1998 Legislation
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HOUSE BILL NO. 793 – Child support/info provided/no liab

HOUSE BILL NO. 793

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Daily Data Tracking History



H0793................................by JUDICIARY, RULES AND ADMINISTRATION
CHILD SUPPORT ENFORCEMENT - Amends existing law to provide limits upon data
match functions and to provide immunity from liability for entities such as
banks, public utilities and cable companies which enter into data match
agreements with the Department of Health and Welfare to provide information
for child support enforcement.

03/04    House intro - 1st rdg - to printing
03/05    Rpt prt - to Jud
03/06    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 54-13-3
      AYES -- Barraclough, Bell, Bieter, Bivens, Black(15), Black(23), Boe,
      Bruneel, Campbell, Chase, Clark, Crane, Crow, Cuddy, Deal, Ellsworth,
      Field(13), Gagner, Geddes, Gould, Henbest, Hornbeck, Jaquet,
      Jones(9), Jones(22), Jones(20), Judd, Kellogg, Kempton, Kjellander,
      Lake, Linford, Loertscher, Mader, Marley, Meyer, Miller, Mortensen,
      Newcomb, Pischner, Pomeroy, Reynolds, Richman, Robison, Sali,
      Stevenson, Stoicheff, Stone, Tippets, Trail, Watson, Wheeler,
      Zimmermann, Mr Speaker
      NAYS -- Alltus, Barrett, Callister, Denney, Hadley, Hansen, Kendell,
      McKague, Schaefer, Stubbs, Taylor, Tilman, Wood
      Absent and excused -- Field(20), Kunz, Ridinger
    Floor Sponsor - Boe
    Title apvd - to Senate
03/11    Senate intro - 1st rdg - to Health/Wel
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/18    3rd rdg - PASSED - 27-4-4
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Deide, Dunklin, Geddes, Ipsen, King, Lee,
      McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder,
      Sorensen, Stennett, Thorne, Twiggs, Wheeler
      NAYS--Branch, Hawkins, Keough, Whitworth
      Absent and excused--Frasure, Hansen, Ingram, Sweeney
    Floor Sponsor - King
    Title apvd - to House
03/19    To enrol - rpt enrol - Sp signed
    Pres signed - to Governor
03/20    Governor signed
         Session Law Chapter 227
         Effective: 07/01/98

Bill Text


H0793


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 793

                     BY JUDICIARY, RULES AND ADMINISTRATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO CHILD SUPPORT ENFORCEMENT; AMENDING SECTION 56-203F,  IDAHO  CODE,
 3        TO PROVIDE LIMITS UPON DATA MATCH FUNCTIONS, TO PROVIDE IMMUNITY FROM LIA-
 4        BILITY FOR ENTITIES ENTERING INTO AGREEMENTS WITH THE DEPARTMENT OF HEALTH
 5        AND  WELFARE  TO  PROVIDE INFORMATION FOR DATA MATCHES TO FACILITATE CHILD
 6        SUPPORT ENFORCEMENT, AND TO MAKE A TECHNICAL CORRECTION.

 7    Be It Enacted by the Legislature of the State of Idaho:

 8        SECTION 1.  That Section 56-203F, Idaho Code, be, and the same  is  hereby
 9    amended to read as follows:

10        56-203F.  CHILD  SUPPORT ENFORCEMENT -- AGREEMENTS WITH FINANCIAL INSTITU-
11    TIONS. (1) The legislature finds that the federal government has  unreasonably
12    mandated  that  the  department  must  make  certain agreements with financial
13    institutions in this state for the purposes of improving the effectiveness  of
14    child  support enforcement. The legislature also finds that the current system
15    for child support enforcement in this state has historically  performed  well,
16    and  recent  statutory changes have further improved it, and that the mandated
17    system will do little to improve such collections. This section is enacted  to
18    bring  the  state  into compliance with the requirements of P.L. 104-193, sec.
19    372, and title IV-D of the social security act.
20        (2)  The department is hereby authorized to establish a  work  group  com-
21    prised of:
22        (a)  Representatives  of the types of financial institutions identified in
23         section 469A(d)(1) of  42 U.S.C.    666(a)    
24        section 669a(d)(1) ;
25        (b)  Representatives    of   "public   utilities,"   "cooperatives,"   and
26        "municipalities" as defined in section 61-332A, Idaho Code, and "telephone
27        corporations" as defined in section 62-603, Idaho Code  ,  and  cable
28        companies as defined in section 61-538, Idaho Code ;
29        (c)  Representatives  of the department, which shall comprise no more than
30        one-third (1/3) of the total members of the work group.
31        (3)  The work group shall:
32        (a)  Identify those minimum statutory  changes  and  terms  of  agreements
33        among the entities represented which are necessary to bring the state into
34        compliance with  section 455(a)(17) of  42 U.S.C.  section
35         666(a) (17) ;
36        (b)  Define the type of information in the hands of financial institutions
37        and  utilities which is not otherwise available and which, if available to
38        the department, would actually and verifiably improve the effectiveness of
39        child support collection;
40        (c)  As a term of each proposed agreement, limit authority to engage match
41        functions and access to all information received to the smallest number of
42        upper management in the department as is possible;
43        (d)  Develop written protocol within the  department  for  the  foregoing,


                                          2

 1        delineating  which  functions  would  be  performed by which personnel and
 2        under what circumstances;
 3        (e)  Limit engagement of contracted data match functions to those obligors
 4        who are in arrears  of at least five thousand dollars ($5,000) or for
 5        one (1) year and only after all other methods available to the  department
 6        have  failed    in an amount equal to or greater than the total
 7        support owing for at least ninety  (90)  days,  or  two  thousand  dollars
 8        ($2,000), whichever is less ;
 9        (f)  Provide  for  annual  statistical  verification of the improvement to
10        child  support enforcement in this state which results  from  use  of  the
11        data match functions contained in the proposed agreements;
12        (g)  Design  the data match system identified herein in such a manner that
13        it will be the least intrusive, least expensive and most confidential sys-
14        tem possible .  ; 
15        (h)  Develop a satisfactory contract term to protect the contracting enti-
16        ties from legal liability for disclosure of information as  authorized  by
17        statute  and  to protect the public's right of action for wrongful disclo-
18        sure.
19        (4)  The department is authorized to enter into agreements with the  enti-
20    ties  represented by members of the work group   identified in
21    subsection (2) of this section , and pay reasonable compensation to such
22    entities, not to exceed actual costs incurred by such entity in developing the
23    data match system.
24          (5)  Terms of an agreement between the department and an entity may
25    provide for the entity to provide the following information to the  department
26    on  each  obligor who meets the criteria of delinquency as provided in subsec-
27    tion (3)(e) of this section: name, address and place of employment, if  avail-
28    able. The information shall only be used for locate purposes.
29        (6)  Notwithstanding  any  other  provisions  of federal or state law, any
30    entity, or officer, agency or employee of the entity, acting  in  good  faith,
31    shall be immune from any civil or criminal liability for disclosing any infor-
32    mation  to  a state child support enforcement agency pursuant to a contractual
33    obligation arising under an agreement contemplated in this section or  if  the
34    accumulation  of such information is required in state or federal law, rule or
35    regulation. An entity shall not be required  to  give  notice  to  an  account
36    holder  or  customer  of  the  entity  concerning whom the entity has provided
37    information pursuant to this section.  The  state  child  support  enforcement
38    agency which obtains information from any entity may disclose such information
39    only  for  the purpose of, and to the extent necessary to establish, modify or
40    enforce a child support obligation of a delinquent obligor. 

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                             RS 08176
   This amendment clarifies the process for implementing data matches
with financial institutions, public utilities and cable companies in
order to locate the residential or employment address or assets of
child support obligors, to provide protection for the participating
entities from any civil or criminal liability for acting in good faith
to disclose information, and to amend the child support arrears
threshold for those included in this legislation..
   Federal Welfare Reform requirements for child support enforcement
laws which appear at 42 U.S.C. 666 a (section 466(a) of P.L. 104-193)
direct the State to enter into agreements with financial institutions
doing business in the state to identify accounts for non-custodial
parents who owe past due child support exceeding the statutory
threshold.  Public utilities and cable companies are already required
to respond to administrative subpoenas from the child support agency
under Federal Welfare Reform requirements which appear at 42 U.S.C.
666 (section 466 of P..L. 104-193).  Discussion with these entities
and the child support agency have resulted in agreement that voluntary
automated data matches are a more practical approach to meeting the
intent of the federal legislation than using individual administrative
subpoenas.
   A federal workgroup composed of representatives of numerous
financial organizations as well as state and federal child support
staff have met several times to identify the most practical method for
conducting data matches.  A modified version of the IRS 1099 reporting
form has been adopted as the approved method.  This modified 1099
record format has been shared with the Idaho workgroup authorized in
56-203F, and pending further directions from the federal workgroup who
meet again 2-24-98, the workgroup will proceed with developing the
data match approach.
                           FISCAL NOTE
   The financial institutions are meeting with their automated systems
specialists to estimate costs of using the modified IRS 1099 reporting
format for the data matches to determine development costs.  Initial
estimates for data matches with the 28 banking institutions and 85
credit unions would have a one time estimated development cost of
$10,000 per institution, for a total projection of $1,130,000.  On-going quarterly interfaces with the financial institutions would
require an annual expenditure of $9,040.  Development costs for the
matches with up to 6 major utility/cable companies would be $60,000,
with ongoing quarterly interfaces requiring an annual expenditure of
$480.
  It is believed that these one-time costs will be spread over at
least the next two state fiscal years.
CONTACT: JoAn Silva, Div. of Welfare, DHW
         334-5768
           Bill No. H 793