BILL REQ. #:  Z-0830.3 

Read first time 01/13/10.   Referred to Committee on Human Services & Corrections.

     AN ACT Relating to the calculation of child support; amending RCW 26.19.001, 26.19.011, 26.19.020, 26.19.035, 26.19.065, 26.19.071, 26.19.075, and 26.19.080; and adding a new section to chapter 26.19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 26.19.001 and 1988 c 275 s 1 are each amended to read as follows:
     The legislature intends, in establishing a child support schedule, to insure that child support orders are adequate to meet a child's basic needs and to provide additional child support commensurate with the parents' income, resources, and standard of living. The legislature also intends that the child support obligation should be equitably apportioned between the parents.
     The legislature finds that these goals will be best achieved by the adoption and use of a statewide child support schedule which is based on the income-shares model using economic estimates of the current cost of child rearing. The estimates are reviewed under RCW 26.19.025 in order to maintain a child support schedule that reflects current economic data. The Betson-Rothbarth estimate of the cost of child rearing and the Betson-Engel estimate of the cost of child rearing with necessary adjustments to remove costs of day care and health care have been averaged to arrive at the economic table set forth in RCW 26.19.020. Use of a statewide schedule will benefit children and their parents by:
     (1) Increasing the adequacy of child support orders through the use of economic data as the basis for establishing the child support schedule;
     (2) Increasing the equity of child support orders by providing for comparable orders in cases with similar circumstances; and
     (3) Reducing the adversarial nature of the proceedings by increasing voluntary settlements as a result of the greater predictability achieved by a uniform statewide child support schedule.

Sec. 2   RCW 26.19.011 and 2005 c 282 s 35 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Adjustment" means the application of the provisions of this chapter that result in a child support obligation that may be more or less than the standard calculation, but that are not deviations from the standard calculation as defined by RCW 26.19.075.
     (2) "Basic child support obligation" means the monthly child support obligation determined from the economic table based on the parties' combined monthly net income and the number of children (a) for whom support is owed, and (b) who are before the court.
     (((2))) (3) "Child support schedule" means the standards, economic table, worksheets, and instructions, as defined in this chapter.
     (((3))) (4) "Court" means a superior court judge, court commissioner, and presiding and reviewing officers who administratively determine or enforce child support orders.
     (((4))) (5) "Deviation" means a child support amount that differs from the standard calculation based on one or more of the factors set forth in RCW 26.19.075.
     (((5))) (6) "Economic table" means the child support table for the basic support obligation provided in RCW 26.19.020.
     (((6))) (7) "Instructions" means the instructions developed by the administrative office of the courts pursuant to RCW 26.19.050 for use in completing the worksheets.
     (((7))) (8) "Limits" or "limitations" means the lower and upper limits on the amount of the income of the obligor and obligee when the amount of child support to be paid would reduce or exceed the lower or upper limits provided in RCW 26.19.065. The application of the lower and upper limits standards based on the amount of the income of the obligor or the obligee in relation to the amount of the child support to be paid is not a deviation from the standard calculation.
     (9) "Self-support reserve" means one hundred twenty-five percent of the federal poverty guidelines for one person published annually in the federal register by the United States department of health and human services under the authority of 42 U.S.C. Sec. 9902(2).
     (10) "Standards" means the standards for determination of child support as provided in this chapter.
     (((8))) (11) "Standard calculation" means the presumptive amount of child support owed as determined from the child support schedule before the court considers any reasons for adjustments, limitations, or deviations.
     (((9))) (12) "Support transfer payment" means the amount of money the court orders one parent to pay to another parent or custodian for child support after determination of the standard calculation and adjustments, limitations, or deviations. If certain expenses or credits are expected to fluctuate and the order states a formula or percentage to determine the additional amount or credit on an ongoing basis, the term "support transfer payment" does not mean the additional amount or credit.
     (((10))) (13) "Worksheets" means the forms developed by the administrative office of the courts pursuant to RCW 26.19.050 for use in determining the amount of child support.

Sec. 3   RCW 26.19.020 and 2009 c 84 s 1 are each amended to read as follows:
     

Sec. 4   RCW 26.19.035 and 2005 c 282 s 36 are each amended to read as follows:
     (1) Application of the child support schedule. The child support schedule shall be applied:
     (a) In each county of the state;
     (b) In judicial and administrative proceedings under this title or Title 13 or 74 RCW;
     (c) In all proceedings in which child support is determined or modified;
     (d) In setting temporary and permanent support;
     (e) In automatic modification provisions or decrees entered pursuant to RCW 26.09.100; and
     (f) In addition to proceedings in which child support is determined for minors, to adult children who are dependent on their parents and for whom support is ordered pursuant to RCW 26.09.100.
     The provisions of this chapter for determining child support and reasons for adjustments, limitations, or deviations from the standard calculation shall be applied in the same manner by the court, presiding officers, and reviewing officers.
     (2) Written findings of fact supported by the evidence. An order for child support shall be supported by written findings of fact upon which the support determination is based and shall include reasons for any adjustment, limitation, or deviation from the standard calculation and reasons for denial of a party's request for adjustment, limitation, or deviation from the standard calculation. The court shall enter written findings of fact in all cases ((whether or not the court: (a) Sets the support at the presumptive amount, for combined monthly net incomes below five thousand dollars; (b) sets the support at an advisory amount, for combined monthly net incomes between five thousand and seven thousand dollars; or (c) deviates from the presumptive or advisory amounts)) when the court approves limitations, adjustments, or deviations.
     (3) Completion of worksheets. Worksheets in the form developed by the administrative office of the courts shall be completed under penalty of perjury and filed in every proceeding in which child support is determined. The court shall not accept incomplete worksheets or worksheets that vary from the worksheets developed by the administrative office of the courts.
     (4) Court review of the worksheets and order. The court shall review the worksheets and the order setting support for the adequacy of the reasons set forth for any deviation or denial of any request for deviation and for the adequacy of the amount of support ordered. Each order shall state the amount of child support calculated using the standard calculation and the amount of child support actually ordered. Worksheets shall be attached to the decree or order or if filed separately shall be initialed or signed by the judge and filed with the order.

Sec. 5   RCW 26.19.065 and 2009 c 84 s 2 are each amended to read as follows:
     (1) Limit at forty-five percent of a parent's net income. Neither parent's current child support obligation owed for all his or her biological or legal children, which includes the support transfer payment ordered and the parent's proportional share of other court-ordered child support obligations for day care and health care expenses for the children before the court, may exceed forty-five 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 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 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))) (b) 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 percent of the federal poverty guideline, a support order of not less than fifty dollars 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 percent of the federal poverty level, except for the presumptive minimum payment of fifty dollars 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.
     (3) Income above ((twelve)) twenty thousand dollars. The economic table is presumptive for combined monthly net incomes up to and including ((twelve)) twenty thousand dollars. When combined monthly net income exceeds ((twelve)) twenty thousand dollars, the court may exceed the presumptive amount of support set for combined monthly net incomes of ((twelve)) twenty thousand dollars upon written findings of fact.

Sec. 6   RCW 26.19.071 and 2009 c 84 s 3 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)(h) of this section;
     (f) Contract-related benefits;
     (g) Income from second jobs, except as excluded for income in subsection (4)(h) 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) General assistance;
     (g) Food stamps; and
     (h) Overtime or income from second jobs beyond forty hours per week averaged over a twelve-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, general assistance, and food stamps shall not be a reason to deviate from the standard calculation.
     (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) State industrial insurance premiums;
     (f) Court-ordered maintenance to the extent actually paid;
     (g) Up to five thousand dollars 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) 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. (a) 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 work history, education, health, and age, 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 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. (b) 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:
     (((a))) (i) Full-time earnings at the current rate of pay;
     (((b))) (ii) Full-time earnings at the historical rate of pay based on reliable information, such as employment security department data;
     (((c))) (iii) Full-time earnings at a past rate of pay where information is incomplete or sporadic;
     (((d))) (iv) Full-time earnings at minimum wage in the jurisdiction where the parent resides if the parent has a recent history of minimum wage earnings, is recently coming off public assistance, general assistance-unemployable, supplemental security income, or disability, has recently been released from incarceration, or is a high school student;
     (((e))) (v) 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.

Sec. 7   RCW 26.19.075 and 2009 c 84 s 4 are each amended to read as follows:
     (1) Reasons for deviation from the standard calculation include but are not limited to the following:
     (a) Sources of income and tax planning. The court may deviate from the standard calculation after consideration of the following:
     (i) Income of a new spouse or new domestic partner if the parent who is married to the new spouse or in a partnership with a new domestic partner is asking for a deviation based on any other reason. Income of a new spouse or new domestic partner is not, by itself, a sufficient reason for deviation;
     (ii) Income of other adults in the household if the parent who is living with the other adult is asking for a deviation based on any other reason. Income of the other adults in the household is not, by itself, a sufficient reason for deviation;
     (iii) Child support actually received from other relationships;
     (iv) Gifts;
     (v) Prizes;
     (vi) Possession of wealth, including but not limited to savings, investments, real estate holdings and business interests, vehicles, boats, pensions, bank accounts, insurance plans, or other assets;
     (vii) Extraordinary income of a child;
     (viii) Tax planning considerations. A deviation for tax planning may be granted only if the child would not receive a lesser economic benefit due to the tax planning; or
     (ix) Income that has been excluded under RCW 26.19.071(4)(h) if the person earning that income asks for a deviation for any other reason.
     (b) Nonrecurring income. The court may deviate from the standard calculation based on a finding that a particular source of income included in the calculation of the basic support obligation is not a recurring source of income. Depending on the circumstances, nonrecurring income may include overtime, contract-related benefits, bonuses, or income from second jobs. Deviations for nonrecurring income shall be based on a review of the nonrecurring income received in the previous two calendar years.
     (c) Debt and high expenses. The court may deviate from the standard calculation after consideration of the following expenses:
     (i) Extraordinary debt not voluntarily incurred;
     (ii) A significant disparity in the living costs of the parents due to conditions beyond their control;
     (iii) Special needs of disabled children;
     (iv) Special medical, educational, or psychological needs of the children; or
     (v) Costs incurred or anticipated to be incurred by the parents in compliance with court-ordered reunification efforts under chapter 13.34 RCW or under a voluntary placement agreement with an agency supervising the child.
     (((d) Residential schedule. The court may deviate from the standard calculation if the child spends a significant amount of time with the parent who is obligated to make a support transfer payment. The court may not deviate on that basis if the deviation will result in insufficient funds in the household receiving the support to meet the basic needs of the child or if the child is receiving temporary assistance for needy families. When determining the amount of the deviation, the court shall consider evidence concerning the increased expenses to a parent making support transfer payments resulting from the significant amount of time spent with that parent and shall consider the decreased expenses, if any, to the party receiving the support resulting from the significant amount of time the child spends with the parent making the support transfer payment.
     (e) Children from other relationships. The court may deviate from the standard calculation when either or both of the parents before the court have children from other relationships to whom the parent owes a duty of support.
     (i) The child support schedule shall be applied to the mother, father, and children of the family before the court to determine the presumptive amount of support.
     (ii) Children from other relationships shall not be counted in the number of children for purposes of determining the basic support obligation and the standard calculation.
     (iii) When considering a deviation from the standard calculation for children from other relationships, the court may consider only other children to whom the parent owes a duty of support. The court may consider court-ordered payments of child support for children from other relationships only to the extent that the support is actually paid.
     (iv) When the court has determined that either or both parents have children from other relationships, deviations under this section shall be based on consideration of the total circumstances of both households. All child support obligations paid, received, and owed for all children shall be disclosed and considered.))
     (2) All income and resources of the parties before the court, new spouses or new domestic partners, and other adults in the households shall be disclosed and considered as provided in this section. The presumptive amount of support shall be determined according to the child support schedule. Unless specific reasons for deviation are set forth in the written findings of fact and are supported by the evidence, the court shall order each parent to pay the amount of support determined by using the standard calculation.
     (3) The court shall enter findings that specify reasons for any deviation or any denial of a party's request for any deviation from the standard calculation made by the court. The court shall not consider reasons for deviation until the court determines the standard calculation for each parent.
     (4) When reasons exist for deviation, the court shall exercise discretion in considering the extent to which the factors would affect the support obligation.
     (5) Agreement of the parties is not by itself adequate reason for any deviations from the standard calculation.

Sec. 8   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, and 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 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 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-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) 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.

NEW SECTION.  Sec. 9   A new section is added to chapter 26.19 RCW to read as follows:
     ADJUSTMENTS TO THE STANDARD CALCULATION. Reasons for adjustments to the standard calculation include, but are not limited to, the following:
     (1) Shared residential schedule thirty-three percent or more. (a) The court may adjust the standard calculation if there is a written parenting plan or court order that the child or children spend thirty-three percent or one hundred twenty or more overnights in a calendar year with the parent who is obligated to make a support transfer payment. The court shall determine the residential schedule adjustment by a cross credit method after application of a 1.5 multiplier as set forth below:
     (i) Multiply the basic child support obligation based on the combined net income of both parents by 1.5;
     (ii) Apply the proportional share of net income of each parent to the basic child support obligation after it has been multiplied by 1.5;
     (iii) Calculate the percentage of overnights spent with the obligated parent in order to determine the percentage of time spent with each parent;
     (iv) Multiply the percentage of the time spent with the other parent by the obligation of each parent as determined in (a)(ii) of this subsection; and
     (v) Subtract the lesser amount from the greater amount in (a)(iv) of this subsection to determine the adjusted amount of child support to be paid by the obligor.
     (b) An example of how to calculate the residential schedule adjustment is as follows: The father's net income is $3000 per month and the mother's net income is $2000 per month. The parties have two children. The father spends thirty-five percent of overnights with the children, while the mother has the children in her care sixty-five percent of the time. The adjustment would be calculated using the following steps:
     (i) Application of (a)(i) of this subsection: Using the table in RCW 19.26.020(2), the basic child support obligation with a combined monthly net income of $5000 for a two children family is $1526. The cross credit method applies the 1.5 multiplier, to equal $2289.
     (ii) Application of (a)(ii) of this subsection: The proportional share of net income for the father is sixty percent. This is multiplied by the basic child support obligation after it has been multiplied by 1.5, which equals $1373.40. The proportional share of net income for the mother is forty percent. This is multiplied by the basic child support obligation after it has been multiplied by 1.5, to equal $915.60.
     (iii) Application of (a)(iii) of this subsection: The father's share of $1373.40 is multiplied by the percentage of time the children spend with the mother, or sixty-five percent, to equal $892.71.
     (iv) Application of (a)(iv) of this subsection: The mother's share of $892.71 is multiplied by the percentage of time the children spend with the father, or thirty-five percent, to equal $320.46.
     (v) Application of (a)(v) of this subsection: The lesser amount of $320.46 is subtracted from the greater amount of $915.60, to equal $572.25. This is the obligor's adjusted child support based on the residential schedule.
     (c) The court may not adjust the standard calculation on the basis of the residential schedule if the adjustment will result in insufficient funds in the household receiving the support to meet the basic needs of the child or if the child is receiving temporary assistance for needy families.
     (d) If the obligor who has been granted an adjustment fails to exercise thirty-three percent or more of the overnights that were used to calculate the child support adjustment for more than six months without reasonable justification for the failure to exercise the time, the obligee shall be entitled to move to terminate the adjustment by motion to the court or by making a request for a review of the administrative order which established the adjustment.
     (2) Split residential placement. If there is a current written parenting plan or court order that provides for split residential placement of the children of the parties, the court shall apply the Arvey formula as set forth in In re Marriage of Arvey, 77 Wn. App. 817 (1995) to calculate child support. The net child support obligation of each parent will be determined by use of the standard child support worksheet. The court shall adjust the amount of each parent's obligation to reflect each parent's proportional share of the obligation. The proportional share to be applied will depend on the number of children residing in the other parent's home, for example if the parties have three children where one child resides with the father and two children reside with the mother, then the adjustment proportional share would be two-thirds for the father and one-third for the mother. The transfer payment will be the difference between the parental proportional share that is greater and the parental proportional share that is smaller.
     (3) Children from other relationships. The court shall adjust the standard calculation when the obligor before the court has children from other relationships to whom the parent owes a duty of support by using the whole family formula in (e) of this subsection unless to do so would result in insufficient funds to meet the basic needs of the children in the receiving household and when taking the totality of the circumstances of both parents, the application of the formula would be unjust.
     (a) The child support schedule shall be applied to the mother, father, and children of the family before the court to determine the presumptive amount of support.
     (b) Children from other relationships shall not be counted in the number of children for purposes of determining the basic support obligation and the standard calculation.
     (c) When considering an adjustment to the standard calculation for children from other relationships, the court may consider only other children to whom the parent owes a duty of support. The court may consider court-ordered payments of child support for children from other relationships only to the extent that the support is actually paid.
     (d) When the court has determined that either or both parents have children from other relationships, adjustments under this section shall be based on consideration of the total circumstances of both households. Both parties must disclose, and the court must consider, all child support obligations paid, received, and owed for all children.
     (e) The whole family formula, to determine the adjusted amount of child support, is calculated as follows:
     (i) Determine a per-child secondary basic support obligation under RCW 26.19.020 for all children for whom the obligor has a legal support obligation and is actually providing support. This includes the children whose support is in question and all of the following:
     (A) The obligor's children with the obligee;
     (B) The obligor's other children for whom the obligor owes a duty of support or for whom the obligor is ordered to provide support; and
     (C) Stepchildren for whom the obligor is ordered to pay support;
     (ii) Determine the secondary basic support obligation only for those children whose support is in question;
     (iii) Multiply the total secondary basic support obligation from (e)(ii) of this subsection by the proportional share of the obligor's income;
     (iv) Determine the adjusted amount by subtracting the total from (e)(iii) of this subsection from the original basic support obligation; and
     (v) Subtract the adjusted amount in (e)(iv) of this subsection from the net support obligation. This is the actual transfer payment the obligor owes.