Legislature(1997 - 1998)

05/07/1997 05:16 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           7 May 1997                                          
                            5:16 p.m.                                          
                                                                               
                                                                               
  TAPES                                                                        
                                                                               
  SFC-97, #147, Side 1 (000 - 592)                                             
           147, Side 2 (592 - 303)                                             
                                                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Bert Sharp,  Co-chairman, convened  the  meeting at                 
  approximately 5:16 p.m.                                                      
                                                                               
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to Co-chairman Sharp, Senators Pearce, Phillips,                 
  Donley,  Parnell  and Adams  were  present when  the meeting                 
  convened.  Senator Torgerson arrived shortly thereafter.                     
                                                                               
  ALSO  ATTENDING:   Glenda  Straube,   Director,  Division of                 
  Child  Support  Enforcement,  Department  of  Revenue;   Jim                 
  Nordlund,  Director,  Central  Office,  Division  of  Public                 
  Assistance, Department of  Health and Social Services;   Dan                 
  Branch, Assistant Attorney General, Human Services  Section,                 
  Civil  Division  Juneau,  Department  of  Law; Mitch  Gravo,                 
  lobbyist; aides to committee members and other legislators.                  
                                                                               
  via teleconference:  Greg  Wolfe, Vice Presdient, Anchorage,                 
  Economic Development Corporation; Steve Lauper, Esq., AIDEA.                 
                                                                               
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
  Co-chair Sharp convened  the evening  meeting and called  SB
  159.                                                                         
                                                                               
                                                                               
       CS FOR SENATE BILL NO. 159(L&C)                                         
                                                                               
       "An  Act   relating  to  the  new   business  incentive                 
  program."                                                                    
                                                                               
  Greg Wolfe,  Vice President, Anchorage  Economic Development                 
  Corporation testified via teleconference from Anchorage.  He                 
  explained  the  bill presently  before  the committee.   The                 
  expansion  and  diversification  would   provide  year-round                 
  employment.  It was designed to help Alaskans compete in the                 
                                                                               
                                                                               
  market.     Senator  Pearce asked  the  packet from  AEDC be                 
  passed out.                                                                  
                                                                               
  Senator Adams commented on the  business incentive grant for                 
  five  years.   He  wanted to  know  who was  responsible for                 
  repayment of monies  if business  ceases before five  years.                 
  Mr. Wolfe responded saying  that the loan or grant  would be                 
  decided  by  AIDEA   and  they  would  be   responsible  for                 
  collection  otherwise.    Senator Adams also  noted that the                 
  bill did not note a minimum  or maximum amount on the  loan.                 
  Mr. Wolfe reviewed briefly the standards for eligibility and                 
  noted the limits were stated in the bill.  When the  bill is                 
  completely put together  the limits  will be clearly  known.                 
  Co-chair Sharp said  there was no supporting  statement from                 
  AIDEA as to whether they agreed with this bill or not.   Mr.                 
  Wolfe said that AIDEA was aware and supported the bill.                      
                                                                               
  Steve  Lauper,   Esq.,  counsel  for   AIDEA  testified  via                 
  teleconference from Anchorage.   He said there had been some                 
  concerns with the  operation but that it  had been corrected                 
  in the new CS which they supported.                                          
                                                                               
  Senator Parnell referred to  page two of the AEDC  statement                 
  and commented on the feasibility study.  Senator Adams asked                 
  whether  fifty  percent  of  the   business  cost  could  be                 
  recovered or  not.  Mr.  Lauper assured that  everything was                 
  done with reimbursement in  mind.  He said  this bill was  a                 
  vehicle  in  which  to  attract  established  businesses  to                 
  Alaska.   Senator  Pearce  asked if  it  would also  attract                 
  business to state property.  Mr. Wolfe said not necessarily.                 
  They  would try to look  at all conditions.   The bill would                 
  help tilt in favour of Alaska.                                               
                                                                               
  Mitch Gravo, lobbyist,  was invited  to join the  committee.                 
  He  referred  to a  letter  from  the Anchorage  mayor.   In                 
  response to  Senator Parnell's  question, Mr. Wolfe  further                 
  noted the letter from the Anchorage mayor.  He said it was a                 
  matter  of  logistics and  operations.   Criteria  was being                 
  established.                                                                 
                                                                               
  Noting the absence  of Co-chair  Sharp, Co-chair Pearce  set                 
  aside SB 159.  She then called SB 154.                                       
                                                                               
                                                                               
       CS FOR SENATE BILL NO. 154(HES)                                         
                                                                               
       "An Act relating  to paternity determination  and child                 
  support;  relating to reporting  of and access to  financial                 
  or other  information  for  child  support purposes;  making                 
  changes to laws     relating to  occupational, recreational,                 
  or other licenses,  permits,    certificates,    or    other                 
  authorizations issued by the  state       to      facilitate                 
  administration of child support laws;   relating    to   the                 
                                                                               
                                                                               
  interest rate on judgments or decrees for    child  support;                 
  relating to immunity from civil liability for     good faith                 
  compliance with reporting or other requirements for    child                 
  support purposes; relating to voiding fraudulent  transfers                  
  and to penalties for noncompliance with orders for     child                 
  support purposes; amending Rules 4, 5, 35, 52, 58,                           
  60(b), 78, 90.1, and 90.3, Alaska  Rules of Civil Procedure;                 
       amending Rule 901, Alaska  Rules of Evidence;  amending                 
  Rules     3  and 5, Alaska  Bar Association Rules; repealing                 
  the effective  date  of  sec.  45, ch.  107,  SLA  1996; and                 
  providing for an    effective date."                                         
                                                                               
  Glenda Straube,  Child Support  Enforcement  was invited  to                 
  join the committee.   She explained  the HES version of  the                 
  bill before the  committee.  It included  changes in federal                 
  mandates applicable for all states.                                          
  Jim Nordlund, Division  of Public Assistance was  invited to                 
  join the committee.  He  said this bill, if passed into  law                 
  would result in  penalties for violators.  With reference to                 
  the impact on the  agency, he said it would  be difficult if                 
  federal  funds  were  lost  due   to  non-compliance.    The                 
  Department of Health and Social Services supported the bill.                 
                                                                               
  Ms.  Straube explained  the bill  section by  section.   She                 
  specifically referred  to new  hire reporting  and said  all                 
  employers must report  new or  re-hires within twenty  days.                 
  Senator Parnell asked about section 76  on page 29, line 27.                 
  Ms.  Straube  said  she did  not  know  who  would make  the                 
  determinations.  She noted that crew member fishing licenses                 
  were added in to the bill.  Social security numbers  must be                 
  on all documents and shared with all child support agencies.                 
  However,  the information  was  only to  be  used for  child                 
  support purposes.                                                            
                                                                               
  Senator  Phillips  asked  about the  right  to  privacy with                 
  regards to the  social security number  and would this be  a                 
  violation of one's constitutional rights.                                    
                                                                               
  Dan Branch,  Assistant Attorney General,  Department of  Law                 
  was  invited  to join  the committee.    He said  the social                 
  security number was protected by federal law.  He would look                 
  up and provide  the necessary  information to the  committee                 
  with regards to use of the  social security number.  Senator                 
  Phillips had  noted that  one does  not have  to list  their                 
  social security number on documents any more.                                
                                                                               
  Ms. Straube  continued explaining the  bill.  She  said once                 
  established,  paternity could  not be rescinded  after sixty                 
  days without court process.   Punitive fathers could request                 
  blood tests and the Division would provide these tests.  She                 
  further said all agencies must provide employment records as                 
  applicable because  there could be multiple  cases involving                 
  the same  party.   A state  agency  or a  court order  could                 
  require a participant to be employed.  She cited cases where                 
                                                                               
                                                                               
  individuals were appropriately employed and now paying child                 
  support payments.   The State of Alaska  also respects liens                 
  from other states.  The  department recognized use of  first                 
  class mail after all diligent methods had been exhausted  to                 
  notify the individual regarding child support.  There was no                 
  statute of limitations  on reporting  arrears to the  credit                 
  bureau.  Further not mandated but  included in the bill was:                 
  1.  one  rate of interest  for the child  support debt  (see                 
  section 12 and  13, judgments  and decrees); 2.   the  child                 
  support  order  would be  corrected  if based  on fraudulent                 
  information.                                                                 
                                                                               
  Senator Torgerson  asked about  section  13 (AS  25.27.025).                 
  Ms.  Straube   indicated   she   would   provide   requested                 
  information after research.   Under section 111  she said no                 
  could withhold employment  if it  was known the  perspective                 
  employee owed child support.  It should be clearly known the                 
  individual  is  responsible for  the  child whether  a court                 
  order for child support is received or not.                                  
                                                                               
  There was  miscellaneous discussion between  Senator Parnell                 
  and Ms. Straube regarding enforcement of child support.  She                 
  did indicate  that the department could not override a court                 
  order.   Further under  section 111,  (5), everything  would                 
  automatically conform according to federal mandate.                          
                                                                               
  Senator Torgerson asked  if passage of this bill  was urgent                 
  and Ms. Straube indicated that it was.                                       
                                                                               
  Co-chair Sharp held the bill  in committee and advised  that                 
  he would bring it up again on tomorrow morning's calendar.                   
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Co-chair  Sharp  adjourned the  session  at 6:32  p.m. until                 
  tomorrow morning.                                                            
                                                                               

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