HOUSE BILL REPORT

                  HB 1557

             As Reported By House Committee On:

                          Judiciary

Title:  An act relating to employer reporting to the Washington state support registry.

Brief Description:  Removing the expiration date for Washington state support registry employer reporting.

Sponsors:  Representatives Forner, Appelwick, Jones and Karahalios; by request of Department of Social and Health Services.

Brief History:

  Reported by House Committee on:

Judiciary, February 23, 1993, DP.

HOUSE COMMITTEE ON JUDICIARY

Majority Report:  Do pass.  Signed by 17 members:  Representatives Appelwick, Chair; Ludwig, Vice Chair; Padden, Ranking Minority Member; Ballasiotes, Assistant Ranking Minority Member; Campbell; Chappell; Forner; Johanson; Locke; Long; Mastin; H. Myers; Riley; Schmidt; Scott; Tate; and Wineberry.

Staff:  Patricia Shelledy (786-7149).

Background:  Effective January 1, 1988, the Legislature created the Washington State Support Registry within the Office of Support Enforcement (OSE).  OSE is the agency designated in Washington state to administer the Child Support Program under Title IV-D of the federal Social Security Act.

In many cases, OSE collects child support directly from an obligor's employer.  The employer is sent a mandatory wage assignment order or a notice of payroll deduction.  The employer sends the required payments directly to the support registry.  Collecting child support from employers is difficult when the obligors hold temporary or multiple jobs and move from job to job.

The 1987 Legislature directed the Department of Social and Health Services and the commissioner of the Employment Security Department to work with business and employer groups to devise an employer reporting program.  The study made a recommendation to the Legislature in November 1987 to conduct a demonstration project.

A limited demonstration employer reporting project was conducted in 1988.  The findings from the project were presented to the Legislature in January 1989.  The apparently favorable results lead the Legislature to establish the Employer Reporting Program which began July 1990.  The Employer Reporting Program is scheduled to expire on July 1, 1993.

The Employer Reporting Program selects a few employers in certain fields who are assigned "standard industrial classification sic codes" to report to the support registry within 35 days of when the employer hires or rehires an employee.  Certain exemptions apply.  The reporting law covers some employers in the construction, manufacturing, wholesale trade, business services, and health services industries.  An employer who fails to report as required must be given a written warning for the first violation and is subject to a civil fine of up to $200 per month for each subsequent violation.  All violations within a single month are considered one violation.

Summary of Bill:  The Employer Reporting Program which requires certain employers to report the hiring and rehiring of employees to the Office of Support Enforcement becomes a permanent program.  The July 1, 1993, expiration date is deleted.

Fiscal Note:  Requested February 15, 1993.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Employer Reporting Program greatly expedites collection of child support in many cases and has proved to be a much more effective mechanism to obtain accurate employment information than using the Employment Security Department's quarterly records.  No employer has been sanctioned under the program.

Testimony Against:  None.

Witnesses:  Dave Hogan, Department of Social and Health Services Division of Revenue (pro).