Passed by the Senate March 6, 2012 YEAS 49   BRAD OWEN ________________________________________ President of the Senate Passed by the House March 2, 2012 YEAS 97   FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 6386 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
Approved March 30, 2012, 1:37 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | March 30, 2012 Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2012 Regular Session |
READ FIRST TIME 02/03/12.
AN ACT Relating to fraud in state assistance programs; amending RCW 74.08.580, 74.04.014, and 43.215.135; adding a new section to chapter 74.08 RCW; creating a new section; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that fraud associated
with public assistance programs is a significant problem in the state
of Washington. Therefore, the legislature encourages the office of
fraud and accountability within the department of social and health
services to coordinate with the office of the state auditor and the
department of early learning to improve the prevention, detection, and
prosecution of fraudulent activity taking place in public assistance
programs. It is the purpose of this act to significantly reduce fraud
and to ensure that public assistance dollars reach the intended
populations in need.
Sec. 2 RCW 74.08.580 and 2011 1st sp.s. c 42 s 14 are each
amended to read as follows:
(1) Any person receiving public assistance is prohibited from using
electronic benefit cards or cash obtained with electronic benefit
cards:
(a) For the purpose of participating in any of the activities
authorized under chapter 9.46 RCW;
(b) For the purpose of parimutuel wagering authorized under chapter
67.16 RCW;
(c) To purchase lottery tickets or shares authorized under chapter
67.70 RCW;
(d) For the purpose of participating in or purchasing any
activities located in a tattoo, body piercing, or body art shop
licensed under chapter 18.300 RCW;
(e) To purchase cigarettes as defined in RCW 82.24.010 or tobacco
products as defined in RCW 82.26.010;
(f) To purchase any items regulated under Title 66 RCW; or
(g) For the purpose of purchasing or participating in any
activities in any location listed in subsection (2) of this section.
(2) On or before January 1, 2012, the businesses listed in this
subsection must disable the ability of ATM and point-of-sale machines
located on their business premises to accept the electronic benefit
card. The following businesses are required to comply with this
mandate:
(a) Taverns licensed under RCW 66.24.330;
(b) Beer/wine specialty stores licensed under RCW 66.24.371;
(c) Nightclubs licensed under RCW 66.24.600;
(d) Contract liquor stores defined under RCW 66.04.010;
(e) Bail bond agencies regulated under chapter 18.185 RCW;
(f) Gambling establishments licensed under chapter 9.46 RCW;
(g) Tattoo, body piercing, or body art shops regulated under
chapter 18.300 RCW;
(h) Adult entertainment venues with performances that contain
erotic material where minors under the age of eighteen are prohibited
under RCW 9.68A.150; and
(i) Any establishments where persons under the age of eighteen are
not permitted.
(3) The department must notify the licensing authority of any
business listed in subsection (2) of this section that such business
has continued to allow the use of the electronic benefit card in
violation of subsection (2) of this section.
(4) Only the recipient, an eligible member of the household, or the
recipient's authorized representative may use an electronic benefit
card or the benefit and such use shall only be for the respective
benefit program purposes. Unless a recipient's family member is an
eligible member of the household, the recipient's authorized
representative, an alternative cardholder, or has been assigned as a
protective payee, no family member may use the benefit card. The
recipient shall not sell, or attempt to sell, exchange, or donate an
electronic benefit card or any benefits to any other person or entity.
(5) The first violation of subsection (1) ((or (4))) of this
section by a recipient constitutes a class 4 civil infraction under RCW
7.80.120. Second and subsequent violations of subsection (1) ((or
(4))) of this section constitute a class 3 civil infraction under RCW
7.80.120.
(a) The department shall notify, in writing, all recipients of
electronic benefit cards that any violation of subsection (1) ((or
(4))) of this section could result in legal proceedings and forfeiture
of all cash public assistance.
(b) Whenever the department receives notice that a person has
violated subsection (1) ((or (4))) of this section, the department
shall notify the person in writing that the violation could result in
legal proceedings and forfeiture of all cash public assistance.
(c) The department shall assign a protective payee to the person
receiving public assistance who violates subsection (1) ((or (4))) of
this section two or more times.
(6) In assigning a personal identification number to an electronic
benefit card, the department shall not routinely use any sequence of
numbers that appear on the card except in circumstances resulting from
in-state or national disasters. Personal identification numbers
assigned to electronic benefit cards issued to support the distribution
of benefits when there is a disaster may include a sequence of numbers
that appears on the card.
NEW SECTION. Sec. 3 A new section is added to chapter 74.08 RCW
to read as follows:
A person who has in his or her possession or under his or her
control electronic benefit cards issued in the names of two or more
persons and who is not authorized by those persons to have any of the
cards in his or her possession is guilty of a misdemeanor.
Sec. 4 RCW 74.04.014 and 2011 1st sp.s. c 42 s 24 are each
amended to read as follows:
(1) In carrying out the provisions of this chapter, the office of
fraud and accountability shall have prompt access to all individuals,
records, electronic data, reports, audits, reviews, documents, and
other materials available to the department of revenue, department of
labor and industries, department of early learning, employment security
department, department of licensing, and any other government entity
that can be used to help facilitate investigations of fraud or abuse as
determined necessary by the director of the office of fraud and
accountability.
(2) The investigator shall have access to all original child care
records maintained by licensed and unlicensed child care providers with
the consent of the provider or with a court order or valid search
warrant.
(3) Information gathered by the department, the office, or the
fraud ombudsman shall be safeguarded and remain confidential as
required by applicable state or federal law. Whenever information or
assistance requested under subsection (1) or (2) of this section is, in
the judgment of the director, unreasonably refused or not provided, the
director of the office of fraud and accountability must report the
circumstances to the secretary immediately.
Sec. 5 RCW 43.215.135 and 2011 1st sp.s. c 42 s 11 are each
amended to read as follows:
(1) The department shall establish and implement policies in the
working connections child care program to promote stability and quality
of care for children from low-income households. Policies for the
expenditure of funds constituting the working connections child care
program must be consistent with the outcome measures defined in RCW
74.08A.410 and the standards established in this section intended to
promote continuity of care for children.
(2) ((As a condition of receiving a child care subsidy or a working
connections child care subsidy, the applicant or recipient must seek
child support enforcement services from the department of social and
health services, division of child support, unless the department finds
that the applicant or recipient has good cause not to cooperate.)) Except as provided in subsection ((
(3)(4))) (3) of this section,
an applicant or recipient of a child care subsidy or a working
connections child care subsidy is eligible to receive that subsidy for
six months before having to recertify his or her income eligibility.
The six-month certification provision applies only if enrollments in
the child care subsidy or working connections child care program are
capped.
(((4))) (3) Beginning in fiscal year 2011, for families with
children enrolled in an early childhood education and assistance
program, a head start program, or an early head start program,
authorizations for the working connections child care subsidy shall be
effective for twelve months unless a change in circumstances
necessitates reauthorization sooner than twelve months.
(((5))) (4) The department, in consultation with the department of
social and health services, shall report to the legislature by
September 1, 2011, with:
(a) An analysis of the impact of the twelve-month authorization
period on the stability of child care, program costs, and
administrative savings; and
(b) Recommendations for expanding the application of the twelve-month authorization period to additional populations of children in
care.