BILL REQ. #:  S-1658.2 

READ FIRST TIME 02/21/13.   

     AN ACT Relating to improving child support collections by requiring reporting of compensation and establishing an intercept program; adding new sections to chapter 26.23 RCW; adding a new section to chapter 9.46 RCW; adding a new section to chapter 67.16 RCW; creating a new section; prescribing penalties; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature recognizes that the state has an interest in ensuring that children are supported by their parents. It benefits the children and the state for the state to have an effective child support enforcement program. Therefore, the legislature intends to create new tools to increase the collection of child support obligations.

NEW SECTION.  Sec. 2   A new section is added to chapter 26.23 RCW to read as follows:
     (1) Any person or entity doing business in the state of Washington who is required to file a report with the internal revenue service for services received from an independent contractor in the course of doing business shall report to the Washington state support registry the hiring of any independent contractor who resides or works in this state to whom the person or entity anticipates paying compensation.
     (2) Persons or entities may report by any means authorized by the registry which will result in timely reporting. The following information must be reported:
     (a) The independent contractor's name, address, social security number, and date of birth; and
     (b) The person or entity's name, address, and, if applicable, the identifying number assigned under section 6109 of the internal revenue code of 1986.
     (3) Persons or entities shall submit reports within twenty days of either entering into a contract with the independent contractor for compensation of six hundred dollars or more or making payments to the independent contractor totaling six hundred dollars or more.
     (4) A person or entity who fails to report as required under this section is subject to a civil penalty of:
     (a) Twenty-five dollars; or
     (b) Five hundred dollars, if the failure to report is the result of a conspiracy between the person or entity and the independent contractor not to supply the required report, or to supply a false report. The penalty may be imposed and collected by the division of child support under RCW 74.20A.350.
     (5)(a) The registry must retain the information for a particular independent contractor only if the registry is responsible for establishing, enforcing, or collecting a support debt of the independent contractor. The registry may, however, retain information for a particular independent contractor for as long as may be necessary to:
     (i) Transmit the information to the national directory of new hires as required under federal law; or
     (ii) Provide the information to other state agencies for comparison with records or information possessed by those agencies as required by law.
     (b) Information that is not permitted to be retained must be promptly destroyed. Agencies that obtain information from the department of social and health services under this section shall maintain the confidentiality of the information received, except as necessary to implement the agencies' responsibilities.
     (6) For the purposes of this section, "independent contractor" means an individual who:
     (a) Is free from direction and control over the performance of the service;
     (b) Performs the service either:
     (i) Outside of the usual course of business for the entity for which the service is performed; or
     (ii) Outside of all the places of business for which the service is performed; and
     (c) Is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service contract.

NEW SECTION.  Sec. 3   A new section is added to chapter 26.23 RCW to read as follows:
     (1) The department shall establish a gambling payment intercept program to require licensees to withhold payments from winning players who owe past due child support.
     (2)(a) The department shall develop and maintain a gambling payment intercept registry to allow licensees to determine if a winning player owes past due child support.
     (b) Information accessed through the registry is confidential. Licensees shall not use information obtained from the registry except as needed for the gambling payment intercept program and are subject to criminal penalties for the misuse of information as provided in RCW 26.23.120.
     (3) If a licensee is required to file Form W-2G or a substantially equivalent form with the internal revenue service for a winning player who owes past due child support, before the payment of winnings from any gambling activity, the licensee:
     (a) May deduct and retain an administrative fee in the amount of the lesser of three percent of the amount of past due child support withheld under (b) of this subsection; or one hundred dollars. If funds are available, the administrative fee shall be in addition to the amounts withheld in (b) of this subsection;
     (b) Shall withhold the amount of past due child support owed from the winnings and within twenty-four hours, transmit the amount withheld; the full name, address, and social security number of the obligor parent; and the date, amount of payment, and location of the licensee to the department;
     (c) Shall issue the obligor parent a receipt in a form prescribed by the department with the total amount withheld for past due child support and any administrative fee.
     (4) Within two business days of receiving the withheld funds from the licensee, the department shall notify the obligor parent at the address provided by the licensee that the department intends to offset the obligor parent's past due child support with the winnings and provide the obligor parent with an opportunity to object.
     (5) A licensee that makes payment under this section is not liable to the person to whom the winner owes an outstanding debt.
     (6) As used in this section, "licensee" means a licensee under chapter 9.46 RCW, a class 1 association licensed to conduct parimutuel wagering under RCW 67.16.105(2), or an operator of an advance deposit wagering system licensed under RCW 67.16.260.
     (7) The department shall work with the Washington state gambling commission to include participation in the gambling payment intercept program when the commission is negotiating tribal gaming compacts with the tribes.

NEW SECTION.  Sec. 4   A new section is added to chapter 9.46 RCW to read as follows:
     (1)(a) Any licensee authorized to conduct a gambling activity under this chapter shall participate in the gambling payment intercept program as required by section 3 of this act.
     (b) Any licensee who fails to comply with section 3 of this act may be subject to suspension of its license or monetary penalties under this chapter.
     (2) The commission shall consider the gambling payment intercept program as provided in section 3 of this act as an element to be negotiated with federally recognized Indian tribes as provided in RCW 9.46.360.

NEW SECTION.  Sec. 5   A new section is added to chapter 67.16 RCW to read as follows:
     (1) Any class 1 association licensed to conduct parimutuel wagering under RCW 67.16.105(2) and any operator of an advance deposit wagering system licensed under RCW 67.16.260 shall participate in the gambling payment intercept program as required by section 3 of this act.
     (2) A licensee who fails to comply with section 3 of this act may be subject to penalties as provided in RCW 67.16.270.

NEW SECTION.  Sec. 6   This act takes effect July 1, 2014.