assets, the order/notice to withhold income issued by the local child support agency for the liquidation of the arrearage may not exceed five percent of the obligor's total monthly disability compensation.

Governor's Veto Message:

This bill seeks to limit the amount of child support arrears that may be garnished via an income withholding order from a low-income disabled veteran to no more than five percent of their monthly Veterans Administration (VA) disability payments.

While the intent of this bill is laudable, I am concerned that there is confusion about if and when VA disability benefits can be garnished and that adding a new state law will only increase that confusion. Federal law currently prohibits VA disability payments from several types of garnishment, including for child support enforcement, and we comply with federal law. Given this confusion, I am directing the Department of Child Support Services to make information about the existing federal law available on its website.

COMMENTS:

Child support obligors are required to make monthly current support payments to support their children, and, should they fall behind in paying support, also make monthly payments on the past due support or arrears owed. The amount of money that may be withheld from an obligor's income to pay support, both current and arrears, is governed by federal law, but is generally 50% of the obligor's income (but can be up to 65%). (15 U.S.C. Section 1673.) Elderly, disabled, or blind individuals with almost no other income or assets can qualify to receive SSI/SSP income, which is means-tested. To prevent the impoverishment of child support obligors who receive SSI, state law limits the past-due support that may be collected from them to no more than five percent of their social security income. This bill seeks to provide this same benefit to low-income child support obligors who receive disability benefits from the Department of Veterans Affairs by limiting the amount of child support arrears they are required to pay to no more than five percent of their monthly disability compensation.

The basics of California's child support guideline. Child support – financial support provided by one parent, generally the noncustodial parent, to the child – is mandatory; and, as required by federal law, California has a statutory child support guideline – a mathematical formula – to calculate a noncustodial parent's child support obligation. (Family Code Section 4055. All further references are to the Family Code unless cited otherwise.) The guideline is based on both parents' income and the time each parent spends with the children. The result of the guideline is presumed to be correct, unless the court determines that application of the guideline would be unjust or inappropriate in a particular case due to special circumstances. In implementing the guideline, courts are required to adhere to certain principles, including:

1. A parent's first and principal obligation is to support their minor children according to the parent's circumstances and station in life.
2. Both parents are mutually responsible for the support of their children.
3. The guideline takes into account each parent's actual income and level of responsibility for the children.
4. Each parent should pay for the support of the children according to their ability.
5. The guideline seeks to place the interests of children as the state's top priority.
6. Children should share in the standard of living of both parents. (Section 4056.)

These principles make clear that a court must consider both parents' actual income and time with the children. The court may also consider the earning capacity of a parent, in place of that parent's actual earnings, if it is consistent with the best interests of the children. (Section 4058 (b).)

Child support provides critical support to children, but paying it should not fully impoverish the child support obligor. Child support is critical to the financial security of millions of children across the nation and throughout California. Fully two-thirds of all poor children live with only one parent, nearly all of those with single mothers. (Children's Defense Fund, Child Poverty in America 2017: National Analysis (Sept. 12, 2018).) For low-income families who receive child support, child support accounts for almost half (49%) of their annual income. (Carmen Solomon-Fears, Child Support: An Overview of Census Bureau Data on Recipients, Congressional Research Service (March 1, 2016) p. 7.) Child support is also a substantial source of income for families leaving welfare. Regular child support payments increase the likelihood that families leave welfare and remain off of it. (Office of Child Support Enforcement, The Story Behind the Numbers: The Child Support Program is a Good Investment (Dec. 2016) p. 8.)

Receipt of child support also has many other benefits for children and their families. Parents who pay child support are more likely to be involved with their children, children's educational outcomes increase, and the risks of child maltreatment decreases. (Id. at 9.) Finally, successful child support enforcement not only recoups public assistance expenditures, but also reduces the need for public assistance in the first place.

However, there are some negative consequences of child support, particularly for low-income noncustodial or obligor parents. While most noncustodial parents can pay child support without impoverishing themselves, some parents do not make sufficient money to support both themselves and also their children. Approximately 250,000 noncustodial parents across the United States fell into poverty in 2015 as a result of paying child support. (Office of Child Support Enforcement, The Story Behind the Numbers, supra, at 11.) California law recognizes these instances and tries to help ensure low-income noncustodial parents have enough to support themselves. First, there is a low-income adjustment to the guideline that presumptively reduces the amount of child support owed by an obligor who earns less than $1,500 a month.

Second, and of direct relevance to this bill, if an obligor is disabled, meets the SSI resource test, and is receiving SSI/SSP or, but for certain excess income would be eligible to receive SSI/SSP, then the order to withhold income issued by a local child support agency for past due support cannot exceed five percent of the obligor's total monthly Social Security payments. (Section 5246.)

Veteran's disability benefits are fundamentally different than SSI/SSP. Social Security Supplemental Security Income is a federal funded benefit for individuals who are 65 or older, blind, or disabled, who are not otherwise eligible for social security disability benefits, and who meet stringent eligibility criteria. The SSP program is a state program that supplements SSI for California residents and is administered as part of the SSI program. Maximum monthly SSI/SSP benefits for 2020 for individuals (and couples) are:

1. Elderly: $943.72 ($1,582.14)
2. Blind: $1,000.23 ($1,733.19)
3. Disabled: $943.72 ($1,582.14)

(Social Security Administration, A Guide to Supplemental Security Income (SSI) for Groups and Organizations (2020) p. 5.)

An individual is only eligible for SSI if their unearned income is less than $803 a month and their earned income is less than $1,652, though both earned and unearned income will reduce the recipient's SSI benefits. An SSI recipient can only have $2,000 in assets or $3,000 for a couple, though certain items are exempted from counting, such as the recipient's residence and, generally, one car.

By contrast, veteran's benefits are not means tested – neither high income nor significant assets will limit the right to these benefits. Thus a disabled veteran receiving disability benefits from the VA could also be a high-powered attorney or cardiologist earning hundreds of thousands of dollars a year or more and could have nearly unlimited assets. To avoid an unjust result, this bill provides the five percent arrears maximum to those disabled veterans who, but for receipt of the VA disability benefits, have an income that would qualify them for SSI/SSP. Thus, a wealthy disabled veteran would, appropriately, not qualify for a reduction of past due child support, but a low-income disabled veteran would.

This bill limits the total amount that can be collected in arrears, regardless of source. The Governor's veto message states that this bill is unnecessary and confusing because: "Federal law currently prohibits VA disability payments from several types of garnishment, including for child support enforcement, and we comply with federal law." However, for low-income disabled veterans who owe child support, this bill limits collection of arrears from all sources, not just their disability payments, to five percent of their total monthly disability compensation. Thus, this bill protects all income of low-income disabled veterans.

According to the Author:

In support of the bill, the author writes: "There isn't an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support. … It's all about being fair."

Arguments in Support:

Supporters write that AB 2046 will ensure that "low income disabled veterans have the same rights that other disabled Californians have for child support collection."

Arguments in Opposition:

None on file

FISCAL COMMENTS:

According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

VOTES:

ASM JUDICIARY: 11-0-0

YES: Mark Stone, Gallagher, Chau, Chiu, Gonzalez, Holden, Kalra, Kiley, Maienschein, Obernolte, Reyes

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bauer-Kahan, Bloom, Bonta, Calderon, Carrillo, Chau, Megan Dahle, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Petrie-Norris, McCarty, Robert Rivas, Voepel

ASSEMBLY FLOOR: 76-0-3

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Megan Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager, Kiley, Lackey, Levine, Limón, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Obernolte, Patterson, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

ABS, ABST OR NV: Low, Muratsuchi, Quirk

SENATE FLOOR: 39-0-1

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Melendez, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

ABS, ABST OR NV: Jones

UPDATED:

VERSION: August 31, 2020

CONSULTANT: Leora Gershenzon / JUD. / (916) 319-2334 FN: 0003720

 CONSENT 

Bill No: AB 2046

Author: Voepel (R)

Amended: 3/4/20 in Assembly

Vote: 21

SENATE JUDICIARY COMMITTEE: 9-0, 7/30/20

AYES: Jackson, Borgeas, Durazo, Lena Gonzalez, Melendez, Monning, Stern, Umberg, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 6/8/20 (Consent) - See last page for vote

SUBJECT: Family law: child support

SOURCE: Coalition of California Welfare Rights Organizations

DIGEST:

This bill limits the amount of child support arrears that can be collected from a low-income child support obligor who is also a disabled veteran receiving disability compensation to five percent of their monthly disability compensation.

ANALYSIS:

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 children. (Fam. Code § 4050 et seq.)^[1]
2. Establishes procedures to enforce the payment of child support arrearages, including authorizing a local child support agency to require an employer to withhold income in specified amounts. (§ 17400 et seq.) Generally limits that amount to 50 percent of the obligor’s income, although in some circumstances it may be up to 65 percent. (15 U.S.C. § 1673.)
3. Provides that, if an obligor is disabled, meets the SSI resource test, and is receiving SSI/ SSP or, but for certain excess income, would be eligible to receive SSI/SSP, as provided, and the obligor has supplied the local child support agency with proof of eligibility for and, if applicable, receipt of, SSI/SSP or Social Security Disability Insurance benefits, then the order/notice to withhold income issued by the local child support agency may not exceed five percent of the obligor’s total monthly Social Security Disability payments. (§ 5246.)

This bill similarly provides that if a child support obligor is a disabled veteran receiving disability compensation from the United States Department of Veterans Affairs and, but for receipt of the disability compensation, would have an income that would qualify the obligor for Supplemental Security Income/State Supplementary Payments (SSI/SSP), and the obligor has supplied the local child support agency with proof of receipt of disability compensation and proof of other income and assets, the order/notice to withhold income issued by the local child support agency may not exceed five percent of the obligor’s total monthly disability compensation.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/13/20)

Coalition of California Welfare Rights Organizations (source)
California Association of Certified Family Law Specialists
California In-Home Supportive Services Consumer Alliance

California Judges Association

OPPOSITION: (Verified 8/13/20)

None received

ARGUMENTS IN SUPPORT: The author writes: “There isn’t an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support. … It’s all about being fair.” This sentiment is echoed by the sponsor and supporters of the bill. The author also argues that the bill’s protections are necessary to ensure veterans are not driven into destitution, noting that veterans disproportionately experience homelessness, mental illness, and substance abuse problems.

ASSEMBLY FLOOR: 76-0, 6/8/20

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Megan Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager, Kiley, Lackey, Levine, Limón, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Low, Muratsuchi, Quirk

Prepared by: Josh Tosney / JUD. / (916) 651-4113

8/14/20 12:11:59

**** END ****

1. All further section references are to the Family Code, unless otherwise specified. ↑

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2019-2020 Regular Session

Bill No: AB 2046 (Author:Voepel)

Version: March 4, 2020

Hearing Date: July 30, 2020

Fiscal: Yes

Urgency: No

Consultant: JT

SUBJECT

Family law: child support

DIGEST

This bill limits the amount of child support arrears that can be collected from a low-income child support obligor who is also a disabled veteran receiving disability compensation to five percent of their monthly disability compensation.

EXECUTIVE SUMMARY

Elderly, disabled, or blind individuals with almost no other income or assets can qualify to receive Supplemental Security Income/State Supplementary Payments (SSI/SSP) income, which is means-tested. To prevent the impoverishment of child support obligors who receive SSI, state law limits the past-due support that may be collected from them to five percent of their social security income. This bill seeks to extend this benefit to low-income child support obligors who receive veterans disability benefits from the Department of Veterans Affairs.

The bill is sponsored by the Coalition of California Welfare Rights Organizations and supported by the California Association of Certified Family Law Specialists and the California In-Home Supportive Services Consumer Alliance. It has no known opposition.

PROPOSED CHANGES TO THE LAW

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 children. (Fam. Code § 4050 et seq.)^[1]
2. Establishes procedures to enforce the payment of child support arrearages, including authorizing a local child support agency to require an employer to withhold income in specified amounts. (§ 17400 et seq.) Generally limits that amount to 50 percent of the obligor’s income, although in some circumstances it may be up to 65 percent. (15 U.S.C. § 1673.)
3. Provides that, if an obligor is disabled, meets the SSI resource test, and is receiving SSI/ SSP or, but for certain excess income, would be eligible to receive SSI/SSP, as provided, and the obligor has supplied the local child support agency with proof of eligibility for and, if applicable, receipt of, SSI/SSP or Social Security Disability Insurance benefits, then the order/notice to withhold income issued by the local child support agency may not exceed five percent of the obligor’s total monthly Social Security Disability payments. (§ 5246.)

This bill similarly provides that if a child support obligor is a disabled veteran receiving disability compensation from the United States Department of Veterans Affairs and, but for receipt of the disability compensation, would have an income that would qualify the obligor for Supplemental Security Income/State Supplementary Payments (SSI/SSP), and the obligor has supplied the local child support agency with proof of receipt of disability compensation and proof of other income and assets, the order/notice to withhold income issued by the local child support agency may not exceed five percent of the obligor’s total monthly disability compensation.

COMMENTS

1. Limits child support withholdings from veterans’ disability compensation

In 2015, the federal Office of Child Support Enforcement reported that the child support program “serves more than one in five children in the United States, providing 41 per-cent of family income to poor families who receive support payments, lifting one million people out of poverty every year, and reducing the need for public assistance, at little cost to the federal government.”^[2] Despite the overall success of the program, however, the report noted that in that same year an estimated 254,000 noncustodial parents fell into poverty as a result of having to pay child support.^[3]

Generally, an obligor’s income may be garnished by up to 50 percent to pay past-due child support. (15 U.S.C. § 1673.) However, some limitations have been established to protect certain low-income obligors from impoverishment. Of relevance to this bill, section 5246 limits the past-due support that may be collected from obligors who are disabled and receive SSI to no more than five percent of their social security income.

This bill seeks to provide this same protection to low-income child support obligors who receive disability benefits from the Department of Veterans Affairs by similarly limiting the amount of child support arrears they are required to pay to no more than five percent of their monthly disability compensation. The author writes: “There isn’t an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support. … It’s all about being fair.” This sentiment is echoed by the sponsor and supporters of the bill. The author also argues that the bill’s protections are necessary to ensure veterans are not driven into destitution, noting that veterans disproportionately experience homelessness, mental illness, and substance abuse problems.

SUPPORT

Coalition of California Welfare Rights Organizations (sponsor)
California Association of Certified Family Law Specialists
California In-Home Supportive Services Consumer Alliance

OPPOSITION

None known

RELATED LEGISLATION

Pending Legislation:

AB 2325 (Carrillo, 2020) would reestablish, until January 1, 2023, a pilot program that provides for the suspension of child support for incarcerated obligors. That bill will be heard in this Committee on the same day as this bill.

AB 3365 (Assembly Judiciary Committee, 2020) would, among other things, remove the sunset on the 2013 increase—from $1,000 to $1,500—to the low-income adjustment to the child support guideline. That bill is pending in this Committee.

Prior Legislation:

AB 1091 (Jones-Sawyer, 2019) would have extended a pilot program that provides for the suspension of child support for incarcerated obligors. The bill was held on the Assembly Floor.

AB 1092 (Jones-Sawyer, 2019) would have limited the interest that may be charged on child support assigned to the county. The bill was vetoed.

SB 337 (Skinner, 2019) would have increased the amount of child support passed through to families receiving public assistance, but was vetoed. However, similar provisions were adopted in this year’s budget.

AB 891 (Goldberg, Ch. 651, Stats. 2001) provided that an assignment order against the earnings of a non-custodial parent for purposes of child support, when made against an obligor who is disabled, may not reduce the obligor’s income below the amount they receive (or would be eligible to receive but for excess income) from SSI/SSP, and other specified program benefits.

PRIOR VOTES:

Assembly Floor (Ayes 76, Noes 0)

Assembly Appropriations Committee (Ayes 18, Noes 0)

Assembly Judiciary Committee (Ayes 11, Noes 0)

**************

1. All further section references are to the Family Code, unless otherwise specified. ↑

2. Office of Child Support Enforcement, The Story Behind the Numbers: The Child Support Program is a Good Investment (Dec. 2016) p. 2. ↑

3. Id. at 11. ↑

Date of Hearing: June 2, 2020

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2046

Author:(Voepel) – As Amended Ver:March 4, 2020

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

SUMMARY:

This bill limits the amount of child support arrears that may be collected from a low income disabled veteran to no more than 5% of their monthly disability payments.

FISCAL EFFECT:

No costs to the Department of Child Support Services since existing law already prohibits an Income Withholder Order against veterans’ benefits.

COMMENTS:

1. Purpose. According to the author: There isn’t an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support.
2. Child Support Orders. Child support obligors are required to make monthly current support payments to support their children, and, should they fall behind in paying support, to make monthly payments on the past due support or arrears owed. The amount of money that may be withheld from an obligor’s income to pay support, both current and arrears, is governed by federal law, but is generally 50% of the obligor’s income. To prevent the impoverishment of child support obligors who receive social security income (SSI), state law limits the past-due support that may be collected from them to no more than 5% of their social security income.
   
   Veterans’ disability compensation cannot be garnished at all unless a veteran waives part of their military retired pay in order to receive Veterans Administration (VA) disability benefits. If a veteran waived part of their taxable military retirement to receive nontaxable disability compensation, disability benefits can be garnished to meet alimony and child support obligations. Only the amount of the disability compensation paid in place of retirement pay may be garnished. The remainder of disability compensation is protected.
   
   Approximately 250,000 noncustodial parents across the United States fell into poverty in 2015 as a result of paying child support. Under existing law, a obligor parent who is disabled, meets the SSI resources test, or but for exempted excess income, would be eligible for SSI, may reduce their child support obligation to no more than 5% of their social security disability payment. This bill extends the same child support deduction requirements to obligor parents receiving VA benefits.
3. Related Legislation.
   1. AB 1091 (Jones-Sawyer), of the 2019-2020 Legislative Session, proposed to extend indefinitely a program to suspend the obligation to pay child support when the obligor is incarcerated or involuntarily institutionalized, as provided. AB 1091 died on the inactive file on the Assembly Floor.
   2. AB 1092 (Jones-Sawyer), of the 2019-2020 Legislative Session, limits the interest that may be charged on child support assigned to the county. AB 1092 was vetoed.
   3. AB 2325 (Carrillo), of the 2019-2020 Legislative Session, reestablishes, until January 1, 2023, a program to suspend a parent’s obligation to pay child support when the parent is incarcerated or involuntarily institutionalized, unless incarcerated for domestic violence. AB 2325 is pending in this committee.

Analysis Prepared by: Kimberly Horiuchi / APPR. / (916) 319-2081

Date of Hearing: March 10, 2020

ASSEMBLY COMMITTEE ON JUDICIARY

Mark Stone, Chair

ABPCA Bill Id:AB 2046

Author:(Voepel) – As Amended Ver:March 4, 2020

PROPOSED CONSENT

SUBJECT: CHILD SUPPORT: VETERANS’ DISABILITY BENEFITS

KEY ISSUE: SHOULD LOW-INCOME DISABLED VETERANS RECEIVING DISABILITY BENEFITS FROM THE DEPARTMENT OF VETERANS AFFAIRS, LIKE SSI RECIPIENTS, BE ABLE TO REDUCE THE amount of PAST DUE CHILD SUPPORT THEY ARE REQUIRED TO PAY EACH MONTH?

SYNOPSIS

Child support obligors are required to make monthly current support payments to support their children, and, should they fall behind in paying support, also make monthly payments on the past due support or arrears owed. The amount of money that may be withheld from an obligor’s income to pay support, both current and arrears, is governed by federal law, but is generally 50 percent of the obligor’s income (but can be up to 65 percent). (15 U.S.C. Section 1673.) Elderly, disabled, or blind individuals with almost no other income or assets can qualify to receive Supplemental Security Income/State Supplementary Payments (SSI/SSP) income, which is means-tested. To prevent the impoverishment of child support obligors who receive SSI, state law limits the past-due support that may be collected from them to no more than five percent of their social security income. This bill seeks to provide this same benefit to low-income child support obligors who receive disability benefits from the Department of Veterans Affairs by limiting the amount of child support arrears they are required to pay to no more than five percent of their monthly disability compensation. As recently amended, this bill ensures that disabled veterans who have such low incomes that they would qualify for SSI, but for receipt of disability benefits, are not further impoverished by having to pay a larger percentage of back child support.

In support of the bill, the author writes: “There isn’t an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support. … It’s all about being fair.” The bill is sponsored by the Coalition of California Welfare Rights Organizations and supported by the California In-Home Supportive Services Consumer Alliance. There is no reported opposition to the bill.

SUMMARY: Limits the amount of child support arrears that can be collected from a low-income child support obligor who is also a disabled veteran receiving disability compensation to no more than five percent of the obligor’s monthly disability compensation. Specifically, this bill provides that if a child support obligor is a disabled veteran receiving disability compensation from the United States Department of Veterans Affairs and, but for receipt of the disability compensation, would have an income that would qualify the obligor for Supplemental Security Income/State Supplementary Payments (SSI/SSP), and the obligor has supplied the local child support agency with proof of receipt of disability compensation and proof of other income and assets, the order/notice to withhold income issued by the local child support agency for the liquidation of the arrearage may not exceed five percent of the obligor’s total monthly disability compensation

EXISTING LAW:

1. Requires that parents have an equal obligation to support their minor children. Establishes a uniform, statewide guideline for calculating child support, based on the income of both parents and the time they each spend with the children. (Family Code Sections 3900 and 4050 et seq. Unless stated otherwise, all further references are to that code.)
2. Increases, 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. (Section 4055 (b)(7).)
3. Provides that, if an obligor is disabled, meets the SSI resource test, and is receiving SSI/ SSP or, but for certain excess income, would be eligible to receive SSI/SSP, as provided, and the obligor has supplied the local child support agency with proof of eligibility for and, if applicable, receipt of, SSI/SSP or Social Security Disability Insurance benefits, then the order/notice to withhold income issued by the local child support agency for the liquidation of the arrearage shall not exceed five percent of the obligor’s total monthly Social Security Disability payments under Title II of the Social Security Act. (Section 5246.)

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

COMMENTS: Child support obligors are required to make monthly current support payments to support their children, and, should they fall behind in paying support, also make monthly payments on the past due support or arrears owed. The amount of money that may be withheld from an obligor’s income to pay support, both current and arrears, is governed by federal law, but is generally 50 percent of the obligor’s income (but can be up to 65 percent). (15 U.S.C. Section 1673.) Elderly, disabled, or blind individuals with almost no other income or assets can qualify to receive SSI/SSP income, which is means-tested. To prevent the impoverishment of child support obligors who receive SSI, state law limits the past-due support that may be collected from them to no more than five percent of their social security income. This bill seeks to provide this same benefit to low-income child support obligors who receive disability benefits from the Department of Veterans Affairs by limiting the amount of child support arrears they are required to pay to no more than five percent of their monthly disability compensation.

In support of the bill, the author writes: “There isn’t an equalized field when it comes to protecting disabled veterans the same way to non-veterans when it comes to child support. … It’s all about being fair.”

The basics of California’s child support guideline. Child support – financial support provided by one parent, generally the noncustodial parent, to the child – is mandatory; and, as required by federal law, California has a statutory child support guideline – a mathematical formula – to calculate a noncustodial parent’s child support obligation. (Section 4055.) The guideline is based on both parents' income and the time each parent spends with the children. The result of the guideline is presumed to be correct, unless the court determines that application of the guideline would be unjust or inappropriate in a particular case due to special circumstances. In implementing the guideline, courts are required to adhere to certain principles, including:

• A parent’s first and principal obligation is to support their 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 their 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. (Section 4056.)

These principles make clear that a court must consider both parents' actual income and time with the children. The court may also consider the earning capacity of a parent, in place of that parent's actual earnings, if it is consistent with the best interests of the children. (Section 4058 (b).)

Child support provides critical support to children, but paying it should not fully impoverish the child support obligor. Child support is critical to the financial security of millions of children across the nation and throughout California. Fully two-thirds of all poor children live with only one parent, nearly all of those with single mothers. (Children’s Defense Fund, Child Poverty in America 2017: National Analysis (Sept. 12, 2018).) For low-income families who receive child support, child support accounts for almost half (49 percent) of their annual income. (Carmen Solomon-Fears, Child Support: An Overview of Census Bureau Data on Recipients, Congressional Research Service (March 1, 2016) p. 7.) Child support is also a substantial source of income for families leaving welfare. Regular child support payments increase the likelihood that families leave welfare and remain off of it. (Office of Child Support Enforcement, The Story Behind the Numbers: The Child Support Program is a Good Investment (Dec. 2016) p. 8.)

Receipt of child support also has many other benefits for children and their families. Parents who pay child support are more likely to be involved with their children, children’s educational outcomes increase, and the risks of child maltreatment decreases. (Id. at 9.) Finally, successful child support enforcement not only recoups public assistance expenditures, but also reduces the need for public assistance in the first place.

However, there are some negative consequences of child support, particularly for low-income noncustodial or obligor parents. While most noncustodial parents can pay child support without impoverishing themselves, some parents do not make sufficient money to support both themselves and also their children. Approximately 250,000 noncustodial parents across the United States fell into poverty in 2015 as a result of paying child support. (Office of Child Support Enforcement, The Story Behind the Numbers, supra, at 11.) California law recognizes these instances and tries to help ensure low-income noncustodial parents have enough to support themselves. First, there is a low-income adjustment to the guideline that presumptively reduces the amount of child support owed by an obligor who earns less than $1,500 a month, previously $1,000 per month. That expanded low-income adjustment is scheduled to be reduced to $1,000 at the end of the year, but the Committee is introducing legislation to extend the larger low-income adjustment indefinitely.

Second, and of direct relevance to this bill, if an obligor is disabled, meets the SSI resource test, and is receiving SSI/SSP or, but for certain excess income would be eligible to receive SSI/SSP, then the order to withhold income issued by a local child support agency for past due support cannot exceed five percent of the obligor’s total monthly Social Security payments. (Section 5246.)

Veteran’s disability benefits are fundamentally different than SSI/SSP. Social Security Supplemental Security Income is a federal funded benefit for individuals who are 65 or older, blind, or disabled, who are not otherwise eligible for social security disability benefits, and who meet stringent eligibility criteria. The SSP program is a state program that supplements SSI for California residents and is administered as part of the SSI program. Maximum monthly SSI/SSP benefits for 2020 for individuals (and couples) are:

• Elderly: $943.72 ($1,582.14)
• Blind: $1,000.23 ($1,733.19)
• Disabled: $943.72 ($1,582.14)

(Social Security Administration, A Guide to Supplemental Security Income (SSI) for Groups and Organizations (2020) p. 5.)

An individual is only eligible for SSI if their unearned income is less than $803 a month and their earned income is less than $1,652, though both earned and unearned income will reduce the recipient’s SSI benefits. An SSI recipient can only have $2,000 in assets or $3,000 for a couple, though certain items are exempted from counting, such as the recipient’s residence and, generally, one car.

By contrast, veteran’s benefits are not means tested – neither high income nor significant assets will limit the right to these benefits. Thus a disabled veteran receiving disability benefits from the VA could also be a high-powered attorney or cardiologist earning hundreds of thousands of dollars a year or more and could have nearly unlimited assets. Under this bill as originally written, a disabled veteran with a large income, but who has avoided paying child support, could shield nearly all of their income from being taken to pay back child support to their struggling children. However, as recently amended, this bill now provides the five percent arrears maximum to those disabled veterans who, but for receipt of the VA disability benefits, have an income that would qualify them for SSI/SSP. Thus, a wealthy disabled veteran would, appropriately, not qualify for a reduction of past due child support, but a low-income disabled veteran would.

ARGUMENTS IN SUPPORT: Supporters write that AB 2046 will ensure that “low income disabled veterans have the same rights that other disabled Californians have for child support collection.”

REGISTERED SUPPORT / OPPOSITION:

Support

Coalition of California Welfare Rights Organizations (sponsor)

California In-Home Supportive Services Consumer Alliance

Opposition

None on file

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