Bill Summary – FastDemocracy

H-2678.2
                           SUBSTITUTE HOUSE BILL 2254
     State of Washington         68th Legislature       2024 Regular Session
     By House Civil Rights & Judiciary (originally            sponsored   by
     Representatives Walen, Reeves, Reed, and Springer)
     READ FIRST TIME 01/29/24.
      AN ACT Relating to implementing recommendations of the 2023 child
  support schedule work group; amending RCW 26.19.065, 26.19.071,
  26.19.080, 26.09.170, 26.23.050, 74.20A.055, 74.20A.056, 74.20A.059,
  and 26.19.020; reenacting and amending RCW 26.09.004; adding new
  sections to chapter 26.09 RCW; creating new sections; providing
  effective dates; and providing an expiration date.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1. RCW 26.19.065 and 2018 c 150 s 401 are each amended to
 read as follows:
     (1) Limit at ((forty-five)) 45 percent of a parent's net income.
 Neither parent's child support obligation owed for all his or her
 biological or legal children may exceed ((forty-five)) 45 percent of
 net income except for good cause shown.
     (a) Each child is entitled to a pro rata share of the income
 available for support, but the court only applies the pro rata share
 to the children in the case before the court.
     (b) Before determining whether to apply the ((forty-five)) 45
 percent limitation, the court must consider whether it would be
 unjust to apply the limitation after considering the best interests
 of the child and the circumstances of each parent. Such circumstances
 include, but are not limited to, leaving insufficient funds in the
                                       p. 1                         SHB 2254
 custodial parent's household to meet the basic needs of the child,
 comparative   hardship  to   the   affected  households,   assets or
 liabilities, and any involuntary limits on either parent's earning
 capacity including incarceration, disabilities, or incapacity.
     (c) Good cause includes, but is not limited to, possession of
 substantial wealth, children with day care expenses, special medical
 need, educational need, psychological need, and larger families.
     (2) Presumptive minimum support obligation. (a) When a parent's
 monthly net income is below ((one hundred twenty-five)) 180 percent
 of the federal poverty guideline for a one-person family, a support
 order of not less than ((fifty dollars)) $50 per child per month
 shall be entered unless the obligor parent establishes that it would
 be unjust to do so in that particular case. The decision whether
 there is a sufficient basis to deviate below the presumptive minimum
 payment must take into consideration the best interests of the child
 and the circumstances of each parent. Such circumstances can include
 leaving insufficient funds in the custodial parent's household to
 meet the basic needs of the child, comparative hardship to the
 affected households, assets or liabilities, and earning capacity.
     (b) The basic support obligation of the parent making the
 transfer payment, excluding health care, day care, and special child-
 rearing expenses, shall not reduce his or her net income below the
 self-support reserve of ((one hundred twenty-five)) 180 percent of
 the federal poverty level for a one-person family, except for the
 presumptive minimum payment of ((fifty dollars)) $50 per child per
 month or when it would be unjust to apply the self-support reserve
 limitation after considering the best interests of the child and the
 circumstances of each parent. Such circumstances include, but are not
 limited to, leaving insufficient funds in the custodial parent's
 household to meet the basic needs of the child, comparative hardship
 to the affected households, assets or liabilities, and earning
 capacity. This section shall not be construed to require monthly
 substantiation of income.
     (c)(i) When a parent's income is greater than the self-support
 reserve of 180 percent of the federal poverty level for a one-person
 household, neither parent's basic child support obligation owed for
 all of the parent's biological or legal children may reduce that
 parent's income below the self-support reserve of 180 percent of the
 federal poverty guideline for a one-person household except for the
 presumptive minimum of $50 per child per month.
                                     p. 2                         SHB 2254
     (ii) Each child is entitled to a pro rata share of the income
 available for support but the court only applies the pro rata share
 to the children in the case before the court. Before determining
 whether to apply this limitation, the court should consider whether
 it would be unjust to apply the limitation after considering the best
 interests of the child and the circumstances of each parent. Such
 circumstances may include leaving insufficient funds in the custodial
 parent's household to meet the basic needs of the child, comparative
 hardship to the affected households, assets or liabilities, and
 earning capacity.
     (3) Income above ((twelve thousand dollars)) $50,000. The
 economic table is presumptive for combined monthly net incomes up to
 and including ((twelve thousand dollars)) $50,000. When combined
 monthly net income exceeds ((twelve thousand dollars)) $50,000, the
 court may exceed the presumptive amount of support set for combined
 monthly net incomes of ((twelve thousand dollars)) $50,000 upon
 written findings of fact.
     Sec. 2.    RCW 26.19.071 and 2020 c 227 s 2 are each amended to
 read as follows:
     (1) Consideration of all income. All income and resources of each
 parent's household shall be disclosed and considered by the court
 when the court determines the child support obligation of each
 parent. Only the income of the parents of the children whose support
 is at issue shall be calculated for purposes of calculating the basic
 support obligation. Income and resources of any other person shall
 not be included in calculating the basic support obligation.
     (2) Verification of income. Tax returns for the preceding two
 years and current paystubs shall be provided to verify income and
 deductions. Other sufficient verification shall be required for
 income and deductions which do not appear on tax returns or paystubs.
     (3) Income sources included in gross monthly income. Except as
 specifically excluded in subsection (4) of this section, monthly
 gross income shall include income from any source, including:
     (a) Salaries;
     (b) Wages;
     (c) Commissions;
     (d) Deferred compensation;
     (e) Overtime, except as excluded for income in subsection (4)(i)
 of this section;
                                     p. 3                         SHB 2254
     (f) Contract-related benefits;
     (g) Income from second jobs, except as excluded for income in
 subsection (4)(i) of this section;
     (h) Dividends;
     (i) Interest;
     (j) Trust income;
     (k) Severance pay;
     (l) Annuities;
     (m) Capital gains;
     (n) Pension retirement benefits;
     (o) Workers' compensation;
     (p) Unemployment benefits;
     (q) Maintenance actually received;
     (r) Bonuses;
     (s) Social security benefits;
     (t) Disability insurance benefits; and
     (u) Income from self-employment, rent, royalties, contracts,
 proprietorship of a business, or joint ownership of a partnership or
 closely held corporation.
     (4) Income sources excluded from gross monthly income. The
 following income and resources shall be disclosed but shall not be
 included in gross income:
     (a) Income of a new spouse or new domestic partner or income of
 other adults in the household;
     (b) Child support received from other relationships;
     (c) Gifts and prizes;
     (d) Temporary assistance for needy families;
     (e) Supplemental security income;
     (f) Aged, blind, or disabled assistance benefits;
     (g) Pregnant women assistance benefits;
     (h) Food stamps; and
     (i) Overtime or income from second jobs beyond ((forty)) 40 hours
 per week averaged over a ((twelve)) 12-month period worked to provide
 for a current family's needs, to retire past relationship debts, or
 to retire child support debt, when the court finds the income will
 cease when the party has paid off his or her debts.
     Receipt of income and resources from temporary assistance for
 needy families, supplemental security income, aged, blind, or
 disabled assistance benefits, and food stamps shall not be a reason
 to deviate from the standard calculation.
                                     p. 4                         SHB 2254
     (5) Determination of net income. The following expenses shall be
 disclosed and deducted from gross monthly income to calculate net
 monthly income:
     (a) Federal and state income taxes;
     (b) Federal insurance contributions act deductions;
     (c) Mandatory pension plan payments;
     (d) Mandatory union or professional dues;
     (e) Other mandatory state deductions, such as mandatory state
 insurance premiums actually paid, including for the paid family and
 medical leave program and long-term services and supports trust
 program;
     (f) State industrial insurance premiums;
     (((f))) (g) Court-ordered maintenance to the extent actually
 paid;
     (((g))) (h) Up to ((five thousand dollars)) $5,000 per year in
 voluntary retirement contributions actually made if the contributions
 show a pattern of contributions during the one-year period preceding
 the action establishing the child support order unless there is a
 determination that the contributions were made for the purpose of
 reducing child support; and
     (((h))) (i) Normal business expenses and self-employment taxes
 for self-employed persons. Justification shall be required for any
 business expense deduction about which there is disagreement.
     Items deducted from gross income under this subsection shall not
 be a reason to deviate from the standard calculation.
     (6) Imputation of income. The court shall impute income to a
 parent when the parent is voluntarily unemployed or voluntarily
 underemployed. The court shall determine whether the parent is
 voluntarily underemployed or voluntarily unemployed based upon that
 parent's assets, residence, employment and earnings history, job
 skills, educational attainment, literacy, health, age, criminal
 record, dependency court obligations, and other employment barriers,
 record of seeking work, the local job market, the availability of
 employers willing to hire the parent, the prevailing earnings level
 in the local community, or any other relevant factors. A court shall
 not impute income to a parent who is gainfully employed on a full-
 time basis, unless the court finds that the parent is voluntarily
 underemployed and finds that the parent is purposely underemployed to
 reduce the parent's child support obligation. Income shall not be
 imputed for an unemployable parent. Income shall not be imputed to a
                                     p. 5                         SHB 2254
 parent to the extent the parent is unemployed or significantly
 underemployed due to the parent's efforts to comply with court-
 ordered reunification efforts under chapter 13.34 RCW or under a
 voluntary placement agreement with an agency supervising the child.
     (a) Except as provided in (b) of this subsection, in the absence
 of records of a parent's actual earnings, the court shall impute a
 parent's income in the following order of priority:
     (i) Full-time earnings at the current rate of pay;
     (ii) Full-time earnings at the historical rate of pay based on
 reliable information, such as employment security department data;
     (iii) Full-time earnings at a past rate of pay where information
 is incomplete or sporadic;
     (iv) Earnings of ((thirty-two)) 32 hours per week at minimum wage
 in the jurisdiction where the parent resides if the parent is on or
 recently coming off temporary assistance for needy families or
 recently coming off aged, blind, or disabled assistance benefits,
 pregnant women assistance benefits, essential needs and housing
 support, supplemental security income, or disability, has recently
 been released from incarceration, or is a recent high school
 graduate. Imputation of earnings at ((thirty-two)) 32 hours per week
 under this subsection is a rebuttable presumption;
     (v) Full-time earnings at minimum wage in the jurisdiction where
 the parent resides if the parent has a recent history of minimum wage
 earnings, has never been employed and has no earnings history, or has
 no significant earnings history;
     (vi) Median net monthly income of year-round full-time workers as
 derived from the United States bureau of census, current population
 reports, or such replacement report as published by the bureau of
 census.
     (b) When a parent is currently enrolled in high school full-time,
 the court shall consider the totality of the circumstances of both
 parents   when  determining   whether  each   parent  is   voluntarily
 unemployed or voluntarily underemployed. If a parent who is currently
 enrolled in high school is determined to be voluntarily unemployed or
 voluntarily underemployed, the court shall impute income at earnings
 of ((twenty)) 20 hours per week at minimum wage in the jurisdiction
 where that parent resides. Imputation of earnings at ((twenty)) 20
 hours per week under this subsection is a rebuttable presumption.
                                     p. 6                         SHB 2254
     Sec. 3. RCW 26.19.080 and 2009 c 84 s 5 are each amended to read
 as follows:
     (1) The basic child support obligation derived from the economic
 table shall be allocated between the parents based on each parent's
 share of the combined monthly net income.
     (2) Health care costs are not included in the economic table.
 Monthly health care costs shall be shared by the parents in the same
 proportion as the basic child support obligation. Health care costs
 shall include, but not be limited to, medical, dental, orthodontia,
 vision,   chiropractic,   mental    health   treatment,   prescription
 medications, and other similar costs for care and treatment.
     (3) Day care and special child rearing expenses, such as tuition
 and long-distance transportation costs to and from the parents for
 visitation purposes, are not included in the economic table. These
 expenses shall be shared by the parents in the same proportion as the
 basic child support obligation. If an obligor pays court or
 administratively ordered day care or special child rearing expenses
 that are not actually incurred, the obligee must reimburse the
 obligor for the overpayment if the overpayment amounts to at least
 ((twenty)) 20 percent of the obligor's annual day care or special
 child rearing expenses. The obligor may institute an action in the
 superior court or file an application for an adjudicative hearing
 with the department of social and health services for reimbursement
 of day care and special child rearing expense overpayments that
 amount to ((twenty)) 20 percent or more of the obligor's annual day
 care and special child rearing expenses. Any ordered overpayment
 reimbursement shall be applied first as an offset to child support
 arrearages of the obligor. If the obligor does not have child support
 arrearages, the reimbursement may be in the form of a direct
 reimbursement by the obligee or a credit against the obligor's future
 support payments. If the reimbursement is in the form of a credit
 against the obligor's future child support payments, the credit shall
 be spread equally over a ((twelve)) 12-month period. Absent agreement
 of the obligee, nothing in this section entitles an obligor to pay
 more than his or her proportionate share of day care or other special
 child rearing expenses in advance and then deduct the overpayment
 from future support transfer payments.
     (4) Mandatory educational expenses and optional educational
 expenses are not included in the economic table. These expenses must
                                     p. 7                         SHB 2254
  be shared by the parents in the same proportion as the basic child
  support obligation.
      (5) The court may exercise its discretion to determine the
  necessity for and the reasonableness of all amounts ordered in excess
  of the basic child support obligation.
     Sec. 4. RCW 26.09.004 and 2009 c 502 s 1 are each reenacted and
 amended to read as follows:
     The definitions in this section apply throughout this chapter.
     (1) "Department" means the department of social and health
 services.
     (2) "Incapacitation" or "incapacitated" means the inability to
 pay child support due to participation in court-ordered treatment for
 a behavioral health disorder issued under chapter 71.05 RCW.
     (3) "Military duties potentially impacting parenting functions"
 means those obligations imposed, voluntarily or involuntarily, on a
 parent serving in the armed forces that may interfere with that
 parent's abilities to perform his or her parenti