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SCS CSHB 337(FIN): "An Act relating to claims against permanent fund dividends to pay amounts owed to the Department of Labor and Workforce Development under the Alaska Employment Security Act and to fees for processing certain claims against permanent fund dividends; and providing for an effective date."

00SENATE CS FOR CS FOR HOUSE BILL NO. 337(FIN) 01 "An Act relating to claims against permanent fund dividends to pay amounts 02 owed to the Department of Labor and Workforce Development under the Alaska 03 Employment Security Act and to fees for processing certain claims against 04 permanent fund dividends; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.23.071 is amended to read: 07  Sec. 43.23.071. Fees for processing claims and assignments. The department 08 shall by regulation adopted under AS 44.62 (Administrative Procedure Act) establish 09 fees for processing claims on dividends received by the department under 10 AS 43.23.065 , [OR] 43.23.067 , or 43.23.072 and for processing assignments of 11 dividends received by the department under AS 43.23.069(b). The fees shall cover the 12 administrative expenses of the department associated with the claims and assignments. 13 Fees shall be deducted from the amount of the dividend remaining after payment of 14 the portion claimed or assigned , or, if the entire dividend is claimed or assigned, the

01 fees shall be deducted before the dividend is paid to the creditor or assignee. 02 * Sec. 2. AS 43.23 is amended by adding a new section to read: 03  Sec. 43.23.072. Claims for amounts owed under the Alaska Employment 04 Security Act. (a) AS 09.38 does not apply to permanent fund dividends taken by the 05 Department of Labor and Workforce Development for a claim for payment of money 06 owed under AS 23.20 (Alaska Employment Security Act). Notwithstanding AS 09.35, 07 execution on a dividend claimed under this section is accomplished by delivering a 08 certified claim to the Department of Revenue containing the following information: 09  (1) the name and social security number of the individual whose 10 dividend is being claimed; if the Department of Labor and Workforce Development 11 does not have access to the individual's social security number for this purpose, the 12 department may supply other identification information authorized under regulations 13 to make a claim under AS 43.23.065; 14  (2) the amount the individual owes on the claim under AS 23.20; 15  (3) a statement that 16  (A) the Department of Labor and Workforce Development has 17 notified the individual that future permanent fund dividends of the individual 18 will be taken to satisfy the claim under AS 23.20; 19  (B) the individual was notified of the right to request a hearing 20 under AS 23.20 and the Department of Labor and Workforce Development has 21 allowed the individual at least 30 days after the date of the notice described in 22 (A) of this paragraph to request a hearing on the claim; 23  (C) the claim under AS 23.20 has not been contested, or, if 24 contested, the issue has been resolved in favor of the Department of Labor and 25 Workforce Development; and 26  (D) if the claim under AS 23.20 has been contested and 27 resolved in favor of the Department of Labor and Workforce Development, an 28 appeal is not pending, the time limit for filing an appeal has expired, or the 29 appeal has been resolved in favor of the department. 30  (b) The Department of Labor and Workforce Development shall notify the 31 individual if a dividend is claimed under (a) of this section. The notice shall be sent

01 to the mailing address provided in the individual's permanent fund dividend application 02 and must provide the following information: 03  (1) the amount of the claim under AS 23.20; 04  (2) notice that the permanent fund dividend, or that portion of the 05 permanent fund dividend that does not exceed the amount of the claim under 06 AS 23.20, shall be paid to the Department of Labor and Workforce Development in 07 accordance with priorities established in state law; 08  (3) notice that the individual has a right to request a hearing and has 09 a specific time after the date that the notice is mailed in which to file with the 10 Department of Labor and Workforce Development an objection to paying the claim 11 from the individual's permanent fund dividend. 12  (c) Except as provided in (d) of this section, AS 44.62.330 - 44.62.630 apply 13 to a hearing requested by an individual under (b) of this section. The hearing 14  (1) is limited to issues of identity of the individual and whether an 15 amount is still owing in the claim under AS 23.20; and 16  (2) may be conducted telephonically or in writing. 17  (d) If the Department of Labor and Workforce Development has a notification 18 or hearing procedure established in statute or regulation, the department may instead 19 use that notification and hearing procedure so long as 20  (1) the procedure provides at least the minimum time for notice 21 specified in (a)(3)(B) of this section for the individual to request a hearing; 22  (2) the notice includes the statements required by (b) of this section; 23 and 24  (3) the hearing is limited to the issues specified in (c)(1) of this section. 25  (e) The Department of Labor and Workforce Development may adopt 26 regulations to implement this section under AS 44.62 (Administrative Procedure Act). 27  (f) In a claim for payment under this section, the Department of Labor and 28 Workforce Development may include only fines, penalties, overpayments, attorney 29 fees, costs, and other amounts that 30  (1) are owed the department under other provisions of state law under 31 which the claim under AS 23.20 is being made; and

01  (2) have been established by court judgment or administrative order. 02 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: REGULATIONS. Notwithstanding sec. 5 of this Act, the Department 05 of Labor and Workforce Development may proceed to adopt regulations necessary to 06 implement secs. 1 and 2 of this Act. The regulations take effect under AS 44.62 07 (Administrative Procedure Act), but not before the effective date of secs. 1 and 2 of this Act. 08 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 09 * Sec. 5. Sections 1 and 2 of this Act take effect January 1, 2001.