California AB 2395

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.