SENATE BILL REPORT

SB 5664

BYSenators Pullen and Talmadge; by request of Department of Social and Health Services

Making changes to support enforcement services.

Senate Committee on Law & Justice

Senate Hearing Date(s):February 14, 1989; February 24, 1989; February 28, 1989; March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5664 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Hayner, Nelson, Newhouse, Talmadge, Thorsness.

Senate Staff:Richard Rodger (786-7461)

                  March 2, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):March 16, 1989; March 21, March 22, 1989

Majority Report:  That Second Substitute Senate Bill No. 5664 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Niemi, Saling, Smith, Talmadge, Wojahn.

Senate Staff:Karen Hayes (786-7711)

                  March 23, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 22, 1989

BACKGROUND:

The current statute of limitations for the enforcement of child support orders is ten years.  Thirty-two states have a limitation which is 20 years or longer.

Interest on support debts for public assistance cases is limited to 6 percent.  Interest on other child support judgments varies with each change in the six-month treasury bill rate.

The state support registry statute requires the custodial parent's address to be included in all orders for support.

There is a federal requirement that wage withholding, under child support enforcement programs, shall have priority over any other legal process against the same wages.

Under current law a mandatory payroll deduction order may be issued when a support payment is more than 15 days past due.  The 15-day waiting period conflicts with federal law.  A new federal statute requires the states to implement immediate wage withholding by October 1, 1990.

The Washington State Support Registry (WSSR) was created to help ensure regular and timely payment of child support obligations.  The registry receives employment information from the Department of Employment Security and utilizes that information in payroll deduction proceedings.  There are delays of up to six months in receiving the necessary employment information.

Child support payments received by WSSR must be distributed to the payee named in the order, even if the children reside with and are supported by someone other than the named payee.

SUMMARY:

The statute of limitations for the collection of child support is extended to ten years after the support obligation terminates for the youngest child named in the order.

Interest on all child support judgments is set at 12 percent per annum.

A custodial parent's address is not included in an administrative order for child support.

Child support wage assignment orders and garnishments have priority over any other legal process against the same wages.

The issuance of the notice of payroll deduction is authorized when a child support payment is past due in an amount equal to or greater than the support payable for one month.  On court orders issued after July 1, 1990 the notice of payroll deduction may be issued at any time.  The court is authorized to approve an alternate payment plan, if the plan contains reasonable assurances that the payments will be made in a regular and timely manner.

Designated employer groups are required to notify the Washington State Support Registry of employees' names, addresses, social security numbers, and dates of birth, within five days of hiring an employee.  An employer who fails to report to WSSR is subject to a civil penalty of up to $1,000.

The Office of Support Enforcement is authorized to distribute support payments to the person who has physical custody of the children.  Notice is sent to the parent who is responsible for payment of the support.

EFFECT OF PROPOSED SUBSTITUTE:

A payee is given notice by DSHS of the amount of support and of any collection action.  A custodial parent may request a hearing to prevent DSHS from releasing his or her address.  The reporting of the hiring of new employees by employers is extended to 35 days.

An expiration clause is added to the employer reporting section and an ongoing study is to be performed. 

The Child Support Schedule Commission is expanded to include the chief administrative law judge.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

Credit is ensured for child support actually received by the person entitled to the payment.  If credit is denied, the responsible parent may seek rectification through an administrative hearing.  A penalty may be assessed for support payments delivered to the wrong party. 

The Office of Support Enforcement shall notify employers that they may deduct a fee from the employee's wages to recoup disbursement costs when a portion of an individual's wages are garnished to recover delinquent child support payments.

The Department of Social and Health Services is directed to report specific information to assist in targeting select industries to evaluate early reporting of new hires.

When wages are garnished to recover past due child support, employers are required to inform the Washington State Support Registry of the date and amount withheld.  Such notification is to facilitate timely delivery of the required portion of child support payments to AFDC clients as is required by recent federal welfare reform legislation.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 13, 1989

Senate Committee - Testified: LAW & JUSTICE:  Dave Hogan, Department of Social and Health Services (pro); Kim Prochnau, Evergreen Legal Services (pro); Lonnie Johns-Brown, Washington State National Organization for Women (pro); Pat Thibaudeau, Washington Women United (pro); Natalie DeMarr, Regional Administrator, U.S. Department of Health and Human Services (pro); Levi Fisher, Program Specialist, U.S. Department of Health and Human Services (pro); Frank DeLong, Association of Washington Businesses (pro)

Senate Committee - Testified: WAYS & MEANS:  Dave Hogan, Department of Social and Health Services (pro); Collins Sprague, Association of Washington Business (pro)