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H0717................................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.
02/16 House intro - 1st rdg - to printing
02/17 Rpt prt - to Jud
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/23 3rd rdg - FAILED - 31-38-1
AYES -- Bieter, Black(15), Boe, Bruneel, Chase, Clark, Cuddy, Deal,
Gagner, Gould, Henbest, Jaquet, Jones(9), Jones(22), Jones(20), Judd,
Kellogg, Kjellander, Lake, Linford, Mader, Marley, Meyer, Miller,
Newcomb, Pomeroy, Reynolds, Robison, Trail, Watson, Zimmermann
NAYS -- Alltus, Barraclough, Barrett, Bell, Bivens, Black(23),
Callister, Campbell, Crane, Crow, Denney, Ellsworth, Field(13),
Field(20), Hadley, Hansen, Hornbeck, Kempton, Kendell, Kunz,
Loertscher, McKague, Mortensen, Pischner, Richman, Ridinger, Sali,
Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman,
Tippets, Wheeler, Wood, Mr Speaker
Absent and excused -- Geddes
Floor Sponsor - Boe
Filed with Chief Clerk
H0717|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 717 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 (b) Representatives of "public utilities," "cooperatives," and 25 "municipalities" as defined in section 61-332A, Idaho Code, and "telephone 26 corporations" as defined in section 62-603, Idaho Code; 27 (c) Representatives of the department, which shall comprise no more than 28 one-third (1/3) of the total members of the work group. 29 (3) The work group shall: 30 (a) Identify those minimum statutory changes and terms of agreements 31 among the entities represented which are necessary to bring the state into 32 compliance with section 455(a)(17) of 42 U.S.C. 666(a); 33 (b) Define the type of information in the hands of financial institutions 34 and utilities which is not otherwise available and which, if available to 35 the department, would actually and verifiably improve the effectiveness of 36 child support collection; 37 (c) As a term of each proposed agreement, limit authority to engage match 38 functions and access to all information received to the smallest number of 39 upper management in the department as is possible; 40 (d) Develop written protocol within the department for the foregoing, 41 delineating which functions would be performed by which personnel and 42 under what circumstances; 43 (e) Limit engagement of contracted data match functions to those obligors 2 1 who are in arrears of at leastfivetwo thousand 2 dollars ($52 ,000) or forone (1) year and3only after all other methods available to the department have failed4ninety (90) days ; 5 (f) Provide for annual statistical verification of the improvement to 6 child support enforcement in this state which results from use of the data 7 match functions contained in the proposed agreements; 8 (g) Design the data match system identified herein in such a manner that 9 it will be the least intrusive, least expensive and most confidential sys- 10 tem possible.; 11 (h) Develop a satisfactory contract term to protect the contracting enti- 12 ties from legal liability for disclosure of information as authorized by 13 statute and to protect the public's right of action for wrongful disclo- 14 sure. 15 (4) The department is authorized to enter into agreements with the enti- 16 ties represented by members of the work group, and pay reasonable compensation 17 to such entities, not to exceed actual costs incurred by such entity in devel- 18 oping the data match system. 19 (5) Public utilities and cable companies doing business in the state may 20 enter into agreements with the department to participate in a data match sys- 21 tem and the department shall pay reasonable compensation to such entities, not 22 to exceed actual costs incurred by such entity in developing the data match 23 system. Each entity entering into such agreements shall provide the following 24 information to the department on each delinquent obligor: name, address and 25 place of employment, if available. The information shall only be used for 26 locate purposes. 27 (6) Notwithstanding any other provisions of federal or state law, any 28 entity, or officer, agency or employee of the entity, acting in good faith, 29 shall be immune from any civil and criminal liability for disclosing any 30 information to a state child support enforcement agency. An entity shall not 31 be required to give notice to an account holder or customer of the entity con- 32 cerning whom the entity has provided information pursuant to this section. The 33 state child support enforcement agency which obtains information from any 34 entity may disclose such information only for the purpose of, and to the 35 extent necessary to establish, modify or enforce a child support obligation of 36 a delinquent obligor.
STATEMENT OF PURPOSE
RS 07620C2
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. 104193) 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 IMPACT
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 on-going 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:
Name: JoAn Silva
Agency:Div. of Welfare, DHW
Phone: 334-5768
H717