Legislature(1993 - 1994)

04/05/1994 03:00 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                          April 5, 1994                                        
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Bill Hudson, Chairman                                                   
  Rep. Joe Green, Vice Chair                                                   
  Rep. Bill Williams                                                           
  Rep. Joe Sitton                                                              
  Rep. Brian Porter                                                            
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Rep. Eldon Mulder                                                            
  Rep. Jerry Mackie                                                            
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 301:   "An Act prohibiting the sale of certain studded                    
            tires or the sale of certain studs to be installed                 
            in tires; and providing for an effective date."                    
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  HB 388:   "An Act establishing a comprehensive policy                        
            relating to human resource development in the                      
            state."                                                            
                                                                               
            HEARD AND HELD IN COMMITTEE                                        
                                                                               
  *HB 458:  "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."                                      
                                                                               
            HEARD AND HELD IN COMMITTEE                                        
                                                                               
  (* First public hearing.)                                                    
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  REP. MARK HANLEY                                                             
  Alaska State Legislature                                                     
  State Capitol, Room 515                                                      
  Juneau, Alaska 99801                                                         
  Phone:  (907) 465-4939                                                       
  Position Statement:  Prime Sponsor of HB 301                                 
                                                                               
  JAN HANSEN, Director                                                         
  Division of Public Assistance                                                
  Department of Health and Social Services                                     
  Alaska Office Building, Room 309                                             
  Juneau, Alaska 99811                                                         
  Phone:  (907) 465-3347                                                       
  Position Statement:  Testified on HB 388                                     
                                                                               
  ROBERT J. KROGSENG                                                           
  Legislative Aide                                                             
  Rep. Jerry Sander's Office                                                   
  Alaska State Legislature                                                     
  State Capitol, Room 414                                                      
  Juneau, Alaska 99801                                                         
  Phone:  (907) 465-4945                                                       
  Position Statement:  Testified on HB 388                                     
                                                                               
  ARBE WILLIAMS                                                                
  Special Assistant                                                            
  Department of Labor                                                          
  1111 W. 8th Street                                                           
  Juneau, Alaska  99802                                                        
  Phone:  (907) 465-2700                                                       
  Position Statement:  Testified on HB 388                                     
                                                                               
  DEBRA CALL                                                                   
  Alaska Job Training Council                                                  
  12342 W. Prince of Peace                                                     
  Eagle River, Alaska  99577                                                   
  Phone:  (907) 696-5786                                                       
  Position Statement:  Testified on HB 388                                     
                                                                               
  VINCE BARRY, Director                                                        
  Education Program Support                                                    
  Department of Education                                                      
  Goldbelt Building, Suite 200                                                 
  Juneau, Alaska  99801                                                        
  Phone:  (907) 465-8689                                                       
  Position Statement:  Testified on HB 388                                     
                                                                               
  FAWN HELMS                                                                   
  Legislative Aide                                                             
  Rep. John Davies' Office                                                     
  Alaska State Legislature                                                     
  State Capitol Building, Room 418                                             
  Juneau, Alaska  99801                                                        
  Phone:  (907) 269-6800                                                       
  Position Statement:  Presented HB 458                                        
                                                                               
  MARY GAY, Director                                                           
  Child Support Enforcement Division                                           
  Department of Revenue                                                        
  550 W. 7th, Suite 312                                                        
  Anchorage, Alaska  99501-3556                                                
  Phone:  (907) 269-6800                                                       
  Position Statement:  Testified in support of HB 458                          
                                                                               
  ROBERT ARMSTRONG                                                             
  P.O. Box 542                                                                 
  Wrangell, Alaska  99929                                                      
  Phone:  (907) 874-3743                                                       
  Position Statement:  Testified in opposition to HB 458                       
                                                                               
  PAT NEAL                                                                     
  P.O. Box 2059                                                                
  Wrangell, Alaska 99929                                                       
  Phone:  (907) 874-2519                                                       
  Position Statement:  Testified in opposition to HB 458                       
                                                                               
  DOUGLAS O'BRIEN                                                              
  P.O. Box 81803                                                               
  Fairbanks, Alaska  99708                                                     
  Phone:  (907) 479-7543                                                       
  Position Statement:  Testified in opposition to HB 458                       
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 301                                                                
  SHORT TITLE: BAN SALE OF SOME STUDDED TIRES AND STUDS                        
  SPONSOR(S): REPRESENTATIVE(S) HANLEY,Finkelstein                             
  JRN-DATE    JRN-PG                     ACTION                                
  05/06/93      1665    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  05/06/93      1665    (H)   TRA, L&C, FINANCE                                
  05/07/93      1695    (H)   COSPONSOR(S): FINKELSTEIN                        
  03/15/94      2813    (H)   SPONSOR SUBSTITUTE                               
                              INTRODUCED-REFERRALS                             
  03/15/94      2813    (H)   TRA, LABOR & COMMERCE,                           
                              FINANCE                                          
  03/22/94              (H)   TRA AT 05:00 PM CAPITOL 17                       
  03/22/94              (H)   MINUTE(TRA)                                      
  03/23/94      2927    (H)   TRA RPT  1DP 1NR 2AM                             
  03/23/94      2927    (H)   DP:  MULDER                                      
  03/23/94      2927    (H)   NR:  HUDSON                                      
  03/23/94      2927    (H)   AM:  G.DAVIS, VEZEY                              
  03/23/94      2927    (H)   -FISCAL NOTE (DOT) 3/23/94                       
  03/31/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  BILL:  HB 388                                                                
  SHORT TITLE: STATE POLICY ON HUMAN RESOURCE DEVELOPMT                        
  SPONSOR(S): COMMUNITY AND REGIONAL AFFAIRS BY REQUEST                        
  JRN-DATE    JRN-PG                     ACTION                                
  01/21/94      2124    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/21/94      2124    (H)   LABOR & COMMERCE, HES, FINANCE                   
  03/31/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  BILL:  HB 458                                                                
  SHORT TITLE: CHILD SUPPORT NONPAYMENT/LICENSING BAN                          
  SPONSOR(S): REPRESENTATIVE(S) DAVIES                                         
  JRN-DATE    JRN-PG                     ACTION                                
  02/09/94      2320    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/09/94      2321    (H)   L&C, JUDICIARY, FINANCE                          
  04/05/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-31, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CHAIRMAN HUDSON called the meeting to order at 3:09 p.m.,                    
  stated there was a quorum present and announced the                          
  calendar.  He said Rep. John Davies would be joining the                     
  committee via teleconference to address HB 458.  He asked                    
  Rep. Hanley to present HB 301.                                               
  HB 301 - BAN SALE OF SOME STUDDED TIRES AND STUDS                            
                                                                               
  Number 010                                                                   
                                                                               
  REP. MARK HANLEY, Prime Sponsor of HB 301, concurred with                    
  Chairman Hudson that the short title of the bill is                          
  misleading.  He mentioned that the Department of                             
  Transportation has been doing road wear studies during the                   
  past few years and the results of these, as well as research                 
  done in other parts of this country and other countries, all                 
  indicate that studded tires cause significant wear to the                    
  roads.  He mentioned that he introduced this bill last year                  
  to initiate discussion, and since that time he traveled to                   
  Finland and talked with people there about this issue.                       
  Also, during the past year the department has determined                     
  that there are light weight studs that fit into tires and                    
  that decreasing the weight of studs can reduce up to 50                      
  percent of the road wear.  He said the actual stud casing is                 
  either plastic or aluminum.  He also pointed out that the                    
  bill prohibits the use of studs that are heavier than a                      
  certain weight.  The availability of the lighter weight                      
  studs was initially a concern; however, Johnson's Tire                       
  Service, the largest dealer in Anchorage, might elect to use                 
  the lighter studs as soon as next year as a marketing tool,                  
  thereby signifying that availability is not as great a                       
  concern as was anticipated.  The additional expense of using                 
  lighter weight studs is estimated to cost anywhere from                      
  fifty cents to two dollars per tire, and as production                       
  increases that cost might decrease.  Studies over the past                   
  eight years show that it is the actual change in weight of                   
  the stud that affects the road wear, and with regard to                      
  stopping, the stud itself remains hard and does not wear                     
  out.                                                                         
                                                                               
  Number 038                                                                   
                                                                               
  REP. SITTON said he supports this bill, but questioned if                    
  tire retailers and marketers would if stuck with an                          
  inventory of tires that are illegal to sell, and he wondered                 
  if there would be any recourse with a manufacturer.                          
                                                                               
  Number 042                                                                   
                                                                               
  REP. HANLEY said the act takes effect in 1998 and he might                   
  suggest that it move to 1997.  He said there was a concern                   
  to provide adequate time, but since they heard from                          
  Johnson's Tire Service in Anchorage, it appears that people                  
  have plenty of time to adapt.  He said there are apparently                  
  only two plants in Europe that manufacture studs for snow                    
  tires and they are already going to be making these light                    
  weight designs.                                                              
                                                                               
  Number 050                                                                   
                                                                               
  REP. PORTER asked what the observed effect was on traction.                  
                                                                               
  Number 052                                                                   
                                                                               
  REP. HANLEY mentioned that in the more current European                      
  studies it appears that there is little if any difference.                   
  Apparently, from the studies being done in Sweeden and                       
  Finland, the stopping ability between the light and heavy                    
  studs is similar, but the road wear is different.  He said                   
  it is only the casing that shows a difference and that is                    
  inside the tires so it does not actually affect whether you                  
  are stopping.  He commented that it seems like a win-win                     
  situation.                                                                   
                                                                               
  Number 060                                                                   
                                                                               
  CHAIRMAN HUDSON asked what the results were of discussions                   
  with the Department of Transportation.  They had previously                  
  asked that the bill be amended to include an additional                      
  requirement regarding maximum stud hardness.  Chairman                       
  Hudson also asked if there was anyone from the department to                 
  speak to this issue.                                                         
                                                                               
  Number 065                                                                   
                                                                               
  REP. HANLEY reported that there has been an on-going debate                  
  with the Department of Transportation.  He said there is                     
  only one distributer of studs for snow tires in the United                   
  States, located in Florida, and he will be carrying the new                  
  lighter weight studs.  He explained there are two                            
  manufacturing factories, both in Germany, that are                           
  apparently the only ones that make these items, and the                      
  softer metal studs are not being produced anymore.  He                       
  commented that some people want to totally ban studded snow                  
  tires, and that evidence shows that with good tires you get                  
  as good a stopping distance.  He stated that he does not                     
  want to go to this extent, that there are no studs with the                  
  "Rockwell scale" being made now and he does not want to put                  
  a back door route into the system to eliminate studded snow                  
  tires, especially since there is, seemingly, a win-win first                 
  step that can reduce up to 50 percent of the road wear at a                  
  cost not much more than the current one.                                     
                                                                               
  Number 085                                                                   
                                                                               
  CHAIRMAN HUDSON asked if there were any further questions.                   
  He asked for the wish of the committee.                                      
                                                                               
  (Chairman Hudson indicated that Rep. Green had arrived.)                     
                                                                               
  Number 087                                                                   
                                                                               
  REP. PORTER made a motion to move the HB 301 out of the                      
  committee with individual recommendations and zero fiscal                    
  note.  After some discussion on the 1988 implementation                      
  date, CHAIRMAN HUDSON acknowledged that there had been no                    
  amendment regarding this date and Rep. Porter withdrew his                   
  motion.                                                                      
                                                                               
  CHAIRMAN HUDSON stated that HB 301 was before the committee,                 
  capable of being amended.  He noted that the prime sponsor's                 
  recommendation was to change the date from July 1, 1998, to                  
  July 1, 1997.  He asked for the wish of the committee.  It                   
  was so moved that the bill be amended with the                               
  implementation date changed to 1997.  Hearing no objection,                  
  the amendment was so adopted.                                                
                                                                               
  REP. PORTER then renewed his motion to move the bill.                        
                                                                               
  CHAIRMAN HUDSON indicated that there were no objections to                   
  moving HB 301 with the attached fiscal note.                                 
                                                                               
  CHAIRMAN HUDSON announced the next order of business would                   
  be committee substitute (CS) for HB 388.                                     
  HB 388 - STATE POLICY ON HUMAN RESOURCE DEVELOPMENT                          
                                                                               
  Number 118                                                                   
                                                                               
  JAN HANSEN, Director of Public Assistance, Department of                     
  Health and Social Services, indicated that she did not have                  
  a CS document before her and it was then brought to her                      
  attention that her concerns were actually addressed by the                   
  CS.                                                                          
  Number 126                                                                   
                                                                               
  CHAIRMAN HUDSON determined, after some discussion with the                   
  staff, that CSHB 388, dated 3/18/94, did not include the                     
  amendments.  The changes were then referenced at the                         
  following locations:  page 1, line 10; page 1, line 12; page                 
  1, line 13; page 2, a wording change on line 18; page 2,                     
  line 20; page 2 (f) on lines 22-24; and (h) on page 3.                       
                                                                               
  Number 147                                                                   
                                                                               
  CHAIRMAN HUDSON asked Ms. Hansen if she was satisfied with                   
  the changes between HB 388 and the CS for HB 388.                            
                                                                               
  Number 150                                                                   
                                                                               
  MS. HANSEN responded that she was satisfied with the                         
  changes, and in particular referred to the changes made to                   
  section (e) which resolved the problem that was of concern                   
  to the Division of Public Assistance.                                        
                                                                               
  Number 157                                                                   
                                                                               
  CHAIRMAN HUDSON asked if someone from Community & Regional                   
  Affairs would speak to the bill.  Chairman Hudson then asked                 
  Robert Krogseng to present the CS to HB 388.                                 
                                                                               
  Number 165                                                                   
                                                                               
  ROBERT J.KROGSENG, Legislative Aide, Rep. Jerry Sander's                     
  Office, said the suggested changes were intended to coincide                 
  with changes that were made to Senate Bill 255.  His                         
  understanding was that the Job Training Council spent over                   
  one year drafting this bill and the requirements, and this                   
  was an attempt to put those efforts into law.  He said the                   
  council's comments have been made available to committee                     
  members and should be in the packets.                                        
                                                                               
  Number 179                                                                   
                                                                               
  CHAIRMAN HUDSON asked, for the record, if the CS was crafted                 
  with the guidance of the chair of the House Community and                    
  Regional Affairs Committee to be in compliance with the                      
  Senate version.                                                              
                                                                               
  MR. KROGSENG said he thought this was correct.                               
                                                                               
  CHAIRMAN HUDSON asked if he had seen the amendment that was                  
  delivered.                                                                   
                                                                               
  MR. KROGSENG was not sure if he had seen the amendment to                    
  which the chairman was referring.                                            
                                                                               
  CHAIRMAN HUDSON referred to page 2, lines 25-27, and said                    
  this essentially deletes the first sentence of (g).  He                      
  asked Mr. Krogseng for a response to the amendment.                          
                                                                               
  MR. KROGSENG said that he was not involved in the original                   
  crafting of this bill.  He stated that he did not have any                   
  problems with the amendment, and noted that it appears to                    
  leave the supervisory responsibility, but takes the planning                 
  and monitoring responsibilities away from the council.                       
                                                                               
  REP. SITTON questioned the rationale for this amendment.                     
                                                                               
  Number 230                                                                   
                                                                               
  ARBE WILLIAMS, Special Assistant, Department of Labor, said                  
  she was not representing the Job Training Council, but was                   
  present to ask that the amendment be accepted as proposed,                   
  to delete the sentence, "to plan, monitor and coordinate the                 
  program systems..."  She stated the administration felt that                 
  with the inclusion of ten state departments, a number of                     
  programs are not addressed by the council, and the council's                 
  membership only includes the membership of two departments.                  
  She added that the Department of Labor was one of those                      
  departments, so she was not saying that they are not                         
  represented.  She expressed the administration's concern                     
  that the responsibilities assigned to the council could not                  
  be fulfilled because membership was not broad enough.                        
                                                                               
                                                                               
  REP. SITTON asked who would be the designee if this                          
  amendment were adopted.                                                      
                                                                               
  Number 248                                                                   
                                                                               
  MS. WILLIAMS responded that the administration felt this                     
  issue should be addressed separately as it was not properly                  
  addressed under the council.  She said the governor was                      
  committed to coordinating state training efforts and can                     
  work within his cabinet to ensure that those programs are                    
  coordinated.  She said a coordinated report by the council                   
  would not be inappropriate, but requiring the council to                     
  plan, coordinate and monitor programs that are not in their                  
  purview may be counterproductive.                                            
                                                                               
  Number 257                                                                   
                                                                               
  REP. SITTON commented that he was trying to be supportive of                 
  the Department of Labor, but thought the governor could                      
  essentially accomplish this item as a matter of policy.  He                  
  said the fact that ten departments are involved in human                     
  resource development is mind-boggling and needs to be                        
  addressed.  He said he is concerned with who is in charge                    
  and what is being accomplished.                                              
                                                                               
  Number 266                                                                   
                                                                               
  CHAIRMAN HUDSON referred to page 2 of the work draft and                     
  said the bill had expanded and now includes a great deal                     
  more than it did previously.  He said his understanding is                   
  that the Department of Labor is saying that the governor                     
  shall use the council as the recognized state job training                   
  coordinating council, and they are simply removing that                      
  because of the implications relating to other departments.                   
                                                                               
  Number 279                                                                   
                                                                               
  DEBRA CALL, Alaska Job Training Council, testified via                       
  teleconference and said the need for a state policy was a                    
  point well-taken.  She said this was the council's first                     
  attempt and it has been under development for five or six                    
  years, although the efforts have been more concentrated                      
  during the past year.  She said there was a need, in light                   
  of the budget crises, to have a state policy to provide                      
  direction.  She stated that the council was advisory to the                  
  governor and does plan, monitor, and coordinate certain                      
  programs.  She said there needed to be an entity in charge                   
  of delivering a report and actually being able to give                       
  advise to the governor that will produce some results.  She                  
  mentioned that the council was composed of a variety of                      
  members, including Jan Hansen in today's meeting, members                    
  from the private sector, the oil industry, and others who                    
  share the vision of Alaska having a world-class work force.                  
  She concluded her remarks by suggesting that the sentence be                 
  modified to include "...as identified by the federal                         
  government", but she advised that the sentence not be                        
  eliminated altogether.                                                       
                                                                               
  Number 323                                                                   
                                                                               
  REP. PORTER said, "if they don't, there isn't anybody else                   
  that can."  He asked if line 26 could be changed to use the                  
  word "may".                                                                  
                                                                               
  Number 332                                                                   
                                                                               
  MS. WILLIAMS said this modification would be fine and the                    
  governor would determine if this was the appropriate method                  
  or if another method like a mini-cabinet would be                            
  preferable.  She said the administration had asked for this                  
  sentence to be deleted to clarify that the council does not                  
  function for those ten departments.  She said the council                    
  does not fully address issues like economic development or                   
  business proposals because those programs do not have full                   
  representation on the council.                                               
                                                                               
  Number 345                                                                   
                                                                               
  CHAIRMAN HUDSON said he understood that this legislation                     
  involved not taking the full measure, and that keeping the                   
  language under (g) and leaving this up to the governor's                     
  discretion indicated that the purpose was to create an                       
  overall coordinated effort, which meant that over time, the                  
  council would be able to work with various departments, the                  
  university, and other outlets to try to pull together a                      
  common plan.  He said the change from "shall" to "may" still                 
  maintained a strong statement, but leads in the right                        
  direction.                                                                   
                                                                               
  REP. GREEN posed a question about what needed to be in                       
  statute that could not be done by regulation.  He asked if                   
  the problem was that this pertained to various departments.                  
                                                                               
  Number 365                                                                   
                                                                               
  MS. HANSEN said she might regret her comments, but perhaps                   
  could shed some light by responding to Rep. Green's query.                   
  She said it was her opinion that this could be done by                       
  regulation.  She offered some background information, given                  
  that she was a member of the council as well as part of the                  
  administration, and said it was a desire of the council to                   
  have a stronger human resources development policy adopted                   
  by the state.  She stated that this was the current draft of                 
  a statement of policy, and it had been through many                          
  permutations.  She said from the administration's                            
  perspective there was some problem regarding the idea of                     
  coordinating state agencies to achieve the goal of a                         
  successfully trained, competitive, Alaskan work force.  She                  
  said those are goals that can be set as a policy statement                   
  by a mini-cabinet or an executive order or by regulations or                 
  by a policy within statute; there are many options.                          
                                                                               
  MS. HANSEN said she would like to respond a little more                      
  specifically to Ms. William's statement regarding the                        
  proposed modification that the governor "may" use the                        
  council.  She pointed out that this may be problematic                       
  because the council was required to be used by the governor                  
  for certain coordination activities in order for federal                     
  monies to be made available for those activities and that,                   
  in fact, this bill brings in departments that go beyond the                  
  required activities of the council.  She said the council                    
  must review certain plans in her department and other                        
  departments as well,  and from that perspective, in order to                 
  get federal monies, the governor must use the council as the                 
  coordinating entity for those functions.  She wanted to                      
  point this out so as to not create a conflict.  She said the                 
  concern is that it is beyond the current purview of the                      
  council to have planning and monitoring authority for all of                 
  the departments that are mentioned in the first section.                     
  She said she could not offer an immediate suggestion, but                    
  was trying to point out areas of concern.                                    
                                                                               
  REP. PORTER asked about the intent to eliminate the words                    
  "plan and monitor" based on his understanding of Ms.                         
  Hansen's testimony that the council is required to                           
  "coordinate".                                                                
                                                                               
  Number 420                                                                   
                                                                               
  MS. HANSEN responded that the council has a responsibility                   
  to plan and to some degree monitor within the purview of                     
  those programs over which it has federal responsibility.                     
  She said there must be a way of wording that would resolve                   
  this concern.                                                                
                                                                               
  Number 427                                                                   
                                                                               
  REP. GREEN referred to section 1 and asked if he understood                  
  correctly that if there was just regulation, then the other                  
  departments would have the option of voluntary interaction,                  
  and therefore statute was necessary.                                         
                                                                               
  Number 431                                                                   
                                                                               
  MS. HANSEN responded that this was not actually what she                     
  intended.  She said, in fact, it was the position of the                     
  administration to coordinate among all of these departments                  
  whenever necessary whether it be for economic development,                   
  job training, educational components or whatever.  From her                  
  perspective, the administration performs this function of                    
  "cooperating and coordinating."                                              
                                                                               
  Number 441                                                                   
                                                                               
  REP. GREEN said he was not being argumentative but he did                    
  not quite understand why the statute was necessary.                          
                                                                               
  Number 444                                                                   
                                                                               
  MS. HANSEN responded that a statute was not required, but                    
  would elevate this to a greater (indiscernible).  She said                   
  the coordination that was being requested does not require a                 
  statute, but placing it as policy in statute gives it                        
  greater visibility, and it was her understanding that the                    
  council's desire was to have it as a more publicly                           
  established policy.                                                          
                                                                               
  Number 454                                                                   
                                                                               
  REP. HUDSON asked, "But you are doing it anyway?"                            
                                                                               
  MS. HANSEN replied, "Yes, from my perspective, as part of                    
  the administration, I think that we are doing it, and of                     
  course we can do it better and more.  But I believe it is                    
  being done."                                                                 
                                                                               
  REP. SITTON referred to page 2, line 9, and asked about the                  
  reference to "public officials" and wondered if this was                     
  applicable to local school boards.                                           
                                                                               
  MS. HANSEN replied that this was an excellent comment and                    
  she did not have a response concerning what was intended.                    
                                                                               
  Number 466                                                                   
                                                                               
  CHAIRMAN HUDSON referred to page 2, line 26, and asked about                 
  the substitution of the word "may" for "shall".  He said he                  
  did not understand how this fails to assure compliance with                  
  federal requirements.  He said it was not that the governor                  
  would not use the council to comply with federal law; the                    
  governor would have to do that, because that law would                       
  precede anything in a public policy of this nature.  But, he                 
  continued, this rewording might result in the governor's use                 
  of the council as a coordinated effort to develop a more                     
  specific plan.  He stated, for the record, that this                         
  committee would not do anything to preclude the governor's                   
  responsibility of using the council in compliance with                       
  federal law or regulation.                                                   
                                                                               
  Number 489                                                                   
                                                                               
  MS. HANSEN said this was going a little beyond her purview.                  
  She was trying to assist in informing the debate and wanted                  
  to raise this as an issue for discussion.                                    
                                                                               
  Number 497                                                                   
                                                                               
  MS. CALL said even though she respected Ms. Hansen's opinion                 
  on coordination, one problem she has seen is the lack of an                  
  over-riding policy in Alaska, and a policy is necessary                      
  because Alaska is facing a budget crises.  She added that                    
  she had no problem using the word "may".  She said she                       
  represented a company and an industry that hire from outside                 
  the state and she questioned why there continues to be                       
  hiring from outside when Alaska has an excellent university                  
  system.  She added that Alaskan industries other than oil                    
  need to be developed and this document addresses the fact                    
  that now is the time to develop some goals and objectives                    
  for the next ten years.                                                      
                                                                               
  Number 516                                                                   
                                                                               
  REP. PORTER moved that the committee adopt CSHB 388, dated                   
  3/18/94 J.                                                                   
                                                                               
  CHAIRMAN HUDSON, hearing no objections, stated that CSHB
  388, dated 3/18/94 J, was properly before the committee.                     
                                                                               
  REP. PORTER moved that on page 2, line 26, the deletion of                   
  the word "shall" and replacement by the word "may".                          
                                                                               
  CHAIRMAN HUDSON, hearing no objection to that amendment,                     
  declared the amendment adopted.  The chair then withdrew the                 
  amendment that had been prepared.                                            
                                                                               
  Number 523                                                                   
                                                                               
  VINCE BARRY, Director, Education Program Support, Department                 
  of Education, said the department disagreed with the idea                    
  that the council should plan, coordinate, and implement                      
  these programs.  He said he wanted to make it very clear                     
  that the department supports the concept of a comprehensive                  
  policy, and he pointed out that currently the ten                            
  departments and the university do collaborate on dozens of                   
  activities.  He suggested, as an example of a possible                       
  comprehensive policy statement, that this committee direct                   
  the ten departments and the university to plan, coordinate,                  
  and implement their programs.  He said, "as soon as you give                 
  it to some entity, you are involved in a program, as opposed                 
  to a policy."  He added that this was simply too phenomenal                  
  of an undertaking for one single entity.                                     
                                                                               
  TAPE 94-32, SIDE A                                                           
  (NOTE:  TAPE 94-31, SIDE B, BROKEN)                                          
  Number 001                                                                   
                                                                               
  CHAIRMAN HUDSON referred to page 2, section (g), and said                    
  that the governor's power and responsibility was, in effect,                 
  being maintained by this legislation.                                        
                                                                               
  Number 014                                                                   
                                                                               
  MR. BARRY pointed out that this was not as simple as it                      
  seemed because the Department of Education and other                         
  departments were not members of the council, so if the                       
  council were to become the entity, other issues would then                   
  be created.  He reiterated that a policy statement was                       
  included in Section 1.                                                       
                                                                               
  Number 027                                                                   
                                                                               
  CHAIRMAN HUDSON mentioned that perhaps the council could be                  
  expanded to include the Department of Education.  He said                    
  the current language leaves the selection of a coordinating                  
  entity as being discretionary with the governor and he asked                 
  Mr. Barry if he felt very strongly about "planning,                          
  moderating, and coordinating through the council."                           
                                                                               
  Number 041                                                                   
                                                                               
  MR. BARRY restated that this would be an impossible task                     
  under these circumstances.  He said he found it difficult to                 
  imagine all the reports that would be necessary to bring the                 
  information into a meaningful format.  He said he did not                    
  mean to be disrespectful, but other than paying lip service                  
  to the fact that people need to be trained and educated, he                  
  did not want to be misleading and say that passage of this                   
  legislation "would effectively bring things together."                       
                                                                               
  Number 055                                                                   
                                                                               
  CHAIRMAN HUDSON said there seems to be a need for a                          
  coordinating aspect between the different departments,                       
  possibly similar to the Telecommunications Information                       
  Council (TIC).  He added that he really was not sure, but                    
  possibly the council was not the right entity for this                       
  function.                                                                    
                                                                               
  Number 068                                                                   
                                                                               
  REP. GREEN referred to page 3 and read, "the council shall                   
  submit a report every year to the governor and the                           
  legislature, and every four years there will be an audit"                    
  and expressed his concern that this does seem to be a major                  
  job, and yet there was a zero fiscal note.                                   
                                                                               
  Number 077                                                                   
                                                                               
  MR. BARRY said as soon as you insert any entity, even if it                  
  is a benign approach, then you are off of the policy issue.                  
  He said that deleting the issue on lines 25-27 allows this                   
  to be a comprehensive policy relating to human resources and                 
  development in the state.                                                    
                                                                               
  Number 098                                                                   
                                                                               
  REP. PORTER said he did not have a problem with the                          
  legislature stating a policy and making suggestions for                      
  implementation; indeed that was the role of the legislature.                 
  He pointed out that the council has better access to private                 
  sector involvement than other departments and this                           
  facilitates the coordination of job training.  He said his                   
  interest was in training pertaining to private jobs rather                   
  than training pertaining to public jobs.  He mentioned that                  
  the council already has this set up and coordinated.  He                     
  added that perhaps the role of the council would be                          
  expanded, and this would be fine.  He asked, "What would we                  
  have if we took this statement out?"  He said, "We would                     
  have a policy, but with no direction at all."  He concluded                  
  by saying he was comfortable with reducing the language to                   
  "may" but stated this was the work of the council.                           
                                                                               
  Number 119                                                                   
                                                                               
  CHAIRMAN HUDSON said that a slightly amended CS was before                   
  the committee.  He asked if there was any further                            
  discussion.                                                                  
                                                                               
  Number 123                                                                   
                                                                               
  REP. SITTON said he agreed with the idea of having a unified                 
  work policy, but his personal view was that this piece of                    
  paper did not accomplish anything, that the governor already                 
  has the power to gather together the commissioners and the                   
  university, and that this was simply "clogging up the                        
  lawbook and will not accomplish anything in the end."                        
                                                                               
  Number 131                                                                   
                                                                               
  CHAIRMAN HUDSON asked for the wish of the committee.                         
                                                                               
  REP. PORTER emphasized that a year and a half of work had                    
  gone into this.                                                              
                                                                               
  CHAIRMAN HUDSON stated that HB 388 would be held over.                       
  CHAIRMAN HUDSON brought CS for HB 458 to the attention of                    
  the committee and noted that Rep. John Davies was no longer                  
  able to be on-line.                                                          
                                                                               
  HB 458 - CHILD SUPPORT NONPAYMENT/LICENSING BAN                              
                                                                               
  Number 151                                                                   
                                                                               
  FAWN HELMS, Legislative Aide to Rep. John Davies, Prime                      
  Sponsor of HB 458, stated that child care enforcement can                    
  attach to wages to collect back child support, but                           
  unfortunately this has not taken care of the back child                      
  support owed to both custodial parents and to the state in                   
  lieu of Aid To Families With Dependent Children (AFDC).  She                 
  explained that before issuing a licence, the licensor must                   
  check the applicant's name against a list compiled by the                    
  Child Support Enforcement Division (CSED) that lists people                  
  who are substantially not in compliance.  In the CS, "being                  
  not in substantial compliance" means not having made a                       
  payment in the last year or being $2500 in arrears.  She                     
  said once this mechanism is triggered, as long as the person                 
  otherwise qualifies for the license or certificate, a 150-                   
  day temporary license would be issued.  During that time                     
  there would be an opportunity to work with the CSED to                       
  either show that the CSED's records were in error, or to                     
  make arrangements to be in compliance.  Following this, the                  
  regular license or certificate would be issued.  She                         
  referred to an informal survey, "State Responses On                          
  Licensing Restrictions And Revocations" in the packets,                      
  conducted by the federal office of Child Support                             
  Enforcement.  She said they checked with other states that                   
  had implemented similar programs and indications show that                   
  this has helped in collecting back child support.  She said                  
  there have actually been very few instances where they have                  
  had to resort to denying a license or certificate.  She                      
  added that this was basically a way to get people's                          
  attention to the fact that they need to tend to their                        
  payment responsibility.                                                      
                                                                               
  Number 190                                                                   
                                                                               
  CHAIRMAN HUDSON asked for the specifics to be reiterated.                    
                                                                               
  MS. HELMS confirmed that $2500 in arrears was on the bottom                  
  end, and she read the definition located on page 7, line 17.                 
                                                                               
  Number 202                                                                   
                                                                               
  CHAIRMAN HUDSON asked, for the record, if there were a lot                   
  of people in major noncompliance.                                            
                                                                               
  MS. HELMS responded that the division would be better able                   
  to speak to this issue, but it was her understanding that                    
  there was at least $300 million in arrears in Alaska.                        
                                                                               
  Number 215                                                                   
                                                                               
  MARY GAY, Director, Child Support Enforcement Division                       
  (CSED), Department of Revenue, said there are $330 million                   
  in unpaid child support, a large portion of which is owed to                 
  the state for AFDC money because the money was given to                      
  families because the absent parent was not providing                         
  support.  She said this legislation would substantially                      
  increase CSED collections because it would make the                          
  nontraditional wage earner, the self-employed person,                        
  address the situation of either paying child support or                      
  losing a license.  She said last year the CSED collected $50                 
  million in child support from only 46 percent of the cases,                  
  leaving 54 percent of the cases as having paid nothing.                      
  She said somebody was taking care of those families and she                  
  thought it was the state.                                                    
                                                                               
  MS. GAY explained that a portion of the 54 percent would be                  
  self-employed and she referred to a national statistic which                 
  states that 46 percent of the population is employed in                      
  nontraditional wage earning jobs.  She said if they                          
  estimated that 25 percent of all the cases were in that                      
  category, they would be able to increase their collection by                 
  $16 million.  Of that amount, one and one half million                       
  dollars would be returned to the general fund because that                   
  would be the portion of AFDC collected.  She said that about                 
  three million dollars in AFDC is collected and 50 percent of                 
  that would go to the general fund and 50 percent would go                    
  back to the federal government.                                              
                                                                               
  MS. GAY said that child support's funding comes from the                     
  federal government at a 66 percent match.  She mentioned                     
  that the licensing entities involved in helping the agency                   
  would be able to submit their expenditures to the division                   
  and there would be a 66 percent match on the efforts put                     
  forth in helping the CSED.                                                   
                                                                               
  Number 256                                                                   
                                                                               
  REP. GREEN noted that this was an astonishing amount of                      
  money and asked, "How much do you have a feel for                            
  approximately how many of these deadbeats are outside of                     
  Alaska that would not be pressured by this loss of                           
  licenses?"                                                                   
                                                                               
  MS. GAY responded that it would probably be less than ten                    
  percent.                                                                     
                                                                               
  REP. GREEN commented that most of them are in Alaska.  He                    
  then asked, "Can you give us an overview of what kind of a                   
  person this is, that is in arrears in child support?"                        
                                                                               
  MS. GAY responded that the person is usually a male, in the                  
  age range of 25-45, and that there are quite a few that have                 
  multiple cases.  She explained that some conceal their                       
  assets, and some work in a cash economy.                                     
                                                                               
  REP. GREEN explained that the reason he was asking was                       
  because he wondered if that kind of person was likely to be                  
  thwarted by the loss of a license.                                           
                                                                               
  MS. GAY gave the example of a trucker who would be affected                  
  if he did not have his commercial driver's license.  She                     
  said a truck driver can be considered as a subcontractor and                 
  is not necessarily employed; he is paid a check and taxes                    
  are not taken out.  She said he might send in his tax                        
  return, but he might not send in child support checks.                       
                                                                               
  Number 296                                                                   
                                                                               
  REP. GREEN asked if it would enforce the intent of the                       
  legislation if this were expanded to include other types of                  
  licenses, such as limited entry permits, fishing licenses,                   
  etc.                                                                         
                                                                               
  MS. GAY said she was happy to see this legislation because                   
  it would be helpful, but as she did not write it, this                       
  question would better be directed to Rep. Davies.                            
                                                                               
  Number 306                                                                   
                                                                               
  REP. GREEN reiterated that he was wondering if the threat of                 
  not having a driver's license would influence somebody to                    
  pay what they obviously owe, and furthermore, he questioned                  
  if expanding this to other mechanisms would amplify the                      
  pressure to respond.                                                         
                                                                               
  MS. GAY said yes, if the categories were expanded, then the                  
  collections would also be increased.                                         
                                                                               
  Number 313                                                                   
                                                                               
  REP. GREEN asked what portion of the collection on the $330                  
  million in arrears would then go to the state.                               
                                                                               
  Number 317                                                                   
                                                                               
  MS. GAY explained that of the $330 million in unpaid child                   
  support, there is a portion that is uncollectible, and they                  
  guesstimate that 30 percent is collectable.  She said they                   
  have not touched it very well as yet because they only                       
  collect one and one half percent of that unpaid amount, and                  
  it is growing because there is interest accruing on it.  She                 
  said if they could collect 25 or 30 percent of it, that                      
  would be very helpful to the state.  Of that portion, she                    
  figured 74 percent would go to the custodial parents and 24                  
  percent would go to the state.  She added that 50 percent of                 
  the state's portion is federal.                                              
                                                                               
  Number 329                                                                   
                                                                               
  CHAIRMAN HUDSON figured that the state would get 12.5                        
  percent.                                                                     
  Number 331                                                                   
                                                                               
  REP. PORTER asked if someone could beat the system by paying                 
  one dollar a year.                                                           
                                                                               
  MS. GAY replied, "and not owing more than $2,500."  She                      
  added that in a lot of these cases the amount was much more                  
  than that.                                                                   
                                                                               
  REP. PORTER said that if more than $2500 was owed, this law                  
  could still be beat by paying one dollar a year.                             
                                                                               
  MS. GAY pointed out that the wording is "and".                               
                                                                               
  REP. PORTER pointed out that a person is in compliance if                    
  they have made one payment or a partial payment during the                   
  past twelve months.                                                          
                                                                               
  MS. GAY said if a person owes $2,499 and has submitted a one                 
  dollar payment, that person could slip under the wire.  She                  
  said they do not want to be chasing people unless the back                   
  payments are large because it causes more work for the                       
  division.                                                                    
                                                                               
  Number 361                                                                   
                                                                               
  REP. PORTER said when someone owes that much money, it is                    
  wise to try to get it, and if that person was using the help                 
  of an attorney, "that attorney reading this would see that                   
  hole quicker than I did."                                                    
                                                                               
  Number 365                                                                   
                                                                               
  MS. GAY said she did not know what the average child support                 
  amount is.  She guessed that maybe it was about $300 or $400                 
  and therefore it does not take very long for the amount to                   
  reach $2,500.  She added that payment due is figured as a                    
  percentage of one's income and also on the number of                         
  children involved.  She said it is 20 percent for one child                  
  and 27 percent for two children.                                             
                                                                               
  Number 377                                                                   
                                                                               
  REP. PORTER said he could circumvent the entire bill by                      
  paying one dollar a year.                                                    
                                                                               
  MS. GAY repeated that this pertains only to the situation of                 
  the back payments ALSO being under $2,500.  She said she                     
  thought the CSED would keep busy focusing on those who had                   
  accumulated more than $2,500.                                                
                                                                               
  MS. GAY said something she found interesting was the                         
  inclusion that the CSED would report back to the legislature                 
  in the following year.  She suggested that time might                        
  possibly be used to try something different.                                 
                                                                               
                                                                               
  REP. GREEN asked exactly what the $330 million represented.                  
                                                                               
  MS. GAY said that $330 million was in arrears, and 50                        
  million was paid.                                                            
                                                                               
  REP. GREEN reiterated that if $330 million had accumulated                   
  as unpaid, he wondered what was the percentage of deadbeats                  
  and he asked, "Was it five percent or ten percent?  How many                 
  people legitimately paid?"                                                   
                                                                               
  MS. GAY replied that of the 50 million that was paid, those                  
  payments came from 46 percent of the obligers, so 54 percent                 
  did not pay anything.                                                        
                                                                               
  Number 416                                                                   
                                                                               
  REP. GREEN brought up the point that the CSED would not have                 
  a record of a person who had been paying all along.                          
                                                                               
  Number 427                                                                   
                                                                               
  MS. GAY clarified that they do not have records of all the                   
  child support cases.  She said when someone goes on AFDC,                    
  they have to have a case with the CSED or sometimes the                      
  court says a person has to go the CSED.  She agreed that                     
  there are a portion of the cases that the division never                     
  sees.  She said the CSED does not see the people who pay                     
  their child support and have arrangements that are working                   
  out.                                                                         
                                                                               
  Number 440                                                                   
                                                                               
  REP.GREEN posed a question about the process of divorce and                  
  asked if it was more likely that payments were made through                  
  the courts or through the CSED.                                              
                                                                               
  MS. GAY said, more likely than not, payments are made                        
  through the CSED.                                                            
                                                                               
  Number 445                                                                   
                                                                               
  REP. GREEN asked, "And you said that any number of these                     
  people have two or three sets that they are responsible                      
  for?"                                                                        
                                                                               
  MS. GAY said in many of these instances there was never a                    
  marriage, and when the child is born, there may not be a                     
  father listed on the birth certificate because there was not                 
  a marriage.  She said blood testing is involved and they                     
  determine who the father is.                                                 
                                                                               
  Number 460                                                                   
                                                                               
  REP. GREEN asked about the current collection efforts, not                   
  including the proposed legislation.                                          
                                                                               
  Number 462                                                                   
                                                                               
  MS. GAY said the division currently has a staff of 170                       
  people and approximately 24 people work in the enforcement                   
  section and they are just beginning a new section called the                 
  investigator unit intended to pursue people who are                          
  concealing their assets.  She said there is also a locate                    
  section and an employer reporting program that has been                      
  under statute for the past three years.                                      
                                                                               
  Number 483                                                                   
                                                                               
  REP. PORTER asked if the payments collected were generally                   
  monthly collections.                                                         
                                                                               
  MS. GAY said they are very effective with the traditional                    
  wage earners because wages are with-held with every                          
  paycheck.  She said they have a problem with nontraditional                  
  wage earners.                                                                
  Number 497                                                                   
                                                                               
  REP. GREEN presented the theoretical situation of a mother                   
  and her children, with the mother having a settlement that                   
  is due her on a monthly basis from her ex-husband, but that                  
  goes in arrears.  Meanwhile, if the state provides AFDC as a                 
  means of support, then when the collection process begins,                   
  who has the rights to that money?  Who has the first draw?                   
                                                                               
  Number 500                                                                   
                                                                               
  MS. GAY responded that as long as the mother is on AFDC, the                 
  money goes to the state except for a 50 dollar pass-through                  
  amount that goes directly to her.                                            
                                                                               
  Number 501                                                                   
                                                                               
  MS. GAY presented a scenario where a mother had been on AFDC                 
  for five months, receiving $800 a month.  Because the man                    
  does not make very much money, it is figured that he can pay                 
  $200 a month, so over a period of five months he owes $1,000                 
  of the $2,000 total that is owed to the state.  The amount                   
  is calculated on how much he earns, not on how much the                      
  state gave to the family.  She said if he won a $10,000                      
  jackpot, $1,000 would go to the state, she would get the                     
  other $9,000, and she would be able to go off of AFDC.                       
                                                                               
  REP. GREEN asked if her past due would be diminished.                        
                                                                               
  MS. GAY said the state's portion would be paid and she would                 
  receive the rest of the money.  If she were not receiving                    
  AFDC and he suddenly had access to $10,000 and he owed her                   
  money, then she would be paid first and the state would be                   
  paid later.                                                                  
                                                                               
  Number 511                                                                   
                                                                               
  CHAIRMAN HUDSON said he would hold this bill over; that he                   
  would like to have the prime sponsor present before moving                   
  on this bill, and added that it needs to be tightened up.                    
  Chairman Hudson asked Ms. Helms to relay to Rep. Davies that                 
  "there is at least one section in here that we believe a                     
  good, or not even a good, but maybe even a bad attorney                      
  could probably get all the way through."                                     
                                                                               
  Number 515                                                                   
                                                                               
  REP. PORTER suggested eliminating the phrase "or partial                     
  payment" on page 7, line 20, and then adding some other                      
  verbiage so that it would read, "and has made at least one                   
  payment in the past 12 months that represents at least one                   
  twelfth of the required annual payment."                                     
                                                                               
  Number 523                                                                   
                                                                               
  MS. GAY said they would prepare a fiscal note for the                        
  committee and mentioned that the costs from the licensing                    
  entities would impact the CSED's costs.                                      
                                                                               
  CHAIRMAN HUDSON announced they would address the                             
  teleconference calls.                                                        
                                                                               
  Number 527                                                                   
                                                                               
  ROBERT ARMSTRONG testified from Wrangell and said he has                     
  been involved in child support since 1976 when he got his                    
  first divorce.  He began by saying that they did not have                    
  the current bill in Wrangell.                                                
                                                                               
  TAPE 94-33, SIDE A                                                           
  Number 000                                                                   
                                                                               
  MR. ARMSTRONG continued by asking if he would be in                          
  compliance (indiscernible).                                                  
                                                                               
  MS. HELMS responded to Mr. Armstrong's question and said                     
  that he would be in compliance because he would be making                    
  regular payments and he would have been making at least one                  
  payment a year.                                                              
                                                                               
  MR. ARMSTRONG asked if this meant that anyone with a wage                    
  garnishment would be in compliance.                                          
                                                                               
  MS. HELMS said, yes, as long as they were employed and the                   
  CSED was receiving payments through the employer.                            
                                                                               
  MR. ARMSTRONG asked if this would also apply if he were a                    
  seasonal worker and went on unemployment during the winter                   
  months.                                                                      
                                                                               
  MS. HELMS replied this was correct because unemployment was                  
  also attached by the CSED, so he would still be in                           
  substantial compliance.                                                      
                                                                               
  Number 012                                                                   
                                                                               
  MR. ARMSTRONG said his biggest concern was judicial in                       
  nature.  He referred to the 14th amendment in the                            
  constitution and read, "No state shall make or force any law                 
  which shall abridge the privileges or..." and then stated                    
  that taking away the privilege of a driver's license is, in                  
  effect, violating the 14th amendment.  He added that this                    
  bill would be obstructing his "pursuit of happiness" which                   
  is mentioned in the Declaration of Independence.  He said                    
  this bill does the opposite of what is needed because what                   
  is needed are business and productive incentives for the                     
  person who has to make child support payments.  He pointed                   
  out that if someone was in noncompliance and their license                   
  was taken away, they could not even drive to work.  He                       
  restated that he had major problems with this legislation                    
  and it seems to have some strongly negative connotations.                    
  He questioned the efficiency of the agency and its ability                   
  to use the tools it already possesses and he voiced his                      
  opinion that the legislature should think twice before                       
  giving the agency more tools to work with.  He said, "Don't                  
  blame everything on the obligor out there.  Look at the                      
  agency and see what they are doing."  He concluded by                        
  pointing out that the "pass through" payment remains $50                     
  even if a person's monthly payment changes significantly.                    
                                                                               
  Number 057                                                                   
                                                                               
  REP. PORTER commented that it was unfortunate that the CS                    
  for the bill was not available to Mr. Armstrong.  He said                    
  his understanding was that this legislation supplied the                     
  agency with the additional tool of reaching the self-                        
  employed person who is otherwise unavailable for                             
  garnishment.  He mentioned that the 14th amendment does not                  
  guarantee such things as life, liberty, and the pursuit of                   
  happiness, but rather that a person will not be deprived                     
  without due process.  He said most of these orders are the                   
  result of a court process, and that is due process.                          
                                                                               
  Number 067                                                                   
                                                                               
  CHAIRMAN HUDSON thanked Mr. Armstrong and said if he had                     
  information to submit to the committee, they would be happy                  
  to receive it and to pass this on to the prime sponsor so                    
  they would have a better answer in the future.                               
                                                                               
  Number 071                                                                   
                                                                               
  PAT NEAL testified from Wrangell and said she is married to                  
  a noncustodial parent who has been in compliance with child                  
  support payments.  She said she has kept a log of her                        
  dealings with child support enforcement during the past one                  
  and one half years and it does not paint a very good picture                 
  of the CSED.  She said both she and her husband have been                    
  treated rather badly by the CSED and the division's                          
  unprofessional and ineffective treatment is frightening to                   
  her in light of the current legislation.  She said the CSED                  
  does not need another tool because much of what is covered                   
  in this bill is already covered under present law.  She said                 
  if the CSED would do their job, this bill would be                           
  unnecessary.  She pointed out that the CSED has 50 percent                   
  garnishment, places liens on personal property and vessels,                  
  intercepts IRS and permanent fund dividend payments, and has                 
  access to lists of directors from organizations and                          
  companies that incorporate.  She stated she did not feel                     
  there was a need for this bill and that it would generate a                  
  bureaucratically created deadbeat problem that would be                      
  worse than it is now.                                                        
                                                                               
  Number 092                                                                   
                                                                               
  DOUGLAS O'BRIEN testified from Fairbanks and stated that                     
  child support is composed of physical and financial support                  
  and also emotional support or visitation.  He said Alaska,                   
  unlike successful states that have high compliance rates,                    
  does not enforce visitation.  He noted that in Michigan,                     
  which he understands has the highest compliance rate, there                  
  is enforced visitation.  He said this bill is built on the                   
  myth of the deadbeat dad and this is a misnomer.  He                         
  suggested that they not go forward with this bill until they                 
  achieve a better understanding of how the system works.  He                  
  explained that the CSED is almost impossible to deal with                    
  and the legislature has empowered the agency to go back ten                  
  years to investigate compliance history.  He mentioned that                  
  people have problems with the IRS and the IRS only goes back                 
  seven years unless fraud is proven.  He said the CSED's                      
  requirement for producing ten year's worth of records was a                  
  mistake on the legislature's part, and with the attached                     
  penalties and interest, it becomes totally prohibitive.  He                  
  asked if there was time to continue with his testimony.                      
                                                                               
  CHAIRMAN HUDSON responded that Mr. O'Brien was offering some                 
  meaningful information, but he wanted to be sure that he had                 
  access to the current bill copy and he wanted the prime                      
  sponsor to be available to respond to Mr. O'brien's                          
  comments.                                                                    
                                                                               
  MR. O'BRIEN interjected that Rep. Davies had been sitting                    
  right next to him and they had talked at length for about 30                 
  minutes.  He added that people are not aware of what the                     
  CSED is all about and they assume that this is about                         
  deadbeat dads and the collection of real and viable past                     
  payments.                                                                    
                                                                               
  Number 142                                                                   
                                                                               
  CHAIRMAN HUDSON agreed that this was the viewpoint of some                   
  of the legislators and indicated that they are open to being                 
  educated.  He suggested that Mr. O'brien submit any written                  
  information that he cared to, and said they would try to                     
  give Mr. O'brien more time when this legislation is brought                  
  up again.  He thanked Mr. O'Brien for testifying.                            
                                                                               
  CHAIRMAN HUDSON said HB 458 would be carried over.                           
                                                                               
  CHAIRMAN HUDSON adjourned the meeting at 5:00 p.m.                           

Document Name Date/Time Subjects