00 SENATE CS FOR CS FOR HOUSE BILL NO. 392(FIN) 01 "An Act relating to the confidentiality of permanent fund dividend application 02 information; relating to the permanent fund dividend program; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSES. The purposes of the amendments made to AS 43.23.005(d) and 06 43.23.028(b) in this Act are to obtain 07 (1) a source of additional funding for the state agencies listed in 08 AS 43.23.028(b); and 09 (2) full or partial reimbursement from individuals convicted of a felony or 10 misdemeanor for costs imposed on the state criminal justice system related to convictions and 11 incarcerations. 12 * Sec. 2. AS 14.43.120(i) is amended to read: 13  (i) If a loan is in default, the commission shall notify the borrower that 14 repayment of the remaining balance is accelerated and due by sending the borrower 01 a notice by registered or certified mail. The permanent fund dividend of a borrower 02 may be taken under AS 43.23.065(b)(4) [AS 43.23.065(b)(3)] to satisfy the balance 03 due on the defaulted loan. 04 * Sec. 3. AS 43.23.005(a) is amended to read: 05  (a) An individual is eligible to receive one permanent fund dividend each year 06 in an amount to be determined under AS 43.23.025 if the individual 07  (1) [THE INDIVIDUAL] applies to the department; 08  (2) [ON THE DATE OF APPLICATION THE INDIVIDUAL] is a 09 state resident on the date of application; 10  (3) [THE INDIVIDUAL] was a state resident for at least the calendar 11 year immediately preceding January 1 of the current dividend year; 12  (4) [THE INDIVIDUAL] has been physically present in the state at 13 some time during the prior two calendar years before the current dividend year; [AND] 14  (5) [THE INDIVIDUAL] is 15  (A) a citizen of the United States; 16  (B) an alien lawfully admitted for permanent residence in the 17 United States; 18  (C) an alien with refugee status under federal law; or 19  (D) an alien that has been granted asylum under federal law; 20 and 21  (6) was, during the entire period described in (3) of this subsection, 22 present in the state or, if absent, was absent only as allowed in AS 43.23.008. 23 * Sec. 4. AS 43.23.005(c) is amended to read: 24  (c) A parent, guardian, or other authorized representative who meets the 25 requirements of (a)(2) - (6) of this section may claim a permanent fund dividend on 26 behalf of an unemancipated minor or on behalf of a disabled or an incompetent 27 individual who is eligible to receive a payment under this section. Notwithstanding 28 (a)(2) - (4) of this section and AS 43.23.008(b), a minor who is otherwise eligible is 29 eligible for a dividend if, during the two calendar years immediately preceding the 30 current dividend year, the minor was born to or adopted by an individual who is 31 eligible for a dividend for the current dividend year. 01 * Sec. 5. AS 43.23.005(d) is amended to read: 02  (d) Notwithstanding the provisions of (a) - (c) of this section, an individual 03 [WHO HAS BEEN CONVICTED OF A FELONY] is not eligible for a permanent 04 fund dividend for a dividend year when (1) during the calendar year immediately 05 preceding that dividend year the individual was convicted of a felony; or (2) [,] 06 during all or part of the [PREVIOUS] calendar year immediately preceding that 07 dividend year, as a result of the conviction of a felony or misdemeanor, the 08 individual was [IS] incarcerated. This subsection does not apply if the conviction 09 is reversed. An action taken under AS 12.55.085 - 12.55.110 does not constitute 10 reversal of a conviction for purposes of this subsection. 11 * Sec. 6. AS 43.23 is amended by adding a new section to read: 12  Sec. 43.23.008. ALLOWABLE ABSENCES. (a) Subject to (b) of this 13 section, an otherwise eligible individual who is absent from the state during the 14 calendar year immediately preceding the current dividend year remains eligible for the 15 dividend if the individual was absent 16  (1) receiving full-time technical training as part of a career education 17 program recognized by the Alaska Commission on Postsecondary Education; 18  (2) attending full-time an academic institution, seminar, or other 19 program for continuing professional educational development, including a sabbatical, 20 legal, or accounting program, recognized by the Alaska Commission on Postsecondary 21 Education; 22  (3) attending a special education program to assist in the treatment of 23 learning or physical disabilities or the treatment of mental disorders if attendance is 24 recommended by a licensed physician, psychologist, physical therapist, or the 25 commissioner of education; 26  (4) attending full-time at an educational institution in grades 7 through 27 12; 28  (5) attending full-time at an accredited college, university, or junior or 29 community college in a program leading to an associate, baccalaureate, or graduate 30 degree; 31  (6) serving on active duty as a member of the armed forces of the 01 United States; 02  (7) receiving continuous medical treatment recommended by a licensed 03 physician or convalescing as recommended by the physician that treated the illness if 04 the treatment or convalescence is not based on a need for climatic change; 05  (8) accompanying a minor who is absent under (7) of this subsection; 06  (9) serving as a member of the United States Congress; 07  (10) serving on the staff of a member of the United States Congress 08 from the state; 09  (11) serving as a full-time volunteer in the Peace Corps; 10  (12) serving as an employee of the state, including employment in a 11 field office; 12  (13) in the custody of the state; 13  (14) actively participating on a United States national athletic team as 14 an eligible athlete as defined by the International Federation and National Governing 15 Body for each nonprofessional sport; 16  (15) accompanying an eligible individual as the spouse, minor 17 dependent, or disabled dependent of the eligible individual; 18  (16) for a reason consistent with the individual's intent to remain a 19 resident, provided the absence or cumulative absences do not exceed 20  (A) 180 days if the individual is not claiming an absence under 21 (1) - (15) of this subsection and provided that the individual 22  (i) established the individual's principal home in this 23 state before leaving this state; 24  (ii) has not taken an action inconsistent with an intent 25 to maintain the individual's principal home in this state; 26  (iii) has not taken an action to establish or maintain a 27 principal home outside of this state; 28  (iv) returned to the individual's principal home in this 29 state at the conclusion of the absence; 30  (B) the greater of 90 days, one school semester during which 31 the individual was enrolled, or one school quarter during which the individual 01 was enrolled, in addition to any absence or cumulative absences claimed under 02 (1) or (5) of this subsection if the individual is not claiming any absence under 03 (2) - (4) or (6) - (15) of this subsection; or 04  (C) 45 days in addition to any absence or cumulative absences 05 claimed under (1) - (15) of this subsection. 06  (b) An individual who is otherwise eligible and who is absent for more than 07 180 days during the calendar year immediately preceding January 1 of the current 08 dividend year remains eligible for the dividend only if the individual was a resident 09 of the state for at least six consecutive months immediately before leaving the state. 10 * Sec. 7. AS 43.23.015(b) is amended to read: 11  (b) The department shall prescribe and furnish an application form for claiming 12 a permanent fund dividend. The application must include 13  (1) notice of the penalties provided for under AS 43.23.035; [AND 14 CONTAIN] 15  (2) a statement of eligibility and a certification of residency to be 16 signed by the applicant or appropriate representative if the application is filed 17 under AS 43.23.005(c) or (e) of this section; and 18  (3) a statement to be signed by 19  (A) two other people who can attest to the eligibility of the 20 applicant; or 21  (B) one other person who can attest to the eligibility of the 22 applicant if the application is filed under AS 43.23.005(c) or (e) of this 23 section. 24 * Sec. 8. AS 43.23.028(b) is amended to read: 25  (b) The notice requirements of (a) of this section do not apply to 26 appropriations from the dividend fund to the crime victim compensation fund 27 established under AS 18.67.162, to the council on domestic violence and sexual assault 28 established under AS 18.66.010, to the court system, or to the Department of 29 Corrections to the extent that amounts appropriated for a fiscal year do not exceed the 30 total amount that would have been paid during that same [THE PREVIOUS] fiscal 31 year to individuals who are ineligible to receive dividends under AS 43.23.005(d) if 01 they had been eligible. 02 * Sec. 9. AS 43.23.035(a) is amended to read: 03  (a) In addition to any criminal penalties imposed by state law, if an individual 04 is convicted of a crime in connection with a false statement made in a certification 05 required under AS 43.23.015, and the conviction is not reversed, that individual forfeits 06 all permanent fund dividends paid and is not eligible for a future permanent fund 07 dividend. An action taken under AS 12.55.085 - 12.55.110 does not constitute 08 reversal of a conviction for purposes of this subsection. 09 * Sec. 10. AS 43.23.035(d) is amended to read: 10  (d) If notice is not sent within the time required under (b) of this section, 11 administrative or judicial proceedings may not be commenced for recovery of an 12 improperly paid dividend. The time limitations of (b) of this section do not apply 13  (1) to a duplicate payment of a dividend; 14  (2) if a dividend is forfeited under (a) of this section; or 15  (3) if it is more probable than not that an individual has committed a 16 crime in connection with a false statement made in an application. 17 * Sec. 11. AS 43.23.035 is amended by adding new subsections to read: 18  (e) Except as provided in (f) of this section, the department may not, during 19 the time in which an appeal may be filed or while an appeal is pending, pay a 20 dividend to an individual who, as a result of a proceeding under this section, owes 21 money to the state. 22  (f) The department shall pay to an individual who is not the subject of a 23 criminal investigation under this section any prior year dividend for which the 24 individual is eligible if, by September 30 of the year following the year for which the 25 dividend is declared, the 26  (1) individual has not exhausted the individual's appeal rights related 27 to the money owed to the state as a result of a proceeding under this section; and 28  (2) department has not issued a formal hearing decision affirming that 29 the individual owes money to the state as a result of a proceeding under this section. 30 * Sec. 12. AS 43.23.055 is amended to read: 31  Sec. 43.23.055. DUTIES OF THE DEPARTMENT. The department shall 01  (1) annually pay permanent fund dividends from the dividend fund; 02  (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 03 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 04 and time limits for claiming a permanent fund dividend and for providing missing 05 or additional information; the department shall determine the number of eligible 06 applicants by October 1 of the year for which the dividend is declared and pay the 07 dividends by December 31 of that year; 08  (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 09 that establish procedures and time limits for an individual upon emancipation or upon 10 reaching majority to apply for permanent fund dividends not received during minority 11 because the parent, guardian, or other authorized representative did not apply on behalf 12 of the individual; 13  (4) assist residents of the state, particularly in rural areas, who because 14 of language, disability, or inaccessibility to public transportation need assistance to 15 establish eligibility and to apply for permanent fund dividends; 16  (5) use a list of individuals ineligible for a dividend under 17 AS 43.23.005(d) provided annually by [ANNUALLY DETERMINE, IN 18 COOPERATION WITH] the Department of Corrections and the Department of 19 Public Safety to determine [,] the number and identity of those individuals 20 [INELIGIBLE FOR A PERMANENT FUND DIVIDEND UNDER AS 43.23.005(d)]; 21  (6) adopt regulations that are necessary to implement AS 43.23.005(d); 22  (7) adopt regulations that establish procedures for the parent, guardian, 23 or other authorized representative of a disabled individual to apply for prior year 24 permanent fund dividends not received by the disabled individual because no 25 application was submitted on behalf of the individual; 26  (8) adopt regulations that establish procedures for an individual to apply 27 to have a dividend warrant reissued if it is returned to the department as undeliverable 28 or it is not paid within two years of the date of its issuance; however, the department 29 may not establish a time limit within which an application to have a warrant reissued 30 must be filed; 31  (9) adopt regulations establishing an optional longevity bonus program 01 to provide for the direct payment by the department of an individual's permanent fund 02 dividend to an annuity program selected by the individual. 03 * Sec. 13. AS 43.23.065(a) is amended to read: 04  (a) Except as provided in (b) of this section, 45 percent of an individual's 05 [THE ANNUAL] permanent fund dividend [PAYABLE TO AN INDIVIDUAL] is 06 exempt from levy, execution, garnishment, attachment, or any other remedy for the 07 collection of debt. This exemption applies to an eligible individual's permanent fund 08 dividend both before and after payment is made to the individual. No other exemption 09 applies to a dividend. Notwithstanding other laws, a writ of execution upon a dividend 10 that has not been delivered to the debtor may be served on the commissioner by 11 certified mail, return receipt requested. Upon receipt of a writ by certified mail, return 12 receipt requested, the commissioner shall deliver that portion of the dividend executed 13 upon to the court along with the case name and number. 14 * Sec. 14. AS 43.23.065(b) is amended to read: 15  (b) An exemption is not available under this section for permanent fund 16 dividends taken to satisfy 17  (1) amounts owed to the state under AS 43.23.035(a) or (b); 18  (2) child support obligations required by court order or decision of the 19 child support enforcement agency under AS 25.27.140 - 25.27.220; 20  (3) [(2)] court ordered restitution under AS 12.55.045 - 12.55.051 or 21 12.55.100; 22  (4) [(3)] claims on defaulted scholarship loans under AS 43.23.067; 23  (5) [(4)] court ordered fines; or 24  (6) [(5)] a debt, other than a debt under (1) - (5) of this subsection, 25 owed by an eligible individual to an agency of the state, unless the debt is contested 26 and an appeal is pending, or the time limit for filing an appeal has not expired. 27 * Sec. 15. AS 43.23.065(d) is amended to read: 28  (d) The department may not accept an [AN] assignment of a current year 29 dividend or a levy, execution, garnishment, attachment, or other remedy for the 30 collection of debt applied to a current year dividend [FOR A YEAR MAY NOT BE 31 ACCEPTED BY THE DEPARTMENT] before April 1 of the current dividend 01 [THAT SAME] year. AS 09.38.080(c) and 09.38.085 do not apply to a levy on a 02 permanent fund dividend. The department shall include the case number with a 03 dividend or portion of a dividend transmitted to the court in response to a writ of 04 execution or other court order. At the time payment is made to the court, the 05 department shall send to the individual at the address provided in the individual's 06 dividend application and to the court that issued the writ or order a notice that contains 07  (1) notification that all or part of the individual's dividend has been 08 seized under a writ of execution or court order; 09  (2) the name and address of the court that issued the writ or order; 10  (3) the case number for which the writ or order was issued; 11  (4) the amount seized under the writ or order; and 12  (5) notification that the individual has 30 days from the date the notice 13 is mailed in which to file with the court an objection to the seizure if a mistake has 14 been made. 15 * Sec. 16. AS 43.23.069(b) is amended to read: 16  (b) A person may assign the right to receive a permanent fund dividend to a 17  (1) federal, state, or municipal government agency for a debt owed to 18 or administered by the agency; or 19  (2) [TO A] court for a debt owed to the court or a government 20 agency, or for restitution ordered under AS 12.55.045, 12.55.051, or 12.55.100. 21 * Sec. 17. AS 43.23 is amended by adding a new section to read: 22  Sec. 43.23.089. RELEASE OF INFORMATION. (a) Except to the extent 23 required under AS 24.20.271 and AS 24.55.160 - 24.55.170, required for the 24 administration of the permanent fund dividend program, and as provided in this 25 section, information related to an individual's application or dividend, including a 26 dividend eligibility determination made by the department, is confidential. Except as 27 provided in (e) of this section, the department shall provide information related to an 28 individual's application or dividend to that individual upon the request of that 29 individual. Notwithstanding the fact that information may not be subject to public 30 inspection under AS 09.25.110 - 09.25.140, with respect to information related to an 31 individual's application or dividend, the department shall comply with AS 44.99.300 - 44.99.350. 01  (b) The following information is subject to release by the department under the 02 following conditions: 03  (1) to any person who makes a written request and pays a fee set by 04 the department under AS 09.25.110 or 09.25.115, the names and mailing addresses of 05 applicants; 06  (2) to the federal court system for use in developing a jury list and to 07 the state court system for use in developing a jury list under AS 09.20.050, the names, 08 mailing addresses, birth dates, and social security numbers of applicants who are 09 United States citizens 18 years old or older; 10  (3) to the division of elections at the discretion of the department for 11 use in voter registration drives, the names, mailing addresses, and birth dates of 12 applicants who are 18 years old or older; 13  (4) to the Alaska Commission on Postsecondary Education, information 14 for use in the collection of money owed to the commission, and for use in eligibility 15 determinations by the commission; 16  (5) to the Department of Administration, information for use in 17 confirming eligibility for the longevity bonus program and compliance with state 18 employment requirements and claims; 19  (6) to the Department of Health and Social Services, the names, mailing 20 addresses, birth dates, social security numbers of applicants, and necessary payment 21 information to administer the following programs: 22  (A) permanent fund dividend hold harmless under 23 AS 43.23.075; 24  (B) public assistance under AS 47.05 and AS 47.25; 25  (C) medical assistance under AS 47.07; 26  (D) care of children under AS 47.10.230 - 47.10.260; 27  (E) Social Security Act Supplemental Security Income Program 28 under 42 U.S.C. 1381 - 1383; 29  (7) to the Department of Labor, information for use in determining 30 compliance with resident hire requirements, determining characteristics and trends of 31 Alaska's labor force and population, and collecting amounts due to the unemployment 01 compensation fund; 02  (8) to the Department of Law, the names, mailing addresses, birth 03 dates, and social security numbers of applicants for use in the collection of money 04 owed to the state, and for use in investigations by the Department of Law; 05  (9) to the Department of Revenue, 06  (A) child support enforcement division, the names, mailing 07 addresses, birth dates, social security numbers, birth states, and birth names of 08 applicants and other individuals who filed with an applicant for use in the 09 collection of money owed to the state or another, and for use in child support 10 investigations by the state; 11  (B) income and excise audit division, the names, mailing 12 addresses, birth dates, social security numbers, birth states, and birth names of 13 applicants and other individuals who filed with an applicant for use in locating 14 individuals for whom the state has unclaimed property under AS 34.45; 15  (10) to a municipality, the names, mailing addresses, birth dates, and 16 social security numbers of all current dividend year applicants to help the municipality 17 identify and locate individuals who owe a debt to the municipality for use in the 18 collection of money owed to the municipality; 19  (11) to a municipality of this or another state, a state, or the federal 20 government, information 21  (A) to which an applicant has authorized access as a condition 22 of qualification for or participation in a government program; 23  (B) for use in a criminal investigation by the requesting 24 government if the department receives a request from the municipal, state, or 25 federal government; 26  (12) to the United States Department of Treasury, Internal Revenue 27 Service, information for use in the collection of money owed to the federal government 28 and for use in tax compliance investigations by the Internal Revenue Service; 29  (13) to the United States Selective Service System, the names, mailing 30 addresses, birth dates, and social security numbers of all current dividend year 31 applicants between 17 and 28 years of age for determining compliance with federal 01 selective service laws; 02  (14) to a process server at the discretion of the department, information 03 related to payments made by the department to the process server; 04  (15) to a person who has filed an application on behalf of another 05 individual, information regarding the eligibility status of that individual; 06  (16) to the office of a legislator or the governor, information regarding 07 an application filed by an individual if the individual has requested assistance from the 08 legislator or the governor in a matter concerning the application. 09  (c) Notwithstanding (b) of this section, the department may release information 10 regarding a bank, credit union, savings and loan, or other financial account of an 11 individual only if the department 12  (1) receives authorization from the individual to release the information; 13  (2) receives a court order directing that the information be released; 14  (3) receives a request from a municipality, the state, or the federal 15 government and the information is sought in connection with a criminal investigation 16 by the requesting government; or 17  (4) makes use of the information to recover an improperly paid 18 dividend or collect a penalty under AS 43.23.035. 19  (d) The department shall release on request of an adult or emancipated minor 20 information pertaining to all applications filed with the application of the requestor. 21  (e) Notwithstanding other provisions of law and except as required by court 22 order, if an individual who provides the department with information that might 23 disqualify another individual from receiving a dividend requests nondisclosure, the 24 department may not disclose the identity of the individual who provides the 25 information. 26  (f) Notwithstanding (b) and (c) of this section, the department may not release 27 an individual's social security number unless release of the number is required by 28 federal law or the individual has been notified that the department may release the 29 number. 30  (g) Information that the department is authorized to release under this section 31 only for specified uses may not be released until the department obtains a written 01 agreement executed by the requestor. The agreement must contain 02  (1) notice that the information is confidential; 03  (2) a summary of the provisions of AS 11.56.860; 04  (3) a list of the uses that may be made of the information; and 05  (4) a statement by the requestor agreeing to use the information only 06 for the purposes listed. 07 * Sec. 18. AS 43.23.095 is amended to read: 08  Sec. 43.23.095. DEFINITIONS. In this chapter, 09  (1) "Alaska permanent fund" means the fund established by art. IX, 10 sec. 15 of the state constitution; 11  (2) [REPEALED 12  (3) REPEALED 13  (4)] "disabled" means physically or mentally unable to complete and 14 sign an application due to a serious emotional disturbance, visual, orthopedic, or other 15 health impairment, or developmental disability that is attributable to mental retardation, 16 cerebral palsy, epilepsy, autism or other cause; "disabled" does not mean 17 "incompetent"; 18  (3) [(5)] "dividend fund" means the fund established by AS 43.23.045; 19  (4) [(6)] "individual" means a natural person; 20  (5) [(7)] "permanent fund dividend" means a right to receive a payment 21 from the dividend fund; 22  (6) [(8)] "state resident" means an individual who is physically present 23 in the state with the intent to remain permanently in the state under the requirements 24 of AS 01.10.055 or, if the individual is not physically present in the state, maintains 25 and demonstrates at all times an intent [INTENDS] to return to the state to [AND] 26 remain permanently in the state under the requirements of AS 01.10.055 [, AND IS 27 ABSENT ONLY FOR ANY OF THE FOLLOWING REASONS: 28  (A) VOCATIONAL, PROFESSIONAL, OR OTHER SPECIFIC 29 EDUCATION FOR WHICH A COMPARABLE PROGRAM WAS NOT 30 REASONABLY AVAILABLE IN THE STATE; 31  (B) SECONDARY OR POSTSECONDARY EDUCATION; 01  (C) MILITARY SERVICE; 02  (D) MEDICAL TREATMENT; 03  (E) SERVICE IN CONGRESS; 04  (F) OTHER REASONS WHICH THE COMMISSIONER MAY 05 ESTABLISH BY REGULATION; OR 06  (G) SERVICE IN THE PEACE CORPS; 07  (9) "YEAR" MEANS A CALENDAR YEAR]. 08 * Sec. 19. PERMANENT FUND DIVIDENDS FOR CERTAIN SPOUSES AND 09 DEPENDENTS. Notwithstanding the provision in AS 43.23.015(a) that the residency of an 10 individual's spouse may not be the principal factor relied upon in determining the residency 11 of the individual, an otherwise eligible individual who applied for a 1992 or 1993 permanent 12 fund dividend within the time prescribed by law is eligible for the dividend even if the 13 individual was absent from the state while accompanying as the spouse, minor dependent, or 14 disabled dependent another person who was absent for a reason permitted under former 15 AS 43.23.095(8) and was eligible for that dividend. 16 * Sec. 20. Notwithstanding the amendment to AS 43.23.005(d) made in sec. 5 of this Act, 17 for purposes of determining eligibility for 1995 dividends, AS 43.23.005(d) shall be applied 18 as though it had not been amended by this Act. 19 * Sec. 21. Notwithstanding the amendment to AS 43.23.028(b) made in sec. 8 of this Act, 20 the notice requirements of AS 43.23.028(a) do not apply to appropriations from the dividend 21 fund made for fiscal year 1995 to the crime victim compensation fund established under 22 AS 18.67.162, to the Council on Domestic Violence and Sexual Assault established under 23 AS 18.66.010, to the court system, or to the Department of Corrections to the extent that 24 amounts appropriated do not exceed the total amount that would have been paid during fiscal 25 year 1994 and fiscal year 1995 to individuals who are ineligible to receive dividends under 26 AS 43.23.005(d) if they had been eligible. 27 * Sec. 22. Sections 2 - 4, 6 - 8, 12 - 16, 18, and 21 of this Act are retroactive to January 1, 28 1994. 29 * Sec. 23. Sections 1 - 4, 6 - 8, 10 - 19, 21, and 22 of this Act take effect immediately 30 under AS 01.10.070(c). 31 * Sec. 24. Sections 5, 9, and 20 of this Act take effect January 1, 1995.