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.