Legislature(1993 - 1994)
02/19/1993 01:30 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 144 "An Act relating to fees for certain costs of administering the permanent fund dividend program." Representative Martin stated that HB 144 is designed to transfer the costs of administering permanent fund dividend assignments and attachments back to the person whose financial obligations are the cause of assignment or attachment. The amount of every Alaskan's permanent fund dividend is affected by the cost of operating the Permanent Fund Dividend Division. The Division processed over fifty-one thousand assignments in 1992. If HB 144 is passed, the cost of processing the attachment or assignment will be paid by the obligor instead of being absorbed by the Division as a cost of doing business. The effect of the bill would be that every Alaskan's dividend would be increased, albeit by a small amount; and those Alaskans whose financial practices cause their dividends to be assigned will pay a fee for the cost of the extra handling and processing. Representative Navarre commented that he thought the cost would be closer to $.10 per check. He felt this was a minor charge. Representative Hanley agreed with Representative Navarre although he thought that if someone were at fault they should pay the administrative costs. Representative Navarre questioned the assignments from denied felons and the probability that those costs would be paid. (Tape Change, HFC 93-28, Side 1). ROD MOURANT, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF REVENUE, clarified that the charge would be 9 $1.18 per assignment which is processed by the Division. Administrative Settlement Act Representative Brown asked when the accounting would be available from the Department of Revenue regarding the Administrative Settlement Account. Mr. Mourant stated the final version of that information is nearly ready. Representative Brown understood that the amount of the settlements would total $279 million dollars. Mr. Mourant stated that he did know the numbers but would provide the Committee that information as soon as it was available. Representative Brown pointed out that there are large amounts of money being moved around and she wanted to have the information made available as soon as possible. Mr. Mourant replied, that the review and auditing process relating to assessment payments is not a simple process. HOUSE BILL 144 Representative Navarre asked if more than one entity attached to the dividends would their administrative costs be added. Mr. Mourant replied, that if there was sufficient balance to satisfy all services, they would be charged each time. Representative Navarre asked who would have priority in an account. Mr. Mourant stated that either the IRS or the CSED would have priority and noted that each service does cost the Department of Revenue an average of $1.18 average. Representative Martin MOVED to report HB 144 out of Committee with individual recommendations. Representative Navarre OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Hanley, Larson. OPPOSED: Navarre, Brown, Grussendorf. Representatives Hoffman, Foster and MacLean were not present for the vote. The MOTION FAILED, 5-3. Representative Martin requested HB 144 be reconsidered at a later date. HB 144 was HELD in Committee for further discussion.
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