Senate Bill Report SB 5842: Social Security Numbers and Child Support Debt (January 11, 2024)

Summary

This Senate Bill Report on SB 5842, as of January 11, 2024, concerns restricting the use of social security numbers by insurance companies for the purpose of determining child support debt. The Brief Summary states that the bill minimizes the use of an insurance claimant's social security number in determining whether the claimant owes past-due child support by first establishing identity through other personal identifying information. The Background states that an insurance company issuing a payment over $500 to a claimant for a bodily injury, wrongful death, workers' compensation, or life insurance claim must verify whether the claimant owes past-due child support. Senator Patty Kuderer, Prime Sponsor, is listed as testifying PRO.

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Full text

                            SENATE BILL REPORT
                                  SB 5842

                                      As of January 11, 2024

Title: An act relating to restricting the use of social security numbers by insurance companies
     for the purpose of determining child support debt.

Brief Description: Restricting the use of social security numbers by insurance companies for
     the purpose of determining child support debt.

Sponsors: Senators Kuderer, Frame, Dhingra, Hasegawa, Hunt, Nobles, Wellman and Wilson,
    C..

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/11/24.


                                     Brief Summary of Bill
           • Minimizes the use of an insurance claimant's social security number in
             the process of determining whether they owe past-due child support by
             first establishing the claimant's identity through other personal
             identifying information.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Parents have a legal duty to financially support their children. Child support
     is money paid by a parent to a party taking care of the children to help support the children.
     Child support obligations are established through the court or an administrative process with
     the Department of Social and Health Services (DSHS).

     The DSHS Division of Child Support (DCS) is responsible for administering the state's
     child support enforcement program and provides services to establish, modify, and enforce
     child support orders. DCS also collects child support from parents when the child is either



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5842
     receiving public assistance or is in foster care. Both federal and state law authorize DCS to
     enforce child support obligations through various means including taking withholding
     actions against a responsible parent's wages and earnings, as well as placing a lien on assets
     and benefits, like insurance claim payments. DCS may release an administrative support
     lien or return seized property if the debtor gives adequate assurance of payment.

     An insurance company that issues either a one-time lump sum or an installment payment
     over $500 directly to a claimant for a bodily injury, wrongful death, workers' compensation,
     or life insurance claim must verify whether the claimant owes past-due child support to
     DSHS or to a person receiving services from DCS.

     To determine whether a claimant owes a debt and verify their identity, all insurance
     companies must provide minimum identifying information about the claimant to:
        • an insurance claim data collection organization;
        • the federal office of child support enforcement or the child support lien network; or
        • DCS.

     If it is determined the claimant owes child support and the insurer receives a notice from
     DSHS identifying the amount of debt owed, the insurer must withhold the amount specified
     and remit the amount to DSHS within 20 days.

     Summary of Bill: Insurance companies shall provide minimum identifying information on
     a claimant to DCS, in a manner satisfactory to DSHS. DCS shall minimize the use of
     directly reported social security numbers unless the claimant cannot be identified using the
     claimant's full name, current physical address, and date of birth.

     Appropriation: None.

     Fiscal Note: Requested on January 9, 2024.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This bill came from conversations with
     colleagues where clients in situations had a claim with an insurance company were required
     to provide a social security number. Social security numbers are one of the most trafficked
     things on the dark web. The more we can do to protect this piece of information, the better.
     This bill slightly modifies what is already required to be shared. This will protect an
     individual from cyber security threats.

     Persons Testifying: PRO: Senator Patty Kuderer, Prime Sponsor.

     Persons Signed In To Testify But Not Testifying: No one.


Senate Bill Report                             -2-                                         SB 5842


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