Fiscal Note - SB 0051 - Modifies Child Custody and Child Support Statutes
L.R. NO. 0101-14
BILL NO. HCS for SS #3 for SCS for SB 51
SUBJECT: Custody/Visitation Issues & Parenting Plans
TYPE: Original
DATE: May 5, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue* ($4,187,502) to ($3,682,434) to ($3,823,854) to
($2,414,184) ($1,565,778) ($1,719,679)
Child Support
Enforcement Fund ($4,622,824) ($4,209,588) ($4,347,887)
Domestic Relations
Resolution Fund ($187,567) ($225,170) ($225,170)
Missouri Family $278,307 to $354,150 to $354,150 to
Access Fund** $1,791,556 $2,170,775 $2,170,775
Partial Estimated
Net Effect on All ($8,719,586) to ($7,763,042) to ($8,042,761) to
State Funds ($5,433,019) ($3,829,761) ($4,121,961)
*Court costs related to abatement not included.
**Costs could exceed $100,000; thus, reducing the above balance.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Federal ($9,047,894) ($8,250,922) ($8,524,940)
Federal* $0 or (Unknown) $0 or (Unknown) $0 or (Unknown)
Total Estimated
Net Effect on All ($9,047,894) or ($8,250,922) or ($8,524,940) or
Federal Funds (Unknown) (Unknown) (Unknown)
*Subject to interpretation of the Personal Responsibility and Work
Opportunity Act of 1996, as amended.
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government* $155,563 to $202,592 to $193,049 to
$1,270,638 $1,539,513 $1,528,659
*Unknown costs for law enforcement and prosecutors related to new crimes and
for judicial circuits related to mediation security. The total does not
reflect costs associated with pro se filings.
FISCAL ANALYSIS
ASSUMPTION
The Department of Revenue (DOR) does not expect to be fiscally or
administratively impacted by this proposal.
The Office of Administration (OA), Division of Accounting and the Department
of Labor & Industrial Relations (DOL) do not expect to be fiscally impacted.
The Department of Social Services, Division of Child Support Enforcement
(DCSE) anticipates substantial costs related to child support abatement.
DCSE assumes that the projected active caseloads for FY98, FY99 and FY00
would increase 5%, 10% and 15%, respectively. Of the projected caseload, it
was assumed that 25% of the cases would be affected by abatement of child
support related to a support order which did not include abatement or an
adjustment in the calculation. It was assumed that the parenting time of the
obligor which would be impacted would be equivalent to 10% of the year.
Therefore, child support collections would be lost on 10% of 77,092 cases in
FY98; 84,801 cases in FY99; and 97,521 cases in FY00. The decrease in TANF
collections from abatement of child support obligations would be
$2,050,377 in FY98; $2,193,903 in FY99; and $2,347,476 in FY00.
The loss of collections would also impact the general revenue (GR) fund.
Normally, any funds remaining in the Child Support Enforcement Fund, and not
expended for DCSE operating expenses, would eventually be transferred to GR.
Since there would be no funds transferred, DCSE would require funds from GR
to meet additional DCSE operating expenses. For purposes of this fiscal
note, the amount of GR need would be equal to the loss of child support
enforcement funds.
In addition to lost collections, DCSE would require additional FTE to handle
the abatements. It was estimated that a technician would spend an additional
one-half hour per month abating support for affected active cases. DCSE
believes this to be a conservative estimate with a child support technician
spending up to two hours per month abating support. At an additional
half-hour per month, this would equate to 462,551 man hours in FY98; 508,806
man hours in FY99; and 585,127 man hours in FY00 and the need for 224, 246
and 283, FTE respectively. For purposes of this fiscal note, DCSE assumes a
three year average of 313 FTE required to handle abatement of child support
obligations. Corresponding clerical (31 FTE) and supervisory support (31
FTE) would be needed as well.
Total costs would be $11,743,363 in FY98; $10,398,242 in FY99; and
$10,666,200 in FY00. Total TANF collections (i.e., collections distributed
based on certain percentages) adjusted for the decrease related to abatement
would be $79,964,684 in FY98; $85,562,213 in FY99; and $91,551,568 in FY00.
The Office of State Courts Administrator (CTS) assumes that it would be
fiscally impacted as this proposal would make numerous changes to the support
and custody statutes. The CTS assumes that there would be costs associated
with developing a handbook which would set forth the parties legal
obligations of a parenting plan. Developmental costs were estimated at
$8,000 with updates and reprints costing approximately $2,000 per year.
The proposal would mandate mediation in dissolution cases where children are
involved. In FY96, there were 7,932 contested dissolutions filed where
potential mediation could be ordered. The CTS has no way of determining the
number of cases in which children would have been involved, but for purposes
of this fiscal note, it assumed was that one - half of the dissolutions would
involve children and one-quarter of these persons would be unable to pay the
costs for mediation. The average mediation rate is $100 per hour
with an average of two hours spent on each case. This would result in
mediation costs of $198,300. Other mediation costs which could be incurred
would be for security during mediation. According to the CTS's juvenile
specialist, any circuit currently providing mediation services also provides
security at an average cost of $16.00 per hour. This proposal would mandate
that every circuit establish a mediation process. Given that the number of
hours would be unknown and the cost per hour could vary, this would be an
unknown cost at the local level.
The CTS assumes that the additional $10.00 surcharge accessed on dissolutions
filings could be used to cover the costs of mediation since the proposal
would provide that the local judicial circuits be reimbursed from the
Domestic Relations Resolution Fund, established within the CTS, for the costs
associated with the implementation of this proposal. The CTS contend that
this method of directing the monies from the fund is essentially unworkable.
However, in FY96, there were 33,013 dissolutions filed and assuming 100%
collections (there will be uncollectible cases, but there is no means to
estimate the number) income of $330,130 would be generated. FY98 was
prorated to ten months.
Other costs incurred at the local level would be for mediation cases
involving modification orders. In FY96, there were 9,521 motions to modify
filed. It was assumed that three-fourth or 7,141 cases would involve
children and that one-fourth of the 7,141 would be unable to pay for
mediation. Assuming that 1,785 cases would be unable to pay the estimated
cost of $200, total costs for mediation for these individuals would be
$357,000.
The proposal would also allow the filing of a pro se contempt order by the
non-custodial parent when visitation or physical and legal or physical or
legal custody rights have been denied. This could include a wide range of
custodial issues besides visitation, including medical, religious and
educational issues. A form for this purpose would be supplied by the CTS and
would not require the assistance of legal counsel. The costs associated with
the filings would be unknown.
The CTS expects to need additional FTE as a result of the pro se filings. In
FY96, there were 363,324 open child support trustee accounts and an unknown
number of other domestic relations cases involving children where visitation
could become an issue. The CTS estimates that it would take approximately
one-hour for each case including, assisting litigants in filing the motion;
processing the motion; rearranging dockets; creating and maintaining a
suspense file; preparing and distributing orders; collecting and disbursing
costs; and closing the case file. The CTS indicates that it would be
difficult to quantify costs without reliable information on the number of new
cases which could result. Therefore, the CTS estimates costs based on
several different percentages of the 363,324 open child support trustee
accounts (e.g., 5% of 363,324 = 18,166 new cases). For purposes of this
fiscal note, Oversight ranged the costs from the lowest percentage of new
cases (5%) to the highest percentage of new cases (25%). These numbers do
not take into account that the contempt motion could be filed each time
visitation is denied (i.e., more than once a year) or when other physical and
legal or physical or legal custody issues arise. Personal services costs
would be incurred at the state level, while the local level would be
responsible for expense & equipment costs. Expense & equipment costs were
estimated at $2,211 per FTE per year.
A $35 filing fee would be assessed when a pro se motion is filed with the fee
being collected by the court clerk and $25 of it being forwarded to the
Director of the Department of Revenue (DOR) for deposit into the "The
Missouri Family Access Fund" and $10 remaining with the court to cover court
costs associated with the filing. The expenditure of these monies has been
shown at the state level, but not at the local level. The proposal also
provides that a standard court cost be assessed in these cases. According to
the CTS, the standard court cost in a domestic relations case is generally a
little over $100. In FY96, there were 96,199 domestic relations cases filed.
Of this amount, $45 would be split 80% - 20% between the state and the local
level. The remaining would be distributed among a variety of entities. This
distribution has not been shown in the fiscal note.
Based on the above assumptions, Oversight has shown income to the Missouri
Family Access Fund resulting from the filing fee; the local level resulting
from the filing fee; the state level resulting from the $45 for court costs;
and the local level resulting from the $45 for court costs ranged from the
lowest percentage to the highest of cases estimated by the CTS.
The proposal provides that the all judicial circuits would establish a
program of educational sessions for parties involved in dissolutions or
post-judgement proceedings involving custody or support. Since the proposal
is silent on who would pay the costs of the educational sessions the CTS
assumes that the state or the counties would be required to pay. Ultimately
this means that the state would be responsible under the Hancock amendment.
It is conceivable that some of the costs could be covered by the new
surcharge, but for purposes of this fiscal note and based on the above
assumption concerning Hancock, Oversight has shown the costs for educational
sessions to the Missouri Family Access Fund.
The CTS assumes that section 452.340 relating to abatement of child support
in certain instances has the potential for creating a significant increase in
its workload. Not only does this section provide for abatement, but the
custodial parent could also be ordered to pay child support during certain
specified periods. The CTS has no way of calculating the number of times
this provision could be invoked, but there appears to be the potential for a
large number of actions.
The State Public Defender (SPD) assumes that existing staff could provide
representation for the cases which could arise involving indigent persons.
In FY96, the SPD provided representation in 2,159 criminal non-support cases
with a class A misdemeanor penalty. However, the enactment of more than one
similar proposal could require the SPD to request an increase in its'
appropriation for such purpose. Oversight has shown the fiscal impact as
zero.
The City of St. Louis Circuit Attorney indicates that the enactment of this
proposal could result in the state being out of compliance with the Personal
Responsibility and Work Opportunity Act of 1996, as amended. Specifically,
section 666 (a)(10)(A)(iii) prohibits conditioning a modification of an
existing order on a change of circumstances, if the order was entered more
than three years earlier. Therefore, if this proposal became law, the state
could lose a tremendous amount of federal funding. The Department of Social
Services, Division of Child Support Enforcement does not agree with this
conclusion.
The creation of three new misdemeanors, although impossible to predict the
number of alleged violations, could result in costs to the City of St. Louis
Police Department of approximately $100 per offense reported and
approximately $1,000 per offense in which charges are filed in court for the
circuit attorney's office. The actual cost would be dependent upon the
number of alleged incidents reported. However, in view of the fact that many
domestic relations matters involve hostility on the part of both parties, it
is conceivable that there could be an allegation of violation of one of these
sections in one out of three domestic cases.
The costs to the City of St. Louis for the crime of falsely claiming
delinquent child support would be approximately the same as indicated above.
It is assumed that the number of alleged violations could be approximately
50% of the number of cases in which enforcement action is attempted. This
percentage is based on the assumption that it is common for the delinquency
amount alleged to be inaccurate.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE
Income
Court Costs (80% of $45) $544,762 $653,976 $653,976
to to to
$2,723,841 $3,269,917 $3,269,917
Costs-Department of Social Services
Division of Child Support Enforcement (DCSE)
Lost Funds Required for
DCSE Operational Expenses ($4,622,824) ($4,209,588) ($4,347,887)
Costs-Office of State Courts Administrator (CTS)
Parenting Handbook ($8,000) ($2,000) ($2,000)
Costs-Office of State Courts Administrator (CTS)
Filing of Pro Se Motions for Visitation
Personal Service (5 FTE) ($78,923) ($97,115) ($99,543)
Fringe Benefits ($22,517) ($27,707) ($28,400)
Total Costs - CTS ($101,440) ($124,822) ($127,943)
to to to
Personal Service (25 FTE) ($394,617) ($485,573) ($497,712)
Fringe Benefits ($112,584) ($138,534) ($141,997)
Total Costs - CTS ($507,201) ($624,107) ($639,709)
Costs
Abatement of Support Unknown Unknown Unknown
PARTIAL ESTIMATED NET EFFECT ($4,187,502) ($3,682,434) ($3,823,854)
ON GENERAL REVENUE FUND to to to
($2,414,184) ($1,565,778) ($1,719,679)
CHILD SUPPORT ENFORCEMENT FUND
Loss
Child Support Collections ($630,081) ($674,186) ($721,379)
Costs-Department of Social Services
Division of Child Support Enforcement (DCSE)
Personal Service (113 FTE) ($2,270,542) ($2,327,305) ($2,385,488)
Fringe Benefits ($647,786) ($663,980) ($680,580)
Expense and Equipment ($1,074,416) ($544,117) ($560,440)
Total Costs-DCSE ($3,992,743) ($3,535,402) ($3,626,508)
ESTIMATED NET EFFECT ON
CHILD SUPPORT ENFORCEMENT
FUND ($4,622,824) ($4,209,588) ($4,347,887)
FEDERAL
Loss
Child Support Collections ($781,194) ($835,877) ($894,388)
(Fund 610)
Loss
Child Support Collections
(Fund 162) ($516,080) ($552,205) ($590,860)
Loss
Non-Compliance with Personal $0 $0 $0
Responsibility & Work Opportunity or or or
Act of 1996, as amended (Unknown) (Unknown) (Unknown)
SUBJECT TO INTERPRETATION
Costs-Department of Social Services
Division of Child Support Enforcement (DCSE)
Personal Service (169 FTE) ($4,407,522) ($4,517,710) ($4,630,653)
Fringe Benefits ($1,257,466) ($1,288,903) ($1,321,125)
Expense and Equipment ($2,085,632) ($1,056,227) ($1,087,914)
Total Costs-DCSE ($7,750,620) ($6,862,840) ($7,039,692)
ESTIMATED NET EFFECT ON
FEDERAL FUNDS ($9,047,894) ($8,250,922) ($8,524,940)
DOMESTIC RELATIONS
RESOLUTION FUND
Income
$10 Surcharge on
Dissolution Filings $274,998 $330,130 $330,130
Costs
Mediation Ordered in Dissolutions ($165,184) ($198,300) ($198,300)
Mediation Ordered in Modifications ($297,381) ($357,000) ($357,000)
ESTIMATED NET EFFECT
ON DOMESTIC RELATIONS
RESOLUTION FUND ($188,150) ($225,870) ($225,870)
MISSOURI FAMILY ACCESS FUND
Income
Pro Se Form Filing Fee $378,307 $454,150 $454,150
to to to
$1,891,556 $2,270,775 $2,270,775
Costs-Office of State Courts Administrator (CTS)
Additional Cases Filed, Education Sessions
and Determining Parenting Time ($100,000) ($100,000) ($100,000)
***COSTS COULD EXCEED THIS AMOUNT***
PARTIAL ESTIMATED NET EFFECT $278,307 $354,150 $354,150
ON MISSOURI FAMILY ACCESS FUND to to to
$1,791,556 $2,170,775 $2,170,775
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LOCAL GOVERNMENT
Income
Court Costs (20% of $45) $136,191 $163,494 $163,494
to to to
$680,960 $817,479 $817,479
Income
Pro Se Filing Fee $151,323 $181,660 $181,660
to to to
$756,622 $908,310 $908,310
Loss
Child Support Collections ($123,023) ($131,634) ($140,849)
(Incentives)
Costs-Office of State Courts Administrator (CTS)
Expense & Equipment (5 FTE) ($8,838) ($10,928) ($11,256)
to to to
Expense & Equipment (25 FTE) ($44,191) ($54,642) ($56,281)
Costs
Local Law Enforcement &
Prosecutors Related to New Crime (Unknown) (Unknown) (Unknown)
Costs
Judicial Circuits for
Mediation Security (Unknown) (Unknown) (Unknown)
Costs
Additional Pro Se Filings (Unknown) (Unknown) (Unknown)
Costs-St. Louis City
Circuit Attorney's Office
Creation of New Misdemeanors (Unknown) (Unknown) (Unknown)
PARTIAL ESTIMATED NET EFFECT $155,653 $202,592 $193,049
ON LOCAL GOVERNMENT to to to
$1,270,368 $1,539,513 $1,528,659
FISCAL IMPACT - Small Business
This proposal would not have a direct fiscal impact on small businesses.
DESCRIPTION
The proposal would modify child custody and child support statutes and allow
for parenting plans. The primary changes would be as follows:
Arbitration awards resulting from dissolutions where an issue regarding a
child would be subject to de novo judicial review.
Which parent has actual custody at the time of filing would not create a
preference for the court in adjudicating custody or parenting time issues.
Temporary parenting plans could be attached with a petition dissolving a
marriage if there are children eighteen or younger involved.
Any person intentionally making a false allegation of domestic abuse would be
guilty of a class A misdemeanor.
The Division of Family Services (DFS) would be required to provide
documentation, upon written request, to a parent of a child eligible to
receive medical assistance which would allow the child to obtain medical
assistance. Documentation would be required in cases of private insurance as
well.
In determining the obligations of both parents in dissolution proceedings,
the court would consider the submission of a parenting plan or the child's
physical and legal custody arrangements.
Child support would abate as ordered by the court or administrative body
during period of parenting time, temporary physical custody or visitation if
voluntarily relinquished and total at least 30 consecutive days or abatement
was not included in the support order.
The court could abate support or transfer custody or amend the parenting plan
if in the best interest of the children and the paren has acted without good
cause. Reasonable expenses, attorney's fees and court costs could be
assessed against the prevailing party.
Child support would continue as long as a child attends and satisfactorily
progresses toward completion of a secondary school program, but in no event
beyond the age of twenty-one.
Child support would continue if the child enrolls and completes at least 10
hours of classes at an institution of vocational or higher education. To
remain eligible, the child would be required to submit a transcript and
future enrollment documentation to the parent providing financial support.
One-half of colleges expenses could be paid in lieu of child support if a
full-time student and living away from the family residence.
By January 1, 1998, the Supreme Court would be required to list and explain
the relevant factors and assumptions used to calculate the child support
guidelines. Written findings would be required when deviation from the
application of the guidelines occurs.
The court could order costs and attorney fees to be paid from marital assets
The court could order parties to participate in a mediation program when
disputes cannot be resolved.
By July 1, 1998, the courts would be required to order the attendance of
educational sessions by parties involved in dissolutions or legal
separations.
Items to be included in a parenting plan would be as outlined in the proposal
with the permanent parenting plan including a provision for resolving
disputes with there being a presumption in favor of utilizing the mediation
process.
Any remedy provided by law could be utilized when a parent fails to comply
with the parenting plan or support order.
When determining the physical and legal custody arrangement or parenting
plan, the court would consider the relocation of the child and whether it
would detrimentally impact the other parent's parenting time or physical and
legal or physical or legal custody rights.
Physical and legal custody would be ordered in the best interest of the child
as provided in the proposal.
Parenting time or visitation would be denied to a non-custodial parent,
grandparent or great grandparent if convicted of an illegal sex act against a
victim under age eighteen until the offender has been discharged from
incarceration, paroled or on mandatory supervised release and completes a
court approved treatment program.
A permanent parenting plan would not require mutual decision making or
dispute resolution if a parent as engaged in any of the activities listed in
the proposal.
Conditions would be established when the parent's visitation or parenting
time could be subject to limitation.
Conditions would be established when the court could preclude or limit any
provision of a custody arrangement or parenting plan.
The court could deny visitation or parenting time if the parent is found
guilty or pled guilty to a felony violation of chapter 566 or section 568.020
when the child was the victim.
If parenting time, visitation or physical and legal or physical or legal
custody rights are denied the non-custodial parent, the non-custodial parent
could file a motion for contempt.
If the non-custodial parent has been granted time and fails to take such
time, the custodial parent could file a motion for enforcement or contempt by
filing a pro se form along with a $35 filing fee.
By July 1, 1998, the Office of State Courts Administrator would be required
to develop a form and instructions. Each court could establish procedures
for handling such motions, but the court would set the time and place for the
hearing to be completed within 60 days.
The intentional withholding of parenting time or physical and legal or
physical or legal custody would constitute a change of circumstances which
could justify a modification of custody.
The pro se filing fee would be split between the Missouri Family Access Fund
($25) and the court ($10) to cover associated costs.
The Missouri Family Access Fund would be established.
A $10 surcharge would be assessed on anyone filing a motion with the monies
being deposited into the Domestic Relations Resolution Fund to be created.
The Office of State Courts Administrator would be required to create or
approve a handbook setting forth the rights and responsibilities relating to
a parenting plan; explaining relevant child custody and child support law and
the pro se motions. The handbook would be distributed to each circuit court.
The circuit courts would be required, by July 1, 1998, to establish a program
of educational sessions.
Under certain conditions and when administrative orders are involved, the
Division of Child Support Enforcement could require a regular summary of
expenses paid.
By January 1, 1999, every judicial circuit would establish a mediation
process.
Making a willful and intentional false claim of delinquent child support
would be a class A misdemeanor.
The court could determine which parent could claim the children as tax
dependents.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Social Services
Office of State Courts Administrator
Department of Labor & Industrial Relations
Department of Revenue
Office of Administration
St. Louis City Circuit Attorney
State Public Defender
This Fiscal Note is not an official copy and should not be quoted or cited.