Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB421 Compare Versions

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4-An Act
5-ENROLLED SENATE
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
32+
33+1st Session of the 58th Legislature (2021)
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35+ENGROSSED SENATE
636 BILL NO. 421 By: Rosino of the Senate
737
838 and
939
1040 Echols of the House
1141
1242
1343
1444
1545 An Act relating to child support; amending 43 O.S.
1646 2011, Sections 118A, as amended by Section 2, Chapter
1747 289, O.S.L. 2016, 118B, 118G and 118I, as amended by
1848 Section 4, Chapter 289, O.S.L. 2016 (43 O.S. Supp.
1949 2020, Sections 118A and 118I), which relate to
2050 definitions, computation of gross income, actual
2151 annualized child care expenses and modification;
2252 modifying definitions; modifying requirements for
2353 computation of gross income; establishing guidelines
2454 for computation of income for incarcerated parent;
2555 clarifying treatment of certain disability
2656 compensation; requiring use of certain schedule for
2757 determination of child care costs under certain
2858 circumstances; adding grounds for modification of
2959 child support orders; modifying effective dates for
3060 child support modification orders; creating certain
3161 rebuttable presumption; requiring abatement of child
3262 support obligation under certain circumstances;
3363 providing for reversion of certain obligation;
3464 providing exception; updating statutory references;
3565 and providing an effective date .
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41-SUBJECT: Child support
42-
4371 BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
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4598
46-ENR. S. B. NO. 421 Page 2
4799 SECTION 1. AMENDATORY 43 O.S. 2011, Section 118A, as
48100 amended by Section 2, Chapter 289, O.S.L. 2016 (43 O.S. Supp. 2020,
49101 Section 118A), is amended to read as follows:
50-
51102 Section 118A. As used in this act Section 118 et seq. of this
52103 title:
53-
54104 1. “Adjusted Gross Income ” (AGI) means the net determination of
55105 the income of a parent, calculated by modifying the gross income of
56106 the parent as follows:
57-
58107 a. adding to the gross income of the parent any Social
59108 Security benefit paid to t he child on the account of
60109 the parent,
61-
62110 b. deducting from gross income the amount of any support
63111 alimony arising in a prior case to the extent that
64112 payment is actually made,
65-
66113 c. deducting from gross income any deductions as set
67114 forth for other prior -born or after-born children for
68115 whom the parent is legally responsible and is actually
69116 supporting, pursuant to Section 118C of this title,
70117 and
71-
72118 d. deducting the amount of reasonable expenses of the
73119 parties attributable to debt service for preexisting,
74120 jointly acquired debt of the parents;
75-
76121 2. “Base child support obligation ” means the amount of support
77122 displayed on the Schedule of Basic Child Support Obligations which
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78150 corresponds to the combined AGI of both parents and the number of
79151 children for whom support is being determined. This amount is
80152 rebuttably presumed to be the appropriate amount of basic child
81153 support to be provided by both parents in the case immediately under
82154 consideration, prior to consideration of any adjustments for medical
83155 and child care costs, and any other additional expenses;
84-
85156 3. “Current monthly child support obligation ” means the base
86157 child support obligation and the proportional share of any medical
87158 insurance health care coverage, cash medical support and annualized
88159 child care costs;
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90-ENR. S. B. NO. 421 Page 3
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92160 4. “Custodial person” means a parent or third -party caretaker
93161 who has physical custody of a child more than one hundred eighty -two
94162 (182) days per year;
95-
96163 5. “Incarceration” means an obligor is in custody on a full-
97164 time basis in a local, state or federal correctiona l facility.
98165 Incarceration shall not include probation, parole, work release or
99166 any other detention alternative program that allows the obligor to
100167 be gainfully employed;
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102168 6. “Noncustodial parent” means a parent who has physical
103169 custody of a child one hundr ed eighty-two (182) days per year or
104170 less;
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106171 6. 7. “Obligor” means the person who is required to make
107172 payments under an order for support;
173+7. 8. “Obligee” or “person entitled” means:
108174
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111201 a. a person to whom a support debt or support obligation
112202 is owed,
113-
114203 b. the Department of Human Services or a public agency of
115204 another state that has the right to receive current or
116205 accrued support payments or that is providing support
117206 enforcement services, or
118-
119207 c. a person designated in a support order or as otherwise
120208 specified by the court;
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122209 8. 9. “Other contributions” means recurring monthly medical
123210 expenses and visitation transportation costs that are not included
124211 in the current monthly child support obligation;
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126212 9. 10. “Overnight” means the child is in the physical custody
127213 and control of a parent for an overnight period of at least twelve
128214 (12) hours, and that parent has made a reasonable expenditure of
129215 resources for the care of the child;
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131216 10. 11. “Parent” means an individual who has a parent -child
132217 relationship under the Uniform Parentage Act;
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136218 11. 12. “Parenting time adjustment ” means an adjustment to the
137219 base child support amount based upon parenting time; and
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139220 12. 13. “Payor” means any person or entity paying monies,
140221 income, or earnings to an obligor. In the case of a self -employed
141222 person, the “payor” and “obligor” may be the same person.
142-
143223 SECTION 2. AMENDATORY 43 O.S. 2011, Section 118B, is
144224 amended to read as follows:
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146252 Section 118B. A. As used in this act Section 118 et seq. of
147253 this title:
148-
149254 1. “Gross income” includes earned and passive income from any
150255 source, except as excluded in this section;
151-
152256 2. “Earned income” is defined as income received from labor or
153257 the sale of goods or services and includes, but is not limited to,
154258 income from:
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156259 a. salaries,
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158260 b. wages,
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160261 c. tips,
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162262 d. commissions,
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164263 e. bonuses,
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166264 f. severance pay, and
167-
168265 g. military pay, including hostile fire or imminent
169266 danger pay, combat pay, family separation pay, or
170267 hardship duty location pay; and
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172268 3. “Passive income” is defined as all other income and
173269 includes, but is not limited to, income from:
270+a. dividends,
271+b. pensions,
272+c. rent,
273+d. interest income,
274+e. trust income,
174275
175-a. dividends,
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179-b. pensions,
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181-c. rent,
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183-d. interest income,
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185-e. trust income,
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187302 f. support alimony being received from someone other than
188303 the other parent in this case,
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190304 g. annuities,
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192305 h. social security benefits,
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194306 i. workers’ compensation benefits,
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196307 j. unemployment insurance benefits,
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198308 k. disability insurance benefits,
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200309 l. gifts,
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202310 m. prizes,
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204311 n. gambling winnings,
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206312 o. lottery winnings, and
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208313 p. royalties.
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210314 B. Income specifically excluded is:
211-
212315 1. Actual child support received for children not before the
213316 court;
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215317 2. Adoption Assistance subsidy paid by the Department of Human
216318 Services;
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218319 3. Benefits received from means -tested public assistance
219320 programs including, but not limited to:
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222-ENR. S. B. NO. 421 Page 6
223321 a. Temporary Assistance for Needy Families (TANF),
224-
225322 b. Supplemental Security Income (SSI),
226-
227323 c. Food Stamps, and
228-
229324 d. General Assistance and State Supplemental Payments for
230325 Aged, Blind and the Disabled;
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232353 4. The income of the child from any source , including, but not
233354 limited to, trust income and social security b enefits drawn on the
234355 disability of the child; and
235-
236356 5. Payments received by the parent for the care of foster
237357 children.
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239358 C. Determining gross income.
240-
241359 1. For purposes of computing gross income of the parents, gross
242360 income shall include for each parent which ever is the most equitable
243361 of:
244-
245362 a. all actual current monthly gross income described in
246363 this section, plus such overtime and supplemental
247364 income as the court deems equitable appropriate,
248-
249365 b. the average of the gross monthly income for the time
250366 actually employed during the previous three (3) years
251367 year, or
252-
253368 c. the minimum wage paid for a forty -hour week, or
254-
255369 d. gross monthly income imputed as set forth in paragraph
256370 3 of this subsection D of this section.
257-
258371 2. If a parent is permanently physically or mentally
259372 incapacitated or incarcerated for more than one hundred eighty (180)
260373 consecutive days, the child support obligation shall be computed on
261374 the basis of actual current monthly gross income. For purposes of
262375 computing gross income of the parents in such circumstan ces, gross
263376 income shall not be imputed as set forth in paragraph 3 of this
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264404 subsection unless the obligor’s incarceration is a result of
265-
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267405 indirect contempt of court for failure to pay child support, the
268406 crime of omission to provide child support or for any o ffense for
269407 which the obligee’s dependent child or the oblige e was a victim.
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271408 D. 3. Imputed income.
272-
273409 1. Instead of using the actual If evidence of current or
274410 average income of a parent is not available or not the most
275411 equitable, the court may consider the following factors to impute
276412 the parent’s monthly gross income to a parent under the provisions
277413 of this section if equitable.
278-
279414 2. The following factors may be considered by the court when
280415 making a determination of willful and voluntary underemployment or
281416 unemployment:
282-
283417 a. the average wages and hours worked in the parent ’s
284418 particular industry and geographic area and the
285419 parent’s education, training, work experience and
286420 ability to work,
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288421 b. wages the parent could earn consistent with the
289422 minimum wage rate of not less than twenty-five (25)
290423 hours per week,
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292424 c. whether a parent has been determined by the court to
293425 be willfully or voluntarily underemployed or
294426 unemployed, including whether unemployment or
295427 underemployment for the purpose of pursuing additional
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296455 training or education is reasonable in light of the
297456 obligation of the parent to support his or her
298457 children and, to this end, whether the training or
299458 education will ultimately benefit the child in the
300459 case immediately under consideration by increasing the
301460 parent’s level of support for that child in the future
302461 or other voluntary action to reduce a parent ’s income,
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304462 b. when there is no reliable evidence of income,
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306463 c. the past and present employment of the parent,
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310464 d. the education, training, and ability to work of the
311465 parent,
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313466 e. the lifestyle of the parent , including ownership of
314467 valuable assets and resources, whether in the name of
315468 the parent or the current spouse of the parent, that
316469 appears inappropriate or unreasonable for the income
317470 claimed by the parent,
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319471 f.
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321472 e. the role of the parent as caretaker of a handicapped
322473 or seriously ill child of that parent, or any other
323474 handicapped or seriously ill relative for whom that
324475 parent has assumed the role of caretaker which
325476 eliminates or substantially reduces the ability of the
326477 parent to work outside the home, and the need of that
327478 parent to continue in that role in the future, or
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329506 g.
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331507 f. any additional factors deemed relevant to the
332508 particular circumstances of the case.
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334509 E. D. Self-employment income.
335-
336510 1. Income from self -employment includes income from, but not
337511 limited to, business operations, work as an independent contractor
338512 or consultant, sales of goods or services, and rental properties,
339513 less ordinary and reasonable expenses necessary to produce such
340514 income.
341-
342515 2. A determination of business income for tax purposes shall
343516 not control for purposes of determining a child support obligation.
344517 Amounts allowed by the Internal Revenue Service for accelerated
345518 depreciation or investment tax credits shall not be considered
346519 reasonable expenses.
347-
348520 3. The district or administrative court shall deduct from self -
349521 employment gross income an amount equal to the employer contribution
350522 for F.I.C.A. tax which an employer would withhold from an employee ’s
351523 earnings on an equivalent gross income amount.
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355524 F. E. Fringe benefits.
356-
357525 1. Fringe benefits for inclusion as income or in -kind
358526 remuneration received by a parent in the course of employment, or
359527 operation of a trade or business, shall be counted as income if they
360528 significantly reduce personal living expenses.
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362556 2. Such fringe benefits might include, but are not limited to,
363557 per diem or other allowance, company car, housing, or room and
364558 board.
365-
366559 3. Basic Allowance for Housing, Basic Allowance for
367560 Subsistence, and Variable Housing Allowances for service members are
368561 considered income for the purposes of determining child support.
369-
370562 4. Fringe benefits do not include employee benefits that are
371563 typically added to the salary, wage, or other compensation that a
372564 parent may receive as a standard added benefit, such as employer
373565 contributions to portions of health insurance premiums or employer
374566 contributions to a retirement or pension plan.
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376567 G. F. Social Security Title II benefits.
377-
378568 1. Social Security Title II benefits received by a child shall
379569 be included as income to the parent on whose account the benefit of
380570 the child is drawn and applied against the support obligation
381571 ordered to be paid by that parent. If the benefit of the child is
382572 drawn from the disability of the child, the benefit of the child is
383573 not added to the income of either parent and not deducted from the
384574 obligation of either parent.
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386575 2. Child support greater than social security benefit.
387-
388576 If the child support award due after calculating the child
389577 support guidelines is greater than the social security benefit
390578 received on behalf of the child, the obligor shall be required to
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391606 pay the amount exceeding the social security benefit as part of the
392607 child support award in the case.
393-
394608 3. Child support equal to or less than social security
395609 benefits.
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399610 a. If the child support award d ue after calculating the
400611 child support guidelines is less than or equal to the
401612 social security benefit received on behalf of the
402613 child, the child support obligation of that parent is
403614 met and no additional child support amount must be
404615 paid by that parent.
405-
406616 b. Any social security benefit amounts which are greater
407617 than the support ordered by the court shall be
408618 retained by the caretaker for the benefit of the child
409619 and shall not be used as a reason for decreasing the
410620 child support order or reducing arrearages.
411-
412621 c. The child support computation form shall include a
413622 notation regarding the use of social security benefits
414623 as offset.
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416624 4. a. Calculation of child support as provided in subsection
417625 F of this section shall be effective no earlier than
418626 the date on which the m otion to modify was filed.
419-
420627 b. The court may determine if, under the circumstances of
421628 the case, it is appropriate to credit social security
422629 benefits paid to the custodial person prior to a
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423657 modification of child support against the past -due
424658 child support obligation of the noncustodial parent.
425-
426659 c. The noncustodial parent shall not receive credit for
427660 any social security benefits paid directly to the
428661 child.
429-
430662 d. Any credit granted by the court pursuant to
431663 subparagraph b of this paragraph shall be limited to
432664 the time period during which the social security
433665 benefit was paid, or the time period covered by a lump
434666 sum for past social security benefits.
435-
436667 G. Veterans disability compensation benefits received by a
437668 child shall be treated in the same manner as Social Security Title
438669 II benefits as provided in subsection F of this section.
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442670 SECTION 3. AMENDATORY 43 O.S. 2011, Section 118G, is
443671 amended to read as follows:
444-
445672 Section 118G. A. The district or administrative court shall
446673 determine the actual an nualized child care expenses reasonably
447674 necessary to enable either or both parents to:
448-
449675 1. Be employed;
450-
451676 2. Seek employment; or
452-
453677 3. Attend school or training to enhance employment income.
454-
455678 B. When a parent is participating in the Department of Human
456679 Services child care subsidy program as provided under Section 230.50
457680 of Title 56 of the Oklahoma Statutes, the Child Care
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458708 Eligibility/Rates Schedule established by the Department shall be
459709 used to determine the amount to be treated as actual child care
460710 costs incurred. When applying the schedule to determine the family
461711 share copayment amount, the share of the base monthly obligation for
462712 child support of the non -responsible parent and the gross income of
463713 the obligee shall be considered as the monthly income of the
464714 obligee. The actual child care costs incurred shall be the family
465715 share copayment amount indicated on the schedule which shall be
466716 allocated and paid monthly in the same proportion as base child
467717 support. The Department of Human Services shall promulgate r ules,
468718 as necessary, to implement the provisions of this section.
469-
470719 C. The actual annualized child care costs incurred for the
471720 purposes authorized by this section shall be allocated and added to
472721 the base child support order , and shall be part of the final ch ild
473722 support order.
474-
475723 D. The district or administrative court shall require the
476724 parent incurring child care expenses to notify the obligor within
477725 forty-five (45) days of any change in the amount of the child care
478726 costs that would affect the annualized child care amount as
479727 determined in the order.
480-
481728 E. A parent may be allowed to provide child care incurred
482729 during employment, employment search , or while the other parent is
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485730 attending school or training if the court determines it would lead
486731 to a significant reduct ion in the actual annualized child care cost.
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487758
488759 SECTION 4. AMENDATORY 43 O.S. 2011, Section 118I, as
489760 amended by Section 4, Chapter 289, O.S.L. 2016 (43 O.S. Supp. 2020,
490761 Section 118I), is amended to read as follows:
491-
492762 Section 118I. A. 1. Child support orders may be modified upon
493763 a material change in circumstances which includes, but is not
494764 limited to, an increase or decrease in the needs of the child, an
495765 increase or decrease in the income of the parents, incarceration of
496766 a parent for a time period of more than one hundred eighty (180)
497767 consecutive days, changes in actual annualized child care expenses,
498768 changes in the cost of medical or dental insurance , or when one of
499769 the children in the child support order reaches the age of majority
500770 or otherwise ceases to be entitled to support pursuant to the
501771 support order. The court shall apply the principles of equity in
502772 modifying any child support order due to changes in the
503773 circumstances of either party as it relates to the best interests of
504774 the children.
505-
506775 2. Modification of the Child Support Guideline Schedule shall
507776 not alone be a material change in circumstances for child support
508777 orders.
509-
510778 3. An order of modification shall be effective upon on the
511779 first day of the month following the date the motion to modify was
512780 filed, unless the parties agree to the contrary another date or the
513781 court makes a specific finding of fact that the material change of
514782 circumstance did not occur until a later date.
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516810 B. 1. A child support order shall not be modified
517811 retroactively regardless of whether support was ordered in a
518812 temporary order, a decree of divorce, an order establishing
519813 paternity, modification of an order of support, or other action to
520814 establish or to enforce support.
521-
522815 2. All final orders shall state wheth er past-due support and
523816 interest have accrued pursuant to any temporary order and the amount
524817 due, if any; however, failure to state a past -due amount shall not
525818 bar collection of that amount after entry of the final support
526819 order.
527-
528-ENR. S. B. NO. 421 Page 13
529-
530820 C. The amount of a child support order shall not be construed
531821 to be an amount per child unless specified by the district or
532822 administrative court in the order. A child reaching the age of
533823 majority or otherwise ceasing to be entitled to support pursuant to
534824 the support order shall c onstitute a material change in
535825 circumstances, but shall not automatically serve to modify the
536826 order. When the last child of the parents ceases to be entitled to
537827 support, the child support obligation is automatically terminated as
538828 to prospective child supp ort only.
539-
540829 D. 1. When a child support order is entered or modified, the
541830 parents may agree, or the district or administrative court may
542831 require a periodic exchange of information for an informal review
543832 and adjustment process.
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545860 2. When an existing child sup port order does not contain a
546861 provision which requires an informal review and adjustment process,
547862 either parent may request the other parent to provide the
548863 information necessary for the informal review and adjustment
549864 process. Information shall be provided to the requesting parent
550865 within forty-five (45) days of the request.
551-
552866 3. Requested information may include verification of income,
553867 proof and cost of medical insurance of the children, and current and
554868 projected child care costs. If shared parenting time h as been
555869 awarded by the court, documentation of past and prospective
556870 overnight visits shall be exchanged.
557-
558871 4. Exchange of requested information may occur once a year or
559872 less often, by regular mail.
560-
561873 5. a. If the parents agree to a modification of a child
562874 support order, their agreement shall be in writing
563875 using standard modification forms and the child
564876 support computation form provided for in Section 120
565877 of Title 43 of the Oklahoma Statutes this title.
566-
567878 b. The standard modification forms and the standard child
568879 support computation form shall be submitted to the
569880 district or administrative court. Either court shall
570881 review the modification forms to confirm that the
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573882 child support obligation complies with the child
574883 support guidelines or, if agreed to by the parties,
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575911 the court may approve a deviation from the child
576912 support guidelines as provided in subsection B of
577913 Section 118H of this title. If the court approves the
578914 modification forms, they shall be filed with the
579915 court.
580-
581916 E. After November 1, 2021, there shall be a rebuttable
582917 presumption that an obligor who is incarcerated for a period of one
583918 hundred eighty (180) or more consecutive days is unable to pay child
584919 support.
585-
586920 1. The obligor’s child support obligation shall be abated
587921 without court action effective the first day of the month following
588922 the date of entry into the correctional facility or jail and shall
589923 not accrue for the duration of the incarceration unless the
590924 presumption is rebutted by a showing of means to pay as provided in
591925 Section 118B of this title.
592-
593926 2. Upon release from incarceration, the monthly child support
594927 obligation shall revert to the pre-incarceration order amount
595928 beginning the first day of the month following a lapse of ninety
596929 (90) calendar days after release from incarceration.
597-
598930 3. The abatement of a monthly support obligation under this
599931 subsection shall not affect any past-due support that has accrued
600932 prior to the abatement of the obligation.
601-
602933 4. If any of the crimes for which the obligor is incarcerated
603934 are a result of indirect contempt of court for failure to pay child
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604962 support, the crime of omission to provide child support or for any
605963 offense for which the obligee’s dependent child or the obligee was a
606964 victim, the abatement shall not be presumed and the child support
607965 obligation shall continue to accrue.
608-
609966 SECTION 5. This act shall become effective November 1, 2021.
610967
611-
612-ENR. S. B. NO. 421 Page 15
613-Passed the Senate the 2nd day of March, 2021.
614-
615-
616-
617- Presiding Officer of the Senate
618-
619-
620-Passed the House of Representative s the 21st day of April, 2021.
621-
622-
623-
624- Presiding Officer of the House
625- of Representatives
626-
627-OFFICE OF THE GOVERNOR
628-Received by the Office of the Governor this _______ _____________
629-day of _________________ __, 20_______, at _______ o'clock _______ M.
630-By: _______________________________ __
631-Approved by the Governor of the State of Oklahoma this _____ ____
632-day of _________________ __, 20_______, at _______ o'clock _______ M.
633-
634- _________________________________
635- Governor of the State of Oklahoma
636-
637-
638-OFFICE OF THE SECRETAR Y OF STATE
639-Received by the Office of the Secretary of State this _______ ___
640-day of __________________, 20 _______, at _______ o'clock _______ M.
641-By: _______________________________ __
968+COMMITTEE REPORT BY: COMMITTEE ON RU LES, dated 03/30/2021 - DO PASS.