Enrolled SB 393: 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.
00Enrolled SB 393 01 Relating to default on tuition, fees, and other charges of the University of Alaska and to 02 claims on permanent fund dividends for tuition, fees, and other charges of the University of 03 Alaska that are in default. 04 _______________ 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) court ordered fines; 18 (5) writs of execution under AS 09.35 of a judgment that is entered 19 (A) against a minor in a civil action to recover damages and 20 court costs; 21 (B) under AS 34.50.020 against the parent, parents, or legal 22 guardian of an unemancipated minor; 23 (6) a debt owed by an eligible individual to an agency of the state, 24 including the University of Alaska, unless the debt is contested and an appeal is 25 pending, or the time limit for filing an appeal has not expired; 26 (7) a debt owed to a person for a program for the rehabilitation of 27 perpetrators of domestic violence required under AS 12.55.101, AS 18.66.100(c)(15), 28 AS 25.20.061(3), or AS 33.16.150(f)(2). 29 * Sec. 3. AS 43.23 is amended by adding a new section to read: 30 Sec. 43.23.073. Claims of the University of Alaska. (a) AS 09.38 does not 31 apply to a permanent fund dividend taken under AS 14.40.251. Notwithstanding
01 AS 09.35, the University of Alaska may take a permanent fund dividend under 02 AS 14.40.251 by delivering a claim to the department certifying the following 03 information: 04 (1) the name and social security number of the individual whose 05 dividend is being claimed; 06 (2) the amount the individual owes the university; and 07 (3) a statement that 08 (A) the amount claimed is in default under AS 14.40.251; 09 (B) the university has notified the individual that future 10 permanent fund dividends will be taken to satisfy the claim; 11 (C) the individual was notified of the right to request a hearing 12 and allowed 30 days after the date of the notice described in (B) of this 13 paragraph to request the university to hold a hearing on the claim; 14 (D) the claim has not been contested or, if contested, the issue 15 has been resolved in favor of the university; and 16 (E) if the claim has been contested and resolved in favor of the 17 university, no appeal is pending, the time limit for filing an appeal has expired, 18 or the appeal has been resolved in favor of the university. 19 (b) The University of Alaska shall notify the individual of a claim under (a) of 20 this section. The notice shall be sent to the address provided in the individual's 21 permanent fund dividend application and must provide the following information: 22 (1) the amount of the claim; 23 (2) notice that the amount of the permanent fund dividend up to the 24 amount of the claim shall be paid to the university to be credited against the 25 individual's default balance; and 26 (3) notice of the individual's right to a hearing under (c) of this section. 27 (c) Within 30 days after the date of the notice under (b) of this section, the 28 individual may request a hearing. AS 44.62.330 - 44.62.630 apply to a hearing under 29 this subsection. At the hearing, the individual has the burden to show that 30 (1) the university has not sent a notice of default in compliance with 31 AS 14.40.251(b);
01 (2) the notice of default has been rescinded after review under 02 AS 14.40.251(c); or 03 (3) the amount owed by the individual is less than the amount claimed 04 from the permanent fund dividend. 05 (d) If the amount owed is determined under (c) of this section to be some 06 amount greater than $0, but less than the amount claimed, the University of Alaska 07 may amend its claim to the amount determined to be owing.