SSB 6508 -
By Committee on Early Learning & Human Services
ADOPTED AS AMENDED 02/29/2012
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 43.20B.030 and 2005 c 292 s 5 are each amended to
read as follows:
(1) Except as otherwise provided by law, including subsection (2)
of this section, there will be no collection of overpayments and other
debts due the department after the expiration of six years from the
date of notice of such overpayment or other debt unless the department
has commenced recovery action in a court of law or unless an
administrative remedy authorized by statute is in place. However, any
amount due in a case thus extended shall cease to be a debt due the
department at the expiration of ten years from the date of the notice
of the overpayment or other debt unless a court-ordered remedy would be
in effect for a longer period.
(2) There will be no collection of debts due the department after
the expiration of twenty years from the date a lien is recorded
pursuant to RCW 43.20B.080.
(3) The department, at any time, may accept offers of compromise of
disputed claims or may grant partial or total write-off of any debt due
the department if it is no longer cost-effective to pursue. The
department shall adopt rules establishing the considerations to be made
in the granting or denial of a partial or total write-off of debts.
(4) Notwithstanding the requirements of RCW 43.20B.630, 43.20B.635,
43.20B.640, and 43.20B.645, the department may waive all efforts to
collect overpayments from a client when the department, the health care
authority, or any state agency administering public assistance benefits
determines the overpayment occurred through no fault of the client, the
client was unaware that he or she was not eligible for the overpaid
benefits, the client cannot repay the overpayment without drawing on
funds needed for basic support, and the client relied on those benefits
for basic support. These are the applicable elements that are to be
considered in any administrative hearing or judicial review proceeding
concerning the overpayment of public assistance benefits.
NEW SECTION. Sec. 2 If any part of this act is found to be in
conflict with federal requirements that are a prescribed condition to
the allocation of federal funds to the state, the conflicting part of
this act is inoperative solely to the extent of the conflict and with
respect to the agencies directly affected, and this finding does not
affect the operation of the remainder of this act in its application to
the agencies concerned. Rules adopted under this act must meet federal
requirements that are a necessary condition to the receipt of federal
funds by the state.
NEW SECTION. Sec. 3 No later than October 1, 2013, the office of
fraud and accountability within the department of social and health
services, along with the state auditor's office and the department of
early learning, shall collaborate in an effort to identify, review, and
provide the legislature with recommendations for integrated monitoring
and detection systems to prevent overpayments of public assistance from
occurring."
Correct the title.
EFFECT: (1) Removes the provision that allowed the Department of
Social and Health Services (DSHS) to waive efforts to collect from
clients who, through no fault of their own, received an overpayment and
the overpayment was less than $2000.
(2) Includes the Health Care Authority (HCA) or any state agency
administering public assistance benefits in addition to the DSHS that
may waive efforts to collect overpayments to clients.
(3) Sets out criteria to be considered in any administrative
hearing or judicial review proceeding regarding overpayment which are:
(a) That the DSHS, HCA, or other agency that administers benefits
determines that the overpayment occurred through no fault of the
client; (b) the client was unaware that he or she was not eligible for
the overpaid benefits; (c) the client cannot repay the overpayment
without drawing on funds needed for basic support; and (d) the client
relied on the benefits received for basic support.
(4) Extends to October 1, 2013, the date by which the Office of
Fraud and Accountability, the Department of Early Learning, and the
State Auditor's Office must report to the legislature regarding
recommendations for integrated monitoring and detection systems to
prevent overpayments of public assistance.