Legislature(1997 - 1998)
03/02/1998 09:06 AM Senate HES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 252 - PATERNITY/CHILD SUPPORT/NONSUPPORT CRIMES
BARBARA MIKLOS, Director of the Child Support Enforcement Division
(CSED), explained that SB 252 was introduced solely to comply with
federal welfare reform requirements. The Personal Responsibility
and Work Opportunity Reconciliation Act, commonly known as welfare
reform, passed in Congress in 1996. The intent of the Act is to
change the welfare system so that it is not viewed as a life long
income source, but rather as something temporarily available when
people are in need. When Congress passed the Act, it realized
people need tools to enable the reform to take place so a great
deal of focus was put on child support enforcement provisions. Some
of those provisions require legislative changes. SB 154, passed
last year, met many of the requirements. Some requirements were
put on hold until this year and in the meantime Congress passed
technical amendments to the Act. Congress has warned that if this
legislation is not enacted, the state could suffer financial
penalties in CSED funds and the welfare grant.
MS. MIKLOS described the provisions of the bill as follows. The
legislation requires all employers to report new hires within 20
days. Existing law only requires larger employers to report. That
provision expands the legislation but reduces the penalty for not
reporting from $1,000 to $25. SB 252 also gives the Courts
authority to revoke sports fishing and hunting licenses in criminal
cases or when a person is found in contempt of court. Only a judge
may revoke the license and only in those two cases. SB 252
requires social security numbers be placed on drivers' licenses and
on hunting and sport fishing licenses. MS. MIKLOS noted Dan Branch
of the Department of Law, who drafted SB 252, and Phil Petrie, the
Operations Manager of CSED, were available to answer questions.
Number 554
SENATOR WARD asked Ms. Miklos to expand on her comment that non-
compliance with the federal Act could result in financial penalties
to the State.
MS. MIKLOS explained the Act contains language that authorizes the
Secretary of the Department of Health and Human Services to
withhold all federal child support enforcement and welfare program
funding for non-compliance. The "could" is because the decision to
withhold is left to the discretion of the Secretary. She added the
State of Idaho has already received a letter advising it to hold a
hearing and take action within 60 days, or federal funds will be
withheld.
SENATOR WARD questioned whether committee members had a copy of
that letter and what specific conditions the State of Idaho has to
meet.
MS. MIKLOS offered to provide committee members with a copy of the
letter. She said the agency is requiring the State of Idaho to
pass the provisions of welfare reform but it does not specify which
provisions the State of Idaho is out of compliance with.
SENATOR WARD asked why the State of Idaho has received that
ultimatum and other states that are out of compliance have not.
MS. MIKLOS replied last year Idaho's Legislature passed a bill that
did not meet all of the requirements of the federal Act and
indicated it did not plan to do any more. She thought the reason
Alaska has not received similar correspondence is because the
Department of Health and Social Services believes Alaska intends to
pass legislation this year.
SENATOR LEMAN referred to a CSED question and answer document in
committee members' packets, and specifically to the question of
whether the use of social security numbers in CSED matters serves
enough of a compelling state interest to override a person's right
to privacy. Senator Leman read the following statement from the
document. "The Courts likely will find that any privacy concerns
are far outweighed by society's interest in effective child support
enforcement." He stated that while he agrees with that statement,
he is concerned that the Alaska Courts have handed down two
separate rulings in the past week that are very bizarre in the
application of the Right to Privacy clause as it links with Equal
Protection. He said he has very little confidence in what that
court might do in interpreting CSED's use of social security
numbers. He thought CSED would have a compelling state interest to
protect the right of the child but likewise, so would enhancing the
relationship of a child with a parent, but one judge did not agree.
He said it concerns him when the courts misinterpret what others
find to be common sense.
SENATOR WARD maintained the State of Idaho has taken the position
that it will go through the administrative hearing process first
and should lose no money until that process is complete. He noted
he spoke to a few people whose believe the federal government has
not articulated its position well enough for states to fully
understand the requirements.
Number 504
MS. MIKLOS indicated it is her understanding the State of Idaho is
working on legislation to meet the requirements, and that maybe
both things are occurring simultaneously. She noted the people she
spoke with in Idaho were hoping to get legislation through this
year.
SENATOR WARD asked if she spoke with legislators.
MS. MIKLOS answered she spoke with officials in the child support
division.
SENATOR WARD asked if the State of Idaho will be the first to have
an administrative hearing.
MS. MIKLOS was not sure. She added that most states have attempted
to comply.
SENATOR WARD pointed out the State of Idaho wants to have a hearing
for the purpose of clarification of the Act's requirements.
Number 492
CHAIRMAN WILKEN informed committee members an analysis, prepared by
the National Council of State Legislators, was in committee
packets. He asked Ms. Miklos to review the letter from the
Department of Health and Human Services.
MS. MIKLOS stated the letter says Alaska must comply according to
the welfare reform legislation. She read excerpts from the letter
as follows.
"Therefore, a determination that a state IV-D plan is
disapproved will result in immediate suspension of all federal
payments for the state's child support enforcement programs.
...Alaska received approximately $12.4 million in Title IV-D
funding for the administration of its child support program in
FY 97 and over $3.2 million in Title IV-D performance related
child support incentives.
In addition, in order to be eligible for a block grant for
Temporary Assistance for Needy Families (TANF), the Act
requires the State to certify that it will operate a child
support enforcement program under the state plan approved
under part D. Therefore, TANF funding would also be
jeopardized if the State failed to enact the required child
support legislation on a timely basis. Alaska's federal
funding for IV-A was approximately $63 million."
MS. MIKLOS indicated the total amount of federal funds that could
be lost is $78 million.
SENATOR WARD questioned whether anyone from the Department of
Health and Human Services has notified CSED in writing that even $1
would be eliminated without a hearing.
MS. MIKLOS said no.
SENATOR WARD stated he does not like blackmail in any form, and he
is unsure of the process. He did not think the federal government
has adequately defined its mandates and it is approaching the
problem on a state-by-state basis.
SENATOR GREEN noted the NCSL analysis contains provisions that are
not mandated: one in Section 2, one in Sections 4 and 5, and
Sections 15 and 17. It also contains a repeal of the sunset clause
from last year which is the reason this measure had enough support
to pass the Senate. She said she would be hard pressed to support
this package.
SENATOR WARD thought the committee might need to look at a
different package or require an administrative hearing as the State
of Idaho has.
CHAIRMAN WILKEN stated that unless the HESS committee is willing
and able to rewrite this legislation, the bill should be moved to
the Judiciary Committee where its legal implications will be
analyzed.
SENATOR WARD thought the HESS committee would be passing on its
duty and right to request a hearing.
MS. MIKLOS said if members want to pass the bill on to the
Judiciary Committee, she would be glad to write a letter to Senator
Ward that explains exactly what is happening in Idaho to clarify
this issue.
Number 419
SENATOR GREEN stated she does not know what changes have been made
and what provisions might be implanted in the bill that might have
unintended implications. She noted she is not comfortable passing
this legislation on without a clear understanding of it.
SENATOR WARD pointed out he understands what SB 252 does, but does
not know that the State of Alaska is necessarily required by
federal law to comply. The mandate has been implied through
correspondence from the Department of Health and Social Services,
but the mandate is subject to an action, which is usually a case of
federal officials deciding precisely what the state must do.
CHAIRMAN WILKEN announced SB 252 would be held in committee to give
members more time to discuss the bill's implications with agency
staff.
SENATOR LEMAN asked Ms. Miklos to provide the committee with an
analysis of SB 252 that determines how much of its content was not
in last year's bill, and that compares the bill to the federal law.
MS. MIKLOS noted she already prepared that material and would
provide it to Senator Leman.
CHAIRMAN WILKEN informed committee members he was recently
contacted by an irate constituent about CSED's handling of his
case. Ms. Miklos intervened in the case and the problem was
resolved to everyone's satisfaction. He thanked Ms. Miklos and
stated she is off on the right foot as CSED's new director.
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