BILL REQ. #:  H-1762.1 

Read first time 02/18/2005.   Referred to Committee on Juvenile Justice & Family Law.

     AN ACT Relating to privatizing the child support enforcement program; adding a new section to chapter 74.20 RCW; adding a new section to chapter 41.80 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 74.20 RCW to read as follows:
     (1)(a) The legislature finds that: (i) With increasing demands for public services and limited resources for additional state personnel, the state needs to be more effective and responsive in ensuring that parents meet their child support obligations; and (ii) private and nonprofit entities are able to provide high quality services more cost-effectively than the state because of management flexibility and better access to technology.
     (b) The purpose of this section is to improve customer service, increase collection of child support owed to custodial parents, and improve the lives of affected children.
     (2) By July 1, 2005, the secretary shall initiate a process under RCW 41.06.142 (1), (4), and (5) for the purpose of contracting with one or more private or nonprofit entities or employee business units, as defined in RCW 41.06.142, for services in administering all aspects of child support enforcement functions under this chapter and chapter 74.20A RCW. However, the requirement in RCW 41.06.142(1)(e) for determining savings or efficiency improvements shall be deemed to be satisfied if the successful bidder or bidders for the contract reasonably demonstrate the methods by which savings or efficiency improvements, or both, will be achieved.
     (3) The secretary shall adopt such rules as may be necessary to implement this section, including but not limited to:
     (a) Providing for the reimbursement of the contractors, but such reimbursement may not:
     (i) Exceed the administrative cost per child support dollar collected by the department in the fiscal year preceding the year in which the contract becomes effective; or
     (ii) Be made from child support collections;
     (b) Requiring the contractor to offer employment upon terms deemed fair by the secretary to any existing state employee affected by the transfer of child support enforcement responsibilities and to retain, unless there is cause for dismissal, any employees who accept the offer. However, the contractor is not bound to any collective bargaining agreement that may be applicable to the affected employees at the time of the transfer, and the contractor is not a successor to any bargaining obligations that may have applied to the state under chapter 41.80 RCW at the time of the transfer; and
     (c) Providing for the orderly transition of child support enforcement functions to one or more contractors selected under this section.
     (4) The transfer of all aspects of child support enforcement to one or more contractors must be completed by July 1, 2006.
     (5) Beginning December 1, 2007, and each December 1st thereafter, the secretary must report to the governor and the appropriate committees of the legislature on the operation and performance of the program contracted under this section. The report must include an assessment of the effectiveness and success of the contracted program in enhancing child support collection and provide any plans or recommendations for improving the effectiveness and success of the contracted program in achieving the purposes of this section.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.80 RCW to read as follows:
     A contractor under section 1 of this act is not a successor to any bargaining obligations that may have applied to the state under this chapter at the time of the transfer required under section 1 of this act.

NEW SECTION.  Sec. 3   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005.