Legislature(1995 - 1996)
02/15/1996 09:15 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 232
An Act relating to permanent fund dividend program
notice requirements, to the ineligibility for dividends
of individuals convicted of felonies or incarcerated
for misdemeanors, and to the determination of the
number and identity of certain ineligible individuals;
and providing for an effective date.
Co-chairman Halford directed that SB 232 be brought on for
discussion. Senator Frank explained that the proposed bill
would remove third-time misdemeanants from eligibility for
permanent fund dividends. He noted that those moving in and
out of the correctional system incur substantial costs for
the criminal justice system. It is thus appropriate that
they contribute their permanent fund dividends toward
defraying part of that cost.
The major change from the bill that was vetoed last year is
that collection of the dividend is not accelerated, and
dividends are not utilized in the current budget year.
TOM WILLIAMS, aide to Senator Frank, explained that under
current law an individual incarcerated for a felony
conviction is ineligible for a permanent fund dividend in
the next calendar year. The law also allows the amount that
would have been paid to individuals, for the next fiscal
year, to be appropriated from the dividend fund (without
notice on the dividend stub) to three entities:
1. The crime victim compensation fund.
2. Counsel on domestic violence and sexual assault
3. Dept. of Corrections
The proposed bill will accomplish four ends:
1. Increase the pool of individuals ineligible for
the permanent fund dividend to include those who, in a
given year, are convicted of a felony or
incarcerated for their third or subsequent
misdemeanor conviction.
2. Require that the dividend stub provide public
notice of the criteria for denying individuals,
the legislative purpose for denying
those individuals, the amount that would
have been paid in the prior fiscal year
to the individuals, and how that money
was appropriated to the above-noted
agencies in the subsequent fiscal year.
3. Add the departments of Public Safety and Law to
the list of criminal justice system agencies
authorized to receive the funds.
4. Clarify the purposes for which the funds may be
used.
Mr. Williams directed attention to file materials containing
a sectional analysis of the bill and a comparison of
agencies now receiving funds and those which would received
funds under the proposed legislation.
Fiscal notes from the Dept. of Public Safety and Dept. of
Revenue are the same as last year. The note from the Dept.
of Corrections is $68.0 as opposed to zero last year.
While the original approach contemplated that notice
provisions be added to this year's dividends, a proposed
amendment would start notification a year from now.
Concerns regarding prior legislation pertained to whether
agencies that presently garnish permanent fund dividends
would be impacted. The estimated effect on child support
enforcement garnishments is negligible (less than one tenth
of one percent of child support). Mr. Williams further
commented on diversion of permanent fund moneys to child
support and indicated that discussion of that issue would be
ongoing. Department proposals will be explored.
END: SFC-96, #26, Side 1
BEGIN: SFC-96, #26, Side 2
In response to a question from Senator Zharoff, Mr. Williams
noted that legislative attorneys raised constitutional
questions over denial of funds to felons and subsequent
appropriation to a specific individual or case. Senator
Frank advised that the bill would be held in committee to
work on the issue.
NANCY JONES, Director, Permanent Fund Division, Dept. of
Revenue, next came before committee. She referenced the
above-noted amendment and asked that it be favorably
considered.
Speaking to expansion of the class of ineligible permanent
fund dividend recipients, Ms. Jones said that the department
has no problem with addition of felony convictions and
incarcerated misdemeanants. Income diversion, however,
remains a concern.
Ms. Jones further attested to technical problems with the
bill concerning the flow of information on convictions,
particularly for those who are convicted but not
incarcerated.
Ms. Jones voiced support for disclosure requirements of the
bill. She explained that the department interprets bill
language to require that information flow to felons
ineligible to receive the dividend rather than to the
general public. The department fiscal note is higher than
last year because of a noticeable increase in the number of
appeals as a result of the program. The department thus
seeks funding for a position to handle appeals. The issue
is the same within the Dept. of Corrections. Ms. Jones
described the transfer of information between the two
departments during the appeal process.
In her closing remarks, Ms. Jones reiterated support for
expansion of the class of ineligible recipients and urged
that the committee give favorable consideration to addition
of child support--the largest recipient of funds--if that
provision can be added to the bill.
ANNE CARPENETI, Assistant Attorney General, Criminal
Division, Dept. of Law, came before committee. She noted
that denial of dividends to third-time misdemeanants and
those convicted of but not incarcerated for felonies removes
possible funds to pay orders of restitution to victims of
crime who are not covered by the violent crimes compensation
board. Co-chairman Halford asked if statistics are
available showing how many dividend dollars are used for
restitution and child support. Both Co-chairmen concurred
in need for those numbers. Co-chairman Frank advised that
analysis indicates that only a small percentage flows to
child support enforcement.
ADJOURNMENT
The meeting was adjourned at approximately 10:10 a.m.
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