SB 393: "An Act relating to default on tuition, fees, and other charges of the University of Alaska and to claims on permanent fund dividends for tuition, fees, and other charges of the University of Alaska that are in default."
00 SENATE BILL NO. 393 01 "An Act relating to default on tuition, fees, and other charges of the University of 02 Alaska and to claims on permanent fund dividends for tuition, fees, and other charges of 03 the University of Alaska that are in default." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.40 is amended by adding a new section to read: 06 Sec. 14.40.251. Default on tuition, fees, and charges. (a) For the purposes 07 of this chapter, tuition, a fee, or another charge to an individual by the University of 08 Alaska is in default after payment has become 180 or more days past due. Upon 09 default, the university may take the individual's permanent fund dividend under 10 AS 43.23.073. 11 (b) The University of Alaska shall notify the individual of the default and the 12 consequences of default imposed under (a) of this section by mailing a notice to the 13 individual's most recent address provided to the university by the individual or 14 obtained by the university.
01 (c) An individual may appeal a notice of default by filing a statement with the 02 chief finance officer of the University of Alaska within 30 days after the date of the 03 notice, requesting that the default status be reviewed. AS 44.62 (Administrative 04 Procedure Act) does not apply to the review of default under this section. Within 40 05 days after receiving a written request for review, the chief finance officer shall inform 06 the individual in writing of the decision. The decision of the chief finance officer is a 07 final decision that may be appealed to the superior court under the Alaska Rules of 08 Appellate Procedure. 09 * Sec. 2. AS 43.23.065(b) is amended to read: 10 (b) An exemption is not available under this section for permanent fund 11 dividends taken to satisfy 12 (1) child support obligations required by court order or decision of the 13 child support enforcement agency under AS 25.27.140 - 25.27.220; 14 (2) court ordered restitution under AS 12.55.045 - 12.55.051, 15 12.55.100, or AS 47.12.120(b)(4); 16 (3) claims on defaulted education loans under AS 43.23.067; 17 (4) claims on defaulted tuition, fees, and other charges of the 18 University of Alaska under AS 43.23.073; 19 (5) court ordered fines; 20 (6) [(5)] writs of execution under AS 09.35 of a judgment that is 21 entered 22 (A) against a minor in a civil action to recover damages and 23 court costs; 24 (B) under AS 34.50.020 against the parent, parents, or legal 25 guardian of an unemancipated minor; 26 (7) [(6)] a debt owed by an eligible individual to an agency of the state, 27 unless the debt is contested and an appeal is pending, or the time limit for filing an 28 appeal has not expired; 29 (8) [(7)] a debt owed to a person for a program for the rehabilitation of 30 perpetrators of domestic violence required under AS 12.55.101, AS 18.66.100(c)(15), 31 AS 25.20.061(3), or AS 33.16.150(f)(2).
01 * Sec. 3. AS 43.23 is amended by adding a new section to read: 02 Sec. 43.23.073. Claims of the University of Alaska. (a) AS 09.38 does not 03 apply to a permanent fund dividend taken under AS 14.40.251. Notwithstanding 04 AS 09.35, the University of Alaska may take a permanent fund dividend under 05 AS 14.40.251 by delivering a claim to the department certifying the following 06 information: 07 (1) the name and social security number of the individual whose 08 dividend is being claimed; 09 (2) the amount the individual owes the university; and 10 (3) a statement that 11 (A) the amount claimed is in default under AS 14.40.251; 12 (B) the university has notified the individual that future 13 permanent fund dividends will be taken to satisfy the claim; 14 (C) the individual was notified of the right to request a hearing 15 and allowed 30 days after the date of the notice described in (B) of this 16 paragraph to request the university to hold a hearing on the claim; 17 (D) the claim has not been contested or, if contested, the issue 18 has been resolved in favor of the university; and 19 (E) if the claim has been contested and resolved in favor of the 20 university, no appeal is pending, the time limit for filing an appeal has expired, 21 or the appeal has been resolved in favor of the university. 22 (b) The University of Alaska shall notify the individual of a claim under (a) of 23 this section. The notice shall be sent to the address provided in the individual's 24 permanent fund dividend application and must provide the following information: 25 (1) the amount of the claim; 26 (2) notice that the amount of the permanent fund dividend up to the 27 amount of the claim shall be paid to the university to be credited against the 28 individual's default balance; and 29 (3) notice of the individual's right to a hearing under (c) of this section. 30 (c) Within 30 days after the date of the notice under (b) of this section, the 31 individual may request a hearing. AS 44.62.330 - 44.62.630 apply to a hearing under
01 this subsection. At the hearing, the individual has the burden to show that 02 (1) the university has not sent a notice of default in compliance with 03 AS 14.40.251(b); 04 (2) the notice of default has been rescinded after review under 05 AS 14.40.251(c); or 06 (3) the amount owed by the individual is less than the amount claimed 07 from the permanent fund dividend. 08 (d) If the amount owed is determined under (c) of this section to be some 09 amount greater than $0, but less than the amount claimed, the University of Alaska 10 may amend its claim to the amount determined to be owing. 11 * Sec. 4. AS 47.05.080(b) is amended to read: 12 (b) The permanent fund dividend of a former recipient of a public assistance 13 program listed under (a) of this section may be taken under AS 43.23.065(b)(7) 14 [AS 43.23.065(b)(6)] and 43.23.068 to satisfy the balance due on a defaulted 15 overpayment claim. 16 * Sec. 5. AS 47.12.155(d) is amended to read: 17 (d) The permanent fund dividend of an indigent parent or guardian 18 participating in treatment ordered under (b) of this section may be taken under 19 AS 43.23.065(b)(7) [AS 43.23.065(b)(6)] and 43.23.066 to satisfy the balance due on 20 a reimbursement claim by the department under (c) of this section.