COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         5127-01

Bill No.:          HB 2322

Subject:           Children and Minors; Family Law; Courts

Type:              Original

Date:               April 14, 2008

Bill Summary:            The proposal allows a person against whom a judgment of paternity and support has been entered to petition the circuit court to set aside the judgment in the interest of justice based on certain facts.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.

☒ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☒ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health and Senior Services assume the proposal would have no fiscal impact on their agency.

Officials from the Office of the Attorney General assume any potential costs arising from this proposal can be absorbed within existing resources.

Officials from the Office of State Courts Administrator assume the proposed legislation would have no fiscal impact on the courts.

Officials from the Department of Social Services (DOS) – Family Support Division (FSD) assume the proposed legislation will allow the court to set aside a previous judgment of paternity and support and extinguish any existing child support arrearage when a properly completed genetic test shows that the party ordered to pay support is not the child’s father.

In actions where the court grants relief by setting aside a previous judgment of paternity and support, the FSD would be required to cease enforcement services on the case and begin action to again establish paternity for the child(ren) in question, assuming the custodial parent/custodian continues to receive the FSD’s services. The FSD believes that these activities can be completed with existing staff.

The proposed legislation provides that any existing child support arrearages shall be extinguished in cases where the court grants relief from the paternity judgment and support order. An undeterminable amount of past-due support assigned to the state for periods when children received public assistance would no longer be due the state in such actions.

The proposed legislation does not address whether relief from the paternity judgment will create a cause of action to recover support that was previously paid under the order. If such actions are allowed, the FSD will have an unknown liability for support that was collected and/or retained by the FSD.

If the state was determined to be liable for support collected and/or retained by the FSD, the amount of liability would be unknown. Therefore, the fiscal impact to FSD is as follows:

ASSUMPTION (continued)

a.         For the collections that were retained by the division, the liability incurred would be:

            1)        Unknown greater than $34,000 Child Support Enforcement (CSEC) Fund*; and             2)        Unknown greater than $66,000 Federal Funds.

b.         For the collections that were collected and passed on to families, the liability incurred would be unknown greater than $100,000 General Revenue.

c.         The total impact is:

            1)        Unknown greater than $100,000 General Revenue;

            2)        Unknown greater than $34,000 CSEC; and

            3)        Unknown greater than $66,000 Federal Funds. 

                        Total impact on all funds is unknown greater than $200,000

*          Depending on the amount of lost CSEC, the DOS may need to request General Revenue to replace lost CSEC Funds. CSEC Funds are currently fully utilized to operate the child support program every year. Any significant loss of CSEC would have to be replaced by General Revenue to continue the current level of operation of the child support program.

Oversight assumes it is unknown whether the state would be liable for support collected and/or retained by the Department of Social Services. Therefore, Oversight has reflected the fiscal impact as $0 or (Unknown).

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

The proposed legislation allows a person against whom a judgment of paternity and support has been entered to petition the circuit court to set aside the judgment. A court determination of non-paternity requires the cancellation of the child support order and arrears and the modification of the child’s birth certificate accordingly. An action for paternity determination may be

brought at any time.

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

Office of the Attorney General

Office of State Courts Administrator

Department of Health and Senior Services

Department of Social Services

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 14, 2008