Child support: license suspensions.

All state-mandated local program provisions were deleted: the requirement for local child support agencies to send notices requesting employment and income documentation, the rebuttable presumption that an obligor earns more than 70% of median income if they fail to submit documentation, and the 6-month period during which additional documentation could not be requested. The bill no longer creates a state-mandated local program.

The income threshold changed from 'annual household income of the support obligor' to 'annual income of the support obligor,' removing the word 'household.' This narrows the exemption by looking only at the obligor's own income rather than total household income, meaning fewer obligors will qualify for the exemption.

The noncommercial driver's license limitation was made permanent and built directly into the statute, replacing the previous phased approach where the prohibition applied to all driver's licenses initially and then narrowed to noncommercial only on January 1, 2027. The operative date remains January 1, 2027 or when system automation is ready.

The bill title was changed from amending both Sections 17520 and 17520.5 of the Family Code to amending only Section 17520.5, narrowing the bill's statutory footprint.

The board license relief provision (paragraph 2) was clarified to exclude 'a noncommercial driver's license issued by the Department of Motor Vehicles' rather than simply 'a driver's license,' making explicit that commercial driver's licenses remain subject to suspension for all boards.

The income threshold for exemption from license suspension changed from 70 percent of the median income for the county to 70 percent of the median income for a household of one person within the county, based on HUD data. This is a lower threshold that would exclude fewer obligors from protection.

All detailed income verification procedures were removed: the 30-day notice requiring obligors to submit employment and income documentation, the presumption that non-compliant obligors earn above the threshold, the 6-month period during which additional documentation is not required after verified low income, and the exception for the first 12 months after a support order is initially established.

The provision was restructured into two parts: paragraph (1) maintains automatic exclusion from the DMV list for obligors at or below the income threshold (applying only to noncommercial driver's licenses starting January 1, 2027), while new paragraph (2) requires obligors seeking relief from other boards (professional, occupational, etc.) to affirmatively provide proof of low income to the local child support agency.

A new provision authorizes the Department of Child Support Services to implement and administer the section through a child support services letter or similar instruction without taking regulatory action, bypassing the Administrative Procedure Act rulemaking process.

A new effective date provision states that the changes become operative on January 1, 2027, or on the date the department notifies the Legislature that the California Child Support Enforcement System can perform the necessary automation to implement these changes, whichever is later.

The state-mandated local program designation was changed from 'yes' to 'no,' meaning the bill no longer triggers state reimbursement obligations to local agencies for costs mandated by the state.

The bill now amends both Section 17520 and Section 17520.5 of the Family Code (previously only 17520.5). Section 17520 is fully rewritten with extensive new provisions including definitions, list maintenance procedures, notice requirements, temporary license rules, supplemental suspension lists, review and judicial review procedures, release mechanisms, funding via surcharges or special fees, and reporting requirements.

The income-based exemption (70% of area median income) is expanded from applying only to driver's licenses sent to the DMV to applying to all boards that issue any license, certificate, credential, permit, registration, or other authorization to engage in a business, occupation, or profession.

Local child support agencies must now send obligors a notice requesting employment and income documentation within 30 days of finding them out of compliance. If the obligor fails to respond, a rebuttable presumption arises that they earn more than 70% of area median income (meaning they are NOT exempt from license action).

Local child support agencies are prohibited from issuing a release removing an obligor from license suspension or denial if the obligor is not in compliance with a judgment or order for support. The agency must notify the applicant of their right to seek judicial review, a judicial determination of compliance, or a modification of the support order.

Obligors whose verified income is at or below 70% of area median income cannot be required to submit additional employment and income documentation for six months. After that period, updated documentation may be requested only if the obligor becomes delinquent on payments.

The income verification process (subdivisions b and c of Section 17520.5) does not apply to support obligors during the first 12 months after the initial establishment of a support order, effectively protecting new obligors from this additional documentation requirement.

Boards may levy a surcharge on all licensees and applicants or a special fee on those named on certified or supplemental lists to fund implementation costs. Boards must also reimburse the Department of Child Support Services for its nonfederal share of costs from moneys collected from applicants and licensees.

The bill now creates a state-mandated local program (changed from 'no' to 'yes'), triggering California's state mandate reimbursement requirements. A new Section 3 provides that if the Commission on State Mandates determines the act contains costs mandated by the state, reimbursement shall be made pursuant to Government Code Part 7.

The presumption of earning above 70% of area median income (when documentation is not submitted) cannot be relied upon for noncommercial driver's licenses or if the notice was returned as undeliverable, preserving the existing January 1, 2027 limitation that the income exemption applies only to noncommercial driver's licenses.