Legislature(2007 - 2008)HOUSE FINANCE 519

04/03/2008 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 214 HUNTING BY MILITARY,COAST GD., DEPENDENTS TELECONFERENCED
Moved HCS CSSB 214(FIN) Out of Committee
+ SB 255 SNETTISHAM REFUNDING BONDS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 289 HOME ENERGY CONSERVATION TELECONFERENCED
Heard & Held
+= SB 303 SANITATION AND WATER GRANTS TELECONFERENCED
Heard & Held
+= HB 366 DISCLOSURE: APPROPRIATIONS FROM PFD FUND TELECONFERENCED
Moved Out of Committee
HOUSE BILL NO. 366                                                                                                            
                                                                                                                                
     An Act relating to an exemption from public disclosure                                                                     
     of certain appropriations from the dividend fund; and                                                                      
     providing for an effective date.                                                                                           
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  SPONSOR, explained  that the                                                                   
bill pertained to people without  a voice. The Permanent Fund                                                                   
Dividend  (PFD)  was  taken away  from  children  of  certain                                                                   
people in  prison who had lost  their PFD. The bill  makes it                                                                   
possible to use the PFD money  for child support. It does not                                                                   
take away the liability of the  responsible person, but would                                                                   
make sure the Dividend  would get to the young  instead of to                                                                   
the Department of Corrections.                                                                                                  
                                                                                                                                
2:24:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked for clarification regarding  how the                                                                   
bill   would  affect   the  parent's   child  support   debt.                                                                   
Representative  Crawford answered the  PFD money does  not go                                                                   
to the debt.                                                                                                                    
                                                                                                                                
Representative Kelly  queried as to the order  of priority of                                                                   
the distribution.  Representative Crawford responded  that in                                                                   
all  other cases,  the  Child  Support Services  Division  is                                                                   
first in line. The legislation  puts them back into the list.                                                                   
There  is a system  in place  that the  legislation does  not                                                                   
otherwise affect.                                                                                                               
                                                                                                                                
Representative  Gara asked if  the bill  was trying  to solve                                                                   
the problem of  those who owe legal child support  or for all                                                                   
parents.                                                                                                                        
                                                                                                                                
2:27:53 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  answered some  people  are hard  to                                                                   
find. They might have to apply  for the money. He thought the                                                                   
change would not capture everyone but many.                                                                                     
                                                                                                                                
Vice-Chair  Stoltze  noted  that  the  Department  of  Public                                                                   
Safety seemed unaware of the bill.                                                                                              
                                                                                                                                
Co-Chair  Chenault  expressed  questions regarding  the  zero                                                                   
fiscal note.                                                                                                                    
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT  OF REVENUE (DOR), responded  that while                                                                   
there  are  5,000  incarcerated   people  with  active  child                                                                   
support  cases,  between 2000  and  3000 children  not  under                                                                   
state foster  care or  public assistance  would benefit  from                                                                   
the legislation.  Currently when  DOR garnishes the  PFD, the                                                                   
money goes to the  State and is shared between  the state and                                                                   
the  federal government.  The  Department  does  not want  to                                                                   
displace  a shared  state/federal program  with an  all-state                                                                   
program.  He  said  a  lot  of work  needed  to  be  done  to                                                                   
calculate the  amount needed. Co-Chair Chenault  did not want                                                                   
a surprise  in the next  year. He asked  the total  number of                                                                   
children involved.                                                                                                              
                                                                                                                                
2:32:33 PM                                                                                                                    
                                                                                                                                
Mr.  Burnett clarified  that  there are  approximately  5,000                                                                   
obligore parents involved. Generally,  there are 1.6 children                                                                   
per person who is obligated to  pay. However, children can be                                                                   
up   to  40,   because  of   back  money   owed.  There   are                                                                   
approximately 2,000-3,000  children between 0 and  18 who are                                                                   
not currently receiving public benefits.                                                                                        
                                                                                                                                
Co-Chair  Chenault  asked  how Department  of  Revenue  would                                                                   
address that if  there was no General Fund  increase in their                                                                   
budget.                                                                                                                         
                                                                                                                                
DWAYNE   PEOPLES,   DEPUTY   COMMISSIONER,    DEPARTMENT   OF                                                                   
CORRECTIONS,  responded   that  the  House  version   of  the                                                                   
Operating  Budget  has all  of  the  PFD money  allocated  to                                                                   
inmate health  care. If  that component  comes up short,  the                                                                   
Legislature will have to address it.                                                                                            
                                                                                                                                
2:35:39 PM                                                                                                                    
                                                                                                                                
Representative Nelson  thought the emphasis should  be on the                                                                   
children  and not  on the  prisoners.  She did  not want  the                                                                   
children  to   go  without.  Co-Chair  Chenault   agreed  and                                                                   
clarified that  he wanted people  to see the  cost associated                                                                   
with the change.                                                                                                                
                                                                                                                                
Representative   Hawker  addressed   the  fiscal  notes.   He                                                                   
wondered if the legislation would  require the departments to                                                                   
change the  way they are  currently budgeting the  funds. Mr.                                                                   
Burnett  answered   there  is  no  requirement   besides  the                                                                   
Legislature's  intent.  Mr.  Peoples   agreed  there  was  no                                                                   
obligation on his department.                                                                                                   
                                                                                                                                
Representative Hawker asked if  the individual dividend would                                                                   
have  to show how  much it  was reduced  as a  result of  the                                                                   
budgetary change. Mr. Burnett  said that was correct. Because                                                                   
of the way  the statute is constructed, the  Department would                                                                   
be  limited  to the  amount  calculated  from the  number  of                                                                   
people times the dividend paid.                                                                                                 
                                                                                                                                
Representative  Hawker asked if  the statutory authority  was                                                                   
broad  enough.  Mr.  Burnett  thought  there  was  sufficient                                                                   
authorization to provide for the grant program.                                                                                 
                                                                                                                                
2:39:37 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked if  DOR was accustomed  to grant                                                                   
programs paying  money out. Mr.  Burnett said  the Department                                                                   
does not  have grant programs, but  they do pay the  money to                                                                   
parents  of  custodial  children.  There  is  a  disbursement                                                                   
mechanism.                                                                                                                      
                                                                                                                                
Representative Hawker  asked if DOR wanted to  create a grant                                                                   
program  with eligibility  and  compliance  responsibilities.                                                                   
Mr. Burnett stated  that he had discussed the  issue with the                                                                   
Child  Support Director  and other  staff. DOR  was able  and                                                                   
willing to do that.                                                                                                             
                                                                                                                                
2:41:14 PM                                                                                                                    
                                                                                                                                
There  was  a  discussion  about  the  requirements  for  the                                                                   
program.                                                                                                                        
                                                                                                                                
2:43:43 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
2:46:14 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT  HB 366 out  of Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note by Department of Corrections  and Department of Revenue.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 366 was  REPORTED out of Committee with  no recommendation                                                                   
and zero  fiscal note by  Department of Corrections  and zero                                                                   
fiscal note by the Department of Revenue.                                                                                       
                                                                                                                                

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