Child support: compromise of arrears.

Existing law establishes a statewide compromise of arrears program pursuant to which the Department of Child Support Services may accept offers in compromise of child support arrears and interest accrued thereon owed to the state for reimbursement of aid paid pursuant to the California Work Opportunity and Responsibility to Kids Act. An offer in compromise must be rescinded and any compromised liability reestablished unless there is a finding of good cause or a determination by the director that it is in the best interest of the state to do otherwise. Existing law provides that the acceptance of an offer in compromise is deemed to be in the best interest of the state with regard to arrears that accrued as a result of a decrease in income when an obligor was a reservist or member of the National Guard activated to United States military service, and failed to modify the support order to reflect the reduction in income. This bill would provide that acceptance of an offer in compromise is deemed to be in the best interest of the state with regard to arrears that accrued as a result of a decrease in income when the obligor failed to modify the support order to reflect the reduction in income when an obligor was a reservist or member of the National Guard activated to United States military service, when the obligor was incarcerated for more than 90 days and does not have other sources of income, when the obligor's sole income was based on specified forms of public assistance, or when the obligor was receiving inpatient services in a medical facility for more than 90 days and does not have other sources of income.