PRINTER'S NO. 385

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 355 Session of 1985


        INTRODUCED BY McCLATCHY, PITTS, HAGARTY, FLICK, AFFLERBACH,
           ARTY, WASS, KASUNIC, E. Z. TAYLOR, NAHILL, BATTISTO, PERZEL,
           BURNS, SAURMAN, GEIST, STAIRS, MICOZZIE, SCHEETZ,
           L. E. SMITH, CIMINI, PHILLIPS, GREENWOOD, BIRMELIN, MERRY,
           OLASZ, JOHNSON, CLYMER, HONAMAN, NOYE, HERMAN, SIRIANNI,
           VROON, TRELLO, LANGTRY, D. W. SNYDER, LASHINGER, WOZNIAK,
           DeLUCA, GRUPPO, COLAFELLA, PETRONE AND LETTERMAN,
           FEBRUARY 13, 1985

        REFERRED TO COMMITTEE ON JUDICIARY, FEBRUARY 13, 1985

                                     AN ACT

     1  Providing for child support and for minimum mandatory support;
     2     allowing for financial hardship; and providing for shared
     3     custody.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Child Support
     8  Law.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "AFDC."  Aid to Families with Dependent Children.
    14     "Department."  The Department of Public Welfare of the
    15  Commonwealth.


     1     "Shared physical custody."  An arrangement in which the
     2  parents share physical custody so that both have custody of the
     3  child or children more than 30% of a 365-day period.
     4  Section 3.  Determination of support amount.
     5     (a)  Income of parents.--In determining the ability of
     6  parents to pay the mandatory minimum child support award and to
     7  calculate the actual monthly payments to be made by each parent,
     8  the annual gross income of each parent shall be determined and
     9  then adjusted to obtain the annual net disposable income. To
    10  determine and apportion the mandatory minimum child support
    11  award, the court shall also consider, to the extent consistent
    12  with the best interests of the child or children, the earning
    13  capacity of either or both parents.
    14     (b)  Income.--Income includes compensation for services,
    15  including fees, commissions and similar items, income derived
    16  from business, gains derived from dealings in property,
    17  interest, rents, royalties, dividends, annuities, income from
    18  life insurance and endowment contracts, pensions, income from
    19  discharge of indebtedness, distributive share of partnership
    20  gross income, income in respect of a decedent, income from an
    21  interest in an estate or trust, temporary and permanent
    22  disability benefits, workmen's compensation and unemployment
    23  compensation.
    24     (c)  Earning capacity.--To determine and apportion the
    25  mandatory minimum child support award at the AFDC level, the
    26  court shall also consider, to the extent consistent with the
    27  best interests of all of the children, the earning capacity of
    28  either or both parents.
    29     (d)  Exclusion of welfare benefits.--Annual gross income
    30  shall not include any income derived from child support payments
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     1  actually received and income derived from any public assistance
     2  program, eligibility for which is based on a determination of
     3  need.
     4     (e)  Computation of net disposable income.--The annual net
     5  disposable income of each parent shall be computed by deducting
     6  from his or her annual gross income the actual amounts
     7  attributable only to the following items, after which the
     8  remainder shall be adjusted to reflect the monthly net
     9  disposable income of each parent:
    10         (1)  The state and Federal income taxes attributed to the
    11     parent. Federal and state income tax deductions shall bear an
    12     accurate relationship to the tax status of the parties (that
    13     is, single, married, married filing separately, or head of
    14     household) and number of dependents.
    15         (2)  Deductions attributed to the employee's contribution
    16     or the self-employed worker's contribution pursuant to the
    17     Federal Insurance Contributions Act (FICA) (68A Stat.1, 26
    18     U.S.C. § 3101 et seq.), or an amount not to exceed that
    19     allowed under FICA for persons not subject to FICA, provided
    20     that the deducted amount is used to secure retirement or
    21     disability benefits for the parent.
    22         (3)  Deductions for mandatory union dues and retirement
    23     benefits, provided that they are required as a condition of
    24     employment.
    25         (4)  Deductions for health insurance premiums.
    26         (5)  Any child or spousal support actually being paid by
    27     the parent pursuant to a court order, to or for the benefit
    28     of any person who is not a subject of the award to be
    29     established by the court.
    30     (f)  Discovery.--For the purposes of verifying total gross
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     1  income and amounts allowed for deductions, copies of the
     2  parents' state income tax returns for the previous two years,
     3  copies of present wage stubs and any other relevant documents
     4  shall be subject to discovery by the parties. Further, the court
     5  may require copies of the parents' tax returns for the previous
     6  two years, copies of present wage stubs and such other
     7  documentation as it may deem necessary, including a current
     8  income and expense declaration in the form prescribed by the
     9  rules of court.
    10     (g)  Exclusion of separate property.--For the purpose of
    11  determining the parent's annual gross income, in calculating the
    12  mandatory minimum child support award, the court shall not
    13  include any portion of the earned income and income derived from
    14  the separate property of the current spouse or the nonmarital
    15  partner of either parent. This requirement does not apply to a
    16  child support obligation arising from the marriage between the
    17  obligated parents.
    18     (h)  Total number of children.--The court shall inquire of
    19  each party as to the total number of minor children he or she is
    20  legally obligated to support.
    21  Section 4.  Minimum mandatory support.
    22     (a)  Determination of amount.--The standard established by
    23  the department pursuant to the act of June 13, 1967 (P.L.31,
    24  No.21), known as the Public Welfare Code, establishes a minimum
    25  family support level based on the number of eligible needy
    26  persons in the family, and each parent's ability to pay a
    27  minimum mandatory amount of child support shall be determined in
    28  accord with the standards under the Public Welfare Code, as
    29  follows:
    30         (1)  The combined monthly net disposable income of both
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     1     parents shall be multiplied by the following percentage
     2     factors: 18% for one child; 27% for two children; 36% for
     3     three children; 40% for four children; and an additional 4%
     4     for each child thereafter, up to a total of ten children.
     5         (2)  If the resulting amount is less than the AFDC
     6     standard for the number of children involved, the court shall
     7     find that the parents are unable to pay at the level of the
     8     children's portion of the AFDC standard and shall set a
     9     minimum award according to the combined monthly net
    10     disposable income and the percentages set forth above.
    11         (3)  If the resulting amount is at, or greater than, the
    12     AFDC standard for the same number of children, the court
    13     shall order a minimum award that equals the AFDC standard.
    14     (b)  AFDC standard.--The AFDC standard for the number of
    15  children to be supported shall be the minimum basic standard of
    16  adequate care specified in the regulations of the department for
    17  the number of children to be supported.
    18     (c)  Contribution of each parent.--The amount each parent
    19  shall contribute to the mandatory minimum award shall be
    20  determined by multiplying the minimum award by the proportionate
    21  share of each parent's contribution to their combined net
    22  disposable income. If more than ten minor children are to be
    23  supported, the minimum award shall be the same as for ten
    24  children.
    25     (d)  Construction of section.--Nothing in this section shall
    26  be construed to affect the duty or ability of any public agency,
    27  pursuant to any other provision of law, to secure or bring suit
    28  for reimbursement of AFDC public assistance paid to a family
    29  unit, eligible therefor under the applicable provisions of law,
    30  in an amount not to exceed the total amount of aid actually
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     1  paid.
     2  Section 5.  Additional expenses.
     3     The mandatory minimum child support award established under
     4  this act is intended to assure adequate basic living expenses,
     5  including food, shelter, clothing, and reasonable and necessary
     6  medical expenses, for the supported children. The court shall
     7  not assume that any other costs related to the rearing of
     8  children are provided within the mandatory minimum award. The
     9  amount of the support determined to be the mandatory minimum
    10  shall not preclude the court from making higher support awards
    11  where the parents are capable of making such payments. In
    12  setting a higher level of child support, the court shall be
    13  guided by the criteria set forth in applicable statutes,
    14  relevant case law, and State and local child support guidelines
    15  not in conflict with the mandatory minimum award established by
    16  this act.
    17  Section 6.  Financial hardship.
    18     (a)  Deductions.--In the event that a parent is experiencing
    19  extreme financial hardship due to justifiable expenses resulting
    20  from the circumstances enumerated in this section, upon the
    21  request of a party, the court may allow such income deductions
    22  as may be necessary to accommodate those circumstances, in
    23  addition to the deductions specified in section 3(f).
    24     (b)  Hardship circumstances.--Circumstances evidencing
    25  hardship include the following:
    26         (1)  Extraordinary health expenses for which the parent
    27     is financially responsible.
    28         (2)  Uninsured catastrophic loss.
    29         (3)  The minimum basic living expenses of either parent's
    30     minor dependent children from other marriages or
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     1     relationships.
     2  The court, upon its own motion or upon the request of a party,
     3  may allow such income deductions as are necessary to accommodate
     4  these expenses.
     5     (c)  Reasons for deduction stated on record.--If deductions
     6  for hardship expenses are allowed, the court shall state on the
     7  record the reasons supporting the deductions, cite the
     8  documentation of the underlying facts and circumstances, and
     9  specify the amount of deductions allowed. Whenever possible, the
    10  court shall specify the duration that any deduction shall be in
    11  effect.
    12     (d)  Minimum needs.--The court shall not order a child
    13  support award that would reduce a parent's net income to an
    14  amount less than that established for the needs of one person by
    15  the regulation of the department.
    16  Section 7.  Health insurance.
    17     Health insurance coverage for the supported children shall be
    18  maintained by either or both parents if that insurance is
    19  available at no cost or at nominal cost to the parent or
    20  parents. This provision shall apply in all cases, irrespective
    21  of the amount of the award. Any parent so responsible shall
    22  certify such coverage to the court.
    23  Section 8.  Shared custody arrangements.
    24     Except when a child or children are receiving an AFDC grant,
    25  upon request, the court may take into consideration expenses
    26  incurred and savings resulting from shared physical custody
    27  arrangements in determining the pro rata share of the mandatory
    28  minimum child support award to be allocated to each parent.
    29  Section 9.  Application of act.
    30     This act shall apply to all actions for child support filed
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     1  on and after the effective date hereof.
     2  Section 10.  Effective date.
     3     This act shall take effect in 60 days.


















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