SB520: Bill Text

Finally, federal law requires each state to review, and revise if appropriate, its child support guidelines at least once every four years to ensure that they result in the determination of appropriate child support amounts. The bill requires the joint legislative council to create a child support review committee by April 1, 2002, and by April 1 every four years after that, to review the adequacy for supporting children of the new method of calculating child support provided in the bill. The committee must be composed of representatives of the judicial, executive and legislative branches of state government, of the state bar and of advocates for children, child support payers and child support payees. Each committee created must report its findings and legislative recommendations to the joint legislative council and to the federal department of health and human services.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB520, s. 1 Section 1. 13.84 of the statutes is created to read:

SB520,5,7 13.84 Child support review committee. (1) By April 1, 2002, and by April 1 every 4 years thereafter, the joint legislative council shall create a child support review committee to review the adequacy to support children of the method of calculating child support under s. 767.251. The committee shall consider current research and economic and case data, as well as any other relevant resources, on the cost of, and expenditures that are necessary for, raising children.

SB520,6,3 (2) The committee shall be composed of representatives of the state's judicial branch, legislative branch, executive branch and state bar, and of advocates for children, child support payers and child support payees.

SB520,6,7 (3) No later than January 1, 2003, and no later than January 1 every 4 years thereafter, the committee shall report its findings and legislative and other recommendations to the joint legislative council and to the federal department of health and human services.

SB520, s. 2 Section 2. 46.10 (14) (b) of the statutes is amended to read:

SB520,6,17 46.10 (14) (b) Except as provided in par. (c) and subject to par. (cm), liability of a parent specified in sub. (2) or s. 46.03 (18) for the care and maintenance of the parent's minor child who has been placed by a court order under s. 48.355 or 48.357 in a residential, nonmedical facility such as a group home, foster home, treatment foster home or child caring institution shall be determined by the court by using the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and by applying the percentage standard method in the manner established by the department under s. 46.247.

SB520, s. 3 Section 3. 46.10 (14) (c) (intro.) of the statutes is amended to read:

SB520,6,23 46.10 (14) (c) (intro.) Upon request by a parent, the court may modify the amount of child support payments determined under par. (b), subject to par. (cm), if, after considering the following factors, the court finds by the greater weight of the credible evidence that the use of the percentage standard method of calculating child support under s. 767.251 is unfair to the child or to either of the parents:

SB520, s. 4 Section 4. 46.10 (14) (d) of the statutes is amended to read:

SB520,7,8 46.10 (14) (d) If the court finds under par. (c) that use of the percentage standard method of calculating child support under s. 767.251 is unfair to the minor child or either of the parents, the court shall state in writing or on the record the amount of support that would be required by using the percentage standard method under s. 767.251, the amount by which the court's order deviates from that amount, its reasons for finding that use of the percentage standard method under s. 767.251 is unfair to the child or the parent, its reasons for the amount of the modification and the basis for the modification.

SB520, s. 5 Section 5. 46.247 of the statutes is amended to read:

SB520,7,18 46.247 Application of method of calculating child support standard for certain children. For purposes of determining child support under s. 46.10 (14) (b), the department shall promulgate rules related to the application of the standard established by the department of workforce development under s. 49.22 (9) method under s. 767.251 to a child support obligation for the care and maintenance of a child who is placed by a court order under s. 48.355 or 48.357 in a residential, nonmedical facility. The rules shall take into account the needs of any person, including dependent children other than the child, whom either parent is legally obligated to support.

SB520, s. 6 Section 6. 48.30 (6) of the statutes is amended to read:

SB520,8,10 48.30 (6) If a petition is not contested, the court shall set a date for the dispositional hearing which allows reasonable time for the parties to prepare but is no more than 10 days after the plea hearing for a child who is held in secure custody and no more than 30 days after the plea hearing for a child or an expectant mother who is not held in secure custody. If it appears to the court that disposition of the case may include placement of the child outside the child's home, the court shall order the child's parent to provide a statement of income, assets, debts and living expenses to the court or the designated agency under s. 48.33 (1) at least 5 days before the scheduled date of the dispositional hearing or as otherwise ordered by the court. The clerk of court shall provide, without charge, to any parent ordered to provide a statement of income, assets, debts and living expenses a document setting forth the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and the manner of its application established by the department of health and family services under s. 46.247 and listing the factors that a court may consider under s. 46.10 (14) (c). If all parties consent the court may proceed immediately with the dispositional hearing.

SB520, s. 7 Section 7. 48.31 (7) of the statutes is amended to read:

SB520,9,3 48.31 (7) At the close of the fact-finding hearing, the court shall set a date for the dispositional hearing which allows a reasonable time for the parties to prepare but is no more than 10 days after the fact-finding hearing for a child in secure custody and no more than 30 days after the fact-finding hearing for a child or expectant mother who is not held in secure custody. If it appears to the court that disposition of the case may include placement of the child outside the child's home, the court shall order the child's parent to provide a statement of income, assets, debts and living expenses to the court or the designated agency under s. 48.33 (1) at least 5 days before the scheduled date of the dispositional hearing or as otherwise ordered by the court. The clerk of court shall provide, without charge, to any parent ordered to provide a statement of income, assets, debts and living expenses a document setting forth the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and the manner of its application established by the department of health and family services under s. 46.247 and listing the factors that a court may consider under s. 46.10 (14) (c). If all parties consent, the court may immediately proceed with a dispositional hearing.

SB520, s. 8 Section 8. 48.33 (4m) (intro.) of the statutes is amended to read:

SB520,9,10 48.33 (4m) Support recommendations; information to parents. (intro.) In making a recommendation for an amount of child support under sub. (4), the agency shall consider the factors that the court considers under s. 46.10 (14) (c) for deviation from the percentage standard method of calculating child support under s. 767.251. Prior to the dispositional hearing under s. 48.335, the agency shall provide the child's parent with all of the following:

SB520, s. 9 Section 9. 48.357 (5m) of the statutes is amended to read:

SB520,9,24 48.357 (5m) If a proposed change in placement changes a child's placement from a placement in the child's home to a placement outside the child's home, the court shall order the child's parent to provide a statement of income, assets, debts and living expenses to the court or the person or agency primarily responsible for implementing the dispositional order by a date specified by the court. The clerk of court shall provide, without charge, to any parent ordered to provide a statement of income, assets, debts and living expenses a document setting forth the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and the manner of its application established by the department of health and family services under s. 46.247 and listing the factors that a court may consider under s. 46.10 (14) (c). If the child is placed outside the child's home, the court shall determine the liability of the parent in the manner provided in s. 46.10 (14).

SB520, s. 10 Section 10. 48.363 (1) of the statutes is amended to read:

SB520,11,11 48.363 (1) A child, the child's parent, guardian or legal custodian, an expectant mother, an unborn child by the unborn child's guardian ad litem, any person or agency bound by a dispositional order or the district attorney or corporation counsel in the county in which the dispositional order was entered may request a revision in the order that does not involve a change in placement, including a revision with respect to the amount of child support to be paid by a parent, or the court may on its own motion propose such a revision. The request or court proposal shall set forth in detail the nature of the proposed revision and what new information is available that affects the advisability of the court's disposition. The request or court proposal shall be submitted to the court. The court shall hold a hearing on the matter if the request or court proposal indicates that new information is available which affects the advisability of the court's dispositional order and prior to any revision of the dispositional order, unless written waivers of objections to the revision are signed by all parties entitled to receive notice and the court approves. If a hearing is held, the court shall notify the child, the child's parent, guardian and legal custodian, all parties bound by the dispositional order, the child's foster parent, treatment foster parent or other physical custodian described in s. 48.62 (2), the district attorney or corporation counsel in the county in which the dispositional order was entered, and, if the child is the expectant mother of an unborn child under s. 48.133, the unborn child by the unborn child's guardian ad litem or shall notify the adult expectant mother, the unborn child through the unborn child's guardian ad litem, all parties bound by the dispositional order and the district attorney or corporation counsel in the county in which the dispositional order was entered, at least 3 days prior to the hearing. A copy of the request or proposal shall be attached to the notice. If the proposed revision is for a change in the amount of child support to be paid by a parent, the court shall order the child's parent to provide a statement of income, assets, debts and living expenses to the court and the person or agency primarily responsible for implementing the dispositional order by a date specified by the court. The clerk of court shall provide, without charge, to any parent ordered to provide a statement of income, assets, debts and living expenses a document setting forth the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and the manner of its application established by the department of health and family services under s. 46.247 and listing the factors that a court may consider under s. 46.10 (14) (c). If all parties consent, the court may proceed immediately with the hearing. No revision may extend the effective period of the original order.

SB520, s. 11 Section 11. 49.22 (9) of the statutes is repealed and recreated to read:

SB520,11,16 49.22 (9) The department shall prepare and make available to judges and other court personnel forms, tables, computer software and instruction manuals or other publications to aid in the calculation of child support by using the method under s. 767.251.

SB520, s. 12 Section 12. 301.12 (14) (b) of the statutes is amended to read:

SB520,12,2 301.12 (14) (b) Except as provided in par. (c) and subject to par. (cm), liability of a parent specified in sub. (2) or s. 301.03 (18) for the care and maintenance of the parent's minor child who has been placed by a court order under s. 938.183, 938.355 or 938.357 in a residential, nonmedical facility such as a group home, foster home, treatment foster home, child caring institution or juvenile correctional institution shall be determined by the court by using the percentage standard established by the department of workforce development under s. 49.22 (9) method of calculating child support under s. 767.251 and by applying the percentage standard method in the manner established by the department under par. (g).

SB520, s. 13 Section 13. 301.12 (14) (c) (intro.) of the statutes is amended to read:

SB520,12,8 301.12 (14) (c) (intro.) Upon request by a parent, the court may modify the amount of child support payments determined under par. (b), subject to par. (cm), if, after considering the following factors, the court finds by the greater weight of the credible evidence that the use of the percentage standard method of calculating child support under s. 767.251 is unfair to the child or to either of the parents:

SB520, s. 14 Section 14. 301.12 (14) (d) of the statutes is amended to read:

SB520,12,17 301.12 (14) (d) If the court finds under par. (c) that use of the percentage standard method of calculating child support under s. 767.251 is unfair to the minor child or either of the parents, the court shall state in writing or on the record the amount of support that would be required by using the percentage standard method under s. 767.251, the amount by which the court's order deviates from that amount, the court's reasons for finding that use of the percentage standard method under s. 767.251 is unfair to the child or the parent, the court's reasons for the amount of the modification and the basis for the modification.

SB520, s. 15 Section 15. 301.12 (14) (g) of the statutes is amended to read:

SB520,13,2 301.12 (14) (g) For purposes of determining child support under par. (b), the department shall promulgate rules related to the application of the standard established by the department of workforce development under s. 49.22 (9) method under s. 767.251 to a child support obligation for the care and maintenance of a child who is placed by a court order under s. 938.183, 938.355 or 938.357 in a residential, nonmedical facility. The rules shall take into account the needs of any person, including dependent children other than the child, whom either parent is legally obligated to support.

SB520, s. 16 Section 16. 767.085 (2) (b) of the statutes is amended to read:

SB520,13,8 767.085 (2) (b) The clerk of court shall provide without charge, to each person filing a petition requesting child support, a document setting forth the percentage standard established by the department under s. 49.22 (9) method of calculating child support under s. 767.251 and listing the factors which a court may consider under s. 767.25 (1m).

SB520, s. 17 Section 17. 767.085 (2m) (a) 2. of the statutes is amended to read:

SB520,13,13 767.085 (2m) (a) 2. Shall be accompanied by a document, provided without charge by the clerk of court, setting forth the percentage standard established by the department under s. 49.22 (9) method of calculating child support under s. 767.251 and listing the factors which a court may consider under s. 767.25 (1m).

SB520, s. 18 Section 18. 767.085 (2m) (b) of the statutes is amended to read:

SB520,13,18 767.085 (2m) (b) If service is by publication, notification regarding s. 948.31 may consist of references to the statute numbers and titles, and information relating to the percentage standard method of calculating child support and the factors need not be provided.

SB520, s. 19 Section 19. 767.23 (1n) of the statutes is amended to read:

SB520,14,5 767.23 (1n) Before making any temporary order under sub. (1), the court or family court commissioner shall consider those factors which the court is required by this chapter to consider before entering a final judgment on the same subject matter. If the court or family court commissioner makes a temporary child support order that deviates from the amount of support that would be required by using the percentage standard established by the department under s. 49.22 (9) method of calculating child support under s. 767.251, the court or family court commissioner shall comply with the requirements of s. 767.25 (1n). A temporary order under sub. (1) may be based upon the written stipulation of the parties, subject to the approval of the court or the family court commissioner. Temporary orders made by the family court commissioner may be reviewed by the court as provided in s. 767.13 (6).

SB520, s. 20 Section 20 . 767.23 (1n) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB520,14,20 767.23 (1n) Before making any temporary order under sub. (1), the court or family court commissioner shall consider those factors that the court is required by this chapter to consider before entering a final judgment on the same subject matter. In making a determination under sub. (1) (a) or (am), the court or family court commissioner shall consider the factors under s. 767.24 (5). If the court or family court commissioner makes a temporary child support order that deviates from the amount of support that would be required by using the percentage standard established by the department under s. 49.22 (9) method of calculating child support under s. 767.251, the court or family court commissioner shall comply with the requirements of s. 767.25 (1n). A temporary order under sub. (1) may be based upon the written stipulation of the parties, subject to the approval of the court or the family court commissioner. Temporary orders made by the family court commissioner may be reviewed by the court as provided in s. 767.13 (6).

SB520, s. 21 Section 21. 767.25 (1j) of the statutes is amended to read:

SB520,14,24 767.25 (1j) Except as provided in sub. (1m), the court shall determine child support payments by using the percentage standard established by the department under s. 49.22 (9) method under s. 767.251.

SB520, s. 22 Section 22. 767.25 (1m) (intro.) of the statutes is amended to read:

SB520,15,5 767.25 (1m) (intro.) Upon request by a party, the court may modify the amount of child support payments determined under sub. (1j) s. 767.251 if, after considering the following factors, the court finds by the greater weight of the credible evidence that use of the percentage standard method under s. 767.251 is unfair to the child or to any of the parties:

SB520, s. 23 Section 23. 767.25 (1n) of the statutes is amended to read:

SB520,15,14 767.25 (1n) If the court finds under sub. (1m) that use of the percentage standard method of calculating child support under s. 767.251 is unfair to the child or the requesting party, the court shall state in writing or on the record the amount of support that would be required by using the percentage standard method under s. 767.251, the amount by which the court's order deviates from that amount, its reasons for finding that use of the percentage standard method under s. 767.251 is unfair to the child or the party, its reasons for the amount of the modification and the basis for the modification.

SB520, s. 24 Section 24. 767.251 of the statutes is created to read:

SB520,15,18 767.251 Calculation of child support payments. (1) Gross income. For purposes of determining a parent's gross income under this section, all of the following apply:

SB520,15,19 (a) The court shall include as income all of the following:

SB520,15,21 1. Subject to par. (b), all personal income considered gross income for federal income tax purposes.

SB520,15,23 2. Net proceeds from worker's compensation or other personal injury awards intended to replace income.

SB520,15,24 3. Income continuation benefits.

SB520,16,2 4. Voluntary deferred compensation or employe contributions to a profit-sharing or pension account.

SB520,16,3 5. Military allowances and veterans benefits.

SB520,16,5 6. Undistributed income from a closely held corporation if all of the following apply:

SB520,16,6 a. The parent has a majority interest in the corporation.

SB520,16,8 b. The parent may exercise control over, or access the earnings of, the corporation.

SB520,16,9 7. Tax-exempt interest.

SB520,16,10 (b) The court shall exclude from income all of the following:

SB520,16,12 1. Onetime long-term capital gain income from the sale of individual passive investments.

SB520,16,13 2. Onetime capital gain income from the sale of the family home.

SB520,16,14 (c) The court shall deduct from income all of the following:

SB520,16,15 1. Any maintenance paid to the other parent or to a former spouse.

SB520,16,17 2. If the parent is self-employed, one-half of the unemployment tax that the parent pays.

SB520,16,19 3. Business expenses that are allowed as deductions for expenses for tax purposes.

SB520,16,21 4. Business expenses that are not allowed as deductions for expenses for tax purposes but that the court considers necessary for the production of income.

SB520,16,24 (d) The court may include as income wages paid by the parent to a member of the parent's household that the court determines were paid for the purpose of diverting income to avoid paying child support.

SB520,17,8 (e) If the court determines that a party has encumbered, concealed, damaged, destroyed, transferred or otherwise disposed of property for the purpose of avoiding payment of child support, or that child support based on the gross incomes of the parties will not adequately provide for the child and that the parties have nonproductive assets, the court may impute income to one or both parents from such property or assets by multiplying the value of the property or asset by the current 6-month treasury bill interest rate and including the amount obtained in the gross income of the appropriate parent.

SB520,17,14 (f) If the court determines that a parent is able and available to work, that employment opportunities exist in the parent's community for which the parent is qualified and that the parent is not working at least 40 hours per week, the court may impute to the parent a gross income based on a 40-hour work week, the parent's educational attainment and work experience and the type of employment opportunities in the parent's community for which the parent is qualified.

SB520,17,18 (2) Amount of physical placement. (a) For the purpose of determining child support payments under sub. (4), the court shall determine the amount of physical placement that a parent has on the basis of the number of days, or amount of time, out of a total of 365 days in a year, that the parent provides care for the child.

SB520,17,24 (b) Notwithstanding par. (a), if both parents provide care for the child in the same 24-hour period, the court shall determine the amount of time that each parent provides care for the child on that day not on the basis of the number of hours that each parent cares for the child but on a basis that reflects each parent's proportionate share of the total expenses incurred by the 2 parents in caring for the child on that day.

SB520,18,5 (c) After making any adjustments necessary to ensure that the total number of days in a year that the parents have physical placement of the child equals 365, the court shall determine the percentage of the 365 days in a year that each parent has physical placement of the child, and shall make any adjustments necessary to ensure that the total of those percentages equals 100%.

SB520,18,8 (3) Gross monthly child support obligations. For the purpose of determining child support payments under sub. (4), the court shall determine each parent's gross monthly child support obligation as follows:

SB520,18,11 (a) If the combined gross monthly income of the 2 parents is equal to or less than $4,000, the gross monthly child support obligation of each parent equals the following percentage of that parent's gross monthly income:

SB520,18,12 1. If there is one minor child, 17%.

SB520,18,13 2. If there are 2 minor children, 25%.

SB520,18,14 3. If there are 3 minor children, 29%.

SB520,18,15 4. If there are 4 minor children, 31%.

SB520,18,16 5. If there are 5 or more minor children, 34%.

SB520,18,19 (b) If the combined gross monthly income of the 2 parents is greater than $4,000 but not greater than $20,000, the gross monthly child support obligation of each parent is calculated as follows:

SB520,18,21 1. The combined gross monthly child support obligation of the 2 parents equals the following amount:

SB520,18,23 a. If there is one minor child, $680 plus 8.5% of the combined gross monthly income of the 2 parents in excess of $4,000.

SB520,18,25 b. If there are 2 minor children, $1,000 plus 12.5% of the combined gross monthly income of the 2 parents in excess of $4,000.