Legislature(2001 - 2002)
04/30/2001 02:04 PM House FIN
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* first hearing in first committee of referral
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CS FOR SENATE BILL NO. 19(HES)
"An Act relating to federal child support enforcement
requirements regarding social security number
information, employer reports about employees, and
certain kinds of automated data matching with financial
institutions; repealing the termination date of changes
made by ch. 87, SLA 1997, and ch. 132, SLA 1998,
regarding child support enforcement and related
programs; repealing the nonseverability provision of
ch. 132, SLA 1998; repealing uncodified laws relating
to ch. 87, SLA 1997, and ch. 132, SLA 1998; and
providing for an effective date."
BARBARA MIKLOS, DIRECTOR, CHILD SUPPORT ENFORCEMENT
DIVISION, DEPARTMENT OF REVENUE provided information on SB
19 (HES). Congress passed welfare reform legislation in
1996. The legislation's intent was to reduce the number of
people receiving public assistance. Regulations relating to
work and child support programs were initiated to support
reforms. States were required to pass laws to help collect
child support. Alaska passed laws in response to federal
requirements in 1996 - 1998 and were compliant with federal
requirements. She maintained that the programs have been
effective. The state collected and dispersed $81 million
dollars in child support. In 2000 the state collected $85
million dollars and it expects to collect $91 million
dollars in the current year. She observed that legislation
passed in 1997 and 1998 would sunset in the current year.
The law has to be reenacted to continue the programs.
Without these programs the state could be in jeopardy of
losing all the money that goes to child support and public
assistance: $70 million dollars.
Ms. Miklos discussed provisions of the bill. She observed
that the Senate placed a 5-year sunset on the use of social
security numbers on applications and the financial data
match program. These were changed to a two-year sunset in
the House Health and Social Service Committee. Two new
provisions were also added. Section 11 would provide that a
violation does not give rise to a private cause of action.
This means that a private individual could not sue an
employer that did not properly report. Section 12 would
prevent the situation where three payrolls are received in
one month from resulting in a shortage on the following
month. Extra payments in one month would be held and
accounted against the subsequent month.
Ms. Miklos explained that provisions removing social
security numbers from statutes take affect in 2003.
Ms. Miklos noted that the Division's would prefer not to
have a sunset date on any of the provisions.
Representative Davies observed that use of social security
numbers referenced in sections 1 - 10 are required by
federal law. Ms. Miklos did not know of any pending
legislation to change federal requirements.
Co-Chair Mulder asked if the legislation meets all the
requirements of the federal guidelines. Ms. Miklos affirmed
that the legislation would bring the state into compliance
for the next two years.
Co-Chair Mulder suggested that the two-year sunset might be
good with the complexity of the provisions contained in the
bill.
Representative John Davies asked how long the existing
provisions have been in place, if there have been any
problems and if they have been effective. Ms. Miklos
responded that the provisions have been in effect for the
last 3 years. There have been no problems and they have been
helpful. She acknowledged that there have been concerns
expressed by individuals, but there have not been a problem
in any cases.
Representative John Davies MOVED to amend the legislation by
deleting "2003" and inserting "2006" on line 16, page 6. Co-
Chair Williams OBJECTED for the purpose of discussion.
Representative John Davies argued that the legislation has
been effective and that the use of social security numbers
is essential in making the connections between cases. There
doesn't seem to be any change in the federal requirement and
the state would be out of compliance if the requirement were
deleted. The use of social security numbers has been
effective in getting payments to children. He noted that the
provisions have worked for the past three years and that the
Senate agreed to a 2006 sunset date. Co-Chair Mulder felt
more comfortable with the 2003 sunset date. He acknowledged
that the division has done a good job, but noted that it is
a contentions issue and asserted that it would be good to
review it in two years.
A roll call vote was taken on the motion to change the
sunset date to "2006".
IN FAVOR: Lancaster, Davies
OPPOSED: Hudson, Whitaker, Bunde, Croft, Harris, Mulder,
Williams
Representatives Moses and Foster were absent from the vote.
The MOTION FAILED (2-7).
Vice-Chair Bunde MOVED to report HCS CSSB 19 (HES) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
HCS CSSB 19(HES) was REPORTED out of Committee with a "do
pass" recommendation and with a previously published zero
fiscal note (#2) by the Department of Revenue.
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