First Substitute H.B. 348

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 26, 2014 at 2:37 PM by lerror. -->

Representative Keven J. Stratton proposes the following substitute bill:


             1     
CHILD SUPPORT AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Keven J. Stratton

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the Utah Child Support Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    describes conditions where income can and cannot be imputed to a parent.
             13      Money Appropriated in this Bill:
             14          None
             15      Other Special Clauses:
             16          None
             17      Utah Code Sections Affected:
             18      AMENDS:
             19           78B-12-203 , as last amended by Laws of Utah 2012, Chapter 41
             20     
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 78B-12-203 is amended to read:
             23           78B-12-203. Determination of gross income -- Imputed income.
             24          (1) As used in the guidelines, "gross income" includes prospective income from any
             25      source, including earned and nonearned income sources which may include salaries, wages,


             26      commissions, royalties, bonuses, rents, gifts from anyone, prizes, dividends, severance pay,
             27      pensions, interest, trust income, alimony from previous marriages, annuities, capital gains,
             28      Social Security benefits, workers' compensation benefits, unemployment compensation,
             29      income replacement disability insurance benefits, and payments from "nonmeans-tested"
             30      government programs.
             31          (2) Income from earned income sources is limited to the equivalent of one full-time
             32      40-hour job. If and only if during the time prior to the original support order, the parent
             33      normally and consistently worked more than 40 hours at the parent's job, the court may
             34      consider this extra time as a pattern in calculating the parent's ability to provide child support.
             35          (3) Notwithstanding Subsection (1), specifically excluded from gross income are:
             36          (a) cash assistance provided under Title 35A, Chapter 3, Part 3, Family Employment
             37      Program;
             38          (b) benefits received under a housing subsidy program, the Job Training Partnership
             39      Act, Supplemental Security Income, Social Security Disability Insurance, Medicaid, SNAP
             40      benefits, or General Assistance; and
             41          (c) other similar means-tested welfare benefits received by a parent.
             42          (4) (a) Gross income from self-employment or operation of a business shall be
             43      calculated by subtracting necessary expenses required for self-employment or business
             44      operation from gross receipts. The income and expenses from self-employment or operation of
             45      a business shall be reviewed to determine an appropriate level of gross income available to the
             46      parent to satisfy a child support award. Only those expenses necessary to allow the business to
             47      operate at a reasonable level may be deducted from gross receipts.
             48          (b) Gross income determined under this subsection may differ from the amount of
             49      business income determined for tax purposes.
             50          (5) (a) When possible, gross income should first be computed on an annual basis and
             51      then recalculated to determine the average gross monthly income.
             52          (b) Each parent shall provide verification of current income. Each parent shall provide
             53      year-to-date pay stubs or employer statements and complete copies of tax returns from at least
             54      the most recent year unless the court finds the verification is not reasonably available.
             55      Verification of income from records maintained by the Department of Workforce Services may
             56      be substituted for pay stubs, employer statements, and income tax returns.


             57          (c) Historical and current earnings shall be used to determine whether an
             58      underemployment or overemployment situation exists.
             59          (6) Gross income includes income imputed to the parent under Subsection (7).
             60          (7) (a) Income may not be imputed to a parent unless the parent stipulates to the
             61      amount imputed, the parent defaults, or, in contested cases, a hearing is held and the judge in a
             62      judicial proceeding or the presiding officer in an administrative proceeding enters findings of
             63      fact as to the evidentiary basis for the imputation.
             64          (b) If income is imputed to a parent, the income shall be based upon employment
             65      potential and probable earnings as derived from employment opportunities, work history,
             66      occupation qualifications, and prevailing earnings for persons of similar backgrounds in the
             67      community, or the median earning for persons in the same occupation in the same geographical
             68      area as found in the statistics maintained by the Bureau of Labor Statistics.
             69          (c) If a parent has no recent work history or a parent's occupation is unknown, income
             70      shall be imputed at least at the federal minimum wage for a 40-hour work week. To impute a
             71      greater income, the judge in a judicial proceeding or the presiding officer in an administrative
             72      proceeding shall enter specific findings of fact as to the evidentiary basis for the imputation.
             73          (d) Income may not be imputed if any of the following conditions exist and the
             74      condition is not of a temporary nature:
             75          (i) the reasonable costs of child care for the parents' minor children approach or equal
             76      the amount of income the custodial parent can earn;
             77          (ii) a parent is physically or mentally unable to earn minimum wage;
             78          (iii) a parent is engaged in career or occupational training to establish basic job skills;
             79      [or]
             80          (iv) unusual emotional or physical needs of a child require the custodial parent's
             81      presence in the home[.]; or
             82          (v) a parent has primarily been a stay-at-home parent for the purpose of providing
             83      primary care for a child during the course of the marriage, and one of the following exist:
             84          (A) a parent has no recent full time work history, the marriage lasted 10 years or more,
             85      and a judicial proceeding has not determined that the stay-at-home parent was at fault under
             86      Subsection 30-3-5 (8)(c); or
             87          (B) the parents agree not to impute income to the stay-at-home parent.


             88          (8) If Subsection (7)(d)(v)(A) or (B) is met and a H. [ stay-at-home ] .H parent
             88a      H. [ applies for ] receives .H
             89      assistance under Title 35A, Chapter 3, Employment Support Program, H. or the child becomes
             89a      subject to the care and custody of the state, .H income may be
             90      H. [ automatically ] .H imputed at the federal minimum wage for a 40-hour work week to
             90a      H. [ that ] either .H parent. A
             91      payor parent's alimony obligation may not be reduced by H. [ the ] this .H imputation.
             92          [(8)] (9) (a) Gross income may not include the earnings of a minor child who is the
             93      subject of a child support award nor benefits to a minor child in the child's own right such as
             94      Supplemental Security Income.
             95          (b) Social Security benefits received by a child due to the earnings of a parent shall be
             96      credited as child support to the parent upon whose earning record it is based, by crediting the
             97      amount against the potential obligation of that parent. Other unearned income of a child may
             98      be considered as income to a parent depending upon the circumstances of each case.


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