04/07/1994 03:00 PM House L&C

  CHAIRMAN HUDSON invited Representative Davies to the table                   
  to present HB 458 - CHILD SUPPORT NONPAYMENT/LICENSING BAN                   
  "An Act relating to certain licenses and applications for                    
  licenses for persons who are not in compliance with orders,                  
  judgments, or payment schedules for child support."                          
                                                                               
  Number 580                                                                   
                                                                               
  REPRESENTATIVE DAVIES presented CSHB 458 (L&C).  He reminded                 
  the committee that his staff had presented the bill at the                   
  last committee meeting so he would not go through it again                   
  except to discuss the issue raised by Representative Porter                  
  regarding substantial compliance.  He stated there was a                     
  proposed amendment to address this concern.                                  
                                                                               
  Number 592                                                                   
  REPRESENTATIVE PORTER stated the following amendment,                        
  Amendment #1, did take care of the concern that he had.                      
                                                                               
       On page 7, lines 19 - 20, delete "made at least                         
       one payment or partial payment in" and insert                           
       "cumulatively paid an amount equal to or greater                        
       than the amount due for one month during".                              
                                                                               
  REPRESENTATIVE PORTER moved that Amendment #1 be adopted.                    
  There being no objection, it was so ordered.                                 
                                                                               
  Number 598                                                                   
                                                                               
  REPRESENTATIVE WILLIAMS stated that it was his memory that                   
  the department was to work on strengthening the bill.                        
                                                                               
  Number 600                                                                   
                                                                               
  REPRESENTATIVE PORTER stated that he thought the amendment                   
  would satisfy the concerns of the committee.                                 
                                                                               
  There was general discussion about amendment.                                
                                                                               
  Number 636                                                                   
                                                                               
  CHAIRMAN HUDSON summed up what the amendment would effect:                   
  "The trigger was when a self employed individual goes in to                  
  renew his license, the search would be made and if it was                    
  found that they were substantially out of compliance they                    
  would be held off for 150 days until they made the situation                 
  right".                                                                      
                                                                               
  Number 650                                                                   
                                                                               
  KENNETH KIRK, testifying via teleconference from Anchorage,                  
  spoke against the bill.  He stated that not all persons in                   
  arrearage are deserving of punishment.  He asserted that                     
  there were a variety of reasons a person could get behind in                 
  payments without having done anything wrong.                                 
                                                                               
  TAPE 94-34                                                                   
  SIDE B                                                                       
                                                                               
  Number 001                                                                   
                                                                               
  MR. KIRK added that the second point was that the child                      
  support laws are extremely rigid.  He noted that the bill                    
  brings the district attorneys into the scenario and                          
  shouldn't as they have virtually no jurisdiction over these                  
  types of case.                                                               
                                                                               
  MR. KIRK told the committee the bill did not seem to provide                 
  for any administrative appeal.                                               
                                                                               
  Number 090                                                                   
                                                                               
  CHAIRMAN HUDSON interrupted Mr. Kirk to say that staff had                   
  informed him that he was testifying to the previous version                  
  of the bill and that the problems noted were taken care of                   
  in the version before the committee.                                         
                                                                               
  MR. KIRK noted that he was indeed working off of the old                     
  version as that was the only one available and he assumed it                 
  was the one the committee was considering.                                   
                                                                               
  Number 100                                                                   
                                                                               
  JUANITA HENSLEY, Chief, Driver Services, Division of Motor                   
  Vehicles, Department of Public Safety, testified against the                 
  bill.  She contended that the bill would be difficult for                    
  the division to implement and it would have significant                      
  fiscal impact.                                                               
                                                                               
  MS. HENSLEY asked for additional time to review the                          
  committee substitute for comment.                                            
                                                                               
  Number 140                                                                   
                                                                               
  CHAIRMAN HUDSON asked if she could more fully respond to the                 
  bill if the committee were to carry it over to another                       
  meeting.                                                                     
                                                                               
  Number 150                                                                   
                                                                               
  MS. HENSLEY responded that she would be out of town but the                  
  director could respond.                                                      
                                                                               
  Number 189                                                                   
                                                                               
  REPRESENTATIVE SITTON suggested the committee move the bill                  
  and let the next two committee's address some of the                         
  concerns.                                                                    
                                                                               
  Number 206                                                                   
                                                                               
  KIT BALLENTINE, Acting Director, Environmental Sanitation                    
  Section, Division of Environmental Health, Department of                     
  Environmental Conservation, testified to concerns the                        
  division has regarding the reporting requirements needed to                  
  implement this legislation.  Ms. Ballentine said she                         
  believes the bill would have a significant fiscal impact on                  
  the division.                                                                
                                                                               
  Number 218                                                                   
                                                                               
  SHERRIE GOLL, Alaska Women's Lobby and Kidpac, testified in                  
  support of HB 458.  She stated her groups believe that                       
  anything the state can do to help collect the over $300                      
  million that is owed to Alaska's children, they should do                    
  so.                                                                          
                                                                               
  Number 242                                                                   
                                                                               
  KARL LUCK, Director, Division of Occupational Licensing,                     
  Department of Commerce and Economic Development (DCED),                      
  testified that there would be an impact on the division if                   
  this legislation were to pass, but believes it could be                      
  reversed if the Department of Revenue did a internal process                 
  to match deadbeats with applicants for licensure within his                  
  division.  The division's impact would be significantly                      
  lessened.                                                                    
                                                                               
  Number 262                                                                   
                                                                               
  CHAIRMAN HUDSON asked if Occupational Licensing would be                     
  able to delegate the authority to issue the licenses to the                  
  Department of Revenue.                                                       
  Number 270                                                                   
                                                                               
  MR. LUCK replied "no," but that it was not the issuance of a                 
  license that creates the impact but the matching of lists to                 
  identify those who are out of compliance and applicants for                  
  licensure.                                                                   
                                                                               
  Number 308                                                                   
                                                                               
  LARAINE DERR, Deputy Commissioner, Treasury, Department of                   
  Revenue, testified that she supports HB 458, but that it                     
  would have some impact on at least ten different                             
  departments.                                                                 
                                                                               
  MS. DERR explained that the federal government will share 66                 
  percent of the costs of the fiscal impact on the state.  She                 
  suggested that the money be deposited into the child support                 
  division and then RSA'd out to the various departments                       
  affected by the legislation.                                                 
                                                                               
  Number 345                                                                   
                                                                               
  CHAIRMAN HUDSON asked if the agencies referenced in this                     
  hearing could take this concept and implement it without                     
  legislation.                                                                 
                                                                               
  Number 350                                                                   
                                                                               
  MS. DERR answered that they could do it administratively but                 
  felt that the impact of the legislation would be preferable.                 
                                                                               
  JIM ARNESON, Alaska Family Support Group, stated that his                    
  group is opposed to the bill and believes it would be a                      
  return to the "debtors prison" mentality.                                    
                                                                               
  MR. ARNESON noted that there is a good compliance rate when                  
  both parents have good visitation such as in the case of                     
  joint custody.                                                               
  MR. ARNESON stated that it would not be in any ones best                     
  interest to take away the license of an obligor and leave                    
  them with no way to make an income.                                          
                                                                               
  Number 428                                                                   
                                                                               
  CHAIRMAN HUDSON stated that he would hold the bill over and                  
  asked the prime sponsor to get together with the agencies                    
  that would be affected by the bill and address the concerns                  
  they have.