SENATE BILL REPORT

ESHB 1635

BYHouse Committee on Judiciary (originally sponsored by Representatives Brough, Appelwick and G. Fisher; by request of  Department of Social and Health Services)

Making changes to support enforcement provisions.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):March 21, 1989; March 29, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Nelson, Newhouse, Niemi, Rasmussen, Rinehart, Talmadge, Thorsness.

Senate Staff:Richard Rodger (786-7461)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, MARCH 29, 1989

BACKGROUND:

Civil actions must be commenced within the time period established by statute.  Actions to enforce a judgment or decree must be commenced within 10 years.  A judgment becomes a lien on the property of the judgment debtor and remains in effect for a period of 10 years.  Judgments based on a child support debt accrue interest at 6 percent.

A continuing lien on wages has priority over any subsequent garnishment or wage assignment.

Federal pensions are exempt from garnishment, execution, or attachment, unless otherwise provided by federal law.  An employee's rights under any employee benefit plan covered by the Employees Retirement Income Security Act (ERISA) is also exempt, except for domestic relations orders governed by the act.

Except for wage assignments and administrative orders for child support, state pensions are generally exempt from execution, garnishment, or attachment.  The department may attach the accounts of a responsible parent by serving an order to withhold and deliver on the branch where the account is located.  The general garnishment statute allows service on the main branch to attach all accounts of the debtor in the financial institution's branches.

The Department of Social and Health Services (DSHS) may enter an administrative order to any person to withhold and deliver property, including wages, to DSHS to satisfy a debt owed the department.  The order may be issued 21 days after the debtor is notified of a support debt.  Failure to comply with the order makes the person served with the order liable for 100 percent of the value of the debt, plus costs, interest, and reasonable attorney's fees.

The Washington State Support Registry is created within DSHS.  The support registry collects and disburses support paid to the registry.  A person who has been ordered to make support payments through the registry is not entitled to a credit for any payments which are not paid through the registry.

DSHS must issue a notice of support debt prior to taking action to enforce a superior court order for child support.  The notice must include statements concerning the amount of debt owing and that the property of the debtor may be seized.  The department may not initiate collection proceedings for 20 days after the notice is served.

Twenty-one days after service of the notice of support debt or other notice of financial responsibility, the department may assert a lien on the real and personal property of the debtor.  The lien attaches from the date of filing with the county auditor in any county in which the property is located.  A lien against wages attaches when filed with the county auditor of the county in which the employer is located.

DSHS may accept requests from other states to provide child support enforcement services.  The request from the other state must include a signed authorization from the state and from the person to whom support is owed granting the department authority to initiate enforcement proceedings.  The department may require additional information and documentation.

At the time it enters an order for child support, the court must order payments to be made through the support registry or, if it determines that the parties have agreed to a plan that has assurances that support will be paid, to the person entitled to receive support.  The support order must include a statement that a notice of payroll deduction may be issued if support is 15 days or more past due in an amount equal to one month's support.  The support order must also include the custodial parent's social security number and address.

In proceedings under the Uniform Parentage Act, the court may enter an order for child support in appropriate circumstances.  In determining child support, the court is directed to consider a number of factors.

When the Legislature established the support registry it directed DSHS to conduct a joint study with the Department of Labor and Industries on a reporting system that could be used by both departments.

SUMMARY:

Actions to enforce a judgment for past due child support may be commenced within 10 years after the youngest child subject to the support order turns 18.  Liens are also effective for the same period.  Judgments based on a child support debt accrue interest at 12 percent.

A continuing lien on wages does not have priority over a notice of payroll deduction, a wage assignment, or any other garnishment to enforce a child support obligation.

Federal pensions and state pensions are subject to all actions to support child support orders, including a notice of payroll deduction.  Provisions governing the garnishment of ERISA plans are deleted.

The failure to comply with a DSHS order to withhold and deliver subjects the person to the lesser of the amount that should have been withheld under the order or 100 percent of the value of the debt.

A person who has been ordered to make payments through the support registry but makes payments in another manner may be credited with those payments if DSHS determines that the credit would not prejudice the rights of the person entitled to receive the payments or if the court directs that a credit be given.

DSHS may initiate a collection action to enforce an administrative order of support.  Notice of intent to initiate the action need not be given if the court order or administrative order contains a statement that the action may be taken without further notice.  The department may assert a lien against property when a support obligation is past due.  The lien has priority over any other lien, except for pre-existing liens to secure the purchase of the property.

A request from another state for child support enforcement services does not need to be signed by the person to whom support is owed.

For child support orders entered after July 1, 1990, the order must state that a payroll deduction may be initiated if support is past due.  The 15 day grace period is eliminated.

In proceedings under the Uniform Parentage Act, the court shall consider the child support schedule in determining the appropriate level of child support.

Employers in certain specified employer classifications must report to the support registry the name and social security number of any new employees who reside in the state and any re-hires.  The industries included are the construction, manufacturing, and wholesale trade.  An employer does not have to report the hiring of an employee who will be employed for less than one month, will work less than 350 hours in a six month period, or will earn less than $300 a month.  Failure to report as required can result in a $1,000 civil penalty.

A parent obligated to pay support may request a court hearing to determine whether child support payments are substantially benefiting the child for whom they are intended.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 21, 1989

SUMMARY OF PROPOSED SENATE AMENDMENTS:

Technical and clarifying amendments are made.

The Office of Support Enforcement shall provide notice to the employer of the fee which may be collected for complying with a payroll deduction order.

The custodial parent is given the right to a hearing before the department may release his or her address.

Certain employers are required to report the hiring of new employees to the Washington State Support Registry.  An employer who fails to report is given a warning on the first occasion and may be fined up to $200 per reporting period thereafter.  The employer reporting provision expires on July 1, 1993.  The Legislative Budget Committee shall conduct a study of the employer reporting program and report to the Legislature by November 7, 1992.

The chief administrative law judge is added as a member of the Child Support Schedule Commission.

Senate Committee - Testified: Dave Hogan, DSHS (pro); Jean Irlbeck, DSHS (pro); Kevin Price, Dads Against Discrimination (con)