Existing law establishes a statewide compromise of arrears program pursuant to which the Department of Child Support Services may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to the California Work Opportunity and Responsibility to Kids Act. Existing law provides that if an obligor owes current child support, the offer in compromise shall require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. Existing law grants the administrator of a local child support agency the authority to compromise an amount of child support arrears of up to $5,000. Existing law makes a determination that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to specified complaint resolution processes or subject to judicial review.

This bill would instead provide that the offer in compromise may require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. This bill would increase the existing authority to compromise an amount of child support arrears to $10,000. The bill would delete the above-described provision related to final determinations.

The bill would, beginning July 1, 2027, require the department, in consultation with stakeholders, to promulgate regulations to implement uniform forms, standards, procedures, and notice and reporting requirements to ensure the uniform operation of the compromise of arrears program, as specified. Among other things, the bill would prohibit the uniform application from requiring the applicant to make an offer of repayment and would require the application to notify the applicant of their right to use a complaint resolution and state hearing process, as specified. The bill would require each local child support agency to include information about the compromise of arrears program on its internet website, as specified, and require the department to include in its regulations timeframes for program notices and procedures that ensure that the total time in between when an applicant submits an application and receives a final determination is no more than 180 days. The bill would require uniform eligibility and repayment standards and would require the establishment of reporting requirements to allow the department to evaluate the uniformity and effective of the program. By increasing the duties of local child support agencies, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes a statewide compromise of arrears program pursuant to which the Department of Child Support Services may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to the California Work Opportunity and Responsibility to Kids Act. Existing law provides that if an obligor owes current child support, the offer in compromise shall require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. Existing law grants the administrator of a local child support agency the authority to compromise an amount of child support arrears of up to $5,000. Existing law makes a determination that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to specified complaint resolution processes or subject to judicial review.

This bill would instead provide that the offer in compromise may require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. This bill would increase the existing authority to compromise an amount of child support arrears to $10,000. The bill would delete the above-described provision related to final determinations.

The bill would would, beginning July 1, 2027, require the department, in consultation with stakeholders, to promulgate regulations to implement uniform forms, standards, procedures, and notice and reporting requirements for use by local child support agencies to ensure the uniform operation of the compromise of arrears program, as specified. Among other things, the bill would prohibit the uniform application from requiring the applicant to make an offer of repayment and would require the application to notify the applicant of their right to use a complaint resolution and state hearing process, as specified. The bill would require each local child support agency to include information about the compromise of arrears program on its internet website, as specified, and require applications to be acted on within specified timelines. the department to include in its regulations timeframes for program notices and procedures that ensure that the total time in between when an applicant submits an application and receives a final determination is no more than 180 days. The bill would require uniform eligibility and repayment standards to authorize local child support agencies to negotiate a repayment amount that is less than the repayment amount that corresponds to the applicants eligibility standards based on specified circumstances, including the applicants employment history and barriers. The bill and would require the establishment of reporting requirements for local child support agencies to allow the department to evaluate the uniformity and effective of the program. By increasing the duties of local child support agencies, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes a statewide compromise of arrears program pursuant to which the Department of Child Support Services may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to the California Work Opportunity and Responsibility to Kids Act. Existing law provides that if an obligor owes current child support, the offer in compromise shall require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. Existing law grants the administrator of a local child support agency the authority to compromise an amount of child support arrears of up to $5,000. Existing law makes a determination that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to specified complaint resolution processes or subject to judicial review.

This bill would instead provide that the offer in compromise may require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. This bill would increase the existing authority to compromise an amount of child support arrears to $10,000. The bill would delete the above-described provision related to final determinations.

The bill would require the department, in consultation with stakeholders, to promulgate regulations to implement uniform forms, standards, procedures, and notice and reporting requirements for use by local child support agencies to ensure the uniform operation of the compromise of arrears program, as specified. Among other things, the bill would prohibit the uniform application from requiring the applicant to make an offer of repayment and would require the application to notify the applicant of their right to use a complaint resolution process, as specified. The bill would require each local child support agency to include information about the compromise of arrears program on its internet website, as specified, and require applications to be acted on within specified timelines. The bill would require uniform eligibility and repayment standards to authorize local child support agencies to negotiate a repayment amount that is less than the repayment amount that corresponds to the applicants eligibility standards based on specified circumstances, including the applicants employment history and barriers. The bill would require the establishment of reporting requirements for local child support agencies to allow the department to evaluate the uniformity and effective of the program. By increasing the duties of local child support agencies, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

GOVERNOR'S VETO

GV Bill Id:AB 2395

Author:(Sharp-Collins)

As Enrolled Ver:August 27, 2026

2/3 vote

SUMMARY

Establishes procedures for accepting and responding to applications to the compromise of arrears program.

Major Provisions

1. Authorizes, rather than requires, an offer in compromise extended under the statewide compromise of arrears program to an obligor who owes current child support to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
2. Authorizes the director's designee to determine that it is in the best interest of the state not to rescind an offer in compromise entered into under the statewide compromise of arrears program (COAP).
3. Authorizes the director to delegate to the administrator of a local child support agency (LCSA) authority to compromise an amount of child support arrears up to ten thousand dollars, increased from five thousand dollars.
4. Strikes the provision making a determination by the administrator, director or the director's designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the complaint review process of Chapter 5 of Division 17, or judicial review.
5. Requires any program established and operated by the department or delegated to the administrator of a local child support agency to be subject to specified requirements in order to ensure that the compromise of arrears program operates uniformly throughout the state, including all of the following:
   1. No later than January 1, 2028, the department, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this section, which must include uniform notice requirements and procedures, including timeframes for notice and procedures to ensure applications are processed in a timely manner and that the total time in between the initial application and final determination is no more than 180 days.
   2. The department shall create uniform application forms and eligibility and repayment standards and mandatory repayment agreement, to be used by local child support agencies.
   3. The department shall establish reporting requirements regarding their implementation of this section and Section 17560 to allow the department to evaluate the uniformity and effectiveness of the program.

Senate Amendments

Clarify, recast, and streamline provisions and delay implementation until July 1, 2027

Governor's Veto Message

This bill modifies the statewide Debt Reduction Program (DRP), through which parents can make an offer in compromise for child support and interest owed to the state. The bill requires the Department of Child Support Services (DCSS) to implement highly specific standardized forms and procedures across all local child support agencies (LCSAs) to ensure the DRP operates uniformly throughout the state.

I appreciate the author's intent to increase access to the DRP. However, while well-intentioned, this bill adds unnecessary complexity to provide improvements that can be achieved administratively. DCSS already has full statutory authority to establish and operate a statewide DRP. To that end, DCSS is already working with local child support agencies and other stakeholders to improve the program's transparency, fairness, and accountability.

Finally, the new complaint resolution process envisioned by this bill would require administrators to review and potentially overturn their own decisions – creating an inherent conflict of interest. These charges undermine the program's clarity and administrative integrity, and do not provide meaningful improvements for families seeking debt relief.

COMMENTS

When families apply for CalWORKs – California's TANF program – they are required to assign to the county their rights to any child support owed during the period they receive assistance and to cooperate with the child support program in enforcement efforts. As of 2022, the first $100 of a child support order collected for one child or $200 for two or more children is passed on by the state to the custodial parent each month. This amount is referred to as "pass-through" support. The remaining amount collected is retained by the state and distributed between the county, state, and repaid to the federal government. Once a family leaves assistance (then referred to as "formerly assisted"), the family is paid the current support and any arrears owed them first and the government recoups what is owed to them – the amount of support due when the family was on assistance, up to the amount of assistance paid to the family – after the family is fully paid. In no event can the government retain more than what was paid out in assistance. Recent changes in department policy have allowed greater pass-through amounts for formerly assisted families. (For more information on state arrears and pass-through, see: https://lao.ca.gov/Publications/Report/4861.)

Recognizing the significant amount of arrears owed to the state as a result of CalWORKS participation, and the exacerbating effect those arrears were likely to have on low-income families, the Legislature enacted the compromise of arrears program (COAP). Under COAP, an eligible obligor can apply to have up to $5,000 of their debt forgiven, subject to an agreement between the obligor and the department. The COAP program can be found at Family Code Section 17560.

This bill seeks to create consistent application of the state's COAP program by implementing standard processing and response timelines, a mechanism for administrative review, and otherwise standardizes the COAP procedure for applicants across the state.

According to the Author

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future. Existing law requires that the COAP program "operate uniformly across California." (Family Code Section 17560 (a).) While the DCSS has an internal policy manual that provides some guidance on how LCSAs should manage individual applications, there are otherwise no uniform procedures. The department's policy manual is not available online, but can be obtained upon request via email at the email listed at this website: https://dcss.ca.gov/policies/.

Arguments in Support

This bill is sponsored by the Western Center on Law and Poverty. It is supported by a number of low-income legal services and restorative justice organizations. In support of the bill the sponsors submit:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Families receiving CalWORKs generally only receive $100 (for one child) or $200 (for two or more children) of their monthly child support, while the government keeps the rest. When noncustodial parents cannot afford to pay, this debt grows rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. This bill would improve this existing Debt Reduction Program and ensure statewide uniformity in the program, as required in Family Code Sec. 17560, by:

1. requiring publicly available, statewide standards that can be enforced through Department of Child Support Service's (DCSS) existing complaint resolution process; and
2. reporting requirements to evaluate the uniformity and effectiveness of the program.

The bill would also improve access and remove barriers to the program by:

• 1. requiring all local child support agencies (LCSAs) to post the application to the program on their website; have a designated phone number or email for the debt reduction program; and send a notice to parents who are potentially eligible;
  2. requiring LCSAs to act on applications within set time periods; and
  3. requiring LCSAs to provide repayment options to applicants based on statewide eligibility and repayment standards (removing the requirement that applicants make an "offer," which has discouraged participation).

Reducing the harm caused by government-owed child support debt is also a racial justice issue. The policy of requiring families who receive public assistance to reimburse the government stems from racist stereotypes about Black parents and furthers a legacy of extracting wealth from communities of color. In California, recent data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019).

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, likely minor, absorbable costs to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for local child support agencies (LCSAs). To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. (General Fund)

Likely significant costs LCSAs to implement this bill's procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. A significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state. (federal Title IV-D funds, county funds, General Fund)

The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for the compromise of arrears program (COAP) are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. COAP focuses on case participants that have the ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections may decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. Government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

VOTES

ASM JUDICIARY: 10-2-0

YES: Kalra, Lee, Bryan, Connolly, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

NO: Macedo, Dixon

ASM HUMAN SERVICES: 5-0-2

YES: Lee, Calderon, Elhawary, Blanca Rubio, Ahrens

ABS, ABST OR NV: Castillo, Tangipa

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

ASSEMBLY FLOOR: 58-17-5

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Hoover, Johnson, Lackey, Macedo, Patterson, Sanchez, Tangipa, Wallis

ABS, ABST OR NV: Alanis, Castillo, Muratsuchi, Celeste Rodriguez, Ta

SENATE FLOOR: 30-10-0

YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener

NO: Alvarado-Gil, Choi, Dahle, Grove, Jones, Niello, Ochoa Bogh, Seyarto, Strickland, Valladares

ASSEMBLY FLOOR: 59-13-7

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Davies, DeMaio, Dixon, Ellis, Flora, Hadwick, Hoover, Johnson, Macedo, Patterson, Sanchez, Tangipa, Wallis

ABS, ABST OR NV: Alanis, Castillo, Chen, Jeff Gonzalez, Lackey, McKinnor, Ta

UPDATED

VERSION: August 27, 2026

CONSULTANT: Manuela Boucher / JUD. / (916) 319-2334 FN: 0004580

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2395

Author:(Sharp-Collins)

As Amended Ver:June 11, 2026

Majority vote

SUMMARY

Establishes procedures for accepting and responding to applications to the compromise of arrears program.

Major Provisions

1. Authorizes, rather than requires, an offer in compromise extended under the statewide compromise of arrears program to an obligor who owes current child support to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
2. Authorizes the director's designee to determine that it is in the best interest of the state not to rescind an offer in compromise entered into under the statewide compromise of arrears program (COAP).
3. Authorizes the director to delegate to the administrator of a local child support agency (LCSA) authority to compromise an amount of child support arrears up to ten thousand dollars, increased from five thousand dollars.
4. Strikes the provision making a determination by the administrator, director or the director's designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the complaint review process of Chapter 5 of Division 17, or judicial review.
5. Requires any program established and operated by the department or delegated to the administrator of a local child support agency to be subject to specified requirements in order to ensure that the compromise of arrears program operates uniformly throughout the state, including all of the following:
   1. No later than January 1, 2028, the department, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this section, which must include uniform notice requirements and procedures, including timeframes for notice and procedures to ensure applications are processed in a timely manner and that the total time in between the initial application and final determination is no more than 180 days.
   2. The department shall create uniform application forms and eligibility and repayment standards and mandatory repayment agreement, to be used by local child support agencies.
   3. The department shall establish reporting requirements regarding their implementation of this section and Section 17560 to allow the department to evaluate the uniformity and effectiveness of the program.

Senate Amendments

Clarify, recast, and streamline provisions and delay implementation until July 1, 2027.

COMMENTS

When families apply for CalWORKs – California's TANF program – they are required to assign to the county their rights to any child support owed during the period they receive assistance and to cooperate with the child support program in enforcement efforts. As of 2022, the first $100 of a child support order collected for one child or $200 for two or more children is passed on by the state to the custodial parent each month. This amount is referred to as "pass-through" support. The remaining amount collected is retained by the state and distributed between the county, state, and repaid to the federal government. Once a family leaves assistance (then referred to as "formerly assisted"), the family is paid the current support and any arrears owed them first and the government recoups what is owed to them – the amount of support due when the family was on assistance, up to the amount of assistance paid to the family – after the family is fully paid. In no event can the government retain more than what was paid out in assistance. Recent changes in department policy have allowed greater pass-through amounts for formerly assisted families. (For more information on state arrears and pass-through, see: https://lao.ca.gov/Publications/Report/4861.)

Recognizing the significant amount of arrears owed to the state as a result of CalWORKS participation, and the exacerbating effect those arrears were likely to have on low-income families, the Legislature enacted the compromise of arrears program (COAP). Under COAP, an eligible obligor can apply to have up to $5,000 of their debt forgiven, subject to an agreement between the obligor and the department. The COAP program can be found at Family Code Section 17560.

This bill seeks to create consistent application of the state's COAP program by implementing standard processing and response timelines, a mechanism for administrative review, and otherwise standardizes the COAP procedure for applicants across the state.

Additionally, the bill makes a number of changes to existing Family Code Section 17560. Under the statute's current provisions, any agreement to compromise on an obligor's arrears must include a requirement that the obligor be up to date with any current child support order. This bill changes that to a permissive standard, and allows an LCSA to enter into an agreement with an obligor who is not current with their child support order.

The bill also increases the statutory authorization for the amount of arrears an LCSA can agree to compromise from $5,000 to $10,000. Considering this amount has been stagnant for over 20 years, this increase seems reasonable.

Finally, the bill strikes an existing provision in Family Code Section 17560 that makes any decision by the LCSA or department that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject either to the LCSA's complaint process required by Family Code Section 17800 or to judicial review. The bill then grants applicants the right to avail themselves of the complaint process.

According to the Author

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future. Existing law requires that the COAP program "operate uniformly across California." (Family Code Section 17560 (a).) While the DCSS has an internal policy manual that provides some guidance on how LCSAs should manage individual applications, there are otherwise no uniform procedures. The department's policy manual is not available online, but can be obtained upon request via email at the email listed at this website: https://dcss.ca.gov/policies/.

Arguments in Support

This bill is sponsored by the Western Center on Law and Poverty. It is supported by a number of low-income legal services and restorative justice organizations. In support of the bill the sponsors submit:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Families receiving CalWORKs generally only receive $100 (for one child) or $200 (for two or more children) of their monthly child support, while the government keeps the rest. When noncustodial parents cannot afford to pay, this debt grows rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. This bill would improve this existing Debt Reduction Program and ensure statewide uniformity in the program, as required in Family Code Sec. 17560, by:

1. requiring publicly available, statewide standards that can be enforced through Department of Child Support Service's (DCSS) existing complaint resolution process; and
2. reporting requirements to evaluate the uniformity and effectiveness of the program.

The bill would also improve access and remove barriers to the program by:

• 1. requiring all local child support agencies (LCSAs) to post the application to the program on their website; have a designated phone number or email for the debt reduction program; and send a notice to parents who are potentially eligible;
  2. requiring LCSAs to act on applications within set time periods; and
  3. requiring LCSAs to provide repayment options to applicants based on statewide eligibility and repayment standards (removing the requirement that applicants make an "offer," which has discouraged participation).

Reducing the harm caused by government-owed child support debt is also a racial justice issue. The policy of requiring families who receive public assistance to reimburse the government stems from racist stereotypes about Black parents and furthers a legacy of extracting wealth from communities of color. In California, recent data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019).

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, likely minor, absorbable costs to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for local child support agencies (LCSAs). To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. (General Fund)

Likely significant costs LCSAs to implement this bill's procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. A significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state. (federal Title IV-D funds, county funds, General Fund)

The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for the compromise of arrears program (COAP) are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. COAP focuses on case participants that have the ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections may decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. Government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

VOTES:

ASM JUDICIARY: 10-2-0

YES: Kalra, Lee, Bryan, Connolly, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

NO: Macedo, Dixon

ASM HUMAN SERVICES: 5-0-2

YES: Lee, Calderon, Elhawary, Blanca Rubio, Ahrens

ABS, ABST OR NV: Castillo, Tangipa

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

ASSEMBLY FLOOR: 58-17-5

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Hoover, Johnson, Lackey, Macedo, Patterson, Sanchez, Tangipa, Wallis

ABS, ABST OR NV: Alanis, Castillo, Muratsuchi, Celeste Rodriguez, Ta

SENATE FLOOR: 30-10-0

YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener

NO: Alvarado-Gil, Choi, Dahle, Grove, Jones, Niello, Ochoa Bogh, Seyarto, Strickland, Valladares

UPDATED

VERSION: June 11, 2026

CONSULTANT: Manuela Boucher-de la Cadena / JUD. / (916) 319-2334 FN: 0003894

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2395

Author:(Sharp-Collins)

As Amended Ver:June 11, 2026

Majority vote

SUMMARY

Establishes procedures for accepting and responding to applications to the compromise of arrears program.

Major Provisions

1. Authorizes, rather than requires, an offer in compromise extended under the statewide compromise of arrears program to an obligor who owes current child support to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
2. Authorizes the director's designee to determine that it is in the best interest of the state not to rescind an offer in compromise entered into under the statewide compromise of arrears program (COAP).
3. Authorizes the director to delegate to the administrator of a local child support agency (LCSA) authority to compromise an amount of child support arrears up to ten thousand dollars, increased from five thousand dollars.
4. Strikes the provision making a determination by the administrator, director or the director's designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the complaint review process of Chapter 5 of Division 17, or judicial review.
5. Requires any program established and operated by the department or delegated to the administrator of a local child support agency to be subject to specified requirements in order to ensure that the compromise of arrears program operates uniformly throughout the state, including all of the following:
   1. No later than January 1, 2028, the department, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this section, which must include uniform notice requirements and procedures, including timeframes for notice and procedures to ensure applications are processed in a timely manner and that the total time in between the initial application and final determination is no more than 180 days.
   2. The department shall create uniform application forms and eligibility and repayment standards and mandatory repayment agreement, to be used by local child support agencies.
   3. The department shall establish reporting requirements regarding their implementation of this section and Section 17560 to allow the department to evaluate the uniformity and effectiveness of the program.

Senate Amendments

Clarify, recast, and streamline provisions and delay implementation until July 1, 2027.

COMMENTS

When families apply for CalWORKs – California's TANF program – they are required to assign to the county their rights to any child support owed during the period they receive assistance and to cooperate with the child support program in enforcement efforts. As of 2022, the first $100 of a child support order collected for one child or $200 for two or more children is passed on by the state to the custodial parent each month. This amount is referred to as "pass-through" support. The remaining amount collected is retained by the state and distributed between the county, state, and repaid to the federal government. Once a family leaves assistance (then referred to as "formerly assisted"), the family is paid the current support and any arrears owed them first and the government recoups what is owed to them – the amount of support due when the family was on assistance, up to the amount of assistance paid to the family – after the family is fully paid. In no event can the government retain more than what was paid out in assistance. Recent changes in department policy have allowed greater pass-through amounts for formerly assisted families. (For more information on state arrears and pass-through, see: https://lao.ca.gov/Publications/Report/4861.)

Recognizing the significant amount of arrears owed to the state as a result of CalWORKS participation, and the exacerbating effect those arrears were likely to have on low-income families, the Legislature enacted the compromise of arrears program (COAP). Under COAP, an eligible obligor can apply to have up to $5,000 of their debt forgiven, subject to an agreement between the obligor and the department. The COAP program can be found at Family Code Section 17560.

This bill seeks to create consistent application of the state's COAP program by implementing standard processing and response timelines, a mechanism for administrative review, and otherwise standardizes the COAP procedure for applicants across the state.

Additionally, the bill makes a number of changes to existing Family Code Section 17560. Under the statute's current provisions, any agreement to compromise on an obligor's arrears must include a requirement that the obligor be up to date with any current child support order. This bill changes that to a permissive standard, and allows an LCSA to enter into an agreement with an obligor who is not current with their child support order.

The bill also increases the statutory authorization for the amount of arrears an LCSA can agree to compromise from $5,000 to $10,000. Considering this amount has been stagnant for over 20 years, this increase seems reasonable.

Finally, the bill strikes an existing provision in Family Code Section 17560 that makes any decision by the LCSA or department that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject either to the LCSA's complaint process required by Family Code Section 17800 or to judicial review. The bill then grants applicants the right to avail themselves of the complaint process.

According to the Author

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future. Existing law requires that the COAP program "operate uniformly across California." (Family Code Section 17560 (a).) While the DCSS has an internal policy manual that provides some guidance on how LCSAs should manage individual applications, there are otherwise no uniform procedures. The department's policy manual is not available online, but can be obtained upon request via email at the email listed at this website: https://dcss.ca.gov/policies/.

Arguments in Support

This bill is sponsored by the Western Center on Law and Poverty. It is supported by a number of low-income legal services and restorative justice organizations. In support of the bill the sponsors submit:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Families receiving CalWORKs generally only receive $100 (for one child) or $200 (for two or more children) of their monthly child support, while the government keeps the rest. When noncustodial parents cannot afford to pay, this debt grows rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. This bill would improve this existing Debt Reduction Program and ensure statewide uniformity in the program, as required in Family Code Sec. 17560, by:

1. requiring publicly available, statewide standards that can be enforced through Department of Child Support Service's (DCSS) existing complaint resolution process; and
2. reporting requirements to evaluate the uniformity and effectiveness of the program.

The bill would also improve access and remove barriers to the program by:

• 1. requiring all local child support agencies (LCSAs) to post the application to the program on their website; have a designated phone number or email for the debt reduction program; and send a notice to parents who are potentially eligible;
  2. requiring LCSAs to act on applications within set time periods; and
  3. requiring LCSAs to provide repayment options to applicants based on statewide eligibility and repayment standards (removing the requirement that applicants make an "offer," which has discouraged participation).

Reducing the harm caused by government-owed child support debt is also a racial justice issue. The policy of requiring families who receive public assistance to reimburse the government stems from racist stereotypes about Black parents and furthers a legacy of extracting wealth from communities of color. In California, recent data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019).

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, likely minor, absorbable costs to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for local child support agencies (LCSAs). To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. (General Fund)

Likely significant costs LCSAs to implement this bill's procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. A significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state. (federal Title IV-D funds, county funds, General Fund)

The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for the compromise of arrears program (COAP) are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. COAP focuses on case participants that have the ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections may decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. Government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

VOTES:

ASM JUDICIARY: 10-2-0

YES: Kalra, Lee, Bryan, Connolly, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

NO: Macedo, Dixon

ASM HUMAN SERVICES: 5-0-2

YES: Lee, Calderon, Elhawary, Blanca Rubio, Ahrens

ABS, ABST OR NV: Castillo, Tangipa

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

ASSEMBLY FLOOR: 58-17-5

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Hoover, Johnson, Lackey, Macedo, Patterson, Sanchez, Tangipa, Wallis

ABS, ABST OR NV: Alanis, Castillo, Muratsuchi, Celeste Rodriguez, Ta

UPDATED

VERSION: June 11, 2026

CONSULTANT: Manuela Boucher-de la Cadena / JUD. / (916) 319-2334 FN: 0003894

 THIRD READING  

Bill No: AB 2395

Author: Sharp-Collins (D)

Amended: 6/11/26 in Senate

Vote: 21

SENATE JUDICIARY COMMITTEE: 11-1, 6/23/26

AYES: Umberg, Allen, Ashby, Caballero, Durazo, Laird, Reyes, Stern, Wahab, Weber Pierson, Wiener

NOES: Niello

NO VOTE RECORDED: Valladares

SENATE HUMAN SERVICES COMMITTEE: 4-1, 6/29/26

AYES: Becker, Laird, Pérez, Weber Pierson

NOES: Ochoa Bogh

SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/13/26

AYES: Cervantes, Cabaldon, Grayson, Richardson, Wahab

NOES: Seyarto, Dahle

ASSEMBLY FLOOR: 58-17, 5/26/26 - See last page for vote

SUBJECT: Child support: compromise of arrears program

SOURCE: Truth and Justice in Child Support Coalition

DIGEST:

This bill modifies the statewide Debt Collection Program through which a parent can make an offer in compromise for child support and interest owed to the state, and requires the Department of Child Support Services (DCSS) to implement regulations to ensure that the Debt Collection Program is uniformly applied, as specified.

ANALYSIS:

Existing law:

1. Provides that interest accrues at the rate of 10 percent per annum on the principal of a money judgment remaining unsatisfied, except for specified judgments arising from medical expenses or consumer debts. (Code of Civil Procedure (Civ. Proc.), § 685.010.)
2. Requires, as a condition of CalWORKs eligibility, an applicant to assign to the state their rights to any child support owed during the receipt of benefits, as provided, in an amount not to exceed the total cash assistance provided to the family. (Welfare & Institutions (Welf. & Inst.) Code, § 11477.)
3. Requires, notwithstanding 2), that the first $100 of any amount of child support collected in a month for a family with one child, or the first $200 for a family with two or more children, in payment of the support obligation shall be paid to the recipient of aid under 2), and shall not be considered income or resources of the recipient family, and shall not be deducted from the amount of aid to which the family would otherwise be eligible. (Family (Fam.) Code, § 17504.)
4. Provides that, if a support obligee is a former recipient of CalWORKs aid, any amount of support collected in a month in payment of the assigned support obligation shall be passed through to the obligee. (Fam. Code, § 17504.2.)
5. Requires DCSS to establish and operate a statewide Debt Reduction Program pursuant to which DCSS may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid. (Fam. Code, § 17560(a).)
6. Requires the Debt Reduction Program to operate uniformly across California and take into consideration the needs of the children subject to the child support order and the obligor’s ability to pay. (Fam. Code, § 17560(a).)
7. Provides that, if an obligor owes current child support, any offer in compromise pursuant to 5) shall require the obligor to be in compliance with the current order for a set period of time before any arrears and interest accrued thereon may be compromised. (Fam. Code, § 17560(b).)
8. Requires, absent a finding of good cause or a determination by the Director of DCSS that it is in the best interest of the state to do otherwise, that any offer of compromise entered into pursuant to 5) be rescinded, all compromised liabilities be reestablished notwithstanding any statutes of limitations that otherwise may be applicable, and no portion of the amount offered in compromise be refunded, if DCSS or a local child support agency (LCSA) determines that the obligor made misrepresentations in connection with the offer in compromise or the obligor fails to comply with the terms and conditions of the offer in compromise. (Fam. Code, § 17560(c).)
9. Requires the Director of DCSS (Director) to delegate to the administrator of an LCSA the authority to compromise an amount of child support arrears up to $5,000, and permits the Director to delegate additional authority to compromise up to an amount determined by the Director to support the effective administration of the Debt Reduction Program. (Fam. Code, § 17560(e).)
10. Requires, for an amount to be compromised through the Debt Reduction Program, all of the following conditions be satisfied:
    1. The administrator, the Director, or the Director’s designee determines that acceptance of an offer in compromise is in the best interest of the state and that the compromise amount equals or exceeds what the state can expect to collect for reimbursement of aid, based on the obligor’s ability to pay; acceptance shall be deemed to be in the best interest of the state, absence a finding of good cause to the contrary, with respect to arrears that accrued as a result of a decrease in income when the obligor was a reservist or member of the National Guard and was activated to U.S. military service, as specified.
    2. Any other terms and conditions that the Director establishes, which may include paying current support in a timely manner, making lump-sum payments, and paying arrears in exchange for compromise of interest owed.
    3. The obligor provides evidence of income and assets, including wage stubs, tax returns, and bank statements as necessary to establish that the amount in the compromise is the most that can be expected to be paid or collected from the obligor; that the obligor does not have reasonable prospects of increasing their income or assets; and that the obligor has not withheld payments of child support in anticipation of the Debt Reduction Program. (Fam. Code, § 17560(f).)
11. Provides that a determination by the administrator of an LCSA, Director, or Director’s designee that it would not be in the best interest of the state to accept or rescind an offer in compromise is final and not subject to administrative or judicial review. (Fam. Code, § 17560(g).)
12. Requires each LCSA to establish a complaint resolution process, incorporating uniform forms and procedures specified by DCSS, for resolving all complaints received from custodial and noncustodial parents. (Fam. Code, § 17800.)
13. Provides that a custodial or noncustodial parent who is dissatisfied with the LCSA’s resolution of a complaint through the process in 16) shall be accorded an opportunity for a state hearing in specified circumstances, including where an application for support services has been denied or not acted upon within the required timeframe or child support collections have not been distributed or have been distributed incorrectly. (Fam. Code, § 17801.)

This bill:

1. Requires DCSS to consider, as a factor in its establishment and operation of the Debt Reduction Program, the impact of the full pass-through of child support for a child who was formerly a recipient of CalWORKs aid.
2. Permits, rather than requires, an offer in compromise pursuant to the Debt Reduction Program to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
3. Authorizes the Director to delegate to their designee the determination that it is in the best interest of the state not to rescind an offer of compromise, in the event the obligor does not comply with the terms of the compromise or concealed information in connection with the compromise.
4. Increases, from $5,000 to $10,000, the amount of child support arrears which the administrator of an LCSA has the authority to compromise without additional action from the Director.
5. Deletes the provision stating that a determination that it is not in the best interest of the state to accept or rescind an offer in compromise is final and not subject to administrative or judicial review.
6. Provides that any Debt Reduction Program established by DCSS or delegated to the administrator of an LCSA shall be subject to the requirements of 7)-12), to ensure that the Debt Reduction Program operates uniformly throughout the state.
7. Requires DCSS, no later than January 1, 2028, in consultation with stakeholders, to promulgate regulations to implement the requirements of this bill; DCSS may, in consultation with stakeholders, implement the bill through a child support services letter or similar instruction until regulations are adopted.
8. Requires DCSS to create a uniform Debt Reduction Program application form, as specified.
9. Requires the regulations adopted by DCSS pursuant to 7) to include all of the following:
   1. Uniform notice procedures, including timeframes for the notices and procedures that ensure applications are processed in a timely manner and that the total time between when an applicant submits an application and receives a final determination is no more than 180 days.
   2. Requirements for providing public information about the program, as specified.
10. Requires DCSS to establish uniform eligibility and repayment standards, including factors to be considered when deviating from those standards.
11. Requires DCSS to create uniform, mandatory Debt Reduction Program repayment agreement, subject to the following:
    1. The applicant shall receive a full and complete copy of the repayment agreement to review before signing.
    2. DCSS shall establish uniform standards for modification and rescission of repayment agreements.
12. Provides that 6)-11) shall be operative on July 1, 2027.

Comments

“Child support” presumably calls to mind amounts paid by a parent to support their child. But a significant amount of court-ordered child support never reaches the child. When a child receives certain public assistance benefits, their custodial parent is required to assign their rights to the child support to the state or county as “reimbursement” for the benefits; the family is entitled to keep only a “pass through” amount of $100 for a single-child family and $200 for a family of two or more children. This system was put in place pursuant to a federal framework that puts certain conditions on the receipt of federal funds for certain assistance programs, though federal rules now permit a state to pass through the whole amount. California also has the highest interest rate on past-due child support in the country, at 10 percent per year. The result is that Californians owe close to $6 billion in child support to the state. For many parents, the accrual of 10 percent interest every year means they will never be able to get above water, even as their children have long grown into adults.

California currently has a Debt Collection Program, implemented by DCSS, through which local child support agencies (LCSAs), the director of DCSS, or their designee can accept an offer in compromise for child support debt owed by the parent to the government. Although the Debt Collection Program is supposed to be implemented uniformly statewide, the sponsors of the bill report that implementation is inconsistent across counties, resulting in eligible parents being unaware that they may be able to reach an agreement to pay off their outstanding debt to the state.

This bill is intended to strengthen the Debt Collection Program and ensure that LCSAs are administering the program uniformly. To ensure uniformity, this bill requires DCSS, by January 1, 2028, to adopt regulations for the Debt Collection Program, including creating mandatory forms, timelines for responses, and uniform standards for modifications and rescissions of offers in compromise. This bill also makes changes to the existing Debt Collection Program to encourage parents to participate, including expanding the amount of arrears an LCSA may compromise and permitting parents to use the existing LCSA complaint process if they disagree with an LCSA’s decision.

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

According to the Senate Appropriations Committee, the fiscal effect is as follows:

Likely minor, absorbable costs to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for local child support agencies (LCSAs). To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. (General Fund)

Likely significant costs LCSAs to implement this bill’s procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. A significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state. (federal Title IV-D funds, county funds, General Fund)

The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for the compromise of arrears program (COAP) are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. COAP focuses on case participants that have the ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections may decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. Government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

SUPPORT: (Verified 8/13/26)

Truth and Justice in Child Support Coalition (Source)

Coalition of California Welfare Rights Organizations
Community Legal Services in East Palo Alto

Courage California
End Child Poverty California Powered by Grace

Family Reunification, Equity, and Empowerment Project
Legal Services for Prisoners With Children
Rubicon Programs
University of the Pacific McGeorge School of Law Homeless Advocacy Clinic
Western Center on Law & Poverty
Young Community Developers

OPPOSITION: (Verified 8/13/26)

None received

ARGUMENTS IN SUPPORT: According to a coalition of this bill’s supporters, including the sponsor coalition:

California has an existing program—called the Debt Reduction Program—to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. AB 2395 seeks to provide statewide uniformity in the program, as required in Family Code § 17560. This bill would require the Department of Child Support Services to promulgate statewide regulations, create standard forms and procedures, and provide due process rights to applicants. AB 2395 would also update the program’s statutory mandate to ensure the new regulations account for recent changes in state law that now pass along some government-owed child support collections to the custodial parent.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019). It is also a racial justice issue: California data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

ASSEMBLY FLOOR: 58-17, 5/26/26

AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Hoover, Johnson, Lackey, Macedo, Patterson, Sanchez, Tangipa, Wallis

NO VOTE RECORDED: Alanis, Castillo, Muratsuchi, Celeste Rodriguez, Ta

Prepared by: Allison Whitt Meredith / JUD. / (916) 651-4113

8/14/26 13:59:56

**** END ****

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 2395 (Sharp-Collins) - Child support: compromise of arrears program

Bill Summary:

AB 2395 would modify the Department of Child Support Services (DCSS) Debt Collection Program (DCP) through which a parent may make an offer in compromise for child support and interest owed to the state. DCSS would be required to promulgate regulations to ensure the DCP is uniformly applied.

Fiscal Impact:

Likely minor, absorbable costs to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for local child support agencies (LCSAs). To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. (General Fund)

Likely significant costs LCSAs to implement the bill’s procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. A significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state. (federal Title IV-D funds, county funds, General Fund)

The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for the compromise of arrears program (COAP) are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. COAP focuses on case participants that have the ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections may decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. Government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

Background:

California’s Title IV-D child support program, administered by DCSS through 47 LCSAs, serves one of the largest caseloads in the nation. The accumulation of child support arrears, which are past-due support obligations that have gone unpaid, accrues at a 10 percent interest rate and often grows beyond what low-income obligors can realistically repay. Child support arrears take two principal forms: family-owed arrears, which represent payments due directly to the custodial parent or caregiver, and government-owed arrears, which are debts that accrue when a custodial parent receives CalWORKs assistance and, as a condition of aid, assigns their right to child support to the state thus, support that would otherwise flow to the family flows to the state to offset cash assistance paid.

Related Legislation:

AB 135 (Committee on Budget), Chapter 85, Statutes of 2021, among other things, mandated DCSS to identify and to eliminate state-assigned arrears deemed “uncollectible.”

AB 1092 (Jones-Sawyer), of the 2019-20 Legislative Session, would have prohibited DCSS or the LCSA from collecting interest that accrues on or after January 1, 2022, on the principal amount assigned to the county. The Governor vetoed the bill, citing cost concerns, but directed DCSS to review COAP and consider any needed changes to address uncollectable debts and increase collections.

SENATE COMMITTEE ON HUMAN SERVICES

Senator Becker, Chair

2025 - 2026 Regular

Subject: Child support: compromise of arrears program

SUMMARY

This bill creates a process for the Department of Child Support Services (DCSS) to create uniform application forms, regulations, and uniform eligibility and repayment standards to ensure the compromise of arrears programs operate uniformly throughout the state.

ABSTRACT

Existing Law:

1. Establishes a statewide Compromise of Arrears Program under which DCSS may accept offers in compromise of child support arrears and interest owed to the state for reimbursement of aid paid under the California Work Opportunity and Responsibility to Kids (CalWORKs) program, requiring the program to operate uniformly across California and take into consideration the needs of the children subject to the support order and the obligor’s ability to pay. (Family Code [FAM] 17560(a))
2. Requires an offer in compromise to include a provision mandating that an obligor who owes current child support be in compliance with the current support order for a set period of time before any arrears and accrued interest may be compromised. (FAM 17560(b))
3. Requires rescission of any offer in compromise, reestablishment of all compromised liabilities notwithstanding any applicable statute of limitations, and forfeiture of any amount offered, absent a finding of good cause, if the obligor concealed income, assets, or property, made false statements, or failed to comply with the terms of the agreement. (FAM 17560(c))
4. Prohibits the administrator, director, or director’s designee from accepting an offer in compromise of child support arrears owed directly to the custodial party without that party’s written consent and participation in the agreement, and requires the custodial party to receive a clear written explanation of their rights before consenting. (FAM 17560(d); 17406(k))
5. Delegates to the administrator of a Local Child Support Agency (LCSA), the authority to compromise child support arrears up to $5,000, with authority for the director to delegate additional compromise authority to support effective program administration. (FAM 17560(e))
6. Conditions compromise of arrears on a determination by the administrator, director, or director’s designee that acceptance is in the best interest of the state and that the compromise amount equals or exceeds what the state can expect to collect in the absence of the compromise based on the obligor’s ability to pay. (FAM 17560(f)(1)(A))
7. Deems acceptance of a compromise to be in the best interest of the state, absent good cause to the contrary, for arrears accrued when a reservist or National Guard member was activated to military service and failed to seek a modification to reflect reduced income, and directs DCSS to establish rules compromising at minimum the amount that would not have accrued had the order been modified. (FAM 17560(f)(1)(B))
8. Requires an obligor to provide evidence of income and assets, including wage stubs, tax returns, and bank statements, sufficient to establish that the offer represents the most that can be collected from present assets or income, that the obligor has no reasonable prospects of satisfying a greater amount within a reasonable time, and that the obligor did not withhold payment in anticipation of the program. (FAM 17560(f)(3))
9. Permits a determination by the administrator, director, or director’s designee that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject to the complaint resolution process or judicial review. (FAM 17560(g))
10. Requires any offer in compromise entered into under the Compromise of Arrears Program to be filed with the appropriate court, and requires the LCSA to notify the court if the compromise is rescinded. (FAM 17560(h))
11. Requires any compromise of child support arrears to maximize to the greatest extent possible the state’s share of federal performance incentives under the Child Support Performance and Incentive Act of 1998, and to comply with federal law. (FAM 17560(i))
12. Requires each LCSA to maintain a complaint resolution process, with DCSS specifying by regulation uniform forms and procedures for resolving all complaints from custodial and noncustodial parents, requiring written resolution within 30 days of receipt, extendable by an additional 30 days. (FAM 17800)

This Bill:

1. Increases from $5,000 to $10,000 the amount of child support arrears the local child support agency may compromise.
2. Provides that to ensure that the compromise of arrears program operates uniformly throughout the state, any program established and operated by DCSS or delegated to the administrator of a local child support agency shall be subject to specified requirements outlined below.
3. Provides that no later than January 1, 2028, DCSS, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this bill and the adopted program regulations, policies and procedures, and forms shall be available on DCSS’s website.
4. Requires DCSS to create uniform application forms, subject to the following:
   1. The application shall not require the applicant to make an offer of repayment.
   2. The application shall inform the applicant of their right to use the complaint resolution and state hearing process for any action or inaction on their application and shall indicate where applicants can find the forms and procedures for these processes.
5. Requires the regulations include the following:
   1. Uniform notice requirements and procedures, including, but not limited to, timeframes for the notices and procedures that ensure applications are processed in a timely manner and that the total time in between when an applicant submits an application and receives a final determination is no more than 180 days.
   2. Requirements for providing public information about the program, including, but not limited to, both of the following:
      1. DCSS shall include information about the program on its internet website, including, but not limited to, the text of all applicable regulations, program forms, procedures used in the program, and a designated telephone number or email address for individuals to contact about the compromise of arrears program. Each local child support agency shall also make, at a minimum, that same program information available on its internet website.
      2. DCSS or its delegee shall provide written notice once annually to all obligors whose administrative files meet standards indicating they may be eligible for debt reduction.
6. Requires DCSS to establish uniform eligibility and repayment standards, including factors to be considered when deviating from those standards.
7. Requires DCSS to create a uniform, mandatory repayment agreement, subject to the following:
   1. The applicant shall receive a full and complete copy of the repayment agreement to review before signing.
   2. DCSS shall establish uniform standards for modification and rescission of repayment agreements.
8. Requires DCSS to establish reporting requirements regarding the implementation of this section to evaluate the uniformity and effectiveness of the program.
9. Provides that these provisions shall become operative on July 1, 2027.

FISCAL IMPACT

According to the Assembly Appropriations Committee:

1. General Fund costs of an unknown but likely absorbable amount to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for LCSAs. To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. At the time this analysis was prepared, DCSS was unable to provide an estimated amount associated with that potential increased workload.
   
2. Workload costs of an unknown but potentially significant amount to LCSAs (federal Title IV-D funds and state and county General Fund) to implement the bill’s procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. DCSS could not quantity the potential workload at the time this analysis was prepared, but reports that a significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state.
   
3. The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for COAP are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. DCSS notes that the COAP program focuses on case participants that have an ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections would decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. DCSS further notes that government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing ‘Debt Reduction Program.’ Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future.”

Child Support and Public Assistance

When a custodial parent receiving child support applies for public assistance, such as CalWORKs, their child support is assigned to the government. Thereafter, when the non-custodial parent pays child support, they pay the money to the government, not to the custodial parent. Under California law, the custodial parent will receive $100 of the child support if they have one child, and $200 if they have two or more children. The rest of the child support payment goes to the federal, state and county governments for repayment of the public assistance received by the custodial parent.

If the non-custodial parent falls behind in their child support payments, the government imposes an interest rate of 10%, one of the highest interest rates for such debts in the country. As interest accrues on the debt, and arrears increase, if and when the non-custodial parent makes payments above the amount of the original court order, the payment goes first to the parent, then to the debt, and finally to the interest. This functionally means that very little of the interest is ever collected by the government. For example, if a custodial parent with one child has a child support order of $500 per month and applies for public benefits. The non-custodial parent initially makes $500 payments each month. The custodial parent only receives $100 each month from those payments. If the non-custodial parent misses payments, a 10 percent interest is added on that amount and it continues to accrue on the debt. Once the non-custodial parent begins making payments again, the custodial parent continues to only get $100, and the remaining $400 goes to the government to repay the public benefits the custodial parent is receiving. Even after the child turns 18 and there is no longer a child support order, interest is still accruing on the balance the non-custodial parent makes. This can last for decades with the non-custodial parent having their paycheck, veterans benefits, and even Supplemental Security Income garnished. The debt often lasts for decades solely because of the high interest rate being charged, pushing the non-custodial parent further into poverty. These parents are often very low income - the San Francisco Treasurer’s Office found the average noncustodial parent makes less than $15,000 a year and owes $39,000 to their children and the government for child support^[1]. This makes the debt, still accruing 10% interest, almost entirely uncollectable.

To help reduce the debt for these families, the DCSS administers the Debt Reduction Program (formerly known as the Compromise of Arrears Program) which offers qualifed parents with child support debt the opportunity to lower the arrears they owe the government. This reduction in debt is based on a calculation of income, assets, family size, and cost of living. This program does not forgive the entire debt, it does not reduce unpaid child support owed directly to the person receiving support, and it will not reduce spousal support arrears.

According to the sponsors, these programs do not run uniformly across the state, resulting in some individuals who qualify for the program being unable to enroll. This bill seeks to remedy that by requiring DCSS to develop uniform application forms and regulations so that the program runs uniformly throughout the state.

Related/Prior Legislation:

SB 618 (Rubio, 2023) would prohibit the DCSS or a local child support agency from collecting interest that has accrued on child support owed to the state or the county and would eliminate interest on child support owed or assigned to the state or the county going forward. This bill was held in the Senate Appropriations Committee.

AB 1686 (Bryan, Chapter 755, Statutes of 2022) establishes a presumption that, when a child is in foster care, requiring the parent or guardian to pay child support for the child is likely to impose a barrier to the family’s efforts to reunify.

AB 135 (Committee on Budget, Chapter 85, Statutes of 2021) mandated DCSS to identify and to eliminate state-assigned arrears deemed "uncollectible." Directed the state to cease collection of government-owed child support debt for obligors whose only source of income is Social Security, VA Disability Compensation, or the Cash Assistance Program for Immigrants.

COMMENTS

Child support owed to the government incurs interest at a rate of 10%. The original goal of this astronomical interest rate was to motivate noncustodial parents to pay child support. The reality in many situations is instead they rack up debt that far surpasses their ability to pay. The Compromise of Arrears Program, or Debt Reduction Program as it is more commonly referred to now, aimed to reduce the debt. It is important to note this program does not include the child support owed to the parent, this is solely the money owed to the government. The sponsors indicate this critical program is not working uniformly throughout the state. This bill seeks to fix that by creating uniform application forms, regulations, and uniform eligibility and repayment standards, ensuring parents throughout California have the same access to debt reduction.

PRIOR VOTES

POSITIONS

Support:

Coalition of California Welfare Rights Organizations (Sponsor)

End Child Poverty California Powered by Grace (Co-Sponsor)

Western Center on Law & Poverty (Co-Sponsor)
Community Legal Services in East Palo Alto
Legal Services for Prisoners With Children
Rubicon Programs
Truth and Justice in Child Support Coalition
Young Community Developers

Oppose:

None received

-- END --

1. https://calmatters.org/projects/california-keeps-millions-in-child-support-while-parents-drown-in-debt/ ↑

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2025-2026 Regular Session

Bill No: AB 2395 (Author:Sharp-Collins)

Version: June 11, 2026

Hearing Date: June 23, 2026

Fiscal: Yes

Urgency: No

Consultant: AWM

SUBJECT

Child support: compromise of arrears program

DIGEST

This bill modifies the statewide Debt Collection Program through which a parent can make an offer in compromise for child support and interest owed to the state, and requires the Department of Child Support Services (DCSS) to implement regulations to ensure that the Debt Collection Program is uniformly applied, as specified.

EXECUTIVE SUMMARY

“Child support” presumably calls to mind amounts paid by a parent to support their child. But a significant amount of court-ordered child support never reaches the child. When a child receives certain public assistance benefits, their custodial parent is required to assign their rights to the child support to the state or county as “reimbursement” for the benefits; the family is entitled to keep only a “pass through” amount of $100 for a single-child family and $200 for a family of two or more children. This system was put in place pursuant to a federal framework that puts certain conditions on the receipt of federal funds for certain assistance programs, though federal rules now permit a state to pass through the whole amount. California also has the highest interest rate on past-due child support in the country, at 10 percent per year. The result is that Californians owe close to $6 billion in child support to the state. For many parents, the accrual of 10 percent interest every year means they will never be able to get above water, even as their children have long grown into adults.

California currently has a Debt Collection Program, implemented by DCSS, through which local child support agencies (LCSAs), the director of DCSS, or their designee can accept an offer in compromise for child support debt owed by the parent to the government. Although the Debt Collection Program is supposed to be implemented uniformly statewide, the sponsors of the bill report that implementation is inconsistent across counties, resulting in eligible parents being unaware that they may be able to reach an agreement to pay off their outstanding debt to the state.

This bill is intended to strengthen the Debt Collection Program and ensure that LCSAs are administering the program uniformly. To ensure uniformity, the bill requires DCSS, by January 1, 2028, to adopt regulations for the Debt Collection Program, including creating mandatory forms, timelines for responses, and uniform standards for modifications and rescissions of offers in compromise. The bill also makes changes to the existing Debt Collection Program to encourage parents to participate, including expanding the amount of arrears an LCSA may compromise and permitting parents to use the existing LCSA complaint process if they disagree with an LCSA’s decision.

This bill is sponsored by the Truth and Justice in Child Support Coalition and is supported by the Coalition of California Welfare Rights Organizations, Community Legal Services in East Palo Alto, End Child Poverty California Powered by Grace, Legal Services for Prisoners With Children, Rubicon Programs, the University of the Pacific McGeorge School of Law Homeless Advocacy Clinic, Western Center on Law & Poverty, and Young Community Developers. The Committee has not received timely opposition to this bill. If this Committee passes this bill, it will be referred to the Senate Human Services Committee.

PROPOSED CHANGES TO THE LAW

Existing law:

1. Establishes a statewide uniform guideline for the calculation of child support ordered by the court, consistent with federal regulations for child support guidelines. (Fam. Code, div. 9, pt. 2, ch. 2, art. 2, §§ 4050 et seq.)
2. Establishes DCSS as the single organizational unit for the administration and management of California’s child support program, including compliance necessary for federal financial participation. (Fam. Code, § 17202.)
3. Requires every county to maintain an LCSA with the responsibility for promptly and effectively establishing, modifying, and enforcing child support obligations, as specified; and authorizes the LCSA to take appropriate action, including criminal action in cooperation with district attorneys, to establish, modify, and enforce child support orders and, where appropriate, spousal support if the child is receiving public assistance, as specified. (Fam. Code, § 17400(a).)
4. Requires an LCSA, provided that no reduction in aid or payment to a custodial parent would result, to cease enforcement of child support arrearages assigned to the state and other fees and costs owed to the state that DCSS or the LCSA has determined to be uncollectible, as specified. (Fam. Code, § 17400(b).)
5. Provides that interest accrues at the rate of 10 percent per annum on the principal of a money judgment remaining unsatisfied, except for specified judgments arising from medical expenses or consumer debts. (Code Civ. Proc., § 685.010.)
6. Establishes state benefits programs, including CalWORKS, some of which are administered in connection with, or pursuant to, federal benefits programs. (Welf. & Inst. Code, div. 9, pt. 3, §§ 11000 et seq.)
7. Requires, as a condition of CalWORKS eligibility, an applicant to assign to the state their rights to any child support owed during the receipt of benefits, as provided, in an amount not to exceed the total cash assistance provided to the family. (Welf. & Inst. Code, § 11477.)
8. Requires, notwithstanding 7), that the first $100 of any amount of child support collected in a month for a family with one child, or the first $200 for a family with two or more children, in payment of the support obligation shall be paid to the recipient of aid under 7), and shall not be considered income or resources of the recipient family, and shall not be deducted from the amount of aid to which the family would otherwise be eligible.
   1. The LCSA in each county must ensure that these payments are made to recipients.
   2. This provision does not apply to recipients of foster care payments, as defined. (Fam. Code, § 17504.)
9. Provides that, if a support obligee is a former recipient of CalWORKS aid, any amount of support collected in a month in payment of the assigned support obligation shall be passed through to the obligee, except for recipients of foster care payments, as defined. (Fam. Code, § 17504.2.)
10. Requires DCSS to establish and operate a statewide Debt Reduction Program pursuant to which DCSS may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to 7). (Fam. Code, § 17560(a).)
11. Requires the Debt Reduction Program to operate uniformly across California and take into consideration the needs of the children subject to the child support order and the obligor’s ability to pay. (Fam. Code, § 17560(a).)
12. Provides that, if an obligor owes current child support, any offer in compromise pursuant to 10) shall require the obligor to be in compliance with the current order for a set period of time before any arrears and interest accrued thereon may be compromised. (Fam. Code, § 17560(b).)
13. Requires, absent a finding of good cause or a determination by the Director of DCSS that it is in the best interest of the state to do otherwise, that any offer of compromise entered into pursuant to 10) be rescinded, all compromised liabilities be reestablished notwithstanding any statutes of limitations that otherwise may be applicable, and no portion of the amount offered in compromise be refunded, if either of the following occurs:
    1. DCSS or the LCSA determines that the obligor did any of the following acts regarding the offer in compromise:
       1. Concealed from DCSS or the LCSA any income, assets, or other property belonging to the obligor or any reasonably anticipated recipient of income, assets, or other property.
       2. Intentionally received, withheld, destroyed, mutilated, or falsified any information, document, or record, or intentionally made any false statement, relating to the financial conditions of the obligor.
    2. The obligor fails to comply with any of the terms and conditions of the offer in compromise. (Fam. Code, § 17560(c).)
14. Provides that neither DCSS nor the LCSA may accept an offer in compromise of any child support arrears owed directly to the custodial party unless that party consents to the offer in compromise in writing and participates in the agreement; prior to giving consent, the custodial party shall be provided with a clear written explanation of the rights with respect to child support arrears owed to the custodial party and the compromise thereof. (Fam. Code, § 17560(d).)
15. Requires the Director of DCSS (Director) to delegate to the administrator of an LCSA the authority to compromise an amount of child support arrears up to $5,000, and permits the Director to delegate additional authority to compromise up to an amount determined by the Director to support the effective administration of the Debt Reduction Program. (Fam. Code, § 17560(e).)
16. Requires, for an amount to be compromised through the Debt Reduction Program, all of the following conditions be satisfied:
    1. The administrator, the Director, or the Director’s designee determines that acceptance of an offer in compromise is in the best interest of the state and that the compromise amount equals or exceeds what the state can expect to collect for reimbursement of aid under 7), based on the obligor’s ability to pay; acceptance shall be deemed to be in the best interest of the state, absence a finding of good cause to the contrary, with respect to arrears that accrued as a result of a decrease in income when the obligor was a reservist or member of the National Guard and was activated to U.S. military service, as specified.
    2. Any other terms and conditions that the Director establishes, which may include paying current support in a timely manner, making lump-sum payments, and paying arrears in exchange for compromise of interest owed.
    3. The obligor provides evidence of income and assets, including wage stubs, tax returns, and bank statements as necessary to establish all of the following:
       1. That the amount set forth in compromise of arrears owed is the most that can be expected to be paid or collected from the obligor’s present assets or income.
       2. That the obligor does not have reasonable prospects of acquiring increased income or assets that would enable the obligor to satisfy a greater amount of the child support arrears than the amount offered, within a reasonable period of time.
       3. That the obligor has not withheld payments of child support in anticipation of the Debt Reduction Program. (Fam. Code, § 17560(f).)
17. Provides that a determination by the administrator of an LCSA, Director, or Director’s designee that it would not be in the best interest of the state to accept or rescind an offer in compromise is final and not subject to administrative or judicial review. (Fam. Code, § 17560(g).)
18. Requires each LCSA to establish a complaint resolution process, incorporating uniform forms and procedures specified by DCSS, for resolving all complaints received from custodial and noncustodial parents. (Fam. Code, § 17800.)
19. Provides that a custodial or noncustodial parent who is dissatisfied with the LCSA’s resolution of a complaint through the process in 18) shall be accorded an opportunity for a state hearing in specified circumstances, including where an application for support services has been denied or not acted upon within the required timeframe or child support collections have not been distributed or have been distributed incorrectly.
    1. The parent must exhaust the complaint resolution in 18) before requesting a hearing unless the LCSA has not submitted a written resolution of the complaint within the required timeframe.
    2. Requires that a hearing must be provided if the request is made within 90 days of receiving written notice of resolution from the LCSA.
    3. A child support determination that is subject to the jurisdiction of the superior court and that is required by law to be addressed by motion, order to show cause, or appeal shall not be subject to a state hearing.
    4. This state hearing process shall be implemented only to the extent that there is federal financial participation available, as specified in Title 42 of the United States Code. (Fam. Code, § 17801.)

This bill:

1. Requires DCSS to consider, as a factor in its establishment and operation of the Debt Reduction Program, the impact of the full pass-through of child support for a child who was formerly a recipient of CalWORKs aid.
2. Permits, rather than requires, an offer in compromise pursuant to the Debt Reduction Program to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
3. Authorizes the Director to delegate to their designee the determination that it is in the best interest of the state not to rescind an offer of compromise, in the event the obligor does not comply with the terms of the compromise or concealed information in connection with the compromise.
4. Increases, from $5,000 to $10,000, the amount of child support arrears which the administrator of an LCSA has the authority to compromise without additional action from the Director.
5. Deletes the provision stating that a determination that it is not in the best interest of the state to accept or rescind an offer in compromise is final and not subject to administrative or judicial review.
6. Provides that any Debt Reduction Program established by DCSS or delegated to the administrator of an LCSA shall be subject to the requirements of 7)-12), to ensure that the Debt Reduction Program operates uniformly throughout the state.
7. Requires DCSS, no later than January 1, 2028, in consultation with stakeholders, to promulgate regulations to implement the requirements of this bill; DCSS may, in consultation with stakeholders, implement the bill through a child support services letter or similar instruction until regulations are adopted.
8. Requires DCSS to create a uniform Debt Reduction Program application forms subject to the following:
   1. The application shall not require the applicant to make an offer of repayment.
   2. The application shall inform the applicant of their right to use the existing complaint resolution and state hearing process for any action or inaction on their application, and shall indicate where applicants can find the forms and procedures for these processes.
9. Requires the regulations adopted by DCSS pursuant to 7) to include all of the following:
   1. Uniform notice procedures, including timeframes for the notices and procedures that ensure applications are processed in a timely manner and that the total time between when an applicant submits an application and receives a final determination is no more than 180 days.
   2. Requirements for providing public information about the program, including both of the following:
      1. DCSS must include information about the program on its website, including the text of all applicable regulations, program forms, procedures used in the program, and a designated telephone number for the arrears program; additionally, each LSCA shall make, at a minimum, this program information available on its website.
      2. DCSS or its delegee shall provide written notice once annually to all obligors whose administrative files meet standards set by DCSS indicating that they may be eligible for debt reduction pursuant to the Debt Reduction Program.
10. Requires DCSS to establish uniform eligibility and repayment standards, including factors to be considered when deviating from those standards.
11. Requires DCSS to create uniform, mandatory Debt Reduction Program repayment agreement, subject to the following:
    1. The applicant shall receive a full and complete copy of the repayment agreement to review before signing.
    2. DCSS shall establish uniform standards for modification and rescission of repayment agreements.
12. Provides that 6)-11) shall be operative on July 1, 2027.

COMMENTS

1. Author’s comment

According to the author:

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future.

2. Background on child support, required assignment of child support, and child support arrears

Every parent has the duty to financially support their minor child.^[1] If a parent fails to provide that support, the child’s other parent, or the child through a guardian ad litem, may sue the parent for an order of support.^[2] Unless the court finds a legal basis for excusing the parent’s support obligation, the court will enter a support order in an amount calculated based on the statewide child support guidelines.^[3] Unpaid child support payments accrue interest at 10 percent per annum,^[4] the highest rate in the country.

If a custodial parent (i.e., the parent who has custody of the child) receiving court-ordered child support applies for CalWORKs, they are required to assign to the county their child support payments received while they are on benefits—up to the amount of aid received—and to cooperate with the LCSA in child support collection efforts.^[5] As of 2022, the county is now required to pass through the first $100 of support for a family with one child, or the first $200 of support for a family with two or more children, to the family.^[6] “Federal rules allow states to pass through up to the full amount of monthly child support payments received to currently assisted families,” but the state would have to pay for the passthrough amount that would otherwise have been returned to the federal government.^[7] If the noncustodial parent is in arrears while the family receives CalWORKs benefits, the government is entitled to the full amount of a late payment made while the family is still receiving benefits, as part of the CalWORKs benefits recoupment requirement.^[8] In 2024, the median income of a noncustodial parent paying support in a case with a child currently receiving public benefits was $21,782.^[9]

When a family stops receiving CalWORKs benefits, they resume receiving the full amount of the child support payment made by the custodial parent, plus any past due amounts, including arrears that otherwise would have been paid to the state while the family was receiving benefits.^[10] Up until 2024, however, if child support arrears arose while the family was receiving benefits, the noncustodial parent would continue to owe the government for the amounts that would have gone to the government while the family was receiving CalWORKs, even after the family stopped receiving benefits.^[11]

Because of laws commandeering child support payments to reimburse state benefits programs, California parents owed $5.8 billion in “child support” debt to the government in 2024.^[12] Over half of that debt—57 percent—is interest on past-due payments: California’s 10 percent annual interest rate makes it virtually impossible for low-income parents to catch up once they fall behind on child support payments.^[13] Keeping parents perpetually burdened by unpayable debts provides virtually no benefit to the state, while harming parents and, perversely, harming the parent-child relationship the state purports to be defending.^[14]

In recognition of the counterproductive nature of keeping parents saddled with uncollectable debt, DCSS is required to maintain a statewide Debt Reduction Program, through which DCSS or, in some cases, an LCSA may accept an offer in compromise of a support obligor’s state-owed child support arrears and interest.^[15] Although the Debt Reduction Program is intended to operate uniformly across the state, the author and supporters of the bill report that the Debt Reduction Program is inconsistently administered, leaving eligible candidates unaware that they may be able to reduce their debt.

3. This bill requires DCSS to take steps to ensure that the Debt Reduction Program is applied consistently across the state and made available to eligible parents

This bill seeks to create consistent application of the state’s Debt Reduction Program by implementing standard processing and response timelines, as well as a mechanism for administrative review of program decisions. To that end, the bill requires DCSS to do all of the following:

• By January 1, 2028, in consultation with stakeholders, promulgate regulations to implement uniform Debt Reduction Program policies and requirements, which must include uniform notice requirements and procedures, including timeframes for processing and responses that will ensure that an applicant will receive a final determination in no more than 180 days after submitting an application.
• Create uniform application forms for the Debt Reduction Program, which may not require the applicant to make an offer of repayment, and which must inform the applicant of their right to use the complaint resolution and hearing process that already exists for complaints about LCSAs.
• Notify, or task a delegee with notifying, support obligors who may be eligible for debt reduction of their eligibility, at least once annually.
• Establish uniform eligibility and repayment standards, including factors to be considered when deviating from those standards.
• Create a uniform, mandatory repayment agreement, and establish standards for modification and rescission of repayment agreements.

In addition to the above, this bill makes the Debt Reduction Program more accessible by doing the following:

• Eliminating the requirement that an offer in compromise require a support obligor be in compliance with the support order for a set period of time before their outstanding debt can be compromised; instead, the LCSA or DCSS may, but does not need to, include such a condition in the offer.
• Authorizes the Director to designate an agent who can determine whether it is in the best interest of the state not to rescind an offer in compromise in the event of certain events, rather than requiring the director to make the determination in every case.
• Increases the amount that an LCSA may compromise without an additional delegation of authority from DCSS, from $5,000 to $10,000.
• As noted above, permits a support obligor to utilize the existing LCSA complaint and state hearing process, to seek review of issues such as an LCSA’s decision to deny an offer or resolve concerns about the timeliness of a response. Under this process, the obligor must first submit their complaint to the LCSA within 90 days of the action complained of;^[16] if the parent is still dissatisfied with the LCSA’s resolution, the parent may seek an administrative hearing.^[17]

4. Arguments in support

According to a coalition of the bill’s supporters, including the sponsor coalition:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Historically, many of these child support orders were also based on “presumed income,” which resulted in orders that were unaffordable to low-income parents because they overstated the amount they were able to earn. When noncustodial parents could not afford to pay, this debt grew rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt, $4.5 billion of which is interest.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program—called the Debt Reduction Program—to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. AB 2395 seeks to provide statewide uniformity in the program, as required in Family Code § 17560. The bill would require the Department of Child Support Services to promulgate statewide regulations, create standard forms and procedures, and provide due process rights to applicants. AB 2395 would also update the program’s statutory mandate to ensure the new regulations account for recent changes in state law that now pass along some government-owed child support collections to the custodial parent.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019). It is also a racial justice issue: California data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

For these reasons we ask for your support of this bill.

SUPPORT

Truth and Justice in Child Support Coalition (sponsor)

Coalition of California Welfare Rights Organizations
Community Legal Services in East Palo Alto
End Child Poverty California Powered by Grace
Legal Services for Prisoners With Children
Rubicon Programs
University of the Pacific McGeorge School of Law Homeless Advocacy Clinic
Western Center on Law & Poverty
Young Community Developers

OPPOSITION

None received

RELATED LEGISLATION

Pending legislation:

AB 2195 (Celeste Rodriguez, 2026) prohibits the suspension of a license held by a child support obligor, on the basis of their back-due child support, if the obligor’s annual household income is at or below 70 percent of the median income in their county of residence. AB 2195 is pending before this Committee and is set to be heard on the same date as this bill.

AB 1643 (Nguyen, 2026) requires the court to order that child support payments be directed to the State Disbursement Unit in every case and requires that every court order for payment of child support be deemed an application for child support enforcement services unless the support obligee opts out. AB 1643 is pending before the Assembly Appropriations Committee.

Prior legislation:

SB 618 (Rubio, 2023) would have prohibited DCSS or an LCSA from collecting interest that has accrued on child support owed to the state or the county and eliminated interest on child support owed or assigned to the state or the county going forward. SB 618 died in the Senate Appropriations Committee.

SB 343 (Skinner, Ch. 213, Stats. 2023) modified the statewide uniform child support guideline and low-income adjustment, modified certain related provisions relating to childcare costs and other aspects of calculating support, and made changes to the procedures for court-ordered child support to bring California’s laws into conformity with federal requirements.

AB 1092 (Jones-Sawyer, 2019) was similar to SB 618 (Rubio, 2023) in that it would have eliminated interest on child support arrears assigned to the state or county, but also included a more expansive provision that would have limited the state’s ability to collect on all arrearages. Governor Newsom vetoed the bill, stating in his veto message that, while he “appreciate[d] the author’s concern that charging interest on past due child support arrears can lead to uncollectable debt and make it harder for families to escape poverty,” he could not support the bill because “it would lead to an estimated revenue loss of millions of dollars outside the budget process.”

PRIOR VOTES

Assembly Floor (Ayes 58, Noes 17)

Assembly Appropriations Committee (Ayes 11, Noes 2)

Assembly Human Services Committee (Ayes 5, Noes 0)

Assembly Judiciary Committee (Ayes 10, Noes 2)

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

1. Fam. Code, § 3900. ↑

2. Id., § 4000. ↑

3. Fam. Code, div. 9, pt. 2, ch. 2, art. 2, §§ 4050 et seq. ↑

4. Code Civ. Proc., § 685.010. ↑

5. Welf. & Inst. Code, § 11477. ↑

6. Fam. Code, § 17504. ↑

7. See Legislative Analyst’s Office, 2024-2025 Budget, Child Support (Feb. 27, 2024) https://lao.ca.gov/Publications/Report/4861 (link current as of June 18, 2026). ↑

8. Welf. & Inst. Code, § 11477. ↑

9. Johnson, Reassessing Child Support Cost Recovery in California: Evaluating Impacts on Families and Opportunities for Reform (Spring 2025) San Francisco Financial Justice Project, p. 11. ↑

10. Fam. Code, § 17504.2. ↑

11. See AB 207 (Committee on Budget, Ch. 573, Stats. 2022.) ↑

12. Johnson, supra, p. 5. ↑

13. Id. at pp. 5-6. ↑

14. Id. at pp. 8, 23-26. ↑

15. Fam. Code, § 17560. A Debt Reduction Program offer of compromise may include arrears owed directly to the custodial parent if the custodial parent participates in the agreement and consents, but the program does not default to incorporating these arrears. (Ibid.) ↑

16. Fam. Code. § 17800 ↑

17. Id., § 17801. ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 2395

Author:(Sharp-Collins)

As Introduced Ver:February 20, 2026

Majority vote

SUMMARY

Establishes procedures for accepting and responding to applications to the compromise of arrears program.

Major Provisions

1. Authorizes, rather than requires, an offer in compromise extended under the statewide compromise of arrears program to an obligor who owes current child support to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
2. Authorizes the director's designee to determine that it is in the best interest of the state not to rescind an offer in compromise entered into under the statewide compromise of arrears program (COAP).
3. Authorizes the director to delegate to the administrator of a local child support agency (LCSA) authority to compromise an amount of child support arrears up to ten thousand dollars, increased from five thousand dollars.
4. Strikes the provision making a determination by the administrator, director or the director's designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the complaint review process of Chapter 5 of Division 17, or judicial review.
5. Requires any program established and operated by the department or delegated to the administrator of a local child support agency to be subject to specified requirements in order to ensure that the compromise of arrears program operates uniformly throughout the state:
   1. No later than 180 days after the chapter date of the act that added this section, the department, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this section. Program regulations, policies and procedures, and forms adopted pursuant to this section shall be made available on the department’s internet website. Notwithstanding the Administrative Procedure Act, the department may implement and administer this section through a child support services letter or similar instruction until regulations are adopted;
   2. The department shall create uniform application forms, notice requirements and procedures, and eligibility and repayment standards, to be used by local child support agencies.
   3. The department shall establish reporting requirements for local child support agencies to submit on a regular basis regarding their implementation of this section and Section 17560 to allow the department to evaluate the uniformity and effectiveness of the program.

COMMENTS

When families apply for CalWORKs – California's TANF program – they are required to assign to the county their rights to any child support owed during the period they receive assistance and to cooperate with the child support program in enforcement efforts. As of 2022, the first $100 of a child support order collected for one child or $200 for two or more children is passed on by the state to the custodial parent each month. This amount is referred to as "pass-through" support. The remaining amount collected is retained by the state and distributed between the county, state, and repaid to the federal government. Once a family leaves assistance (then referred to as "formerly assisted"), the family is paid the current support and any arrears owed them first and the government recoups what is owed to them – the amount of support due when the family was on assistance, up to the amount of assistance paid to the family – after the family is fully paid. In no event can the government retain more than what was paid out in assistance. Recent changes in department policy have allowed greater pass-through amounts for formerly assisted families. (For more information on state arrears and pass-through, see: https://lao.ca.gov/Publications/Report/4861.)

Recognizing the significant amount of arrears owed to the state as a result of CalWORKS participation, and the exacerbating effect those arrears were likely to have on low-income families, the Legislature enacted the compromise of arrears program (COAP). Under COAP, an eligible obligor can apply to have up to $5,000 of their debt forgiven, subject to an agreement between the obligor and the department. The COAP program can be found at Family Code Section 17560.

This bill seeks to create consistent application of the state's COAP program by implementing standard processing and response timelines, as well as a mechanism for administrative review.

The bill requires the department to develop a uniform set of application forms for LCSAs to disseminate to COAP applicants. The forms must meet two elements: they may not solicit an offer of repayment from the applicant, and they must inform the applicant of their right to use the complaint resolution process currently in statute to review decisions by an LCSA or the department.

The bill also imposes the following summarized timeline: Within 30 days of receiving an application, an LCSA must review and notify the applicant if their application is incomplete, noting what information is yet to be submitted. Within 60 days of submitting a complete application, an LCSA is required to inform the applicant of their repayment options and allow an applicant the opportunity to submit additional information to attempt to obtain a lower repayment amount. Finally, the bill requires an LCSA to act on a complete application, whether to approve or deny it, within 90 days of the applicant's submission. The LCSA must then provide the basis of a denial of any application, as well as information about how to reapply or utilize the LCSA's complaint resolution process.

Additionally, the bill allows an applicant to immediately reapply if the application is withdrawn or denied, or a repayment agreement is rescinded. Further, existing department policy authorizes LCSAs to negotiate a lower repayment amount (or higher amount in compromise) than the amount that corresponds with the applicant's eligibility standards, so long as it is approved by the LCSA's Title IV-D director or their designee, based on consideration of a number possible factors. These factors include the obligor's anticipated outcome, anticipated collection absent a compromise, and individual hardship circumstances. This bill likewise authorizes LCSAs to agree to a lower repayment amount, although it incorporates a few more factors than those identified in the department's existing policy.

Additionally, the bill makes a number of changes to existing Family Code Section 17560. Under the statute's current provisions, any agreement to compromise on an obligor’s arrears must include a requirement that the obligor be up to date with any current child support order. This bill changes that to a permissive standard, and allows an LCSA to enter into an agreement with an obligor who is not current with their child support order.

The bill also increases the statutory authorization for the amount of arrears an LCSA can agree to compromise from $5,000 to $10,000. Considering this amount has been stagnant for over 20 years, this increase seems reasonable.

Finally, the bill strikes an existing provision in Family Code Section 17560 that makes any decision by the LCSA or department that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject either to the LCSA’s complaint process required by Family Code Section 17800 or to judicial review. The bill then grants applicants the right to avail themselves of the complaint process.

According to the Author

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future. Existing law requires that the COAP program "operate uniformly across California." (Family Code Section 17560 (a).) While the DCSS has an internal policy manual that provides some guidance on how LCSAs should manage individual applications, there are otherwise no uniform procedures. The department's policy manual is not available online, but can be obtained upon request via email at the email listed at this website: https://dcss.ca.gov/policies/.

Arguments in Support

This bill is sponsored by the Western Center on Law and Poverty. It is supported by a number of low-income legal services and restorative justice organizations. In support of the bill the sponsors submit:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Families receiving CalWORKs generally only receive $100 (for one child) or $200 (for two or more children) of their monthly child support, while the government keeps the rest. When noncustodial parents cannot afford to pay, this debt grows rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. This bill would improve this existing Debt Reduction Program and ensure statewide uniformity in the program, as required in Family Code Sec. 17560, by:

1. requiring publicly available, statewide standards that can be enforced through Department of Child Support Service's (DCSS) existing complaint resolution process; and
2. reporting requirements to evaluate the uniformity and effectiveness of the program.

The bill would also improve access and remove barriers to the program by:

• 1. requiring all local child support agencies (LCSAs) to post the application to the program on their website; have a designated phone number or email for the debt reduction program; and send a notice to parents who are potentially eligible;
  2. requiring LCSAs to act on applications within set time periods; and
  3. requiring LCSAs to provide repayment options to applicants based on statewide eligibility and repayment standards (removing the requirement that applicants make an "offer," which has discouraged participation).

Reducing the harm caused by government-owed child support debt is also a racial justice issue. The policy of requiring families who receive public assistance to reimburse the government stems from racist stereotypes about Black parents and furthers a legacy of extracting wealth from communities of color. In California, recent data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019).

Arguments in Opposition

This bill is opposed by the California Child Support Association (CalCSA). They submit:

With the implementation of child support arrears pass-through, unpaid child support that is collected may now be sent to the other parent. As a result, any future changes to the treatment of arrears must account for the interests of the family who may ultimately receive those funds. In that context, CalCSA's principal concern is that AB 2395 is premature.

California is still in the midst of implementing related reforms under AB 135. DCSS was directed to establish procedures and adopt regulations concerning uncollectible state-owed arrears, yet that implementation work remains underway. In addition, DCSS contracted for research and analysis regarding the collectibility of California child support arrears, and that work should help inform whether additional statutory changes to COAP are warranted and, if so, what those changes should be.

1. Before layering on substantial new statutory mandates, California should first complete the implementation already in progress and review the pending research. Moving forward with AB 2395 before that work is finished risks making policy changes without the benefit of the operational, fiscal, and programmatic information needed to evaluate them thoughtfully.
2. Even apart from timing, AB 2395 would impose extensive new operational requirements on LCSAs and DCSS. The bill requires new forms, standards, procedures, notices, reporting, website-related obligations, and prescriptive timelines, including written incompleteness notices within 30 days and final action on complete applications within 90 days. Those requirements would significantly increase workload for local agencies operating under already-constrained staffing and funding levels.
3. CalCSA is also concerned that certain provisions may have unintended consequences. Eliminating any waiting period to reapply after a denial, withdrawal, or rescission may drive repeat filings and additional casework. Changing the requirement that an offer "shall" require compliance with current support to "may" require compliance may weaken incentives for consistent payment where current support is owed. Expanding complaint resolution pathways may prolong outcomes and add administrative process without improving results for children and families.
4. For these reasons, CalCSA respectfully believes the Legislature should allow the ongoing AB 135 implementation and related arrears analysis to be completed before advancing broader COAP changes. After that work is finished, CalCSA would welcome the opportunity to engage on whether refinements are needed and how they can best be structured.

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. General Fund costs of an unknown but likely absorbable amount to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for LCSAs. To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. At the time this analysis was prepared, DCSS was unable to provide an estimated amount associated with that potential increased workload.
2. Workload costs of an unknown but potentially significant amount to LCSAs (federal Title IV-D funds and state and county General Fund) to implement the bill’s procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. DCSS could not quantity the potential workload at the time this analysis was prepared, but reports that a significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state.
3. The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for COAP are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. DCSS notes that the COAP program focuses on case participants that have an ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections would decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. DCSS further notes that government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

VOTES

ASM JUDICIARY: 10-2-0

YES: Kalra, Lee, Bryan, Connolly, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

NO: Macedo, Dixon

ASM HUMAN SERVICES: 5-0-2

YES: Lee, Calderon, Elhawary, Blanca Rubio, Ahrens

ABS, ABST OR NV: Castillo, Tangipa

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

UPDATED

VERSION: February 20, 2026

CONSULTANT: Manuela Boucher / JUD. / (916) 319-2334 FN: 0002638

Date of Hearing: May 13, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2395

Author:(Sharp-Collins) – As Introduced Ver:February 20, 2026

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

SUMMARY:

This bill establishes uniform statewide procedures, timelines, and standards for the Compromise of Arrears Program (COAP) administered by the Department of Child Support Services (DCSS) through local child support agencies (LCSAs), and expands the amount of debt that may be reduced.

Specifically, this bill:

1. Requires DCSS, within 180 days, to promulgate regulations and develop uniform application forms, notices, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements.
2. Requires LCSAs to provide written incompleteness notice within 30 days of receipt, repayment-option notice within 60 days of complete application, and final action within 90 days.
3. Requires LCSAs to post COAP information online, designate a contact, and provide annual written notice to obligors who may be eligible for debt reduction.
4. Increases the LCSA administrator’s compromise authority from $5,000 to $10,000.
5. Makes the requirement that an obligor be in compliance with the current support order discretionary rather than mandatory.
6. Eliminates the waiting period to reapply after withdrawal, denial, or rescission.

FISCAL EFFECT:

1. General Fund costs of an unknown but likely absorbable amount to DCSS to promulgate regulations within 180 days, develop uniform application forms, notice requirements and procedures, eligibility and repayment standards, a uniform repayment agreement, and reporting requirements for LCSAs. To the extent participation in COAP increases, government owed arrears debt reduction-related workload would also increase. At the time this analysis was prepared, DCSS was unable to provide an estimated amount associated with that potential increased workload.
2. Workload costs of an unknown but potentially significant amount to LCSAs (federal Title IV-D funds and state and county General Fund) to implement the bill’s procedural requirements, including 30-day incompleteness notices, 60-day repayment-option notices, 90-day final action on complete applications, annual written notices to potentially eligible obligors, website posting, designated contact information, and reporting to DCSS. DCSS could not quantity the potential workload at the time this analysis was prepared, but reports that a significant increase in applications could result in the need for additional staffing at the LCSAs. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state.
3. The effect on collections cannot be quantified because participation levels, timing of participation, and the amount of debt eligible for forgiveness are unknown. If most cases that are eligible for COAP are already applying each year, then the marginal increase from promulgated regulations may not have a significant impact on collections. DCSS notes that the COAP program focuses on case participants that have an ability to pay either a lump sum or adhere to a compromised payment plan. Therefore, collections may increase in the near-term from these lump sum payments. However, in the long term, collections would decrease as these cases are closed or there is no assigned arrears balance to collect against in the future. DCSS further notes that government-owed arrears balances for formerly assisted cases are passed through to the parent receiving support. If these balances are changed, there would be reduced collections going to families.

COMMENTS:

1. Purpose. According to the author:

Low-income families are under attack by the heavy burden government-owed child support debt creates…AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing Debt Reduction Program.

1. Background. California’s Title IV-D child support program, administered by DCSS through 47 LCSAs, serves one of the largest caseloads in the nation. The accumulation of child support arrears, which are past-due support obligations that have gone unpaid, accrues at 10% annual interest and often grows beyond what low-income obligors can realistically repay. Child support arrears take two principal forms: family-owed arrears, which represent payments due directly to the custodial parent or caregiver, and government-owed arrears, which are debts that accrue when a custodial parent receives CalWORKs assistance and, as a condition of aid, assigns their right to child support to the state — meaning support that would otherwise flow to the family flows to the state to offset cash assistance paid.

The Compromise of Arrears Program (COAP) was established by AB 1752 (Committee on Budget), Chapter 225, Statutes of 2003, as a debt-relief mechanism for government-owed child support arrears. Government-owed arrears CalFresh recipients do not assign child support rights to the state. Government-owed arrears are distinct from family-owed arrears, which are debts owed directly to the custodial parent and are not subject to compromise under COAP without the custodial parent’s written consent and participation. Following AB 207 (Committee on Budget), Chapter 573, Statutes of 2022, DCSS now passes through to former CalWORKs families certain government-owed arrears collections rather than retaining them as state reimbursement.

Under existing law, DCSS may accept offers in compromise of arrears and accrued interest, with the LCSA administrator authorized to compromise up to $5,000 and additional amounts subject to director delegation. The Human Services Committee analysis reports that during COAP’s nearly two decades of operation, the program has forgiven over $781 million in government-owed debt and eliminated an additional $307 million in interest charges on approximately 29,000 approved applications, with a denial rate exceeding 60% — most commonly due to inability to make an upfront 10% payment.

1. Support and Opposition. The sponsor, Western Center on Law & Poverty, and a coalition of legal services and community organizations, state that 95% of government-owed child support debt is uncollectible, that the bulk of state-owed arrears are owed by parents with extremely low incomes, and that the bill would improve access by requiring publicly available statewide standards, removing the requirement that applicants make an “offer,” and requiring LCSAs to act within set time periods. Child Support Directors Association of California, a trade association representing the leadership of California’s local child support agencies, writes that the bill is premature pending completion of AB 135 implementation and the related arrears analysis; the bill imposes extensive new operational requirements on LCSAs; eliminating the waiting period to reapply may drive repeat filings; changing the compliance-with-current-support requirement from mandatory to discretionary may weaken incentives for consistent payment; and that expanding complaint resolution pathways may prolong outcomes without improving results.
2. Prior Legislation. AB 135 (Committee on Budget), Chapter 85, Statutes of 2021, among other things, mandated DCSS to identify and to eliminate state-assigned arrears deemed “uncollectible.”

AB 1092 (Jones-Sawyer), of the 2019-20 Legislative Session, would have prohibited DCSS or the LCSA from collecting interest that accrues on or after January 1, 2022, on the principal amount assigned to the county. The Governor vetoed the bill, citing cost concerns, but directed DCSS to review COAP and consider any needed changes to address uncollectable debts and increase collections.

Analysis Prepared by: Shiran Zohar / APPR. / (916) 319-2081

Date of Hearing: April 23, 2026

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Alex Lee, Chair

ABPCA Bill Id:AB 2395 (

Author:Sharp-Collins) – As Introduced Ver:February 20, 2026

SUBJECT: Child support: compromise of arrears program

SUMMARY: Revises the compromise of arrears program (COAP) established under the California Department of Child Support Services (DCSS) to expand the amount of debt that can be reduced and establish uniform eligibility and repayment standards, and notification requirements. Specifically, this bill:

1. Allows the obligor not to be in compliance with the current support order to be eligible to compromise arrears and accrued interest.
2. Expands the amount of child support arrears a local child support agency (LCSA) has the authority to compromise from $5,000 to $10,000.
3. Removes authority for DCSS to make a final determination, which was not subject to the formal complaint process or judicial review, regarding whether it would be in the best interest of the state to accept or rescind an offer in compromise.
4. Requires any program established and operated by DCSS or delegated to the administrator of an LCSA, to ensure that COAP operates uniformly throughout the state, to be subject to the following requirements;
5. No later than 180 days after the chapter date that added these provisions, DCSS, in consultation with stakeholders, shall promulgate regulations to implement the requirements. Program regulations, policies and procedures, and forms adopted pursuant to this section shall be made available on DCSS’ website. Permits DCSS to implement and administer through a child support services letter or similar instruction until regulations are adopted.
6. DCSS shall create uniform application forms to be used by LCSAs subject to the following:
7. The application shall not require the applicant to make an offer of repayment; and,
8. The application shall inform the applicant of their right to use the existing complaint resolution process for any action on their application or if the LCSA fails to take any action within the time frames set forth in these provisions, and shall indicate where applicants can find the forms and procedures for the local child support agencies’ complaint resolution process.
9. DCSS shall create uniform notice requirements and procedures to be used by LCSAs subject to the following:
10. Each LCSA shall include information about COAP on their website, including a copy of all application forms and instructions, and a designated telephone number or email for individuals to contact the LCSA about COAP;
11. Within 30 days of receipt of an application, the LCSA shall review and provide written notice to the applicant if the application is incomplete and what additional information is required;
12. Any complete application shall be acted upon within 90 days of the submission of the complete application. The LCSA shall provide the applicant with a written notice of action approving or denying the application. If the application is denied, the notice of action (NOA) shall include the basis for the denial, information regarding the right to reapply and the right to use the existing complaint resolution process. The NOA shall also include where applicants can find the uniform forms and procedures for the LCSA’s complaint resolution process;
13. If an application is withdrawn or denied, or a repayment agreement is rescinded, there shall be no waiting period before the obligor can reapply; and,
14. Each LCSA shall provide written notice once annually to all obligors whose administrative files meet standards set by DCSS, indicating they may be eligible for debt reduction.
15. DCSS shall establish uniform eligibility and repayment standards subject to the following:
16. Within 60 days of the submission of a complete application, the LCSA shall provide written notice to applicants of their repayment options based on the uniform eligibility and repayment standards. The notice shall inform applicants of the factors in sub-paragraph ii) below, and provide an opportunity for the applicant to submit additional information and verification to support a lower repayment amount; and,
17. LCSAs may negotiate a repayment amount that is less than the repayment amount that corresponds with the applicant’s eligibility standards, subject to the approval by the LCSA IV-D Director or designee, in consideration of one or more of the following documented circumstances;
18. Anticipated income, payments, or assets.
19. Anticipated collections, in the absence of a compromise.
20. Necessary expenditures not accounted for in the eligibility standards.
21. Age of the arrearage or other fees and costs.
22. Individual hardship circumstances.
23. Employment history and barriers.
24. Whether the order was based on imputed income.
25. Incarceration history.
    
26. DCSS shall create a uniform repayment agreement for LCSAs to use, subject to the following:
27. The applicant shall receive a full and complete copy of the repayment agreement to review before signing; and,
28. DCSS shall establish uniform standards for modification and rescission of repayment agreements.
29. DCSS shall establish reporting requirements for LCSAs to submit on a regular basis regarding their implementation of these provisions to allow DCSS to evaluate the uniformity and effectiveness of COAP.

EXISTING LAW:

1. Establishes a statewide COAP under which DCSS may accept offers in compromise of child support arrears and interest owed to the state for reimbursement of aid paid under the California Work Opportunity and Responsibility to Kids (CalWORKs) program, requiring the program to operate uniformly across California and take into consideration the needs of the children subject to the support order and the obligor’s ability to pay. (Family Code [FAM] § 17560(a))
2. Requires an offer in compromise to include a provision mandating that an obligor who owes current child support be in compliance with the current support order for a set period of time before any arrears and accrued interest may be compromised. (FAM § 17560(b))
3. Requires rescission of any offer in compromise, reestablishment of all compromised liabilities notwithstanding any applicable statute of limitations, and forfeiture of any amount offered, absent a finding of good cause, if the obligor concealed income, assets, or property, made false statements, or failed to comply with the terms of the agreement. (FAM § 17560(c))
4. Prohibits the administrator, director, or director’s designee from accepting an offer in compromise of child support arrears owed directly to the custodial party without that party’s written consent and participation in the agreement, and requires the custodial party to receive a clear written explanation of their rights before consenting. (FAM §§ 17560(d); 17406(k))
5. Delegates to the administrator of an LCSA, the authority to compromise child support arrears up to $5,000, with authority for the director to delegate additional compromise authority to support effective program administration. (FAM § 17560(e))
6. Conditions compromise of arrears on a determination by the administrator, director, or director’s designee that acceptance is in the best interest of the state and that the compromise amount equals or exceeds what the state can expect to collect in the absence of the compromise based on the obligor’s ability to pay. (FAM § 17560(f)(1)(A))
7. Deems acceptance of a compromise to be in the best interest of the state, absent good cause to the contrary, for arrears accrued when a reservist or National Guard member was activated to military service and failed to seek a modification to reflect reduced income, and directs DCSS to establish rules compromising at minimum the amount that would not have accrued had the order been modified. (FAM § 17560(f)(1)(B))
8. Requires an obligor to provide evidence of income and assets, including wage stubs, tax returns, and bank statements, sufficient to establish that the offer represents the most that can be collected from present assets or income, that the obligor has no reasonable prospects of satisfying a greater amount within a reasonable time, and that the obligor did not withhold payment in anticipation of the program. (FAM § 17560(f)(3))
9. Permits a determination by the administrator, director, or director’s designee that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject to the complaint resolution process or judicial review. (FAM § 17560(g))
10. Requires any offer in compromise entered into under COAP to be filed with the appropriate court, and requires the LCSA to notify the court if the compromise is rescinded. (FAM § 17560(h))
11. Requires any compromise of child support arrears to maximize to the greatest extent possible the state’s share of federal performance incentives under the Child Support Performance and Incentive Act of 1998, and to comply with federal law. (FAM § 17560(i))
12. Requires each LCSA to maintain a complaint resolution process, with DCSS specifying by regulation uniform forms and procedures for resolving all complaints from custodial and noncustodial parents, requiring written resolution within 30 days of receipt, extendable by an additional 30 days. (FAM § 17800)

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS: This analysis only discusses policy issues germane to the Assembly Committee on Human Services.

Background: Child Support Arrears. California’s Title IV-D child support program, administered by DCSS through 47 LCSAs, serves one of the largest caseloads in the nation. The accumulation of child support arrears, which are past-due support obligations that have gone unpaid, accrues at 10% annual interest and often grows beyond what low-income obligors can realistically repay. Child support arrears take two principal forms: family-owed arrears, which represent payments due directly to the custodial parent or caregiver, and government-owed arrears, which represent reimbursement to the state for public assistance paid on the child’s behalf, mainly through CalWORKs, during a period when the obligor was not meeting the court-ordered support obligation.

Under current law, an LCSA administrator is prohibited from accepting an offer in compromise for child support arrears owed directly to a custodial party, unless that party provides written consent and actively participates in the agreement. Before giving this consent, the custodial party must be provided with a clear written explanation of their rights regarding the arrears and the implications of the compromise. While COAP primarily targets debt owed to the government, any reduction in family-owed arrears remains entirely voluntary for the custodial parent, who also has the right to receive full support services from the LCSA regardless of whether they choose to participate.

This bill reforms the statewide program used to settle government-owed arrears, which are debts assigned to the state for public assistance reimbursement. As noted, while COAP can technically include family-owed arrears if the custodial parent provides written consent, this bill does not explicitly address family-owed arrears.

Statewide child support arrears have hovered near $19 billion in recent years, having peaked at approximately $20 billion in 2007.^[1] Of that total debt, approximately $6.8 billion is owed to the government (as reimbursement for public assistance like CalWORKs), while roughly $11.6 billion is owed directly to families. Approximately 80% of this debt is owed by obligors earning less than $15,000 per year. Research from the federal Office of Child Support Services has found that over 65% of California’s past-due support is owed by obligors earning $20,000 per year or less, and nearly 90% by those earning under $40,000 per year.^[2] For these obligors, these arrears create a permanent financial barrier that limits workforce participation and can discourage formal employment.

Cases that enter the IV-D program through public assistance, primarily CalWORKs and foster care, follow a distinct pathway that differs from cases initiated at the request of a parent. When a family applies for CalWORKs, state law requires the applicant to assign to the state any right to child support as a condition of receiving aid. The LCSA then opens a case, establishes or enforces a support order, and collects payments on the state’s behalf. Collections are used first to reimburse the cost of public assistance rather than passing through to the family. If the obligor fails to pay during the period the family receives aid, unpaid monthly obligations accumulate as assigned arrears, which is debt owed to the state rather than to the custodial parent.

California law imposes 10% annual interest on unpaid support, compounding the balance over time. Support orders in IV-D cases are sometimes established by default when the obligor does not appear or are set based on imputed income, which is an attributed earning capacity, rather than verified actual earnings. Subsequent changes in circumstance, such as job loss, incarceration, illness, or periods of homelessness, do not reduce a support order retroactively under federal law, meaning arrears continue to accrue through periods when the obligor has no income. Because orders can only be modified prospectively upon court action, obligors who lack the resources or capacity to seek a timely modification accumulate debt through circumstances they cannot pay.

The Compromise of Arrears Program. The Legislature established COAP in 2003 through
AB 1752 (Committee on Budget), Chapter 225, Statutes of 2003, as a debt-relief mechanism for government-owed arrears. Under COAP, DCSS may accept an offer in compromise of child support arrears and accrued interest owed to the state as reimbursement for CalWORKs assistance. The program is intended to resolve debt that the state has little realistic prospect of collecting in full, in exchange for a negotiated partial repayment. To qualify, an obligor must demonstrate that the compromise amount equals or exceeds what the state could otherwise expect to collect based on the obligor’s ability to pay, and that the obligor has not withheld child support in anticipation of a compromise.

Under current law, if the obligor owes current child support, the offer in compromise is required to be in compliance with the current support order for a set period before any arrears may be compromised. The administrator of an LCSA is authorized to compromise arrears up to $5,000 without additional state approval. Currently, a determination that is not in the best interest of the state to accept, or rescind an offer in compromise, is final and not subject to complaint resolution processes or judicial review.

This bill would reform COAP by making it optional, rather than mandatory, for an obligor to be in compliance with a current support order for a set period before their debt can be reduced. It would also double the authority of local child support agency administrators, allowing them to compromise up to $10,000 in arrears without state approval. Furthermore, the bill would eliminate the finality of state decisions regarding these offers, instead granting individuals the right to challenge a denial through complaint resolution processes. To ensure these standards are applied fairly, DCSS would be required to develop uniform procedures and consider broader factors such as an individual’s employment barriers and incarceration history when negotiating repayment amounts.

COAP has operated for nearly two decades. During that period, the program forgave over $781 million in government-owed debt and eliminated an additional $307 million in interest charges. However, the program’s reach was limited by its eligibility rules. Of approximately 77,500 applications received, only 29,000 were approved, a denial rate exceeding 60%. The most common reason for denial was the inability to make an upfront payment of 10% of the government-owed balance, a threshold that proved prohibitive for the low-income obligors the program was designed to serve.^[3] Additional restrictions, such as requirements that an obligor have only one case open and no interstate case, further limited access for obligors in counties with complex caseloads.^[4]

In 2021, DCSS replaced the original COAP framework with a Debt Reduction Program featuring revised eligibility criteria, reflecting a policy shift toward expanding access to arrears relief. Separately, AB 207 (Committee on Budget), Chapter 573, Statutes of 2022, authorized DCSS to pass government-owed arrears through to former CalWORKs families rather than retaining them as state reimbursement. As of May 2024, DCSS completed the required payment system automation updates and began implementing this pass-through, which is estimated to direct approximately $160.7 million annually to low-income families who formerly received CalWORKs assistance. DCSS has also contracted for research and analysis on the collectability of California’s child support arrears portfolio, work that remains underway.

The Author and sponsor contend that COAP is not administered uniformly throughout the state due to discrepancies at LCSAs. This bill would create a timeline for processing cases and ensure that more individuals have access to information about COAP.

Recent Legislative Changes. California has recently moved away from a cost-recovery model for foster youth, prioritizing family reunification over state reimbursement. Through the passage of AB 1686 (Bryan), Chapter 755, Statutes of 2022, and updated guidance, parents are no longer required to pay child support while their child is in foster care, as it is acknowledged this creates a barrier to reunification. Consequently, counties are generally prohibited from referring these cases to LCSAs unless the parent’s income exceeds high thresholds, typically 400% of the federal poverty level. Additionally, AB 2906 (Bryan), Chapter 623, Statutes of 2024, was enacted to ensure that foster youth keep their own Social Security survivor benefits rather than having those funds intercepted by the state to cover the cost of their care. These changes collectively aim to stabilize families and provide youth with a financial foundation as they transition out of the child welfare system.

Author’s Statement: According to the Author, “Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. [This bill] supports economic mobility for families by increasing access and improving transparency of the existing ‘Debt Reduction Program.’

“Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future.”

Equity Implications: The provisions of this bill modify existing program terms by changing the compliance-with-current-support requirement from mandatory to discretionary, doubling the LCSA administrator’s independent authority to compromise arrears, and deleting the current provision making denial or rescission determinations final and unreviewable, thereby restoring access to complaint resolution processes and judicial review.

To ensure uniform application of COAP across all LCSAs, the bill also requires DCSS to promulgate uniform regulations within 180 days of enactment, covering application forms, notice requirements, eligibility and repayment standards, and reporting requirements. Each LCSA would also be required to publish program information on its website, including all application forms, instructions, and a designated contact for program inquiries. Additionally, each LCSA would be required to provide a written annual notice to all obligors whose administrative files meet DCSS-established eligibility indicators, informing them they may qualify for debt reduction. The bill establishes equity-oriented factors that LCSAs may consider when negotiating repayment amounts below the standard eligibility calculation, including the obligor’s employment history and barriers, incarceration history, whether the underlying order was based on imputed income, individual hardship circumstances, and the age of the arrearage.

Double referral: This bill was previously heard by the Assembly Committee on Judiciary on April 7, 2026, and was approved on a 10-2 vote.

Arguments in Support: The Truth & Justice in Child Support Coalition, the sponsor of this bill, writes, “Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships.”

Arguments in Opposition: The California Child Support Association (CalCSA), “believes the Legislature should allow the ongoing AB 135 implementation and related arrears analysis to be completed before advancing broader COAP changes. After that work is finished, CalCSA would welcome the opportunity to engage on whether refinements are needed and how they can best be structured.”

RELATED AND PRIOR LEGISLATION:

AB 2906 (Bryan), Chapter 623, Statutes of 2024, see comments above

AB 1686 (Bryan), Chapter 755, Statutes of 2022, see comments above

AB 135 (Committee on Budget), Chapter 85, Statutes of 2021, mandated DCSS to identify and to eliminate state-assigned arrears deemed "uncollectible." Directed the state to cease collection of government-owed child support debt for obligors whose only source of income is Social Security, VA Disability Compensation, or the Cash Assistance Program for Immigrants.

AB 1092 (Jones-Sawyer) of 2019, Would have provided that if child support is assigned to the county, DCSS or the LCSA shall not collect interest that accrues on or after January 1, 2022, on the principal amount assigned. Governor Newsom vetoed AB 1092 due to costs but directed DCSS to review COAP and consider any needed changes to address uncollectable debts and increase collections.

REGISTERED SUPPORT / OPPOSITION:

Support

Coalition of California Welfare Rights Organization (Co-Sponsor)

End Child Poverty California Powered by Grace (Co-Sponsor)

Truth and Justice in Child Support Coalition (Co-Sponsor)

Western Center on Law & Poverty (Co-Sponsor)

Communities United for Restorative Youth Justice (CURYJ)

Community Legal Services in East Palo Alto

Good+Foundation

Rubicon Programs

University of the Pacific McGeorge School of Law Homeless Advocacy Clinic

Young Community Developers

Opposition

Child Support Directors Association of California

Analysis Prepared by: Jessica Langtry / HUM. S. / (916) 319-2089

1. https://news.yahoo.com/california-parents-owe-19-2-204408750.html. ↑

2. https://acf.gov/archive/css/newsletter/ocsenewsletter/september-2021-child-support-report. ↑

3. https://acf.gov/archive/css/newsletter/ocsenewsletter/september-2021-child-support-report. ↑

4. https://childsupportservices.saccounty.gov/FrequentlyAskedQuestions/Pages/CompromiseofArrearages.aspx. ↑

Date of Hearing: April 7, 2026

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

ABPCA Bill Id:AB 2395

Author:(Sharp-Collins) – As Introduced Ver:February 20, 2026

SUBJECT: Child support: compromise of arrears program

KEY ISSUE: SHOULD THE LEGISLATURE CODIFY A STANDARDIZED PROCESS TO REVIEW APPLICATIONS FOR THE STATEWIDE COMPROMISE OF ARREARS PROGRAM?

SYNOPSIS

Under existing law, a custodial parent who receives CalWORKS must assign any child support order they are entitled to receive while they are enrolled in the program to the state. This requirement is a result of a combination of federal and state law, and can result in a noncustodial parent (or obligor) owing significant amounts to the state, which accrues interest at an astronomical rate of 10% annually. Recognizing the detrimental impact that owing such massive amounts to the state, for an order that is issued to presumably be sent to a minor child and custodial parent, the state implemented the compromise of arrears program (COAP). Under COAP, a qualifying obligor can apply to have a portion of their state-owed arrears forgiven, thereby easing the crushing weight that may keep them from making ends meet and, particularly for low-income obligors, sinking them into deeper poverty. Despite COAP’s status as a state-wide program, the proponents contend that there is inconsistent application of COAP. This bill seeks to establish standard procedures and timelines for local child support agencies (LCSAs) to respond and process COAP applications. The California Child Support Association (CalCSA) raises concern that the bill in print would impose hefty administrative burdens on the LCSAs, but appear to agree with the sponsors and author on their goal of ensuring a functioning COAP.

This bill is sponsored by the Western Center on Law and Poverty. It is further supported by a coalition of organizations that advocate on behalf of low-income communities and legal services organizations. It is opposed by the California Child Support Association (CalCSA). Should this bill pass out of this Committee, it will be heard next by the Committee on Human Services.

SUMMARY: Establishes procedures for accepting and responding to applications to the compromise of arrears program. Specifically, this bill:

1. Authorizes, rather than requires, an offer in compromise extended under the statewide compromise of arrears program to an obligor who owes current child support to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised.
2. Authorizes the director’s designee to determine that it is in the best interest of the state not to rescind an offer in compromise entered into under the statewide compromise of arrears program.
3. Authorizes the director to delegate to the administrator of a local child support agency authority to compromise an amount of child support arrears up to ten thousand dollars, increased from five thousand dollars.
4. Strikes the provision making a determination by the administrator, director or the director’s designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the complaint review process of Chapter 5 of Division 17, or judicial review.
5. Requires any program established and operated by the department or delegated to the administrator of a local child support agency to be subject to the following requirements in order to ensure that the compromise of arrears program operates uniformly throughout the state:
   1. No later than 180 days after the chapter date of the act that added this section, the department, in consultation with stakeholders, shall promulgate regulations to implement the requirements of this section. Program regulations, policies and procedures, and forms adopted pursuant to this section shall be made available on the department’s internet website. Notwithstanding the Administrative Procedure Act, the department may implement and administer this section through a child support services letter or similar instruction until regulations are adopted;
   2. The department shall create uniform application forms to be used by local child support agencies subject to the following:
      1. The application shall not require the applicant to make an offer of repayment;
      2. The application shall inform the applicant of their right to use the complaint resolution process for any action on their application or if the local child support agency fails to take any action within the time frames set forth in this section, and shall indicate where applicants can find the forms and procedures for the local child support agencies’ complaint resolution process.
   3. The department shall create uniform notice requirements and procedures to be used by local child support agencies subject to the following:
      1. Each local child support agency shall include information about the compromise of arrears program on their website, including a copy of all application forms and instructions, and a designated telephone number or email for individuals to contact the local child support agency about the compromise of arrears program;
      2. Within 30 days of receipt of an application, the local child support agency shall review and provide written notice to the applicant if the application is incomplete and what additional information is required;
      3. Any complete application shall be acted upon within 90 days of the submission of the complete application. The local child support agency shall provide the applicant with a written notice of action approving or denying the application. If the application is denied, the notice of action shall include the basis for the denial, information regarding the right to reapply and the right to use the complaint resolution process. The notice of action shall also include where applicants can find the uniform forms and procedures for the local child support agency’s complaint resolution process;
      4. If an application is withdrawn or denied, or a repayment agreement is rescinded, there shall be no waiting period before the obligor can reapply;
      5. Each local child support agency shall provide written notice once annually to all obligors whose administrative files meet standards set by the department indicating they may be eligible for debt reduction pursuant to this section and Section 17560.
   4. The department shall establish uniform eligibility and repayment standards subject to the following:
      1. Within 60 days of the submission of a complete application, the local child support agency shall provide written notice to applicants of their repayment options based on the uniform eligibility and repayment standards. The notice shall inform applicants of specified factors and provide an opportunity for the applicant to submit additional information and verification to support a lower repayment amount;
      2. Local child support agencies may negotiate a repayment amount that is less than the repayment amount that corresponds with the applicant’s eligibility standards, subject to the approval by the LCSA IV-D Director or designee in consideration of one or more of the documented following circumstances:
         1. Anticipated income, payments or assets;
         2. Anticipated collections, in the absence of a compromise;
         3. Necessary expenditures not accounted for in the eligibility standards;
         4. Age of the arrearage or other fees and costs;
         5. Individual hardship circumstances;
         6. Employment history and barriers;
         7. Whether the order was based on imputed income;
         8. Incarceration history.
   5. The department shall establish reporting requirements for local child support agencies to submit on a regular basis regarding their implementation of this section and Section 17560 to allow the department to evaluate the uniformity and effectiveness of the program.

EXISTING LAW:

1. Establishes DCSS as the single statewide agency responsible for the administration and management of California’s child support enforcement program. (Family Code Section 17202.)
2. Requires, at the local level, the child support enforcement program to be run by LCSAs, which have the responsibility for promptly and effectively establishing, modifying, and enforcing child support obligations. (Family Code Section 17400.)
3. Establishes a formula to calculate support orders under the state child support guideline. (Family Code Section 4050 et seq.)
4. Provides that interest accrues at the rate of 10% per annum on the principal amount of a money judgment remaining unsatisfied. (Code of Civil Procedure Section 685.010.)
5. Establishes the federal Temporary Assistance for Needy Families (TANF) program to provide aid and welfare-to-work services to eligible families and, in California, provides that TANF funds for welfare-to-work services are administered through the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Establishes income, asset and real property limits used to determine eligibility for the CalWORKs program. (42 U.S.C. 601 et seq.; Welfare & Institutions Code Section 11200 et seq.)
6. Provides that, as a condition of eligibility for cash assistance, an applicant or recipient must assign to the state their rights to any child support owed during the receipt of benefits, as provided, in an amount not to exceed the total cash assistance provided to the family. (Welfare & Institutions Code Section 11477.)
7. Requires LCSAs to pay to families receiving cash assistance the first $100 of any child support collected in a month for one child, or the first $200 for a family with two or more children, in which the child support is due, and that payment cannot be deducted from the amount of assistance to which the family would otherwise be eligible. (Family Code Section 17504.)
8. Requires the department to establish and operate a statewide compromise of arrears program pursuant to which the department may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code. Requires the program to operate uniformly across California and to take into consideration the needs of the children subject to the child support order and the obligor’s ability to pay. (Family Code Section 17560 (a).)
9. If the obligor owes current child support, requires the offer in compromise to require the obligor to be in compliance with the current support order for a set period of time before any arrears and interest accrued thereon may be compromised. (Family Code Section 17560 (b).)
10. Requires the director to delegate to the administrator of a local child support agency the authority to compromise an amount of child support arrears up to five thousand dollars ($5,000), and may delegate additional authority to compromise up to an amount determined by the director to support the effective administration of the offers in compromise program. (Family Code Section 17560 (e).)
11. Makes a determination by the administrator, director or the director’s designee within the department that it would not be in the best interest of the state to accept or rescind an offer in compromise in satisfaction of child support arrears final and not subject to the provisions of Chapter 5 (commencing with Section 17800) of Division 17, or subject to judicial review. (Family Code Section 17560 (g).)
12. Requires each local child support agency to maintain a complaint resolution process. Requires the department to specify by regulation uniform forms and procedures that each local child support agency shall use in resolving all complaints received from custodial and noncustodial parents. Requires a complaint to be made within 90 days after the custodial or noncustodial parent affected knew or should have known of the child support action complained of. Requires the local child support agency to provide a written resolution of the complaint within 30 days of the receipt of the complaint. Authorizes the director of the local child support agency to extend the period for resolution of the complaint an additional 30 days in accordance with the regulations adopted pursuant to Section 17804. (Section 17800.)
13. Entitles a custodial or noncustodial parent who is dissatisfied with the local child support agency’s resolution of a complaint an opportunity for a state hearing when one or more of the following actions or failures to take action by the department or the local child support agency is claimed by the parent:
    1. An application for child support services has been denied or has not been acted upon within the required timeframe;
    2. The child support services case has been acted upon in violation of state or federal law or regulation or department letter ruling, or has not yet been acted upon within the required timeframe, including services for the establishment, modification, and enforcement of child support orders and child support accountings;
    3. Child support collections have not been distributed or have been distributed or disbursed incorrectly, or the amount of child support arrears, as calculated by the department or the local child support agency is inaccurate. The amount of the court order for support, including current support and arrears, is not subject to a hearing under this section;
    4. The child support agency’s decision to close a child support case. (Family Code Section 17801 (a).)
14. As a condition of eligibility for aid paid under CalWORKS, requires each applicant or recipient to do all of the following:
    1. For applications received before October 1, 2009, assign to the county any rights to support from any other person the applicant or recipient may have on their own behalf or on behalf of any other family member for whom the applicant or recipient is applying for or receiving aid, not exceeding the total amount of cash assistance provided to the family under the chapter. Makes receipt of public assistance under this chapter an assignment by operation of law, and makes an assignment of support rights to the county constitute an assignment to the state.
    2. For an application received on or after October 1, 2009, assign to the county any rights to support from any other person the applicant or recipient may have on their own behalf, or on behalf of any other family member for whom the applicant or recipient is receiving aid. Makes this assignment apply only to the support that accrues during the period of time that the applicant is receiving assistance under this chapter, and prohibits the total amount from exceeding the total amount of cash assistance provided.

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

COMMENTS: When families apply for CalWORKs – California’s TANF program – they are required to assign to the county their rights to any child support owed during the period they receive assistance and to cooperate with the child support program in enforcement efforts. As of 2022, the first $100 of a child support order collected for one child or $200 for two or more children is passed on by the state to the custodial parent each month. This amount is referred to as “pass-through” support. The remaining amount collected is retained by the state and distributed between the county, state, and repaid to the federal government. Once a family leaves assistance (then referred to as “formerly assisted”), the family is paid the current support and any arrears owed them first and the government recoups what is owed to them – the amount of support due when the family was on assistance, up to the amount of assistance paid to the family – after the family is fully paid. In no event can the government retain more than what was paid out in assistance. Recent changes in department policy have allowed greater pass-through amounts for formerly assisted families. (For more information on state arrears and pass-through, see: https://lao.ca.gov/Publications/Report/4861.)

Recognizing the significant amount of arrears owed to the state as a result of CalWORKS participation, and the exacerbating effect those arrears were likely to have on low-income families, the Legislature enacted the compromise of arrears program (COAP). Under COAP, an eligible obligor can apply to have up to $5,000 of their debt forgiven, subject to an agreement between the obligor and the department. The COAP program can be found at Family Code Section 17560.

According to a study conducted by the Urban Institute, participants in pilot programs throughout the state that had their state-owed debt eliminated were able to more consistently comply with their active support order, increasing their compliance rate by 18 – 28%. The study reflected compounding benefits to debt relief: increased compliance seemingly led to higher credit scores, which facilitated access to car loans and better housing, reducing barriers to steady employment and a decrease in license suspensions and allowing for overall improvement in their relationships with their children. (Heather Hahn et al, Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children: Evaluation of the San Francisco Child Support Debt Relief Pilot (August 28, 2019) The Urban Institute, ix – x available at: https://www.urban.org/sites/default/files/publication/100812/relief_from_government-owed_child_support_debt_and_its_effects_on_parents_and_children_4.pdf .)

This bill seeks to create consistent application of the state’s COAP program by implementing standard processing and response timelines, as well as a mechanism for administrative review. According to the author:

Low-income families are under attack by the heavy burden government-owed child support debt creates. This debt is accumulated by non-custodial parents who are directed to reimburse the state for essential public benefits, such as CalFresh and CalWORKs. AB 2395 supports economic mobility for families by increasing access and improving transparency of the existing "Debt Reduction Program".

Low-income families should not be trapped in a cycle of poverty due to endless government-owed debt. This bill ensures families have the necessary information to make the best financial decisions for their future. Existing law requires that the COAP program “operate uniformly across California.” (Family Code Section 17560 (a).) While the DCSS has an internal policy manual that provides some guidance on how LCSAs should manage individual applications, there are otherwise no uniform procedures. The department’s policy manual is not available online, but can be obtained upon request via email at the email listed at this website: https://dcss.ca.gov/policies/.

AB 2395 requires the department to develop a uniform set of application forms for LCSAs to disseminate to COAP applicants. The forms must meet two elements: they may not solicit an offer of repayment from the applicant, and they must inform the applicant of their right to use the complaint resolution process currently in statute to review decisions by an LCSA or the department.

The bill also imposes the following summarized timeline: Within 30 days of receiving an application, an LCSA must review and notify the applicant if their application is incomplete, noting what information is yet to be submitted. Within 60 days of submitting a complete application, an LCSA is required to inform the applicant of their repayment options and allow an applicant the opportunity to submit additional information to attempt to obtain a lower repayment amount. Finally, the bill requires an LCSA to act on a complete application, whether to approve or deny it, within 90 days of the applicant’s submission. The LCSA must then provide the basis of a denial of any application, as well as information about how to reapply or utilize the LCSA’s complaint resolution process.

The opponents raise concern that imposing strict timelines would “significantly increase workload for local agencies operating under already-constrained staffing and funding levels.” This point is well taken, as many departments and agencies across the state are facing meager budgets. Additionally, the department’s existing policy does not appear to impose strict deadlines on LCSAs’ review of COAP applications. It is outside the purview of this Committee, however, to determine what timelines may work for LCSAs and the department to confirm receipt of an application, provide specified resources, or complete a review and provide final disposition, that determination is more appropriately made by the department. Additionally, while LCSAs are sure to have budget constraints, it seems appropriate to have some form of consistency in response and disposition times for a program available throughout the state so that an obligor may have a reasonable expectation of how the process may progress, regardless of which county they live in. Nevertheless, the author may wish to consider extending the timelines to allow LCSAs better opportunity to meet the new statutory deadlines.

In addition to imposition of new timelines, the bill appears to codify two elements of the department’s existing policy regarding COAP. First, both this bill and existing department policy allow an applicant to immediately reapply if the application is withdrawn or denied, or a repayment agreement is rescinded. Opponents of the bill contend that this provision “may drive repeat filings and additional casework.” However, to the extent such permission is already existing department policy, individual LCSA’s deviation from the practice may actually emphasize the need for a bill promoting consistent application of the statewide program.

Second, existing department policy authorizes LCSAs to negotiate a lower repayment amount (or higher amount in compromise) than the amount that corresponds with the applicant’s eligibility standards, so long as it is approved by the LCSA’s Title IV-D director or their designee, based on consideration of a number possible factors. These factors include the obligor’s anticipated outcome, anticipated collection absent a compromise, and individual hardship circumstances. AB 2395 likewise authorizes LCSAs to agree to a lower repayment amount, although it incorporates a few more factors than those identified in the department’s existing policy.

Additionally, the bill makes a number of changes to existing Family Code Section 17560. Under the statute’s current provisions, any agreement to compromise on an obligor’s arrears must include a requirement that the obligor be up to date with any current child support order. This bill changes that to a permissive standard, and allow an LCSA to enter into an agreement with an obligor who is not current with their child support order. The opponents of this measure raise concern that this shift may unintentionally reduce an obligor’s incentive to consistently pay their child support obligation. However, the language does not prohibit an LCSA from requiring compliance. Rather, it grants them the discretion to enter into such an agreement if they find it appropriate to do so.

The bill also increases the statutory authorization for the amount of arrears an LCSA can agree to compromise from $5,000 to $10,000. Considering this amount has been stagnant for over 20 years, this increase seems reasonable. Moreover, based on the department’s policies it seems the LCSAs already have the authority to authorize an agreement to compromise for amounts in excess of $5,000, even absent this statutory change. Nevertheless, to the extent there is inconsistent application of that discretion, increasing the statutory amount may help promote overall higher amounts of compromise across the state.

Finally, the bill strikes an existing provision in Section 17560 that makes any decision by the LCSA or department that it would not be in the best interest of the state to accept or rescind an offer in compromise final and not subject either to the LCSA’s complaint process required by Family Code Section 17800 or to judicial review. The bill then grants applicants the right to avail themselves of the complaint process. The opponents once again raise concern that removing the finality of the LCSA’s decision regarding a COAP application may “prolong outcomes and add administrative process without improving results for children and families.” It is reasonable to expect that an additional review pathway could increase the workload for the department and LCSAs. However, to the extent that COAP is being administered inconsistently across the state, despite the statutory mandate to the contrary, it seems reasonable to allow individual applicants to seek redress through an existing administrative complaint process.

The opposition’s concern that this bill overlaps with the department’s review of uncollectible arrears. In 2021, the Legislature enacted AB 135 (Committee on Budget) Chap. 85, Stats. 2021) which, among its many provisions, required LCSAs to cease collection on child support arrearages that were determined to be uncollectible, and tasked the department to adopt regulations to implement the new provisions by July 2024. According to the opposition, the state is still in the process of implementing these reforms, and posits that the review of the state’s arrears could be useful in determining whether changes to COAP are appropriate. Notably, the review of arrearages required by AB 135 is a wholesale review capturing all arrears owed to the state, regardless of whether the obligor is interested in applying for COAP or even eligible to do so. It is certainly possible that once the state has concluded its review of uncollectible arrears that someone’s case may be closed out and therefore COAP would become irrelevant to that individual. However, it also stands to reason that those who would not fall into that category should be able to benefit from more standardized application of the existing program, and should not have to wait for the state to complete its extensive review process to do so. Moreover, if the author does opt to re-evaluate the timelines in a manner that helps address some of the heartburn experienced by the opponents, it is possible that child support officers may have more time to identify cases that could be deemed uncollectible based on the standards established by AB 135 as the individuals apply.

ARGUMENTS IN SUPPORT: This bill is sponsored by the Western Center on Law and Poverty. It is supported by a number of low-income legal services and restorative justice organizations. In support of the bill the sponsors submit:

For over 40 years, California has required parents who receive CalWORKs to repay those benefits by intercepting their child support. Families receiving CalWORKs generally only receive $100 (for one child) or $200 (for two or more children) of their monthly child support, while the government keeps the rest. When noncustodial parents cannot afford to pay, this debt grows rapidly, because California adds 10% interest annually. As a result, noncustodial parents in California owe more than $6 billion dollars in government-owed child support debt.

Past studies showed that 95% percent of this government-owed child support debt is uncollectible and the bulk of the state-owed arrears are owed by parents with extremely low incomes. See Examining Child Support Arrears in California: The Collectability Study (2003). In many of these cases, the children are now adults, and the parents are in their 50s or 60s. See 2022-23 Budget: Analysis of Child Support Program Proposals, page 6.

California has an existing program to help low-income parents who qualify to seek relief from harmful, uncollectible government-owed child support debt. See Family Code Section 17560. This bill would improve this existing Debt Reduction Program and ensure statewide uniformity in the program, as required in Family Code Sec. 17560, by:

• requiring publicly available, statewide standards that can be enforced through Department of Child Support Service’s (DCSS) existing complaint resolution process; and

• reporting requirements to evaluate the uniformity and effectiveness of the program.

The bill would also improve access and remove barriers to the program by:

• requiring all local child support agencies (LCSAs) to post the application to the program on their website; have a designated phone number or email for the debt reduction program; and send a notice to parents who are potentially eligible;

• requiring LCSAs to act on applications within set time periods; and

• requiring LCSAs to provide repayment options to applicants based on statewide eligibility and repayment standards (removing the requirement that applicants make an “offer,” which has discouraged participation).

Reducing the harm caused by government-owed child support debt is also a racial justice issue. The policy of requiring families who receive public assistance to reimburse the government stems from racist stereotypes about Black parents and furthers a legacy of extracting wealth from communities of color. In California, recent data shows that nearly 60% of the children whose families owe child support to the state are Black and Latino. See The Payback Problem (2019), page 13.

Lifting the burden of government-owed child support debt from parents has shown to reduce employment barriers, improve housing status and credit scores, and most importantly, improve parent-child and co-parenting relationships. See Relief from Government-Owed Child Support Debt and Its Effects on Parents and Children (2019).

ARGUMENTS IN OPPOSITION: This bill is opposed by the California Child Support Association (CalCSA). They submit:

With the implementation of child support arrears pass-through, unpaid child support that is collected may now be sent to the other parent. As a result, any future changes to the treatment of arrears must account for the interests of the family who may ultimately receive those funds. In that context, CalCSA’s principal concern is that AB 2395 is premature.

California is still in the midst of implementing related reforms under AB 135. DCSS was directed to establish procedures and adopt regulations concerning uncollectible state-owed arrears, yet that implementation work remains underway. In addition, DCSS contracted for research and analysis regarding the collectibility of California child support arrears, and that work should help inform whether additional statutory changes to COAP are warranted and, if so, what those changes should be.

1. Before layering on substantial new statutory mandates, California should first complete the implementation already in progress and review the pending research. Moving forward with AB 2395 before that work is finished risks making policy changes without the benefit of the operational, fiscal, and programmatic information needed to evaluate them thoughtfully.

2. Even apart from timing, AB 2395 would impose extensive new operational requirements on LCSAs and DCSS. The bill requires new forms, standards, procedures, notices, reporting, website-related obligations, and prescriptive timelines, including written incompleteness notices within 30 days and final action on complete applications within 90 days. Those requirements would significantly increase workload for local agencies operating under already-constrained staffing and funding levels.

3. CalCSA is also concerned that certain provisions may have unintended consequences. Eliminating any waiting period to reapply after a denial, withdrawal, or rescission may drive repeat filings and additional casework. Changing the requirement that an offer "shall" require compliance with current support to "may" require compliance may weaken incentives for consistent payment where current support is owed. Expanding complaint resolution pathways may prolong outcomes and add administrative process without improving results for children and families.

4. For these reasons, CalCSA respectfully believes the Legislature should allow the ongoing AB 135 implementation and related arrears analysis to be completed before advancing broader COAP changes. After that work is finished, CalCSA would welcome the opportunity to engage on whether refinements are needed and how they can best be structured.

REGISTERED SUPPORT / OPPOSITION:

Support

Western Center on Law & Poverty (sponsor)

Coalition of California Welfare Rights Organization
Communities United for Restorative Youth Justice (CURYJ)
Community Legal Services in East Palo Alto
End Child Poverty California Powered by Grace
Good+foundation

Neighborhood Legal Services of Los Angeles County
Rubicon Programs
Truth and Justice in Child Support Coalition
University of the Pacific McGeorge School of Law Homeless Advocacy Clinic
Young Community Developers

Opposition

Child Support Directors Association of California

Analysis Prepared by: Manuela Boucher-de la Cadena / JUD. / (916) 319-2334