AB 573 (Kuehl), as enacted on October 3, 1997, made the following changes to California law:
SUBJECT: Child Support/Voluntary Referral To The FTB/Tax Priority/Employment Development Department, Department of Social Services & FTB Independent Contractor Study
Section 1088.7 is added to the Unemployment Insurance Code.
This act requires Employment Development Department, in consultation with FTB and Department of Social Services, to prepare and submit a report to the Governor and Legislature by June 30, 1998, that identifies possible methods of reporting income of independent contractors for purposes of collecting delinquent child support.
Section 19271.5 is added to the Revenue and Taxation Code.
This act, effective January 1, 1998, allows district attorneys to voluntarily refer current child support orders to the FTB for collection. To collect these amounts, FTB would issue wage assignments just as the district attorney otherwise would have. Any services or information available to district attorneys or Department of Social Services for child support enforcement or parent location is available to FTB for purposes of collecting current support orders. If a support order referred to FTB for collection becomes delinquent, FTB has the authority to collect the delinquency as though it was a final delinquent personal income tax.
Referrals of current orders must be transmitted in the form and manner prescribed by FTB and may be phased in by FTB as administratively necessary.
If at the time of referral or any time thereafter, the obligated parent owes final delinquent personal income taxes, FTB is precluded from collecting the child support obligation until the tax debt is satisfied, discharged from accountability or the individual is making installment payments toward satisfaction of the tax debt.
This act requires Employment Development Department, in consultation with FTB and Department of Social Services, to prepare and submit a report to the Governor and Legislature by June 30, 1998, that identifies possible methods of reporting income of independent contractors for purposes of collecting delinquent child support.