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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
H0793|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN 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 23section 469A(d)(1) of42 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 withsection 455(a)(17) of42 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 arrearsof at least five thousand dollars ($5,000) or for5one (1) year and only after all other methods available to the department6have failedin 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 tiesrepresented by members of the work groupidentified 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 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