H.B. 348
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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
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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) (i) If a parent has no recent work history or a parent's occupation is unknown,
70 income shall be imputed at least at the federal minimum wage for a 40-hour work week. To
71 impute a greater income, the judge in a judicial proceeding or the presiding officer in an
72 administrative proceeding shall enter specific findings of fact as to the evidentiary basis for the
73 imputation.
74 (ii) If a parent has no full-time work history in the previous 10 years, federal minimum
75 wage for a 40-hour work week shall be the maximum amount imputed unless actual part-time
76 earnings in the most recent 10 years exceed that amount, then the actual part-time earnings may
77 be imputed.
78 (iii) If a parent has not been employed full time in the previous 10 years but has been
79 pursuing education or employment training for the purpose of becoming qualified for full-time
80 employment during the most recent five-year period prior to separation, then Subsection
81 (7)(c)(i) applies.
82 (d) Income may not be imputed if any of the following conditions exist and the
83 condition is not of a temporary nature:
84 (i) the reasonable costs of child care for the parents' minor children approach or equal
85 the amount of income the custodial parent can earn;
86 (ii) a parent is physically or mentally unable to earn minimum wage;
87 (iii) a parent is engaged in career or occupational training to establish basic job skills;
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89 (iv) unusual emotional or physical needs of a child require the custodial parent's
90 presence in the home[
91 (v) the parents agree to not impute income; or
92 (vi) a parent has primarily been a stay-at-home parent for the purpose of providing
93 primary care for a child during the course of the marriage, has not been found to be at fault
94 under Subsection 30-3-5 (8)(c), and the following exist:
95 (A) the marriage lasted 10 years or more; and
96 (B) the monthly combined adjusted gross income during the marriage was $5,000 or
97 more.
98 (8) (a) Gross income may not include the earnings of a minor child who is the subject
99 of a child support award nor benefits to a minor child in the child's own right such as
100 Supplemental Security Income.
101 (b) Social Security benefits received by a child due to the earnings of a parent shall be
102 credited as child support to the parent upon whose earning record it is based, by crediting the
103 amount against the potential obligation of that parent. Other unearned income of a child may
104 be considered as income to a parent depending upon the circumstances of each case.
Legislative Review Note
as of 2-6-14 6:05 AM