COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3972H.02C Bill No.:HCS for HB 2148 Subject:Children and Minors; Courts; Domestic Relations Type:Original Date:April 24, 2024Bill Summary:This proposal specifies that a parent's obligation to pay child support
terminates when the child turns 18 or graduates from high school with
certain exceptions.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027General ($40,869) to ($76,680)($8,378) to ($79,999)($8,588) to ($80,209)Total Estimated Net
Effect on General
Revenue($40,869) to ($76,680)($8,378) to ($79,999)($8,588) to ($80,209)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Federal Funds*$0$0$0Total Estimated Net
Effect on All Federal
Funds $0$0$0
* Income and expenses estimated at $79,000 in FY 2025; $16,000 annually beginning in FY
2026 and net to $0.
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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FISCAL ANALYSIS
ASSUMPTION
§§210.854, 452.340 and 454.470 – Termination of a parent's obligation to pay child support
Officials from the Department of Social Services (DSS), Family Support Division (FSD) state
proposed §452.340.3 provides that the child support obligation terminates when a child reaches
age 18 or receives a high school diploma, whichever is later, unless the child support order
specifically extends the obligation because the child is physically or mentally incapacitated
pursuant to §452.340.4. The provisions of proposed §452.340.3 shall become effective for all
future court orders issued on or after January 1, 2025.
Proposed §452.340.11 states that the child support obligation shall terminate without further
judicial or administrative process when the child reaches age eighteen or receives a high school
diploma, whichever occurs later, unless the court extends the obligation because the child is
physically or mentally incapacitated. The provisions of proposed §452.340.11 shall become
effective for all future court orders issued on or after January 1, 2025.
The proposed language in §452.340.3 (5) makes the provision applicable only to orders issued on
or after January 1, 2025. The proposed addition of the language in §452.340.3(5) and the
removal of language that currently exists in §§452.340.3(6), 452.340.5 and 452.340.11(1) that
allows support to continue past age 18, appears as written, to eliminate the termination of support
statute for orders entered prior to January 1, 2025, except for §452.340.3 subdivisions (1)
through (4) which terminates support if a child dies, marries, enters active duty military or
becomes self-supporting.
The Family Support Division (FSD) child support (CS) program interprets that the intent of the
bill is to continue applying the existing §452.340 when determining whether current support
remains due for dependents on orders entered prior to January 1, 2025, and then apply the
proposed termination of support change on new or modified court orders entered on or after
January 1, 2025. However, based on the current proposed bill language, the FSD CS program
would not be able to do so.
The FSD CS program interprets the language in §§452.340.3 and 452.340.11 regarding
provisions being effective for all “future court orders” issued on or after January 1, 2025, to
include both newly established support orders and modification orders entered after January 1,
2025. The language “all future court orders” excludes administrative child support orders as
§454.460 defines court order as any judgment, decree, or order of any court which orders
payment of a set or determinable amount of support money. The FSD CS establishes and
modifies CS orders on IV-D cases through an administrative process. L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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Proposed §452.340.10 provides that if the court awards support on or after January 1, 2025, there
shall be a rebuttable presumption in cases where the court awards joint physical custody where
the child(ren) spend equal or substantially equal time with both parents that the child support
calculations begin with a 50% credit for overnight visitation or custody below the basic child
support amount authorized by the child support guidelines.
Missouri’s IV–D state plan is required to have in place child support guidelines in accordance
with 45 CFR 302.56. Existing §452.340.8 grants the Missouri Supreme Court the specific
rulemaking authority to establish child guidelines by which any award of child support is made
in judicial and administrative proceedings.
Supreme Court Rule 88.01 states that there is a rebuttable presumption that the amount of child
support calculated pursuant to Civil Procedure Form No. 14 is the correct amount of child
support to be awarded in any judicial or administrative proceeding. The directions for the Form
14 currently allow a 34% visitation credit for a parent who has 181-183 overnight visits with
his/her child (i.e., 50/50 visitation) and up to a 50% credit if the court determines the 34% credit
is unjust and inappropriate based upon the circumstances of the parties. A 50% visitation credit
may result in a $0 obligation.
Supreme Court Rule 41.02 provides that all rules promulgated by the Supreme Court supersede
all statutes and existing court rules that are inconsistent with the rules. If this bill becomes law
and it is determined that the statute changes the court rule, the FSD CS program would see a
fiscal impact under the changes to §452.340.10.
Under proposed §452.340.10, the Form 14 calculations would begin with a 50% credit in cases
in which the courts awards equal or substantially equal parenting time. Pursuant to §452.375.2,
there is a rebuttable presumption that an award of equal or approximately equal parenting time to
each parent is in the best interests of the child. Giving obligors a 50% visitation credit when
equal or substantially equal parenting time s awarded by the court may reduce the child support
obligations in Missouri judicial orders.
Since support amounts are assigned to the state when a parent and child receive Temporary
Assistance for Needy Families (TANF), and all new orders may be reduced by 50% visitation
credit, the state’s ability to recoup TANF payments will be reduced. The state retains
approximately 34% of all assigned collections in the Child Support Enforcement (CSEC) Fund; a
reduction in the ability to recoup TANF expenditures will reduce the amount of assigned
collections deposited into the CSEC fund that help fund the Child Support program.
In state fiscal year (SFY) 2023, there were 2,998 new judicial support orders entered in the
Missouri Automated Child Support System (MACSS). FSD’s caseload for SFY 2023 was
284,718 cases of which 3,395 (or 1.2%) were TANF cases. Therefore, of the 2,998 new judicial
orders entered in MACSS in SFY 2023, FSD assumes 1.2% or 36 were on TANF cases and the
judicial current support obligations were assigned to the state. The total assigned support that
accrued on those orders for SFY 2023 was $210,651. L.R. No. 3972H.02C
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Assuming the number of TANF recipients remains static, FSD estimates the amount of support
assigned to the state for the recoupment of TANF benefits could be reduced by up to $210,651
per year which results in $71,621 [$210,651 * 34% (The Federal FMAP rate
could potentially collect and retain as CSEC revenues.
The impact on CSEC revenues will be a range of $0 (no change in the obligation) up to $71,621
(if a 50% visitation credit results in a $0 obligation). This funding will need a general revenue
pickup to keep the Child Support program at the same level.
The changes to §452.340 would require the division to change its procedures and forms used to
determine if a child meets requirements for continued support. FSD CS believes that the intent of
the bill is to apply different termination of support criteria contingent on the date of the order or
modification being prior to or after January 1, 2025. Based on that assumption, FSD CS would
need to be able to differentiate between the requirements for each. The changes to §452.340.10
may also require the division to update form instructions for providing visitation credit. These
changes can be accomplished with existing staff.
The FSD child support program defers to ITSD for the costs of the termination of support
programming and form changes in the Missouri Automated Child Support System that would be
necessary under this proposed legislation.
The total fiscal impact to FSD CS under this proposed legislation is up to $71,621 reduced CSEC
collections under the 50% visitation credit changes included in §452.340.11.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by the DSS, FSD as $0 to ($35,811) in FY 2025 to reflect 6 months of
reduced CSEC collections; and $0 to ($71,621) in FY 2026 and FY 2027.
Officials from the Office of Administration (OA), Information Technology Services Division
(ITSD)/DSS state updates to the Missouri Automated Child Support System (MACSS) would be
required.
MACSS currently emancipates children at age 21 depending on the circumstances. The proposed
changes of this bill would involve new logic to derive emancipation eligibility based upon
whether the order was issued before or on/after January 1, 2025. The current set of emancipation
eligibility will apply for orders issued before this date and a newly coded set of emancipation
eligibility will apply for orders issued on or after this date. A new set of forms for the new
eligibility set is also anticipated.
The following system changes would need to be made:
terminate a dependent on an order when they turn 18 instead of 21.
L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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OA, ITSD/DSS assumes every new IT project/system will be bid out because all ITSD resources
are at full capacity. IT contract rates for MACSS are estimated at $105/hour. It is assumed the
necessary modifications will require 1,144.80 hours for a cost of $120,204 (1,144.80 * $105),
split 34% GR; 66% Federal.
Therefore, the total MACSS upgrades will cost $120,204 ($40,869 GR; $79,335 Federal) in FY
25 with ongoing expenses of $24,642 ($8,378 GR; $16,264 Federal) in FY 26 and $25,258
($8,588 GR; $16,670 Federal) in FY 27.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the
costs provided by ITSD/DSS for fiscal note purposes.
Officials from the University of Missouri System (UM) state the proposed legislation could
have a financial impact on the University of Missouri if applicants qualify for more
awards/grants (Pell Promise, etc.) due to the tax dependency exemption. Since UM has no way
of knowing how many current or future students this would impact, the impact amount cannot be
determined.
Oversight assumes the impact described by the UM system would not be a direct fiscal impact.
Officials from the Office of State Courts Administrator (OSCA) state there may be some
impact but there is no way to quantify that currently. Any significant changes will be reflected in
future budget requests.
Oversight does not have any information to the contrary. Therefore, Oversight assumes OSCA
will be able to perform any additional duties required by this proposal with current staff and
resources and will reflect no fiscal impact to the OSCA for fiscal note purposes. Oversight also
assumes OSCA may seek additional appropriations if the proposal results in a significant
increase in costs.
Officials from the Department of Elementary and Secondary Education, the Department of
Higher Education and Workforce Development, Missouri State University, Northwest
Missouri State University and the University Of Central Missouri
will have no fiscal impact on their respective organizations. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for
these agencies. L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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FISCAL IMPACT – State
Government
FY 2025
(6 Mo.)
FY 2026FY 2027GENERAL REVENUECosts – DSS, FSD (§452.340)
Reduced CSEC Collections p. 5$0 to ($35,811)$0 to ($71,621)$0 to ($71,621)
Costs – OA, ITSD/DSS (§452.340)
MACSS updates p. 5-6($40,869)($8,378)($8,588)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
($40,869) to
($76,680)
($8,378) to
($79,999)
($8,588) to
($80,209)
FEDERAL FUNDSIncome – OA, ITSD/DSS (§452.340)
Reimbursement for MACSS updates
p. 5-6$79,335$16,264$16,670
Costs – OA, ITSD/DSS (§452.340)
MACSS updates p. 5-6($79,335)($16,264)($16,670)
ESTIMATED NET EFFECT ON
FEDERAL FUNDS$0$0$0
FISCAL IMPACT – Local
Government
FY 2025
(6 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 3972H.02C
Bill No. HCS for HB 2148
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FISCAL DESCRIPTION
Currently, a parent's obligation to pay child support terminates when the child reaches 18 years
of age unless the child is enrolled in and attending a secondary school program of instruction and
other specified criteria are met, in which case the support obligation terminates when the child
reaches 21 years of age. This bill specifies that a parent's obligation to pay child support
terminates when a child reaches 18 years of age or receives a high school diploma or certificate
of graduation, unless the child is physically or mentally incapacitated from supporting himself or
herself and insolvent and unmarried. (§452.340)
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 Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Social Services
Office of the State Courts Administrator
University of Missouri System
Missouri State University
Northwest Missouri State University
University Of Central Missouri
Julie MorffRoss StropeDirectorAssistant DirectorApril 24, 2024April 24, 2024