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CSSB 96(FIN): "An Act relating to nonpayment of child support, to the definition of the term "state" for the purposes of the Uniform Interstate Family Support Act, to certain judicial and administrative orders for medical support of a child, to periodic review and adjustment of child support orders, to relief from administrative child support orders, to child support arrearages, and 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 SENATE BILL NO. 96(FIN) 01 "An Act relating to nonpayment of child support, to the definition of the term "state" 02 for the purposes of the Uniform Interstate Family Support Act, to certain judicial and 03 administrative orders for medical support of a child, to periodic review and adjustment 04 of child support orders, to relief from administrative child support orders, to child 05 support arrearages, and to medical support of a child and the Alaska Native family 06 assistance program; amending Rule 90.3, Alaska Rules of Civil Procedure; and 07 providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 DEFINITION OF "STATE"; LEGISLATIVE INTENT. It is the intent of the 12 legislature that in order to bring Alaska into conformity with the nationwide Uniform 13 Interstate Family Support Act (UIFSA), as approved by the American Bar Association on

01 February 9, 1993, and as in effect on August 22, 1996, including any amendments officially 02 adopted as of that date by the National Conference of Commissioners on Uniform State Laws, 03 it is necessary to amend AS 25.25.101 to include "an Indian tribe" and "the United States 04 Virgin Islands" in the definition of "state." 05 * Sec. 2. AS 11.51.122(a) is amended to read: 06 (a) A person commits the crime of aiding the nonpayment of child support in 07 the second degree if the person knows that an obligor has a duty under an 08 administrative or judicial order for periodic payment of child support, for cash 09 medical support, or for the provision of health care coverage for a child under a 10 medical support order or a cash medical support order, or both and 11 (1) being a person with a statutory duty to disclose information to a 12 child support enforcement agency intentionally withholds the information when it is 13 requested by a child support enforcement agency; 14 (2) being an employer of the obligor, intentionally withholds 15 information about the residence or employment of the obligor, the eligibility of the 16 obligor's children for coverage under the employer's health insurance plan, or the cost 17 of the coverage of the children under the plan, when that information is requested by a 18 child support enforcement agency or when the employer is required by state or federal 19 law to report the information without a request by a child support enforcement agency; 20 or 21 (3) intentionally participates in a commercial, business, employment, 22 or other arrangement with the obligor, knowing at the time that the arrangement is 23 made that it will allow the obligor to avoid paying all or some of the support when it is 24 due or to avoid having a lien placed on assets for the payment of delinquent support; 25 receipt of a substantial asset for less than fair market value from an obligor after the 26 obligor's support order has been established constitutes a rebuttable presumption that 27 the person receiving the asset knew that the transfer would allow the obligor to avoid 28 paying all or some of the support or to avoid having a lien placed on the asset. 29 * Sec. 3. AS 25.25.101(19) is amended to read: 30 (19) "state" means a state of the United States, the District of 31 Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or

01 any territory or insular possession subject to the jurisdiction of the United States; the 02 term "state" includes an Indian tribe and a foreign jurisdiction that has enacted a law 03 or established procedures for issuance and enforcement of support orders that are 04 substantially similar to the procedures under this chapter or under the Uniform 05 Reciprocal Enforcement of Support Act or the Revised Uniform Reciprocal 06 Enforcement of Support Act; 07 * Sec. 4. AS 25.27.060(c) is amended to read: 08 (c) In a court or administrative proceeding where the support of a minor child 09 is at issue, the court or agency, as applicable, may order either parent or both parents 10 to pay the amount necessary for support, maintenance, nurture, and education of the 11 child. Regardless of whether a support order for periodic payments is issued, the court 12 or agency shall issue a medical support order, a cash medical support order, or 13 both. The medical support order shall require health care insurance coverage for the 14 child if health care insurance coverage is available to either parent or both parents for 15 the child at a reasonable cost. The court or agency shall consider whether the child is 16 eligible for services through the Indian Health Service or other insurance coverage 17 before ordering either parent or both parents to provide health care coverage through 18 insurance, cash medical support, or other means or a combination of insurance, 19 cash medical support, or other means. The court or agency shall allocate equally the 20 cost of health care insurance for the child between the parents unless there is good 21 cause to allocate the costs unequally. If the obligor has the duty to make periodic 22 payments for non-medical child support, the obligor's periodic payments shall be 23 decreased by the amount of the other parent's portion of payments for health insurance 24 ordered by the court or agency and actually paid by the obligor. If the obligor has a 25 duty to make periodic payments for non-medical child support, the periodic payments 26 shall be increased by the obligor's portion of payments for health insurance if the other 27 parent is ordered to and actually does obtain and pay for insurance. The court or 28 agency shall allocate equally between the parents the cost of reasonable health care 29 expenses not covered by private insurance unless there is good cause to allocate the 30 costs unequally. One parent shall reimburse the other parent for the first parent's share 31 of the uncovered expenses paid by the parent within 30 days after receipt by the first

01 parent of the bill for the health care, payment verification, and, if applicable, a health 02 insurance statement indicating what portion of the cost is uncovered. The medical 03 support order must meet the requirements of AS 25.27.063. Upon a showing of good 04 cause, the court may order the parents required to pay support to give reasonable 05 security for payments. 06 * Sec. 5. AS 25.27.160(c) is amended to read: 07 (c) If the agency is establishing only [A] medical support [ORDER], the 08 notice and finding of financial responsibility must state 09 (1) that health care insurance shall be provided for the child to whom 10 the duty of support is owed if health care insurance is available to the alleged obligor 11 at a reasonable cost and that the alleged obligor and the other parent shall share 12 equally the cost of the health care insurance and the costs of reasonable health care 13 expenses not covered by insurance; 14 (2) the sum of periodic payments of cash medical support for 15 which either parent or both parents are found to be responsible under this 16 chapter; 17 (3) the name of the alleged obligee and the obligee's custodian; 18 (4) [(3)] that the alleged obligor may appear and show cause in a 19 hearing held by the agency why the finding is incorrect, should not be finally ordered, 20 and should be modified or rescinded, because 21 (A) no duty of support is owed; 22 (B) health care insurance for the child is not available to the 23 alleged obligor at a reasonable cost; 24 (C) adequate health care is available to the child through the 25 Indian Health Service or other insurance coverage; or 26 (D) there is good cause to allocate the costs of health insurance, 27 cash medical support, or uninsured health care expenses unequally between 28 the parents; 29 (5) [(4)] that, if the person served with the notice under this subsection 30 does not request a hearing within 30 days, a copy of the medical support order will be 31 sent to the person's employer under AS 25.27.063(b) without further notice or hearing

01 for inclusion of the child in family health coverage if it is available through the 02 person's employer. 03 * Sec. 6. AS 25.27.193 is amended to read: 04 Sec. 25.27.193. Periodic review or adjustment of support orders. As 05 necessary to comply with 42 U.S.C. 666, the agency, by regulation, shall provide 06 procedures and standards for the modification, through a three-year cycle of 07 [PERIODIC] review or adjustment, of a support order. Regulations adopted under this 08 section must include procedures for periodic notice of the right to request review, 09 procedures for hearings, and standards for adjustments regarding future periodic 10 support payments. A modification under this section may be made without a showing 11 of a material change in circumstances. 12 * Sec. 7. AS 25.27.195(a) is amended to read: 13 (a) A clerical mistake in an administrative order issued by the agency or an 14 error arising from an oversight or omission by the agency may be corrected by the 15 agency at any time [ON THE MOTION OF AN OBLIGOR]. 16 * Sec. 8. AS 25.27.195(b) is amended to read: 17 (b) The [UPON THE MOTION OF AN OBLIGOR, THE] agency may, at any 18 time, vacate an administrative support order issued by the agency under AS 25.27.160 19 that was based on a default amount rather than on the obligor's actual ability to pay. 20 * Sec. 9. AS 25.27.900(2) is repealed and reenacted to read: 21 (2) "arrearage" means a debt that is past due and equal to at least one 22 monthly obligation under the support order for one or more of the following: 23 (A) monetary support; 24 (B) cash medical support; 25 (C) payment of health care costs or maintenance of health 26 insurance; 27 (D) reimbursement of related costs; 28 (E) payment of attorney fees and legal costs and other fees; 29 (F) penalty, interest, and other relief as required by a support 30 order; 31 * Sec. 10. AS 25.27.900(12) is amended to read:

01 (12) "support order" means any judgment, decree, or order that is 02 issued by a tribunal for the support and maintenance of a child or of a parent with 03 whom the child is living; "support order" includes a judgment, decree, or order 04 (A) on behalf of a child who has reached the age of majority if 05 the judgment, decree, or order was lawfully issued; and 06 (B) for any or all of the following: 07 (i) monetary support, including arrearages; 08 (ii) payment of health care costs or maintenance of 09 health insurance; 10 (iii) payment of cash medical support; 11 (iv) reimbursement of related costs; 12 (v) [(iv)] payment of attorney fees and legal costs and 13 other fees; or 14 (vi) [(v)] penalty, interest, and other relief as required 15 by a tribunal; 16 * Sec. 11. AS 47.07.025(b) is amended to read: 17 (b) Through the child support services agency or on its own behalf, the 18 department may garnish the wages, salary, or other employment income of a person 19 who 20 (1) is required by a medical support order, cash medical support 21 order, or both, under AS 25.27.060(c) to provide insurance or cash coverage of the 22 costs of medical care to a child who is eligible for medical assistance under this 23 chapter; 24 (2) has received payment from a third party for the costs of the 25 services; and 26 (3) has not used the payments to reimburse, as appropriate, the other 27 parent or custodian of the child, the provider of the services, or the department. 28 * Sec. 12. AS 47.27.200(o) is amended to read: 29 (o) The applicability of AS 25.27 in the case of a recipient under an Alaska 30 Native family assistance program includes the following: 31 (1) an obligor is liable to the Alaska Native family assistance program

01 in the amount of the family assistance provided by the program to a child to whom the 02 obligor owes a duty of support except that, if a support order has been entered, the 03 liability of the obligor for assistance provided by an Alaska Native family assistance 04 program may not exceed the amount of support provided for in the support order, and, 05 if a medical support order, cash medical support order, or both, [ORDER OF 06 SUPPORT] has been entered, the liability of the obligor for assistance granted under 07 AS 47.07 may not exceed the amount of support provided for in the medical support 08 order, cash medical support order, or both [ORDER OF SUPPORT]; the child 09 support services agency shall send notice of accruing liability under this paragraph in 10 the same manner as required under AS 25.27.120(c), and, if the agency fails to comply 11 with the notice requirement of this paragraph, interest does not accrue on the liability 12 to the Alaska Native family assistance program unless a support order or medical 13 support order, or cash medical support order, as applicable, has been entered; 14 (2) the child support services agency may appear in an action 15 authorized under AS 25.27.045 at the agency's own discretion if an obligor under 16 AS 25.27 is liable to the Alaska Native family assistance program under (1) of this 17 subsection; 18 (3) an Alaska Native family assistance program to which the child 19 support services agency erroneously disburses an overpayment of child support under 20 an income withholding order is liable to the state for the amount disbursed, plus 21 interest at the rate imposed under AS 25.27.062(l)(1); 22 (4) when the right to receive child support has been assigned to an 23 Alaska Native family assistance program, an agreement under AS 25.27.065(a) that 24 has not been adopted as an administrative order of the child support services agency is 25 not effective during a period when the obligee is receiving assistance under an Alaska 26 Native family assistance program; 27 (5) the child support services agency, on behalf of an Alaska Native 28 family assistance program, shall take all necessary action permitted by law to enforce 29 child support orders entered under AS 25.27, including petitioning the court for orders 30 to aid in the enforcement of child support; 31 (6) if an obligor under AS 25.27 is liable to an Alaska Native family

01 assistance program under (1) of this subsection, the state is subrogated to the rights of 02 the obligee to take actions authorized under AS 25.27.130(a); 03 (7) notwithstanding AS 25.27.130(c), the recovery of an amount for 04 which an obligor under AS 25.27 is liable that exceeds the total assistance granted 05 under AS 47.07 and this chapter shall be paid to the obligee; 06 (8) except as provided in AS 25.27.130(f), if an obligee under 07 AS 25.27 is not receiving assistance under AS 47.07 or this chapter at the time the 08 state recovers money in an action under AS 25.27.130(d) or (1) of this subsection, the 09 recovery of any amount for which the obligor is liable shall be distributed to the 10 obligee for support payments, including medical support payments, that had become 11 due and unpaid since the termination of assistance under AS 47.07 or this chapter 12 under a support order in favor of the obligee; 13 (9) after payment to the obligee under (8) of this subsection, the state 14 may retain an amount not to exceed the total unreimbursed assistance paid on behalf 15 of the obligee under AS 47.07 or this chapter; 16 (10) if an alleged obligor is liable to an Alaska Native family 17 assistance program under (1) of this subsection, and a support order has not been 18 entered, the child support services agency may, at its own discretion, undertake an 19 action to establish paternity and a duty of support using the procedures prescribed in 20 AS 25.27 and may enforce a duty of support using the procedures prescribed in 21 AS 25.27; the agency may also institute administrative proceedings to determine the 22 paternity of a child born out of wedlock upon application of an Alaska Native family 23 assistance program; the agency may not recover costs of genetic tests required under 24 this paragraph from a person who is a recipient of assistance under an Alaska Native 25 family assistance program; 26 (11) when a hearing officer makes a determination under 27 AS 25.27.170(d), the hearing officer shall, in addition to the factors described in 28 AS 25.27.170(e), consider the amount of the alleged obligor's liability to an Alaska 29 Native family assistance program under (1) of this subsection; 30 (12) notwithstanding AS 25.27.255(a), the child support services 31 agency may not pay to an obligee any money that has been assigned to an Alaska

01 Native family assistance program. 02 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 INDIRECT COURT RULE AMENDMENT. AS 25.27.060(c), amended by sec. 4 of 05 this Act, has the effect of changing Rule 90.3, Alaska Rules of Civil Procedure, by changing 06 standards for issuance of medical and other support orders by the court. 07 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. This Act applies to actions filed on or after the effective date of 10 this section and to motions filed on or after the effective date in proceedings filed before, on, 11 or after the effective date of this section. 12 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION: REGULATIONS. The Department of Revenue may proceed to adopt 15 regulations necessary to implement this Act. The regulations take effect under AS 44.62 16 (Administrative Procedure Act), but not before July 1, 2009. 17 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 CONDITIONAL EFFECT. Section 4 of this Act takes effect only if sec. 13 of this Act 20 receives the two-thirds majority vote of each house required by art. IV, sec. 15, Constitution 21 of the State of Alaska. 22 * Sec. 17. Section 15 of this Act takes effect immediately under AS 01.10.070(c). 23 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect July 1, 2009.