H-1659              _______________________________________________

                                                   HOUSE BILL NO. 1027

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Addison, Zellinsky, Sanders, Holland, P. King, Fuhrman, Dobbs, Bond, Van Luven and L. Smith

Read first time 2/8/85 and referred to Committee on Social & Health Services.

AN ACT Relating to verification of public assistance eligibility; adding a new chapter to Title 74 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1.     The legislature finds that public assistance resources are finite and should be provided to those persons truly in need.  The legislature further finds that other states have successfully removed ineligible public assistance recipients from the roles by surveying recipient funds in accounts in financial institutions.

NEW SECTION. Sec. 2.     As used in this chapter:

          (1) "Department" means the department of social and health services.

          (2) "Financial institution" means any savings bank, state bank, federal trust company, credit union, or savings and loan association, authorized to do business in the state of Washington.

          (3) "Public assistance" means aid to families with dependent children, general assistance, supplemental security income, consolidated emergency assistance programs, and refugee assistance.

          (4) "Secretary" means the secretary of social and health services.

NEW SECTION. Sec. 3.     The secretary shall inform all financial institutions of the names and social security numbers of all applicants for or recipients of public assistance.

NEW SECTION. Sec. 4.     All financial institutions shall annually, or upon request of the secretary, inform the secretary of the amount of funds deposited and in a recipient's account for the previous year and the amount of interest and dividends paid.

NEW SECTION. Sec. 5.     The department shall reimburse any financial institution for the cost of computer time expended by the financial institution in making a search of its records as a result of a request made pursuant to this chapter, at a reasonable rate.  If the request asks for records of any deposits and withdrawals during the past five years, and the financial institution cannot obtain such information by automated search of its records, the department shall reimburse the financial institution at the rate of six dollars per man-hour expended.

NEW SECTION. Sec. 6.     Any financial institution which has received a request from the department under section 4 of this act shall provide the requested information within sixty days of receipt of the request.  Wilful failure of a financial institution to provide the requested information within such period shall result in liability to the state for civil penalties of up to ten dollars for each day thereafter.  The attorney general shall, upon request of the department, bring an action in a court of competent jurisdiction to recover the civil penalty.  The court shall have the authority to determine the amount of the civil penalty to be assessed.

NEW SECTION. Sec. 7.     Any financial institution, officer, agent, or employee of such financial institution participating in good faith in providing the requested information under section 4 of this act shall be immune from civil liability that might otherwise result from the release of such information to the department.

NEW SECTION. Sec. 8.     The disclosure of any information provided to the financial institution by the department, or the disclosure of any information regarding the identity of any applicant for or recipient of public assistance, by an officer or employee of any financial institution, or by any person receiving such information from such employee or officer is prohibited.  Any person violating this section shall be guilty of a gross misdemeanor.

NEW SECTION. Sec. 9.     The secretary shall implement this chapter by July 1, 1985, as a pilot project in three regions of the state:  One large, one small, and one in eastern Washington.  By July 1, 1987, this chapter shall be implemented state-wide.

NEW SECTION. Sec. 10.    The secretary shall report to the legislature periodically on the operation of the program under this chapter.

NEW SECTION. Sec. 11.    Sections 1 through 10 of this act shall constitute a new chapter in Title 74 RCW.