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CSHB 192(HSS): "An Act relating to nonpayment of child support; relating to certain judicial and administrative orders for medical support of a child; relating to periodic review and adjustment of child support orders; relating to relief from administrative child support orders; relating to child support arrearages; relating to medical support of a child and the Alaska Native family assistance program; amending Rule 90.3, Alaska Rules of Civil Procedure; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 192(HSS) 01 "An Act relating to nonpayment of child support; relating to certain judicial and 02 administrative orders for medical support of a child; relating to periodic review and 03 adjustment of child support orders; relating to relief from administrative child support 04 orders; relating to child support arrearages; relating to medical support of a child and 05 the Alaska Native family assistance program; amending Rule 90.3, Alaska Rules of Civil 06 Procedure; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 DEFINITION OF "STATE"; LEGISLATIVE INTENT. (a) It is the intent of the 11 legislature that in order to bring Alaska into conformity with the nationwide Uniform 12 Interstate Family Support Act (UIFSA), as approved by the American Bar Association on 13 February 9, 1993, and as in effect on August 22, 1996, including any amendments officially

01 adopted as of that date by the National Conference of Commissioners on Uniform State Laws, 02 it is necessary to amend AS 25.25.101 to include "an Indian tribe" and "the United States 03 Virgin Islands" in the definition of "state." 04 (b) The proposed changes made in AS 25.25.101(19) under sec. 3 of this Act are 05 conforming amendments that will result in procedural changes in Alaska for enforcement and 06 modification of child support orders from other jurisdictions. UIFSA does not determine the 07 authority of an Indian tribe to enter, modify, or enforce a child support order. In Alaska, the 08 scope of tribal authority to enter, modify, or enforce a child support order is an unsettled legal 09 question, due in part to the lack of Indian country in most of the state. In adopting UIFSA 10 conforming amendments, the legislature does not intend to grant or restrict tribal jurisdiction 11 to enter, modify, or enforce child support orders, and the amendments are not intended, either 12 directly or impliedly, to acknowledge, expand, or restrict tribal jurisdiction. 13 * Sec. 2. AS 11.51.122(a) is amended to read: 14 (a) A person commits the crime of aiding the nonpayment of child support in 15 the second degree if the person knows that an obligor has a duty under an 16 administrative or judicial order for periodic payment of child support, for cash 17 medical support, or for the provision of health care coverage for a child under a 18 medical support order or a cash medical support order, or both and 19 (1) being a person with a statutory duty to disclose information to a 20 child support enforcement agency intentionally withholds the information when it is 21 requested by a child support enforcement agency; 22 (2) being an employer of the obligor, intentionally withholds 23 information about the residence or employment of the obligor, the eligibility of the 24 obligor's children for coverage under the employer's health insurance plan, or the cost 25 of the coverage of the children under the plan, when that information is requested by a 26 child support enforcement agency or when the employer is required by state or federal 27 law to report the information without a request by a child support enforcement agency; 28 or 29 (3) intentionally participates in a commercial, business, employment, 30 or other arrangement with the obligor, knowing at the time that the arrangement is 31 made that it will allow the obligor to avoid paying all or some of the support when it is

01 due or to avoid having a lien placed on assets for the payment of delinquent support; 02 receipt of a substantial asset for less than fair market value from an obligor after the 03 obligor's support order has been established constitutes a rebuttable presumption that 04 the person receiving the asset knew that the transfer would allow the obligor to avoid 05 paying all or some of the support or to avoid having a lien placed on the asset. 06 * Sec. 3. AS 25.25.101(19) is amended to read: 07 (19) "state" means a state of the United States, the District of 08 Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or 09 any territory or insular possession subject to the jurisdiction of the United States; the 10 term "state" includes an Indian tribe and a foreign jurisdiction that has enacted a law 11 or established procedures for issuance and enforcement of support orders that are 12 substantially similar to the procedures under this chapter or under the Uniform 13 Reciprocal Enforcement of Support Act or the Revised Uniform Reciprocal 14 Enforcement of Support Act; 15 * Sec. 4. AS 25.27.060(c) is amended to read: 16 (c) In a court or administrative proceeding where the support of a minor child 17 is at issue, the court or agency, as applicable, may order either parent or both parents 18 to pay the amount necessary for support, maintenance, nurture, and education of the 19 child. Regardless of whether a support order for periodic payments is issued, the court 20 or agency shall issue a medical support order, a cash medical support order, or 21 both. The medical support order shall require health care insurance coverage for the 22 child if health care insurance coverage is available to either parent or both parents for 23 the child at a reasonable cost. The court or agency shall consider whether the child is 24 eligible for services through the Indian Health Service or other insurance coverage 25 before ordering either parent or both parents to provide health care coverage through 26 insurance, cash medical support, or other means or a combination of insurance, 27 cash medical support, or other means. The court or agency shall allocate equally the 28 cost of health care insurance for the child between the parents unless there is good 29 cause to allocate the costs unequally. If the obligor has the duty to make periodic 30 payments for non-medical child support, the obligor's periodic payments shall be 31 decreased by the amount of the other parent's portion of payments for health insurance

01 ordered by the court or agency and actually paid by the obligor. If the obligor has a 02 duty to make periodic payments for non-medical child support, the periodic payments 03 shall be increased by the obligor's portion of payments for health insurance if the other 04 parent is ordered to and actually does obtain and pay for insurance. The court or 05 agency shall allocate equally between the parents the cost of reasonable health care 06 expenses not covered by private insurance unless there is good cause to allocate the 07 costs unequally. One parent shall reimburse the other parent for the first parent's share 08 of the uncovered expenses paid by the parent within 30 days after receipt by the first 09 parent of the bill for the health care, payment verification, and, if applicable, a health 10 insurance statement indicating what portion of the cost is uncovered. The medical 11 support order must meet the requirements of AS 25.27.063. Upon a showing of good 12 cause, the court may order the parents required to pay support to give reasonable 13 security for payments. 14 * Sec. 5. AS 25.27.160(c) is amended to read: 15 (c) If the agency is establishing only [A] medical support [ORDER], the 16 notice and finding of financial responsibility must state 17 (1) that health care insurance shall be provided for the child to whom 18 the duty of support is owed if health care insurance is available to the alleged obligor 19 at a reasonable cost and that the alleged obligor and the other parent shall share 20 equally the cost of the health care insurance and the costs of reasonable health care 21 expenses not covered by insurance; 22 (2) the sum of periodic payments of cash medical support for 23 which either parent or both parents are found to be responsible under this 24 chapter; 25 (3) the name of the alleged obligee and the obligee's custodian; 26 (4) [(3)] that the alleged obligor may appear and show cause in a 27 hearing held by the agency why the finding is incorrect, should not be finally ordered, 28 and should be modified or rescinded, because 29 (A) no duty of support is owed; 30 (B) health care insurance for the child is not available to the 31 alleged obligor at a reasonable cost;

01 (C) adequate health care is available to the child through the 02 Indian Health Service or other insurance coverage; or 03 (D) there is good cause to allocate the costs of health insurance, 04 cash medical support, or uninsured health care expenses unequally between 05 the parents; 06 (5) [(4)] that, if the person served with the notice under this subsection 07 does not request a hearing within 30 days, a copy of the medical support order will be 08 sent to the person's employer under AS 25.27.063(b) without further notice or hearing 09 for inclusion of the child in family health coverage if it is available through the 10 person's employer. 11 * Sec. 6. AS 25.27.193 is amended to read: 12 Sec. 25.27.193. Periodic review or adjustment of support orders. As 13 necessary to comply with 42 U.S.C. 666, the agency, by regulation, shall provide 14 procedures and standards for the modification, through a three-year cycle of 15 [PERIODIC] review or adjustment, of a support order. Regulations adopted under this 16 section must include procedures for periodic notice of the right to request review, 17 procedures for hearings, and standards for adjustments regarding future periodic 18 support payments. A modification under this section may be made without a showing 19 of a material change in circumstances. 20 * Sec. 7. AS 25.27.195(a) is amended to read: 21 (a) A clerical mistake in an administrative order issued by the agency or an 22 error arising from an oversight or omission by the agency may be corrected by the 23 agency at any time [ON THE MOTION OF AN OBLIGOR]. 24 * Sec. 8. AS 25.27.195(b) is amended to read: 25 (b) The [UPON THE MOTION OF AN OBLIGOR, THE] agency may, at any 26 time, vacate an administrative support order issued by the agency under AS 25.27.160 27 that was based on a default amount rather than on the obligor's actual ability to pay. 28 * Sec. 9. AS 25.27.900(2) is repealed and reenacted to read: 29 (2) "arrearage" means a debt that is past due and equal to at least one 30 monthly obligation under the support order for one or more of the following: 31 (A) monetary support;

01 (B) cash medical support; 02 (C) payment of health care costs or maintenance of health 03 insurance; 04 (D) reimbursement of related costs; 05 (E) payment of attorney fees and legal costs and other fees; 06 (F) penalty, interest, and other relief as required by a support 07 order; 08 * Sec. 10. AS 25.27.900(12) is amended to read: 09 (12) "support order" means any judgment, decree, or order that is 10 issued by a tribunal for the support and maintenance of a child or of a parent with 11 whom the child is living; "support order" includes a judgment, decree, or order 12 (A) on behalf of a child who has reached the age of majority if 13 the judgment, decree, or order was lawfully issued; and 14 (B) for any or all of the following: 15 (i) monetary support, including arrearages; 16 (ii) payment of health care costs or maintenance of 17 health insurance; 18 (iii) payment of cash medical support; 19 (iv) [(iii)] reimbursement of related costs; 20 (v) [(iv)] payment of attorney fees and legal costs and 21 other fees; or 22 (vi) [(v)] penalty, interest, and other relief as required 23 by a tribunal; 24 * Sec. 11. AS 47.07.025(b) is amended to read: 25 (b) Through the child support services agency or on its own behalf, the 26 department may garnish the wages, salary, or other employment income of a person 27 who 28 (1) is required by a medical support order, cash medical support 29 order, or both, under AS 25.27.060(c) to provide insurance or cash coverage of the 30 costs of medical care to a child who is eligible for medical assistance under this 31 chapter;

01 (2) has received payment from a third party for the costs of the 02 services; and 03 (3) has not used the payments to reimburse, as appropriate, the other 04 parent or custodian of the child, the provider of the services, or the department. 05 * Sec. 12. AS 47.27.200(o) is amended to read: 06 (o) The applicability of AS 25.27 in the case of a recipient under an Alaska 07 Native family assistance program includes the following: 08 (1) an obligor is liable to the Alaska Native family assistance program 09 in the amount of the family assistance provided by the program to a child to whom the 10 obligor owes a duty of support except that, if a support order has been entered, the 11 liability of the obligor for assistance provided by an Alaska Native family assistance 12 program may not exceed the amount of support provided for in the support order, and, 13 if a medical support order, cash medical support order, or both, [ORDER OF 14 SUPPORT] has been entered, the liability of the obligor for assistance granted under 15 AS 47.07 may not exceed the amount of support provided for in the medical support 16 order, cash medical support order, or both, [ORDER OF SUPPORT]; the child 17 support services agency shall send notice of accruing liability under this paragraph in 18 the same manner as required under AS 25.27.120(c), and, if the agency fails to comply 19 with the notice requirement of this paragraph, interest does not accrue on the liability 20 to the Alaska Native family assistance program unless a support order or medical 21 support order, or cash medical support order, as applicable, has been entered; 22 (2) the child support services agency may appear in an action 23 authorized under AS 25.27.045 at the agency's own discretion if an obligor under 24 AS 25.27 is liable to the Alaska Native family assistance program under (1) of this 25 subsection; 26 (3) an Alaska Native family assistance program to which the child 27 support services agency erroneously disburses an overpayment of child support under 28 an income withholding order is liable to the state for the amount disbursed, plus 29 interest at the rate imposed under AS 25.27.062(l)(1); 30 (4) when the right to receive child support has been assigned to an 31 Alaska Native family assistance program, an agreement under AS 25.27.065(a) that

01 has not been adopted as an administrative order of the child support services agency is 02 not effective during a period when the obligee is receiving assistance under an Alaska 03 Native family assistance program; 04 (5) the child support services agency, on behalf of an Alaska Native 05 family assistance program, shall take all necessary action permitted by law to enforce 06 child support orders entered under AS 25.27, including petitioning the court for orders 07 to aid in the enforcement of child support; 08 (6) if an obligor under AS 25.27 is liable to an Alaska Native family 09 assistance program under (1) of this subsection, the state is subrogated to the rights of 10 the obligee to take actions authorized under AS 25.27.130(a); 11 (7) notwithstanding AS 25.27.130(c), the recovery of an amount for 12 which an obligor under AS 25.27 is liable that exceeds the total assistance granted 13 under AS 47.07 and this chapter shall be paid to the obligee; 14 (8) except as provided in AS 25.27.130(f), if an obligee under 15 AS 25.27 is not receiving assistance under AS 47.07 or this chapter at the time the 16 state recovers money in an action under AS 25.27.130(d) or (1) of this subsection, the 17 recovery of any amount for which the obligor is liable shall be distributed to the 18 obligee for support payments, including medical support payments, that had become 19 due and unpaid since the termination of assistance under AS 47.07 or this chapter 20 under a support order in favor of the obligee; 21 (9) after payment to the obligee under (8) of this subsection, the state 22 may retain an amount not to exceed the total unreimbursed assistance paid on behalf 23 of the obligee under AS 47.07 or this chapter; 24 (10) if an alleged obligor is liable to an Alaska Native family 25 assistance program under (1) of this subsection, and a support order has not been 26 entered, the child support services agency may, at its own discretion, undertake an 27 action to establish paternity and a duty of support using the procedures prescribed in 28 AS 25.27 and may enforce a duty of support using the procedures prescribed in 29 AS 25.27; the agency may also institute administrative proceedings to determine the 30 paternity of a child born out of wedlock upon application of an Alaska Native family 31 assistance program; the agency may not recover costs of genetic tests required under

01 this paragraph from a person who is a recipient of assistance under an Alaska Native 02 family assistance program; 03 (11) when a hearing officer makes a determination under 04 AS 25.27.170(d), the hearing officer shall, in addition to the factors described in 05 AS 25.27.170(e), consider the amount of the alleged obligor's liability to an Alaska 06 Native family assistance program under (1) of this subsection; 07 (12) notwithstanding AS 25.27.255(a), the child support services 08 agency may not pay to an obligee any money that has been assigned to an Alaska 09 Native family assistance program. 10 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 INDIRECT COURT RULE AMENDMENT. AS 25.27.060(c), amended by sec. 4 of 13 this Act, has the effect of changing Rule 90.3, Alaska Rules of Civil Procedure, by changing 14 standards for issuance of medical and other support orders by the court. 15 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPLICABILITY. This Act applies to actions filed on or after the effective date of 18 this section and to motions filed on or after the effective date in proceedings filed before, on, 19 or after the effective date of this section. 20 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The Department of Revenue may proceed to adopt 23 regulations necessary to implement this Act. The regulations take effect under AS 44.62 24 (Administrative Procedure Act), but not before July 1, 2009. 25 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 NO CONDITIONAL EFFECT. Because Rule 90.3, Alaska Rules of Civil Procedure, 28 is a substantive rule, sec. 4 of this Act takes effect even if sec. 13 of this Act fails to receives a 29 two-thirds majority vote of each house. 30 * Sec. 17. Section 15 of this Act takes effect immediately under AS 01.10.070(c). 31 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect July 1, 2009.