SENATE BILL REPORT

SB 5719

BYSenator Cantu

Establishing financial responsibility for services provided and funded by the department of social and health services.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):March 4, 1987; March 6, 1987; February 3, 1988

Senate Staff:Dee Knapp (786-7452)

AS OF FEBRUARY 3, 1988

BACKGROUND:

Prior to the creation of the Department of Social and Health Services (DSHS), each agency (e.g., Public Assistance, Health, Institutions) had its specific programs under separate statutes.  The Legislature established the Financial Responsibility Study Oversight Committee to make recommendations for consistency in financial responsibility for DSHS services.

Proponents offer this bill in response to the committee's recommendations.

SUMMARY:

Financial responsibility of recipients and/or other responsible parties is standardized for all DSHS programs.  Financial responsibility is determined on an ability to pay basis with three exceptions:  the first 30 days of nonresidential service in response to abuse or domestic violence; adoption of special needs children; services based on financial eligibility, where a financial means test has already been applied.

Procedures providing notice, modification and vacation of financial liability are provided.  Conditions and requirements for issuing a notice of delinquency are established as well as a procedure for appeal.  Collection enforcement remedies are authorized including the issuance of an order to withhold and deliver the filing of liens and/or garnishment of wages.

EFFECT OF PROPOSED SUBSTITUTE:

The formula for ability to pay is changed from subtracting 50 percent of the annual state median income from adjusted gross annual income and multiplying by 20 percent to calculate the maximum annual fee for all department services.  The new formula protects 65 percent of the gross adjusted income and replaces the 20 percent in the formula with a sliding scale from 10 to 20 percent.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:September 30, 1987