Legislature(2007 - 2008)SENATE FINANCE 532
04/11/2008 09:00 AM Senate FINANCE
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 366 | TELECONFERENCED | |
| + | SB 160 | TELECONFERENCED | |
| + | HB 65 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| += | HB 332 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 2 | TELECONFERENCED | |
| += | HB 226 | TELECONFERENCED | |
HOUSE BILL NO. 366 am
"An Act relating to an exemption from public disclosure
of certain appropriations from the dividend fund;
relating to execution upon permanent fund dividends by
civilian process servers using electronic procedures;
amending Rule 89, Alaska Rules of Civil Procedure; and
providing for an effective date."
REPRESENTATIVE HARRY CRAWFORD, Sponsor, explained that a
number of years ago the law was changed so that incarcerated
felons and multiple misdemeanants could not collect a
Permanent Fund Dividend. Unfortunately, it prevented their
children who were owed child support from receiving it.
This bill ensures that those children will not lose out on
their child support. Most children of incarcerated parents
have a child support order that is $50 per month. The
majority of the time the parents' only assets are the PFD's.
The bill also provides for electronic delivery of writs by
the Department of Revenue.
10:35:58 AM
Co-Chair Stedman asked if the bill would direct the PFD of a
parent that is incarcerated to the child. Representative
Crawford explained that it would require the Department of
Revenue to estimate the amount of the child's PFD and allow
the child to receive child support payments. The bill is
subject to appropriation by the legislature.
Senator Thomas wondered about the order of dispersal of the
PFD for incarceration costs to the Department of Correction
and the Department of Public Safety. He wondered how much
would be left over for child support payments.
Representative Crawford replied that the bill simply puts
the children back on the list to be able to receive
payments. It does not make an appropriation.
Representative Crawford reported that this year it was
estimated that there would be about $16 million for
incarceration costs. He said there were about 5,000
children, of which about 2,000 would be eligible. He
thought that there would be money left over.
10:39:07 AM
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, reported on currently
calculated PFD felon funds. There were about 10,188 people
who did not qualify for their dividend as a result of
incarceration, which represented about $16,800 in the FY 09
budget.
AT-EASE: 10:39:57 AM
RECONVENED: 10:40:47 AM
Mr. Burnett continued to explain that currently the money is
all appropriated to the Department of Corrections and to the
Department of Public Safety's Council on Domestic Violence
and Sexual Assault. With the passage of the bill, PFD felon
funds would potentially be available for grants to children
of incarcerated parents.
Mr. Burnett reported that next year when the FY 2010 budget
is compiled, the Department of Revenue would estimate how
many children are not in foster care or are wards of the
state and whose parents would have received a PFD absent
their incarceration, and bring a budget request for that
amount. He guessed that next year's felon funds would be
about $21 million to $22 million. He said that half of the
felons who are incarcerated have child support orders. It
is estimated that next year less than 2,000 children would
be eligible for the support, which would require about $4
million to replace garnished dividends.
Co-Chair Stedman said the fiscal notes show zero. Mr.
Burnett said they were zero because the effect of the bill
only allows the appropriations from the PFD felon fund to be
made. The fiscal notes do not show appropriations.
10:43:52 AM
Senator Thomas asked if the legislature would appropriate
money for purposes of child support. He wondered how much
would be available after the other appropriations are made.
Mr. Burnett explained that the monies can be spent for
anything on the list without disclosure on the PFD as a
reduction to peoples' dividends. The bill allows for a
specific appropriation request for a child support grant
program. He related that the appropriation request could be
made in several ways. He gave an example of how it could be
done.
10:45:47 AM
Mr. Crawford explained that the bill allows child support
payments to be back on the list. No one expected to pay for
items in the felon's fund to come off of the backs of
children. It was an unintended consequence.
Senator Olson asked if the incarcerated person has access to
the money. Representative Crawford said they did not.
Senator Thomas said he was supportive of the bill.
Representative Crawford explained that child support orders
are number one in line for garnished wages in all other
instances.
Co-Chair Stedman noted that the fiscal notes need to be
cleared up.
HB 366 was heard and HELD in Committee for further
consideration.
10:49:06 AM
HOUSE BILL NO. 366 am
"An Act relating to an exemption from public disclosure
of certain appropriations from the dividend fund;
relating to execution upon permanent fund dividends by
civilian process servers using electronic procedures;
amending Rule 89, Alaska Rules of Civil Procedure; and
providing for an effective date."
Co-Chair Stedman referred to the revised Department of
Corrections fiscal note which has been changed from a zero
note to an indeterminate note. He referred to the second
paragraph on the fiscal note which states, "In FY 2009
approximately $9.1 million of the $31 million Inmate Health
Care budget is PFD Criminal Funds. If in the future the
legislature chooses to reduce the current level of PFD
Criminal Funds appropriated to the Department of
Corrections, a General Fund appropriation equal to the
reduction would be requested to maintain inmate health care
services." It would be up to the legislature to decide what
would be appropriated annually.
3:45:31 PM
Representative Crawford estimated the amount of felon funds
for the coming year to be $21 to $22 million. The amount
for inmate care will increase, but there should be more than
enough funds to handle the child support request. That
amount can't be known until the number of children are
accounted for. He maintained that it could be about $4
million and there should be enough available.
3:46:38 PM
Senator Elton MOVED to REPORT HB 366 am from Committee with
individual recommendations and accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
HB 366 am was REPORTED from Committee with "no
recommendation" and with a new indeterminate fiscal note
from the Department of Corrections and a previously
published zero fiscal note from the Department of Revenue.
3:47:35 PM
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