HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.ESSB 6216

                                           (See ESHB 2346)

DSHS vendor overpayment recovery                Hrg. Date:  2/24/98

Brief Title

Senators Horn/Patterson                                   Staff: Josh Weiss

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7292

BACKGROUND:

Currently, the Department of Social and Health Services (DSHS) must bring a civil court action in order to recover overpayments from vendors who provide public assistance or child support.  The sole statutory remedy available to the DSHS is to secure a lien against the vendor's property, which requires a lawsuit.

SUMMARY:

ESSB 6216 provides an administrative proceeding consistent with the State Administrative Procedures Act for the recovery of overpayments.  This provides a mechanism whereby the amount of the debt is determined, and broadens available collection measures.

A uniform procedure for the recovery of vendor overpayments is established.  The department is required to give notice of the overpayment to the vendor who must, within 28 days, either pay the amount owed, or request an administrative proceeding.  If the vendor does neither, a final debt against the vendor in the amount claimed by the department is established.  The department may collect a debt through a lien and foreclosure, distraint, seizure and sale, order to withhold and deliver, any of the collection procedures established for overpayment of public assistance in RCW 43.20B.635 (judicial action), RCW 43.20B640 (penalties for non-cooperation), RCW 43.20B.680 (liens), or any other collection action available.

The administrative process applies to all vendors who provide goods or services to the department=s clients after July 1, 1998.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.