BP BHEAD INT S

AN ACT Relating to collection of state retirement system overpayments; and adding new sections to chapter 41.50 RCW.

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

NEW SECTION. Sec. 1. (1) If the department finds that any member, beneficiary, or other person or entity has been paid an amount of retirement benefits to which that person or entity is not entitled, the department may issue an order and notice of assessment specifying the amount due, including interest, to be remitted to the department. The order and notice of assessment shall be served upon any person or entity who may have received benefits to which the person or entity is not entitled. The order and notice of assessment shall be served by the department in the manner prescribed for the service of a summons in a civil action, or by certified mail to the last known address of the obligor as shown by the records of the department.

(2) The department may issue an order and notice of assessment under this section only after it has notified the person of the department's decision that an amount is due, and of the person's right to seek a review of the department's decision within sixty days. The order and notice of assessment may be served after the end of the sixty-day period if the person does not seek a review of the decision, or upon completion of the review, if the department's decision is upheld on review.

(3) Any notice of assessment under subsection (1) of this section shall constitute a determination of liability from which the member, beneficiary, or other person or entity served may appeal by filing a petition for adjudicative proceedings with the director personally or by mail within thirty days from the date the assessment was served. If a petition for adjudicative proceedings is not filed within thirty days of the delivery of the notice of assessment, the determination that was the basis for establishing the overpayment debt and the assessment is conclusive and final.

NEW SECTION. Sec. 2. Whenever a notice of determination of liability becomes conclusive and final under section 1 of this act, the director, upon giving at least twenty days notice by certified mail return receipt requested to the individual's last known address of the intended action, may file with the superior court clerk of any county within the state a warrant in the amount of the notice of determination of liability plus a filing fee of five dollars. The clerk of the county where the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the person mentioned in the warrant, the amount of the notice of determination of liability, and the date when the warrant was filed. The amount of the warrant as docketed shall become a lien upon the title to, and any interest in, all real and personal property of the person against whom the warrant is issued, the same as a judgment in a civil case duly docketed in the office of such clerk. A warrant so docketed shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor of the state in the manner provided by law for a civil judgment. A copy of the warrant shall be mailed to the person mentioned in the warrant by certified mail to the person's last known address within five days of its filing with the clerk.

NEW SECTION. Sec. 3. (1) The director is authorized to issue to any person, firm, corporation, or political subdivision or department of the state a notice and order to withhold and deliver property of any kind whatsoever when the director has reason to believe that there is in the possession of the person, firm, corporation, or political subdivision or department of the state, property which is due, owing, or belonging to any person upon whom the department has served a notice and order of assessment for benefit overpayment and that assessment has become final under section 1 of this act. The effect of a notice to withhold and deliver shall be continuous from the date the notice and order to withhold and deliver is first made until the liability is satisfied or becomes unenforceable because of a lapse of time.

(2) In the event there is in the possession of any such person, firm, or corporation any property which may be subject to the claim of the department, such property shall be delivered forthwith to the director or the director's authorized representative upon demand to be held in trust by the director for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability, or in the alternative, there shall be furnished a good and sufficient bond satisfactory to the director conditioned upon final determination of liability.

(3) The notice and order to withhold and deliver may be served by any duly authorized representative of the department or may also be made by certified mail, return receipt requested. Any person, firm, corporation, or political subdivision or department of the state upon whom service has been made is required to answer the notice within twenty calendar days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice. Should any person, firm, or corporation fail to make answer to an order to withhold and deliver within the time prescribed, it is lawful for a court, after the time to answer the order has expired, to render judgment by default against the person, firm, or corporation for the full amount claimed by the department in the notice to withhold and deliver, together with cost.

NEW SECTION. Sec. 4. The department may issue subpoenas to compel the statement of witnesses and the production of any books, records, or documents necessary or relevant to the department's administration of duties under this chapter. It is unlawful for any person or entity, without just cause, to fail to comply with any subpoena issued under this section.

NEW SECTION. Sec. 5. (1) The director may waive collection of all or part of an overpayment under RCW 41.50.130 only if the director finds both that the overpayment was not the result of fraud, misrepresentation, willful or negligent nondisclosure, or fault attributable to the individual or entity, and that the recovery of the overpayment would be against equity and good conscience.

(2) An individual will be considered at fault for the purposes of subsection (1) of this section when an overpayment is the result of incorrect information provided by the individual, or the failure to provide information that the individual should have provided, as outlined in written communications issued by the department, or information which the individual caused another to fail to disclose. An individual may also be considered at fault if he or she knew, or reasonably should have known, prior to correction by the department, that an overpayment had been made.

(3) Whenever an overpayment is waived, in whole or in part, there shall be placed on file with the department a statement of the amount owed and a complete record of the overpayment recovery waiver agreement and any amount actually paid in accordance with the terms of the agreement.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act are each added to chapter 41.50 RCW.