SS/HCS/HB 411 - This act, mandated by recent federal law, makes significant changes in how the state enforces child support obligations.

SOCIAL SECURITY NUMBERS: Social security numbers shall be included in various public documents, such as affidavits of paternity, professional licenses, marriage licenses and divorce decrees, and death certificates in order to better track individuals who owe child support.

ESTABLISHING PATERNITY: Paternity may only be established by an unmarried person if: 1) such person completes an acknowledgment of paternity; or 2) the court or the Division of Child Support Enforcement (Division) determines that such person is the parent. A person shall receive notice of parental rights and obligations before acknowledging paternity. If such acknowledgement is not rescinded within 60 days of signing or of an administrative or judicial child support proceeding, it may only be challenged in court on the basis of fraud, duress or material mistake of fact. Intentional misidentification of another person as parent constitutes perjury. A party no longer has the right to a jury trial in a paternity proceeding.

APPLICANTS FOR PUBLIC ASSISTANCE: An applicant for public assistance shall cooperate with the Division in providing the name and other information about the noncustodial parent to the Division. Such applicant shall also assign rights to support to the Division. A person receiving public assistance who does not cooperate with the Division in establishing paternity shall lose cash benefits.

EMPLOYER RESPONSIBILITIES: An employer shall forward new hire information within 20 days after such hiring. This information shall be entered into the State Directory of New Hires. An employer who fails to forward such information is guilty of an infraction and may be fined up to $25 for each violation and $350 for an intentional violation in conspiracy with the employee.

The Division shall notify an obligor that a withholding of wages has commenced. The obligor may only challenge such withholding by alleging that the amount of withholding or the identity of the obligor is incorrect.

FINANCIAL INSTITUTIONS: The Division shall work with financial institutions to develop systems to allow for automated exchanges between obligors' accounts and the Division. The Division may issue liens against such accounts. A financial institution complying in good faith with a lien order or request for information is not liable for such action. The financial institution may petition a court for a determination of interests in a joint account.

LICENSE SUSPENSION AND REVOCATION: A court or the Director of the Division may order the suspension of an obligor's professional, business, motor vehicle or recreational license if: 1) the obligor owes past due support of $2,500 or three months of payments, whichever is less; or 2) the obligor fails to comply with a subpoena relating to a child support order or paternity proceeding.

An obligor has sixty days to respond to a notice of intent to suspend a license. If the obligor does not: 1) pay the past due support; 2) enter into a payment plan approved by the court or Division; 3) request a hearing; or 4) in the case of a subpoena, comply with the subpoena, the license shall be suspended.

The court may stay a license suspension if an obligor shows that such suspension would constitute a hardship to the obligor or the obligor's dependents or employees. Such stay shall terminate if the hardship ceases to exist. The court or Division may stay a suspension upon the obligor's entry into a payment plan, and shall terminate such stay if the obligor fails to abide by the terms of the plan.

The Division shall work with the Supreme Court to obtain a list of persons licensed to practice law. By July 1, 1998, the Court shall adopt a rule to suspend or sanction the law license of any person who owes back child support of $2,500 or three months of payments, whichever is less.

If a motor vehicle license is suspended pursuant to these provisions, the Department of Revenue shall not require filing of proof of financial responsibility.

CHILD SUPPORT PROCEEDINGS: The court, or Director of the Division, shall enter a temporary order of support while an action is pending if there is clear and convincing evidence establishing a presumption of paternity. In any proceeding where child support may be established or modified, the circuit clerk shall notify the affected parties of such proceeding, and shall mail a copy of any child support order within 14 days of its issuance.

The court shall modify a child support order that is not consistent with the Supreme Court guidelines.

The court with original jurisdiction over a dissolution proceeding may waive jurisdiction in a modification proceeding if retaining jurisdiction would clearly inconvenience any party.

INTERSTATE COOPERATION: The Division shall cooperate with requests to enforce an out of state support order and may request enforcement of a Missouri order in another state. In its request, the Division shall certify that it has met all procedural requirements in establishing such order and any arrearage amount. The Division may enter an order requiring genetic testing upon request of another state's IV-D agency.

DIVISION OF CHILD SUPPORT ENFORCEMENT: The Division shall have the following additional powers and duties: 1) enforce support orders against parents of a minor noncustodial parent if the custodial parent is receiving state assistance; 2) prevent an obligor from making fraudulent transfers to avoid support obligations; 3) ensure that a person applying for or receiving state assistance is cooperating with the Division by providing information about the obligor. The Division shall require that such cooperation include: 1) submitting to genetic tests and 2) appearing at interviews and hearings.

To carry out child support enforcement activities, the Director of the Division shall have the power to compel evidence and issue subpoenas. The Director shall require genetic testing upon request of a party alleging or denying paternity. The Director, or the court, may order an obligor who owes past due support to engage in work activities. The Director shall modify a child support order that differs from Supreme Court guidelines or if a cost of living adjustment is required.

If a custodial parent who is the obligee under a child support order transfers custody of the child to a relative without obtaining a modified order, the Division may, within 30 days, direct the obligor to send payments to such relative. If there is an assignment of support to a state agency, the Division shall instruct the obligor to send payments to such agency.

The Division may certify a person owing $5,000 or more in child support to the appropriate federal agency so that such person's passport is limited, revoked or denied. The Division shall report an obligor who has past due child support obligations to consumer reporting agencies. The noncustodial parent shall have an opportunity to challenge the accuracy of such information before it is sent.

STATE CASE REGISTRY: The Division shall establish a State Case Registry which shall contain records of: 1) each case where the Division is providing services and 2) each support order established or modified after October 1, 1998. Parties to a child support or paternity action shall file contact information with the court or Division to be placed in the Registry.

STATE DISBURSEMENT UNIT: The Division shall, by October 1, 1999, establish and operate a disbursement unit to collect and disburse child support payments. A Disbursement Unit Committee shall be established to determine how such unit should be organized. The disbursement unit shall distribute all child support payments within two days after receipt.

UNIFORM INTERSTATE FAMILY SUPPORT ACT: This federal uniform act, enacted in Missouri in 1996, is amended to reflect subsequent changes made to the uniform act last year.

The above provisions are nearly identical to SB 361 (1997).

WORKERS' COMPENSATION (SA 5): Allows a claimant to obtain information previously submitted to the Division of Workers' Compensation concerning the claimant's wage history and benefit payment history. Requires the Division to give the employer information previously submitted to the Division upon request.

CHILD SUPPORT AND CUSTODY GENERALLY (SA 2): Mere fact of custody at time of filing petition for dissolution does not create preference for award of custody. In addition to the current factors the court considers in awarding child support, the court shall consider: 1) the child's physical and legal custody arrangements; and 2) any tax credits, deductions and exemptions related to the child.

Child support payments shall abate, as ordered by a court or administrative body, during periods of thirty consecutive days or longer. Child support shall continue until age 21 for a child who continues to progress toward a high school degree and until age 22 for a child enrolled in college who completes at least 10 credits each term. A parent may choose to pay one-half of the child's tuition, room and board which payments will reduce or eliminate any child support obligations.

Child support guidelines promulgated by the Supreme Court shall, by July 1, 1998, be adjusted and shall calculate such guidelines including assumptions involving visitation. An order which deviates from the guidelines shall include specific written findings as to why such guidelines were not applied if requested by a party.

Intent of a party to move fifty miles or more away is a consideration in determining custody. Joint legal and physical custody is the preferred custodial arrangement. The burden of coming forward with evidence to support a different judgment is on the party opposing joint custody. A court must enter specific findings to support its decision if requested by a party. Visitation rights must be outlined in the order of the court. Relocation of fifty miles or more must be by consent of parties or order of the court.

Allows a pro se Family Access Motion to be filed for interference with or denial of visitation. Cases will be heard between fourteen and sixty days of service. Family Access Orders can include orders for enforcement by sheriff. Criminal penalties apply for repeated violations.

All counties are to have educational sessions for parents, for which the Supreme Court shall create guidelines. The above provisions are taken from SB 51.

A court shall not decide custody based upon the choice of education, and shall not order the custodial parent or guardian to enroll the child in any school. (SA 7)

WELFARE REFORM (SA 1): The following provisions were taken from HCS/SS#2/SCS/SBs 202, 23 & 183 - Adapts Missouri's public health and welfare statutes to comply with the mandates of the federal welfare reform act known as "The Personal Responsibility and Work Opportunity Reconciliation Act of 1996".

Creates the Missouri Workforce Policy Board. The purpose of the twenty-four member board shall be to advise the Governor and the General Assembly on statewide workforce development goals and objectives, and propose change to the workforce development system needed to educate and train Missourians to enter the workforce and to create a comprehensive strategic plan and system that encourages community-based service delivery.

Missouri will: (1) continue to operate a child support enforcement program; (2) continue to operate a foster care and adoption assistance program; (3) establish and enforce standards and procedures to ensure against program fraud; and (4) continue to operate the Missouri Families Mutual Responsibility Plan and the 21st Century Communities Waiver Programs granted under Section 1115 of the Social Security Act.

To the extent that The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is inconsistent with the state's welfare reform waivers, the state shall continue to apply the waivers.

The Department of Social Services shall administer a fund to be known as the "Missouri Families Work Program Fund". Moneys deposited in the fund shall equal 100% of the federal funds granted to the state by the United States Department of Health and Human Services.

The Department of Social Services shall collect and record data describing the demographics of persons applying for and receiving or not receiving public assistance. The data, without personal identification, shall be available to higher educational institutions and state agencies doing research on public assistance programs. The Office of Administration shall contract with an independent agency to do an annual analysis of the data and report on the performance of the public assistance system.

There will be a comprehensive evaluation of the Family Self- Sufficiency Program conducted by a competitively chosen independent and impartial contractor selected by the Commissioner of the Office of Administration. The evaluation shall include recommendations on whether the program should be continued and suggested improvement. Evaluations shall be completed every three years.

The Department of Social Services will contract for independent evaluation of all pilot programs and community-based models established in this act and shall report the results of these evaluations to the General Assembly biannually.

The Department shall provide a post-termination hearing within 30 days of the termination of benefits.

The Department shall identify applicants and recipients who are victims of family violence and refer these individuals for supportive domestic violence services to increase self- sufficiency and to determine if hardship exemptions from work requirements should be granted.

The act creates the Joint Legislative Welfare Reform and TANF Block Grant Oversight Committee. The committee is to be comprised of 7 members of the Senate and 7 members of the House. The Committee shall: (1) monitor the design and implementation of the provisions of the Personal Responsibility And Work Opportunity Reconciliation Act of 1996, as amended; and (2) prepare an annual review of the implementation of the state waivers and make recommendations upon such review to the General Assembly.

The Missouri General Revenue Maintenance of Effort Fund is created. The fund shall equal 100% of state funds expended in fiscal year 1994 on the aids to families with dependent children program, aid to families with dependent children related child care programs, the job opportunities and basic skills training program and emergency assistance programs.

The fund shall provide assistance to adults who are unable to meet the federal work requirements because of the incapacity of the adult caretaker to work or the incapacity of the caretaker's dependent.

The act creates the Family Investment Trust which consists of a public-private partnership to promote the healthy development and support of the needs of children and families living in Missouri communities by building and strengthening comprehensive community-based family and child support systems and interagency cooperation. The trust will consist of the Directors of the Departments of Elementary and Secondary Education, Health, Labor and Industrial Relations, Economic Development, Mental Health and Social Services; 6 members from the private sector with knowledge of community support systems and the needs of children and families to be appointed by the Governor; 3 members from the Senate; and 3 members from the House of Representatives.

Adults in families receiving assistance under the new Temporary Assistance to Needy Families (TANF) block grant program are required to participate in work activities. TANF block grant moneys will not be used to provide assistance to a family that includes an adult who has received assistance for five years, whether or not the benefits were received consecutively.

The Department of Social Services is authorized to establish eligibility requirements for the programs funded by the federal TANF dollars including income and asset limits. All recipients must meet the eligibility requirements created by the federal program. The Department may also deny benefits through the TANF program to specific individuals.

The Work First Program shall replace the Aid to Families with Dependent Children Program, the Job Opportunities and Basic Skills (JOBS) Program, and the Title IV-A Emergency Assistance Program. The Work First Program shall stress self-sufficiency through employment and shall require that adults be responsible for fulfilling their individual self-sufficiency plans.

The Child Assurance Program shall provide benefits to assure a reasonable standard of living to children who meet eligibility requirements. The Department of Social Services shall determine the amount necessary for a child age 1 through 5 and ages 6 through 18 to meet 100% of the federal poverty level. The Department shall then subtract the child support payments and the custodial parent's earned income from the monetary value determined to meet 100% of the federal poverty level. The state will then make up any difference between these values.

Deletes statutory reference to municipal and county welfare boards, except 2nd class boards that provide medical services. Replaces the term "aids to families with dependent children" in Missouri statutes with the term "Work First Programs" to reflect the change from the AFDC Program to the TANF Funded Program.

Allows the Department of Social Services to sanction those recipients of public assistance who are denied employment for failure to pass drug-tests for a minimum of 30 days and not more than 60 days for a first denial of employment. The Department may sanction a person who has been convicted of the possession, use or distribution of a controlled substance. Sanctions may not be imposed, however, for benefits provided through the Medicaid for pregnant women program or the Medicaid of children program, HIV positive individuals or individuals in recovery from or treatment for drug or alcohol addiction. The Department of Social Services may implement various pilot projects including: (a) development of wage supplement programs; however, no funding shall be assigned to any employer who terminates or lays off a person from the same or substantially equivalent job to create a vacancy to obtain wage supplements, and the Department of Labor shall provide grievance procedures (SA 4 to SA 1); (b) development of direct job placement programs; (c) development of Individual Development Accounts programs as described in federal law; and (d) development of projects in conjunction with Community Colleges and Vocational schools to develop a program to provide public assistance recipients education which will lead to full time employment with benefits.

Department of Social Services is to implement and enforce federal work requirements and mandated participation rates. The Department may sanction parents who receive benefits if minor dependent children do not attend school. Prior to imposing a sanction the Department shall make a reasonable effort to resolve disputes. The Department shall provide at least four times annually, and upon the request of the Immigration and Naturalization Service, the name, address and other identifying information of any individual the Department knows to be unlawfully in the United States. The Department shall provide Medicaid benefits to those people who meet the AFDC eligibility requirements of July 16, 1996 or other requirements set by the department. Adds Electronic Benefit Transfer language. (SA 1)

Establishes the Community Partnership Program, to be organized by the Department as a pilot program in two counties. Qualified individuals who elect to participate in the program shall contract with a community partnership organization of their choosing in order to distribute public assistance and provide services. The Division shall oversee the dispersal of funds and the procedures followed. (SA 8 to SA 1)

RULES: Substantive rulemaking authority under this section and rules promulgated under such authority shall expire on August 31, 1998. If challenged, the agency must demonstrate by a preponderance of the evidence that the rule is valid, authorized by law, not in conflict with any law and is not arbitrary and capricious. This provision shall terminate if legislation amending Section 536.024 has been signed into law prior to effective date of this act. (SA 6)

EMERGENCY CLAUSE: This act shall become effective on July 1, 1997 or upon passage and approval, whichever later occurs.

JOAN GUMMELS, JAMES KLAHR & CHERYL GRAZIER