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ENGROSSED
SUBSTITUTE HOUSE BILL 2346
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Passed
Legislature - 1998 Regular Session
State of Washington 55th
Legislature 1998 Regular Session
By
Read first time 02/03/98.
Referred to Committee on .
Allowing
the department of social and health services to recover revenue from vendors
that have been overpaid.
AN
ACT Relating to recovery of vendor overpayments; adding a new section to
chapter 43.20B RCW; and creating a new section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that more efficient and cost-effective means are available
for the collection of vendor overpayments owed the state of Washington. The
legislature further finds it desirable to provide vendors a uniform formal
appeal process that will streamline the current process for both the department
of social and health services and the vendor.
NEW
SECTION. Sec. 2. A
new section is added to chapter 43.20B RCW to read as follows:
(1)
When the department determines that a vendor was overpaid by the department for
either goods or services, or both, provided to department clients, except
nursing homes under chapter 74.46 RCW, the department will give written notice
to the vendor. The notice will include the amount of the overpayment, the
basis for the claim, and the rights of the vendor under this section.
(2)
The notice may be served upon the vendor in the manner prescribed for the
service of a summons in civil action or be mailed to the vendor at the last
known address by certified mail, return receipt requested, demanding payment
within twenty days of the date of receipt.
(3)
The vendor has the right to an adjudicative proceeding governed by the
administrative procedure act, chapter 34.05 RCW, and the rules of the
department. The vendor's application for an adjudicative proceeding must be in
writing, state the basis for contesting the overpayment notice, and include a
copy of the department's notice. The application must be served on and
received by the department within twenty-eight days of the vendor's receipt of
the notice of overpayment. The vendor must serve the department in a manner
providing proof of receipt.
(4)
Where an adjudicative proceeding has been requested, the presiding or reviewing
office will determine the amount, if any, of the overpayment received by the
vendor.
(5)
If the vendor fails to attend or participate in the adjudicative proceeding,
upon a showing of valid service, the presiding or reviewing officer may enter
an administrative order declaring the amount claimed in the notice to be
assessed against the vendor and subject to collection action by the department.
(6)
Failure to make an application for an adjudicative proceeding within
twenty-eight days of the date of notice will result in the establishment of a
final debt against the vendor in the amount asserted by the department and that
amount is subject to collection action. The department may also charge the
vendor with any costs associated with the collection of any final overpayment
or debt established against the vendor.
(7)
The department may enforce a final overpayment or debt through lien and
foreclosure, distraint, seizure and sale, order to withhold and deliver, or
other collection action available to the department to satisfy the debt due.
(8)
Debts determined under this chapter are subject to collection action without
further necessity of action by a presiding or reviewing officer. The
department may collect the debt in accordance with RCW 43.20B.635, 43.20B.640,
and 43.20B.680. In addition, a vendor lien may be subject to distraint and
seizure and sale in the same manner as prescribed for support liens in RCW
74.20A.130.
(9)
This legislation applies to overpayments for goods or services provided on or
after July 1, 1998.
(10) The department may adopt rules consistent with this section.
