Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__239599INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2395</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Sharp-Collins</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Sharp-Collins</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Section 17560 of, and to add Section 17560.5 to, the Family Code, relating to child support. </ns0:Title>
<ns0:RelatingClause>child support</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Child support: compromise of arrears program.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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 applicant’s eligibility standards based on specified circumstances, including the applicant’s 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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_1D3FD932-430A-4602-A1BC-A093E69C533B">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:FAM:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'17.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17560.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 17560 of the
<ns0:DocName>Family Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_420A4505-4827-4AE4-9DA3-4F1179204FB3">
<ns0:Num>17560.</ns0:Num>
<ns0:LawSectionVersion id="id_AC5D3DFD-F0E9-437C-A7D4-C64514676035">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department shall 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. The program shall operate uniformly across California and shall take into consideration the needs of the children subject to the child support order and the obligor’s ability to pay.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the obligor owes current child support, 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.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Absent a finding of good cause, or a determination by the director or their designee that it is in the best interest of the state to do otherwise, any offer in compromise entered into pursuant to this section shall be rescinded, all compromised liabilities shall be reestablished notwithstanding any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise may be refunded, if either of the following occurs:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The department or local child support agency determines that the obligor did any of the following acts
regarding the offer in compromise:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Concealed from the department or local child support agency any income, assets, or other property belonging to the obligor or any reasonably anticipated receipt of income, assets, or other property.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The obligor fails to comply with any of the terms and conditions of the offer in compromise.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Pursuant to subdivision (k) of Section 17406, in no event may the administrator, director, or director’s designee within the department, 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.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Subject to the requirements of this section, the director shall delegate to the administrator of a local child support agency the authority to compromise an amount of child support arrears up to ten thousand dollars ($10,000), 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.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
For an amount to be compromised under this section, the following conditions shall exist:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The administrator, director or director’s designee within the department 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 paid pursuant to Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code in the absence of the compromise, based on the obligor’s ability to pay.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Acceptance of an offer in compromise shall be deemed to be in the
best interest of the state, absent a finding of good cause to the contrary, with regard to arrears that accrued as a result of a decrease in income when an obligor was a reservist or member of the National Guard, was activated to United States military service, and failed to modify the support order to reflect the reduction in income. Good cause to find that the compromise is not in the best interest of the state shall include circumstances in which the service member’s failure to seek, or delay in seeking, the modification were not reasonable under the circumstances faced by the service member. The director, no later than 90 days after the effective date of the act adding this subparagraph, shall establish rules that compromise, at a minimum, the amount of support that would not have accrued had the order been modified to reflect the reduced income earned during the period of active military service.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any other terms and conditions that the
director establishes that may include, but may not be limited to, paying current support in a timely manner, making lump-sum payments, and paying arrears in exchange for compromise of interest owed.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The obligor shall provide evidence of income and assets, including, but not limited to, wage stubs, tax returns, and bank statements as necessary to establish all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
That the amount set forth in the offer 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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
That the obligor has not withheld payment of child support in anticipation of the offers in compromise program.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Any offer in compromise entered into pursuant to this section shall be filed with the appropriate court. The local child support agency shall notify the court if the compromise is rescinded pursuant to subdivision (c).
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Any compromise of child support arrears pursuant to this section shall maximize to the greatest extent possible the state’s share of the federal performance incentives paid pursuant to the Child Support Performance and Incentive Act of 1998 and shall comply with federal law.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The department shall ensure uniform application of this section across the state.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_49D430DF-0F8E-4135-9327-0B4331B40710">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:FAM:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17560.5'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 17560.5 is added to the
<ns0:DocName>Family Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_BC838D8C-D5B5-4475-91A9-61B012D1A195">
<ns0:Num>17560.5.</ns0:Num>
<ns0:LawSectionVersion id="id_9131E5A9-1942-4F9C-9ADF-D2CA7421F6DB">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
To ensure that the compromise of arrears program authorized by Section 17560 operates uniformly throughout the state, any program established and operated by the department or delegated to the administrator of a local child support agency shall be subject to the requirements described in this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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 (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through a child support services letter or similar instruction until regulations are adopted.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department shall create uniform application forms to be used by local child support agencies subject to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The application shall not require the applicant to make an offer of repayment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The application shall inform the applicant of their right to use the complaint resolution process pursuant to Chapter 5 (commencing with Section 17800) of Division 17 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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The department shall create uniform notice requirements and procedures to be used by local child support agencies subject to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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 pursuant to Chapter 5 (commencing with Section 17800) of Division 17. The notice of action shall also including where applicants can find the uniform forms and procedures for the local child support agency’s complaint resolution process.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If an application is withdrawn or denied, or a repayment agreement is rescinded, there shall be no waiting period before the obligor can reapply.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
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 Sections 17560.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The department shall establish uniform eligibility and repayment standards subject to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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 the factors in paragraph (2) and provide an opportunity for the applicant to submit additional information and verification to support a lower repayment amount.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Anticipated income, payments or assets.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Anticipated collections, in the absence of a compromise.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Necessary expenditures not accounted for in the eligibility standards.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Age of the arrearage or other fees and costs.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Individual hardship circumstances.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Employment history and barriers.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Whether the order was based on imputed income.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Incarceration history.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The department shall create a uniform repayment agreement for local child support agencies to use subject to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The applicant shall receive a full and complete copy of the repayment agreement to review before signing.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall establish uniform standards for modification and rescission of repayment agreements.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_64ADEE48-4A55-4B1A-82FE-A24A8082DFEA">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>