SB 252 - PATERNITY/CHILD SUPPORT/NONSUPPORT CRIMES CHAIRMAN WILKEN informed committee members that the Department of Revenue wrote a letter to the committee addressing several questions that were raised during its previous hearing on SB 252. He explained the content of that letter was rolled into a committee substitute for SB 252 which is labeled "version B." SENATOR LEMAN moved to adopt CSSB 252(HES), version B, as the working document of the committee. SENATOR ELLIS objected for the purpose of an explanation. CHAIRMAN WILKEN asked Barbara Miklos, Director of the Child Support Enforcement Division, to provide the committee with an explanation of the changes made in the committee substitute. MS. MIKLOS deferred to Dan Branch of the Department of Law. Number 460 DAN BRANCH, Assistant Attorney General, Department of Law, explained the main changes in version B were made in response to information received from the federal government and, in part, because of information from the National Conference of State Legislatures received from Senator Green during the last hearing. The main difference between version B and the original version is that version B removes the requirement that courts, in contempt actions, can revoke the sport fishing and hunting licenses for failure to honor a child support subpoena or paternity order. Several provisions were removed throughout the bill that would have given courts the authority to do that. Number 447 SENATOR GREEN asked if the requirement to report anyone who has applied for a sports license directly to CSED was removed. MR. BRANCH asked for clarification of the question. SENATOR GREEN asked if this bill passes, whether sports fishing and hunting license applicants' names will not be entered into a CSED database. MR. BRANCH responded that federal mandates still require social security numbers of applicants be provided on sports hunting and fishing license applications. CSED has the right to access that information to pass on to the federal government. There being no further objection to the adoption of the committee substitute, CSSB 252(HESS) was adopted. MS. MIKLOS pointed out it is true that the social security number reporting requirements are part of the federal statute, but there is not going to be a process by which the Department of Fish and Game will be reporting all license applicants' social security numbers to CSED. SENATOR WARD questioned whether there is a federal requirement to do so, but CSED does not expect the Department of Fish and Game to comply. MS. MIKLOS clarified that the federal act requires that the social security information be disclosed on the fishing license application, so that will be collected, but there is no process by which those numbers and names will be reported to CSED because under this version of the bill, a fishing or hunting license can only be taken away if ordered by a judge. She noted this version of the bill differs from last year's version in the court order requirement. SENATOR WARD confirmed that the information would be gathered but not disclosed. MS. MIKLOS said the information would be available at the Department of Fish and Game if someone asked for it, which is the purpose of gathering the information. SENATOR GREEN questioned whether that would mean that if CSED was looking for a certain person and suspected the person had a fishing license, CSED could request the Department of Fish and Game to do a search for information on that person. MS. MIKLOS said that was correct. She commented that the general purpose behind proposing these revisions to the legislation was the committee's concern that this legislation contain nothing other than the provisions required by the federal government. Based on the information received from the National Conference on State Legislatures, plus information from the federal government,CSED felt it could offer these amendments without jeopardizing its mandate to meet federal requirements. She added this bill will be traveling afar after leaving the HESS committee, and it is CSED's intent to work with the Legislature to make this bill acceptable. Number 400 SENATOR GREEN questioned whether there is a different reporting standard that will be applied toward large employers with major computer networks and access to getting information directly to CSED, and small employers who do not have computer systems or a mechanism by which to regularly report the names to CSED. MS. MIKLOS said absolutely because the employer may choose the mechanism by which they report. Many of the larger employers are already transferring the information electronically. The smaller employer may send CSED a form of their choice or a copy of W-4 forms. SENATOR GREEN asked what the time frame is for transmitting W-4 forms. MS. MIKLOS replied the federal requirement for all employers is 20 days. SENATOR GREEN asked if CSED has a waiver process to where it can make inquiries of smaller employers about new employees. MS. MIKLOS answered CSED could, but CSED is willing to work with smaller employers to set up systems that work for them. Number 378 CHAIRMAN WILKEN asked Senator Ward if he could provide any information to the committee about the status of similar legislation in the State of Idaho. SENATOR WARD stated the State of Idaho received a formal notice from the federal Department of Health and Human Services that stated it did not approve of the State of Idaho's plan to comply. He asked Ms. Miklos whether the State of Alaska has received such a notice. MS. MIKLOS said she had not. SENATOR WARD indicated when the State of Idaho received its notice, it requested a formal hearing. He asked Ms. Miklos at what point she thought the State of Alaska would receive such a notice from the Department of Health and Social Services disapproving a lack of action on the part of the Legislature, concerning this legislation. MS. MIKLOS replied that in her discussion with representatives of the federal government, she thinks it would be shortly after the legislative session ended. SENATOR WARD asked, at that time, if the Legislature has taken no action or an action deemed inadequate by the federal government, then the State of Alaska would immediately have to file a request for a formal hearing. He also asked if any other states have filed formal requests for hearings. MS. MIKLOS said the State of Idaho did and that states are required to file within 60 days, otherwise the loss of federal funds is automatic. Requesting a formal hearing provides a state with an opportunity to discuss with federal officials the reasons for non- compliance and an additional 60 days to comply. She did not know of any state that has had a formal hearing. SENATOR WARD asked if the State of Florida has requested a formal hearing. Number 351 MS. MIKLOS said she did not know, but the states that have requested the hearings are doing so because they must. She added that legislation has passed the Idaho House of Representatives and is now in the second reading the Senate as of yesterday, in order to comply with the federal requirements. She believed the Idaho Legislature will be adjourning shortly so CSED should know what action it took within a week or so. SENATOR WARD indicated his understanding is that the Idaho Senate is working on a committee substitute right now. There being no further questions or testimony about the legislation, SENATOR GREEN moved CSSB 252(HESS) out of committee with individual recommendations, with the understanding that she would be working on this legislation in the Senate Resources Committee. There being no objection, the motion carried.